HB4668 94TH GENERAL ASSEMBLY

LRB094 17284 BDD 52577 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4668

Introduced 1/12/2006, by Rep. Frank J. Mautino

SYNOPSIS AS INTRODUCED:

35 ILCS 200/Art. 11 Div. 5 heading new
35 ILCS 200/11-180 new
35 ILCS 200/11-185 new
35 ILCS 200/11-190 new
35 ILCS 200/11-195 new
35 ILCS 200/11-200 new
35 ILCS 200/11-205 new
35 ILCS 200/11-210 new
35 ILCS 200/11-215 new

Amends the Property Tax Code. Sets forth procedures for the valuation of property used for wind energy conversion systems. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by adding Division 5 to Article 11 as follows:

(35 ILCS 200/Art. 11 Div. 5 heading new)

DIVISION 5. WIND ENERGY PRODUCTION

(35 ILCS 200/11-180 new)

Sec. 11-180. Legislative Findings. The General Assembly finds and declares that:

(1) it is desirable to develop both renewable and alternative energy resources to obtain environmental quality and public health benefit;

(2) the benefits of electricity from renewable and alternative energy resources accrue to the public at large, thus consumers and electric utilities and alternative retail electric suppliers share an interest in developing and using a significant level of these environmentally preferable resources in the State's electricity supply portfolio;

(3) encouraging energy efficiency will improve the environmental quality and public health in the State of Illinois;

(4) wind energy is one alternative energy source that can be used to provide electricity to utility consumers;

(5) some regions in the State are ideal locations for wind energy system development; and

(6) a consistent property valuation method must be used state-wide to ensure uniform, equitable assessments and to create an equal distribution of the tax burden among taxpayers, especially in taxing districts located in more than one county.

(35 ILCS 200/11-185 new)

Sec. 11-185. Definitions. For purposes of this Division 5:

"Person" means any natural individual, firm, trust, estate, partnership, association, entity, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, or any city, town, village, county, or other political subdivision of this State.

"Wind energy conversion device" means any device including, but not limited to, a wind charger, windmill, or wind turbine that converts wind energy to a form of usable energy.

"Wind energy conversion system" is all wind energy conversion devices owned by a person who has executed a lease, contract, or other written agreement or who has purchased or acquired property so that one or more wind energy conversion devices can be erected, built, or otherwise installed on that property. These devices do not need to be on contiguous parcels of property to be considered a part of a total wind energy conversion system.

(35 ILCS 200/11-190 new)

Sec. 11-190. Valuation policy. It is the policy of this State that, beginning on and after January 1, 2006, a wind energy conversion system that is used as an electric power source must be valued on the per kilowatt-hour of electricity produced each calendar year. If, however, a wind energy conversion system ceases to operate for any reason, the minimum assessed value of the system shall be 10% of the salvage value of the system.

(35 ILCS 200/11-195 new)

Sec. 11-195. Exemptions. The provisions of this Division 5 do not apply to wind energy conversion systems that are owned by an individual strictly for personal use or to any person or entity that is otherwise exempt from taxation under the Property Tax Code. For the purposes of this Section, "personal use" is defined as the use of any wind energy conversion system with a nameplate capacity of less than 2 megawatts.

(35 ILCS 200/11-200 new)

Sec. 11-200. Wind energy conversion system size and capacity. The Illinois Commerce Commission must determine the total size of the device. Unless the systems are interconnected with different distribution systems, the nameplate capacity of one wind energy conversion device must be combined with the nameplate capacity of any other wind energy conversion device that is under common ownership. In the case of a dispute, the Illinois Commerce Commission must draw all reasonable inferences in favor of combining the devices into one system. In making a determination, the Illinois Commerce Commission may decide that 2 wind energy conversion devices or systems are under common ownership when the underlying ownership structure contains similar persons or entities, even if the ownership shares differ. Wind energy conversion devices or systems are not under common ownership solely because the same person or entity provided equity financing for the systems.

(35 ILCS 200/11-205 new)

Sec. 11-205. Method of valuation for wind energy conversion systems.

(a) On or before February 1 of each calendar year, the Illinois Commerce Commission must certify to the Department:

(1) name and address of each individual registered to produce electricity using a wind energy conversion device or system; and

(2) the nameplate capacity of each wind energy conversion system.

(b) Unless otherwise exempt under this Division 5, on or before February 1 of each calendar year, the owner of a wind energy conversion device or system must file a report with the Department that identifies the total per kilowatt-hour of electricity produced for each wind energy system during the previous calendar year. The Department must prescribe the form of the report. If an owner of a wind energy conversion system subject to taxation under this Division 5 does not file the report by the due date, the Department must determine the kilowatt-hours of electricity produced based on the full nameplate capacity certified by the Illinois Commerce Commission.

(35 ILCS 200/11-210 new)

Sec. 11-210. Certification. On or before May 1, the Department must certify to each chief county assessment officer the amount of kilowatt-hours of electricity generated the prior calendar year so that these amounts can be entered in the assessment books. If a wind energy conversion system is located in more than one county, the per-kilowatt hour of electricity must be apportioned among the counties based on the actual per-kilowatt hour of electricity generated in each county.

(35 ILCS 200/11-215 new)

Sec. 11-215. Valuation rate. A wind energy conversion system shall be valued at $0.35 per kilowatt-hour of electricity produced by the system. The county must apportion the value to each taxing district in which the wind energy system is physically located in an amount equal to each taxing district's respective portion of the aggregate value otherwise assessed under this Code.

Section 99. Effective date. This Act takes effect upon becoming law.