Full Text of HB4668 94th General Assembly
HB4668 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4668
Introduced 1/12/2006, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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35 ILCS 200/Art. 11 Div. 5 heading new |
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35 ILCS 200/11-180 new |
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35 ILCS 200/11-185 new |
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35 ILCS 200/11-190 new |
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35 ILCS 200/11-195 new |
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35 ILCS 200/11-200 new |
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35 ILCS 200/11-205 new |
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35 ILCS 200/11-210 new |
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35 ILCS 200/11-215 new |
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Amends the Property Tax Code. Sets forth procedures for the valuation of property used for wind energy conversion systems. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB4668 |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by adding | 5 |
| Division 5 to Article 11 as follows: | 6 |
| (35 ILCS 200/Art. 11 Div. 5 heading new) | 7 |
| DIVISION 5. WIND ENERGY PRODUCTION | 8 |
| (35 ILCS 200/11-180 new) | 9 |
| Sec. 11-180. Legislative Findings. The General Assembly | 10 |
| finds and declares that: | 11 |
| (1) it is desirable to develop both renewable and | 12 |
| alternative energy resources to obtain environmental | 13 |
| quality and public health benefit;
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| (2) the benefits of electricity from renewable and | 15 |
| alternative energy resources accrue to the public at large, | 16 |
| thus consumers and electric utilities and alternative | 17 |
| retail electric suppliers share an interest in developing | 18 |
| and using a significant level of these environmentally | 19 |
| preferable resources in the State's electricity supply | 20 |
| portfolio;
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| (3) encouraging energy efficiency will improve the | 22 |
| environmental quality and public health in the State of | 23 |
| Illinois;
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| (4) wind energy is one alternative energy source that | 25 |
| can be used to provide electricity to utility consumers;
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| (5) some regions in the State are ideal locations for | 27 |
| wind energy system development; and
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| (6) a consistent property valuation method must be used | 29 |
| state-wide to ensure uniform, equitable assessments and to | 30 |
| create an equal distribution of the tax burden among | 31 |
| taxpayers, especially in taxing districts located in more |
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| than one county.
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| (35 ILCS 200/11-185 new) | 3 |
| Sec. 11-185. Definitions. For purposes of this Division 5: | 4 |
| "Person" means any natural individual, firm, trust, | 5 |
| estate, partnership, association, entity, joint stock company, | 6 |
| joint venture, corporation, limited liability company, or a | 7 |
| receiver, trustee, guardian, or other representative appointed | 8 |
| by order of any court, or any city, town, village, county, or | 9 |
| other political subdivision of this State. | 10 |
| "Wind energy conversion device" means any device | 11 |
| including, but not limited to, a wind charger, windmill, or | 12 |
| wind turbine that converts wind energy to a form of usable | 13 |
| energy. | 14 |
| "Wind energy conversion system" is all wind energy | 15 |
| conversion devices owned by a person who has executed a lease, | 16 |
| contract, or other written agreement or who has purchased or | 17 |
| acquired property so that one or more wind energy conversion | 18 |
| devices can be erected, built, or otherwise installed on that | 19 |
| property. These devices do not need to be on contiguous parcels | 20 |
| of property to be considered a part of a total wind energy | 21 |
| conversion system.
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| (35 ILCS 200/11-190 new) | 23 |
| Sec. 11-190. Valuation policy. It is the policy of this | 24 |
| State that, beginning on and after January 1, 2006, a wind | 25 |
| energy conversion system that is used as an electric power | 26 |
| source must be valued on the per kilowatt-hour of electricity | 27 |
| produced each calendar year. If, however, a wind energy | 28 |
| conversion system ceases to operate for any reason, the minimum | 29 |
| assessed value of the system shall be 10% of the salvage value | 30 |
| of the system. | 31 |
| (35 ILCS 200/11-195 new) | 32 |
| Sec. 11-195. Exemptions. The provisions of this Division 5 | 33 |
| do not apply to wind energy conversion systems that are owned |
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| by an individual strictly for personal use or to any person or | 2 |
| entity that is otherwise exempt from taxation under the | 3 |
| Property Tax Code. For the purposes of this Section, "personal | 4 |
| use" is defined as the use of any wind energy conversion system | 5 |
| with a nameplate capacity of less than 2 megawatts. | 6 |
| (35 ILCS 200/11-200 new) | 7 |
| Sec. 11-200. Wind energy conversion system size and | 8 |
| capacity. The Illinois Commerce Commission must determine the | 9 |
| total size of the device. Unless the systems are interconnected | 10 |
| with different distribution systems, the nameplate capacity of | 11 |
| one wind energy conversion device must be combined with the | 12 |
| nameplate capacity of any other wind energy conversion device | 13 |
| that is under common ownership. In the case of a dispute, the | 14 |
| Illinois Commerce Commission must draw all reasonable | 15 |
| inferences in favor of combining the devices into one system. | 16 |
| In making a determination, the Illinois Commerce Commission may | 17 |
| decide that 2 wind energy conversion devices or systems are | 18 |
| under common ownership when the underlying ownership structure | 19 |
| contains similar persons or entities, even if the ownership | 20 |
| shares differ. Wind energy conversion devices or systems are | 21 |
| not under common ownership solely because the same person or | 22 |
| entity provided equity financing for the systems. | 23 |
| (35 ILCS 200/11-205 new) | 24 |
| Sec. 11-205. Method of valuation for wind energy conversion | 25 |
| systems. | 26 |
| (a) On or before February 1 of each calendar year, the | 27 |
| Illinois Commerce Commission must certify to the Department:
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| (1) name and address of each individual registered to | 29 |
| produce electricity using a wind energy conversion device | 30 |
| or system; and
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| (2) the nameplate capacity of each wind energy | 32 |
| conversion system.
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| (b) Unless otherwise exempt under this Division 5, on or | 34 |
| before February 1 of each calendar year, the owner of a wind |
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| energy conversion device or system must file a report with the | 2 |
| Department that identifies the total per kilowatt-hour of | 3 |
| electricity produced for each wind energy system during the | 4 |
| previous calendar year. The Department must prescribe the form | 5 |
| of the report. If an owner of a wind energy conversion system | 6 |
| subject to taxation under this Division 5 does not file the | 7 |
| report by the due date, the Department must determine the | 8 |
| kilowatt-hours of electricity produced based on the full | 9 |
| nameplate capacity certified by the Illinois Commerce | 10 |
| Commission.
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| (35 ILCS 200/11-210 new) | 12 |
| Sec. 11-210. Certification. On or before May 1, the | 13 |
| Department must certify to each chief county assessment officer | 14 |
| the amount of kilowatt-hours of electricity generated the prior | 15 |
| calendar year so that these amounts can be entered in the | 16 |
| assessment books. If a wind energy conversion system is located | 17 |
| in more than one county, the per-kilowatt hour of electricity | 18 |
| must be apportioned among the counties based on the actual | 19 |
| per-kilowatt hour of electricity generated in each county. | 20 |
| (35 ILCS 200/11-215 new) | 21 |
| Sec. 11-215. Valuation rate. A wind energy conversion | 22 |
| system shall be valued at $0.35 per kilowatt-hour of | 23 |
| electricity produced by the system. The county must apportion | 24 |
| the value to each taxing district in which the wind energy | 25 |
| system is physically located in an amount equal to each taxing | 26 |
| district's respective portion of the aggregate value otherwise | 27 |
| assessed under this Code.
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| Section 99. Effective date. This Act takes effect upon | 29 |
| becoming law.
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