Full Text of SB0701 94th General Assembly
SB0701eng 94TH GENERAL ASSEMBLY
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SB0701 Engrossed |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Section 18-165 as follows:
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| (35 ILCS 200/18-165)
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| Sec. 18-165. Abatement of taxes.
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| (a) Any taxing district, upon a majority vote of its | 9 |
| governing authority,
may, after the determination of the | 10 |
| assessed valuation of its property, order
the clerk of that | 11 |
| county to abate any portion of its taxes on the following
types | 12 |
| of property:
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| (1) Commercial and industrial.
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| (A) The property of any commercial or industrial | 15 |
| firm,
including but not limited to the property of (i) | 16 |
| any firm that
is used for collecting, separating, | 17 |
| storing, or processing recyclable
materials, locating | 18 |
| within the taxing district during the immediately | 19 |
| preceding
year from another state, territory, or | 20 |
| country, or having been newly created
within this State | 21 |
| during the immediately preceding year, or expanding an
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| existing facility, or (ii) any firm that is used for | 23 |
| the generation and
transmission of
electricity | 24 |
| locating within the taxing district during the | 25 |
| immediately
preceding year or expanding its presence | 26 |
| within the taxing district during the
immediately | 27 |
| preceding year by construction of a new electric | 28 |
| generating
facility that uses natural gas as its fuel, | 29 |
| or any firm that is used for
production operations at a | 30 |
| new,
expanded, or reopened coal mine within the taxing | 31 |
| district, that
has been certified as a High Impact | 32 |
| Business by the Illinois Department of
Commerce and |
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| Economic Opportunity
Community Affairs . The property | 2 |
| of any firm used for the
generation and transmission of | 3 |
| electricity shall include all property of the
firm used | 4 |
| for transmission facilities as defined in Section 5.5 | 5 |
| of the Illinois
Enterprise Zone Act. The abatement | 6 |
| shall not exceed a period of 10 years
and the aggregate | 7 |
| amount of abated taxes for all taxing districts | 8 |
| combined
shall not exceed $4,000,000.
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| (A-5) Any property in the taxing district of a new | 10 |
| electric generating
facility, as defined in Section | 11 |
| 605-332 of the Department of Commerce and
Economic | 12 |
| Opportunity
Community Affairs Law of the Civil | 13 |
| Administrative Code of Illinois.
The abatement shall | 14 |
| not exceed a period of 10 years.
The abatement shall be | 15 |
| subject to the following limitations:
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| (i) if the equalized assessed valuation of the | 17 |
| new electric generating
facility is equal to or | 18 |
| greater than $25,000,000 but less
than | 19 |
| $50,000,000, then the abatement may not exceed (i) | 20 |
| over the entire term
of the abatement, 5% of the | 21 |
| taxing district's aggregate taxes from the
new | 22 |
| electric generating facility and (ii) in any one
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| year of abatement, 20% of the taxing district's | 24 |
| taxes from the
new electric generating facility;
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| (ii) if the equalized assessed valuation of | 26 |
| the new electric
generating facility is equal to or | 27 |
| greater than $50,000,000 but less
than | 28 |
| $75,000,000, then the abatement may not exceed (i) | 29 |
| over the entire term
of the abatement, 10% of the | 30 |
| taxing district's aggregate taxes from the
new | 31 |
| electric generating facility and (ii) in any one
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| year of abatement, 35% of the taxing district's | 33 |
| taxes from the
new electric generating facility;
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| (iii) if the equalized assessed valuation of | 35 |
| the new electric
generating facility
is equal to or | 36 |
| greater than $75,000,000 but less
than |
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| $100,000,000, then the abatement may not exceed | 2 |
| (i) over the entire term
of the abatement, 20% of | 3 |
| the taxing district's aggregate taxes from the
new | 4 |
| electric generating facility and (ii) in any one
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| year of abatement, 50% of the taxing district's | 6 |
| taxes from the
new electric generating facility;
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| (iv) if the equalized assessed valuation of | 8 |
| the new electric
generating facility is equal to or | 9 |
| greater than $100,000,000 but less
than | 10 |
| $125,000,000, then the
abatement may not exceed | 11 |
| (i) over the entire term of the abatement, 30% of | 12 |
| the
taxing district's aggregate taxes from the new | 13 |
| electric generating facility
and (ii) in any one | 14 |
| year of abatement, 60% of the taxing
district's | 15 |
| taxes from the new electric generating facility;
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| (v) if the equalized assessed valuation of the | 17 |
| new electric generating
facility is equal to or | 18 |
| greater than $125,000,000 but less
than | 19 |
| $150,000,000, then the
abatement may not exceed | 20 |
| (i) over the entire term of the abatement, 40% of | 21 |
| the
taxing district's aggregate taxes from the new | 22 |
| electric generating facility
and (ii) in any one | 23 |
| year of abatement, 60% of the taxing
district's | 24 |
| taxes from the new electric generating facility;
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| (vi) if the equalized assessed valuation of | 26 |
| the new electric
generating facility is equal to or | 27 |
| greater than $150,000,000, then the
abatement may | 28 |
| not exceed (i) over the entire term of the | 29 |
| abatement, 50% of the
taxing district's aggregate | 30 |
| taxes from the new electric generating facility
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| and (ii) in any one year of abatement, 60% of the | 32 |
| taxing
district's taxes from the new electric | 33 |
| generating facility.
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| The abatement is not effective unless
the owner of | 35 |
| the new electric generating facility agrees to
repay to | 36 |
| the taxing district all amounts previously abated, |
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| together with
interest computed at the rate and in the | 2 |
| manner provided for delinquent taxes,
in the event that | 3 |
| the owner of the new electric generating facility | 4 |
| closes the
new electric generating facility before the | 5 |
| expiration of the
entire term of the abatement.
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| The authorization of taxing districts to abate | 7 |
| taxes under this
subdivision (a)(1)(A-5) expires on | 8 |
| January 1, 2010.
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| (B) The property of any commercial or industrial
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| development of at least 500 acres having been created | 11 |
| within the taxing
district. The abatement shall not | 12 |
| exceed a period of 20 years and the
aggregate amount of | 13 |
| abated taxes for all taxing districts combined shall | 14 |
| not
exceed $12,000,000. For the commercial or | 15 |
| industrial development, however, of at least 500 acres | 16 |
| on undeveloped land that was transferred by the | 17 |
| Secretary of the Army pursuant to the federal Illinois | 18 |
| Land Conservation Act and that is owned by the Joliet | 19 |
| Arsenal Development Authority or undeveloped land | 20 |
| subsequently acquired by the Joliet Arsenal | 21 |
| Development Authority, the abatement may not exceed a | 22 |
| period of 20 years and the aggregate amount of the | 23 |
| abated taxes for all taxing districts combined may not | 24 |
| exceed $38,000,000.
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| (C) The property of any commercial or industrial | 26 |
| firm currently
located in the taxing district that | 27 |
| expands a facility or its number of
employees. The | 28 |
| abatement shall not exceed a period of 10 years and the
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| aggregate amount of abated taxes for all taxing | 30 |
| districts combined shall not
exceed $4,000,000. The | 31 |
| abatement period may be renewed at the option of the
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| taxing districts.
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| (2) Horse racing. Any property in the taxing district | 34 |
| which
is used for the racing of horses and upon which | 35 |
| capital improvements consisting
of expansion, improvement | 36 |
| or replacement of existing facilities have been made
since |
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| July 1, 1987. The combined abatements for such property | 2 |
| from all taxing
districts in any county shall not exceed | 3 |
| $5,000,000 annually and shall not
exceed a period of 10 | 4 |
| years.
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| (3) Auto racing. Any property designed exclusively for | 6 |
| the racing of
motor vehicles. Such abatement shall not | 7 |
| exceed a period of 10 years.
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| (4) Academic or research institute. The property of any | 9 |
| academic or
research institute in the taxing district that | 10 |
| (i) is an exempt organization
under paragraph (3) of | 11 |
| Section 501(c) of the Internal Revenue Code, (ii)
operates | 12 |
| for the benefit of the public by actually and exclusively | 13 |
| performing
scientific research and making the results of | 14 |
| the research available to the
interested public on a | 15 |
| non-discriminatory basis, and (iii) employs more than
100 | 16 |
| employees. An abatement granted under this paragraph shall | 17 |
| be for at
least 15 years and the aggregate amount of abated | 18 |
| taxes for all taxing
districts combined shall not exceed | 19 |
| $5,000,000.
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| (5) Housing for older persons. Any property in the | 21 |
| taxing district that
is devoted exclusively to affordable | 22 |
| housing for older households. For
purposes of this | 23 |
| paragraph, "older households" means those households (i)
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| living in housing provided under any State or federal | 25 |
| program that the
Department of Human Rights determines is | 26 |
| specifically designed and operated to
assist elderly | 27 |
| persons and is solely occupied by persons 55 years of age | 28 |
| or
older and (ii) whose annual income does not exceed 80% | 29 |
| of the area gross median
income, adjusted for family size, | 30 |
| as such gross income and median income are
determined from | 31 |
| time to time by the United States Department of Housing and
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| Urban Development. The abatement shall not exceed a period | 33 |
| of 15 years, and
the aggregate amount of abated taxes for | 34 |
| all taxing districts shall not exceed
$3,000,000.
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| (6) Historical society. For assessment years 1998 | 36 |
| through 2008, the
property of an historical society |
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| qualifying as an exempt organization under
Section | 2 |
| 501(c)(3) of the federal Internal Revenue Code.
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| (7) Recreational facilities. Any property in the | 4 |
| taxing district (i)
that is used for a municipal airport, | 5 |
| (ii) that
is subject to a leasehold assessment under | 6 |
| Section 9-195 of this Code and (iii)
which
is sublet from a | 7 |
| park district that is leasing the property from a
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| municipality, but only if the property is used exclusively | 9 |
| for recreational
facilities or for parking lots used | 10 |
| exclusively for those facilities. The
abatement shall not | 11 |
| exceed a period of 10 years.
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| (8) Relocated corporate headquarters. If approval | 13 |
| occurs within 5 years
after the effective date of this | 14 |
| amendatory Act of the 92nd General Assembly,
any property | 15 |
| or a portion of any property in a taxing district that is | 16 |
| used by
an eligible business for a corporate headquarters | 17 |
| as defined in the Corporate
Headquarters Relocation Act. | 18 |
| Instead of an abatement under this paragraph (8),
a taxing | 19 |
| district may enter into an agreement with an eligible | 20 |
| business to make
annual payments to that eligible business | 21 |
| in an amount not to exceed the
property taxes paid directly | 22 |
| or indirectly by that eligible business to the
taxing | 23 |
| district and any other taxing districts for
premises | 24 |
| occupied pursuant to a written lease and may make those | 25 |
| payments
without the need for an annual appropriation. No | 26 |
| school district, however, may
enter into an agreement with, | 27 |
| or abate taxes for, an eligible business unless
the | 28 |
| municipality in which the corporate headquarters is | 29 |
| located agrees to
provide funding to the school district in | 30 |
| an amount equal to the amount abated
or paid by the school | 31 |
| district as provided in this paragraph (8).
Any abatement | 32 |
| ordered or
agreement entered into under this paragraph (8) | 33 |
| may be effective for the entire
term specified by the | 34 |
| taxing district, except the term of the abatement or
annual | 35 |
| payments may not exceed 20 years.
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| (b) Upon a majority vote of its governing authority, any |
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| municipality
may, after the determination of the assessed | 2 |
| valuation of its property, order
the county clerk to abate any | 3 |
| portion of its taxes on any property that is
located within the | 4 |
| corporate limits of the municipality in accordance with
Section | 5 |
| 8-3-18 of the Illinois Municipal Code.
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| (Source: P.A. 92-12, eff. 7-1-01;
92-207, eff. 8-1-01; 92-247, | 7 |
| eff. 8-3-01; 92-651, eff. 7-11-02; 93-270, eff.
7-22-03; | 8 |
| revised 12-6-03.)
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| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law. |
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