Full Text of HB4189 97th General Assembly
HB4189ham001 97TH GENERAL ASSEMBLY | Rep. John E. Bradley Filed: 3/30/2012
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| 1 | | AMENDMENT TO HOUSE BILL 4189
| 2 | | AMENDMENT NO. ______. Amend House Bill 4189 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Enterprise Zone Act is amended by | 5 | | changing Sections 3, 4, 5.2, 5.3, and 5.4 and by adding | 6 | | Sections 5.2.1, 8.1, and 8.2 as follows:
| 7 | | (20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
| 8 | | Sec. 3. Definition. As used in this Act, the following | 9 | | words shall
have the meanings ascribed to them, unless the | 10 | | context otherwise requires:
| 11 | | (a) "Department" means the Department of Commerce and | 12 | | Economic Opportunity.
| 13 | | (b) "Enterprise Zone" means an area of the State certified | 14 | | by the Department
as an Enterprise Zone pursuant to this Act.
| 15 | | (c) "Depressed Area" means an area in which pervasive | 16 | | poverty, unemployment
and economic distress exist.
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| 1 | | (d) "Designated Zone Organization" means an association or | 2 | | entity: (1)
the members of which are substantially all | 3 | | residents of the Enterprise Zone;
(2) the board of directors of | 4 | | which is elected by the members of the organization;
(3) which | 5 | | satisfies the criteria set forth in Section 501(c) (3) or | 6 | | 501(c) (4) of the
Internal Revenue Code; and (4) which exists | 7 | | primarily for the purpose of
performing within such area or | 8 | | zone for the benefit of the residents and businesses
thereof | 9 | | any of the functions set forth in Section 8 of this Act.
| 10 | | (e) "Agency" means each officer, board, commission and | 11 | | agency created
by the Constitution, in the executive branch of | 12 | | State government, other
than the State Board of Elections; each | 13 | | officer, department, board, commission,
agency, institution, | 14 | | authority, university, body politic and corporate of
the State; | 15 | | and each administrative unit or corporate outgrowth of the | 16 | | State
government which is created by or pursuant to statute, | 17 | | other than units
of local government and their officers, school | 18 | | districts and boards of election
commissioners; each | 19 | | administrative unit or corporate outgrowth of the above
and as | 20 | | may be created by executive order of the Governor. No entity | 21 | | shall
be considered an "agency" for the purposes of this Act | 22 | | unless authorized
by law to make rules or regulations.
| 23 | | (f) "Rule" means each agency statement of general | 24 | | applicability that implements,
applies, interprets or | 25 | | prescribes law or policy, but does not include (i)
statements | 26 | | concerning only the internal management of an agency and not
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| 1 | | affecting private rights or procedures available to persons or | 2 | | entities
outside the agency, (ii) intra-agency memoranda, or | 3 | | (iii) the prescription
of standardized forms.
| 4 | | (g) "Board" means the Enterprise Zone Board created in | 5 | | Section 5.2.1. | 6 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 7 | | (20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
| 8 | | Sec. 4. Qualifications for Enterprise Zones. (1) An area is | 9 | | qualified to become an enterprise zone which:
| 10 | | (a) is a contiguous area, provided that a zone area may | 11 | | exclude wholly
surrounded territory within its boundaries;
| 12 | | (b) comprises a minimum of one-half square mile and not | 13 | | more than 12
square miles, or 15 square miles if the zone is | 14 | | located within the
jurisdiction of 4 or more counties or | 15 | | municipalities, in total area,
exclusive of lakes and | 16 | | waterways;
however, in such cases where the enterprise zone is | 17 | | a joint effort of
three or more units of government, or two or | 18 | | more units of government if
situated in a township which is | 19 | | divided by a municipality of 1,000,000 or
more inhabitants, and | 20 | | where the certification has been in
effect at least one year, | 21 | | the total area shall comprise a minimum of
one-half square mile | 22 | | and not more than thirteen square miles in total area
exclusive | 23 | | of lakes and waterways;
| 24 | | (c) (blank); is a depressed area;
| 25 | | (d) (blank); satisfies any additional criteria established |
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| 1 | | by regulation of the
Department consistent with the purposes of | 2 | | this Act; and
| 3 | | (e) is (1) entirely within a municipality or (2) entirely | 4 | | within
the unincorporated
areas of a county, except where | 5 | | reasonable need is established for such
zone to cover portions | 6 | | of more than one municipality or county or (3)
both comprises | 7 | | (i) all or part of a municipality and (ii) an unincorporated
| 8 | | area of a county ; and .
| 9 | | (f) meets at least 3 out of 5 of the following | 10 | | requirements: | 11 | | (1) the proposed enterprise zone has an annual average | 12 | | unemployment rate of at least 120% of the State's annual | 13 | | average unemployment rate for either the most recent | 14 | | calendar year or the most recent State fiscal year period | 15 | | for which data is available, as reported by the Department | 16 | | of Employment Security; | 17 | | (2) the poverty rate for each census tract, minor civil | 18 | | division, or county civil division that contains any part | 19 | | of the area proposed as an enterprise zone was at least 20% | 20 | | calculated using the latest federal decennial census; | 21 | | (3) at least 70% of the households in the proposed | 22 | | enterprise zone have incomes equal to or less than 80% of | 23 | | the median household income of next largest geographic unit | 24 | | in which the enterprise zone is located; | 25 | | (4) the proposed enterprise zone suffered a population | 26 | | decrease of 20% or more between 2000 and 2010, or as |
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| 1 | | determined by the most recent decennial federal census | 2 | | data; or | 3 | | (5) designation as an enterprise zone will result in | 4 | | the development of substantial employment opportunities by | 5 | | creating or retaining a minimum of 1,000 full-time | 6 | | equivalent jobs due to an investment of $100 million or | 7 | | more, and help alleviate the effects of poverty and | 8 | | unemployment within the zone or in the vicinity of the | 9 | | zone; this item (5) is subject to performance reviews by | 10 | | the Board, and the enterprise zone will be subject to | 11 | | decertification under Section 5.4 of this Act if job and | 12 | | investment targets are not met. | 13 | | (2) Any criteria established by the Department or by law | 14 | | which utilize the rate
of unemployment for a particular area | 15 | | shall provide that all persons who
are not presently employed | 16 | | and have exhausted all unemployment benefits
shall be | 17 | | considered unemployed, whether or not such persons are actively
| 18 | | seeking employment.
| 19 | | (Source: P.A. 86-803.)
| 20 | | (20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
| 21 | | Sec. 5.2. Department Review of Enterprise Zone | 22 | | Applications. (a) All
applications which are to be considered | 23 | | and acted upon by the Department
during a calendar year must be | 24 | | received by the Department no later than
December 31 of the | 25 | | preceding calendar year.
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| 1 | | Any application received on or after January 1 of any | 2 | | calendar year shall
be held by the Department for consideration | 3 | | and action during the following
calendar year.
| 4 | | (b) Upon receipt of an application from a county or | 5 | | municipality the Department
shall review the application to | 6 | | determine whether the designated area
qualifies as an | 7 | | enterprise zone under Section 4 of this Act.
| 8 | | (b-5) If an area is qualified under Section 4, the | 9 | | Department shall then assign a score to each qualified area | 10 | | using the following scoring system. | 11 | | (1) Five points shall be given for an area that meets | 12 | | the unemployment requirement under item (1) of subsection | 13 | | (f) of Section 4 of this Act. | 14 | | (2) Five points shall be given for an area that meets | 15 | | the poverty level requirement under item (2) of subsection | 16 | | (f) of Section 4 of this Act. | 17 | | (3) Five points shall be given for an area that meets | 18 | | the household income requirement under item (3) of | 19 | | subsection (f) of Section 4 of this Act. | 20 | | (4) Five points shall be given for an area that meets | 21 | | the population decrease requirement under item (4) of | 22 | | subsection (f) of Section 4 of this Act. | 23 | | (5) Five points shall be given for an area that meets | 24 | | the employment development requirement under item (5) of | 25 | | subsection (f) of Section 4 of this Act. | 26 | | (6) Four points shall be given for a proposed |
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| 1 | | enterprise zone area in which 70% or more of children in | 2 | | that area participate in the federal free lunch program. | 3 | | (7) Four points shall be given for a proposed | 4 | | enterprise zone area in which 10% or more of the housing | 5 | | units are vacant. | 6 | | (8) Three points shall be given for a proposed | 7 | | enterprise zone area in which the area has a demonstrated | 8 | | floor area vacancy rate for industrial and commercial | 9 | | properties of 20% or more. | 10 | | (9) Three points shall be given for a proposed | 11 | | enterprise zone area in which 20% or more of households | 12 | | receive food stamps or participate in the Federal | 13 | | Supplemental Nutrition Assistance Program (SNAP) according | 14 | | to the latest federal census. | 15 | | (10) Three points shall be given for a proposed | 16 | | enterprise zone area in which a brownfield, as defined | 17 | | under Section 58.2 of the Environmental Protection Act, is | 18 | | located. | 19 | | (11) Three points shall be given for a proposed | 20 | | enterprise zone area in which an abandoned coal mine is | 21 | | located on the date of application. | 22 | | If a proposed enterprise zone area scores at least 20 | 23 | | points, the Department shall declare the area as qualified for | 24 | | review by the Board. If a proposed enterprise zone area scores | 25 | | fewer than 20 points, the proposed area is not qualified for | 26 | | review by the Board and is not qualified for designation. |
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| 1 | | (c) No later than May 1, the Department shall notify all | 2 | | applicant municipalities
and counties of the Department's | 3 | | determination of the qualification of their
respective | 4 | | designated enterprise zone areas , and shall notify the | 5 | | applicant when the application for an enterprise zone has been | 6 | | sent to the Board for further review and determination .
| 7 | | (c-5) In addition to the notification of counties and | 8 | | municipalities, the Department shall, no later than May 1 of | 9 | | each year, transmit the determinations on the proposed zone | 10 | | applications, along with any materials included in the | 11 | | applications by the applicant, to the members of the Senate | 12 | | Revenue Committee and the members of the House Revenue | 13 | | Committee. The General Assembly may, by joint resolution, make | 14 | | recommendations to the Board. | 15 | | (d) If any such designated area is found to be qualified to | 16 | | be an enterprise
zone, the Department shall, no later than May | 17 | | 15, publish a notice in at
least one newspaper of general | 18 | | circulation within the proposed zone area
to notify the general | 19 | | public of the application and their opportunity to
comment. | 20 | | Such notice shall include a description of the area and a brief
| 21 | | summary of the application and shall indicate locations where | 22 | | the applicant
has provided copies of the application for public | 23 | | inspection. The notice
shall also indicate appropriate | 24 | | procedures for the filing of written comments
from zone | 25 | | residents, business, civic and other organizations and | 26 | | property
owners to the Department.
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| 1 | | (e) (Blank). By July 1 of each calendar year, the | 2 | | Department shall either approve
or deny all applications filed | 3 | | by December 31 of the preceding calendar year.
If approval of | 4 | | an application filed by December 31 of any calendar year
is not | 5 | | received by July 1 of the following calendar year, the | 6 | | application
shall be considered denied. If an application is | 7 | | denied, the Department
shall inform the county or municipality | 8 | | of the specific reasons for the denial.
| 9 | | (f) (Blank). Preference in Designation. In determining | 10 | | which designated areas
shall be approved and certified as | 11 | | Enterprise Zones, the Department shall
give preference to:
| 12 | | (1) Areas with high levels of poverty, unemployment, job | 13 | | and population
loss, and general distress; and
| 14 | | (2) Areas which have evidenced with widest support from the | 15 | | county or
municipality seeking to have such areas designated as | 16 | | Enterprise Zones,
community residents, local business, labor | 17 | | and neighborhood organizations
and where there are plans for | 18 | | the disposal of publicly owned real property
as described in | 19 | | Section 10; and
| 20 | | (3) Areas for which a specific plan has been submitted to | 21 | | effect economic
growth and expansion and neighborhood | 22 | | revitalization for the benefit of
Zone residents and existing | 23 | | business through efforts which may include but
need not be | 24 | | limited to a reduction of tax rates or fees, an increase in
the | 25 | | level and efficiency of local services, and a simplification or | 26 | | streamlining
of governmental requirements applicable to |
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| 1 | | employers or employees, taking
into account the resources | 2 | | available to the county or municipality seeking
to have an area | 3 | | designated as an Enterprise Zone to make such efforts; and
| 4 | | (4) Areas for which there is evidence of prior consultation | 5 | | between the
county or municipality seeking designation of an | 6 | | area as an Enterprise Zone
and business, labor and neighborhood | 7 | | organizations within the proposed Zone;
| 8 | | (5) Areas for which a specific plan has been submitted | 9 | | which will or may
be expected to benefit zone residents and | 10 | | workers by increasing their ownership
opportunities and | 11 | | participation in enterprise zone development;
| 12 | | (6) Areas in which specific governmental functions are to | 13 | | be performed
by designated neighborhood organizations in | 14 | | partnership with the county
or municipality seeking | 15 | | designation of an area as an Enterprise Zone.
| 16 | | (g) (Blank). At least 2/5 of all new enterprise zones | 17 | | approved and certified by
the Department during any calendar | 18 | | year shall be located wholly or partially
within counties with | 19 | | unemployment rates of or above 8% for at least one
month during | 20 | | the 12-month
calendar year preceding the calendar year in which | 21 | | the applications are to
be considered and acted upon by the | 22 | | Department.
| 23 | | (h) (Blank). The Department's determination of whether to | 24 | | certify an enterprise
zone shall be based on the purposes of | 25 | | this Act, the criteria set forth
in Section 4 and subsections | 26 | | (f) and
(g) of Section 5.2, and any additional criteria
adopted |
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| 1 | | by regulation of the Department under paragraph (d) of Section | 2 | | 4.
| 3 | | (Source: P.A. 85-870.)
| 4 | | (20 ILCS 655/5.2.1 new) | 5 | | Sec. 5.2.1. Enterprise Zone Board. | 6 | | (a) An Enterprise Zone Board consisting of 6 members is | 7 | | hereby created within the Department. The Board shall consist | 8 | | of one individual appointed by each executive branch | 9 | | constitutional officer. Members of the Board shall serve at the | 10 | | pleasure of the appointing authority. Board members shall serve | 11 | | without compensation, but shall be reimbursed for necessary | 12 | | expenses incurred in the performance
of their duties. | 13 | | (b) Beginning in 2013 and each year thereafter, by July 1 | 14 | | of each calendar year, the Board shall either approve or deny | 15 | | all applications filed by December 31 of the preceding calendar | 16 | | year. If an application filed by December 31 of any calendar | 17 | | year is not approved by July 1 of the following calendar year, | 18 | | the application shall be considered denied. If an application | 19 | | is denied, the Board shall inform the county or municipality of | 20 | | the specific reasons for the denial. | 21 | | (c) In determining which designated areas shall be approved | 22 | | and certified as enterprise zones, the Board shall give | 23 | | preference to: | 24 | | (1) areas with high levels of poverty, unemployment, | 25 | | job and population loss, and general distress; and |
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| 1 | | (2) areas which have demonstrated evidence of the | 2 | | widest support from (i) the county or municipality seeking | 3 | | to have the area designated as an enterprise zone, (ii) | 4 | | community residents, (iii) local business, and (iv) labor | 5 | | and neighborhood organizations; | 6 | | (3) areas where there are plans for the disposal of | 7 | | publicly owned real property as described in Section 10; | 8 | | (4) areas for which a specific plan has been submitted | 9 | | to effect economic growth and expansion and neighborhood | 10 | | revitalization for the benefit of zone residents and | 11 | | existing business through efforts which may include, but | 12 | | need not be limited to, a reduction of tax rates or fees, | 13 | | an increase in the level and efficiency of local services, | 14 | | and a simplification or streamlining of governmental | 15 | | requirements applicable to employers or employees, taking | 16 | | into account the resources available to the county or | 17 | | municipality seeking to have an area designated as an | 18 | | enterprise zone; | 19 | | (5) areas for which there is evidence of prior | 20 | | consultation between the county or municipality seeking | 21 | | designation of an area as an enterprise zone and business, | 22 | | labor and neighborhood organizations within the proposed | 23 | | zone; | 24 | | (6) areas for which a specific plan has been submitted | 25 | | which will or may be expected to benefit zone residents and | 26 | | workers by increasing their ownership opportunities and |
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| 1 | | participation in enterprise zone development; and | 2 | | (7) areas in which specific governmental functions are | 3 | | to be performed by designated neighborhood organizations | 4 | | in partnership with the county or municipality seeking | 5 | | designation of an area as an enterprise zone. | 6 | | (d) At least two-fifths of all new enterprise zones | 7 | | approved by the Board and certified by the Department during | 8 | | any calendar year shall be located wholly or partially within | 9 | | counties with unemployment rates of or above 8% for at least | 10 | | one month during the 12-month calendar year preceding the | 11 | | calendar year in which the applications are to be considered | 12 | | and acted upon by the Department. | 13 | | (e) The Board's determination of whether to approve | 14 | | certification by the Department for an enterprise zone shall be | 15 | | based on the purposes of this Act, together with the criteria | 16 | | set forth in Section 4 and subsections (b) and (c) of this | 17 | | Section. | 18 | | (f) Immediately after the Board's decision of whether the | 19 | | Department shall issue a certification for an enterprise zone, | 20 | | the Board will report that decision to the Department. | 21 | | (g) The Board is not, at any time, required to designate an | 22 | | enterprise zone. | 23 | | (h) As used in this Section, "executive branch | 24 | | constitutional officer" means the Governor, Lieutenant | 25 | | Governor, Attorney General, Secretary of State, Comptroller, | 26 | | and Treasurer.
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| 1 | | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
| 2 | | Sec. 5.3. Certification of Enterprise Zones; Effective | 3 | | date.
| 4 | | (a) Approval of designated Enterprise Zones shall be made | 5 | | by the
Department by certification of the designating | 6 | | ordinance. The Department
shall promptly issue a certificate | 7 | | for each Enterprise Zone upon its
approval. The certificate | 8 | | shall be signed by the Director of the
Department, shall make | 9 | | specific reference to the designating ordinance,
which shall be | 10 | | attached thereto, and shall be filed in the office of the
| 11 | | Secretary of State. A certified copy of the Enterprise Zone | 12 | | Certificate, or
a duplicate original thereof, shall be recorded | 13 | | in the office of recorder
of deeds of the county in which the | 14 | | Enterprise Zone lies.
| 15 | | (b) An Enterprise Zone shall be effective upon its | 16 | | certification. The
Department shall transmit a copy of the | 17 | | certification to the Department
of Revenue, and to the | 18 | | designating municipality or county.
| 19 | | Upon certification of an Enterprise Zone, the terms and | 20 | | provisions of the
designating ordinance shall be in effect, and | 21 | | may not be amended or repealed
except in accordance with | 22 | | Section 5.4.
| 23 | | (c) An Enterprise Zone designated before the effective date | 24 | | of this amendatory Act of the 97th General Assembly shall be in | 25 | | effect for 30 calendar years, or for
a lesser number of years |
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| 1 | | specified in the certified designating ordinance.
An | 2 | | Enterprise Zone designated on or after the effective date of | 3 | | this amendatory Act of the 97th General Assembly shall be in | 4 | | effect for 10 calendar years, or for
a lesser number of years | 5 | | specified in the certified designating ordinance. Enterprise | 6 | | Zones shall terminate at midnight of December 31 of the final
| 7 | | calendar year of the certified term, except as provided in | 8 | | Section 5.4.
| 9 | | (d) No more than 12 Enterprise Zones may be certified by | 10 | | the Department
in calendar year 1984, no more than 12 | 11 | | Enterprise Zones may be certified
by the Department in calendar | 12 | | year 1985, no more than 13 Enterprise
Zones may be certified by | 13 | | the Department in calendar year 1986, no
more than 15 | 14 | | Enterprise Zones may be certified by the Department in
calendar | 15 | | year 1987, and no more than 20 Enterprise Zones may be | 16 | | certified
by the Department in calendar year 1990. In other | 17 | | calendar years, no more
than 13 Enterprise Zones may be | 18 | | certified by the Department.
The Department may also designate | 19 | | up to 8 additional Enterprise Zones
outside the regular | 20 | | application cycle if warranted by the extreme economic
| 21 | | circumstances as determined by the Department. The Department | 22 | | may also
designate one additional Enterprise Zone outside the | 23 | | regular application
cycle if an aircraft manufacturer agrees to | 24 | | locate
an aircraft manufacturing facility in the proposed | 25 | | Enterprise Zone.
Notwithstanding any
other provision of this | 26 | | Act, no more than 89 Enterprise Zones may be
certified by the |
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| 1 | | Department for the 10 calendar years commencing with 1983.
The | 2 | | 7 additional Enterprise Zones authorized by Public Act
86-15 | 3 | | shall not lie within municipalities or unincorporated areas of
| 4 | | counties that abut or are contiguous to Enterprise Zones | 5 | | certified pursuant
to this Section prior to June 30, 1989. The | 6 | | 7 additional Enterprise
Zones (excluding the additional | 7 | | Enterprise Zone which may be designated
outside the regular | 8 | | application cycle) authorized by Public Act 86-1030
shall not | 9 | | lie within municipalities or unincorporated areas of counties
| 10 | | that abut or are contiguous to Enterprise Zones certified | 11 | | pursuant to this
Section prior to February 28, 1990. Beginning | 12 | | in calendar year 2004 and until
December 31, 2008, one | 13 | | additional enterprise zone may be certified by the
Department. | 14 | | In any calendar year, the
Department
may not certify more than | 15 | | 3 Zones located within the same municipality. The
Department | 16 | | may certify Enterprise Zones in each of the 10 calendar years
| 17 | | commencing with 1983. The Department may not certify more than | 18 | | a total of
18 Enterprise Zones located within the same county | 19 | | (whether within
municipalities or within unincorporated | 20 | | territory) for the 10 calendar years
commencing with 1983. | 21 | | Thereafter, the Department may not certify any
additional | 22 | | Enterprise Zones, but may amend and rescind certifications of
| 23 | | existing Enterprise Zones in accordance with Section 5.4.
| 24 | | (e) Notwithstanding any other provision of law, if (i) the | 25 | | county board of
any county in which a current military base is | 26 | | located, in part or in whole, or
in which a military
base that |
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| 1 | | has been closed within 20 years of the effective date of this
| 2 | | amendatory Act of 1998 is located, in part or in whole, adopts | 3 | | a designating
ordinance in accordance with Section 5 of this | 4 | | Act to designate the military
base in that county as an | 5 | | enterprise zone and (ii) the property otherwise
meets the
| 6 | | qualifications for an enterprise zone as prescribed in Section | 7 | | 4 of this Act,
then the Department may certify the designating | 8 | | ordinance or ordinances, as the
case may be.
| 9 | | (f) Upon expiration of a zone designation, the zone then | 10 | | becomes available for either its previous designee, or a new | 11 | | competitor, to compete for designation. No preference for | 12 | | designation will be given to the previous designee of the zone. | 13 | | (Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436, | 14 | | eff.
1-1-04.)
| 15 | | (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
| 16 | | Sec. 5.4.
Amendment and Decertification of Enterprise
| 17 | | Zones.
| 18 | | (a) The terms of a certified enterprise zone designating | 19 | | ordinance
may be amended to
| 20 | | (i) alter the boundaries of the Enterprise Zone, or
| 21 | | (ii) expand, limit or repeal tax incentives or benefits | 22 | | provided in
the ordinance, or
| 23 | | (iii) extend alter the termination date of the zone, or
| 24 | | (iv) make technical corrections in the enterprise zone | 25 | | designating
ordinance; but such amendment shall not be |
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| 1 | | effective unless the
Department issues an amended | 2 | | certificate for the Enterprise Zone, approving
the amended | 3 | | designating ordinance. Upon the adoption of any ordinance
| 4 | | amending or repealing the
terms of a certified enterprise | 5 | | zone designating ordinance, the municipality
or county | 6 | | shall promptly file with the Department an application for | 7 | | approval
thereof, containing substantially the same | 8 | | information as required for an
application under Section | 9 | | 5.1 insofar as material to the proposed changes.
The | 10 | | municipality or county must hold a public hearing on the | 11 | | proposed changes
as specified in Section 5 and, if the | 12 | | amendment is to effectuate the
limitation of tax abatements | 13 | | under Section 5.4.1, then the public notice of the
hearing | 14 | | shall state that property that is in both the enterprise | 15 | | zone and a
redevelopment project area may not receive tax | 16 | | abatements unless within 60 days
after the adoption of the | 17 | | amendment to the designating ordinance the
municipality | 18 | | has determined that eligibility for tax abatements has been
| 19 | | established,
| 20 | | (v) include an area within another municipality or | 21 | | county as part of
the designated enterprise zone provided | 22 | | the requirements of Section 4 are
complied with, or
| 23 | | (vi) effectuate the limitation of tax abatements under | 24 | | Section
5.4.1.
| 25 | | (b) The Department shall approve or disapprove a proposed | 26 | | amendment to
a certified enterprise zone within 90 days of its |
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| 1 | | receipt of the application
from the municipality or county. The | 2 | | Department may not approve changes
in a Zone which are not in | 3 | | conformity with this Act, as now or hereafter
amended, or with | 4 | | other applicable laws. If the Department issues an amended
| 5 | | certificate for an Enterprise Zone, the amended certificate, | 6 | | together with
the amended zone designating ordinance, shall be | 7 | | filed, recorded and
transmitted as provided in Section 5.3.
| 8 | | (c) An Enterprise Zone may be decertified by joint action | 9 | | of the
Department and the designating county or municipality in | 10 | | accordance with this
Section.
The designating county or | 11 | | municipality shall conduct at least one public
hearing within | 12 | | the zone prior to its adoption of an ordinance of
| 13 | | de-designation. The mayor of the designating municipality or | 14 | | the chairman of
the county
board of the designating county | 15 | | shall execute a joint decertification
agreement with the | 16 | | Department. A decertification of an Enterprise Zone shall
not
| 17 | | become effective until at least 6 months after the execution of | 18 | | the
decertification
agreement, which shall be filed in the | 19 | | office of the Secretary of State.
| 20 | | (d) An Enterprise Zone may be decertified for cause by
the | 21 | | Department in accordance with this Section. Prior to
| 22 | | decertification: (1) the Department shall notify the chief | 23 | | elected official
of the designating county or municipality in | 24 | | writing of the specific
deficiencies which provide cause for | 25 | | decertification; (2) the Department
shall place the | 26 | | designating county or municipality on probationary status for
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| 1 | | at least 6 months during which time corrective action may be
| 2 | | achieved in the enterprise zone by the designating county or | 3 | | municipality;
and, (3) the Department
shall conduct at least | 4 | | one public hearing within the zone. If such
corrective action | 5 | | is not achieved during the probationary period, the
Department | 6 | | shall issue an amended certificate
signed by the Director of | 7 | | the Department decertifying the enterprise zone,
which | 8 | | certificate shall be filed in the
office of the Secretary of | 9 | | State. A certified copy of the amended
enterprise zone | 10 | | certificate, or a duplicate original thereof, shall be
recorded | 11 | | in the office of recorder of the county in which the enterprise
| 12 | | zone lies, and shall be provided to the chief elected official | 13 | | of the
designating county or municipality. Decertification of | 14 | | an Enterprise Zone
shall not become effective until 60 days | 15 | | after the date of filing.
| 16 | | (e) In the event of a decertification, or an amendment | 17 | | reducing the length
of the term or the area of an Enterprise | 18 | | Zone or the adoption of an ordinance
reducing or eliminating | 19 | | tax benefits in an Enterprise Zone, all benefits
previously | 20 | | extended within the Zone pursuant to this Act or pursuant to
| 21 | | any other Illinois law providing benefits specifically to or | 22 | | within Enterprise
Zones shall remain in effect for the original | 23 | | stated term of the Enterprise
Zone, with respect to business | 24 | | enterprises within the Zone on the effective
date of such | 25 | | decertification or amendment, and with respect to individuals
| 26 | | participating in urban homestead
programs under this Act.
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| 1 | | (f) Except as otherwise provided in Section 5.4.1, with | 2 | | respect to
business enterprises (or expansions thereof) which
| 3 | | are proposed or under development within a Zone at the time of | 4 | | a
decertification
or an amendment reducing the length of the | 5 | | term of the Zone, or excluding
from the Zone area the site of | 6 | | the proposed enterprise, or an ordinance
reducing or | 7 | | eliminating tax benefits in a Zone, such business enterprise
| 8 | | shall be entitled to the benefits previously applicable within | 9 | | the Zone
for the original stated term of the Zone, if the | 10 | | business enterprise
establishes:
| 11 | | (i) that the proposed business enterprise or expansion
| 12 | | has been committed
to be located within the Zone;
| 13 | | (ii) that substantial and binding financial | 14 | | obligations have been made
towards the development of such | 15 | | enterprise; and
| 16 | | (iii) that such commitments have been made in | 17 | | reasonable reliance on
the benefits and programs which were | 18 | | to have been applicable to the enterprise
by reason of the | 19 | | Zone, including in the case of a reduction in term of a
| 20 | | zone, the original length of the term.
| 21 | | In declaratory judgment actions under this paragraph, the | 22 | | Department and
the designating municipality or county shall be | 23 | | necessary parties defendant.
| 24 | | (g) An enterprise zone designated on or after the effective | 25 | | date of this amendatory Act of the 97th General Assembly shall | 26 | | be decertified if: (i) the zone fails to meet the obligations |
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| 1 | | listed in paragraph (5) of subsection (f) of Section 4 of this | 2 | | Act; and (ii) the zone does not otherwise meet 3 of the 5 | 3 | | criteria set forth in subsection (f). | 4 | | (Source: P.A. 90-258, eff. 7-30-97.)
| 5 | | (20 ILCS 655/8.1 new) | 6 | | Sec. 8.1. Accounting. Any business receiving tax | 7 | | incentives due to their location within an Enterprise Zone must | 8 | | keep itemized records of each transaction to which a tax | 9 | | incentive was applied. The business must, no less than monthly, | 10 | | present a copy of their itemized record to the Zone | 11 | | Administrator. The Zone Administrator must then, as received, | 12 | | send a copy of the itemized report to the Department. The | 13 | | Department will compile a report for each Enterprise Zone that | 14 | | includes these itemized records, categorized by the names of | 15 | | the businesses within the Zone. The Department will issue these | 16 | | reports to the Board on a quarterly basis. | 17 | | (20 ILCS 655/8.2 new) | 18 | | Sec. 8.2. Zone Administrator. | 19 | | (a) Each Zone Administrator designated under Section 8 of | 20 | | this Act shall post a copy of the boundaries of the Enterprise | 21 | | Zone on its official Internet website and shall provide an | 22 | | electronic copy to the Department. The Department shall post | 23 | | each copy of the boundaries of an Enterprise Zone that it | 24 | | receives from a Zone Administrator on its official Internet |
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| 1 | | website. | 2 | | (b) The Zone Administrator shall collect and aggregate the | 3 | | following information: | 4 | | (1) the estimated cost of each building project, broken | 5 | | down into labor and materials; new estimates shall be | 6 | | provided each time an applicant requests an extension of | 7 | | the sales tax exemption certificate; and | 8 | | (2) within 60 days after the end of the project, the | 9 | | actual cost of each building project, broken down into | 10 | | labor and materials. | 11 | | (c) By April 1 of each year, each Zone Administrator shall | 12 | | file a copy of its fee schedule with the Department, and the | 13 | | Department shall review and approve the fee schedule. Zone | 14 | | Administrators shall charge no more than 0.1% of the actual | 15 | | cost of the project, with a maximum fee of no more than | 16 | | $100,000. | 17 | | Section 10. The Retailers' Occupation Tax Act is amended by | 18 | | changing Sections 1d, 1e, 1f, 1j, 1j.1, 1m, 1n, 5k, and 5l and | 19 | | by adding Section 6d as follows:
| 20 | | (35 ILCS 120/1d) (from Ch. 120, par. 440d)
| 21 | | Sec. 1d. Enterprise zone exemptions. | 22 | | (a) Until January 1, 2013, subject Subject to the | 23 | | provisions of Section 1f, all tangible personal
property to be | 24 | | used or consumed within an enterprise zone established
pursuant |
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| 1 | | to the "Illinois Enterprise Zone Act", as amended, or subject | 2 | | to
the provisions of Section 5.5 of the Illinois Enterprise | 3 | | Zone Act, all
tangible personal property to be used or consumed | 4 | | by any High Impact Business,
in the process of the | 5 | | manufacturing or assembly of tangible personal property
for | 6 | | wholesale or retail sale or lease or in the process of graphic | 7 | | arts
production if used or consumed at a facility which is a | 8 | | Department of
Commerce and Economic Opportunity certified | 9 | | business and located in a county
of more than 4,000 persons and | 10 | | less than 45,000 persons is exempt from
the tax imposed by
this | 11 | | Act. | 12 | | (b) Beginning on January 1, 2013, taxpayers who purchase | 13 | | (i) tangible personal
property to be used or consumed within an | 14 | | enterprise zone established
pursuant to the Illinois | 15 | | Enterprise Zone Act or (ii) tangible personal property to be | 16 | | used or consumed by any High Impact Business in the process of | 17 | | the manufacturing or assembly of tangible personal property
for | 18 | | wholesale or retail sale or lease or in the process of graphic | 19 | | arts
production that is used or consumed at a facility which is | 20 | | a Department of
Commerce and Economic Opportunity certified | 21 | | business and located in a county
of more than 4,000 persons and | 22 | | less than 45,000 persons are entitled to a refund under Section | 23 | | 6d. | 24 | | (c) This exemption includes repair and replacement parts | 25 | | for
machinery and equipment used primarily in the process of | 26 | | manufacturing or
assembling tangible personal property or in |
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| 1 | | the process of graphic arts
production if used or consumed at a | 2 | | facility which is a Department of
Commerce and Economic | 3 | | Opportunity certified business and located in a county
of more | 4 | | than 4,000 persons and less than 45,000 persons for wholesale | 5 | | or retail sale, or
lease, and equipment, manufacturing or | 6 | | graphic arts fuels, material and
supplies for the
maintenance, | 7 | | repair or operation of such manufacturing or assembling
or | 8 | | graphic arts machinery or equipment.
| 9 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 10 | | (35 ILCS 120/1e) (from Ch. 120, par. 440e)
| 11 | | Sec. 1e. Enterprise zone exemptions. | 12 | | (a) Until January 1, 2013, subject Subject to the | 13 | | provisions of Section 1f, or subject to the
provisions of | 14 | | Section 5.5 of the Illinois Enterprise Zone Act, all tangible
| 15 | | personal property to be used or consumed in the operation of | 16 | | pollution
control facilities, as defined in Section 1a of this | 17 | | Act, within an
enterprise zone established pursuant to the | 18 | | "Illinois Enterprise Zone Act",
as amended, shall be exempt | 19 | | from the tax imposed by this Act.
| 20 | | (b) Beginning on January 1, 2013, taxpayers who purchase | 21 | | tangible
personal property to be used or consumed in the | 22 | | operation of pollution
control facilities, as defined in | 23 | | Section 1a of this Act, within an
enterprise zone established | 24 | | pursuant to the Illinois Enterprise Zone Act are entitled to a | 25 | | refund under Section 6d. |
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| 1 | | (Source: P.A. 85-1182.)
| 2 | | (35 ILCS 120/1f) (from Ch. 120, par. 440f)
| 3 | | Sec. 1f. Except for High Impact Businesses, the exemption | 4 | | stated in
Sections 1d and 1e of this Act shall only apply to | 5 | | business enterprises which:
| 6 | | (1) either (i) make investments which cause the | 7 | | creation of a minimum of
200 full-time equivalent jobs in | 8 | | Illinois or (ii) make investments which
cause the retention | 9 | | of a minimum of 2000 full-time jobs in Illinois or
(iii) | 10 | | make investments of a minimum of $40,000,000 and retain at | 11 | | least
90% of the jobs in place on the date on which the | 12 | | exemption is granted and
for the duration of the exemption; | 13 | | and
| 14 | | (2) are located in an Enterprise Zone established | 15 | | pursuant to the
Illinois Enterprise Zone Act; and
| 16 | | (3) are certified by the Department of Commerce and | 17 | | Economic Opportunity as
complying with the requirements | 18 | | specified in clauses (1), (2) and (3).
| 19 | | Any business enterprise seeking to avail itself of the | 20 | | exemptions stated
in Sections 1d or 1e, or both, shall make | 21 | | application to the Department of
Commerce and Economic | 22 | | Opportunity in such form and providing such information
as may | 23 | | be prescribed by the Department of Commerce and Economic | 24 | | Opportunity.
However, no business enterprise shall be | 25 | | required, as a condition for
certification under clause (4) of |
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| 1 | | this Section, to attest that its decision
to invest under | 2 | | clause (1) of this Section and to locate under clause (2)
of | 3 | | this Section is predicated upon the availability of the | 4 | | exemptions
authorized by Sections 1d or 1e.
| 5 | | The Department of Commerce and Economic Opportunity shall | 6 | | determine whether
the business enterprise meets the criteria | 7 | | prescribed in this Section. If
the Department of Commerce and | 8 | | Economic Opportunity determines that such
business enterprise | 9 | | meets the criteria, it shall issue a certificate of
eligibility | 10 | | for exemption to the business enterprise in such form as is
| 11 | | prescribed by the Department of Revenue. The Department of | 12 | | Commerce and
Economic Opportunity shall act upon such | 13 | | certification requests within 60 days
after receipt of the | 14 | | application, and shall file with the Department of
Revenue a | 15 | | copy of each certificate of eligibility for exemption.
| 16 | | The Department of Commerce and Economic Opportunity shall | 17 | | have the power to
promulgate rules and regulations to carry out | 18 | | the provisions of this
Section including the power to define | 19 | | the amounts and types of eligible
investments not specified in | 20 | | this Section which business enterprises
must make in order to | 21 | | receive the exemptions stated in Sections 1d and 1e
of this | 22 | | Act; and to require that any business enterprise that is | 23 | | granted a
tax exemption repay the exempted tax if the business | 24 | | enterprise fails to
comply with the terms and conditions of the | 25 | | certification.
| 26 | | Such certificate of eligibility for exemption shall be |
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| 1 | | presented by the
business enterprise to its supplier when | 2 | | making the initial purchase of
tangible personal property for | 3 | | which an exemption is granted by Section 1d or
Section 1e, or | 4 | | both, together with a certification by the business enterprise
| 5 | | that such tangible personal property is exempt from taxation | 6 | | under Section
1d or Section 1e and by indicating the exempt | 7 | | status of each subsequent
purchase on the face of the purchase | 8 | | order.
| 9 | | The Department of Commerce and Economic Opportunity shall | 10 | | determine the
period during which such exemption from the taxes | 11 | | imposed under this Act is
in effect which shall not exceed 20 | 12 | | years.
| 13 | | This Section is subject to the provisions of Section 6d. | 14 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 15 | | (35 ILCS 120/1j) (from Ch. 120, par. 440j)
| 16 | | Sec. 1j. Exemption - Machinery or equipment used in the | 17 | | operation of
high impact service facilities. | 18 | | (a) Until January 1, 2013, subject Exemption - Machinery or | 19 | | Equipment used in the operation of
high impact service | 20 | | facilities. Subject to the provisions of Section 1i of
this | 21 | | Act, machinery or equipment used in the operation of a high | 22 | | impact
service facility, as defined in Section 1i of this Act, | 23 | | located within an
enterprise zone established pursuant to the | 24 | | Illinois Enterprise Zone Act
shall be exempt from the tax | 25 | | imposed by this Act. |
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| 1 | | (b) Beginning on January 1, 2013, purchasers of machinery | 2 | | or equipment used in the operation of a high impact
service | 3 | | facility, as defined in Section 1i of this Act, located within | 4 | | an
enterprise zone established pursuant to the Illinois | 5 | | Enterprise Zone Act
are entitled to a refund under Section 6d | 6 | | of this Act. | 7 | | (c) Machinery and equipment,
new and replacement, shall | 8 | | include, but not be limited to: (i) motor
driven heavy | 9 | | equipment not considered rolling stock which is used for the
| 10 | | purpose of transporting parcels, machinery, or equipment, or
| 11 | | trailers used for the shipment of parcels, and equipment used | 12 | | to maintain
and provide in-house services, within the confines | 13 | | of the
facility, and (ii) automated machinery and equipment | 14 | | used for the
purposes of transporting parcels within the | 15 | | facility, along with all
components, parts, pieces, and | 16 | | computer software or hardware contained in
the electronic | 17 | | control systems related thereto.
The Department of Revenue | 18 | | shall promulgate such rules and regulations as
necessary to | 19 | | further define machinery and equipment eligible for exemption
| 20 | | or a refund in a high impact service facility.
| 21 | | (Source: P.A. 85-1409.)
| 22 | | (35 ILCS 120/1j.1)
| 23 | | Sec. 1j.1. Exemption; jet fuel used in the operation of | 24 | | high impact
service
facilities. | 25 | | (a) January 1, 2013, subject Exemption; jet fuel used in |
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| 1 | | the operation of high impact
service
facilities.
Subject to the | 2 | | provisions of Section 1i of this Act, jet fuel and petroleum
| 3 | | products sold to and used in the conduct of its business of | 4 | | sorting, handling
and redistribution of mail, freight, cargo or | 5 | | other parcels in the operation of
a high impact service | 6 | | facility, as defined in Section 1i of this Act, located
within | 7 | | an enterprise zone established pursuant to the Illinois | 8 | | Enterprise Zone
Act shall be exempt from the tax imposed by | 9 | | this Act, provided that the
business enterprise has waived its | 10 | | right to a tax exemption of the charges
imposed under Section | 11 | | 9-222.1 of the Public Utilities Act. | 12 | | (b) Beginning on January 1, 2013, purchasers of jet fuel | 13 | | and petroleum
products sold to and used in the conduct of the | 14 | | purchaser's business of sorting, handling
and redistribution | 15 | | of mail, freight, cargo or other parcels in the operation of
a | 16 | | high impact service facility, as defined in Section 1i of this | 17 | | Act, located
within an enterprise zone established pursuant to | 18 | | the Illinois Enterprise Zone
Act
are entitled to a refund under | 19 | | Section 6d of this Act. | 20 | | (c) The Department of
Commerce and Economic Opportunity | 21 | | shall promulgate rules
necessary to further define jet fuel and | 22 | | petroleum products sold to, used, and
eligible for exemption in | 23 | | a high impact service facility. The minimum period
for which an | 24 | | exemption or reduction from taxes is granted by this Section is | 25 | | 10 years,
regardless of the duration of the enterprise zone in | 26 | | which the project is
located.
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| 1 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 2 | | (35 ILCS 120/1m) (from Ch. 120, par. 440m)
| 3 | | Sec. 1m. Aircraft maintenance
facilities; machinery and | 4 | | equipment. | 5 | | (a) Until January 1, 2013, subject Subject to the | 6 | | provisions of Section 1k of this Act,
machinery and equipment | 7 | | used in the operation of an aircraft maintenance
facility as | 8 | | defined in Section 1k, located within an enterprise zone shall
| 9 | | be exempt from the tax imposed by this Act. The machinery and | 10 | | equipment
exempted by this Section is limited to machinery and | 11 | | equipment used
primarily to maintain, rebuild or repair | 12 | | aircraft used as rolling stock
moving in interstate commerce | 13 | | for hire by the operator of the facility. | 14 | | (b) Beginning on January 1, 2013, purchasers of machinery | 15 | | and equipment used in the operation of an aircraft maintenance
| 16 | | facility, as defined in Section 1k, located within an | 17 | | enterprise zone are entitled to a refund under Section 6d of | 18 | | this Act. The refund is limited to machinery and equipment used
| 19 | | primarily to maintain, rebuild or repair aircraft used as | 20 | | rolling stock
moving in interstate commerce for hire by the | 21 | | operator of the facility. | 22 | | (c) The Department of Revenue shall promulgate any rules | 23 | | and regulations
necessary to further define machinery and | 24 | | equipment eligible for exemption
in an aircraft maintenance | 25 | | facility.
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| 1 | | (Source: P.A. 86-1490.)
| 2 | | (35 ILCS 120/1n) (from Ch. 120, par. 440n)
| 3 | | Sec. 1n. Aircraft maintenance
facilities; tangible
| 4 | | personal property. | 5 | | (a) Until January 1, 2013, subject Subject to the | 6 | | provisions of Section 1k, all tangible
personal property to be | 7 | | used or consumed, within an enterprise zone
established | 8 | | pursuant to the Illinois Enterprise Zone Act, by any aircraft
| 9 | | maintenance facility, directly in the process of maintaining, | 10 | | rebuilding or
repairing aircraft is exempt from the tax imposed | 11 | | by this Act. The
exemption includes repair and replacement | 12 | | parts for machinery and equipment
used primarily in the process | 13 | | of maintaining, rebuilding or repairing
aircraft, and also | 14 | | includes equipment, fuels, material and supplies for the
| 15 | | maintenance, repair or operation of such machinery or | 16 | | equipment.
| 17 | | (b) Beginning on January 1, 2013, purchasers of tangible
| 18 | | personal property to be used or consumed, within an enterprise | 19 | | zone
established pursuant to the Illinois Enterprise Zone Act, | 20 | | by any aircraft
maintenance facility, directly in the process | 21 | | of maintaining, rebuilding or
repairing aircraft are entitled | 22 | | to a refund under Section 6d of this Act. The
refund includes | 23 | | repair and replacement parts for machinery and equipment
used | 24 | | primarily in the process of maintaining, rebuilding or | 25 | | repairing
aircraft, and also includes equipment, fuels, |
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| 1 | | material and supplies for the
maintenance, repair or operation | 2 | | of such machinery or equipment. | 3 | | (Source: P.A. 86-1490.)
| 4 | | (35 ILCS 120/5k) (from Ch. 120, par. 444k)
| 5 | | Sec. 5k. Enterprise Zone; Building materials exemption and | 6 | | refund . | 7 | | (a) Until January 1, 2013, each Each retailer who makes a | 8 | | qualified sale of building
materials
to be incorporated into | 9 | | real estate in an enterprise zone
established by a county or | 10 | | municipality under the Illinois Enterprise Zone
Act
by | 11 | | remodeling,
rehabilitation or new construction, may deduct | 12 | | receipts from such sales
when calculating the tax imposed by | 13 | | this Act.
For purposes of this Section, "qualified sale" means | 14 | | a sale of building
materials that will be incorporated into | 15 | | real estate as part of a building
project for which a | 16 | | Certificate of Eligibility for Sales Tax Exemption has been
| 17 | | issued by the administrator of the enterprise zone in which the | 18 | | building
project is located. To document the exemption allowed | 19 | | under this Section, the
retailer must obtain from the purchaser | 20 | | a copy of the Certificate of
Eligibility for Sales Tax | 21 | | Exemption issued by the administrator of the
enterprise zone | 22 | | into which the building materials will be incorporated. The
| 23 | | Certificate of Eligibility for Sales Tax Exemption must | 24 | | contain:
| 25 | | (1) a statement that the building project identified in |
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| 1 | | the Certificate
meets all the requirements for the building | 2 | | material exemption contained in the
enterprise zone | 3 | | ordinance of the jurisdiction in which the building project | 4 | | is
located;
| 5 | | (2) the location or address of the building project; | 6 | | and
| 7 | | (3) the signature of the administrator of the | 8 | | enterprise zone in which the
building project is located.
| 9 | | In addition, the retailer must obtain certification from the | 10 | | purchaser that
contains:
| 11 | | (1) a statement that the building materials are being | 12 | | purchased for
incorporation into real estate located in an | 13 | | Illinois enterprise zone;
| 14 | | (2) the location or address of the real estate into | 15 | | which the building
materials will be incorporated;
| 16 | | (3) the name of the enterprise zone in which that real | 17 | | estate is located;
| 18 | | (4) a description of the building materials being | 19 | | purchased; and
| 20 | | (5) the purchaser's signature and date of purchase.
| 21 | | The deduction allowed by
this Section for the sale of building | 22 | | materials may be limited, to the
extent authorized by | 23 | | ordinance, adopted after the effective date of this
amendatory | 24 | | Act of 1992, by the municipality or county that created the
| 25 | | enterprise zone
into which the
building materials will be | 26 | | incorporated.
The ordinance, however, may neither require nor |
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| 1 | | prohibit the purchase of
building materials from any retailer | 2 | | or class of retailers in order to qualify
for the exemption | 3 | | allowed under this Section. The provisions of this Section
are | 4 | | exempt from Section
2-70.
| 5 | | (b) Beginning January 1, 2013, qualified purchasers may | 6 | | apply for a
refund under Section 6d of this Act for taxes paid | 7 | | on building
materials incorporated, by remodeling, | 8 | | rehabilitation, or new construction, into real estate in an | 9 | | enterprise zone
established by a county or municipality under | 10 | | the Illinois Enterprise
Zone Act. For
purposes of this Section, | 11 | | "qualified purchaser" means a purchaser of
building materials | 12 | | that have been incorporated into real estate as part
of a | 13 | | building project for which a Certificate of Eligibility for | 14 | | Sales
Tax Refund has been issued by the administrator of the | 15 | | enterprise zone
in which the building project is located. The | 16 | | refund allowed by this
subsection (b) for a qualified purchaser | 17 | | of building materials may be
limited, to the extent authorized | 18 | | by ordinance, by the municipality or
county that created the | 19 | | enterprise zone into which the building
materials will be | 20 | | incorporated. The ordinance, however, may neither
require nor | 21 | | prohibit the purchase of building materials from any
retailer | 22 | | or class of retailers in order to apply for the refunds
allowed | 23 | | under this Section. | 24 | | A business enterprise that possesses an effective | 25 | | Certificate of Eligibility for Sales Tax Exemption under | 26 | | subsection (a) of this Section need not apply for a Certificate |
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| 1 | | of Eligibility for Sales Tax Refund under this subsection (b). | 2 | | However, the administrator of the enterprise zone in which the | 3 | | building project is located shall replace all certificates | 4 | | issued under subsection (a) with Certificates of Eligibility | 5 | | for Sales Tax Refund and shall provide the Department of | 6 | | Revenue with copies of those certificates. The issuance of new | 7 | | certificates shall not extend the termination dates of the | 8 | | certificates issued under subsection (a). | 9 | | Any business enterprise that applies for a refund shall | 10 | | repay the
amount of any refund received to the Department of | 11 | | Revenue if the
business enterprise fails to comply with the | 12 | | terms and conditions of
the certification, and pay all | 13 | | penalties and interest on the amount of
refunds as determined | 14 | | by the Department of Revenue. The Department of
Revenue shall | 15 | | have the power to promulgate rules and regulations to
| 16 | | administer and enforce this requirement. | 17 | | (Source: P.A. 91-51, eff. 6-30-99; 91-954, eff. 1-1-02; 92-484, | 18 | | eff.
8-23-01; 92-779, eff. 8-6-02.)
| 19 | | (35 ILCS 120/5l) (from Ch. 120, par. 444l)
| 20 | | Sec. 5l. High impact businesses; building materials. | 21 | | (a) Beginning January 1, 1995, and until January 1, 2013, | 22 | | each retailer who makes a sale of
building materials that will | 23 | | be incorporated into a High Impact Business
location as | 24 | | designated by the Department of Commerce and Economic | 25 | | Opportunity
under Section 5.5 of the Illinois Enterprise Zone |
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| 1 | | Act may deduct receipts from
such sales when calculating only | 2 | | the 6.25% State rate of tax
imposed by this Act. Beginning on | 3 | | the effective date of this amendatory Act of
1995, a retailer | 4 | | may also deduct receipts from such sales when calculating any
| 5 | | applicable local taxes. However, until the effective date of | 6 | | this amendatory
Act of 1995, a retailer may file claims for | 7 | | credit or refund to recover the
amount of any applicable local | 8 | | tax paid on such sales. No retailer who is
eligible for the | 9 | | deduction or credit
under Section 5k of this Act for making a | 10 | | sale of building materials to be
incorporated into real estate | 11 | | in an enterprise zone by rehabilitation,
remodeling or new | 12 | | construction shall be eligible for the deduction or
credit | 13 | | authorized under this Section.
| 14 | | (b) Beginning on January 1, 2013, purchasers of building | 15 | | materials that will be incorporated into a High Impact Business
| 16 | | location as designated by the Department of Commerce and | 17 | | Economic Opportunity
under Section 5.5 of the Illinois | 18 | | Enterprise Zone Act are entitled to a refund under Section 6d | 19 | | of this Act. | 20 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 21 | | (35 ILCS 120/6d new) | 22 | | Sec. 6d. Refunds; enterprise zones. | 23 | | (a) On and after January 1, 2013, purchasers of tangible | 24 | | personal property described in Section 1d, 1e, 1f, 1i, 1j, | 25 | | 1j.1, 1j.2, 1k, 1m, 1n, 5k, or 5l may apply to the Department |
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| 1 | | for a refund of the taxes paid under this Act with respect to | 2 | | that property. Claims for refunds shall be prepared and filed | 3 | | quarterly upon forms provided by the Department. Each claim | 4 | | shall provide: | 5 | | (1) the name and principal business address of the | 6 | | claimant; | 7 | | (2) the period covered by the claim; | 8 | | (3) the amount of refund claimed and the Section of the | 9 | | Act under which
the refund is claimed; | 10 | | (4) the amount of tax paid; | 11 | | (5) for each qualifying retail
transaction, the | 12 | | transaction date, the name and address of the
retailer, the | 13 | | item or items purchased, the price of each item
purchased, | 14 | | the name of the enterprise zone or location where the item
| 15 | | or items are used or consumed; and | 16 | | (6) such other information as the
Department may | 17 | | reasonably require. | 18 | | (b) A claim for refund may not
be made more than 2 years | 19 | | after the date the tax is paid. | 20 | | (c) Upon receipt of any claim for
refund filed under this | 21 | | Section, any officer or employee of the
Department who is | 22 | | authorized in writing by the Director of Revenue to
acknowledge | 23 | | receipt of those claims on behalf of the Department shall
| 24 | | execute on behalf of the Department, and shall deliver or mail | 25 | | to the
claimant or his duly authorized agent, a written receipt | 26 | | acknowledging
that the claim has been filed with the |
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| 1 | | Department, describing the claim
in sufficient detail to | 2 | | identify it, and stating the date upon which the
claim was | 3 | | received by the Department. That written receipt shall be
prima | 4 | | facie evidence that the Department received the claim described
| 5 | | in such receipt and shall be prima facie evidence of the date | 6 | | when such
claim was received by the Department. In the absence | 7 | | of such a written
receipt, the records of the Department as to | 8 | | when the claim was
received by the Department, or as to whether | 9 | | or not the claim was
received at all by the Department, shall | 10 | | be deemed to be prima facie
correct upon these questions in the | 11 | | event of any dispute between the
claimant (or his legal | 12 | | representative) and the Department concerning
these questions. | 13 | | The Department may adopt rules requiring persons to
file claims | 14 | | for refunds electronically. | 15 | | As soon as practicable after a claim for refund is filed, | 16 | | the
Department shall examine the claim and determine the amount | 17 | | of refund to
which the claimant or, if the taxpayer has died or | 18 | | become incompetent, the taxpayer's legal representative, is | 19 | | entitled and
shall, by its Notice of Tentative Determination of | 20 | | Claim, notify the
claimant or his legal representative of that | 21 | | determination. The determination shall be prima facie correct. | 22 | | Proof of such a determination
by the Department may be made at | 23 | | any hearing before the Department or
in any legal proceeding by | 24 | | a reproduced copy of the Department's record
relating thereto, | 25 | | in the name of the Department under the certificate
of the | 26 | | Director of Revenue. Such reproduced copy shall, without |
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| 1 | | further
proof, be admitted into evidence before the Department | 2 | | or in any legal
proceeding, and shall be prima facie proof of | 3 | | the correctness of the
Department's determination, as shown | 4 | | therein. If such claimant, or the
legal representative of a | 5 | | deceased or incompetent taxpayer, within 60
days after the | 6 | | Department's Notice of Tentative Determination of Claim,
files | 7 | | a protest thereto and requests a hearing thereon, the | 8 | | Department
shall give notice to the claimant, or the legal | 9 | | representative of a
deceased taxpayer or a taxpayer who is | 10 | | under legal disability, of the
time and place fixed for a | 11 | | hearing, and shall hold a hearing in
conformity with the | 12 | | provisions of this Act, and following that hearing shall
issue | 13 | | its final determination of the amount, if any, found to be due | 14 | | as
a result of the hearing, to such claimant, or the legal | 15 | | representative
of a deceased taxpayer, or a taxpayer who is | 16 | | under legal disability.
The Department's final determination | 17 | | may be reviewed by the proper
Circuit Court, in the same | 18 | | manner, within the same time, upon the same
terms and | 19 | | conditions, and to the same extent as provided by Section 12
of | 20 | | this Act. | 21 | | If there has been an erroneous refund of tax
payable under | 22 | | this Act, a notice of tax liability may be issued at any
time | 23 | | within 4 years from the making of that refund, or within 6 | 24 | | years
from the making of that refund if it appears that any | 25 | | part of the
refund was induced by fraud or the | 26 | | misrepresentation of a material
fact. The amount of any |
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| 1 | | proposed
assessment set forth in the notice
shall be limited to | 2 | | the amount of the erroneous refund. | 3 | | If a protest to the Department's Notice of Tentative | 4 | | Determination
of Claim is not filed within 60 days and a | 5 | | request for a hearing
thereon is not made as provided in | 6 | | Section 6b of this Act, that
notice shall become and operate as | 7 | | a final determination upon the expiration of that 60-day | 8 | | period;
and, if the Department's Notice of Tentative | 9 | | Determination, upon
becoming a final determination, indicates | 10 | | no amount due to the
claimant, or, upon issuance of a credit | 11 | | memorandum or refund for the
amount, if any, found by the | 12 | | Department to be due, the claim in all its
aspects shall be | 13 | | closed and no longer open to protest, hearing,
judicial review, | 14 | | or by any other proceeding or action whatever, either
before | 15 | | the Department or in any court of this State. Claims for credit
| 16 | | or refund hereunder must be filed with and initially determined | 17 | | by the
Department, the remedy herein provided being exclusive; | 18 | | and no court
shall have jurisdiction to determine the merits of | 19 | | any claim except
upon review as provided herein.
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.".
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