Full Text of SB1633 97th General Assembly
SB1633 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1633 Introduced 2/9/2011, by Sen. Michael W. Frerichs SYNOPSIS AS INTRODUCED: |
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20 ILCS 655/5.3 | from Ch. 67 1/2, par. 608 |
35 ILCS 120/1f | from Ch. 120, par. 440f |
220 ILCS 5/9-222.1 | from Ch. 111 2/3, par. 9-222.1 |
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Amends the Illinois Enterprise Zone Act, the Retailers' Occupation Tax Act, and the Public Utilities Act. Provides that the corporate authorities of a county or municipality may extend an Enterprise Zone for an additional 20-year period. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Enterprise Zone Act is amended by | 5 | | changing Section 5.3 as follows:
| 6 | | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
| 7 | | Sec. 5.3. Certification of Enterprise Zones; Effective | 8 | | date.
| 9 | | (a) Approval of designated Enterprise Zones shall be made | 10 | | by the
Department by certification of the designating | 11 | | ordinance. The Department
shall promptly issue a certificate | 12 | | for each Enterprise Zone upon its
approval. The certificate | 13 | | shall be signed by the Director of the
Department, shall make | 14 | | specific reference to the designating ordinance,
which shall be | 15 | | attached thereto, and shall be filed in the office of the
| 16 | | Secretary of State. A certified copy of the Enterprise Zone | 17 | | Certificate, or
a duplicate original thereof, shall be recorded | 18 | | in the office of recorder
of deeds of the county in which the | 19 | | Enterprise Zone lies.
| 20 | | (b) An Enterprise Zone shall be effective upon its | 21 | | certification. The
Department shall transmit a copy of the | 22 | | certification to the Department
of Revenue, and to the | 23 | | designating municipality or county.
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| 1 | | Upon certification of an Enterprise Zone, the terms and | 2 | | provisions of the
designating ordinance shall be in effect, and | 3 | | may not be amended or repealed
except in accordance with | 4 | | Section 5.4.
| 5 | | (c) An Enterprise Zone shall be in effect for 30 calendar | 6 | | years, or for
a lesser number of years specified in the | 7 | | certified designating ordinance.
Enterprise Zones shall | 8 | | terminate at midnight of December 31 of the final
calendar year | 9 | | of the certified term, except as provided in Section 5.4 , | 10 | | unless the corporate authorities of the county or municipality | 11 | | that adopted the ordinance designating the Enterprise Zone | 12 | | elect to extend the zone for an additional 20-year period, in | 13 | | which case they shall so notify the Department .
| 14 | | (d) No more than 12 Enterprise Zones may be certified by | 15 | | the Department
in calendar year 1984, no more than 12 | 16 | | Enterprise Zones may be certified
by the Department in calendar | 17 | | year 1985, no more than 13 Enterprise
Zones may be certified by | 18 | | the Department in calendar year 1986, no
more than 15 | 19 | | Enterprise Zones may be certified by the Department in
calendar | 20 | | year 1987, and no more than 20 Enterprise Zones may be | 21 | | certified
by the Department in calendar year 1990. In other | 22 | | calendar years, no more
than 13 Enterprise Zones may be | 23 | | certified by the Department.
The Department may also designate | 24 | | up to 8 additional Enterprise Zones
outside the regular | 25 | | application cycle if warranted by the extreme economic
| 26 | | circumstances as determined by the Department. The Department |
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| 1 | | may also
designate one additional Enterprise Zone outside the | 2 | | regular application
cycle if an aircraft manufacturer agrees to | 3 | | locate
an aircraft manufacturing facility in the proposed | 4 | | Enterprise Zone.
Notwithstanding any
other provision of this | 5 | | Act, no more than 89 Enterprise Zones may be
certified by the | 6 | | Department for the 10 calendar years commencing with 1983.
The | 7 | | 7 additional Enterprise Zones authorized by Public Act
86-15 | 8 | | shall not lie within municipalities or unincorporated areas of
| 9 | | counties that abut or are contiguous to Enterprise Zones | 10 | | certified pursuant
to this Section prior to June 30, 1989. The | 11 | | 7 additional Enterprise
Zones (excluding the additional | 12 | | Enterprise Zone which may be designated
outside the regular | 13 | | application cycle) authorized by Public Act 86-1030
shall not | 14 | | lie within municipalities or unincorporated areas of counties
| 15 | | that abut or are contiguous to Enterprise Zones certified | 16 | | pursuant to this
Section prior to February 28, 1990. Beginning | 17 | | in calendar year 2004 and until
December 31, 2008, one | 18 | | additional enterprise zone may be certified by the
Department. | 19 | | In any calendar year, the
Department
may not certify more than | 20 | | 3 Zones located within the same municipality. The
Department | 21 | | may certify Enterprise Zones in each of the 10 calendar years
| 22 | | commencing with 1983. The Department may not certify more than | 23 | | a total of
18 Enterprise Zones located within the same county | 24 | | (whether within
municipalities or within unincorporated | 25 | | territory) for the 10 calendar years
commencing with 1983. | 26 | | Thereafter, the Department may not certify any
additional |
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| 1 | | Enterprise Zones, but may amend and rescind certifications of
| 2 | | existing Enterprise Zones in accordance with Section 5.4.
| 3 | | (e) Notwithstanding any other provision of law, if (i) the | 4 | | county board of
any county in which a current military base is | 5 | | located, in part or in whole, or
in which a military
base that | 6 | | has been closed within 20 years of the effective date of this
| 7 | | amendatory Act of 1998 is located, in part or in whole, adopts | 8 | | a designating
ordinance in accordance with Section 5 of this | 9 | | Act to designate the military
base in that county as an | 10 | | enterprise zone and (ii) the property otherwise
meets the
| 11 | | qualifications for an enterprise zone as prescribed in Section | 12 | | 4 of this Act,
then the Department may certify the designating | 13 | | ordinance or ordinances, as the
case may be.
| 14 | | (Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436, | 15 | | eff.
1-1-04.)
| 16 | | Section 10. The Retailers' Occupation Tax Act is amended by | 17 | | changing Section 1f as follows:
| 18 | | (35 ILCS 120/1f) (from Ch. 120, par. 440f)
| 19 | | Sec. 1f. Except for High Impact Businesses, the exemption | 20 | | stated in
Sections 1d and 1e of this Act shall only apply to | 21 | | business enterprises which:
| 22 | | (1) either (i) make investments which cause the | 23 | | creation of a minimum of
200 full-time equivalent jobs in | 24 | | Illinois or (ii) make investments which
cause the retention |
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| 1 | | of a minimum of 2000 full-time jobs in Illinois or
(iii) | 2 | | make investments of a minimum of $40,000,000 and retain at | 3 | | least
90% of the jobs in place on the date on which the | 4 | | exemption is granted and
for the duration of the exemption; | 5 | | and
| 6 | | (2) are located in an Enterprise Zone established | 7 | | pursuant to the
Illinois Enterprise Zone Act; and
| 8 | | (3) are certified by the Department of Commerce and | 9 | | Economic Opportunity as
complying with the requirements | 10 | | specified in clauses (1), (2) and (3).
| 11 | | Any business enterprise seeking to avail itself of the | 12 | | exemptions stated
in Sections 1d or 1e, or both, shall make | 13 | | application to the Department of
Commerce and Economic | 14 | | Opportunity in such form and providing such information
as may | 15 | | be prescribed by the Department of Commerce and Economic | 16 | | Opportunity.
However, no business enterprise shall be | 17 | | required, as a condition for
certification under clause (4) of | 18 | | this Section, to attest that its decision
to invest under | 19 | | clause (1) of this Section and to locate under clause (2)
of | 20 | | this Section is predicated upon the availability of the | 21 | | exemptions
authorized by Sections 1d or 1e.
| 22 | | The Department of Commerce and Economic Opportunity shall | 23 | | determine whether
the business enterprise meets the criteria | 24 | | prescribed in this Section. If
the Department of Commerce and | 25 | | Economic Opportunity determines that such
business enterprise | 26 | | meets the criteria, it shall issue a certificate of
eligibility |
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| 1 | | for exemption to the business enterprise in such form as is
| 2 | | prescribed by the Department of Revenue. The Department of | 3 | | Commerce and
Economic Opportunity shall act upon such | 4 | | certification requests within 60 days
after receipt of the | 5 | | application, and shall file with the Department of
Revenue a | 6 | | copy of each certificate of eligibility for exemption.
| 7 | | The Department of Commerce and Economic Opportunity shall | 8 | | have the power to
promulgate rules and regulations to carry out | 9 | | the provisions of this
Section including the power to define | 10 | | the amounts and types of eligible
investments not specified in | 11 | | this Section which business enterprises
must make in order to | 12 | | receive the exemptions stated in Sections 1d and 1e
of this | 13 | | Act; and to require that any business enterprise that is | 14 | | granted a
tax exemption repay the exempted tax if the business | 15 | | enterprise fails to
comply with the terms and conditions of the | 16 | | certification.
| 17 | | Such certificate of eligibility for exemption shall be | 18 | | presented by the
business enterprise to its supplier when | 19 | | making the initial purchase of
tangible personal property for | 20 | | which an exemption is granted by Section 1d or
Section 1e, or | 21 | | both, together with a certification by the business enterprise
| 22 | | that such tangible personal property is exempt from taxation | 23 | | under Section
1d or Section 1e and by indicating the exempt | 24 | | status of each subsequent
purchase on the face of the purchase | 25 | | order.
| 26 | | The Department of Commerce and Economic Opportunity shall |
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| 1 | | determine the
period during which such exemption from the taxes | 2 | | imposed under this Act is
in effect which shall not exceed 50 | 3 | | 20 years.
| 4 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 5 | | Section 15. The Public Utilities Act is amended by changing | 6 | | Section 9-222.1 as follows:
| 7 | | (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
| 8 | | Sec. 9-222.1. A business enterprise which is located within | 9 | | an area
designated by a county or municipality as an enterprise | 10 | | zone pursuant to
the Illinois Enterprise Zone Act or located in | 11 | | a federally designated
Foreign Trade Zone or Sub-Zone shall be | 12 | | exempt from the additional charges
added to the business | 13 | | enterprise's utility bills as a pass-on of municipal
and State | 14 | | utility taxes under Sections 9-221 and 9-222 of this Act, to
| 15 | | the extent such charges are exempted by ordinance adopted in | 16 | | accordance
with paragraph (e) of Section 8-11-2 of the Illinois | 17 | | Municipal Code in the
case of municipal utility taxes, and to | 18 | | the extent such
charges are exempted by the percentage | 19 | | specified by the Department of
Commerce and Economic | 20 | | Opportunity in the case of State utility taxes, provided
such | 21 | | business enterprise meets the following criteria:
| 22 | | (1) it (i) makes investments which cause the creation | 23 | | of a
minimum of 200 full-time equivalent jobs in Illinois; | 24 | | (ii) makes investments
of at least $175,000,000 which cause |
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| 1 | | the creation of a minimum of 150 full-time
equivalent jobs | 2 | | in Illinois; (iii) makes investments that cause the | 3 | | retention of a minimum of 300 full-time equivalent jobs in | 4 | | the manufacturing sector, as defined by the North American | 5 | | Industry Classification System, in an area in Illinois in | 6 | | which the unemployment rate is above 9% and makes an | 7 | | application to the Department within 3 months after the | 8 | | effective date of this amendatory Act of the 96th General | 9 | | Assembly and certifies relocation of the 300 full-time | 10 | | equivalent jobs within 36 months after the application; | 11 | | (iv) makes
investments which cause the retention of a | 12 | | minimum of 1,000 full-time jobs
in Illinois; or (v) makes | 13 | | an application to the Department within 2 months after the | 14 | | effective date of this amendatory Act of the 96th General | 15 | | Assembly and makes investments that cause the retention of | 16 | | a minimum of 500 full-time equivalent jobs in 2009 and | 17 | | 2010, 675 full-time jobs in Illinois in 2011, 850 full-time | 18 | | jobs in 2012, and 1,000 full-time jobs in 2013, in the | 19 | | manufacturing sector as defined by the North American | 20 | | Industry Classification System; and
| 21 | | (2) it is either (i) located in an Enterprise Zone | 22 | | established
pursuant to the Illinois Enterprise Zone Act or | 23 | | (ii)
located in a federally designated Foreign Trade Zone | 24 | | or Sub-Zone and is
designated a High Impact Business by the | 25 | | Department of Commerce and
Economic Opportunity; and
| 26 | | (3) it is certified by the Department of Commerce and |
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| 1 | | Economic Opportunity as complying with the requirements | 2 | | specified in clauses (1) and (2)
of this Section.
| 3 | | The Department of Commerce and Economic Opportunity shall | 4 | | determine the
period during which such exemption from the | 5 | | charges imposed under Section
9-222 is in effect which shall
| 6 | | not exceed 30 years or the certified term of the enterprise | 7 | | zone,
or the extended term of the enterprise zone if the zone | 8 | | is extended by the corporate authorities of the county or | 9 | | municipality that adopted the ordinance designating the | 10 | | Enterprise Zone whichever period is shorter , except that the | 11 | | exemption period for a business enterprise qualifying under | 12 | | item (iii) of clause (1) of this Section shall not exceed 50 30 | 13 | | years.
| 14 | | The Department of Commerce and Economic Opportunity shall | 15 | | have the power to
promulgate rules and regulations to carry out | 16 | | the provisions of this
Section including procedures for | 17 | | complying with the requirements specified
in clauses (1) and | 18 | | (2) of this Section and procedures
for applying for the | 19 | | exemptions authorized under this Section; to
define the amounts | 20 | | and types of eligible investments which
business enterprises | 21 | | must make in order to receive State utility tax
exemptions | 22 | | pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
| 23 | | such utility tax exemptions for business enterprises whose | 24 | | investments are
not yet placed in service; and to require that | 25 | | business enterprises granted
tax exemptions repay the exempted | 26 | | tax should the business enterprise fail
to comply with the |
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| 1 | | terms and conditions of the certification. However, no
business | 2 | | enterprise shall be required, as a condition for certification
| 3 | | under clause (3) of this Section, to attest that its
decision | 4 | | to invest under clause (1) of this Section and
to locate under | 5 | | clause (2) of this Section is predicated
upon the availability | 6 | | of the exemptions authorized by this Section.
| 7 | | A business enterprise shall be exempt, in whole
or in part, | 8 | | from the pass-on charges of municipal utility taxes imposed
| 9 | | under Section 9-221, only if it meets the criteria
specified in | 10 | | clauses (1) through (3) of this Section and
the municipality | 11 | | has adopted an ordinance authorizing the
exemption under | 12 | | paragraph (e) of Section 8-11-2 of the Illinois Municipal
Code. | 13 | | Upon certification of the business enterprises by the
| 14 | | Department of Commerce and Economic Opportunity, the | 15 | | Department of Commerce
and Economic Opportunity shall notify | 16 | | the Department of Revenue of such
certification. The Department | 17 | | of Revenue shall notify the public utilities
of the exemption | 18 | | status of business enterprises from the pass-on charges of
| 19 | | State and municipal utility taxes. Such exemption status shall | 20 | | be
effective within 3 months after certification of the | 21 | | business enterprise.
| 22 | | (Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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