Full Text of SB0486 100th General Assembly
SB0486sam001 100TH GENERAL ASSEMBLY | Sen. Don Harmon Filed: 3/1/2018
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| 1 | | AMENDMENT TO SENATE BILL 486
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 486 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by adding | 5 | | Division 20 to Article 10 as follows: | 6 | | (35 ILCS 200/Art. 10 Div. 20 heading new) | 7 | | Division 20. Commercial solar energy systems | 8 | | (35 ILCS 200/10-720 new) | 9 | | Sec. 10-720. Definitions. For the purposes of this Division | 10 | | 20: | 11 | | "Allowance for physical depreciation" means (i) the actual | 12 | | age in years of the commercial solar energy system on the | 13 | | assessment date divided by 20 years multiplied by (ii) its | 14 | | trended real property cost basis. The physical depreciation, | 15 | | however, may not reduce the value of the commercial solar |
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| 1 | | energy system to less than 30% of its trended real property | 2 | | cost basis. | 3 | | "Commercial solar energy system" means any device or | 4 | | assembly of devices that (i) is ground installed and (ii) uses | 5 | | solar energy from the sun for generating electricity for the | 6 | | primary purpose of wholesale or retail sale and not primarily | 7 | | for consumption on the property on which the device or devices | 8 | | reside. | 9 | | "Commercial solar energy system real property cost basis" | 10 | | represents both the freehold estate and the leasehold estate. | 11 | | The leasehold estate shall have a real property cost basis of | 12 | | $194,000 per megawatt of nameplate capacity. The freehold | 13 | | estate shall have a real property cost basis of $5,000 per | 14 | | megawatt of nameplate capacity. For the purposes of this | 15 | | Section, "nameplate capacity" has the same definition as found | 16 | | in Section 1-10 of the Illinois Power Agency Act. | 17 | | "Freehold estate" means the land upon which the commercial | 18 | | solar energy system is installed. | 19 | | "Ground installed" means the installation of a commercial | 20 | | solar energy system, with the primary purpose of solar energy | 21 | | generation for wholesale or retail sale, on a parcel or tract | 22 | | of land. | 23 | | "Leasehold estate" means the real property improvements of | 24 | | a commercial solar energy system. | 25 | | "Trended real property cost basis" means the commercial | 26 | | solar energy system real property cost basis multiplied by the |
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| 1 | | trending factor. | 2 | | "Trending factor" means a number equal to the Consumer | 3 | | Price Index (U.S. city average all items) published by the | 4 | | Bureau of Labor Statistics for the December immediately | 5 | | preceding the assessment date, divided by the Consumer Price | 6 | | Index (U.S. city average all items) published by the Bureau of | 7 | | Labor Statistics for December of 2017. | 8 | | (35 ILCS 200/10-725 new) | 9 | | Sec. 10-725. Improvement valuation of commercial solar | 10 | | energy systems in counties with fewer than 3,000,000 | 11 | | inhabitants. Beginning in assessment year 2018, the fair cash | 12 | | value of commercial solar energy system improvements in | 13 | | counties with fewer than 3,000,000 inhabitants shall be | 14 | | determined by subtracting the allowance for physical | 15 | | depreciation from the trended real property cost basis. | 16 | | Functional obsolescence and external obsolescence of the solar | 17 | | energy device may further reduce the fair cash value of the | 18 | | commercial solar energy system improvements, to the extent they | 19 | | are proved by the taxpayer by clear and convincing evidence. | 20 | | (35 ILCS 200/10-730 new) | 21 | | Sec. 10-730. Exempt properties. The provisions of this | 22 | | Division do not apply to commercial solar energy systems that | 23 | | are owned by any person or entity that is otherwise exempt from | 24 | | taxation under this Code. |
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| 1 | | (35 ILCS 200/10-735 new) | 2 | | Sec. 10-735. Commercial solar energy systems not subject to | 3 | | equalization. Commercial solar energy systems assessable under | 4 | | this Division are not subject to equalization factors applied | 5 | | by the Department or any board of review, assessor, or chief | 6 | | county assessment officer. | 7 | | (35 ILCS 200/10-740 new) | 8 | | Sec. 10-740. Survey for ground installed commercial solar | 9 | | energy systems; parcel identification numbers. Notwithstanding | 10 | | any other provision of law, the owner of the ground installed | 11 | | commercial solar energy system shall commission a metes and | 12 | | bounds survey description of the area immediately surrounding | 13 | | the commercial solar energy system, including access routes, | 14 | | over which the owner of the commercial solar energy system has | 15 | | exclusive control. The owner of the ground installed commercial | 16 | | solar energy system shall, at his or her own expense, use an | 17 | | Illinois-registered land surveyor to prepare the survey. The | 18 | | owner of the ground installed commercial solar energy system | 19 | | shall deliver a copy of the survey to the chief county | 20 | | assessment officer and to the owner of the land upon which the | 21 | | ground installed commercial solar energy system is | 22 | | constructed. Upon receiving a copy of the survey, the chief | 23 | | county assessment officer shall issue a separate parcel | 24 | | identification number or numbers for the property containing |
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| 1 | | the ground installed commercial solar energy system to be used | 2 | | only for the purposes of property assessment for taxation. A | 3 | | plat prepared under this Section shall not be construed as a | 4 | | violation of the Plat Act. | 5 | | (35 ILCS 200/10-745 new) | 6 | | Sec. 10-745. Unpaid taxes and liens. Except as otherwise | 7 | | provided in this Section, despite the combined assessment | 8 | | valuation of the leasehold estate and freehold estate, recourse | 9 | | for unpaid taxes or liens for any commercial solar energy | 10 | | system shall be limited to the leasehold estate with no | 11 | | recourse against the freehold estate. The leasehold estate | 12 | | shall not be responsible for: unpaid taxes or liens on the | 13 | | freehold estate from periods before or after the term of the | 14 | | leasehold estate; or liens on the freehold estate unrelated to | 15 | | the leasehold estate. | 16 | | (35 ILCS 200/10-750 new) | 17 | | Sec. 10-750. Farmland. Notwithstanding any other provision | 18 | | of law, a portion of the freehold estate that was assessed as | 19 | | farmland in accordance with Section 10-110 of this Act in the | 20 | | assessment year prior to valuation under this Division shall | 21 | | return to being assessed as farmland in accordance with Section | 22 | | 10-110 of this Act in the year following completion of the | 23 | | removal of the commercial solar energy system as long as the | 24 | | property is returned to a farm use as defined in Section 1-60 |
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| 1 | | of this Act, notwithstanding that the land was not used for | 2 | | farming for the 2 preceding years. | 3 | | (35 ILCS 200/10-755 new) | 4 | | Sec. 10-755. Incentive agreements. Notwithstanding | 5 | | anything in this Division, the governing body of a municipality | 6 | | or county and the owner of a commercial solar energy system may | 7 | | enter into a voluntary agreement to make payments in lieu of | 8 | | taxes. If such agreement is entered into, the agreement will be | 9 | | in lieu of property taxes otherwise assessed by the | 10 | | municipality or county against the commercial solar energy | 11 | | system as set forth in this Code. | 12 | | (35 ILCS 200/10-760 new) | 13 | | Sec. 10-760. Applicability. The provisions of this | 14 | | Division apply for assessment years 2018 through 2033.
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
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