Full Text of HB0238 99th General Assembly
HB0238 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB0238 Introduced , by Rep. Sam Yingling SYNOPSIS AS INTRODUCED: |
| |
Amends the Property Tax Code. Provides that a taxing district may order
the county clerk to abate any portion of its taxes on property used by a business that did not have a location in the State in the previous taxable year. Provides that the abatement may not exceed $1,000,000 for all taxing districts in any taxable year. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
|
| | | HB0238 | | LRB099 03773 HLH 23786 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by adding | 5 | | Section 18-165 as follows:
| 6 | | (35 ILCS 200/18-165)
| 7 | | Sec. 18-165. Abatement of taxes.
| 8 | | (a) Any taxing district, upon a majority vote of its | 9 | | governing authority,
may, after the determination of the | 10 | | assessed valuation of its property, order
the clerk of that | 11 | | county to abate any portion of its taxes on the following
types | 12 | | of property:
| 13 | | (1) Commercial and industrial.
| 14 | | (A) The property of any commercial or industrial | 15 | | firm,
including but not limited to the property of (i) | 16 | | any firm that
is used for collecting, separating, | 17 | | storing, or processing recyclable
materials, locating | 18 | | within the taxing district during the immediately | 19 | | preceding
year from another state, territory, or | 20 | | country, or having been newly created
within this State | 21 | | during the immediately preceding year, or expanding an
| 22 | | existing facility, or (ii) any firm that is used for | 23 | | the generation and
transmission of
electricity |
| | | HB0238 | - 2 - | LRB099 03773 HLH 23786 b |
|
| 1 | | locating within the taxing district during the | 2 | | immediately
preceding year or expanding its presence | 3 | | within the taxing district during the
immediately | 4 | | preceding year by construction of a new electric | 5 | | generating
facility that uses natural gas as its fuel, | 6 | | or any firm that is used for
production operations at a | 7 | | new,
expanded, or reopened coal mine within the taxing | 8 | | district, that
has been certified as a High Impact | 9 | | Business by the Illinois Department of
Commerce and | 10 | | Economic Opportunity. The property of any firm used for | 11 | | the
generation and transmission of electricity shall | 12 | | include all property of the
firm used for transmission | 13 | | facilities as defined in Section 5.5 of the Illinois
| 14 | | Enterprise Zone Act. The abatement shall not exceed a | 15 | | period of 10 years
and the aggregate amount of abated | 16 | | taxes for all taxing districts combined
shall not | 17 | | exceed $4,000,000.
| 18 | | (A-5) Any property in the taxing district of a new | 19 | | electric generating
facility, as defined in Section | 20 | | 605-332 of the Department of Commerce and
Economic | 21 | | Opportunity Law of the Civil Administrative Code of | 22 | | Illinois.
The abatement shall not exceed a period of 10 | 23 | | years.
The abatement shall be subject to the following | 24 | | limitations:
| 25 | | (i) if the equalized assessed valuation of the | 26 | | new electric generating
facility is equal to or |
| | | HB0238 | - 3 - | LRB099 03773 HLH 23786 b |
|
| 1 | | greater than $25,000,000 but less
than | 2 | | $50,000,000, then the abatement may not exceed (i) | 3 | | over the entire term
of the abatement, 5% of the | 4 | | taxing district's aggregate taxes from the
new | 5 | | electric generating facility and (ii) in any one
| 6 | | year of abatement, 20% of the taxing district's | 7 | | taxes from the
new electric generating facility;
| 8 | | (ii) if the equalized assessed valuation of | 9 | | the new electric
generating facility is equal to or | 10 | | greater than $50,000,000 but less
than | 11 | | $75,000,000, then the abatement may not exceed (i) | 12 | | over the entire term
of the abatement, 10% of the | 13 | | taxing district's aggregate taxes from the
new | 14 | | electric generating facility and (ii) in any one
| 15 | | year of abatement, 35% of the taxing district's | 16 | | taxes from the
new electric generating facility;
| 17 | | (iii) if the equalized assessed valuation of | 18 | | the new electric
generating facility
is equal to or | 19 | | greater than $75,000,000 but less
than | 20 | | $100,000,000, then the abatement may not exceed | 21 | | (i) over the entire term
of the abatement, 20% of | 22 | | the taxing district's aggregate taxes from the
new | 23 | | electric generating facility and (ii) in any one
| 24 | | year of abatement, 50% of the taxing district's | 25 | | taxes from the
new electric generating facility;
| 26 | | (iv) if the equalized assessed valuation of |
| | | HB0238 | - 4 - | LRB099 03773 HLH 23786 b |
|
| 1 | | the new electric
generating facility is equal to or | 2 | | greater than $100,000,000 but less
than | 3 | | $125,000,000, then the
abatement may not exceed | 4 | | (i) over the entire term of the abatement, 30% of | 5 | | the
taxing district's aggregate taxes from the new | 6 | | electric generating facility
and (ii) in any one | 7 | | year of abatement, 60% of the taxing
district's | 8 | | taxes from the new electric generating facility;
| 9 | | (v) if the equalized assessed valuation of the | 10 | | new electric generating
facility is equal to or | 11 | | greater than $125,000,000 but less
than | 12 | | $150,000,000, then the
abatement may not exceed | 13 | | (i) over the entire term of the abatement, 40% of | 14 | | the
taxing district's aggregate taxes from the new | 15 | | electric generating facility
and (ii) in any one | 16 | | year of abatement, 60% of the taxing
district's | 17 | | taxes from the new electric generating facility;
| 18 | | (vi) if the equalized assessed valuation of | 19 | | the new electric
generating facility is equal to or | 20 | | greater than $150,000,000, then the
abatement may | 21 | | not exceed (i) over the entire term of the | 22 | | abatement, 50% of the
taxing district's aggregate | 23 | | taxes from the new electric generating facility
| 24 | | and (ii) in any one year of abatement, 60% of the | 25 | | taxing
district's taxes from the new electric | 26 | | generating facility.
|
| | | HB0238 | - 5 - | LRB099 03773 HLH 23786 b |
|
| 1 | | The abatement is not effective unless
the owner of | 2 | | the new electric generating facility agrees to
repay to | 3 | | the taxing district all amounts previously abated, | 4 | | together with
interest computed at the rate and in the | 5 | | manner provided for delinquent taxes,
in the event that | 6 | | the owner of the new electric generating facility | 7 | | closes the
new electric generating facility before the | 8 | | expiration of the
entire term of the abatement.
| 9 | | The authorization of taxing districts to abate | 10 | | taxes under this
subdivision (a)(1)(A-5) expires on | 11 | | January 1, 2010.
| 12 | | (B) The property of any commercial or industrial
| 13 | | development of at least (i) 500 acres or (ii) 225 acres | 14 | | in the case of a commercial or industrial
development | 15 | | that applies for and is granted designation as a High | 16 | | Impact Business under paragraph (F) of item (3) of | 17 | | subsection (a) of Section 5.5 of the Illinois | 18 | | Enterprise Zone Act, having been created within the | 19 | | taxing
district. The abatement shall not exceed a | 20 | | period of 20 years and the
aggregate amount of abated | 21 | | taxes for all taxing districts combined shall not
| 22 | | exceed $12,000,000.
| 23 | | (C) The property of any commercial or industrial | 24 | | firm currently
located in the taxing district that | 25 | | expands a facility or its number of
employees. The | 26 | | abatement shall not exceed a period of 10 years and the
|
| | | HB0238 | - 6 - | LRB099 03773 HLH 23786 b |
|
| 1 | | aggregate amount of abated taxes for all taxing | 2 | | districts combined shall not
exceed $4,000,000. The | 3 | | abatement period may be renewed at the option of the
| 4 | | taxing districts.
| 5 | | (2) Horse racing. Any property in the taxing district | 6 | | which
is used for the racing of horses and upon which | 7 | | capital improvements consisting
of expansion, improvement | 8 | | or replacement of existing facilities have been made
since | 9 | | July 1, 1987. The combined abatements for such property | 10 | | from all taxing
districts in any county shall not exceed | 11 | | $5,000,000 annually and shall not
exceed a period of 10 | 12 | | years.
| 13 | | (3) Auto racing. Any property designed exclusively for | 14 | | the racing of
motor vehicles. Such abatement shall not | 15 | | exceed a period of 10 years.
| 16 | | (4) Academic or research institute. The property of any | 17 | | academic or
research institute in the taxing district that | 18 | | (i) is an exempt organization
under paragraph (3) of | 19 | | Section 501(c) of the Internal Revenue Code, (ii)
operates | 20 | | for the benefit of the public by actually and exclusively | 21 | | performing
scientific research and making the results of | 22 | | the research available to the
interested public on a | 23 | | non-discriminatory basis, and (iii) employs more than
100 | 24 | | employees. An abatement granted under this paragraph shall | 25 | | be for at
least 15 years and the aggregate amount of abated | 26 | | taxes for all taxing
districts combined shall not exceed |
| | | HB0238 | - 7 - | LRB099 03773 HLH 23786 b |
|
| 1 | | $5,000,000.
| 2 | | (5) Housing for older persons. Any property in the | 3 | | taxing district that
is devoted exclusively to affordable | 4 | | housing for older households. For
purposes of this | 5 | | paragraph, "older households" means those households (i)
| 6 | | living in housing provided under any State or federal | 7 | | program that the
Department of Human Rights determines is | 8 | | specifically designed and operated to
assist elderly | 9 | | persons and is solely occupied by persons 55 years of age | 10 | | or
older and (ii) whose annual income does not exceed 80% | 11 | | of the area gross median
income, adjusted for family size, | 12 | | as such gross income and median income are
determined from | 13 | | time to time by the United States Department of Housing and
| 14 | | Urban Development. The abatement shall not exceed a period | 15 | | of 15 years, and
the aggregate amount of abated taxes for | 16 | | all taxing districts shall not exceed
$3,000,000.
| 17 | | (6) Historical society. For assessment years 1998 | 18 | | through 2018, the
property of an historical society | 19 | | qualifying as an exempt organization under
Section | 20 | | 501(c)(3) of the federal Internal Revenue Code.
| 21 | | (7) Recreational facilities. Any property in the | 22 | | taxing district (i)
that is used for a municipal airport, | 23 | | (ii) that
is subject to a leasehold assessment under | 24 | | Section 9-195 of this Code and (iii)
which
is sublet from a | 25 | | park district that is leasing the property from a
| 26 | | municipality, but only if the property is used exclusively |
| | | HB0238 | - 8 - | LRB099 03773 HLH 23786 b |
|
| 1 | | for recreational
facilities or for parking lots used | 2 | | exclusively for those facilities. The
abatement shall not | 3 | | exceed a period of 10 years.
| 4 | | (8) Relocated corporate headquarters. If approval | 5 | | occurs within 5 years
after the effective date of this | 6 | | amendatory Act of the 92nd General Assembly,
any property | 7 | | or a portion of any property in a taxing district that is | 8 | | used by
an eligible business for a corporate headquarters | 9 | | as defined in the Corporate
Headquarters Relocation Act. | 10 | | Instead of an abatement under this paragraph (8),
a taxing | 11 | | district may enter into an agreement with an eligible | 12 | | business to make
annual payments to that eligible business | 13 | | in an amount not to exceed the
property taxes paid directly | 14 | | or indirectly by that eligible business to the
taxing | 15 | | district and any other taxing districts for
premises | 16 | | occupied pursuant to a written lease and may make those | 17 | | payments
without the need for an annual appropriation. No | 18 | | school district, however, may
enter into an agreement with, | 19 | | or abate taxes for, an eligible business unless
the | 20 | | municipality in which the corporate headquarters is | 21 | | located agrees to
provide funding to the school district in | 22 | | an amount equal to the amount abated
or paid by the school | 23 | | district as provided in this paragraph (8).
Any abatement | 24 | | ordered or
agreement entered into under this paragraph (8) | 25 | | may be effective for the entire
term specified by the | 26 | | taxing district, except the term of the abatement or
annual |
| | | HB0238 | - 9 - | LRB099 03773 HLH 23786 b |
|
| 1 | | payments may not exceed 20 years. | 2 | | (9) United States Military Public/Private Residential | 3 | | Developments. Each building, structure, or other | 4 | | improvement designed, financed, constructed, renovated, | 5 | | managed, operated, or maintained after January 1, 2006 | 6 | | under a "PPV Lease", as set forth under Division 14 of | 7 | | Article 10, and any such PPV Lease.
| 8 | | (10) Property located in a business corridor that | 9 | | qualifies for an abatement under Section 18-184.10. | 10 | | (11) Property used by a business that did not have a | 11 | | location in the State in the previous taxable year. The | 12 | | abatement under this item (11) may not exceed $1,000,000 | 13 | | for all taxing districts in any taxable year. | 14 | | (b) Upon a majority vote of its governing authority, any | 15 | | municipality
may, after the determination of the assessed | 16 | | valuation of its property, order
the county clerk to abate any | 17 | | portion of its taxes on any property that is
located within the | 18 | | corporate limits of the municipality in accordance with
Section | 19 | | 8-3-18 of the Illinois Municipal Code.
| 20 | | (Source: P.A. 97-577, eff. 1-1-12; 97-636, eff. 6-1-12; 98-109, | 21 | | eff. 7-25-13.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
|
|