Full Text of HB3239 97th General Assembly
HB3239 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3239 Introduced 2/24/2011, by Rep. Chad Hays SYNOPSIS AS INTRODUCED: |
| 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 Retailers' Occupation Tax Act. Provides that the exemption for property used in an enterprise zone applies to businesses that make investments of at least $20,000,000 and cause the creation of a minimum of 40 (instead of 200) full-time jobs in Illinois or make investments that cause the retention of a minimum of 500 (instead of 2,000) full-time jobs in Illinois. Amends the Public Utilities Act. Provides that the exemption for businesses located in an enterprise zone applies to businesses that (i) make investments of at least $20,000,000 and cause the creation of a
minimum of 40 (instead of 200) full-time equivalent jobs in Illinois, (ii) make investments
of at least $175,000,000 which cause the creation of a minimum of 30 (instead of 150) full-time equivalent jobs in Illinois, or (iii) make
investments of at least $100,000,000 which cause the retention of a minimum of 200 (instead of 1,000) full-time jobs
in Illinois.
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| | A BILL FOR |
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| 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 Retailers' Occupation Tax Act is amended by | 5 | | changing Section 1f as follows:
| 6 | | (35 ILCS 120/1f) (from Ch. 120, par. 440f)
| 7 | | Sec. 1f. Except for High Impact Businesses, the exemption | 8 | | stated in
Sections 1d and 1e of this Act shall only apply to | 9 | | business enterprises which:
| 10 | | (1) either (i) make investments of at least $20,000,000 | 11 | | which cause the creation of a minimum of
40 200 full-time | 12 | | equivalent jobs in Illinois or (ii) make investments which
| 13 | | cause the retention of a minimum of 500 2000 full-time jobs | 14 | | in Illinois or
(iii) make investments of a minimum of | 15 | | $40,000,000 and retain at least
90% of the jobs in place on | 16 | | the date on which the exemption is granted and
for the | 17 | | duration of the exemption; and
| 18 | | (2) are located in an Enterprise Zone established | 19 | | pursuant to the
Illinois Enterprise Zone Act; and
| 20 | | (3) are certified by the Department of Commerce and | 21 | | Economic Opportunity as
complying with the requirements | 22 | | specified in clauses (1), (2) and (3).
| 23 | | Any business enterprise seeking to avail itself of the |
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| 1 | | exemptions stated
in Sections 1d or 1e, or both, shall make | 2 | | application to the Department of
Commerce and Economic | 3 | | Opportunity in such form and providing such information
as may | 4 | | be prescribed by the Department of Commerce and Economic | 5 | | Opportunity.
However, no business enterprise shall be | 6 | | required, as a condition for
certification under clause (4) of | 7 | | this Section, to attest that its decision
to invest under | 8 | | clause (1) of this Section and to locate under clause (2)
of | 9 | | this Section is predicated upon the availability of the | 10 | | exemptions
authorized by Sections 1d or 1e.
| 11 | | The Department of Commerce and Economic Opportunity shall | 12 | | determine whether
the business enterprise meets the criteria | 13 | | prescribed in this Section. If
the Department of Commerce and | 14 | | Economic Opportunity determines that such
business enterprise | 15 | | meets the criteria, it shall issue a certificate of
eligibility | 16 | | for exemption to the business enterprise in such form as is
| 17 | | prescribed by the Department of Revenue. The Department of | 18 | | Commerce and
Economic Opportunity shall act upon such | 19 | | certification requests within 60 days
after receipt of the | 20 | | application, and shall file with the Department of
Revenue a | 21 | | copy of each certificate of eligibility for exemption.
| 22 | | The Department of Commerce and Economic Opportunity shall | 23 | | have the power to
promulgate rules and regulations to carry out | 24 | | the provisions of this
Section including the power to define | 25 | | the amounts and types of eligible
investments not specified in | 26 | | this Section which business enterprises
must make in order to |
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| 1 | | receive the exemptions stated in Sections 1d and 1e
of this | 2 | | Act; and to require that any business enterprise that is | 3 | | granted a
tax exemption repay the exempted tax if the business | 4 | | enterprise fails to
comply with the terms and conditions of the | 5 | | certification.
| 6 | | Such certificate of eligibility for exemption shall be | 7 | | presented by the
business enterprise to its supplier when | 8 | | making the initial purchase of
tangible personal property for | 9 | | which an exemption is granted by Section 1d or
Section 1e, or | 10 | | both, together with a certification by the business enterprise
| 11 | | that such tangible personal property is exempt from taxation | 12 | | under Section
1d or Section 1e and by indicating the exempt | 13 | | status of each subsequent
purchase on the face of the purchase | 14 | | order.
| 15 | | The Department of Commerce and Economic Opportunity shall | 16 | | determine the
period during which such exemption from the taxes | 17 | | imposed under this Act is
in effect which shall not exceed 20 | 18 | | years.
| 19 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 20 | | Section 10. The Public Utilities Act is amended by changing | 21 | | Section 9-222.1 as follows:
| 22 | | (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
| 23 | | Sec. 9-222.1. A business enterprise which is located within | 24 | | an area
designated by a county or municipality as an enterprise |
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| 1 | | zone pursuant to
the Illinois Enterprise Zone Act or located in | 2 | | a federally designated
Foreign Trade Zone or Sub-Zone shall be | 3 | | exempt from the additional charges
added to the business | 4 | | enterprise's utility bills as a pass-on of municipal
and State | 5 | | utility taxes under Sections 9-221 and 9-222 of this Act, to
| 6 | | the extent such charges are exempted by ordinance adopted in | 7 | | accordance
with paragraph (e) of Section 8-11-2 of the Illinois | 8 | | Municipal Code in the
case of municipal utility taxes, and to | 9 | | the extent such
charges are exempted by the percentage | 10 | | specified by the Department of
Commerce and Economic | 11 | | Opportunity in the case of State utility taxes, provided
such | 12 | | business enterprise meets the following criteria:
| 13 | | (1) it (i) makes investments of at least $20,000,000 | 14 | | which cause the creation of a
minimum of 40 200 full-time | 15 | | equivalent jobs in Illinois; (ii) makes investments
of at | 16 | | least $175,000,000 which cause the creation of a minimum of | 17 | | 30 150 full-time
equivalent jobs in Illinois; (iii) makes | 18 | | investments that cause the retention of a minimum of 300 | 19 | | full-time equivalent jobs in the manufacturing sector, as | 20 | | defined by the North American Industry Classification | 21 | | System, in an area in Illinois in which the unemployment | 22 | | rate is above 9% and makes an application to the Department | 23 | | within 3 months after the effective date of this amendatory | 24 | | Act of the 96th General Assembly and certifies relocation | 25 | | of the 300 full-time equivalent jobs within 36 months after | 26 | | the application; (iv) makes
investments of at least |
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| 1 | | $100,000,000 which cause the retention of a minimum of 200 | 2 | | 1,000 full-time jobs
in Illinois; or (v) makes an | 3 | | application to the Department within 2 months after the | 4 | | effective date of this amendatory Act of the 96th General | 5 | | Assembly and makes investments that cause the retention of | 6 | | a minimum of 500 full-time equivalent jobs in 2009 and | 7 | | 2010, 675 full-time jobs in Illinois in 2011, 850 full-time | 8 | | jobs in 2012, and 1,000 full-time jobs in 2013, in the | 9 | | manufacturing sector as defined by the North American | 10 | | Industry Classification System; and
| 11 | | (2) it is either (i) located in an Enterprise Zone | 12 | | established
pursuant to the Illinois Enterprise Zone Act or | 13 | | (ii)
located in a federally designated Foreign Trade Zone | 14 | | or Sub-Zone and is
designated a High Impact Business by the | 15 | | Department of Commerce and
Economic Opportunity; and
| 16 | | (3) it is certified by the Department of Commerce and | 17 | | Economic Opportunity as complying with the requirements | 18 | | specified in clauses (1) and (2)
of this Section.
| 19 | | The Department of Commerce and Economic Opportunity shall | 20 | | determine the
period during which such exemption from the | 21 | | charges imposed under Section
9-222 is in effect which shall
| 22 | | not exceed 30 years or the certified term of the enterprise | 23 | | zone,
whichever period is shorter, except that the exemption | 24 | | period for a business enterprise qualifying under item (iii) of | 25 | | clause (1) of this Section shall not exceed 30 years.
| 26 | | The Department of Commerce and Economic Opportunity shall |
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| 1 | | have the power to
promulgate rules and regulations to carry out | 2 | | the provisions of this
Section including procedures for | 3 | | complying with the requirements specified
in clauses (1) and | 4 | | (2) of this Section and procedures
for applying for the | 5 | | exemptions authorized under this Section; to
define the amounts | 6 | | and types of eligible investments which
business enterprises | 7 | | must make in order to receive State utility tax
exemptions | 8 | | pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
| 9 | | such utility tax exemptions for business enterprises whose | 10 | | investments are
not yet placed in service; and to require that | 11 | | business enterprises granted
tax exemptions repay the exempted | 12 | | tax should the business enterprise fail
to comply with the | 13 | | terms and conditions of the certification. However, no
business | 14 | | enterprise shall be required, as a condition for certification
| 15 | | under clause (3) of this Section, to attest that its
decision | 16 | | to invest under clause (1) of this Section and
to locate under | 17 | | clause (2) of this Section is predicated
upon the availability | 18 | | of the exemptions authorized by this Section.
| 19 | | A business enterprise shall be exempt, in whole
or in part, | 20 | | from the pass-on charges of municipal utility taxes imposed
| 21 | | under Section 9-221, only if it meets the criteria
specified in | 22 | | clauses (1) through (3) of this Section and
the municipality | 23 | | has adopted an ordinance authorizing the
exemption under | 24 | | paragraph (e) of Section 8-11-2 of the Illinois Municipal
Code. | 25 | | Upon certification of the business enterprises by the
| 26 | | Department of Commerce and Economic Opportunity, the |
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| 1 | | Department of Commerce
and Economic Opportunity shall notify | 2 | | the Department of Revenue of such
certification. The Department | 3 | | of Revenue shall notify the public utilities
of the exemption | 4 | | status of business enterprises from the pass-on charges of
| 5 | | State and municipal utility taxes. Such exemption status shall | 6 | | be
effective within 3 months after certification of the | 7 | | business enterprise.
| 8 | | (Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)
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