Public Act 93-0270

HB3612 Enrolled                      LRB093 11189 SJM 12195 b

    AN ACT concerning taxes.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The Property Tax Code is amended by changing
Section 18-165 as follows:

    (35 ILCS 200/18-165)
    Sec. 18-165. Abatement of taxes.
    (a)  Any taxing district, upon a  majority  vote  of  its
governing  authority,  may,  after  the  determination of the
assessed valuation of its property, order the clerk  of  that
county  to  abate  any  portion of its taxes on the following
types of property:
         (1)  Commercial and industrial.
              (A)  The  property   of   any   commercial   or
         industrial  firm,  including  but not limited to the
         property  of  (i)  any  firm  that   is   used   for
         collecting,   separating,   storing,  or  processing
         recyclable materials,  locating  within  the  taxing
         district  during the immediately preceding year from
         another state, territory, or country, or having been
         newly  created  within   this   State   during   the
         immediately preceding year, or expanding an existing
         facility,  or  (ii)  any  firm  that is used for the
         generation and transmission of electricity  locating
         within  the  taxing  district during the immediately
         preceding year or expanding its presence within  the
         taxing  district  during  the  immediately preceding
         year by construction of a  new  electric  generating
         facility  that  uses natural gas as its fuel, or any
         firm that is used for  production  operations  at  a
         new,  expanded,  or  reopened  coal  mine within the
         taxing district, that has been certified as  a  High
         Impact   Business  by  the  Illinois  Department  of
         Commerce and Community Affairs.  The property of any
         firm used for the  generation  and  transmission  of
         electricity  shall  include all property of the firm
         used  for  transmission  facilities  as  defined  in
         Section 5.5 of the  Illinois  Enterprise  Zone  Act.
         The  abatement shall not exceed a period of 10 years
         and the aggregate amount of  abated  taxes  for  all
         taxing   districts   combined   shall   not   exceed
         $4,000,000.
              (A-5)  Any property in the taxing district of a
         new  electric  generating  facility,  as  defined in
         Section 605-332 of the Department  of  Commerce  and
         Community  Affairs  Law  of the Civil Administrative
         Code of Illinois. The abatement shall not  exceed  a
         period  of  10 years. The abatement shall be subject
         to the following limitations:
                   (i)  if the equalized  assessed  valuation
              of  the  new  electric  generating  facility is
              equal to or greater than $25,000,000  but  less
              than  $50,000,000,  then  the abatement may not
              exceed  (i)  over  the  entire  term   of   the
              abatement,   5%   of   the   taxing  district's
              aggregate   taxes   from   the   new   electric
              generating facility and (ii) in any one year of
              abatement, 20% of the taxing  district's  taxes
              from the new electric generating facility;
                   (ii)  if  the equalized assessed valuation
              of the  new  electric  generating  facility  is
              equal  to  or greater than $50,000,000 but less
              than $75,000,000, then the  abatement  may  not
              exceed   (i)   over  the  entire  term  of  the
              abatement,  10%  of   the   taxing   district's
              aggregate   taxes   from   the   new   electric
              generating facility and (ii) in any one year of
              abatement,  35%  of the taxing district's taxes
              from the new electric generating facility;
                   (iii)  if the equalized assessed valuation
              of the  new  electric  generating  facility  is
              equal  to  or greater than $75,000,000 but less
              than $100,000,000, then the abatement  may  not
              exceed   (i)   over  the  entire  term  of  the
              abatement,  20%  of   the   taxing   district's
              aggregate   taxes   from   the   new   electric
              generating facility and (ii) in any one year of
              abatement,  50%  of the taxing district's taxes
              from the new electric generating facility;
                   (iv)  if the equalized assessed  valuation
              of  the  new  electric  generating  facility is
              equal to or greater than $100,000,000 but  less
              than  $125,000,000,  then the abatement may not
              exceed  (i)  over  the  entire  term   of   the
              abatement,   30%   of   the  taxing  district's
              aggregate   taxes   from   the   new   electric
              generating facility and (ii) in any one year of
              abatement, 60% of the taxing  district's  taxes
              from the new electric generating facility;
                   (v)  if  the  equalized assessed valuation
              of the  new  electric  generating  facility  is
              equal  to or greater than $125,000,000 but less
              than $150,000,000, then the abatement  may  not
              exceed   (i)   over  the  entire  term  of  the
              abatement,  40%  of   the   taxing   district's
              aggregate   taxes   from   the   new   electric
              generating facility and (ii) in any one year of
              abatement,  60%  of the taxing district's taxes
              from the new electric generating facility;
                   (vi)  if the equalized assessed  valuation
              of  the  new  electric  generating  facility is
              equal to or greater than $150,000,000, then the
              abatement may not exceed (i)  over  the  entire
              term  of  the  abatement,  50%  of  the  taxing
              district's   aggregate   taxes   from  the  new
              electric generating facility and  (ii)  in  any
              one  year  of  abatement,  60%  of  the  taxing
              district's   taxes   from   the   new  electric
              generating facility.
              The abatement is not effective unless the owner
         of the new electric generating  facility  agrees  to
         repay  to the taxing district all amounts previously
         abated, together with interest computed at the  rate
         and  in the manner provided for delinquent taxes, in
         the  event  that  the  owner  of  the  new  electric
         generating  facility   closes   the   new   electric
         generating  facility  before  the  expiration of the
         entire term of the abatement.
              The authorization of taxing districts to  abate
         taxes  under this subdivision (a)(1)(A-5) expires on
         January 1, 2010.
              (B)  The  property   of   any   commercial   or
         industrial  development of at least 500 acres having
         been  created  within  the  taxing  district.    The
         abatement  shall not exceed a period of 20 years and
         the aggregate amount of abated taxes for all  taxing
         districts combined shall not exceed $12,000,000.
              (C)  The   property   of   any   commercial  or
         industrial firm  currently  located  in  the  taxing
         district  that  expands  a facility or its number of
         employees. The abatement shall not exceed  a  period
         of 10 years and the aggregate amount of abated taxes
         for  all  taxing districts combined shall not exceed
         $4,000,000. The abatement period may be  renewed  at
         the option of the taxing districts.
         (2)  Horse  racing.   Any  property  in  the  taxing
    district  which is used for the racing of horses and upon
    which  capital  improvements  consisting  of   expansion,
    improvement  or  replacement  of existing facilities have
    been made since July 1, 1987.   The  combined  abatements
    for such property from all taxing districts in any county
    shall not exceed $5,000,000 annually and shall not exceed
    a period of 10 years.
         (3)  Auto racing.  Any property designed exclusively
    for  the  racing  of motor vehicles. Such abatement shall
    not exceed a period of 10 years.
         (4)  Academic or research institute.   The  property
    of  any  academic  or  research  institute  in the taxing
    district  that  (i)  is  an  exempt  organization   under
    paragraph  (3)  of Section 501(c) of the Internal Revenue
    Code, (ii) operates for the  benefit  of  the  public  by
    actually  and  exclusively performing scientific research
    and making the results of the research available  to  the
    interested  public  on  a  non-discriminatory  basis, and
    (iii) employs more  than  100  employees.   An  abatement
    granted  under  this  paragraph  shall be for at least 15
    years and the aggregate amount of abated  taxes  for  all
    taxing districts combined shall not exceed $5,000,000.
         (5)  Housing for older persons.  Any property in the
    taxing district that is devoted exclusively to affordable
    housing  for  older  households.   For  purposes  of this
    paragraph, "older households" means those households  (i)
    living  in  housing  provided  under any State or federal
    program that the Department of Human Rights determines is
    specifically designed  and  operated  to  assist  elderly
    persons and is solely occupied by persons 55 years of age
    or older and (ii) whose annual income does not exceed 80%
    of  the  area  gross  median  income, adjusted for family
    size,  as  such  gross  income  and  median  income   are
    determined  from  time  to  time  by  the  United  States
    Department   of   Housing  and  Urban  Development.   The
    abatement shall not exceed a period of 15 years, and  the
    aggregate amount of abated taxes for all taxing districts
    shall not exceed $3,000,000.
         (6)  Historical  society.  For assessment years 1998
    through 2008 2003, the property of an historical  society
    qualifying   as  an  exempt  organization  under  Section
    501(c)(3) of the federal Internal Revenue Code.
         (7)  Recreational facilities.  Any property  in  the
    taxing district (i) that is used for a municipal airport,
    (ii)  that  is  subject  to  a leasehold assessment under
    Section 9-195 of this Code and (iii) which is sublet from
    a park district that  is  leasing  the  property  from  a
    municipality,   but   only   if   the  property  is  used
    exclusively for recreational facilities  or  for  parking
    lots   used   exclusively   for  those  facilities.   The
    abatement shall not exceed a period of 10 years.
         (8)  Relocated corporate headquarters.  If  approval
    occurs  within  5  years after the effective date of this
    amendatory Act of the 92nd General Assembly, any property
    or a portion of any property in a taxing district that is
    used by an eligible business for a corporate headquarters
    as defined in the Corporate Headquarters Relocation  Act.
    Instead  of  an  abatement  under  this  paragraph (8), a
    taxing district may  enter  into  an  agreement  with  an
    eligible   business  to  make  annual  payments  to  that
    eligible business in an amount not to exceed the property
    taxes  paid  directly  or  indirectly  by  that  eligible
    business to the taxing  district  and  any  other  taxing
    districts  for  premises  occupied  pursuant to a written
    lease and may make those payments without the need for an
    annual appropriation. No school  district,  however,  may
    enter  into  an  agreement  with,  or abate taxes for, an
    eligible business unless the municipality  in  which  the
    corporate  headquarters  is  located  agrees  to  provide
    funding  to the school district in an amount equal to the
    amount abated or paid by the school district as  provided
    in this paragraph (8). Any abatement ordered or agreement
    entered  into  under  this paragraph (8) may be effective
    for the entire term specified  by  the  taxing  district,
    except  the  term of the abatement or annual payments may
    not exceed 20 years.
    (b)  Upon a majority vote of its governing authority, any
municipality may, after the  determination  of  the  assessed
valuation  of  its  property, order the county clerk to abate
any portion of its taxes on  any  property  that  is  located
within the corporate limits of the municipality in accordance
with Section 8-3-18 of the Illinois Municipal Code.
(Source:  P.A.  91-644,  eff.  8-20-99;  91-885, eff. 7-6-00;
92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247, eff. 8-3-01;
92-651, eff. 7-11-02.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.