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.