093_SB1461sam002
LRB093 11006 SJM 14153 a
1 AMENDMENT TO SENATE BILL 1461
2 AMENDMENT NO. . Amend Senate Bill 1461, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT concerning taxes, which may be referred to as the
5 Retirement Community Economic Development Incentive Act.
6 WHEREAS, Over $1,000,000,000 annually is transferred out
7 of Illinois by retirees to Southern-tier states; and
8 WHEREAS, Illinois is second only to New York in net loss
9 of people migrating to other states, averaging a net loss in
10 excess of 20,000 people per year; and
11 WHEREAS, It takes 3.7 factory jobs to equal the economic
12 impact of one active adult retirement household; and
13 WHEREAS, Retirees have money, spend it, and don't burden
14 municipal services; and
15 WHEREAS, Active adult retirement communities are a magnet
16 for new business development; and
17 WHEREAS, Retaining retirees in Illinois means more
18 business, and more business means more jobs and more tax
19 dollars; and
20 WHEREAS, A typical active adult retiree household will
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1 spend in excess of $2,000 per year in sales tax, income tax,
2 car registration fees, highway tolls, and, in some instances,
3 business license fees; property taxes are another major
4 expenditure; in addition to that, taxes will be paid by the
5 people newly employed; and
6 WHEREAS, Active adult planned unit development
7 communities' restrictions prohibit full-time residency by
8 anyone under age 19; and
9 WHEREAS, To level the playing field between Illinois and
10 the Southern-tier states, this legislation proposes a
11 refundable tax credit; the credit would apply only to those
12 living in active adult planned unit development communities
13 and would be equal to 50% of the amount the property owner in
14 an active adult community is paying to the schools through
15 property taxes; and
16 WHEREAS, The tax credit proposed by this legislation
17 would have the following benefits:
18 (1) Schools will not be penalized because they will
19 get the amount of their levy anyway;
20 (2) The State is not mortgaging new income flows,
21 but is providing the credit out of funds it already has
22 and will continue to receive; and
23 (3) Illinois money stays in Illinois; therefore";
24 and
25 by replacing everything after the enacting clause with the
26 following:
27 "Section 5. The State Revenue Sharing Act is amended by
28 changing Section 0.1 as follows:
29 (30 ILCS 115/0.1) (from Ch. 85, par. 610)
30 Sec. 0.1. Short title. This Act shall be known and may
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1 be cited as the State Revenue Sharing Act.
2 (Source: P.A. 91-51, eff. 6-30-99.)
3 Section 10. The Illinois Income Tax Act is amended by
4 adding Section 208.2 as follows:
5 (35 ILCS 5/208.2 new)
6 Sec. 208.2. Retirement Community Economic Development
7 Incentive Credit.
8 (a) Beginning with taxable years ending on or after
9 December 31, 2003, every individual taxpayer who owns
10 property in an active adult planned unit development
11 community is entitled to a credit against the tax imposed by
12 subsections (a) and (b) of Section 201 in an amount equal to
13 50% of the real property taxes extended on behalf of the
14 school district and paid by the taxpayer during the taxable
15 year on the principal residence of the taxpayer.
16 (b) If a credit allowed under this Section exceeds the
17 tax liability of the taxpayer, the taxpayer shall receive a
18 refund for the amount of the excess.
19 (c) The Department shall adopt rules defining "active
20 adult planned unit development community".
21 (d) This Section is exempt from the provisions of
22 Section 250.
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.".