Sen. Arthur J. Wilhelmi

Filed: 2/28/2006

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 701

2     AMENDMENT NO. ______. Amend Senate Bill 701 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Property Tax Code is amended by changing
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
24         locating within the taxing district during the

 

 

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1         immediately preceding year or expanding its presence
2         within the taxing district during the immediately
3         preceding year by construction of a new electric
4         generating facility that uses natural gas as its fuel,
5         or any firm that is used for production operations at a
6         new, expanded, or reopened coal mine within the taxing
7         district, that has been certified as a High Impact
8         Business by the Illinois Department of Commerce and
9         Economic Opportunity Community Affairs. The property
10         of any firm used for the generation and transmission of
11         electricity shall include all property of the firm used
12         for transmission facilities as defined in Section 5.5
13         of the Illinois Enterprise Zone Act. The abatement
14         shall not exceed a period of 10 years and the aggregate
15         amount of abated taxes for all taxing districts
16         combined shall not exceed $4,000,000.
17             (A-5) Any property in the taxing district of a new
18         electric generating facility, as defined in Section
19         605-332 of the Department of Commerce and Economic
20         Opportunity Community Affairs Law of the Civil
21         Administrative Code of Illinois. The abatement shall
22         not exceed a period of 10 years. The abatement shall be
23         subject to the following limitations:
24                 (i) if the equalized assessed valuation of the
25             new electric generating facility is equal to or
26             greater than $25,000,000 but less than
27             $50,000,000, then the abatement may not exceed (i)
28             over the entire term of the abatement, 5% of the
29             taxing district's aggregate taxes from the new
30             electric generating facility and (ii) in any one
31             year of abatement, 20% of the taxing district's
32             taxes from the new electric generating facility;
33                 (ii) if the equalized assessed valuation of
34             the new electric generating facility is equal to or

 

 

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1             greater than $50,000,000 but less than
2             $75,000,000, then the abatement may not exceed (i)
3             over the entire term of the abatement, 10% of the
4             taxing district's aggregate taxes from the new
5             electric generating facility and (ii) in any one
6             year of abatement, 35% of the taxing district's
7             taxes from the new electric generating facility;
8                 (iii) if the equalized assessed valuation of
9             the new electric generating facility is equal to or
10             greater than $75,000,000 but less than
11             $100,000,000, then the abatement may not exceed
12             (i) over the entire term of the abatement, 20% of
13             the taxing district's aggregate taxes from the new
14             electric generating facility and (ii) in any one
15             year of abatement, 50% of the taxing district's
16             taxes from the new electric generating facility;
17                 (iv) if the equalized assessed valuation of
18             the new electric generating facility is equal to or
19             greater than $100,000,000 but less than
20             $125,000,000, then the abatement may not exceed
21             (i) over the entire term of the abatement, 30% of
22             the taxing district's aggregate taxes from the new
23             electric generating facility and (ii) in any one
24             year of abatement, 60% of the taxing district's
25             taxes from the new electric generating facility;
26                 (v) if the equalized assessed valuation of the
27             new electric generating facility is equal to or
28             greater than $125,000,000 but less than
29             $150,000,000, then the abatement may not exceed
30             (i) over the entire term of the abatement, 40% of
31             the taxing district's aggregate taxes from the new
32             electric generating facility and (ii) in any one
33             year of abatement, 60% of the taxing district's
34             taxes from the new electric generating facility;

 

 

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1                 (vi) if the equalized assessed valuation of
2             the new electric generating facility is equal to or
3             greater than $150,000,000, then the abatement may
4             not exceed (i) over the entire term of the
5             abatement, 50% of the taxing district's aggregate
6             taxes from the new electric generating facility
7             and (ii) in any one year of abatement, 60% of the
8             taxing district's taxes from the new electric
9             generating facility.
10             The abatement is not effective unless the owner of
11         the new electric generating facility agrees to repay to
12         the taxing district all amounts previously abated,
13         together with interest computed at the rate and in the
14         manner provided for delinquent taxes, in the event that
15         the owner of the new electric generating facility
16         closes the new electric generating facility before the
17         expiration of the entire term of the abatement.
18             The authorization of taxing districts to abate
19         taxes under this subdivision (a)(1)(A-5) expires on
20         January 1, 2010.
21             (B) The property of any commercial or industrial
22         development of at least 500 acres having been created
23         within the taxing district. The abatement shall not
24         exceed a period of 20 years and the aggregate amount of
25         abated taxes for all taxing districts combined shall
26         not exceed $12,000,000. For the commercial or
27         industrial development, however, of at least 500 acres
28         on undeveloped land that was transferred by the
29         Secretary of the Army pursuant to the federal Illinois
30         Land Conservation Act and that is owned by the Joliet
31         Arsenal Development Authority or undeveloped land
32         subsequently acquired by the Joliet Arsenal
33         Development Authority, the abatement may not exceed a
34         period of 20 years and the aggregate amount of the

 

 

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1         abated taxes for all taxing districts combined may not
2         exceed $38,000,000.
3             (C) The property of any commercial or industrial
4         firm currently located in the taxing district that
5         expands a facility or its number of employees. The
6         abatement shall not exceed a period of 10 years and the
7         aggregate amount of abated taxes for all taxing
8         districts combined shall not exceed $4,000,000. The
9         abatement period may be renewed at the option of the
10         taxing districts.
11         (2) Horse racing. Any property in the taxing district
12     which is used for the racing of horses and upon which
13     capital improvements consisting of expansion, improvement
14     or replacement of existing facilities have been made since
15     July 1, 1987. The combined abatements for such property
16     from all taxing districts in any county shall not exceed
17     $5,000,000 annually and shall not exceed a period of 10
18     years.
19         (3) Auto racing. Any property designed exclusively for
20     the racing of motor vehicles. Such abatement shall not
21     exceed a period of 10 years.
22         (4) Academic or research institute. The property of any
23     academic or research institute in the taxing district that
24     (i) is an exempt organization under paragraph (3) of
25     Section 501(c) of the Internal Revenue Code, (ii) operates
26     for the benefit of the public by actually and exclusively
27     performing scientific research and making the results of
28     the research available to the interested public on a
29     non-discriminatory basis, and (iii) employs more than 100
30     employees. An abatement granted under this paragraph shall
31     be for at least 15 years and the aggregate amount of abated
32     taxes for all taxing districts combined shall not exceed
33     $5,000,000.
34         (5) Housing for older persons. Any property in the

 

 

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1     taxing district that is devoted exclusively to affordable
2     housing for older households. For purposes of this
3     paragraph, "older households" means those households (i)
4     living in housing provided under any State or federal
5     program that the Department of Human Rights determines is
6     specifically designed and operated to assist elderly
7     persons and is solely occupied by persons 55 years of age
8     or older and (ii) whose annual income does not exceed 80%
9     of the area gross median income, adjusted for family size,
10     as such gross income and median income are determined from
11     time to time by the United States Department of Housing and
12     Urban Development. The abatement shall not exceed a period
13     of 15 years, and the aggregate amount of abated taxes for
14     all taxing districts shall not exceed $3,000,000.
15         (6) Historical society. For assessment years 1998
16     through 2008, the property of an historical society
17     qualifying as an exempt organization under Section
18     501(c)(3) of the federal Internal Revenue Code.
19         (7) Recreational facilities. Any property in the
20     taxing district (i) that is used for a municipal airport,
21     (ii) that is subject to a leasehold assessment under
22     Section 9-195 of this Code and (iii) which is sublet from a
23     park district that is leasing the property from a
24     municipality, but only if the property is used exclusively
25     for recreational facilities or for parking lots used
26     exclusively for those facilities. The abatement shall not
27     exceed a period of 10 years.
28         (8) Relocated corporate headquarters. If approval
29     occurs within 5 years after the effective date of this
30     amendatory Act of the 92nd General Assembly, any property
31     or a portion of any property in a taxing district that is
32     used by an eligible business for a corporate headquarters
33     as defined in the Corporate Headquarters Relocation Act.
34     Instead of an abatement under this paragraph (8), a taxing

 

 

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1     district may enter into an agreement with an eligible
2     business to make annual payments to that eligible business
3     in an amount not to exceed the property taxes paid directly
4     or indirectly by that eligible business to the taxing
5     district and any other taxing districts for premises
6     occupied pursuant to a written lease and may make those
7     payments without the need for an annual appropriation. No
8     school district, however, may enter into an agreement with,
9     or abate taxes for, an eligible business unless the
10     municipality in which the corporate headquarters is
11     located agrees to provide funding to the school district in
12     an amount equal to the amount abated or paid by the school
13     district as provided in this paragraph (8). Any abatement
14     ordered or agreement entered into under this paragraph (8)
15     may be effective for the entire term specified by the
16     taxing district, except the term of the abatement or annual
17     payments may not exceed 20 years.
18     (b) Upon a majority vote of its governing authority, any
19 municipality may, after the determination of the assessed
20 valuation of its property, order the county clerk to abate any
21 portion of its taxes on any property that is located within the
22 corporate limits of the municipality in accordance with Section
23 8-3-18 of the Illinois Municipal Code.
24 (Source: P.A. 92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247,
25 eff. 8-3-01; 92-651, eff. 7-11-02; 93-270, eff. 7-22-03;
26 revised 12-6-03.)".
 
27     Section 99. Effective date. This Act takes effect upon
28 becoming law.".