Rep. LaToya Greenwood
Filed: 2/28/2022
 
 

 

 

 
10200HB5395ham001LRB102 25907 HLH 36741 a



1
AMENDMENT TO HOUSE BILL 5395 




2    AMENDMENT NO. ______. Amend House Bill 5395 by replacing 
3everything after the enacting clause with the following:



 
4    "Section 5. The Department of Commerce and Economic 
5Opportunity Law of the
Civil Administrative Code of Illinois 
6is amended  by adding Section 605-1095 as follows:
 
7    (20 ILCS 605/605-1095 new)
8    Sec. 605-1095. Tax equivalent grants.
9    (a) If a retailer permanently ceases operations in a 
10municipality and that retailer was responsible for at least 
1120% of the total use and occupation tax revenue received by the 
12municipality in the calendar year immediately preceding the 
13date the retailer  permanently ceased operations in the 
14municipality, then the municipality is entitled to a tax 
15equivalent grant as provided in this Section. Grants under 
16this Section shall be awarded, subject to appropriation, for 
 
 
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1fiscal years beginning on or after July 1, 2023. 
2    (b) The corporate authorities of an eligible municipality 
3may apply to the Department of Commerce and Economic 
4Opportunity for a grant under this Section in the form and 
5manner required by the Department of Commerce and Economic 
6Opportunity by rule. Grants under this Section shall be 
7awarded for each of the 5 State fiscal years to occur after the 
8date the retailer permanently ceases operations in the 
9municipality. The application shall contain the following 
10information: 
11        (1) the identity of the retailer that ceased 
12    operations; 
13        (2) the portion of the use and occupation tax revenue 
14    that was received by the municipality in the calendar year 
15    immediately preceding the date the retailer  permanently 
16    ceased operations in the municipality and that is 
17    attributable to the retailer; and 
18        (3) the total use and occupation tax revenue received 
19    by the municipality in the calendar year immediately 
20    preceding the date the retailer  permanently ceased 
21    operations in the municipality. 
22    The Department of Revenue shall certify to the Department 
23of Commerce and Economic Opportunity that the amounts reported 
24by the municipality in items (1), (2), and (3) of this 
25subsection (b) are correct. 
26    (c) Grants shall be awarded according the following 
 
 
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1schedule: 
2        (1) in the first fiscal year following the date the 
3    retailer  permanently ceased operations in the 
4    municipality, the municipality shall receive 100% of the 
5    amount that is reported in item (2) of subsection (b) and 
6    that is verified by the Department of Revenue; 
7        (2) in the second fiscal year following the date the 
8    retailer  permanently ceased operations in the 
9    municipality, the municipality shall receive 80% of the 
10    amount that is reported in item (2) of subsection (b) and 
11    that is verified by the Department of Revenue; 
12        (3) in the third fiscal year following the date the 
13    retailer  permanently ceased operations in the 
14    municipality, the municipality shall receive 60% of the 
15    amount that is reported in item (2) of subsection (b) and 
16    that is verified by the Department of Revenue; 
17        (4) in the fourth fiscal year following the date the 
18    retailer  permanently ceased operations in the 
19    municipality, the municipality shall receive 40% of the 
20    amount that is reported in item (2) of subsection (b) and 
21    that is verified by the Department of Revenue; and 
22        (5) in the fifth fiscal year following the date the 
23    retailer  permanently ceased operations in the 
24    municipality, the municipality shall receive 20% of the 
25    amount that is reported in item (2) of subsection (b) and 
26    that is verified by the Department of Revenue. 
 
 
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1    (d) The Department of Commerce and Economic Opportunity 
2shall adopt rules to implement this Section, including, but 
3not limited to, rules concerning the application process and 
4the time period during which applications for grants under 
5this Section will be accepted. 
6    (e) As used in this Section:
7    "Retailer" means a retailer or serviceman that is required 
8to collect and remit tax under the Use Tax Act, the Service Use 
9Tax Act, the Service Occupation Tax Act, or the Retailers' 
10Occupation Tax Act. 
11    "Use and occupation tax revenue received by the 
12municipality" means: (1) moneys allocated to the municipality 
13from the proceeds collected under the Use Tax Act, the Service 
14Use Tax Act, the Service Occupation Tax Act, and the 
15Retailers' Occupation Tax Act based on sales occurring in the 
16municipality; and (2) the proceeds collected from any 
17municipal use tax imposed by the municipality or any municipal 
18occupation tax imposed by the municipality, if the tax is 
19administered by the Department of Revenue and the proceeds are 
20remitted to the municipality. 
 
21    Section 10. The School Code is amended  by adding Section 
2218-4.6 as follows:
 
23    (105 ILCS 5/18-4.6  new)
24    Sec. 18-4.6. Tax equivalent grants; State Capitol. Subject 
 
 
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1to appropriation, the school district in which the Illinois 
2State Capitol Building is located is entitled to a tax 
3equivalent grant as provided in this Section. The State 
4Superintendent of Education shall annually direct the State 
5Comptroller to pay the amount of the tax equivalent grant 
6provided in this Section, and the State Comptroller shall draw 
7his or her warrant upon the State Treasury for the payment of 
8the grant. For fiscal year 2024 and each fiscal year 
9thereafter, the grant shall equal 0.5% of the equalized 
10assessed valuation of all land in the district owned by the 
11State (computing that equalized assessed valuation by 
12multiplying the average value per taxable acre of the school 
13district by the total number of acres of land owned by the 
14State). The school district superintendent shall certify to 
15the State Board of Education the following matters:
        (1) that 
16the State Capitol Building is located within the district; (2) 
17the total land area of the district in acres; (3) the total 
18ownership of the land of the State in the district in
     acres; 
19(4) the total equalized assessed value of all the
     land in the 
20district; (5) the rate of school tax payable in the year; and 
21(6) the computed amount of the tax equivalent grant
     claimed.

    
22Certification for fiscal year 2024 grants under this Section 
23shall be made no later than September 15, 2022. For subsequent 
24fiscal years, the certification shall be made no later than 
25July 1 of the calendar year in which the fiscal year begins. 
26Failure of the school district superintendent to certify the 
 
 
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1claim for the tax equivalent grant on or before the date set 
2forth in this Section shall constitute a forfeiture by the 
3district of its right to the grant for the school year.
 

4    Section 99. Effective date. This Act takes effect upon 
5becoming law.".