103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4730

 

Introduced 2/6/2024, by Rep. Michael J. Coffey, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-810 new

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible municipalities for revenue loss associated with tax exempt State property located in the municipality. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $100,000,000. Sets forth the amount of the reimbursement. Effective immediately.


LRB103 25260 HLH 51604 b

 

 

A BILL FOR

 

HB4730LRB103 25260 HLH 51604 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-810 as follows:
 
7    (20 ILCS 2505/2505-810 new)
8    Sec. 2505-810. Municipal Property Tax Relief Reimbursement
9Pilot Program.
10    (a) Subject to appropriation, for State fiscal years that
11begin on or after July 1, 2024 and before July 1, 2029, the
12Department shall establish and administer a Municipal Property
13Tax Relief Reimbursement Pilot Program. For purposes of the
14Program, the Department shall reimburse eligible
15municipalities for revenue loss associated with tax exempt
16State property located in the municipality. Reimbursement
17payments shall be made to the county that applies to the
18Department of Revenue on behalf of the municipality under
19subsection (b) and shall be distributed by the county to the
20municipality as directed by the Department of Revenue.
21    (b) If the county clerk determines that that one or more
22municipalities located in whole or in part in the county
23qualify for reimbursement under this Section, then the county

 

 

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1clerk shall apply to the Department of Revenue on behalf of the
2municipality for reimbursement under this Section in the form
3and manner required by the Department. The county clerk shall
4consolidate applications submitted on behalf of more than one
5municipality into a single application. The Department of
6Revenue may audit the information submitted by the county
7clerk as part of the application under this Section for the
8purpose of verifying the accuracy of the information.
9    (c) The maximum amount of the reimbursement the difference
10between (i) the amount of property tax revenue that would have
11been required to be collected and distributed to the
12municipality for the taxable year that falls 2 years before
13the start of the State fiscal year if the property tax
14exemption for State property had not been applied; and (2) the
15amount of property tax revenue that was actually required to
16be collected and distributed to the municipality for that
17taxable year.
18    The aggregate amount of reimbursements that may be awarded
19under this Section for all municipalities in any calendar year
20may not exceed $100,000,000. If the total amount of eligible
21reimbursements under this Section exceeds $100,000,000 in any
22calendar year, then the reimbursement amount awarded to each
23particular municipality shall be reduced on a pro rata basis
24until the aggregate amount of reimbursements awarded under
25this Section for the calendar year does not exceed
26$100,000,000.

 

 

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1    (d) The Department of Revenue may adopt rules necessary
2for the implementation of this Section.
3    (e) As used in this Section:
4    "Taxable year" means the calendar year during which
5property taxes payable in the next succeeding year are levied.
 
6    Section 99. Effective date. This Act takes upon becoming
7law.