96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3667

 

Introduced 2/24/2009, by Rep. Charles E. Jefferson

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-165

    Amends the Property Tax Code. Prohibits competition by abatement between taxing districts unless such competition is authorized by an intergovernmental agreement.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
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

 

 

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

 

 

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

 

 

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

 

 

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1             The abatement is not effective unless the owner of
2         the new electric generating facility agrees to repay to
3         the taxing district all amounts previously abated,
4         together with interest computed at the rate and in the
5         manner provided for delinquent taxes, in the event that
6         the owner of the new electric generating facility
7         closes the new electric generating facility before the
8         expiration of the entire term of the abatement.
9             The authorization of taxing districts to abate
10         taxes under this subdivision (a)(1)(A-5) expires on
11         January 1, 2010.
12             (B) The property of any commercial or industrial
13         development of at least 500 acres having been created
14         within the taxing district. The abatement shall not
15         exceed a period of 20 years and the aggregate amount of
16         abated taxes for all taxing districts combined shall
17         not exceed $12,000,000.
18             (C) The property of any commercial or industrial
19         firm currently located in the taxing district that
20         expands a facility or its number of employees. The
21         abatement shall not exceed a period of 10 years and the
22         aggregate amount of abated taxes for all taxing
23         districts combined shall not exceed $4,000,000. The
24         abatement period may be renewed at the option of the
25         taxing districts.
26             (D) Notwithstanding any other provision of law, no

 

 

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1         taxing district may abate or promise to abate taxes on
2         commercial or industrial property for the purpose of
3         enticing a business to locate within the taxing
4         district if another taxing district located within the
5         State and within 25 miles of the taxing district is
6         also competing for the business, unless the competing
7         taxing districts have, by intergovernmental agreement,
8         authorized competition by abatement.
9         (2) Horse racing. Any property in the taxing district
10     which is used for the racing of horses and upon which
11     capital improvements consisting of expansion, improvement
12     or replacement of existing facilities have been made since
13     July 1, 1987. The combined abatements for such property
14     from all taxing districts in any county shall not exceed
15     $5,000,000 annually and shall not exceed a period of 10
16     years.
17         (3) Auto racing. Any property designed exclusively for
18     the racing of motor vehicles. Such abatement shall not
19     exceed a period of 10 years.
20         (4) Academic or research institute. The property of any
21     academic or research institute in the taxing district that
22     (i) is an exempt organization under paragraph (3) of
23     Section 501(c) of the Internal Revenue Code, (ii) operates
24     for the benefit of the public by actually and exclusively
25     performing scientific research and making the results of
26     the research available to the interested public on a

 

 

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1     non-discriminatory basis, and (iii) employs more than 100
2     employees. An abatement granted under this paragraph shall
3     be for at least 15 years and the aggregate amount of abated
4     taxes for all taxing districts combined shall not exceed
5     $5,000,000.
6         (5) Housing for older persons. Any property in the
7     taxing district that is devoted exclusively to affordable
8     housing for older households. For purposes of this
9     paragraph, "older households" means those households (i)
10     living in housing provided under any State or federal
11     program that the Department of Human Rights determines is
12     specifically designed and operated to assist elderly
13     persons and is solely occupied by persons 55 years of age
14     or older and (ii) whose annual income does not exceed 80%
15     of the area gross median income, adjusted for family size,
16     as such gross income and median income are determined from
17     time to time by the United States Department of Housing and
18     Urban Development. The abatement shall not exceed a period
19     of 15 years, and the aggregate amount of abated taxes for
20     all taxing districts shall not exceed $3,000,000.
21         (6) Historical society. For assessment years 1998
22     through 2008, the property of an historical society
23     qualifying as an exempt organization under Section
24     501(c)(3) of the federal Internal Revenue Code.
25         (7) Recreational facilities. Any property in the
26     taxing district (i) that is used for a municipal airport,

 

 

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1     (ii) that is subject to a leasehold assessment under
2     Section 9-195 of this Code and (iii) which is sublet from a
3     park district that is leasing the property from a
4     municipality, but only if the property is used exclusively
5     for recreational facilities or for parking lots used
6     exclusively for those facilities. The abatement shall not
7     exceed a period of 10 years.
8         (8) Relocated corporate headquarters. If approval
9     occurs within 5 years after the effective date of this
10     amendatory Act of the 92nd General Assembly, any property
11     or a portion of any property in a taxing district that is
12     used by an eligible business for a corporate headquarters
13     as defined in the Corporate Headquarters Relocation Act.
14     Instead of an abatement under this paragraph (8), a taxing
15     district may enter into an agreement with an eligible
16     business to make annual payments to that eligible business
17     in an amount not to exceed the property taxes paid directly
18     or indirectly by that eligible business to the taxing
19     district and any other taxing districts for premises
20     occupied pursuant to a written lease and may make those
21     payments without the need for an annual appropriation. No
22     school district, however, may enter into an agreement with,
23     or abate taxes for, an eligible business unless the
24     municipality in which the corporate headquarters is
25     located agrees to provide funding to the school district in
26     an amount equal to the amount abated or paid by the school

 

 

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1     district as provided in this paragraph (8). Any abatement
2     ordered or agreement entered into under this paragraph (8)
3     may be effective for the entire term specified by the
4     taxing district, except the term of the abatement or annual
5     payments may not exceed 20 years.
6         (9) United States Military Public/Private Residential
7     Developments. Each building, structure, or other
8     improvement designed, financed, constructed, renovated,
9     managed, operated, or maintained after January 1, 2006
10     under a "PPV Lease", as set forth under Division 14 of
11     Article 10, and any such PPV Lease.
12     (b) Upon a majority vote of its governing authority, any
13 municipality may, after the determination of the assessed
14 valuation of its property, order the county clerk to abate any
15 portion of its taxes on any property that is located within the
16 corporate limits of the municipality in accordance with Section
17 8-3-18 of the Illinois Municipal Code.
18 (Source: P.A. 93-270, eff. 7-22-03; 94-793, eff. 5-19-06;
19 94-974, eff. 6-30-06.)