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92nd General Assembly

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Public Act 92-0278

SB298 Enrolled                                 LRB9207589SMdv

    AN ACT concerning taxation.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Property Tax Code is amended by adding
Division 4 to Article  11  and  by  adding  Sections  11-130,
11-135,  11-140,  11-145, 11-150, 11-155, 11-160, 11-165, and
11-170 as follows:

    (35 ILCS 200/Art. 11, Div. 4 heading new)
      DIVISION 4.  REGIONAL WATER TREATMENT FACILITIES

    (35 ILCS 200/11-130 new)
    Sec. 11-130.  Legislative findings.  The General Assembly
finds that it is the policy  of  this  State  to  ensure  and
encourage  the  availability  of  safe  potable water for our
cities, villages, towns, and rural residents and that it  has
become   increasingly  difficult  and  cost  prohibitive  for
smaller cities, towns, and villages to  construct,  maintain,
or operate, to current standards, water treatment facilities.
It  is  the  further  finding  of  the  General Assembly that
regional treatment facilities capable  of  supplying  several
cities, villages, towns, public water districts, public water
commissions,  and  rural  water  companies with treated water
offer a viable economic  solution  to  this  concern  and  it
should   be   the  policy  of  the  State  to  encourage  the
construction  and  operation  of  regional  water   treatment
facilities  capable  of  providing  treated, potable water to
cities, villages, towns, public water districts, public water
commissions, and rural water companies, thereby relieving the
burden on those entities and their citizens from constructing
and maintaining their own individual treatment facilities.
    (35 ILCS 200/11-135 new)
    Sec. 11-135. Definitions.  For purposes of this  Division
4:
    "Department" means the Illinois Department of Revenue.
    "Not   for   profit   corporation"   means   an  Illinois
corporation organized and existing under the General Not  For
Profit  Corporation  Act  of  1986  in good standing with the
State  and  having  been  granted   status   as   an   exempt
organization  under  Section  501(c)  of the Internal Revenue
Code, or any successor or similar provision of  the  Internal
Revenue Code.
    "Public   water  commission"  means  a  water  commission
organized and existing under Division 135 of  Article  11  of
the Illinois Municipal Code.
    "Public  water district" means a water district organized
and existing under the Public Water District Act.
    "Qualifying  water  treatment  facility"  means  a  water
treatment  facility  that  is  owned  by  a  not  for  profit
corporation whose members consist exclusively of one or  more
incorporated  city,  village,  or town of this State, and any
number of public water districts, any number of public  water
commissions,  or any number of rural water companies and that
sells potable water to the corporation's members on a  mutual
or cooperative and not for profit basis.
    "Rural  water company" means a not for profit corporation
whose primary purpose is to  own,  maintain,  and  operate  a
potable  water  distribution  system  distributing  water  to
residences,  farms, or businesses exclusively in the State of
Illinois and not otherwise served by any city, village, town,
public water district, or public water commission.
    "Water treatment facility"  means  a  plant  or  facility
whose  primary  function is to treat raw water and to produce
potable water for distribution, together with all other  real
and personal property reasonably necessary to collect, treat,
or distribute the water.

    (35 ILCS 200/11-140 new)
    Sec.   11-140.    Valuation   policy.   Qualifying  water
treatment  facilities  shall  be  valued  for   purposes   of
computing  the  assessed valuation on the basis of 33 1/3% of
the fair cash value.

    (35 ILCS 200/11-145 new)
    Sec. 11-145.  Method of valuation  for  qualifying  water
treatment  facilities.  To determine 33 1/3% of the fair cash
value of any qualifying water treatment facility in assessing
the facility, the Department shall  take  into  consideration
the probable net value that could be realized by the owner if
the facility were removed and sold at a fair, voluntary sale,
giving   due   account   to  the  expense  of  removal,  site
restoration, and transportation.   The  net  value  shall  be
considered to be 33 1/3% of fair cash value.

    (35 ILCS 200/11-150 new)
    Sec.  11-150.   Exclusion  of  for-profit water treatment
facilities.  In no event shall the  valuation  set  forth  in
this  Division  4  be available to a water treatment facility
that sells water "for profit".

    (35 ILCS 200/11-155 new)
    Sec. 11-155.   Certification  and  assessment  authority.
For tax purposes, a qualifying water treatment facility shall
be certified as such by the Director of Natural Resources and
shall be assessed by the Department of Revenue.

    (35 ILCS 200/11-160 new)
    Sec.   11-160.    Approval  procedure.   Application  for
approval as a qualifying water treatment  facility  shall  be
filed  with the Department of Natural Resources in the manner
and form prescribed by the Director  of  National  Resources.
The  application  shall  contain  appropriate  and  available
descriptive  information  concerning  anything  claimed to be
entitled to tax treatment as defined in this Division 4.   If
it  is  found  that  the  facility  meets the definition, the
Director of Natural Resources, or his or her duly  authorized
designee,  shall enter a finding and issue a certificate that
requires  tax  treatment  as  a  qualifying  water  treatment
facility.  The effective date of a certificate  shall  be  on
January  1  preceding  the date of certification or preceding
the  date  construction  or  installation  of  the   facility
commences, whichever is later.

    (35 ILCS 200/11-165 new)
    Sec. 11-165.  Judicial review; qualifying water treatment
facilities.    Any  applicant  or  holder  aggrieved  by  the
issuance, refusal to issue, denial, revocation, modification,
or restriction  of  a  qualifying  water  treatment  facility
certificate   may   appeal  the  finding  and  order  of  the
Department of  Natural  Resources  under  the  Administrative
Review Law.

    (35 ILCS 200/11-170 new)
    Sec.   11-170.   Procedures  for  assessment;  qualifying
water  treatment  facilities.   Proceedings for assessment or
reassessment of property certified to be a  qualifying  water
treatment  facility  shall  be  conducted  in accordance with
procedural rules adopted by  the  Department,  in  conformity
with this Code.

    Section  99.   Effective  date.  This Act takes effect on
January 1, 2002.
    Passed in the General Assembly May 15, 2001.
    Approved August 07, 2001.

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