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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1750 Introduced , by Rep. Chris Miller SYNOPSIS AS INTRODUCED:
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Amends the Property Tax Code. Provides that any taxing district may order the county clerk to abate any portion of its taxes, in any given year, on the essential business property that demonstrates financial hardship due to the restrictions on operations during the 2020 and 2021 tax year due to the Covid-19 public health emergency. Defines "essential business property". Effective immediately.
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| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Property Tax Code is amended by changing |
5 | | Section 18-165 as follows:
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6 | | (35 ILCS 200/18-165)
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7 | | Sec. 18-165. Abatement of taxes.
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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:
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13 | | (1) Commercial and industrial.
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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 |
21 | | State during the immediately preceding year, or |
22 | | expanding an
existing facility, or (ii) any firm that |
23 | | is used for the generation and
transmission of
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1 | | electricity locating within the taxing district during |
2 | | the immediately
preceding year or expanding its |
3 | | presence within the taxing district during the
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4 | | immediately preceding year by construction of a new |
5 | | electric generating
facility that uses natural gas as |
6 | | its fuel, or any firm that is used for
production |
7 | | operations at a new,
expanded, or reopened coal mine |
8 | | within the taxing district, that
has been certified as |
9 | | a High Impact Business by the Illinois Department of
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10 | | Commerce and Economic Opportunity. The property of any |
11 | | firm used for the
generation and transmission of |
12 | | electricity shall include all property of the
firm |
13 | | used for transmission facilities as defined in Section |
14 | | 5.5 of the Illinois
Enterprise Zone Act. The abatement |
15 | | shall not exceed a period of 10 years
and the aggregate |
16 | | amount of abated taxes for all taxing districts |
17 | | combined
shall not exceed $4,000,000.
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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 |
23 | | 10 years.
The abatement shall be subject to the |
24 | | following limitations:
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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
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6 | | year of abatement, 20% of the taxing district's |
7 | | taxes from the
new electric generating facility;
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8 | | (ii) if the equalized assessed valuation of |
9 | | the new electric
generating facility is equal to |
10 | | or 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
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15 | | year of abatement, 35% of the taxing district's |
16 | | taxes from the
new electric generating facility;
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17 | | (iii) if the equalized assessed valuation of |
18 | | the new electric
generating facility
is equal to |
19 | | or 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
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24 | | year of abatement, 50% of the taxing district's |
25 | | taxes from the
new electric generating facility;
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26 | | (iv) if the equalized assessed valuation of |
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1 | | the new electric
generating facility is equal to |
2 | | or 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;
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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;
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18 | | (vi) if the equalized assessed valuation of |
19 | | the new electric
generating facility is equal to |
20 | | or greater than $150,000,000, then the
abatement |
21 | | may 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
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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 |
3 | | to 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 |
6 | | that 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.
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9 | | The authorization of taxing districts to abate |
10 | | taxes under this
subdivision (a)(1)(A-5) expires on |
11 | | January 1, 2010.
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12 | | (B) The property of any commercial or industrial
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13 | | development of at least (i) 500 acres or (ii) 225 acres |
14 | | in the case of a commercial or industrial
development |
15 | | that applies for and is granted designation as a High |
16 | | Impact Business under paragraph (F) of item (3) of |
17 | | subsection (a) of Section 5.5 of the Illinois |
18 | | Enterprise Zone Act, having been created within the |
19 | | taxing
district. The abatement shall not exceed a |
20 | | period of 20 years and the
aggregate amount of abated |
21 | | taxes for all taxing districts combined shall not
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22 | | exceed $12,000,000.
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23 | | (C) The property of any commercial or industrial |
24 | | firm currently
located in the taxing district that |
25 | | expands a facility or its number of
employees. The |
26 | | abatement shall not exceed a period of 10 years and the
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1 | | aggregate amount of abated taxes for all taxing |
2 | | districts combined shall not
exceed $4,000,000. The |
3 | | abatement period may be renewed at the option of the
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4 | | taxing districts.
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5 | | (2) Horse racing. Any property in the taxing district |
6 | | which
is used for the racing of horses and upon which |
7 | | capital improvements consisting
of expansion, improvement |
8 | | or replacement of existing facilities have been made
since |
9 | | July 1, 1987. The combined abatements for such property |
10 | | from all taxing
districts in any county shall not exceed |
11 | | $5,000,000 annually and shall not
exceed a period of 10 |
12 | | years.
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13 | | (3) Auto racing. Any property designed exclusively for |
14 | | the racing of
motor vehicles. Such abatement shall not |
15 | | exceed a period of 10 years.
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16 | | (4) Academic or research institute. The property of |
17 | | any academic or
research institute in the taxing district |
18 | | that (i) is an exempt organization
under paragraph (3) of |
19 | | Section 501(c) of the Internal Revenue Code, (ii)
operates |
20 | | for the benefit of the public by actually and exclusively |
21 | | performing
scientific research and making the results of |
22 | | the research available to the
interested public on a |
23 | | non-discriminatory basis, and (iii) employs more than
100 |
24 | | employees. An abatement granted under this paragraph shall |
25 | | be for at
least 15 years and the aggregate amount of abated |
26 | | taxes for all taxing
districts combined shall not exceed |
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1 | | $5,000,000.
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2 | | (5) Housing for older persons. Any property in the |
3 | | taxing district that
is devoted exclusively to affordable |
4 | | housing for older households. For
purposes of this |
5 | | paragraph, "older households" means those households (i)
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6 | | living in housing provided under any State or federal |
7 | | program that the
Department of Human Rights determines is |
8 | | specifically designed and operated to
assist elderly |
9 | | persons and is solely occupied by persons 55 years of age |
10 | | or
older and (ii) whose annual income does not exceed 80% |
11 | | of the area gross median
income, adjusted for family size, |
12 | | as such gross income and median income are
determined from |
13 | | time to time by the United States Department of Housing |
14 | | and
Urban Development. The abatement shall not exceed a |
15 | | period of 15 years, and
the aggregate amount of abated |
16 | | taxes for all taxing districts shall not exceed
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17 | | $3,000,000.
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18 | | (6) Historical society. For assessment years 1998 |
19 | | through 2018, the
property of an historical society |
20 | | qualifying as an exempt organization under
Section |
21 | | 501(c)(3) of the federal Internal Revenue Code.
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22 | | (7) Recreational facilities. Any property in the |
23 | | taxing district (i)
that is used for a municipal airport, |
24 | | (ii) that
is subject to a leasehold assessment under |
25 | | Section 9-195 of this Code and (iii)
which
is sublet from a |
26 | | park district that is leasing the property from a
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1 | | municipality, but only if the property is used exclusively |
2 | | for recreational
facilities or for parking lots used |
3 | | exclusively for those facilities. The
abatement shall not |
4 | | exceed a period of 10 years.
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5 | | (8) Relocated corporate headquarters. If approval |
6 | | occurs within 5 years
after the effective date of this |
7 | | amendatory Act of the 92nd General Assembly,
any property |
8 | | or a portion of any property in a taxing district that is |
9 | | used by
an eligible business for a corporate headquarters |
10 | | as defined in the Corporate
Headquarters Relocation Act. |
11 | | Instead of an abatement under this paragraph (8),
a taxing |
12 | | district may enter into an agreement with an eligible |
13 | | business to make
annual payments to that eligible business |
14 | | in an amount not to exceed the
property taxes paid |
15 | | directly or indirectly by that eligible business to the
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16 | | taxing district and any other taxing districts for
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17 | | premises occupied pursuant to a written lease and may make |
18 | | those payments
without the need for an annual |
19 | | appropriation. No school district, however, may
enter into |
20 | | an agreement with, or abate taxes for, an eligible |
21 | | business unless
the municipality in which the corporate |
22 | | headquarters is located agrees to
provide funding to the |
23 | | school district in an amount equal to the amount abated
or |
24 | | paid by the school district as provided in this paragraph |
25 | | (8).
Any abatement ordered or
agreement entered into under |
26 | | this paragraph (8) may be effective for the entire
term |
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1 | | specified by the taxing district, except the term of the |
2 | | abatement or
annual payments may not exceed 20 years. |
3 | | (9) United States Military Public/Private Residential |
4 | | Developments. Each building, structure, or other |
5 | | improvement designed, financed, constructed, renovated, |
6 | | managed, operated, or maintained after January 1, 2006 |
7 | | under a "PPV Lease", as set forth under Division 14 of |
8 | | Article 10, and any such PPV Lease.
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9 | | (10) Property located in a business corridor that |
10 | | qualifies for an abatement under Section 18-184.10. |
11 | | (11) Under Section 11-15.4-25 of the Illinois |
12 | | Municipal Code, property located within an urban |
13 | | agricultural area that is used by a qualifying farmer for |
14 | | processing, growing, raising, or otherwise producing |
15 | | agricultural products. |
16 | | (b) Upon a majority vote of its governing authority, any |
17 | | municipality
may, after the determination of the assessed |
18 | | valuation of its property, order
the county clerk to abate any |
19 | | portion of its taxes on any property that is
located within the |
20 | | corporate limits of the municipality in accordance with
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21 | | Section 8-3-18 of the Illinois Municipal Code.
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22 | | (c) Any taxing district may, upon a majority vote of its |
23 | | governing authority and after the determination of the |
24 | | assessed valuation of its property, order the clerk of that |
25 | | county to abate any portion of its taxes, in any given year, on |
26 | | the essential business property that demonstrates financial |
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1 | | hardship due to the restrictions on operations during the 2020 |
2 | | and 2021 tax year due to the Covid-19 public health emergency. |
3 | | For purposes of this subsection (c), "essential business |
4 | | property" means the commercial property owned by an owner of |
5 | | an essential business or operation, as defined in Executive |
6 | | Order 2020-10 dated March 20, 2020. |
7 | | (Source: P.A. 100-1133, eff. 1-1-19.)
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8 | | Section 99. Effective date. This Act takes effect upon |
9 | | becoming law.
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