Bill Text: IL HB0212 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Amends the Illinois Municipal Code. Provides that 2 adjoining disadvantaged municipalities may form a business corridor by intergovernmental agreement. Defines "disadvantaged municipality". Provides that the business corridor shall encompass only territory along the common border of the municipalities that is (i) undeveloped or underdeveloped and (ii) not likely be developed without the creation of the business corridor. Provides that the agreement must contain certain information. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that tangible personal property purchased from a business located in a business corridor is exempt from taxation under the Acts beginning on the first day of the first month to occur not less than 30 days after the business corridor is established and continuing through December 31 of the fifth calendar year after the business corridor is established. Provides that, in the sixth calendar year after the business corridor is established, the tax is imposed on that tangible personal property at the rate of 3%. Provides that the proceeds of the tax imposed at the rate of 3% shall be distributed to the municipalities.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2011-08-26 - Public Act . . . . . . . . . 97-0577 [HB0212 Detail]

Download: Illinois-2011-HB0212-Engrossed.html

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HB0212 Engrossed LRB097 02920 HLH 42944 b
AN ACT concerning local government.
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
Section 18-184.10 as follows:
(35 ILCS 200/18-184.10 new)
Sec. 18-184.10. Business corridors; abatement.
(a) The county clerk shall abate property taxes levied by
an affected taxing district on property that meets the
following requirements:
(1) the property does not qualify as exempt property
under Section 15-95 of this Code; and
(2) the property is situated in a business corridor
created by intergovernmental agreement between 2 adjoining
disadvantaged municipalities.
(b) A business corridor created under this Section shall
encompass only territory along the common border of the
municipalities that is (i) undeveloped or underdeveloped and
(ii) not likely to be developed without the creation of the
business corridor.
The intergovernmental agreement shall specify the
territory to be included in the business corridor. The
agreement shall also provide for the percentage amount and

HB0212 Engrossed - 2 - LRB097 02920 HLH 42944 b
duration of an abatement under this Section and for any other
provision necessary to carry out the provisions of this
Section. No abatement under this Section shall exceed 10 years
in duration. Upon adoption of the agreement provided for under
this Section, the municipalities must deliver a certified copy
of the agreement to the county clerk.
(c) As used in this Section:
"Affected taxing district" means both (i) municipalities
party to the intergovernmental agreement and (ii) any school
district that (A) levies property taxes upon property in the
business corridor and (B) has maintained an unrestricted fund
balance of at least 20% of its total direct expenditures for
the most recent 2 years that data is available, as reported in
the districts' Annual Financial Reports to the Illinois State
Board of Education.
"Disadvantaged municipality" means a municipality with (i)
a per capita equalized assessed valuation (EAV) less than 60%
of the State average and (ii) more than 15% of its population
below the national poverty level.