Bill Text: IL HB0238 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that a taxing district may order the county clerk to abate any portion of its taxes on property used by a business that did not have a location in the State in the previous taxable year. Provides that the abatement may not exceed $1,000,000 for all taxing districts in any taxable year. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2015-04-20 - Added Co-Sponsor Rep. Silvana Tabares [HB0238 Detail]

Download: Illinois-2015-HB0238-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB0238 Introduced , by Rep. Sam Yingling SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-165
Amends the Property Tax Code. Provides that a taxing district may order the county clerk to abate any portion of its taxes on property used by a business that did not have a location in the State in the previous taxable year. Provides that the abatement may not exceed $1,000,000 for all taxing districts in any taxable year. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
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 18-165 as follows:
(35 ILCS 200/18-165)
Sec. 18-165. Abatement of taxes.
(a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following types
of property:
(1) Commercial and industrial.
(A) The property of any commercial or industrial
firm, including but not limited to the property of (i)
any firm that is used for collecting, separating,
storing, or processing recyclable materials, locating
within the taxing district during the immediately
preceding year from another state, territory, or
country, or having been newly created within this State
during the immediately preceding year, or expanding an
existing facility, or (ii) any firm that is used for
the generation and transmission of electricity

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

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greater than $25,000,000 but less than
$50,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 5% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 20% of the taxing district's
taxes from the new electric generating facility;
(ii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $50,000,000 but less than
$75,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 10% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 35% of the taxing district's
taxes from the new electric generating facility;
(iii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $75,000,000 but less than
$100,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 20% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 50% of the taxing district's
taxes from the new electric generating facility;
(iv) if the equalized assessed valuation of

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the new electric generating facility is equal to or
greater than $100,000,000 but less than
$125,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 30% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(v) if the equalized assessed valuation of the
new electric generating facility is equal to or
greater than $125,000,000 but less than
$150,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 40% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(vi) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $150,000,000, then the abatement may
not exceed (i) over the entire term of the
abatement, 50% of the taxing district's aggregate
taxes from the new electric generating facility
and (ii) in any one year of abatement, 60% of the
taxing district's taxes from the new electric
generating facility.

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The abatement is not effective unless the owner of
the new electric generating facility agrees to repay to
the taxing district all amounts previously abated,
together with interest computed at the rate and in the
manner provided for delinquent taxes, in the event that
the owner of the new electric generating facility
closes the new electric generating facility before the
expiration of the entire term of the abatement.
The authorization of taxing districts to abate
taxes under this subdivision (a)(1)(A-5) expires on
January 1, 2010.
(B) The property of any commercial or industrial
development of at least (i) 500 acres or (ii) 225 acres
in the case of a commercial or industrial development
that applies for and is granted designation as a High
Impact Business under paragraph (F) of item (3) of
subsection (a) of Section 5.5 of the Illinois
Enterprise Zone Act, having been created within the
taxing district. The abatement shall not exceed a
period of 20 years and the aggregate amount of abated
taxes for all taxing districts combined shall not
exceed $12,000,000.
(C) The property of any commercial or industrial
firm currently located in the taxing district that
expands a facility or its number of employees. The
abatement shall not exceed a period of 10 years and the

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aggregate amount of abated taxes for all taxing
districts combined shall not exceed $4,000,000. The
abatement period may be renewed at the option of the
taxing districts.
(2) Horse racing. Any property in the taxing district
which is used for the racing of horses and upon which
capital improvements consisting of expansion, improvement
or replacement of existing facilities have been made since
July 1, 1987. The combined abatements for such property
from all taxing districts in any county shall not exceed
$5,000,000 annually and shall not exceed a period of 10
years.
(3) Auto racing. Any property designed exclusively for
the racing of motor vehicles. Such abatement shall not
exceed a period of 10 years.
(4) Academic or research institute. The property of any
academic or research institute in the taxing district that
(i) is an exempt organization under paragraph (3) of
Section 501(c) of the Internal Revenue Code, (ii) operates
for the benefit of the public by actually and exclusively
performing scientific research and making the results of
the research available to the interested public on a
non-discriminatory basis, and (iii) employs more than 100
employees. An abatement granted under this paragraph shall
be for at least 15 years and the aggregate amount of abated
taxes for all taxing districts combined shall not exceed

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$5,000,000.
(5) Housing for older persons. Any property in the
taxing district that is devoted exclusively to affordable
housing for older households. For purposes of this
paragraph, "older households" means those households (i)
living in housing provided under any State or federal
program that the Department of Human Rights determines is
specifically designed and operated to assist elderly
persons and is solely occupied by persons 55 years of age
or older and (ii) whose annual income does not exceed 80%
of the area gross median income, adjusted for family size,
as such gross income and median income are determined from
time to time by the United States Department of Housing and
Urban Development. The abatement shall not exceed a period
of 15 years, and the aggregate amount of abated taxes for
all taxing districts shall not exceed $3,000,000.
(6) Historical society. For assessment years 1998
through 2018, the property of an historical society
qualifying as an exempt organization under Section
501(c)(3) of the federal Internal Revenue Code.
(7) Recreational facilities. Any property in the
taxing district (i) that is used for a municipal airport,
(ii) that is subject to a leasehold assessment under
Section 9-195 of this Code and (iii) which is sublet from a
park district that is leasing the property from a
municipality, but only if the property is used exclusively

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for recreational facilities or for parking lots used
exclusively for those facilities. The abatement shall not
exceed a period of 10 years.
(8) Relocated corporate headquarters. If approval
occurs within 5 years after the effective date of this
amendatory Act of the 92nd General Assembly, any property
or a portion of any property in a taxing district that is
used by an eligible business for a corporate headquarters
as defined in the Corporate Headquarters Relocation Act.
Instead of an abatement under this paragraph (8), a taxing
district may enter into an agreement with an eligible
business to make annual payments to that eligible business
in an amount not to exceed the property taxes paid directly
or indirectly by that eligible business to the taxing
district and any other taxing districts for premises
occupied pursuant to a written lease and may make those
payments without the need for an annual appropriation. No
school district, however, may enter into an agreement with,
or abate taxes for, an eligible business unless the
municipality in which the corporate headquarters is
located agrees to provide funding to the school district in
an amount equal to the amount abated or paid by the school
district as provided in this paragraph (8). Any abatement
ordered or agreement entered into under this paragraph (8)
may be effective for the entire term specified by the
taxing district, except the term of the abatement or annual

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payments may not exceed 20 years.
(9) United States Military Public/Private Residential
Developments. Each building, structure, or other
improvement designed, financed, constructed, renovated,
managed, operated, or maintained after January 1, 2006
under a "PPV Lease", as set forth under Division 14 of
Article 10, and any such PPV Lease.
(10) Property located in a business corridor that
qualifies for an abatement under Section 18-184.10.
(11) Property used by a business that did not have a
location in the State in the previous taxable year. The
abatement under this item (11) may not exceed $1,000,000
for all taxing districts in any taxable year.
(b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate any
portion of its taxes on any property that is located within the
corporate limits of the municipality in accordance with Section
8-3-18 of the Illinois Municipal Code.
(Source: P.A. 97-577, eff. 1-1-12; 97-636, eff. 6-1-12; 98-109,
eff. 7-25-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.