Bill Text: IL HB2316 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that property that is used for a petroleum refinery may be the subject of a real property tax assessment settlement agreement among the taxpayer and taxing districts in which the property is situated. Makes changes concerning the valuation of pollution control facilities. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2316 Detail]

Download: Illinois-2023-HB2316-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2316 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
35 ILCS 200/9-45
35 ILCS 200/11-15
Amends the Property Tax Code. Provides that property that is used for a petroleum refinery may be the subject of a real property tax assessment settlement agreement among the taxpayer and taxing districts in which the property is situated. Makes changes concerning the valuation of pollution control facilities. Effective immediately.
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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 changing
Sections 9-45 and 11-15 as follows:
(35 ILCS 200/9-45)
Sec. 9-45. Property index number system. The county clerk
in counties of 3,000,000 or more inhabitants and, subject to
the approval of the county board, the chief county assessment
officer or recorder, in counties of less than 3,000,000
inhabitants, may establish a property index number system
under which property may be listed for purposes of assessment,
collection of taxes or automation of the office of the
recorder. The system may be adopted in addition to, or instead
of, the method of listing by legal description as provided in
Section 9-40. The system shall describe property by township,
section, block, and parcel or lot, and may cross-reference the
street or post office address, if any, and street code number,
if any. The county clerk, county treasurer, chief county
assessment officer or recorder may establish and maintain
cross indexes of numbers assigned under the system with the
complete legal description of the properties to which the
numbers relate. Index numbers shall be assigned by the county

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clerk in counties of 3,000,000 or more inhabitants, and, at
the direction of the county board in counties with less than
3,000,000 inhabitants, shall be assigned by the chief county
assessment officer or recorder. Tax maps of the county clerk,
county treasurer or chief county assessment officer shall
carry those numbers. The indexes shall be open to public
inspection and be made available to the public. Any property
index number system established prior to the effective date of
this Code shall remain valid. However, in counties with less
than 3,000,000 inhabitants, the system may be transferred to
another authority upon the approval of the county board.
Any real property used for a power generating or
automotive manufacturing facility located within a county of
less than 1,000,000 inhabitants, as to which litigation with
respect to its assessed valuation is pending or was pending as
of January 1, 1993, may be the subject of a real property tax
assessment settlement agreement among the taxpayer and taxing
districts in which it is situated. In addition, any real
property that is located in a county with fewer than 1,000,000
inhabitants and (i) is used for natural gas extraction and
fractionation or olefin and polymer manufacturing or (ii) is
used for a petroleum refinery and (ii) located within a county
of less than 1,000,000 inhabitants may be the subject of a real
property tax assessment settlement agreement among the
taxpayer and taxing districts in which the property is
situated if litigation is or was pending as to its assessed

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valuation as of January 1, 2003 or thereafter. Other
appropriate authorities, which may include county and State
boards or officials, may also be parties to such agreements.
Such agreements may include the assessment of the facility or
property for any years in dispute as well as for up to 10 years
in the future. Such agreements may provide for the settlement
of issues relating to the assessed value of the facility and
may provide for related payments, refunds, claims, credits
against taxes and liabilities in respect to past and future
taxes of taxing districts, including any fund created under
Section 20-35 of this Act, all implementing the settlement
agreement. Any such agreement may provide that parties thereto
agree not to challenge assessments as provided in the
agreement. An agreement entered into on or after January 1,
1993 may provide for the classification of property that is
the subject of the agreement as real or personal during the
term of the agreement and thereafter. It may also provide that
taxing districts agree to reimburse the taxpayer for amounts
paid by the taxpayer in respect to taxes for the real property
which is the subject of the agreement to the extent levied by
those respective districts, over and above amounts which would
be due if the facility were to be assessed as provided in the
agreement. Such reimbursement may be provided in the agreement
to be made by credit against taxes of the taxpayer. No credits
shall be applied against taxes levied with respect to debt
service or lease payments of a taxing district. No referendum

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approval or appropriation shall be required for such an
agreement or such credits and any such obligation shall not
constitute indebtedness of the taxing district for purposes of
any statutory limitation. The county collector shall treat
credited amounts as if they had been received by the collector
as taxes paid by the taxpayer and as if remitted to the
district. A county treasurer who is a party to such an
agreement may agree to hold amounts paid in escrow as provided
in the agreement for possible use for paying taxes until
conditions of the agreement are met and then to apply these
amounts as provided in the agreement. No such settlement
agreement shall be effective unless it shall have been
approved by the court in which such litigation is pending. Any
such agreement which has been entered into prior to adoption
of this amendatory Act of 1988 and which is contingent upon
enactment of authorizing legislation shall be binding and
enforceable.
(Source: P.A. 96-609, eff. 8-24-09.)
(35 ILCS 200/11-15)
Sec. 11-15. Method of valuation for pollution control
facilities. To determine 33 1/3% of the fair cash value of any
certified pollution control device facilities in assessing
those facilities, the Department shall determine the take into
consideration the actual or probable net earnings attributable
to the facilities in question, capitalized on the basis of

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their productive earning value to their owner; the probable
net value that which could be realized by its their owner if
the facilities were removed and sold at a fair, voluntary
sale, giving due account to the expense of removal site
restoration, and transportation. The property's net value
shall be considered to be 33 1/3% of the fair cash value and
condition of the particular facilities in question; and other
information as the Department may consider as bearing on the
fair cash value of the facilities to their owner, consistent
with the principles set forth in this Section. For the
purposes of this Code, earnings shall be attributed to a
pollution control facility only to the extent that its
operation results in the production of a commercially saleable
by-product or increases the production or reduces the
production costs of the products or services otherwise sold by
the owner of such facility.
(Source: P.A. 83-121; 88-455.)
Section 99. Effective date. This Act takes effect upon
becoming law.