SB 702 — REVENUE-TECH

SB0702 EngrossedEnrolled LRB094 08536 BDD 38743 b AN ACT concerning revenue.

PPV Leases must be classified and valued as set forth in Sections 10-370 through 10-380 during the period beginning January 1, 2006 and ending with the earlier of the year 50 years after theJanuary base1, year2006 or the year in which a PPV Lease terminates.

(a) "PPV Lease" means a leasehold interest in property that is exempt from taxation under Section 15-50 of this Code and that is leased, pursuant to authority set forth in Section 2878 of Chapter 10 of the United States Code, to another whose property is not exempt for the purpose of, after January 1, 2006, the design, finance, construction, renovation, management, operation, and maintenance of rental housing units and associated improvements at,at amongnaval othertraining facilities,and related naval trainingsupport facilities in the State of Illinois.

(b) "Net operating income" means all revenues received minus the lesser of (i) 39%42% of all revenues or (ii) actual expenses before interest, taxes, depreciation, and SB0702 Enrolled - 2 - LRB094 08536 BDD 38743 b amortization.

SB0702(c) Engrossed - 2 - LRB094 08536 BDD 38743 b "Tax load factor" means the level of assessment, as set forth under item (b) of Section 9-145 or under Section 9-150, multiplied by the cumulative tax rate for the current taxable year.

(c) To determine the fair cash value of a PPV Lease, the net operating income is divided by (i) a rate of 5.75%7.75% plus (ii) the actual or most recently ascertainable tax load factor for the subject year.

(c)(d) By April 15 of each year, the holder of a PPV Lease must report to the chief county assessment officer in each county in which the leasehold property is located the annual gross income and expenses derived and incurred from the PPV Lease, including the rental of leased property for each military housing facility subject to a PPV Lease.

For the taxable years 2006, 2007, 2008, and 2009, the chief county assessment officer in the county in which property subject to a PPV Lease is located shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of this Division 14 in assessing and determining the value of any qualifiedPPV propertyLease for purposes of the property tax laws of this State.

(a) Any taxing district, upon a majority vote of its governing authority, may, after the determination of the SB0702 Enrolled - 3 - LRB094 08536 BDD 38743 b assessed valuation of its property, order the clerk of that county to abate any portion of its taxes on the following types SB0702 Engrossed - 3 - LRB094 08536 BDD 38743 b of property:

The abatement shall SB0702 Enrolled - 4 - LRB094 08536 BDD 38743 b not exceed a period of 10 years.

SB0702 Engrossed - 4 - LRB094 08536 BDD 38743 b (i) if the equalized assessed valuation of the new electric generating facility is equal to or 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;

(iv) if the equalized assessed valuation of 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 SB0702 Enrolled - 5 - LRB094 08536 BDD 38743 b year of abatement, 60% of the taxing district’s taxes from the new electric generating facility;

SB0702 Engrossed - 5 - LRB094 08536 BDD 38743 b (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;

The abatement shall not exceed a period of 20 years and the aggregate amount of abated taxes for all taxing districts combined shall SB0702 Enrolled - 6 - LRB094 08536 BDD 38743 b not exceed $12,000,000.

(C) The property of any commercial or industrial SB0702 Engrossed - 6 - LRB094 08536 BDD 38743 b firm currently located in the taxing district that expands a facility or its number of employees.

For purposes of this paragraph, "older households" means those households (i) SB0702 Enrolled - 7 - LRB094 08536 BDD 38743 b living in housing provided under any State or federal program that the Department of Human Rights determines is SB0702 Engrossed - 7 - LRB094 08536 BDD 38743 b 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.

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 SB0702 Enrolled - 8 - LRB094 08536 BDD 38743 b occupied pursuant to a written lease and may make those payments without the need for an annual appropriation.

No SB0702 Engrossed - 8 - LRB094 08536 BDD 38743 b 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).

Each buildingbuilding, structure, or structureother 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 10.10, and any such PPV Lease.

"Extension limitation" means (a) the lesser of 5% or the SB0702 Enrolled - 9 - LRB094 08536 BDD 38743 b percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year or (b) the rate of increase approved by voters under Section 18-205.

SB0702 Engrossed - 9 - LRB094 08536 BDD 38743 b "Affected county" means a county of 3,000,000 or more inhabitants or a county contiguous to a county of 3,000,000 or more inhabitants.

(d) made for any taxing district to pay interest or principal on bonds issued to refund or continue to refund bonds issued after October 1, 1991 that were approved by SB0702 Enrolled - 10 - LRB094 08536 BDD 38743 b referendum;

(e) made for any taxing district to pay interest or principal on revenue bonds issued before October 1, 1991 for payment of which a property tax levy or the full faith and SB0702 Engrossed - 10 - LRB094 08536 BDD 38743 b credit of the unit of local government is pledged;

(m) made for temporary relocation loan repayment purposes pursuant to Sections 2-3.77 SB0702 Enrolled - 11 - LRB094 08536 BDD 38743 b and 17-2.2d of the School CodeCode;, ;, and (n) made for payment of principal and interest on any bonds issued under the authority of Section 17-2.2d of the School Code;

and (o) (m) made for SB0702 Engrossed - 11 - LRB094 08536 BDD 38743 b contributions to a firefighter’s pension fund created under Article 4 of the Illinois Pension Code, to the extent of the amount certified under item (5) of Section 4-134 of the Illinois Pension Code.

(h) made for payments of principal and interest on bonds issued under the Metropolitan SB0702 Enrolled - 12 - LRB094 08536 BDD 38743 b Water Reclamation District Act to finance construction projects initiated before October 1, 1991;

(h-4) made for stormwater management purposes by the Metropolitan Water SB0702 Engrossed - 12 - LRB094 08536 BDD 38743 b Reclamation District of Greater Chicago under Section 12 of the Metropolitan Water Reclamation District Act;

"Aggregate extension" for all taxing districts to which this Law applies in accordance with Section 18-213, except for SB0702 Enrolled - 13 - LRB094 08536 BDD 38743 b those taxing districts subject to paragraph (2) of subsection (e) of Section 18-213, means the annual corporate extension for the taxing district and those special purpose extensions that SB0702 Engrossed - 13 - LRB094 08536 BDD 38743 b are made annually for the taxing district, excluding special purpose extensions:

(h) made for payments of principal and SB0702 Enrolled - 14 - LRB094 08536 BDD 38743 b interest on limited bonds, as defined in Section 3 of the Local Government Debt Reform Act, in an amount not to exceed the debt service extension base less the amount in items (b), (c), and SB0702 Engrossed - 14 - LRB094 08536 BDD 38743 b (e) of this definition for non-referendum obligations, except obligations initially issued pursuant to referendum;

(d) made for any taxing district to pay interest or principal on bonds issued to refund or continue to refund bonds issued after the effective date of this amendatory Act of 1997 if the bonds SB0702 Enrolled - 15 - LRB094 08536 BDD 38743 b were approved by referendum after the effective date of this amendatory Act of 1997;

(e) made for any taxing district to pay interest or principal on revenue bonds issued before the SB0702 Engrossed - 15 - LRB094 08536 BDD 38743 b effective date of this amendatory Act of 1997 for payment of which a property tax levy or the full faith and credit of the unit of local government is pledged;

SB0702 Enrolled - 16 - LRB094 08536 BDD 38743 b "Debt service extension base" means an amount equal to that portion of the extension for a taxing district for the 1994 levy year, or for those taxing districts subject to this Law in SB0702 Engrossed - 16 - LRB094 08536 BDD 38743 b accordance with Section 18-213, except for those subject to paragraph (2) of subsection (e) of Section 18-213, for the levy year in which the referendum making this Law applicable to the taxing district is held, or for those taxing districts subject to this Law in accordance with paragraph (2) of subsection (e) of Section 18-213 for the 1996 levy year, constituting an extension for payment of principal and interest on bonds issued by the taxing district without referendum, but not including excluded non-referendum bonds.

"Special purpose extensions" include, but are not limited to, extensions for levies made on an annual basis for unemployment and workers’ compensation, self-insurance, SB0702 Enrolled - 17 - LRB094 08536 BDD 38743 b contributions to pension plans, and extensions made pursuant to Section 6-601 of the Illinois Highway Code for a road district’s permanent road fund whether levied annually or not.

SB0702 Engrossed - 17 - LRB094 08536 BDD 38743 b The extension for a special service area is not included in the aggregate extension.

"New property" means (i) the assessed value, after final board of review or board of appeals action, of new improvements or additions to existing improvements on any parcel of real property that increase the assessed value of that real property during the levy year multiplied by the equalization factor issued by the Department under Section 17-30, (ii) the assessed value, after final board of review or board of appeals action, of real property not exempt from real estate taxation, which real property was exempt from real estate taxation for any portion of the immediately preceding levy year, multiplied by the equalization factor issued by the Department under Section 17-30, including the assessed valuevalue, upon final stabilization of occupancy after new construction is complete, of any real property located within the boundaries of an otherwise or previously exempt military reservation that is intended for residential use and owned by or leased to a private corporation or other private entity, and (iii) in counties that classify in accordance with Section 4 of Article IX of the Illinois Constitution, an incentive property’s additional assessed value resulting from a scheduled increase in the level of assessment as applied to the first year final board of review market value.

SB0702 Enrolled - 18 - LRB094 08536 BDD 38743 b "Qualified airport authority" means an airport authority organized under the Airport Authorities Act and located in a county bordering on the State of Wisconsin and having a population in excess of 200,000 and not greater than 500,000.

"Recovered tax increment value" means, except as otherwise SB0702 Engrossed - 18 - LRB094 08536 BDD 38743 b provided in this paragraph, the amount of the current year’s equalized assessed value, in the first year after a municipality terminates the designation of an area as a redevelopment project area previously established under the Tax Increment Allocation Development Act in the Illinois Municipal Code, previously established under the Industrial Jobs Recovery Law in the Illinois Municipal Code, or previously established under the Economic Development Area Tax Increment Allocation Act, of each taxable lot, block, tract, or parcel of real property in the redevelopment project area over and above the initial equalized assessed value of each property in the redevelopment project area.

In the first year after a municipality removes a taxable lot, block, tract, or parcel of real property from a redevelopment project area established under the Tax Increment Allocation Development Act in the Illinois Municipal Code, the Industrial Jobs Recovery SB0702 Enrolled - 19 - LRB094 08536 BDD 38743 b Law in the Illinois Municipal Code, or the Economic Development Area Tax Increment Allocation Act, "recovered tax increment value" means the amount of the current year’s equalized assessed value of each taxable lot, block, tract, or parcel of real property removed from the redevelopment project area over SB0702 Engrossed - 19 - LRB094 08536 BDD 38743 b and above the initial equalized assessed value of that real property before removal from the redevelopment project area.