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Illinois Senate Bill SB3974

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3974 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3974 Introduced 10/11/2024, by Sen. David Koehler SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new Amends the Property Tax Code. Provides that the fair cash value of commercial energy storage system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the commercial energy storage system trended real property cost basis. Provides that those commercial energy storage systems are not subject to equalization factors applied by the Department of Revenue or by any board of review, assessor, or chief county assessment officer. Provides that the owner of the commercial energy storage system shall commission a metes and bounds survey description of the land upon which the commercial energy storage system is located. Contains other provisions concerning the assessment of commercial energy storage systems. Effective immediately. LRB103 42821 HLH 76071 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3974 Introduced 10/11/2024, by Sen. David Koehler SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new Amends the Property Tax Code. Provides that the fair cash value of commercial energy storage system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the commercial energy storage system trended real property cost basis. Provides that those commercial energy storage systems are not subject to equalization factors applied by the Department of Revenue or by any board of review, assessor, or chief county assessment officer. Provides that the owner of the commercial energy storage system shall commission a metes and bounds survey description of the land upon which the commercial energy storage system is located. Contains other provisions concerning the assessment of commercial energy storage systems. Effective immediately. LRB103 42821 HLH 76071 b LRB103 42821 HLH 76071 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3974 Introduced 10/11/2024, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new
44 35 ILCS 200/Art. 10 Div. 22 heading new
55 35 ILCS 200/10-920 new
66 35 ILCS 200/10-925 new
77 35 ILCS 200/10-935 new
88 35 ILCS 200/10-940 new
99 35 ILCS 200/10-945 new
1010 35 ILCS 200/10-950 new
1111 35 ILCS 200/10-955 new
1212 35 ILCS 200/10-960 new
1313 Amends the Property Tax Code. Provides that the fair cash value of commercial energy storage system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the commercial energy storage system trended real property cost basis. Provides that those commercial energy storage systems are not subject to equalization factors applied by the Department of Revenue or by any board of review, assessor, or chief county assessment officer. Provides that the owner of the commercial energy storage system shall commission a metes and bounds survey description of the land upon which the commercial energy storage system is located. Contains other provisions concerning the assessment of commercial energy storage systems. Effective immediately.
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1919 1 AN ACT concerning revenue.
2020 2 Be it enacted by the People of the State of Illinois,
2121 3 represented in the General Assembly:
2222 4 Section 5. The Property Tax Code is amended by adding
2323 5 Division 22 to Article 10 as follows:
2424 6 (35 ILCS 200/Art. 10 Div. 22 heading new)
2525 7 Division 22. Commercial energy storage systems
2626 8 (35 ILCS 200/10-920 new)
2727 9 Sec. 10-920. Definitions. As used in this Division:
2828 10 "Allowance for physical depreciation" means the product
2929 11 of: (1) the quotient generated by dividing the actual age in
3030 12 years of the commercial energy storage system on the
3131 13 assessment date by 25 years; multiplied by (2) the commercial
3232 14 energy storage system's trended real property cost basis. The
3333 15 allowance for physical depreciation may not exceed an amount
3434 16 that reduces the value of the commercial energy storage system
3535 17 to 30% of its trended real property cost basis or less.
3636 18 "Commercial energy storage system" means any device or
3737 19 assembly of devices that (i) is either installed as a
3838 20 stand-alone system or tied to a power generation system, (ii)
3939 21 is used for the primary purpose of storing of energy for
4040 22 wholesale or retail sale and not primarily for storage to
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4444 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3974 Introduced 10/11/2024, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
4545 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new
4646 35 ILCS 200/Art. 10 Div. 22 heading new
4747 35 ILCS 200/10-920 new
4848 35 ILCS 200/10-925 new
4949 35 ILCS 200/10-935 new
5050 35 ILCS 200/10-940 new
5151 35 ILCS 200/10-945 new
5252 35 ILCS 200/10-950 new
5353 35 ILCS 200/10-955 new
5454 35 ILCS 200/10-960 new
5555 Amends the Property Tax Code. Provides that the fair cash value of commercial energy storage system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the commercial energy storage system trended real property cost basis. Provides that those commercial energy storage systems are not subject to equalization factors applied by the Department of Revenue or by any board of review, assessor, or chief county assessment officer. Provides that the owner of the commercial energy storage system shall commission a metes and bounds survey description of the land upon which the commercial energy storage system is located. Contains other provisions concerning the assessment of commercial energy storage systems. Effective immediately.
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5858 A BILL FOR
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6464 35 ILCS 200/Art. 10 Div. 22 heading new
6565 35 ILCS 200/10-920 new
6666 35 ILCS 200/10-925 new
6767 35 ILCS 200/10-935 new
6868 35 ILCS 200/10-940 new
6969 35 ILCS 200/10-945 new
7070 35 ILCS 200/10-950 new
7171 35 ILCS 200/10-955 new
7272 35 ILCS 200/10-960 new
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9191 1 later consume on the property on which the device resides, and
9292 2 (iii) is an energy storage system as defined in Section 16-135
9393 3 of the Public Utilities Act.
9494 4 "Commercial energy storage system real property cost
9595 5 basis" means the owner of the commercial energy storage
9696 6 system's interest in the land within the project boundaries
9797 7 and real property improvements and shall be calculated at $496
9898 8 per kilowatt hour (kWh) of rated kilowatt hour (kWh) energy
9999 9 capacity.
100100 10 "Consumer Price Index" means the index published by the
101101 11 Bureau of Labor Statistics of the United States Department of
102102 12 Labor that measures the average change in prices of goods and
103103 13 services purchased by all urban consumers, United States city
104104 14 average, all items, 1982-84 = 100.
105105 15 "Rated kWh energy capacity" means the maximum amount of
106106 16 stored energy in kilowatt hours.
107107 17 "Trended real property cost basis" means the commercial
108108 18 energy storage system real property cost basis multiplied by
109109 19 the trending factor.
110110 20 "Trending factor" means the number generated by dividing
111111 21 the Consumer Price Index published by the Bureau of Labor
112112 22 Statistics in the December immediately preceding the
113113 23 assessment date by the Consumer Price Index published by the
114114 24 Bureau of Labor Statistics in December of 2023.
115115 25 (35 ILCS 200/10-925 new)
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126126 1 Sec. 10-925. Improvement valuation of commercial energy
127127 2 storage systems in counties with fewer than 3,000,000
128128 3 inhabitants. Beginning in assessment year 2024, the fair cash
129129 4 value of commercial energy storage system improvements in
130130 5 counties with fewer than 3,000,000 inhabitants shall be
131131 6 determined by subtracting the allowance for physical
132132 7 depreciation from the commercial energy storage system trended
133133 8 real property cost basis. Functional obsolescence and external
134134 9 obsolescence of the commercial energy storage system
135135 10 improvements may further reduce the fair cash value of the
136136 11 commercial energy storage system improvements to the extent
137137 12 they are proven by the taxpayer by clear and convincing
138138 13 evidence. The chief county assessment officer may make
139139 14 reasonable adjustments to the actual age of the commercial
140140 15 energy storage system to account for the routine replacement
141141 16 or upgrade of system components.
142142 17 (35 ILCS 200/10-935 new)
143143 18 Sec. 10-935. Commercial energy storage systems not subject
144144 19 to equalization. Commercial energy storage systems that are
145145 20 subject to assessment under this Division are not subject to
146146 21 equalization factors applied by the Department or by any board
147147 22 of review, assessor, or chief county assessment officer.
148148 23 (35 ILCS 200/10-940 new)
149149 24 Sec. 10-940. Survey for commercial energy storage systems;
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160160 1 parcel identification numbers for property improved with a
161161 2 commercial energy storage system. Notwithstanding any other
162162 3 provision of law, the owner of the commercial energy storage
163163 4 system shall commission a metes and bounds survey description
164164 5 of the land upon which the commercial energy storage system is
165165 6 located, including access routes, over which the owner of the
166166 7 commercial energy storage system has exclusive control. Land
167167 8 held for future development shall not be included in the
168168 9 project area for real property assessment purposes. The owner
169169 10 of the commercial energy storage system shall, at the owner's
170170 11 own expense, use an Illinois-registered land surveyor to
171171 12 prepare the survey. The owner of the commercial energy storage
172172 13 system shall deliver a copy of the survey to the chief county
173173 14 assessment officer and to the owner of the land upon which the
174174 15 commercial energy storage system is located. Upon receiving a
175175 16 copy of the survey and an agreed acknowledgment to the
176176 17 separate parcel identification number by the owner of the land
177177 18 upon which the commercial energy storage system is
178178 19 constructed, the chief county assessment officer shall issue a
179179 20 separate parcel identification for the real property
180180 21 improvements, including the land containing the commercial
181181 22 energy storage system, to be used only for the purposes of
182182 23 property assessment for taxation. If no survey is provided,
183183 24 the chief county assessment officer shall determine the area
184184 25 of the site that is occupied by the commercial energy storage
185185 26 system. That determination shall be final and may not be
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196196 1 challenged on review. The property records shall contain the
197197 2 legal description of the commercial energy storage system
198198 3 parcel and describe any leasehold interest or other interest
199199 4 of the owner of the commercial energy storage system in the
200200 5 property. A plat prepared under this Section shall not be
201201 6 construed as a violation of the Plat Act.
202202 7 Surveys that are prepared in accordance with either
203203 8 Section 10-740 or Section 10-620 and that also include the
204204 9 location of a commercial energy storage system in their metes
205205 10 and bounds description shall satisfy the requirements of this
206206 11 Section.
207207 12 (35 ILCS 200/10-945 new)
208208 13 Sec. 10-945. Real estate taxes. Notwithstanding the
209209 14 provisions of Section 9-175 of this Code, the owner of the
210210 15 commercial energy storage system shall be liable for the real
211211 16 estate taxes for the land and real property improvements of
212212 17 the commercial energy storage system. Notwithstanding the
213213 18 foregoing, the owner of the land upon which a commercial
214214 19 energy storage system is located may pay any unpaid tax of the
215215 20 commercial energy storage system parcel prior to the
216216 21 initiation of any tax sale proceedings.
217217 22 (35 ILCS 200/10-950 new)
218218 23 Sec. 10-950. Property assessed as farmland.
219219 24 Notwithstanding any other provision of law, real property
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230230 1 assessed as farmland in accordance with Section 10-110 in the
231231 2 assessment year prior to valuation under this Division shall
232232 3 return to being assessed as farmland in accordance with
233233 4 Section 10-110 in the year following completion of the removal
234234 5 of the commercial energy storage system as long as the
235235 6 property is returned to a farm use as defined in Section 1-60,
236236 7 notwithstanding that the land was not used for farming for the
237237 8 2 preceding years.
238238 9 (35 ILCS 200/10-955 new)
239239 10 Sec. 10-955. Abatements. Any taxing district may, upon a
240240 11 majority vote of its governing authority and after the
241241 12 determination of the assessed valuation as set forth in this
242242 13 Code, order the clerk of the appropriate municipality or
243243 14 county to abate any portion of real property taxes otherwise
244244 15 levied or extended by the taxing district on a commercial
245245 16 energy storage system.
246246 17 (35 ILCS 200/10-960 new)
247247 18 Sec. 10-960. Applicability. The provisions of this
248248 19 Division apply for assessment years 2024 through 2040.
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