SB0486sam001 100TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 3/1/2018

10000SB0486sam001 LRB100 05150 HLH 36835 a

AMENDMENT TO SENATE BILL 486

AMENDMENT NO. ______. Amend Senate Bill 486 by replacing everything after the enacting clause with the following:

"Section 5. The Property Tax Code is amended by adding Division 20 to Article 10 as follows:

(35 ILCS 200/Art. 10 Div. 20 heading new)

Division 20. Commercial solar energy systems

(35 ILCS 200/10-720 new)

Sec. 10-720. Definitions. For the purposes of this Division 20:

"Allowance for physical depreciation" means (i) the actual age in years of the commercial solar energy system on the assessment date divided by 20 years multiplied by (ii) its trended real property cost basis. The physical depreciation, however, may not reduce the value of the commercial solar energy system to less than 30% of its trended real property cost basis.

"Commercial solar energy system" means any device or assembly of devices that (i) is ground installed and (ii) uses solar energy from the sun for generating electricity for the primary purpose of wholesale or retail sale and not primarily for consumption on the property on which the device or devices reside.

"Commercial solar energy system real property cost basis" represents both the freehold estate and the leasehold estate. The leasehold estate shall have a real property cost basis of $194,000 per megawatt of nameplate capacity. The freehold estate shall have a real property cost basis of $5,000 per megawatt of nameplate capacity. For the purposes of this Section, "nameplate capacity" has the same definition as found in Section 1-10 of the Illinois Power Agency Act.

"Freehold estate" means the land upon which the commercial solar energy system is installed.

"Ground installed" means the installation of a commercial solar energy system, with the primary purpose of solar energy generation for wholesale or retail sale, on a parcel or tract of land.

"Leasehold estate" means the real property improvements of a commercial solar energy system.

"Trended real property cost basis" means the commercial solar energy system real property cost basis multiplied by the trending factor.

"Trending factor" means a number equal to the Consumer Price Index (U.S. city average all items) published by the Bureau of Labor Statistics for the December immediately preceding the assessment date, divided by the Consumer Price Index (U.S. city average all items) published by the Bureau of Labor Statistics for December of 2017.

(35 ILCS 200/10-725 new)

Sec. 10-725. Improvement valuation of commercial solar energy systems in counties with fewer than 3,000,000 inhabitants. Beginning in assessment year 2018, the fair cash value of commercial solar energy system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the trended real property cost basis. Functional obsolescence and external obsolescence of the solar energy device may further reduce the fair cash value of the commercial solar energy system improvements, to the extent they are proved by the taxpayer by clear and convincing evidence.

(35 ILCS 200/10-730 new)

Sec. 10-730. Exempt properties. The provisions of this Division do not apply to commercial solar energy systems that are owned by any person or entity that is otherwise exempt from taxation under this Code.

(35 ILCS 200/10-735 new)

Sec. 10-735. Commercial solar energy systems not subject to equalization. Commercial solar energy systems assessable under this Division are not subject to equalization factors applied by the Department or any board of review, assessor, or chief county assessment officer.

(35 ILCS 200/10-740 new)

Sec. 10-740. Survey for ground installed commercial solar energy systems; parcel identification numbers. Notwithstanding any other provision of law, the owner of the ground installed commercial solar energy system shall commission a metes and bounds survey description of the area immediately surrounding the commercial solar energy system, including access routes, over which the owner of the commercial solar energy system has exclusive control. The owner of the ground installed commercial solar energy system shall, at his or her own expense, use an Illinois-registered land surveyor to prepare the survey. The owner of the ground installed commercial solar energy system shall deliver a copy of the survey to the chief county assessment officer and to the owner of the land upon which the ground installed commercial solar energy system is constructed. Upon receiving a copy of the survey, the chief county assessment officer shall issue a separate parcel identification number or numbers for the property containing the ground installed commercial solar energy system to be used only for the purposes of property assessment for taxation. A plat prepared under this Section shall not be construed as a violation of the Plat Act.

(35 ILCS 200/10-745 new)

Sec. 10-745. Unpaid taxes and liens. Except as otherwise provided in this Section, despite the combined assessment valuation of the leasehold estate and freehold estate, recourse for unpaid taxes or liens for any commercial solar energy system shall be limited to the leasehold estate with no recourse against the freehold estate. The leasehold estate shall not be responsible for: unpaid taxes or liens on the freehold estate from periods before or after the term of the leasehold estate; or liens on the freehold estate unrelated to the leasehold estate.

(35 ILCS 200/10-750 new)

Sec. 10-750. Farmland. Notwithstanding any other provision of law, a portion of the freehold estate that was assessed as farmland in accordance with Section 10-110 of this Act in the assessment year prior to valuation under this Division shall return to being assessed as farmland in accordance with Section 10-110 of this Act in the year following completion of the removal of the commercial solar energy system as long as the property is returned to a farm use as defined in Section 1-60 of this Act, notwithstanding that the land was not used for farming for the 2 preceding years.

(35 ILCS 200/10-755 new)

Sec. 10-755. Incentive agreements. Notwithstanding anything in this Division, the governing body of a municipality or county and the owner of a commercial solar energy system may enter into a voluntary agreement to make payments in lieu of taxes. If such agreement is entered into, the agreement will be in lieu of property taxes otherwise assessed by the municipality or county against the commercial solar energy system as set forth in this Code.

(35 ILCS 200/10-760 new)

Sec. 10-760. Applicability. The provisions of this Division apply for assessment years 2018 through 2033.

Section 99. Effective date. This Act takes effect upon becoming law.".