ILLINOIS POLLUTION CONTROL BOARD
January 6, 2005
ADAIR AG, LLC (Adair)
(Agrichemical Containment Structures
(Property Identification Number
14-000-131-05)),
Petitioner,
v.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY,
Respondent.
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PCB 05-112
(Tax Certification - Water)
ORDER OF THE BOARD (by J.P. Novak):
On December 20, 2004, the Illinois Environmental Protection Agency (Agency)
recommended that the Board certify certain facilities of Adair AG, LLC (Adair AG) as
“pollution control facilities” for preferential tax treatment under the Property Tax Code (35 ILCS
200/11-5
et seq.
(2002)). The facilities are agrichemical containment structures at Adair AG’s
retail fertilizer plant in Adair, McDonough County. The Agency filed the recommendation
under Part 125 of the Board’s procedural rules (35 Ill. Adm. Code 125). In this order, the Board
describes the legal framework for tax certifications, discusses the Agency’s recommendation,
and certifies that Adair AG’s facilities are pollution control facilities.
LEGAL FRAMEWORK
Under the Property Tax Code, “[i]t is the policy of this State that pollution control
facilities should be valued, at 33
⅓
% of the fair cash value of th eir economic productivity to their
owners.” 35 ILCS 200/11-5 (2002);
see also
35 Ill. Adm. Code 125.200(a)(2). “For tax
purposes, pollution control facilities shall be certified as such by the Pollution Control Board and
shall be assessed by the Department [of Revenue].” 35 ILCS 200/11-20 (2002);
see also
35 Ill.
Adm. Code 125.200(a).
Under Section 125.202 of the Board’s procedural rules, a person may submit an
application for tax certification to the Agency. 35 Ill. Adm. Code 125.202. If the Agency
receives a tax certification application, the Agency must file with the Board a recommendation
on the application, unless the applicant withdraws the application. 35 Ill. Adm. Code 125.204(a).
Among other things, the Agency’s filing must recommend that the Board issue or deny tax
certification. 35 Ill. Adm. Code 125.204(a)(4). If the Board finds “that the claimed facility or
relevant portion thereof is a pollution control facility . . ., the Pollution Control Board . . . shall
enter a finding and issue a certificate to that effect.” 35 ILCS 200/11-25 (2002);
see also
35 Ill.
Adm. Code 125.216(a).
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AGENCY RECOMMENDATION
The Agency states that it received a tax certification application from Adair AG for its
agrichemical containment structures at Adair AG’s retail fertilizer plant on August 13, 2003.
Agency Rec. at 1. On December 20, 2004, the Agency filed a recommendation on the
application with the Board. The Agency’s recommendation identifies the facilities at issue:
Agrichemical containment structures consisting of one bulk liquid agrichemical
operational area containment structures; two bluk liquid agrichemical secondary
containment structures; one minibulk/package agrichemical secondary
containment structure; the portion of the building over one bulk liquid
agrichemical operational area containment structure and one bulk liquid
agrichemical secondary containment structure; associated collection and recovery
systems; and two dry fertilizer operational containment structures, as approved
under Agency-endorsed Agrichemical Facility Permit No. 00066206 (Log N.
0066206). Agency Rec. at 1-2.
The Agency’s recommendation also identifies the location of the facilities: 9960 East 2100th
Street, Adair, in Section 16, Township 5 North, Range 1 West of the Fourth Principal Meridian
in McDonough County.
Id.
at 1.
The Agency recommends that the Board certify that the identified facilities are pollution
control facilities as defined in Section 11-10 of the Property Tax Code (35 ILCS 200/11-10
(2002)) because the primary purpose of the facilities is eliminating, preventing, or reducing
water pollution. Agency Rec. at 2.
TAX CERTIFICATE
The Board finds and certifies that Adair AG’s facilities identified in this order are
pollution control facilities under the Property Tax Code (35 ILCS 200/11-10 (2002)). Under
Section 11-25 of the Property Tax Code, the effective date of this certificate is “the date of
application for the certificate or the date of the construction of the facility, which ever is later.”
35 ILCS 200/11-25 (2002);
see also
35 Ill. Adm. Code 125.216(a). Section 125.216(d) of the
Board’s procedural rules states that the Clerk “will provide the applicant and the Agency with a
copy of the Board’s order setting forth
the Board’s findings and certificate, if any
.” 35 Ill. Adm.
Code 125.216(d) (quoting in italics 35 ILCS 200/11-30 (2002)). The Clerk therefore will
provide Adair AG and the Agency with a copy of this order.
IT IS SO ORDERED.
Section 41(a) of the Environmental Protection Act provides that final Board orders may
be appealed directly to the Illinois Appellate Court within 35 days after the Board serves the
order. 415 ILCS 5/41(a) (2002);
see also
35 Ill. Adm. Code 101.300(d)(2), 101.906, 102.706.
Illinois Supreme Court Rule 335 establishes filing requirements that apply when the Illinois
Appellate Court, by statute, directly reviews administrative orders. 172 Ill. 2d R. 335. The
Board’s procedural rules provide that motions for the Board to reconsider or modify its final
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orders may be filed with the Board within 35 days after the order is received. 35 Ill. Adm. Code
101.520;
see also
35 Ill. Adm. Code 101.902, 102.700, 102.702.
I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, certify that the Board
adopted the above order on January 6, 2005, by a vote of 5-0.
Dorothy M. Gunn, Clerk
Illinois Pollution Control Board
