ILLINOIS POLLUTION CONTROL BOARD

ILLINOIS POLLUTION CONTROL BOARD
IT IS SO ORDERED.
Member Carter abstained.

July 6, 2017

LIMKEMANN SWINE, LLC (Property Identification Number 23-14-400-005),

Petitioner,

v.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,

Respondent.

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PCB 17-78
(Tax Certification - Water)

ORDER OF THE BOARD (C.M. Santos):

On June 9, 2017, the Illinois Environmental Protection Agency (IEPA or Agency) filed a recommendation that the Board certify certain facilities of Limkemann Swine, LLC (Limkemann Swine) as “pollution control facilities” for preferential tax treatment under the Property Tax Code. See 35 ILCS 200/11-5 et seq. (2016); 35 Ill. Adm. Code 125. Limkemann Swine’s wean-to-finish swine facility is located at 1795 E. Co. Rd. 400 in West Point, Hancock County. In this order, the Board describes the legal framework for tax certifications, discusses the IEPA’s recommendation, and certifies that Limkemann Swine’s identified livestock waste 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 1/3% of the fair cash value of their economic productivity to their owners.” 35 ILCS 200/11-5 (2016); 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 (2016); see also 35 Ill. Adm. Code 125.200(a). Under the statute, the Board determines if the facilities are pollution control facilities; however, the Board is not authorized to assess a value of those facilities.

Under Section 125.202 of the Board’s procedural rules, a person may submit an application for tax certification to IEPA. See 35 Ill. Adm. Code 125.202. If IEPA receives a tax certification application, IEPA must file with the Board a recommendation on the application, unless the applicant withdraws the application. See 35 Ill. Adm. Code 125.204(a). Among other things, IEPA’s filing must recommend that the Board issue or deny tax certification. See 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 (2016); see also 35 Ill. Adm. Code 125.216(a).

IEPA’s RECOMMENDATION

IEPA states that it received a tax certification application from Limkemann Swine on January 12, 2017. ¹ Rec. at 1. On June 9, 2017, IEPA filed a recommendation with the Board, attaching Limkemann Swine’s application for certification as part of an Exhibit A. IEPA’s recommendation identifies the facilities at issue:

Livestock waste management facilities consisting of a concrete manure pit (approximately 100 ft. x 200 ft. x 10 ft.), the concrete slatted portion of the floor over the manure pit that captures and contains waste generated in the barns above, eight (8) concrete pump-out pits (approximately 6 ft. x 6 ft. x 10 ft., each) to allow manure removal from the manure pit, and a perimeter drainage tile (approximately 2 in. x 4 in. x 800 ft.) located around the footing of the manure pit to prevent flotation of the pit. Id.

On June 30, 2017, IEPA filed an amended Exhibit A that includes additional figures and explanation of the length of the perimeter drainage tile. IEPA further describes the facilities: “[t]hese livestock waste management facilities are used to collect, transport, and/or store livestock wastes prior to cropland application. . . .” Rec. at 2.

IEPA recommends that the Board certify that Limkemann Swine’s livestock waste management facilities identified in its application to IEPA are pollution control facilities as defined in Section 11-10 of the Property Tax Code (35 ILCS 200/11-10 (2016)) with the “primary purpose of eliminating, preventing, or reducing water pollution”. Rec. at 3; see also Rec. Exh. A (IEPA memorandum).

TAX CERTIFICATE

Based upon IEPA’s recommendation, Limkemann Swine’s application, and the Board’s technical review, the Board finds and certifies that Limkemann Swine’s livestock waste management facilities identified in this order are pollution control facilities under the Property Tax Code (35 ILCS 200/11-10 (2016)). The Board makes no finding regarding the assessed value of those facilities. 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 (2016); 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 (2016)). The Clerk therefore will provide Limkemann Swine and IEPA with a copy of this order.

IT IS SO ORDERED.

Member Carter abstained.

Section 11-60 of the Property Tax Code provides that any applicant or holder aggrieved by the issuance, refusal to issue, denial, revocation, modification or restriction of a pollution control certificate or a low sulfur dioxide emission coal fueled device certificate may appeal the Board’s finding and order to the Circuit Court under the Administrative Review Law (735 ILCS 5/3-101 et seq. (2016)). See 35 ILCS 200/11-60 (2016).

I, Don A. Brown, Clerk of the Illinois Pollution Control Board, certify that the Board adopted the above order on July 6, 2017, by a vote of 4-0.

Don A. Brown, Clerk
Illinois Pollution Control Board