Thursday, March 28, 2013

Moline schools sue Quinn, others over tax exemption for Elliott Aviation

The Moline School District is suing Illinois Gov. Pat Quinn and eight other defendants over a property tax exemption for Elliott Aviation.

The four-count lawsuit claims a permanent property tax exemption signed into law this year specifically for Elliott Aviation violates the Illinois Constitution and deprives the school district of at least $150,000 annually.

Gov. Quinn signed HB4110 into law on Feb. 1. The act -- sponsored locally by state Sen. Mike Jacobs, D-East Moline, state Rep. Pat Verschoore, D-Milan, and former state Rep. Rich Morthland, R-Cordova -- provides a permanent property tax exemption to Elliott for space it leases from the Quad City International Airport.

Other defendants in the suit include the Illinois Department of Revenue and its director, Brian Hamer; the Rock Island County Board of Review and its members; the Rock Island County chief assessor; the Blackhawk Township assessor; and the Coal Valley Township assessor.

The lawsuit contends the school district will suffer "irreparable harm as a result of the unlawful and unconstitutional actions set forth.

"The diversion of property taxes from certain leaseholds at the Metropolitan Airport Authority based upon this unconstitutional law at issue here will harm Plaintiff, many other Rock Island County taxing districts, and all Rock Island County taxpayers," the suit states.

The act provides the property tax exemption to any fixed base operator (FBO) lessee providing aeronautical services to the public at the Quad City International Airport.

The suit states that an attempt to include the Lansing Municipal Airport was removed from the bill.

Rep. Verschoore tried to pass the bill specifically for the Quad City International Airport, but the Lansing Airport was added to the Senate version of the bill, according to the suit. It also states Rep. Verschoore said the Lansing addition was removed because of "objection from people higher up than me."

"The debates indicate the unlawful, irrational and, thus, unconstitutional intent was to reduce certain employers real estate taxes in order to create jobs in Rock Island County only," the lawsuit contends."Thus, giving prohibited exemptions from real property taxation to a special group of non-governmental for-profit private employers."

Earlier this month, the Moline School Board voted to challenge the law as unconstitutional.

Last year, Elliott pushed local legislators to pass the exemption, saying other states grant such exemptions to FBOs and that Elliott would consider taking a planned expansion at the Quad City International Airport elsewhere unless Illinois approved the exemption.The company said the planned expansion could bring 300-400 new jobs over the next 10 years.

On March 4, Elliott announced plans to add 50 jobs within the next two years and to invest $1.8 million in improvements at its airport operations.

The lawsuit seeks declaratory and injunctive relief.

A copy of the suit also was filed with Illinois Attorney General Lisa Madigan along with a Rule 19 notice, which is a notice of claim of unconstitutionality. The notice gives the state a chance to intervene to defend the constitutionality of the law or regulation challenged.

Richard Baeder, vice president and general manager of Elliott Aviation, said he had not seen a copy of the lawsuit and it would be inappropriate for him to comment at this time.Dan Churchill, the attorney representing Moline schools, also declined comment on Wednesday.

Source:  http://qconline.com

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