SB3350 101ST GENERAL ASSEMBLY

LRB101 18504 HLH 67955 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3350

Introduced 2/14/2020, by Sen. Elgie R. Sims, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 200/Art. 10 Div. 21 heading new
35 ILCS 200/10-800 new

Amends the Property Tax Code. Provides that certain property located in Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township may be certified by the South Suburban Land Bank and Development Authority, the Cook County Land Bank Development Authority, or both collectively, as a southland reactivation site. Sets forth valuation procedures for southland reactivation property. Provides that, for the first 3 tax years after the property is certified as southland reactivation property, the aggregate tax liability for the property shall be no greater than $100,000 per year. Provides that, beginning with the fourth tax year after the property is certified as southland reactivation property and continuing through the twelfth tax year after the property is certified as southland reactivation property, the property's tax liability shall be increased over the tax liability for the preceding year by 5% or the percentage change in the Consumer Price Index, whichever is less. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by adding Division 21 to Article 10 as follows:

(35 ILCS 200/Art. 10 Div. 21 heading new)

Division 21. Southland reactivation property

(35 ILCS 200/10-800 new)

Sec. 10-800. Southland reactivation property.

(a) For the purposes of this Section:

"Base year" means the last tax year prior to the date of the application during which the property was occupied and assessed and for which taxes were collected.

"Cook County Land Bank Authority" means the Cook County Land Bank Authority created by ordinance of the Cook County Board.

"Participating entity" means the South Suburban Land Bank and Development Authority, the Cook County Land Bank Development Authority, or both collectively.

"Southland reactivation property" means property that:

(1) has been designated by the municipality by resolution as a priority tax reactivation parcel, site, or property due to its clear pattern of stagnation or decline in real estate taxes for 3 of the last 5 years as a result of its depressed condition;

(2) is held by a participating entity; and

(3) meets the following criteria:

(A) the property has been acquired, and is currently held, by a participating entity for purposes of stabilizing the tax base and enhancing economic activities that promote sustainable, healthy, and stable communities and align with local government plans and priorities;

(B) the property has had its past property and ad valorem taxes cleared and is now classified as exempt;

(C) the property is zoned for commercial or industrial use;

(D) the property is vacant land or contains empty non-residential property that has been vacant for 12 months or more;

(E) the property does not have a current, lawful occupant, as attested to by a supporting affidavit;

(F) sale or transfer of the property, following southland reactivation designation, to a developer would result in investment which would trigger a new higher equalized assessed valuation;

(G) an owner or a person holding, or having held, an interest in or a lien on the property cannot purchase the property through the participating entity;

(H) reoccupation of abandoned property and subsequent substantial rehabilitation is planned, an application for southland reactivation designation is filed, and a resolution passed by the corporate authorities of the municipality prior to the commencement of reoccupation and rehabilitation;

(I) but for the southland reactivation designation, development or redevelopment will not occur; and

(J) the property is located in any of the following Townships in Cook County: Bloom, Bremen,Calumet, Rich, Thornton, or Worth.

"South Suburban Land Bank and Development Authority" means the South Suburban Land Bank and Development Authority created in 2012 by an intergovernmental agreement between 3 south suburban municipalities, which now serves more than 20 communities.

"Tax year" means the calendar year for which assessed value is determined as of January 1 of that year.

(b) Southland reactivation designation shall be considered at a lawful public meeting of the designating municipality. Impacted taxing districts shall receive prior notification of the agenda item to consider designation of the site.

(c) Within 5 years after the effective date of this amendatory Act of the 101st General Assembly, purchasers of real property from the participating entity may submit an application, along with a resolution approved by the respective corporate authorities of the municipalities in which the property is located, to the participating entity to have the property certified as a southland Reactivation property. If the property meets the criteria for southland reactivation property set forth in subsection (a), then the participating entity, has 5 years from the effective date of this amendatory Act of the 101st General Assembly within which it may certify the property as southland reactivation property for the purposes of promoting rehabilitation of vacant and underutilized property in order to attract and enhance economic activities and investment that stabilize, restore, and grow the tax base in severely blighted areas within Chicago's south suburbs. This certification is nonrenewable and shall be transmitted, by the municipality or the participating entity on behalf of the municipality, to the chief county assessment officer as soon as possible after the property is certified. Southland reactivation designation is limited to the original applicant unless expressly approved by the local municipal corporate authorities and the property has no change in use.

(d) Beginning with the first tax year after the property is certified as southland reactivation property and continuing through the twelfth tax year after the property is certified as southland reactivation property, for the purpose of taxation under this Code, the property shall be valued at the last known equalized assessed value, as established by the chief county assessment officer, before the property was exempt. For the first 3 tax years after the property is certified as southland reactivation property, the aggregate tax liability for the property shall be no greater than $100,000 per year. That aggregate tax liability, once collected, shall be distributed to the taxing districts in which the property is located according to each taxing district's proportionate share of that aggregate liability. Beginning with the fourth tax year after the property is certified as southland reactivation property and continuing through the twelfth tax year after the property is certified as southland reactivation property, the property's tax liability for each taxing district in which the property is located shall be increased over the tax liability for the preceding year by 5% or the percentage change in the Consumer Price Index For All Urban Consumers, as determined by the United States Department of Labor, whichever is less. In no event shall the purchaser's annual tax liability decrease.

(e) No later than March 1 of each year before taxes are extended for the prior tax year, the municipality or the participating entity on behalf of the municipality, shall certify to the county clerk of the county in which the property is located a percentage reduction to be applied to property taxes to limit the aggregate tax liability for southland reactivation property in accordance with this Section.

(f) The participating entity shall collect annually for the pilot program period information about the number of applicants, project location, proposed use, investment, job creation, and certifications of southland reactivation sites to allow for the evaluation and assessment of the effectiveness of southland reactivation designation. The participating entity shall annually notify units of local government with taxing jurisdiction within the 6 eligible townships of the participating entity's intent to present to their governing board all collected metrics related to southland reactivation sites so designated to assess outcomes and desired results and report findings to members of the General Assembly at the conclusion of the 5-year designation period.

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