HB1842 102ND GENERAL ASSEMBLY

LRB102 11967 HLH 17303 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1842

Introduced 2/17/2021, by Rep. Anthony DeLuca

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 as southland reactivation property. Provides that, 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, the property shall be valued at 50% of the last known equalized assessed value. Sets forth the maximum aggregate tax liability for property that has been certified as southland reactivation property. 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 had an assessor certified value.

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

"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 or the Cook County Land Bank Development Authority, either collectively or individually.

"South Suburban Land Bank and Development Authority" means the South Suburban Land Bank and Development Authority created in 2012 by intergovernmental agreement, which now serves more than 20 municipalities across the Southland.

"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 and depressed condition or decline of assessed valuation; municipal authority support for southland reactivation designation will be considered in a lawful public meeting in which impacted taxing districts receive prior notification of the agenda item to consider southland reactivation of site;

(2) is held by a participating entity or a municipality; and

(3) meets the following criteria:

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

(B) the property has had its past property and ad valorem taxes cleared and is now classified as exempt or the property has not had a lawful occupant for the past 12 months or more, as attested to by a supporting affidavit;

(C) sale or transfer of the property, following southland reactivation designation, to a developer would result in investment which would trigger a higher taxable value;

(D) the property will be sold by a participating entity as set forth in subparagraph (2) to a buyer of property or a developer that has been approved by the municipality whose redevelopment of the parcel, site, or property would reverse long-standing divestment in the area, enhance inclusive economic growth, create jobs or career pathways, support equitable recovery of the community, and stabilize the tax base through investments that align with local government plans and priorities;

(E) an application for southland reactivation designation is filed and resolution passed by the municipality prior to the sale, rehabilitation, or reoccupation;

(F) but-for the Southland Reactivation designation, development or redevelopment will not occur; and

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

(b) Within 5 years after the effective date of this amendatory Act of the 102nd 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 southland reactivation property. If the property meets the criteria for southland reactivation property set forth in this Section, then the participating entity has 5 years from the effective date of this amendatory Act of the 102nd General Assembly within which it may certify the property as southland reactivation property for the purposes of promoting rehabilitation of abandoned or 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 original applicant unless expressly approved by the municipality and the property has no change in use.

(c) 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 50% of the last known equalized assessed value as established by the chief county assessment officer, excluding all years with property tax exemptions applied as a result of the participating entity's or municipality's ownership. For the first year after the property is certified as southland reactivation property, the aggregate tax bill liability for the property shall be no greater than $100,000 per year. That aggregate tax bill 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 second 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 bill liability for each taxing district in which the property is located shall be increased over the tax bill liability for the preceding year by 10%. In no event shall the purchaser's annual tax liability decrease.

(d) No later than March 1 of each 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 southland reactivation reduction to be applied to property taxes for that calendar year, as provided this Section.

(e) The participating entity shall collect the following information annually for the pilot program period: 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 responsible for seeking the southland Reactivation designation shall present this information to the governing body of each taxing district affected by a southland reactivation designation on an annual basis and the participating entities shall report the above information to any requesting members of the General Assembly at the conclusion of the 5-year designation period.

(f) Any southland reactivation certification granted under this Section shall be void if the property is conveyed to an entity or person that is liable for any unpaid, delinquent property taxes associated with the property.

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