Sen. Laura M. Murphy
Filed: 2/15/2022
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1 | AMENDMENT TO SENATE BILL 3477
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2 | AMENDMENT NO. ______. Amend Senate Bill 3477 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Vacancy Fraud Act. | ||||||
6 | Section 5. Public policy. Certain commercial properties in | ||||||
7 | Cook County receive a vacancy reduction because they are | ||||||
8 | partly or completely vacant. In order to revitalize struggling | ||||||
9 | commercial corridors and foster economic development in Cook | ||||||
10 | County commercial corridors, it is imperative that owners of | ||||||
11 | commercial properties that receive a vacancy reduction attempt | ||||||
12 | to lease or sell those properties or make the alterations or | ||||||
13 | modifications necessary to lease or sell those properties. | ||||||
14 | The General Assembly finds that it is against public | ||||||
15 | policy for commercial property owners to receive a vacancy | ||||||
16 | reduction without attempting to lease or sell those properties |
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1 | or make the modifications or alterations necessary to lease or | ||||||
2 | sell those properties because it burdens homeowners and | ||||||
3 | actively operating businesses, lessens the taxing districts' | ||||||
4 | tax bases, and causes blight in commercial corridors. | ||||||
5 | Section 10. Definitions. As used in this Act: | ||||||
6 | "Subject property" means real property located in a county | ||||||
7 | with 3,000,000 or more inhabitants, or a portion of that | ||||||
8 | property, that is designated or zoned for commercial or | ||||||
9 | business use and receives a vacancy reduction. With respect to | ||||||
10 | real property that is zoned or designated as mixed-use | ||||||
11 | property, this Act applies only to that portion designated or | ||||||
12 | zoned for commercial or business use. | ||||||
13 | "Vacancy reduction" means a decrease in assessed value, a | ||||||
14 | decrease in market value, or an abatement of taxes by the chief | ||||||
15 | county assessment officer, a board of review, a county, or a | ||||||
16 | taxing district, which is permitted by ordinance, resolution, | ||||||
17 | or policy granting such a decrease in assessed value to | ||||||
18 | property that is vacant. | ||||||
19 | Section 15. Vacancy fraud complaints. | ||||||
20 | (a) The board of review in a county with 3,000,000 or more | ||||||
21 | inhabitants is authorized to hear vacancy fraud complaints | ||||||
22 | brought no more than 5 years after the vacancy fraud occurred. | ||||||
23 | No vacancy fraud complaints may be brought for vacancy | ||||||
24 | reductions that were granted prior to the effective date of |
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1 | this Act. If there is no actively installed or operating board | ||||||
2 | of review, the chief county assessment officer is authorized | ||||||
3 | to designate a department or official to hear those | ||||||
4 | complaints. If the chief county assessment officer designates | ||||||
5 | a department or official to hear complaints because there is | ||||||
6 | no actively installed or operating board of review, then | ||||||
7 | references to the board of review in this Act shall mean the | ||||||
8 | designated department or official. | ||||||
9 | (b) Beginning on January 1, 2023, any owner of real | ||||||
10 | property located in a county with 3,000,000 or more | ||||||
11 | inhabitants may file a written vacancy fraud complaint with | ||||||
12 | the appropriately designated board of review within the | ||||||
13 | applicable filing period set forth in subsection (a) alleging | ||||||
14 | that the subject property has received a vacancy reduction and | ||||||
15 | that the owner of the subject property is not actively | ||||||
16 | attempting to lease, sell, alter, or modify the property to | ||||||
17 | prepare it for sale or lease. The board of review shall | ||||||
18 | determine the process by which a vacancy fraud complaint may | ||||||
19 | be filed. | ||||||
20 | (c) Only one vacancy fraud complaint shall be considered | ||||||
21 | and heard by the board of review for each instance a property | ||||||
22 | received a vacancy reduction. The decision of the board of | ||||||
23 | review shall be binding on future complaints based on the same | ||||||
24 | vacancy fraud reduction in the same year. If more than one | ||||||
25 | vacancy fraud complaint is pending concurrently, those | ||||||
26 | complaints shall be consolidated. |
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1 | (d) The party alleging vacancy fraud shall file the | ||||||
2 | appropriate notice and documents, as prescribed by the board | ||||||
3 | of review, in the manner determined by the board of review. | ||||||
4 | Vacancy fraud complaints may be filed by the party alleging | ||||||
5 | vacancy fraud or an attorney acting on that party's behalf. | ||||||
6 | (e) Upon receipt of a written complaint that is timely | ||||||
7 | filed, the board of review shall process the complaint and | ||||||
8 | provide the appropriate notice to the property that is the | ||||||
9 | subject of the complaint. The board of review that will hear | ||||||
10 | the vacancy fraud complaint shall establish the process by | ||||||
11 | which notice shall be provided and by which complaints shall | ||||||
12 | be heard. | ||||||
13 | Section 20. Factors in determining vacancy fraud. | ||||||
14 | (a) In determining whether the owner of a subject property | ||||||
15 | is actively attempting to sell or lease the subject property | ||||||
16 | or actively attempting to modify or alter the subject property | ||||||
17 | for sale or lease, the board may consider the following | ||||||
18 | factors: | ||||||
19 | (1) whether there is a sign on the subject property | ||||||
20 | advertising that it is for sale or for lease; | ||||||
21 | (2) whether the subject property is advertised for | ||||||
22 | sale or for lease in a newspaper of general circulation | ||||||
23 | where the property is located; | ||||||
24 | (3) whether the subject property is advertised for | ||||||
25 | sale or for lease on the internet, and whether potential |
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1 | buyers or tenants are reasonably able to access the | ||||||
2 | internet listing; | ||||||
3 | (4) whether the owner of the subject property has | ||||||
4 | contracted for the services of an Illinois licensed real | ||||||
5 | estate professional for the purpose of selling or leasing | ||||||
6 | the subject property; | ||||||
7 | (5) whether any advertised sale price or advertised | ||||||
8 | rental price for the subject property is excessive; | ||||||
9 | (6) whether a contract for sale or lease of the | ||||||
10 | subject property is pending; | ||||||
11 | (7) whether the subject property is subsequently sold | ||||||
12 | or leased and the amount of time that passed from the | ||||||
13 | original vacancy until the sale or lease date; | ||||||
14 | (8) whether the owner has applied for and received | ||||||
15 | demolition or construction permits for the subject | ||||||
16 | property; | ||||||
17 | (9) whether the owner has responded to inquiries to | ||||||
18 | lease or sell the property; | ||||||
19 | (10) whether the property has been altered or modified | ||||||
20 | for the purpose of leasing or selling the property; | ||||||
21 | (11) whether the property owner has attempted to | ||||||
22 | lease, sell, or alter or modify the subject property but | ||||||
23 | has not been able to proceed because of the inability to | ||||||
24 | obtain permits or because court proceedings involving | ||||||
25 | prior renters have precluded such action; and | ||||||
26 | (12) any other factors the board deems necessary to |
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1 | determine if the owner of the subject property is actively | ||||||
2 | attempting to lease or sell the subject property or | ||||||
3 | actively attempting to modify or alter the subject | ||||||
4 | property for sale or lease. | ||||||
5 | (b) For purposes of paragraphs (1), (2), and (3) of | ||||||
6 | subsection (a), any signs, newspaper advertisements, or | ||||||
7 | internet advertisements shall contain valid contact | ||||||
8 | information for the owner or agent of the property. If the | ||||||
9 | contact information does not connect potential tenants or | ||||||
10 | buyers to a person who can facilitate the purchase or lease of | ||||||
11 | the subject property, or if the owner or agent does not respond | ||||||
12 | to the inquiry within 30 days, the signs, newspaper | ||||||
13 | advertisements, or internet advertisements may be disregarded | ||||||
14 | in the determination of whether a property owner was actively | ||||||
15 | attempting to sell or lease the subject property or actively | ||||||
16 | attempting to modify or alter the subject property for sale or | ||||||
17 | lease. | ||||||
18 | Section 25. Penalties. | ||||||
19 | (a) Before assessing any penalties under this Act, the | ||||||
20 | board of review shall give notice of the complaint to the chief | ||||||
21 | county assessment officer who certified the vacancy relief and | ||||||
22 | give the chief county assessment officer an opportunity to be | ||||||
23 | heard on the matter. | ||||||
24 | (b) Upon determining that an owner of a subject property | ||||||
25 | is not actively attempting to sell or lease the subject |
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1 | property, or actively attempting to alter or modify the | ||||||
2 | subject property for sale or lease, the board of review may | ||||||
3 | direct the chief county assessment officer to do any of the | ||||||
4 | following: | ||||||
5 | (1) require from the owner of the subject property the | ||||||
6 | payment of up to 3 times the amount of back taxes owed for | ||||||
7 | any vacancy
reduction the subject property received for | ||||||
8 | the period in which the subject property received the | ||||||
9 | reduction but was found to have engaged in vacancy fraud | ||||||
10 | as defined in this Act; and | ||||||
11 | (2) require from the owner of the subject property the | ||||||
12 | payment of interest of up to 10% per annum on any back | ||||||
13 | taxes sought under paragraph (1). | ||||||
14 | (c) The unpaid taxes shall be paid to the appropriate | ||||||
15 | taxing districts in the manner provided for the payment of | ||||||
16 | property taxes under the Property Tax Code and allocated to | ||||||
17 | fund the implementation of this Act. Interest and penalties | ||||||
18 | shall be paid to the chief county assessment officer's office | ||||||
19 | to cover the costs associated with educating the public on the | ||||||
20 | provisions of this Act. | ||||||
21 | (d) No penalties shall be assessed until the person to be | ||||||
22 | affected has been notified and given an opportunity to be | ||||||
23 | heard.
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.".
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