Illinois General Assembly - Full Text of HB1842
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Full Text of HB1842  102nd General Assembly




State of Illinois
2021 and 2022


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


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.

LRB102 11967 HLH 17303 b






HB1842LRB102 11967 HLH 17303 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by adding
5Division 21 to Article 10 as follows:
6    (35 ILCS 200/Art. 10 Div. 21 heading new)
Division 21. Southland reactivation property

8    (35 ILCS 200/10-800 new)
9    Sec. 10-800. Southland reactivation property.
10    (a) For the purposes of this Section:
11    "Base year" means the last tax year prior to the date of
12the application during which the property was occupied and
13assessed and had an assessor certified value.
14    "Tax year" means the calendar year for which assessed
15value is determined as of January 1 of that year.
16    "Cook County Land Bank Authority" means the Cook County
17Land Bank Authority created by ordinance of the Cook County
19    "Participating entity" means the South Suburban Land Bank
20and Development Authority or the Cook County Land Bank
21Development Authority, either collectively or individually.
22    "South Suburban Land Bank and Development Authority" means



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1the South Suburban Land Bank and Development Authority created
2in 2012 by intergovernmental agreement, which now serves more
3than 20 municipalities across the Southland.
4    "Southland reactivation property" means property that:
5        (1) has been designated by the municipality by
6    resolution as a priority tax reactivation parcel, site, or
7    property due to its clear pattern of stagnation and
8    depressed condition or decline of assessed valuation;
9    municipal authority support for southland reactivation
10    designation will be considered in a lawful public meeting
11    in which impacted taxing districts receive prior
12    notification of the agenda item to consider southland
13    reactivation of site;
14        (2) is held by a participating entity or a
15    municipality; and
16        (3) meets the following criteria:
17            (A) the property is zoned for commercial or
18        industrial use;
19            (B) the property has had its past property and ad
20        valorem taxes cleared and is now classified as exempt
21        or the property has not had a lawful occupant for the
22        past 12 months or more, as attested to by a supporting
23        affidavit;
24            (C) sale or transfer of the property, following
25        southland reactivation designation, to a developer
26        would result in investment which would trigger a



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1        higher taxable value;
2            (D) the property will be sold by a participating
3        entity as set forth in subparagraph (2) to a buyer of
4        property or a developer that has been approved by the
5        municipality whose redevelopment of the parcel, site,
6        or property would reverse long-standing divestment in
7        the area, enhance inclusive economic growth, create
8        jobs or career pathways, support equitable recovery of
9        the community, and stabilize the tax base through
10        investments that align with local government plans and
11        priorities;
12            (E) an application for southland reactivation
13        designation is filed and resolution passed by the
14        municipality prior to the sale, rehabilitation, or
15        reoccupation;
16            (F) but-for the Southland Reactivation
17        designation, development or redevelopment will not
18        occur; and
19            (G) the property is located in any of the
20        following Townships in Cook County: Bloom, Bremen,
21        Calumet, Rich, Thornton, or Worth.
22    (b) Within 5 years after the effective date of this
23amendatory Act of the 102nd General Assembly, purchasers of
24real property from the participating entity may submit an
25application along with a resolution approved by the respective
26corporate authorities of the municipalities in which the



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1property is located to the participating entity to have the
2property certified as southland reactivation property. If the
3property meets the criteria for southland reactivation
4property set forth in this Section, then the participating
5entity has 5 years from the effective date of this amendatory
6Act of the 102nd General Assembly within which it may certify
7the property as southland reactivation property for the
8purposes of promoting rehabilitation of abandoned or vacant
9and underutilized property in order to attract and enhance
10economic activities and investment that stabilize, restore,
11and grow the tax base in severely blighted areas within
12Chicago's south suburbs. This certification is nonrenewable
13and shall be transmitted, by the municipality or the
14participating entity on behalf of the municipality, to the
15chief county assessment officer as soon as possible after the
16property is certified. Southland reactivation designation is
17limited to original applicant unless expressly approved by the
18municipality and the property has no change in use.
19    (c) Beginning with the first tax year after the property
20is certified as southland reactivation property and continuing
21through the twelfth tax year after the property is certified
22as southland reactivation property, for the purpose of
23taxation under this Code, the property shall be valued at 50%
24of the last known equalized assessed value as established by
25the chief county assessment officer, excluding all years with
26property tax exemptions applied as a result of the



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1participating entity's or municipality's ownership. For the
2first year after the property is certified as southland
3reactivation property, the aggregate tax bill liability for
4the property shall be no greater than $100,000 per year. That
5aggregate tax bill liability, once collected, shall be
6distributed to the taxing districts in which the property is
7located according to each taxing district's proportionate
8share of that aggregate liability. Beginning with the second
9tax year after the property is certified as southland
10reactivation property and continuing through the twelfth tax
11year after the property is certified as southland reactivation
12property, the property's tax bill liability for each taxing
13district in which the property is located shall be increased
14over the tax bill liability for the preceding year by 10%. In
15no event shall the purchaser's annual tax liability decrease.
16    (d) No later than March 1 of each year, the municipality or
17the participating entity on behalf of the municipality, shall
18certify to the county clerk of the county in which the property
19is located a percentage southland reactivation reduction to be
20applied to property taxes for that calendar year, as provided
21this Section.
22    (e) The participating entity shall collect the following
23information annually for the pilot program period: the number
24of applicants, project location, proposed use, investment, job
25creation, and certifications of southland reactivation sites
26to allow for the evaluation and assessment of the



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1effectiveness of southland reactivation designation. The
2participating entity responsible for seeking the southland
3Reactivation designation shall present this information to the
4governing body of each taxing district affected by a southland
5reactivation designation on an annual basis and the
6participating entities shall report the above information to
7any requesting members of the General Assembly at the
8conclusion of the 5-year designation period.
9    (f) Any southland reactivation certification granted under
10this Section shall be void if the property is conveyed to an
11entity or person that is liable for any unpaid, delinquent
12property taxes associated with the property.
13    Section 99. Effective date. This Act takes effect upon
14becoming law.