HB5685 100TH GENERAL ASSEMBLY

LRB100 17784 HLH 32963 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5685

Introduced , by Rep. Tim Butler

SYNOPSIS AS INTRODUCED:

35 ILCS 200/10-40
35 ILCS 200/10-55
35 ILCS 200/10-65 rep.

Amends the Property Tax Code. Makes the following changes in the Historic Residence Assessment Freeze Law: (1) replaces references to the Historic Preservation Agency with the Department of Natural Resources; (2) provides that, if the fair cash value of the historic building is reduced because the property is sold or because the property is found to have been overassessed for the year in which the rehabilitation period by the chief county assessment officer, the board of review, or the Property Tax Appeal Board, then the base year valuation shall be the reduced fair cash value; and (3) provides that, if an owner receives a certificate of rehabilitation, that same owner may not reapply for a new certificate of rehabilitation for the same property until 4 years after the last year of the adjustment valuation period. Repeals a Section concerning receipt of applications by a unit of local government.

FISCAL 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 changing Sections 10-40 and 10-55 as follows:

(35 ILCS 200/10-40)

Sec. 10-40. Historic Residence Assessment Freeze Law; definitions. This Section and Sections 10-45 through 10-85 may be cited as the Historic Residence Assessment Freeze Law. As used in this Section and Sections 10-45 through 10-85:

(a) "Director" means the Director of Natural Resources Historic Preservation.

(b) "Approved county or municipal landmark ordinance" means a county or municipal ordinance approved by the Director.

(c) "Historic building" means an owner-occupied single family residence or an owner-occupied multi-family residence and the tract, lot or parcel upon which it is located, or a building or buildings owned and operated as a cooperative, if:

(1) individually listed on the National Register of Historic Places or the Illinois Register of Historic Places;

(2) individually designated pursuant to an approved county or municipal landmark ordinance; or

(3) within a district listed on the National Register of Historic Places or designated pursuant to an approved county or municipal landmark ordinance, if the Director determines that the building is of historic significance to the district in which it is located.

Historic building does not mean an individual unit of a cooperative.

(d) "Assessment officer" means the chief county assessment officer.

(e) "Certificate of rehabilitation" means the certificate issued by the Director upon the renovation, restoration, preservation or rehabilitation of an historic building under this Code.

(f) "Rehabilitation period" means the period of time necessary to renovate, restore, preserve or rehabilitate an historic building as determined by the Director.

(g) "Standards for rehabilitation" means the Secretary of Interior's standards for rehabilitation as promulgated by the U.S. Department of the Interior.

(h) "Fair cash value" means the fair cash value of the historic building, determined on the basis of the assessment officer's property record card, representing the value of the property prior to the commencement of rehabilitation without consideration of any reduction reflecting value during the rehabilitation work.

(i) "Base year valuation" means the fair cash value of the historic building for the year in which the rehabilitation period begins but prior to the commencement of the rehabilitation and does not include any reduction in value during the rehabilitation work; if the fair cash value of the historic building for the year in which the rehabilitation period begins is reduced because the property is sold or because the property is found to have been overassessed for the year in which the rehabilitation period by the chief county assessment officer, the board of review, or the Property Tax Appeal Board, then the base year valuation shall be the reduced fair cash value.

(j) "Adjustment in value" means the difference for any year between the then current fair cash value and the base year valuation.

(k) "Eight-year valuation period" means the 8 years from the date of the issuance of the certificate of rehabilitation.

(l) "Adjustment valuation period" means the 4 years following the 8 year valuation period.

(m) "Substantial rehabilitation" means interior or exterior rehabilitation work that preserves the historic building in a manner that significantly improves its condition.

(n) "Approved local government" means a local government that has been certified by the Director as:

(1) enforcing appropriate legislation for the designation of historic buildings;

(2) having established an adequate and qualified historic review commission;

(3) maintaining a system for the survey and inventory of historic properties;

(4) providing for adequate public participation in the local historic preservation program; and

(5) maintaining a system for reviewing applications under this Section in accordance with rules and regulations promulgated by the Director.

(o) "Cooperative" means a building or buildings and the tract, lot, or parcel on which the building or buildings are located, if the building or buildings are devoted to residential uses by the owners and fee title to the land and building or buildings is owned by a corporation or other legal entity in which the shareholders or other co-owners each also have a long-term proprietary lease or other long-term arrangement of exclusive possession for a specific unit of occupancy space located within the same building or buildings.

(p) "Owner", in the case of a cooperative, means the Association.

(q) "Association", in the case of a cooperative, means the entity responsible for the administration of a cooperative, which entity may be incorporated or unincorporated, profit or nonprofit.

(r) "Owner-occupied single family residence" means a residence in which the title holder of record (i) holds fee simple ownership and (ii) occupies the property as his, her, or their principal residence.

(s) "Owner-occupied multi-family residence" means residential property comprised of not more than 6 living units in which the title holder of record (i) holds fee simple ownership and (ii) occupies one unit as his, her, or their principal residence. The remaining units may be leased.

The changes made to this Section by this amendatory Act of the 91st General Assembly are declarative of existing law and shall not be construed as a new enactment.

(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)

(35 ILCS 200/10-55)

Sec. 10-55. Application process and application period.

(a) The Director shall receive applications for certificates of rehabilitation in a form and manner provided by him or her by rule. The Director shall promptly notify the assessment officer of receipt of such applications. The rules shall provide that an applicant may request preliminary approval of rehabilitation before the rehabilitation period begins.

(b) The Director shall approve an application for a certificate of rehabilitation when he or she finds that the restoration, preservation or rehabilitation:

(1) involves an historic building;

(2) has a cost, including architectural fees, equal to or greater than 25% of the base year valuation;

(3) (blank) is for a building for which no certificate of rehabilitation has been approved within 4 years after the last year of the adjustment valuation period;

(4) was or will be done in accordance with the standards for rehabilitation; and

(5) was or will be a substantial rehabilitation.

(c) The Director shall determine the length of the rehabilitation period, which shall not exceed 2 years unless the Director finds:

(1) it is economically unfeasible to complete the rehabilitation in that period; or

(2) the magnitude of the project is such that a good faith attempt to complete the rehabilitation in that period would not succeed.

(d) Upon approval of the application, the Director shall issue a certificate of rehabilitation to the applicant and transmit a copy to the assessment officer. The certificate shall identify the rehabilitation period.

(e) If during the 8-year valuation period and the adjustment valuation period, the Director determines, in accordance with the Illinois Administrative Procedure Act, that an historic building for which a certificate of rehabilitation has been issued has not been the subject of repair, renovation, remodeling or improvement in accordance with the standards for rehabilitation, he or she shall revoke the certificate of rehabilitation by written notice to the taxpayer of record and transmit a copy of the revocation to the assessment officer.

(f) If an owner receives a certificate of rehabilitation, that same owner may not reapply for a new certificate of rehabilitation for the same property until 4 years after the last year of the adjustment valuation period.

The provisions in Section 10-40 through 10-85 apply to certified rehabilitation projects for which an application for a certificate of rehabilitation has been filed with the Director within 2 years of the rehabilitation period.

(Source: P.A. 91-357, eff. 7-29-99; 91-806, eff. 1-1-01.)

(35 ILCS 200/10-65 rep.)

Section 10. The Property Tax Code is amended by repealing Section 10-65.