100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0257

 

Introduced 1/11/2017, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-705 new

    Amends the Property Tax Code. Contains provisions concerning valuation and taxation of keystone property. Provides that keystone property is property that has had a distinguished past and is a prominent property in the municipality but is not of historical significance or landmark status and meets certain criteria. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Section 10-705 as follows:
 
6    (35 ILCS 200/10-705 new)
7    Sec. 10-705. Keystone property.
8    (a) For the purposes of this Section:
9        "Base year" means the last tax year prior to the date
10    of the application during which the property was occupied
11    and assessed and taxes were collected.
12        "Tax year" means the calendar year for which assessed
13    value is determined as of January 1 of that year.
14        "Keystone property" means property that has had a
15    distinguished past and is a prominent property in the
16    municipality but is not of historical significance or
17    landmark status and meets the following criteria:
18            (1) the property contains an existing industrial
19        or medical structure consisting of more than 100,000
20        square feet;
21            (2) the property is located on a lot, parcel, or
22        tract of land that is more than 5 acres in area;
23            (3) the industrial or medical structure was

 

 

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1        originally built more than 30 years prior to the date
2        of the application;
3            (4) in the case of industrial property, the
4        property has been vacant for a period of more than 5
5        consecutive years immediately prior to the date of the
6        application;
7            (5) in the case of medical property, the property
8        became vacant during the 5 years immediately prior to
9        the date of the application or is likely to become
10        vacant no later than December 31 of the calendar year
11        immediately following the year of the application;
12            (6) for the base year, the portion of the
13        property's property tax liability that is attributable
14        to the municipality is in the top 10% when compared
15        with the municipal property tax liability for all other
16        properties in the municipality for that tax year; and
17            (7) the property is not located in a tax increment
18        financing district as of the date of the application.
19    (b) Beginning on July 1, 2017 and ending on July 1, 2029,
20owners of real property may apply with the municipality in
21which the property is located to have the property designated
22as keystone property. If the property meets the criteria for
23keystone property set forth in subsection (a), then the
24corporate authorities of the municipality may certify the
25property as keystone property for the purposes of promoting
26rehabilitation of vacant property and fostering job creation in

 

 

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1the fields of manufacturing, research and development, and
2healthcare. The certification shall be transmitted to the chief
3county assessment officer as soon as possible after the
4property is certified.
5    (c) Beginning with the first tax year after the property is
6certified as keystone property and continuing through the
7twelfth tax year after the property is certified as keystone
8property, for the purpose of taxation under this Code, the
9property shall be valued at 33 1/3% of the fair cash value of
10the land, without regard to buildings, structures,
11improvements, and other permanent fixtures located on the
12property. For the first 3 tax years after the property is
13certified as keystone property, the aggregate tax liability for
14the property shall be $75,000. That aggregate tax liability,
15once collected, shall be distributed to the taxing districts in
16which the property is located according to each taxing
17district's proportionate share of that aggregate liability.
18Beginning with the fourth tax year after the property is
19certified as keystone property and continuing through the
20twelfth tax year after the property is certified as keystone
21property, the property's tax liability for each taxing district
22in which the property is located shall be increased over the
23tax liability for the preceding year by the percentage
24increase, if any, in the total equalized assessed value of all
25property in the taxing district.
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.