HB0257 100TH GENERAL ASSEMBLY

LRB100 04714 HLH 14720 b

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.

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 Section 10-705 as follows:

(35 ILCS 200/10-705 new)

Sec. 10-705. Keystone 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 taxes were collected.

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

"Keystone property" means 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 the following criteria:

(1) the property contains an existing industrial or medical structure consisting of more than 100,000 square feet;

(2) the property is located on a lot, parcel, or tract of land that is more than 5 acres in area;

(3) the industrial or medical structure was originally built more than 30 years prior to the date of the application;

(4) in the case of industrial property, the property has been vacant for a period of more than 5 consecutive years immediately prior to the date of the application;

(5) in the case of medical property, the property became vacant during the 5 years immediately prior to the date of the application or is likely to become vacant no later than December 31 of the calendar year immediately following the year of the application;

(6) for the base year, the portion of the property's property tax liability that is attributable to the municipality is in the top 10% when compared with the municipal property tax liability for all other properties in the municipality for that tax year; and

(7) the property is not located in a tax increment financing district as of the date of the application.

(b) Beginning on July 1, 2017 and ending on July 1, 2029, owners of real property may apply with the municipality in which the property is located to have the property designated as keystone property. If the property meets the criteria for keystone property set forth in subsection (a), then the corporate authorities of the municipality may certify the property as keystone property for the purposes of promoting rehabilitation of vacant property and fostering job creation in the fields of manufacturing, research and development, and healthcare. The certification shall be transmitted to the chief county assessment officer as soon as possible after the property is certified.

(c) Beginning with the first tax year after the property is certified as keystone property and continuing through the twelfth tax year after the property is certified as keystone property, for the purpose of taxation under this Code, the property shall be valued at 33 1/3% of the fair cash value of the land, without regard to buildings, structures, improvements, and other permanent fixtures located on the property. For the first 3 tax years after the property is certified as keystone property, the aggregate tax liability for the property shall be $75,000. That aggregate tax 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 fourth tax year after the property is certified as keystone property and continuing through the twelfth tax year after the property is certified as keystone property, the property's tax liability for each taxing district in which the property is located shall be increased over the tax liability for the preceding year by the percentage increase, if any, in the total equalized assessed value of all property in the taxing district.

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