101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3350

 

Introduced 2/14/2020, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
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 by the South Suburban Land Bank and Development Authority, the Cook County Land Bank Development Authority, or both collectively, as a southland reactivation site. Sets forth valuation procedures for southland reactivation property. Provides that, for the first 3 tax years after the property is certified as southland reactivation property, the aggregate tax liability for the property shall be no greater than $100,000 per year. Provides that, beginning with the fourth 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's tax liability shall be increased over the tax liability for the preceding year by 5% or the percentage change in the Consumer Price Index, whichever is less. Effective immediately.


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

 

 

A BILL FOR

 

SB3350LRB101 18504 HLH 67955 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)
7
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 for which taxes were collected.
14    "Cook County Land Bank Authority" means the Cook County
15Land Bank Authority created by ordinance of the Cook County
16Board.
17    "Participating entity" means the South Suburban Land Bank
18and Development Authority, the Cook County Land Bank
19Development Authority, or both collectively.
20    "Southland reactivation property" means property that:
21        (1) has been designated by the municipality by
22    resolution as a priority tax reactivation parcel, site, or

 

 

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1    property due to its clear pattern of stagnation or decline
2    in real estate taxes for 3 of the last 5 years as a result
3    of its depressed condition;
4        (2) is held by a participating entity; and
5        (3) meets the following criteria:
6            (A) the property has been acquired, and is
7        currently held, by a participating entity for purposes
8        of stabilizing the tax base and enhancing economic
9        activities that promote sustainable, healthy, and
10        stable communities and align with local government
11        plans and priorities;
12            (B) the property has had its past property and ad
13        valorem taxes cleared and is now classified as exempt;
14            (C) the property is zoned for commercial or
15        industrial use;
16            (D) the property is vacant land or contains empty
17        non-residential property that has been vacant for 12
18        months or more;
19            (E) the property does not have a current, lawful
20        occupant, as attested to by a supporting affidavit;
21            (F) sale or transfer of the property, following
22        southland reactivation designation, to a developer
23        would result in investment which would trigger a new
24        higher equalized assessed valuation;
25            (G) an owner or a person holding, or having held,
26        an interest in or a lien on the property cannot

 

 

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1        purchase the property through the participating
2        entity;
3            (H) reoccupation of abandoned property and
4        subsequent substantial rehabilitation is planned, an
5        application for southland reactivation designation is
6        filed, and a resolution passed by the corporate
7        authorities of the municipality prior to the
8        commencement of reoccupation and rehabilitation;
9            (I) but for the southland reactivation
10        designation, development or redevelopment will not
11        occur; and
12            (J) the property is located in any of the following
13        Townships in Cook County: Bloom, Bremen,Calumet, Rich,
14        Thornton, or Worth.
15    "South Suburban Land Bank and Development Authority" means
16the South Suburban Land Bank and Development Authority created
17in 2012 by an intergovernmental agreement between 3 south
18suburban municipalities, which now serves more than 20
19communities.
20    "Tax year" means the calendar year for which assessed value
21is determined as of January 1 of that year.
22    (b) Southland reactivation designation shall be considered
23at a lawful public meeting of the designating municipality.
24Impacted taxing districts shall receive prior notification of
25the agenda item to consider designation of the site.
26    (c) Within 5 years after the effective date of this

 

 

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1amendatory Act of the 101st General Assembly, purchasers of
2real property from the participating entity may submit an
3application, along with a resolution approved by the respective
4corporate authorities of the municipalities in which the
5property is located, to the participating entity to have the
6property certified as a southland Reactivation property. If the
7property meets the criteria for southland reactivation
8property set forth in subsection (a), then the participating
9entity, has 5 years from the effective date of this amendatory
10Act of the 101st General Assembly within which it may certify
11the property as southland reactivation property for the
12purposes of promoting rehabilitation of vacant and
13underutilized property in order to attract and enhance economic
14activities and investment that stabilize, restore, and grow the
15tax base in severely blighted areas within Chicago's south
16suburbs. This certification is nonrenewable and shall be
17transmitted, by the municipality or the participating entity on
18behalf of the municipality, to the chief county assessment
19officer as soon as possible after the property is certified.
20Southland reactivation designation is limited to the original
21applicant unless expressly approved by the local municipal
22corporate authorities and the property has no change in use.
23    (d) Beginning with the first tax year after the property is
24certified as southland reactivation property and continuing
25through the twelfth tax year after the property is certified as
26southland reactivation property, for the purpose of taxation

 

 

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1under this Code, the property shall be valued at the last known
2equalized assessed value, as established by the chief county
3assessment officer, before the property was exempt. For the
4first 3 tax years after the property is certified as southland
5reactivation property, the aggregate tax liability for the
6property shall be no greater than $100,000 per year. That
7aggregate tax liability, once collected, shall be distributed
8to the taxing districts in which the property is located
9according to each taxing district's proportionate share of that
10aggregate liability. Beginning with the fourth tax year after
11the property is certified as southland reactivation property
12and continuing through the twelfth tax year after the property
13is certified as southland reactivation property, the
14property's tax liability for each taxing district in which the
15property is located shall be increased over the tax liability
16for the preceding year by 5% or the percentage change in the
17Consumer Price Index For All Urban Consumers, as determined by
18the United States Department of Labor, whichever is less. In no
19event shall the purchaser's annual tax liability decrease.
20    (e) No later than March 1 of each year before taxes are
21extended for the prior tax year, the municipality or the
22participating entity on behalf of the municipality, shall
23certify to the county clerk of the county in which the property
24is located a percentage reduction to be applied to property
25taxes to limit the aggregate tax liability for southland
26reactivation property in accordance with this Section.

 

 

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1    (f) The participating entity shall collect annually for the
2pilot program period information about the number of
3applicants, project location, proposed use, investment, job
4creation, and certifications of southland reactivation sites
5to allow for the evaluation and assessment of the effectiveness
6of southland reactivation designation. The participating
7entity shall annually notify units of local government with
8taxing jurisdiction within the 6 eligible townships of the
9participating entity's intent to present to their governing
10board all collected metrics related to southland reactivation
11sites so designated to assess outcomes and desired results and
12report findings to members of the General Assembly at the
13conclusion of the 5-year designation period.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.