98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3259

 

Introduced 2/14/2014, by Sen. Michael W. Frerichs

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-184.15 new

    Amends the Property Tax Code. Creates an abatement for property that (i) is used exclusively for commercial or industrial purposes and (ii) has been rebuilt following a natural disaster occurring in taxable year 2013 or any taxable year thereafter. 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 18-184.15 as follows:
 
6    (35 ILCS 200/18-184.15 new)
7    Sec. 18-184.15. Abatement for commercial or industrial
8property.
9    (a) Notwithstanding any provision of law to the contrary,
10where there has been a natural disaster within a county, the
11governing body of that county shall have the authority to make
12the abatement described in this Section. That governing body
13may, by ordinance, order the county clerk to abate the taxes
14levied by each taxing district in the county on any qualified
15parcel of commercial or industrial property located within the
16boundaries of the county. An abatement granted under this
17Section may be maintained for a period of 15 years after the
18commercial or industrial structure is rebuilt or until there is
19a change in ownership of the property, whichever occurs first.
20    (b) The amount of the abatement shall be calculated as
21follows:
22        (1) in the first 5 taxable years after the property is
23    rebuilt, the amount of the abatement shall be the total

 

 

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1    amount of taxes levied against the property by the taxing
2    district for the taxable year, multiplied by the
3    incremental increase in the equalized assessed value of the
4    property;
5        (2) in the sixth taxable year after the property is
6    rebuilt, the amount of the abatement shall be 91% of the
7    amount described in item (1) for that taxable year;
8        (3) in the seventh taxable year after the property is
9    rebuilt, the amount of the abatement shall be 82% of the
10    amount described in item (1) for that taxable year;
11        (4) in the eighth taxable year after the property is
12    rebuilt, the amount of the abatement shall be 73% of the
13    amount described in item (1) for that taxable year;
14        (5) in the ninth taxable year after the property is
15    rebuilt, the amount of the abatement shall be 64% of the
16    amount described in item (1) for that taxable year;
17        (6) in the tenth taxable year after the property is
18    rebuilt, the amount of the abatement shall be 55% of the
19    amount described in item (1) for that taxable year;
20        (7) in the eleventh taxable year after the property is
21    rebuilt, the amount of the abatement shall be 46% of the
22    amount described in item (1) for that taxable year;
23        (8) in the twelfth taxable year after the property is
24    rebuilt, the amount of the abatement shall be 37% of the
25    amount described in item (1) for that taxable year;
26        (9) in the thirteenth taxable year after the property

 

 

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1    is rebuilt, the amount of the abatement shall be 28% of the
2    amount described in item (1) for that taxable year;
3        (10) in the fourteenth taxable year after the property
4    is rebuilt, the amount of the abatement shall be 19% of the
5    amount described in item (1) for that taxable year; and
6        (11) in the fifteenth taxable year after the property
7    is rebuilt, the amount of the abatement shall be 10% of the
8    amount described in item (1) for that taxable year.
9    (c) For the purposes of this Section, the following terms
10have the following meanings.
11    "Base year" means the taxable year prior to the taxable
12year in which the natural disaster occurred.
13    "Incremental increase in the equalized assessed value of
14the property" means a fraction in which the numerator is the
15increase, if any, in the current year's equalized assessed
16value of the property over the equalized assessed value of the
17property for the base year that is attributable to rebuilding a
18commercial or industrial structure on the property after a
19natural disaster, and the denominator is the current year's
20equalized assessed value of the rebuilt property.
21    "Natural disaster" means an occurrence of widespread or
22severe damage or loss of property resulting from any
23catastrophic cause including but not limited to fire, flood,
24earthquake, wind, storm, or extended period of severe inclement
25weather. In the case of a commercial or industrial structure
26affected by flooding, the structure shall not be eligible for

 

 

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1this exemption unless it is located within a local jurisdiction
2which is participating in the National Flood Insurance Program.
3The natural disaster shall be proclaimed as such by the
4Governor or the President of the United States.
5    "Qualified parcel of commercial or industrial property"
6means property that (i) is used exclusively for commercial or
7industrial purposes and (ii) has been rebuilt following a
8natural disaster occurring in taxable year 2013 or any taxable
9year thereafter.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.