SB3259 98TH GENERAL ASSEMBLY

LRB098 19492 HLH 54667 b

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.

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 18-184.15 as follows:

(35 ILCS 200/18-184.15 new)

Sec. 18-184.15. Abatement for commercial or industrial property.

(a) Notwithstanding any provision of law to the contrary, where there has been a natural disaster within a county, the governing body of that county shall have the authority to make the abatement described in this Section. That governing body may, by ordinance, order the county clerk to abate the taxes levied by each taxing district in the county on any qualified parcel of commercial or industrial property located within the boundaries of the county. An abatement granted under this Section may be maintained for a period of 15 years after the commercial or industrial structure is rebuilt or until there is a change in ownership of the property, whichever occurs first.

(b) The amount of the abatement shall be calculated as follows:

(1) in the first 5 taxable years after the property is rebuilt, the amount of the abatement shall be the total amount of taxes levied against the property by the taxing district for the taxable year, multiplied by the incremental increase in the equalized assessed value of the property;

(2) in the sixth taxable year after the property is rebuilt, the amount of the abatement shall be 91% of the amount described in item (1) for that taxable year;

(3) in the seventh taxable year after the property is rebuilt, the amount of the abatement shall be 82% of the amount described in item (1) for that taxable year;

(4) in the eighth taxable year after the property is rebuilt, the amount of the abatement shall be 73% of the amount described in item (1) for that taxable year;

(5) in the ninth taxable year after the property is rebuilt, the amount of the abatement shall be 64% of the amount described in item (1) for that taxable year;

(6) in the tenth taxable year after the property is rebuilt, the amount of the abatement shall be 55% of the amount described in item (1) for that taxable year;

(7) in the eleventh taxable year after the property is rebuilt, the amount of the abatement shall be 46% of the amount described in item (1) for that taxable year;

(8) in the twelfth taxable year after the property is rebuilt, the amount of the abatement shall be 37% of the amount described in item (1) for that taxable year;

(9) in the thirteenth taxable year after the property is rebuilt, the amount of the abatement shall be 28% of the amount described in item (1) for that taxable year;

(10) in the fourteenth taxable year after the property is rebuilt, the amount of the abatement shall be 19% of the amount described in item (1) for that taxable year; and

(11) in the fifteenth taxable year after the property is rebuilt, the amount of the abatement shall be 10% of the amount described in item (1) for that taxable year.

(c) For the purposes of this Section, the following terms have the following meanings.

"Base year" means the taxable year prior to the taxable year in which the natural disaster occurred.

"Incremental increase in the equalized assessed value of the property" means a fraction in which the numerator is the increase, if any, in the current year's equalized assessed value of the property over the equalized assessed value of the property for the base year that is attributable to rebuilding a commercial or industrial structure on the property after a natural disaster, and the denominator is the current year's equalized assessed value of the rebuilt property.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a commercial or industrial structure affected by flooding, the structure shall not be eligible for this exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. The natural disaster shall be proclaimed as such by the Governor or the President of the United States.

"Qualified parcel of commercial or industrial property" means 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.

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