Illinois General Assembly - Full Text of SB2178
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB2178  102nd General Assembly

SB2178 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2178

 

Introduced 2/26/2021, 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.


LRB102 11525 HLH 16859 b

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

 

 

A BILL FOR

 

SB2178LRB102 11525 HLH 16859 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

 

 

SB2178- 2 -LRB102 11525 HLH 16859 b

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

 

 

SB2178- 3 -LRB102 11525 HLH 16859 b

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
13        following Townships in Cook County: Bloom,
14        Bremen,Calumet, Rich, 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
21value is 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

 

 

SB2178- 4 -LRB102 11525 HLH 16859 b

1amendatory Act of the 102nd General Assembly, purchasers of
2real property from the participating entity may submit an
3application, along with a resolution approved by the
4respective corporate authorities of the municipalities in
5which the property is located, to the participating entity to
6have the property certified as a southland Reactivation
7property. If the property meets the criteria for southland
8reactivation property set forth in subsection (a), then the
9participating entity, has 5 years from the effective date of
10this amendatory Act of the 102nd General Assembly within which
11it may certify the property as southland reactivation property
12for the purposes of promoting rehabilitation of vacant and
13underutilized property in order to attract and enhance
14economic activities and investment that stabilize, restore,
15and grow the tax base in severely blighted areas within
16Chicago's south suburbs. This certification is nonrenewable
17and shall be transmitted, by the municipality or the
18participating entity on behalf of the municipality, to the
19chief county assessment officer as soon as possible after the
20property is certified. Southland reactivation designation is
21limited to the original applicant unless expressly approved by
22the local municipal corporate authorities and the property has
23no change in use.
24    (d) Beginning with the first tax year after the property
25is certified as southland reactivation property and continuing
26through the twelfth tax year after the property is certified

 

 

SB2178- 5 -LRB102 11525 HLH 16859 b

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

 

 

SB2178- 6 -LRB102 11525 HLH 16859 b

1taxes to limit the aggregate tax liability for southland
2reactivation property in accordance with this Section.
3    (f) The participating entity shall collect annually for
4the pilot program period information about the number of
5applicants, project location, proposed use, investment, job
6creation, and certifications of southland reactivation sites
7to allow for the evaluation and assessment of the
8effectiveness of southland reactivation designation. The
9participating entity shall annually notify units of local
10government with taxing jurisdiction within the 6 eligible
11townships of the participating entity's intent to present to
12their governing board all collected metrics related to
13southland reactivation sites so designated to assess outcomes
14and desired results and report findings to members of the
15General Assembly at the conclusion of the 5-year designation
16period.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.