Illinois General Assembly - Full Text of SB3189
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Full Text of SB3189  102nd General Assembly




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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
5Division 21 to Article 10 as follows:
6    (35 ILCS 200/Art. 10 Div. 21 heading new)
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 for southland reactivation designation during
13which the property was occupied and assessed and had an
14equalized assessed value.
15    "Cook County Land Bank Authority" means the Cook County
16Land Bank Authority created by ordinance of the Cook County
18    "Municipality" means a city, village, or incorporated town
19located in the State.
20    "Participating entity" means any of the following, either
21collectively or individually: the municipality in which the
22property is located; the South Suburban Land Bank and



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1Development Authority; or the Cook County Land Bank
2Development Authority.
3    "Southland reactivation property" means property that:
4        (1) has been designated by the municipality by
5    resolution as a priority tax reactivation parcel, site, or
6    property due to its clear pattern of stagnation and
7    depressed condition or the decline in its assessed
8    valuation;
9        (2) is held by a participating entity; and
10        (3) meets all of the following criteria:
11            (A) the property is zoned for commercial or
12        industrial use;
13            (B) the property has had its past property taxes
14        cleared and is now classified as exempt, or the
15        property has not had a lawful occupant for at least 12
16        months immediately preceding the application for
17        certification as southland reactivation property, as
18        attested to by a supporting affidavit;
19            (C) the sale or transfer of the property,
20        following southland reactivation designation, to a
21        developer would result in investment which would
22        result a higher assessed value;
23            (D) the property will be sold by a participating
24        entity to a buyer of property that has been approved by
25        the corporate authorities of the municipality or to a
26        developer that has been approved by the corporate



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1        authorities of the municipality whose redevelopment of
2        the parcel, site, or property would reverse
3        long-standing divestment in the area, enhance
4        inclusive economic growth, create jobs or career
5        pathways, support equitable recovery of the community,
6        and stabilize the tax base through investments that
7        align with local government plans and priorities;
8            (E) an application for southland reactivation
9        designation is filed with the participating entity and
10        a resolution designating the property as southland
11        reactivation property is passed by the municipality
12        prior to the sale, rehabilitation, or reoccupation;
13            (F) if not for the southland reactivation
14        designation, development or redevelopment of the
15        property would not occur; and
16            (G) the property is located in any of the
17        following Townships in Cook County: Bloom, Bremen,
18        Calumet, Rich, Thornton, or Worth.
19    "South Suburban Land Bank and Development Authority" means
20the South Suburban Land Bank and Development Authority created
21in 2012 by intergovernmental agreement.
22    "Tax year" means the calendar year for which assessed
23value is determined as of January 1 of that year.
24    (b) Within 5 years after the effective date of this
25amendatory Act of the 102nd General Assembly, purchasers of
26real property from any of the participating entities may apply



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1to that entity to have the property certified as southland
2reactivation property if the property meets the criteria for
3southland reactivation property set forth in subsection (a).
4The participating entity has 5 years from the effective date
5of this amendatory Act of the 102nd General Assembly within
6which it may certify the property as southland reactivation
7property for the purposes of promoting rehabilitation of
8abandoned, vacant, or underutilized property to attract and
9enhance economic activities and investment that stabilize,
10restore, and grow the tax base in severely blighted areas
11within Chicago's south suburbs. This certification is
12nonrenewable and shall be transmitted by the municipality, or
13by the participating entity on behalf of the municipality, to
14the chief county assessment officer as soon as possible after
15the property is certified. Southland reactivation designation
16is limited to the original applicant unless expressly approved
17by the corporate authorities of the municipality and the
18property has no change in use.
19    Support by the corporate authorities of the municipality
20for southland reactivation designation shall be considered in
21a lawful public meeting, and impacted taxing districts shall
22receive notification of the agenda item to consider southland
23reactivation of the site not less than 15 days prior to that
25    (c) Beginning with the first tax year after the property
26is certified as southland reactivation property and continuing



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1through the twelfth tax year after the property is certified
2as southland reactivation property, for the purpose of
3taxation under this Code, the property shall be valued at 50%
4of the base year equalized assessed value as established by
5the chief county assessment officer, excluding all years with
6property tax exemptions applied as a result of the
7participating entity's ownership. For the first year after the
8property is certified as southland reactivation property, the
9aggregate property tax liability for the property shall be no
10greater than $100,000 per year. That aggregate property tax
11liability, once collected, shall be distributed to the taxing
12districts in which the property is located according to each
13taxing district's proportionate share of that aggregate
14liability. Beginning with the second tax year after the
15property is certified as southland reactivation property and
16continuing through the twelfth tax year after the property is
17certified as southland reactivation property, the property tax
18liability for the property for each taxing district in which
19the property is located shall be increased over the property
20tax liability for the property for the preceding year by 10%.
21In no event shall the purchaser's annual tax liability
23    (d) No later than March 1 of each year, the municipality or
24the participating entity on behalf of the municipality shall
25certify to the county clerk of the county in which the property
26is located a percentage southland reactivation reduction to be



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1applied to property taxes for that calendar year, as provided
2this Section.
3    (e) The participating entity shall collect the following
4information annually for the pilot program period: the number
5of program applicants; the street address of each certified
6property; the proposed use of certified properties; the amount
7of investment; the number of jobs created as a result of the
8certification; and copies of the certification of each
9southland reactivation site to allow for the evaluation and
10assessment of the effectiveness of southland reactivation
11designation. The participating entity responsible for seeking
12the southland reactivation designation shall present this
13information to the governing body of each taxing district
14affected by a southland reactivation designation on an annual
15basis, and the participating entity shall report the above
16information to any requesting members of the General Assembly
17at the conclusion of the 5-year designation period.
18    (f) Any southland reactivation certification granted under
19this Section shall be void if the property is conveyed to an
20entity or person that is liable for any unpaid, delinquent
21property taxes associated with the property.
22    Section 99. Effective date. This Act takes effect upon
23becoming law.