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Public Act 102-1010


 

Public Act 1010 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-1010
 
SB3189 EnrolledLRB102 21408 HLH 30524 b

    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
Division 21 to Article 10 as follows:
 
    (35 ILCS 200/Art. 10 Div. 21 heading new)
Division 21. Southland reactivation property

 
    (35 ILCS 200/10-800 new)
    Sec. 10-800. Southland reactivation property.
    (a) For the purposes of this Section:
    "Base year" means the last tax year prior to the date of
the application for southland reactivation designation during
which the property was occupied and assessed and had an
equalized assessed value.
    "Cook County Land Bank Authority" means the Cook County
Land Bank Authority created by ordinance of the Cook County
Board.
    "Municipality" means a city, village, or incorporated town
located in the State.
    "Participating entity" means any of the following, either
collectively or individually: the municipality in which the
property is located; the South Suburban Land Bank and
Development Authority; or the Cook County Land Bank
Development Authority.
    "Southland reactivation property" means property that:
        (1) has been designated by the municipality by
    resolution as a priority tax reactivation parcel, site, or
    property due to its clear pattern of stagnation and
    depressed condition or the decline in its assessed
    valuation;
        (2) is held by a participating entity; and
        (3) meets all of the following criteria:
            (A) the property is zoned for commercial or
        industrial use;
            (B) the property has had its past property taxes
        cleared and is now classified as exempt, or the
        property has not had a lawful occupant for at least 12
        months immediately preceding the application for
        certification as southland reactivation property, as
        attested to by a supporting affidavit;
            (C) the sale or transfer of the property,
        following southland reactivation designation, to a
        developer would result in investment which would
        result a higher assessed value;
            (D) the property will be sold by a participating
        entity to a buyer of property that has been approved by
        the corporate authorities of the municipality or to a
        developer that has been approved by the corporate
        authorities of the municipality whose redevelopment of
        the parcel, site, or property would reverse
        long-standing divestment in the area, enhance
        inclusive economic growth, create jobs or career
        pathways, support equitable recovery of the community,
        and stabilize the tax base through investments that
        align with local government plans and priorities;
            (E) an application for southland reactivation
        designation is filed with the participating entity and
        a resolution designating the property as southland
        reactivation property is passed by the municipality
        prior to the sale, rehabilitation, or reoccupation;
            (F) if not for the southland reactivation
        designation, development or redevelopment of the
        property would not occur; and
            (G) the property is located in any of the
        following Townships in Cook County: Bloom, Bremen,
        Calumet, Rich, Thornton, or Worth.
    "South Suburban Land Bank and Development Authority" means
the South Suburban Land Bank and Development Authority created
in 2012 by intergovernmental agreement.
    "Tax year" means the calendar year for which assessed
value is determined as of January 1 of that year.
    (b) Within 5 years after the effective date of this
amendatory Act of the 102nd General Assembly, purchasers of
real property from any of the participating entities may apply
to that entity to have the property certified as southland
reactivation property if the property meets the criteria for
southland reactivation property set forth in subsection (a).
The participating entity has 5 years from the effective date
of this amendatory Act of the 102nd General Assembly within
which it may certify the property as southland reactivation
property for the purposes of promoting rehabilitation of
abandoned, vacant, or underutilized property to attract and
enhance economic activities and investment that stabilize,
restore, and grow the tax base in severely blighted areas
within Chicago's south suburbs. This certification is
nonrenewable and shall be transmitted by the municipality, or
by the participating entity on behalf of the municipality, to
the chief county assessment officer as soon as possible after
the property is certified. Southland reactivation designation
is limited to the original applicant unless expressly approved
by the corporate authorities of the municipality and the
property has no change in use.
    Support by the corporate authorities of the municipality
for southland reactivation designation shall be considered in
a lawful public meeting, and impacted taxing districts shall
receive notification of the agenda item to consider southland
reactivation of the site not less than 15 days prior to that
meeting.
    (c) Beginning with the first 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, for the purpose of
taxation under this Code, the property shall be valued at 50%
of the base year equalized assessed value as established by
the chief county assessment officer, excluding all years with
property tax exemptions applied as a result of the
participating entity's ownership. For the first year after the
property is certified as southland reactivation property, the
aggregate property tax liability for the property shall be no
greater than $100,000 per year. That aggregate property tax
liability, once collected, shall be distributed to the taxing
districts in which the property is located according to each
taxing district's proportionate share of that aggregate
liability. Beginning with the second 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 tax
liability for the property for each taxing district in which
the property is located shall be increased over the property
tax liability for the property for the preceding year by 10%.
In no event shall the purchaser's annual tax liability
decrease.
    (d) No later than March 1 of each year, the municipality or
the participating entity on behalf of the municipality shall
certify to the county clerk of the county in which the property
is located a percentage southland reactivation reduction to be
applied to property taxes for that calendar year, as provided
this Section.
    (e) The participating entity shall collect the following
information annually for the pilot program period: the number
of program applicants; the street address of each certified
property; the proposed use of certified properties; the amount
of investment; the number of jobs created as a result of the
certification; and copies of the certification of each
southland reactivation site to allow for the evaluation and
assessment of the effectiveness of southland reactivation
designation. The participating entity responsible for seeking
the southland reactivation designation shall present this
information to the governing body of each taxing district
affected by a southland reactivation designation on an annual
basis, and the participating entity shall report the above
information to any requesting members of the General Assembly
at the conclusion of the 5-year designation period.
    (f) Any southland reactivation certification granted under
this Section shall be void if the property is conveyed to an
entity or person that is liable for any unpaid, delinquent
property taxes associated with the property.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 5/27/2022