HB5540 94TH GENERAL ASSEMBLY

LRB094 18121 BDD 53428 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5540

Introduced 1/27/2006, by Rep. Aaron Schock

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-177 new
65 ILCS 5/Art. 11 Div. 74.7 heading new
65 ILCS 5/11-74.7-1 new
65 ILCS 5/11-74.7-5 new
65 ILCS 5/11-74.7-10 new
65 ILCS 5/11-74.7-15 new
30 ILCS 805/8.30 new

Amends the Property Tax Code and the Illinois Municipal Code. Authorizes corporate authorities of a municipality may designate an area of the municipality as a blighted homestead area. Sets forth the requirements and the procedures for making this designation. Provides that the designation for a blighted homestead area becomes effective at the beginning of the next taxable year after the ordinance is adopted and continues for the next 6 taxable years thereafter. Provides that blighted homestead property is entitled to an annual homestead exemption in an amount equal to the equalized assessed value of the residence in that current taxable year minus the equalized assessed value of the residence during the taxable year in which a municipality designated the property to be a blighted homestead. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

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 15-177 as follows:

(35 ILCS 200/15-177 new)

Sec. 15-177. Blighted homestead area freeze exemption.

(a) As used in this Section:

"Base amount" means the base year equalized assessed value of the residence.

"Base year" means the taxable year in which a municipality designated the property to be a blighted homestead.

"Blighted homestead" means any property that is included within a blighted homestead area created under Division 74.7 of Article 11 of the Illinois Municipal Code.

"Equalized assessed value" means the assessed value as equalized by the Department.

"Taxable year" means the calendar year during which ad valorem property taxes payable in the next succeeding year are levied.

(b) Blighted homestead property is entitled to an annual homestead exemption. The amount of the exemption is the equalized assessed value of the residence in that taxable year minus the base amount.

(c) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

Section 10. The Illinois Municipal Code is amended by adding Division 74.7 to Article 11 as follows:

(65 ILCS 5/Art. 11 Div. 74.7 heading new)

DIVISION 74.7. BLIGHTED HOMESTEAD AREAS

(65 ILCS 5/11-74.7-1 new)

Sec. 11-74.7-1. Designation of blighted homestead areas.

(a) The corporate authorities of a municipality may designate an area of the municipality as a blighted homestead area.

(b) To qualify as a blighted homestead area, an area within the municipality must:

(1) consist of parcels of real property used only for single-family residences;

(2) be contiguous and compact;

(3) be outside any redevelopment project area under Division 74.4 of this Act and be outside any enterprise zone under the Illinois Enterprise Zone Act; and

(4) suffer from blight.

(c) For the purpose of this Section, "blight" means unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions that endanger life or property by fire or other causes, or any combination of those factors, that retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use.

(65 ILCS 5/11-74.7-5 new)

Sec. 11-74.7-5. Procedures for the designation of a blighted homestead area. The corporate authorities must comply with all of the following procedures to designate an area as a blighted homestead area:

(1) The municipality must, by ordinance, set the place and date for a public hearing.

(2) At least 45 days before the date set for the public hearing, the municipality must mail notice of the public hearing to each taxing district of which taxable property is included in the proposed blighted homestead area.

(3) At least 14 days, but no more than 28 days, before the date set for the public hearing, the municipality must mail notice of the public hearing to each person residing in the boundaries of the proposed blighted homestead area.

(4) Before the date of the public hearing, the municipality must publish notice of the public hearing twice, the first notice not to be published more than 30 or less than 10 days before the public hearing. The notice must be published in a newspaper having general circulation in the municipality.

(5) The notice required under items (2), (3), and (4) must:

(A) describe the boundaries of the proposed blighted homestead area;

(B) state the amount of the equalized assessed value of the property within the proposed blighted homestead area according to the last assessment of the property;

(C) contain a statement that all interested persons will be given an opportunity to be heard at the public hearing;

(D) state the time and place of the public hearing; and

(E) contain any other matters that the municipality deems appropriate.

(6) At the public hearing, any interested person or representative of an affected taxing district may be heard orally and may file, with the person conducting the meeting, statements that pertain to the subject matter of the meeting.

(7) Not sooner than 14 days and not later than 90 days after the final adjournment of the public hearing, the corporate authorities must introduce an ordinance to adopt or reject the proposed blighted homestead area.

(8) If the municipality adopts an ordinance to approve a designation of the blighted homestead area, then the municipality must provide written notice of the designation to each each taxing district of which taxable property is included in the proposed blighted homestead area and to the chief county assessment officer, as defined in Section 1-15 of the Property Tax Code.

(65 ILCS 5/11-74.7-10 new)

Sec. 11-74.7-10. Tax treatment of property in a blighted homestead. If a municipality designates a blighted homestead area under Section 11-74.7-5, then each taxable lot, block, tract, or parcel of real property in the blighted homestead area is eligible to receive the blighted homestead freeze exemption under Section 15-177 of the Property Tax Code for the duration of the period of designation.

(65 ILCS 5/11-74.7-15 new)

Sec. 11-74.7-15. Duration of a designation. The designation for a blighted homestead area becomes effective at the beginning of the next taxable year after the ordinance is adopted and continues for the next 6 taxable years thereafter.

Section 90. The State Mandates Act is amended by adding Section 8.30 as follows:

(30 ILCS 805/8.30 new)

Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

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