100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5685

 

Introduced , by Rep. Tim Butler

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-40
35 ILCS 200/10-55
35 ILCS 200/10-65 rep.

    Amends the Property Tax Code. Makes the following changes in the Historic Residence Assessment Freeze Law: (1) replaces references to the Historic Preservation Agency with the Department of Natural Resources; (2) provides that, if the fair cash value of the historic building is reduced because the property is sold or because the property is found to have been overassessed for the year in which the rehabilitation period by the chief county assessment officer, the board of review, or the Property Tax Appeal Board, then the base year valuation shall be the reduced fair cash value; and (3) provides that, if an owner receives a certificate of rehabilitation, that same owner may not reapply for a new certificate of rehabilitation for the same property until 4 years after the last year of the adjustment valuation period. Repeals a Section concerning receipt of applications by a unit of local government.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5685LRB100 17784 HLH 32963 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 changing
5Sections 10-40 and 10-55 as follows:
 
6    (35 ILCS 200/10-40)
7    Sec. 10-40. Historic Residence Assessment Freeze Law;
8definitions. This Section and Sections 10-45 through 10-85 may
9be cited as the Historic Residence Assessment Freeze Law. As
10used in this Section and Sections 10-45 through 10-85:
11        (a) "Director" means the Director of Natural Resources
12    Historic Preservation.
13        (b) "Approved county or municipal landmark ordinance"
14    means a county or municipal ordinance approved by the
15    Director.
16        (c) "Historic building" means an owner-occupied single
17    family residence or an owner-occupied multi-family
18    residence and the tract, lot or parcel upon which it is
19    located, or a building or buildings owned and operated as a
20    cooperative, if:
21            (1) individually listed on the National Register
22        of Historic Places or the Illinois Register of Historic
23        Places;

 

 

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1            (2) individually designated pursuant to an
2        approved county or municipal landmark ordinance; or
3            (3) within a district listed on the National
4        Register of Historic Places or designated pursuant to
5        an approved county or municipal landmark ordinance, if
6        the Director determines that the building is of
7        historic significance to the district in which it is
8        located.
9    Historic building does not mean an individual unit of a
10    cooperative.
11        (d) "Assessment officer" means the chief county
12    assessment officer.
13        (e) "Certificate of rehabilitation" means the
14    certificate issued by the Director upon the renovation,
15    restoration, preservation or rehabilitation of an historic
16    building under this Code.
17        (f) "Rehabilitation period" means the period of time
18    necessary to renovate, restore, preserve or rehabilitate
19    an historic building as determined by the Director.
20        (g) "Standards for rehabilitation" means the Secretary
21    of Interior's standards for rehabilitation as promulgated
22    by the U.S. Department of the Interior.
23        (h) "Fair cash value" means the fair cash value of the
24    historic building, determined on the basis of the
25    assessment officer's property record card, representing
26    the value of the property prior to the commencement of

 

 

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1    rehabilitation without consideration of any reduction
2    reflecting value during the rehabilitation work.
3        (i) "Base year valuation" means the fair cash value of
4    the historic building for the year in which the
5    rehabilitation period begins but prior to the commencement
6    of the rehabilitation and does not include any reduction in
7    value during the rehabilitation work; if the fair cash
8    value of the historic building for the year in which the
9    rehabilitation period begins is reduced because the
10    property is sold or because the property is found to have
11    been overassessed for the year in which the rehabilitation
12    period by the chief county assessment officer, the board of
13    review, or the Property Tax Appeal Board, then the base
14    year valuation shall be the reduced fair cash value.
15        (j) "Adjustment in value" means the difference for any
16    year between the then current fair cash value and the base
17    year valuation.
18        (k) "Eight-year valuation period" means the 8 years
19    from the date of the issuance of the certificate of
20    rehabilitation.
21        (l) "Adjustment valuation period" means the 4 years
22    following the 8 year valuation period.
23        (m) "Substantial rehabilitation" means interior or
24    exterior rehabilitation work that preserves the historic
25    building in a manner that significantly improves its
26    condition.

 

 

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1        (n) "Approved local government" means a local
2    government that has been certified by the Director as:
3            (1) enforcing appropriate legislation for the
4        designation of historic buildings;
5            (2) having established an adequate and qualified
6        historic review commission;
7            (3) maintaining a system for the survey and
8        inventory of historic properties;
9            (4) providing for adequate public participation in
10        the local historic preservation program; and
11            (5) maintaining a system for reviewing
12        applications under this Section in accordance with
13        rules and regulations promulgated by the Director.
14        (o) "Cooperative" means a building or buildings and the
15    tract, lot, or parcel on which the building or buildings
16    are located, if the building or buildings are devoted to
17    residential uses by the owners and fee title to the land
18    and building or buildings is owned by a corporation or
19    other legal entity in which the shareholders or other
20    co-owners each also have a long-term proprietary lease or
21    other long-term arrangement of exclusive possession for a
22    specific unit of occupancy space located within the same
23    building or buildings.
24        (p) "Owner", in the case of a cooperative, means the
25    Association.
26        (q) "Association", in the case of a cooperative, means

 

 

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1    the entity responsible for the administration of a
2    cooperative, which entity may be incorporated or
3    unincorporated, profit or nonprofit.
4        (r) "Owner-occupied single family residence" means a
5    residence in which the title holder of record (i) holds fee
6    simple ownership and (ii) occupies the property as his,
7    her, or their principal residence.
8        (s) "Owner-occupied multi-family residence" means
9    residential property comprised of not more than 6 living
10    units in which the title holder of record (i) holds fee
11    simple ownership and (ii) occupies one unit as his, her, or
12    their principal residence. The remaining units may be
13    leased.
14    The changes made to this Section by this amendatory Act of
15the 91st General Assembly are declarative of existing law and
16shall not be construed as a new enactment.
17(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
 
18    (35 ILCS 200/10-55)
19    Sec. 10-55. Application process and application period.
20    (a) The Director shall receive applications for
21certificates of rehabilitation in a form and manner provided by
22him or her by rule. The Director shall promptly notify the
23assessment officer of receipt of such applications. The rules
24shall provide that an applicant may request preliminary
25approval of rehabilitation before the rehabilitation period

 

 

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1begins.
2    (b) The Director shall approve an application for a
3certificate of rehabilitation when he or she finds that the
4restoration, preservation or rehabilitation:
5        (1) involves an historic building;
6        (2) has a cost, including architectural fees, equal to
7    or greater than 25% of the base year valuation;
8        (3) (blank) is for a building for which no certificate
9    of rehabilitation has been approved within 4 years after
10    the last year of the adjustment valuation period;
11        (4) was or will be done in accordance with the
12    standards for rehabilitation; and
13        (5) was or will be a substantial rehabilitation.
14    (c) The Director shall determine the length of the
15rehabilitation period, which shall not exceed 2 years unless
16the Director finds:
17        (1) it is economically unfeasible to complete the
18    rehabilitation in that period; or
19        (2) the magnitude of the project is such that a good
20    faith attempt to complete the rehabilitation in that period
21    would not succeed.
22    (d) Upon approval of the application, the Director shall
23issue a certificate of rehabilitation to the applicant and
24transmit a copy to the assessment officer. The certificate
25shall identify the rehabilitation period.
26    (e) If during the 8-year valuation period and the

 

 

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1adjustment valuation period, the Director determines, in
2accordance with the Illinois Administrative Procedure Act,
3that an historic building for which a certificate of
4rehabilitation has been issued has not been the subject of
5repair, renovation, remodeling or improvement in accordance
6with the standards for rehabilitation, he or she shall revoke
7the certificate of rehabilitation by written notice to the
8taxpayer of record and transmit a copy of the revocation to the
9assessment officer.
10    (f) If an owner receives a certificate of rehabilitation,
11that same owner may not reapply for a new certificate of
12rehabilitation for the same property until 4 years after the
13last year of the adjustment valuation period.
14    The provisions in Section 10-40 through 10-85 apply to
15certified rehabilitation projects for which an application for
16a certificate of rehabilitation has been filed with the
17Director within 2 years of the rehabilitation period.
18(Source: P.A. 91-357, eff. 7-29-99; 91-806, eff. 1-1-01.)
 
19    (35 ILCS 200/10-65 rep.)
20    Section 10. The Property Tax Code is amended by repealing
21Section 10-65.