101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5839

 

Introduced 11/10/2020, by Rep. Ryan Spain

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-180

    Amends the Property Tax Code. Provides that the abatement for property located in an area of urban decay also applies to newly remodeled single-family or duplex residential dwelling units (currently, only newly constructed single-family or duplex dwelling units). Provides that provisions requiring the abatement to be reduced in 20% increments annually during the last 4 years of the abatement period apply only to abatements granted prior to the effective date.


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

 

 

A BILL FOR

 

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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 changing
5Section 18-180 as follows:
 
6    (35 ILCS 200/18-180)
7    Sec. 18-180. Abatement; urban decay.
8    (a) Except as provided below, a home rule municipality upon
9adoption of an ordinance by majority vote of its governing
10authority, may order the county clerk to abate, for a period
11not to exceed 10 years, any percentage of the taxes levied by
12the municipality and any other taxing district on each parcel
13of property located in an area of urban decay within the
14corporate limits of the municipality and upon which a newly
15constructed or newly remodeled single-family or duplex
16residential dwelling unit is located, except that the total
17abatement for any levy year shall not be in an amount in excess
18of 2% of the taxes extended by all taxing districts on all
19parcels located within the township that contain residential
20dwelling units of 6 units or less. In the case of a newly
21remodeled single-family or duplex residential dwelling unit,
22the amount of the abatement may not exceed the amount of
23property taxes attributable to the improvements, and no

 

 

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1abatement shall be granted with respect to the value of the
2land. An abatement adopted under this Section shall be extended
3to all subsequent owners of an eligible property during the
4abatement period. The ordinance shall provide that the same
5percentage abatement of taxes shall apply to all eligible
6property subject to the abatement ordinance, except that any
7abatement granted for any parcel that is within a redevelopment
8area created under Division 74.4 of Article 11 of the Illinois
9Municipal Code at the time the ordinance is adopted shall not
10exceed the amount of taxes allocable to taxing districts. No
11abatement adopted under this Section shall apply to a parcel of
12property if the owner does not live in the single-family or one
13of the duplex residential units. Before final adoption of an
14abatement ordinance under this Section, the governing
15authority of the home rule municipality shall notify by mail
16each affected taxing district of the pending ordinance. This
17Section does not apply to property annexed by a municipality
18after January 1, 1989. For the purposes of this Section, a zero
19lot line dwelling, such as a townhouse or development, is
20considered a single-family residence.
21    (b) The governing authority of each affected taxing
22district shall within 10 days appoint one member to serve on an
23Abatement Review Board to review the terms and conditions of
24the proposed abatement ordinance. The Board shall be convened
25by the mayor or village president of the municipality
26considering the abatement ordinance. The ordinance shall not be

 

 

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1adopted less than 45 days after the Board is convened. Failure
2to appoint a member to the Board does not affect work of the
3Board. The Board shall report the findings and conclusions to
4the governing authority of the municipality not later than 30
5days after it is convened.
6    (c) Any abatement granted under this Section prior to the
7effective date of this amendatory Act of the 101st General
8Assembly shall be reduced in 20% increments annually during the
9last 4 years of the abatement period for the property.
10    (d) For purposes of this Section:
11        (1) "Area of urban decay" means an area demonstrating
12    conditions of a "blighted area" or "conservation area" as
13    defined by Section 11-74.4-3 of the Illinois Municipal
14    Code, notwithstanding the minimum acreage requirement
15    contained in the definition of a "redevelopment project
16    area" under that Section. Qualifying factors of blight or
17    conservation shall be defined as those present within the
18    year prior to adoption of the ordinance designating the
19    area of urban decay.
20        (2) "Duplex" means a 2 family residence that is not
21    more than 2 stories plus a basement in height and is
22    located on a single parcel of property.
23        (3) "Newly constructed" means constructed and ready
24    for occupancy not earlier than one year before the date the
25    municipality first orders the abatement for the parcel
26    under this Section.

 

 

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1        (4) "Newly remodeled" means that the property contains
2    improvements that were completed not earlier than one year
3    before the date the municipality first orders the abatement
4    for the parcel under this Section.
5(Source: P.A. 87-1189; 88-455.)