HB0043 101ST GENERAL ASSEMBLY

LRB101 04103 HLH 49111 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0043

Introduced 1/9/2019, by Rep. Anthony DeLuca

SYNOPSIS AS INTRODUCED:

35 ILCS 200/Art. 10 Div. 21 heading new
35 ILCS 200/10-800 new

Amends the Property Tax Code. Provides that certain property located in Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township may be certified by the South Suburban Land Bank and Development Authority as a southland reactivation site. Provides that southland reactivation property shall be valued at 33 1/3% of the fair cash value of the land, without regard to buildings, structures, improvements, and other permanent fixtures located on the property. Provides that, for the first 3 tax years after the property is certified as southland reactivation property, the aggregate tax liability for the property shall be no greater than $75,000. Provides that, beginning with the fourth 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's tax liability for each taxing district in which the property is located shall be increased over the tax liability for the preceding year by the percentage increase, if any, in the total equalized assessed value of all property in the taxing district.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 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 during which the property was occupied and assessed and for which taxes were collected.

"Southland reactivation property" means property that:

(1) has been designated as a priority tax reactivation parcel, site, or property;

(2) is held by the South Suburban Land Bank and Development Authority; and

(3) meets the following criteria:

(A) the property has been acquired, and is currently held, by the South Suburban Land Bank and Development Authority for purposes of stabilizing the tax base and enhancing economic activities that promote sustainable, healthy, and stable communities that align with local government plans and priorities;

(B) the property has had its past property and ad valorem taxes extinguished;

(C) the property is zoned for commercial or industrial use;

(D) the property is vacant land or contains empty non-residential property;

(E) the property does not have a current, lawful occupant, as attested to by a supporting affidavit;

(F) sale or transfer of the property, following southland reactivation designation, to a developer would result in investment which would trigger a new higher equalized assessed valuation; 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 by an intergovernmental agreement between the Cities of Blue Island and Oak Forest and the Village of Park Forest.

"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 101st General Assembly, purchasers of real property from the South Suburban Land Bank and Development Authority may apply to the South Suburban Land Bank and Development Authority to have the property certified as a southland reactivation property. If the property meets the criteria for southland reactivation property set forth in subsection (a), then the South Suburban Land Bank and Development Authority, with the consent and concurrence of the respective corporate authorities of the municipalities in which the property is located, has 5 years from the effective date of this amendatory Act of the 101st General Assembly within which it may certify the property as southland reactivation property for the purposes of promoting rehabilitation of vacant and underutilized property in order 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. The certification shall be transmitted to the chief county assessment officer as soon as possible after the property is certified.

(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 33 1/3% of the fair cash value of the land, without regard to buildings, structures, improvements, and other permanent fixtures located on the property. For the first 3 tax years after the property is certified as southland reactivation property, the aggregate tax liability for the property shall be no greater than $75,000. That aggregate 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 fourth 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's tax liability for each taxing district in which the property is located shall be increased over the tax liability for the preceding year by the percentage increase, if any, in the total equalized assessed value of all property in the taxing district.

(d) No later than March 1 of each year before taxes are extended for the prior tax year, the South Suburban Land Bank and Development Authority shall certify to the county clerk of the county in which the property is located a percentage reduction to be applied to property taxes to limit the aggregate tax liability on southland reactivation property in accordance with this Section.