Full Text of SB0336 98th General Assembly
SB0336enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by adding | 5 | | Section 15-174 as follows: | 6 | | (35 ILCS 200/15-174 new) | 7 | | Sec. 15-174. Community stabilization assessment freeze | 8 | | pilot program. | 9 | | (a) Beginning January 1, 2015 and ending June 30, 2029, the | 10 | | chief county assessment officer of any county may reduce the | 11 | | assessed value of improvements to residential real property in | 12 | | accordance with subsection (b) for 10 taxable years after the | 13 | | improvements are put in service, if and only if all of the | 14 | | following factors have been met: | 15 | | (1) the improvements are residential; | 16 | | (2) the parcel was purchased or otherwise conveyed to | 17 | | the taxpayer after January 1 of the taxable year and that | 18 | | conveyance was not a tax sale as required under the | 19 | | Property Tax Code; | 20 | | (3) the parcel is located in a targeted area; | 21 | | (4) for single family homes, the taxpayer occupies the | 22 | | improvements on the parcel as his or her primary residence; | 23 | | for residences of one to 6 units that will not be |
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| 1 | | owner-occupied, the taxpayer replaces 2 primary building | 2 | | systems as outlined in this Section; | 3 | | (5) the transfer from the holder of the prior mortgage | 4 | | to the taxpayer was an arm's length transaction, in that | 5 | | the taxpayer has no legal relationship to the holder of the | 6 | | prior mortgage; | 7 | | (6) an existing residential dwelling structure of no | 8 | | more than 6 units on the parcel was unoccupied at the time | 9 | | of conveyance for a minimum of 6 months, or the parcel was | 10 | | ordered by a court of competent jurisdiction to be | 11 | | deconverted in accordance with the provisions governing | 12 | | distressed condominiums as provided in the Condominium | 13 | | Property Act; | 14 | | (7) the parcel is clear of unreleased liens and has no | 15 | | outstanding tax liabilities attached against it; and | 16 | | (8) the purchase price did not exceed the Federal | 17 | | Housing Administration's loan limits then in place for the | 18 | | area in which the improvement is located. | 19 | | To be eligible for the benefit
conferred by this Section, | 20 | | residential units must (i) meet local building codes, or if | 21 | | there are no local building codes, Housing Quality Standards, | 22 | | as determined by the U.S. Department of Housing and Urban | 23 | | Development from time to time and (ii) be owner-occupied or in | 24 | | need of substantial rehabilitation. "Substantial | 25 | | rehabilitation" means, at a minimum, compliance with local | 26 | | building codes and the replacement or renovation of at least 2
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| 1 | | primary building systems. Although the cost of each primary | 2 | | building system may vary, the combined expenditure for making | 3 | | the building compliant with local codes and replacing primary | 4 | | building systems must be at least $5 per square foot, adjusted | 5 | | by the Consumer Price Index for All Urban Consumers, as | 6 | | published annually by the U.S. Department of Labor. "Primary | 7 | | building systems", together with their related | 8 | | rehabilitations, specifically approved for this program are: | 9 | | (1) Electrical. All electrical work must comply with | 10 | | applicable codes; it may consist of a combination of any of | 11 | | the following alternatives: | 12 | | (A) installing individual equipment and appliance | 13 | | branch circuits as required by code (the minimum being | 14 | | a kitchen appliance branch circuit); | 15 | | (B) installing a new emergency service, including | 16 | | emergency lighting with all associated conduits and
| 17 | | wiring; | 18 | | (C) rewiring all existing feeder conduits ("home | 19 | | runs") from the main switchgear to apartment area
| 20 | | distribution panels; | 21 | | (D) installing new in-wall conduits for | 22 | | receptacles, switches, appliances, equipment, and
| 23 | | fixtures; | 24 | | (E) replacing power wiring for receptacles, | 25 | | switches, appliances, equipment, and fixtures; | 26 | | (F) installing new light fixtures throughout the |
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| 1 | | building including closets and central areas; | 2 | | (G) replacing, adding, or doing work as necessary | 3 | | to bring all receptacles, switches, and other
| 4 | | electrical devices into code compliance; | 5 | | (H) installing a new main service, including | 6 | | conduit, cables into the building, and main disconnect
| 7 | | switch; and | 8 | | (I) installing new distribution panels, including | 9 | | all panel wiring, terminals, circuit breakers, and all
| 10 | | other panel devices. | 11 | | (2) Heating. All heating work must comply with | 12 | | applicable codes; it may consist of a combination of any of | 13 | | the following alternatives: | 14 | | (A) installing a new system to replace one of the | 15 | | following heat distribution systems: (i) piping and | 16 | | heat radiating units, including new main line venting | 17 | | and radiator venting; or (ii) duct work, diffusers, and | 18 | | cold air returns; or (iii) any other type of existing | 19 | | heat distribution and radiation/diffusion components; | 20 | | or | 21 | | (B) installing a new system to replace one of the | 22 | | following heat generating units: (i) hot water/steam | 23 | | boiler; (ii) gas furnace; or (iii) any other type of | 24 | | existing heat generating unit. | 25 | | (3) Plumbing. All plumbing work must comply with | 26 | | applicable codes. Replace all or a part of the in-wall
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| 1 | | supply and waste plumbing; however, main supply risers, | 2 | | waste stacks and vents, and code-conforming waste lines | 3 | | need not be replaced. | 4 | | (4) Roofing. All roofing work must comply with | 5 | | applicable codes; it may consist of either of the following | 6 | | alternatives, separately or in combination: | 7 | | (A) replacing all rotted roof decks and | 8 | | insulation; or | 9 | | (B) replacing or repairing leaking roof membranes
| 10 | | (10% is the suggested minimum replacement of | 11 | | membrane);
restoration of the entire roof is an | 12 | | acceptable substitute for membrane replacement. | 13 | | (5) Exterior doors and windows. Replace the exterior | 14 | | doors and windows. Renovation of ornate entry doors is an | 15 | | acceptable substitute for replacement. | 16 | | (6) Floors, walls, and ceilings. Finishes must be | 17 | | replaced or covered over with new material. Acceptable | 18 | | replacement or covering materials are as follows: | 19 | | (A) floors must have new carpeting, vinyl tile, | 20 | | ceramic, refurbished wood finish, or a similar
| 21 | | substitute; | 22 | | (B) walls must have new drywall, including joint | 23 | | taping and painting; or | 24 | | (C) new ceilings must be either drywall, suspended | 25 | | type, or a similar substitute. | 26 | | (7) Exterior walls. |
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| 1 | | (A) replace loose or crumbling mortar and masonry | 2 | | with new material; | 3 | | (B) replace or paint wall siding and trim as | 4 | | needed; | 5 | | (C) bring porches and balconies to a sound | 6 | | condition; or | 7 | | (D) any combination of (A), (B), and (C). | 8 | | (8) Elevators. Where applicable, at least 4 of the | 9 | | following 7 alternatives must be accomplished: | 10 | | (A) replace or rebuild the machine room controls | 11 | | and refurbish the elevator machine (or equivalent
| 12 | | mechanisms in the case of hydraulic elevators); | 13 | | (B) replace hoistway electro-mechanical items | 14 | | including: ropes, switches, limits, buffers, levelers,
| 15 | | and deflector sheaves (or equivalent mechanisms in the | 16 | | case of hydraulic elevators); | 17 | | (C) replace hoistway wiring; | 18 | | (D) replace door operators and linkage; | 19 | | (E) replace door panels at each opening; | 20 | | (F) replace hall stations, car stations, and | 21 | | signal fixtures; or | 22 | | (G) rebuild the car shell and refinish the | 23 | | interior. | 24 | | (9) Health and safety. | 25 | | (A) install or replace fire suppression systems; | 26 | | (B) install or replace security systems; or |
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| 1 | | (C) environmental remediation of lead-based paint, | 2 | | asbestos, leaking underground storage tanks, or radon. | 3 | | (10) Energy conservation improvements undertaken to | 4 | | limit the amount of solar energy absorbed by a building's | 5 | | roof or to reduce energy use for the property, including | 6 | | any of the following activities: | 7 | | (A) installing or replacing reflective roof | 8 | | coatings (flat roofs); | 9 | | (B) installing or replacing R-38 roof insulation; | 10 | | (C) installing or replacing R-19 perimeter wall | 11 | | insulation; | 12 | | (D) installing or replacing insulated entry doors; | 13 | | (E) installing or replacing Low E, insulated | 14 | | windows; | 15 | | (F) installing or replacing low-flow plumbing | 16 | | fixtures; | 17 | | (G) installing or replacing 90% sealed combustion | 18 | | heating systems; | 19 | | (H) installing or replacing direct exhaust hot | 20 | | water heaters; | 21 | | (I) installing or replacing mechanical ventilation | 22 | | to exterior for kitchens and baths; | 23 | | (J) installing or replacing Energy Star | 24 | | appliances; | 25 | | (K) installing low VOC interior paints on interior | 26 | | finishes; |
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| 1 | | (L) installing or replacing fluorescent lighting | 2 | | in common areas; or | 3 | | (M) installing or replacing grading and | 4 | | landscaping to promote on-site water retention. | 5 | | (b) For the first 7 years after the improvements are placed | 6 | | in service, the assessed value of the improvements shall be | 7 | | reduced by an amount equal to 90% of the difference between the | 8 | | base year assessed value of the improvements and the assessed | 9 | | value of the improvements in the current taxable year. The | 10 | | property will continue to be eligible for the benefits under | 11 | | this Section in the eighth and ninth taxable years after the | 12 | | improvements are placed in service, calculated as follows, if | 13 | | and only if all of the factors in subsection (a) of this | 14 | | Section continue to be met: in the eighth taxable year, the | 15 | | assessed value of the improvements shall be reduced by an | 16 | | amount equal to 65% of the difference between the base year | 17 | | assessed value of the improvements and the assessed value of | 18 | | the improvements in the current taxable year, and in the ninth | 19 | | taxable year, the assessed value of the improvements shall be | 20 | | reduced by an amount equal to 35% of the difference between the | 21 | | base year assessed value of the improvements and the assessed | 22 | | value of the improvements in the current taxable year. The | 23 | | benefit will cease in the tenth taxable year. | 24 | | (c) In order to receive benefits under this Section, in | 25 | | addition to any information required by the chief county | 26 | | assessment officer, the taxpayer must also submit the following |
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| 1 | | information to the chief county assessment officer for review: | 2 | | (1) the owner's name; | 3 | | (2) the postal address and permanent index number of | 4 | | the parcel; | 5 | | (3) a deed or other instrument conveying the parcel to | 6 | | the current owner; | 7 | | (4) evidence that the purchase price is within the | 8 | | Federal Housing Administration's loan limits for the area | 9 | | in which the improvement is located; | 10 | | (5) certification that the parcel was unoccupied at the | 11 | | time of conveyance to the current owner for a minimum of at | 12 | | least 6 months; | 13 | | (6) evidence that the parcel is clear of unreleased | 14 | | liens and has no outstanding tax liabilities attached | 15 | | against it; | 16 | | (7) evidence that the improvements meet local building | 17 | | codes, or if there are no local building codes, Housing | 18 | | Quality Standards, as determined by the U.S. Department of | 19 | | Housing and Urban Development from time to time, which may | 20 | | be shown by a certificate of occupancy issued by the | 21 | | appropriate local government or the certification by a home | 22 | | inspector licensed by the State of Illinois; and | 23 | | (8) any additional information as reasonably required | 24 | | by the chief county assessment officer. | 25 | | (d) The chief county assessment officer shall notify the | 26 | | taxpayer as to whether or not the parcel meets the requirements |
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| 1 | | of this Section. If the parcel does not meet the requirements | 2 | | of this Section, the chief county assessment officer shall | 3 | | provide written notice of any deficiencies to the taxpayer, who | 4 | | will then have 14 days from the date of
notification to provide | 5 | | supplemental information showing compliance with this Section. | 6 | | If the taxpayer does not exercise this right to cure the | 7 | | deficiency, or if the information submitted, in the sole | 8 | | judgment of the chief county assessment officer, is | 9 | | insufficient to meet the requirements of this Section, the
| 10 | | chief county assessment officer shall provide a written | 11 | | explanation of the reasons for denial. A taxpayer may | 12 | | subsequently reapply for the benefit if the deficiencies are | 13 | | cured at a later date, but no later than 2019. The chief county | 14 | | assessment officer may charge a reasonable application fee to | 15 | | offset the administrative expenses associated with the | 16 | | program. | 17 | | (e) The benefit conferred by this Section is limited as | 18 | | follows: | 19 | | (1) The owner is eligible to apply for the benefit | 20 | | conferred by this Section beginning January 1, 2015 through | 21 | | December 31, 2019. If approved, the reduction will be | 22 | | effective for the current taxable year, which will be | 23 | | reflected in the tax bill issued in the following taxable | 24 | | year. | 25 | | (2) The reduction outlined in this Section shall | 26 | | continue for a period of 10 years, and may not be extended |
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| 1 | | or renewed for any additional period. | 2 | | (3) At the completion of the assessment freeze period | 3 | | described here, the entire parcel will be assessed as | 4 | | otherwise provided in this Code. | 5 | | (4) If there is a transfer of ownership during the | 6 | | period of the assessment freeze, then the benefit conferred | 7 | | by this Section shall not apply on or after the date of | 8 | | that transfer unless (i) the property is conveyed by an | 9 | | owner who does not occupy the improvements as a primary | 10 | | residence to an owner who will occupy the improvements as a | 11 | | primary residence and (ii) all requirements of this Section | 12 | | continue to be met. | 13 | | (f) If the taxpayer does not occupy or intend to occupy the | 14 | | residential dwelling as his or her principal residence within a | 15 | | reasonable time, as determined by the chief county assessment | 16 | | officer, the taxpayer must: | 17 | | (1) immediately secure the residential dwelling in | 18 | | accordance with the requirements of this Section; | 19 | | (2) complete sufficient rehabilitation to bring the | 20 | | improvements into compliance with local building codes, | 21 | | including, without limitation, regulations concerning | 22 | | lead-based paint and asbestos remediation; and | 23 | | (3) complete rehabilitation within 18 months of | 24 | | conveyance. | 25 | | (g) For the purposes of this Section, | 26 | | "Base year" means the taxable year prior to the taxable |
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| 1 | | year in which the property is purchased by the eligible | 2 | | homeowner. | 3 | | "Secure" means that: | 4 | | (1) all doors and windows are closed and secured | 5 | | using secure doors, windows without broken or cracked | 6 | | panes, commercial-quality metal security panels filled | 7 | | with
like-kind material as the surrounding wall, or | 8 | | plywood
installed and secured in accordance with local | 9 | | ordinances; at least one building entrance shall be | 10 | | accessible from the
exterior and secured with a door | 11 | | that is locked to allow
access only to authorized | 12 | | persons; | 13 | | (2) all grass and weeds on the vacant residential
| 14 | | property are maintained below 10 inches in height, | 15 | | unless a
local ordinance imposes a lower height; | 16 | | (3) debris, trash, and litter on any portion of the
| 17 | | exterior of the vacant residential property is removed | 18 | | in
compliance with local ordinance; | 19 | | (4) fences, gates, stairs, and steps that lead to | 20 | | the
main entrance of the building are maintained in a
| 21 | | structurally sound and reasonable manner; | 22 | | (5) the property is winterized when appropriate; | 23 | | (6) the exterior of the improvements are | 24 | | reasonably
maintained to ensure the safety of | 25 | | passersby; and | 26 | | (7) vermin and pests are regularly exterminated on |
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| 1 | | the
exterior and interior of the property. | 2 | | "Targeted Area" means a distressed community that | 3 | | meets the geographic, poverty, and unemployment criteria | 4 | | for a distressed community set forth in 12 C.F.R. 1806.200. |
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