HB0043ham001 101ST GENERAL ASSEMBLY

Rep. Anthony DeLuca

Filed: 4/9/2019

10100HB0043ham001 LRB101 04103 HLH 59585 a

AMENDMENT TO HOUSE BILL 43

AMENDMENT NO. ______. Amend House Bill 43 by replacing everything after the enacting clause with the following:

"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.

"Cook County Land Bank Authority" means the Cook County Land Bank Authority created by ordinance of the Cook County Board.

"Participating entity" means the South Suburban Land Bank and Development Authority, the Cook County Land Bank Development Authority, or both collectively.

"Southland reactivation property" means property that:

(1) has been designated by the municipality by resolution as a priority tax reactivation parcel, site, or property due to its long-standing economic stagnation;

(2) is held by a participating entity; and

(3) meets the following criteria:

(A) the property has been acquired, and is currently held, by a participating entity 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 to a developer following southland reactivation designation would result in investment that would trigger a new higher equalized assessed valuation;

(G) the property is located in any of the following townships in Cook County: Bloom, Bremen, Calumet, Rich, Thornton, or Worth;

(H) where reoccupation of abandoned property and subsequent substantial rehabilitation is planned, an application for southland reactivation designation is filed and a resolution passed by a municipality prior to the commencement of reoccupation and such rehabilitation; and

(I) but for the southland reactivation designation, development or redevelopment would not occur.

"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 a participating entity may submit an application, along with a resolution approved by the corporate authorities of the municipality or municipalities in which the property is located, to the participating entity 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 participating entity 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. This certification is nonrenewable and shall be transmitted by the municipality or the participating entity on behalf of the municipality 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 as established by the chief county assessment officer. 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 per year. 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. In no event shall the purchaser's annual tax liability decrease based on the computation of the total equalized assessed value of all taxing bodies.

(d) No later than March 1 of each year before taxes are extended for the prior tax year, the municipality or the participating entity on behalf of the municipality 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.

(e) The participating entity shall collect annually for the pilot program period information about the number of applicants, project location, proposed use, investment, job creation, and certifications of southland reactivation sites to allow for the evaluation and assessment of the effectiveness of southland reactivation designation. Each participating entity shall annually present to its governing board all collected metrics related to southland reactivation sites so designated as of the effective date of this amendatory Act of the 101st General Assembly to assess outcomes and desired results and report findings to members of the General Assembly at the conclusion of the 5-year designation period.".