Bill Text: IL SB0336 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Service Use Tax Act. Makes a technical change concerning stating the tax as a distinct item.

Spectrum: Moderate Partisan Bill (Democrat 39-7)

Status: (Passed) 2014-07-25 - Public Act . . . . . . . . . 98-0789 [SB0336 Detail]

Download: Illinois-2013-SB0336-Chaptered.html

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Public Act 098-0789
SB0336 Enrolled LRB098 04615 HLH 34643 b
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
Section 15-174 as follows:
(35 ILCS 200/15-174 new)
Sec. 15-174. Community stabilization assessment freeze
pilot program.
(a) Beginning January 1, 2015 and ending June 30, 2029, the
chief county assessment officer of any county may reduce the
assessed value of improvements to residential real property in
accordance with subsection (b) for 10 taxable years after the
improvements are put in service, if and only if all of the
following factors have been met:
(1) the improvements are residential;
(2) the parcel was purchased or otherwise conveyed to
the taxpayer after January 1 of the taxable year and that
conveyance was not a tax sale as required under the
Property Tax Code;
(3) the parcel is located in a targeted area;
(4) for single family homes, the taxpayer occupies the
improvements on the parcel as his or her primary residence;
for residences of one to 6 units that will not be

owner-occupied, the taxpayer replaces 2 primary building
systems as outlined in this Section;
(5) the transfer from the holder of the prior mortgage
to the taxpayer was an arm's length transaction, in that
the taxpayer has no legal relationship to the holder of the
prior mortgage;
(6) an existing residential dwelling structure of no
more than 6 units on the parcel was unoccupied at the time
of conveyance for a minimum of 6 months, or the parcel was
ordered by a court of competent jurisdiction to be
deconverted in accordance with the provisions governing
distressed condominiums as provided in the Condominium
Property Act;
(7) the parcel is clear of unreleased liens and has no
outstanding tax liabilities attached against it; and
(8) the purchase price did not exceed the Federal
Housing Administration's loan limits then in place for the
area in which the improvement is located.
To be eligible for the benefit conferred by this Section,
residential units must (i) meet local building codes, or if
there are no local building codes, Housing Quality Standards,
as determined by the U.S. Department of Housing and Urban
Development from time to time and (ii) be owner-occupied or in
need of substantial rehabilitation. "Substantial
rehabilitation" means, at a minimum, compliance with local
building codes and the replacement or renovation of at least 2

primary building systems. Although the cost of each primary
building system may vary, the combined expenditure for making
the building compliant with local codes and replacing primary
building systems must be at least $5 per square foot, adjusted
by the Consumer Price Index for All Urban Consumers, as
published annually by the U.S. Department of Labor. "Primary
building systems", together with their related
rehabilitations, specifically approved for this program are:
(1) Electrical. All electrical work must comply with
applicable codes; it may consist of a combination of any of
the following alternatives:
(A) installing individual equipment and appliance
branch circuits as required by code (the minimum being
a kitchen appliance branch circuit);
(B) installing a new emergency service, including
emergency lighting with all associated conduits and
wiring;
(C) rewiring all existing feeder conduits ("home
runs") from the main switchgear to apartment area
distribution panels;
(D) installing new in-wall conduits for
receptacles, switches, appliances, equipment, and
fixtures;
(E) replacing power wiring for receptacles,
switches, appliances, equipment, and fixtures;
(F) installing new light fixtures throughout the

building including closets and central areas;
(G) replacing, adding, or doing work as necessary
to bring all receptacles, switches, and other
electrical devices into code compliance;
(H) installing a new main service, including
conduit, cables into the building, and main disconnect
switch; and
(I) installing new distribution panels, including
all panel wiring, terminals, circuit breakers, and all
other panel devices.
(2) Heating. All heating work must comply with
applicable codes; it may consist of a combination of any of
the following alternatives:
(A) installing a new system to replace one of the
following heat distribution systems: (i) piping and
heat radiating units, including new main line venting
and radiator venting; or (ii) duct work, diffusers, and
cold air returns; or (iii) any other type of existing
heat distribution and radiation/diffusion components;
or
(B) installing a new system to replace one of the
following heat generating units: (i) hot water/steam
boiler; (ii) gas furnace; or (iii) any other type of
existing heat generating unit.
(3) Plumbing. All plumbing work must comply with
applicable codes. Replace all or a part of the in-wall

supply and waste plumbing; however, main supply risers,
waste stacks and vents, and code-conforming waste lines
need not be replaced.
(4) Roofing. All roofing work must comply with
applicable codes; it may consist of either of the following
alternatives, separately or in combination:
(A) replacing all rotted roof decks and
insulation; or
(B) replacing or repairing leaking roof membranes
(10% is the suggested minimum replacement of
membrane); restoration of the entire roof is an
acceptable substitute for membrane replacement.
(5) Exterior doors and windows. Replace the exterior
doors and windows. Renovation of ornate entry doors is an
acceptable substitute for replacement.
(6) Floors, walls, and ceilings. Finishes must be
replaced or covered over with new material. Acceptable
replacement or covering materials are as follows:
(A) floors must have new carpeting, vinyl tile,
ceramic, refurbished wood finish, or a similar
substitute;
(B) walls must have new drywall, including joint
taping and painting; or
(C) new ceilings must be either drywall, suspended
type, or a similar substitute.
(7) Exterior walls.

(A) replace loose or crumbling mortar and masonry
with new material;
(B) replace or paint wall siding and trim as
needed;
(C) bring porches and balconies to a sound
condition; or
(D) any combination of (A), (B), and (C).
(8) Elevators. Where applicable, at least 4 of the
following 7 alternatives must be accomplished:
(A) replace or rebuild the machine room controls
and refurbish the elevator machine (or equivalent
mechanisms in the case of hydraulic elevators);
(B) replace hoistway electro-mechanical items
including: ropes, switches, limits, buffers, levelers,
and deflector sheaves (or equivalent mechanisms in the
case of hydraulic elevators);
(C) replace hoistway wiring;
(D) replace door operators and linkage;
(E) replace door panels at each opening;
(F) replace hall stations, car stations, and
signal fixtures; or
(G) rebuild the car shell and refinish the
interior.
(9) Health and safety.
(A) install or replace fire suppression systems;
(B) install or replace security systems; or

(C) environmental remediation of lead-based paint,
asbestos, leaking underground storage tanks, or radon.
(10) Energy conservation improvements undertaken to
limit the amount of solar energy absorbed by a building's
roof or to reduce energy use for the property, including
any of the following activities:
(A) installing or replacing reflective roof
coatings (flat roofs);
(B) installing or replacing R-38 roof insulation;
(C) installing or replacing R-19 perimeter wall
insulation;
(D) installing or replacing insulated entry doors;
(E) installing or replacing Low E, insulated
windows;
(F) installing or replacing low-flow plumbing
fixtures;
(G) installing or replacing 90% sealed combustion
heating systems;
(H) installing or replacing direct exhaust hot
water heaters;
(I) installing or replacing mechanical ventilation
to exterior for kitchens and baths;
(J) installing or replacing Energy Star
appliances;
(K) installing low VOC interior paints on interior
finishes;

(L) installing or replacing fluorescent lighting
in common areas; or
(M) installing or replacing grading and
landscaping to promote on-site water retention.
(b) For the first 7 years after the improvements are placed
in service, the assessed value of the improvements shall be
reduced by an amount equal to 90% of the difference between the
base year assessed value of the improvements and the assessed
value of the improvements in the current taxable year. The
property will continue to be eligible for the benefits under
this Section in the eighth and ninth taxable years after the
improvements are placed in service, calculated as follows, if
and only if all of the factors in subsection (a) of this
Section continue to be met: in the eighth taxable year, the
assessed value of the improvements shall be reduced by an
amount equal to 65% of the difference between the base year
assessed value of the improvements and the assessed value of
the improvements in the current taxable year, and in the ninth
taxable year, the assessed value of the improvements shall be
reduced by an amount equal to 35% of the difference between the
base year assessed value of the improvements and the assessed
value of the improvements in the current taxable year. The
benefit will cease in the tenth taxable year.
(c) In order to receive benefits under this Section, in
addition to any information required by the chief county
assessment officer, the taxpayer must also submit the following

information to the chief county assessment officer for review:
(1) the owner's name;
(2) the postal address and permanent index number of
the parcel;
(3) a deed or other instrument conveying the parcel to
the current owner;
(4) evidence that the purchase price is within the
Federal Housing Administration's loan limits for the area
in which the improvement is located;
(5) certification that the parcel was unoccupied at the
time of conveyance to the current owner for a minimum of at
least 6 months;
(6) evidence that the parcel is clear of unreleased
liens and has no outstanding tax liabilities attached
against it;
(7) evidence that the improvements meet local building
codes, or if there are no local building codes, Housing
Quality Standards, as determined by the U.S. Department of
Housing and Urban Development from time to time, which may
be shown by a certificate of occupancy issued by the
appropriate local government or the certification by a home
inspector licensed by the State of Illinois; and
(8) any additional information as reasonably required
by the chief county assessment officer.
(d) The chief county assessment officer shall notify the
taxpayer as to whether or not the parcel meets the requirements

of this Section. If the parcel does not meet the requirements
of this Section, the chief county assessment officer shall
provide written notice of any deficiencies to the taxpayer, who
will then have 14 days from the date of notification to provide
supplemental information showing compliance with this Section.
If the taxpayer does not exercise this right to cure the
deficiency, or if the information submitted, in the sole
judgment of the chief county assessment officer, is
insufficient to meet the requirements of this Section, the
chief county assessment officer shall provide a written
explanation of the reasons for denial. A taxpayer may
subsequently reapply for the benefit if the deficiencies are
cured at a later date, but no later than 2019. The chief county
assessment officer may charge a reasonable application fee to
offset the administrative expenses associated with the
program.
(e) The benefit conferred by this Section is limited as
follows:
(1) The owner is eligible to apply for the benefit
conferred by this Section beginning January 1, 2015 through
December 31, 2019. If approved, the reduction will be
effective for the current taxable year, which will be
reflected in the tax bill issued in the following taxable
year.
(2) The reduction outlined in this Section shall
continue for a period of 10 years, and may not be extended

or renewed for any additional period.
(3) At the completion of the assessment freeze period
described here, the entire parcel will be assessed as
otherwise provided in this Code.
(4) If there is a transfer of ownership during the
period of the assessment freeze, then the benefit conferred
by this Section shall not apply on or after the date of
that transfer unless (i) the property is conveyed by an
owner who does not occupy the improvements as a primary
residence to an owner who will occupy the improvements as a
primary residence and (ii) all requirements of this Section
continue to be met.
(f) If the taxpayer does not occupy or intend to occupy the
residential dwelling as his or her principal residence within a
reasonable time, as determined by the chief county assessment
officer, the taxpayer must:
(1) immediately secure the residential dwelling in
accordance with the requirements of this Section;
(2) complete sufficient rehabilitation to bring the
improvements into compliance with local building codes,
including, without limitation, regulations concerning
lead-based paint and asbestos remediation; and
(3) complete rehabilitation within 18 months of
conveyance.
(g) For the purposes of this Section,
"Base year" means the taxable year prior to the taxable

year in which the property is purchased by the eligible
homeowner.
"Secure" means that:
(1) all doors and windows are closed and secured
using secure doors, windows without broken or cracked
panes, commercial-quality metal security panels filled
with like-kind material as the surrounding wall, or
plywood installed and secured in accordance with local
ordinances; at least one building entrance shall be
accessible from the exterior and secured with a door
that is locked to allow access only to authorized
persons;
(2) all grass and weeds on the vacant residential
property are maintained below 10 inches in height,
unless a local ordinance imposes a lower height;
(3) debris, trash, and litter on any portion of the
exterior of the vacant residential property is removed
in compliance with local ordinance;
(4) fences, gates, stairs, and steps that lead to
the main entrance of the building are maintained in a
structurally sound and reasonable manner;
(5) the property is winterized when appropriate;
(6) the exterior of the improvements are
reasonably maintained to ensure the safety of
passersby; and
(7) vermin and pests are regularly exterminated on

the