Bill Text: IL HB0043 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: 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.

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Introduced) 2019-02-07 - To Property Tax Subcommittee [HB0043 Detail]

Download: Illinois-2019-HB0043-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0043

Introduced , 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.
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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 adding
5Division 21 to Article 10 as follows:
6 (35 ILCS 200/Art. 10 Div. 21 heading new)
7
Division 21. Southland reactivation property
8 (35 ILCS 200/10-800 new)
9 Sec. 10-800. Southland reactivation property.
10 (a) For the purposes of this Section:
11 "Base year" means the last tax year prior to the date of
12the application during which the property was occupied and
13assessed and for which taxes were collected.
14 "Southland reactivation property" means property that:
15 (1) has been designated as a priority tax reactivation
16 parcel, site, or property;
17 (2) is held by the South Suburban Land Bank and
18 Development Authority; and
19 (3) meets the following criteria:
20 (A) the property has been acquired, and is
21 currently held, by the South Suburban Land Bank and
22 Development Authority for purposes of stabilizing the

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1 tax base and enhancing economic activities that
2 promote sustainable, healthy, and stable communities
3 that align with local government plans and priorities;
4 (B) the property has had its past property and ad
5 valorem taxes extinguished;
6 (C) the property is zoned for commercial or
7 industrial use;
8 (D) the property is vacant land or contains empty
9 non-residential property;
10 (E) the property does not have a current, lawful
11 occupant, as attested to by a supporting affidavit;
12 (F) sale or transfer of the property, following
13 southland reactivation designation, to a developer
14 would result in investment which would trigger a new
15 higher equalized assessed valuation; and
16 (G) the property is located in any of the following
17 townships in Cook County: Bloom, Bremen, Calumet,
18 Rich, Thornton, or Worth.
19 "South Suburban Land Bank and Development Authority" means
20the South Suburban Land Bank and Development Authority created
21by an intergovernmental agreement between the Cities of Blue
22Island and Oak Forest and the Village of Park Forest.
23 "Tax year" means the calendar year for which assessed value
24is determined as of January 1 of that year.
25 (b) Within 5 years after the effective date of this
26amendatory Act of the 101st General Assembly, purchasers of

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1real property from the South Suburban Land Bank and Development
2Authority may apply to the South Suburban Land Bank and
3Development Authority to have the property certified as a
4southland reactivation property. If the property meets the
5criteria for southland reactivation property set forth in
6subsection (a), then the South Suburban Land Bank and
7Development Authority, with the consent and concurrence of the
8respective corporate authorities of the municipalities in
9which the property is located, has 5 years from the effective
10date of this amendatory Act of the 101st General Assembly
11within which it may certify the property as southland
12reactivation property for the purposes of promoting
13rehabilitation of vacant and underutilized property in order to
14attract and enhance economic activities and investment that
15stabilize, restore, and grow the tax base in severely blighted
16areas within Chicago's south suburbs. The certification shall
17be transmitted to the chief county assessment officer as soon
18as possible after the property is certified.
19 (c) Beginning with the first tax year after the property is
20certified as southland reactivation property and continuing
21through the twelfth tax year after the property is certified as
22southland reactivation property, for the purpose of taxation
23under this Code, the property shall be valued at 33 1/3% of the
24fair cash value of the land, without regard to buildings,
25structures, improvements, and other permanent fixtures located
26on the property. For the first 3 tax years after the property

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1is certified as southland reactivation property, the aggregate
2tax liability for the property shall be no greater than
3$75,000. That aggregate tax liability, once collected, shall be
4distributed to the taxing districts in which the property is
5located according to each taxing district's proportionate
6share of that aggregate liability. Beginning with the fourth
7tax year after the property is certified as southland
8reactivation property and continuing through the twelfth tax
9year after the property is certified as southland reactivation
10property, the property's tax liability for each taxing district
11in which the property is located shall be increased over the
12tax liability for the preceding year by the percentage
13increase, if any, in the total equalized assessed value of all
14property in the taxing district.
15 (d) No later than March 1 of each year before taxes are
16extended for the prior tax year, the South Suburban Land Bank
17and Development Authority shall certify to the county clerk of
18the county in which the property is located a percentage
19reduction to be applied to property taxes to limit the
20aggregate tax liability on southland reactivation property in
21accordance with this Section.
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