Bill Text: IL HB2517 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Creates the Vacancy Fraud Act. Allows a taxing body or representative of a taxing body to file a vacancy fraud complaint with the county board of review if property is receiving vacancy relief and the property owner is not actively attempting to lease, sell, or alter the property. Sets forth factors in determining whether or not vacancy fraud has occurred. Sets forth penalties. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2019-01-08 - Session Sine Die [HB2517 Detail]

Download: Illinois-2017-HB2517-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB2517 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED:
New Act
Creates the Vacancy Fraud Act. Allows a taxing body or representative of a taxing body to file a vacancy fraud complaint with the county board of review if property is receiving vacancy relief and the property owner is not actively attempting to lease, sell, or alter the property. Sets forth factors in determining whether or not vacancy fraud has occurred. Sets forth penalties. Effective immediately.
LRB100 07827 HLH 17895 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB2517 LRB100 07827 HLH 17895 b
AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Vacancy Fraud Act.
Section 5. Public policy. In recognition of the severe
economic circumstances of taxpayers and taxing districts
across the State of Illinois, the General Assembly finds that
abuse exists with respect to the use of property tax relief
enacted by several counties which lowers the assessment of
vacant property. Some owners of vacant properties do not
actively seek tenants, yet continue to receive property tax
relief for the term of the property's vacancy. This practice
has led to neighborhoods blighted with vacant commercial or
industrial properties. The General Assembly finds that this
practice is against public policy, burdens homeowners and
actively operating businesses, and lessens taxing districts'
tax base.
Section 10. Definitions. As used in this Act:
"Vacancy relief" means a decrease in assessed value, a
decrease in market value, or an abatement of taxes by a chief
county assessment officer, a board of review, or a taxing

HB2517 - 2 - LRB100 07827 HLH 17895 b
district under any county or taxing district ordinance,
resolution, or policy granting such a decrease in assessed
value to property that is vacant.
"Vacant property" means property that is receiving vacancy
relief. A property that receives vacancy relief on only a
portion of the property is still considered vacant property.
Section 15. Vacancy fraud complaints.
(a) The board of review of the county in which the property
is located shall have the power to review complaints of vacancy
fraud for vacant properties that have received vacancy relief
for 2 consecutive tax years if the first of those tax years is
no more than 5 years prior to the current tax year.
(b) Any taxing body or representative of any taxing body
alleging that a property owner is not actively attempting to
lease, sell, or alter the vacant property shall file a written
complaint prescribed by the board of review within the
appropriate filing period.
(c) The party alleging vacancy fraud shall file on the
titleholder of record a Notice of Intent to File a Vacancy
Fraud Complaint. The notice shall disclose the common name and
address of the property as well as its property classification
code and permanent index number and shall provide a short
written statement of the nature of the evidence which will be
submitted in support of the allegation of vacancy fraud. Notice
shall be provided by first class mail, postage prepaid, and

HB2517 - 3 - LRB100 07827 HLH 17895 b
shall be mailed to the same address that the vacant property's
property tax bill is mailed.
(d) If a complaint is filed by an attorney on behalf of a
taxpayer, all notices and correspondence from the board shall
be directed to the attorney. The board may require proof of the
attorney's authority to represent the taxpayer. If the attorney
fails to provide proof of authority within the compliance
period granted by the board pursuant to subsection (e), the
board may dismiss the complaint. The Board shall send,
electronically or by mail, notice of the dismissal to the
attorney and taxpayer.
(e) Upon receipt of a written complaint that is timely
filed, the board of review shall docket the complaint. If the
complaint does not comply with the board of review rules
entitling the complainant to a hearing, the board shall send,
electronically or by mail, notification acknowledging receipt
of the complaint. The notification must identify which rules
have not been complied with and provide the complainant with
not less than 10 business days to bring the complaint into
compliance with those rules. If the complainant complies with
the board of review rules either upon the initial filing of a
complaint or within the time as extended by the board of review
for compliance, then the board of review shall send,
electronically or by mail, a notice of hearing and the board
shall hear the complaint and shall issue and send,
electronically or by mail, a decision upon resolution. Except

HB2517 - 4 - LRB100 07827 HLH 17895 b
as otherwise provided, if the complainant has not complied with
the rules within the time as extended by the board of review,
the board shall nonetheless issue and send a decision. The
board of review may adopt rules allowing any party to attend
and participate in a hearing by telephone or electronically.
The party alleging vacancy fraud shall cause a duplicate notice
of the hearing date to be provided to the titleholder of
record.
Section 20. Factors in determining vacancy fraud.
(a) In determining whether the owner of vacant property is
actively attempting to sell, lease, or alter the vacant
property, the board may consider the following factors:
(1) whether there is a sign on the vacant property
advertising that it is for sale or for lease;
(2) whether the vacant property is advertised for sale
or for lease in a newspaper of general circulation where
the vacant property is located;
(3) whether the vacant property is advertised for sale
or for lease on the internet, and whether potential buyers
or tenants are reasonably able to access the internet
listing;
(4) whether the owner of the vacant property has
contracted for the services of an Illinois licensed real
estate professional for the purpose of selling or leasing
the vacant property;

HB2517 - 5 - LRB100 07827 HLH 17895 b
(5) whether any advertised sale price or advertised
rental price is at a reasonable market level;
(6) whether a contract for sale or lease is pending;
(7) whether the vacant property is subsequently sold or
leased, and the amount of time that passed from the
original vacancy to the sale or lease date;
(8) whether the owner has applied for and received
demolition or construction permits for the vacant
property;
(9) whether the owner has responded to inquiries to
lease or sell the property, and
(10) any other factors the board deems necessary to
determine if the owner of any vacant property is actively
attempting to lease, sell, or alter the vacant property.
(b) For purposes of paragraphs (1), (2), and (3) of
subsection (a), any signs, newspaper advertisements, or
internet advertisements shall contain a phone number. If the
phone number does not connect to a person who can facilitate
the purchase or lease of the vacant property, the board of
review may disregard that the sign, newspaper advertisement, or
internet advertisement.
Section 25. Penalties.
(a) Before assessing any penalties, the board of review
shall give notice to the assessor or chief county assessment
officer who certified the vacancy relief and give the assessor

HB2517 - 6 - LRB100 07827 HLH 17895 b
or chief county assessment officer an opportunity to be heard
thereon.
(b) Upon determination that an owner of vacant property is
not actively attempting to sell, lease, or alter the vacant
property, the board of review and chief county assessment
officer may do any of the following:
(1) prohibit the vacant property from receiving any
vacancy relief until it is subsequently sold or leased;
(2) require the payment of 3 times the amount of back
taxes owed for any vacancy relief the vacant property
received while the owner of the vacant property was not
actively attempting to sell, lease, or alter the vacant
property;
(3) require the payment of interest on any back taxes
sought under paragraph (2); any interest imposed shall not
exceed 10% per annum; and
(4) in the case of a property owner who has been
penalized under this Section 2 times or more within a
5-year period, impose a penalty not to exceed 25% of the
amount of back taxes sought under paragraph (2).
(c) The unpaid taxes shall be paid to the appropriate
taxing districts. Interest and penalties shall be paid to the
chief county assessment officer's office to cover the costs
associated with educating the public on the provisions of this
Act.
(d) No penalties shall be assessed until the person to be

HB2517 - 7 - LRB100 07827 HLH 17895 b
affected has been notified and given an opportunity to be
heard.
Section 99. Effective date. This Act takes effect upon
becoming law.