Bill Text: IL HB1842 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that certain property located in Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township may be certified as southland reactivation property. Provides that, 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, the property shall be valued at 50% of the last known equalized assessed value. Sets forth the maximum aggregate tax liability for property that has been certified as southland reactivation property. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB1842 Detail]

Download: Illinois-2021-HB1842-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB1842 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 as southland reactivation property. Provides that, 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, the property shall be valued at 50% of the last known equalized assessed value. Sets forth the maximum aggregate tax liability for property that has been certified as southland reactivation property. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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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
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 had an assessor certified value.
"Tax year" means the calendar year for which assessed
value is determined as of January 1 of that year.
"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 or the Cook County Land Bank
Development Authority, either collectively or individually.
"South Suburban Land Bank and Development Authority" means

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the South Suburban Land Bank and Development Authority created
in 2012 by intergovernmental agreement, which now serves more
than 20 municipalities across the Southland.
"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 clear pattern of stagnation and
depressed condition or decline of assessed valuation;
municipal authority support for southland reactivation
designation will be considered in a lawful public meeting
in which impacted taxing districts receive prior
notification of the agenda item to consider southland
reactivation of site;
(2) is held by a participating entity or a
municipality; and
(3) meets the following criteria:
(A) the property is zoned for commercial or
industrial use;
(B) the property has had its past property and ad
valorem taxes cleared and is now classified as exempt
or the property has not had a lawful occupant for the
past 12 months or more, as attested to by a supporting
affidavit;
(C) sale or transfer of the property, following
southland reactivation designation, to a developer
would result in investment which would trigger a

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higher taxable value;
(D) the property will be sold by a participating
entity as set forth in subparagraph (2) to a buyer of
property or a developer that has been approved by the
municipality whose redevelopment of the parcel, site,
or property would reverse long-standing divestment in
the area, enhance inclusive economic growth, create
jobs or career pathways, support equitable recovery of
the community, and stabilize the tax base through
investments that align with local government plans and
priorities;
(E) an application for southland reactivation
designation is filed and resolution passed by the
municipality prior to the sale, rehabilitation, or
reoccupation;
(F) but-for the Southland Reactivation
designation, development or redevelopment will not
occur; and
(G) the property is located in any of the
following Townships in Cook County: Bloom, Bremen,
Calumet, Rich, Thornton, or Worth.
(b) Within 5 years after the effective date of this
amendatory Act of the 102nd General Assembly, purchasers of
real property from the participating entity may submit an
application along with a resolution approved by the respective
corporate authorities of the municipalities in which the

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property is located to the participating entity to have the
property certified as southland reactivation property. If the
property meets the criteria for southland reactivation
property set forth in this Section, then the participating
entity has 5 years from the effective date of this amendatory
Act of the 102nd General Assembly within which it may certify
the property as southland reactivation property for the
purposes of promoting rehabilitation of abandoned or 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. Southland reactivation designation is
limited to original applicant unless expressly approved by the
municipality and the property has no change in use.
(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 50%
of the last known equalized assessed value as established by
the chief county assessment officer, excluding all years with
property tax exemptions applied as a result of the

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participating entity's or municipality's ownership. For the
first year after the property is certified as southland
reactivation property, the aggregate tax bill liability for
the property shall be no greater than $100,000 per year. That
aggregate tax bill 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 second
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 bill liability for each taxing
district in which the property is located shall be increased
over the tax bill liability for the preceding year by 10%. In
no event shall the purchaser's annual tax liability decrease.
(d) No later than March 1 of each 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 southland reactivation reduction to be
applied to property taxes for that calendar year, as provided
this Section.
(e) The participating entity shall collect the following
information annually for the pilot program period: 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

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effectiveness of southland reactivation designation. The
participating entity responsible for seeking the southland
Reactivation designation shall present this information to the
governing body of each taxing district affected by a southland
reactivation designation on an annual basis and the
participating entities shall report the above information to
any requesting members of the General Assembly at the
conclusion of the 5-year designation period.
(f) Any southland reactivation certification granted under
this Section shall be void if the property is conveyed to an
entity or person that is liable for any unpaid, delinquent
property taxes associated with the property.
Section 99. Effective date. This Act takes effect upon
becoming law.