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| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
91_HB3428
LRB9111534SMdv
1 AN ACT to amend the Property Tax Code by changing
2 Sections 10-40, 10-45, and 10-55.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Property Tax Code is amended by changing
6 Sections 10-40, 10-45, and 10-55 as follows:
7 (35 ILCS 200/10-40)
8 Sec. 10-40. Historic Residence Assessment Freeze Law
9 residences; definitions. This Section and Sections 10-45
10 though 10-85 may be cited as the Historic Residence
11 Assessment Freeze Law. As used in this Section and Sections
12 10-45 through 10-85:
13 (a) "Director" means the Director of Historic
14 Preservation.
15 (b) "Approved county or municipal landmark ordinance"
16 means a county or municipal ordinance approved by the
17 Director.
18 (c) "Historic building" means an owner-occupied single
19 family residence or an owner-occupied multi-family residence
20 and the tract, lot or parcel upon which it is located, or a
21 building or buildings owned and operated as a cooperative,
22 if:
23 (1) individually listed on the National Register of
24 Historic Places or the Illinois Register of Historic
25 Places;
26 (2) individually designated pursuant to an approved
27 county or municipal landmark ordinance; or
28 (3) within a district listed on the National
29 Register of Historic Places or designated pursuant to an
30 approved county or municipal landmark ordinance, if the
31 Director determines that the building is of historic
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1 significance to the district in which it is located.
2 Historic building does not mean an individual unit of a
3 cooperative.
4 (d) "Assessment officer" means the chief county
5 assessment officer.
6 (e) "Certificate of rehabilitation" means the
7 certificate issued by the Director upon the renovation,
8 restoration, preservation or rehabilitation of an historic
9 building under this Code.
10 (f) "Rehabilitation period" means the period of time
11 necessary to renovate, restore, preserve or rehabilitate an
12 historic building as determined by the Director.
13 (g) "Standards for rehabilitation" means the Secretary
14 of Interior's standards for rehabilitation as promulgated by
15 the U.S. Department of the Interior.
16 (h) "Fair cash value" means the fair cash value of the
17 historic building, determined on the basis of the assessment
18 officer's property record card, representing the value of the
19 property prior to the commencement of rehabilitation without
20 consideration of any reduction reflecting value during the
21 rehabilitation work.
22 (i) "Base year valuation" means the fair cash value of
23 the historic building for the year in which the
24 rehabilitation period begins but prior to the commencement of
25 the rehabilitation and does not include any reduction in
26 value during the rehabilitation work.
27 (j) "Adjustment in value" means the difference for any
28 year between the then current fair cash value and the base
29 year valuation.
30 (k) "Eight-year valuation period" means the 8 years from
31 the date of the issuance of the certificate of
32 rehabilitation.
33 (l) "Adjustment valuation period" means the 4 years
34 following the 8 year valuation period.
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1 (m) "Substantial rehabilitation" means interior or
2 exterior rehabilitation work that preserves the historic
3 building in a manner that significantly improves its
4 condition.
5 (n) "Approved local government" means a local government
6 that has been certified by the Director as:
7 (1) enforcing appropriate legislation for the
8 designation of historic buildings;
9 (2) having established an adequate and qualified
10 historic review commission;
11 (3) maintaining a system for the survey and
12 inventory of historic properties;
13 (4) providing for adequate public participation in
14 the local historic preservation program; and
15 (5) maintaining a system for reviewing applications
16 under this Section in accordance with rules and
17 regulations promulgated by the Director.
18 (o) "Cooperative" means a building or buildings and the
19 tract, lot, or parcel on which the building or buildings are
20 located, if the building or buildings are devoted to
21 residential uses by the owners and fee title to the land and
22 building or buildings is owned by a corporation or other
23 legal entity in which the shareholders or other co-owners
24 each also have a long-term proprietary lease or other
25 long-term arrangement of exclusive possession for a specific
26 unit of occupancy space located within the same building or
27 buildings.
28 (p) "Owner", in the case of a cooperative, means the
29 Association.
30 (q) "Association", in the case of a cooperative, means
31 the entity responsible for the administration of a
32 cooperative, which entity may be incorporated or
33 unincorporated, profit or nonprofit.
34 (r) "Owner-occupied single family residence" means a
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1 residence in which the title holder of record (i) holds fee
2 simple ownership and (ii) occupies the property as his, her,
3 or their principal residence.
4 (s) "Owner-occupied multi-family residence" means
5 residential property comprised of not more than 6 living
6 units in which the title holder of record (i) holds fee
7 simple ownership and (ii) occupies one unit as his, her, or
8 their principal residence. The remaining units may be
9 leased.
10 The changes made to this Section by this Amendatory Act
11 of the 91st General Assembly are declarative of existing law
12 and shall not be construed as a new enactment.
13 (Source: P.A. 89-675, eff. 8-14-96; 90-114, eff. 1-1-98.)
14 (35 ILCS 200/10-45)
15 Sec. 10-45. Valuation during 8 year valuation period. In
16 furtherance of the policy of encouraging the rehabilitation
17 of historic residences, property certified pursuant to this
18 Historic Residence Assessment Freeze Law shall be eligible
19 for an assessment freeze, as provided in this Section,
20 applicable to the value added by the rehabilitation. For all
21 property upon which the Director has issued a certificate of
22 rehabilitation, the valuation for purposes of assessment
23 shall not exceed the base year valuation for the entire
24 8-year valuation period, unless a taxing district elects,
25 under Section 10-85, that the provisions of this Section
26 shall not apply to taxes that are levied by that taxing
27 district. In the event that election is made, the property
28 shall be valued under Section 9-145 or 9-150 for the purpose
29 of extending taxes of that taxing district. The changes made
30 to this Section by this Amendatory Act of the 91st General
31 Assembly are declarative of existing law and shall not be
32 construed as a new enactment.
33 (Source: P.A. 82-1023; 88-455.)
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1 (35 ILCS 200/10-55)
2 Sec. 10-55. Application process and application period.
3 (a) The Director shall receive applications for
4 certificates of rehabilitation in a form and manner provided
5 by him or her by rule. The Director shall promptly notify the
6 assessment officer of receipt of such applications. The rules
7 shall provide that an applicant may request preliminary
8 approval of rehabilitation before the rehabilitation period
9 begins.
10 (b) The Director shall approve an application for a
11 certificate of rehabilitation when he or she finds that the
12 restoration, preservation or rehabilitation:
13 (1) involves an historic building;
14 (2) has a cost, including architectural fees, equal
15 to or greater than 25% of the base year valuation;
16 (3) is for a building for which no certificate of
17 rehabilitation has been approved within 4 years after the
18 last year of the adjustment valuation period;
19 (4) was or will be done in accordance with the
20 standards for rehabilitation; and
21 (5) was or will be a substantial rehabilitation.
22 (c) The Director shall determine the length of the
23 rehabilitation period, which shall not exceed 2 years unless
24 the Director finds:
25 (1) it is economically unfeasible to complete the
26 rehabilitation in that period; or
27 (2) the magnitude of the project is such that a
28 good faith attempt to complete the rehabilitation in that
29 period would not succeed.
30 (d) Upon approval of the application, the Director shall
31 issue a certificate of rehabilitation to the applicant and
32 transmit a copy to the assessment officer. The certificate
33 shall identify the rehabilitation period.
34 (e) If during the 8-year valuation period and the
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1 adjustment valuation period, the Director determines, in
2 accordance with the Illinois Administrative Procedure Act,
3 that an historic building for which a certificate of
4 rehabilitation has been issued has not been the subject of
5 repair, renovation, remodeling or improvement in accordance
6 with the standards for rehabilitation, he or she shall revoke
7 the certificate of rehabilitation by written notice to the
8 taxpayer of record and transmit a copy of the revocation to
9 the assessment officer.
10 The provisions in Section 10-40 through 10-85 apply to
11 certified rehabilitation projects for which an application
12 for a certificate of rehabilitation has been filed with the
13 Director within 2 years of the rehabilitation period.
14 (Source: P.A. 91-357, eff. 7-29-99.)