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91_HB3428eng HB3428 Engrossed 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 9residences; definitions. This Section and Sections 10-45 10 through 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 HB3428 Engrossed -2- LRB9111534SMdv 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. HB3428 Engrossed -3- LRB9111534SMdv 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 HB3428 Engrossed -4- LRB9111534SMdv 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 eliminating from consideration, for assessment purposes, the 21 value added by the rehabilitation and limiting the total 22 valuation to the base year valuation as defined in subsection 23 (i) of Section 10-40. For all property upon which the 24 Director has issued a certificate of rehabilitation, the 25 valuation for purposes of assessment shall not exceed the 26 base year valuation for the entire 8-year valuation period, 27 unless a taxing district elects, under Section 10-85, that 28 the provisions of this Section shall not apply to taxes that 29 are levied by that taxing district. In the event that 30 election is made, the property shall be valued under Section 31 9-145 or 9-150 for the purpose of extending taxes of that 32 taxing district. The changes made to this Section by this 33 Amendatory Act of the 91st General Assembly are declarative HB3428 Engrossed -5- LRB9111534SMdv 1 of existing law and shall not be construed as a new 2 enactment. 3 (Source: P.A. 82-1023; 88-455.) 4 (35 ILCS 200/10-55) 5 Sec. 10-55. Application process and application period. 6 (a) The Director shall receive applications for 7 certificates of rehabilitation in a form and manner provided 8 by him or her by rule. The Director shall promptly notify the 9 assessment officer of receipt of such applications. The rules 10 shall provide that an applicant may request preliminary 11 approval of rehabilitation before the rehabilitation period 12 begins. 13 (b) The Director shall approve an application for a 14 certificate of rehabilitation when he or she finds that the 15 restoration, preservation or rehabilitation: 16 (1) involves an historic building; 17 (2) has a cost, including architectural fees, equal 18 to or greater than 25% of the base year valuation; 19 (3) is for a building for which no certificate of 20 rehabilitation has been approved within 4 years after the 21 last year of the adjustment valuation period; 22 (4) was or will be done in accordance with the 23 standards for rehabilitation; and 24 (5) was or will be a substantial rehabilitation. 25 (c) The Director shall determine the length of the 26 rehabilitation period, which shall not exceed 2 years unless 27 the Director finds: 28 (1) it is economically unfeasible to complete the 29 rehabilitation in that period; or 30 (2) the magnitude of the project is such that a 31 good faith attempt to complete the rehabilitation in that 32 period would not succeed. 33 (d) Upon approval of the application, the Director shall HB3428 Engrossed -6- LRB9111534SMdv 1 issue a certificate of rehabilitation to the applicant and 2 transmit a copy to the assessment officer. The certificate 3 shall identify the rehabilitation period. 4 (e) If during the 8-year valuation period and the 5 adjustment valuation period, the Director determines, in 6 accordance with the Illinois Administrative Procedure Act, 7 that an historic building for which a certificate of 8 rehabilitation has been issued has not been the subject of 9 repair, renovation, remodeling or improvement in accordance 10 with the standards for rehabilitation, he or she shall revoke 11 the certificate of rehabilitation by written notice to the 12 taxpayer of record and transmit a copy of the revocation to 13 the assessment officer. 14 The provisions in Section 10-40 through 10-85 apply to 15 certified rehabilitation projects for which an application 16 for a certificate of rehabilitation has been filed with the 17 Director within 2 years of the rehabilitation period. 18 (Source: P.A. 91-357, eff. 7-29-99.)