Bill Text: IL SB2097 | 2019-2020 | 101st General Assembly | Engrossed

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Bill Title: Reinserts the provisions of the introduced bill with the following changes: (1) removes provisions concerning the redemption period for abandoned or blighted property; (2) in provisions concerning the purchase of delinquent property by the county, provides that the county may take steps to maintain the property, mow the grass or remove nuisance greenery, remove garbage, waste, debris, or other materials, or demolish, repair, or remediate unsafe structures (in the introduced bill, those activities were listed as components of "maintaining the property"); and (3) in provisions concerning sales in error, removes provisions providing that the request to waive amounts owed to a county, city, village, or town must be denied or not acted upon for a period of 90 days, and provides that court may not grant a sale in error for the property if the liens owed to a county, city, village, or town have been released within 60 days of the purchaser's request.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2097 Detail]

Download: Illinois-2019-SB2097-Engrossed.html

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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 changing
Sections 18-165, 21-90, and 22-35 as follows:
(35 ILCS 200/18-165)
Sec. 18-165. Abatement of taxes.
(a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following types
of property:
(1) Commercial and industrial.
(A) The property of any commercial or industrial
firm, including but not limited to the property of (i)
any firm that is used for collecting, separating,
storing, or processing recyclable materials, locating
within the taxing district during the immediately
preceding year from another state, territory, or
country, or having been newly created within this State
during the immediately preceding year, or expanding an
existing facility, or (ii) any firm that is used for
the generation and transmission of electricity

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locating within the taxing district during the
immediately preceding year or expanding its presence
within the taxing district during the immediately
preceding year by construction of a new electric
generating facility that uses natural gas as its fuel,
or any firm that is used for production operations at a
new, expanded, or reopened coal mine within the taxing
district, that has been certified as a High Impact
Business by the Illinois Department of Commerce and
Economic Opportunity. The property of any firm used for
the generation and transmission of electricity shall
include all property of the firm used for transmission
facilities as defined in Section 5.5 of the Illinois
Enterprise Zone Act. The abatement shall not exceed a
period of 10 years and the aggregate amount of abated
taxes for all taxing districts combined shall not
exceed $4,000,000.
(A-5) Any property in the taxing district of a new
electric generating facility, as defined in Section
605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois. The abatement shall not exceed a period of 10
years. The abatement shall be subject to the following
limitations:
(i) if the equalized assessed valuation of the
new electric generating facility is equal to or

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greater than $25,000,000 but less than
$50,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 5% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 20% of the taxing district's
taxes from the new electric generating facility;
(ii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $50,000,000 but less than
$75,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 10% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 35% of the taxing district's
taxes from the new electric generating facility;
(iii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $75,000,000 but less than
$100,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 20% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 50% of the taxing district's
taxes from the new electric generating facility;
(iv) if the equalized assessed valuation of

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the new electric generating facility is equal to or
greater than $100,000,000 but less than
$125,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 30% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(v) if the equalized assessed valuation of the
new electric generating facility is equal to or
greater than $125,000,000 but less than
$150,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 40% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(vi) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $150,000,000, then the abatement may
not exceed (i) over the entire term of the
abatement, 50% of the taxing district's aggregate
taxes from the new electric generating facility
and (ii) in any one year of abatement, 60% of the
taxing district's taxes from the new electric
generating facility.

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The abatement is not effective unless the owner of
the new electric generating facility agrees to repay to
the taxing district all amounts previously abated,
together with interest computed at the rate and in the
manner provided for delinquent taxes, in the event that
the owner of the new electric generating facility
closes the new electric generating facility before the
expiration of the entire term of the abatement.
The authorization of taxing districts to abate
taxes under this subdivision (a)(1)(A-5) expires on
January 1, 2010.
(B) The property of any commercial or industrial
development of at least (i) 500 acres or (ii) 225 acres
in the case of a commercial or industrial development
that applies for and is granted designation as a High
Impact Business under paragraph (F) of item (3) of
subsection (a) of Section 5.5 of the Illinois
Enterprise Zone Act, having been created within the
taxing district. The abatement shall not exceed a
period of 20 years and the aggregate amount of abated
taxes for all taxing districts combined shall not
exceed $12,000,000.
(C) The property of any commercial or industrial
firm currently located in the taxing district that
expands a facility or its number of employees. The
abatement shall not exceed a period of 10 years and the

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aggregate amount of abated taxes for all taxing
districts combined shall not exceed $4,000,000. The
abatement period may be renewed at the option of the
taxing districts.
(2) Horse racing. Any property in the taxing district
which is used for the racing of horses and upon which
capital improvements consisting of expansion, improvement
or replacement of existing facilities have been made since
July 1, 1987. The combined abatements for such property
from all taxing districts in any county shall not exceed
$5,000,000 annually and shall not exceed a period of 10
years.
(3) Auto racing. Any property designed exclusively for
the racing of motor vehicles. Such abatement shall not
exceed a period of 10 years.
(4) Academic or research institute. The property of any
academic or research institute in the taxing district that
(i) is an exempt organization under paragraph (3) of
Section 501(c) of the Internal Revenue Code, (ii) operates
for the benefit of the public by actually and exclusively
performing scientific research and making the results of
the research available to the interested public on a
non-discriminatory basis, and (iii) employs more than 100
employees. An abatement granted under this paragraph shall
be for at least 15 years and the aggregate amount of abated
taxes for all taxing districts combined shall not exceed

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$5,000,000.
(5) Housing for older persons. Any property in the
taxing district that is devoted exclusively to affordable
housing for older households. For purposes of this
paragraph, "older households" means those households (i)
living in housing provided under any State or federal
program that the Department of Human Rights determines is
specifically designed and operated to assist elderly
persons and is solely occupied by persons 55 years of age
or older and (ii) whose annual income does not exceed 80%
of the area gross median income, adjusted for family size,
as such gross income and median income are determined from
time to time by the United States Department of Housing and
Urban Development. The abatement shall not exceed a period
of 15 years, and the aggregate amount of abated taxes for
all taxing districts shall not exceed $3,000,000.
(6) Historical society. For assessment years 1998
through 2018, the property of an historical society
qualifying as an exempt organization under Section
501(c)(3) of the federal Internal Revenue Code.
(7) Recreational facilities. Any property in the
taxing district (i) that is used for a municipal airport,
(ii) that is subject to a leasehold assessment under
Section 9-195 of this Code and (iii) which is sublet from a
park district that is leasing the property from a
municipality, but only if the property is used exclusively

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for recreational facilities or for parking lots used
exclusively for those facilities. The abatement shall not
exceed a period of 10 years.
(8) Relocated corporate headquarters. If approval
occurs within 5 years after the effective date of this
amendatory Act of the 92nd General Assembly, any property
or a portion of any property in a taxing district that is
used by an eligible business for a corporate headquarters
as defined in the Corporate Headquarters Relocation Act.
Instead of an abatement under this paragraph (8), a taxing
district may enter into an agreement with an eligible
business to make annual payments to that eligible business
in an amount not to exceed the property taxes paid directly
or indirectly by that eligible business to the taxing
district and any other taxing districts for premises
occupied pursuant to a written lease and may make those
payments without the need for an annual appropriation. No
school district, however, may enter into an agreement with,
or abate taxes for, an eligible business unless the
municipality in which the corporate headquarters is
located agrees to provide funding to the school district in
an amount equal to the amount abated or paid by the school
district as provided in this paragraph (8). Any abatement
ordered or agreement entered into under this paragraph (8)
may be effective for the entire term specified by the
taxing district, except the term of the abatement or annual

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payments may not exceed 20 years.
(9) United States Military Public/Private Residential
Developments. Each building, structure, or other
improvement designed, financed, constructed, renovated,
managed, operated, or maintained after January 1, 2006
under a "PPV Lease", as set forth under Division 14 of
Article 10, and any such PPV Lease.
(10) Property located in a business corridor that
qualifies for an abatement under Section 18-184.10.
(11) Under Section 11-15.4-25 of the Illinois
Municipal Code, property located within an urban
agricultural area that is used by a qualifying farmer for
processing, growing, raising, or otherwise producing
agricultural products.
(12) Residential property that qualifies for an
abatement under any program adopted by the governing
authority of the taxing district for the purpose of
revitalizing or stabilizing neighborhoods.
(b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate any
portion of its taxes on any property that is located within the
corporate limits of the municipality in accordance with Section
8-3-18 of the Illinois Municipal Code.
(Source: P.A. 100-1133, eff. 1-1-19.)

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(35 ILCS 200/21-90)
Sec. 21-90. Purchase and sale by county; distribution of
proceeds. When any property is delinquent, or is forfeited for
each of 2 or more years, and is offered for sale under any of
the provisions of this Code, the County Board of the County in
which the property is located, in its discretion, may bid, or,
in the case of forfeited property, may apply to purchase it, in
the name of the County as trustee for all taxing districts
having an interest in the property's taxes or special
assessments for the nonpayment of which the property is sold.
The presiding officer of the county board, with the advice and
consent of the Board, may appoint on its behalf some officer or
person to attend such sales and bid or, in the case of
forfeited property, to apply to the county clerk to purchase.
The County shall apply on the bid or purchase the unpaid taxes
and special assessments due upon the property. No cash need be
paid. The County may shall take all steps necessary to acquire
title to the property and may manage and operate the property,
including providing for maintenance activities, mowing of
grass or removal of nuisance greenery, removal of garbage,
waste, debris, or other materials, or the demolition, repair,
or remediation of unsafe structures. When a county, or other
taxing district within the county, is a petitioner for a tax
deed, no filing fee shall be required. When a county or other
taxing district within the county is the petitioner for a tax
deed, one petition may be filed including all parcels that are

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tax delinquent within the county or taxing district, and any
publication made under Section 22-20 of this Code may combine
all such parcels within a single notice. The notice shall list
the street or common address, if known, of the parcels for
informational purposes. The county, as tax creditor and as
trustee for other tax creditors, or other taxing district
within the county, shall not be required to allege and prove
that all taxes and special assessments which become due and
payable after the sale to the county have been paid nor shall
the county be required to pay the subsequently accruing taxes
or special assessments at any time. The county board or its
designee may prohibit the county collector from including the
property in the tax sale of one or more subsequent years. The
lien of taxes and special assessments which become due and
payable after a sale to a county shall merge in the fee title
of the county, or other taxing district within the county, on
the issuance of a deed.
The County may sell or assign the property so acquired, or
the certificate of purchase to it, to any party, including
taxing districts. The proceeds of that sale or assignment, less
all costs of the county incurred in the acquisition,
maintenance, and sale, or assignment of the property, shall be
retained by the county and dedicated to county or
intergovernmental agency efforts to acquire, manage, and
repurpose vacant properties, or distributed to the taxing
districts in proportion to their respective interests therein.

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Under Sections 21-110, 21-115, 21-120 and 21-405, a County
may bid or purchase only in the absence of other bidders.
(Source: P.A. 88-455; 88-535; 89-412, eff. 11-17-95.)
(35 ILCS 200/22-35)
Sec. 22-35. Reimbursement of a county or municipality
before issuance of tax deed. Except in any proceeding in which
the tax purchaser is a county acting as a trustee for taxing
districts as provided in Section 21-90, an order for the
issuance of a tax deed under this Code shall not be entered
affecting the title to or interest in any property in which a
county, city, village or incorporated town has an interest
under the police and welfare power by advancements made from
public funds, until the purchaser or assignee makes
reimbursement to the county, city, village or incorporated town
of the money so advanced or the county, city, village, or town
waives its lien on the property for the money so advanced.
However, in lieu of reimbursement or waiver, the purchaser or
his or her assignee may make application for and the court
shall order that the tax purchase be set aside as a sale in
error. No petition for a sale in error may be brought under
this Section unless the party seeking the sale in error has
submitted a request in writing to the county, city, village, or
town to waive the amounts owed to the county, city, village, or
town. A court may not grant a sale in error for any property
pursuant to this Section if the liens owed to a county, city,

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village, or town have been released within 60 days of the
purchaser's request under this Section. A filing or appearance
fee shall not be required of a county, city, village or
incorporated town seeking to enforce its claim under this
Section in a tax deed proceeding.
(Source: P.A. 98-1162, eff. 6-1-15.)