summary
Introduced
02/06/2025
02/06/2025
In Committee
02/06/2025
02/06/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include the costs of demolishing buildings, site preparation, or site improvements of a dilapidated or vacant parcel zoned for residential use or costs of reconstruction, repair, remodeling, or new construction of a single-family residence on a dilapidated or vacant parcel zoned for residential use. Amends the Property Tax Code. Provides that a municipality, upon adoption of an ordinance or resolution by majority vote of its corporate authorities, may order the county clerk to abate, for 20 years, the portion of the taxes levied upon an improved parcel of real property that is attributable to the increase in the current equalized assessed valuation of the parcel over and above the equalized assessed valuation of the parcel immediately before the demolition of the dilapidated structure on the parcel. Provides that "improved parcel of real property" means a parcel where redevelopment project costs have been used by the municipality for the construction of a new single-family residence on a parcel zoned for residential use after demolition or removal of a dilapidated structure from that parcel. Provides that an abatement approved under the provisions shall be extended to all subsequent owners of the improved parcel of real property during the abatement period.
AI Summary
This bill amends the Property Tax Code and Illinois Municipal Code to provide incentives for residential redevelopment in blighted or vacant areas. Specifically, it allows municipalities to offer a 20-year property tax abatement for new single-family home construction on dilapidated or vacant residential parcels. An "improved parcel" is defined as a property where redevelopment project costs have been used to construct a new single-family home after demolishing an existing dilapidated structure. To implement this tax abatement, a municipality must adopt an ordinance by majority vote, and the tax abatement will apply to the increase in the property's equalized assessed valuation compared to its value before demolition. Importantly, the tax abatement will extend to all subsequent owners of the property during the 20-year period. Before adopting the abatement, the municipality must notify each affected taxing district at least 30 days before the public hearing. The bill aims to encourage residential development in areas with underutilized or deteriorating properties by providing a significant financial incentive to homeowners and developers.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1832&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1832.htm |
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