The bill signifies a shift towards increased scrutiny of property owners who may be abusing vacancy-related tax benefits. By requiring property owners to actively seek to lease or sell their vacant properties, the Act aims to mitigate the adverse effects of unproductive real estate on local economies, particularly in struggling commercial corridors within Cook County. This move could potentially revitalize neighborhoods by encouraging more dynamic usage of properties that might otherwise contribute to urban blight through abandonment.
SB0202, known as the Vacancy Fraud Act, aims to regulate the use of vacancy reductions granted to property owners in counties with populations exceeding 3 million. The Act allows for the filing of complaints against owners of vacant properties who have benefited from a decrease in assessed value or tax abatement and are not actively attempting to lease or sell their properties. Starting January 1, 2024, any citizen can file a complaint, leading to an investigation into whether the property owner has engaged in vacancy fraud. The enforced penalties can result in substantial financial liabilities for non-compliant property owners.
Key points of contention surrounding SB0202 revolve around the balance between the rights of property owners and the enforcement of public policy aimed at economic development. Opponents of the bill may argue that it places onerous requirements on property owners, particularly in a sluggish market where selling or leasing properties can be challenging. They may express concerns that the penalties for non-compliance, including back taxes multiplied by three times, could disproportionately impact small business owners and landlords who may not have the resources to engage in constant property marketing activities.
If enacted, the Act will require local governmental bodies to establish processes for complaint hearings, offering property owners a chance to defend their practices. The board of review will consider various factors, such as advertising measures and responsiveness to inquiries about the property, before deducing if vacancy fraud has occurred. The intention is clear: to ensure that economic support intended for active property management does not end up benefiting those who neglect their responsibilities.