Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0202 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0202 Introduced 1/31/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED: New Act Creates the Vacancy Fraud Act. Provides that, on or after January 1, 2024, any owner of real property located in a county with 3,000,000 or more inhabitants may file a written vacancy fraud complaint alleging that: (i) certain real property in that county has received a decrease in assessed value, a decrease in market value, or an abatement of taxes because the property is vacant; and (ii) the owner of that vacant property is not actively attempting to sell or lease the property or actively attempting to alter or modify the property to prepare it for sale or lease. Sets forth factors for determining vacancy fraud. Provides that the owner of the vacant property may be subject to the following penalties: (1) the payment of 3 times the amount of back taxes owed for any vacancy reduction the subject property received for the period in which the subject property received the reduction but was found to have engaged vacancy fraud; and (2) the payment of interest on any back taxes. Effective immediately. LRB103 26070 HLH 52425 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0202 Introduced 1/31/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED: New Act New Act Creates the Vacancy Fraud Act. Provides that, on or after January 1, 2024, any owner of real property located in a county with 3,000,000 or more inhabitants may file a written vacancy fraud complaint alleging that: (i) certain real property in that county has received a decrease in assessed value, a decrease in market value, or an abatement of taxes because the property is vacant; and (ii) the owner of that vacant property is not actively attempting to sell or lease the property or actively attempting to alter or modify the property to prepare it for sale or lease. Sets forth factors for determining vacancy fraud. Provides that the owner of the vacant property may be subject to the following penalties: (1) the payment of 3 times the amount of back taxes owed for any vacancy reduction the subject property received for the period in which the subject property received the reduction but was found to have engaged vacancy fraud; and (2) the payment of interest on any back taxes. Effective immediately. LRB103 26070 HLH 52425 b LRB103 26070 HLH 52425 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0202 Introduced 1/31/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Vacancy Fraud Act. Provides that, on or after January 1, 2024, any owner of real property located in a county with 3,000,000 or more inhabitants may file a written vacancy fraud complaint alleging that: (i) certain real property in that county has received a decrease in assessed value, a decrease in market value, or an abatement of taxes because the property is vacant; and (ii) the owner of that vacant property is not actively attempting to sell or lease the property or actively attempting to alter or modify the property to prepare it for sale or lease. Sets forth factors for determining vacancy fraud. Provides that the owner of the vacant property may be subject to the following penalties: (1) the payment of 3 times the amount of back taxes owed for any vacancy reduction the subject property received for the period in which the subject property received the reduction but was found to have engaged vacancy fraud; and (2) the payment of interest on any back taxes. Effective immediately.
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Vacancy Fraud Act.
16	16	6 Section 5. Public policy. Certain commercial properties in
17	17	7 Cook County receive a vacancy reduction because they are
18	18	8 partly or completely vacant. In order to revitalize struggling
19	19	9 commercial corridors and foster economic development in Cook
20	20	10 County commercial corridors, it is imperative that owners of
21	21	11 commercial properties that receive a vacancy reduction attempt
22	22	12 to lease or sell those properties or make the alterations or
23	23	13 modifications necessary to lease or sell those properties.
24	24	14 The General Assembly finds that it is against public
25	25	15 policy for commercial property owners to receive a vacancy
26	26	16 reduction without attempting to lease or sell those properties
27	27	17 or make the modifications or alterations necessary to lease or
28	28	18 sell those properties because it burdens homeowners and
29	29	19 actively operating businesses, lessens the taxing districts'
30	30	20 tax bases, and causes blight in commercial corridors.
31	31	21 Section 10. Definitions. As used in this Act:
32	32	22 "Subject property" means real property located in a county
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0202 Introduced 1/31/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED:
37	37	New Act New Act
38	38	New Act
39	39	Creates the Vacancy Fraud Act. Provides that, on or after January 1, 2024, any owner of real property located in a county with 3,000,000 or more inhabitants may file a written vacancy fraud complaint alleging that: (i) certain real property in that county has received a decrease in assessed value, a decrease in market value, or an abatement of taxes because the property is vacant; and (ii) the owner of that vacant property is not actively attempting to sell or lease the property or actively attempting to alter or modify the property to prepare it for sale or lease. Sets forth factors for determining vacancy fraud. Provides that the owner of the vacant property may be subject to the following penalties: (1) the payment of 3 times the amount of back taxes owed for any vacancy reduction the subject property received for the period in which the subject property received the reduction but was found to have engaged vacancy fraud; and (2) the payment of interest on any back taxes. Effective immediately.
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67	67	1 with 3,000,000 or more inhabitants, or a portion of that
68	68	2 property, that is designated or zoned for commercial or
69	69	3 business use and receives a vacancy reduction. With respect to
70	70	4 real property that is zoned or designated as mixed-use
71	71	5 property, this Act applies only to that portion designated or
72	72	6 zoned for commercial or business use.
73	73	7 "Vacancy reduction" means a decrease in assessed value, a
74	74	8 decrease in market value, or an abatement of taxes by the chief
75	75	9 county assessment officer, a board of review, a county, or a
76	76	10 taxing district, which is permitted by ordinance, resolution,
77	77	11 or policy granting such a decrease in assessed value to
78	78	12 property that is vacant.
79	79	13 Section 15. Vacancy fraud complaints.
80	80	14 (a) The board of review in a county with 3,000,000 or more
81	81	15 inhabitants is authorized to hear vacancy fraud complaints
82	82	16 brought no more than 5 years after the vacancy fraud occurred.
83	83	17 No vacancy fraud complaints may be brought for vacancy
84	84	18 reductions that were granted prior to the effective date of
85	85	19 this Act. If there is no actively installed or operating board
86	86	20 of review, the chief county assessment officer is authorized
87	87	21 to designate a department or official to hear those
88	88	22 complaints. If the chief county assessment officer designates
89	89	23 a department or official to hear complaints because there is
90	90	24 no actively installed or operating board of review, then
91	91	25 references to the board of review in this Act shall mean the
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102	102	1 designated department or official.
103	103	2 (b) Beginning on January 1, 2024, any owner of real
104	104	3 property located in a county with 3,000,000 or more
105	105	4 inhabitants may file a written vacancy fraud complaint with
106	106	5 the appropriately designated board of review within the
107	107	6 applicable filing period set forth in subsection (a) alleging
108	108	7 that the subject property has received a vacancy reduction and
109	109	8 that the owner of the subject property is not actively
110	110	9 attempting to lease, sell, alter, or modify the property to
111	111	10 prepare it for sale or lease. The board of review shall
112	112	11 determine the process by which a vacancy fraud complaint may
113	113	12 be filed.
114	114	13 (c) Only one vacancy fraud complaint shall be considered
115	115	14 and heard by the board of review for each instance a property
116	116	15 received a vacancy reduction. The decision of the board of
117	117	16 review shall be binding on future complaints based on the same
118	118	17 vacancy fraud reduction in the same year. If more than one
119	119	18 vacancy fraud complaint is pending concurrently, those
120	120	19 complaints shall be consolidated.
121	121	20 (d) The party alleging vacancy fraud shall file the
122	122	21 appropriate notice and documents, as prescribed by the board
123	123	22 of review, in the manner determined by the board of review.
124	124	23 Vacancy fraud complaints may be filed by the party alleging
125	125	24 vacancy fraud or an attorney acting on that party's behalf.
126	126	25 (e) Upon receipt of a written complaint that is timely
127	127	26 filed, the board of review shall process the complaint and
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138	138	1 provide the appropriate notice to the property that is the
139	139	2 subject of the complaint. The board of review that will hear
140	140	3 the vacancy fraud complaint shall establish the process by
141	141	4 which notice shall be provided and by which complaints shall
142	142	5 be heard.
143	143	6 Section 20. Factors in determining vacancy fraud.
144	144	7 (a) In determining whether the owner of a subject property
145	145	8 is actively attempting to sell or lease the subject property
146	146	9 or actively attempting to modify or alter the subject property
147	147	10 for sale or lease, the board may consider the following
148	148	11 factors:
149	149	12 (1) whether there is a sign on the subject property
150	150	13 advertising that it is for sale or for lease;
151	151	14 (2) whether the subject property is advertised for
152	152	15 sale or for lease in a newspaper of general circulation
153	153	16 where the property is located;
154	154	17 (3) whether the subject property is advertised for
155	155	18 sale or for lease on the internet, and whether potential
156	156	19 buyers or tenants are reasonably able to access the
157	157	20 internet listing;
158	158	21 (4) whether the owner of the subject property has
159	159	22 contracted for the services of an Illinois licensed real
160	160	23 estate professional for the purpose of selling or leasing
161	161	24 the subject property;
162	162	25 (5) whether any advertised sale price or advertised
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173	173	1 rental price for the subject property is excessive;
174	174	2 (6) whether a contract for sale or lease of the
175	175	3 subject property is pending;
176	176	4 (7) whether the subject property is subsequently sold
177	177	5 or leased and the amount of time that passed from the
178	178	6 original vacancy until the sale or lease date;
179	179	7 (8) whether the owner has applied for and received
180	180	8 demolition or construction permits for the subject
181	181	9 property;
182	182	10 (9) whether the owner has responded to inquiries to
183	183	11 lease or sell the property;
184	184	12 (10) whether the property has been altered or modified
185	185	13 for the purpose of leasing or selling the property;
186	186	14 (11) whether the property owner has attempted to
187	187	15 lease, sell, or alter or modify the subject property but
188	188	16 has not been able to proceed because of the inability to
189	189	17 obtain permits or because court proceedings involving
190	190	18 prior renters have precluded such action; and
191	191	19 (12) any other factors the board deems necessary to
192	192	20 determine if the owner of the subject property is actively
193	193	21 attempting to lease or sell the subject property or
194	194	22 actively attempting to modify or alter the subject
195	195	23 property for sale or lease.
196	196	24 (b) For purposes of paragraphs (1), (2), and (3) of
197	197	25 subsection (a), any signs, newspaper advertisements, or
198	198	26 internet advertisements shall contain valid contact
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209	209	1 information for the owner or agent of the property. If the
210	210	2 contact information does not connect potential tenants or
211	211	3 buyers to a person who can facilitate the purchase or lease of
212	212	4 the subject property, or if the owner or agent does not respond
213	213	5 to the inquiry within 30 days, the signs, newspaper
214	214	6 advertisements, or internet advertisements may be disregarded
215	215	7 in the determination of whether a property owner was actively
216	216	8 attempting to sell or lease the subject property or actively
217	217	9 attempting to modify or alter the subject property for sale or
218	218	10 lease.
219	219	11 Section 25. Penalties.
220	220	12 (a) Before assessing any penalties under this Act, the
221	221	13 board of review shall give notice of the complaint to the chief
222	222	14 county assessment officer who certified the vacancy relief and
223	223	15 give the chief county assessment officer an opportunity to be
224	224	16 heard on the matter.
225	225	17 (b) Upon determining that an owner of a subject property
226	226	18 is not actively attempting to sell or lease the subject
227	227	19 property, or actively attempting to alter or modify the
228	228	20 subject property for sale or lease, the board of review may
229	229	21 direct the chief county assessment officer to do any of the
230	230	22 following:
231	231	23 (1) require from the owner of the subject property the
232	232	24 payment of up to 3 times the amount of back taxes owed for
233	233	25 any vacancy reduction the subject property received for
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244	244	1 the period in which the subject property received the
245	245	2 reduction but was found to have engaged in vacancy fraud
246	246	3 as defined in this Act; and
247	247	4 (2) require from the owner of the subject property the
248	248	5 payment of interest of up to 10% per annum on any back
249	249	6 taxes sought under paragraph (1).
250	250	7 (c) The unpaid taxes shall be paid to the appropriate
251	251	8 taxing districts in the manner provided for the payment of
252	252	9 property taxes under the Property Tax Code and allocated to
253	253	10 fund the implementation of this Act. Interest and penalties
254	254	11 shall be paid to the chief county assessment officer's office
255	255	12 to cover the costs associated with educating the public on the
256	256	13 provisions of this Act.
257	257	14 (d) No penalties shall be assessed until the person to be
258	258	15 affected has been notified and given an opportunity to be
259	259	16 heard.
260	260	17 Section 99. Effective date. This Act takes effect upon
261	261	18 becoming law.
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