Enrolled Bill Summary

            House Bill 1448 amends the Property Redevelopment and Tax Abatement Act to allow an eligible municipality to enter into a tax abatement agreement with the owner of a leasehold interest in tax-exempt real property located in a reinvestment zone but not in an improvement project financed by tax increment bonds, to exempt part of the value of the lessee's associated taxable property on the condition that the lessee make specific improvements or repairs to the leased property. Lessee property refers to the leasehold interest, the improvements, and tangible personal property. An agreement period may not exceed 10 years and remains subject to the rights of holders of outstanding municipal bonds.

            A similar but slightly different provision applies to counties. The bill allows an eligible county to enter into an abatement agreement with the owner of leasehold interests in tax-exempt real property or improvements on such property, located in a reinvestment zone, to exempt part of the value of the lessee's associated property. The 10-year limitation and the provision making the agreement conditional on repairs or improvements are unmentioned in the new language, but apply because of existing law that conforms the execution, duration, and terms of a county agreement to the law that governs a municipal agreement.