SB1379eng 101ST GENERAL ASSEMBLY

SB1379 Engrossed LRB101 05239 HLH 50252 b

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 adding Division 6 to Article 9 as follows:

(35 ILCS 200/Art. 9 Div. 6 heading new)

Division 6. Income-Producing Property

(35 ILCS 200/9-280 new)

Sec. 9-280. Definitions. As used in this Article:

"Income and expense data" means annual reports or documents created in the ordinary course of business documenting income generated from and expenses associated with income-producing property. The term "income and expense data" includes Internal Revenue Service Schedule E or Schedule 8825 tax forms, annual reports, rent rolls, and certified or uncertified annual income and expense statements reflecting revenue and costs attributable to the property for the current and immediately preceding calendar year.

"Income-producing property" means property that is not exclusively owner-occupied property and is owned for the purpose of generating income from the property itself, whether or not that property actually generates income in a particular year, and includes hotels and motels, parking garages and lots, senior and adult care facilities, and self-storage facilities, but does not include:

(1) property with an assessed value of $100,000 or less in the most recent assessment year;

(2) residential property containing 6 or fewer dwelling units;

(3) property assessed as a farm under Section 10-110 of this Code and improvements or dwellings located on farmland; or

(4) property that is assessed by the Department under Article 11 of this Code.

"Owner-occupied property" means property that is occupied by the owner of the property or by a related person or entity, as described in subsection (b) of Section 267 of the Internal Revenue Code.

"Taxpayer" means the person responsible for paying property taxes on the property or his or her designee.

"Property" has the meaning set forth in Section 1-130 of this Code and includes contiguous parcels or property index numbers that comprise one functional property location.

(35 ILCS 200/9-281 new)

Sec. 9-281. Income-producing properties.

(a) In counties with 3,000,000 or more inhabitants, taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before July 1 of each year. If a taxpayer is required to submit income and expense data under this Article, the chief county assessment officer shall notify the taxpayer of that fact along with the deadline for the submission of that data. The chief county assessment officer may extend the time within which taxpayers are required to submit income and expense data under this Section for good cause shown in accordance with rules adopted under this Section.

If federal tax forms are not complete or available for the most recent tax year by the deadline for the submission of income and expense data under this Section, the taxpayer shall submit federal tax forms for the most recent taxable year for which returns have been filed for the property in question and submit current federal tax forms upon their completion and filing with the Internal Revenue Service.

Taxpayers shall certify under oath in a signed attestation that the income and expense data submitted is true, accurate, and complete.

(b) In counties with fewer than 3,000,000 inhabitants, the county board may provide by resolution that taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before March 30 of each year. If a taxpayer is required to submit income and expense data under this Article, the chief county assessment officer shall notify the taxpayer of that fact along with the deadline for the submission of that data. The chief county assessment officer may extend the time within which taxpayers are required to submit income and expense data under this Section for good cause shown in accordance with rules adopted under this Section.

If federal tax forms are not complete or available for the most recent tax year by the deadline for the submission of income and expense data under this Section, the taxpayer shall submit federal tax forms for the most recent taxable year for which returns have been filed for the property in question and submit current federal tax forms upon their completion and filing with the Internal Revenue Service.

Taxpayers shall certify under oath in a signed attestation that the income and expense data submitted is true, accurate, and complete.

(c) The chief county assessment officer of (i) a county with 3,000,000 or more inhabitants or (ii) a county that has adopted by resolution under the provisions of subsection (b) shall establish rules regarding the submission of income and expense data and the administration of this Section in the county. Income and expense data may be submitted in electronic form.

(d) If a taxpayer fails to submit income and expense data as required under this Section, or as required after the adoption of a resolution under this Section, within the time prescribed, or within an extended period as permitted by the chief county assessment officer, the assessor shall send notice to the taxpayer of the failure to comply. If the taxpayer fails to submit the required data within 60 days after such notice is sent, the taxpayer shall pay a penalty to the chief county assessment officer of 0.05% of the prior year's market value, as indicated by the most recent certified assessed value for the property at issue, but in no case shall the taxpayer be obligated to pay more than $100,000 per property.

A taxpayer may contest the penalty and requirement to report income and expense data in a particular year and submit evidence to the chief county assessment officer in support of the contention that income and expense data was not required to be submitted or that the submission of income and expense data complies with this requirement based on available documentation. The chief county assessment officer shall review the taxpayer's submission and determine whether the taxpayer provided sufficient evidence indicating that the taxpayer was not required to report income and expense data or that the submission complies based on available documentation.

If a taxpayer is dissatisfied with a decision of the chief county assessment officer, a taxpayer may request review of that decision. Upon such a request, at least 30 days' notice shall be provided to the taxpayer of a hearing to be conducted by a hearing officer designated by the chief county assessment officer. If a taxpayer is unsuccessful at hearing, the penalty shall bear interest at 0.05% per month.

The State's Attorney of the county in which the property is located shall have power to act on behalf of the people and the chief county assessment officer to initiate or enforce the provisions of this Section, including the power to compel by subpoena the production of taxpayer income and expense data that is required to be produced under this Section.

(e) Penalties and interest collected by the chief county assessment officer under this Section for a taxpayer's failure to timely submit income and expense data shall be collected in the same manner as other fees collected by the chief county assessment officer. Such revenue shall be deposited with the county treasurer in the county general fund of the county in which the property is located, with 75% of the revenue to be used for the benefit of the office of the chief county assessment officer and 25% to be used for the benefit of the county.

(f) Any personal data such as federal identification or social security numbers and income tax forms that are included in income and expense data produced under this Section shall be deemed private information and exempt from disclosure under the Freedom of Information Act. Non-personal income and expense data shall not be subject to disclosure in accordance with the Freedom of Information Act or other applicable law. Nothing in this Section prohibits a chief county assessment officer from disclosing compiled and anonymized income and expense data. Data that is compiled and anonymized shall not indicate individual property characteristics in a manner that reveals the identity of individual properties.

(g) All information received by the chief county assessment officer from income and expense data filed under this Article shall be used only for official purposes. Any person who divulges income and expense data submitted under this Article, other than as permitted in this Article, in accordance with a proper judicial order, or as otherwise provided by law, shall be guilty of a Class B misdemeanor and subject to a fine not to exceed $7,500.

Section 99. Effective date. This Act takes effect upon becoming law.