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Rep. Theresa Mah
Filed: 3/18/2021
| | 10200HB3181ham001 | | LRB102 11488 HLH 23773 a |
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| 1 | | AMENDMENT TO HOUSE BILL 3181
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| 2 | | AMENDMENT NO. ______. Amend House Bill 3181 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 10-260 as follows:
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| 6 | | (35 ILCS 200/10-260)
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| 7 | | Sec. 10-260. Low-income housing. In determining the fair
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| 8 | | cash value of property receiving benefits from the Low-Income |
| 9 | | Housing Tax
Credit authorized by Section 42 of the Internal |
| 10 | | Revenue Code, 26 U.S.C. 42,
emphasis shall be given to the |
| 11 | | income approach, except in those circumstances
where another |
| 12 | | method is clearly more appropriate.
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| 13 | | In counties with more than 3,000,000 inhabitants, to |
| 14 | | determine the fair cash value of any low-income housing |
| 15 | | project that qualifies for the Low-Income Housing Tax Credit |
| 16 | | under Section 42 of the Internal Revenue Code: (i) in |
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| | 10200HB3181ham001 | - 2 - | LRB102 11488 HLH 23773 a |
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| 1 | | assessing any building with 7 or more units, the assessment |
| 2 | | officer must consider the actual or projected net operating |
| 3 | | income attributable to the property, capitalized at rates for |
| 4 | | similarly encumbered Section 42 properties; and (ii) in |
| 5 | | assessing any building with 6 units or less,
the assessment |
| 6 | | officer, after sending out an initial assessment on the |
| 7 | | building, shall,
without appeal, reassess the building |
| 8 | | considering the actual or projected net operating
income |
| 9 | | attributable to the property, capitalized at rates for |
| 10 | | similarly encumbered Section
42 properties. The capitalization |
| 11 | | rate for items (i) and (ii) shall be one that reflects the |
| 12 | | prevailing cost of capital for other types of similarly |
| 13 | | encumbered Section 42 properties in the geographic market in |
| 14 | | which the low-income housing project is located. |
| 15 | | Beginning with the taxable year 2027, all low-income |
| 16 | | housing projects that qualify for
the Low Income Housing Tax |
| 17 | | Credit under Section 42 of the Internal Revenue Code
shall be |
| 18 | | assessed as set forth in item (i) of the preceding paragraph |
| 19 | | regardless of the number of units in the
building. |
| 20 | | All low-income housing projects that seek to be assessed |
| 21 | | in accordance with this Section shall certify to the |
| 22 | | appropriate local assessment officer that the owner or
owners |
| 23 | | qualify for the low-income housing tax credit under Section 42 |
| 24 | | of the Internal
Revenue Code for the property in a form |
| 25 | | prescribed by that assessment officer. |
| 26 | | (Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)".
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