HB3888 102ND GENERAL ASSEMBLY

LRB102 12643 HLH 17982 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3888

Introduced 2/22/2021, by Rep. Debbie Meyers-Martin

SYNOPSIS AS INTRODUCED:

35 ILCS 200/1-50.1 new
35 ILCS 200/9-145
35 ILCS 200/9-155

Amends the Property Tax Code. Provides that, for the 2022 taxable year and thereafter, in all counties, property shall be valued at the lesser of (i) its base year value, compounded annually since the base year by an inflation factor, which shall be the percentage change for the prior calendar year in the Consumer Price Index, but not to exceed 2% of the prior year's value, plus the value of any improvements to the property, and (ii) its full cash value, as defined in Section 1-50, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value. Provides that "base value" means the higher of (i) the amount for which the property was last sold at an arms-length transaction or (ii) the fair cash value of the property as of the date of its last change of ownership. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 changing Sections 9-145 and 9-155 and by adding Section 1-50.1 as follows:

(35 ILCS 200/1-50.1 new)

Sec. 1-50.1. Base value; base year. "Base value" means the higher of (i) the amount for which the property was last sold at an arms-length transaction or (ii) the fair cash value of the property as of the date of its last change of ownership; if the property is newly-constructed, then "base value" means the fair cash value of the property on the date on which new construction is completed, or, if uncompleted, on the first day of the taxable year.

"Base year" means the year in which the property last had a change of ownership.

(35 ILCS 200/9-145)

Sec. 9-145. Statutory level of assessment.

(a) For taxable years prior to 2022, except Except in counties with more than 200,000 inhabitants which classify property for purposes of taxation, property shall be valued as follows:

(a) Each tract or lot of property shall be valued at 33 1/3% of its fair cash value.

(b) Each taxable leasehold estate shall be valued at 33 1/3% of its fair cash value.

(c) Each building or structure which is located on the right of way of any canal, railroad or other company leased or granted to another company or person for a term of years, shall be valued at 33 1/3% of its fair cash value.

(d) Any property on which there is a coal or other mine, or stone or other quarry, shall be valued at 33 1/3% of its fair cash value. Oil, gas and other minerals, except coal, shall have value and be assessed separately at 33 1/3% of the fair cash value of such oil, gas and other minerals. Coal shall be assessed separately at 33 1/3% of the coal reserve economic value, as provided in Sections 10-170 through 10-200.

(e) In the assessment of property encumbered by public easement, any depreciation occasioned by such easement shall be deducted in the valuation of such property. Any property dedicated as a nature preserve or as a nature preserve buffer under the Illinois Natural Areas Preservation Act, for the purposes of this paragraph, is encumbered by a public easement and shall be depreciated for assessment purposes to a level at which its valuation shall be $1 per acre or portion thereof.

This Section is subject to and modified by Sections 10-110 through 10-140 and 11-5 through 11-65.

(b) Notwithstanding any other provision of law, for the 2022 taxable year and thereafter, in all counties, property shall be valued at the lesser of (i) its base year value, compounded annually since the base year by an inflation factor, which shall be the percentage change for the prior calendar year in the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor, but not to exceed 2% of the prior year's value, plus the value of any improvements to the property, and (ii) its full cash value, as defined in Section 1-50, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value.

(Source: P.A. 91-497, eff. 1-1-00.)

(35 ILCS 200/9-155)

Sec. 9-155. Valuation in general assessment years. On or before June 1 in each general assessment year in all counties with less than 3,000,000 inhabitants, and as soon as he or she reasonably can in each general assessment year in counties with 3,000,000 or more inhabitants, or if any such county is divided into assessment districts as provided in Sections 9-215 through 9-225, as soon as he or she reasonably can in each general assessment year in those districts, the assessor, in person or by deputy, shall actually view and determine as near as practicable the value of each property listed for taxation as of January 1 of that year, or as provided in Section 9-180, and assess the property as provided in Section 9-145 at 33 1/3% of its fair cash value, or in accordance with Sections 10-110 through 10-140 and 10-170 through 10-200, or in accordance with a county ordinance adopted under Section 4 of Article IX of the Constitution of Illinois. The assessor or deputy shall set down, in the books furnished for that purpose the assessed valuation of properties in one column, the assessed value of improvements in another, and the total valuation in a separate column.

(Source: P.A. 86-1481; 87-1189; 88-455.)

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