102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2297
 
Introduced 2/26/2021, by Sen. Ann Gillespie
 
SYNOPSIS AS INTRODUCED:
 

 
  
35 ILCS 200/10-260

     Amends the Property Tax Code. Provides that, in determining the fair cash value of a low-income housing project (Section 42 properties), the assessment officer must consider the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. Provides that the owner or owners of the low-income housing project must certify to the appropriate local assessment officer that the owner or owners qualify for the low-income housing tax credit under Section 42 of the Internal Revenue Code for the property. 
  


LRB102 11489 HLH 16823 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB2297LRB102 11489 HLH 16823 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Property Tax Code is amended  by changing 
5Section 10-260 as follows:
 



6    (35 ILCS 200/10-260)



7    Sec. 10-260. Low-income housing. In determining the fair

8cash value of property receiving benefits from the Low-Income 
9Housing Tax
Credit authorized by Section 42 of the Internal 
10Revenue Code, 26 U.S.C. 42,
emphasis shall be given to the 
11income approach, except in those circumstances
where another 
12method is clearly more appropriate.

13    In counties with more than 3,000,000 inhabitants, to 
14determine the fair cash value of any low-income housing 
15project that qualifies for the Low-Income Housing Tax Credit 
16under Section 42 of the Internal Revenue Code, in assessing 
17the project, the assessment officer must consider the actual 
18or projected net operating income attributable to the 
19property, capitalized at rates for similarly encumbered 
20Section 42 properties. The interest rate to be used in 
21developing the capitalization rate shall be one that reflects 
22the prevailing cost of capital for other types of similarly 
23encumbered Section 42 properties in the geographic market in 
 
 
SB2297- 2 -LRB102 11489 HLH 16823 b

1which the low-income housing project is located. 
2    Beginning with the taxable year 2022, all low-income 
3housing projects that qualify for the low-income housing tax 
4credit under Section 42 of the Internal Revenue Code shall be 
5assessed in accordance with this Section if the owner or 
6owners of the low-income housing project certify to the 
7appropriate local assessment officer that the owner or owners 
8qualify for the low-income housing tax credit under Section 42 
9of the Internal Revenue Code for the property. 
10(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)