|
|||||||
| |||||||
| |||||||
1 | AN ACT concerning taxes.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Sections 10-235, 10-245, and 10-250 as follows:
| ||||||
6 | (35 ILCS 200/10-235)
| ||||||
7 | Sec. 10-235. Low-income housing project valuation policy;
| ||||||
8 | intent. It is the policy of this State that low-income housing | ||||||
9 | projects
developed under Section 515 of the federal Housing Act | ||||||
10 | or that qualify for the low-income housing tax credit under | ||||||
11 | Section 42 of the
Internal Revenue Code shall be valued at 33 | ||||||
12 | and
one-third percent of the fair market value of their | ||||||
13 | economic productivity
to the owners of the projects to help | ||||||
14 | insure that their valuation for
property taxation does not | ||||||
15 | result in taxes so high that rent levels
must be raised to | ||||||
16 | cover this project expense, which can cause excess
vacancies, | ||||||
17 | project loan defaults, and eventual loss of rental housing
| ||||||
18 | facilities for those most in need of them, low-income families | ||||||
19 | and the
elderly. It is the intent of this State that the | ||||||
20 | valuation required by
this Division is the closest | ||||||
21 | representation of cash value required by law
and is the method | ||||||
22 | established as proper and fair.
| ||||||
23 | (Source: P.A. 92-16, eff. 6-28-01; 93-533, eff. 1-1-04.)
| ||||||
24 | (35 ILCS 200/10-245)
| ||||||
25 | Sec. 10-245. Method of valuation of low-income housing | ||||||
26 | projects. Notwithstanding Section 1-55 and except in counties | ||||||
27 | with a population of more
than 200,000 that classify property | ||||||
28 | for the purposes of taxation, to determine
33 and one-third | ||||||
29 | percent of the fair cash value of any low-income housing
| ||||||
30 | project developed under the Section 515 program or that | ||||||
31 | qualifies for the low-income housing tax credit under Section |
| |||||||
| |||||||
1 | 42
of the Internal Revenue Code, in assessing the project, | ||||||
2 | local assessment
officers must consider the actual or probable | ||||||
3 | net operating income attributable
to the project, using a | ||||||
4 | vacancy rate of not more than 5%, capitalized at normal
market | ||||||
5 | rates. The interest rate to be used in developing the normal | ||||||
6 | market
value capitalization rate shall be one that reflects the | ||||||
7 | prevailing cost of
cash for other types of commercial real | ||||||
8 | estate in the geographic market in
which the low-income housing | ||||||
9 | project is located.
| ||||||
10 | (Source: P.A. 93-533, eff. 1-1-04.)
| ||||||
11 | (35 ILCS 200/10-250)
| ||||||
12 | Sec. 10-250. Certification procedure and effective date of
| ||||||
13 | implementation.
| ||||||
14 | (a) After (i) an application for a Section 515 low-income | ||||||
15 | housing project
certificate is filed with the State Director of
| ||||||
16 | the United States Department of Agriculture Rural Development | ||||||
17 | Office in a
manner and form prescribed in
regulations issued by | ||||||
18 | the office and (ii) the certificate is issued certifying
that | ||||||
19 | the housing is a Section 515 low-income housing project as | ||||||
20 | defined in
Section 2 of this Act, the certificate must be | ||||||
21 | presented to the appropriate
local assessment officer to | ||||||
22 | receive the property assessment valuation under
this Division. | ||||||
23 | The local assessment officer must assess the property according
| ||||||
24 | to this Act.
Beginning on January 1, 2000 and through taxable | ||||||
25 | year 2003 , all certified
Section 515 low-income housing
| ||||||
26 | projects shall be assessed in accordance with Section 10-245.
| ||||||
27 | (b) Beginning with taxable year 2004, all low-income | ||||||
28 | housing projects
that qualify for the low-income housing tax | ||||||
29 | credit under Section 42 of the
Internal Revenue Code
shall be
| ||||||
30 | assessed in accordance with Section 10-245 if the owner or | ||||||
31 | owners of the
low-income
housing project certify to the | ||||||
32 | appropriate local assessment officer that the
owner or owners | ||||||
33 | qualify
owner that qualifies for the low-income housing tax | ||||||
34 | credit under Section 42 of the
Internal Revenue Code for the | ||||||
35 | property.
|
| |||||||
| |||||||
1 | (Source: P.A. 93-533, eff. 1-1-04.)
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
|