103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3573

 

Introduced 2/17/2023, by Rep. Eva-Dina Delgado

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 2505/2505-810 new
35 ILCS 200/9-151 new
35 ILCS 200/12-36 new

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Requires the Department of Revenue to conduct a property tax assessment process study. Amends the Property Tax Code. Limits the increase in the assessment of any commercial or residential property to 15% over the assessed value in the previous tax year and 40% in any 3-year period. Provides that the limitation shall apply in counties with 3,000,000 or more inhabitants and may apply in other counties by ordinance or resolution of the county board. Provides that, in counties with 3,000,000 or more inhabitants, whenever the chief county assessment officer of the county substantively changes the procedure by which he or she assesses properties, the chief county assessment officer shall hold a 60-day public comment period to receive input from members of the public before the change takes effect.


LRB103 30465 HLH 56898 b

 

 

A BILL FOR

 

HB3573LRB103 30465 HLH 56898 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 1. Short Title. This Act may be referred to as the
5Save Our Businesses and Homes Act.
 
6    Section 5. The Department of Revenue Law of the Civil
7Administrative Code of Illinois is amended by adding Section
82505-810 as follows:
 
9    (20 ILCS 2505/2505-810 new)
10    Sec. 2505-810. Property tax assessment process study. The
11Department shall conduct a study and analyze any information
12collected to determine the level of fairness and equity in the
13property tax assessment processes in the State. The study
14shall focus primarily on the following:
15        (1) conducting a comprehensive review of the
16    classification system utilized by Cook County for purposes
17    of assessing real property in Cook County compared with
18    the rest of the State, including, but not limited to, a
19    projection of the impact, if any, that the assessment of
20    real property in Cook County would exhibit were the
21    classification system to be phased-out and transitioned to
22    a uniform level of assessment and the impact, if any, that

 

 

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1    the Cook County classification system has or has had on
2    economic development or job creation in the county;
3        (2) conducting a comprehensive review of State laws
4    relating to the assessment of real property, including the
5    appeal of assessments at the local and State level;
6        (3) conducting a comprehensive review of statewide
7    assessment systems or computer assisted mass appraisal
8    systems;
9        (4) conducting a comprehensive review of current
10    exemptions available, the impact of these exemptions, and
11    the administration or application of these exemptions;
12        (5) analyzing preferential assessments, including, but
13    not limited to, the resultant economic impact from
14    preferential assessments; and
15        (6) discussing the use of technology in the data
16    collection, online review, CAMA analysis, and electronic
17    appeal filing that may result in improved accountability
18    and efficiency.
19    The Department shall consult with Illinois institutions of
20higher education having knowledge about the Illinois
21assessment processes in conducting the study under this
22Section. The Department shall complete a preliminary version
23of the report by May 31, 2024 and shall complete a final
24version of the report by July 1, 2024. The Department shall
25submit the final version of the report to the Governor and the
26General Assembly by July 1, 2024. A copy of both the

 

 

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1preliminary version of the report and the final version of the
2report shall be made available to the public via electronic
3means. The Department may allow for the submission of public
4comments from individuals, organizations, or associations
5representing residential property owners, commercial property
6owners, or labor unions in Illinois. If the Department allows
7for the submission of public comments, the Department shall
8publish via electronic means any and all materials submitted
9to the Department.
10    This Section is repealed on December 31, 2024.
 
11    Section 10. The Property Tax Code is amended by adding
12Sections 9-151 and 12-36 as follows:
 
13    (35 ILCS 200/9-151 new)
14    Sec. 9-151. Limitation on increases of assessed value on
15commercial and residential property.
16    (a) In counties with 3,000,000 or more inhabitants,
17beginning with tax year 2023, the chief county assessment
18officer of the county shall not increase the assessed value of
19any commercial property or residential property by more than
2015% over the assessed value in the previous tax year and shall
21not increase such assessment by more than 40% in any 3-year
22period. In counties with fewer than 3,000,000 inhabitants, the
23county board may provide, by ordinance or resolution, that the
24provisions of this Section are applicable to that county.

 

 

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1    (b) The limitation set forth in this Section does not
2apply to the following:
3        (1) the assessed value of additions or improvements to
4    real property in the year those additions or improvements
5    are first subject to property tax;
6        (2) the assessed value of real property when a
7    transfer of ownership has occurred in the year that the
8    transfer is first subject to property tax;
9        (3) the assessed value of any real property that has
10    been reclassified in the year or years following the
11    reclassification of the property;
12        (4) when the assessed value increase is due to the
13    expiration of an incentive classification;
14        (5) the assessed value of real property that has been
15    granted a vacancy reduction in the year or years
16    immediately preceding the year a commercial property
17    becomes subject to the provisions of this Section; or
18        (6) the assessed value of commercial property when
19    there is a technical error in the assessment that is
20    corrected by the chief county assessment officer of the
21    county in the year a commercial property becomes subject
22    to the provisions of this Section.
23    (c) The limitation provided for under this Section must be
24calculated on the land and the improvements as a whole.
25    (d) Nothing in this Section shall prevent a chief county
26assessment officer from reclassifying property as necessary.

 

 

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1    (e) For purposes of this Section:
2    "Commercial property" means real property that is owned
3for the purpose of generating income from the property itself,
4whether or not such property actually generates income in a
5particular year.
6    "Residential property" means real property that is
7occupied by its owner or owners as his, hers, or their
8principal dwelling place, or that is a leasehold interest on
9which a single family residence is situated, which is occupied
10as a residence by a person who has an ownership interest
11therein, legal or equitable or as a lessee, and on which the
12person is liable for the payment of property taxes.
 
13    (35 ILCS 200/12-36 new)
14    Sec. 12-36. Public comment period for substantive
15assessment process change. Beginning in tax year 2023, in
16counties with 3,000,000 or more inhabitants, whenever the
17chief county assessment officer of the county substantively
18changes the procedure by which he or she assesses properties,
19the chief county assessment officer shall hold a 60-day public
20comment period to receive input from members of the public
21before the change takes effect.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.