97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4698

 

Introduced 2/3/2012, by Rep. John E. Bradley

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-30
35 ILCS 200/10-31

    Amends the Property Tax Code. In a Section concerning the assessed valuation of subdivisions, provides that prior to the completion of a habitable structure on any lot of subdivided property, or upon the use of any lot for business, commercial or residential purpose, the assessed valuation of platted and subdivided property shall be determined using the same assessment method used in the taxable year prior to the taxable year in which property was subdivided. Provides that undeveloped platted and subdivided property qualifies for assessment in that manner if the property is sold or transferred for development purposes or pursuant to certain foreclosure proceedings. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Sections 10-30 and 10-31 as follows:
 
6    (35 ILCS 200/10-30)
7    Sec. 10-30. Subdivisions; counties of less than 3,000,000.
8    (a) In counties with less than 3,000,000 inhabitants, the
9platting and subdivision of property into separate lots and the
10development of the subdivided property with streets,
11sidewalks, curbs, gutters, sewer, water and utility lines shall
12not increase the assessed valuation of all or any part of the
13property, if:
14        (1) The property is platted and subdivided in
15    accordance with the Plat Act;
16        (2) The platting occurs after January 1, 1978;
17        (3) At the time of platting the property is in excess
18    of 5 acres; and
19        (4) At the time of platting the property is vacant or
20    used as a farm as defined in Section 1-60.
21    (b) Except as provided in subsection (c) of this Section,
22the assessed valuation of property so platted and subdivided
23shall be determined each year based on the estimated price the

 

 

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1property would bring at a fair voluntary sale for use by the
2buyer for the same purposes for which the property was used
3when last assessed prior to its platting.
4    (c) Upon completion of a habitable structure on any lot of
5subdivided property, or upon the use of any lot, either alone
6or in conjunction with any contiguous property, for any
7business, commercial or residential purpose, or upon the
8initial sale of any platted lot, including a platted lot which
9is vacant: (i) the provisions of subsection (b) of this Section
10shall no longer apply in determining the assessed valuation of
11the lot, (ii) each lot shall be assessed without regard to any
12provision of this Section, and (iii) the assessed valuation of
13the remaining property, when next determined, shall be reduced
14proportionately to reflect the exclusion of the property that
15no longer qualifies for valuation under this Section. Holding
16or offering a platted lot for initial sale shall not constitute
17a use of the lot for business, commercial or residential
18purposes unless a habitable structure is situated on the lot or
19unless the lot is otherwise used for a business, commercial or
20residential purpose.
21    (d) This Section applies before August 14, 2009 (the
22effective date of Public Act 96-480) this amendatory Act of the
2396th General Assembly and then applies again beginning January
241, 2012.
25(Source: P.A. 95-135, eff. 1-1-08; 96-480, eff. 8-14-09.)
 

 

 

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1    (35 ILCS 200/10-31)
2    Sec. 10-31. Subdivisions; counties of less than 3,000,000.
3    (a) In counties with less than 3,000,000 inhabitants, the
4platting and subdivision of property into separate lots and the
5development of the subdivided property with streets,
6sidewalks, curbs, gutters, sewer, water and utility lines shall
7not increase the assessed valuation of all or any part of the
8property, if:
9        (1) The property is platted and subdivided in
10    accordance with the Plat Act;
11        (2) The platting occurs after January 1, 1978;
12        (3) At the time of platting the property is in excess
13    of 5 acres; and
14        (4) At the time of platting or replatting the property
15    is vacant or used as a farm as defined in Section 1-60.
16    (b) Except as provided in subsection (c) of this Section,
17the assessed valuation of property so platted and subdivided
18shall be determined using the same assessment method used in
19the taxable year prior to the taxable year in which property
20was subdivided. The following sales or transfers of any platted
21lot shall not disqualify that lot from the provisions of this
22subsection (b):
23        (1) a sale to any person or entity for purposes of
24    future development;
25        (2) a sale or transfer to a related entity, including a
26    parent corporation, subsidiary, or affiliate;

 

 

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1        (3) a transfer to a holder of a mortgage, as defined in
2    Section 15-1207 of the Code of Civil Procedure, pursuant to
3    a mortgage foreclosure proceeding or pursuant to a transfer
4    in lieu of a foreclosure; or
5        (4) a sale or transfer by the holder of a mortgage, as
6    described in item (3).
7    Unless the property qualifies under subsection (c) of this
8Section, any sale that occurred prior to the effective date of
9this amendatory Act of the 97th General Assembly that falls
10into one of those 4 exceptions shall qualify the property to
11regain the preferential assessment under this subsection (b)
12beginning in taxable year 2011 if the subject property had
13previously lost the preferential assessment. based on the
14assessed value assigned to the property when last assessed
15prior to its last transfer or conveyance. An initial sale of
16any platted lot, including a lot that is vacant, or a transfer
17to a holder of a mortgage, as defined in Section 15-1207 of the
18Code of Civil Procedure, pursuant to a mortgage foreclosure
19proceeding or pursuant to a transfer in lieu of foreclosure,
20does not disqualify that lot from the provisions of this
21subsection (b).
22    (c) Upon completion of a habitable structure on any lot of
23subdivided property, or upon the use of any lot, either alone
24or in conjunction with any contiguous property, for any
25business, commercial or residential purpose: (i) the
26provisions of subsection (b) of this Section shall no longer

 

 

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1apply in determining the assessed valuation of the lot, (ii)
2each lot shall be assessed without regard to any provision of
3this Section, and (iii) the assessed valuation of the remaining
4property, when next determined, shall be reduced
5proportionately to reflect the exclusion of the property that
6no longer qualifies for valuation under this Section. Holding
7or offering a platted lot for initial sale shall not constitute
8a use of the lot for business, commercial or residential
9purposes unless a habitable structure is situated on the lot or
10unless the lot is otherwise used for a business, commercial or
11residential purpose. The replatting of a subdivision or portion
12of a subdivision does not disqualify the replatted lots from
13the provisions of subsection (b).
14    (d) This Section applies on and after August 14, 2009 (the
15effective date of Public Act 96-480) this amendatory Act of the
1696th General Assembly and through December 31, 2011.
17(Source: P.A. 96-480, eff. 8-14-09.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.