093_HB0860enr
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1 AN ACT in relation to 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. Section 515 Low-income housing project
8 valuation policy; intent. It is the policy of this State that
9 low-income housing projects that qualify for the low-income
10 housing tax credit under Section 42 of the Internal Revenue
11 Codeunder Section 515 of the federal Housing Act shall be
12 valued at 33 and one-third percent of the fair market value
13 of their economic productivity to the owners of the projects
14 to help insure that their valuation for property taxation
15 does not result in taxes so high that rent levels must be
16 raised to cover this project expense, which can cause excess
17 vacancies, project loan defaults, and eventual loss of rental
18 housing facilities for those most in need of them, low-income
19 families and the elderly. It is the intent of this State
20 that the valuation required by this Division is the closest
21 representation of cash value required by law and is the
22 method established as proper and fair.
23 (Source: P.A. 91-651, eff. 1-1-00; 92-16, eff. 6-28-01.)
24 (35 ILCS 200/10-245)
25 Sec. 10-245. Method of valuation of Section 515
26 low-income housing projects. Notwithstanding Section 1-55
27 and except in counties with a population of more than 200,000
28 that classify property for the purposes of taxation, to
29 determine 33 and one-third percent of the fair cash value of
30 any Section 515 low-income housing project that qualifies for
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1 the low-income housing tax credit under Section 42 of the
2 Internal Revenue Code, in assessing the project, local
3 assessment officers must consider the actual or probable net
4 operating income attributable to the project, using a vacancy
5 rate of not more than 5%, capitalized at normal market rates.
6 The interest rate to be used in developing the normal market
7 value capitalization rate shall be one that reflects the
8 prevailing cost of cash for other types of commercial real
9 estate in the geographic market in which the low-income
10 housingSection 515 project is located.
11 (Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)
12 (35 ILCS 200/10-250)
13 Sec. 10-250. Certification procedure and effective date
14 of implementation.
15 (a) After (i) an application for a Section 515
16 low-income housing project certificate is filed with the
17 State Director of the United States Department of Agriculture
18 Rural Development Office in a manner and form prescribed in
19 regulations issued by the office and (ii) the certificate is
20 issued certifying that the housing is a Section 515
21 low-income housing project as defined in Section 2 of this
22 Act, the certificate must be presented to the appropriate
23 local assessment officer to receive the property assessment
24 valuation under this Division. The local assessment officer
25 must assess the property according to this Act. Beginning on
26 January 1, 2000 and through taxable year 2003, all certified
27 Section 515 low-income housing projects shall be assessed in
28 accordance with Section 10-245.
29 (b) Beginning with taxable year 2004, all low-income
30 housing projects that qualify for the low-income housing tax
31 credit under Section 42 of the Internal Revenue Code shall be
32 assessed in accordance with Section 10-245 if the owner or
33 owners of the low-income housing project certify to the
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1 appropriate local assessment officer that the owner or owner
2 that qualifies for the low-income housing tax credit under
3 Section 42 of the Internal Revenue Code for the property.
4 (Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)
5 Section 99. Effective date. This Act takes effect on
6 January 1, 2004.