102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3894

 

Introduced 1/21/2022, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-805 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.


LRB102 23854 HLH 33047 b

 

 

A BILL FOR

 

SB3894LRB102 23854 HLH 33047 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 Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-805 as follows:
 
7    (20 ILCS 2505/2505-805 new)
8    Sec. 2505-805. Property tax assessment process study. The
9Department, in collaboration with the Department of Commerce
10and Economic Opportunity, shall conduct a study and analyze
11any information collected to determine the level of fairness
12and equity in the property tax assessment processes in the
13State. The study shall focus primarily on the following:
14        (1) conducting a comprehensive review of the
15    classification system utilized by Cook County for purposes
16    of assessing real property in Cook County compared with
17    the rest of the State, including, but not limited to, a
18    projection of the impact, if any, that the assessment of
19    real property in Cook County would exhibit were the
20    classification system to be phased-out and transitioned to
21    a uniform level of assessment, and the impact, if any,
22    that the Cook County classification system has or has had
23    on economic development or job creation in the county;

 

 

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1        (2) conducting a comprehensive review of State laws
2    relating to the assessment of real property, including the
3    appeal of assessments at the local and State level;
4        (3) conducting a comprehensive review of statewide
5    assessment systems or computer assisted mass appraisal
6    systems;
7        (4) conducting a comprehensive review of current
8    exemptions available, the impact of these exemptions, and
9    the administration or application of these exemptions;
10        (5) analyzing preferential assessments, including, but
11    not limited to, the resultant economic impact from
12    preferential assessments; and
13        (6) discussing the use of technology in the data
14    collection, online review, CAMA analysis, and electronic
15    appeal filing that may result in improved accountability
16    and efficiency.
17    The Department shall consult with Illinois institutions of
18higher education having knowledge about the Illinois
19assessment processes in conducting the study under this
20Section. The Department shall complete a preliminary version
21of the report by May 31, 2023 and shall complete a final
22version of the report by July 1, 2023. The Department shall
23submit the final version of the report to the Governor and the
24General Assembly by July 1, 2023. A copy of both the
25preliminary version of the report and the final version of the
26report shall be made available to the public via electronic

 

 

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1means. The Department may allow for the submission of public
2comments from individuals, organizations, or associations
3representing residential property owners, commercial property
4owners, or labor unions in Illinois. If the Department allows
5for the submission of public comments, the Department shall
6publish via electronic means any and all materials submitted
7to the Department.
8    This Section is repealed on December 31, 2023.
 
9    Section 10. The Property Tax Code is amended by adding
10Sections 9-151 and 12-36 as follows:
 
11    (35 ILCS 200/9-151 new)
12    Sec. 9-151. Limitation on increases of assessed value on
13commercial and residential property.
14    (a) In counties with 3,000,000 or more inhabitants,
15beginning with tax year 2022, the chief county assessment
16officer of the county shall not increase the assessed value of
17any commercial property or residential property by more than
1815% over the assessed value in the previous tax year and shall
19not increase such assessment by more than 40% in any 3-year
20period. In counties with fewer than 3,000,000 inhabitants, the
21county board may provide, by ordinance or resolution, that the
22provisions of this Section are applicable to that county.
23    (b) The limitation set forth in this Section does not
24apply to the following:

 

 

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

 

 

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1owner-occupied and is owned for the purpose of generating
2income from the property itself, whether or not such property
3actually generates income in a particular year.
4    "Residential property" means real property that is
5occupied by its owner or owners as his, hers, or their
6principal dwelling place, or that is a leasehold interest on
7which a single family residence is situated, which is occupied
8as a residence by a person who has an ownership interest
9therein, legal or equitable or as a lessee, and on which the
10person is liable for the payment of property taxes.
 
11    (35 ILCS 200/12-36 new)
12    Sec. 12-36. Public comment period for substantive
13assessment process change. Beginning in tax year 2022, in
14counties with 3,000,000 or more inhabitants, whenever the
15chief county assessment officer of the county substantively
16changes the procedure by which he or she assesses properties,
17the chief county assessment officer shall hold a 60-day public
18comment period to receive input from members of the public
19before the change takes effect.