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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Department of Revenue Law of the
Civil | |||||||||||||||||||||||
5 | Administrative Code of Illinois is amended by adding Section | |||||||||||||||||||||||
6 | 2505-805 as follows: | |||||||||||||||||||||||
7 | (20 ILCS 2505/2505-805 new) | |||||||||||||||||||||||
8 | Sec. 2505-805. Property tax assessment process study. The | |||||||||||||||||||||||
9 | Department, in collaboration with the Department of Commerce | |||||||||||||||||||||||
10 | and Economic Opportunity, shall conduct a study and analyze | |||||||||||||||||||||||
11 | any information collected to determine the level of fairness | |||||||||||||||||||||||
12 | and equity in the property tax assessment processes in the | |||||||||||||||||||||||
13 | State. 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 | ||||||
18 | higher education having knowledge about the Illinois | ||||||
19 | assessment processes in conducting the study under this | ||||||
20 | Section. The Department shall complete a preliminary version | ||||||
21 | of the report by May 31, 2023 and shall complete a final | ||||||
22 | version of the report by July 1, 2023. The Department shall | ||||||
23 | submit the final version of the report to the Governor and the | ||||||
24 | General Assembly by July 1, 2023. A copy of both the | ||||||
25 | preliminary version of the report and the final version of the | ||||||
26 | report shall be made available to the public via electronic |
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1 | means. The Department may allow for the submission of public | ||||||
2 | comments from individuals, organizations, or associations | ||||||
3 | representing residential property owners, commercial property | ||||||
4 | owners, or labor unions in Illinois. If the Department allows | ||||||
5 | for the submission of public comments, the Department shall | ||||||
6 | publish via electronic means any and all materials submitted | ||||||
7 | to the Department. | ||||||
8 | This Section is repealed on December 31, 2023. | ||||||
9 | Section 10. The Property Tax Code is amended by adding | ||||||
10 | Sections 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 | ||||||
13 | commercial and residential property. | ||||||
14 | (a) In counties with 3,000,000 or more inhabitants, | ||||||
15 | beginning with tax year 2022, the chief county assessment | ||||||
16 | officer of the county shall not increase the assessed value of | ||||||
17 | any commercial property or residential property by more than | ||||||
18 | 15% over the assessed value in the previous tax year and shall | ||||||
19 | not increase such assessment by more than 40% in any 3-year | ||||||
20 | period. In counties with fewer than 3,000,000 inhabitants, the | ||||||
21 | county board may provide, by ordinance or resolution, that the | ||||||
22 | provisions of this Section are applicable to that county. | ||||||
23 | (b) The limitation set forth in this Section does not | ||||||
24 | apply 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 | ||||||
22 | calculated on the land and the improvements as a whole. | ||||||
23 | (d) Nothing in this Section shall prevent a chief county | ||||||
24 | assessment 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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1 | owner-occupied and is owned for the purpose of generating | ||||||
2 | income from the property itself, whether or not such property | ||||||
3 | actually generates income in a particular year. | ||||||
4 | "Residential property" means real property that is | ||||||
5 | occupied by its owner or owners as his, hers, or their | ||||||
6 | principal dwelling place, or that is a leasehold interest on | ||||||
7 | which a single family residence is situated, which is occupied | ||||||
8 | as a residence by a person who has an ownership interest | ||||||
9 | therein, legal or equitable or as a lessee, and on which the | ||||||
10 | person is liable for the payment of property taxes. | ||||||
11 | (35 ILCS 200/12-36 new) | ||||||
12 | Sec. 12-36. Public comment period for substantive | ||||||
13 | assessment process change. Beginning in tax year 2022, in | ||||||
14 | counties with 3,000,000 or more inhabitants, whenever the | ||||||
15 | chief county assessment officer of the county substantively | ||||||
16 | changes the procedure by which he or she assesses properties, | ||||||
17 | the chief county assessment officer shall hold a 60-day public | ||||||
18 | comment period to receive input from members of the public | ||||||
19 | before the change takes effect.
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