093_HB0860enr

 
HB0860 Enrolled                      LRB093 05730 SJM 05823 b

 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    Code  under  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    housing Section 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.