97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0235

 

Introduced 01/25/11, by Rep. Tom Cross

 

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

    Amends the Property Tax Code. In provisions concerning the assessment of subdivisions, provides that the subsequent sale or transfer of the property by a party who acquired title pursuant to (i) a transfer as a mortgage holder, (ii) a mortgage foreclosure proceeding, (iii) a consent judgment, or (iv) a transfer in lieu of foreclosure, shall not disqualify the property from being assessed based on the estimated price the property would bring at a fair voluntary sale for use by the buyer for the same purposes for which the property was used when last assessed prior to its platting (or, until January 1, 2011, assessed based on the assessed value assigned to the property when last assessed prior to its last transfer or conveyance) unless (A) a habitable structure is completed on the lot, (B) the lot is used for business, commercial, or residential purpose, or (C) until the initial sale of any platted lot. 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    (c-5) Beginning January 1, 2011, and except as provided in
22subsection (c), the subsequent sale or transfer of the property
23by a party who acquired title pursuant to (i) a transfer as a
24mortgage holder, as "mortgage" is defined in Section 15-1207 of
25the Code of Civil Procedure, (ii) a mortgage foreclosure
26proceeding, (iii) a consent judgment, or (iv) a transfer in

 

 

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1lieu of foreclosure, shall not disqualify the property from
2subsection (b) above. Subsection (b) of this Section shall
3apply to each undeveloped platted lot until a habitable
4structure is completed on the lot.
5    (d) This Section applies before the effective date of this
6amendatory Act of the 96th General Assembly and then applies
7again beginning January 1, 2012.
8(Source: P.A. 95-135, eff. 1-1-08; 96-480, eff. 8-14-09.)
 
9    (35 ILCS 200/10-31)
10    Sec. 10-31. Subdivisions; counties of less than 3,000,000.
11    (a) In counties with less than 3,000,000 inhabitants, the
12platting and subdivision of property into separate lots and the
13development of the subdivided property with streets,
14sidewalks, curbs, gutters, sewer, water and utility lines shall
15not increase the assessed valuation of all or any part of the
16property, if:
17        (1) The property is platted and subdivided in
18    accordance with the Plat Act;
19        (2) The platting occurs after January 1, 1978;
20        (3) At the time of platting the property is in excess
21    of 5 acres; and
22        (4) At the time of platting or replatting the property
23    is vacant or used as a farm as defined in Section 1-60.
24    (b) Except as provided in subsection (c) of this Section,
25the assessed valuation of property so platted and subdivided

 

 

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1shall be determined based on the assessed value assigned to the
2property when last assessed prior to its last transfer or
3conveyance. An initial sale of any platted lot, including a lot
4that is vacant, or a transfer to a holder of a mortgage, as
5defined in Section 15-1207 of the Code of Civil Procedure,
6pursuant to a mortgage foreclosure proceeding, pursuant to a
7consent judgment, or pursuant to a transfer in lieu of
8foreclosure, does not disqualify that lot from the provisions
9of this subsection (b). The subsequent sale or transfer of the
10property by a party who acquired title pursuant to (i) a
11transfer as a mortgage holder, as "mortgage" is defined in
12Section 15-1207 of the Code of Civil Procedure, (ii) a mortgage
13foreclosure proceeding, (iii) a consent judgment, or (iv) a
14transfer in lieu of foreclosure, shall not disqualify the
15property from this subsection (b). This subsection (b) shall
16apply to each undeveloped platted lot until a habitable
17structure is completed on the lot.
18    (c) Upon completion of a habitable structure on any lot of
19subdivided property, or upon the use of any lot, either alone
20or in conjunction with any contiguous property, for any
21business, commercial or residential purpose: (i) the
22provisions of subsection (b) of this Section shall no longer
23apply in determining the assessed valuation of the lot, (ii)
24each lot shall be assessed without regard to any provision of
25this Section, and (iii) the assessed valuation of the remaining
26property, when next determined, shall be reduced

 

 

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1proportionately to reflect the exclusion of the property that
2no longer qualifies for valuation under this Section. Holding
3or offering a platted lot for initial sale shall not constitute
4a use of the lot for business, commercial or residential
5purposes unless a habitable structure is situated on the lot or
6unless the lot is otherwise used for a business, commercial or
7residential purpose. The replatting of a subdivision or portion
8of a subdivision does not disqualify the replatted lots from
9the provisions of subsection (b).
10    (d) This Section applies on and after the effective date of
11this amendatory Act of the 96th General Assembly and through
12December 31, 2011.
13(Source: P.A. 96-480, eff. 8-14-09.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.