SB3259eng 98TH GENERAL ASSEMBLY

SB3259 Engrossed LRB098 19492 HLH 54667 b

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by adding Division 19 to Article 10 as follows:

(35 ILCS 200/Art. 10 Div. 19 heading new)

DIVISION 19. QUALIFIED COMMERCIAL AND INDUSTRIAL PROPERTY

(35 ILCS 200/10-700 new)

Sec. 10-700. Qualified commercial and industrial property; natural disaster. Notwithstanding any other provision of law, each qualified parcel of commercial or industrial property owned and used by a small business shall be valued at the lesser of (i) its modified equalized assessed value or (ii) 33 1/3% of its fair cash value. The method of valuation under this Section shall continue until there is a change in use or ownership of the property or until the fifteenth taxable year after the natural disaster occurs, whichever occurs first. In order to qualify for valuation under this Section, the structure must be rebuilt within 2 years after the date of the natural disaster, and the square footage of the rebuilt structure may not be more than 110% of the square footage of the original structure as it existed immediately prior to the natural disaster.

"Base year" means the taxable year prior to the taxable year in which the natural disaster occurred.

"Modified equalized assessed value" means:

(1) in the first taxable year after the natural disaster occurs, the equalized assessed value of the property for the base year; and

(2) in the second taxable year after the natural disaster occurs and thereafter, the modified equalized assessed value of the property for the previous taxable year, increased by 4%.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including, but not limited to, fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a commercial or industrial structure affected by flooding, the structure shall not be eligible for this exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. The natural disaster shall be proclaimed as such by the Governor or the President of the United States.

"Qualified parcel of property" means property that (i) is owned and used exclusively for commercial or industrial purposes by a small business and (ii) has been rebuilt following a natural disaster occurring in taxable year 2013 or any taxable year thereafter.

"Small business" means a business that employs fewer than 50 full-time employees.

Section 99. Effective date. This Act takes effect upon becoming law.