101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2217

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-155
35 ILCS 200/9-160
35 ILCS 200/Art. 9 Div. 6 heading new
35 ILCS 200/9-280 new
35 ILCS 200/9-281 new

    Amends the Property Tax Code. Provides that, in counties with 3,000,000 or more inhabitants, taxpayers of income producing property shall submit income and expense data related to the property annually to the chief county assessment officer. Provides that, in counties with fewer than 3,000,000 inhabitants, the county board may provide by resolution that taxpayers of income producing property shall submit income and expense data annually to the chief county assessment officer. Provides that, when determining the value of property for assessment purposes, the assessor may consider all relevant information pertaining to the fair cash value of the property, including, but not limited to, income and expense data, sales data, property characteristics data, construction cost data, appraisals, and other valuation information. 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 9-155 and 9-160 and by adding Division 6 to Article 9
6as follows:
 
7    (35 ILCS 200/9-155)
8    Sec. 9-155. Valuation in general assessment years.
9    (a) On or before June 1 in each general assessment year in
10all counties with less than 3,000,000 inhabitants, and as soon
11as he or she reasonably can in each general assessment year in
12counties with 3,000,000 or more inhabitants, or if any such
13county is divided into assessment districts as provided in
14Sections 9-215 through 9-225, as soon as he or she reasonably
15can in each general assessment year in those districts, the
16assessor, in person or by deputy, shall actually view and
17determine as near as practicable the value of each property
18listed for taxation as of January 1 of that year, or as
19provided in Section 9-180, and assess the property at 33 1/3%
20of its fair cash value, or in accordance with Sections 10-110
21through 10-140 and 10-170 through 10-200, or in accordance with
22a county ordinance adopted under Section 4 of Article IX of the
23Constitution of Illinois. The assessor or deputy shall set

 

 

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1down, in the books furnished for that purpose the assessed
2valuation of properties in one column, the assessed value of
3improvements in another, and the total valuation in a separate
4column.
5    (b) When determining the value of property for assessment
6purposes under this Code, the assessor may consider all
7relevant information pertaining to the fair cash value of the
8property, including, but not limited to, income and expense
9data submitted under this Code, sales data, property
10characteristics data, construction cost data, appraisals, and
11other valuation information pertaining to the property
12concerned and similar types of properties.
13(Source: P.A. 86-1481; 87-1189; 88-455.)
 
14    (35 ILCS 200/9-160)
15    Sec. 9-160. Valuation in years other than general
16assessment years.
17    (a) On or before June 1 in each year other than the general
18assessment year, in all counties with less than 3,000,000
19inhabitants, and as soon as he or she reasonably can in
20counties with 3,000,000 or more inhabitants, the assessor shall
21list and assess all property which becomes taxable and which is
22not upon the general assessment, and also make and return a
23list of all new or added buildings, structures or other
24improvements of any kind, the value of which had not been
25previously added to or included in the valuation of the

 

 

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1property on which such improvements have been made, specifying
2the property on which each of the improvements has been made,
3the kind of improvement and the value which, in his or her
4opinion, has been added to the property by the improvements.
5The assessment shall also include or exclude, on a
6proportionate basis in accordance with the provisions of
7Section 9-180, all new or added buildings, structures or other
8improvements, the value of which was not included in the
9valuation of the property for that year, and all improvements
10which were destroyed or removed. In case of the destruction or
11injury by fire, flood, cyclone, storm or otherwise, or removal
12of any structures of any kind, or of the destruction of or any
13injury to orchard timber, ornamental trees or groves, the value
14of which has been included in any former valuation of the
15property, the assessor shall determine as near as practicable
16how much the value of the property has been diminished, and
17make return thereof.
18    (b) Beginning January 1, 1996, the authority within a unit
19of local government that is responsible for issuing building or
20occupancy permits shall notify the chief county assessment
21officer, by December 31 of the assessment year, when a full or
22partial occupancy permit has been issued for a parcel of real
23property. The chief county assessment officer shall include in
24the assessment of the property for the current year the
25proportionate value of new or added improvements on that
26property from the date the occupancy permit was issued or from

 

 

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1the date the new or added improvement was inhabitable and fit
2for occupancy or for intended customary use until December 31
3of that year. If the chief county assessment officer has
4already certified the books for the year, the board of review
5or interim board of review shall assess the new or added
6improvements on a proportionate basis for the year in which the
7occupancy permit was issued or the new or added improvement was
8inhabitable and fit for occupancy or for intended customary
9use. The proportionate value of the new or added improvements
10may be assessed by the board of review or interim board of
11review as omitted property pursuant to Sections 9-265, 9-270,
1216-50 and 16-140 in a subsequent year on a proportionate basis
13for the year in which the occupancy permit was issued or the
14new or added improvement was inhabitable and fit for occupancy
15or for intended customary use if it was not assessed in that
16year.
17    (c) When determining the value of property for assessment
18purposes under this Code, the assessor may consider all
19relevant information pertaining to the fair cash value of the
20property, including, but not limited to, income and expense
21data submitted under this Act, sales data, property
22characteristics data, construction cost data, appraisals, and
23other valuation information pertaining to the property
24concerned and similar types of properties.
25(Source: P.A. 91-486, eff. 1-1-00.)
 

 

 

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1    (35 ILCS 200/Art. 9 Div. 6 heading new)
2
Division 6. Income Producing Property

 
3    (35 ILCS 200/9-280 new)
4    Sec. 9-280. Definitions. As used in this Article:
5    "Income and expense data" means annual reports or documents
6created in the ordinary course of business documenting income
7generated from and expenses associated with income producing
8property. The term "income and expense data" includes, but is
9not limited to, federal income tax returns related to income
10producing property, such as Internal Revenue Service Schedule E
11or Schedule 8825, annual reports, rent rolls, and certified or
12uncertified annual income and expense statements reflecting
13revenue and costs attributable to the property for the current
14and immediately preceding calendar year.
15    "Income producing property" means real property that
16generates income or is owned for the purpose of generating
17income, whether or not that property actually generates income
18in a particular year, but does not include:
19        (1) property with an assessed value of $100,000 or less
20    in the most recent assessment year;
21        (2) residential property containing 6 or fewer
22    dwelling units; or
23        (3) property assessed as a farm under Section 10-110 of
24    this Code.
 

 

 

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1    (35 ILCS 200/9-281 new)
2    Sec. 9-281. Income producing properties.
3    (a) In counties with 3,000,000 or more inhabitants,
4taxpayers of income producing property shall submit income and
5expense data annually to the chief county assessment officer on
6or before July 1 of each year. The chief county assessment
7officer may extend the time within which taxpayers are required
8to submit income and expense data under this Section for good
9cause shown in accordance with rules adopted under this
10Section. Taxpayers shall certify under oath in a signed
11notarized attestation that such information is true, accurate,
12and complete.
13    In counties with fewer than 3,000,000 inhabitants, the
14county board may provide by resolution that taxpayers of income
15producing property shall submit income and expense data
16annually to the chief county assessment officer on or before
17March 30 of each year. The chief county assessment officer may
18extend the time within which taxpayers are required to submit
19income and expense data under this Section for good cause shown
20in accordance with rules adopted under this Section. Taxpayers
21shall certify under oath in a signed notarized attestation that
22such information is true, accurate, and complete.
23    (b) The chief county assessment officer of (i) a county
24with 3,000,000 more inhabitants or (ii) a county that has
25adopted by resolution the provisions of subsection (a) shall
26establish rules regarding the submission of income and expense

 

 

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1data and the administration of this Section in the county. The
2income and expense data may be submitted in electronic form.
3    (c) If a taxpayer fails to submit income and expense data
4as required under this Section within the time prescribed, or
5within an extended period as permitted by the chief county
6assessment officer, the assessor shall send notice to the
7taxpayer of the failure to comply. If the taxpayer fails to
8submit the required data within 60 days after such notice is
9sent, the taxpayer shall pay a penalty to the chief county
10assessment officer of 2% of the prior year's assessed value for
11the property at issue. If the taxpayer fails to submit income
12and expense data as required under this Section within 120 days
13after such notice was sent, or within an extended period set by
14the assessor, the taxpayer shall pay to the chief county
15assessment officer an additional penalty of 2.5% of the prior
16year's assessed value for such property.
17    If a taxpayer fails to comply with this Section after
18receiving notice from the assessor, then the taxpayer is not
19permitted to appeal to the assessor the assessment of the
20income producing property for which it failed to produce income
21and expense data for the tax year in which no data was
22produced. The State's Attorney of the county in which the
23property is located shall have power to act on behalf of the
24people and the chief county assessment officer to initiate or
25enforce the provisions of this Section, including the power to
26compel by subpoena the production of taxpayer income and

 

 

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1expense data that is required to be produced under this
2Section.
3    (d) Penalties collected by the chief county assessment
4officer under this Section for a taxpayer's failure to timely
5submit income and expense data shall be collected in the same
6manner as other fees collected by the chief county assessment
7officer. Seventy-five percent of such revenue shall be
8deposited into a fund to support data modernization and
9implementation and enforcement of this Section, and 25% of the
10revenue shall be distributed to the county treasurer and
11deposited in the county's general fund of the county in which
12the property is located.
13    (e) Any personal data such as federal identification or
14social security numbers and income tax forms that are included
15in income and expense data produced under this Section shall be
16deemed private information and exempt from disclosure under the
17Freedom of Information Act. Non-personal income and expense
18data shall not be subject to disclosure in accordance with the
19Freedom of Information Act or other applicable law.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.