99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1558

 

Introduced , by Rep. Chad Hays

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-700

    Amends the Property Tax Code. In a Section concerning the valuation of commercial or industrial property that has been rebuilt following a tornado disaster, provides for a partial reduction in equalized assessed value if the square footage of the rebuilt structure exceeds 110% of the square footage of the original structure (currently, property is not entitled to a reduction if the square footage of the rebuilt structure exceeds 110% of the square footage of the original structure). 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
5Section 10-700 as follows:
 
6    (35 ILCS 200/10-700)
7    Sec. 10-700. Qualified commercial and industrial property;
8tornado disaster. Notwithstanding any other provision of law,
9each qualified parcel of commercial or industrial property
10owned and used by a small business shall be valued at the
11lesser of (i) its modified equalized assessed value or (ii) 33
121/3% of its fair cash value or, in the case of property located
13in a county that classifies property for purposes of taxation
14in accordance with Section 4 of Article IX of the Constitution,
15the percentage of fair cash value as required by county
16ordinance. The method of valuation under this Section shall
17continue until there is a change in use or ownership of the
18property or until the fifteenth taxable year after the tornado
19disaster occurs, whichever occurs first. In order to qualify
20for valuation under this Section, the structure must be rebuilt
21within 2 years after the date of the tornado disaster. If , and
22the square footage of the rebuilt structure does not exceed may
23not be more than 110% of the square footage of the original

 

 

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1structure as it existed immediately prior to the tornado
2disaster, then the property is entitled to 100% of the
3reduction in equalized assessed value created under this
4Section. If the square footage of the rebuilt structure exceeds
5110% of the square footage of the original structure as it
6existed immediately prior to the tornado disaster, then the
7amount of the reduction in equalized assessed value shall be
8modified by a multiplier the numerator of which is 110% of the
9square footage of the original structure and the denominator of
10which is the total square footage of the rebuilt structure.
11    "Base year" means the taxable year prior to the taxable
12year in which the tornado disaster occurred.
13    "Modified equalized assessed value" means:
14        (1) in the first taxable year after the tornado
15    disaster occurs, the equalized assessed value of the
16    property for the base year; and
17        (2) in the second taxable year after the tornado
18    disaster occurs and thereafter, the modified equalized
19    assessed value of the property for the previous taxable
20    year, increased by 4%.
21    "Tornado disaster" means an occurrence of widespread or
22severe damage or loss of property resulting from a tornado or
23combination of tornadoes that has been proclaimed as a natural
24disaster by the Governor or the President of the United States.
25    "Qualified parcel of property" means property that (i) is
26owned and used exclusively for commercial or industrial

 

 

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1purposes by a small business and (ii) has been rebuilt
2following a tornado disaster occurring in taxable year 2013 or
3any taxable year thereafter.
4    "Small business" means a business that employs fewer than
550 full-time employees.
6(Source: P.A. 98-702, eff. 7-7-14.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.