HB2217 101ST GENERAL ASSEMBLY

LRB101 05238 HLH 50251 b

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.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 changing Sections 9-155 and 9-160 and by adding Division 6 to Article 9 as follows:

(35 ILCS 200/9-155)

Sec. 9-155. Valuation in general assessment years.

(a) On or before June 1 in each general assessment year in all counties with less than 3,000,000 inhabitants, and as soon as he or she reasonably can in each general assessment year in counties with 3,000,000 or more inhabitants, or if any such county is divided into assessment districts as provided in Sections 9-215 through 9-225, as soon as he or she reasonably can in each general assessment year in those districts, the assessor, in person or by deputy, shall actually view and determine as near as practicable the value of each property listed for taxation as of January 1 of that year, or as provided in Section 9-180, and assess the property at 33 1/3% of its fair cash value, or in accordance with Sections 10-110 through 10-140 and 10-170 through 10-200, or in accordance with a county ordinance adopted under Section 4 of Article IX of the Constitution of Illinois. The assessor or deputy shall set down, in the books furnished for that purpose the assessed valuation of properties in one column, the assessed value of improvements in another, and the total valuation in a separate column.

(b) When determining the value of property for assessment purposes under this Code, 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 submitted under this Code, sales data, property characteristics data, construction cost data, appraisals, and other valuation information pertaining to the property concerned and similar types of properties.

(Source: P.A. 86-1481; 87-1189; 88-455.)

(35 ILCS 200/9-160)

Sec. 9-160. Valuation in years other than general assessment years.

(a) On or before June 1 in each year other than the general assessment year, in all counties with less than 3,000,000 inhabitants, and as soon as he or she reasonably can in counties with 3,000,000 or more inhabitants, the assessor shall list and assess all property which becomes taxable and which is not upon the general assessment, and also make and return a list of all new or added buildings, structures or other improvements of any kind, the value of which had not been previously added to or included in the valuation of the property on which such improvements have been made, specifying the property on which each of the improvements has been made, the kind of improvement and the value which, in his or her opinion, has been added to the property by the improvements. The assessment shall also include or exclude, on a proportionate basis in accordance with the provisions of Section 9-180, all new or added buildings, structures or other improvements, the value of which was not included in the valuation of the property for that year, and all improvements which were destroyed or removed. In case of the destruction or injury by fire, flood, cyclone, storm or otherwise, or removal of any structures of any kind, or of the destruction of or any injury to orchard timber, ornamental trees or groves, the value of which has been included in any former valuation of the property, the assessor shall determine as near as practicable how much the value of the property has been diminished, and make return thereof.

(b) Beginning January 1, 1996, the authority within a unit of local government that is responsible for issuing building or occupancy permits shall notify the chief county assessment officer, by December 31 of the assessment year, when a full or partial occupancy permit has been issued for a parcel of real property. The chief county assessment officer shall include in the assessment of the property for the current year the proportionate value of new or added improvements on that property from the date the occupancy permit was issued or from the date the new or added improvement was inhabitable and fit for occupancy or for intended customary use until December 31 of that year. If the chief county assessment officer has already certified the books for the year, the board of review or interim board of review shall assess the new or added improvements on a proportionate basis for the year in which the occupancy permit was issued or the new or added improvement was inhabitable and fit for occupancy or for intended customary use. The proportionate value of the new or added improvements may be assessed by the board of review or interim board of review as omitted property pursuant to Sections 9-265, 9-270, 16-50 and 16-140 in a subsequent year on a proportionate basis for the year in which the occupancy permit was issued or the new or added improvement was inhabitable and fit for occupancy or for intended customary use if it was not assessed in that year.

(c) When determining the value of property for assessment purposes under this Code, 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 submitted under this Act, sales data, property characteristics data, construction cost data, appraisals, and other valuation information pertaining to the property concerned and similar types of properties.

(Source: P.A. 91-486, eff. 1-1-00.)

(35 ILCS 200/Art. 9 Div. 6 heading new)

Division 6. Income Producing Property

(35 ILCS 200/9-280 new)

Sec. 9-280. Definitions. As used in this Article:

"Income and expense data" means annual reports or documents created in the ordinary course of business documenting income generated from and expenses associated with income producing property. The term "income and expense data" includes, but is not limited to, federal income tax returns related to income producing property, such as Internal Revenue Service Schedule E or Schedule 8825, annual reports, rent rolls, and certified or uncertified annual income and expense statements reflecting revenue and costs attributable to the property for the current and immediately preceding calendar year.

"Income producing property" means real property that generates income or is owned for the purpose of generating income, whether or not that property actually generates income in a particular year, but does not include:

(1) property with an assessed value of $100,000 or less in the most recent assessment year;

(2) residential property containing 6 or fewer dwelling units; or

(3) property assessed as a farm under Section 10-110 of this Code.

(35 ILCS 200/9-281 new)

Sec. 9-281. Income producing properties.

(a) In counties with 3,000,000 or more inhabitants, taxpayers of income producing property shall submit income and expense data annually to the chief county assessment officer on or before July 1 of each year. The chief county assessment officer may extend the time within which taxpayers are required to submit income and expense data under this Section for good cause shown in accordance with rules adopted under this Section. Taxpayers shall certify under oath in a signed notarized attestation that such information is true, accurate, and complete.

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 on or before March 30 of each year. The chief county assessment officer may extend the time within which taxpayers are required to submit income and expense data under this Section for good cause shown in accordance with rules adopted under this Section. Taxpayers shall certify under oath in a signed notarized attestation that such information is true, accurate, and complete.

(b) The chief county assessment officer of (i) a county with 3,000,000 more inhabitants or (ii) a county that has adopted by resolution the provisions of subsection (a) shall establish rules regarding the submission of income and expense data and the administration of this Section in the county. The income and expense data may be submitted in electronic form.

(c) If a taxpayer fails to submit income and expense data as required under this Section within the time prescribed, or within an extended period as permitted by the chief county assessment officer, the assessor shall send notice to the taxpayer of the failure to comply. If the taxpayer fails to submit the required data within 60 days after such notice is sent, the taxpayer shall pay a penalty to the chief county assessment officer of 2% of the prior year's assessed value for the property at issue. If the taxpayer fails to submit income and expense data as required under this Section within 120 days after such notice was sent, or within an extended period set by the assessor, the taxpayer shall pay to the chief county assessment officer an additional penalty of 2.5% of the prior year's assessed value for such property.

If a taxpayer fails to comply with this Section after receiving notice from the assessor, then the taxpayer is not permitted to appeal to the assessor the assessment of the income producing property for which it failed to produce income and expense data for the tax year in which no data was produced. The State's Attorney of the county in which the property is located shall have power to act on behalf of the people and the chief county assessment officer to initiate or enforce the provisions of this Section, including the power to compel by subpoena the production of taxpayer income and expense data that is required to be produced under this Section.

(d) Penalties collected by the chief county assessment officer under this Section for a taxpayer's failure to timely submit income and expense data shall be collected in the same manner as other fees collected by the chief county assessment officer. Seventy-five percent of such revenue shall be deposited into a fund to support data modernization and implementation and enforcement of this Section, and 25% of the revenue shall be distributed to the county treasurer and deposited in the county's general fund of the county in which the property is located.

(e) Any personal data such as federal identification or social security numbers and income tax forms that are included in income and expense data produced under this Section shall be deemed private information and exempt from disclosure under the Freedom of Information Act. Non-personal income and expense data shall not be subject to disclosure in accordance with the Freedom of Information Act or other applicable law.

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