SB1321 103RD GENERAL ASSEMBLY

LRB103 05702 HLH 50721 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1321

Introduced 2/6/2023, by Sen. Celina Villanueva

SYNOPSIS AS INTRODUCED:

35 ILCS 200/9-285 new

Amends the Property Tax Code. Provides that owners of income-producing properties shall file physical descriptions of their properties with the chief county assessor in the form and format determined by the chief county assessor. Effective immediately.

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 adding Section 9-285 as follows:

(35 ILCS 200/9-285 new)

Sec. 9-285. Real property descriptions.

(a) This Section applies to all counties with 3,000,000 or more inhabitants and to all counties in which the county board provides, by ordinance or resolution, that owners of income-producing properties must comply with subsection (b).

(b) Owners of income-producing properties shall file physical descriptions of their properties with the chief county assessor, in the form and format determined by the chief county assessor, within 120 days after:

(1) the effective date of this amendatory Act of the 103rd General Assembly, for counties with 3,000,000 or more inhabitants; or

(2) the effective date of the ordinance or resolution adopted by the county board under subsection (a), for any other counties to which this Section applies.

After making the initial filing under subsection (b), a property owner shall also update the filing within 120 days after any material change in the physical description.

(c) If the owner fails to submit the required physical description or fails to adequately explain why no submission is required, the owner shall pay a penalty to the chief county assessment officer of up to 0.025% of the prior year's market value, as indicated by the most recent certified assessed value for the property at issue, but in no case shall the owner be required to pay more than a maximum penalty of $1,000 per property. The chief county assessment officer shall review all submissions and determine whether the owner provided sufficient evidence that he or she was not required to report a property description or that the submission complies based on available documentation.

If a party is dissatisfied with a decision of the chief county assessment officer, the party may request review of that decision. Upon such a request, at least 30 days' notice shall be provided to the party of a hearing to be conducted by a hearing officer designated by the chief county assessment officer. If a party is dissatisfied with a hearing officer's decision, the party may appeal that decision to the circuit court of the county in which the property is located as a final administrative decision under the Administrative Review Law. If a party is unsuccessful at hearing, the penalty imposed under this Section shall bear interest at 0.05% per month thereafter, beginning 21 days after the date of the decision or 21 days after the date of the issuance of a final decision on administrative review.

(d) Definitions. As used in this Section:

"Income-producing property" means property that is not owner-occupied, as defined in this Section, and that is owned for the purpose of generating income from the property itself, regardless of whether the property actually generates income in a particular year. "Income-producing property" does not include:

(1) property with a market value of $500,000 or less in the most recent assessment year for which an assessment is certified exclusive of any adjustments to assessed value by a board of review, the Property Tax Appeal Board, or the circuit court;

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

(3) property assessed under Article 10 of this Code and stadiums that are not qualified property under Section 10-215 that have a seating capacity of 20,000 or more and host major professional sporting events;

(4) property that is assessed by the Department under Article 11 of this Code;

(5) property that is owned or leased by a hospital licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, including any hospital affiliate that directly or indirectly controls, is controlled by, or is under common control with a hospital; or

(6) property that is owned or leased by a facility licensed under the Nursing Home Care Act that is an intermediate or skilled facility.

"Net rentable area" means the square footage of an improvement that may be leased or rented to tenants, excluding common areas such as elevators, stairways, and atriums.

"Owner-occupied" means real property that is used or occupied exclusively by a record owner or related entity, or real property having 80% or more of its net rentable area occupied or held for future use by the record owner of the property or a related person or entity as described in subsection (b) of Section 267 of the Internal Revenue Code. If more than 20% of the net rentable area of a property is subject to an existing lease or is subject to a short-term rental by an unrelated entity, the property is not considered owner-occupied for purposes of this Section.

"Physical description" means the land size and, for each individual development on the parcel, information about the construction type, year built, total development size, electrical supply capacity in megawatts, cooling and heating system capacity, floor load bearing capacity, number of buildings, number of stories in each building, and parking capacity.

For multi-family residential properties of 6 or more units, "physical description" also includes the size and use of the basement area, the number of studio, 1-bedroom, 2-bedroom, 3-bedroom, and larger units; the pool area (if any); the exercise area (if any); lower level uses; and the number of units, if any, that are enrolled in any government-administered affordable housing program.

For office properties, "physical description" also includes the net rentable area, the size and use of the basement area, lower level uses, ceiling height, whether or not each unit is used for medical services, and whether or not buildings on the property share a central plant.

For retail properties, "physical description" also includes the net rentable area, the size and uses of the basement area, the size and use of lower levels, the ceiling height, and the total customer capacity.

For industrial properties, "physical description" also includes the size and location of office area or areas, ceiling height, the size and location of docks, the number and size of loading bay doors, and the primary tenant or business entity.

For hospitality properties, "physical description" also includes the size of any conference area, the size and use of the basement area, the room count, the suite count, the size and location of lounge areas, the size and location of restaurant areas, franchise affiliation, the size and location of any pool area, and lower level uses.

"Property" has the meaning set forth in Section 1-130 of this Code and includes contiguous parcels or property index numbers that comprise one functional property location.

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