97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5776

 

Introduced 2/16/2012, by Rep. Tom Cross

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-30
35 ILCS 200/10-31

    Amends the Property Tax Code. Provides that, through December 31, 2014, the assessed valuation of certain platted and subdivided property shall be determined based on the last assessed value assigned to the property prior to its last transfer or conveyance, not including the following transfers and conveyances: (i) the transfer to a holder of a mortgage pursuant to a mortgage foreclosure proceeding or pursuant to a transfer in lieu of foreclosure; (ii) the transfer to an agent or affiliate of a mortgage holder for the purposes of property management following a mortgage foreclosure proceeding or a transfer in lieu of foreclosure; or (iii) an initial sale of any platted lot. Provides that, beginning on January 1, 2015 (instead of January 1, 2012), the assessed valuation of that property shall be determined each year based on the estimated price the property would bring at a fair voluntary sale for use by the buyer for the same purposes for which the property was used when last assessed prior to its platting. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5776LRB097 20498 HLH 66049 b

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 10-30 and 10-31 as follows:
 
6    (35 ILCS 200/10-30)
7    Sec. 10-30. Subdivisions; counties of less than 3,000,000.
8    (a) In counties with less than 3,000,000 inhabitants, the
9platting and subdivision of property into separate lots and the
10development of the subdivided property with streets,
11sidewalks, curbs, gutters, sewer, water and utility lines shall
12not increase the assessed valuation of all or any part of the
13property, if:
14        (1) The property is platted and subdivided in
15    accordance with the Plat Act;
16        (2) The platting occurs after January 1, 1978;
17        (3) At the time of platting the property is in excess
18    of 5 acres; and
19        (4) At the time of platting the property is vacant or
20    used as a farm as defined in Section 1-60.
21    (b) Except as provided in subsection (c) of this Section,
22the assessed valuation of property so platted and subdivided
23shall be determined each year based on the estimated price the

 

 

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1property would bring at a fair voluntary sale for use by the
2buyer for the same purposes for which the property was used
3when last assessed prior to its platting.
4    (c) Upon completion of a habitable structure on any lot of
5subdivided property, or upon the use of any lot, either alone
6or in conjunction with any contiguous property, for any
7business, commercial or residential purpose, or upon the
8initial sale of any platted lot, including a platted lot which
9is vacant: (i) the provisions of subsection (b) of this Section
10shall no longer apply in determining the assessed valuation of
11the lot, (ii) each lot shall be assessed without regard to any
12provision of this Section, and (iii) the assessed valuation of
13the remaining property, when next determined, shall be reduced
14proportionately to reflect the exclusion of the property that
15no longer qualifies for valuation under this Section. Holding
16or offering a platted lot for initial sale shall not constitute
17a use of the lot for business, commercial or residential
18purposes unless a habitable structure is situated on the lot or
19unless the lot is otherwise used for a business, commercial or
20residential purpose.
21    (d) This Section applies before the effective date of this
22amendatory Act of the 96th General Assembly and then applies
23again beginning January 1, 2015 January 1, 2012.
24(Source: P.A. 95-135, eff. 1-1-08; 96-480, eff. 8-14-09.)
 
25    (35 ILCS 200/10-31)

 

 

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1    Sec. 10-31. Subdivisions; counties of less than 3,000,000.
2    (a) In counties with less than 3,000,000 inhabitants, the
3platting and subdivision of property into separate lots and the
4development of the subdivided property with streets,
5sidewalks, curbs, gutters, sewer, water and utility lines shall
6not increase the assessed valuation of all or any part of the
7property, if:
8        (1) The property is platted and subdivided in
9    accordance with the Plat Act;
10        (2) The platting occurs after January 1, 1978;
11        (3) At the time of platting the property is in excess
12    of 5 acres; and
13        (4) At the time of platting or replatting the property
14    is vacant or used as a farm as defined in Section 1-60.
15    (b) Except as provided in subsection (c) of this Section,
16the assessed valuation of property so platted and subdivided
17shall be determined based on the assessed value assigned to the
18property when last assessed prior to its last transfer or
19conveyance. The following transfers and conveyances, used
20individually or in any combination, do not disqualify a lot
21from the provision of this subsection (b):
22        (1) the transfer to a holder of a mortgage, as defined
23    in Section 15-1207 of the Code of Civil Procedure, pursuant
24    to a mortgage foreclosure proceeding or pursuant to a
25    transfer in lieu of foreclosure;
26        (2) the transfer to an agent or affiliate of a mortgage

 

 

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1    holder for the purposes of property management following a
2    mortgage foreclosure proceeding or a transfer in lieu of
3    foreclosure; or
4        (3) an initial sale of any platted lot, including a lot
5    that is vacant.
6    When a lot is transferred to a mortgage holder or its agent
7or affiliate, as referenced in this subsection (b), the initial
8sale shall mean the first transfer or conveyance of the
9property to an entity that is not the holder of the mortgage or
10its agent or affiliate. An initial sale of any platted lot,
11including a lot that is vacant, or a transfer to a holder of a
12mortgage, as defined in Section 15-1207 of the Code of Civil
13Procedure, pursuant to a mortgage foreclosure proceeding or
14pursuant to a transfer in lieu of foreclosure, does not
15disqualify that lot from the provisions of this subsection (b).
16    (c) Upon completion of a habitable structure on any lot of
17subdivided property, or upon the use of any lot, either alone
18or in conjunction with any contiguous property, for any
19business, commercial or residential purpose: (i) the
20provisions of subsection (b) of this Section shall no longer
21apply in determining the assessed valuation of the lot, (ii)
22each lot shall be assessed without regard to any provision of
23this Section, and (iii) the assessed valuation of the remaining
24property, when next determined, shall be reduced
25proportionately to reflect the exclusion of the property that
26no longer qualifies for valuation under this Section. Holding

 

 

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1or offering a platted lot for initial sale shall not constitute
2a use of the lot for business, commercial or residential
3purposes unless a habitable structure is situated on the lot or
4unless the lot is otherwise used for a business, commercial or
5residential purpose. The replatting of a subdivision or portion
6of a subdivision does not disqualify the replatted lots from
7the provisions of subsection (b).
8    (d) This Section applies on and after the effective date of
9this amendatory Act of the 96th General Assembly and through
10December 31, 2014 December 31, 2011.
11(Source: P.A. 96-480, eff. 8-14-09.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.