Illinois General Assembly - Full Text of SB2297
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Full Text of SB2297  102nd General Assembly

SB2297 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2297

 

Introduced 2/26/2021, by Sen. Ann Gillespie

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-260

    Amends the Property Tax Code. Provides that, in determining the fair cash value of a low-income housing project (Section 42 properties), the assessment officer must consider the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. Provides that the owner or owners of the low-income housing project must certify to the appropriate local assessment officer that the owner or owners qualify for the low-income housing tax credit under Section 42 of the Internal Revenue Code for the property.


LRB102 11489 HLH 16823 b

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

 

 

A BILL FOR

 

SB2297LRB102 11489 HLH 16823 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
5Section 10-260 as follows:
 
6    (35 ILCS 200/10-260)
7    Sec. 10-260. Low-income housing. In determining the fair
8cash value of property receiving benefits from the Low-Income
9Housing Tax Credit authorized by Section 42 of the Internal
10Revenue Code, 26 U.S.C. 42, emphasis shall be given to the
11income approach, except in those circumstances where another
12method is clearly more appropriate.
13    In counties with more than 3,000,000 inhabitants, to
14determine the fair cash value of any low-income housing
15project that qualifies for the Low-Income Housing Tax Credit
16under Section 42 of the Internal Revenue Code, in assessing
17the project, the assessment officer must consider the actual
18or projected net operating income attributable to the
19property, capitalized at rates for similarly encumbered
20Section 42 properties. The interest rate to be used in
21developing the capitalization rate shall be one that reflects
22the prevailing cost of capital for other types of similarly
23encumbered Section 42 properties in the geographic market in

 

 

SB2297- 2 -LRB102 11489 HLH 16823 b

1which the low-income housing project is located.
2    Beginning with the taxable year 2022, all low-income
3housing projects that qualify for the low-income housing tax
4credit under Section 42 of the Internal Revenue Code shall be
5assessed in accordance with this Section if the owner or
6owners of the low-income housing project certify to the
7appropriate local assessment officer that the owner or owners
8qualify for the low-income housing tax credit under Section 42
9of the Internal Revenue Code for the property.
10(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)