SB3894 102ND GENERAL ASSEMBLY

LRB102 23854 HLH 33047 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3894

Introduced 1/21/2022, by Sen. Antonio Muñoz

SYNOPSIS AS INTRODUCED:

20 ILCS 2505/2505-805 new
35 ILCS 200/9-151 new
35 ILCS 200/12-36 new

Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Requires the Department of Revenue to conduct a property tax assessment process study. Amends the Property Tax Code. Limits the increase in the assessment of any commercial or residential property to 15% over the assessed value in the previous tax year and 40% in any 3-year period. Provides that the limitation shall apply in counties with 3,000,000 or more inhabitants and may apply in other counties by ordinance or resolution of the county board. Provides that, in counties with 3,000,000 or more inhabitants, whenever the chief county assessment officer of the county substantively changes the procedure by which he or she assesses properties, the chief county assessment officer shall hold a 60-day public comment period to receive input from members of the public before the change takes effect.

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 Department of Revenue Law of the Civil Administrative Code of Illinois is amended by adding Section 2505-805 as follows:

(20 ILCS 2505/2505-805 new)

Sec. 2505-805. Property tax assessment process study. The Department, in collaboration with the Department of Commerce and Economic Opportunity, shall conduct a study and analyze any information collected to determine the level of fairness and equity in the property tax assessment processes in the State. The study shall focus primarily on the following:

(1) conducting a comprehensive review of the classification system utilized by Cook County for purposes of assessing real property in Cook County compared with the rest of the State, including, but not limited to, a projection of the impact, if any, that the assessment of real property in Cook County would exhibit were the classification system to be phased-out and transitioned to a uniform level of assessment, and the impact, if any, that the Cook County classification system has or has had on economic development or job creation in the county;

(2) conducting a comprehensive review of State laws relating to the assessment of real property, including the appeal of assessments at the local and State level;

(3) conducting a comprehensive review of statewide assessment systems or computer assisted mass appraisal systems;

(4) conducting a comprehensive review of current exemptions available, the impact of these exemptions, and the administration or application of these exemptions;

(5) analyzing preferential assessments, including, but not limited to, the resultant economic impact from preferential assessments; and

(6) discussing the use of technology in the data collection, online review, CAMA analysis, and electronic appeal filing that may result in improved accountability and efficiency.

The Department shall consult with Illinois institutions of higher education having knowledge about the Illinois assessment processes in conducting the study under this Section. The Department shall complete a preliminary version of the report by May 31, 2023 and shall complete a final version of the report by July 1, 2023. The Department shall submit the final version of the report to the Governor and the General Assembly by July 1, 2023. A copy of both the preliminary version of the report and the final version of the report shall be made available to the public via electronic means. The Department may allow for the submission of public comments from individuals, organizations, or associations representing residential property owners, commercial property owners, or labor unions in Illinois. If the Department allows for the submission of public comments, the Department shall publish via electronic means any and all materials submitted to the Department.

This Section is repealed on December 31, 2023.

Section 10. The Property Tax Code is amended by adding Sections 9-151 and 12-36 as follows:

(35 ILCS 200/9-151 new)

Sec. 9-151. Limitation on increases of assessed value on commercial and residential property.

(a) In counties with 3,000,000 or more inhabitants, beginning with tax year 2022, the chief county assessment officer of the county shall not increase the assessed value of any commercial property or residential property by more than 15% over the assessed value in the previous tax year and shall not increase such assessment by more than 40% in any 3-year period. In counties with fewer than 3,000,000 inhabitants, the county board may provide, by ordinance or resolution, that the provisions of this Section are applicable to that county.

(b) The limitation set forth in this Section does not apply to the following:

(1) the assessed value of additions or improvements to real property in the year those additions or improvements are first subject to property tax;

(2) the assessed value of real property when a transfer of ownership has occurred in the year that the transfer is first subject to property tax;

(3) the assessed value of any real property that has been reclassified in the year or years following the reclassification of the property;

(4) when the assessed value increase is due to the expiration of an incentive classification;

(5) the assessed value of real property that has been granted a vacancy reduction in the year or years immediately preceding the year a commercial property becomes subject to the provisions of this Section; or

(6) the assessed value of commercial property when there is a technical error in the assessment that is corrected by the chief county assessment officer of the county in the year a commercial property becomes subject to the provisions of this Section.

(c) The limitation provided for under this Section must be calculated on the land and the improvements as a whole.

(d) Nothing in this Section shall prevent a chief county assessment officer from reclassifying property as necessary.

(e) For purposes of this Section:

"Commercial property" means real property that is not owner-occupied and is owned for the purpose of generating income from the property itself, whether or not such property actually generates income in a particular year.

"Residential property" means real property that is occupied by its owner or owners as his, hers, or their principal dwelling place, or that is a leasehold interest on which a single family residence is situated, which is occupied as a residence by a person who has an ownership interest therein, legal or equitable or as a lessee, and on which the person is liable for the payment of property taxes.

(35 ILCS 200/12-36 new)

Sec. 12-36. Public comment period for substantive assessment process change. Beginning in tax year 2022, in counties with 3,000,000 or more inhabitants, whenever the chief county assessment officer of the county substantively changes the procedure by which he or she assesses properties, the chief county assessment officer shall hold a 60-day public comment period to receive input from members of the public before the change takes effect.