Public Act 93-0533
HB0860 Enrolled LRB093 05730 SJM 05823 b
AN ACT in relation to taxes.
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 10-235, 10-245, and 10-250 as follows:
(35 ILCS 200/10-235)
Sec. 10-235. Section 515 Low-income housing project
valuation policy; intent. It is the policy of this State that
low-income housing projects that qualify for the low-income
housing tax credit under Section 42 of the Internal Revenue
Code under Section 515 of the federal Housing Act shall be
valued at 33 and one-third percent of the fair market value
of their economic productivity to the owners of the projects
to help insure that their valuation for property taxation
does not result in taxes so high that rent levels must be
raised to cover this project expense, which can cause excess
vacancies, project loan defaults, and eventual loss of rental
housing facilities for those most in need of them, low-income
families and the elderly. It is the intent of this State
that the valuation required by this Division is the closest
representation of cash value required by law and is the
method established as proper and fair.
(Source: P.A. 91-651, eff. 1-1-00; 92-16, eff. 6-28-01.)
(35 ILCS 200/10-245)
Sec. 10-245. Method of valuation of Section 515
low-income housing projects. Notwithstanding Section 1-55
and except in counties with a population of more than 200,000
that classify property for the purposes of taxation, to
determine 33 and one-third percent of the fair cash value of
any Section 515 low-income housing project that qualifies for
the low-income housing tax credit under Section 42 of the
Internal Revenue Code, in assessing the project, local
assessment officers must consider the actual or probable net
operating income attributable to the project, using a vacancy
rate of not more than 5%, capitalized at normal market rates.
The interest rate to be used in developing the normal market
value capitalization rate shall be one that reflects the
prevailing cost of cash for other types of commercial real
estate in the geographic market in which the low-income
housing Section 515 project is located.
(Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)
(35 ILCS 200/10-250)
Sec. 10-250. Certification procedure and effective date
of implementation.
(a) After (i) an application for a Section 515
low-income housing project certificate is filed with the
State Director of the United States Department of Agriculture
Rural Development Office in a manner and form prescribed in
regulations issued by the office and (ii) the certificate is
issued certifying that the housing is a Section 515
low-income housing project as defined in Section 2 of this
Act, the certificate must be presented to the appropriate
local assessment officer to receive the property assessment
valuation under this Division. The local assessment officer
must assess the property according to this Act. Beginning on
January 1, 2000 and through taxable year 2003, all certified
Section 515 low-income housing projects shall be assessed in
accordance with Section 10-245.
(b) Beginning with taxable year 2004, all low-income
housing projects that qualify for the low-income housing tax
credit under Section 42 of the Internal Revenue Code shall be
assessed in accordance with Section 10-245 if the owner or
owners of the low-income housing project certify to the
appropriate local assessment officer that the owner or owner
that qualifies for the low-income housing tax credit under
Section 42 of the Internal Revenue Code for the property.
(Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)
Section 99. Effective date. This Act takes effect on
January 1, 2004.