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| Public Act 093-0755 |
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AN ACT concerning taxes.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing | ||||
Sections 10-235, 10-245, and 10-250 as follows:
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(35 ILCS 200/10-235)
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Sec. 10-235. Low-income housing project valuation policy;
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intent. It is the policy of this State that low-income housing | ||||
projects
developed under Section 515 of the federal Housing Act | ||||
or that qualify for the low-income housing tax credit under | ||||
Section 42 of the
Internal Revenue Code 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
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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.
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(Source: P.A. 92-16, eff. 6-28-01; 93-533, eff. 1-1-04.)
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(35 ILCS 200/10-245)
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Sec. 10-245. Method of valuation of 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 low-income housing
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project developed under the Section 515 program or 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 | ||
project is located.
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(Source: P.A. 93-533, eff. 1-1-04.)
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(35 ILCS 200/10-250)
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Sec. 10-250. Certification procedure and effective date of
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implementation.
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(a) After (i) an application for a Section 515 low-income | ||
housing project
certificate is filed with the State Director of
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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
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to this Act.
Beginning on January 1, 2000 and through taxable | ||
year 2003, all certified
Section 515 low-income housing
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projects shall be assessed in accordance with Section 10-245.
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(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
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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 owners | ||
qualify
owner that qualifies for the low-income housing tax | ||
credit under Section 42 of the
Internal Revenue Code for the | ||
property.
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(Source: P.A. 93-533, eff. 1-1-04.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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