Bill Text: IL SB2287 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. In provisions concerning the Historic Residence Assessment Freeze Law, provides that the fair cash value of the property shall be based on the final determination by the assessment officer, board of review, Property Tax Appeal Board, or court. Provides that, after the expiration of the 8-year valuation period, if the current fair cash value is less than the adjusted base year valuation, then the assessment shall be based on the current fair cash value. Provides that those changes are declarative of existing law.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2023-12-08 - Rule 19(a) / Re-referred to Rules Committee [SB2287 Detail]

Download: Illinois-2023-SB2287-Engrossed.html

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AN ACT concerning revenue.
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 10-40 and 10-50 as follows:
(35 ILCS 200/10-40)
Sec. 10-40. Historic Residence Assessment Freeze Law;
definitions. This Section and Sections 10-45 through 10-85 may
be cited as the Historic Residence Assessment Freeze Law. As
used in this Section and Sections 10-45 through 10-85:
(a) "Director" means the Director of Historic
Preservation.
(b) "Approved county or municipal landmark ordinance"
means a county or municipal ordinance approved by the
Director.
(c) "Historic building" means an owner-occupied single
family residence or an owner-occupied multi-family
residence and the tract, lot or parcel upon which it is
located, or a building or buildings owned and operated as
a cooperative, if:
(1) individually listed on the National Register
of Historic Places or the Illinois Register of
Historic Places;

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(2) individually designated pursuant to an
approved county or municipal landmark ordinance; or
(3) within a district listed on the National
Register of Historic Places or designated pursuant to
an approved county or municipal landmark ordinance, if
the Director determines that the building is of
historic significance to the district in which it is
located.
Historic building does not mean an individual unit of a
cooperative.
(d) "Assessment officer" means the chief county
assessment officer.
(e) "Certificate of rehabilitation" means the
certificate issued by the Director upon the renovation,
restoration, preservation or rehabilitation of an historic
building under this Code.
(f) "Rehabilitation period" means the period of time
necessary to renovate, restore, preserve or rehabilitate
an historic building as determined by the Director.
(g) "Standards for rehabilitation" means the Secretary
of Interior's standards for rehabilitation as promulgated
by the U.S. Department of the Interior.
(h) "Fair cash value" means the fair cash value of the
historic building, as finally determined for that year by
the assessment officer, board of review, Property Tax
Appeal Board, or court on the basis of the assessment

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officer's property record card, representing the value of
the property prior to the commencement of rehabilitation
without consideration of any reduction reflecting value
during the rehabilitation work. The changes made to this
Section by this amendatory Act of the 103rd General
Assembly are declarative of existing law and shall not be
construed as a new enactment.
(i) "Base year valuation" means the fair cash value of
the historic building for the year in which the
rehabilitation period begins but prior to the commencement
of the rehabilitation and does not include any reduction
in value during the rehabilitation work.
(j) "Adjustment in value" means the difference for any
year between the then current fair cash value and the base
year valuation.
(k) "Eight-year valuation period" means the 8 years
from the date of the issuance of the certificate of
rehabilitation.
(l) "Adjustment valuation period" means the 4 years
following the 8 year valuation period.
(m) "Substantial rehabilitation" means interior or
exterior rehabilitation work that preserves the historic
building in a manner that significantly improves its
condition.
(n) "Approved local government" means a local
government that has been certified by the Director as:

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(1) enforcing appropriate legislation for the
designation of historic buildings;
(2) having established an adequate and qualified
historic review commission;
(3) maintaining a system for the survey and
inventory of historic properties;
(4) providing for adequate public participation in
the local historic preservation program; and
(5) maintaining a system for reviewing
applications under this Section in accordance with
rules and regulations promulgated by the Director.
(o) "Cooperative" means a building or buildings and
the tract, lot, or parcel on which the building or
buildings are located, if the building or buildings are
devoted to residential uses by the owners and fee title to
the land and building or buildings is owned by a
corporation or other legal entity in which the
shareholders or other co-owners each also have a long-term
proprietary lease or other long-term arrangement of
exclusive possession for a specific unit of occupancy
space located within the same building or buildings.
(p) "Owner", in the case of a cooperative, means the
Association.
(q) "Association", in the case of a cooperative, means
the entity responsible for the administration of a
cooperative, which entity may be incorporated or

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unincorporated, profit or nonprofit.
(r) "Owner-occupied single family residence" means a
residence in which the title holder of record (i) holds
fee simple ownership and (ii) occupies the property as
his, her, or their principal residence.
(s) "Owner-occupied multi-family residence" means
residential property comprised of not more than 6 living
units in which the title holder of record (i) holds fee
simple ownership and (ii) occupies one unit as his, her,
or their principal residence. The remaining units may be
leased.
The changes made to this Section by this amendatory Act of
the 91st General Assembly are declarative of existing law and
shall not be construed as a new enactment.
(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
(35 ILCS 200/10-50)
Sec. 10-50. Valuation after 8 year valuation period.
(a) For the 4 years after the expiration of the 8-year
valuation period, the valuation for purposes of computing the
assessed valuation shall not exceed the following be as
follows:
For the first year, the base year valuation plus 25%
of the adjustment in value.
For the second year, the base year valuation plus 50%
of the adjustment in value.

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For the third year, the base year valuation plus 75%
of the adjustment in value.
For the fourth year, the then current fair cash value.
(b) If the current fair cash value during the adjustment
valuation period is less than the base year valuation with the
applicable adjustment, the assessment shall be based on the
current fair cash value. The changes made to Section 10-50 by
this amendatory Act of the 103rd General Assembly are
declarative of existing law and shall not be construed as a new
enactment.
(Source: P.A. 82-1023; 88-455.)