Bill Text: IL SB2297 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Reinserts the provisions of the introduced bill. Makes changes concerning the valuation of low-income housing projects with 6 units or less to provide that the assessment officer, prior to finalizing and certifying assessments to the Board of Review, shall reassess the building considering the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. Provides that the assessment provisions of the introduced bill apply during a general reassessment year or at such other time that a property is reassessed.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-05-21 - Rule 3-9(a) / Re-referred to Assignments [SB2297 Detail]
Download: Illinois-2021-SB2297-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||||||||||||||||||||
5 | Section 10-260 as follows:
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6 | (35 ILCS 200/10-260)
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7 | Sec. 10-260. Low-income housing. In determining the fair
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8 | cash value of property receiving benefits from the Low-Income | ||||||||||||||||||||||||
9 | Housing Tax
Credit authorized by Section 42 of the Internal | ||||||||||||||||||||||||
10 | Revenue Code, 26 U.S.C. 42,
emphasis shall be given to the | ||||||||||||||||||||||||
11 | income approach , except in those circumstances
where another | ||||||||||||||||||||||||
12 | method is clearly more appropriate .
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13 | In counties with more than 3,000,000 inhabitants, to | ||||||||||||||||||||||||
14 | determine the fair cash value of any low-income housing | ||||||||||||||||||||||||
15 | project that qualifies for the Low-Income Housing Tax Credit | ||||||||||||||||||||||||
16 | under Section 42 of the Internal Revenue Code, in assessing | ||||||||||||||||||||||||
17 | the project, the assessment officer must consider the actual | ||||||||||||||||||||||||
18 | or projected net operating income attributable to the | ||||||||||||||||||||||||
19 | property, capitalized at rates for similarly encumbered | ||||||||||||||||||||||||
20 | Section 42 properties. The interest rate to be used in | ||||||||||||||||||||||||
21 | developing the capitalization rate shall be one that reflects | ||||||||||||||||||||||||
22 | the prevailing cost of capital for other types of similarly | ||||||||||||||||||||||||
23 | encumbered Section 42 properties in the geographic market in |
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1 | which the low-income housing project is located. | ||||||
2 | Beginning with the taxable year 2022, all low-income | ||||||
3 | housing projects that qualify for the low-income housing tax | ||||||
4 | credit under Section 42 of the Internal Revenue Code shall be | ||||||
5 | assessed in accordance with this Section if the owner or | ||||||
6 | owners of the low-income housing project certify to the | ||||||
7 | appropriate local assessment officer that the owner or owners | ||||||
8 | qualify for the low-income housing tax credit under Section 42 | ||||||
9 | of the Internal Revenue Code for the property. | ||||||
10 | (Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)
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