HB6322 98TH GENERAL ASSEMBLY

LRB098 22072 HLH 60943 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB6322

Introduced , by Rep. Chad Hays

SYNOPSIS AS INTRODUCED:

35 ILCS 200/10-700

Amends the Property Tax Code. In a Section concerning the valuation of commercial or industrial property that has been rebuilt following a tornado disaster, provides for a partial reduction in equalized assessed value if the square footage of the rebuilt structure exceeds 110% of the square footage of the original structure (currently, property is not entitled to a reduction if the square footage of the rebuilt structure exceeds 110% of the square footage of the original structure). Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 Property Tax Code is amended by changing Section 10-700 as follows:

(35 ILCS 200/10-700)

Sec. 10-700. Qualified commercial and industrial property; tornado disaster. Notwithstanding any other provision of law, each qualified parcel of commercial or industrial property owned and used by a small business shall be valued at the lesser of (i) its modified equalized assessed value or (ii) 33 1/3% of its fair cash value or, in the case of property located in a county that classifies property for purposes of taxation in accordance with Section 4 of Article IX of the Constitution, the percentage of fair cash value as required by county ordinance. The method of valuation under this Section shall continue until there is a change in use or ownership of the property or until the fifteenth taxable year after the tornado disaster occurs, whichever occurs first. In order to qualify for valuation under this Section, the structure must be rebuilt within 2 years after the date of the tornado disaster. If , and the square footage of the rebuilt structure does not exceed may not be more than 110% of the square footage of the original structure as it existed immediately prior to the tornado disaster, then the property is entitled to 100% of the reduction in equalized assessed value created under this Section. If the square footage of the rebuilt structure exceeds 110% of the square footage of the original structure as it existed immediately prior to the tornado disaster, then the amount of the reduction in equalized assessed value shall be modified by a multiplier the numerator of which is 110% of the square footage of the original structure and the denominator of which is the total square footage of the rebuilt structure.

"Base year" means the taxable year prior to the taxable year in which the tornado disaster occurred.

"Modified equalized assessed value" means:

(1) in the first taxable year after the tornado disaster occurs, the equalized assessed value of the property for the base year; and

(2) in the second taxable year after the tornado disaster occurs and thereafter, the modified equalized assessed value of the property for the previous taxable year, increased by 4%.

"Tornado disaster" means an occurrence of widespread or severe damage or loss of property resulting from a tornado or combination of tornadoes that has been proclaimed as a natural disaster by the Governor or the President of the United States.

"Qualified parcel of property" means property that (i) is owned and used exclusively for commercial or industrial purposes by a small business and (ii) has been rebuilt following a tornado disaster occurring in taxable year 2013 or any taxable year thereafter.

"Small business" means a business that employs fewer than 50 full-time employees.

(Source: P.A. 98-702, eff. 7-7-14.)

Section 99. Effective date. This Act takes effect upon becoming law.