Proposed Property Tax Changes for Illinois

Illinois HB 0860 has been introduced to amend the Illinois Property Tax Code (“Code”). It provides that, in counties with 3,000,000 or more inhabitants (Cook County), taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before July 1 of each year. In counties of fewer than 3,000,000 inhabitants (the rest of the state), the county board may provide by ordinance or resolution that taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before March 31 of each year. HB 0860’s definition of income-producing property would exclude the following:

1. Property with a market value of $500,000 or less in the most recent assessment year for which an assessment is certified exclusive of any adjustments to assessed value by a board of review, the Property Tax Appeal Board, or the circuit court.
2. Residential property containing six or fewer dwelling units.
3. Property assessed under Article 10 of the Code and stadiums that are not qualified property under Section 10-215, which have a seating capacity of 20,000 or more and host major professional sporting events.
4. Property that is assessed by the department under Article 11 of the Code.
5. Property that is owned or leased by a hospital licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, including any hospital affiliate that directly or indirectly controls, is controlled by, or is under common control with a hospital.
6. Property that is owned or leased by a facility licensed under the Nursing Home Care Act, which is an intermediate or skilled facility.

There is a penalty provision for noncompliance with HB 0860. If a taxpayer fails to submit income and expense data as required, the taxpayer shall pay a penalty to the chief county assessor office of .025% of the prior year’s market value as indicated by the most recent certified assessed value. This penalty will not exceed $10,000 per property.

HB 0860 has been rereferred to the Illinois House Rules Committee. The Ryan experts will continue to monitor the progress of this bill and are available to answer any questions.

TECHNICAL INFORMATION CONTACT:

Shawn King
Principal
Ryan
312.980.1127
shawn.king@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.