96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2795


 
Introduced 1/28/2010, by Sen. Pamela J. Althoff
 
SYNOPSIS AS INTRODUCED:
 		





 


  



35 ILCS 200/10-30





35 ILCS 200/10-31











     Amends the Property Tax Code. Exempts property that is part of a special service area in which taxes are extended solely upon the value of the land from provisions of the Code concerning the assessment of subdivisions by not including the value of infrastructure improvements. Effective immediately.
  















LRB096 19617 HLH 35012 b

















FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






SB2795

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1
    AN ACT concerning revenue.
  
 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:
  
 
 
4
    Section 5. The Property Tax Code is amended  by changing 
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Sections 10-30 and 10-31 as follows:
 



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    (35 ILCS 200/10-30)


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    Sec. 10-30. Subdivisions; counties of less than 3,000,000. 

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    (a) In counties with less than 3,000,000 inhabitants, the 
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platting and
subdivision of property into separate lots and the 
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development of the
subdivided property with streets, 
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sidewalks, curbs, gutters, sewer, water and
utility lines shall 
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not increase the assessed valuation of all or any part of
the 
13
property, if:


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        (1) The property is platted and subdivided in 
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    accordance with the Plat
Act;


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        (2) The platting occurs after January 1, 1978;



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        (3) At the time of platting the property is in excess 
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    of 5 acres; and


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        (4) At the time of platting the property is vacant or 
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    used as a farm as
defined in Section 1-60. 
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    This Section does not apply to any property that is part of 
22
a special service area created under the Special Service Area 
23
Tax Law in which the ad valorem taxes in the special service 
 


 






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1
area are extended solely upon the equalized assessed value of 
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the land in the special service area, without regard to 
3
improvements (as authorized by the third paragraph of Section 
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27-75 of the Special Service Area Tax Law). 

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    (b) Except as provided in subsection (c) of this Section, 
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the assessed
valuation of property so platted and subdivided 
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shall be determined each year
based on the estimated price the 
8
property would bring at a fair voluntary sale
for use by the 
9
buyer for the same purposes for which the property was used 
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when
last assessed prior to its platting.

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    (c) Upon completion of a habitable structure on any lot of 
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subdivided
property, or upon the use of any lot, either alone 
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or in conjunction
with any contiguous property, for any 
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business, commercial or residential
purpose, or upon the 
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initial sale of any platted lot, including a platted
lot which 
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is vacant: (i) the provisions of subsection (b) of this Section

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shall no longer apply in determining the assessed valuation of 
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the lot, (ii)
each lot shall be assessed without regard to any 
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provision of this Section, and
(iii) the assessed valuation of 
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the remaining property, when next determined,
shall be reduced 
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proportionately to reflect the exclusion of the property that

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no longer qualifies for valuation under this Section. Holding 
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or offering a
platted lot for initial sale shall not constitute 
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a use of the lot for
business, commercial or residential 
25
purposes unless a habitable structure is
situated on the lot or 
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unless the lot is otherwise used for a business,
commercial or 
 


 






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1
residential purpose.

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    (d) This Section applies before the effective date of this 
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amendatory Act of the 96th General Assembly and then applies 
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again beginning January 1, 2012. 
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(Source: P.A. 95-135, eff. 1-1-08; 96-480, eff. 8-14-09.)

 
6
    (35 ILCS 200/10-31)

7
    Sec. 10-31. Subdivisions; counties of less than 3,000,000.
8
    (a) In counties with less than 3,000,000 inhabitants, the 
9
platting and
subdivision of property into separate lots and the 
10
development of the
subdivided property with streets, 
11
sidewalks, curbs, gutters, sewer, water and
utility lines shall 
12
not increase the assessed valuation of all or any part of
the 
13
property, if:
14
        (1) The property is platted and subdivided in 
15
    accordance with the Plat
Act;
16
        (2) The platting occurs after January 1, 1978;
17
        (3) At the time of platting the property is in excess 
18
    of 5 acres; and
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        (4) At the time of platting or replatting the property 
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    is vacant or used as a farm as
defined in Section 1-60.
21
    This Section does not apply to any property that is part of 
22
a special service area created under the Special Service Area 
23
Tax Law in which the ad valorem taxes in the special service 
24
area are extended solely upon the equalized assessed value of 
25
the land in the special service area, without regard to 
 


 






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1
improvements (as authorized by the third paragraph of Section 
2
27-75 of the Special Service Area Tax Law). 
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    (b) Except as provided in subsection (c) of this Section, 
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the assessed
valuation of property so platted and subdivided 
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shall be determined
based on the assessed value assigned to the 
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property when last assessed prior to its last transfer or 
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conveyance. An initial sale of any platted lot, including a lot 
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that is vacant, or a transfer to a holder of a mortgage, as 
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defined in Section 15-1207 of the Code of Civil Procedure, 
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pursuant to a mortgage foreclosure proceeding or pursuant to a 
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transfer in lieu of foreclosure, does not disqualify that lot 
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from the provisions of this subsection (b).
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    (c) Upon completion of a habitable structure on any lot of 
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subdivided
property, or upon the use of any lot, either alone 
15
or in conjunction
with any contiguous property, for any 
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business, commercial or residential
purpose: (i) the 
17
provisions of subsection (b) of this Section
shall no longer 
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apply in determining the assessed valuation of the lot, (ii)

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each lot shall be assessed without regard to any provision of 
20
this Section, and
(iii) the assessed valuation of the remaining 
21
property, when next determined,
shall be reduced 
22
proportionately to reflect the exclusion of the property that

23
no longer qualifies for valuation under this Section. Holding 
24
or offering a
platted lot for initial sale shall not constitute 
25
a use of the lot for
business, commercial or residential 
26
purposes unless a habitable structure is
situated on the lot or 
 


 






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unless the lot is otherwise used for a business,
commercial or 
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residential purpose. The replatting of a subdivision or portion 
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of a subdivision does not disqualify the replatted lots from 
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the provisions of subsection (b).
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    (d) This Section applies on and after the effective date of 
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this amendatory Act of the 96th General Assembly and through 
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December 31, 2011. 

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(Source: P.A. 96-480, eff. 8-14-09.)
 
 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.