<< Back08.16.2010Commercial State Legislative Report - August 2010

• The 2010 spring session of the Illinois General Assembly is under way and there are several bills that affect Commercial Real Estate, including the following: Senate Bill 3334 was passed by both houses and was signed into law on July 16, 2010. This bill deals with the issue of property tax valuation of foreclosed properties. Under current law, distressed property sales-like short sales and foreclosures--are not counted in determining assessed values in calculating the property tax multiplier. IAR supports amending the Property Tax Code to provide that the impact that distressed sales have on property values is reflected in the assessment of property for tax purposes. This bill states that boards of review and the Property Tax Appeal Board shall consider "compulsory sales" of comparable properties for the purpose of revising and correcting assessments. The bill does not apply to Cook County as it has a unique and complex system that classifies property for tax purposes. As introduced, this bill only applied to residential properties. At IAR's urging, the bill was amended to include ALL properties.
  
  Senate Bill 2572 would have allowed the Illinois Department of Public Health to order the evacuation and sealing of commercial and public buildings, the immediate suspension of licensed persons involved in improper removal of asbestos, and the authority to order persons to immediately cease activities--ALL WITHOUT NOTICE OR HEARING. This new power would be used if the Department determined that asbestos is being removed improperly. It was troubling that this proposal granted Public Health such sweeping powers since their regulatory statute is intended to only license and regulate persons/firms who perform asbestos inspection and abatement work. The IEPA is the agency with powers for regulation of asbestos during demolition, renovation and disposal. This legislation, if it had been advanced, would have created confusion and duplication and overreaching regulatory powers.   IAR expressed these concerns to the chief sponsor of the bill and the bill was held in Committee.   SB 3747 is the “Transfer Fee Covenant Act” and it’s intended to deal with a new concept taking shape on the West Coast whereby a property developer records a covenant requiring all future buyers of the property to pay a fee on the transfer of the property. IAR opposes that kind of practice. This bill, drafted and introduced by IAR, would essentially prohibit that practice. IAR is pleased to report that this bill has passed the legislature and was signed into law on July 27, 2010.  
  
  Senate Bill 2575 would amend the Property Tax Extension Limitation Law in the Property Tax Code. This law is otherwise known as the “Property Tax Caps” law. The bill would exempt, from the definition of "aggregate extension", all contributions to a pension fund created under the Illinois Pension Code. IAR usually opposes new exemptions to the Tax Caps law because it will mean that property tax payers would ultimately pay for a larger share of the cost of that function. This bill has not moved out of Senate Committee.  
  
  Illinois Association of REALTORS®
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