Illinois Property Tax Legislation Update: Dark Store Valuations and Downtown Initiatives Task Force

Illinois is currently reviewing significant legislation that could impact property tax assessments and downtown revitalization efforts. Two key bills, IL HB 3305 and IL HB 2757, are at the forefront of these discussions.

Dark Store Valuations (IL HB 3305)

The proposed legislation, IL HB 3305, aims to address “dark stores.” The dark store theory revolves around the concept of using vacant buildings as comparable properties when assessing an operating retail property. The new bill would mandate that dark stores be assessed as active properties, ensuring that vacant retail spaces are valued based on their potential use rather than their current state. This change could lead to higher property tax assessments and tax increases for vacant stores.

Downtown Initiatives Task Force (IL HB 2757)

Another important piece of legislation, IL HB 2757, proposes the creation of the Chicago Downtown Revitalization Task Force. This task force will analyze various taxes and economic incentives impacting downtown Chicago, review trends such as office occupancy rates and retail sales, and examine national best practices for urban revitalization. The goal is to develop recommendations that enhance economic activity and vitality in downtown Chicago, making it a more attractive location for businesses and visitors.

Real estate owners and operators should stay informed about these developments, as they could have significant implications for property assessments.