The bill necessitates that beneficiaries of the eminent domain process submit affidavits detailing the current cash value of their properties, as well as current and expected future cash flows. If approved, the beneficiary or their successors-in-interest would be required to periodically refile these affidavits to update property valuations. This amendment potentially alters how financial assessments are conducted, allowing future income projections to influence compensation amounts. With this change, the law could lead to higher valuations for businesses undergoing eminent domain, as projected revenues become a part of the financial assessment.
Summary
House Bill 4248, introduced by Rep. Jed Davis, seeks to amend the Eminent Domain Act in Illinois by changing the method used to assess the fair cash market value of business properties during eminent domain proceedings. Under the proposed amendment, this value would include not only the current market conditions but also any positive revenue the property is expected to generate over a ten-year period, which must be substantiated through the business's tax returns. This approach aims to provide a more comprehensive evaluation of property value, reflecting potential income streams rather than merely the market price at a given time.
Contention
The bill raises notable points of contention among stakeholders, particularly regarding the challenges related to estimating future revenues and the implications of requiring continuous documentation. Critics may argue that such a requirement could place an undue burden on small businesses, making it harder for them to navigate the eminent domain process. Additionally, questions around the ethics and enforceability of penalties for bad faith filings could lead to debates over accountability in financial reporting during such proceedings. Supporters, however, may claim that including future revenue in property assessments is a fairer approach to ensuring business owners receive adequate compensation when their properties are acquired for public use.
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: other; certain references in the general property tax act; make gender neutral. Amends sec. 27a of 1893 PA 206 (MCL 211.27a). TIE BAR WITH: HJR F'23
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).