Bill

HB 3305

PROP TX-DARK STORES

104th Regular Session Introduced by Harry Benton

HB 3305 requires dark stores to be assessed as active retail properties starting in 2026, potentially raising property values and local tax revenues.

Rule 19(a) / Re-referred to Rules Committee

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Bill Summary · HB 3305

Summary — HB 3305 (PROP TX — Dark Stores)

Status: Rule 19(a) / Re‑referred to Rules Committee. Introduced Feb 25, 2025. (Companion: SB 1375)

Purpose

HB 3305 amends the Illinois Property Tax Code to change how so‑called “dark stores” are classified for property tax assessment. The bill’s intent is to require that these properties be assessed as active retail properties rather than as vacant or otherwise inactive properties beginning with the 2026 taxable year.

Key provisions

Adds Division 22 to Article 10 of the Property Tax Code (35 ILCS 200/Art. 10 Div. 22).
Creates a new section, 35 ILCS 200/10‑900, titled “Dark stores; assessment.”
Establishes: “Notwithstanding any other provision of law, beginning in taxable year 2026, dark stores shall be assessed as active properties.”
Defines “dark store” as “a retail space that is solely used to fulfill online orders or a vacant retail space.”
Effective date: the Act takes effect upon becoming law, but the assessment rule applies beginning in taxable year 2026.

Who is affected

Property owners of retail spaces used only for online‑order fulfillment (e.g., fulfillment centers in former retail shells) or vacant retail properties.
Retailers and real estate investors who have used lower assessments based on vacancy or certain valuation comparables.
Local taxing districts (municipalities, counties, school districts, special districts) because assessments classified as “active” may change assessed values and therefore taxable value and local property tax revenues.
Assessment officials and county assessors who implement property valuations and respond to appeals.

Procedural timeline / status highlights

Filed: Feb 25, 2025 (introduced by Rep. Harry Benton).
Referred to Rules Committee; assigned to Revenue & Finance Committee; subcommittee hearings March–May 2025.
Legislative actions recorded through May 6, 2025 (committee reports, amendments, readings). Current bill status shows re‑referral under Rule 19(a); companion bill SB 1375 pending in the Senate.

Potential implications (objective considerations)

Reclassifying dark stores as “active” may raise assessed values for affected properties, potentially increasing property tax liability for owners and raising local tax revenues.
Could reduce use of valuation strategies that treat formerly occupied retail parcels as comparable to vacant or lower‑valued properties in appeals.
Exact fiscal impact would depend on how assessors apply “active property” valuation standards and on the number/value of properties reclassified; no fiscal note is included in the bill text.