Illinois (ECWd) –

Does the local property tax assessor have the legal right to assess personal property?

That basic question was posed to numerous attorneys and legislators and every one of them responded by referencing our State Constitution, specifically Article IX section 5, which abolished taxation of personal property.

Do you own a portable shed? 

If you purchased one, more than likely you paid sales tax on it when you purchased it.  Across the state, people have purchased such sheds or built them rather than building a permanent structure that would be subject to property tax assessment.

A recent publication from Township Official of Illinois has now opened the door for local assessors to assess taxes on portable sheds using a very weak argument that came out of one Property Tax Appeal Board in the state, not from state law.  In that publication, it was noted that in one case a certain size building qualified for taxation which leads to a laundry list of questions.  Who determines what size is or is not subject to property tax?  Where in the revenue code does it outline storage sheds of a certain size are subject to property taxation?

Numerous taxation rulings have subjected storage sheds to taxation when they become permanently fixed to a foundation, utilities installed, etc., however now, across the state in numerous counties, portable sheds that are not in any way fixed to a foundation and have no utilities are being subjected to property taxation based on their size even though such a factor creates a whole host of problems as it relates to equal protection.

A smart business owner purchased several storage sheds to rent them out to people who wanted to store their property.  When he got his tax bill, he was assessed for those sheds and pushed back on the legality of such taxation.  He took the position if you’re going to tax my portable sheds then you have to tax everyone who has a portable shed.  He took the equal protection path rather than focusing on the legal right to do it or not do it. His position was taken as expected, portable shed owners across the county got their portable sheds assessed and taxed, which took away the business owners’ argument.

After sharing this matter with Senator Chapin Rose, he was shocked that such taxation was taking place, specifically because personal property tax was abolished as part of the last State Constituional Convention.

Senator Rose is the Chief Sponsor of SB 1156 to hopefully put a stop to this overreach and twisted reading of assessment laws and guidelines.

“Except as otherwise provided in this Section and the Mobile Home Local Services Tax Act, a building or structure, including a portable shed, garage, or other outbuilding, that is not affixed to or installed on a permanent foundation or connected to utilities for year-round occupancy is not considered real property.”

We have found numerous county Supervisor of Assessments who said they will not assess portable sheds that are not fixed to a foundation and do not have utilities and while we appreciate that, I am sure so too do the owners of such portable sheds, there lies the problem as it relates to equal protection.

The property tax code is required to be applied uniformly.  How is there any uniformity when one county taxes people with portable sheds while other counties do not?

If your County Supervisor of Assessments is taxing portable sheds that are not connected to utilities and fixed to a foundation, we urge you to contact your elected representatives and urge them to support the legislation that would put a stop to this activity.