HB3305 amends the Illinois Property Tax Code to require that “dark stores” be assessed as active properties beginning in taxable year 2026. The bill creates a new Division 22 in Article 10 and defines a dark store as either a retail space used solely to fulfill online orders or a vacant retail space. In practical terms, the measure directs assessors to value these properties as if they were still active retail properties rather than as vacant or otherwise reduced-use properties.
The bill is aimed at property tax valuation rules and would affect owners of retail properties that have gone dark, including stores converted to online fulfillment or left vacant. By changing the assessment standard, it could increase the taxable value of such properties and therefore increase property tax liability for affected owners. The bill applies notwithstanding any other provision of law and takes effect immediately, though the assessment change begins with taxable year 2026.
Impact
HB3305 would add a new statutory provision to the Property Tax Code requiring assessors to treat dark stores as active properties for assessment purposes. This would likely affect property tax assessments for retailers, warehouse-like online fulfillment spaces located in former retail buildings, and owners of vacant retail locations. The bill could reduce the ability of property owners to argue for lower valuations based on vacancy or limited use, potentially increasing local property tax revenues and changing assessment practices statewide.
Sentiment
There is limited recorded legislative discussion or voting history available for HB3305, so no formal committee or floor sentiment can be measured from the provided materials. Based on the bill’s subject matter and title, the measure appears to reflect a policy preference for higher valuation of underused retail properties, which is typically supported by local revenue interests and some proponents of tax fairness. However, the absence of transcripts and votes means the level of support or opposition in the General Assembly cannot be determined from the available record.
Contention
The main point of contention is likely the valuation method for vacant or online-only retail properties. Supporters would likely argue that dark stores should not receive reduced assessments simply because they are not operating as traditional storefronts, while opponents—typically property owners, retailers, and tax representatives—may argue that assessing these properties as active retail locations overstates market value and increases tax burdens unfairly. Another likely dispute is how the definition of “dark store” applies to mixed-use, transitional, or partially occupied properties.