SB2432ham002 102ND GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 1/10/2023

10200SB2432ham002 LRB102 16457 HLH 42570 a

AMENDMENT TO SENATE BILL 2432

AMENDMENT NO. ______. Amend Senate Bill 2432 by replacing everything after the enacting clause with the following:

"Section 5. The Department of Revenue Law of the Civil Administrative Code of Illinois is amended by adding Section 2505-810 as follows:

(20 ILCS 2505/2505-810 new)

Sec. 2505-810. Veterans Property Tax Relief Reimbursement Pilot Program.

(a) For State fiscal years that begin on or after July 1, 2022 and before July 1, 2027, the Department shall establish and administer a Veterans Property Tax Relief Reimbursement Pilot Program. For purposes of the Program, the Department shall reimburse eligible taxing districts, in an amount calculated under subsection (c), for revenue loss associated with providing homestead exemptions to veterans with disabilities. A taxing district is eligible for reimbursement under this Section if (i) application of the homestead exemptions for veterans with disabilities under Sections 15-165 and 15-169 of the Property Tax Code results in a cumulative reduction of more than 2.5% in the total equalized assessed value of all taxable property in the taxing district, when compared with the total equalized assessed value of all taxable property in the taxing district prior to the application of those exemptions, for the taxable year that is 2 years before the start of the State fiscal year in which the application for reimbursement is made and (ii) the taxing district is located in whole or in part in a county that contains a United States military base. Reimbursement payments shall be made to the county that applies to the Department of Revenue on behalf of the taxing district under subsection (b) and shall be distributed by the county to the taxing district as directed by the Department of Revenue.

(b) If the county clerk determines that that one or more taxing districts located in whole or in part in the county qualify for reimbursement under this Section, then the county clerk shall apply to the Department of Revenue on behalf of the taxing district for reimbursement under this Section in the form and manner required by the Department. The county clerk shall consolidate applications submitted on behalf of more than one taxing district into a single application. The Department of Revenue may audit the information submitted by the county clerk as part of the application under this Section for the purpose of verifying the accuracy of that information.

(c) Subject to the maximum aggregate reimbursement amount set forth in this subsection, the amount of the reimbursement shall be as follows:

(1) for reimbursements awarded for the fiscal year that begins on July 1, 2022, 50% of the difference between: (1) 97.5% of the amount of property tax revenue that would have been required to be collected and distributed to the taxing district for taxable year 2021 if the homestead exemptions for veterans with disabilities under Sections 15-165 and 15-169 of the Property Tax Code had not been applied; and (2) the amount of property tax revenue that was required to be collected and distributed to the taxing district for taxable year 2021 after the application of those exemptions; and

(2) for reimbursements awarded for fiscal years that begin on or after July 1, 2023 and before July 1, 2027, 100% of the difference between: (1) 97.5% of the amount of property tax revenue that would have been required to be collected and distributed to the taxing district for the taxable year that falls 2 years before the start of the State fiscal year if the homestead exemptions for veterans with disabilities under Sections 15-165 and 15-169 of the Property Tax Code had not been applied; and (2) the amount of property tax revenue that was required to be collected and distributed to the taxing district for that taxable year.

The aggregate amount of reimbursements that may be awarded under this Section for all taxing districts in any calendar year may not exceed $30,000,000. If the total amount of eligible reimbursements under this Section exceeds $30,000,000 in any calendar year, then the reimbursement amount awarded to each particular taxing district shall be reduced on a pro rata basis until the aggregate amount of reimbursements awarded under this Section for the calendar year does not exceed $30,000,000.

(d) Reimbursements under this Section shall be paid from the Personal Property Tax Replacement Fund. As soon as possible after the close of each application period set by the Department of Revenue for reimbursement under this Section, the Department of Revenue shall certify to the State Comptroller and the State Treasurer the amount necessary to pay the reimbursements provided under this Section. Upon receiving that certification, the Comptroller shall order transferred and the Treasurer shall transfer the certified amount from the General Revenue Fund to the Personal Property Tax Replacement Fund.

(e) The Department of Revenue may adopt rules necessary for the implementation of this Section.

(f) As used in this Section:

"Taxable year" means the calendar year during which property taxes payable in the next succeeding year are levied.

"Taxing district" has the meaning given to that term in Section 1-150 of the Property Tax Code.

Section 99. Effective date. This Act takes effect upon becoming law.".