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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1745 Introduced 2/26/2021, by Sen. Rachelle Crowe SYNOPSIS AS INTRODUCED:
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Amends the Property Tax Code. Creates a middle class tax credit limited to a reduction in the equalized assessed value of homestead property owned by a middle class homeowner of 5% of the equalized assessed value of the property for the current assessment year. Provides that the maximum exemption is limited to $5,000. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| | SB1745 | | LRB102 16359 HLH 21746 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by adding |
| 5 | | Section 15-178 as follows:
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| 6 | | (35 ILCS 200/15-178 new) |
| 7 | | Sec. 15-178. Middle class property tax credit. |
| 8 | | (a) For purposes of this Section: |
| 9 | | "Current tax year" means the year prior to the collection |
| 10 | | year. |
| 11 | | "Homestead property" has the same meaning as provided in |
| 12 | | Section 35 ILCS 200/15-175. |
| 13 | | "Household" means the owner, the spouse of the owner, and |
| 14 | | all persons using the residence of the owner as their |
| 15 | | principal place of residence. |
| 16 | | "Household income" means the combined income of the |
| 17 | | members of a household for the calendar year preceding the |
| 18 | | taxable year. |
| 19 | | "Income" has the same meaning as provided in Section 3.07 |
| 20 | | of the Senior Citizens and Persons with Disabilities Property |
| 21 | | Tax Relief Act, except that "income" does not include |
| 22 | | veteran's benefits. |
| 23 | | "Middle class" means households with an income up to and |
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| | SB1745 | - 2 - | LRB102 16359 HLH 21746 b |
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| 1 | | including 200% of the median household income for the State of |
| 2 | | Illinois as determined by the most recent available United |
| 3 | | States Census Bureau data. |
| 4 | | (b) Beginning in taxable year 2022, homestead property |
| 5 | | owned by a middle class homeowner or middle class homeowners |
| 6 | | is entitled to an annual homestead exemption limited to a |
| 7 | | reduction in the equalized assessed value of homestead |
| 8 | | property of 5% of the equalized assessed value for the current |
| 9 | | assessment year. The maximum exemption is limited to $5,000. |
| 10 | | (c) In a cooperative or life care facility where a |
| 11 | | homestead exemption has been granted under this Section, the |
| 12 | | cooperative association or the management of the cooperative |
| 13 | | or life care facility shall credit the savings resulting from |
| 14 | | that exemption only to the apportioned tax liability of the |
| 15 | | owner or resident who qualified for the exemption. Any person |
| 16 | | who willfully refuses to so credit the savings shall be guilty |
| 17 | | of a Class B misdemeanor. |
| 18 | | (d) Where married persons maintain and reside in separate |
| 19 | | residences qualifying as homestead property, each residence |
| 20 | | shall receive 50% of the total reduction in equalized assessed |
| 21 | | valuation provided by this Section. |
| 22 | | (e) Notwithstanding Sections 6 and 8 of the State Mandates |
| 23 | | Act, no reimbursement by the State is required for the |
| 24 | | implementation of any mandate created by this Section.
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| 25 | | Section 99. Effective date. This Act takes effect upon |
| 26 | | becoming law.
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