SB0455sam001 96TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 3/15/2010

09600SB0455sam001 LRB096 06522 HLH 38781 a

AMENDMENT TO SENATE BILL 455

AMENDMENT NO. ______. Amend Senate Bill 455 by replacing everything after the enacting clause with the following:

"Section 5. The Property Tax Code is amended by adding Section 15-176.5 as follows:

(35 ILCS 200/15-176.5 new)

Sec. 15-176.5. Alternative homestead exemption.

(a) For the assessment years as determined under this Section, in any county that has elected, by an ordinance in accordance with subsection (h), to be subject to the provisions of this Section in lieu of the provisions of Section 15-175, homestead property is entitled to a reduction in the property's equalized assessed value calculated as provided in this Section.

(b) As used in this Section:

(1) "Additional homeowner exemption" means the difference between (i) the equalized assessed value for the current year minus the base year homeowner exemption value and (ii) the adjusted homestead value.

(2) "Adjusted homestead value". In counties with 3,000,000 or more inhabitants, "adjusted homestead value" means:

(A) In the general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.05; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(B) In the first year after general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.075; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(C) In the second year after general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.10; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

In counties with less than 3,000,000 inhabitants, "adjusted homestead value" means:

(A) In the general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.05; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(B) In the first year after general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.075; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(C) In the second year after general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.10; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(D) In the third year after general reassessment year, the lesser of the following values:

(i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.125; or

(ii) the property's equalized assessed value for the current tax year minus the base year homeowner exemption value.

(3) "Base year". In counties with 3,000,000 or more inhabitants, "base year" means:

(A) Tax year 2008 if the general assessment year for the property is 2009. In subsequent general reassessment years, the "base year" shall be the year prior to the general reassessment year.

(B) Tax year 2009 if the general assessment year for the property is 2010. In subsequent general reassessment years, the "base year" shall be the year prior to the general reassessment year.

(C) Tax year 2010 if the general assessment year for the property is 2011. In subsequent general reassessment years, the "base year" shall be the year prior to the general reassessment year.

In counties with less than 3,000,000 inhabitants, "base year" means the year prior to the general assessment year.

(4) "Base year composite tax rate" means the combined tax rate for all taxing districts serving the property's tax code in the base year. If in the current year the tax rate for a particular district within the tax code is 0%, the base year composite tax rate shall be reduced by the base year taxing district rate for that district.

(5) "Base homestead value" means the assessed value of the property for the base year as equalized by the Department, less the base year homeowner exemption value, provided that the property was assessed in the base year as residential property qualified for any of the homestead exemptions under Sections 15-170 through 15-175 of this Code, then in force, and further provided that the property's assessment was not based on a reduced assessed value resulting from a temporary irregularity in the property for that year.

(6) "Base year homeowner exemption value". In counties with more than 3,000,000 inhabitants, "base year homeowner exemption value" means the sum of the value of the homeowner exemption in effect in the base year, plus the value of any additional homeowner exemption in effect in the base year, with the following limitations:

(A) In the first year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $18,000, shall be reduced to $18,000.

(B) In the second year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $16,000, shall be reduced to $16,000.

(C) In the third year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $14,000, shall be reduced to $14,000.

(D) In the fourth year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $12,000, shall be reduced to $12,000 plus the value of any additional homeowner exemption value in effect in the second base year.

(E) In the fifth year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $10,000, shall be reduced to $10,000 plus the value of any additional homeowner exemption value in effect in the second base year.

(F) In the sixth year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if greater than $8,000, shall be reduced to $8,000 plus the value of any additional homeowner exemption value in effect in the second base year.

(G) In the seventh year after the initial base year, after the additional homeowner exemption value for the current tax year is calculated, the base year homeowner exemption value, if between $6,000 and $8,000, shall be reduced to $6,000 plus the value of any additional homeowner exemption value in effect in the third base year.

In counties with less than 3,000,000 inhabitants, "base year homeowner exemption value" means the value of the homeowner exemption in the base year plus the value of any additional homeowner exemption in effect in the base year.

(7) "Current tax year" means the tax year for which the exemption under this Section is being applied.

(8) "Equalized assessed value" means the property's assessed value as equalized by the Department.

(9) "Homestead" or "homestead property" means:

(A) residential property that as of January 1 of the current tax year is occupied by its owner or owners as his, her, or their principal dwelling place, or that is a leasehold interest on which a single family residence is situated, that is occupied as a residence by a person who has a legal or equitable interest therein evidenced by a written instrument, as an owner or as a lessee, and on which the person is liable for the payment of property taxes. Residential units in an apartment building owned and operated as a cooperative, or as a life care facility, which are occupied by persons who hold a legal or equitable interest in the cooperative apartment building or life care facility as owners or lessees, and who are liable by contract for the payment of property taxes, shall be included within this definition of homestead property; and

(B) the dwelling place, appurtenant structures, and so much of the surrounding land constituting the parcel on which the dwelling place is situated as is used for residential purposes; if the assessor has established a specific legal description for a portion of property constituting the homestead, then the homestead shall be limited to the property within that description.

(10) "Initial base year". In counties with 3,000,000 or more inhabitants, the "initial base year" means:

(A) Tax year 2008 if the general assessment year for the property is 2009.

(B) Tax year 2009 if the general assessment year for the property is 2010.

(C) Tax year 2010 if the general assessment year for the property is 2011.

In all other counties, the initial base year shall be 2009, or 2010, as determined pursuant to subsection (h).

(11) "Life care facility" means a facility as defined in Section 2 of the Life Care Facilities Act.

(12) "Second base year". In counties with 3,000,000 or more inhabitants, the "second base year" means:

(A) Tax year 2011 if the general assessment year for the property is 2012.

(B) Tax year 2012 if the general assessment year for the property is 2013.

(C) Tax year 2013 if the general assessment year for the property is 2014.

(13) "Tax code" means a geographical area in which an identical set of taxing districts have jurisdiction.

(14) "Tax code EAV change" means a percentage calculated by dividing the base year composite tax rate by the sum of the taxing district EAV change for all taxing districts in the property's tax code.

(15) "Taxing district EAV" means the combined assessed value of all properties in the taxing district, as equalized by the Department, less the value of all exemptions in the taxing district less the value of all TIF increment in the district.

(16) "Taxing district EAV change" means a number calculated for a taxing district by first dividing the base year taxing district EAV by the tentative current year taxing district EAV, and multiplying the result by the taxing district rate for the base year.

(17) "Taxing district rate" means the tax rate for the taxing district.

(18) "Tentative current year taxing district EAV" means the taxing district EAV for the current year without taking account of the aggregate value of the additional homeowner exemptions in the taxing district.

(19) "Third base year" In counties with 3,000,000 or more inhabitants, the "third base year" means:

(A) Tax year 2014 if the general assessment year for the property is 2015.

(B) Tax year 2015 if the general assessment year for the property is 2016.

(C) Tax year 2016 if the general assessment year for the property is 2017.

(c) For any year in which the assessed value of a homestead increases because of the construction of new buildings, structures, or other significant improvements, and for any year in which the assessed value of a homestead increases because of the expiration of the home improvement exemption, the additional homeowner exemption shall be reduced to zero, and shall remain at that level until the next general reassessment.

(d) The exemption granted under this Section is the sum of the base year homeowner exemption plus the additional homeowner exemption, with the following exceptions:

(1) The additional homeowner exemption cannot exceed the difference between (i) the property's base homestead value multiplied by the tax code EAV change multiplied by 1.40 and (ii) the property's adjusted homestead value.

(2) In the case of homestead property that also qualifies for the exemption under Section 15-172 or Section 15-177, the property is entitled to the exemption under this Section, limited to $6,000 in all counties.

(e) In the case of an apartment building owned and operated as a cooperative, or as a life care facility, that contains residential units that qualify as homestead property under this Section, the maximum cumulative exemption amount attributed to the entire building or facility shall not exceed the sum of the exemptions calculated for each qualified residential unit. The cooperative association, management firm, or other person or entity that manages or controls the cooperative apartment building or life care facility shall credit the exemption attributable to each residential unit only to the apportioned tax liability of the owner or other person responsible for payment of taxes as to that unit. Any person who willfully refuses to so credit the exemption is guilty of a Class B misdemeanor.

(f) When married persons maintain separate residences, the exemption provided under this Section shall be claimed by only one such person and for only one residence.

(g) The assessor may determine whether property qualifies as a homestead under this Section by application, visual inspection, questionnaire, or other reasonable methods. Each year, at the time the assessment books are certified to the county clerk by the board of review, the assessor shall furnish to the county clerk a list of the properties qualified for the homestead exemption under this Section. The list shall note the base homestead value of each property to be used in the calculation of the exemption for the current tax year.

(h) To be subject to the provisions of this Section in lieu of Section 15-175, a county must adopt an ordinance to subject itself to the provisions of this Section within 6 months after the effective date of this amendatory Act of the 96th General Assembly. In a county other than Cook County, the ordinance must designate either tax year 2009 or tax year 2010 as the initial base year.

(i) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

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