101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0366

 

Introduced , by Rep. Michael T. Marron - Avery Bourne

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-140
35 ILCS 200/15-173

    Amends the Property Tax Code. In a Section granting a natural disaster homestead exemption, removes language providing that the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster. Removes provisions providing that the taxpayer's initial application for a natural disaster homestead exemption must be made no later than the first taxable year after the residential structure is rebuilt. Provides that, if the square footage of the rebuilt structure exceeds 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster, then the amount of the natural disaster homestead exemption is the equalized assessed value per square foot of the rebuilt structure multiplied by 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster minus the base amount. Provides that the amendatory Act is retroactive to the 2012 taxable year. Sets forth provisions concerning the valuation of farm improvements that have been rebuilt following a natural disaster. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 10-140 and 15-173 as follows:
 
6    (35 ILCS 200/10-140)
7    Sec. 10-140. Other improvements; natural disaster.
8    (a) Improvements other than the dwelling, appurtenant
9structures and site, including, but not limited to, roadside
10stands and buildings used for storing and protecting farm
11machinery and equipment, for housing livestock or poultry, or
12for storing feed, grain or any substance that contributes to or
13is a product of the farm, shall have an equalized assessed
14value of 33 1/3% of their value, based upon the current use of
15those buildings and their contribution to the productivity of
16the farm.
17    (b) Improvements described in subsection (a) that have been
18rebuilt following a natural disaster occurring in taxable year
192018 or thereafter shall be valued as follows:
20        (1) if the square footage of the improvement does not
21    exceed 110% of the square footage of the original
22    improvement as it existed immediately prior to the natural
23    disaster, then the improvement shall be assessed at the

 

 

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1    lesser of (i) the equalized assessed value of the
2    improvement in the base year or (ii) the current year's
3    equalized assessed value; and
4        (2) if the square footage of the improvement exceeds
5    110% of the square footage of the original improvement as
6    it existed immediately prior to the natural disaster, then
7    the improvement shall be assessed at the lesser of (i) the
8    equalized assessed value per square foot of the improvement
9    in the base year multiplied by 110% of the square footage
10    of the original improvement as it existed immediately prior
11    to the natural disaster or (ii) the current year's
12    equalized assessed value.
13    The valuation under this subsection (b) shall continue
14until the taxable year in which the property is first sold or
15transferred after the date of the natural disaster.
16    To receive the valuation under this subsection (b): (i) the
17improvement must be rebuilt within 2 years after the date of
18the natural disaster; and (ii) the taxpayer shall submit an
19application to the chief county assessment officer of the
20county in which the property is located by July 1 of each
21taxable year. A county may, by resolution, establish a date for
22submission of applications that is different than July 1. The
23chief county assessment officer may require additional
24documentation to be provided by the applicant.
25    (c) As used in this Section:
26        "Base year" and "natural disaster" have the meanings

 

 

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1    given to those terms in Section 15-173.
2(Source: P.A. 86-954; 88-455.)
 
3    (35 ILCS 200/15-173)
4    Sec. 15-173. Natural Disaster Homestead Exemption.
5    (a) This Section may be cited as the Natural Disaster
6Homestead Exemption.
7    (b) As used in this Section:
8    "Base amount" means the base year equalized assessed value
9of the residence.
10    "Base year" means the taxable year prior to the taxable
11year in which the natural disaster occurred.
12    "Chief county assessment officer" means the County
13Assessor or Supervisor of Assessments of the county in which
14the property is located.
15    "Equalized assessed value" means the assessed value as
16equalized by the Illinois Department of Revenue.
17    "Homestead property" has the meaning ascribed to that term
18in Section 15-175 of this Code.
19    "Natural disaster" means an occurrence of widespread or
20severe damage or loss of property resulting from any
21catastrophic cause including but not limited to fire, flood,
22earthquake, wind, storm, or extended period of severe inclement
23weather. In the case of a residential structure affected by
24flooding, the structure shall not be eligible for this
25homestead improvement exemption unless it is located within a

 

 

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1local jurisdiction which is participating in the National Flood
2Insurance Program. A proclamation of disaster by the President
3of the United States or Governor of the State of Illinois is
4not a prerequisite to the classification of an occurrence as a
5natural disaster under this Section.
6    "Residential structure" shall include the livable area of a
7residence, as well as decks, sheds, and other outbuildings that
8are on land that is contiguous with the homestead residence.
9    (c) A homestead exemption shall be granted by the chief
10county assessment officer for homestead properties containing
11a residential structure that has been rebuilt following a
12natural disaster occurring in taxable year 2012 or any taxable
13year thereafter. If the square footage of the rebuilt
14residential structure does not exceed 110% of the square
15footage of the original residential structure as it existed
16immediately prior to the natural disaster, then the The amount
17of the exemption is the equalized assessed value of the
18residence in the first taxable year for which the taxpayer
19applies for an exemption under this Section minus the base
20amount. If the square footage of the rebuilt residential
21structure exceeds 110% of the square footage of the original
22residential structure as it existed immediately prior to the
23natural disaster, then the amount of the exemption is the
24equalized assessed value per square foot of the residential
25structure in the first taxable year for which the taxpayer
26applies for an exemption multiplied by 110% of the square

 

 

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1footage of the original residential structure as it existed
2immediately prior to the natural disaster minus the base
3amount. To be eligible for an exemption under this Section, :
4(i) the residential structure must be rebuilt within 2 years
5after the date of the natural disaster; and (ii) the square
6footage of the rebuilt residential structure may not be more
7than 110% of the square footage of the original residential
8structure as it existed immediately prior to the natural
9disaster. The taxpayer's initial application for an exemption
10under this Section must be made no later than the first taxable
11year after the residential structure is rebuilt. The exemption
12shall continue at the same annual amount until the taxable year
13in which the property is sold or transferred.
14    (d) To receive the exemption, the taxpayer shall submit an
15application to the chief county assessment officer of the
16county in which the property is located by July 1 of each
17taxable year. A county may, by resolution, establish a date for
18submission of applications that is different than July 1. The
19chief county assessment officer may require additional
20documentation to be provided by the applicant. The applications
21shall be clearly marked as applications for the Natural
22Disaster Homestead Exemption.
23    (e) Property is not eligible for an exemption under this
24Section and Section 15-180 for the same natural disaster or
25catastrophic event. The property may, however, remain eligible
26for an additional exemption under Section 15-180 for any

 

 

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1separate event occurring after the property qualified for an
2exemption under this Section.
3    (f) The exemption under this Section carries over to the
4benefit of the surviving spouse as long as the spouse holds the
5legal or beneficial title to the homestead and permanently
6resides thereon.
7    (f-5) The changes made by this amendatory Act of the 101st
8General Assembly apply to the 2012 taxable year and each
9taxable year thereafter. Any property owner denied an exemption
10prior to this amendatory Act of the 101st General Assembly who
11would be entitled to an exemption under this Section, as
12amended, may obtain relief by certificate of error.
13    (g) Notwithstanding Sections 6 and 8 of the State Mandates
14Act, no reimbursement by the State is required for the
15implementation of any mandate created by this Section.
16(Source: P.A. 97-716, eff. 6-29-12.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.