97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1121

 

Introduced 02/07/11, by Rep. Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Increases the general homestead exemption to $7,500 beginning in taxable year 2011 (now, the general homestead exemption is $6,000 for taxable years 2009 and thereafter). 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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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
5Section 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption. Except as
8provided in Sections 15-176 and 15-177, homestead property is
9entitled to an annual homestead exemption limited, except as
10described here with relation to cooperatives, to a reduction in
11the equalized assessed value of homestead property equal to the
12increase in equalized assessed value for the current assessment
13year above the equalized assessed value of the property for
141977, up to the maximum reduction set forth below. If however,
15the 1977 equalized assessed value upon which taxes were paid is
16subsequently determined by local assessing officials, the
17Property Tax Appeal Board, or a court to have been excessive,
18the equalized assessed value which should have been placed on
19the property for 1977 shall be used to determine the amount of
20the exemption.
21    Except as provided in Section 15-176, the maximum reduction
22before taxable year 2004 shall be $4,500 in counties with
233,000,000 or more inhabitants and $3,500 in all other counties.

 

 

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1Except as provided in Sections 15-176 and 15-177, for taxable
2years 2004 through 2007, the maximum reduction shall be $5,000,
3for taxable year 2008, the maximum reduction is $5,500, and,
4for taxable years 2009 and 2010 thereafter, the maximum
5reduction is $6,000, and for taxable years 2011 and thereafter,
6the maximum reduction is $7,500 in all counties. If a county
7has elected to subject itself to the provisions of Section
815-176 as provided in subsection (k) of that Section, then, for
9the first taxable year only after the provisions of Section
1015-176 no longer apply, for owners who, for the taxable year,
11have not been granted a senior citizens assessment freeze
12homestead exemption under Section 15-172 or a long-time
13occupant homestead exemption under Section 15-177, there shall
14be an additional exemption of $5,000 for owners with a
15household income of $30,000 or less.
16    In counties with fewer than 3,000,000 inhabitants, if,
17based on the most recent assessment, the equalized assessed
18value of the homestead property for the current assessment year
19is greater than the equalized assessed value of the property
20for 1977, the owner of the property shall automatically receive
21the exemption granted under this Section in an amount equal to
22the increase over the 1977 assessment up to the maximum
23reduction set forth in this Section.
24    If in any assessment year beginning with the 2000
25assessment year, homestead property has a pro-rata valuation
26under Section 9-180 resulting in an increase in the assessed

 

 

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1valuation, a reduction in equalized assessed valuation equal to
2the increase in equalized assessed value of the property for
3the year of the pro-rata valuation above the equalized assessed
4value of the property for 1977 shall be applied to the property
5on a proportionate basis for the period the property qualified
6as homestead property during the assessment year. The maximum
7proportionate homestead exemption shall not exceed the maximum
8homestead exemption allowed in the county under this Section
9divided by 365 and multiplied by the number of days the
10property qualified as homestead property.
11    "Homestead property" under this Section includes
12residential property that is occupied by its owner or owners as
13his or their principal dwelling place, or that is a leasehold
14interest on which a single family residence is situated, which
15is occupied as a residence by a person who has an ownership
16interest therein, legal or equitable or as a lessee, and on
17which the person is liable for the payment of property taxes.
18For land improved with an apartment building owned and operated
19as a cooperative or a building which is a life care facility as
20defined in Section 15-170 and considered to be a cooperative
21under Section 15-170, the maximum reduction from the equalized
22assessed value shall be limited to the increase in the value
23above the equalized assessed value of the property for 1977, up
24to the maximum reduction set forth above, multiplied by the
25number of apartments or units occupied by a person or persons
26who is liable, by contract with the owner or owners of record,

 

 

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1for paying property taxes on the property and is an owner of
2record of a legal or equitable interest in the cooperative
3apartment building, other than a leasehold interest. For
4purposes of this Section, the term "life care facility" has the
5meaning stated in Section 15-170.
6    "Household", as used in this Section, means the owner, the
7spouse of the owner, and all persons using the residence of the
8owner as their principal place of residence.
9    "Household income", as used in this Section, means the
10combined income of the members of a household for the calendar
11year preceding the taxable year.
12    "Income", as used in this Section, has the same meaning as
13provided in Section 3.07 of the Senior Citizens and Disabled
14Persons Property Tax Relief and Pharmaceutical Assistance Act,
15except that "income" does not include veteran's benefits.
16    In a cooperative where a homestead exemption has been
17granted, the cooperative association or its management firm
18shall credit the savings resulting from that exemption only to
19the apportioned tax liability of the owner who qualified for
20the exemption. Any person who willfully refuses to so credit
21the savings shall be guilty of a Class B misdemeanor.
22    Where married persons maintain and reside in separate
23residences qualifying as homestead property, each residence
24shall receive 50% of the total reduction in equalized assessed
25valuation provided by this Section.
26    In all counties, the assessor or chief county assessment

 

 

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1officer may determine the eligibility of residential property
2to receive the homestead exemption and the amount of the
3exemption by application, visual inspection, questionnaire or
4other reasonable methods. The determination shall be made in
5accordance with guidelines established by the Department,
6provided that the taxpayer applying for an additional general
7exemption under this Section shall submit to the chief county
8assessment officer an application with an affidavit of the
9applicant's total household income, age, marital status (and,
10if married, the name and address of the applicant's spouse, if
11known), and principal dwelling place of members of the
12household on January 1 of the taxable year. The Department
13shall issue guidelines establishing a method for verifying the
14accuracy of the affidavits filed by applicants under this
15paragraph. The applications shall be clearly marked as
16applications for the Additional General Homestead Exemption.
17    In counties with fewer than 3,000,000 inhabitants, in the
18event of a sale of homestead property the homestead exemption
19shall remain in effect for the remainder of the assessment year
20of the sale. The assessor or chief county assessment officer
21may require the new owner of the property to apply for the
22homestead exemption for the following assessment year.
23    Notwithstanding Sections 6 and 8 of the State Mandates Act,
24no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 95-644, eff. 10-12-07.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.