97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5425

 

Introduced 2/15/2012, by Rep. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-177

    Amends the Property Tax Code. Makes a technical change in a Section concerning the long-time occupant homestead exemption.


LRB097 19512 HLH 64766 b

 

 

A BILL FOR

 

HB5425LRB097 19512 HLH 64766 b

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 15-177 as follows:
 
6    (35 ILCS 200/15-177)
7    Sec. 15-177. The long-time occupant homestead exemption.
8    (a) If the the county has elected, under Section 15-176, to
9be subject to the provisions of the alternative general
10homestead exemption, then, for taxable years 2007 and
11thereafter, regardless of whether the exemption under Section
1215-176 applies, qualified homestead property is entitled to an
13annual homestead exemption equal to a reduction in the
14property's equalized assessed value calculated as provided in
15this Section.
16    (b) As used in this Section:
17    "Adjusted homestead value" means the lesser of the
18following values:
19        (1) The property's base homestead value increased by:
20    (i) 10% for each taxable year after the base year through
21    and including the current tax year for qualified taxpayers
22    with a household income of more than $75,000 but not
23    exceeding $100,000; or (ii) 7% for each taxable year after

 

 

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1    the base year through and including the current tax year
2    for qualified taxpayers with a household income of $75,000
3    or less. The increase each year is an increase over the
4    prior year; or
5        (2) The property's equalized assessed value for the
6    current tax year minus the general homestead deduction.
7    "Base homestead value" means:
8        (1) if the property did not have an adjusted homestead
9    value under Section 15-176 for the base year, then an
10    amount equal to the equalized assessed value of the
11    property for the base year prior to exemptions, minus the
12    general homestead deduction, provided that the property's
13    assessment was not based on a reduced assessed value
14    resulting from a temporary irregularity in the property for
15    that year; or
16        (2) if the property had an adjusted homestead value
17    under Section 15-176 for the base year, then an amount
18    equal to the adjusted homestead value of the property under
19    Section 15-176 for the base year.
20    "Base year" means the taxable year prior to the taxable
21year in which the taxpayer first qualifies for the exemption
22under this Section.
23    "Current taxable year" means the taxable year for which the
24exemption under this Section is being applied.
25    "Equalized assessed value" means the property's assessed
26value as equalized by the Department.

 

 

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1    "Homestead" or "homestead property" means residential
2property that as of January 1 of the tax year is occupied by a
3qualified taxpayer as his or her principal dwelling place, or
4that is a leasehold interest on which a single family residence
5is situated, that is occupied as a residence by a qualified
6taxpayer who has a legal or equitable interest therein
7evidenced by a written instrument, as an owner or as a lessee,
8and on which the person is liable for the payment of property
9taxes. Residential units in an apartment building owned and
10operated as a cooperative, or as a life care facility, which
11are occupied by persons who hold a legal or equitable interest
12in the cooperative apartment building or life care facility as
13owners or lessees, and who are liable by contract for the
14payment of property taxes, are included within this definition
15of homestead property. A homestead includes the dwelling place,
16appurtenant structures, and so much of the surrounding land
17constituting the parcel on which the dwelling place is situated
18as is used for residential purposes. If the assessor has
19established a specific legal description for a portion of
20property constituting the homestead, then the homestead is
21limited to the property within that description.
22    "Household income" has the meaning set forth under Section
2315-172 of this Code.
24    "General homestead deduction" means the amount of the
25general homestead exemption under Section 15-175.
26    "Life care facility" means a facility defined in Section 2

 

 

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1of the Life Care Facilities Act.
2    "Qualified homestead property" means homestead property
3owned by a qualified taxpayer.
4    "Qualified taxpayer" means any individual:
5        (1) who, for at least 10 continuous years as of January
6    1 of the taxable year, has occupied the same homestead
7    property as a principal residence and domicile or who, for
8    at least 5 continuous years as of January 1 of the taxable
9    year, has occupied the same homestead property as a
10    principal residence and domicile if that person received
11    assistance in the acquisition of the property as part of a
12    government or nonprofit housing program; and
13        (2) who has a household income of $100,000 or less.
14    (c) The base homestead value must remain constant, except
15that the assessor may revise it under any of the following
16circumstances:
17        (1) If the equalized assessed value of a homestead
18    property for the current tax year is less than the previous
19    base homestead value for that property, then the current
20    equalized assessed value (provided it is not based on a
21    reduced assessed value resulting from a temporary
22    irregularity in the property) becomes the base homestead
23    value in subsequent tax years.
24        (2) For any year in which new buildings, structures, or
25    other improvements are constructed on the homestead
26    property that would increase its assessed value, the

 

 

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1    assessor shall adjust the base homestead value with due
2    regard to the value added by the new improvements.
3    (d) The amount of the exemption under this Section is the
4greater of: (i) the equalized assessed value of the homestead
5property for the current tax year minus the adjusted homestead
6value; or (ii) the general homestead deduction.
7    (e) In the case of an apartment building owned and operated
8as a cooperative, or as a life care facility, that contains
9residential units that qualify as homestead property of a
10qualified taxpayer under this Section, the maximum cumulative
11exemption amount attributed to the entire building or facility
12shall not exceed the sum of the exemptions calculated for each
13unit that is a qualified homestead property. The cooperative
14association, management firm, or other person or entity that
15manages or controls the cooperative apartment building or life
16care facility shall credit the exemption attributable to each
17residential unit only to the apportioned tax liability of the
18qualified taxpayer as to that unit. Any person who willfully
19refuses to so credit the exemption is guilty of a Class B
20misdemeanor.
21    (f) When married persons maintain separate residences, the
22exemption provided under this Section may be claimed by only
23one such person and for only one residence. No person who
24receives an exemption under Section 15-172 of this Code may
25receive an exemption under this Section. No person who receives
26an exemption under this Section may receive an exemption under

 

 

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1Section 15-175 or 15-176 of this Code.
2    (g) In the event of a sale or other transfer in ownership
3of the homestead property between spouses or between a parent
4and a child, the exemption under this Section remains in effect
5if the new owner has a household income of $100,000 or less.
6    (h) In the event of a sale or other transfer in ownership
7of the homestead property other than subsection (g) of this
8Section, the exemption under this Section shall remain in
9effect for the remainder of the tax year and be calculated
10using the same base homestead value in which the sale or
11transfer occurs.
12    (i) To receive the exemption, a person must submit an
13application to the county assessor during the period specified
14by the county assessor.
15    The county assessor shall annually give notice of the
16application period by mail or by publication.
17    The taxpayer must submit, with the application, an
18affidavit of the taxpayer's total household income, marital
19status (and if married the name and address of the applicant's
20spouse, if known), and principal dwelling place of members of
21the household on January 1 of the taxable year. The Department
22shall establish, by rule, a method for verifying the accuracy
23of affidavits filed by applicants under this Section, and the
24Chief County Assessment Officer may conduct audits of any
25taxpayer claiming an exemption under this Section to verify
26that the taxpayer is eligible to receive the exemption. Each

 

 

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1application shall contain or be verified by a written
2declaration that it is made under the penalties of perjury. A
3taxpayer's signing a fraudulent application under this Act is
4perjury, as defined in Section 32-2 of the Criminal Code of
51961. The applications shall be clearly marked as applications
6for the Long-time Occupant Homestead Exemption and must contain
7a notice that any taxpayer who receives the exemption is
8subject to an audit by the Chief County Assessment Officer.
9    (j) Notwithstanding Sections 6 and 8 of the State Mandates
10Act, no reimbursement by the State is required for the
11implementation of any mandate created by this Section.
12(Source: P.A. 95-644, eff. 10-12-07.)