Full Text of HB1732 94th General Assembly
HB1732eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 15-176 and 20-5 as follows:
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| (35 ILCS 200/15-176)
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| Sec. 15-176. Alternative general homestead exemption.
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| (a) For the assessment years as determined under subsection | 9 |
| (j), in any county that has elected, by an ordinance in | 10 |
| accordance with subsection (k), to be subject to the provisions | 11 |
| of this Section in lieu of the provisions of Section 15-175, | 12 |
| homestead property is
entitled to
an annual homestead exemption | 13 |
| equal to a reduction in the property's equalized
assessed
value | 14 |
| calculated as provided in this Section.
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| (b) As used in this Section:
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| (1) "Assessor" means the supervisor of assessments or | 17 |
| the chief county assessment officer of each county.
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| (2) "Adjusted homestead value" means the lesser of the | 19 |
| following values:
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| (A) The property's base homestead value increased | 21 |
| by 7% for each
tax year after the base year through and | 22 |
| including the current tax year, or, if the property is | 23 |
| sold or ownership is otherwise transferred, the | 24 |
| property's base homestead value increased by 7% for | 25 |
| each tax year after the year of the sale or transfer | 26 |
| through and including the current tax year. The | 27 |
| increase by 7% each year is an increase by 7% over the | 28 |
| prior year.
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| (B) The property's equalized assessed value for | 30 |
| the current tax
year minus (i) $4,500 in Cook County or | 31 |
| $3,500 in all other counties in tax year 2003 or (ii) | 32 |
| $5,000 in all counties in tax year 2004 and thereafter.
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| (3) "Base homestead value".
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| (A) Except as provided in subdivision (b)(3)(B), | 3 |
| "base homestead value" means the equalized assessed | 4 |
| value of the property for the base year
prior to | 5 |
| exemptions, minus (i) $4,500 in Cook County or $3,500 | 6 |
| in all other counties in tax year 2003 or (ii) $5,000 | 7 |
| in all counties in tax year 2004 and thereafter, | 8 |
| provided that it was assessed for that
year as | 9 |
| residential property qualified for any of the | 10 |
| homestead exemptions
under Sections 15-170 through | 11 |
| 15-175 of this Code, then in force, and
further | 12 |
| provided that the property's assessment was not based | 13 |
| on a reduced
assessed value resulting from a temporary | 14 |
| irregularity in the property for
that year. Except as | 15 |
| provided in subdivision (b)(3)(B), if the property did | 16 |
| not have a
residential
equalized assessed value for the | 17 |
| base year, then "base homestead value" means the base
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| homestead value established by the assessor under | 19 |
| subsection (c).
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| (B) If the property is sold or ownership is | 21 |
| otherwise transferred, other than sales or transfers | 22 |
| between spouses or between a parent and a child, "base | 23 |
| homestead value" means the equalized assessed value of | 24 |
| the property at the time of the sale or transfer prior | 25 |
| to exemptions, minus (i) $4,500 in Cook County or | 26 |
| $3,500 in all other counties in tax year 2003 or (ii) | 27 |
| $5,000 in all counties in tax year 2004 and thereafter, | 28 |
| provided that it was assessed as residential property | 29 |
| qualified for any of the homestead exemptions
under | 30 |
| Sections 15-170 through 15-175 of this Code, then in | 31 |
| force, and
further provided that the property's | 32 |
| assessment was not based on a reduced
assessed value | 33 |
| resulting from a temporary irregularity in the | 34 |
| property.
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| (3.5) "Base year" means (i) tax year 2002 in Cook | 36 |
| County or (ii) tax year 2002 or 2003 in all other counties |
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| in accordance with the designation made by the county as | 2 |
| provided in subsection (k).
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| (4) "Current tax year" means the tax year for which the | 4 |
| exemption under
this Section is being applied.
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| (5) "Equalized assessed value" means the property's | 6 |
| assessed value as
equalized by the Department.
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| (6) "Homestead" or "homestead property" means:
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| (A) Residential property that as of January 1 of | 9 |
| the tax year is
occupied by its owner or owners as his, | 10 |
| her, or their principal dwelling
place, or that is a | 11 |
| leasehold interest on which a single family residence | 12 |
| is
situated, that is occupied as a residence by a | 13 |
| person who has a legal or
equitable interest therein | 14 |
| evidenced by a written instrument, as an owner
or as a | 15 |
| lessee, and on which the person is liable for the | 16 |
| payment of
property taxes. Residential units in an | 17 |
| apartment building owned and
operated as a | 18 |
| cooperative, or as a life care facility, which are | 19 |
| occupied by
persons who hold a legal or equitable | 20 |
| interest in the cooperative apartment
building or life | 21 |
| care facility as owners or lessees, and who are liable | 22 |
| by
contract for the payment of property taxes, shall be | 23 |
| included within this
definition of homestead property.
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| (B) A homestead includes the dwelling place, | 25 |
| appurtenant
structures, and so much of the surrounding | 26 |
| land constituting the parcel on
which the dwelling | 27 |
| place is situated as is used for residential purposes. | 28 |
| If
the assessor has established a specific legal | 29 |
| description for a portion of
property constituting the | 30 |
| homestead, then the homestead shall be limited to
the | 31 |
| property within that description.
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| (7) "Life care facility" means a facility as defined in | 33 |
| Section 2 of the
Life
Care Facilities Act.
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| (c) If the property did not have a residential equalized | 35 |
| assessed value for
the base year as provided in subdivision | 36 |
| (b)(3)(A) of this Section, then the assessor
shall first |
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| determine an initial value for the property by comparison with
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| assessed values for the base year of other properties having | 3 |
| physical and
economic characteristics similar to those of the | 4 |
| subject property, so that the
initial value is uniform in | 5 |
| relation to assessed values of those other
properties for the | 6 |
| base year. The product of the initial value multiplied by
the | 7 |
| equalized factor for the base year for homestead properties in | 8 |
| that county, less (i) $4,500 in Cook County or $3,500 in all | 9 |
| other counties in tax year 2003 or (ii) $5,000 in all counties | 10 |
| in tax year 2004 and thereafter, is the base homestead value.
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| For any tax year for which the assessor determines or | 12 |
| adjusts an initial
value and
hence a base homestead value under | 13 |
| this subsection (c), the initial value shall
be subject
to | 14 |
| review by the same procedures applicable to assessed values | 15 |
| established
under this
Code for that tax year.
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| (d) The base homestead value shall remain constant, except | 17 |
| that the assessor
may
revise it under the following | 18 |
| circumstances:
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| (1) If the equalized assessed value of a homestead | 20 |
| property for the current
tax year is less than the previous | 21 |
| base homestead value for that property, then the
current | 22 |
| equalized assessed value (provided it is not based on a | 23 |
| reduced assessed
value resulting from a temporary | 24 |
| irregularity in the property) shall become the
base | 25 |
| homestead value in subsequent tax years.
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| (2) For any year in which new buildings, structures, or | 27 |
| other
improvements are constructed on the homestead | 28 |
| property that would increase its
assessed value, the | 29 |
| assessor shall adjust the base homestead value as provided | 30 |
| in
subsection (c) of this Section with due regard to the | 31 |
| value added by the new
improvements. | 32 |
| (3) If the property is sold or ownership is otherwise | 33 |
| transferred, the base homestead value of the property shall | 34 |
| be adjusted as provided in subdivision (b)(3)(B). This item | 35 |
| (3) does not apply to sales or transfers between spouses or | 36 |
| between a parent and a child.
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| (e) The amount of the exemption under this Section is the | 2 |
| equalized assessed
value of the homestead property for the | 3 |
| current tax year, minus the adjusted homestead
value, with the | 4 |
| following exceptions: | 5 |
| (1) The exemption under this Section shall not exceed | 6 |
| $20,000 for any taxable year. | 7 |
| (2) In the case of homestead property that also | 8 |
| qualifies for
the exemption under Section 15-172, the | 9 |
| property is entitled to the exemption under
this Section, | 10 |
| limited to the amount of (i) $4,500 in Cook County or | 11 |
| $3,500 in all other counties in tax year 2003 or (ii) | 12 |
| $5,000 in all counties in tax year 2004 and thereafter.
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| (e-5) For each assessment year in which the alternative | 14 |
| general homestead exemption under this Section applies, the | 15 |
| assessor must calculate whether the taxes on each homestead | 16 |
| property are more, less, or the same as a result of the | 17 |
| application of the exemption under this Section rather than the | 18 |
| general homestead exemption under Section 15-175. The assessor | 19 |
| must provide the results of these calculations for each | 20 |
| homestead property to the official in the county who is | 21 |
| responsible for preparing and mailing the property tax bills so | 22 |
| that the official can include on or with the bills the | 23 |
| notifications required under subsection (b) of Section 20-5. | 24 |
| For the purpose of this subsection, "homestead property" has | 25 |
| the definition set forth under Section 15-175.
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| (f) In the case of an apartment building owned and operated | 27 |
| as a cooperative, or
as a life care facility, that contains | 28 |
| residential units that qualify as homestead property
under this | 29 |
| Section, the maximum cumulative exemption amount attributed to | 30 |
| the entire
building or facility shall not exceed the sum of the | 31 |
| exemptions calculated for each
qualified residential unit. The | 32 |
| cooperative association, management firm, or other person
or | 33 |
| entity that manages or controls the cooperative apartment | 34 |
| building or life care facility
shall credit the exemption | 35 |
| attributable to each residential unit only to the apportioned | 36 |
| tax
liability of the owner or other person responsible for |
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| payment of taxes as to that unit.
Any person who willfully | 2 |
| refuses to so credit the exemption is guilty of a Class B
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| misdemeanor.
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| (g) When married persons maintain separate residences, the | 5 |
| exemption provided
under this Section shall be claimed by only | 6 |
| one such person and for only one residence.
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| (h) In the event of a sale or other transfer in ownership | 8 |
| of the homestead property, the exemption under this
Section | 9 |
| shall remain in effect for the remainder of the tax year in | 10 |
| which the sale or transfer occurs, but (other than for sales or | 11 |
| transfers between spouses or between a parent and a child) | 12 |
| shall be calculated using the new base homestead value as | 13 |
| provided in subdivision (b)(3)(B).
The assessor may require the | 14 |
| new owner of the property to apply for the exemption in the
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| following year.
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| (i) The assessor may determine whether property qualifies | 17 |
| as a homestead under
this Section by application, visual | 18 |
| inspection, questionnaire, or other
reasonable methods.
Each | 19 |
| year, at the time the assessment books are certified to the | 20 |
| county clerk
by the board
of review, the assessor shall furnish | 21 |
| to the county clerk a list of the
properties qualified
for the | 22 |
| homestead exemption under this Section. The list shall note the | 23 |
| base
homestead
value of each property to be used in the | 24 |
| calculation of the exemption for the
current tax
year.
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| (j) In counties with 3,000,000 or more inhabitants, the | 26 |
| provisions of this Section apply as follows:
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| (1) If the general assessment year for the property is | 28 |
| 2003, this Section
applies for assessment years 2003, 2004, | 29 |
| and 2005.
Thereafter, the provisions of Section 15-175 | 30 |
| apply.
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| (2) If the general assessment year for the property is | 32 |
| 2004, this Section
applies for assessment years 2004, 2005, | 33 |
| and 2006.
Thereafter, the provisions of Section 15-175 | 34 |
| apply.
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| (3) If the general assessment year for the property is | 36 |
| 2005, this Section
applies for assessment years 2005, 2006, |
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| and 2007.
Thereafter, the provisions of Section 15-175 | 2 |
| apply. | 3 |
| In counties with less than 3,000,000 inhabitants, this | 4 |
| Section applies for assessment years (i) 2003, 2004, and 2005 | 5 |
| if 2002 is the designated base year or (ii) 2004, 2005, and | 6 |
| 2006 if 2003 is the designated base year. Thereafter, the | 7 |
| provisions of Section 15-175 apply.
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| (k) To be subject to the provisions of this Section in lieu | 9 |
| of Section 15-175, a county must adopt an ordinance to subject | 10 |
| itself to the provisions of this Section within 6 months after | 11 |
| the effective date of this amendatory Act of the 93rd General | 12 |
| Assembly. In a county other than Cook County, the ordinance | 13 |
| must designate either tax year 2002 or tax year 2003 as the | 14 |
| base year.
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| (l) Notwithstanding Sections 6 and 8 of the State Mandates | 16 |
| Act, no
reimbursement
by the State is required for the | 17 |
| implementation of any mandate created by this
Section.
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| (Source: P.A. 93-715, eff. 7-12-04.)
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| (35 ILCS 200/20-5)
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| Sec. 20-5. Mailing tax bill to owner.
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| (a) Every township collector, and every
county collector in | 22 |
| cases where there is no township collector, upon receiving
the | 23 |
| tax book or books, shall prepare tax bills showing each | 24 |
| installment of
property taxes assessed, which shall be filled | 25 |
| out in accordance with Section
20-40. A copy of the bill shall | 26 |
| be mailed by the collector, at least 30 days
prior to the date | 27 |
| upon which unpaid taxes become delinquent, to the owner of
the | 28 |
| property taxed or to the person in whose name the property is | 29 |
| taxed.
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| (b) For each county in which the assessor is required to | 31 |
| make calculations under subsection (e-5) of Section 15-176 | 32 |
| concerning the effect of the application of the alternative | 33 |
| general homestead exemption, the collector must include on or | 34 |
| with the tax bill for each homestead property a notification to | 35 |
| the taxpayer as to whether the taxes on the property are more, |
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| less, or the same as a result of the application of the | 2 |
| alternative general homestead exemption rather than the | 3 |
| general homestead exemption under Section 15-175. The | 4 |
| notification must be clearly visible and must be in | 5 |
| substantially the following form: | 6 |
| "The taxes on this property are (more/less/the same) as | 7 |
| a result of the application of the alternative general | 8 |
| homestead exemption under Section 15-176 of the Property | 9 |
| Tax Code, sometimes known as the "7% solution"."
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| For the purpose of this subsection, "homestead property" | 11 |
| has the definition set forth under Section 15-175.
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| (Source: P.A. 86-957; 87-818; 88-455.)
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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