SB1757 94TH GENERAL ASSEMBLY

LRB094 11355 BDD 42213 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1757

Introduced 2/25/2005, by Sen. Carole Pankau

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208

from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. In a provision concerning the tax credit for residential real property taxes, provides that, for taxable years ending on or after December 31, 2005, the amount of the credit is a percentage, based upon the taxpayer's household income, of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer (now, the amount of the credit is 5% of the real property taxes for all taxpayers). Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by changing Section 208 as follows:

(35 ILCS 5/208) (from Ch. 120, par. 2-208)

Sec. 208. Tax credit for residential real property taxes.

(a) Beginning with tax years ending on or after December 31, 1991 and ending with taxable years ending on or before December 30, 2005, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer.

(b) For taxable years ending on or after December 31, 2005, every individual taxpayer is entitled to a tax credit in an amount equal to:

(1) for taxpayers with a household income of $100,000 or more per year, 5% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(2) for taxpayers with a household income of $90,000 or more but less than $100,000 per year, 10% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(3) for taxpayers with a household income of $80,000 or more but less than $90,000 per year, 20% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(4) for taxpayers with a household income of $70,000 or more but less than $80,000 per year, 30% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(5) for taxpayers with a household income of $60,000 or more but less than $70,000 per year, 40% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(6) for taxpayers with a household income of $50,000 or more but less than $60,000 per year, 50% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(7) for taxpayers with a household income of $40,000 or more but less than $50,000 per year, 60% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(8) for taxpayers with a household income of $30,000 or more but less than $40,000 per year, 70% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer;

(9) for taxpayers with a household income of $20,000 or more but less than $30,000 per year, 80% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer; and

(10) for taxpayers with a household income of less than $20,000 per year, 100% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer.

For purposes of this subsection, "household income" means the combined income of the members of a household. "Household" means the taxpayer, the spouse of the taxpayer, and all persons using the residence of the taxpayer as their principal place of residence.

(c) In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes which is attributable to such principal residence.

(Source: P.A. 87-17.)

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