Full Text of SB2350 94th General Assembly
SB2350ham003 94TH GENERAL ASSEMBLY
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Rep. Lou Lang
Filed: 5/1/2006
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| AMENDMENT TO SENATE BILL 2350
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| AMENDMENT NO. ______. Amend Senate Bill 2350, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following: | 5 |
| "Section 5. The Property Tax Code is amended by changing | 6 |
| Section 15-176 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 | 10 |
| (j), in any county that has elected, by an ordinance in | 11 |
| accordance with subsection (k), to be subject to the provisions | 12 |
| of this Section in lieu of the provisions of Section 15-175, | 13 |
| homestead property is
entitled to
an annual homestead exemption | 14 |
| equal to a reduction in the property's equalized
assessed
value | 15 |
| 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 | 18 |
| the chief county assessment officer of each county.
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| (2) "Adjusted homestead value" means the lesser of the | 20 |
| following values:
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| (A) The property's base homestead value increased | 22 |
| by 7% for each
tax year after the base year through and | 23 |
| including the current tax year, or, if the property is | 24 |
| sold or ownership is otherwise transferred, the |
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| property's base homestead value increased by 7% for | 2 |
| each tax year after the year of the sale or transfer | 3 |
| through and including the current tax year. The | 4 |
| increase by 7% each year is an increase by 7% over the | 5 |
| prior year.
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| (B) The property's equalized assessed value for | 7 |
| the current tax
year minus (i) $4,500 in Cook County or | 8 |
| $3,500 in all other counties in tax year 2003 or (ii) | 9 |
| $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), | 12 |
| "base homestead value" means the equalized assessed | 13 |
| value of the property for the base year
prior to | 14 |
| exemptions, minus (i) $4,500 in Cook County or $3,500 | 15 |
| in all other counties in tax year 2003 or (ii) $5,000 | 16 |
| in all counties in tax year 2004 and thereafter, | 17 |
| provided that it was assessed for that
year as | 18 |
| residential property qualified for any of the | 19 |
| homestead exemptions
under Sections 15-170 through | 20 |
| 15-175 of this Code, then in force, and
further | 21 |
| provided that the property's assessment was not based | 22 |
| on a reduced
assessed value resulting from a temporary | 23 |
| irregularity in the property for
that year. Except as | 24 |
| provided in subdivision (b)(3)(B), if the property did | 25 |
| not have a
residential
equalized assessed value for the | 26 |
| base year, then "base homestead value" means the base
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| homestead value established by the assessor under | 28 |
| subsection (c).
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| (B) If the property is sold or ownership is | 30 |
| otherwise transferred, other than sales or transfers | 31 |
| between spouses or between a parent and a child, "base | 32 |
| homestead value" means the equalized assessed value of | 33 |
| the property at the time of the sale or transfer prior | 34 |
| to exemptions, minus (i) $4,500 in Cook County or |
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| $3,500 in all other counties in tax year 2003 or (ii) | 2 |
| $5,000 in all counties in tax year 2004 and thereafter, | 3 |
| provided that it was assessed as residential property | 4 |
| qualified for any of the homestead exemptions
under | 5 |
| Sections 15-170 through 15-175 of this Code, then in | 6 |
| force, and
further provided that the property's | 7 |
| assessment was not based on a reduced
assessed value | 8 |
| resulting from a temporary irregularity in the | 9 |
| property.
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| (3.5) "Base year" means (i) tax year 2002 in Cook | 11 |
| County or (ii) tax year 2004 or 2005
2002 or 2003 in all | 12 |
| other counties in accordance with the designation made by | 13 |
| the county as provided in subsection (k).
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| (4) "Current tax year" means the tax year for which the | 15 |
| exemption under
this Section is being applied.
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| (5) "Equalized assessed value" means the property's | 17 |
| 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 | 20 |
| the tax year is
occupied by its owner or owners as his, | 21 |
| her, or their principal dwelling
place, or that is a | 22 |
| leasehold interest on which a single family residence | 23 |
| is
situated, that is occupied as a residence by a | 24 |
| person who has a legal or
equitable interest therein | 25 |
| evidenced by a written instrument, as an owner
or as a | 26 |
| lessee, and on which the person is liable for the | 27 |
| payment of
property taxes. Residential units in an | 28 |
| apartment building owned and
operated as a | 29 |
| cooperative, or as a life care facility, which are | 30 |
| occupied by
persons who hold a legal or equitable | 31 |
| interest in the cooperative apartment
building or life | 32 |
| care facility as owners or lessees, and who are liable | 33 |
| by
contract for the payment of property taxes, shall be | 34 |
| included within this
definition of homestead property.
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| (B) A homestead includes the dwelling place, | 2 |
| appurtenant
structures, and so much of the surrounding | 3 |
| land constituting the parcel on
which the dwelling | 4 |
| place is situated as is used for residential purposes. | 5 |
| If
the assessor has established a specific legal | 6 |
| description for a portion of
property constituting the | 7 |
| homestead, then the homestead shall be limited to
the | 8 |
| property within that description.
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| (7) "Life care facility" means a facility as defined in | 10 |
| Section 2 of the
Life
Care Facilities Act.
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| (c) If the property did not have a residential equalized | 12 |
| assessed value for
the base year as provided in subdivision | 13 |
| (b)(3)(A) of this Section, then the assessor
shall first | 14 |
| determine an initial value for the property by comparison with
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| assessed values for the base year of other properties having | 16 |
| physical and
economic characteristics similar to those of the | 17 |
| subject property, so that the
initial value is uniform in | 18 |
| relation to assessed values of those other
properties for the | 19 |
| base year. The product of the initial value multiplied by
the | 20 |
| equalized factor for the base year for homestead properties in | 21 |
| that county, less (i) $4,500 in Cook County or $3,500 in all | 22 |
| other counties in tax year 2003 or (ii) $5,000 in all counties | 23 |
| 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 | 25 |
| adjusts an initial
value and
hence a base homestead value under | 26 |
| this subsection (c), the initial value shall
be subject
to | 27 |
| review by the same procedures applicable to assessed values | 28 |
| established
under this
Code for that tax year.
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| (d) The base homestead value shall remain constant, except | 30 |
| that the assessor
may
revise it under the following | 31 |
| circumstances:
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| (1) If the equalized assessed value of a homestead | 33 |
| property for the current
tax year is less than the previous | 34 |
| base homestead value for that property, then the
current |
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| equalized assessed value (provided it is not based on a | 2 |
| reduced assessed
value resulting from a temporary | 3 |
| irregularity in the property) shall become the
base | 4 |
| homestead value in subsequent tax years.
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| (2) For any year in which new buildings, structures, or | 6 |
| other
improvements are constructed on the homestead | 7 |
| property that would increase its
assessed value, the | 8 |
| assessor shall adjust the base homestead value as provided | 9 |
| in
subsection (c) of this Section with due regard to the | 10 |
| value added by the new
improvements. | 11 |
| (3) If the property is sold or ownership is otherwise | 12 |
| transferred, the base homestead value of the property shall | 13 |
| be adjusted as provided in subdivision (b)(3)(B). This item | 14 |
| (3) does not apply to sales or transfers between spouses or | 15 |
| between a parent and a child.
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| (e) The amount of the exemption under this Section is the | 17 |
| equalized assessed
value of the homestead property for the | 18 |
| current tax year, minus the adjusted homestead
value, with the | 19 |
| following exceptions: | 20 |
| (1)
In Cook County, the
The exemption under this | 21 |
| Section shall not exceed $20,000 for any taxable year | 22 |
| through taxable year: | 23 |
| (A) 2005, if the general assessment year for the
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| property is 2003; | 25 |
| (B) 2006, if the general assessment year for the
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| property is 2004; or | 27 |
| (C) 2007, if the general assessment year for the
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| property is 2005 . | 29 |
| Thereafter, in Cook County, the exemption under this
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| Section shall not exceed $60,000 for any taxable year. | 31 |
| (1.5) For all tax years in all counties other
than Cook | 32 |
| County, the exemption under this Section shall
not exceed | 33 |
| $60,000 for any taxable year.
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| (2) In the case of homestead property that also |
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| qualifies for
the exemption under Section 15-172, the | 2 |
| property is entitled to the exemption under
this Section, | 3 |
| limited to the amount of (i) $4,500 in Cook County or | 4 |
| $3,500 in all other counties in tax year 2003 or (ii) | 5 |
| $5,000 in all counties in tax year 2004 and thereafter.
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| (f) In the case of an apartment building owned and operated | 7 |
| as a cooperative, or
as a life care facility, that contains | 8 |
| residential units that qualify as homestead property
under this | 9 |
| Section, the maximum cumulative exemption amount attributed to | 10 |
| the entire
building or facility shall not exceed the sum of the | 11 |
| exemptions calculated for each
qualified residential unit. The | 12 |
| cooperative association, management firm, or other person
or | 13 |
| entity that manages or controls the cooperative apartment | 14 |
| building or life care facility
shall credit the exemption | 15 |
| attributable to each residential unit only to the apportioned | 16 |
| tax
liability of the owner or other person responsible for | 17 |
| payment of taxes as to that unit.
Any person who willfully | 18 |
| 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 | 21 |
| exemption provided
under this Section shall be claimed by only | 22 |
| one such person and for only one residence.
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| (h) In the event of a sale or other transfer in ownership | 24 |
| of the homestead property, the exemption under this
Section | 25 |
| shall remain in effect for the remainder of the tax year in | 26 |
| which the sale or transfer occurs, but (other than for sales or | 27 |
| transfers between spouses or between a parent and a child) | 28 |
| shall be calculated using the new base homestead value as | 29 |
| provided in subdivision (b)(3)(B).
The assessor may require the | 30 |
| 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 | 33 |
| as a homestead under
this Section by application, visual | 34 |
| inspection, questionnaire, or other
reasonable methods.
Each |
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| year, at the time the assessment books are certified to the | 2 |
| county clerk
by the board
of review, the assessor shall furnish | 3 |
| to the county clerk a list of the
properties qualified
for the | 4 |
| homestead exemption under this Section. The list shall note the | 5 |
| base
homestead
value of each property to be used in the | 6 |
| calculation of the exemption for the
current tax
year.
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| (j) In counties with 3,000,000 or more inhabitants, the | 8 |
| provisions of this Section apply as follows:
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| (1) If the general assessment year for the property is | 10 |
| 2003, this Section
applies for assessment years 2003, 2004, | 11 |
| and 2005.
Thereafter, the provisions of Section 15-175 | 12 |
| apply.
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| (2) If the general assessment year for the property is | 14 |
| 2004, this Section
applies for assessment years 2004, 2005, | 15 |
| and 2006.
Thereafter, the provisions of Section 15-175 | 16 |
| apply.
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| (3) If the general assessment year for the property is | 18 |
| 2005, this Section
applies for assessment years 2005, 2006, | 19 |
| and 2007.
Thereafter, the provisions of Section 15-175 | 20 |
| apply. | 21 |
| (4) If the general assessment year for the property is | 22 |
| 2006 and only if the county elects, by ordinance, to extend | 23 |
| the application of this Section under subsection (k-5), | 24 |
| then this Section continues to apply for assessment years | 25 |
| 2006, 2007, and 2008. Thereafter, the provisions of Section | 26 |
| 15-175 apply. | 27 |
| (5) If the general assessment year for the property is | 28 |
| 2007 and only if the county elects, by ordinance, to extend | 29 |
| the application of this Section under subsection (k-5), | 30 |
| then this Section continues to apply for assessment years | 31 |
| 2007, 2008, and 2009. Thereafter, the provisions of Section | 32 |
| 15-175 apply. | 33 |
| (6) If the general assessment year for the property is | 34 |
| 2008 and only if the county elects, by ordinance, to extend |
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| the application of this Section under subsection (k-5), | 2 |
| then this Section continues to apply for assessment years | 3 |
| 2008, 2009, and 2010. Thereafter, the provisions of Section | 4 |
| 15-175 apply.
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| In counties with less than 3,000,000 inhabitants, this | 6 |
| Section applies for assessment years (i) 2005, 2006, and 2007 | 7 |
| if tax year 2004
2003, 2004, and 2005 if 2002 is the designated | 8 |
| base year or (ii) 2006, 2007, and 2008 if tax year 2005
2004, | 9 |
| 2005, and 2006 if 2003 is the designated base year. Thereafter, | 10 |
| the provisions of Section 15-175 apply.
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| (k) To be subject to the provisions of this Section in lieu | 12 |
| of Section 15-175, a county must adopt an ordinance to subject | 13 |
| itself to the provisions of this Section within (i) 6 months | 14 |
| after the effective date of this amendatory Act of the
93rd | 15 |
| General Assembly for Cook County, except as provided in | 16 |
| subsection (k-5), or (ii) within 6 months after the effective | 17 |
| date of this amendatory Act of the 94th General Assembly for | 18 |
| all other counties . In a county other than Cook County, the | 19 |
| ordinance must designate either tax year 2004
2002
or tax year | 20 |
| 2005
2003
as the base year.
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| (k-5) Cook County may elect, by ordinance, to extend the | 22 |
| application of this Section for the assessment years set forth | 23 |
| under items (4), (5), and (6) of subsection (j). The ordinance | 24 |
| must be adopted within 6 months after the effective date of | 25 |
| this amendatory Act of the 94th General Assembly.
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| (l) Notwithstanding Sections 6 and 8 of the State Mandates | 27 |
| Act, no
reimbursement
by the State is required for the | 28 |
| implementation of any mandate created by this
Section.
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| (Source: P.A. 93-715, eff. 7-12-04.) | 30 |
| Section 90. The State Mandates Act is amended by adding | 31 |
| Section 8.30 as follows: | 32 |
| (30 ILCS 805/8.30 new) |
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| Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 | 2 |
| of this Act, no reimbursement by the State is required for the | 3 |
| implementation of any mandate created by this amendatory Act of | 4 |
| the 94th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.".
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