Full Text of HB5439 97th General Assembly
HB5439 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5439 Introduced 2/15/2012, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
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35 ILCS 200/15-175 |
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35 ILCS 200/15-177 | |
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Amends the Property Tax Code. Removes language providing that the definition of "homestead property" includes leasehold interests on which a single family residence is situated.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Sections 15-175 and 15-177 as follows:
| 6 | | (35 ILCS 200/15-175)
| 7 | | Sec. 15-175. General homestead exemption. Except as | 8 | | provided in Sections 15-176 and 15-177, homestead
property is
| 9 | | entitled to an annual homestead exemption limited, except as | 10 | | described here
with relation to cooperatives, to a reduction in | 11 | | the equalized assessed value
of homestead property equal to the | 12 | | increase in equalized assessed value for the
current assessment | 13 | | year above the equalized assessed value of the property for
| 14 | | 1977, up to the maximum reduction set forth below. If however, | 15 | | the 1977
equalized assessed value upon which taxes were paid is | 16 | | subsequently determined
by local assessing officials, the | 17 | | Property Tax Appeal Board, or a court to have
been excessive, | 18 | | the equalized assessed value which should have been placed on
| 19 | | the property for 1977 shall be used to determine the amount of | 20 | | the exemption.
| 21 | | Except as provided in Section 15-176, the maximum reduction | 22 | | before taxable year 2004 shall be
$4,500 in counties with | 23 | | 3,000,000 or more
inhabitants
and $3,500 in all other counties. |
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| 1 | | Except as provided in Sections 15-176 and 15-177, for taxable | 2 | | years 2004 through 2007, the maximum reduction shall be $5,000, | 3 | | for taxable year 2008, the maximum reduction is $5,500, and, | 4 | | for taxable years 2009 and thereafter, the maximum reduction is | 5 | | $6,000 in all counties. If a county has elected to subject | 6 | | itself to the provisions of Section 15-176 as provided in | 7 | | subsection (k) of that Section, then, for the first taxable | 8 | | year only after the provisions of Section 15-176 no longer | 9 | | apply, for owners who, for the taxable year, have not been | 10 | | granted a senior citizens assessment freeze homestead | 11 | | exemption under Section 15-172 or a long-time occupant | 12 | | homestead exemption under Section 15-177, there shall be an | 13 | | additional exemption of $5,000 for owners with a household | 14 | | income of $30,000 or less.
| 15 | | In counties with fewer than 3,000,000 inhabitants, if, | 16 | | based on the most
recent assessment, the equalized assessed | 17 | | value of
the homestead property for the current assessment year | 18 | | is greater than the
equalized assessed value of the property | 19 | | for 1977, the owner of the property
shall automatically receive | 20 | | the exemption granted under this Section in an
amount equal to | 21 | | the increase over the 1977 assessment up to the maximum
| 22 | | reduction set forth in this Section.
| 23 | | If in any assessment year beginning with the 2000 | 24 | | assessment year,
homestead property has a pro-rata valuation | 25 | | under
Section 9-180 resulting in an increase in the assessed | 26 | | valuation, a reduction
in equalized assessed valuation equal to |
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| 1 | | the increase in equalized assessed
value of the property for | 2 | | the year of the pro-rata valuation above the
equalized assessed | 3 | | value of the property for 1977 shall be applied to the
property | 4 | | on a proportionate basis for the period the property qualified | 5 | | as
homestead property during the assessment year. The maximum | 6 | | proportionate
homestead exemption shall not exceed the maximum | 7 | | homestead exemption allowed in
the county under this Section | 8 | | divided by 365 and multiplied by the number of
days the | 9 | | property qualified as homestead property.
| 10 | | "Homestead property" under this Section includes | 11 | | residential property that is
occupied by its owner or owners as | 12 | | his or their principal dwelling place, or
that is a leasehold | 13 | | interest on which a single family residence is situated,
which | 14 | | is occupied as a residence by a person who has an ownership | 15 | | interest
therein, legal or equitable or as a lessee, and on | 16 | | which the person is
liable for the payment of property taxes. | 17 | | For land improved with
an apartment building owned and operated | 18 | | as a cooperative or a building which
is a life care facility as | 19 | | defined in Section 15-170 and considered to
be a cooperative | 20 | | under Section 15-170, the maximum reduction from the equalized
| 21 | | assessed value shall be limited to the increase in the value | 22 | | above the
equalized assessed value of the property for 1977, up | 23 | | to
the maximum reduction set forth above, multiplied by the | 24 | | number of apartments
or units occupied by a person or persons | 25 | | who is liable, by contract with the
owner or owners of record, | 26 | | for paying property taxes on the property and is an
owner of |
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| 1 | | record of a legal or equitable interest in the cooperative
| 2 | | apartment building, other than a leasehold interest. For | 3 | | purposes of this
Section, the term "life care facility" has the | 4 | | meaning stated in Section
15-170.
| 5 | | "Household", as used in this Section,
means the owner, the | 6 | | spouse of the owner, and all persons using
the
residence of the | 7 | | owner as their principal place of residence.
| 8 | | "Household income", as used in this Section,
means the | 9 | | combined income of the members of a household
for the calendar | 10 | | year preceding the taxable year.
| 11 | | "Income", as used in this Section,
has the same meaning as | 12 | | provided in Section 3.07 of the Senior
Citizens
and Disabled | 13 | | Persons Property Tax Relief and Pharmaceutical Assistance Act,
| 14 | | except that
"income" does not include veteran's benefits.
| 15 | | In a cooperative where a homestead exemption has been | 16 | | granted, the
cooperative association or its management firm | 17 | | shall credit the savings
resulting from that exemption only to | 18 | | the apportioned tax liability of the
owner who qualified for | 19 | | the exemption. Any person who willfully refuses to so
credit | 20 | | the savings shall be guilty of a Class B misdemeanor.
| 21 | | Where married persons maintain and reside in separate | 22 | | residences qualifying
as homestead property, each residence | 23 | | shall receive 50% of the total reduction
in equalized assessed | 24 | | valuation provided by this Section.
| 25 | | In all counties, the assessor
or chief county assessment | 26 | | officer may determine the
eligibility of residential property |
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| 1 | | to receive the homestead exemption and the amount of the | 2 | | exemption by
application, visual inspection, questionnaire or | 3 | | other reasonable methods. The
determination shall be made in | 4 | | accordance with guidelines established by the
Department, | 5 | | provided that the taxpayer applying for an additional general | 6 | | exemption under this Section shall submit to the chief county | 7 | | assessment officer an application with an affidavit of the | 8 | | applicant's total household income, age, marital status (and, | 9 | | if married, the name and address of the applicant's spouse, if | 10 | | known), and principal dwelling place of members of the | 11 | | household on January 1 of the taxable year. The Department | 12 | | shall issue guidelines establishing a method for verifying the | 13 | | accuracy of the affidavits filed by applicants under this | 14 | | paragraph. The applications shall be clearly marked as | 15 | | applications for the Additional General Homestead Exemption.
| 16 | | In counties with fewer than 3,000,000 inhabitants, in the | 17 | | event of a sale
of
homestead property the homestead exemption | 18 | | shall remain in effect for the
remainder of the assessment year | 19 | | of the sale. The assessor or chief county
assessment officer | 20 | | may require the new
owner of the property to apply for the | 21 | | homestead exemption for the following
assessment year.
| 22 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 23 | | no reimbursement by the State is required for the | 24 | | implementation of any mandate created by this Section.
| 25 | | (Source: P.A. 95-644, eff. 10-12-07.)
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| 1 | | (35 ILCS 200/15-177) | 2 | | Sec. 15-177. The long-time occupant homestead exemption. | 3 | | (a) If the county has elected, under Section 15-176, to be | 4 | | subject to the provisions of the alternative general homestead | 5 | | exemption, then, for taxable years 2007 and thereafter, | 6 | | regardless of whether the exemption under Section 15-176 | 7 | | applies, qualified homestead property is
entitled to
an annual | 8 | | homestead exemption equal to a reduction in the property's | 9 | | equalized
assessed
value calculated as provided in this | 10 | | Section. | 11 | | (b) As used in this Section: | 12 | | "Adjusted homestead value" means the lesser of
the | 13 | | following values: | 14 | | (1) The property's base homestead value increased
by: | 15 | | (i) 10% for each taxable year after the base year through | 16 | | and including the current tax year for qualified taxpayers | 17 | | with a household income of more than $75,000 but not | 18 | | exceeding $100,000; or (ii) 7% for each taxable year after | 19 | | the base year through and including the current tax year | 20 | | for qualified taxpayers with a household income of $75,000 | 21 | | or less. The increase each year is an increase over the | 22 | | prior year; or | 23 | | (2) The property's equalized assessed value for
the | 24 | | current tax year minus the general homestead deduction. | 25 | | "Base homestead value" means: | 26 | | (1) if the property did not have an adjusted homestead |
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| 1 | | value under Section 15-176 for the base year, then an | 2 | | amount equal to the equalized assessed value of the | 3 | | property for the base year prior to exemptions, minus the | 4 | | general homestead deduction, provided that the property's | 5 | | assessment was not based on a reduced assessed value | 6 | | resulting from a temporary irregularity in the property for | 7 | | that year; or | 8 | | (2) if the property had an adjusted homestead value | 9 | | under Section 15-176 for the base year, then an amount | 10 | | equal to the adjusted homestead value of the property under | 11 | | Section 15-176 for the base year. | 12 | | "Base year" means the taxable year prior to the taxable | 13 | | year in which the taxpayer first qualifies for the exemption | 14 | | under this Section. | 15 | | "Current taxable year" means the taxable year for which
the | 16 | | exemption under this Section is being applied. | 17 | | "Equalized assessed value" means the property's
assessed | 18 | | value as equalized by the Department. | 19 | | "Homestead" or "homestead property" means residential | 20 | | property that as of January 1 of
the tax year is occupied by a | 21 | | qualified taxpayer as his or her principal dwelling place , or | 22 | | that is a leasehold interest on which a single family residence | 23 | | is situated, that is occupied as a residence by a qualified | 24 | | taxpayer who has a legal or equitable interest therein | 25 | | evidenced by a written instrument, as an owner or as a lessee, | 26 | | and on which the person is liable for the payment of property |
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| 1 | | taxes. Residential units in an apartment building owned and | 2 | | operated as a cooperative, or as a life care facility, which | 3 | | are occupied by persons who hold a legal or equitable interest | 4 | | in the cooperative apartment building or life care facility as | 5 | | owners or lessees, and who are liable by contract for the | 6 | | payment of property taxes, are included within this definition | 7 | | of homestead property. A homestead includes the dwelling place,
| 8 | | appurtenant structures, and so much of the surrounding land | 9 | | constituting the parcel on which the dwelling place is situated | 10 | | as is used for residential purposes. If the assessor has | 11 | | established a specific legal description for a portion of | 12 | | property constituting the homestead, then the homestead is | 13 | | limited to the property within that description. | 14 | | "Household income" has the meaning set forth under Section | 15 | | 15-172 of this Code.
| 16 | | "General homestead deduction" means the amount of the | 17 | | general homestead exemption under Section 15-175.
| 18 | | "Life care facility" means a facility defined
in Section 2 | 19 | | of the Life Care Facilities Act. | 20 | | "Qualified homestead property" means homestead property | 21 | | owned by a qualified taxpayer.
| 22 | | "Qualified taxpayer" means any individual: | 23 | | (1) who, for at least 10 continuous years as of January | 24 | | 1 of the taxable year, has occupied the same homestead | 25 | | property as a principal residence and domicile or who, for | 26 | | at least 5 continuous years as of January 1 of the taxable |
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| 1 | | year, has occupied the same homestead property as a | 2 | | principal residence and domicile if that person received | 3 | | assistance in the acquisition of the property as part of a | 4 | | government or nonprofit housing program; and | 5 | | (2) who has a household income of $100,000 or less.
| 6 | | (c) The base homestead value must remain constant, except | 7 | | that the assessor may revise it under any of the following | 8 | | circumstances: | 9 | | (1) If the equalized assessed value of a homestead
| 10 | | property for the current tax year is less than the previous | 11 | | base homestead value for that property, then the current | 12 | | equalized assessed value (provided it is not based on a | 13 | | reduced assessed value resulting from a temporary | 14 | | irregularity in the property) becomes the base homestead | 15 | | value in subsequent tax years. | 16 | | (2) For any year in which new buildings, structures,
or | 17 | | other improvements are constructed on the homestead | 18 | | property that would increase its assessed value, the | 19 | | assessor shall adjust the base homestead value with due | 20 | | regard to the value added by the new improvements. | 21 | | (d) The amount of the exemption under this Section is the | 22 | | greater of: (i) the equalized assessed value of the homestead | 23 | | property for the current tax year minus the adjusted homestead | 24 | | value; or (ii) the general homestead deduction. | 25 | | (e) In the case of an apartment building owned and operated | 26 | | as a cooperative, or as a life care facility, that contains |
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| 1 | | residential units that qualify as homestead property of a | 2 | | qualified taxpayer under this Section, the maximum cumulative | 3 | | exemption amount attributed to the entire building or facility | 4 | | shall not exceed the sum of the exemptions calculated for each | 5 | | unit that is a qualified homestead property. The cooperative | 6 | | association, management firm, or other person or entity that | 7 | | manages or controls the cooperative apartment building or life | 8 | | care facility shall credit the exemption attributable to each | 9 | | residential unit only to the apportioned tax liability of the | 10 | | qualified taxpayer as to that unit. Any person who willfully | 11 | | refuses to so credit the exemption is guilty of a Class B | 12 | | misdemeanor. | 13 | | (f) When married persons maintain separate residences, the | 14 | | exemption provided under this Section may be claimed by only | 15 | | one such person and for only one residence. No person who | 16 | | receives an exemption under Section 15-172 of this Code may | 17 | | receive an exemption under this Section. No person who receives | 18 | | an exemption under this Section may receive an exemption under | 19 | | Section 15-175 or 15-176 of this Code. | 20 | | (g) In the event of a sale or other transfer in ownership | 21 | | of the homestead property between spouses or between a parent | 22 | | and a child, the exemption under this Section remains in effect | 23 | | if the new owner has a household income of $100,000 or less. | 24 | | (h) In the event of a sale or other transfer in ownership | 25 | | of the homestead property other than subsection (g) of this | 26 | | Section, the exemption under this Section shall remain in |
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| 1 | | effect for the remainder of the tax year and be calculated | 2 | | using the same base homestead value in which the sale or | 3 | | transfer occurs.
| 4 | | (i) To receive the exemption, a person must submit an | 5 | | application to the county assessor during the period specified | 6 | | by the county assessor. | 7 | | The county assessor shall annually give notice of the | 8 | | application period by mail or by publication. | 9 | | The taxpayer must submit, with the application, an | 10 | | affidavit of the taxpayer's total household income, marital | 11 | | status (and if married the name and address of the applicant's | 12 | | spouse, if known), and principal dwelling place of members of | 13 | | the household on January 1 of the taxable year. The Department | 14 | | shall establish, by rule, a method for verifying the accuracy | 15 | | of affidavits filed by applicants under this Section, and the | 16 | | Chief County Assessment Officer may conduct audits of any | 17 | | taxpayer claiming an exemption under this Section to verify | 18 | | that the taxpayer is eligible to receive the exemption. Each | 19 | | application shall contain or be verified by a written | 20 | | declaration that it is made under the penalties of perjury. A | 21 | | taxpayer's signing a fraudulent application under this Act is | 22 | | perjury, as defined in Section 32-2 of the Criminal Code of | 23 | | 1961. The applications shall be clearly marked as applications | 24 | | for the Long-time Occupant Homestead Exemption and must contain | 25 | | a notice that any taxpayer who receives the exemption is | 26 | | subject to an audit by the Chief County Assessment Officer. |
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| 1 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates | 2 | | Act, no reimbursement by the State is required for the | 3 | | implementation of any mandate created by this Section.
| 4 | | (Source: P.A. 95-644, eff. 10-12-07.)
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