HB4855 101ST GENERAL ASSEMBLY

LRB101 17536 HLH 66952 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4855

Introduced 2/18/2020, by Rep. Michael T. Marron

SYNOPSIS AS INTRODUCED:

35 ILCS 200/10-140
35 ILCS 200/15-173

Amends the Property Tax Code. In a Section granting a natural disaster homestead exemption, removes language providing that the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster. Removes provisions providing that the taxpayer's initial application for a natural disaster homestead exemption must be made no later than the first taxable year after the residential structure is rebuilt. Provides that, if the square footage of the rebuilt structure exceeds 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster, then the amount of the natural disaster homestead exemption is the equalized assessed value per square foot of the rebuilt structure multiplied by 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster minus the base amount. Provides that the amendatory Act is retroactive to the 2012 taxable year. Sets forth provisions concerning the valuation of farm improvements that have been rebuilt following a natural disaster. 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 Property Tax Code is amended by changing Sections 10-140 and 15-173 as follows:

(35 ILCS 200/10-140)

Sec. 10-140. Other improvements; natural disaster.

(a) Improvements other than the dwelling, appurtenant structures and site, including, but not limited to, roadside stands and buildings used for storing and protecting farm machinery and equipment, for housing livestock or poultry, or for storing feed, grain or any substance that contributes to or is a product of the farm, shall have an equalized assessed value of 33 1/3% of their value, based upon the current use of those buildings and their contribution to the productivity of the farm.

(b) Improvements described in subsection (a) that have been rebuilt following a natural disaster occurring in taxable year 2020 or thereafter shall be valued as follows:

(1) if the square footage of the improvement does not exceed 110% of the square footage of the original improvement as it existed immediately prior to the natural disaster, then the improvement shall be assessed at the lesser of (i) the equalized assessed value of the improvement in the base year or (ii) the current year's equalized assessed value; and

(2) if the square footage of the improvement exceeds 110% of the square footage of the original improvement as it existed immediately prior to the natural disaster, then the improvement shall be assessed at the lesser of (i) the equalized assessed value per square foot of the improvement in the base year multiplied by 110% of the square footage of the original improvement as it existed immediately prior to the natural disaster or (ii) the current year's equalized assessed value.

The valuation under this subsection (b) shall continue until the taxable year in which the property is first sold or transferred after the date of the natural disaster.

To receive the valuation under this subsection (b): (i) the improvement must be rebuilt within 2 years after the date of the natural disaster; and (ii) the taxpayer shall submit an application to the chief county assessment officer of the county in which the property is located by July 1 of each taxable year. A county may, by resolution, establish a date for submission of applications that is different than July 1. The chief county assessment officer may require additional documentation to be provided by the applicant.

(c) As used in this Section:

"Base year" and "natural disaster" have the meanings given to those terms in Section 15-173.

(Source: P.A. 86-954; 88-455.)

(35 ILCS 200/15-173)

Sec. 15-173. Natural Disaster Homestead Exemption.

(a) This Section may be cited as the Natural Disaster Homestead Exemption.

(b) As used in this Section:

"Base amount" means the base year equalized assessed value of the residence.

"Base year" means the taxable year prior to the taxable year in which the natural disaster occurred.

"Chief county assessment officer" means the County Assessor or Supervisor of Assessments of the county in which the property is located.

"Equalized assessed value" means the assessed value as equalized by the Illinois Department of Revenue.

"Homestead property" has the meaning ascribed to that term in Section 15-175 of this Code.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a residential structure affected by flooding, the structure shall not be eligible for this homestead improvement exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. A proclamation of disaster by the President of the United States or Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster under this Section.

"Residential structure" shall include the livable area of a residence, as well as decks, sheds, and other outbuildings that are on land that is contiguous with the homestead residence.

(c) A homestead exemption shall be granted by the chief county assessment officer for homestead properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year 2012 or any taxable year thereafter. If the square footage of the rebuilt residential structure does not exceed 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster, then the The amount of the exemption is the equalized assessed value of the residence in the first taxable year for which the taxpayer applies for an exemption under this Section minus the base amount. If the square footage of the rebuilt residential structure exceeds 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster, then the amount of the exemption is the equalized assessed value per square foot of the residential structure in the first taxable year for which the taxpayer applies for an exemption multiplied by 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster minus the base amount. To be eligible for an exemption under this Section, : (i) the residential structure must be rebuilt within 2 years after the date of the natural disaster; and (ii) the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster. The taxpayer's initial application for an exemption under this Section must be made no later than the first taxable year after the residential structure is rebuilt. The exemption shall continue at the same annual amount until the taxable year in which the property is sold or transferred.

(d) To receive the exemption, the taxpayer shall submit an application to the chief county assessment officer of the county in which the property is located by July 1 of each taxable year. A county may, by resolution, establish a date for submission of applications that is different than July 1. The chief county assessment officer may require additional documentation to be provided by the applicant. The applications shall be clearly marked as applications for the Natural Disaster Homestead Exemption.

(e) Property is not eligible for an exemption under this Section and Section 15-180 for the same natural disaster or catastrophic event. The property may, however, remain eligible for an additional exemption under Section 15-180 for any separate event occurring after the property qualified for an exemption under this Section.

(f) The exemption under this Section carries over to the benefit of the surviving spouse as long as the spouse holds the legal or beneficial title to the homestead and permanently resides thereon.

(f-5) The changes made by this amendatory Act of the 101st General Assembly apply to the 2012 taxable year and each taxable year thereafter. Any property owner denied an exemption prior to this amendatory Act of the 101st General Assembly who would be entitled to an exemption under this Section, as amended, may obtain relief by certificate of error.

(g) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

(Source: P.A. 97-716, eff. 6-29-12.)

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