Full Text of HB1118 97th General Assembly
HB1118 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1118 Introduced 02/07/11, by Rep. Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
| | Amends the Property Tax Code. Provides that the alternative general homestead exemption applies on a permanent basis and increases the amount of the exemption to $60,000 for taxable year 2011 and thereafter. Effective immediately.
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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 | | Section 15-176 as follows: | 6 | | (35 ILCS 200/15-176) | 7 | | Sec. 15-176. Alternative general homestead exemption. | 8 | | (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. | 15 | | (b) As used in this Section: | 16 | | (1) "Assessor" means the supervisor of assessments or | 17 | | the chief county assessment officer of each county. | 18 | | (2) "Adjusted homestead value" means the lesser of the | 19 | | following values: | 20 | | (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 |
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| 1 | | 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. | 6 | | (B) The property's equalized assessed value for | 7 | | the current tax
year minus: (i) $4,500 in Cook County | 8 | | or $3,500 in all other counties in tax year 2003;
(ii) | 9 | | $5,000 in all counties in tax years 2004 and 2005; and | 10 | | (iii) the lesser of the amount of the general homestead | 11 | | exemption under Section 15-175 or an amount equal to | 12 | | the increase in the equalized assessed value for the | 13 | | current tax year above the equalized assessed value for | 14 | | 1977 in tax year 2006 and thereafter. | 15 | | (3) "Base homestead value". | 16 | | (A) Except as provided in subdivision (b)(3)(A-5) | 17 | | or (b)(3)(B), "base homestead value" means the | 18 | | equalized assessed value of the property for the base | 19 | | year
prior to exemptions, minus (i) $4,500 in Cook | 20 | | County or $3,500 in all other counties in tax year | 21 | | 2003, (ii) $5,000 in all counties in tax years
2004 and | 22 | | 2005, or (iii) the lesser of the amount of the general | 23 | | homestead exemption under Section 15-175 or an amount | 24 | | equal to the increase in the equalized assessed value | 25 | | for the current tax year above the equalized assessed | 26 | | value for 1977 in tax year 2006 and
thereafter, |
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| 1 | | provided that it was assessed for that
year as | 2 | | residential property qualified for any of the | 3 | | homestead exemptions
under Sections 15-170 through | 4 | | 15-175 of this Code, then in force, and
further | 5 | | provided that the property's assessment was not based | 6 | | on a reduced
assessed value resulting from a temporary | 7 | | irregularity in the property for
that year. Except as | 8 | | provided in subdivision (b)(3)(B), if the property did | 9 | | not have a
residential
equalized assessed value for the | 10 | | base year, then "base homestead value" means the base
| 11 | | homestead value established by the assessor under | 12 | | subsection (c). | 13 | | (A-5) On or before September 1, 2007, in Cook | 14 | | County, the base homestead value, as set forth under | 15 | | subdivision (b)(3)(A) and except as provided under | 16 | | subdivision (b) (3) (B), must be recalculated as the | 17 | | equalized assessed value of the property for the base | 18 | | year, prior to exemptions, minus: | 19 | | (1) if the general assessment year for the | 20 | | property was 2003, the lesser of (i) $4,500 or (ii) | 21 | | the amount equal to the increase in equalized | 22 | | assessed value for the 2002 tax year above the | 23 | | equalized assessed value for 1977; | 24 | | (2) if the general assessment year for the | 25 | | property was 2004, the lesser of (i) $4,500 or (ii) | 26 | | the amount equal to the increase in equalized |
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| 1 | | assessed value for the 2003 tax year above the | 2 | | equalized assessed value for 1977; | 3 | | (3) if the general assessment year for the | 4 | | property was 2005, the lesser of (i) $5,000 or (ii) | 5 | | the amount equal to the increase in equalized | 6 | | assessed value for the 2004 tax year above the | 7 | | equalized assessed value for 1977.
| 8 | | (B) If the property is sold or ownership is | 9 | | otherwise transferred, other than sales or transfers | 10 | | between spouses or between a parent and a child, "base | 11 | | homestead value" means the equalized assessed value of | 12 | | the property at the time of the sale or transfer prior | 13 | | to exemptions, minus: (i) $4,500 in Cook County or | 14 | | $3,500 in all other counties in tax year 2003; (ii) | 15 | | $5,000 in all counties in tax years 2004 and 2005; and | 16 | | (iii) the lesser of the amount of the general homestead | 17 | | exemption under Section 15-175 or an amount equal to | 18 | | the increase in the equalized assessed value for the | 19 | | current tax year above the equalized assessed value for | 20 | | 1977 in tax year 2006 and thereafter, provided that it | 21 | | was assessed as residential property qualified for any | 22 | | of the homestead exemptions
under Sections 15-170 | 23 | | through 15-175 of this Code, then in force, and
further | 24 | | provided that the property's assessment was not based | 25 | | on a reduced
assessed value resulting from a temporary | 26 | | irregularity in the property. |
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| 1 | | (3.5) "Base year" means (i) tax year 2002 in Cook | 2 | | County or (ii) tax year 2008 or 2009 in all other counties | 3 | | in accordance with the designation made by the county as | 4 | | provided in subsection (k).
| 5 | | (4) "Current tax year" means the tax year for which the | 6 | | exemption under
this Section is being applied. | 7 | | (5) "Equalized assessed value" means the property's | 8 | | assessed value as
equalized by the Department. | 9 | | (6) "Homestead" or "homestead property" means: | 10 | | (A) Residential property that as of January 1 of | 11 | | the tax year is
occupied by its owner or owners as his, | 12 | | her, or their principal dwelling
place, or that is a | 13 | | leasehold interest on which a single family residence | 14 | | is
situated, that is occupied as a residence by a | 15 | | person who has a legal or
equitable interest therein | 16 | | evidenced by a written instrument, as an owner
or as a | 17 | | lessee, and on which the person is liable for the | 18 | | payment of
property taxes. Residential units in an | 19 | | apartment building owned and
operated as a | 20 | | cooperative, or as a life care facility, which are | 21 | | occupied by
persons who hold a legal or equitable | 22 | | interest in the cooperative apartment
building or life | 23 | | care facility as owners or lessees, and who are liable | 24 | | by
contract for the payment of property taxes, shall be | 25 | | included within this
definition of homestead property. | 26 | | (B) A homestead includes the dwelling place, |
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| 1 | | appurtenant
structures, and so much of the surrounding | 2 | | land constituting the parcel on
which the dwelling | 3 | | place is situated as is used for residential purposes. | 4 | | If
the assessor has established a specific legal | 5 | | description for a portion of
property constituting the | 6 | | homestead, then the homestead shall be limited to
the | 7 | | property within that description. | 8 | | (7) "Life care facility" means a facility as defined in | 9 | | Section 2 of the
Life
Care Facilities Act. | 10 | | (c) If the property did not have a residential equalized | 11 | | assessed value for
the base year as provided in subdivision | 12 | | (b)(3)(A) of this Section, then the assessor
shall first | 13 | | determine an initial value for the property by comparison with
| 14 | | assessed values for the base year of other properties having | 15 | | physical and
economic characteristics similar to those of the | 16 | | subject property, so that the
initial value is uniform in | 17 | | relation to assessed values of those other
properties for the | 18 | | base year. The product of the initial value multiplied by
the | 19 | | equalized factor for the base year for homestead properties in | 20 | | that county, less: (i) $4,500 in Cook County or $3,500 in all | 21 | | other counties in tax years 2003; (ii) $5,000 in all counties | 22 | | in tax year 2004 and 2005; and (iii) the lesser of the amount | 23 | | of the general homestead exemption under Section 15-175 or an | 24 | | amount equal to the increase in the equalized assessed value | 25 | | for the current tax year above the equalized assessed value for | 26 | | 1977 in tax year 2006 and thereafter, is the base homestead |
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| 1 | | value. | 2 | | For any tax year for which the assessor determines or | 3 | | adjusts an initial
value and
hence a base homestead value under | 4 | | this subsection (c), the initial value shall
be subject
to | 5 | | review by the same procedures applicable to assessed values | 6 | | established
under this
Code for that tax year. | 7 | | (d) The base homestead value shall remain constant, except | 8 | | that the assessor
may
revise it under the following | 9 | | circumstances: | 10 | | (1) If the equalized assessed value of a homestead | 11 | | property for the current
tax year is less than the previous | 12 | | base homestead value for that property, then the
current | 13 | | equalized assessed value (provided it is not based on a | 14 | | reduced assessed
value resulting from a temporary | 15 | | irregularity in the property) shall become the
base | 16 | | homestead value in subsequent tax years. | 17 | | (2) For any year in which new buildings, structures, or | 18 | | other
improvements are constructed on the homestead | 19 | | property that would increase its
assessed value, the | 20 | | assessor shall adjust the base homestead value as provided | 21 | | in
subsection (c) of this Section with due regard to the | 22 | | value added by the new
improvements. | 23 | | (3) If the property is sold or ownership is otherwise | 24 | | transferred, the base homestead value of the property shall | 25 | | be adjusted as provided in subdivision (b)(3)(B). This item | 26 | | (3) does not apply to sales or transfers between spouses or |
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| 1 | | between a parent and a child. | 2 | | (4) the recalculation required in Cook County under | 3 | | subdivision (b)(3)(A-5).
| 4 | | (e) The amount of the exemption under this Section is the | 5 | | equalized assessed
value of the homestead property for the | 6 | | current tax year, minus the adjusted homestead
value, with the | 7 | | following exceptions: | 8 | | (1) In Cook County, the exemption under this Section | 9 | | shall not exceed $20,000 for any taxable year through tax | 10 | | year: | 11 | | (i) 2005, if the general assessment year for the
| 12 | | property is 2003; | 13 | | (ii) 2006, if the general assessment year for the
| 14 | | property is 2004; or | 15 | | (iii) 2007, if the general assessment year for the
| 16 | | property is 2005. | 17 | | (1.1) Thereafter, in Cook County, and in all other | 18 | | counties, the exemption is as follows: | 19 | | (i) if the general assessment year for the property | 20 | | is 2006, then the exemption may not exceed: $33,000 for | 21 | | taxable year 2006; $26,000 for taxable year 2007; | 22 | | $20,000 for taxable years 2008 and 2009; $16,000 for | 23 | | taxable year 2010; and $60,000 $12,000 for taxable year | 24 | | 2011 and thereafter ; | 25 | | (ii) if the general assessment year for the | 26 | | property is 2007, then the exemption may not exceed: |
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| 1 | | $33,000 for taxable year 2007; $26,000 for taxable year | 2 | | 2008; $20,000 for taxable years 2009 and 2010; and | 3 | | $60,000 for taxable year 2011 and thereafter $16,000 | 4 | | for taxable year 2011; and $12,000 for taxable year | 5 | | 2012 ; and | 6 | | (iii) if the general assessment year for the | 7 | | property is 2008, then the exemption may not exceed: | 8 | | $33,000 for taxable year 2008; $26,000 for taxable year | 9 | | 2009; $20,000 for taxable year years 2010 and 2011 ; and | 10 | | $60,000 for taxable year 2011 and thereafter $16,000 | 11 | | for taxable year 2012; and $12,000 for taxable year | 12 | | 2013 . | 13 | | (1.5) In Cook County, for the 2006 taxable year only, the | 14 | | maximum amount of the exemption set forth under subsection | 15 | | (e)(1.1)(i) of this Section may be increased: (i) by $7,000 if | 16 | | the equalized assessed value of the property in that taxable | 17 | | year exceeds the equalized assessed value of that property in | 18 | | 2002 by 100% or more; or (ii) by $2,000 if the equalized | 19 | | assessed value of the property in that taxable year exceeds the | 20 | | equalized assessed value of that property in 2002 by more than | 21 | | 80% but less than 100%.
| 22 | | (2) In the case of homestead property that also | 23 | | qualifies for
the exemption under Section 15-172, the | 24 | | property is entitled to the exemption under
this Section, | 25 | | limited to the amount of (i) $4,500 in Cook County or | 26 | | $3,500 in all other counties in tax year 2003, (ii) $5,000 |
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| 1 | | in all counties in tax years 2004 and 2005, or (iii) the | 2 | | lesser of the amount of the general homestead exemption | 3 | | under Section 15-175 or an amount equal to the increase in | 4 | | the equalized assessed value for the current tax year above | 5 | | the equalized assessed value for 1977 in tax year 2006 and | 6 | | thereafter. | 7 | | (f) In the case of an apartment building owned and operated | 8 | | as a cooperative, or
as a life care facility, that contains | 9 | | residential units that qualify as homestead property
under this | 10 | | Section, the maximum cumulative exemption amount attributed to | 11 | | the entire
building or facility shall not exceed the sum of the | 12 | | exemptions calculated for each
qualified residential unit. The | 13 | | cooperative association, management firm, or other person
or | 14 | | entity that manages or controls the cooperative apartment | 15 | | building or life care facility
shall credit the exemption | 16 | | attributable to each residential unit only to the apportioned | 17 | | tax
liability of the owner or other person responsible for | 18 | | payment of taxes as to that unit.
Any person who willfully | 19 | | refuses to so credit the exemption is guilty of a Class B
| 20 | | misdemeanor. | 21 | | (g) When married persons maintain separate residences, the | 22 | | exemption provided
under this Section shall be claimed by only | 23 | | one such person and for only one residence. | 24 | | (h) In the event of a sale or other transfer in ownership | 25 | | of the homestead property, the exemption under this
Section | 26 | | shall remain in effect for the remainder of the tax year and be |
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| 1 | | calculated using the same base homestead value in which the | 2 | | sale or transfer occurs, but (other than for sales or transfers | 3 | | between spouses or between a parent and a child) shall be | 4 | | calculated for any subsequent tax year using the new base | 5 | | homestead value as provided in subdivision (b)(3)(B).
The | 6 | | assessor may require the new owner of the property to apply for | 7 | | the exemption in the
following year. | 8 | | (i) The assessor may determine whether property qualifies | 9 | | as a homestead under
this Section by application, visual | 10 | | inspection, questionnaire, or other
reasonable methods.
Each | 11 | | year, at the time the assessment books are certified to the | 12 | | county clerk
by the board
of review, the assessor shall furnish | 13 | | to the county clerk a list of the
properties qualified
for the | 14 | | homestead exemption under this Section. The list shall note the | 15 | | base
homestead
value of each property to be used in the | 16 | | calculation of the exemption for the
current tax
year. | 17 | | (j) In counties with 3,000,000 or more inhabitants, the | 18 | | provisions of this Section apply as follows: | 19 | | (1) If the general assessment year for the property is | 20 | | 2003, this Section
applies for assessment years 2003 and | 21 | | thereafter through 2011.
Thereafter, the provisions of | 22 | | Section 15-175 apply . | 23 | | (2) If the general assessment year for the property is | 24 | | 2004, this Section
applies for assessment years 2004 and | 25 | | thereafter through 2012.
Thereafter, the provisions of | 26 | | Section 15-175 apply . |
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| 1 | | (3) If the general assessment year for the property is | 2 | | 2005, this Section
applies for assessment years 2005 and | 3 | | thereafter through 2013.
Thereafter, the provisions of | 4 | | Section 15-175 apply . | 5 | | In counties with less than 3,000,000 inhabitants, this | 6 | | Section applies for assessment years (i) 2009 and thereafter , | 7 | | 2010, 2011, and 2012 if tax year 2008 is the designated base | 8 | | year or (ii) 2010 and thereafter , 2011, 2012, and 2013 if tax | 9 | | year 2009 is the designated base year. Thereafter, the | 10 | | provisions of Section 15-175 apply. | 11 | | (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 6 months after | 14 | | the effective date of this amendatory Act of the 96th General | 15 | | Assembly. In a county other than Cook County, the ordinance | 16 | | must designate either tax year 2008
or tax year 2009
as the | 17 | | base year.
| 18 | | (l) Notwithstanding Sections 6 and 8 of the State Mandates | 19 | | Act, no
reimbursement
by the State is required for the | 20 | | implementation of any mandate created by this
Section. | 21 | | (Source: P.A. 95-644, eff. 10-12-07; 96-1418, eff. 8-2-10.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
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