Full Text of HB3392 098th General Assembly
HB3392 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3392 Introduced , by Rep. Jeanne M Ives SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Increases the maximum reduction under the General Homestead Exemption from $6,000 to $7,000 for taxable year 2013 and indexes the reduction to the Consumer Price Index. 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 15-175 as follows:
| 6 | | (35 ILCS 200/15-175)
| 7 | | Sec. 15-175. General homestead exemption. | 8 | | (a) Except as provided in Sections 15-176 and 15-177, | 9 | | homestead
property is
entitled to an annual homestead exemption | 10 | | limited, except as described here
with relation to | 11 | | cooperatives, to a reduction in the equalized assessed value
of | 12 | | homestead property equal to the increase in equalized assessed | 13 | | value for the
current assessment year above the equalized | 14 | | assessed value of the property for
1977, up to the maximum | 15 | | reduction set forth below. If however, the 1977
equalized | 16 | | assessed value upon which taxes were paid is subsequently | 17 | | determined
by local assessing officials, the Property Tax | 18 | | Appeal Board, or a court to have
been excessive, the equalized | 19 | | assessed value which should have been placed on
the property | 20 | | for 1977 shall be used to determine the amount of the | 21 | | exemption.
| 22 | | (b) Except as provided in Section 15-176, the maximum | 23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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| 1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other | 2 | | counties. Except as provided in Sections 15-176 and 15-177, for | 3 | | taxable years 2004 through 2007, the maximum reduction shall be | 4 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, | 5 | | and, for taxable years 2009 through 2012 and thereafter , the | 6 | | maximum reduction is $6,000 in all counties , for taxable year | 7 | | 2013, the maximum reduction is $7,000 in all counties, and for | 8 | | taxable years 2014 and thereafter, the maximum reduction is the | 9 | | maximum reduction for the prior taxable year increased by the | 10 | | annual rate of increase, for the previous
calendar year, of the | 11 | | Consumer Price Index for All Urban
Consumers for all items, | 12 | | published by the United States
Bureau of Labor Statistics . If a | 13 | | county has elected to subject itself to the provisions of | 14 | | Section 15-176 as provided in subsection (k) of that Section, | 15 | | then, for the first taxable year only after the provisions of | 16 | | Section 15-176 no longer apply, for owners who, for the taxable | 17 | | year, have not been granted a senior citizens assessment freeze | 18 | | homestead exemption under Section 15-172 or a long-time | 19 | | occupant homestead exemption under Section 15-177, there shall | 20 | | be an additional exemption of $5,000 for owners with a | 21 | | household income of $30,000 or less.
| 22 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 23 | | based on the most
recent assessment, the equalized assessed | 24 | | value of
the homestead property for the current assessment year | 25 | | is greater than the
equalized assessed value of the property | 26 | | for 1977, the owner of the property
shall automatically receive |
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| 1 | | the exemption granted under this Section in an
amount equal to | 2 | | the increase over the 1977 assessment up to the maximum
| 3 | | reduction set forth in this Section.
| 4 | | (d) If in any assessment year beginning with the 2000 | 5 | | assessment year,
homestead property has a pro-rata valuation | 6 | | under
Section 9-180 resulting in an increase in the assessed | 7 | | valuation, a reduction
in equalized assessed valuation equal to | 8 | | the increase in equalized assessed
value of the property for | 9 | | the year of the pro-rata valuation above the
equalized assessed | 10 | | value of the property for 1977 shall be applied to the
property | 11 | | on a proportionate basis for the period the property qualified | 12 | | as
homestead property during the assessment year. The maximum | 13 | | proportionate
homestead exemption shall not exceed the maximum | 14 | | homestead exemption allowed in
the county under this Section | 15 | | divided by 365 and multiplied by the number of
days the | 16 | | property qualified as homestead property.
| 17 | | (e) The chief county assessment officer may, when | 18 | | considering whether to grant a leasehold exemption under this | 19 | | Section, require the following conditions to be met: | 20 | | (1) that a notarized application for the exemption, | 21 | | signed by both the owner and the lessee of the property, | 22 | | must be submitted each year during the application period | 23 | | in effect for the county in which the property is located; | 24 | | (2) that a copy of the lease must be filed with the | 25 | | chief county assessment officer by the owner of the | 26 | | property at the time the notarized application is |
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| 1 | | submitted; | 2 | | (3) that the lease must expressly state that the lessee | 3 | | is liable for the payment of property taxes; and | 4 | | (4) that the lease must include the following language | 5 | | in substantially the following form: | 6 | | "Lessee shall be liable for the payment of real | 7 | | estate taxes with respect to the residence in | 8 | | accordance with the terms and conditions of Section | 9 | | 15-175 of the Property Tax Code ( 35 ILCS 200/15-175 ) . | 10 | | The permanent real estate index number for the premises | 11 | | is (insert number), and, according to the most recent | 12 | | property tax bill, the current amount of real estate | 13 | | taxes associated with the premises is (insert amount) | 14 | | per year. The parties agree that the monthly rent set | 15 | | forth above shall be increased or decreased pro rata | 16 | | (effective January 1 of each calendar year) to reflect | 17 | | any increase or decrease in real estate taxes. Lessee | 18 | | shall be deemed to be satisfying Lessee's liability for | 19 | | the above mentioned real estate taxes with the monthly | 20 | | rent payments as set forth above (or increased or | 21 | | decreased as set forth herein)." . | 22 | | In addition, if there is a change in lessee, or if the | 23 | | lessee vacates the property, then the chief county assessment | 24 | | officer may require the owner of the property to notify the | 25 | | chief county assessment officer of that change. | 26 | | This subsection (e) does not apply to leasehold interests |
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| 1 | | in property owned by a municipality. | 2 | | (f) "Homestead property" under this Section includes | 3 | | residential property that is
occupied by its owner or owners as | 4 | | his or their principal dwelling place, or
that is a leasehold | 5 | | interest on which a single family residence is situated,
which | 6 | | is occupied as a residence by a person who has an ownership | 7 | | interest
therein, legal or equitable or as a lessee, and on | 8 | | which the person is
liable for the payment of property taxes. | 9 | | For land improved with
an apartment building owned and operated | 10 | | as a cooperative or a building which
is a life care facility as | 11 | | defined in Section 15-170 and considered to
be a cooperative | 12 | | under Section 15-170, the maximum reduction from the equalized
| 13 | | assessed value shall be limited to the increase in the value | 14 | | above the
equalized assessed value of the property for 1977, up | 15 | | to
the maximum reduction set forth above, multiplied by the | 16 | | number of apartments
or units occupied by a person or persons | 17 | | who is liable, by contract with the
owner or owners of record, | 18 | | for paying property taxes on the property and is an
owner of | 19 | | record of a legal or equitable interest in the cooperative
| 20 | | apartment building, other than a leasehold interest. For | 21 | | purposes of this
Section, the term "life care facility" has the | 22 | | meaning stated in Section
15-170.
| 23 | | "Household", as used in this Section,
means the owner, the | 24 | | spouse of the owner, and all persons using
the
residence of the | 25 | | owner as their principal place of residence.
| 26 | | "Household income", as used in this Section,
means the |
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| 1 | | combined income of the members of a household
for the calendar | 2 | | year preceding the taxable year.
| 3 | | "Income", as used in this Section,
has the same meaning as | 4 | | provided in Section 3.07 of the Senior
Citizens
and Disabled | 5 | | Persons Property Tax Relief Act,
except that
"income" does not | 6 | | include veteran's benefits.
| 7 | | (g) In a cooperative where a homestead exemption has been | 8 | | granted, the
cooperative association or its management firm | 9 | | shall credit the savings
resulting from that exemption only to | 10 | | the apportioned tax liability of the
owner who qualified for | 11 | | the exemption. Any person who willfully refuses to so
credit | 12 | | the savings shall be guilty of a Class B misdemeanor.
| 13 | | (h) Where married persons maintain and reside in separate | 14 | | residences qualifying
as homestead property, each residence | 15 | | shall receive 50% of the total reduction
in equalized assessed | 16 | | valuation provided by this Section.
| 17 | | (i) In all counties, the assessor
or chief county | 18 | | assessment officer may determine the
eligibility of | 19 | | residential property to receive the homestead exemption and the | 20 | | amount of the exemption by
application, visual inspection, | 21 | | questionnaire or other reasonable methods. The
determination | 22 | | shall be made in accordance with guidelines established by the
| 23 | | Department, provided that the taxpayer applying for an | 24 | | additional general exemption under this Section shall submit to | 25 | | the chief county assessment officer an application with an | 26 | | affidavit of the applicant's total household income, age, |
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| 1 | | marital status (and, if married, the name and address of the | 2 | | applicant's spouse, if known), and principal dwelling place of | 3 | | members of the household on January 1 of the taxable year. The | 4 | | Department shall issue guidelines establishing a method for | 5 | | verifying the accuracy of the affidavits filed by applicants | 6 | | under this paragraph. The applications shall be clearly marked | 7 | | as applications for the Additional General Homestead | 8 | | Exemption.
| 9 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 10 | | the event of a sale
of
homestead property the homestead | 11 | | exemption shall remain in effect for the
remainder of the | 12 | | assessment year of the sale. The assessor or chief county
| 13 | | assessment officer may require the new
owner of the property to | 14 | | apply for the homestead exemption for the following
assessment | 15 | | year.
| 16 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 17 | | Act, no reimbursement by the State is required for the | 18 | | implementation of any mandate created by this Section.
| 19 | | (Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12; | 20 | | revised 9-20-12.)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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