Full Text of HB5423 97th General Assembly
HB5423 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5423 Introduced 2/15/2012, by Rep. Sara Feigenholtz SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Makes a technical change in a Section concerning the long-time occupant homestead exemption.
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| | 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 15-177 as follows: | 6 | | (35 ILCS 200/15-177) | 7 | | Sec. 15-177. The long-time occupant homestead exemption. | 8 | | (a) If the the county has elected, under Section 15-176, to | 9 | | be subject to the provisions of the alternative general | 10 | | homestead exemption, then, for taxable years 2007 and | 11 | | thereafter, regardless of whether the exemption under Section | 12 | | 15-176 applies, qualified homestead property is
entitled to
an | 13 | | annual homestead exemption equal to a reduction in the | 14 | | property's equalized
assessed
value calculated as provided in | 15 | | this Section. | 16 | | (b) As used in this Section: | 17 | | "Adjusted homestead value" means the lesser of
the | 18 | | following values: | 19 | | (1) The property's base homestead value increased
by: | 20 | | (i) 10% for each taxable year after the base year through | 21 | | and including the current tax year for qualified taxpayers | 22 | | with a household income of more than $75,000 but not | 23 | | exceeding $100,000; or (ii) 7% for each taxable year after |
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| 1 | | the base year through and including the current tax year | 2 | | for qualified taxpayers with a household income of $75,000 | 3 | | or less. The increase each year is an increase over the | 4 | | prior year; or | 5 | | (2) The property's equalized assessed value for
the | 6 | | current tax year minus the general homestead deduction. | 7 | | "Base homestead value" means: | 8 | | (1) if the property did not have an adjusted homestead | 9 | | value under Section 15-176 for the base year, then an | 10 | | amount equal to the equalized assessed value of the | 11 | | property for the base year prior to exemptions, minus the | 12 | | general homestead deduction, provided that the property's | 13 | | assessment was not based on a reduced assessed value | 14 | | resulting from a temporary irregularity in the property for | 15 | | that year; or | 16 | | (2) if the property had an adjusted homestead value | 17 | | under Section 15-176 for the base year, then an amount | 18 | | equal to the adjusted homestead value of the property under | 19 | | Section 15-176 for the base year. | 20 | | "Base year" means the taxable year prior to the taxable | 21 | | year in which the taxpayer first qualifies for the exemption | 22 | | under this Section. | 23 | | "Current taxable year" means the taxable year for which
the | 24 | | exemption under this Section is being applied. | 25 | | "Equalized assessed value" means the property's
assessed | 26 | | value as equalized by the Department. |
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| 1 | | "Homestead" or "homestead property" means residential | 2 | | property that as of January 1 of
the tax year is occupied by a | 3 | | qualified taxpayer as his or her principal dwelling place, or | 4 | | that is a leasehold interest on which a single family residence | 5 | | is situated, that is occupied as a residence by a qualified | 6 | | taxpayer who has a legal or equitable interest therein | 7 | | evidenced by a written instrument, as an owner or as a lessee, | 8 | | and on which the person is liable for the payment of property | 9 | | taxes. Residential units in an apartment building owned and | 10 | | operated as a cooperative, or as a life care facility, which | 11 | | are occupied by persons who hold a legal or equitable interest | 12 | | in the cooperative apartment building or life care facility as | 13 | | owners or lessees, and who are liable by contract for the | 14 | | payment of property taxes, are included within this definition | 15 | | of homestead property. A homestead includes the dwelling place,
| 16 | | appurtenant structures, and so much of the surrounding land | 17 | | constituting the parcel on which the dwelling place is situated | 18 | | as is used for residential purposes. If the assessor has | 19 | | established a specific legal description for a portion of | 20 | | property constituting the homestead, then the homestead is | 21 | | limited to the property within that description. | 22 | | "Household income" has the meaning set forth under Section | 23 | | 15-172 of this Code.
| 24 | | "General homestead deduction" means the amount of the | 25 | | general homestead exemption under Section 15-175.
| 26 | | "Life care facility" means a facility defined
in Section 2 |
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| 1 | | of the Life Care Facilities Act. | 2 | | "Qualified homestead property" means homestead property | 3 | | owned by a qualified taxpayer.
| 4 | | "Qualified taxpayer" means any individual: | 5 | | (1) who, for at least 10 continuous years as of January | 6 | | 1 of the taxable year, has occupied the same homestead | 7 | | property as a principal residence and domicile or who, for | 8 | | at least 5 continuous years as of January 1 of the taxable | 9 | | year, has occupied the same homestead property as a | 10 | | principal residence and domicile if that person received | 11 | | assistance in the acquisition of the property as part of a | 12 | | government or nonprofit housing program; and | 13 | | (2) who has a household income of $100,000 or less.
| 14 | | (c) The base homestead value must remain constant, except | 15 | | that the assessor may revise it under any of the following | 16 | | circumstances: | 17 | | (1) If the equalized assessed value of a homestead
| 18 | | property for the current tax year is less than the previous | 19 | | base homestead value for that property, then the current | 20 | | equalized assessed value (provided it is not based on a | 21 | | reduced assessed value resulting from a temporary | 22 | | irregularity in the property) becomes the base homestead | 23 | | value in subsequent tax years. | 24 | | (2) For any year in which new buildings, structures,
or | 25 | | other improvements are constructed on the homestead | 26 | | property that would increase its assessed value, the |
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| 1 | | assessor shall adjust the base homestead value with due | 2 | | regard to the value added by the new improvements. | 3 | | (d) The amount of the exemption under this Section is the | 4 | | greater of: (i) the equalized assessed value of the homestead | 5 | | property for the current tax year minus the adjusted homestead | 6 | | value; or (ii) the general homestead deduction. | 7 | | (e) 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 of a | 10 | | qualified taxpayer under this Section, the maximum cumulative | 11 | | exemption amount attributed to the entire building or facility | 12 | | shall not exceed the sum of the exemptions calculated for each | 13 | | unit that is a qualified homestead property. The cooperative | 14 | | association, management firm, or other person or entity that | 15 | | manages or controls the cooperative apartment building or life | 16 | | care facility shall credit the exemption attributable to each | 17 | | residential unit only to the apportioned tax liability of the | 18 | | qualified taxpayer as to that unit. Any person who willfully | 19 | | refuses to so credit the exemption is guilty of a Class B | 20 | | misdemeanor. | 21 | | (f) When married persons maintain separate residences, the | 22 | | exemption provided under this Section may be claimed by only | 23 | | one such person and for only one residence. No person who | 24 | | receives an exemption under Section 15-172 of this Code may | 25 | | receive an exemption under this Section. No person who receives | 26 | | an exemption under this Section may receive an exemption under |
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| 1 | | Section 15-175 or 15-176 of this Code. | 2 | | (g) In the event of a sale or other transfer in ownership | 3 | | of the homestead property between spouses or between a parent | 4 | | and a child, the exemption under this Section remains in effect | 5 | | if the new owner has a household income of $100,000 or less. | 6 | | (h) In the event of a sale or other transfer in ownership | 7 | | of the homestead property other than subsection (g) of this | 8 | | Section, the exemption under this Section shall remain in | 9 | | effect for the remainder of the tax year and be calculated | 10 | | using the same base homestead value in which the sale or | 11 | | transfer occurs.
| 12 | | (i) To receive the exemption, a person must submit an | 13 | | application to the county assessor during the period specified | 14 | | by the county assessor. | 15 | | The county assessor shall annually give notice of the | 16 | | application period by mail or by publication. | 17 | | The taxpayer must submit, with the application, an | 18 | | affidavit of the taxpayer's total household income, marital | 19 | | status (and if married the name and address of the applicant's | 20 | | spouse, if known), and principal dwelling place of members of | 21 | | the household on January 1 of the taxable year. The Department | 22 | | shall establish, by rule, a method for verifying the accuracy | 23 | | of affidavits filed by applicants under this Section, and the | 24 | | Chief County Assessment Officer may conduct audits of any | 25 | | taxpayer claiming an exemption under this Section to verify | 26 | | that the taxpayer is eligible to receive the exemption. Each |
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| 1 | | application shall contain or be verified by a written | 2 | | declaration that it is made under the penalties of perjury. A | 3 | | taxpayer's signing a fraudulent application under this Act is | 4 | | perjury, as defined in Section 32-2 of the Criminal Code of | 5 | | 1961. The applications shall be clearly marked as applications | 6 | | for the Long-time Occupant Homestead Exemption and must contain | 7 | | a notice that any taxpayer who receives the exemption is | 8 | | subject to an audit by the Chief County Assessment Officer. | 9 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates | 10 | | Act, no reimbursement by the State is required for the | 11 | | implementation of any mandate created by this Section.
| 12 | | (Source: P.A. 95-644, eff. 10-12-07.)
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