Full Text of HB5926 096th General Assembly
HB5926 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB5926
Introduced 2/10/2010, by Rep. Deborah Mell SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that the alternative general homestead exemption applies on a permanent basis. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB5926 |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Section 15-176 as follows:
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| (35 ILCS 200/15-176)
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| Sec. 15-176. Alternative general homestead exemption.
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| (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.
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| (b) As used in this Section:
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| (1) "Assessor" means the supervisor of assessments or | 17 |
| the chief county assessment officer of each county.
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| (2) "Adjusted homestead value" means the lesser of the | 19 |
| following values:
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| (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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| 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.
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| (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.
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| (3) "Base homestead value".
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| (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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| 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
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| homestead value established by the assessor under | 12 |
| subsection (c).
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| (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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| 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.
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| (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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| (3.5) "Base year" means (i) tax year 2002 in Cook | 2 |
| County or (ii) tax year 2005 or 2006 in all other counties | 3 |
| in accordance with the designation made by the county as | 4 |
| provided in subsection (k).
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| (4) "Current tax year" means the tax year for which the | 6 |
| exemption under
this Section is being applied.
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| (5) "Equalized assessed value" means the property's | 8 |
| assessed value as
equalized by the Department.
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| (6) "Homestead" or "homestead property" means:
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| (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.
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| (B) A homestead includes the dwelling place, |
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| 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.
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| (7) "Life care facility" means a facility as defined in | 9 |
| Section 2 of the
Life
Care Facilities Act.
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| (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
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| 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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| value.
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| 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.
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| (d) The base homestead value shall remain constant, except | 8 |
| that the assessor
may
revise it under the following | 9 |
| circumstances:
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| (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.
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| (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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| between a parent and a child.
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| (4) the recalculation required in Cook County under | 3 |
| subdivision (b)(3)(A-5).
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| (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
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| property is 2003; | 13 |
| (ii) 2006, if the general assessment year for the
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| property is 2004; or | 15 |
| (iii) 2007, if the general assessment year for the
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| 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; and | 22 |
| $20,000 for taxable year 2008 and thereafter ; | 23 |
| (ii) if the general assessment year for the | 24 |
| property is 2007, then the exemption may not exceed: | 25 |
| $33,000 for taxable year 2007; $26,000 for taxable year | 26 |
| 2008; and $20,000 for taxable year 2009 and thereafter ; |
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| and | 2 |
| (iii) if the general assessment year for the | 3 |
| property is 2008, then the exemption may not exceed: | 4 |
| $33,000 for taxable year 2008; $26,000 for taxable year | 5 |
| 2009; and $20,000 for taxable year 2010 and thereafter . | 6 |
| (1.5) In Cook County, for the 2006 taxable year only, the | 7 |
| maximum amount of the exemption set forth under subsection | 8 |
| (e)(1.1)(i) of this Section may be increased: (i) by $7,000 if | 9 |
| the equalized assessed value of the property in that taxable | 10 |
| year exceeds the equalized assessed value of that property in | 11 |
| 2002 by 100% or more; or (ii) by $2,000 if the equalized | 12 |
| assessed value of the property in that taxable year exceeds the | 13 |
| equalized assessed value of that property in 2002 by more than | 14 |
| 80% but less than 100%.
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| (2) In the case of homestead property that also | 16 |
| qualifies for
the exemption under Section 15-172, the | 17 |
| property is entitled to the exemption under
this Section, | 18 |
| limited to the amount of (i) $4,500 in Cook County or | 19 |
| $3,500 in all other counties in tax year 2003, (ii) $5,000 | 20 |
| in all counties in tax years 2004 and 2005, or (iii) the | 21 |
| lesser of the amount of the general homestead exemption | 22 |
| under Section 15-175 or an amount equal to the increase in | 23 |
| the equalized assessed value for the current tax year above | 24 |
| the equalized assessed value for 1977 in tax year 2006 and | 25 |
| thereafter.
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| (f) In the case of an apartment building owned and operated |
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| as a cooperative, or
as a life care facility, that contains | 2 |
| residential units that qualify as homestead property
under this | 3 |
| Section, the maximum cumulative exemption amount attributed to | 4 |
| the entire
building or facility shall not exceed the sum of the | 5 |
| exemptions calculated for each
qualified residential unit. The | 6 |
| cooperative association, management firm, or other person
or | 7 |
| entity that manages or controls the cooperative apartment | 8 |
| building or life care facility
shall credit the exemption | 9 |
| attributable to each residential unit only to the apportioned | 10 |
| tax
liability of the owner or other person responsible for | 11 |
| payment of taxes as to that unit.
Any person who willfully | 12 |
| refuses to so credit the exemption is guilty of a Class B
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| misdemeanor.
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| (g) When married persons maintain separate residences, the | 15 |
| exemption provided
under this Section shall be claimed by only | 16 |
| one such person and for only one residence.
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| (h) In the event of a sale or other transfer in ownership | 18 |
| of the homestead property, the exemption under this
Section | 19 |
| shall remain in effect for the remainder of the tax year and be | 20 |
| calculated using the same base homestead value in which the | 21 |
| sale or transfer occurs, but (other than for sales or transfers | 22 |
| between spouses or between a parent and a child) shall be | 23 |
| calculated for any subsequent tax year using the new base | 24 |
| homestead value as provided in subdivision (b)(3)(B).
The | 25 |
| assessor may require the new owner of the property to apply for | 26 |
| the exemption in the
following year.
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| (i) The assessor may determine whether property qualifies | 2 |
| as a homestead under
this Section by application, visual | 3 |
| inspection, questionnaire, or other
reasonable methods.
Each | 4 |
| year, at the time the assessment books are certified to the | 5 |
| county clerk
by the board
of review, the assessor shall furnish | 6 |
| to the county clerk a list of the
properties qualified
for the | 7 |
| homestead exemption under this Section. The list shall note the | 8 |
| base
homestead
value of each property to be used in the | 9 |
| calculation of the exemption for the
current tax
year.
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| (j) In counties with 3,000,000 or more inhabitants, the | 11 |
| provisions of this Section apply as follows:
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| (1) If the general assessment year for the property is | 13 |
| 2003, this Section
applies for assessment years 2003 and | 14 |
| thereafter , 2004, 2005, 2006, 2007, and 2008.
Thereafter, | 15 |
| the provisions of Section 15-175 apply .
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| (2) If the general assessment year for the property is | 17 |
| 2004, this Section
applies for assessment years 2004 and | 18 |
| thereafter , 2005, 2006, 2007, 2008, and 2009.
Thereafter, | 19 |
| the provisions of Section 15-175 apply .
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| (3) If the general assessment year for the property is | 21 |
| 2005, this Section
applies for assessment years 2005 and | 22 |
| thereafter , 2006, 2007, 2008, 2009, and 2010.
Thereafter, | 23 |
| the provisions of Section 15-175 apply . | 24 |
| In counties with less than 3,000,000 inhabitants, this | 25 |
| Section applies for assessment years (i) 2006 and thereafter , | 26 |
| 2007, and 2008, and 2009 if tax year 2005 is the designated |
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| base year or (ii) 2007 and thereafter , 2008, 2009, and 2010 if | 2 |
| tax year 2006 is the designated base year. Thereafter, the | 3 |
| provisions of Section 15-175 apply.
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| (k) To be subject to the provisions of this Section in lieu | 5 |
| of Section 15-175, a county must adopt an ordinance to subject | 6 |
| itself to the provisions of this Section within 6 months after | 7 |
| the effective date of this amendatory Act of the 95th General | 8 |
| Assembly. In a county other than Cook County, the ordinance | 9 |
| must designate either tax year 2005
or tax year 2006
as the | 10 |
| base year.
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| (l) Notwithstanding Sections 6 and 8 of the State Mandates | 12 |
| Act, no
reimbursement
by the State is required for the | 13 |
| implementation of any mandate created by this
Section.
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| (Source: P.A. 95-644, eff. 10-12-07.)
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| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law.
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