State of Illinois
92nd General Assembly
Legislation

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92_HB0006

 
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 1        AN ACT concerning taxation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section   5.  The  Illinois  Income Tax Act is amended by
 5    changing Section 208 and adding Section 208.5 as follows:

 6        (35 ILCS 5/208) (from Ch. 120, par. 2-208)
 7        Sec. 208. Tax credit for residential real property taxes.
 8        (a)  Beginning with tax years ending on or after December
 9    31, 1991, every individual taxpayer shall be  entitled  to  a
10    tax  credit  equal  to 5% of real property taxes paid by such
11    taxpayer during the taxable year on the  principal  residence
12    of the taxpayer.
13        (b)  In   addition  to  the  tax  credit  provided  under
14    subsection (a), for tax years ending on or after December 31,
15    2001, every individual taxpayer whose principal residence has
16    an equalized assessed value as determined by  the  Department
17    of  less than $166,667 shall be entitled to an additional tax
18    credit equal to 5% of the real property  taxes  paid  by  the
19    taxpayer  during  the taxable year on the principal residence
20    of the taxpayer.  The changes made by this amendatory Act  of
21    the  92nd  General Assembly are exempt from the provisions of
22    Section 250.
23        (c)  In the case of multi-unit  or  multi-use  structures
24    and  farm  dwellings,  the  taxes on the taxpayer's principal
25    residence shall be that portion of the total taxes  which  is
26    attributable to such principal residence.
27    (Source: P.A. 87-17.)

28        (35 ILCS 5/208.5 new)
29        Sec.  208.5.   Tax credit for real property taxes paid by
30    Subchapter S corporations or sole proprietorships.   For  tax
 
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 1    years  ending on or after December 31, 2001, every Subchapter
 2    S corporation and sole proprietorship in this State shall  be
 3    entitled  to  a  tax  credit equal to 5% of the real property
 4    taxes  paid  by  the  Subchapter  S   corporation   or   sole
 5    proprietorship  during  the taxable year on eligible property
 6    owned by the Subchapter S corporation or sole proprietorship.
 7    For purposes  of  this  Section,  "eligible  property"  means
 8    property  with  an  equalized assessed value of less than (i)
 9    $399,000 in a county with 3,000,000 or  more  inhabitants  or
10    (ii)   $166,667   in  a  county  with  fewer  than  3,000,000
11    inhabitants. In no event shall a credit  under  this  Section
12    reduce  the  liability  under  this  Act  of the Subchapter S
13    corporation or sole proprietorship to less than  zero.   This
14    Section is exempt from the provisions of Section 250.

15        Section  10.   The Property Tax Code is amended by adding
16    Section 15-173 as follows:

17        (35 ILCS 200/15-173 new)
18        Sec. 15-173.  Senior citizens property tax rebate.
19        (a)  An individual taxpayer who is 65  years  of  age  or
20    older  and  who  paid  residential real property taxes on the
21    taxpayer's principal residence is entitled to a rebate.   The
22    rebate shall be in an amount equal to 10% of those taxes paid
23    in  a  taxable  year  minus  the amount of any credit allowed
24    under Section 208 of the Illinois Income  Tax  Act  for  that
25    taxable year and minus any rebate paid under Section 208.1 of
26    the  Illinois  Income  Tax  Act  for  that taxable year.  The
27    Department shall pay rebates for property taxes paid in  1999
28    and in 2001 and thereafter.
29        (b)  For  the  rebate  on property taxes paid in 1999 and
30    2001, on or before December 31, 2001,  the  Department  shall
31    prepare  and  distribute an application form.  The Department
32    shall begin accepting completed  application  forms  for  the
 
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 1    rebate  on  January  1, 2002. To be eligible for a rebate the
 2    applicant must submit a completed application form postmarked
 3    on or before March 1, 2002.  On or before April 1, 2002,  the
 4    Department  shall certify the names of the taxpayers eligible
 5    for the rebate for property taxes paid in 1999  or  2001,  or
 6    both,  whose  application  forms were postmarked on or before
 7    March 1, 2002 and the rebate amounts to the Comptroller.  The
 8    Comptroller shall mail rebate warrants to those taxpayers  by
 9    May 1, 2002.
10        (c)  For  the  rebate on property taxes paid in each year
11    after 2001, on or before December 31 of the year the property
12    taxes are paid, the Department shall prepare  and  distribute
13    an  application  form.   The Department shall begin accepting
14    completed application forms for the rebate on  January  1  of
15    the  year  after the property taxes are paid.  To be eligible
16    for  a  rebate  the  applicant  must   submit   a   completed
17    application  form postmarked on or before March 1 of the year
18    after the property taxes are paid.  On or before April  1  of
19    the  year  after  the property taxes are paid, the Department
20    shall certify the names  of  the  taxpayers  eligible  for  a
21    rebate  whose  application forms were postmarked on or before
22    March 1 of the year after the property taxes  were  paid  and
23    the rebate amounts to the Comptroller.  The Comptroller shall
24    mail  rebate warrants to those taxpayers by May 1 of the year
25    after the property taxes were paid.
26        (d)  A person who attains the age of  65  or  who  is  65
27    years  of age or older during the year the property taxes are
28    paid is eligible to apply for a rebate under this Section.
29        (e)  The Department shall coordinate  the  administration
30    of the rebate under this Section with the Senior Citizens and
31    Disabled  Persons  Property  Tax  Relief  and  Pharmaceutical
32    Assistance  program with the goal of maximizing participation
33    in the Senior Citizens  and  Disabled  Persons  Property  Tax
34    Relief and Pharmaceutical Assistance program.
 
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 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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