96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0296

 

Introduced 1/23/2009, by Rep. Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-176

    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 2009 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,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 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
10accordance with subsection (k), to be subject to the provisions
11of this Section in lieu of the provisions of Section 15-175,
12homestead property is entitled to an annual homestead exemption
13equal to a reduction in the property's equalized assessed value
14calculated 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 2005 or 2006 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
11assessed value for the base year as provided in subdivision
12(b)(3)(A) of this Section, then the assessor shall first
13determine an initial value for the property by comparison with
14assessed values for the base year of other properties having
15physical and economic characteristics similar to those of the
16subject property, so that the initial value is uniform in
17relation to assessed values of those other properties for the
18base year. The product of the initial value multiplied by the
19equalized factor for the base year for homestead properties in
20that county, less: (i) $4,500 in Cook County or $3,500 in all
21other counties in tax years 2003; (ii) $5,000 in all counties
22in tax year 2004 and 2005; and (iii) the lesser of the amount
23of the general homestead exemption under Section 15-175 or an
24amount equal to the increase in the equalized assessed value
25for the current tax year above the equalized assessed value for
261977 in tax year 2006 and thereafter, is the base homestead

 

 

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1value.
2    For any tax year for which the assessor determines or
3adjusts an initial value and hence a base homestead value under
4this subsection (c), the initial value shall be subject to
5review by the same procedures applicable to assessed values
6established under this Code for that tax year.
7    (d) The base homestead value shall remain constant, except
8that the assessor may revise it under the following
9circumstances:
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
5equalized assessed value of the homestead property for the
6current tax year, minus the adjusted homestead value, with the
7following 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; and
22        $20,000 for taxable year 2008; and $60,000 for taxable
23        year 2009 and thereafter
24            (ii) if the general assessment year for the
25        property is 2007, then the exemption may not exceed:
26        $33,000 for taxable year 2007; $26,000 for taxable year

 

 

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1        2008; and $60,000 $20,000 for taxable year 2009 and
2        thereafter; and
3            (iii) if the general assessment year for the
4        property is 2008, then the exemption may not exceed:
5        $33,000 for taxable year 2008; $26,000 for taxable year
6        2009; and $60,000 $20,000 for taxable year 2010 and
7        thereafter.
8    (1.5) In Cook County, for the 2006 taxable year only, the
9maximum amount of the exemption set forth under subsection
10(e)(1.1)(i) of this Section may be increased: (i) by $7,000 if
11the equalized assessed value of the property in that taxable
12year exceeds the equalized assessed value of that property in
132002 by 100% or more; or (ii) by $2,000 if the equalized
14assessed value of the property in that taxable year exceeds the
15equalized assessed value of that property in 2002 by more than
1680% but less than 100%.
17        (2) In the case of homestead property that also
18    qualifies for the exemption under Section 15-172, the
19    property is entitled to the exemption under this Section,
20    limited to the amount of (i) $4,500 in Cook County or
21    $3,500 in all other counties in tax year 2003, (ii) $5,000
22    in all counties in tax years 2004 and 2005, or (iii) the
23    lesser of the amount of the general homestead exemption
24    under Section 15-175 or an amount equal to the increase in
25    the equalized assessed value for the current tax year above
26    the equalized assessed value for 1977 in tax year 2006 and

 

 

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1    thereafter.
2    (f) In the case of an apartment building owned and operated
3as a cooperative, or as a life care facility, that contains
4residential units that qualify as homestead property under this
5Section, the maximum cumulative exemption amount attributed to
6the entire building or facility shall not exceed the sum of the
7exemptions calculated for each qualified residential unit. The
8cooperative association, management firm, or other person or
9entity that manages or controls the cooperative apartment
10building or life care facility shall credit the exemption
11attributable to each residential unit only to the apportioned
12tax liability of the owner or other person responsible for
13payment of taxes as to that unit. Any person who willfully
14refuses to so credit the exemption is guilty of a Class B
15misdemeanor.
16    (g) When married persons maintain separate residences, the
17exemption provided under this Section shall be claimed by only
18one such person and for only one residence.
19    (h) In the event of a sale or other transfer in ownership
20of the homestead property, the exemption under this Section
21shall remain in effect for the remainder of the tax year and be
22calculated using the same base homestead value in which the
23sale or transfer occurs, but (other than for sales or transfers
24between spouses or between a parent and a child) shall be
25calculated for any subsequent tax year using the new base
26homestead value as provided in subdivision (b)(3)(B). The

 

 

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1assessor may require the new owner of the property to apply for
2the exemption in the following year.
3    (i) The assessor may determine whether property qualifies
4as a homestead under this Section by application, visual
5inspection, questionnaire, or other reasonable methods. Each
6year, at the time the assessment books are certified to the
7county clerk by the board of review, the assessor shall furnish
8to the county clerk a list of the properties qualified for the
9homestead exemption under this Section. The list shall note the
10base homestead value of each property to be used in the
11calculation of the exemption for the current tax year.
12    (j) In counties with 3,000,000 or more inhabitants, the
13provisions of this Section apply as follows:
14        (1) If the general assessment year for the property is
15    2003, this Section applies for taxable years 2003 and
16    thereafter assessment years 2003, 2004, 2005, 2006, 2007,
17    and 2008. Thereafter, the provisions of Section 15-175
18    apply.
19        (2) If the general assessment year for the property is
20    2004, this Section applies for taxable years 2004 and
21    thereafter assessment years 2004, 2005, 2006, 2007, 2008,
22    and 2009. Thereafter, the provisions of Section 15-175
23    apply.
24        (3) If the general assessment year for the property is
25    2005, this Section applies for taxable years 2005 and
26    thereafter assessment years 2005, 2006, 2007, 2008, 2009,

 

 

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1    and 2010. Thereafter, the provisions of Section 15-175
2    apply.
3    In counties with less than 3,000,000 inhabitants, this
4Section applies for assessment years (i) 2006, 2007, and 2008,
5and 2009 if tax year 2005 is the designated base year or (ii)
62007, 2008, 2009, and 2010 if tax year 2006 is the designated
7base year. Thereafter, the provisions of Section 15-175 apply.
8    (k) To be subject to the provisions of this Section in lieu
9of Section 15-175, a county must adopt an ordinance to subject
10itself to the provisions of this Section within 6 months after
11the effective date of this amendatory Act of the 95th General
12Assembly. In a county other than Cook County, the ordinance
13must designate either tax year 2005 or tax year 2006 as the
14base year.
15    (l) Notwithstanding Sections 6 and 8 of the State Mandates
16Act, no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18(Source: P.A. 95-644, eff. 10-12-07.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.