Rep. JoAnn D. Osmond

Filed: 3/2/2011

 

 


 

 


 
09700HB3460ham001LRB097 09249 HLH 51738 a

1
AMENDMENT TO HOUSE BILL 3460

2    AMENDMENT NO. ______. Amend House Bill 3460 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 15-175 and 15-176 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption. Except as
8provided in Sections 15-176 and 15-177, homestead property is
9entitled to an annual homestead exemption limited, except as
10described here with relation to cooperatives, to a reduction in
11the equalized assessed value of homestead property equal to the
12increase in equalized assessed value for the current assessment
13year above the equalized assessed value of the property for
141977, up to the maximum reduction set forth below. If however,
15the 1977 equalized assessed value upon which taxes were paid is
16subsequently determined by local assessing officials, the

 

 

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1Property Tax Appeal Board, or a court to have been excessive,
2the equalized assessed value which should have been placed on
3the property for 1977 shall be used to determine the amount of
4the exemption.
5    Except as provided in Section 15-176, the maximum reduction
6before taxable year 2004 shall be $4,500 in counties with
73,000,000 or more inhabitants and $3,500 in all other counties.
8Except as provided in Sections 15-176 and 15-177, for taxable
9years 2004 through 2007, the maximum reduction shall be $5,000,
10for taxable year 2008, the maximum reduction is $5,500, and,
11for taxable years 2009 and thereafter, the maximum reduction is
12$6,000 in all counties. If a county has elected to subject
13itself to the provisions of Section 15-176 as provided in
14subsection (k) of that Section, then, for the first taxable
15year only after the provisions of Section 15-176 no longer
16apply, for owners who, for the taxable year, have not been
17granted a senior citizens assessment freeze homestead
18exemption under Section 15-172 or a long-time occupant
19homestead exemption under Section 15-177, there shall be an
20additional exemption of $5,000 for owners with a household
21income of $30,000 or less.
22    In counties with fewer than 3,000,000 inhabitants, if,
23based on the most recent assessment, the equalized assessed
24value of the homestead property for the current assessment year
25is greater than the equalized assessed value of the property
26for 1977, the owner of the property shall automatically receive

 

 

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1the exemption granted under this Section in an amount equal to
2the increase over the 1977 assessment up to the maximum
3reduction set forth in this Section.
4    If in any assessment year beginning with the 2000
5assessment year, homestead property has a pro-rata valuation
6under Section 9-180 resulting in an increase in the assessed
7valuation, a reduction in equalized assessed valuation equal to
8the increase in equalized assessed value of the property for
9the year of the pro-rata valuation above the equalized assessed
10value of the property for 1977 shall be applied to the property
11on a proportionate basis for the period the property qualified
12as homestead property during the assessment year. The maximum
13proportionate homestead exemption shall not exceed the maximum
14homestead exemption allowed in the county under this Section
15divided by 365 and multiplied by the number of days the
16property qualified as homestead property.
17    "Homestead property" under this Section includes
18residential property that is occupied by its owner or owners as
19his or their principal dwelling place, or that is a leasehold
20interest on which a single family residence is situated, which
21is occupied as a residence by a person who has an ownership
22interest therein, legal or equitable or as a lessee, and on
23which the person is liable for the payment of property taxes.
24For land improved with an apartment building owned and operated
25as a cooperative or a building which is a life care facility as
26defined in Section 15-170 and considered to be a cooperative

 

 

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1under Section 15-170, the maximum reduction from the equalized
2assessed value shall be limited to the increase in the value
3above the equalized assessed value of the property for 1977, up
4to the maximum reduction set forth above, multiplied by the
5number of apartments or units occupied by a person or persons
6who is liable, by contract with the owner or owners of record,
7for paying property taxes on the property and is an owner of
8record of a legal or equitable interest in the cooperative
9apartment building, other than a leasehold interest. For
10purposes of this Section, the term "life care facility" has the
11meaning stated in Section 15-170.
12    "Household", as used in this Section, means the owner, the
13spouse of the owner, and all persons using the residence of the
14owner as their principal place of residence.
15    "Household income", as used in this Section, means the
16combined income of the members of a household for the calendar
17year preceding the taxable year.
18    "Income", as used in this Section, has the same meaning as
19provided in Section 3.07 of the Senior Citizens and Disabled
20Persons Property Tax Relief and Pharmaceutical Assistance Act,
21except that "income" does not include veteran's benefits.
22    In a cooperative where a homestead exemption has been
23granted, the cooperative association or its management firm
24shall credit the savings resulting from that exemption only to
25the apportioned tax liability of the owner who qualified for
26the exemption. Any person who willfully refuses to so credit

 

 

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1the savings shall be guilty of a Class B misdemeanor.
2    Where married persons maintain and reside in separate
3residences qualifying as homestead property, each residence
4shall receive 50% of the total reduction in equalized assessed
5valuation provided by this Section.
6    In all counties, the assessor or chief county assessment
7officer may determine the eligibility of residential property
8to receive the homestead exemption and the amount of the
9exemption by application, visual inspection, questionnaire or
10other reasonable methods. The determination shall be made in
11accordance with guidelines established by the Department,
12provided that the taxpayer applying for an additional general
13exemption under this Section shall submit to the chief county
14assessment officer an application with an affidavit of the
15applicant's total household income, age, marital status (and,
16if married, the name and address of the applicant's spouse, if
17known), and principal dwelling place of members of the
18household on January 1 of the taxable year. The Department
19shall issue guidelines establishing a method for verifying the
20accuracy of the affidavits filed by applicants under this
21paragraph. The applications shall be clearly marked as
22applications for the Additional General Homestead Exemption.
23    In counties with fewer than 3,000,000 inhabitants, in the
24event of a sale of homestead property the homestead exemption
25shall remain in effect for the remainder of the assessment year
26of the sale. The assessor or chief county assessment officer

 

 

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1may require the new owner of the property to apply for the
2homestead exemption for the following assessment year. In
3counties with 3,000,000 or more inhabitants, before closing on
4the homestead property, the seller must provide to the buyer
5the form required by the assessor or chief county assessment
6officer to apply for a homestead exemption under this Section
7or Section 15-176, as applicable.
8    Notwithstanding Sections 6 and 8 of the State Mandates Act,
9no reimbursement by the State is required for the
10implementation of any mandate created by this Section.
11(Source: P.A. 95-644, eff. 10-12-07.)
 
12    (35 ILCS 200/15-176)
13    Sec. 15-176. Alternative general homestead exemption.
14    (a) For the assessment years as determined under subsection
15(j), in any county that has elected, by an ordinance in
16accordance with subsection (k), to be subject to the provisions
17of this Section in lieu of the provisions of Section 15-175,
18homestead property is entitled to an annual homestead exemption
19equal to a reduction in the property's equalized assessed value
20calculated as provided in this Section.
21    (b) As used in this Section:
22        (1) "Assessor" means the supervisor of assessments or
23    the chief county assessment officer of each county.
24        (2) "Adjusted homestead value" means the lesser of the
25    following values:

 

 

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1            (A) The property's base homestead value increased
2        by 7% for each tax year after the base year through and
3        including the current tax year, or, if the property is
4        sold or ownership is otherwise transferred, the
5        property's base homestead value increased by 7% for
6        each tax year after the year of the sale or transfer
7        through and including the current tax year. The
8        increase by 7% each year is an increase by 7% over the
9        prior year.
10            (B) The property's equalized assessed value for
11        the current tax year minus: (i) $4,500 in Cook County
12        or $3,500 in all other counties in tax year 2003; (ii)
13        $5,000 in all counties in tax years 2004 and 2005; and
14        (iii) the lesser of the amount of the general homestead
15        exemption under Section 15-175 or an amount equal to
16        the increase in the equalized assessed value for the
17        current tax year above the equalized assessed value for
18        1977 in tax year 2006 and thereafter.
19        (3) "Base homestead value".
20            (A) Except as provided in subdivision (b)(3)(A-5)
21        or (b)(3)(B), "base homestead value" means the
22        equalized assessed value of the property for the base
23        year prior to exemptions, minus (i) $4,500 in Cook
24        County or $3,500 in all other counties in tax year
25        2003, (ii) $5,000 in all counties in tax years 2004 and
26        2005, or (iii) the lesser of the amount of the general

 

 

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1        homestead exemption under Section 15-175 or an amount
2        equal to the increase in the equalized assessed value
3        for the current tax year above the equalized assessed
4        value for 1977 in tax year 2006 and thereafter,
5        provided that it was assessed for that year as
6        residential property qualified for any of the
7        homestead exemptions under Sections 15-170 through
8        15-175 of this Code, then in force, and further
9        provided that the property's assessment was not based
10        on a reduced assessed value resulting from a temporary
11        irregularity in the property for that year. Except as
12        provided in subdivision (b)(3)(B), if the property did
13        not have a residential equalized assessed value for the
14        base year, then "base homestead value" means the base
15        homestead value established by the assessor under
16        subsection (c).
17            (A-5) On or before September 1, 2007, in Cook
18        County, the base homestead value, as set forth under
19        subdivision (b)(3)(A) and except as provided under
20        subdivision (b) (3) (B), must be recalculated as the
21        equalized assessed value of the property for the base
22        year, prior to exemptions, minus:
23                (1) if the general assessment year for the
24            property was 2003, the lesser of (i) $4,500 or (ii)
25            the amount equal to the increase in equalized
26            assessed value for the 2002 tax year above the

 

 

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1            equalized assessed value for 1977;
2                (2) if the general assessment year for the
3            property was 2004, the lesser of (i) $4,500 or (ii)
4            the amount equal to the increase in equalized
5            assessed value for the 2003 tax year above the
6            equalized assessed value for 1977;
7                (3) if the general assessment year for the
8            property was 2005, the lesser of (i) $5,000 or (ii)
9            the amount equal to the increase in equalized
10            assessed value for the 2004 tax year above the
11            equalized assessed value for 1977.
12            (B) If the property is sold or ownership is
13        otherwise transferred, other than sales or transfers
14        between spouses or between a parent and a child, "base
15        homestead value" means the equalized assessed value of
16        the property at the time of the sale or transfer prior
17        to exemptions, minus: (i) $4,500 in Cook County or
18        $3,500 in all other counties in tax year 2003; (ii)
19        $5,000 in all counties in tax years 2004 and 2005; and
20        (iii) the lesser of the amount of the general homestead
21        exemption under Section 15-175 or an amount equal to
22        the increase in the equalized assessed value for the
23        current tax year above the equalized assessed value for
24        1977 in tax year 2006 and thereafter, provided that it
25        was assessed as residential property qualified for any
26        of the homestead exemptions under Sections 15-170

 

 

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1        through 15-175 of this Code, then in force, and further
2        provided that the property's assessment was not based
3        on a reduced assessed value resulting from a temporary
4        irregularity in the property.
5        (3.5) "Base year" means (i) tax year 2002 in Cook
6    County or (ii) tax year 2008 or 2009 in all other counties
7    in accordance with the designation made by the county as
8    provided in subsection (k).
9        (4) "Current tax year" means the tax year for which the
10    exemption under this Section is being applied.
11        (5) "Equalized assessed value" means the property's
12    assessed value as equalized by the Department.
13        (6) "Homestead" or "homestead property" means:
14            (A) Residential property that as of January 1 of
15        the tax year is occupied by its owner or owners as his,
16        her, or their principal dwelling place, or that is a
17        leasehold interest on which a single family residence
18        is situated, that is occupied as a residence by a
19        person who has a legal or equitable interest therein
20        evidenced by a written instrument, as an owner or as a
21        lessee, and on which the person is liable for the
22        payment of property taxes. Residential units in an
23        apartment building owned and operated as a
24        cooperative, or as a life care facility, which are
25        occupied by persons who hold a legal or equitable
26        interest in the cooperative apartment building or life

 

 

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1        care facility as owners or lessees, and who are liable
2        by contract for the payment of property taxes, shall be
3        included within this definition of homestead property.
4            (B) A homestead includes the dwelling place,
5        appurtenant structures, and so much of the surrounding
6        land constituting the parcel on which the dwelling
7        place is situated as is used for residential purposes.
8        If the assessor has established a specific legal
9        description for a portion of property constituting the
10        homestead, then the homestead shall be limited to the
11        property within that description.
12        (7) "Life care facility" means a facility as defined in
13    Section 2 of the Life Care Facilities Act.
14    (c) If the property did not have a residential equalized
15assessed value for the base year as provided in subdivision
16(b)(3)(A) of this Section, then the assessor shall first
17determine an initial value for the property by comparison with
18assessed values for the base year of other properties having
19physical and economic characteristics similar to those of the
20subject property, so that the initial value is uniform in
21relation to assessed values of those other properties for the
22base year. The product of the initial value multiplied by the
23equalized factor for the base year for homestead properties in
24that county, less: (i) $4,500 in Cook County or $3,500 in all
25other counties in tax years 2003; (ii) $5,000 in all counties
26in tax year 2004 and 2005; and (iii) the lesser of the amount

 

 

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1of the general homestead exemption under Section 15-175 or an
2amount equal to the increase in the equalized assessed value
3for the current tax year above the equalized assessed value for
41977 in tax year 2006 and thereafter, is the base homestead
5value.
6    For any tax year for which the assessor determines or
7adjusts an initial value and hence a base homestead value under
8this subsection (c), the initial value shall be subject to
9review by the same procedures applicable to assessed values
10established under this Code for that tax year.
11    (d) The base homestead value shall remain constant, except
12that the assessor may revise it under the following
13circumstances:
14        (1) If the equalized assessed value of a homestead
15    property for the current tax year is less than the previous
16    base homestead value for that property, then the current
17    equalized assessed value (provided it is not based on a
18    reduced assessed value resulting from a temporary
19    irregularity in the property) shall become the base
20    homestead value in subsequent tax years.
21        (2) For any year in which new buildings, structures, or
22    other improvements are constructed on the homestead
23    property that would increase its assessed value, the
24    assessor shall adjust the base homestead value as provided
25    in subsection (c) of this Section with due regard to the
26    value added by the new improvements.

 

 

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1        (3) If the property is sold or ownership is otherwise
2    transferred, the base homestead value of the property shall
3    be adjusted as provided in subdivision (b)(3)(B). This item
4    (3) does not apply to sales or transfers between spouses or
5    between a parent and a child.
6        (4) the recalculation required in Cook County under
7    subdivision (b)(3)(A-5).
8    (e) The amount of the exemption under this Section is the
9equalized assessed value of the homestead property for the
10current tax year, minus the adjusted homestead value, with the
11following exceptions:
12        (1) In Cook County, the exemption under this Section
13    shall not exceed $20,000 for any taxable year through tax
14    year:
15            (i) 2005, if the general assessment year for the
16        property is 2003;
17            (ii) 2006, if the general assessment year for the
18        property is 2004; or
19            (iii) 2007, if the general assessment year for the
20        property is 2005.
21        (1.1) Thereafter, in Cook County, and in all other
22    counties, the exemption is as follows:
23            (i) if the general assessment year for the property
24        is 2006, then the exemption may not exceed: $33,000 for
25        taxable year 2006; $26,000 for taxable year 2007;
26        $20,000 for taxable years 2008 and 2009; $16,000 for

 

 

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1        taxable year 2010; and $12,000 for taxable year 2011;
2            (ii) if the general assessment year for the
3        property is 2007, then the exemption may not exceed:
4        $33,000 for taxable year 2007; $26,000 for taxable year
5        2008; $20,000 for taxable years 2009 and 2010; $16,000
6        for taxable year 2011; and $12,000 for taxable year
7        2012; and
8            (iii) if the general assessment year for the
9        property is 2008, then the exemption may not exceed:
10        $33,000 for taxable year 2008; $26,000 for taxable year
11        2009; $20,000 for taxable years 2010 and 2011; $16,000
12        for taxable year 2012; and $12,000 for taxable year
13        2013.
14    (1.5) In Cook County, for the 2006 taxable year only, the
15maximum amount of the exemption set forth under subsection
16(e)(1.1)(i) of this Section may be increased: (i) by $7,000 if
17the equalized assessed value of the property in that taxable
18year exceeds the equalized assessed value of that property in
192002 by 100% or more; or (ii) by $2,000 if the equalized
20assessed value of the property in that taxable year exceeds the
21equalized assessed value of that property in 2002 by more than
2280% but less than 100%.
23        (2) In the case of homestead property that also
24    qualifies for the exemption under Section 15-172, the
25    property is entitled to the exemption under this Section,
26    limited to the amount of (i) $4,500 in Cook County or

 

 

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1    $3,500 in all other counties in tax year 2003, (ii) $5,000
2    in all counties in tax years 2004 and 2005, or (iii) the
3    lesser of the amount of the general homestead exemption
4    under Section 15-175 or an amount equal to the increase in
5    the equalized assessed value for the current tax year above
6    the equalized assessed value for 1977 in tax year 2006 and
7    thereafter.
8    (f) In the case of an apartment building owned and operated
9as a cooperative, or as a life care facility, that contains
10residential units that qualify as homestead property under this
11Section, the maximum cumulative exemption amount attributed to
12the entire building or facility shall not exceed the sum of the
13exemptions calculated for each qualified residential unit. The
14cooperative association, management firm, or other person or
15entity that manages or controls the cooperative apartment
16building or life care facility shall credit the exemption
17attributable to each residential unit only to the apportioned
18tax liability of the owner or other person responsible for
19payment of taxes as to that unit. Any person who willfully
20refuses to so credit the exemption is guilty of a Class B
21misdemeanor.
22    (g) When married persons maintain separate residences, the
23exemption provided under this Section shall be claimed by only
24one such person and for only one residence.
25    (h) In the event of a sale or other transfer in ownership
26of the homestead property, the exemption under this Section

 

 

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1shall remain in effect for the remainder of the tax year and be
2calculated using the same base homestead value in which the
3sale or transfer occurs, but (other than for sales or transfers
4between spouses or between a parent and a child) shall be
5calculated for any subsequent tax year using the new base
6homestead value as provided in subdivision (b)(3)(B). The
7assessor may require the new owner of the property to apply for
8the exemption in the following year. In counties with 3,000,000
9or more inhabitants, before closing on the homestead property,
10the seller must provide to the buyer the form required by the
11assessor or chief county assessment officer to apply for a
12homestead exemption under this Section or Section 15-175, as
13applicable.
14    (i) The assessor may determine whether property qualifies
15as a homestead under this Section by application, visual
16inspection, questionnaire, or other reasonable methods. Each
17year, at the time the assessment books are certified to the
18county clerk by the board of review, the assessor shall furnish
19to the county clerk a list of the properties qualified for the
20homestead exemption under this Section. The list shall note the
21base homestead value of each property to be used in the
22calculation of the exemption for the current tax year.
23    (j) In counties with 3,000,000 or more inhabitants, the
24provisions of this Section apply as follows:
25        (1) If the general assessment year for the property is
26    2003, this Section applies for assessment years 2003

 

 

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1    through 2011. Thereafter, the provisions of Section 15-175
2    apply.
3        (2) If the general assessment year for the property is
4    2004, this Section applies for assessment years 2004
5    through 2012. Thereafter, the provisions of Section 15-175
6    apply.
7        (3) If the general assessment year for the property is
8    2005, this Section applies for assessment years 2005
9    through 2013. Thereafter, the provisions of Section 15-175
10    apply.
11    In counties with less than 3,000,000 inhabitants, this
12Section applies for assessment years (i) 2009, 2010, 2011, and
132012 if tax year 2008 is the designated base year or (ii) 2010,
142011, 2012, and 2013 if tax year 2009 is the designated base
15year. Thereafter, the provisions of Section 15-175 apply.
16    (k) To be subject to the provisions of this Section in lieu
17of Section 15-175, a county must adopt an ordinance to subject
18itself to the provisions of this Section within 6 months after
19the effective date of this amendatory Act of the 96th General
20Assembly. In a county other than Cook County, the ordinance
21must designate either tax year 2008 or tax year 2009 as the
22base year.
23    (l) Notwithstanding Sections 6 and 8 of the State Mandates
24Act, no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 95-644, eff. 10-12-07; 96-1418, eff. 8-2-10.)
 

 

 

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1    Section 10. The Residential Real Property Disclosure Act is
2amended by adding Section 23 as follows:
 
3    (765 ILCS 77/23 new)
4    Sec. 23. Homestead exemption disclosure. In counties with
53,000,000 or more inhabitants, before closing on residential
6real property, the seller must provide to the buyer the form
7required by the assessor or chief county assessment officer to
8apply for the homestead exemption provided under either Section
915-175 or 15-176 of the Property Tax Code, as applicable.".