HB3624 100TH GENERAL ASSEMBLY

LRB100 07049 HLH 21506 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3624

Introduced , by Rep. Grant Wehrli

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-172.5 new

Amends the Property Tax Code. Provides that, for real property that is improved with a permanent structure that is occupied as a residence by a person who (i) is senior citizen at any point during the taxable year, (ii) has occupied the property as his or her principal residence or domicile for at least 20 consecutive years, (iii) is liable for paying real property taxes on the property, and (iv) is an owner of record of the property or has a legal or equitable interest in the property, the total tax liability for the property shall not exceed 10% of the household income for members of the senior citizen's household. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Property Tax Code is amended by adding Section 15-172.5 as follows:

(35 ILCS 200/15-172.5 new)

Sec. 15-172.5. Senior citizens property tax liability cap.

(a) Notwithstanding any other provision of law, beginning with the 2017 taxable year, for real property that is improved with a permanent structure that is occupied as a residence by an applicant who (i) is senior citizen at any point during the taxable year, (ii) has occupied the property as his or her principal residence or domicile for at least 20 consecutive years, (iii) is liable for paying real property taxes on the property, and (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, including a leasehold interest in a parcel of property improved with a permanent structure that is a single family residence that is occupied as a residence by a such a person, the total tax liability for the property shall not exceed 10% of the household income for members of the senior citizen's household. If the county clerk is required to reduce the tax extension on any parcel of property by operation of this Section, the county clerk shall proportionally reduce the extension for each taxing district.

(b) Application for the reduction under this Section shall be made annually during the application period in effect for the county of in which the property is located.

(c) As used in this Section:

"Household" means the applicant, the spouse of the applicant, and all persons using the residence of the applicant as their principal place of residence.

"Household income" means the combined income of the members of a household for the calendar year preceding the taxable year.

"Residence" means the principal dwelling place and appurtenant structures used for residential purposes in this State occupied on January 1 of the taxable year by a household and so much of the surrounding land, constituting the parcel upon which the dwelling place is situated, as is used for residential purposes. If the Chief County Assessment Officer has established a specific legal description for a portion of property constituting the residence, then that portion of property shall be deemed the residence for the purposes of this Section.

"Senior citizen" means a person who is 65 years of age or older during the taxable year.

Section 99. Effective date. This Act takes effect upon becoming law.