Rep. Michael J. Zalewski

Filed: 4/24/2012

 

 


 

 


 
09700HB4239ham001LRB097 15221 HLH 68820 a

1
AMENDMENT TO HOUSE BILL 4239

2    AMENDMENT NO. ______. Amend House Bill 4239 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently

 

 

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1determined by local assessing officials, the Property Tax
2Appeal Board, or a court to have been excessive, the equalized
3assessed value which should have been placed on the property
4for 1977 shall be used to determine the amount of the
5exemption.
6    (b) Except as provided in Section 15-176, the maximum
7reduction before taxable year 2004 shall be $4,500 in counties
8with 3,000,000 or more inhabitants and $3,500 in all other
9counties. Except as provided in Sections 15-176 and 15-177, for
10taxable years 2004 through 2007, the maximum reduction shall be
11$5,000, for taxable year 2008, the maximum reduction is $5,500,
12and, for taxable years 2009 and thereafter, the maximum
13reduction is $6,000 in all counties. If a county has elected to
14subject itself to the provisions of Section 15-176 as provided
15in subsection (k) of that Section, then, for the first taxable
16year only after the provisions of Section 15-176 no longer
17apply, for owners who, for the taxable year, have not been
18granted a senior citizens assessment freeze homestead
19exemption under Section 15-172 or a long-time occupant
20homestead exemption under Section 15-177, there shall be an
21additional exemption of $5,000 for owners with a household
22income of $30,000 or less.
23    (c) In counties with fewer than 3,000,000 inhabitants, if,
24based on the most recent assessment, the equalized assessed
25value of the homestead property for the current assessment year
26is greater than the equalized assessed value of the property

 

 

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1for 1977, the owner of the property shall automatically receive
2the exemption granted under this Section in an amount equal to
3the increase over the 1977 assessment up to the maximum
4reduction set forth in this Section.
5    (d) If in any assessment year beginning with the 2000
6assessment year, homestead property has a pro-rata valuation
7under Section 9-180 resulting in an increase in the assessed
8valuation, a reduction in equalized assessed valuation equal to
9the increase in equalized assessed value of the property for
10the year of the pro-rata valuation above the equalized assessed
11value of the property for 1977 shall be applied to the property
12on a proportionate basis for the period the property qualified
13as homestead property during the assessment year. The maximum
14proportionate homestead exemption shall not exceed the maximum
15homestead exemption allowed in the county under this Section
16divided by 365 and multiplied by the number of days the
17property qualified as homestead property.
18    (e) An exemption shall not be granted under this Section
19for leasehold interests in property unless all of the following
20conditions are met:
21        (1) a notarized application for the exemption is
22    submitted each year during the application period in effect
23    for the county in which the property is located;
24        (2) a copy of the lease is filed with the chief county
25    assessment officer by the owner of the property at the time
26    the notarized application is submitted;

 

 

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1        (3) the lease expressly states that the lessee is
2    liable for the payment of property taxes; and
3        (4) the lease expressly states that the lessee is
4    required to pay the property taxes out of the lessee's own
5    funds.
6    If there is a change in lessee, or if the lessee vacates
7the property, then the owner of the property shall notify the
8chief county assessment officer within 30 days after the
9effective date of that change.
10    The requirements of this subsection (e) do not apply to
11leasehold interests in property owned by a municipality and
12subject to a 99-year lease.
13    This subsection (e) is a limitation under subsection (i) of
14Section 6 of Article VII of the Illinois Constitution on the
15concurrent exercise by home rule units of powers and functions
16exercised by the State.
17    (f) "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    (g) 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    (h) 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    (i) In all counties, the assessor or chief county
7assessment officer may determine the eligibility of
8residential property to receive the homestead exemption and the
9amount of the exemption by application, visual inspection,
10questionnaire or other reasonable methods. The determination
11shall be made in accordance with guidelines established by the
12Department, provided that the taxpayer applying for an
13additional general exemption under this Section shall submit to
14the chief county assessment officer an application with an
15affidavit of the applicant's total household income, age,
16marital status (and, if married, the name and address of the
17applicant's spouse, if known), and principal dwelling place of
18members of the household on January 1 of the taxable year. The
19Department shall issue guidelines establishing a method for
20verifying the accuracy of the affidavits filed by applicants
21under this paragraph. The applications shall be clearly marked
22as applications for the Additional General Homestead
23Exemption.
24    (j) In counties with fewer than 3,000,000 inhabitants, in
25the event of a sale of homestead property the homestead
26exemption shall remain in effect for the remainder of the

 

 

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1assessment year of the sale. The assessor or chief county
2assessment officer may require the new owner of the property to
3apply for the homestead exemption for the following assessment
4year.
5    (k) Notwithstanding Sections 6 and 8 of the State Mandates
6Act, no reimbursement by the State is required for the
7implementation of any mandate created by this Section.
8(Source: P.A. 95-644, eff. 10-12-07.)".