97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4242

 

Introduced 1/30/2012, by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Makes a technical change in a Section concerning the general homestead exemption.


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A BILL FOR

 

HB4242LRB097 15225 HLH 60325 b

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 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption. Except as
8provided in Sections 15-176 and and 15-177, homestead property
9is entitled 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
17Property Tax Appeal Board, or a court to have been excessive,
18the equalized assessed value which should have been placed on
19the property for 1977 shall be used to determine the amount of
20the exemption.
21    Except as provided in Section 15-176, the maximum reduction
22before taxable year 2004 shall be $4,500 in counties with
233,000,000 or more inhabitants and $3,500 in all other counties.

 

 

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1Except as provided in Sections 15-176 and 15-177, for taxable
2years 2004 through 2007, the maximum reduction shall be $5,000,
3for taxable year 2008, the maximum reduction is $5,500, and,
4for taxable years 2009 and thereafter, the maximum reduction is
5$6,000 in all counties. If a county has elected to subject
6itself to the provisions of Section 15-176 as provided in
7subsection (k) of that Section, then, for the first taxable
8year only after the provisions of Section 15-176 no longer
9apply, for owners who, for the taxable year, have not been
10granted a senior citizens assessment freeze homestead
11exemption under Section 15-172 or a long-time occupant
12homestead exemption under Section 15-177, there shall be an
13additional exemption of $5,000 for owners with a household
14income of $30,000 or less.
15    In counties with fewer than 3,000,000 inhabitants, if,
16based on the most recent assessment, the equalized assessed
17value of the homestead property for the current assessment year
18is greater than the equalized assessed value of the property
19for 1977, the owner of the property shall automatically receive
20the exemption granted under this Section in an amount equal to
21the increase over the 1977 assessment up to the maximum
22reduction set forth in this Section.
23    If in any assessment year beginning with the 2000
24assessment year, homestead property has a pro-rata valuation
25under Section 9-180 resulting in an increase in the assessed
26valuation, a reduction in equalized assessed valuation equal to

 

 

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

 

 

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1record of a legal or equitable interest in the cooperative
2apartment building, other than a leasehold interest. For
3purposes of this Section, the term "life care facility" has the
4meaning stated in Section 15-170.
5    "Household", as used in this Section, means the owner, the
6spouse of the owner, and all persons using the residence of the
7owner as their principal place of residence.
8    "Household income", as used in this Section, means the
9combined income of the members of a household for the calendar
10year preceding the taxable year.
11    "Income", as used in this Section, has the same meaning as
12provided in Section 3.07 of the Senior Citizens and Disabled
13Persons Property Tax Relief and Pharmaceutical Assistance Act,
14except that "income" does not include veteran's benefits.
15    In a cooperative where a homestead exemption has been
16granted, the cooperative association or its management firm
17shall credit the savings resulting from that exemption only to
18the apportioned tax liability of the owner who qualified for
19the exemption. Any person who willfully refuses to so credit
20the savings shall be guilty of a Class B misdemeanor.
21    Where married persons maintain and reside in separate
22residences qualifying as homestead property, each residence
23shall receive 50% of the total reduction in equalized assessed
24valuation provided by this Section.
25    In all counties, the assessor or chief county assessment
26officer may determine the eligibility of residential property

 

 

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1to receive the homestead exemption and the amount of the
2exemption by application, visual inspection, questionnaire or
3other reasonable methods. The determination shall be made in
4accordance with guidelines established by the Department,
5provided that the taxpayer applying for an additional general
6exemption under this Section shall submit to the chief county
7assessment officer an application with an affidavit of the
8applicant's total household income, age, marital status (and,
9if married, the name and address of the applicant's spouse, if
10known), and principal dwelling place of members of the
11household on January 1 of the taxable year. The Department
12shall issue guidelines establishing a method for verifying the
13accuracy of the affidavits filed by applicants under this
14paragraph. The applications shall be clearly marked as
15applications for the Additional General Homestead Exemption.
16    In counties with fewer than 3,000,000 inhabitants, in the
17event of a sale of homestead property the homestead exemption
18shall remain in effect for the remainder of the assessment year
19of the sale. The assessor or chief county assessment officer
20may require the new owner of the property to apply for the
21homestead exemption for the following assessment year.
22    Notwithstanding Sections 6 and 8 of the State Mandates Act,
23no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25(Source: P.A. 95-644, eff. 10-12-07.)