093_HB3888

                                     LRB093 13601 SJM 18976 b

 1        AN ACT in relation to taxes.

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

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Section 15-175 as follows:

 6        (35 ILCS 200/15-175)
 7        Sec.  15-175.   General  homestead  exemption.  Homestead
 8    property  is  entitled  to  an  annual  homestead   exemption
 9    limited,   except   as   described   here  with  relation  to
10    cooperatives, to a reduction in the equalized assessed  value
11    of  homestead  property  equal  to  the increase in equalized
12    assessed value for the  current  assessment  year  above  the
13    equalized  assessed value of the property for 1977, up to the
14    maximum reduction set  forth  below.  If  however,  the  1977
15    equalized  assessed  value  upon  which  taxes  were  paid is
16    subsequently determined by  local  assessing  officials,  the
17    Property Tax Appeal Board, or a court to have been excessive,
18    the equalized assessed value which should have been placed on
19    the  property  for 1977 shall be used to determine the amount
20    of the exemption.
21        The maximum reduction shall be $4,500 plus the additional
22    exemption provided  in  this  paragraph,  if  applicable,  in
23    counties with 3,000,000 or more inhabitants and $3,500 in all
24    other  counties.  For owners whose qualified property is in a
25    county with 3,000,000 or more inhabitants and has an assessed
26    valuation that has  increased  by  more  than  20%  over  the
27    previous  assessed valuation of that property, there shall be
28    an additional exemption of: $500 for owners with a  household
29    income of $30,000 or more; $1,000 for owners with a household
30    income  of  $20,000 or more but less than $30,000; and $1,500
31    for owners with a household income of less than $20,000.
 
                            -2-      LRB093 13601 SJM 18976 b
 1        In counties with fewer than  3,000,000  inhabitants,  if,
 2    based  on  the most recent assessment, the equalized assessed
 3    value of the homestead property for  the  current  assessment
 4    year  is  greater  than  the  equalized assessed value of the
 5    property  for  1977,  the  owner  of   the   property   shall
 6    automatically   receive  the  exemption  granted  under  this
 7    Section in an amount equal to  the  increase  over  the  1977
 8    assessment  up  to  the  maximum  reduction set forth in this
 9    Section.
10        If  in  any  assessment  year  beginning  with  the  2000
11    assessment year, homestead property has a pro-rata  valuation
12    under  Section 9-180 resulting in an increase in the assessed
13    valuation, a reduction in equalized assessed valuation  equal
14    to  the  increase in equalized assessed value of the property
15    for the year of the pro-rata valuation  above  the  equalized
16    assessed  value  of the property for 1977 shall be applied to
17    the property on a proportionate  basis  for  the  period  the
18    property   qualified   as   homestead   property  during  the
19    assessment  year.   The   maximum   proportionate   homestead
20    exemption  shall  not  exceed the maximum homestead exemption
21    allowed in the county under this Section divided by  365  and
22    multiplied  by  the  number of days the property qualified as
23    homestead property.
24        "Homestead  property"   under   this   Section   includes
25    residential  property that is occupied by its owner or owners
26    as his or their  principal  dwelling  place,  or  that  is  a
27    leasehold  interest  on  which  a  single family residence is
28    situated, which is occupied as a residence by  a  person  who
29    has an ownership interest therein, legal or equitable or as a
30    lessee,  and on which the person is liable for the payment of
31    property taxes. For land improved with an apartment  building
32    owned  and operated as a cooperative or a building which is a
33    life  care  facility  as  defined  in  Section   15-170   and
34    considered  to  be  a  cooperative  under Section 15-170, the
 
                            -3-      LRB093 13601 SJM 18976 b
 1    maximum reduction from the equalized assessed value shall  be
 2    limited  to  the  increase  in  the value above the equalized
 3    assessed value of the property for 1977, up  to  the  maximum
 4    reduction  set  forth  above,  multiplied  by  the  number of
 5    apartments or units occupied by a person or  persons  who  is
 6    liable,  by  contract with the owner or owners of record, for
 7    paying property taxes on the property  and  is  an  owner  of
 8    record  of  a  legal or equitable interest in the cooperative
 9    apartment building, other  than  a  leasehold  interest.  For
10    purposes  of  this Section, the term "life care facility" has
11    the meaning stated in Section 15-170.
12        "Household", as used in this Section,  means  the  owner,
13    the  spouse of the owner, and all persons using the residence
14    of the owner as their principal place of residence.
15        "Household income", as used in this  Section,  means  the
16    combined  income  of  the  members  of  a  household  for the
17    calendar year preceding the taxable year.
18        "Income", as used in this Section, has the  same  meaning
19    as  provided  in  Section  3.07  of  the  Senior Citizens and
20    Disabled  Persons  Property  Tax  Relief  and  Pharmaceutical
21    Assistance  Act,  except  that  "income"  does  not   include
22    veteran's benefits.
23        In  a  cooperative  where  a homestead exemption has been
24    granted, the cooperative association or its  management  firm
25    shall  credit  the savings resulting from that exemption only
26    to the apportioned tax liability of the owner  who  qualified
27    for  the  exemption.   Any person who willfully refuses to so
28    credit the savings shall be guilty of a Class B misdemeanor.
29        Where married persons maintain  and  reside  in  separate
30    residences  qualifying  as homestead property, each residence
31    shall  receive  50%  of  the  total  reduction  in  equalized
32    assessed valuation provided by this Section.
33        In counties with more  than  3,000,000  inhabitants,  the
34    assessor or chief county assessment officer may determine the
 
                            -4-      LRB093 13601 SJM 18976 b
 1    eligibility  of residential property to receive the homestead
 2    exemption and the amount of  the  exemption  by  application,
 3    visual inspection, questionnaire or other reasonable methods.
 4    The determination shall be made in accordance with guidelines
 5    established  by  the Department.  In counties with fewer than
 6    3,000,000 inhabitants, in the event of a  sale  of  homestead
 7    property  the  homestead exemption shall remain in effect for
 8    the remainder of  the  assessment  year  of  the  sale.   The
 9    assessor  or  chief county assessment officer may require the
10    new  owner  of  the  property  to  apply  for  the  homestead
11    exemption for the following assessment year.
12    (Source: P.A. 90-368, eff.  1-1-98;  90-552,  eff.  12-12-97;
13    90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)

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