SB3171 96TH GENERAL ASSEMBLY

LRB096 19981 HLH 35466 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3171

Introduced 2/9/2010, by Sen. Terry Link

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208

from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. Provides that an individual taxpayer with an adjusted gross income of less than $125,000 is entitled to an income tax credit if the real property taxes paid by that taxpayer during the taxable year on his or her principal residence exceeds 5% of the taxpayer's adjusted gross income. Provides that the amount of the credit shall not exceed (i) $250 for taxpayers with an adjusted gross income below $75,000 and (ii) $150 for taxpayers with an adjusted gross income of $75,000 or above but less than $125,000. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 Illinois Income Tax Act is amended by changing Section 208 as follows:

(35 ILCS 5/208) (from Ch. 120, par. 2-208)

Sec. 208. Tax credit for residential real property taxes.

(a) Beginning with tax years ending on or after December 31, 1991, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes which is attributable to such principal residence.

(b) Beginning with tax years ending on or after December 31, 2010, every individual taxpayer with an adjusted gross income below $75,000 shall be entitled to an additional tax credit if the real property taxes paid by that taxpayer during the taxable year on his or her principal residence exceeds 5% of the taxpayer's adjusted gross income. The additional credit shall be equal to 50% of the amount by which the real property taxes paid by the taxpayer on his or her principal residence exceeds 5% of the taxpayer's adjusted gross income. However, the amount of the credit under this subsection shall not exceed $250.

(c) Beginning with tax years ending on or after December 31, 2010, every individual taxpayer with an adjusted gross income of $75,000 or above but less than $125,000, shall be entitled to an additional tax credit if the real property taxes paid by the taxpayer during the taxable year on his or her principal residence exceeds 5% of the taxpayer's adjusted gross income. The additional credit shall be equal to 50% of the amount by which the real property taxes paid by the taxpayer on his or her principal residence exceeds 5% of the taxpayer's adjusted gross income. However, the amount of the credit under this subsection shall not exceed $150.

(Source: P.A. 87-17.)

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