Illinois General Assembly - Full Text of HB3460
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Full Text of HB3460  97th General Assembly

HB3460 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3460

 

Introduced 2/24/2011, by Rep. JoAnn D. Osmond

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175
35 ILCS 200/15-176

    Amends the Property Tax Code. Provides that, when the general homestead exemption applies in counties with less than 3,000,000 inhabitants, the exemption shall automatically apply to the new homeowner if the property is sold. Removes a requirement in a Section concerning the alternative general homestead exemption that the assessor may require the new owner of the property to apply for the exemption in the following year if the property is sold.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Sections 15-175 and 15-176 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption. Except as
8provided in Sections 15-176 and 15-177, homestead property is
9entitled 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. In
22counties with 3,000,000 or more inhabitants, the exemption
23under this Section shall automatically apply to the new
24homeowner if the property is sold.
25    Notwithstanding Sections 6 and 8 of the State Mandates Act,
26no reimbursement by the State is required for the

 

 

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1implementation of any mandate created by this Section.
2(Source: P.A. 95-644, eff. 10-12-07.)
 
3    (35 ILCS 200/15-176)
4    Sec. 15-176. Alternative general homestead exemption.
5    (a) For the assessment years as determined under subsection
6(j), in any county that has elected, by an ordinance in
7accordance with subsection (k), to be subject to the provisions
8of this Section in lieu of the provisions of Section 15-175,
9homestead property is entitled to an annual homestead exemption
10equal to a reduction in the property's equalized assessed value
11calculated as provided in this Section.
12    (b) As used in this Section:
13        (1) "Assessor" means the supervisor of assessments or
14    the chief county assessment officer of each county.
15        (2) "Adjusted homestead value" means the lesser of the
16    following values:
17            (A) The property's base homestead value increased
18        by 7% for each tax year after the base year through and
19        including the current tax year, or, if the property is
20        sold or ownership is otherwise transferred, the
21        property's base homestead value increased by 7% for
22        each tax year after the year of the sale or transfer
23        through and including the current tax year. The
24        increase by 7% each year is an increase by 7% over the
25        prior year.

 

 

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1            (B) The property's equalized assessed value for
2        the current tax year minus: (i) $4,500 in Cook County
3        or $3,500 in all other counties in tax year 2003; (ii)
4        $5,000 in all counties in tax years 2004 and 2005; and
5        (iii) the lesser of the amount of the general homestead
6        exemption under Section 15-175 or an amount equal to
7        the increase in the equalized assessed value for the
8        current tax year above the equalized assessed value for
9        1977 in tax year 2006 and thereafter.
10        (3) "Base homestead value".
11            (A) Except as provided in subdivision (b)(3)(A-5)
12        or (b)(3)(B), "base homestead value" means the
13        equalized assessed value of the property for the base
14        year prior to exemptions, minus (i) $4,500 in Cook
15        County or $3,500 in all other counties in tax year
16        2003, (ii) $5,000 in all counties in tax years 2004 and
17        2005, or (iii) the lesser of the amount of the general
18        homestead exemption under Section 15-175 or an amount
19        equal to the increase in the equalized assessed value
20        for the current tax year above the equalized assessed
21        value for 1977 in tax year 2006 and thereafter,
22        provided that it was assessed for that year as
23        residential property qualified for any of the
24        homestead exemptions under Sections 15-170 through
25        15-175 of this Code, then in force, and further
26        provided that the property's assessment was not based

 

 

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1        on a reduced assessed value resulting from a temporary
2        irregularity in the property for that year. Except as
3        provided in subdivision (b)(3)(B), if the property did
4        not have a residential equalized assessed value for the
5        base year, then "base homestead value" means the base
6        homestead value established by the assessor under
7        subsection (c).
8            (A-5) On or before September 1, 2007, in Cook
9        County, the base homestead value, as set forth under
10        subdivision (b)(3)(A) and except as provided under
11        subdivision (b) (3) (B), must be recalculated as the
12        equalized assessed value of the property for the base
13        year, prior to exemptions, minus:
14                (1) if the general assessment year for the
15            property was 2003, the lesser of (i) $4,500 or (ii)
16            the amount equal to the increase in equalized
17            assessed value for the 2002 tax year above the
18            equalized assessed value for 1977;
19                (2) if the general assessment year for the
20            property was 2004, the lesser of (i) $4,500 or (ii)
21            the amount equal to the increase in equalized
22            assessed value for the 2003 tax year above the
23            equalized assessed value for 1977;
24                (3) if the general assessment year for the
25            property was 2005, the lesser of (i) $5,000 or (ii)
26            the amount equal to the increase in equalized

 

 

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1            assessed value for the 2004 tax year above the
2            equalized assessed value for 1977.
3            (B) If the property is sold or ownership is
4        otherwise transferred, other than sales or transfers
5        between spouses or between a parent and a child, "base
6        homestead value" means the equalized assessed value of
7        the property at the time of the sale or transfer prior
8        to exemptions, minus: (i) $4,500 in Cook County or
9        $3,500 in all other counties in tax year 2003; (ii)
10        $5,000 in all counties in tax years 2004 and 2005; and
11        (iii) the lesser of the amount of the general homestead
12        exemption under Section 15-175 or an amount equal to
13        the increase in the equalized assessed value for the
14        current tax year above the equalized assessed value for
15        1977 in tax year 2006 and thereafter, provided that it
16        was assessed as residential property qualified for any
17        of the homestead exemptions under Sections 15-170
18        through 15-175 of this Code, then in force, and further
19        provided that the property's assessment was not based
20        on a reduced assessed value resulting from a temporary
21        irregularity in the property.
22        (3.5) "Base year" means (i) tax year 2002 in Cook
23    County or (ii) tax year 2008 or 2009 in all other counties
24    in accordance with the designation made by the county as
25    provided in subsection (k).
26        (4) "Current tax year" means the tax year for which the

 

 

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1    exemption under this Section is being applied.
2        (5) "Equalized assessed value" means the property's
3    assessed value as equalized by the Department.
4        (6) "Homestead" or "homestead property" means:
5            (A) Residential property that as of January 1 of
6        the tax year is occupied by its owner or owners as his,
7        her, or their principal dwelling place, or that is a
8        leasehold interest on which a single family residence
9        is situated, that is occupied as a residence by a
10        person who has a legal or equitable interest therein
11        evidenced by a written instrument, as an owner or as a
12        lessee, and on which the person is liable for the
13        payment of property taxes. Residential units in an
14        apartment building owned and operated as a
15        cooperative, or as a life care facility, which are
16        occupied by persons who hold a legal or equitable
17        interest in the cooperative apartment building or life
18        care facility as owners or lessees, and who are liable
19        by contract for the payment of property taxes, shall be
20        included within this definition of homestead property.
21            (B) A homestead includes the dwelling place,
22        appurtenant structures, and so much of the surrounding
23        land constituting the parcel on which the dwelling
24        place is situated as is used for residential purposes.
25        If the assessor has established a specific legal
26        description for a portion of property constituting the

 

 

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1        homestead, then the homestead shall be limited to the
2        property within that description.
3        (7) "Life care facility" means a facility as defined in
4    Section 2 of the Life Care Facilities Act.
5    (c) If the property did not have a residential equalized
6assessed value for the base year as provided in subdivision
7(b)(3)(A) of this Section, then the assessor shall first
8determine an initial value for the property by comparison with
9assessed values for the base year of other properties having
10physical and economic characteristics similar to those of the
11subject property, so that the initial value is uniform in
12relation to assessed values of those other properties for the
13base year. The product of the initial value multiplied by the
14equalized factor for the base year for homestead properties in
15that county, less: (i) $4,500 in Cook County or $3,500 in all
16other counties in tax years 2003; (ii) $5,000 in all counties
17in tax year 2004 and 2005; and (iii) the lesser of the amount
18of the general homestead exemption under Section 15-175 or an
19amount equal to the increase in the equalized assessed value
20for the current tax year above the equalized assessed value for
211977 in tax year 2006 and thereafter, is the base homestead
22value.
23    For any tax year for which the assessor determines or
24adjusts an initial value and hence a base homestead value under
25this subsection (c), the initial value shall be subject to
26review by the same procedures applicable to assessed values

 

 

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1established under this Code for that tax year.
2    (d) The base homestead value shall remain constant, except
3that the assessor may revise it under the following
4circumstances:
5        (1) If the equalized assessed value of a homestead
6    property for the current tax year is less than the previous
7    base homestead value for that property, then the current
8    equalized assessed value (provided it is not based on a
9    reduced assessed value resulting from a temporary
10    irregularity in the property) shall become the base
11    homestead value in subsequent tax years.
12        (2) For any year in which new buildings, structures, or
13    other improvements are constructed on the homestead
14    property that would increase its assessed value, the
15    assessor shall adjust the base homestead value as provided
16    in subsection (c) of this Section with due regard to the
17    value added by the new improvements.
18        (3) If the property is sold or ownership is otherwise
19    transferred, the base homestead value of the property shall
20    be adjusted as provided in subdivision (b)(3)(B). This item
21    (3) does not apply to sales or transfers between spouses or
22    between a parent and a child.
23        (4) the recalculation required in Cook County under
24    subdivision (b)(3)(A-5).
25    (e) The amount of the exemption under this Section is the
26equalized assessed value of the homestead property for the

 

 

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1current tax year, minus the adjusted homestead value, with the
2following exceptions:
3        (1) In Cook County, the exemption under this Section
4    shall not exceed $20,000 for any taxable year through tax
5    year:
6            (i) 2005, if the general assessment year for the
7        property is 2003;
8            (ii) 2006, if the general assessment year for the
9        property is 2004; or
10            (iii) 2007, if the general assessment year for the
11        property is 2005.
12        (1.1) Thereafter, in Cook County, and in all other
13    counties, the exemption is as follows:
14            (i) if the general assessment year for the property
15        is 2006, then the exemption may not exceed: $33,000 for
16        taxable year 2006; $26,000 for taxable year 2007;
17        $20,000 for taxable years 2008 and 2009; $16,000 for
18        taxable year 2010; and $12,000 for taxable year 2011;
19            (ii) if the general assessment year for the
20        property is 2007, then the exemption may not exceed:
21        $33,000 for taxable year 2007; $26,000 for taxable year
22        2008; $20,000 for taxable years 2009 and 2010; $16,000
23        for taxable year 2011; and $12,000 for taxable year
24        2012; and
25            (iii) if the general assessment year for the
26        property is 2008, then the exemption may not exceed:

 

 

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1        $33,000 for taxable year 2008; $26,000 for taxable year
2        2009; $20,000 for taxable years 2010 and 2011; $16,000
3        for taxable year 2012; and $12,000 for taxable year
4        2013.
5    (1.5) In Cook County, for the 2006 taxable year only, the
6maximum amount of the exemption set forth under subsection
7(e)(1.1)(i) of this Section may be increased: (i) by $7,000 if
8the equalized assessed value of the property in that taxable
9year exceeds the equalized assessed value of that property in
102002 by 100% or more; or (ii) by $2,000 if the equalized
11assessed value of the property in that taxable year exceeds the
12equalized assessed value of that property in 2002 by more than
1380% but less than 100%.
14        (2) In the case of homestead property that also
15    qualifies for the exemption under Section 15-172, the
16    property is entitled to the exemption under this Section,
17    limited to the amount of (i) $4,500 in Cook County or
18    $3,500 in all other counties in tax year 2003, (ii) $5,000
19    in all counties in tax years 2004 and 2005, or (iii) the
20    lesser of the amount of the general homestead exemption
21    under Section 15-175 or an amount equal to the increase in
22    the equalized assessed value for the current tax year above
23    the equalized assessed value for 1977 in tax year 2006 and
24    thereafter.
25    (f) In the case of an apartment building owned and operated
26as a cooperative, or as a life care facility, that contains

 

 

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1residential units that qualify as homestead property under this
2Section, the maximum cumulative exemption amount attributed to
3the entire building or facility shall not exceed the sum of the
4exemptions calculated for each qualified residential unit. The
5cooperative association, management firm, or other person or
6entity that manages or controls the cooperative apartment
7building or life care facility shall credit the exemption
8attributable to each residential unit only to the apportioned
9tax liability of the owner or other person responsible for
10payment of taxes as to that unit. Any person who willfully
11refuses to so credit the exemption is guilty of a Class B
12misdemeanor.
13    (g) When married persons maintain separate residences, the
14exemption provided under this Section shall be claimed by only
15one such person and for only one residence.
16    (h) In the event of a sale or other transfer in ownership
17of the homestead property, the exemption under this Section
18shall remain in effect for the remainder of the tax year and be
19calculated using the same base homestead value in which the
20sale or transfer occurs, but (other than for sales or transfers
21between spouses or between a parent and a child) shall be
22calculated for any subsequent tax year using the new base
23homestead value as provided in subdivision (b)(3)(B). The
24assessor may require the new owner of the property to apply for
25the exemption in the following year.
26    (i) The assessor may determine whether property qualifies

 

 

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1as a homestead under this Section by application, visual
2inspection, questionnaire, or other reasonable methods. Each
3year, at the time the assessment books are certified to the
4county clerk by the board of review, the assessor shall furnish
5to the county clerk a list of the properties qualified for the
6homestead exemption under this Section. The list shall note the
7base homestead value of each property to be used in the
8calculation of the exemption for the current tax year.
9    (j) In counties with 3,000,000 or more inhabitants, the
10provisions of this Section apply as follows:
11        (1) If the general assessment year for the property is
12    2003, this Section applies for assessment years 2003
13    through 2011. Thereafter, the provisions of Section 15-175
14    apply.
15        (2) If the general assessment year for the property is
16    2004, this Section applies for assessment years 2004
17    through 2012. Thereafter, the provisions of Section 15-175
18    apply.
19        (3) If the general assessment year for the property is
20    2005, this Section applies for assessment years 2005
21    through 2013. Thereafter, the provisions of Section 15-175
22    apply.
23    In counties with less than 3,000,000 inhabitants, this
24Section applies for assessment years (i) 2009, 2010, 2011, and
252012 if tax year 2008 is the designated base year or (ii) 2010,
262011, 2012, and 2013 if tax year 2009 is the designated base

 

 

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1year. Thereafter, the provisions of Section 15-175 apply.
2    (k) To be subject to the provisions of this Section in lieu
3of Section 15-175, a county must adopt an ordinance to subject
4itself to the provisions of this Section within 6 months after
5the effective date of this amendatory Act of the 96th General
6Assembly. In a county other than Cook County, the ordinance
7must designate either tax year 2008 or tax year 2009 as the
8base year.
9    (l) Notwithstanding Sections 6 and 8 of the State Mandates
10Act, no reimbursement by the State is required for the
11implementation of any mandate created by this Section.
12(Source: P.A. 95-644, eff. 10-12-07; 96-1418, eff. 8-2-10.)