State of Illinois
92nd General Assembly

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 1        AN ACT concerning longtime small business owners.

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

 4        Section  5.   The  Longtime  Owner-Occupant  Property Tax
 5    Relief Act is amended by changing Sections 1, 5, 10, 15,  and
 6    20 as follows:

 7        (35 ILCS 250/1)
 8        Sec.  1.  Short  title.   This  Act  may  be cited as the
 9    Longtime Owner-Occupant and Small Business Owner Property Tax
10    Relief Act.
11    (Source: P.A. 88-451.)

12        (35 ILCS 250/5)
13        Sec. 5.  Public policy.  In  recognition  of  the  severe
14    economic    circumstances    of    (i)    certain    longtime
15    owner-occupants  of  residences  who  are  faced  with rising
16    living costs and constantly increasing tax burdens  in  areas
17    where   real   property  values  have  risen  markedly  as  a
18    consequence  of  the  renovation   of   other   deteriorating
19    residences  or  the  construction  of new residences and (ii)
20    certain longtime owners of small  businesses  who  are  faced
21    with  increases in property tax burdens as a result of rising
22    tax rates and the decline in the amount of taxable commercial
23    and industrial property, the General Assembly considers it to
24    be a matter of sound public  policy  for  counties  having  a
25    population  of  100,000 or more to adopt uniform special real
26    property tax relief provisions in  order  to  allow  longtime
27    owner-occupants  of  residences  and longtime owners of small
28    businesses to remain in peaceful possession  of  their  homes
29    and businesses.
30    (Source: P.A. 88-451.)
                            -2-                LRB9207583SMdv
 1        (35 ILCS 250/10)
 2        Sec.  10.  Definitions.   As used in this Act, unless the
 3    context clearly indicates otherwise:
 4             (a)  "Longtime owner-occupant" means  a  person  who
 5        for  at  least  10  continuous  years  has  owned and has
 6        occupied the same dwelling place as a principal residence
 7        and domicile, or any person who for at least 5 years  has
 8        owned and occupied the same dwelling place as a principal
 9        residence and domicile if that person received assistance
10        in   the  acquisition  of  the  property  as  part  of  a
11        government or nonprofit housing program.
12             (a-1)  "Longtime small  business  owner"  means  any
13        for-profit   business  in  Illinois  including,  but  not
14        limited  to,  any   sole   proprietorship,   partnership,
15        corporation,  joint  venture, association, or cooperative
16        that  has,  including  its  affiliates,  less  than   500
17        full-time  employees and has occupied the same commercial
18        or industrial property for at least 10 continuous years.
19             (b)  "Principal residence" means the dwelling  place
20        of  a  person, including the principal house and lot, and
21        such lots as are used in connection  with  the  principal
22        house  and  lot that contribute to its enjoyment, comfort
23        and convenience.  For purposes of this Act, the term  may
24        also  include a building with a maximum of one commercial
25        establishment and a maximum of  3  residential  units  of
26        which   one   residential  unit  must  be  the  principal
27        residence of the longtime owner-occupant.
28    (Source: P.A. 88-451.)

29        (35 ILCS 250/15)
30        Sec. 15.  Deferral or exemption authority.
31        (a)  The corporate authorities of a county shall have the
32    power to provide, by ordinance  or  resolution,  for  uniform
33    special real property tax relief provisions granting longtime
                            -3-                LRB9207583SMdv
 1    owner-occupants  a  deferral  or  exemption,  or  combination
 2    thereof,  in  the  payment  of that portion of an increase of
 3    real property taxes which is due to an increase in the market
 4    value  of  the  real  property  as  a  consequence   of   the
 5    refurbishing   or  renovating  of  other  residences  or  the
 6    construction   of   new   residences   in    long-established
 7    residential   areas  or  areas  of  deteriorated,  vacant  or
 8    abandoned homes and properties.  A deferral or exemption,  or
 9    combination  thereof,  may  be  granted  until  the  longtime
10    owner-occupant transfers title to the property.
11        The  ordinance  or  resolution  must  include a provision
12    requiring that eligibility notification of the  special  real
13    property  tax  relief be delivered to the record owner of the
14    property taxed.  The eligibility notification shall be mailed
15    to the address of the record owner on file with  the  county.
16    If  the  notification  is mailed by the county to a mortgagee
17    because it is the only address of the record owner filed with
18    the county, then the  mortgagee  shall,  within  30  days  of
19    receipt,  forward  a  copy of the notice to each mortgagor of
20    the property.  There shall be no liability for the failure of
21    the mortgagee to forward the notice to each mortgagor.
22        (a-1)  The corporate authorities of a county may provide,
23    by ordinance or resolution, for uniform special real property
24    tax relief provisions granting longtime small business owners
25    a deferral or  exemption,  or  combination  thereof,  in  the
26    payment of that portion of an increase of real property taxes
27    that  is  due  to  a  combination  of excessive tax rates and
28    generally  declining  equalized  assessed  valuation  in  the
29    commercial and industrial properties in the geographical area
30    in which the longtime small business is located.  A  deferral
31    or  exemption,  or  combination thereof, may be granted until
32    the longtime small business  owner  transfers  title  to  the
33    property.
34        (b)  The corporate authority of a county is authorized to
                            -4-                LRB9207583SMdv
 1    enact   ordinances   or  resolutions  that  provide  for  the
 2    designation of areas eligible for the special  real  property
 3    tax  relief  provisions  under  this Act.  Before enacting an
 4    ordinance or resolution that  proposes  designating  such  an
 5    area,  the  corporate  authorities  shall  conduct  a  public
 6    hearing on the proposed ordinance or resolution.
 7        (c)  School  districts and municipalities within a county
 8    have  authority  to  determine  their  participation  in  the
 9    program of special real  property  tax  relief  within  their
10    taxing jurisdictions. The provisions of this subsection shall
11    not  apply  to  municipalities  and school districts included
12    under subsection (d) of this Section.
13        (d)  Notwithstanding any provision to  the  contrary,  if
14    the  corporate  authority  of a county with 3,000,000 or more
15    inhabitants enacts an ordinance or resolution  in  accordance
16    with  subsection  (c),  a  municipality  having  a population
17    exceeding 500,000 within that county and a school district in
18    a municipality having a population exceeding  500,000  within
19    that  county  must  participate  in  the  program  of special
20    property tax relief within their taxing  jurisdiction.   This
21    subsection is a denial and limitation of home rule powers and
22    functions under subsection (g) of Section 6 of Article VII of
23    the Illinois Constitution.
24    (Source: P.A. 90-648, eff. 7-24-98; 91-894, eff. 1-1-01.)

25        (35 ILCS 250/20)
26        Sec. 20.  Conditions of deferral or exemption.
27        (a)  Any  deferral or exemption of payment of an increase
28    in real property  taxes  granted  under  this  Act  shall  be
29    limited  to  real  property  that meets both of the following
30    conditions:
31             (1)  The  property  is  owned  and  occupied  by   a
32        longtime owner-occupant.
33             (2)  The  property  is  the  principal residence and
                            -5-                LRB9207583SMdv
 1        domicile of the longtime owner-occupant.
 2        The corporate authorities of a county,  by  ordinance  or
 3    resolution, may impose additional criteria for qualifying for
 4    a  deferral  or  exemption  under this Act including, but not
 5    limited to, (i) requiring the owner-occupant  to  have  owned
 6    and  occupied  the same dwelling place as principal residence
 7    and domicile for  a  period  of  more  than  10  years,  (ii)
 8    establishing    age    criteria   for   eligibility   of   an
 9    owner-occupant, and (iii) establishing  income  criteria  for
10    eligibility of an owner-occupant.
11        (a-1)  In the case of a small business, the property must
12    be  the  principal  industrial  or commercial property of the
13    longtime small business owner  to  receive  any  deferral  or
14    exemption  of  payment  of an increase in real property taxes
15    under this Act.
16        (b)  No penalties or interest shall accrue on the portion
17    of any deferral granted under this Act.
18        (c)  Except as provided in subsection (d) of Section  15,
19    school  districts and municipalities within a county to which
20    this Act applies may determine whether financial  need,  age,
21    or  both,  of  the  longtime  owner-occupant shall be used to
22    determine eligibility.
23    (Source: P.A. 90-648, eff. 7-24-98.)

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

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