093_SB0068

 
                                     LRB093 02020 SJM 02020 b

 1        AN ACT concerning 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        Before taxable year 2003 the maximum reduction  shall  be
22    $4,500  in  counties  with  3,000,000 or more inhabitants and
23    $3,500 in all other counties. For taxable year 2003 and  each
24    taxable  year  thereafter  the  maximum  reduction  shall  be
25    $13,500  in  counties  with 3,000,000 or more inhabitants and
26    $10,500 in all other counties.
27        In counties with fewer than  3,000,000  inhabitants,  if,
28    based  on  the most recent assessment, the equalized assessed
29    value of the homestead property for  the  current  assessment
30    year  is  greater  than  the  equalized assessed value of the
31    property  for  1977,  the  owner  of   the   property   shall
 
                            -2-      LRB093 02020 SJM 02020 b
 1    automatically   receive  the  exemption  granted  under  this
 2    Section in an amount equal to  the  increase  over  the  1977
 3    assessment  up  to  the  maximum  reduction set forth in this
 4    Section.
 5        If  in  any  assessment  year  beginning  with  the  2000
 6    assessment year, homestead property has a pro-rata  valuation
 7    under  Section 9-180 resulting in an increase in the assessed
 8    valuation, a reduction in equalized assessed valuation  equal
 9    to  the  increase in equalized assessed value of the property
10    for the year of the pro-rata valuation  above  the  equalized
11    assessed  value  of the property for 1977 shall be applied to
12    the property on a proportionate  basis  for  the  period  the
13    property   qualified   as   homestead   property  during  the
14    assessment  year.   The   maximum   proportionate   homestead
15    exemption  shall  not  exceed the maximum homestead exemption
16    allowed in the county under this Section divided by  365  and
17    multiplied  by  the  number of days the property qualified as
18    homestead property.
19        "Homestead  property"   under   this   Section   includes
20    residential  property that is occupied by its owner or owners
21    as his or their  principal  dwelling  place,  or  that  is  a
22    leasehold  interest  on  which  a  single family residence is
23    situated, which is occupied as a residence by  a  person  who
24    has an ownership interest therein, legal or equitable or as a
25    lessee,  and on which the person is liable for the payment of
26    property taxes. For land improved with an apartment  building
27    owned  and operated as a cooperative or a building which is a
28    life  care  facility  as  defined  in  Section   15-170   and
29    considered  to  be  a  cooperative  under Section 15-170, the
30    maximum reduction from the equalized assessed value shall  be
31    limited  to  the  increase  in  the value above the equalized
32    assessed value of the property for 1977, up  to  the  maximum
33    reduction  set  forth  above,  multiplied  by  the  number of
34    apartments or units occupied by a person or  persons  who  is
 
                            -3-      LRB093 02020 SJM 02020 b
 1    liable,  by  contract with the owner or owners of record, for
 2    paying property taxes on the property  and  is  an  owner  of
 3    record  of  a  legal or equitable interest in the cooperative
 4    apartment building, other  than  a  leasehold  interest.  For
 5    purposes  of  this Section, the term "life care facility" has
 6    the meaning stated in Section 15-170.
 7        In a cooperative where a  homestead  exemption  has  been
 8    granted,  the  cooperative association or its management firm
 9    shall credit the savings resulting from that  exemption  only
10    to  the  apportioned tax liability of the owner who qualified
11    for the exemption.  Any person who willfully  refuses  to  so
12    credit the savings shall be guilty of a Class B misdemeanor.
13        Where  married  persons  maintain  and reside in separate
14    residences qualifying as homestead property,  each  residence
15    shall  receive  50%  of  the  total  reduction  in  equalized
16    assessed valuation provided by this Section.
17        In  counties  with  more  than 3,000,000 inhabitants, the
18    assessor or chief county assessment officer may determine the
19    eligibility of residential property to receive the  homestead
20    exemption by application, visual inspection, questionnaire or
21    other reasonable methods.  The determination shall be made in
22    accordance with guidelines established by the Department.  In
23    counties  with fewer than 3,000,000 inhabitants, in the event
24    of a sale of homestead property the homestead exemption shall
25    remain in effect for the remainder of the assessment year  of
26    the  sale.   The  assessor or chief county assessment officer
27    may require the new owner of the property to  apply  for  the
28    homestead exemption for the following assessment year.
29    (Source: P.A.  90-368,  eff.  1-1-98;  90-552, eff. 12-12-97;
30    90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)

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