HB4125 100TH GENERAL ASSEMBLY

LRB100 13612 HLH 28234 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4125

Introduced , by Rep. Barbara Wheeler

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-173
35 ILCS 200/15-173.5 new

Amends the Property Tax Code. Creates the Natural Disaster Home Repair Assistance Homestead Exemption. Creates a homestead exemption for homestead property that meets the following criteria: (1) the property sustains damage as a result a natural disaster occurring in assessment year 2017 or any assessment year thereafter; and (2) the homeowner incurs costs to repair that damage during the assessment year for which the exemption is sought. Provides that the exemption is a reduction in the equalized assessed value of the property in an amount equal to the costs incurred by the homeowner, but not to exceed $5,000 per year. 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 Property Tax Code is amended by changing Section 15-173 and by adding Section 15-173.5 as follows:

(35 ILCS 200/15-173)

Sec. 15-173. Natural Disaster Homestead Exemption.

(a) This Section may be cited as the Natural Disaster Homestead Exemption.

(b) As used in this Section:

"Base amount" means the base year equalized assessed value of the residence.

"Base year" means the taxable year prior to the taxable year in which the natural disaster occurred.

"Chief county assessment officer" means the County Assessor or Supervisor of Assessments of the county in which the property is located.

"Equalized assessed value" means the assessed value as equalized by the Illinois Department of Revenue.

"Homestead property" has the meaning ascribed to that term in Section 15-175 of this Code.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a residential structure affected by flooding, the structure shall not be eligible for this homestead improvement exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. A proclamation of disaster by the President of the United States or Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster under this Section.

(c) A homestead exemption shall be granted by the chief county assessment officer for homestead properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year 2012 or any taxable year thereafter. The amount of the exemption is the equalized assessed value of the residence in the first taxable year for which the taxpayer applies for an exemption under this Section minus the base amount. To be eligible for an exemption under this Section: (i) the residential structure must be rebuilt within 2 years after the date of the natural disaster; and (ii) the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster. The taxpayer's initial application for an exemption under this Section must be made no later than the first taxable year after the residential structure is rebuilt. The exemption shall continue at the same annual amount until the taxable year in which the property is sold or transferred.

(d) To receive the exemption, the taxpayer shall submit an application to the chief county assessment officer of the county in which the property is located by July 1 of each taxable year. A county may, by resolution, establish a date for submission of applications that is different than July 1. The chief county assessment officer may require additional documentation to be provided by the applicant. The applications shall be clearly marked as applications for the Natural Disaster Homestead Exemption.

(e) Property is not eligible for an exemption under this Section, Section 15-173.5, and Section 15-180 for the same natural disaster or catastrophic event. The property may, however, remain eligible for an additional exemption under Section 15-180 for any separate event occurring after the property qualified for an exemption under this Section.

(f) The exemption under this Section carries over to the benefit of the surviving spouse as long as the spouse holds the legal or beneficial title to the homestead and permanently resides thereon.

(g) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

(Source: P.A. 97-716, eff. 6-29-12.)

(35 ILCS 200/15-173.5 new)

Sec. 15-173.5. Natural Disaster Home Repair Assistance Homestead Exemption.

(a) This Section may be cited as the Natural Disaster Home Repair Assistance Homestead Exemption.

(b) As used in this Section:

"Chief county assessment officer" means the county assessor or supervisor of assessments of the county in which the property is located.

"Homestead property" has the meaning given to that term in Section 15-175 of this Code.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including, but not limited to, fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a residential structure affected by flooding, the structure shall not be eligible for this homestead exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. A proclamation of disaster by the President of the United States or Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster under this Section.

(c) A homestead exemption, limited to a reduction from the property's equalized assessed value as set forth in subsection (e), shall be granted by the chief county assessment officer for homestead property that meets the following criteria:

(1) the property sustains damage as a result a natural disaster occurring in assessment year 2017 or any assessment year thereafter; and

(2) the homeowner incurs costs to repair that damage during the assessment year for which the exemption is sought.

(d) To be eligible for an exemption under this Section:

(1) the property must be repaired within 3 years after the date of the natural disaster; and

(2) the repairs must be made demonstrably as a result of the damage caused by the natural disaster to the property and shall not represent a homestead improvement, as provided under Section 15-180, of the original residential structure as it existed immediately prior to the natural disaster.

(e) The amount of the reduction shall be the amount of the costs incurred by the homeowner, but in no event shall the amount of the exemption exceed $5,000 per year.

(d) To receive the exemption, the taxpayer shall submit an application to the chief county assessment officer of the county in which the property is located by July 1 of each taxable year. A county may, by resolution, establish a date for submission of applications that is different than July 1. The chief county assessment officer may require additional documentation to be provided by the applicant in order to establish the value of the exemption and reasonably ascertain that the exemption applied for under this Section is awarded for repairs made on a property as a result of the natural disaster. The applications shall be clearly marked as applications for the Natural Disaster Home Repair Assistance Homestead Exemption.

(e) Property is not eligible for an exemption under this Section, Section 15-173, and Section 15-180 for the same natural disaster. The property may, however, remain eligible for an additional exemption under Section 15-173 or Section 15-180 for any separate event occurring after the property qualified for an exemption under this Section.

(f) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

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