093_HB0110

 
                                     LRB093 03792 SJM 03827 b

 1        AN ACT concerning taxation.

 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        The maximum reduction shall be $4,500  in  counties  with
22    3,000,000  or  more  inhabitants  and  $3,500  in  all  other
23    counties.  In  all other counties the maximum reduction shall
24    be $3,500 for taxable years 2002 and before  and  $4,500  for
25    taxable years 2003 and thereafter.
26        In  counties  with  fewer than 3,000,000 inhabitants, if,
27    based on the most recent assessment, the  equalized  assessed
28    value  of  the  homestead property for the current assessment
29    year is greater than the  equalized  assessed  value  of  the
30    property   for   1977,   the  owner  of  the  property  shall
31    automatically  receive  the  exemption  granted  under   this
 
                            -2-      LRB093 03792 SJM 03827 b
 1    Section  in  an  amount  equal  to the increase over the 1977
 2    assessment up to the maximum  reduction  set  forth  in  this
 3    Section.
 4        If  in  any  assessment  year  beginning  with  the  2000
 5    assessment  year, homestead property has a pro-rata valuation
 6    under Section 9-180 resulting in an increase in the  assessed
 7    valuation,  a reduction in equalized assessed valuation equal
 8    to the increase in equalized assessed value of  the  property
 9    for  the  year  of the pro-rata valuation above the equalized
10    assessed value of the property for 1977 shall be  applied  to
11    the  property  on  a  proportionate  basis for the period the
12    property  qualified  as   homestead   property   during   the
13    assessment   year.    The   maximum  proportionate  homestead
14    exemption shall not exceed the  maximum  homestead  exemption
15    allowed  in  the county under this Section divided by 365 and
16    multiplied by the number of days the  property  qualified  as
17    homestead property.
18        "Homestead   property"   under   this   Section  includes
19    residential property that is occupied by its owner or  owners
20    as  his  or  their  principal  dwelling  place,  or that is a
21    leasehold interest on which  a  single  family  residence  is
22    situated,  which  is  occupied as a residence by a person who
23    has an ownership interest therein, legal or equitable or as a
24    lessee, and on which the person is liable for the payment  of
25    property  taxes. For land improved with an apartment building
26    owned and operated as a cooperative or a building which is  a
27    life   care   facility  as  defined  in  Section  15-170  and
28    considered to be a  cooperative  under  Section  15-170,  the
29    maximum  reduction from the equalized assessed value shall be
30    limited to the increase in  the  value  above  the  equalized
31    assessed  value  of  the property for 1977, up to the maximum
32    reduction set  forth  above,  multiplied  by  the  number  of
33    apartments  or  units  occupied by a person or persons who is
34    liable, by contract with the owner or owners of  record,  for
 
                            -3-      LRB093 03792 SJM 03827 b
 1    paying  property  taxes  on  the  property and is an owner of
 2    record of a legal or equitable interest  in  the  cooperative
 3    apartment  building,  other  than  a  leasehold interest. For
 4    purposes of this Section, the term "life care  facility"  has
 5    the meaning stated in Section 15-170.
 6        In  a  cooperative  where  a homestead exemption has been
 7    granted, the cooperative association or its  management  firm
 8    shall  credit  the savings resulting from that exemption only
 9    to the apportioned tax liability of the owner  who  qualified
10    for  the  exemption.   Any person who willfully refuses to so
11    credit the savings shall be guilty of a Class B misdemeanor.
12        Where married persons maintain  and  reside  in  separate
13    residences  qualifying  as homestead property, each residence
14    shall  receive  50%  of  the  total  reduction  in  equalized
15    assessed valuation provided by this Section.
16        In counties with more  than  3,000,000  inhabitants,  the
17    assessor or chief county assessment officer may determine the
18    eligibility  of residential property to receive the homestead
19    exemption by application, visual inspection, questionnaire or
20    other reasonable methods.  The determination shall be made in
21    accordance with guidelines established by the Department.  In
22    counties with fewer than 3,000,000 inhabitants, in the  event
23    of a sale of homestead property the homestead exemption shall
24    remain  in effect for the remainder of the assessment year of
25    the sale.  The assessor or chief  county  assessment  officer
26    may  require  the  new owner of the property to apply for the
27    homestead exemption for the following assessment year.
28    (Source: P.A. 90-368, eff.  1-1-98;  90-552,  eff.  12-12-97;
29    90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)

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