SB2079 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2079

Introduced 2/25/2005, by Sen. Chris Lauzen

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-173 new
30 ILCS 805/8.29 new

Amends the Property Tax Code. Creates the Citizens' Assessment Freeze Exemption. Beginning in taxable year 2005, an assessment freeze exemption is granted for real property that is owned by an Illinois taxpayer or leased by a lessee who is an Illinois taxpayer who has a legal or equitable ownership interest in the property as lessee and is liable for the payment of real property taxes on that property. Provides that the amount of this exemption is the equalized assessed value of the property in the taxable year for which application is made minus the base amount. Defines "base amount" as the base year equalized assessed value of the property plus the first year's equalized assessed value of any added improvements that increased the assessed value of the property after the base year. Defines "base year" as the taxable year prior to the taxable year for which the applicant first qualifies and applies for the exemption. Provides that, for property that is used for residential or farm purposes, a new base year shall be established when the applicant sells or transfers the property and, for all other property, a new base year shall be established at the earlier of (i) 10 years or (ii) the sale or transfer of the property. Sets forth application procedures for the exemption. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

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 adding Section 15-173 as follows:

(35 ILCS 200/15-173 new)

Sec. 15-173. Citizens' Assessment Freeze Exemption.

(a) This Section may be cited as the Citizens' Assessment Freeze Exemption.

(b) As used in this Section:

"Applicant" means an individual who has filed an application under this Section.

"Base amount" means the base year equalized assessed value of the property plus the first year's equalized assessed value of any added improvements that increased the assessed value of the property after the base year.

"Base year" means the taxable year prior to the taxable year for which the applicant first qualifies and applies for the exemption. If in any subsequent taxable year for which the applicant applies and qualifies for the exemption the equalized assessed value of the property is less than the equalized assessed value in the existing base year (provided that the equalized assessed value is not based on an assessed value that results from a temporary irregularity in the property that reduces the assessed value for one or more taxable years), then that subsequent taxable year shall become the base year until a new base year is established under the terms of this paragraph. For property that is used for residential or farm purposes, a new base year shall be established when the applicant sells or transfers the property. For all other property, a new base year shall be established at the earlier of (i) 10 years or (ii) the sale or transfer of the property.

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

"Taxable year" means the calendar year during which ad valorem property taxes payable in the next succeeding year are levied.

(c) Beginning in taxable year 2005, an assessment freeze exemption is granted for real property that is owned by an Illinois taxpayer. This assessment freeze exemption also applies to a leasehold interest in a parcel of property if the lessee is an Illinois taxpayer who has a legal or equitable ownership interest in the property as lessee and is liable for the payment of real property taxes on that property.

The amount of this exemption is the equalized assessed value of the property in the taxable year for which application is made minus the base amount.

Each year, at the time the assessment books are certified to the county clerk, the Board of Review or Board of Appeals must give to the county clerk a list of the assessed values of improvements on each parcel qualifying for this exemption that were added after the base year for this parcel and that increased the assessed value of the property.

In counties having 3,000,000 or more inhabitants, to receive the exemption, a person may submit an application to the chief county assessment officer of the county in which the property is located during such period as may be specified by the chief county assessment officer. The chief county assessment officer in counties of 3,000,000 or more inhabitants shall annually give notice of the application period by mail or by publication.

In counties having less than 3,000,000 inhabitants, to receive the exemption, a person must submit an application by July 1 of each taxable year to the chief county assessment officer of the county in which the property is located. A county may, by ordinance, establish a date for submission of applications that is different than July 1. The applicant shall submit with the application an affidavit of the applicant's legal or equitable ownership interest in the property as owner or lessee. The applications shall be clearly marked as applications for the Citizens' Assessment Freeze Exemption.

(d) Each chief county assessment officer shall annually publish a notice of availability of the exemption provided under this Section. The notice shall be published at least 60 days but no more than 75 days prior to the date on which the application must be submitted to the chief county assessment officer of the county in which the property is located. The notice shall appear in a newspaper of general circulation in the county.

(e) 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 90. The State Mandates Act is amended by adding Section 8.29 as follows:

(30 ILCS 805/8.29 new)

Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

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