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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 15-176 as follows:
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6 | (35 ILCS 200/15-176)
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7 | Sec. 15-176. Alternative general homestead exemption.
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8 | (a) For the assessment years as determined under subsection | ||||||||||||||||||||||||||
9 | (j), in any county that has elected, by an ordinance in | ||||||||||||||||||||||||||
10 | accordance with subsection (k), to be subject to the provisions | ||||||||||||||||||||||||||
11 | of this Section in lieu of the provisions of Section 15-175, | ||||||||||||||||||||||||||
12 | homestead property is
entitled to
an annual homestead exemption | ||||||||||||||||||||||||||
13 | equal to a reduction in the property's equalized
assessed
value | ||||||||||||||||||||||||||
14 | calculated as provided in this Section.
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15 | (b) As used in this Section:
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16 | (1) "Assessor" means the supervisor of assessments or | ||||||||||||||||||||||||||
17 | the chief county assessment officer of each county.
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18 | (2) "Adjusted homestead value" means the lesser of the | ||||||||||||||||||||||||||
19 | following values:
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20 | (A) The property's base homestead value increased | ||||||||||||||||||||||||||
21 | by 7% for each
tax year after the base year through and | ||||||||||||||||||||||||||
22 | including the current tax year, or, if the property is | ||||||||||||||||||||||||||
23 | sold or ownership is otherwise transferred, the |
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1 | property's base homestead value increased by 7% for | ||||||
2 | each tax year after the year of the sale or transfer | ||||||
3 | through and including the current tax year. The | ||||||
4 | increase by 7% each year is an increase by 7% over the | ||||||
5 | prior year.
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6 | (B) The property's equalized assessed value for | ||||||
7 | the current tax
year minus (i) $4,500 in Cook County or | ||||||
8 | $3,500 in all other counties in tax year 2003 or (ii) | ||||||
9 | $5,000 in all counties in tax year 2004 and thereafter.
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10 | (3) "Base homestead value".
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11 | (A) Except as provided in subdivision (b)(3)(B), | ||||||
12 | "base homestead value" means the equalized assessed | ||||||
13 | value of the property for the base year
prior to | ||||||
14 | exemptions, minus (i) $4,500 in Cook County or $3,500 | ||||||
15 | in all other counties in tax year 2003 or (ii) $5,000 | ||||||
16 | in all counties in tax year 2004 and thereafter, | ||||||
17 | provided that it was assessed for that
year as | ||||||
18 | residential property qualified for any of the | ||||||
19 | homestead exemptions
under Sections 15-170 through | ||||||
20 | 15-175 of this Code, then in force, and
further | ||||||
21 | provided that the property's assessment was not based | ||||||
22 | on a reduced
assessed value resulting from a temporary | ||||||
23 | irregularity in the property for
that year. Except as | ||||||
24 | provided in subdivision (b)(3)(B), if the property did | ||||||
25 | not have a
residential
equalized assessed value for the | ||||||
26 | base year, then "base homestead value" means the base
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1 | homestead value established by the assessor under | ||||||
2 | subsection (c).
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3 | (B) If the property is sold or ownership is | ||||||
4 | otherwise transferred, other than sales or transfers | ||||||
5 | between spouses or between a parent and a child, "base | ||||||
6 | homestead value" means the equalized assessed value of | ||||||
7 | the property at the time of the sale or transfer prior | ||||||
8 | to exemptions, minus (i) $4,500 in Cook County or | ||||||
9 | $3,500 in all other counties in tax year 2003 or (ii) | ||||||
10 | $5,000 in all counties in tax year 2004 and thereafter, | ||||||
11 | provided that it was assessed as residential property | ||||||
12 | qualified for any of the homestead exemptions
under | ||||||
13 | Sections 15-170 through 15-175 of this Code, then in | ||||||
14 | force, and
further provided that the property's | ||||||
15 | assessment was not based on a reduced
assessed value | ||||||
16 | resulting from a temporary irregularity in the | ||||||
17 | property.
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18 | (3.5) "Base year" means (i) tax year 2002 in Cook | ||||||
19 | County or (ii) tax year 2005 or 2006
2002 or 2003 in all | ||||||
20 | other counties in accordance with the designation made by | ||||||
21 | the county as provided in subsection (k).
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22 | (4) "Current tax year" means the tax year for which the | ||||||
23 | exemption under
this Section is being applied.
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24 | (5) "Equalized assessed value" means the property's | ||||||
25 | assessed value as
equalized by the Department.
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26 | (6) "Homestead" or "homestead property" means:
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1 | (A) Residential property that as of January 1 of | ||||||
2 | the tax year is
occupied by its owner or owners as his, | ||||||
3 | her, or their principal dwelling
place, or that is a | ||||||
4 | leasehold interest on which a single family residence | ||||||
5 | is
situated, that is occupied as a residence by a | ||||||
6 | person who has a legal or
equitable interest therein | ||||||
7 | evidenced by a written instrument, as an owner
or as a | ||||||
8 | lessee, and on which the person is liable for the | ||||||
9 | payment of
property taxes. Residential units in an | ||||||
10 | apartment building owned and
operated as a | ||||||
11 | cooperative, or as a life care facility, which are | ||||||
12 | occupied by
persons who hold a legal or equitable | ||||||
13 | interest in the cooperative apartment
building or life | ||||||
14 | care facility as owners or lessees, and who are liable | ||||||
15 | by
contract for the payment of property taxes, shall be | ||||||
16 | included within this
definition of homestead property.
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17 | (B) A homestead includes the dwelling place, | ||||||
18 | appurtenant
structures, and so much of the surrounding | ||||||
19 | land constituting the parcel on
which the dwelling | ||||||
20 | place is situated as is used for residential purposes. | ||||||
21 | If
the assessor has established a specific legal | ||||||
22 | description for a portion of
property constituting the | ||||||
23 | homestead, then the homestead shall be limited to
the | ||||||
24 | property within that description.
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25 | (7) "Life care facility" means a facility as defined in | ||||||
26 | Section 2 of the
Life
Care Facilities Act.
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1 | (c) If the property did not have a residential equalized | ||||||
2 | assessed value for
the base year as provided in subdivision | ||||||
3 | (b)(3)(A) of this Section, then the assessor
shall first | ||||||
4 | determine an initial value for the property by comparison with
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5 | assessed values for the base year of other properties having | ||||||
6 | physical and
economic characteristics similar to those of the | ||||||
7 | subject property, so that the
initial value is uniform in | ||||||
8 | relation to assessed values of those other
properties for the | ||||||
9 | base year. The product of the initial value multiplied by
the | ||||||
10 | equalized factor for the base year for homestead properties in | ||||||
11 | that county, less (i) $4,500 in Cook County or $3,500 in all | ||||||
12 | other counties in tax year 2003 or (ii) $5,000 in all counties | ||||||
13 | in tax year 2004 and thereafter, is the base homestead value.
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14 | For any tax year for which the assessor determines or | ||||||
15 | adjusts an initial
value and
hence a base homestead value under | ||||||
16 | this subsection (c), the initial value shall
be subject
to | ||||||
17 | review by the same procedures applicable to assessed values | ||||||
18 | established
under this
Code for that tax year.
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19 | (d) The base homestead value shall remain constant, except | ||||||
20 | that the assessor
may
revise it under the following | ||||||
21 | circumstances:
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22 | (1) If the equalized assessed value of a homestead | ||||||
23 | property for the current
tax year is less than the previous | ||||||
24 | base homestead value for that property, then the
current | ||||||
25 | equalized assessed value (provided it is not based on a | ||||||
26 | reduced assessed
value resulting from a temporary |
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1 | irregularity in the property) shall become the
base | ||||||
2 | homestead value in subsequent tax years.
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3 | (2) For any year in which new buildings, structures, or | ||||||
4 | other
improvements are constructed on the homestead | ||||||
5 | property that would increase its
assessed value, the | ||||||
6 | assessor shall adjust the base homestead value as provided | ||||||
7 | in
subsection (c) of this Section with due regard to the | ||||||
8 | value added by the new
improvements. | ||||||
9 | (3) If the property is sold or ownership is otherwise | ||||||
10 | transferred, the base homestead value of the property shall | ||||||
11 | be adjusted as provided in subdivision (b)(3)(B). This item | ||||||
12 | (3) does not apply to sales or transfers between spouses or | ||||||
13 | between a parent and a child.
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14 | (e) The amount of the exemption under this Section is the | ||||||
15 | equalized assessed
value of the homestead property for the | ||||||
16 | current tax year, minus the adjusted homestead
value, with the | ||||||
17 | following exceptions: | ||||||
18 | (1)
In Cook County, the
The exemption under this | ||||||
19 | Section shall not exceed $20,000 for any taxable year | ||||||
20 | through taxable year: | ||||||
21 | (A) 2005, if the general assessment year for the
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22 | property is 2003; | ||||||
23 | (B) 2006, if the general assessment year for the
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24 | property is 2004; or | ||||||
25 | (C) 2007, if the general assessment year for the
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26 | property is 2005 . |
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1 | Thereafter, in Cook County, the exemption under this
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2 | Section shall not exceed $60,000 for any taxable year. | ||||||
3 | (1.5) For all tax years in all counties other
than Cook | ||||||
4 | County, the exemption under this Section shall
not exceed | ||||||
5 | $60,000 for any taxable year.
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6 | (2) In the case of homestead property that also | ||||||
7 | qualifies for
the exemption under Section 15-172, the | ||||||
8 | property is entitled to the exemption under
this Section, | ||||||
9 | limited to the amount of (i) $4,500 in Cook County or | ||||||
10 | $3,500 in all other counties in tax year 2003 or (ii) | ||||||
11 | $5,000 in all counties in tax year 2004 and thereafter.
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12 | (f) In the case of an apartment building owned and operated | ||||||
13 | as a cooperative, or
as a life care facility, that contains | ||||||
14 | residential units that qualify as homestead property
under this | ||||||
15 | Section, the maximum cumulative exemption amount attributed to | ||||||
16 | the entire
building or facility shall not exceed the sum of the | ||||||
17 | exemptions calculated for each
qualified residential unit. The | ||||||
18 | cooperative association, management firm, or other person
or | ||||||
19 | entity that manages or controls the cooperative apartment | ||||||
20 | building or life care facility
shall credit the exemption | ||||||
21 | attributable to each residential unit only to the apportioned | ||||||
22 | tax
liability of the owner or other person responsible for | ||||||
23 | payment of taxes as to that unit.
Any person who willfully | ||||||
24 | refuses to so credit the exemption is guilty of a Class B
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25 | misdemeanor.
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26 | (g) When married persons maintain separate residences, the |
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1 | exemption provided
under this Section shall be claimed by only | ||||||
2 | one such person and for only one residence.
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3 | (h) In the event of a sale or other transfer in ownership | ||||||
4 | of the homestead property, the exemption under this
Section | ||||||
5 | shall remain in effect for the remainder of the tax year in | ||||||
6 | which the sale or transfer occurs, but (other than for sales or | ||||||
7 | transfers between spouses or between a parent and a child) | ||||||
8 | shall be calculated using the new base homestead value as | ||||||
9 | provided in subdivision (b)(3)(B).
The assessor may require the | ||||||
10 | new owner of the property to apply for the exemption in the
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11 | following year.
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12 | (i) The assessor may determine whether property qualifies | ||||||
13 | as a homestead under
this Section by application, visual | ||||||
14 | inspection, questionnaire, or other
reasonable methods.
Each | ||||||
15 | year, at the time the assessment books are certified to the | ||||||
16 | county clerk
by the board
of review, the assessor shall furnish | ||||||
17 | to the county clerk a list of the
properties qualified
for the | ||||||
18 | homestead exemption under this Section. The list shall note the | ||||||
19 | base
homestead
value of each property to be used in the | ||||||
20 | calculation of the exemption for the
current tax
year.
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21 | (j) In counties with 3,000,000 or more inhabitants, the | ||||||
22 | provisions of this Section apply as follows:
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23 | (1) If the general assessment year for the property is | ||||||
24 | 2003, this Section
applies for assessment years 2003, 2004, | ||||||
25 | and 2005.
Thereafter, the provisions of Section 15-175 | ||||||
26 | apply.
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1 | (2) If the general assessment year for the property is | ||||||
2 | 2004, this Section
applies for assessment years 2004, 2005, | ||||||
3 | and 2006.
Thereafter, the provisions of Section 15-175 | ||||||
4 | apply.
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5 | (3) If the general assessment year for the property is | ||||||
6 | 2005, this Section
applies for assessment years 2005, 2006, | ||||||
7 | and 2007.
Thereafter, the provisions of Section 15-175 | ||||||
8 | apply. | ||||||
9 | (4) If the general assessment year for the property is | ||||||
10 | 2007 and only if the county elects, by ordinance, to extend | ||||||
11 | the application of this Section under subsection (k-5), | ||||||
12 | then this Section continues to apply for assessment years | ||||||
13 | 2007, 2008, and 2009. Thereafter, the provisions of Section | ||||||
14 | 15-175 apply. | ||||||
15 | (5) If the general assessment year for the property is | ||||||
16 | 2008 and only if the county elects, by ordinance, to extend | ||||||
17 | the application of this Section under subsection (k-5), | ||||||
18 | then this Section continues to apply for assessment years | ||||||
19 | 2008, 2009, and 2010. Thereafter, the provisions of Section | ||||||
20 | 15-175 apply. | ||||||
21 | (6) If the general assessment year for the property is | ||||||
22 | 2009 and only if the county elects, by ordinance, to extend | ||||||
23 | the application of this Section under subsection (k-5), | ||||||
24 | then this Section continues to apply for assessment years | ||||||
25 | 2009, 2010, and 2011. Thereafter, the provisions of Section | ||||||
26 | 15-175 apply.
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1 | In counties with less than 3,000,000 inhabitants, this | ||||||
2 | Section applies for assessment years (i) 2006, 2007, and 2008 | ||||||
3 | if tax year 2005
2003, 2004, and 2005 if 2002 is the designated | ||||||
4 | base year or (ii) 2007, 2008, and 2009 if tax year 2006
2004, | ||||||
5 | 2005, and 2006 if 2003 is the designated base year. Thereafter, | ||||||
6 | the provisions of Section 15-175 apply.
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7 | (k) To be subject to the provisions of this Section in lieu | ||||||
8 | of Section 15-175, a county must adopt an ordinance to subject | ||||||
9 | itself to the provisions of this Section within (i) 6 months | ||||||
10 | after the effective date of this amendatory Act of the
93rd | ||||||
11 | General Assembly for Cook County, except as provided in | ||||||
12 | subsection (k-5), or (ii) within 6 months after the effective | ||||||
13 | date of this amendatory Act of the 95th General Assembly for | ||||||
14 | all other counties . In a county other than Cook County, the | ||||||
15 | ordinance must designate either tax year 2005
2002
or tax year | ||||||
16 | 2006
2003
as the base year.
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17 | (k-5) Cook County may elect, by ordinance, to extend the | ||||||
18 | application of this Section for the assessment years set forth | ||||||
19 | under items (4), (5), and (6) of subsection (j). The ordinance | ||||||
20 | must be adopted within 6 months after the effective date of | ||||||
21 | this amendatory Act of the 95th General Assembly.
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22 | (l) Notwithstanding Sections 6 and 8 of the State Mandates | ||||||
23 | Act, no
reimbursement
by the State is required for the | ||||||
24 | implementation of any mandate created by this
Section.
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25 | (Source: P.A. 93-715, eff. 7-12-04.) |
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1 | Section 90. The State Mandates Act is amended by adding | ||||||
2 | Section 8.31 as follows: | ||||||
3 | (30 ILCS 805/8.31 new) | ||||||
4 | Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
5 | of this Act, no reimbursement by the State is required for the | ||||||
6 | implementation of any mandate created by this amendatory Act of | ||||||
7 | the 95th General Assembly.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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