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1 | AN ACT concerning revenue.
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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 | ||||||
8 | or $3,500 in all other counties in tax year 2003;
(ii) | ||||||
9 | $5,000 in all counties in tax years 2004 and 2005; and | ||||||
10 | (iii) the lesser of the amount of the general homestead | ||||||
11 | exemption under Section 15-175 or an amount equal to | ||||||
12 | the increase in the equalized assessed value for the | ||||||
13 | current tax year above the equalized assessed value for | ||||||
14 | 1977 in tax year 2006 and thereafter.
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15 | (3) "Base homestead value".
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16 | (A) Except as provided in subdivision (b)(3)(A-5) | ||||||
17 | or (b)(3)(B), "base homestead value" means the | ||||||
18 | equalized assessed value of the property for the base | ||||||
19 | year
prior to exemptions, minus (i) $4,500 in Cook | ||||||
20 | County or $3,500 in all other counties in tax year | ||||||
21 | 2003, (ii) $5,000 in all counties in tax years
2004 and | ||||||
22 | 2005, or (iii) the lesser of the amount of the general | ||||||
23 | homestead exemption under Section 15-175 or an amount | ||||||
24 | equal to the increase in the equalized assessed value | ||||||
25 | for the current tax year above the equalized assessed | ||||||
26 | value for 1977 in tax year 2006 and
thereafter, |
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1 | provided that it was assessed for that
year as | ||||||
2 | residential property qualified for any of the | ||||||
3 | homestead exemptions
under Sections 15-170 through | ||||||
4 | 15-175 of this Code, then in force, and
further | ||||||
5 | provided that the property's assessment was not based | ||||||
6 | on a reduced
assessed value resulting from a temporary | ||||||
7 | irregularity in the property for
that year. Except as | ||||||
8 | provided in subdivision (b)(3)(B), if the property did | ||||||
9 | not have a
residential
equalized assessed value for the | ||||||
10 | base year, then "base homestead value" means the base
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11 | homestead value established by the assessor under | ||||||
12 | subsection (c).
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13 | (A-5) On or before September 1, 2007, in Cook | ||||||
14 | County, the base homestead value, as set forth under | ||||||
15 | subdivision (b)(3)(A) and except as provided under | ||||||
16 | subdivision (b) (3) (B), must be recalculated as the | ||||||
17 | equalized assessed value of the property for the base | ||||||
18 | year, prior to exemptions, minus: | ||||||
19 | (1) if the general assessment year for the | ||||||
20 | property was 2003, the lesser of (i) $4,500 or (ii) | ||||||
21 | the amount equal to the increase in equalized | ||||||
22 | assessed value for the 2002 tax year above the | ||||||
23 | equalized assessed value for 1977; | ||||||
24 | (2) if the general assessment year for the | ||||||
25 | property was 2004, the lesser of (i) $4,500 or (ii) | ||||||
26 | the amount equal to the increase in equalized |
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1 | assessed value for the 2003 tax year above the | ||||||
2 | equalized assessed value for 1977; | ||||||
3 | (3) if the general assessment year for the | ||||||
4 | property was 2005, the lesser of (i) $5,000 or (ii) | ||||||
5 | the amount equal to the increase in equalized | ||||||
6 | assessed value for the 2004 tax year above the | ||||||
7 | equalized assessed value for 1977.
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8 | (B) If the property is sold or ownership is | ||||||
9 | otherwise transferred, other than sales or transfers | ||||||
10 | between spouses or between a parent and a child, "base | ||||||
11 | homestead value" means the equalized assessed value of | ||||||
12 | the property at the time of the sale or transfer prior | ||||||
13 | to exemptions, minus: (i) $4,500 in Cook County or | ||||||
14 | $3,500 in all other counties in tax year 2003; (ii) | ||||||
15 | $5,000 in all counties in tax years 2004 and 2005; and | ||||||
16 | (iii) the lesser of the amount of the general homestead | ||||||
17 | exemption under Section 15-175 or an amount equal to | ||||||
18 | the increase in the equalized assessed value for the | ||||||
19 | current tax year above the equalized assessed value for | ||||||
20 | 1977 in tax year 2006 and thereafter, provided that it | ||||||
21 | was assessed as residential property qualified for any | ||||||
22 | of the homestead exemptions
under Sections 15-170 | ||||||
23 | through 15-175 of this Code, then in force, and
further | ||||||
24 | provided that the property's assessment was not based | ||||||
25 | on a reduced
assessed value resulting from a temporary | ||||||
26 | irregularity in the property.
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1 | (3.5) "Base year" means (i) tax year 2002 in Cook | ||||||
2 | County or (ii) tax year 2005 or 2006 in all other counties | ||||||
3 | in accordance with the designation made by the county as | ||||||
4 | provided in subsection (k).
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5 | (4) "Current tax year" means the tax year for which the | ||||||
6 | exemption under
this Section is being applied.
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7 | (5) "Equalized assessed value" means the property's | ||||||
8 | assessed value as
equalized by the Department.
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9 | (6) "Homestead" or "homestead property" means:
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10 | (A) Residential property that as of January 1 of | ||||||
11 | the tax year is
occupied by its owner or owners as his, | ||||||
12 | her, or their principal dwelling
place, or that is a | ||||||
13 | leasehold interest on which a single family residence | ||||||
14 | is
situated, that is occupied as a residence by a | ||||||
15 | person who has a legal or
equitable interest therein | ||||||
16 | evidenced by a written instrument, as an owner
or as a | ||||||
17 | lessee, and on which the person is liable for the | ||||||
18 | payment of
property taxes. Residential units in an | ||||||
19 | apartment building owned and
operated as a | ||||||
20 | cooperative, or as a life care facility, which are | ||||||
21 | occupied by
persons who hold a legal or equitable | ||||||
22 | interest in the cooperative apartment
building or life | ||||||
23 | care facility as owners or lessees, and who are liable | ||||||
24 | by
contract for the payment of property taxes, shall be | ||||||
25 | included within this
definition of homestead property.
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26 | (B) A homestead includes the dwelling place, |
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1 | appurtenant
structures, and so much of the surrounding | ||||||
2 | land constituting the parcel on
which the dwelling | ||||||
3 | place is situated as is used for residential purposes. | ||||||
4 | If
the assessor has established a specific legal | ||||||
5 | description for a portion of
property constituting the | ||||||
6 | homestead, then the homestead shall be limited to
the | ||||||
7 | property within that description.
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8 | (7) "Life care facility" means a facility as defined in | ||||||
9 | Section 2 of the
Life
Care Facilities Act.
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10 | (c) If the property did not have a residential equalized | ||||||
11 | assessed value for
the base year as provided in subdivision | ||||||
12 | (b)(3)(A) of this Section, then the assessor
shall first | ||||||
13 | determine an initial value for the property by comparison with
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14 | assessed values for the base year of other properties having | ||||||
15 | physical and
economic characteristics similar to those of the | ||||||
16 | subject property, so that the
initial value is uniform in | ||||||
17 | relation to assessed values of those other
properties for the | ||||||
18 | base year. The product of the initial value multiplied by
the | ||||||
19 | equalized factor for the base year for homestead properties in | ||||||
20 | that county, less: (i) $4,500 in Cook County or $3,500 in all | ||||||
21 | other counties in tax years 2003; (ii) $5,000 in all counties | ||||||
22 | in tax year 2004 and 2005; and (iii) the lesser of the amount | ||||||
23 | of the general homestead exemption under Section 15-175 or an | ||||||
24 | amount equal to the increase in the equalized assessed value | ||||||
25 | for the current tax year above the equalized assessed value for | ||||||
26 | 1977 in tax year 2006 and thereafter, is the base homestead |
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1 | value.
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2 | For any tax year for which the assessor determines or | ||||||
3 | adjusts an initial
value and
hence a base homestead value under | ||||||
4 | this subsection (c), the initial value shall
be subject
to | ||||||
5 | review by the same procedures applicable to assessed values | ||||||
6 | established
under this
Code for that tax year.
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7 | (d) The base homestead value shall remain constant, except | ||||||
8 | that the assessor
may
revise it under the following | ||||||
9 | circumstances:
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10 | (1) If the equalized assessed value of a homestead | ||||||
11 | property for the current
tax year is less than the previous | ||||||
12 | base homestead value for that property, then the
current | ||||||
13 | equalized assessed value (provided it is not based on a | ||||||
14 | reduced assessed
value resulting from a temporary | ||||||
15 | irregularity in the property) shall become the
base | ||||||
16 | homestead value in subsequent tax years.
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17 | (2) For any year in which new buildings, structures, or | ||||||
18 | other
improvements are constructed on the homestead | ||||||
19 | property that would increase its
assessed value, the | ||||||
20 | assessor shall adjust the base homestead value as provided | ||||||
21 | in
subsection (c) of this Section with due regard to the | ||||||
22 | value added by the new
improvements. | ||||||
23 | (3) If the property is sold or ownership is otherwise | ||||||
24 | transferred, the base homestead value of the property shall | ||||||
25 | be adjusted as provided in subdivision (b)(3)(B). This item | ||||||
26 | (3) does not apply to sales or transfers between spouses or |
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1 | between a parent and a child.
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2 | (4) the recalculation required in Cook County under | ||||||
3 | subdivision (b)(3)(A-5).
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4 | (e) The amount of the exemption under this Section is the | ||||||
5 | equalized assessed
value of the homestead property for the | ||||||
6 | current tax year, minus the adjusted homestead
value, with the | ||||||
7 | following exceptions: | ||||||
8 | (1) In Cook County, the exemption under this Section | ||||||
9 | shall not exceed $20,000 for any taxable year through tax | ||||||
10 | year: | ||||||
11 | (i) 2005, if the general assessment year for the
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12 | property is 2003; | ||||||
13 | (ii) 2006, if the general assessment year for the
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14 | property is 2004; or | ||||||
15 | (iii) 2007, if the general assessment year for the
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16 | property is 2005. | ||||||
17 | (1.1) Thereafter, in Cook County, and in all other | ||||||
18 | counties, the exemption is as follows: | ||||||
19 | (i) if the general assessment year for the property | ||||||
20 | is 2006, then the exemption may not exceed: $33,000 for | ||||||
21 | taxable year 2006 ; and $60,000 ; $26,000 for taxable | ||||||
22 | year 2007 ; and $20,000 for taxable year 2008 and | ||||||
23 | thereafter ; | ||||||
24 | (ii) if the general assessment year for the | ||||||
25 | property is 2007, then the exemption may not exceed: | ||||||
26 | $33,000 for taxable year 2007 ; and $60,000 ; $26,000 |
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1 | for taxable year 2008 ; and $20,000 for taxable year | ||||||
2 | 2009 and thereafter ; and | ||||||
3 | (iii) if the general assessment year for the | ||||||
4 | property is 2008, then the exemption may not exceed: | ||||||
5 | $33,000 for taxable year 2008 ; and $60,000 ; $26,000 | ||||||
6 | for taxable year 2009 ; and $20,000 for taxable year | ||||||
7 | 2010 and thereafter . | ||||||
8 | (1.5) In Cook County, for the 2006 taxable year only, the | ||||||
9 | maximum amount of the exemption set forth under subsection | ||||||
10 | (e)(1.1)(i) of this Section may be increased: (i) by $7,000 if | ||||||
11 | the equalized assessed value of the property in that taxable | ||||||
12 | year exceeds the equalized assessed value of that property in | ||||||
13 | 2002 by 100% or more; or (ii) by $2,000 if the equalized | ||||||
14 | assessed value of the property in that taxable year exceeds the | ||||||
15 | equalized assessed value of that property in 2002 by more than | ||||||
16 | 80% but less than 100%.
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17 | (2) In the case of homestead property that also | ||||||
18 | qualifies for
the exemption under Section 15-172, the | ||||||
19 | property is entitled to the exemption under
this Section, | ||||||
20 | limited to the amount of (i) $4,500 in Cook County or | ||||||
21 | $3,500 in all other counties in tax year 2003, (ii) $5,000 | ||||||
22 | in all counties in tax years 2004 and 2005, or (iii) the | ||||||
23 | lesser of the amount of the general homestead exemption | ||||||
24 | under Section 15-175 or an amount equal to the increase in | ||||||
25 | the equalized assessed value for the current tax year above | ||||||
26 | the equalized assessed value for 1977 in tax year 2006 and |
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1 | thereafter.
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2 | (f) In the case of an apartment building owned and operated | ||||||
3 | as a cooperative, or
as a life care facility, that contains | ||||||
4 | residential units that qualify as homestead property
under this | ||||||
5 | Section, the maximum cumulative exemption amount attributed to | ||||||
6 | the entire
building or facility shall not exceed the sum of the | ||||||
7 | exemptions calculated for each
qualified residential unit. The | ||||||
8 | cooperative association, management firm, or other person
or | ||||||
9 | entity that manages or controls the cooperative apartment | ||||||
10 | building or life care facility
shall credit the exemption | ||||||
11 | attributable to each residential unit only to the apportioned | ||||||
12 | tax
liability of the owner or other person responsible for | ||||||
13 | payment of taxes as to that unit.
Any person who willfully | ||||||
14 | refuses to so credit the exemption is guilty of a Class B
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15 | misdemeanor.
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16 | (g) When married persons maintain separate residences, the | ||||||
17 | exemption provided
under this Section shall be claimed by only | ||||||
18 | one such person and for only one residence.
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19 | (h) In the event of a sale or other transfer in ownership | ||||||
20 | of the homestead property, the exemption under this
Section | ||||||
21 | shall remain in effect for the remainder of the tax year and be | ||||||
22 | calculated using the same base homestead value in which the | ||||||
23 | sale or transfer occurs, but (other than for sales or transfers | ||||||
24 | between spouses or between a parent and a child) shall be | ||||||
25 | calculated for any subsequent tax year using the new base | ||||||
26 | homestead value as provided in subdivision (b)(3)(B).
The |
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1 | assessor may require the new owner of the property to apply for | ||||||
2 | the exemption in the
following year.
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3 | (i) The assessor may determine whether property qualifies | ||||||
4 | as a homestead under
this Section by application, visual | ||||||
5 | inspection, questionnaire, or other
reasonable methods.
Each | ||||||
6 | year, at the time the assessment books are certified to the | ||||||
7 | county clerk
by the board
of review, the assessor shall furnish | ||||||
8 | to the county clerk a list of the
properties qualified
for the | ||||||
9 | homestead exemption under this Section. The list shall note the | ||||||
10 | base
homestead
value of each property to be used in the | ||||||
11 | calculation of the exemption for the
current tax
year.
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12 | (j) In counties with 3,000,000 or more inhabitants, the | ||||||
13 | provisions of this Section apply as follows:
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14 | (1) If the general assessment year for the property is | ||||||
15 | 2003, this Section
applies for taxable years 2003 and | ||||||
16 | thereafter. assessment years 2003, 2004, 2005, 2006, 2007, | ||||||
17 | and 2008.
Thereafter, the provisions of Section 15-175 | ||||||
18 | apply.
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19 | (2) If the general assessment year for the property is | ||||||
20 | 2004, this Section
applies for taxable years 2004 and | ||||||
21 | thereafter. assessment years 2004, 2005, 2006, 2007, 2008, | ||||||
22 | and 2009.
Thereafter, the provisions of Section 15-175 | ||||||
23 | apply.
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24 | (3) If the general assessment year for the property is | ||||||
25 | 2005, this Section
applies for taxable years 2005 and | ||||||
26 | thereafter. assessment years 2005, 2006, 2007, 2008, 2009, |
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1 | and 2010.
Thereafter, the provisions of Section 15-175 | ||||||
2 | apply. | ||||||
3 | In counties with less than 3,000,000 inhabitants, this | ||||||
4 | Section applies for assessment years (i) 2006, 2007, and 2008, | ||||||
5 | and 2009 if tax year 2005 is the designated base year or (ii) | ||||||
6 | 2007, 2008, 2009, and 2010 if tax year 2006 is the designated | ||||||
7 | base year. Thereafter, the provisions of Section 15-175 apply.
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8 | (k) To be subject to the provisions of this Section in lieu | ||||||
9 | of Section 15-175, a county must adopt an ordinance to subject | ||||||
10 | itself to the provisions of this Section within 6 months after | ||||||
11 | the effective date of this amendatory Act of the 95th General | ||||||
12 | Assembly. In a county other than Cook County, the ordinance | ||||||
13 | must designate either tax year 2005
or tax year 2006
as the | ||||||
14 | base year.
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15 | (l) Notwithstanding Sections 6 and 8 of the State Mandates | ||||||
16 | Act, no
reimbursement
by the State is required for the | ||||||
17 | implementation of any mandate created by this
Section.
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18 | (Source: P.A. 95-644, eff. 10-12-07.)
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19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.
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