SB3078 95TH GENERAL ASSEMBLY

LRB095 23099 HLH 53713 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB3078

Introduced 11/20/2008, by Sen. M. Maggie Crotty

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.719 new
30 ILCS 105/6z-76 new
35 ILCS 5/208	from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. In a Section concerning the residential tax credit, provides that an individual taxpayer shall be entitled to the credit only if the taxpayer's adjusted gross income for the taxable year is less than $250,000. Provides that the credit shall be limited to $1,000 for each individual taxpayer. Amends the State Finance Act. Creates the County Circuit Breaker Matching Grants Fund. Provides that, by June 30, 2009 and by June 30 of each year thereafter, the State Comptroller and the State Treasurer shall transfer from the General Revenue Fund to the Circuit Breaker Matching Grants Fund an amount equal to the amount of the difference between the 5% residential property tax credit for 2007 and the amount of the credit for that taxable year. Provides that moneys in the Fund shall be transferred to counties that create a property tax circuit breaker. 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 State Finance Act is amended by adding Sections 5.719 and 6z-76 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The County Circuit Breaker Matching Grants Fund.

(30 ILCS 105/6z-76 new)

Sec. 6z-76. The County Circuit Breaker Matching Grants Fund; creation.

(a) There is created in the State treasury a special fund to be known as the County Circuit Breaker Matching Grants Fund. On June 30, 2009 and by June 30 of each year thereafter, the State Comptroller and the State Treasurer shall transfer from the General Revenue Fund to the County Circuit Breaker Matching Grants Fund an amount equal to the amount of the difference between the 5% residential property tax credit as provided in Section 208(a) of the Illinois Income Tax Act (35 ILCS 5/208) for tax year 2007 and the 5% residential property tax credit for the taxable year of the transfer, as modified by Sections 208(b) and 208(c) of the Illinois Income Tax Act (35 ILCS 5/208(b) and 35 ILCS 5/208(c)).

(b) Each county that has created a property tax circuit breaker that provides property tax relief to homeowners for the amount of property tax paid greater than 5% of their household income and a maximum grant that does not exceed $700 per applicant must annually certify to the Department of Revenue the amount the county has appropriated for its circuit breaker program and the matching grant amount needed from the County Circuit Breaker Matching Grant Fund. The Department of Revenue shall certify to the State Comptroller and State Treasurer the amounts for each county's certification. Within 30 days after receipt of the Department of Revenue's certification as required by this Section, the State Comptroller and State Treasurer shall transfer from the County Circuit Breaker Matching Grant Fund to the Department of Revenue the respective certified matching grant amounts for transfer to the counties.

Section 10. The Illinois Income Tax Act is amended by changing Section 208 as follows:

(35 ILCS 5/208) (from Ch. 120, par. 2-208)

Sec. 208. Tax credit for residential real property taxes.

(a) Beginning with tax years ending on or after December 31, 1991, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes which is attributable to such principal residence.

(b) Beginning with tax years ending on or after December 31, 2008, an individual taxpayer shall be entitled to the tax credit provided in subsection (a) only if the taxpayer's adjusted gross income for the taxable year is less than $250,000.

(c)Beginning with tax years ending on or after December 31, 2008, the maximum tax credit allowed is $1,000 for each individual taxpayer.

(Source: P.A. 87-17.)

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