HB3057 101ST GENERAL ASSEMBLY

LRB101 03627 HLH 48635 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3057

Introduced , by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-186 new

Amends the Property Tax Code. Creates a school tax reduction homestead exemption. Provides that, for the purpose of calculating taxes levied by a school district, there shall be a reduction from the equalized assessed value of qualified homestead property equal to the exempt amount. Sets forth the calculation of the exempt amount. Provides that "qualified homestead property" means homestead property owned by persons with a household income of less than $500,000 per year.

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 Property Tax Code is amended by adding Section 15-186 as follows:

(35 ILCS 200/15-186 new)

Sec. 15-186. School tax reduction (STAR) homestead exemption.

(a) The exemption provided in this Section shall be used when calculating the property taxes levied by a school district. For taxable years beginning on or after January 1, 2020, there shall be a reduction from the equalized assessed value of qualified homestead property equal to the exempt amount. The exempt amount for each property shall be determined annually by multiplying the base figure by the locally-applicable sales price differential factor, if any, as determined by the Department, and multiplying the product by the State equalization factor. The result is then rounded to the nearest multiple of ten dollars.

(b) As used in this Section:

"Base figure" means $10,000, multiplied each year by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the United States Department of Labor, Bureau of Labor Statistics, for the third quarter of the calendar year preceding the applicable school year, as compared to the third quarter of the prior calendar year. If a base figure as so determined is not exactly equal to a multiple of one hundred dollars, it shall be rounded to the nearest multiple of one hundred dollars.

"Sales price differential factor" means the average price of residential property in the county divided by the statewide average. The sales price of property which is held in condominium or cooperative form of ownership shall not be considered when determining median sales prices pursuant to this paragraph. If the median residential sales price is lower than the statewide average, the sales price differential factor is 1.0000.

"Qualified homestead property" means homestead property, as defined in Section 15-175, owned by persons with a household income, as defined in Section 15-172, of less than $500,000 per year.