HB4290 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4290

Introduced 12/20/05, by Rep. Ron Stephens

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208

from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. Provides that, for tax years ending after December 31, 2005, the amount of the income tax credit for residential real property taxes is: (1) 5% of real property taxes paid by the taxpayer to a taxing body other than a school district during the tax year; plus (2) for taxable year 2006, 5% of the real property taxes paid by the taxpayer to a school district during the tax year and to be increased by 5% increments each year thereafter until the credit equals 100% of the real property taxes paid by the taxpayer to a school district during the tax year. Exempts the credit from the Act's sunset provisions. 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 Illinois Income Tax Act is amended by changing Section 208 and by adding Section 208.2 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 through tax years ending on or before December 31, 2005, 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.

(b) For tax years ending after December 31, 2005, every individual taxpayer who has paid taxes during the tax year on the principal residence of the taxpayer is entitled to a tax credit equal to:

(1) 5% of real property taxes paid by the taxpayer to a taxing body other than a school district during the tax year; plus

(2) For taxable year 2006, 5% of the real property taxes paid by the taxpayer to a school district during the tax year and, for each taxable year thereafter, this percentage of the real property taxes paid by the taxpayer to a school district must be increased by 5% per year (for example, to 10% for taxable year 2007 and to 15% for 2008) until the credit equals 100% of the real property taxes paid by the taxpayer to a school district during the tax year.

(c) 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.

(d) This Section is exempt from the provisions of Section 250.

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

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