HB4741 96TH GENERAL ASSEMBLY

LRB096 16402 HLH 31668 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4741

Introduced 1/11/2010, by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208

from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. In a Section granting a tax credit for residential real property taxes, provides that, for tax years beginning on or after January 1, 2011, if the taxpayer qualifies for the disabled persons' homestead exemption under the Property Tax Code, then the taxpayer is entitled to a credit equal to 10% (instead of 5%) of real property taxes paid by the taxpayer during the taxable year on the qualifying property. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Exempts the credit from the Act's automatic sunset provision. Effective immediately.

FISCAL 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 as follows:

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

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

(a) Except as provided in subsection (b) of this Section, beginning 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) For tax years beginning on or after January 1, 2011, if the taxpayer qualifies for the disabled persons' homestead exemption under Section 15-168 of the Property Tax Code during the taxable year, then the taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act equal to 10% of real property taxes paid by the taxpayer during the taxable year on the qualifying property. In the case of multi-unit or multi-use structures and farm dwellings, the credit shall be taken as a percentage of that portion of the total taxes that is attributable to the taxpayer's principal residence. A credit awarded under this subsection may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

(c) 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.