Full Text of SB2350 94th General Assembly
SB2350ham001 94TH GENERAL ASSEMBLY
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Revenue Committee
Filed: 4/25/2006
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| AMENDMENT TO SENATE BILL 2350
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| AMENDMENT NO. ______. Amend Senate Bill 2350 by replacing | 3 |
| everything after the enacting clause with the following: | 4 |
| "Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 12-55, 15-176, and 20-5 as follows:
| 6 |
| (35 ILCS 200/12-55)
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| Sec. 12-55. Notice requirement if assessment is increased; | 8 |
| counties of
3,000,000 or more.
| 9 |
| (a) In counties with 3,000,000 or more inhabitants, a
| 10 |
| revision
by the county assessor, except where such revision is | 11 |
| made on complaint of the
owner, shall not increase an | 12 |
| assessment without notice to the person to whom
the most recent | 13 |
| tax bill was mailed and an opportunity to be heard before the
| 14 |
| assessment is verified.
When a notice is mailed by
the county | 15 |
| assessor to the address of a
mortgagee,
the mortgagee, within 7 | 16 |
| business days after the mortgagee receives
the notice, shall | 17 |
| forward a copy of the notice to each mortgagor of the
property
| 18 |
| referred to in the notice
at the last known address of each | 19 |
| mortgagor as shown on the records of the
mortgagee. There shall | 20 |
| be no liability for the failure of the mortgagee to
forward the | 21 |
| notice to each mortgagor.
The assessor may provide for
the | 22 |
| filing of complaints
and make revisions at times other than | 23 |
| those dates published under Section
14-35. When the county | 24 |
| assessor has completed the revision and correction and
entered |
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| the changes and revision in the assessment books, an affidavit | 2 |
| shall be
attached to the assessment books in the form required | 3 |
| by law, signed by the
county assessor.
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| (b) In counties with 3,000,000 or more inhabitants, for | 5 |
| parcels, other
than parcels in the class that includes the | 6 |
| majority of the single-family
residential parcels under a | 7 |
| county ordinance adopted in accordance with Section
4 of | 8 |
| Article IX of the Illinois Constitution, located in the | 9 |
| assessment
district for which the current assessment year is a | 10 |
| general assessment year,
within 30 days after sending the | 11 |
| required notices under this Section, the
county assessor shall | 12 |
| file with the board of appeals (until the first Monday in
| 13 |
| December 1998, and the board of review beginning the first | 14 |
| Monday in December
1998 and thereafter) a list of the parcels | 15 |
| for which the notices under this
Section were sent, showing the | 16 |
| following information for each such parcel: the
parcel index | 17 |
| number, the township in which the parcel is located, the class | 18 |
| for
the current year, the previous year's final total assessed | 19 |
| value, the total
assessed value proposed by the county | 20 |
| assessor, and the name of the person to
whom the notice | 21 |
| required under this Section was sent. The list shall be
| 22 |
| available for public inspection at the office of the board | 23 |
| during the regular
office hours of the board. The list shall be | 24 |
| retained by the board for at
least 10 years after the date it | 25 |
| is initially filed by the county assessor.
| 26 |
| (c) The provisions of subsection (b) of this Section shall | 27 |
| be applicable
beginning with the assessment for the 1997 tax | 28 |
| year.
| 29 |
| (d) On and after the effective date of this amendatory Act | 30 |
| of the 94th General Assembly and so long as any portion of the | 31 |
| county is subject to the provisions of Section 15-176 instead | 32 |
| of Section 15-175, the notice required under this Section must | 33 |
| include the following statement: | 34 |
| Beginning in 2003, the Cook County Board imposed a 7% |
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| cap on annual increases in property tax assessments for | 2 |
| certain owner-occupied residences. This assessment cap | 3 |
| takes the form of an expanded homestead exemption. It is | 4 |
| designed to reduce the burden of large property tax | 5 |
| increases caused by rapid appreciation in home prices. | 6 |
| The assessment cap shifts the property tax burden. Some | 7 |
| homeowners pay less, but all other taxpayers pay more. This | 8 |
| is because a reduction in the assessed value of some | 9 |
| properties causes the tax rate to increase for all | 10 |
| properties in order for the taxing district to collect the | 11 |
| same total amount in taxes. | 12 |
| The taxpayers who pay more are owners of rental | 13 |
| housing, commercial property, industrial property, and | 14 |
| vacant land. The higher rate also causes some senior | 15 |
| citizen homeowners to pay more because, though technically | 16 |
| eligible for the 7% assessment cap, they already qualify | 17 |
| for the more advantageous "senior freeze" on assessments. | 18 |
| Similarly, homeowners whose property value appreciates | 19 |
| less than 7% annually will also pay more in taxes than if | 20 |
| the assessment cap were not in effect. | 21 |
| In general, the assessment cap shifts the tax burden | 22 |
| from fast-growing to slow-growing residential areas and | 23 |
| from homeowners to businesses. The magnitude of the shift | 24 |
| will depend on how rapidly home prices appreciate over | 25 |
| time. | 26 |
| Property tax bills for homestead property will | 27 |
| indicate whether the property taxes are more, less, or the | 28 |
| same as a result of the county's election to implement an | 29 |
| assessment cap.
| 30 |
| (Source: P.A. 90-4, eff. 3-7-97; 91-751, eff. 6-2-00.)
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| (35 ILCS 200/15-176)
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| Sec. 15-176. Alternative general homestead exemption.
| 33 |
| (a) For the assessment years as determined under subsection |
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| (j), in any county that has elected, by an ordinance in | 2 |
| accordance with subsection (k), to be subject to the provisions | 3 |
| of this Section in lieu of the provisions of Section 15-175, | 4 |
| homestead property is
entitled to
an annual homestead exemption | 5 |
| equal to a reduction in the property's equalized
assessed
value | 6 |
| calculated as provided in this Section.
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| (b) As used in this Section:
| 8 |
| (1) "Assessor" means the supervisor of assessments or | 9 |
| the chief county assessment officer of each county.
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| (2) "Adjusted homestead value" means the lesser of the | 11 |
| following values:
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| (A) The property's base homestead value increased | 13 |
| by 7% for each
tax year after the base year through and | 14 |
| including the current tax year, or, if the property is | 15 |
| sold or ownership is otherwise transferred, the | 16 |
| property's base homestead value increased by 7% for | 17 |
| each tax year after the year of the sale or transfer | 18 |
| through and including the current tax year. The | 19 |
| increase by 7% each year is an increase by 7% over the | 20 |
| prior year.
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| (B) The property's equalized assessed value for | 22 |
| the current tax
year minus (i) $4,500 in Cook County or | 23 |
| $3,500 in all other counties in tax year 2003 or (ii) | 24 |
| $5,000 in all counties in tax year 2004 and thereafter.
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| (3) "Base homestead value".
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| (A) Except as provided in subdivision (b)(3)(B), | 27 |
| "base homestead value" means the equalized assessed | 28 |
| value of the property for the base year
prior to | 29 |
| exemptions, minus (i) $4,500 in Cook County or $3,500 | 30 |
| in all other counties in tax year 2003 or (ii) $5,000 | 31 |
| in all counties in tax year 2004 and thereafter, | 32 |
| provided that it was assessed for that
year as | 33 |
| residential property qualified for any of the | 34 |
| homestead exemptions
under Sections 15-170 through |
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| 15-175 of this Code, then in force, and
further | 2 |
| provided that the property's assessment was not based | 3 |
| on a reduced
assessed value resulting from a temporary | 4 |
| irregularity in the property for
that year. Except as | 5 |
| provided in subdivision (b)(3)(B), if the property did | 6 |
| not have a
residential
equalized assessed value for the | 7 |
| base year, then "base homestead value" means the base
| 8 |
| homestead value established by the assessor under | 9 |
| subsection (c).
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| (B) If the property is sold or ownership is | 11 |
| otherwise transferred, other than sales or transfers | 12 |
| between spouses or between a parent and a child, "base | 13 |
| homestead value" means the equalized assessed value of | 14 |
| the property at the time of the sale or transfer prior | 15 |
| to exemptions, minus (i) $4,500 in Cook County or | 16 |
| $3,500 in all other counties in tax year 2003 or (ii) | 17 |
| $5,000 in all counties in tax year 2004 and thereafter, | 18 |
| provided that it was assessed as residential property | 19 |
| qualified for any of the homestead exemptions
under | 20 |
| Sections 15-170 through 15-175 of this Code, then in | 21 |
| force, and
further provided that the property's | 22 |
| assessment was not based on a reduced
assessed value | 23 |
| resulting from a temporary irregularity in the | 24 |
| property.
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| (3.5) "Base year" means (i) tax year 2002 in Cook | 26 |
| County or (ii) tax year 2004 or 2005
2002 or 2003 in all | 27 |
| other counties in accordance with the designation made by | 28 |
| the county as provided in subsection (k).
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| (4) "Current tax year" means the tax year for which the | 30 |
| exemption under
this Section is being applied.
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| (5) "Equalized assessed value" means the property's | 32 |
| assessed value as
equalized by the Department.
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| (6) "Homestead" or "homestead property" means:
| 34 |
| (A) Residential property that as of January 1 of |
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| the tax year is
occupied by its owner or owners as his, | 2 |
| her, or their principal dwelling
place, or that is a | 3 |
| leasehold interest on which a single family residence | 4 |
| is
situated, that is occupied as a residence by a | 5 |
| person who has a legal or
equitable interest therein | 6 |
| evidenced by a written instrument, as an owner
or as a | 7 |
| lessee, and on which the person is liable for the | 8 |
| payment of
property taxes. Residential units in an | 9 |
| apartment building owned and
operated as a | 10 |
| cooperative, or as a life care facility, which are | 11 |
| occupied by
persons who hold a legal or equitable | 12 |
| interest in the cooperative apartment
building or life | 13 |
| care facility as owners or lessees, and who are liable | 14 |
| by
contract for the payment of property taxes, shall be | 15 |
| included within this
definition of homestead property.
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| (B) A homestead includes the dwelling place, | 17 |
| appurtenant
structures, and so much of the surrounding | 18 |
| land constituting the parcel on
which the dwelling | 19 |
| place is situated as is used for residential purposes. | 20 |
| If
the assessor has established a specific legal | 21 |
| description for a portion of
property constituting the | 22 |
| homestead, then the homestead shall be limited to
the | 23 |
| property within that description.
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| (7) "Life care facility" means a facility as defined in | 25 |
| Section 2 of the
Life
Care Facilities Act.
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| (c) If the property did not have a residential equalized | 27 |
| assessed value for
the base year as provided in subdivision | 28 |
| (b)(3)(A) of this Section, then the assessor
shall first | 29 |
| determine an initial value for the property by comparison with
| 30 |
| assessed values for the base year of other properties having | 31 |
| physical and
economic characteristics similar to those of the | 32 |
| subject property, so that the
initial value is uniform in | 33 |
| relation to assessed values of those other
properties for the | 34 |
| base year. The product of the initial value multiplied by
the |
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| equalized factor for the base year for homestead properties in | 2 |
| that county, less (i) $4,500 in Cook County or $3,500 in all | 3 |
| other counties in tax year 2003 or (ii) $5,000 in all counties | 4 |
| in tax year 2004 and thereafter, is the base homestead value.
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| For any tax year for which the assessor determines or | 6 |
| adjusts an initial
value and
hence a base homestead value under | 7 |
| this subsection (c), the initial value shall
be subject
to | 8 |
| review by the same procedures applicable to assessed values | 9 |
| established
under this
Code for that tax year.
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| (d) The base homestead value shall remain constant, except | 11 |
| that the assessor
may
revise it under the following | 12 |
| circumstances:
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| (1) If the equalized assessed value of a homestead | 14 |
| property for the current
tax year is less than the previous | 15 |
| base homestead value for that property, then the
current | 16 |
| equalized assessed value (provided it is not based on a | 17 |
| reduced assessed
value resulting from a temporary | 18 |
| irregularity in the property) shall become the
base | 19 |
| homestead value in subsequent tax years.
| 20 |
| (2) For any year in which new buildings, structures, or | 21 |
| other
improvements are constructed on the homestead | 22 |
| property that would increase its
assessed value, the | 23 |
| assessor shall adjust the base homestead value as provided | 24 |
| in
subsection (c) of this Section with due regard to the | 25 |
| value added by the new
improvements. | 26 |
| (3) If the property is sold or ownership is otherwise | 27 |
| transferred, the base homestead value of the property shall | 28 |
| be adjusted as provided in subdivision (b)(3)(B). This item | 29 |
| (3) does not apply to sales or transfers between spouses or | 30 |
| between a parent and a child.
| 31 |
| (e) The amount of the exemption under this Section is the | 32 |
| equalized assessed
value of the homestead property for the | 33 |
| current tax year, minus the adjusted homestead
value, with the | 34 |
| following exceptions: |
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| (1)
The exemption under this Section shall not exceed | 2 |
| $20,000 for any taxable year. | 3 |
| (2) In the case of homestead property that also | 4 |
| qualifies for
the exemption under Section 15-172, the | 5 |
| property is entitled to the exemption under
this Section, | 6 |
| limited to the amount of (i) $4,500 in Cook County or | 7 |
| $3,500 in all other counties in tax year 2003 or (ii) | 8 |
| $5,000 in all counties in tax year 2004 and thereafter.
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| (e-5) For each assessment year in which the alternative | 10 |
| general homestead exemption under this Section applies to any | 11 |
| portion of the county, the county clerk, with the assistance of | 12 |
| the assessor, must determine whether the taxes on each | 13 |
| homestead property are more, less, or the same as a result of | 14 |
| the county having elected to be subject to the provisions of | 15 |
| this Section rather than the general homestead exemption under | 16 |
| Section 15-175. The determination of whether the taxes are | 17 |
| more, less, or the same must be made without regard to any | 18 |
| other factor. In making the determination, the actual taxes on | 19 |
| the property shall be compared to what the taxes would have | 20 |
| been had the county not elected to be subject to the provisions | 21 |
| of this Section. In calculating what the taxes would have been | 22 |
| had the county not elected to be subject to the provisions of | 23 |
| this Section, the county clerk shall use the equalized assessed | 24 |
| value of the homestead property and the combined tax rate of | 25 |
| all taxing districts, both computed based on the assumption | 26 |
| that the general homestead exemption under Section 15-175 was | 27 |
| in effect throughout the county during all years when this | 28 |
| Section applied to any portion of the county. | 29 |
| The county clerk must provide the results of these | 30 |
| calculations for each homestead property to the official in the | 31 |
| county who is responsible for preparing and mailing the | 32 |
| property tax bills so that the official can include on or with | 33 |
| the bills the notifications required under subsection (b) of | 34 |
| Section 20-5. For the purpose of this subsection, "homestead |
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| property" has the definition set forth under Section 15-175.
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| (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
| 15 |
| misdemeanor.
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| (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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| (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 in | 22 |
| which the sale or transfer occurs, but (other than for sales or | 23 |
| transfers between spouses or between a parent and a child) | 24 |
| shall be calculated using the new base homestead value as | 25 |
| provided in subdivision (b)(3)(B).
The assessor may require the | 26 |
| new owner of the property to apply for the exemption in the
| 27 |
| following year.
| 28 |
| (i) The assessor may determine whether property qualifies | 29 |
| as a homestead under
this Section by application, visual | 30 |
| inspection, questionnaire, or other
reasonable methods.
Each | 31 |
| year, at the time the assessment books are certified to the | 32 |
| county clerk
by the board
of review, the assessor shall furnish | 33 |
| to the county clerk a list of the
properties qualified
for the | 34 |
| homestead exemption under this Section. The list shall note the |
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| base
homestead
value of each property to be used in the | 2 |
| calculation of the exemption for the
current tax
year.
| 3 |
| (j) In counties with 3,000,000 or more inhabitants, the | 4 |
| provisions of this Section apply as follows:
| 5 |
| (1) If the general assessment year for the property is | 6 |
| 2003, this Section
applies for assessment years 2003, 2004, | 7 |
| and 2005.
Thereafter, the provisions of Section 15-175 | 8 |
| apply.
| 9 |
| (2) If the general assessment year for the property is | 10 |
| 2004, this Section
applies for assessment years 2004, 2005, | 11 |
| and 2006.
Thereafter, the provisions of Section 15-175 | 12 |
| apply.
| 13 |
| (3) If the general assessment year for the property is | 14 |
| 2005, this Section
applies for assessment years 2005, 2006, | 15 |
| and 2007.
Thereafter, the provisions of Section 15-175 | 16 |
| apply. | 17 |
| (4) If the general assessment year for the property is | 18 |
| 2006 and only if the county elects, by ordinance, to extend | 19 |
| the application of this Section under subsection (k-5), | 20 |
| then this Section continues to apply for assessment years | 21 |
| 2006, 2007, and 2008. Thereafter, the provisions of Section | 22 |
| 15-175 apply. | 23 |
| (5) If the general assessment year for the property is | 24 |
| 2007 and only if the county elects, by ordinance, to extend | 25 |
| the application of this Section under subsection (k-5), | 26 |
| then this Section continues to apply for assessment years | 27 |
| 2007, 2008, and 2009. Thereafter, the provisions of Section | 28 |
| 15-175 apply. | 29 |
| (6) If the general assessment year for the property is | 30 |
| 2008 and only if the county elects, by ordinance, to extend | 31 |
| the application of this Section under subsection (k-5), | 32 |
| then this Section continues to apply for assessment years | 33 |
| 2008, 2009, and 2010. Thereafter, the provisions of Section | 34 |
| 15-175 apply.
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| In counties with less than 3,000,000 inhabitants, this | 2 |
| Section applies for assessment years (i) 2005, 2006, and 2007 | 3 |
| if tax year 2004
2003, 2004, and 2005 if 2002 is the designated | 4 |
| base year or (ii) 2006, 2007, and 2008 if tax year 2005
2004, | 5 |
| 2005, and 2006 if 2003 is the designated base year. Thereafter, | 6 |
| the provisions of Section 15-175 apply.
| 7 |
| (k) To be subject to the provisions of this Section in lieu | 8 |
| of Section 15-175, a county must adopt an ordinance to subject | 9 |
| itself to the provisions of this Section within (i) 6 months | 10 |
| after the effective date of this amendatory Act of the
93rd | 11 |
| General Assembly for Cook County, except as provided in | 12 |
| subsection (k-5), or (ii) within 6 months after the effective | 13 |
| date of this amendatory Act of the 94th General Assembly for | 14 |
| all other counties . In a county other than Cook County, the | 15 |
| ordinance must designate either tax year 2004
2002
or tax year | 16 |
| 2005
2003
as the base year.
| 17 |
| (k-5) Cook County may elect, by ordinance, to extend the | 18 |
| application of this Section for the assessment years set forth | 19 |
| under items (4), (5), and (6) of subsection (j). The ordinance | 20 |
| must be adopted within 6 months after the effective date of | 21 |
| this amendatory Act of the 94th General Assembly.
| 22 |
| (l) Notwithstanding Sections 6 and 8 of the State Mandates | 23 |
| Act, no
reimbursement
by the State is required for the | 24 |
| implementation of any mandate created by this
Section.
| 25 |
| (Source: P.A. 93-715, eff. 7-12-04.)
| 26 |
| (35 ILCS 200/20-5)
| 27 |
| Sec. 20-5. Mailing tax bill to owner.
| 28 |
| (a) Every township collector, and every
county collector in | 29 |
| cases where there is no township collector, upon receiving
the | 30 |
| tax book or books, shall prepare tax bills showing each | 31 |
| installment of
property taxes assessed, which shall be filled | 32 |
| out in accordance with Section
20-40. A copy of the bill shall | 33 |
| be mailed by the collector, at least 30 days
prior to the date |
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| upon which unpaid taxes become delinquent, to the owner of
the | 2 |
| property taxed or to the person in whose name the property is | 3 |
| taxed.
| 4 |
| (b) In each county in which the county clerk is required to | 5 |
| make the determinations under subsection (e-5) of Section | 6 |
| 15-176, the the tax bill for each homestead property must | 7 |
| include, on or with the bill, a notification to the taxpayer as | 8 |
| to whether the taxes on the property are more, less, or the | 9 |
| same as a result of the county's election to be subject to the | 10 |
| alternative general homestead exemption under Section 15-176 | 11 |
| rather than the general homestead exemption under Section | 12 |
| 15-175. The notification must be based on the determinations | 13 |
| made under subsection (e-5) of Section 15-176. The notification | 14 |
| must be clearly visible and must be in substantially the | 15 |
| following form: | 16 |
| "The taxes on this property are (more/less/the same) as | 17 |
| a result of the county's election to be subject to the | 18 |
| alternative general homestead exemption under Section | 19 |
| 15-176 of the Property Tax Code, sometimes known as the "7% | 20 |
| solution" or "assessment cap"."
| 21 |
| For the purpose of this subsection, "homestead property" | 22 |
| has the definition set forth under Section 15-175. | 23 |
| (c) On and after the effective date of this amendatory Act | 24 |
| of the 94th General Assembly and so long as any portion of the | 25 |
| county is subject to the provisions of Section 15-176 instead | 26 |
| of Section 15-175, the following statement must be included | 27 |
| with each tax bill: | 28 |
| Beginning in 2003, the Cook County Board imposed a 7% | 29 |
| cap on annual increases in property tax assessments for | 30 |
| certain owner-occupied residences. This assessment cap | 31 |
| takes the form of an expanded homestead exemption. It is | 32 |
| designed to reduce the burden of large property tax | 33 |
| increases caused by rapid appreciation in home prices. | 34 |
| The assessment cap shifts the property tax burden. Some |
|
|
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| 1 |
| homeowners pay less, but all other taxpayers pay more. This | 2 |
| is because a reduction in the assessed value of some | 3 |
| properties causes the tax rate to increase for all | 4 |
| properties in order for the taxing district to collect the | 5 |
| same total amount in taxes. | 6 |
| The taxpayers who pay more are owners of rental | 7 |
| housing, commercial property, industrial property, and | 8 |
| vacant land. The higher rate also causes some senior | 9 |
| citizen homeowners to pay more because, though technically | 10 |
| eligible for the 7% assessment cap, they already qualify | 11 |
| for the more advantageous "senior freeze" on assessments. | 12 |
| Similarly, homeowners whose property value appreciates | 13 |
| less than 7% annually will also pay more in taxes than if | 14 |
| the assessment cap were not in effect. | 15 |
| In general, the assessment cap shifts the tax burden | 16 |
| from fast-growing to slow-growing residential areas and | 17 |
| from homeowners to businesses. The magnitude of the shift | 18 |
| will depend on how rapidly home prices appreciate over | 19 |
| time. | 20 |
| Property tax bills for homestead property will | 21 |
| indicate whether the property taxes are more, less, or the | 22 |
| same as a result of the county's election to implement an | 23 |
| assessment cap.
| 24 |
| (Source: P.A. 86-957; 87-818; 88-455.)
| 25 |
| Section 90. The State Mandates Act is amended by adding | 26 |
| Section 8.30 as follows: | 27 |
| (30 ILCS 805/8.30 new) | 28 |
| Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 | 29 |
| of this Act, no reimbursement by the State is required for the | 30 |
| implementation of any mandate created by this amendatory Act of | 31 |
| the 94th General Assembly.
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09400SB2350ham001 |
- 14 - |
LRB094 17384 BDD 58523 a |
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| 1 |
| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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