Full Text of SB0455 96th General Assembly
SB0455sam001 96TH GENERAL ASSEMBLY
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Sen. Don Harmon
Filed: 3/15/2010
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| AMENDMENT TO SENATE BILL 455
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| AMENDMENT NO. ______. Amend Senate Bill 455 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Property Tax Code is amended by adding | 5 |
| Section 15-176.5 as follows: | 6 |
| (35 ILCS 200/15-176.5 new) | 7 |
| Sec. 15-176.5. Alternative homestead exemption. | 8 |
| (a) For the assessment years as determined under this | 9 |
| Section, in any county that has elected, by an ordinance in | 10 |
| accordance with subsection (h), to be subject to the provisions | 11 |
| of this Section in lieu of the provisions of Section 15-175, | 12 |
| homestead property is entitled to a reduction in the property's | 13 |
| equalized assessed value calculated as provided in this | 14 |
| Section. | 15 |
| (b) As used in this Section: | 16 |
| (1) "Additional homeowner exemption" means the |
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| difference between (i) the equalized assessed value for the | 2 |
| current year minus the base year homeowner exemption value | 3 |
| and (ii) the adjusted homestead value. | 4 |
| (2) "Adjusted homestead value". In counties with | 5 |
| 3,000,000 or more inhabitants, "adjusted homestead value" | 6 |
| means: | 7 |
| (A) In the general reassessment year, the lesser of | 8 |
| the following values: | 9 |
| (i) the property's base homestead value | 10 |
| multiplied by the tax code EAV change multiplied by | 11 |
| 1.05; or | 12 |
| (ii) the property's equalized assessed value | 13 |
| for the current tax year minus the base year | 14 |
| homeowner exemption value. | 15 |
| (B) In the first year after general reassessment | 16 |
| year, the lesser of the following values: | 17 |
| (i) the property's base homestead value | 18 |
| multiplied by the tax code EAV change multiplied by | 19 |
| 1.075; or | 20 |
| (ii) the property's equalized assessed value | 21 |
| for the current tax year minus the base year | 22 |
| homeowner exemption value. | 23 |
| (C) In the second year after general reassessment | 24 |
| year, the lesser of the following values: | 25 |
| (i) the property's base homestead value | 26 |
| multiplied by the tax code EAV change multiplied by |
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| 1.10; or | 2 |
| (ii) the property's equalized assessed value | 3 |
| for the current tax year minus the base year | 4 |
| homeowner exemption value. | 5 |
| In counties with less than 3,000,000 inhabitants, | 6 |
| "adjusted homestead value" means: | 7 |
| (A) In the general reassessment year, the lesser of | 8 |
| the following values: | 9 |
| (i) the property's base homestead value | 10 |
| multiplied by the tax code EAV change multiplied by | 11 |
| 1.05; or | 12 |
| (ii) the property's equalized assessed value | 13 |
| for the current tax year minus the base year | 14 |
| homeowner exemption value. | 15 |
| (B) In the first year after general reassessment | 16 |
| year, the lesser of the following values: | 17 |
| (i) the property's base homestead value | 18 |
| multiplied by the tax code EAV change multiplied by | 19 |
| 1.075; or | 20 |
| (ii) the property's equalized assessed value | 21 |
| for the current tax year minus the base year | 22 |
| homeowner exemption value. | 23 |
| (C) In the second year after general reassessment | 24 |
| year, the lesser of the following values: | 25 |
| (i) the property's base homestead value | 26 |
| multiplied by the tax code EAV change multiplied by |
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| 1.10; or | 2 |
| (ii) the property's equalized assessed value | 3 |
| for the current tax year minus the base year | 4 |
| homeowner exemption value. | 5 |
| (D) In the third year after general reassessment | 6 |
| year, the lesser of the following values: | 7 |
| (i) the property's base homestead value | 8 |
| multiplied by the tax code EAV change multiplied by | 9 |
| 1.125; or | 10 |
| (ii) the property's equalized assessed value | 11 |
| for the current tax year minus the base year | 12 |
| homeowner exemption value. | 13 |
| (3) "Base year". In counties with 3,000,000 or more | 14 |
| inhabitants, "base year" means: | 15 |
| (A) Tax year 2008 if the general assessment year | 16 |
| for the property is 2009. In subsequent general | 17 |
| reassessment years, the "base year" shall be the year | 18 |
| prior to the general reassessment year. | 19 |
| (B) Tax year 2009 if the general assessment year | 20 |
| for the property is 2010. In subsequent general | 21 |
| reassessment years, the "base year" shall be the year | 22 |
| prior to the general reassessment year. | 23 |
| (C) Tax year 2010 if the general assessment year | 24 |
| for the property is 2011. In subsequent general | 25 |
| reassessment years, the "base year" shall be the year | 26 |
| prior to the general reassessment year. |
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| In counties with less than 3,000,000 inhabitants, | 2 |
| "base year" means the year prior to the general assessment | 3 |
| year. | 4 |
| (4) "Base year composite tax rate" means the combined | 5 |
| tax rate for all taxing districts serving the property's | 6 |
| tax code in the base year. If in the current year the tax | 7 |
| rate for a particular district within the tax code is 0%, | 8 |
| the base year composite tax rate shall be reduced by the | 9 |
| base year taxing district rate for that district. | 10 |
| (5) "Base homestead value" means the assessed value of | 11 |
| the property for the base year as equalized by the | 12 |
| Department, less the base year homeowner exemption value, | 13 |
| provided that the property was assessed in the base year as | 14 |
| residential property qualified for any of the homestead | 15 |
| exemptions under Sections 15-170 through 15-175 of this | 16 |
| Code, then in force, and further provided that the | 17 |
| property's assessment was not based on a reduced assessed | 18 |
| value resulting from a temporary irregularity in the | 19 |
| property for that year. | 20 |
| (6) "Base year homeowner exemption value". In counties | 21 |
| with more than 3,000,000 inhabitants, "base year homeowner | 22 |
| exemption value" means the sum of the value of the | 23 |
| homeowner exemption in effect in the base year, plus the | 24 |
| value of any additional homeowner exemption in effect in | 25 |
| the base year, with the following limitations: | 26 |
| (A) In the first year after the initial base year, |
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| after the additional homeowner exemption value for the | 2 |
| current tax year is calculated, the base year homeowner | 3 |
| exemption value, if greater than $18,000, shall be | 4 |
| reduced to $18,000. | 5 |
| (B) In the second year after the initial base year, | 6 |
| after the additional homeowner exemption value for the | 7 |
| current tax year is calculated, the base year homeowner | 8 |
| exemption value, if greater than $16,000, shall be | 9 |
| reduced to $16,000. | 10 |
| (C) In the third year after the initial base year, | 11 |
| after the additional homeowner exemption value for the | 12 |
| current tax year is calculated, the base year homeowner | 13 |
| exemption value, if greater than $14,000, shall be | 14 |
| reduced to $14,000. | 15 |
| (D) In the fourth year after the initial base year, | 16 |
| after the additional homeowner exemption value for the | 17 |
| current tax year is calculated, the base year homeowner | 18 |
| exemption value, if greater than $12,000, shall be | 19 |
| reduced to $12,000 plus the value of any additional | 20 |
| homeowner exemption value in effect in the second base | 21 |
| year. | 22 |
| (E) In the fifth year after the initial base year, | 23 |
| after the additional homeowner exemption value for the | 24 |
| current tax year is calculated, the base year homeowner | 25 |
| exemption value, if greater than $10,000, shall be | 26 |
| reduced to $10,000 plus the value of any additional |
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| homeowner exemption value in effect in the second base | 2 |
| year. | 3 |
| (F) In the sixth year after the initial base year, | 4 |
| after the additional homeowner exemption value for the | 5 |
| current tax year is calculated, the base year homeowner | 6 |
| exemption value, if greater than $8,000, shall be | 7 |
| reduced to $8,000 plus the value of any additional | 8 |
| homeowner exemption value in effect in the second base | 9 |
| year. | 10 |
| (G) In the seventh year after the initial base | 11 |
| year, after the additional homeowner exemption value | 12 |
| for the current tax year is calculated, the base year | 13 |
| homeowner exemption value, if between $6,000 and | 14 |
| $8,000, shall be reduced to $6,000 plus the value of | 15 |
| any additional homeowner exemption value in effect in | 16 |
| the third base year. | 17 |
| In counties with less than 3,000,000 inhabitants, | 18 |
| "base year homeowner exemption value" means the value of | 19 |
| the homeowner exemption in the base year plus the value of | 20 |
| any additional homeowner exemption in effect in the base | 21 |
| year. | 22 |
| (7) "Current tax year" means the tax year for which the | 23 |
| exemption under this Section is being applied. | 24 |
| (8) "Equalized assessed value" means the property's | 25 |
| assessed value as equalized by the Department. | 26 |
| (9) "Homestead" or "homestead property" means: |
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| (A) residential property that as of January 1 of | 2 |
| the current tax year is occupied by its owner or owners | 3 |
| as his, her, or their principal dwelling place, or that | 4 |
| is a leasehold interest on which a single family | 5 |
| residence is situated, that is occupied as a residence | 6 |
| by a person who has a legal or equitable interest | 7 |
| therein evidenced by a written instrument, as an owner | 8 |
| or as a lessee, and on which the person is liable for | 9 |
| the payment of property taxes. Residential units in an | 10 |
| apartment building owned and operated as a | 11 |
| cooperative, or as a life care facility, which are | 12 |
| occupied by persons who hold a legal or equitable | 13 |
| interest in the cooperative apartment building or life | 14 |
| care facility as owners or lessees, and who are liable | 15 |
| by contract for the payment of property taxes, shall be | 16 |
| included within this definition of homestead property; | 17 |
| and | 18 |
| (B) the dwelling place, appurtenant structures, | 19 |
| and so much of the surrounding land constituting the | 20 |
| parcel on which the dwelling place is situated as is | 21 |
| used for residential purposes; if the assessor has | 22 |
| established a specific legal description for a portion | 23 |
| of property constituting the homestead, then the | 24 |
| homestead shall be limited to the property within that | 25 |
| description. | 26 |
| (10) "Initial base year". In counties with 3,000,000 or |
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| more inhabitants, the "initial base year" means: | 2 |
| (A) Tax year 2008 if the general assessment year | 3 |
| for the property is 2009. | 4 |
| (B) Tax year 2009 if the general assessment year | 5 |
| for the property is 2010. | 6 |
| (C) Tax year 2010 if the general assessment year | 7 |
| for the property is 2011. | 8 |
| In all other counties, the initial base year shall be | 9 |
| 2009, or 2010, as determined pursuant to subsection (h). | 10 |
| (11) "Life care facility" means a facility as defined | 11 |
| in Section 2 of the Life Care Facilities Act. | 12 |
| (12) "Second base year". In counties with 3,000,000 or | 13 |
| more inhabitants, the "second base year" means: | 14 |
| (A) Tax year 2011 if the general assessment year | 15 |
| for the property is 2012. | 16 |
| (B) Tax year 2012 if the general assessment year | 17 |
| for the property is 2013. | 18 |
| (C) Tax year 2013 if the general assessment year | 19 |
| for the property is 2014. | 20 |
| (13) "Tax code" means a geographical area in which an | 21 |
| identical set of taxing districts have jurisdiction. | 22 |
| (14) "Tax code EAV change" means a percentage | 23 |
| calculated by dividing the base year composite tax rate by | 24 |
| the sum of the taxing district EAV change for all taxing | 25 |
| districts in the property's tax code. | 26 |
| (15) "Taxing district EAV" means the combined assessed |
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| value of all properties in the taxing district, as | 2 |
| equalized by the Department, less the value of all | 3 |
| exemptions in the taxing district less the value of all TIF | 4 |
| increment in the district. | 5 |
| (16) "Taxing district EAV change" means a number | 6 |
| calculated for a taxing district by first dividing the base | 7 |
| year taxing district EAV by the tentative current year | 8 |
| taxing district EAV, and multiplying the result by the | 9 |
| taxing district rate for the base year. | 10 |
| (17) "Taxing district rate" means the tax rate for the | 11 |
| taxing district. | 12 |
| (18) "Tentative current year taxing district EAV" | 13 |
| means the taxing district EAV for the current year without | 14 |
| taking account of the aggregate value of the additional | 15 |
| homeowner exemptions in the taxing district. | 16 |
| (19) "Third base year" In counties with 3,000,000 or | 17 |
| more inhabitants, the "third base year" means: | 18 |
| (A) Tax year 2014 if the general assessment year | 19 |
| for the property is 2015. | 20 |
| (B) Tax year 2015 if the general assessment year | 21 |
| for the property is 2016. | 22 |
| (C) Tax year 2016 if the general assessment year | 23 |
| for the property is 2017. | 24 |
| (c) For any year in which the assessed value of a homestead | 25 |
| increases because of the construction of new buildings, | 26 |
| structures, or other significant improvements, and for any year |
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| in which the assessed value of a homestead increases because of | 2 |
| the expiration of the home improvement exemption, the | 3 |
| additional homeowner exemption shall be reduced to zero, and | 4 |
| shall remain at that level until the next general reassessment. | 5 |
| (d) The exemption granted under this Section is the sum of | 6 |
| the base year homeowner exemption plus the additional homeowner | 7 |
| exemption, with the following exceptions: | 8 |
| (1) The additional homeowner exemption cannot exceed | 9 |
| the difference between (i) the property's base homestead | 10 |
| value multiplied by the tax code EAV change multiplied by | 11 |
| 1.40 and (ii) the property's adjusted homestead value. | 12 |
| (2) In the case of homestead property that also | 13 |
| qualifies for the exemption under Section 15-172 or Section | 14 |
| 15-177, the property is entitled to the exemption under | 15 |
| this Section, limited to $6,000 in all counties. | 16 |
| (e) In the case of an apartment building owned and operated | 17 |
| as a cooperative, or as a life care facility, that contains | 18 |
| residential units that qualify as homestead property under this | 19 |
| Section, the maximum cumulative exemption amount attributed to | 20 |
| the entire building or facility shall not exceed the sum of the | 21 |
| exemptions calculated for each qualified residential unit. The | 22 |
| cooperative association, management firm, or other person or | 23 |
| entity that manages or controls the cooperative apartment | 24 |
| building or life care facility shall credit the exemption | 25 |
| attributable to each residential unit only to the apportioned | 26 |
| tax liability of the owner or other person responsible for |
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| payment of taxes as to that unit. Any person who willfully | 2 |
| refuses to so credit the exemption is guilty of a Class B | 3 |
| misdemeanor. | 4 |
| (f) When married persons maintain separate residences, the | 5 |
| exemption provided under this Section shall be claimed by only | 6 |
| one such person and for only one residence. | 7 |
| (g) The assessor may determine whether property qualifies | 8 |
| as a homestead under this Section by application, visual | 9 |
| inspection, questionnaire, or other reasonable methods. Each | 10 |
| year, at the time the assessment books are certified to the | 11 |
| county clerk by the board of review, the assessor shall furnish | 12 |
| to the county clerk a list of the properties qualified for the | 13 |
| homestead exemption under this Section. The list shall note the | 14 |
| base homestead value of each property to be used in the | 15 |
| calculation of the exemption for the current tax year. | 16 |
| (h) To be subject to the provisions of this Section in lieu | 17 |
| of Section 15-175, a county must adopt an ordinance to subject | 18 |
| itself to the provisions of this Section within 6 months after | 19 |
| the effective date of this amendatory Act of the 96th General | 20 |
| Assembly. In a county other than Cook County, the ordinance | 21 |
| must designate either tax year 2009 or tax year 2010 as the | 22 |
| initial base year. | 23 |
| (i) Notwithstanding Sections 6 and 8 of the State Mandates | 24 |
| Act, no reimbursement by the State is required for the | 25 |
| implementation of any mandate created by this Section.
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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