Full Text of HB3554 97th General Assembly
HB3554 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3554 Introduced 2/24/2011, by Rep. David Harris SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Increases the maximum reduction under the General Homestead Exemption from $6,000 to $7,000 for taxable year 2011 and indexes the reduction to the Consumer Price Index. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-175 as follows:
| 6 | | (35 ILCS 200/15-175)
| 7 | | Sec. 15-175. General homestead exemption. Except as | 8 | | provided in Sections 15-176 and 15-177, homestead
property is
| 9 | | entitled to an annual homestead exemption limited, except as | 10 | | described here
with relation to cooperatives, to a reduction in | 11 | | the equalized assessed value
of homestead property equal to the | 12 | | increase in equalized assessed value for the
current assessment | 13 | | year above the equalized assessed value of the property for
| 14 | | 1977, up to the maximum reduction set forth below. If however, | 15 | | the 1977
equalized assessed value upon which taxes were paid is | 16 | | subsequently determined
by local assessing officials, the | 17 | | Property Tax Appeal Board, or a court to have
been excessive, | 18 | | the equalized assessed value which should have been placed on
| 19 | | the property for 1977 shall be used to determine the amount of | 20 | | the exemption.
| 21 | | Except as provided in Section 15-176, the maximum reduction | 22 | | before taxable year 2004 shall be
$4,500 in counties with | 23 | | 3,000,000 or more
inhabitants
and $3,500 in all other counties. |
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| 1 | | Except as provided in Sections 15-176 and 15-177, for taxable | 2 | | years 2004 through 2007, the maximum reduction shall be $5,000, | 3 | | for taxable year 2008, the maximum reduction is $5,500, and, | 4 | | for taxable years 2009 and 2010 and thereafter , the maximum | 5 | | reduction is $6,000 in all counties , for taxable year 2011, the | 6 | | maximum reduction is $7,000 in all counties, and for taxable | 7 | | years 2012 and thereafter, the maximum reduction is the maximum | 8 | | reduction for the prior taxable year increased by the annual | 9 | | rate of increase, for the previous
calendar year, of the | 10 | | Consumer Price Index for All Urban
Consumers for all items, | 11 | | published by the United States
Bureau of Labor Statistics . If a | 12 | | county has elected to subject itself to the provisions of | 13 | | Section 15-176 as provided in subsection (k) of that Section, | 14 | | then, for the first taxable year only after the provisions of | 15 | | Section 15-176 no longer apply, for owners who, for the taxable | 16 | | year, have not been granted a senior citizens assessment freeze | 17 | | homestead exemption under Section 15-172 or a long-time | 18 | | occupant homestead exemption under Section 15-177, there shall | 19 | | be an additional exemption of $5,000 for owners with a | 20 | | household income of $30,000 or less.
| 21 | | In counties with fewer than 3,000,000 inhabitants, if, | 22 | | based on the most
recent assessment, the equalized assessed | 23 | | value of
the homestead property for the current assessment year | 24 | | is greater than the
equalized assessed value of the property | 25 | | for 1977, the owner of the property
shall automatically receive | 26 | | the exemption granted under this Section in an
amount equal to |
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| 1 | | the increase over the 1977 assessment up to the maximum
| 2 | | reduction set forth in this Section.
| 3 | | If in any assessment year beginning with the 2000 | 4 | | assessment year,
homestead property has a pro-rata valuation | 5 | | under
Section 9-180 resulting in an increase in the assessed | 6 | | valuation, a reduction
in equalized assessed valuation equal to | 7 | | the increase in equalized assessed
value of the property for | 8 | | the year of the pro-rata valuation above the
equalized assessed | 9 | | value of the property for 1977 shall be applied to the
property | 10 | | on a proportionate basis for the period the property qualified | 11 | | as
homestead property during the assessment year. The maximum | 12 | | proportionate
homestead exemption shall not exceed the maximum | 13 | | homestead exemption allowed in
the county under this Section | 14 | | divided by 365 and multiplied by the number of
days the | 15 | | property qualified as homestead property.
| 16 | | "Homestead property" under this Section includes | 17 | | residential property that is
occupied by its owner or owners as | 18 | | his or their principal dwelling place, or
that is a leasehold | 19 | | interest on which a single family residence is situated,
which | 20 | | is occupied as a residence by a person who has an ownership | 21 | | interest
therein, legal or equitable or as a lessee, and on | 22 | | which the person is
liable for the payment of property taxes. | 23 | | For land improved with
an apartment building owned and operated | 24 | | as a cooperative or a building which
is a life care facility as | 25 | | defined in Section 15-170 and considered to
be a cooperative | 26 | | under Section 15-170, the maximum reduction from the equalized
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| 1 | | assessed value shall be limited to the increase in the value | 2 | | above the
equalized assessed value of the property for 1977, up | 3 | | to
the maximum reduction set forth above, multiplied by the | 4 | | number of apartments
or units occupied by a person or persons | 5 | | who is liable, by contract with the
owner or owners of record, | 6 | | for paying property taxes on the property and is an
owner of | 7 | | record of a legal or equitable interest in the cooperative
| 8 | | apartment building, other than a leasehold interest. For | 9 | | purposes of this
Section, the term "life care facility" has the | 10 | | meaning stated in Section
15-170.
| 11 | | "Household", as used in this Section,
means the owner, the | 12 | | spouse of the owner, and all persons using
the
residence of the | 13 | | owner as their principal place of residence.
| 14 | | "Household income", as used in this Section,
means the | 15 | | combined income of the members of a household
for the calendar | 16 | | year preceding the taxable year.
| 17 | | "Income", as used in this Section,
has the same meaning as | 18 | | provided in Section 3.07 of the Senior
Citizens
and Disabled | 19 | | Persons Property Tax Relief and Pharmaceutical Assistance Act,
| 20 | | except that
"income" does not include veteran's benefits.
| 21 | | In a cooperative where a homestead exemption has been | 22 | | granted, the
cooperative association or its management firm | 23 | | shall credit the savings
resulting from that exemption only to | 24 | | the apportioned tax liability of the
owner who qualified for | 25 | | the exemption. Any person who willfully refuses to so
credit | 26 | | the savings shall be guilty of a Class B misdemeanor.
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| 1 | | Where married persons maintain and reside in separate | 2 | | residences qualifying
as homestead property, each residence | 3 | | shall receive 50% of the total reduction
in equalized assessed | 4 | | valuation provided by this Section.
| 5 | | In all counties, the assessor
or chief county assessment | 6 | | officer may determine the
eligibility of residential property | 7 | | to receive the homestead exemption and the amount of the | 8 | | exemption by
application, visual inspection, questionnaire or | 9 | | other reasonable methods. The
determination shall be made in | 10 | | accordance with guidelines established by the
Department, | 11 | | provided that the taxpayer applying for an additional general | 12 | | exemption under this Section shall submit to the chief county | 13 | | assessment officer an application with an affidavit of the | 14 | | applicant's total household income, age, marital status (and, | 15 | | if married, the name and address of the applicant's spouse, if | 16 | | known), and principal dwelling place of members of the | 17 | | household on January 1 of the taxable year. The Department | 18 | | shall issue guidelines establishing a method for verifying the | 19 | | accuracy of the affidavits filed by applicants under this | 20 | | paragraph. The applications shall be clearly marked as | 21 | | applications for the Additional General Homestead Exemption.
| 22 | | In counties with fewer than 3,000,000 inhabitants, in the | 23 | | event of a sale
of
homestead property the homestead exemption | 24 | | shall remain in effect for the
remainder of the assessment year | 25 | | of the sale. The assessor or chief county
assessment officer | 26 | | may require the new
owner of the property to apply for the |
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| 1 | | homestead exemption for the following
assessment year.
| 2 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 3 | | no reimbursement by the State is required for the | 4 | | implementation of any mandate created by this Section.
| 5 | | (Source: P.A. 95-644, eff. 10-12-07.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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