Bill Text: IL HB3602 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. In a Section concerning the alternative general homestead exemption, provides that the maximum amount of the exemption is $40,000 for taxable year 2011 and thereafter. Provides that the alternative general homestead exemption applies on a permanent basis. In a Section concerning the long-time occupant homestead exemption, expands the definition of "adjusted homestead value". Beginning with taxable year 2011 and thereafter, "adjusted homestead value" means a property's base homestead value increased by 7% for each taxable year after the base year through and including the current tax year for qualified taxpayers with a household income of $100,000 or less. Makes other changes. Effective immediately.

Sponsorship: Bipartisan Bill

Status: (Failed) 2013-01-08 - Session Sine Die [HB3602 Detail]

Download: Illinois-2011-HB3602-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3602 Introduced 2/24/2011, by Rep. Harry Osterman SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-176
35 ILCS 200/15-177
Amends the Property Tax Code. In a Section concerning the alternative general homestead exemption, provides that the maximum amount of the exemption is $40,000 for taxable year 2011 and thereafter. Provides that the alternative general homestead exemption applies on a permanent basis. In a Section concerning the long-time occupant homestead exemption, expands the definition of "adjusted homestead value". Beginning with taxable year 2011 and thereafter, "adjusted homestead value" means a property's base homestead value increased by 7% for each taxable year after the base year through and including the current tax year for qualified taxpayers with a household income of $100,000 or less. Makes other changes. 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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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-176 and 15-177 as follows:
(35 ILCS 200/15-176)
Sec. 15-176. Alternative general homestead exemption.
(a) For the assessment years as determined under subsection
(j), in any county that has elected, by an ordinance in
accordance with subsection (k), to be subject to the provisions
of this Section in lieu of the provisions of Section 15-175,
homestead property is entitled to an annual homestead exemption
equal to a reduction in the property's equalized assessed value
calculated as provided in this Section.
(b) As used in this Section:
(1) "Assessor" means the supervisor of assessments or
the chief county assessment officer of each county.
(2) "Adjusted homestead value" means the lesser of the
following values:
(A) The property's base homestead value increased
by 7% for each tax year after the base year through and
including the current tax year, or, if the property is
sold or ownership is otherwise transferred, the

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property's base homestead value increased by 7% for
each tax year after the year of the sale or transfer
through and including the current tax year. The
increase by 7% each year is an increase by 7% over the
prior year.
(B) The property's equalized assessed value for
the current tax year minus: (i) $4,500 in Cook County
or $3,500 in all other counties in tax year 2003; (ii)
$5,000 in all counties in tax years 2004 and 2005; and
(iii) the lesser of the amount of the general homestead
exemption under Section 15-175 or an amount equal to
the increase in the equalized assessed value for the
current tax year above the equalized assessed value for
1977 in tax year 2006 and thereafter.
(3) "Base homestead value".
(A) Except as provided in subdivision (b)(3)(A-5)
or (b)(3)(B), "base homestead value" means the
equalized assessed value of the property for the base
year prior to exemptions, minus (i) $4,500 in Cook
County or $3,500 in all other counties in tax year
2003, (ii) $5,000 in all counties in tax years 2004 and
2005, or (iii) the lesser of the amount of the general
homestead exemption under Section 15-175 or an amount
equal to the increase in the equalized assessed value
for the current tax year above the equalized assessed
value for 1977 in tax year 2006 and thereafter,

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provided that it was assessed for that year as
residential property qualified for any of the
homestead exemptions under Sections 15-170 through
15-175 of this Code, then in force, and further
provided that the property's assessment was not based
on a reduced assessed value resulting from a temporary
irregularity in the property for that year. Except as
provided in subdivision (b)(3)(B), if the property did
not have a residential equalized assessed value for the
base year, then "base homestead value" means the base
homestead value established by the assessor under
subsection (c).
(A-5) On or before September 1, 2007, in Cook
County, the base homestead value, as set forth under
subdivision (b)(3)(A) and except as provided under
subdivision (b) (3) (B), must be recalculated as the
equalized assessed value of the property for the base
year, prior to exemptions, minus:
(1) if the general assessment year for the
property was 2003, the lesser of (i) $4,500 or (ii)
the amount equal to the increase in equalized
assessed value for the 2002 tax year above the
equalized assessed value for 1977;
(2) if the general assessment year for the
property was 2004, the lesser of (i) $4,500 or (ii)
the amount equal to the increase in equalized

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assessed value for the 2003 tax year above the
equalized assessed value for 1977;
(3) if the general assessment year for the
property was 2005, the lesser of (i) $5,000 or (ii)
the amount equal to the increase in equalized
assessed value for the 2004 tax year above the
equalized assessed value for 1977.
(B) If the property is sold or ownership is
otherwise transferred, other than sales or transfers
between spouses or between a parent and a child, "base
homestead value" means the equalized assessed value of
the property at the time of the sale or transfer prior
to exemptions, minus: (i) $4,500 in Cook County or
$3,500 in all other counties in tax year 2003; (ii)
$5,000 in all counties in tax years 2004 and 2005; and
(iii) the lesser of the amount of the general homestead
exemption under Section 15-175 or an amount equal to
the increase in the equalized assessed value for the
current tax year above the equalized assessed value for
1977 in tax year 2006 and thereafter, provided that it
was assessed as residential property qualified for any
of the homestead exemptions under Sections 15-170
through 15-175 of this Code, then in force, and further
provided that the property's assessment was not based
on a reduced assessed value resulting from a temporary
irregularity in the property.

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(3.5) "Base year" means (i) tax year 2002 in Cook
County or (ii) tax year 2008 or 2009 in all other counties
in accordance with the designation made by the county as
provided in subsection (k).
(4) "Current tax year" means the tax year for which the
exemption under this Section is being applied.
(5) "Equalized assessed value" means the property's
assessed value as equalized by the Department.
(6) "Homestead" or "homestead property" means:
(A) Residential property that as of January 1 of
the tax year is occupied by its owner or owners as his,
her, or their principal dwelling place, or that is a
leasehold interest on which a single family residence
is situated, that is occupied as a residence by a
person who has a legal or equitable interest therein
evidenced by a written instrument, as an owner or as a
lessee, and on which the person is liable for the
payment of property taxes. Residential units in an
apartment building owned and operated as a
cooperative, or as a life care facility, which are
occupied by persons who hold a legal or equitable
interest in the cooperative apartment building or life
care facility as owners or lessees, and who are liable
by contract for the payment of property taxes, shall be
included within this definition of homestead property.
(B) A homestead includes the dwelling place,

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appurtenant structures, and so much of the surrounding
land constituting the parcel on which the dwelling
place is situated as is used for residential purposes.
If the assessor has established a specific legal
description for a portion of property constituting the
homestead, then the homestead shall be limited to the
property within that description.
(7) "Life care facility" means a facility as defined in
Section 2 of the Life Care Facilities Act.
(c) If the property did not have a residential equalized
assessed value for the base year as provided in subdivision
(b)(3)(A) of this Section, then the assessor shall first
determine an initial value for the property by comparison with
assessed values for the base year of other properties having
physical and economic characteristics similar to those of the
subject property, so that the initial value is uniform in
relation to assessed values of those other properties for the
base year. The product of the initial value multiplied by the
equalized factor for the base year for homestead properties in
that county, less: (i) $4,500 in Cook County or $3,500 in all
other counties in tax years 2003; (ii) $5,000 in all counties
in tax year 2004 and 2005; and (iii) the lesser of the amount
of the general homestead exemption under Section 15-175 or an
amount equal to the increase in the equalized assessed value
for the current tax year above the equalized assessed value for
1977 in tax year 2006 and thereafter, is the base homestead

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value.
For any tax year for which the assessor determines or
adjusts an initial value and hence a base homestead value under
this subsection (c), the initial value shall be subject to
review by the same procedures applicable to assessed values
established under this Code for that tax year.
(d) The base homestead value shall remain constant, except
that the assessor may revise it under the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the previous
base homestead value for that property, then the current
equalized assessed value (provided it is not based on a
reduced assessed value resulting from a temporary
irregularity in the property) shall become the base
homestead value in subsequent tax years.
(2) For any year in which new buildings, structures, or
other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value as provided
in subsection (c) of this Section with due regard to the
value added by the new improvements.
(3) If the property is sold or ownership is otherwise
transferred, the base homestead value of the property shall
be adjusted as provided in subdivision (b)(3)(B). This item
(3) does not apply to sales or transfers between spouses or

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between a parent and a child.
(4) the recalculation required in Cook County under
subdivision (b)(3)(A-5).
(e) The amount of the exemption under this Section is the
equalized assessed value of the homestead property for the
current tax year, minus the adjusted homestead value, with the
following exceptions:
(1) In Cook County, the exemption under this Section
shall not exceed $20,000 for any taxable year through tax
year:
(i) 2005, if the general assessment year for the
property is 2003;
(ii) 2006, if the general assessment year for the
property is 2004; or
(iii) 2007, if the general assessment year for the
property is 2005.
(1.1) Thereafter, in Cook County, and in all other
counties, the exemption is as follows:
(i) if the general assessment year for the property
is 2006, then the exemption may not exceed: $33,000 for
taxable year 2006; $26,000 for taxable year 2007;
$20,000 for taxable years 2008 and 2009; $16,000 for
taxable year 2010; and $40,000 $12,000 for taxable year
2011 and thereafter;
(ii) if the general assessment year for the
property is 2007, then the exemption may not exceed:

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$33,000 for taxable year 2007; $26,000 for taxable year
2008; $20,000 for taxable years 2009 and 2010; and
$40,000 $16,000 for taxable year 2011 and thereafter;
and $12,000 for taxable year 2012; and
(iii) if the general assessment year for the
property is 2008, then the exemption may not exceed:
$33,000 for taxable year 2008; $26,000 for taxable year
2009; $20,000 for taxable year years 2010; and $40,000
for taxable year 2011 and thereafter ; $16,000 for
taxable year 2012; and $12,000 for taxable year 2013.
(1.5) In Cook County, for the 2006 taxable year only, the
maximum amount of the exemption set forth under subsection
(e)(1.1)(i) of this Section may be increased: (i) by $7,000 if
the equalized assessed value of the property in that taxable
year exceeds the equalized assessed value of that property in
2002 by 100% or more; or (ii) by $2,000 if the equalized
assessed value of the property in that taxable year exceeds the
equalized assessed value of that property in 2002 by more than
80% but less than 100%.
(2) In the case of homestead property that also
qualifies for the exemption under Section 15-172, the
property is entitled to the exemption under this Section,
limited to the amount of (i) $4,500 in Cook County or
$3,500 in all other counties in tax year 2003, (ii) $5,000
in all counties in tax years 2004 and 2005, or (iii) the
lesser of the amount of the general homestead exemption

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under Section 15-175 or an amount equal to the increase in
the equalized assessed value for the current tax year above
the equalized assessed value for 1977 in tax year 2006 and
thereafter.
(f) In the case of an apartment building owned and operated
as a cooperative, or as a life care facility, that contains
residential units that qualify as homestead property under this
Section, the maximum cumulative exemption amount attributed to
the entire building or facility shall not exceed the sum of the
exemptions calculated for each qualified residential unit. The
cooperative association, management firm, or other person or
entity that manages or controls the cooperative apartment
building or life care facility shall credit the exemption
attributable to each residential unit only to the apportioned
tax liability of the owner or other person responsible for
payment of taxes as to that unit. Any person who willfully
refuses to so credit the exemption is guilty of a Class B
misdemeanor.
(g) When married persons maintain separate residences, the
exemption provided under this Section shall be claimed by only
one such person and for only one residence.
(h) In the event of a sale or other transfer in ownership
of the homestead property, the exemption under this Section
shall remain in effect for the remainder of the tax year and be
calculated using the same base homestead value in which the
sale or transfer occurs, but (other than for sales or transfers

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between spouses or between a parent and a child) shall be
calculated for any subsequent tax year using the new base
homestead value as provided in subdivision (b)(3)(B). The
assessor may require the new owner of the property to apply for
the exemption in the following year.
(i) The assessor may determine whether property qualifies
as a homestead under this Section by application, visual
inspection, questionnaire, or other reasonable methods. Each
year, at the time the assessment books are certified to the
county clerk by the board of review, the assessor shall furnish
to the county clerk a list of the properties qualified for the
homestead exemption under this Section. The list shall note the
base homestead value of each property to be used in the
calculation of the exemption for the current tax year.
(j) In counties with 3,000,000 or more inhabitants, the
provisions of this Section apply as follows:
(1) If the general assessment year for the property is
2003, this Section applies for assessment years 2003 and
thereafter through 2011. Thereafter, the provisions of
Section 15-175 apply.
(2) If the general assessment year for the property is
2004, this Section applies for assessment years 2004 and
thereafter through 2012. Thereafter, the provisions of
Section 15-175 apply.
(3) If the general assessment year for the property is
2005, this Section applies for assessment years 2005 and

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thereafter through 2013. Thereafter, the provisions of
Section 15-175 apply.
In counties with less than 3,000,000 inhabitants, this
Section applies for assessment years (i) 2009, 2010, 2011, and
thereafter 2012 if tax year 2008 is the designated base year or
(ii) 2010, 2011, 2012, and thereafter 2013 if tax year 2009 is
the designated base year. Thereafter, the provisions of Section
15-175 apply.
(k) To be subject to the provisions of this Section in lieu
of Section 15-175, a county must adopt an ordinance to subject
itself to the provisions of this Section within 6 months after
the effective date of this amendatory Act of the 96th General
Assembly. In a county other than Cook County, the ordinance
must designate either tax year 2008 or tax year 2009 as the
base year.
(l) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 95-644, eff. 10-12-07; 96-1418, eff. 8-2-10.)
(35 ILCS 200/15-177)
Sec. 15-177. The long-time occupant homestead exemption.
(a) If the county has elected, under Section 15-176, to be
subject to the provisions of the alternative general homestead
exemption, then, for taxable years 2007 and thereafter,
regardless of whether the exemption under Section 15-176

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applies, qualified homestead property is entitled to an annual
homestead exemption equal to a reduction in the property's
equalized assessed value calculated as provided in this
Section.
(b) As used in this Section:
"Adjusted homestead value" means the lesser of the
following values:
(1) The property's base homestead value increased by:
(i) 10% for each taxable year after the base year through
and including the current tax year for qualified taxpayers
with a household income of more than $75,000 but not
exceeding $100,000; or (ii) 7% for each taxable year after
the base year through and including the current tax year
for qualified taxpayers with a household income of $75,000
or less. The increase each year is an increase over the
prior year; or
(1.5) Beginning with taxable year 2011 and thereafter,
the property's base homestead value increased by 7% for
each taxable year after the base year through and including
the current tax year for qualified taxpayers with a
household income of $100,000 or less. The increase each
year is an increase over the prior year; or
(2) The property's equalized assessed value for the
current tax year minus the general homestead deduction.
"Base homestead value" means:
(1) if the property did not have an adjusted homestead

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value under Section 15-176 for the base year, then an
amount equal to the equalized assessed value of the
property for the base year prior to exemptions, minus the
general homestead deduction, provided that the property's
assessment was not based on a reduced assessed value
resulting from a temporary irregularity in the property for
that year; or
(2) if the property had an adjusted homestead value
under Section 15-176 for the base year, then an amount
equal to the adjusted homestead value of the property under
Section 15-176 for the base year.
"Base year" means the taxable year prior to the taxable
year in which the taxpayer first qualifies for the exemption
under this Section.
"Current taxable year" means the taxable year for which the
exemption under this Section is being applied.
"Equalized assessed value" means the property's assessed
value as equalized by the Department.
"Homestead" or "homestead property" means residential
property that as of January 1 of the tax year is occupied by a
qualified taxpayer as his or her principal dwelling place, or
that is a leasehold interest on which a single family residence
is situated, that is occupied as a residence by a qualified
taxpayer who has a legal or equitable interest therein
evidenced by a written instrument, as an owner or as a lessee,
and on which the person is liable for the payment of property

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taxes. Residential units in an apartment building owned and
operated as a cooperative, or as a life care facility, which
are occupied by persons who hold a legal or equitable interest
in the cooperative apartment building or life care facility as
owners or lessees, and who are liable by contract for the
payment of property taxes, are included within this definition
of homestead property. A homestead includes the dwelling place,
appurtenant structures, and so much of the surrounding land
constituting the parcel on which the dwelling place is situated
as is used for residential purposes. If the assessor has
established a specific legal description for a portion of
property constituting the homestead, then the homestead is
limited to the property within that description.
"Household income" has the meaning set forth under Section
15-172 of this Code.
"General homestead deduction" means the amount of the
general homestead exemption under Section 15-175.
"Life care facility" means a facility defined in Section 2
of the Life Care Facilities Act.
"Qualified homestead property" means homestead property
owned by a qualified taxpayer.
"Qualified taxpayer" means any individual:
(1) who, for at least 10 continuous years as of January
1 of the taxable year, has occupied the same homestead
property as a principal residence and domicile or who, for
at least 5 continuous years as of January 1 of the taxable

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year, has occupied the same homestead property as a
principal residence and domicile if that person received
assistance in the acquisition of the property as part of a
government or nonprofit housing program; and
(2) who has a household income of $100,000 or less.
(c) The base homestead value must remain constant, except
that the assessor may revise it under any of the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the previous
base homestead value for that property, then the current
equalized assessed value (provided it is not based on a
reduced assessed value resulting from a temporary
irregularity in the property) becomes the base homestead
value in subsequent tax years.
(2) For any year in which new buildings, structures, or
other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value with due
regard to the value added by the new improvements.
(d) The amount of the exemption under this Section is the
greater of: (i) the equalized assessed value of the homestead
property for the current tax year minus the adjusted homestead
value; or (ii) the general homestead deduction.
(e) In the case of an apartment building owned and operated
as a cooperative, or as a life care facility, that contains

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residential units that qualify as homestead property of a
qualified taxpayer under this Section, the maximum cumulative
exemption amount attributed to the entire building or facility
shall not exceed the sum of the exemptions calculated for each
unit that is a qualified homestead property. The cooperative
association, management firm, or other person or entity that
manages or controls the cooperative apartment building or life
care facility shall credit the exemption attributable to each
residential unit only to the apportioned tax liability of the
qualified taxpayer as to that unit. Any person who willfully
refuses to so credit the exemption is guilty of a Class B
misdemeanor.
(f) When married persons maintain separate residences, the
exemption provided under this Section may be claimed by only
one such person and for only one residence. No person who
receives an exemption under Section 15-172 of this Code may
receive an exemption under this Section. No person who receives
an exemption under this Section may receive an exemption under
Section 15-175 or 15-176 of this Code.
(g) In the event of a sale or other transfer in ownership
of the homestead property between spouses or between a parent
and a child, the exemption under this Section remains in effect
if the new owner has a household income of $100,000 or less.
(h) In the event of a sale or other transfer in ownership
of the homestead property other than subsection (g) of this
Section, the exemption under this Section shall remain in

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effect for the remainder of the tax year and be calculated
using the same base homestead value in which the sale or
transfer occurs.
(i) To receive the exemption, a person must submit an
application to the county assessor during the period specified
by the county assessor.
The county assessor shall annually give notice of the
application period by mail or by publication.
The taxpayer must submit, with the application, an
affidavit of the taxpayer's total household income, marital
status (and if married the name and address of the applicant's
spouse, if known), and principal dwelling place of members of
the household on January 1 of the taxable year. The Department
shall establish, by rule, a method for verifying the accuracy
of affidavits filed by applicants under this Section, and the
Chief County Assessment Officer may conduct audits of any
taxpayer claiming an exemption under this Section to verify
that the taxpayer is eligible to receive the exemption. Each
application shall contain or be verified by a written
declaration that it is made under the penalties of perjury. A
taxpayer's signing a fraudulent application under this Act is
perjury, as defined in Section 32-2 of the Criminal Code of
1961. The applications shall be clearly marked as applications
for the Long-time Occupant Homestead Exemption and must contain
a notice that any taxpayer who receives the exemption is
subject to an audit by the Chief County Assessment Officer.

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(j) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 95-644, eff. 10-12-07.)
Section 99. Effective date. This Act takes effect upon
becoming law.