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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5423 Introduced , by Rep. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
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Amends the Property Tax Code. Makes a technical change in a Section concerning the long-time occupant homestead exemption.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 15-177 as follows:
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| 6 | | (35 ILCS 200/15-177) |
| 7 | | Sec. 15-177. The long-time occupant homestead exemption. |
| 8 | | (a) If the the county has elected, under Section 15-176, to |
| 9 | | be subject to the provisions of the alternative general |
| 10 | | homestead exemption, then, for taxable years 2007 and |
| 11 | | thereafter, regardless of whether the exemption under Section |
| 12 | | 15-176 applies, qualified homestead property is
entitled to
an |
| 13 | | annual homestead exemption equal to a reduction in the |
| 14 | | property's equalized
assessed
value calculated as provided in |
| 15 | | this Section. |
| 16 | | (b) As used in this Section: |
| 17 | | "Adjusted homestead value" means the lesser of
the |
| 18 | | following values: |
| 19 | | (1) The property's base homestead value increased
by: |
| 20 | | (i) 10% for each taxable year after the base year through |
| 21 | | and including the current tax year for qualified taxpayers |
| 22 | | with a household income of more than $75,000 but not |
| 23 | | exceeding $100,000; or (ii) 7% for each taxable year after |
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| 1 | | the base year through and including the current tax year |
| 2 | | for qualified taxpayers with a household income of $75,000 |
| 3 | | or less. The increase each year is an increase over the |
| 4 | | prior year; or |
| 5 | | (2) The property's equalized assessed value for
the |
| 6 | | current tax year minus the general homestead deduction. |
| 7 | | "Base homestead value" means: |
| 8 | | (1) if the property did not have an adjusted homestead |
| 9 | | value under Section 15-176 for the base year, then an |
| 10 | | amount equal to the equalized assessed value of the |
| 11 | | property for the base year prior to exemptions, minus the |
| 12 | | general homestead deduction, provided that the property's |
| 13 | | assessment was not based on a reduced assessed value |
| 14 | | resulting from a temporary irregularity in the property for |
| 15 | | that year; or |
| 16 | | (2) if the property had an adjusted homestead value |
| 17 | | under Section 15-176 for the base year, then an amount |
| 18 | | equal to the adjusted homestead value of the property under |
| 19 | | Section 15-176 for the base year. |
| 20 | | "Base year" means the taxable year prior to the taxable |
| 21 | | year in which the taxpayer first qualifies for the exemption |
| 22 | | under this Section. |
| 23 | | "Current taxable year" means the taxable year for which
the |
| 24 | | exemption under this Section is being applied. |
| 25 | | "Equalized assessed value" means the property's
assessed |
| 26 | | value as equalized by the Department. |
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| 1 | | "Homestead" or "homestead property" means residential |
| 2 | | property that as of January 1 of
the tax year is occupied by a |
| 3 | | qualified taxpayer as his or her principal dwelling place, or |
| 4 | | that is a leasehold interest on which a single family residence |
| 5 | | is situated, that is occupied as a residence by a qualified |
| 6 | | taxpayer who has a legal or equitable interest therein |
| 7 | | evidenced by a written instrument, as an owner or as a lessee, |
| 8 | | and on which the person is liable for the payment of property |
| 9 | | taxes. Residential units in an apartment building owned and |
| 10 | | operated as a cooperative, or as a life care facility, which |
| 11 | | are occupied by persons who hold a legal or equitable interest |
| 12 | | in the cooperative apartment building or life care facility as |
| 13 | | owners or lessees, and who are liable by contract for the |
| 14 | | payment of property taxes, are included within this definition |
| 15 | | of homestead property. A homestead includes the dwelling place,
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| 16 | | appurtenant structures, and so much of the surrounding land |
| 17 | | constituting the parcel on which the dwelling place is situated |
| 18 | | as is used for residential purposes. If the assessor has |
| 19 | | established a specific legal description for a portion of |
| 20 | | property constituting the homestead, then the homestead is |
| 21 | | limited to the property within that description. |
| 22 | | "Household income" has the meaning set forth under Section |
| 23 | | 15-172 of this Code.
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| 24 | | "General homestead deduction" means the amount of the |
| 25 | | general homestead exemption under Section 15-175.
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| 26 | | "Life care facility" means a facility defined
in Section 2 |
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| 1 | | of the Life Care Facilities Act. |
| 2 | | "Qualified homestead property" means homestead property |
| 3 | | owned by a qualified taxpayer.
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| 4 | | "Qualified taxpayer" means any individual: |
| 5 | | (1) who, for at least 10 continuous years as of January |
| 6 | | 1 of the taxable year, has occupied the same homestead |
| 7 | | property as a principal residence and domicile or who, for |
| 8 | | at least 5 continuous years as of January 1 of the taxable |
| 9 | | year, has occupied the same homestead property as a |
| 10 | | principal residence and domicile if that person received |
| 11 | | assistance in the acquisition of the property as part of a |
| 12 | | government or nonprofit housing program; and |
| 13 | | (2) who has a household income of $100,000 or less.
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| 14 | | (c) The base homestead value must remain constant, except |
| 15 | | that the assessor may revise it under any of the following |
| 16 | | circumstances: |
| 17 | | (1) If the equalized assessed value of a homestead
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| 18 | | property for the current tax year is less than the previous |
| 19 | | base homestead value for that property, then the current |
| 20 | | equalized assessed value (provided it is not based on a |
| 21 | | reduced assessed value resulting from a temporary |
| 22 | | irregularity in the property) becomes the base homestead |
| 23 | | value in subsequent tax years. |
| 24 | | (2) For any year in which new buildings, structures,
or |
| 25 | | other improvements are constructed on the homestead |
| 26 | | property that would increase its assessed value, the |
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| 1 | | assessor shall adjust the base homestead value with due |
| 2 | | regard to the value added by the new improvements. |
| 3 | | (d) The amount of the exemption under this Section is the |
| 4 | | greater of: (i) the equalized assessed value of the homestead |
| 5 | | property for the current tax year minus the adjusted homestead |
| 6 | | value; or (ii) the general homestead deduction. |
| 7 | | (e) In the case of an apartment building owned and operated |
| 8 | | as a cooperative, or as a life care facility, that contains |
| 9 | | residential units that qualify as homestead property of a |
| 10 | | qualified taxpayer under this Section, the maximum cumulative |
| 11 | | exemption amount attributed to the entire building or facility |
| 12 | | shall not exceed the sum of the exemptions calculated for each |
| 13 | | unit that is a qualified homestead property. The cooperative |
| 14 | | association, management firm, or other person or entity that |
| 15 | | manages or controls the cooperative apartment building or life |
| 16 | | care facility shall credit the exemption attributable to each |
| 17 | | residential unit only to the apportioned tax liability of the |
| 18 | | qualified taxpayer as to that unit. Any person who willfully |
| 19 | | refuses to so credit the exemption is guilty of a Class B |
| 20 | | misdemeanor. |
| 21 | | (f) When married persons maintain separate residences, the |
| 22 | | exemption provided under this Section may be claimed by only |
| 23 | | one such person and for only one residence. No person who |
| 24 | | receives an exemption under Section 15-172 of this Code may |
| 25 | | receive an exemption under this Section. No person who receives |
| 26 | | an exemption under this Section may receive an exemption under |
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| 1 | | Section 15-175 or 15-176 of this Code. |
| 2 | | (g) In the event of a sale or other transfer in ownership |
| 3 | | of the homestead property between spouses or between a parent |
| 4 | | and a child, the exemption under this Section remains in effect |
| 5 | | if the new owner has a household income of $100,000 or less. |
| 6 | | (h) In the event of a sale or other transfer in ownership |
| 7 | | of the homestead property other than subsection (g) of this |
| 8 | | Section, the exemption under this Section shall remain in |
| 9 | | effect for the remainder of the tax year and be calculated |
| 10 | | using the same base homestead value in which the sale or |
| 11 | | transfer occurs.
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| 12 | | (i) To receive the exemption, a person must submit an |
| 13 | | application to the county assessor during the period specified |
| 14 | | by the county assessor. |
| 15 | | The county assessor shall annually give notice of the |
| 16 | | application period by mail or by publication. |
| 17 | | The taxpayer must submit, with the application, an |
| 18 | | affidavit of the taxpayer's total household income, marital |
| 19 | | status (and if married the name and address of the applicant's |
| 20 | | spouse, if known), and principal dwelling place of members of |
| 21 | | the household on January 1 of the taxable year. The Department |
| 22 | | shall establish, by rule, a method for verifying the accuracy |
| 23 | | of affidavits filed by applicants under this Section, and the |
| 24 | | Chief County Assessment Officer may conduct audits of any |
| 25 | | taxpayer claiming an exemption under this Section to verify |
| 26 | | that the taxpayer is eligible to receive the exemption. Each |
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| 1 | | application shall contain or be verified by a written |
| 2 | | declaration that it is made under the penalties of perjury. A |
| 3 | | taxpayer's signing a fraudulent application under this Act is |
| 4 | | perjury, as defined in Section 32-2 of the Criminal Code of |
| 5 | | 1961. The applications shall be clearly marked as applications |
| 6 | | for the Long-time Occupant Homestead Exemption and must contain |
| 7 | | a notice that any taxpayer who receives the exemption is |
| 8 | | subject to an audit by the Chief County Assessment Officer. |
| 9 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates |
| 10 | | Act, no reimbursement by the State is required for the |
| 11 | | implementation of any mandate created by this Section.
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| 12 | | (Source: P.A. 95-644, eff. 10-12-07.)
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