Sen. Don Harmon

Filed: 3/15/2010

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 455

2     AMENDMENT NO. ______. Amend Senate Bill 455 by replacing
3 everything after the enacting clause with the following:
 
4     "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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1     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             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             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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1         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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1         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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1         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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1             (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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1     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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1     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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1 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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1 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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1     Section 99. Effective date. This Act takes effect upon
2 becoming law.".