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91_SB0860
LRB9101613PTpk
1 AN ACT concerning longtime small business owners.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Longtime Owner-Occupant Property Tax
5 Relief Act is amended by changing Sections 1, 5, 10, 15, and
6 20 as follows:
7 (35 ILCS 250/1)
8 Sec. 1. Short title. This Act may be cited as the
9 Longtime Owner-Occupant and Small Business Owner Property Tax
10 Relief Act.
11 (Source: P.A. 88-451.)
12 (35 ILCS 250/5)
13 Sec. 5. Public policy. In recognition of the severe
14 economic circumstances of (i) certain longtime
15 owner-occupants of residences who are faced with rising
16 living costs and constantly increasing tax burdens in areas
17 where real property values have risen markedly as a
18 consequence of the renovation of other deteriorating
19 residences or the construction of new residences and (ii)
20 certain longtime owners of small businesses who are faced
21 with increases in property tax burdens as a result of rising
22 tax rates and the decline in the amount of taxable commercial
23 and industrial property, the General Assembly considers it to
24 be a matter of sound public policy for counties having a
25 population of 100,000 or more to adopt uniform special real
26 property tax relief provisions in order to allow longtime
27 owner-occupants of residences and longtime owners of small
28 businesses to remain in peaceful possession of their homes
29 and businesses.
30 (Source: P.A. 88-451.)
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1 (35 ILCS 250/10)
2 Sec. 10. Definitions. As used in this Act, unless the
3 context clearly indicates otherwise:
4 (a) "Longtime owner-occupant" means a person who
5 for at least 10 continuous years has owned and has
6 occupied the same dwelling place as a principal residence
7 and domicile, or any person who for at least 5 years has
8 owned and occupied the same dwelling place as a principal
9 residence and domicile if that person received assistance
10 in the acquisition of the property as part of a
11 government or nonprofit housing program.
12 (a-1) "Longtime small business owner" means any
13 for-profit business in Illinois including, but not
14 limited to, any sole proprietorship, partnership,
15 corporation, joint venture, association, or cooperative
16 that has, including its affiliates, less than 500
17 full-time employees and has occupied the same commercial
18 or industrial property for at least 10 continuous years.
19 (b) "Principal residence" means the dwelling place
20 of a person, including the principal house and lot, and
21 such lots as are used in connection with the principal
22 house and lot that contribute to its enjoyment, comfort
23 and convenience. For purposes of this Act, the term may
24 also include a building with a maximum of one commercial
25 establishment and a maximum of 3 residential units of
26 which one residential unit must be the principal
27 residence of the longtime owner-occupant.
28 (Source: P.A. 88-451.)
29 (35 ILCS 250/15)
30 Sec. 15. Deferral or exemption authority.
31 (a) The corporate authorities of a county shall have the
32 power to provide, by ordinance or resolution, for uniform
33 special real property tax relief provisions granting longtime
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1 owner-occupants a deferral or exemption, or combination
2 thereof, in the payment of that portion of an increase of
3 real property taxes which is due to an increase in the market
4 value of the real property as a consequence of the
5 refurbishing or renovating of other residences or the
6 construction of new residences in long-established
7 residential areas or areas of deteriorated, vacant or
8 abandoned homes and properties. A deferral or exemption, or
9 combination thereof, may be granted until the longtime
10 owner-occupant transfers title to the property.
11 (a-1) The corporate authorities of a county may provide,
12 by ordinance or resolution, for uniform special real property
13 tax relief provisions granting longtime small business owners
14 a deferral or exemption, or combination thereof, in the
15 payment of that portion of an increase of real property taxes
16 that is due to a combination of excessive tax rates and
17 generally declining equalized assessed valuation in the
18 commercial and industrial properties in the geographical area
19 in which the longtime small business is located. A deferral
20 or exemption, or combination thereof, may be granted until
21 the longtime small business owner transfers title to the
22 property.
23 (b) The corporate authority of a county is authorized to
24 enact ordinances or resolutions that provide for the
25 designation of areas eligible for the special real property
26 tax relief provisions under this Act. Before enacting an
27 ordinance or resolution that proposes designating such an
28 area, the corporate authorities shall conduct a public
29 hearing on the proposed ordinance or resolution.
30 (c) School districts and municipalities within a county
31 have authority to determine their participation in the
32 program of special real property tax relief within their
33 taxing jurisdictions. The provisions of this subsection shall
34 not apply to municipalities and school districts included
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1 under subsection (d) of this Section.
2 (d) Notwithstanding any provision to the contrary, if
3 the corporate authority of a county with 3,000,000 or more
4 inhabitants enacts an ordinance or resolution in accordance
5 with subsection (c), a municipality having a population
6 exceeding 500,000 within that county and a school district in
7 a municipality having a population exceeding 500,000 within
8 that county must participate in the program of special
9 property tax relief within their taxing jurisdiction. This
10 subsection is a denial and limitation of home rule powers and
11 functions under subsection (g) of Section 6 of Article VII of
12 the Illinois Constitution.
13 (Source: P.A. 89-127, eff. 1-1-96; 90-648, eff. 7-24-98.)
14 (35 ILCS 250/20)
15 Sec. 20. Conditions of deferral or exemption.
16 (a) Any deferral or exemption of payment of an increase
17 in real property taxes granted under this Act shall be
18 limited to real property that meets both of the following
19 conditions:
20 (1) The property is owned and occupied by a
21 longtime owner-occupant.
22 (2) The property is the principal residence and
23 domicile of the longtime owner-occupant.
24 The corporate authorities of a county, by ordinance or
25 resolution, may impose additional criteria for qualifying for
26 a deferral or exemption under this Act including, but not
27 limited to, (i) requiring the owner-occupant to have owned
28 and occupied the same dwelling place as principal residence
29 and domicile for a period of more than 10 years, (ii)
30 establishing age criteria for eligibility of an
31 owner-occupant, and (iii) establishing income criteria for
32 eligibility of an owner-occupant.
33 (a-1) In the case of a small business, the property must
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1 be the principal industrial or commercial property of the
2 longtime small business owner to receive any deferral or
3 exemption of payment of an increase in real property taxes
4 under this Act.
5 (b) No penalties or interest shall accrue on the portion
6 of any deferral granted under this Act.
7 (c) Except as provided in subsection (d) of Section 15,
8 school districts and municipalities within a county to which
9 this Act applies may determine whether financial need, age,
10 or both, of the longtime owner-occupant shall be used to
11 determine eligibility.
12 (Source: P.A. 90-648, eff. 7-24-98.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.