Embargoeduntil9:00amMonday,September21

ORDINANCE

PROPERTYTAXREBATEPROGRAM

WHEREAS,
theCityofChicagoisahomeruleunitofgovernmentasdefinedinArticle
VII,Section6(a)oftheIllinoisConstitution,and,assuch,mayexerciseanypowerandperform
anyfunctionpertainingtoitsgovernmentandaffairs

WHEREAS,
onSeptember3,2015theMayoroftheCitycalledforapropertytax
increasethatmayamounttoasixtypercentincreaseovertheCitys2014levy

WHEREAS,
suchalargepropertytaxincreasethreatensthestabilityoftheCitys
neighborhoodsbyplacingaburdenonthelimitedincomesoftheCitysworkingfamilies

WHEREAS,
itisinthebestinterestsoftheCitysworkingfamiliesandneighborhoodsto
fashionaprogramofpropertytaxreliefand

WHEREAS,
theCityPropertyTaxRebateProgramof2010identified$35millionin
fundsfromtheparkingmeterconcessionrevenues,ofwhichonly$2.1millionwasdistributed
NOW,THEREFORE

BEITORDAINEDBYTHECITYCOUNCILOFTHECITYOFCHICAGO,AS
FOLLOWS:

Section1.
PurposeRelationtootherOrdinances
.
ThepurposeofthisOrdinanceistoprovidefortheimplementationofapropertytaxrelief
programwheretheCitywillreimburseaportionofpropertytaxespaidbyqualified
owneroccupantsofcertainresidentialunitsintheCityuponapplicationandpresentationof
properdocumentation.Further,thisOrdinancewouldreinstaterelevantpartsoftheProperty
TaxReliefProgramsetforthinSection232627oftheMunicipalCodeofChicago.Tothe
extentthattheprovisionsofthisOrdinanceconflictwithanypriorOrdinanceorprovisionofthe
City,thisOrdinanceshallcontrol.

Section2.
Definitions
.
SECTION1.Chapter232oftheMunicipalCodeofChicagoisamendedbyaddinga
newSection232627,asfollows:

232627PropertyTaxRebateProgram

(a)Asusedinthissection:
"Applicableyear"meansthecalendaryearforwhichahomeownerhasreceivedafinal
realestatetaxbillthatexceedsthefinalrealestatetaxbillfortheimmediatelyprecedingyearin
anamountthatqualifiesthehomeownerforagrantunderthissection

"ChiefFinancialOfficer"meanstheChiefFinancialOfficeroftheCityofChicagoorhis
orherdesignee

"Eligiblehomeowner"meansanindividualwho,atthetimeoftheapplicationandsince
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Embargoeduntil9:00amMonday,September21
January1ofthecalendaryearimmediatelyprecedingtheapplicableyear:(i)
hasan
adjustedgrossincomethatislessthanorequalto400%oftheFederalPovertyLevelannually
(ii)istheownerofrecordoforhasalegalorequitableinterest,exceptforaleaseholdinterest
thatisnotaresidentialcooperative,inpropertvinthiscitvthatisusedbytheindividualasthe
individual'sprincipalplaceofresidenceand(ii)isliableforpayingtherealestatetaxesonthe
property.Forpurposesofthedefinitionof"homeowner",anequitableinterestshallincludea
beneficialinterestinpropertythatisheldinanIllinoislandtrust

"Household"meansthehomeowner,andthespouseorqualifieddomesticpartnerofthe
homeownerifthespouseorqualifieddomesticpartnerfiledajointfederalincometaxreturnwith
thehomeownerfortheapplicableyear

"Householdincome"meansthecombinedincomeofthemembersofahouseholdforthe
applicableyear

"Propertytaxes"meansthetaxesonrealpropertyforwhichahomeownerisliableunder
thePropertyTaxCode,35ILCS200/11,etseq.whenthatpropertyisusedbythehomeowner
asthehomeowner'sprincipalplaceofresidence

(b)TheChiefFinancialOfficerisauthorizedtoestablishandadministerapropertytax
rebateprogramunderthissectionUnderthisprogram,ahomeownerwhomeetstheeligibility
requirementsforarebateunderthissectionmayreceivearebateintheamountspecifiedin
Section3.

Section3.
MethodofComputingandReflectingTaxRelief
.
Commencingin2016,theCitywillreimburseaportionoftheCity'sshareofthereal
estatepropertytaxespaidbyowneroccupantsofsinglefamilyhomes,owneroccupantsof
townhomes,owneroccupantsofapartmentbuildings,andowneroccupantsofresidential
condominiumunitsuptoatotalmaximumrebateoftwothousanddollars.Theformulabelow
willbeusedtocalculatetheRebate:

((AVxTI%)x2):RebateAmount

Where:
AV=AssessedValue
TI%=TaxIncreaseonpercentagepoints
ThustheRebateonahomewithanassessedvalueof$25,000uponanincreaseof,for
instance,.8%,wouldbe((25,000x.008)x2)=400.Thiswouldbeappliedtoallhomeowners
asdefinedabove.

Section4.
Implementation,EligibilityandEnforcement
TheChiefFinancialOfficeroftheCityofChicagowilldevelopanapplicationformandan
applicationprocessforpropertytaxrebatesasprescribedbythisOrdinance,incorporating
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Embargoeduntil9:00amMonday,September21
requirementsasarenecessarytoeffectuatetheintentofthisOrdinance,andincorporatingthe
followingspecifications:
(a)Ahomeownermustfileanapplicationtoparticipateinthereliefprogramwiththe
ChicagoTaxAssistanceCenterwithintheOfficeofBudgetandManagement.Theapplication
shallbeonaformprescribedbytheChiefFinancialOfficerandshallincludeevidenceofthe
homeowner'shouseholdincomefortheapplicableyear,evidencethattheapplicantbecamethe
homeownerpriortoJanuary1stofthecalendaryearimmediatelyprecedingtheapplicableyear,
andevidenceoftheamountofthehomeowner'srealestatetaxincrease.
(b)Therebatewillbepaidonlytoowneroccupantswhodemonstratethatthey,ortheir
mortgagecompany,havepaidthepreviousyearspropertytaxesinfull,andwhocertifythat
theyhavenoprioryearpropertytaxesoutstanding
(c)Therebatewillnotbeproratedforpartialyearresidence
(d)Therebatecheckwillbemailedonlytotheaddressforwhichtheowneroccupant
demonstratedpaymentofthepreviousyearspropertytaxes.
(e)Personswhoarecurrentontheirtaxes,buthaveotheroutstandingCitydebtsshall
beeligibleforthegrant.
(f)Tobeeligibleforrebatethehomeownermusthavequalifiedforandclaimedthe
HomesteadExemptionfortheprevioustaxyear.
(g)TheprovisionsofSection2156110ofthisCodeshallnotapplytocityemployees
withrespecttotheirparticipationinthepropertytaxreliefprogramcreatedpursuanttothis
section.
(h)TheChiefFinancialOfficerisauthorizedtoexpendlegallyavailablefundsforthe
implementationofthissection.TheChiefFinancialOfficershalladditionallyhaveauthorityto
enterintoagreementsandexecutedocumentsnecessarytoimplementthisOrdinance,to
promulgaterulesandregulationsnecessarytoimplementthissectionandtoprescribe
applicationformsandotherformsnecessarytoelicitrelevantinformationconcerning
participantsinthepropertvtaxrebateprogram.TheChiefFinancialOfficermayrequestthe
OfficeofCompliancetoconductauditstodetermineeligibilityofanapplicanttoparticipateinthe
propertytaxreliefprogramcreatedpursuanttothissection.Anypersonalfinancialinformation
providedtotheCityinconnectionwithanapplicationsubmittedunderthissectionshallremain
confidential.

Section6.
PenaltiesandFines
(a)Shoulditbefoundthatapropertyownerimproperlyreceivesarefundthrough
misrepresentationorotherwise,therecipientoftherebateshallbeliabletotheCityofChicago
intheamountoftherebateplusinterest.Further,thepropertyownershallthereforthnotbe
eligibleforarebategrantonthatproperty,oranyotherpropertiesthatmaybecomeeligiblefor
thefollowingtwotaxyears.
(b)Anyonefoundinimproperreceiptofarebateisalsosubjecttoanyotherother
remedies,finesandlegalactionsavailabletotheCityofChicago.

Section7.
ExpirationofProgram


Embargoeduntil9:00amMonday,September21
ThissectionisrepealedonJune30th,2017providedthatthisSectiondoesnotaffect
theauthorityoftheCityoftheCitytomakepaymentspursuanttotherebateprogramon
applicationssubmittedonorbeforeJune30th,2017.

Section8.

Thisordinanceshallbeinfullforceandeffectfromandafteritspassageandapproval.

______________________________
CarlosRamirezRosa
Alderman,35thWard

______________________________
JohnArena
Alderman,45thWard

______________________________
ScottWaguespack
Alderman,32ndWard