100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5779

 

Introduced , by Rep. John Connor

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, for taxable years 2018 and thereafter: (1) the maximum reduction under the senior citizens homestead exemption is $8,000 in Cook, DuPage, Lake, McHenry, and Will Counties and $5,000 in all other counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties); and (2) the maximum reduction under the general homestead exemption is $10,000 in Cook, DuPage, Lake, McHenry, and Will Counties and $6,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.


LRB100 18464 HLH 33679 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5779LRB100 18464 HLH 33679 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 15-170 and 15-175 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior citizens homestead exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

 

 

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500. For taxable years 2008 through 2011,
4the maximum reduction is $4,000 in all counties. For taxable
5year 2012, the maximum reduction is $5,000 in counties with
63,000,000 or more inhabitants and $4,000 in all other counties.
7For taxable years 2013 through 2016, the maximum reduction is
8$5,000 in all counties. For taxable year years 2017 and
9thereafter, the maximum reduction is $8,000 in counties with
103,000,000 or more inhabitants and $5,000 in all other counties.
11For taxable years 2018 and thereafter, the maximum reduction is
12$8,000 in Cook, DuPage, Lake, McHenry, and Will Counties and
13$5,000 in all other counties.
14    For land improved with an apartment building owned and
15operated as a cooperative, the maximum reduction from the value
16of the property, as equalized by the Department, shall be
17multiplied by the number of apartments or units occupied by a
18person 65 years of age or older who is liable, by contract with
19the owner or owners of record, for paying property taxes on the
20property and is an owner of record of a legal or equitable
21interest in the cooperative apartment building, other than a
22leasehold interest. For land improved with a life care
23facility, the maximum reduction from the value of the property,
24as equalized by the Department, shall be multiplied by the
25number of apartments or units occupied by persons 65 years of
26age or older, irrespective of any legal, equitable, or

 

 

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1leasehold interest in the facility, who are liable, under a
2contract with the owner or owners of record of the facility,
3for paying property taxes on the property. In a cooperative or
4a life care facility where a homestead exemption has been
5granted, the cooperative association or the management firm of
6the cooperative or facility shall credit the savings resulting
7from that exemption only to the apportioned tax liability of
8the owner or resident who qualified for the exemption. Any
9person who willfully refuses to so credit the savings shall be
10guilty of a Class B misdemeanor. Under this Section and
11Sections 15-175, 15-176, and 15-177, "life care facility" means
12a facility, as defined in Section 2 of the Life Care Facilities
13Act, with which the applicant for the homestead exemption has a
14life care contract as defined in that Act.
15    When a homestead exemption has been granted under this
16Section and the person qualifying subsequently becomes a
17resident of a facility licensed under the Assisted Living and
18Shared Housing Act, the Nursing Home Care Act, the Specialized
19Mental Health Rehabilitation Act of 2013, the ID/DD Community
20Care Act, or the MC/DD Act, the exemption shall continue so
21long as the residence continues to be occupied by the
22qualifying person's spouse if the spouse is 65 years of age or
23older, or if the residence remains unoccupied but is still
24owned by the person qualified for the homestead exemption.
25    A person who will be 65 years of age during the current
26assessment year shall be eligible to apply for the homestead

 

 

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1exemption during that assessment year. Application shall be
2made during the application period in effect for the county of
3his residence.
4    Beginning with assessment year 2003, for taxes payable in
52004, property that is first occupied as a residence after
6January 1 of any assessment year by a person who is eligible
7for the senior citizens homestead exemption under this Section
8must be granted a pro-rata exemption for the assessment year.
9The amount of the pro-rata exemption is the exemption allowed
10in the county under this Section divided by 365 and multiplied
11by the number of days during the assessment year the property
12is occupied as a residence by a person eligible for the
13exemption under this Section. The chief county assessment
14officer must adopt reasonable procedures to establish
15eligibility for this pro-rata exemption.
16    The assessor or chief county assessment officer may
17determine the eligibility of a life care facility to receive
18the benefits provided by this Section, by affidavit,
19application, visual inspection, questionnaire or other
20reasonable methods in order to insure that the tax savings
21resulting from the exemption are credited by the management
22firm to the apportioned tax liability of each qualifying
23resident. The assessor may request reasonable proof that the
24management firm has so credited the exemption.
25    The chief county assessment officer of each county with
26less than 3,000,000 inhabitants shall provide to each person

 

 

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1allowed a homestead exemption under this Section a form to
2designate any other person to receive a duplicate of any notice
3of delinquency in the payment of taxes assessed and levied
4under this Code on the property of the person receiving the
5exemption. The duplicate notice shall be in addition to the
6notice required to be provided to the person receiving the
7exemption, and shall be given in the manner required by this
8Code. The person filing the request for the duplicate notice
9shall pay a fee of $5 to cover administrative costs to the
10supervisor of assessments, who shall then file the executed
11designation with the county collector. Notwithstanding any
12other provision of this Code to the contrary, the filing of
13such an executed designation requires the county collector to
14provide duplicate notices as indicated by the designation. A
15designation may be rescinded by the person who executed such
16designation at any time, in the manner and form required by the
17chief county assessment officer.
18    The assessor or chief county assessment officer may
19determine the eligibility of residential property to receive
20the homestead exemption provided by this Section by
21application, visual inspection, questionnaire or other
22reasonable methods. The determination shall be made in
23accordance with guidelines established by the Department.
24    In counties with 3,000,000 or more inhabitants, beginning
25in taxable year 2010, each taxpayer who has been granted an
26exemption under this Section must reapply on an annual basis.

 

 

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1The chief county assessment officer shall mail the application
2to the taxpayer. In counties with less than 3,000,000
3inhabitants, the county board may by resolution provide that if
4a person has been granted a homestead exemption under this
5Section, the person qualifying need not reapply for the
6exemption.
7    In counties with less than 3,000,000 inhabitants, if the
8assessor or chief county assessment officer requires annual
9application for verification of eligibility for an exemption
10once granted under this Section, the application shall be
11mailed to the taxpayer.
12    The assessor or chief county assessment officer shall
13notify each person who qualifies for an exemption under this
14Section that the person may also qualify for deferral of real
15estate taxes under the Senior Citizens Real Estate Tax Deferral
16Act. The notice shall set forth the qualifications needed for
17deferral of real estate taxes, the address and telephone number
18of county collector, and a statement that applications for
19deferral of real estate taxes may be obtained from the county
20collector.
21    Notwithstanding Sections 6 and 8 of the State Mandates Act,
22no reimbursement by the State is required for the
23implementation of any mandate created by this Section.
24(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
 
25    (35 ILCS 200/15-175)

 

 

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1    Sec. 15-175. General homestead exemption.
2    (a) Except as provided in Sections 15-176 and 15-177,
3homestead property is entitled to an annual homestead exemption
4limited, except as described here with relation to
5cooperatives, to a reduction in the equalized assessed value of
6homestead property equal to the increase in equalized assessed
7value for the current assessment year above the equalized
8assessed value of the property for 1977, up to the maximum
9reduction set forth below. If however, the 1977 equalized
10assessed value upon which taxes were paid is subsequently
11determined by local assessing officials, the Property Tax
12Appeal Board, or a court to have been excessive, the equalized
13assessed value which should have been placed on the property
14for 1977 shall be used to determine the amount of the
15exemption.
16    (b) Except as provided in Section 15-176, the maximum
17reduction before taxable year 2004 shall be $4,500 in counties
18with 3,000,000 or more inhabitants and $3,500 in all other
19counties. Except as provided in Sections 15-176 and 15-177, for
20taxable years 2004 through 2007, the maximum reduction shall be
21$5,000, for taxable year 2008, the maximum reduction is $5,500,
22and, for taxable years 2009 through 2011, the maximum reduction
23is $6,000 in all counties. For taxable years 2012 through 2016,
24the maximum reduction is $7,000 in counties with 3,000,000 or
25more inhabitants and $6,000 in all other counties. For taxable
26year years 2017 and thereafter, the maximum reduction is

 

 

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1$10,000 in counties with 3,000,000 or more inhabitants and
2$6,000 in all other counties. For taxable years 2018 and
3thereafter, the maximum reduction is $10,000 in Cook, DuPage,
4Lake, McHenry, and Will Counties and $6,000 in all other
5counties. If a county has elected to subject itself to the
6provisions of Section 15-176 as provided in subsection (k) of
7that Section, then, for the first taxable year only after the
8provisions of Section 15-176 no longer apply, for owners who,
9for the taxable year, have not been granted a senior citizens
10assessment freeze homestead exemption under Section 15-172 or a
11long-time occupant homestead exemption under Section 15-177,
12there shall be an additional exemption of $5,000 for owners
13with a household income of $30,000 or less.
14    (c) In counties with fewer than 3,000,000 inhabitants, if,
15based on the most recent assessment, the equalized assessed
16value of the homestead property for the current assessment year
17is greater than the equalized assessed value of the property
18for 1977, the owner of the property shall automatically receive
19the exemption granted under this Section in an amount equal to
20the increase over the 1977 assessment up to the maximum
21reduction set forth in this Section.
22    (d) If in any assessment year beginning with the 2000
23assessment year, homestead property has a pro-rata valuation
24under Section 9-180 resulting in an increase in the assessed
25valuation, a reduction in equalized assessed valuation equal to
26the increase in equalized assessed value of the property for

 

 

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1the year of the pro-rata valuation above the equalized assessed
2value of the property for 1977 shall be applied to the property
3on a proportionate basis for the period the property qualified
4as homestead property during the assessment year. The maximum
5proportionate homestead exemption shall not exceed the maximum
6homestead exemption allowed in the county under this Section
7divided by 365 and multiplied by the number of days the
8property qualified as homestead property.
9    (d-1) In counties with 3,000,000 or more inhabitants, where
10the chief county assessment officer provides a notice of
11discovery, if a property is not occupied by its owner as a
12principal residence as of January 1 of the current tax year,
13then the property owner shall notify the chief county
14assessment officer of that fact on a form prescribed by the
15chief county assessment officer. That notice must be received
16by the chief county assessment officer on or before March 1 of
17the collection year. If mailed, the form shall be sent by
18certified mail, return receipt requested. If the form is
19provided in person, the chief county assessment officer shall
20provide a date stamped copy of the notice. Failure to provide
21timely notice pursuant to this subsection (d-1) shall result in
22the exemption being treated as an erroneous exemption. Upon
23timely receipt of the notice for the current tax year, no
24exemption shall be applied to the property for the current tax
25year. If the exemption is not removed upon timely receipt of
26the notice by the chief assessment officer, then the error is

 

 

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1considered granted as a result of a clerical error or omission
2on the part of the chief county assessment officer as described
3in subsection (h) of Section 9-275, and the property owner
4shall not be liable for the payment of interest and penalties
5due to the erroneous exemption for the current tax year for
6which the notice was filed after the date that notice was
7timely received pursuant to this subsection. Notice provided
8under this subsection shall not constitute a defense or amnesty
9for prior year erroneous exemptions.
10    For the purposes of this subsection (d-1):
11    "Collection year" means the year in which the first and
12second installment of the current tax year is billed.
13    "Current tax year" means the year prior to the collection
14year.
15    (e) The chief county assessment officer may, when
16considering whether to grant a leasehold exemption under this
17Section, require the following conditions to be met:
18        (1) that a notarized application for the exemption,
19    signed by both the owner and the lessee of the property,
20    must be submitted each year during the application period
21    in effect for the county in which the property is located;
22        (2) that a copy of the lease must be filed with the
23    chief county assessment officer by the owner of the
24    property at the time the notarized application is
25    submitted;
26        (3) that the lease must expressly state that the lessee

 

 

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1    is liable for the payment of property taxes; and
2        (4) that the lease must include the following language
3    in substantially the following form:
4            "Lessee shall be liable for the payment of real
5        estate taxes with respect to the residence in
6        accordance with the terms and conditions of Section
7        15-175 of the Property Tax Code (35 ILCS 200/15-175).
8        The permanent real estate index number for the premises
9        is (insert number), and, according to the most recent
10        property tax bill, the current amount of real estate
11        taxes associated with the premises is (insert amount)
12        per year. The parties agree that the monthly rent set
13        forth above shall be increased or decreased pro rata
14        (effective January 1 of each calendar year) to reflect
15        any increase or decrease in real estate taxes. Lessee
16        shall be deemed to be satisfying Lessee's liability for
17        the above mentioned real estate taxes with the monthly
18        rent payments as set forth above (or increased or
19        decreased as set forth herein).".
20    In addition, if there is a change in lessee, or if the
21lessee vacates the property, then the chief county assessment
22officer may require the owner of the property to notify the
23chief county assessment officer of that change.
24    This subsection (e) does not apply to leasehold interests
25in property owned by a municipality.
26    (f) "Homestead property" under this Section includes

 

 

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1residential property that is occupied by its owner or owners as
2his or their principal dwelling place, or that is a leasehold
3interest on which a single family residence is situated, which
4is occupied as a residence by a person who has an ownership
5interest therein, legal or equitable or as a lessee, and on
6which the person is liable for the payment of property taxes.
7For land improved with an apartment building owned and operated
8as a cooperative or a building which is a life care facility as
9defined in Section 15-170 and considered to be a cooperative
10under Section 15-170, the maximum reduction from the equalized
11assessed value shall be limited to the increase in the value
12above the equalized assessed value of the property for 1977, up
13to the maximum reduction set forth above, multiplied by the
14number of apartments or units occupied by a person or persons
15who is liable, by contract with the owner or owners of record,
16for paying property taxes on the property and is an owner of
17record of a legal or equitable interest in the cooperative
18apartment building, other than a leasehold interest. For
19purposes of this Section, the term "life care facility" has the
20meaning stated in Section 15-170.
21    "Household", as used in this Section, means the owner, the
22spouse of the owner, and all persons using the residence of the
23owner as their principal place of residence.
24    "Household income", as used in this Section, means the
25combined income of the members of a household for the calendar
26year preceding the taxable year.

 

 

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1    "Income", as used in this Section, has the same meaning as
2provided in Section 3.07 of the Senior Citizens and Persons
3with Disabilities Property Tax Relief Act, except that "income"
4does not include veteran's benefits.
5    (g) In a cooperative where a homestead exemption has been
6granted, the cooperative association or its management firm
7shall credit the savings resulting from that exemption only to
8the apportioned tax liability of the owner who qualified for
9the exemption. Any person who willfully refuses to so credit
10the savings shall be guilty of a Class B misdemeanor.
11    (h) Where married persons maintain and reside in separate
12residences qualifying as homestead property, each residence
13shall receive 50% of the total reduction in equalized assessed
14valuation provided by this Section.
15    (i) In all counties, the assessor or chief county
16assessment officer may determine the eligibility of
17residential property to receive the homestead exemption and the
18amount of the exemption by application, visual inspection,
19questionnaire or other reasonable methods. The determination
20shall be made in accordance with guidelines established by the
21Department, provided that the taxpayer applying for an
22additional general exemption under this Section shall submit to
23the chief county assessment officer an application with an
24affidavit of the applicant's total household income, age,
25marital status (and, if married, the name and address of the
26applicant's spouse, if known), and principal dwelling place of

 

 

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1members of the household on January 1 of the taxable year. The
2Department shall issue guidelines establishing a method for
3verifying the accuracy of the affidavits filed by applicants
4under this paragraph. The applications shall be clearly marked
5as applications for the Additional General Homestead
6Exemption.
7    (i-5) This subsection (i-5) applies to counties with
83,000,000 or more inhabitants. In the event of a sale of
9homestead property, the homestead exemption shall remain in
10effect for the remainder of the assessment year of the sale.
11Upon receipt of a transfer declaration transmitted by the
12recorder pursuant to Section 31-30 of the Real Estate Transfer
13Tax Law for property receiving an exemption under this Section,
14the assessor shall mail a notice and forms to the new owner of
15the property providing information pertaining to the rules and
16applicable filing periods for applying or reapplying for
17homestead exemptions under this Code for which the property may
18be eligible. If the new owner fails to apply or reapply for a
19homestead exemption during the applicable filing period or the
20property no longer qualifies for an existing homestead
21exemption, the assessor shall cancel such exemption for any
22ensuing assessment year.
23    (j) In counties with fewer than 3,000,000 inhabitants, in
24the event of a sale of homestead property the homestead
25exemption shall remain in effect for the remainder of the
26assessment year of the sale. The assessor or chief county

 

 

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1assessment officer may require the new owner of the property to
2apply for the homestead exemption for the following assessment
3year.
4    (k) Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
899-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
98-25-17.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.