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Full Text of SB0473  100th General Assembly

SB0473eng 100TH GENERAL ASSEMBLY



 


 
SB0473 EngrossedLRB100 05138 HLH 15148 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, 15-172, 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 and thereafter, the maximum
8reduction is $5,000 in all counties. For taxable 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.
11    For land improved with an apartment building owned and
12operated as a cooperative, the maximum reduction from the value
13of the property, as equalized by the Department, shall be
14multiplied by the number of apartments or units occupied by a
15person 65 years of age or older who is liable, by contract with
16the owner or owners of record, for paying property taxes on the
17property and is an owner of record of a legal or equitable
18interest in the cooperative apartment building, other than a
19leasehold interest. For land improved with a life care
20facility, the maximum reduction from the value of the property,
21as equalized by the Department, shall be multiplied by the
22number of apartments or units occupied by persons 65 years of
23age or older, irrespective of any legal, equitable, or
24leasehold interest in the facility, who are liable, under a
25contract with the owner or owners of record of the facility,
26for paying property taxes on the property. In a cooperative or

 

 

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

 

 

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1    Beginning with assessment year 2003, for taxes payable in
22004, property that is first occupied as a residence after
3January 1 of any assessment year by a person who is eligible
4for the senior citizens homestead exemption under this Section
5must be granted a pro-rata exemption for the assessment year.
6The amount of the pro-rata exemption is the exemption allowed
7in the county under this Section divided by 365 and multiplied
8by the number of days during the assessment year the property
9is occupied as a residence by a person eligible for the
10exemption under this Section. The chief county assessment
11officer must adopt reasonable procedures to establish
12eligibility for this pro-rata exemption.
13    The assessor or chief county assessment officer may
14determine the eligibility of a life care facility to receive
15the benefits provided by this Section, by affidavit,
16application, visual inspection, questionnaire or other
17reasonable methods in order to insure that the tax savings
18resulting from the exemption are credited by the management
19firm to the apportioned tax liability of each qualifying
20resident. The assessor may request reasonable proof that the
21management firm has so credited the exemption.
22    The chief county assessment officer of each county with
23less than 3,000,000 inhabitants shall provide to each person
24allowed a homestead exemption under this Section a form to
25designate any other person to receive a duplicate of any notice
26of delinquency in the payment of taxes assessed and levied

 

 

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

 

 

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1a person has been granted a homestead exemption under this
2Section, the person qualifying need not reapply for the
3exemption.
4    In counties with less than 3,000,000 inhabitants, if the
5assessor or chief county assessment officer requires annual
6application for verification of eligibility for an exemption
7once granted under this Section, the application shall be
8mailed to the taxpayer.
9    The assessor or chief county assessment officer shall
10notify each person who qualifies for an exemption under this
11Section that the person may also qualify for deferral of real
12estate taxes under the Senior Citizens Real Estate Tax Deferral
13Act. The notice shall set forth the qualifications needed for
14deferral of real estate taxes, the address and telephone number
15of county collector, and a statement that applications for
16deferral of real estate taxes may be obtained from the county
17collector.
18    Notwithstanding Sections 6 and 8 of the State Mandates Act,
19no reimbursement by the State is required for the
20implementation of any mandate created by this Section.
21(Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,
22eff. 7-16-14; 99-180, eff. 7-29-15.)
 
23    (35 ILCS 200/15-172)
24    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
25Exemption.

 

 

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1    (a) This Section may be cited as the Senior Citizens
2Assessment Freeze Homestead Exemption.
3    (b) As used in this Section:
4    "Applicant" means an individual who has filed an
5application under this Section.
6    "Base amount" means the base year equalized assessed value
7of the residence plus the first year's equalized assessed value
8of any added improvements which increased the assessed value of
9the residence after the base year.
10    "Base year" means the taxable year prior to the taxable
11year for which the applicant first qualifies and applies for
12the exemption provided that in the prior taxable year the
13property was improved with a permanent structure that was
14occupied as a residence by the applicant who was liable for
15paying real property taxes on the property and who was either
16(i) an owner of record of the property or had legal or
17equitable interest in the property as evidenced by a written
18instrument or (ii) had a legal or equitable interest as a
19lessee in the parcel of property that was single family
20residence. If in any subsequent taxable year for which the
21applicant applies and qualifies for the exemption the equalized
22assessed value of the residence is less than the equalized
23assessed value in the existing base year (provided that such
24equalized assessed value is not based on an assessed value that
25results from a temporary irregularity in the property that
26reduces the assessed value for one or more taxable years), then

 

 

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1that subsequent taxable year shall become the base year until a
2new base year is established under the terms of this paragraph.
3For taxable year 1999 only, the Chief County Assessment Officer
4shall review (i) all taxable years for which the applicant
5applied and qualified for the exemption and (ii) the existing
6base year. The assessment officer shall select as the new base
7year the year with the lowest equalized assessed value. An
8equalized assessed value that is based on an assessed value
9that results from a temporary irregularity in the property that
10reduces the assessed value for one or more taxable years shall
11not be considered the lowest equalized assessed value. The
12selected year shall be the base year for taxable year 1999 and
13thereafter until a new base year is established under the terms
14of this paragraph.
15    "Chief County Assessment Officer" means the County
16Assessor or Supervisor of Assessments of the county in which
17the property is located.
18    "Equalized assessed value" means the assessed value as
19equalized by the Illinois Department of Revenue.
20    "Household" means the applicant, the spouse of the
21applicant, and all persons using the residence of the applicant
22as their principal place of residence.
23    "Household income" means the combined income of the members
24of a household for the calendar year preceding the taxable
25year.
26    "Income" has the same meaning as provided in Section 3.07

 

 

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1of the Senior Citizens and Persons with Disabilities Property
2Tax Relief Act, except that, beginning in assessment year 2001,
3"income" does not include veteran's benefits.
4    "Internal Revenue Code of 1986" means the United States
5Internal Revenue Code of 1986 or any successor law or laws
6relating to federal income taxes in effect for the year
7preceding the taxable year.
8    "Life care facility that qualifies as a cooperative" means
9a facility as defined in Section 2 of the Life Care Facilities
10Act.
11    "Maximum income limitation" means:
12        (1) $35,000 prior to taxable year 1999;
13        (2) $40,000 in taxable years 1999 through 2003;
14        (3) $45,000 in taxable years 2004 through 2005;
15        (4) $50,000 in taxable years 2006 and 2007; and
16        (5) $55,000 in taxable years 2008 through 2016; and
17    year 2008 and thereafter.
18        (6) $65,000 in taxable years 2017 and thereafter.
19    "Residence" means the principal dwelling place and
20appurtenant structures used for residential purposes in this
21State occupied on January 1 of the taxable year by a household
22and so much of the surrounding land, constituting the parcel
23upon which the dwelling place is situated, as is used for
24residential purposes. If the Chief County Assessment Officer
25has established a specific legal description for a portion of
26property constituting the residence, then that portion of

 

 

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1property shall be deemed the residence for the purposes of this
2Section.
3    "Taxable year" means the calendar year during which ad
4valorem property taxes payable in the next succeeding year are
5levied.
6    (c) Beginning in taxable year 1994, a senior citizens
7assessment freeze homestead exemption is granted for real
8property that is improved with a permanent structure that is
9occupied as a residence by an applicant who (i) is 65 years of
10age or older during the taxable year, (ii) has a household
11income that does not exceed the maximum income limitation,
12(iii) is liable for paying real property taxes on the property,
13and (iv) is an owner of record of the property or has a legal or
14equitable interest in the property as evidenced by a written
15instrument. This homestead exemption shall also apply to a
16leasehold interest in a parcel of property improved with a
17permanent structure that is a single family residence that is
18occupied as a residence by a person who (i) is 65 years of age
19or older during the taxable year, (ii) has a household income
20that does not exceed the maximum income limitation, (iii) has a
21legal or equitable ownership interest in the property as
22lessee, and (iv) is liable for the payment of real property
23taxes on that property.
24    In counties of 3,000,000 or more inhabitants, the amount of
25the exemption for all taxable years is the equalized assessed
26value of the residence in the taxable year for which

 

 

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1application is made minus the base amount. In all other
2counties, the amount of the exemption is as follows: (i)
3through taxable year 2005 and for taxable year 2007 and
4thereafter, the amount of this exemption shall be the equalized
5assessed value of the residence in the taxable year for which
6application is made minus the base amount; and (ii) for taxable
7year 2006, the amount of the exemption is as follows:
8        (1) For an applicant who has a household income of
9    $45,000 or less, the amount of the exemption is the
10    equalized assessed value of the residence in the taxable
11    year for which application is made minus the base amount.
12        (2) For an applicant who has a household income
13    exceeding $45,000 but not exceeding $46,250, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is made
16    minus the base amount (ii) multiplied by 0.8.
17        (3) For an applicant who has a household income
18    exceeding $46,250 but not exceeding $47,500, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is made
21    minus the base amount (ii) multiplied by 0.6.
22        (4) For an applicant who has a household income
23    exceeding $47,500 but not exceeding $48,750, the amount of
24    the exemption is (i) the equalized assessed value of the
25    residence in the taxable year for which application is made
26    minus the base amount (ii) multiplied by 0.4.

 

 

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1        (5) For an applicant who has a household income
2    exceeding $48,750 but not exceeding $50,000, the amount of
3    the exemption is (i) the equalized assessed value of the
4    residence in the taxable year for which application is made
5    minus the base amount (ii) multiplied by 0.2.
6    When the applicant is a surviving spouse of an applicant
7for a prior year for the same residence for which an exemption
8under this Section has been granted, the base year and base
9amount for that residence are the same as for the applicant for
10the prior year.
11    Each year at the time the assessment books are certified to
12the County Clerk, the Board of Review or Board of Appeals shall
13give to the County Clerk a list of the assessed values of
14improvements on each parcel qualifying for this exemption that
15were added after the base year for this parcel and that
16increased the assessed value of the property.
17    In the case of land improved with an apartment building
18owned and operated as a cooperative or a building that is a
19life care facility that qualifies as a cooperative, the maximum
20reduction from the equalized assessed value of the property is
21limited to the sum of the reductions calculated for each unit
22occupied as a residence by a person or persons (i) 65 years of
23age or older, (ii) with a household income that does not exceed
24the maximum income limitation, (iii) who is liable, by contract
25with the owner or owners of record, for paying real property
26taxes on the property, and (iv) who is an owner of record of a

 

 

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1legal or equitable interest in the cooperative apartment
2building, other than a leasehold interest. In the instance of a
3cooperative where a homestead exemption has been granted under
4this Section, the cooperative association or its management
5firm shall credit the savings resulting from that exemption
6only to the apportioned tax liability of the owner who
7qualified for the exemption. Any person who willfully refuses
8to credit that savings to an owner who qualifies for the
9exemption is guilty of a Class B misdemeanor.
10    When a homestead exemption has been granted under this
11Section and an applicant then becomes a resident of a facility
12licensed under the Assisted Living and Shared Housing Act, the
13Nursing Home Care Act, the Specialized Mental Health
14Rehabilitation Act of 2013, the ID/DD Community Care Act, or
15the MC/DD Act, the exemption shall be granted in subsequent
16years so long as the residence (i) continues to be occupied by
17the qualified applicant's spouse or (ii) if remaining
18unoccupied, is still owned by the qualified applicant for the
19homestead exemption.
20    Beginning January 1, 1997, when an individual dies who
21would have qualified for an exemption under this Section, and
22the surviving spouse does not independently qualify for this
23exemption because of age, the exemption under this Section
24shall be granted to the surviving spouse for the taxable year
25preceding and the taxable year of the death, provided that,
26except for age, the surviving spouse meets all other

 

 

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1qualifications for the granting of this exemption for those
2years.
3    When married persons maintain separate residences, the
4exemption provided for in this Section may be claimed by only
5one of such persons and for only one residence.
6    For taxable year 1994 only, in counties having less than
73,000,000 inhabitants, to receive the exemption, a person shall
8submit an application by February 15, 1995 to the Chief County
9Assessment Officer of the county in which the property is
10located. In counties having 3,000,000 or more inhabitants, for
11taxable year 1994 and all subsequent taxable years, to receive
12the exemption, a person may submit an application to the Chief
13County Assessment Officer of the county in which the property
14is located during such period as may be specified by the Chief
15County Assessment Officer. The Chief County Assessment Officer
16in counties of 3,000,000 or more inhabitants shall annually
17give notice of the application period by mail or by
18publication. In counties having less than 3,000,000
19inhabitants, beginning with taxable year 1995 and thereafter,
20to receive the exemption, a person shall submit an application
21by July 1 of each taxable year to the Chief County Assessment
22Officer of the county in which the property is located. A
23county may, by ordinance, establish a date for submission of
24applications that is different than July 1. The applicant shall
25submit with the application an affidavit of the applicant's
26total household income, age, marital status (and if married the

 

 

SB0473 Engrossed- 15 -LRB100 05138 HLH 15148 b

1name and address of the applicant's spouse, if known), and
2principal dwelling place of members of the household on January
31 of the taxable year. The Department shall establish, by rule,
4a method for verifying the accuracy of affidavits filed by
5applicants under this Section, and the Chief County Assessment
6Officer may conduct audits of any taxpayer claiming an
7exemption under this Section to verify that the taxpayer is
8eligible to receive the exemption. Each application shall
9contain or be verified by a written declaration that it is made
10under the penalties of perjury. A taxpayer's signing a
11fraudulent application under this Act is perjury, as defined in
12Section 32-2 of the Criminal Code of 2012. The applications
13shall be clearly marked as applications for the Senior Citizens
14Assessment Freeze Homestead Exemption and must contain a notice
15that any taxpayer who receives the exemption is subject to an
16audit by the Chief County Assessment Officer.
17    Notwithstanding any other provision to the contrary, in
18counties having fewer than 3,000,000 inhabitants, if an
19applicant fails to file the application required by this
20Section in a timely manner and this failure to file is due to a
21mental or physical condition sufficiently severe so as to
22render the applicant incapable of filing the application in a
23timely manner, the Chief County Assessment Officer may extend
24the filing deadline for a period of 30 days after the applicant
25regains the capability to file the application, but in no case
26may the filing deadline be extended beyond 3 months of the

 

 

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1original filing deadline. In order to receive the extension
2provided in this paragraph, the applicant shall provide the
3Chief County Assessment Officer with a signed statement from
4the applicant's physician, advanced practice nurse, or
5physician assistant stating the nature and extent of the
6condition, that, in the physician's, advanced practice
7nurse's, or physician assistant's opinion, the condition was so
8severe that it rendered the applicant incapable of filing the
9application in a timely manner, and the date on which the
10applicant regained the capability to file the application.
11    Beginning January 1, 1998, notwithstanding any other
12provision to the contrary, in counties having fewer than
133,000,000 inhabitants, if an applicant fails to file the
14application required by this Section in a timely manner and
15this failure to file is due to a mental or physical condition
16sufficiently severe so as to render the applicant incapable of
17filing the application in a timely manner, the Chief County
18Assessment Officer may extend the filing deadline for a period
19of 3 months. In order to receive the extension provided in this
20paragraph, the applicant shall provide the Chief County
21Assessment Officer with a signed statement from the applicant's
22physician, advanced practice nurse, or physician assistant
23stating the nature and extent of the condition, and that, in
24the physician's, advanced practice nurse's, or physician
25assistant's opinion, the condition was so severe that it
26rendered the applicant incapable of filing the application in a

 

 

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1timely manner.
2    In counties having less than 3,000,000 inhabitants, if an
3applicant was denied an exemption in taxable year 1994 and the
4denial occurred due to an error on the part of an assessment
5official, or his or her agent or employee, then beginning in
6taxable year 1997 the applicant's base year, for purposes of
7determining the amount of the exemption, shall be 1993 rather
8than 1994. In addition, in taxable year 1997, the applicant's
9exemption shall also include an amount equal to (i) the amount
10of any exemption denied to the applicant in taxable year 1995
11as a result of using 1994, rather than 1993, as the base year,
12(ii) the amount of any exemption denied to the applicant in
13taxable year 1996 as a result of using 1994, rather than 1993,
14as the base year, and (iii) the amount of the exemption
15erroneously denied for taxable year 1994.
16    For purposes of this Section, a person who will be 65 years
17of age during the current taxable year shall be eligible to
18apply for the homestead exemption during that taxable year.
19Application shall be made during the application period in
20effect for the county of his or her residence.
21    The Chief County Assessment Officer may determine the
22eligibility of a life care facility that qualifies as a
23cooperative to receive the benefits provided by this Section by
24use of an affidavit, application, visual inspection,
25questionnaire, or other reasonable method in order to insure
26that the tax savings resulting from the exemption are credited

 

 

SB0473 Engrossed- 18 -LRB100 05138 HLH 15148 b

1by the management firm to the apportioned tax liability of each
2qualifying resident. The Chief County Assessment Officer may
3request reasonable proof that the management firm has so
4credited that exemption.
5    Except as provided in this Section, all information
6received by the chief county assessment officer or the
7Department from applications filed under this Section, or from
8any investigation conducted under the provisions of this
9Section, shall be confidential, except for official purposes or
10pursuant to official procedures for collection of any State or
11local tax or enforcement of any civil or criminal penalty or
12sanction imposed by this Act or by any statute or ordinance
13imposing a State or local tax. Any person who divulges any such
14information in any manner, except in accordance with a proper
15judicial order, is guilty of a Class A misdemeanor.
16    Nothing contained in this Section shall prevent the
17Director or chief county assessment officer from publishing or
18making available reasonable statistics concerning the
19operation of the exemption contained in this Section in which
20the contents of claims are grouped into aggregates in such a
21way that information contained in any individual claim shall
22not be disclosed.
23    Notwithstanding any other provision of law, for taxable
24year 2017 and thereafter, in counties of 3,000,000 or more
25inhabitants, the amount of the exemption shall be the greater
26of (i) the amount of the exemption otherwise calculated under

 

 

SB0473 Engrossed- 19 -LRB100 05138 HLH 15148 b

1this Section or (ii) $2,000.
2    (d) Each Chief County Assessment Officer shall annually
3publish a notice of availability of the exemption provided
4under this Section. The notice shall be published at least 60
5days but no more than 75 days prior to the date on which the
6application must be submitted to the Chief County Assessment
7Officer of the county in which the property is located. The
8notice shall appear in a newspaper of general circulation in
9the county.
10    Notwithstanding Sections 6 and 8 of the State Mandates Act,
11no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
1499-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
157-28-16.)
 
16    (35 ILCS 200/15-175)
17    Sec. 15-175. General homestead exemption.
18    (a) Except as provided in Sections 15-176 and 15-177,
19homestead property is entitled to an annual homestead exemption
20limited, except as described here with relation to
21cooperatives, to a reduction in the equalized assessed value of
22homestead property equal to the increase in equalized assessed
23value for the current assessment year above the equalized
24assessed value of the property for 1977, up to the maximum
25reduction set forth below. If however, the 1977 equalized

 

 

SB0473 Engrossed- 20 -LRB100 05138 HLH 15148 b

1assessed value upon which taxes were paid is subsequently
2determined by local assessing officials, the Property Tax
3Appeal Board, or a court to have been excessive, the equalized
4assessed value which should have been placed on the property
5for 1977 shall be used to determine the amount of the
6exemption.
7    (b) Except as provided in Section 15-176, the maximum
8reduction before taxable year 2004 shall be $4,500 in counties
9with 3,000,000 or more inhabitants and $3,500 in all other
10counties. Except as provided in Sections 15-176 and 15-177, for
11taxable years 2004 through 2007, the maximum reduction shall be
12$5,000, for taxable year 2008, the maximum reduction is $5,500,
13and, for taxable years 2009 through 2011, the maximum reduction
14is $6,000 in all counties. For taxable years 2012 through 2016
15and thereafter, the maximum reduction is $7,000 in counties
16with 3,000,000 or more inhabitants and $6,000 in all other
17counties. For taxable years 2017 and thereafter, the maximum
18reduction is $10,000 in counties with 3,000,000 or more
19inhabitants and $6,000 in all other counties. If a county has
20elected to subject itself to the provisions of Section 15-176
21as provided in subsection (k) of that Section, then, for the
22first taxable year only after the provisions of Section 15-176
23no longer apply, for owners who, for the taxable year, have not
24been granted a senior citizens assessment freeze homestead
25exemption under Section 15-172 or a long-time occupant
26homestead exemption under Section 15-177, there shall be an

 

 

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1additional exemption of $5,000 for owners with a household
2income of $30,000 or less.
3    (c) In counties with fewer than 3,000,000 inhabitants, if,
4based on the most recent assessment, the equalized assessed
5value of the homestead property for the current assessment year
6is greater than the equalized assessed value of the property
7for 1977, the owner of the property shall automatically receive
8the exemption granted under this Section in an amount equal to
9the increase over the 1977 assessment up to the maximum
10reduction set forth in this Section.
11    (d) If in any assessment year beginning with the 2000
12assessment year, homestead property has a pro-rata valuation
13under Section 9-180 resulting in an increase in the assessed
14valuation, a reduction in equalized assessed valuation equal to
15the increase in equalized assessed value of the property for
16the year of the pro-rata valuation above the equalized assessed
17value of the property for 1977 shall be applied to the property
18on a proportionate basis for the period the property qualified
19as homestead property during the assessment year. The maximum
20proportionate homestead exemption shall not exceed the maximum
21homestead exemption allowed in the county under this Section
22divided by 365 and multiplied by the number of days the
23property qualified as homestead property.
24    (d-1) In counties with 3,000,000 or more inhabitants, where
25the chief county assessment officer provides a notice of
26discovery, if a property is not occupied by its owner as a

 

 

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1principal residence as of January 1 of the current tax year,
2then the property owner shall notify the chief county
3assessment officer of that fact on a form prescribed by the
4chief county assessment officer. That notice must be received
5by the chief county assessment officer on or before March 1 of
6the collection year. If mailed, the form shall be sent by
7certified mail, return receipt requested. If the form is
8provided in person, the chief county assessment officer shall
9provide a date stamped copy of the notice. Failure to provide
10timely notice pursuant to this subsection (d-1) shall result in
11the exemption being treated as an erroneous exemption. Upon
12timely receipt of the notice for the current tax year, no
13exemption shall be applied to the property for the current tax
14year. If the exemption is not removed upon timely receipt of
15the notice by the chief assessment officer, then the error is
16considered granted as a result of a clerical error or omission
17on the part of the chief county assessment officer as described
18in subsection (h) of Section 9-275, and the property owner
19shall not be liable for the payment of interest and penalties
20due to the erroneous exemption for the current tax year for
21which the notice was filed after the date that notice was
22timely received pursuant to this subsection. Notice provided
23under this subsection shall not constitute a defense or amnesty
24for prior year erroneous exemptions.
25    For the purposes of this subsection (d-1):
26    "Collection year" means the year in which the first and

 

 

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1second installment of the current tax year is billed.
2    "Current tax year" means the year prior to the collection
3year.
4    (e) The chief county assessment officer may, when
5considering whether to grant a leasehold exemption under this
6Section, require the following conditions to be met:
7        (1) that a notarized application for the exemption,
8    signed by both the owner and the lessee of the property,
9    must be submitted each year during the application period
10    in effect for the county in which the property is located;
11        (2) that a copy of the lease must be filed with the
12    chief county assessment officer by the owner of the
13    property at the time the notarized application is
14    submitted;
15        (3) that the lease must expressly state that the lessee
16    is liable for the payment of property taxes; and
17        (4) that the lease must include the following language
18    in substantially the following form:
19            "Lessee shall be liable for the payment of real
20        estate taxes with respect to the residence in
21        accordance with the terms and conditions of Section
22        15-175 of the Property Tax Code (35 ILCS 200/15-175).
23        The permanent real estate index number for the premises
24        is (insert number), and, according to the most recent
25        property tax bill, the current amount of real estate
26        taxes associated with the premises is (insert amount)

 

 

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1        per year. The parties agree that the monthly rent set
2        forth above shall be increased or decreased pro rata
3        (effective January 1 of each calendar year) to reflect
4        any increase or decrease in real estate taxes. Lessee
5        shall be deemed to be satisfying Lessee's liability for
6        the above mentioned real estate taxes with the monthly
7        rent payments as set forth above (or increased or
8        decreased as set forth herein).".
9    In addition, if there is a change in lessee, or if the
10lessee vacates the property, then the chief county assessment
11officer may require the owner of the property to notify the
12chief county assessment officer of that change.
13    This subsection (e) does not apply to leasehold interests
14in property owned by a municipality.
15    (f) "Homestead property" under this Section includes
16residential property that is occupied by its owner or owners as
17his or their principal dwelling place, or that is a leasehold
18interest on which a single family residence is situated, which
19is occupied as a residence by a person who has an ownership
20interest therein, legal or equitable or as a lessee, and on
21which the person is liable for the payment of property taxes.
22For land improved with an apartment building owned and operated
23as a cooperative or a building which is a life care facility as
24defined in Section 15-170 and considered to be a cooperative
25under Section 15-170, the maximum reduction from the equalized
26assessed value shall be limited to the increase in the value

 

 

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1above the equalized assessed value of the property for 1977, up
2to the maximum reduction set forth above, multiplied by the
3number of apartments or units occupied by a person or persons
4who is liable, by contract with the owner or owners of record,
5for paying property taxes on the property and is an owner of
6record of a legal or equitable interest in the cooperative
7apartment building, other than a leasehold interest. For
8purposes of this Section, the term "life care facility" has the
9meaning stated in Section 15-170.
10    "Household", as used in this Section, means the owner, the
11spouse of the owner, and all persons using the residence of the
12owner as their principal place of residence.
13    "Household income", as used in this Section, means the
14combined income of the members of a household for the calendar
15year preceding the taxable year.
16    "Income", as used in this Section, has the same meaning as
17provided in Section 3.07 of the Senior Citizens and Persons
18with Disabilities Property Tax Relief Act, except that "income"
19does not include veteran's benefits.
20    (g) In a cooperative where a homestead exemption has been
21granted, the cooperative association or its management firm
22shall credit the savings resulting from that exemption only to
23the apportioned tax liability of the owner who qualified for
24the exemption. Any person who willfully refuses to so credit
25the savings shall be guilty of a Class B misdemeanor.
26    (h) Where married persons maintain and reside in separate

 

 

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1residences qualifying as homestead property, each residence
2shall receive 50% of the total reduction in equalized assessed
3valuation provided by this Section.
4    (i) In all counties, the assessor or chief county
5assessment officer may determine the eligibility of
6residential property to receive the homestead exemption and the
7amount of the exemption by application, visual inspection,
8questionnaire or other reasonable methods. The determination
9shall be made in accordance with guidelines established by the
10Department, provided that the taxpayer applying for an
11additional general exemption under this Section shall submit to
12the chief county assessment officer an application with an
13affidavit of the applicant's total household income, age,
14marital status (and, if married, the name and address of the
15applicant's spouse, if known), and principal dwelling place of
16members of the household on January 1 of the taxable year. The
17Department shall issue guidelines establishing a method for
18verifying the accuracy of the affidavits filed by applicants
19under this paragraph. The applications shall be clearly marked
20as applications for the Additional General Homestead
21Exemption.
22    (i-5) This subsection (i-5) applies to counties with
233,000,000 or more inhabitants. In the event of a sale of
24homestead property, the homestead exemption shall remain in
25effect for the remainder of the assessment year of the sale.
26Upon receipt of a transfer declaration transmitted by the

 

 

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1recorder pursuant to Section 31-30 of the Real Estate Transfer
2Tax Law for property receiving an exemption under this Section,
3the assessor shall mail a notice and forms to the new owner of
4the property providing information pertaining to the rules and
5applicable filing periods for applying or reapplying for
6homestead exemptions under this Code for which the property may
7be eligible. If the new owner fails to apply or reapply for a
8homestead exemption during the applicable filing period or the
9property no longer qualifies for an existing homestead
10exemption, the assessor shall cancel such exemption for any
11ensuing assessment year.
12    (j) In counties with fewer than 3,000,000 inhabitants, in
13the event of a sale of homestead property the homestead
14exemption shall remain in effect for the remainder of the
15assessment year of the sale. The assessor or chief county
16assessment officer may require the new owner of the property to
17apply for the homestead exemption for the following assessment
18year.
19    (k) Notwithstanding Sections 6 and 8 of the State Mandates
20Act, no reimbursement by the State is required for the
21implementation of any mandate created by this Section.
22(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
23eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
2499-851, eff. 8-19-16.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.