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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0905
Introduced 2/7/2007, by Rep. Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
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35 ILCS 200/15-170 |
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35 ILCS 200/15-175 |
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Amends the Property Tax Code. Provides that the maximum reduction under the Senior Citizen Homestead Exemption shall be $4,000 for 2008, $4,500 for 2009, and $5,000 for 2010 and thereafter in all counties. Provides that the maximum reduction under the General Homestead Exemption shall be $5,500 for 2007, $6,000 for 2008, $6,500 for 2009, and $7,000 for 2010 and thereafter in all counties. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing |
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| Sections 15-170 and 15-175 as follows:
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| (35 ILCS 200/15-170)
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| Sec. 15-170. Senior Citizens Homestead Exemption. An |
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| annual homestead
exemption limited, except as described here |
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| with relation to cooperatives or
life care facilities, to a
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| maximum reduction set forth below from the property's value, as |
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| equalized or
assessed by the Department, is granted for |
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| property that is occupied as a
residence by a person 65 years |
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| of age or older who is liable for paying real
estate taxes on |
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| the property and is an owner of record of the property or has a
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| legal or equitable interest therein as evidenced by a written |
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| instrument,
except for a leasehold interest, other than a |
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| leasehold interest of land on
which a single family residence |
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| is located, which is occupied as a residence by
a person 65 |
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| years or older who has an ownership interest therein, legal,
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| equitable or as a lessee, and on which he or she is liable for |
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| the payment
of property taxes. Before taxable year 2004, the |
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| maximum reduction shall be $2,500 in counties with
3,000,000 or |
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| more inhabitants and $2,000 in all other counties. For taxable
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| years 2004 through 2005, the maximum reduction shall be $3,000 |
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| in all counties. For taxable years 2006 and 2007
thereafter , |
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| the maximum reduction shall be $3,500 in all counties and shall |
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| be $4,000 for 2008, $4,500 for 2009, and $5,000 for 2010 and |
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| thereafter .
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| For land
improved with an apartment building owned and |
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| operated as a cooperative, the maximum reduction from the value |
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| of the property, as
equalized
by the Department, shall be |
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| multiplied by the number of apartments or units
occupied by a |
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| person 65 years of age or older who is liable, by contract with
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| the owner or owners of record, for paying property taxes on the |
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| property and
is an owner of record of a legal or equitable |
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| interest in the cooperative
apartment building, other than a |
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| leasehold interest. For land improved with
a life care |
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| facility, the maximum reduction from the value of the property, |
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| as
equalized by the Department, shall be multiplied by the |
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| number of apartments or
units occupied by persons 65 years of |
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| age or older, irrespective of any legal,
equitable, or |
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| leasehold interest in the facility, who are liable, under a
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| contract with the owner or owners of record of the facility, |
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| for paying
property taxes on the property. In a
cooperative or |
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| a life care facility where a
homestead exemption has been |
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| granted, the cooperative association or the
management firm of |
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| the cooperative or facility shall credit the savings
resulting |
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| from that exemption only to
the apportioned tax liability of |
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| the owner or resident who qualified for
the exemption.
Any |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| person who willfully refuses to so credit the savings shall be |
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| guilty of a
Class B misdemeanor. Under this Section and |
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| Sections 15-175 and 15-176, "life care
facility" means a |
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| facility as defined in Section 2 of the Life Care Facilities
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| Act, with which the applicant for the homestead exemption has a |
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| life care
contract as defined in that Act.
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| When a homestead exemption has been granted under this |
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| Section and the person
qualifying subsequently becomes a |
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| resident of a facility licensed under the
Nursing Home Care |
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| Act, the exemption shall continue so long as the residence
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| continues to be occupied by the qualifying person's spouse if |
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| the spouse is 65
years of age or older, or if the residence |
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| remains unoccupied but is still
owned by the person qualified |
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| for the homestead exemption.
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| A person who will be 65 years of age
during the current |
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| assessment year
shall
be eligible to apply for the homestead |
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| exemption during that assessment
year.
Application shall be |
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| made during the application period in effect for the
county of |
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| his residence.
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| Beginning with assessment year 2003, for taxes payable in |
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| 2004,
property
that is first occupied as a residence after |
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| January 1 of any assessment year by
a person who is eligible |
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| for the senior citizens homestead exemption under this
Section |
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| must be granted a pro-rata exemption for the assessment year. |
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| The
amount of the pro-rata exemption is the exemption
allowed |
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| in the county under this Section divided by 365 and multiplied |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| by the
number of days during the assessment year the property |
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| is occupied as a
residence by a
person eligible for the |
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| exemption under this Section. The chief county
assessment |
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| officer must adopt reasonable procedures to establish |
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| eligibility
for this pro-rata exemption.
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| The assessor or chief county assessment officer may |
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| determine the eligibility
of a life care facility to receive |
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| the benefits provided by this Section, by
affidavit, |
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| application, visual inspection, questionnaire or other |
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| reasonable
methods in order to insure that the tax savings |
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| resulting from the exemption
are credited by the management |
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| firm to the apportioned tax liability of each
qualifying |
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| resident. The assessor may request reasonable proof that the
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| management firm has so credited the exemption.
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| The chief county assessment officer of each county with |
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| less than 3,000,000
inhabitants shall provide to each person |
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| allowed a homestead exemption under
this Section a form to |
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| designate any other person to receive a
duplicate of any notice |
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| of delinquency in the payment of taxes assessed and
levied |
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| under this Code on the property of the person receiving the |
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| exemption.
The duplicate notice shall be in addition to the |
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| notice required to be
provided to the person receiving the |
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| exemption, and shall be given in the
manner required by this |
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| Code. The person filing the request for the duplicate
notice |
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| shall pay a fee of $5 to cover administrative costs to the |
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| supervisor of
assessments, who shall then file the executed |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| designation with the county
collector. Notwithstanding any |
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| other provision of this Code to the contrary,
the filing of |
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| such an executed designation requires the county collector to
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| provide duplicate notices as indicated by the designation. A |
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| designation may
be rescinded by the person who executed such |
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| designation at any time, in the
manner and form required by the |
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| chief county assessment officer.
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| The assessor or chief county assessment officer may |
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| determine the
eligibility of residential property to receive |
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| the homestead exemption provided
by this Section by |
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| application, visual inspection, questionnaire or other
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| reasonable methods. The determination shall be made in |
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| accordance with
guidelines established by the Department.
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| In counties with less than 3,000,000 inhabitants, the |
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| county board may by
resolution provide that if a person has |
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| been granted a homestead exemption
under this Section, the |
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| person qualifying need not reapply for the exemption.
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| In counties with less than 3,000,000 inhabitants, if the |
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| assessor or chief
county assessment officer requires annual |
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| application for verification of
eligibility for an exemption |
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| once granted under this Section, the application
shall be |
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| mailed to the taxpayer.
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| The assessor or chief county assessment officer shall |
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| notify each person
who qualifies for an exemption under this |
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| Section that the person may also
qualify for deferral of real |
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| estate taxes under the Senior Citizens Real Estate
Tax Deferral |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| Act. The notice shall set forth the qualifications needed for
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| deferral of real estate taxes, the address and telephone number |
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| of
county collector, and a
statement that applications for |
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| deferral of real estate taxes may be obtained
from the county |
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| collector.
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| Notwithstanding Sections 6 and 8 of the State Mandates Act, |
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| no
reimbursement by the State is required for the |
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| implementation of any mandate
created by this Section.
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| (Source: P.A. 93-511, eff. 8-11-03; 93-715, eff. 7-12-04; |
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| 94-794, eff. 5-22-06.)
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| (35 ILCS 200/15-175)
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| Sec. 15-175. General homestead exemption. Except as |
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| provided in Section
15-176, homestead
property is
entitled to |
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| an annual homestead exemption limited, except as described here
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| with relation to cooperatives, to a reduction in the equalized |
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| assessed value
of homestead property equal to the increase in |
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| equalized assessed value for the
current assessment year above |
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| the equalized assessed value of the property for
1977, up to |
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| the maximum reduction set forth below. If however, the 1977
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| equalized assessed value upon which taxes were paid is |
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| subsequently determined
by local assessing officials, the |
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| Property Tax Appeal Board, or a court to have
been excessive, |
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| the equalized assessed value which should have been placed on
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| the property for 1977 shall be used to determine the amount of |
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| the exemption.
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| Except as provided in Section 15-176, the maximum reduction |
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| before taxable year 2004 shall be
$4,500 in counties with |
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| 3,000,000 or more
inhabitants
and $3,500 in all other counties. |
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| Except as provided in Section 15-176, for taxable
years 2004 , |
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| 2005, and 2006
and thereafter , the maximum reduction shall be |
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| $5,000 in all counties and shall be $5,500 for 2007, $6,000 for |
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| 2008, $6,500 for 2009, and $7,000 for 2010 and thereafter in |
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| all counties . If a county has elected to subject itself to the |
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| provisions of Section 15-176 as provided in subsection (k) of |
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| that Section, then, for the first taxable year only after the |
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| provisions of Section 15-176 no longer apply, for owners (i) |
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| who have not been granted a senior citizens assessment freeze |
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| homestead exemption under Section 15-172 for the taxable year |
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| and (ii) whose qualified property has an assessed valuation |
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| that has increased by more than 20% over the previous assessed |
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| valuation of the property, there shall be an additional |
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| exemption of $5,000 for owners with a household income of |
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| $30,000 or less. For purposes of this paragraph, "household |
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| income" has the meaning set forth in this Section 15-175.
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| In counties with fewer than 3,000,000 inhabitants, if, |
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| based on the most
recent assessment, the equalized assessed |
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| value of
the homestead property for the current assessment year |
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| is greater than the
equalized assessed value of the property |
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| for 1977, the owner of the property
shall automatically receive |
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| the exemption granted under this Section in an
amount equal to |
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| the increase over the 1977 assessment up to the maximum
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| reduction set forth in this Section.
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| If in any assessment year beginning with the 2000 |
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| assessment year,
homestead property has a pro-rata valuation |
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| under
Section 9-180 resulting in an increase in the assessed |
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| valuation, a reduction
in equalized assessed valuation equal to |
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| the increase in equalized assessed
value of the property for |
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| the year of the pro-rata valuation above the
equalized assessed |
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| value of the property for 1977 shall be applied to the
property |
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| on a proportionate basis for the period the property qualified |
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| as
homestead property during the assessment year. The maximum |
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| proportionate
homestead exemption shall not exceed the maximum |
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| homestead exemption allowed in
the county under this Section |
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| divided by 365 and multiplied by the number of
days the |
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| property qualified as homestead property.
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| "Homestead property" under this Section includes |
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| residential property that is
occupied by its owner or owners as |
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| his or their principal dwelling place, or
that is a leasehold |
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| interest on which a single family residence is situated,
which |
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| is occupied as a residence by a person who has an ownership |
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| interest
therein, legal or equitable or as a lessee, and on |
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| which the person is
liable for the payment of property taxes. |
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| For land improved with
an apartment building owned and operated |
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| as a cooperative or a building which
is a life care facility as |
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| defined in Section 15-170 and considered to
be a cooperative |
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| under Section 15-170, the maximum reduction from the equalized
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| assessed value shall be limited to the increase in the value |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| above the
equalized assessed value of the property for 1977, up |
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| to
the maximum reduction set forth above, multiplied by the |
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| number of apartments
or units occupied by a person or persons |
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| who is liable, by contract with the
owner or owners of record, |
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| for paying property taxes on the property and is an
owner of |
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| record of a legal or equitable interest in the cooperative
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| apartment building, other than a leasehold interest. For |
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| purposes of this
Section, the term "life care facility" has the |
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| meaning stated in Section
15-170.
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| "Household", as used in this Section,
means the owner, the |
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| spouse of the owner, and all persons using
the
residence of the |
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| owner as their principal place of residence.
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| "Household income", as used in this Section,
means the |
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| combined income of the members of a household
for the calendar |
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| year preceding the taxable year.
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| "Income", as used in this Section,
has the same meaning as |
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| provided in Section 3.07 of the Senior
Citizens
and Disabled |
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| Persons Property Tax Relief and Pharmaceutical Assistance Act,
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| except that
"income" does not include veteran's benefits.
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| In a cooperative where a homestead exemption has been |
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| granted, the
cooperative association or its management firm |
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| shall credit the savings
resulting from that exemption only to |
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| the apportioned tax liability of the
owner who qualified for |
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| the exemption. Any person who willfully refuses to so
credit |
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| the savings shall be guilty of a Class B misdemeanor.
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| Where married persons maintain and reside in separate |
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HB0905 |
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LRB095 08521 BDD 28702 b |
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| residences qualifying
as homestead property, each residence |
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| shall receive 50% of the total reduction
in equalized assessed |
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| valuation provided by this Section.
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| In all counties, the assessor
or chief county assessment |
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| officer may determine the
eligibility of residential property |
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| to receive the homestead exemption and the amount of the |
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| exemption by
application, visual inspection, questionnaire or |
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| other reasonable methods. The
determination shall be made in |
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| accordance with guidelines established by the
Department, |
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| provided that the taxpayer applying for an additional general |
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| exemption under this Section shall submit to the chief county |
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| assessment officer an application with an affidavit of the |
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| applicant's total household income, age, marital status (and, |
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| if married, the name and address of the applicant's spouse, if |
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| known), and principal dwelling place of members of the |
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| household on January 1 of the taxable year. The Department |
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| shall issue guidelines establishing a method for verifying the |
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| accuracy of the affidavits filed by applicants under this |
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| paragraph. The applications shall be clearly marked as |
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| applications for the Additional General Homestead Exemption.
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| In counties with fewer than 3,000,000 inhabitants, in the |
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| event of a sale
of
homestead property the homestead exemption |
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| shall remain in effect for the
remainder of the assessment year |
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| of the sale. The assessor or chief county
assessment officer |
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| may require the new
owner of the property to apply for the |
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| homestead exemption for the following
assessment year.
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