99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0237

 

Introduced , by Rep. Sam Yingling

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that homestead property that (i) is located in Lake County and (ii) is owned by a taxpayer who has occupied that property as a principal residence and domicile for at least 10 continuous years as of January 1 of the taxable year is entitled to an additional homestead exemption of $1,000. Effective immediately.


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

 

 

A BILL FOR

 

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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
5Section 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently
17determined by local assessing officials, the Property Tax
18Appeal Board, or a court to have been excessive, the equalized
19assessed value which should have been placed on the property
20for 1977 shall be used to determine the amount of the
21exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties

 

 

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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177, for
3taxable years 2004 through 2007, the maximum reduction shall be
4$5,000, for taxable year 2008, the maximum reduction is $5,500,
5and, for taxable years 2009 through 2011, the maximum reduction
6is $6,000 in all counties. For taxable years 2012 and
7thereafter, the maximum reduction is $7,000 in counties with
83,000,000 or more inhabitants and $6,000 in all other counties.
9If a county has elected to subject itself to the provisions of
10Section 15-176 as provided in subsection (k) of that Section,
11then, for the first taxable year only after the provisions of
12Section 15-176 no longer apply, for owners who, for the taxable
13year, have not been granted a senior citizens assessment freeze
14homestead exemption under Section 15-172 or a long-time
15occupant homestead exemption under Section 15-177, there shall
16be an additional exemption of $5,000 for owners with a
17household income of $30,000 or less.
18    (b-5) Notwithstanding the maximum reduction amounts set
19forth in subsections (a) and (b), for taxable years 2015 and
20thereafter, if homestead property (i) is located in Lake County
21and (ii) is owned by a qualified taxpayer, then that homestead
22property is entitled to an additional exemption of $1,000.
23    (c) In counties with fewer than 3,000,000 inhabitants, if,
24based on the most recent assessment, the equalized assessed
25value of the homestead property for the current assessment year
26is greater than the equalized assessed value of the property

 

 

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1for 1977, the owner of the property shall automatically receive
2the exemption granted under this Section in an amount equal to
3the increase over the 1977 assessment up to the maximum
4reduction set forth in this Section.
5    (d) If in any assessment year beginning with the 2000
6assessment year, homestead property has a pro-rata valuation
7under Section 9-180 resulting in an increase in the assessed
8valuation, a reduction in equalized assessed valuation equal to
9the increase in equalized assessed value of the property for
10the year of the pro-rata valuation above the equalized assessed
11value of the property for 1977 shall be applied to the property
12on a proportionate basis for the period the property qualified
13as homestead property during the assessment year. The maximum
14proportionate homestead exemption shall not exceed the maximum
15homestead exemption allowed in the county under this Section
16divided by 365 and multiplied by the number of days the
17property qualified as homestead property.
18    (e) The chief county assessment officer may, when
19considering whether to grant a leasehold exemption under this
20Section, require the following conditions to be met:
21        (1) that a notarized application for the exemption,
22    signed by both the owner and the lessee of the property,
23    must be submitted each year during the application period
24    in effect for the county in which the property is located;
25        (2) that a copy of the lease must be filed with the
26    chief county assessment officer by the owner of the

 

 

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1    property at the time the notarized application is
2    submitted;
3        (3) that the lease must expressly state that the lessee
4    is liable for the payment of property taxes; and
5        (4) that the lease must include the following language
6    in substantially the following form:
7            "Lessee shall be liable for the payment of real
8        estate taxes with respect to the residence in
9        accordance with the terms and conditions of Section
10        15-175 of the Property Tax Code (35 ILCS 200/15-175).
11        The permanent real estate index number for the premises
12        is (insert number), and, according to the most recent
13        property tax bill, the current amount of real estate
14        taxes associated with the premises is (insert amount)
15        per year. The parties agree that the monthly rent set
16        forth above shall be increased or decreased pro rata
17        (effective January 1 of each calendar year) to reflect
18        any increase or decrease in real estate taxes. Lessee
19        shall be deemed to be satisfying Lessee's liability for
20        the above mentioned real estate taxes with the monthly
21        rent payments as set forth above (or increased or
22        decreased as set forth herein).".
23    In addition, if there is a change in lessee, or if the
24lessee vacates the property, then the chief county assessment
25officer may require the owner of the property to notify the
26chief county assessment officer of that change.

 

 

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1    This subsection (e) does not apply to leasehold interests
2in property owned by a municipality.
3    (f) "Homestead property" under this Section includes
4residential property that is occupied by its owner or owners as
5his or their principal dwelling place, or that is a leasehold
6interest on which a single family residence is situated, which
7is occupied as a residence by a person who has an ownership
8interest therein, legal or equitable or as a lessee, and on
9which the person is liable for the payment of property taxes.
10For land improved with an apartment building owned and operated
11as a cooperative or a building which is a life care facility as
12defined in Section 15-170 and considered to be a cooperative
13under Section 15-170, the maximum reduction from the equalized
14assessed value shall be limited to the increase in the value
15above the equalized assessed value of the property for 1977, up
16to the maximum reduction set forth above, multiplied by the
17number of apartments or units occupied by a person or persons
18who is liable, by contract with the owner or owners of record,
19for paying property taxes on the property and is an owner of
20record of a legal or equitable interest in the cooperative
21apartment building, other than a leasehold interest. For
22purposes of this Section, the term "life care facility" has the
23meaning stated in Section 15-170.
24    "Household", as used in this Section, means the owner, the
25spouse of the owner, and all persons using the residence of the
26owner as their principal place of residence.

 

 

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1    "Household income", as used in this Section, means the
2combined income of the members of a household for the calendar
3year preceding the taxable year.
4    "Income", as used in this Section, has the same meaning as
5provided in Section 3.07 of the Senior Citizens and Disabled
6Persons Property Tax Relief Act, except that "income" does not
7include veteran's benefits.
8    "Qualified taxpayer" means a taxpayer who has occupied the
9same homestead property as a principal residence and domicile
10for at least 10 continuous years as of January 1 of the taxable
11year.
12    (g) In a cooperative where a homestead exemption has been
13granted, the cooperative association or its management firm
14shall credit the savings resulting from that exemption only to
15the apportioned tax liability of the owner who qualified for
16the exemption. Any person who willfully refuses to so credit
17the savings shall be guilty of a Class B misdemeanor.
18    (h) Where married persons maintain and reside in separate
19residences qualifying as homestead property, each residence
20shall receive 50% of the total reduction in equalized assessed
21valuation provided by this Section.
22    (i) In all counties, the assessor or chief county
23assessment officer may determine the eligibility of
24residential property to receive the homestead exemption and the
25amount of the exemption by application, visual inspection,
26questionnaire or other reasonable methods. The determination

 

 

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1shall be made in accordance with guidelines established by the
2Department, provided that the taxpayer applying for an
3additional general exemption under subsection (b) of this
4Section shall submit to the chief county assessment officer an
5application with an affidavit of the applicant's total
6household income, age, marital status (and, if married, the
7name and address of the applicant's spouse, if known), and
8principal dwelling place of members of the household on January
91 of the taxable year. If the taxpayer is applying for an
10additional general exemption under subsection (b-5) of this
11Section, then the taxpayer shall submit to the chief county
12assessment officer an application with an affidavit declaring
13that the taxpayer is a qualified taxpayer under this Section.
14The Department shall issue guidelines establishing a method for
15verifying the accuracy of the affidavits filed by applicants
16under this paragraph. The applications shall be clearly marked
17as applications for an the Additional General Homestead
18Exemption.
19    (j) In counties with fewer than 3,000,000 inhabitants, in
20the event of a sale of homestead property the homestead
21exemption shall remain in effect for the remainder of the
22assessment year of the sale. The assessor or chief county
23assessment officer may require the new owner of the property to
24apply for the homestead exemption for the following assessment
25year.
26    (k) Notwithstanding Sections 6 and 8 of the State Mandates

 

 

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1Act, no reimbursement by the State is required for the
2implementation of any mandate created by this Section.
3(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
498-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.