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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3715 Introduced , by Rep. Avery Bourne - Mark Batinick - Christine Winger - Sheri L Jesiel SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that the maximum reduction under the General Homestead Exemption is $7,000, and indexes the maximum reductions in all counties to the Consumer Price Index. 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.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Property Tax Code is amended by changing |
5 | | Section 15-175 as follows:
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6 | | (35 ILCS 200/15-175)
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7 | | Sec. 15-175. General homestead exemption. |
8 | | (a) Except as provided in Sections 15-176 and 15-177, |
9 | | homestead
property is
entitled to an annual homestead exemption |
10 | | limited, except as described here
with relation to |
11 | | cooperatives, to a reduction in the equalized assessed value
of |
12 | | homestead property equal to the increase in equalized assessed |
13 | | value for the
current assessment year above the equalized |
14 | | assessed value of the property for
1977, up to the maximum |
15 | | reduction set forth below. If however, the 1977
equalized |
16 | | assessed value upon which taxes were paid is subsequently |
17 | | determined
by local assessing officials, the Property Tax |
18 | | Appeal Board, or a court to have
been excessive, the equalized |
19 | | assessed value which should have been placed on
the property |
20 | | for 1977 shall be used to determine the amount of the |
21 | | exemption.
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22 | | (b) Except as provided in Section 15-176, the maximum |
23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other |
2 | | counties. Except as provided in Sections 15-176 and 15-177, for |
3 | | taxable years 2004 through 2007, the maximum reduction shall be |
4 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, |
5 | | and, for taxable years 2009 through 2011, the maximum reduction |
6 | | is $6,000 in all counties. For taxable years 2012 and 2014 |
7 | | thereafter , the maximum reduction is $7,000 in counties with |
8 | | 3,000,000 or more
inhabitants
and $6,000 in all other counties. |
9 | | For taxable year 2015, the maximum reduction in all counties is |
10 | | $7,000; thereafter, the maximum reduction is the maximum |
11 | | reduction for the prior taxable year increased by the annual |
12 | | rate of increase for the previous
calendar year in the Consumer |
13 | | Price Index for All Urban
Consumers for all items published by |
14 | | the United States
Bureau of Labor Statistics. If a county has |
15 | | elected to subject itself to the provisions of Section 15-176 |
16 | | as provided in subsection (k) of that Section, then, for the |
17 | | first taxable year only after the provisions of Section 15-176 |
18 | | no longer apply, for owners who, for the taxable year, have not |
19 | | been granted a senior citizens assessment freeze homestead |
20 | | exemption under Section 15-172 or a long-time occupant |
21 | | homestead exemption under Section 15-177, there shall be an |
22 | | additional exemption of $5,000 for owners with a household |
23 | | income of $30,000 or less.
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24 | | (c) In counties with fewer than 3,000,000 inhabitants, if, |
25 | | based on the most
recent assessment, the equalized assessed |
26 | | value of
the homestead property for the current assessment year |
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1 | | is greater than the
equalized assessed value of the property |
2 | | for 1977, the owner of the property
shall automatically receive |
3 | | the exemption granted under this Section in an
amount equal to |
4 | | the increase over the 1977 assessment up to the maximum
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5 | | reduction set forth in this Section.
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6 | | (d) If in any assessment year beginning with the 2000 |
7 | | assessment year,
homestead property has a pro-rata valuation |
8 | | under
Section 9-180 resulting in an increase in the assessed |
9 | | valuation, a reduction
in equalized assessed valuation equal to |
10 | | the increase in equalized assessed
value of the property for |
11 | | the year of the pro-rata valuation above the
equalized assessed |
12 | | value of the property for 1977 shall be applied to the
property |
13 | | on a proportionate basis for the period the property qualified |
14 | | as
homestead property during the assessment year. The maximum |
15 | | proportionate
homestead exemption shall not exceed the maximum |
16 | | homestead exemption allowed in
the county under this Section |
17 | | divided by 365 and multiplied by the number of
days the |
18 | | property qualified as homestead property.
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19 | | (e) The chief county assessment officer may, when |
20 | | considering whether to grant a leasehold exemption under this |
21 | | Section, require the following conditions to be met: |
22 | | (1) that a notarized application for the exemption, |
23 | | signed by both the owner and the lessee of the property, |
24 | | must be submitted each year during the application period |
25 | | in effect for the county in which the property is located; |
26 | | (2) that a copy of the lease must be filed with the |
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1 | | chief county assessment officer by the owner of the |
2 | | property at the time the notarized application is |
3 | | submitted; |
4 | | (3) that the lease must expressly state that the lessee |
5 | | is liable for the payment of property taxes; and |
6 | | (4) that the lease must include the following language |
7 | | in substantially the following form: |
8 | | "Lessee shall be liable for the payment of real |
9 | | estate taxes with respect to the residence in |
10 | | accordance with the terms and conditions of Section |
11 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). |
12 | | The permanent real estate index number for the premises |
13 | | is (insert number), and, according to the most recent |
14 | | property tax bill, the current amount of real estate |
15 | | taxes associated with the premises is (insert amount) |
16 | | per year. The parties agree that the monthly rent set |
17 | | forth above shall be increased or decreased pro rata |
18 | | (effective January 1 of each calendar year) to reflect |
19 | | any increase or decrease in real estate taxes. Lessee |
20 | | shall be deemed to be satisfying Lessee's liability for |
21 | | the above mentioned real estate taxes with the monthly |
22 | | rent payments as set forth above (or increased or |
23 | | decreased as set forth herein).". |
24 | | In addition, if there is a change in lessee, or if the |
25 | | lessee vacates the property, then the chief county assessment |
26 | | officer may require the owner of the property to notify the |
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1 | | chief county assessment officer of that change. |
2 | | This subsection (e) does not apply to leasehold interests |
3 | | in property owned by a municipality. |
4 | | (f) "Homestead property" under this Section includes |
5 | | residential property that is
occupied by its owner or owners as |
6 | | his or their principal dwelling place, or
that is a leasehold |
7 | | interest on which a single family residence is situated,
which |
8 | | is occupied as a residence by a person who has an ownership |
9 | | interest
therein, legal or equitable or as a lessee, and on |
10 | | which the person is
liable for the payment of property taxes. |
11 | | For land improved with
an apartment building owned and operated |
12 | | as a cooperative or a building which
is a life care facility as |
13 | | defined in Section 15-170 and considered to
be a cooperative |
14 | | under Section 15-170, the maximum reduction from the equalized
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15 | | assessed value shall be limited to the increase in the value |
16 | | above the
equalized assessed value of the property for 1977, up |
17 | | to
the maximum reduction set forth above, multiplied by the |
18 | | number of apartments
or units occupied by a person or persons |
19 | | who is liable, by contract with the
owner or owners of record, |
20 | | for paying property taxes on the property and is an
owner of |
21 | | record of a legal or equitable interest in the cooperative
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22 | | apartment building, other than a leasehold interest. For |
23 | | purposes of this
Section, the term "life care facility" has the |
24 | | meaning stated in Section
15-170.
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25 | | "Household", as used in this Section,
means the owner, the |
26 | | spouse of the owner, and all persons using
the
residence of the |
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1 | | owner as their principal place of residence.
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2 | | "Household income", as used in this Section,
means the |
3 | | combined income of the members of a household
for the calendar |
4 | | year preceding the taxable year.
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5 | | "Income", as used in this Section,
has the same meaning as |
6 | | provided in Section 3.07 of the Senior
Citizens
and Disabled |
7 | | Persons Property Tax Relief Act,
except that
"income" does not |
8 | | include veteran's benefits.
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9 | | (g) In a cooperative where a homestead exemption has been |
10 | | granted, the
cooperative association or its management firm |
11 | | shall credit the savings
resulting from that exemption only to |
12 | | the apportioned tax liability of the
owner who qualified for |
13 | | the exemption. Any person who willfully refuses to so
credit |
14 | | the savings shall be guilty of a Class B misdemeanor.
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15 | | (h) Where married persons maintain and reside in separate |
16 | | residences qualifying
as homestead property, each residence |
17 | | shall receive 50% of the total reduction
in equalized assessed |
18 | | valuation provided by this Section.
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19 | | (i) In all counties, the assessor
or chief county |
20 | | assessment officer may determine the
eligibility of |
21 | | residential property to receive the homestead exemption and the |
22 | | amount of the exemption by
application, visual inspection, |
23 | | questionnaire or other reasonable methods. The
determination |
24 | | shall be made in accordance with guidelines established by the
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25 | | Department, provided that the taxpayer applying for an |
26 | | additional general exemption under this Section shall submit to |
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1 | | the chief county assessment officer an application with an |
2 | | affidavit of the applicant's total household income, age, |
3 | | marital status (and, if married, the name and address of the |
4 | | applicant's spouse, if known), and principal dwelling place of |
5 | | members of the household on January 1 of the taxable year. The |
6 | | Department shall issue guidelines establishing a method for |
7 | | verifying the accuracy of the affidavits filed by applicants |
8 | | under this paragraph. The applications shall be clearly marked |
9 | | as applications for the Additional General Homestead |
10 | | Exemption.
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11 | | (j) In counties with fewer than 3,000,000 inhabitants, in |
12 | | the event of a sale
of
homestead property the homestead |
13 | | exemption shall remain in effect for the
remainder of the |
14 | | assessment year of the sale. The assessor or chief county
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15 | | assessment officer may require the new
owner of the property to |
16 | | apply for the homestead exemption for the following
assessment |
17 | | year.
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18 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates |
19 | | Act, no reimbursement by the State is required for the |
20 | | implementation of any mandate created by this Section.
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21 | | (Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12; |
22 | | 98-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
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23 | | Section 99. Effective date. This Act takes effect upon |
24 | | becoming law.
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