99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6198

 

Introduced 2/11/2016, by Rep. Michael P. McAuliffe

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-7 new
35 ILCS 200/15-172
35 ILCS 200/15-175
35 ILCS 200/15-177

    Amends the Property Tax Code. Provides that, if a taxpayer must have an income that is at or below a certain amount in order to qualify for an exemption, then, for the purposes of that exemption, the term "income" does not include Social Security benefits unless expressly stated otherwise. Effective immediately.


LRB099 18243 HLH 42613 b

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

 

 

A BILL FOR

 

HB6198LRB099 18243 HLH 42613 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 15-172, 15-175, and 15-177 and by adding Section 15-7
6as follows:
 
7    (35 ILCS 200/15-7 new)
8    Sec. 15-7. Income limits; Social Security. Beginning with
9the 2016 assessment year, if, in order to qualify for an
10exemption under this Article 15, the taxpayer must have an
11income that is at or below a certain amount, then, for the
12purposes of that exemption, the term "income" does not include
13any Social Security benefit unless expressly stated otherwise
14in this Code.
 
15    (35 ILCS 200/15-172)
16    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
17Exemption.
18    (a) This Section may be cited as the Senior Citizens
19Assessment Freeze Homestead Exemption.
20    (b) As used in this Section:
21    "Applicant" means an individual who has filed an
22application under this Section.

 

 

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1    "Base amount" means the base year equalized assessed value
2of the residence plus the first year's equalized assessed value
3of any added improvements which increased the assessed value of
4the residence after the base year.
5    "Base year" means the taxable year prior to the taxable
6year for which the applicant first qualifies and applies for
7the exemption provided that in the prior taxable year the
8property was improved with a permanent structure that was
9occupied as a residence by the applicant who was liable for
10paying real property taxes on the property and who was either
11(i) an owner of record of the property or had legal or
12equitable interest in the property as evidenced by a written
13instrument or (ii) had a legal or equitable interest as a
14lessee in the parcel of property that was single family
15residence. If in any subsequent taxable year for which the
16applicant applies and qualifies for the exemption the equalized
17assessed value of the residence is less than the equalized
18assessed value in the existing base year (provided that such
19equalized assessed value is not based on an assessed value that
20results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years), then
22that subsequent taxable year shall become the base year until a
23new base year is established under the terms of this paragraph.
24For taxable year 1999 only, the Chief County Assessment Officer
25shall review (i) all taxable years for which the applicant
26applied and qualified for the exemption and (ii) the existing

 

 

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1base year. The assessment officer shall select as the new base
2year the year with the lowest equalized assessed value. An
3equalized assessed value that is based on an assessed value
4that results from a temporary irregularity in the property that
5reduces the assessed value for one or more taxable years shall
6not be considered the lowest equalized assessed value. The
7selected year shall be the base year for taxable year 1999 and
8thereafter until a new base year is established under the terms
9of this paragraph.
10    "Chief County Assessment Officer" means the County
11Assessor or Supervisor of Assessments of the county in which
12the property is located.
13    "Equalized assessed value" means the assessed value as
14equalized by the Illinois Department of Revenue.
15    "Household" means the applicant, the spouse of the
16applicant, and all persons using the residence of the applicant
17as their principal place of residence.
18    "Household income" means the combined income of the members
19of a household for the calendar year preceding the taxable
20year.
21    "Income" has the same meaning as provided in Section 3.07
22of the Senior Citizens and Persons with Disabilities Property
23Tax Relief Act, except that, beginning in assessment year 2001,
24"income" does not include veteran's benefits, and, beginning in
25assessment year 2016, "income" does not include Social Security
26benefits.

 

 

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1    "Internal Revenue Code of 1986" means the United States
2Internal Revenue Code of 1986 or any successor law or laws
3relating to federal income taxes in effect for the year
4preceding the taxable year.
5    "Life care facility that qualifies as a cooperative" means
6a facility as defined in Section 2 of the Life Care Facilities
7Act.
8    "Maximum income limitation" means:
9        (1) $35,000 prior to taxable year 1999;
10        (2) $40,000 in taxable years 1999 through 2003;
11        (3) $45,000 in taxable years 2004 through 2005;
12        (4) $50,000 in taxable years 2006 and 2007; and
13        (5) $55,000 in taxable year 2008 and thereafter.
14    "Residence" means the principal dwelling place and
15appurtenant structures used for residential purposes in this
16State occupied on January 1 of the taxable year by a household
17and so much of the surrounding land, constituting the parcel
18upon which the dwelling place is situated, as is used for
19residential purposes. If the Chief County Assessment Officer
20has established a specific legal description for a portion of
21property constituting the residence, then that portion of
22property shall be deemed the residence for the purposes of this
23Section.
24    "Taxable year" means the calendar year during which ad
25valorem property taxes payable in the next succeeding year are
26levied.

 

 

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1    (c) Beginning in taxable year 1994, a senior citizens
2assessment freeze homestead exemption is granted for real
3property that is improved with a permanent structure that is
4occupied as a residence by an applicant who (i) is 65 years of
5age or older during the taxable year, (ii) has a household
6income that does not exceed the maximum income limitation,
7(iii) is liable for paying real property taxes on the property,
8and (iv) is an owner of record of the property or has a legal or
9equitable interest in the property as evidenced by a written
10instrument. This homestead exemption shall also apply to a
11leasehold interest in a parcel of property improved with a
12permanent structure that is a single family residence that is
13occupied as a residence by a person who (i) is 65 years of age
14or older during the taxable year, (ii) has a household income
15that does not exceed the maximum income limitation, (iii) has a
16legal or equitable ownership interest in the property as
17lessee, and (iv) is liable for the payment of real property
18taxes on that property.
19    In counties of 3,000,000 or more inhabitants, the amount of
20the exemption for all taxable years is the equalized assessed
21value of the residence in the taxable year for which
22application is made minus the base amount. In all other
23counties, the amount of the exemption is as follows: (i)
24through taxable year 2005 and for taxable year 2007 and
25thereafter, the amount of this exemption shall be the equalized
26assessed value of the residence in the taxable year for which

 

 

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1application is made minus the base amount; and (ii) for taxable
2year 2006, the amount of the exemption is as follows:
3        (1) For an applicant who has a household income of
4    $45,000 or less, the amount of the exemption is the
5    equalized assessed value of the residence in the taxable
6    year for which application is made minus the base amount.
7        (2) For an applicant who has a household income
8    exceeding $45,000 but not exceeding $46,250, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.8.
12        (3) For an applicant who has a household income
13    exceeding $46,250 but not exceeding $47,500, 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 0.6.
17        (4) For an applicant who has a household income
18    exceeding $47,500 but not exceeding $48,750, 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 0.4.
22        (5) For an applicant who has a household income
23    exceeding $48,750 but not exceeding $50,000, 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 0.2.

 

 

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

 

 

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

 

 

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1    For taxable year 1994 only, in counties having less than
23,000,000 inhabitants, to receive the exemption, a person shall
3submit an application by February 15, 1995 to the Chief County
4Assessment Officer of the county in which the property is
5located. In counties having 3,000,000 or more inhabitants, for
6taxable year 1994 and all subsequent taxable years, to receive
7the exemption, a person may submit an application to the Chief
8County Assessment Officer of the county in which the property
9is located during such period as may be specified by the Chief
10County Assessment Officer. The Chief County Assessment Officer
11in counties of 3,000,000 or more inhabitants shall annually
12give notice of the application period by mail or by
13publication. In counties having less than 3,000,000
14inhabitants, beginning with taxable year 1995 and thereafter,
15to receive the exemption, a person shall submit an application
16by July 1 of each taxable year to the Chief County Assessment
17Officer of the county in which the property is located. A
18county may, by ordinance, establish a date for submission of
19applications that is different than July 1. The applicant shall
20submit with the application an affidavit of the applicant's
21total household income, age, marital status (and if married the
22name and address of the applicant's spouse, if known), and
23principal dwelling place of members of the household on January
241 of the taxable year. The Department shall establish, by rule,
25a method for verifying the accuracy of affidavits filed by
26applicants under this Section, and the Chief County Assessment

 

 

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1Officer may conduct audits of any taxpayer claiming an
2exemption under this Section to verify that the taxpayer is
3eligible to receive the exemption. Each application shall
4contain or be verified by a written declaration that it is made
5under the penalties of perjury. A taxpayer's signing a
6fraudulent application under this Act is perjury, as defined in
7Section 32-2 of the Criminal Code of 2012. The applications
8shall be clearly marked as applications for the Senior Citizens
9Assessment Freeze Homestead Exemption and must contain a notice
10that any taxpayer who receives the exemption is subject to an
11audit by the Chief County Assessment Officer.
12    Notwithstanding any other provision to the contrary, in
13counties having fewer than 3,000,000 inhabitants, if an
14applicant fails to file the application required by this
15Section in a timely manner and this failure to file is due to a
16mental or physical condition sufficiently severe so as to
17render the applicant incapable of filing the application in a
18timely manner, the Chief County Assessment Officer may extend
19the filing deadline for a period of 30 days after the applicant
20regains the capability to file the application, but in no case
21may the filing deadline be extended beyond 3 months of the
22original filing deadline. In order to receive the extension
23provided in this paragraph, the applicant shall provide the
24Chief County Assessment Officer with a signed statement from
25the applicant's physician stating the nature and extent of the
26condition, that, in the physician's opinion, the condition was

 

 

HB6198- 11 -LRB099 18243 HLH 42613 b

1so severe that it rendered the applicant incapable of filing
2the application in a timely manner, and the date on which the
3applicant regained the capability to file the application.
4    Beginning January 1, 1998, notwithstanding any other
5provision to the contrary, in counties having fewer than
63,000,000 inhabitants, if an applicant fails to file the
7application required by this Section in a timely manner and
8this failure to file is due to a mental or physical condition
9sufficiently severe so as to render the applicant incapable of
10filing the application in a timely manner, the Chief County
11Assessment Officer may extend the filing deadline for a period
12of 3 months. In order to receive the extension provided in this
13paragraph, the applicant shall provide the Chief County
14Assessment Officer with a signed statement from the applicant's
15physician stating the nature and extent of the condition, and
16that, in the physician's opinion, the condition was so severe
17that it rendered the applicant incapable of filing the
18application in a timely manner.
19    In counties having less than 3,000,000 inhabitants, if an
20applicant was denied an exemption in taxable year 1994 and the
21denial occurred due to an error on the part of an assessment
22official, or his or her agent or employee, then beginning in
23taxable year 1997 the applicant's base year, for purposes of
24determining the amount of the exemption, shall be 1993 rather
25than 1994. In addition, in taxable year 1997, the applicant's
26exemption shall also include an amount equal to (i) the amount

 

 

HB6198- 12 -LRB099 18243 HLH 42613 b

1of any exemption denied to the applicant in taxable year 1995
2as a result of using 1994, rather than 1993, as the base year,
3(ii) the amount of any exemption denied to the applicant in
4taxable year 1996 as a result of using 1994, rather than 1993,
5as the base year, and (iii) the amount of the exemption
6erroneously denied for taxable year 1994.
7    For purposes of this Section, a person who will be 65 years
8of age during the current taxable year shall be eligible to
9apply for the homestead exemption during that taxable year.
10Application shall be made during the application period in
11effect for the county of his or her residence.
12    The Chief County Assessment Officer may determine the
13eligibility of a life care facility that qualifies as a
14cooperative to receive the benefits provided by this Section by
15use of an affidavit, application, visual inspection,
16questionnaire, or other reasonable method in order to insure
17that the tax savings resulting from the exemption are credited
18by the management firm to the apportioned tax liability of each
19qualifying resident. The Chief County Assessment Officer may
20request reasonable proof that the management firm has so
21credited that exemption.
22    Except as provided in this Section, all information
23received by the chief county assessment officer or the
24Department from applications filed under this Section, or from
25any investigation conducted under the provisions of this
26Section, shall be confidential, except for official purposes or

 

 

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1pursuant to official procedures for collection of any State or
2local tax or enforcement of any civil or criminal penalty or
3sanction imposed by this Act or by any statute or ordinance
4imposing a State or local tax. Any person who divulges any such
5information in any manner, except in accordance with a proper
6judicial order, is guilty of a Class A misdemeanor.
7    Nothing contained in this Section shall prevent the
8Director or chief county assessment officer from publishing or
9making available reasonable statistics concerning the
10operation of the exemption contained in this Section in which
11the contents of claims are grouped into aggregates in such a
12way that information contained in any individual claim shall
13not be disclosed.
14    (d) Each Chief County Assessment Officer shall annually
15publish a notice of availability of the exemption provided
16under this Section. The notice shall be published at least 60
17days but no more than 75 days prior to the date on which the
18application must be submitted to the Chief County Assessment
19Officer of the county in which the property is located. The
20notice shall appear in a newspaper of general circulation in
21the county.
22    Notwithstanding Sections 6 and 8 of the State Mandates Act,
23no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
2699-180, eff. 7-29-15; revised 10-21-15.)
 

 

 

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1    (35 ILCS 200/15-175)
2    Sec. 15-175. General homestead exemption.
3    (a) Except as provided in Sections 15-176 and 15-177,
4homestead property is entitled to an annual homestead exemption
5limited, except as described here with relation to
6cooperatives, to a reduction in the equalized assessed value of
7homestead property equal to the increase in equalized assessed
8value for the current assessment year above the equalized
9assessed value of the property for 1977, up to the maximum
10reduction set forth below. If however, the 1977 equalized
11assessed value upon which taxes were paid is subsequently
12determined by local assessing officials, the Property Tax
13Appeal Board, or a court to have been excessive, the equalized
14assessed value which should have been placed on the property
15for 1977 shall be used to determine the amount of the
16exemption.
17    (b) Except as provided in Section 15-176, the maximum
18reduction before taxable year 2004 shall be $4,500 in counties
19with 3,000,000 or more inhabitants and $3,500 in all other
20counties. Except as provided in Sections 15-176 and 15-177, for
21taxable years 2004 through 2007, the maximum reduction shall be
22$5,000, for taxable year 2008, the maximum reduction is $5,500,
23and, for taxable years 2009 through 2011, the maximum reduction
24is $6,000 in all counties. For taxable years 2012 and
25thereafter, the maximum reduction is $7,000 in counties with

 

 

HB6198- 15 -LRB099 18243 HLH 42613 b

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

 

 

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1as homestead property during the assessment year. The maximum
2proportionate homestead exemption shall not exceed the maximum
3homestead exemption allowed in the county under this Section
4divided by 365 and multiplied by the number of days the
5property qualified as homestead property.
6    (e) The chief county assessment officer may, when
7considering whether to grant a leasehold exemption under this
8Section, require the following conditions to be met:
9        (1) that a notarized application for the exemption,
10    signed by both the owner and the lessee of the property,
11    must be submitted each year during the application period
12    in effect for the county in which the property is located;
13        (2) that a copy of the lease must be filed with the
14    chief county assessment officer by the owner of the
15    property at the time the notarized application is
16    submitted;
17        (3) that the lease must expressly state that the lessee
18    is liable for the payment of property taxes; and
19        (4) that the lease must include the following language
20    in substantially the following form:
21            "Lessee shall be liable for the payment of real
22        estate taxes with respect to the residence in
23        accordance with the terms and conditions of Section
24        15-175 of the Property Tax Code (35 ILCS 200/15-175).
25        The permanent real estate index number for the premises
26        is (insert number), and, according to the most recent

 

 

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

 

 

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1under Section 15-170, the maximum reduction from the equalized
2assessed value shall be limited to the increase in the value
3above the equalized assessed value of the property for 1977, up
4to the maximum reduction set forth above, multiplied by the
5number of apartments or units occupied by a person or persons
6who is liable, by contract with the owner or owners of record,
7for paying property taxes on the property and is an owner of
8record of a legal or equitable interest in the cooperative
9apartment building, other than a leasehold interest. For
10purposes of this Section, the term "life care facility" has the
11meaning stated in Section 15-170.
12    "Household", as used in this Section, means the owner, the
13spouse of the owner, and all persons using the residence of the
14owner as their principal place of residence.
15    "Household income", as used in this Section, means the
16combined income of the members of a household for the calendar
17year preceding the taxable year.
18    "Income", as used in this Section, has the same meaning as
19provided in Section 3.07 of the Senior Citizens and Persons
20with Disabilities Property Tax Relief Act, except that "income"
21does not include veteran's benefits, and, beginning in
22assessment year 2016, "income" does not include Social Security
23benefits.
24    (g) In a cooperative where a homestead exemption has been
25granted, the cooperative association or its management firm
26shall credit the savings resulting from that exemption only to

 

 

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1the apportioned tax liability of the owner who qualified for
2the exemption. Any person who willfully refuses to so credit
3the savings shall be guilty of a Class B misdemeanor.
4    (h) Where married persons maintain and reside in separate
5residences qualifying as homestead property, each residence
6shall receive 50% of the total reduction in equalized assessed
7valuation provided by this Section.
8    (i) In all counties, the assessor or chief county
9assessment officer may determine the eligibility of
10residential property to receive the homestead exemption and the
11amount of the exemption by application, visual inspection,
12questionnaire or other reasonable methods. The determination
13shall be made in accordance with guidelines established by the
14Department, provided that the taxpayer applying for an
15additional general exemption under this Section shall submit to
16the chief county assessment officer an application with an
17affidavit of the applicant's total household income, age,
18marital status (and, if married, the name and address of the
19applicant's spouse, if known), and principal dwelling place of
20members of the household on January 1 of the taxable year. The
21Department shall issue guidelines establishing a method for
22verifying the accuracy of the affidavits filed by applicants
23under this paragraph. The applications shall be clearly marked
24as applications for the Additional General Homestead
25Exemption.
26    (i-5) This subsection (i-5) applies to counties with

 

 

HB6198- 20 -LRB099 18243 HLH 42613 b

13,000,000 or more inhabitants. In the event of a sale of
2homestead property, the homestead exemption shall remain in
3effect for the remainder of the assessment year of the sale.
4Upon receipt of a transfer declaration transmitted by the
5recorder pursuant to Section 31-30 of the Real Estate Transfer
6Tax Law for property receiving an exemption under this Section,
7the assessor shall mail a notice and forms to the new owner of
8the property providing information pertaining to the rules and
9applicable filing periods for applying or reapplying for
10homestead exemptions under this Code for which the property may
11be eligible. If the new owner fails to apply or reapply for a
12homestead exemption during the applicable filing period or the
13property no longer qualifies for an existing homestead
14exemption, the assessor shall cancel such exemption for any
15ensuing assessment year.
16    (j) In counties with fewer than 3,000,000 inhabitants, in
17the event of a sale of homestead property the homestead
18exemption shall remain in effect for the remainder of the
19assessment year of the sale. The assessor or chief county
20assessment officer may require the new owner of the property to
21apply for the homestead exemption for the following assessment
22year.
23    (k) Notwithstanding Sections 6 and 8 of the State Mandates
24Act, no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,

 

 

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1eff. 7-27-15; 99-164, eff. 7-28-15; revised 8-25-15.)
 
2    (35 ILCS 200/15-177)
3    Sec. 15-177. The long-time occupant homestead exemption.
4    (a) If the county has elected, under Section 15-176, to be
5subject to the provisions of the alternative general homestead
6exemption, then, for taxable years 2007 and thereafter,
7regardless of whether the exemption under Section 15-176
8applies, qualified homestead property is entitled to an annual
9homestead exemption equal to a reduction in the property's
10equalized assessed value calculated as provided in this
11Section.
12    (b) As used in this Section:
13    "Adjusted homestead value" means the lesser of the
14following values:
15        (1) The property's base homestead value increased by:
16    (i) 10% for each taxable year after the base year through
17    and including the current tax year for qualified taxpayers
18    with a household income of more than $75,000 but not
19    exceeding $100,000; or (ii) 7% for each taxable year after
20    the base year through and including the current tax year
21    for qualified taxpayers with a household income of $75,000
22    or less. The increase each year is an increase over the
23    prior year; or
24        (2) The property's equalized assessed value for the
25    current tax year minus the general homestead deduction.

 

 

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1    "Base homestead value" means:
2        (1) if the property did not have an adjusted homestead
3    value under Section 15-176 for the base year, then an
4    amount equal to the equalized assessed value of the
5    property for the base year prior to exemptions, minus the
6    general homestead deduction, provided that the property's
7    assessment was not based on a reduced assessed value
8    resulting from a temporary irregularity in the property for
9    that year; or
10        (2) if the property had an adjusted homestead value
11    under Section 15-176 for the base year, then an amount
12    equal to the adjusted homestead value of the property under
13    Section 15-176 for the base year.
14    "Base year" means the taxable year prior to the taxable
15year in which the taxpayer first qualifies for the exemption
16under this Section.
17    "Current taxable year" means the taxable year for which the
18exemption under this Section is being applied.
19    "Equalized assessed value" means the property's assessed
20value as equalized by the Department.
21    "Homestead" or "homestead property" means residential
22property that as of January 1 of the tax year is occupied by a
23qualified taxpayer as his or her principal dwelling place, or
24that is a leasehold interest on which a single family residence
25is situated, that is occupied as a residence by a qualified
26taxpayer who has a legal or equitable interest therein

 

 

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1evidenced by a written instrument, as an owner or as a lessee,
2and on which the person is liable for the payment of property
3taxes. Residential units in an apartment building owned and
4operated as a cooperative, or as a life care facility, which
5are occupied by persons who hold a legal or equitable interest
6in the cooperative apartment building or life care facility as
7owners or lessees, and who are liable by contract for the
8payment of property taxes, are included within this definition
9of homestead property. A homestead includes the dwelling place,
10appurtenant structures, and so much of the surrounding land
11constituting the parcel on which the dwelling place is situated
12as is used for residential purposes. If the assessor has
13established a specific legal description for a portion of
14property constituting the homestead, then the homestead is
15limited to the property within that description.
16    "Household income" has the meaning set forth under Section
1715-172 of this Code. Beginning in assessment year 2016,
18"household income" does not include Social Security benefits.
19    "General homestead deduction" means the amount of the
20general homestead exemption under Section 15-175.
21    "Life care facility" means a facility defined in Section 2
22of the Life Care Facilities Act.
23    "Qualified homestead property" means homestead property
24owned by a qualified taxpayer.
25    "Qualified taxpayer" means any individual:
26        (1) who, for at least 10 continuous years as of January

 

 

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1    1 of the taxable year, has occupied the same homestead
2    property as a principal residence and domicile or who, for
3    at least 5 continuous years as of January 1 of the taxable
4    year, has occupied the same homestead property as a
5    principal residence and domicile if that person received
6    assistance in the acquisition of the property as part of a
7    government or nonprofit housing program; and
8        (2) who has a household income of $100,000 or less.
9    (c) The base homestead value must remain constant, except
10that the assessor may revise it under any of the following
11circumstances:
12        (1) If the equalized assessed value of a homestead
13    property for the current tax year is less than the previous
14    base homestead value for that property, then the current
15    equalized assessed value (provided it is not based on a
16    reduced assessed value resulting from a temporary
17    irregularity in the property) becomes the base homestead
18    value in subsequent tax years.
19        (2) For any year in which new buildings, structures, or
20    other improvements are constructed on the homestead
21    property that would increase its assessed value, the
22    assessor shall adjust the base homestead value with due
23    regard to the value added by the new improvements.
24    (d) The amount of the exemption under this Section is the
25greater of: (i) the equalized assessed value of the homestead
26property for the current tax year minus the adjusted homestead

 

 

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1value; or (ii) the general homestead deduction.
2    (e) In the case of an apartment building owned and operated
3as a cooperative, or as a life care facility, that contains
4residential units that qualify as homestead property of a
5qualified taxpayer under this Section, the maximum cumulative
6exemption amount attributed to the entire building or facility
7shall not exceed the sum of the exemptions calculated for each
8unit that is a qualified homestead property. The cooperative
9association, management firm, or other person or entity that
10manages or controls the cooperative apartment building or life
11care facility shall credit the exemption attributable to each
12residential unit only to the apportioned tax liability of the
13qualified taxpayer as to that unit. Any person who willfully
14refuses to so credit the exemption is guilty of a Class B
15misdemeanor.
16    (f) When married persons maintain separate residences, the
17exemption provided under this Section may be claimed by only
18one such person and for only one residence. No person who
19receives an exemption under Section 15-172 of this Code may
20receive an exemption under this Section. No person who receives
21an exemption under this Section may receive an exemption under
22Section 15-175 or 15-176 of this Code.
23    (g) In the event of a sale or other transfer in ownership
24of the homestead property between spouses or between a parent
25and a child, the exemption under this Section remains in effect
26if the new owner has a household income of $100,000 or less.

 

 

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1    (h) In the event of a sale or other transfer in ownership
2of the homestead property other than subsection (g) of this
3Section, the exemption under this Section shall remain in
4effect for the remainder of the tax year and be calculated
5using the same base homestead value in which the sale or
6transfer occurs.
7    (i) To receive the exemption, a person must submit an
8application to the county assessor during the period specified
9by the county assessor.
10    The county assessor shall annually give notice of the
11application period by mail or by publication.
12    The taxpayer must submit, with the application, an
13affidavit of the taxpayer's total household income, marital
14status (and if married the name and address of the applicant's
15spouse, if known), and principal dwelling place of members of
16the household on January 1 of the taxable year. The Department
17shall establish, by rule, a method for verifying the accuracy
18of affidavits filed by applicants under this Section, and the
19Chief County Assessment Officer may conduct audits of any
20taxpayer claiming an exemption under this Section to verify
21that the taxpayer is eligible to receive the exemption. Each
22application shall contain or be verified by a written
23declaration that it is made under the penalties of perjury. A
24taxpayer's signing a fraudulent application under this Act is
25perjury, as defined in Section 32-2 of the Criminal Code of
262012. The applications shall be clearly marked as applications

 

 

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1for the Long-time Occupant Homestead Exemption and must contain
2a notice that any taxpayer who receives the exemption is
3subject to an audit by the Chief County Assessment Officer.
4    (j) Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 97-1150, eff. 1-25-13.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.