99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2428

 

Introduced 2/9/2016, by Sen. Emil Jones, III

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-167
35 ILCS 200/15-168
35 ILCS 200/15-169
35 ILCS 200/15-170
35 ILCS 200/15-172
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, when granting a leasehold exemption under the returning veterans' homestead exemption, the homestead exemption for persons with disabilities, the homestead exemption for veterans with disabilities, the senior citizens homestead exemption, or the senior citizens assessment freeze homestead exemption, the chief county assessment officer may require the applicant to meet the conditions set forth in the Section concerning the general homestead exemption. Provides that the chief county assessment officer may not require payment of real estate taxes by the lessee to the county collector. Effective immediately.


LRB099 15843 HLH 42104 b

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

 

 

A BILL FOR

 

SB2428LRB099 15843 HLH 42104 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 15-167, 15-168, 15-169, 15-170, 15-172, and 15-175 as
6follows:
 
7    (35 ILCS 200/15-167)
8    Sec. 15-167. Returning Veterans' Homestead Exemption.
9    (a) Beginning with taxable year 2007, a homestead
10exemption, limited to a reduction set forth under subsection
11(b), from the property's value, as equalized or assessed by the
12Department, is granted for property that is owned and occupied
13as the principal residence of a veteran returning from an armed
14conflict involving the armed forces of the United States who is
15liable for paying real estate taxes on the property and is an
16owner of record of the property or has a legal or equitable
17interest therein as evidenced by a written instrument, except
18for a leasehold interest, other than a leasehold interest of
19land on which a single family residence is located, which is
20occupied as the principal residence of a veteran returning from
21an armed conflict involving the armed forces of the United
22States who has an ownership interest therein, legal, equitable
23or as a lessee, and on which he or she is liable for the payment

 

 

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1of property taxes. For purposes of the exemption under this
2Section, "veteran" means an Illinois resident who has served as
3a member of the United States Armed Forces, a member of the
4Illinois National Guard, or a member of the United States
5Reserve Forces.
6    (a-5) The chief county assessment officer may, when
7considering whether to grant a leasehold exemption under this
8Section, require the conditions set forth in subsection (e) of
9Section 15-175 to be met.
10    (b) In all counties, the reduction is $5,000 for the
11taxable year in which the veteran returns from active duty in
12an armed conflict involving the armed forces of the United
13States; however, if the veteran first acquires his or her
14principal residence during the taxable year in which he or she
15returns, but after January 1 of that year, and if the property
16is owned and occupied by the veteran as a principal residence
17on January 1 of the next taxable year, he or she may apply the
18exemption for the next taxable year, and only the next taxable
19year, after he or she returns. Beginning in taxable year 2010,
20the reduction shall also be allowed for the taxable year after
21the taxable year in which the veteran returns from active duty
22in an armed conflict involving the armed forces of the United
23States. For land improved with an apartment building owned and
24operated as a cooperative, the maximum reduction from the value
25of the property, as equalized by the Department, must be
26multiplied by the number of apartments or units occupied by a

 

 

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1veteran returning from an armed conflict involving the armed
2forces of the United States who is liable, by contract with the
3owner or owners of record, for paying property taxes on the
4property and is an owner of record of a legal or equitable
5interest in the cooperative apartment building, other than a
6leasehold interest. In a cooperative where a homestead
7exemption has been granted, the cooperative association or the
8management firm of the cooperative or facility shall credit the
9savings resulting from that exemption only to the apportioned
10tax liability of the owner or resident who qualified for the
11exemption. Any person who willfully refuses to so credit the
12savings is guilty of a Class B misdemeanor.
13    (c) Application must be made during the application period
14in effect for the county of his or her residence. The assessor
15or chief county assessment officer may determine the
16eligibility of residential property to receive the homestead
17exemption provided by this Section by application, visual
18inspection, questionnaire, or other reasonable methods. The
19determination must be made in accordance with guidelines
20established by the Department.
21    (d) The exemption under this Section is in addition to any
22other homestead exemption provided in this Article 15.
23Notwithstanding Sections 6 and 8 of the State Mandates Act, no
24reimbursement by the State is required for the implementation
25of any mandate created by this Section.
26(Source: P.A. 96-1288, eff. 7-26-10; 96-1418, eff. 8-2-10;

 

 

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197-333, eff. 8-12-11.)
 
2    (35 ILCS 200/15-168)
3    Sec. 15-168. Homestead exemption for persons with
4disabilities.
5    (a) Beginning with taxable year 2007, an annual homestead
6exemption is granted to persons with disabilities in the amount
7of $2,000, except as provided in subsection (c), to be deducted
8from the property's value as equalized or assessed by the
9Department of Revenue. The person with a disability shall
10receive the homestead exemption upon meeting the following
11requirements:
12        (1) The property must be occupied as the primary
13    residence by the person with a disability.
14        (2) The person with a disability must be liable for
15    paying the real estate taxes on the property.
16        (3) The person with a disability must be an owner of
17    record of the property or have a legal or equitable
18    interest in the property as evidenced by a written
19    instrument. In the case of a leasehold interest in
20    property, the lease must be for a single family residence.
21    The chief county assessment officer may, when considering
22whether to grant a leasehold exemption under this Section,
23require the conditions set forth in subsection (e) of Section
2415-175 to be met.
25    A person who has a disability during the taxable year is

 

 

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1eligible to apply for this homestead exemption during that
2taxable year. Application must be made during the application
3period in effect for the county of residence. If a homestead
4exemption has been granted under this Section and the person
5awarded the exemption subsequently becomes a resident of a
6facility licensed under the Nursing Home Care Act, the
7Specialized Mental Health Rehabilitation Act of 2013, the ID/DD
8Community Care Act, or the MC/DD Act, then the exemption shall
9continue (i) so long as the residence continues to be occupied
10by the qualifying person's spouse or (ii) if the residence
11remains unoccupied but is still owned by the person qualified
12for the homestead exemption.
13    (b) For the purposes of this Section, "person with a
14disability" means a person unable to engage in any substantial
15gainful activity by reason of a medically determinable physical
16or mental impairment which can be expected to result in death
17or has lasted or can be expected to last for a continuous
18period of not less than 12 months. Persons with disabilities
19filing claims under this Act shall submit proof of disability
20in such form and manner as the Department shall by rule and
21regulation prescribe. Proof that a claimant is eligible to
22receive disability benefits under the Federal Social Security
23Act shall constitute proof of disability for purposes of this
24Act. Issuance of an Illinois Person with a Disability
25Identification Card stating that the claimant is under a Class
262 disability, as defined in Section 4A of the Illinois

 

 

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1Identification Card Act, shall constitute proof that the person
2named thereon is a person with a disability for purposes of
3this Act. A person with a disability not covered under the
4Federal Social Security Act and not presenting an Illinois
5Person with a Disability Identification Card stating that the
6claimant is under a Class 2 disability shall be examined by a
7physician designated by the Department, and his status as a
8person with a disability determined using the same standards as
9used by the Social Security Administration. The costs of any
10required examination shall be borne by the claimant.
11    (c) For land improved with (i) an apartment building owned
12and operated as a cooperative or (ii) a life care facility as
13defined under Section 2 of the Life Care Facilities Act that is
14considered to be a cooperative, the maximum reduction from the
15value of the property, as equalized or assessed by the
16Department, shall be multiplied by the number of apartments or
17units occupied by a person with a disability. The person with a
18disability shall receive the homestead exemption upon meeting
19the following requirements:
20        (1) The property must be occupied as the primary
21    residence by the person with a disability.
22        (2) The person with a disability must be liable by
23    contract with the owner or owners of record for paying the
24    apportioned property taxes on the property of the
25    cooperative or life care facility. In the case of a life
26    care facility, the person with a disability must be liable

 

 

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1    for paying the apportioned property taxes under a life care
2    contract as defined in Section 2 of the Life Care
3    Facilities Act.
4        (3) The person with a disability must be an owner of
5    record of a legal or equitable interest in the cooperative
6    apartment building. A leasehold interest does not meet this
7    requirement.
8If a homestead exemption is granted under this subsection, the
9cooperative association or management firm shall credit the
10savings resulting from the exemption to the apportioned tax
11liability of the qualifying person with a disability. The chief
12county assessment officer may request reasonable proof that the
13association or firm has properly credited the exemption. A
14person who willfully refuses to credit an exemption to the
15qualified person with a disability is guilty of a Class B
16misdemeanor.
17    (d) The chief county assessment officer shall determine the
18eligibility of property to receive the homestead exemption
19according to guidelines established by the Department. After a
20person has received an exemption under this Section, an annual
21verification of eligibility for the exemption shall be mailed
22to the taxpayer.
23    In counties with fewer than 3,000,000 inhabitants, the
24chief county assessment officer shall provide to each person
25granted a homestead exemption under this Section a form to
26designate any other person to receive a duplicate of any notice

 

 

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1of delinquency in the payment of taxes assessed and levied
2under this Code on the person's qualifying property. The
3duplicate notice shall be in addition to the notice required to
4be provided to the person receiving the exemption and shall be
5given in the manner required by this Code. The person filing
6the request for the duplicate notice shall pay an
7administrative fee of $5 to the chief county assessment
8officer. The assessment officer shall then file the executed
9designation with the county collector, who shall issue the
10duplicate notices as indicated by the designation. A
11designation may be rescinded by the person with a disability in
12the manner required by the chief county assessment officer.
13    (e) A taxpayer who claims an exemption under Section 15-165
14or 15-169 may not claim an exemption under this Section.
15(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
1699-180, eff. 7-29-15; revised 10-20-15.)
 
17    (35 ILCS 200/15-169)
18    Sec. 15-169. Homestead exemption for veterans with
19disabilities.
20    (a) Beginning with taxable year 2007, an annual homestead
21exemption, limited to the amounts set forth in subsections (b)
22and (b-3), is granted for property that is used as a qualified
23residence by a veteran with a disability.
24    (b) For taxable years prior to 2015, the amount of the
25exemption under this Section is as follows:

 

 

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1        (1) for veterans with a service-connected disability
2    of at least (i) 75% for exemptions granted in taxable years
3    2007 through 2009 and (ii) 70% for exemptions granted in
4    taxable year 2010 and each taxable year thereafter, as
5    certified by the United States Department of Veterans
6    Affairs, the annual exemption is $5,000; and
7        (2) for veterans with a service-connected disability
8    of at least 50%, but less than (i) 75% for exemptions
9    granted in taxable years 2007 through 2009 and (ii) 70% for
10    exemptions granted in taxable year 2010 and each taxable
11    year thereafter, as certified by the United States
12    Department of Veterans Affairs, the annual exemption is
13    $2,500.
14    (b-3) For taxable years 2015 and thereafter:
15        (1) if the veteran has a service connected disability
16    of 30% or more but less than 50%, as certified by the
17    United States Department of Veterans Affairs, then the
18    annual exemption is $2,500;
19        (2) if the veteran has a service connected disability
20    of 50% or more but less than 70%, as certified by the
21    United States Department of Veterans Affairs, then the
22    annual exemption is $5,000; and
23        (3) if the veteran has a service connected disability
24    of 70% or more, as certified by the United States
25    Department of Veterans Affairs, then the property is exempt
26    from taxation under this Code.

 

 

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1    (b-5) If a homestead exemption is granted under this
2Section and the person awarded the exemption subsequently
3becomes a resident of a facility licensed under the Nursing
4Home Care Act or a facility operated by the United States
5Department of Veterans Affairs, then the exemption shall
6continue (i) so long as the residence continues to be occupied
7by the qualifying person's spouse or (ii) if the residence
8remains unoccupied but is still owned by the person who
9qualified for the homestead exemption.
10    (c) The tax exemption under this Section carries over to
11the benefit of the veteran's surviving spouse as long as the
12spouse holds the legal or beneficial title to the homestead,
13permanently resides thereon, and does not remarry. If the
14surviving spouse sells the property, an exemption not to exceed
15the amount granted from the most recent ad valorem tax roll may
16be transferred to his or her new residence as long as it is
17used as his or her primary residence and he or she does not
18remarry.
19    (c-1) Beginning with taxable year 2015, nothing in this
20Section shall require the veteran to have qualified for or
21obtained the exemption before death if the veteran was killed
22in the line of duty.
23    (d) The exemption under this Section applies for taxable
24year 2007 and thereafter. A taxpayer who claims an exemption
25under Section 15-165 or 15-168 may not claim an exemption under
26this Section.

 

 

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1    (e) Each taxpayer who has been granted an exemption under
2this Section must reapply on an annual basis. Application must
3be made during the application period in effect for the county
4of his or her residence. The assessor or chief county
5assessment officer may determine the eligibility of
6residential property to receive the homestead exemption
7provided by this Section by application, visual inspection,
8questionnaire, or other reasonable methods. The determination
9must be made in accordance with guidelines established by the
10Department.
11    (e-5) The chief county assessment officer may, when
12considering whether to grant a leasehold exemption under this
13Section, require the conditions set forth in subsection (e) of
14Section 15-175 to be met.
15    (f) For the purposes of this Section:
16    "Qualified residence" means real property, but less any
17portion of that property that is used for commercial purposes,
18with an equalized assessed value of less than $250,000 that is
19the primary residence of a veteran with a disability. Property
20rented for more than 6 months is presumed to be used for
21commercial purposes.
22    "Veteran" means an Illinois resident who has served as a
23member of the United States Armed Forces on active duty or
24State active duty, a member of the Illinois National Guard, or
25a member of the United States Reserve Forces and who has
26received an honorable discharge.

 

 

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1(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
299-375, eff. 8-17-15; revised 10-9-15.)
 
3    (35 ILCS 200/15-170)
4    Sec. 15-170. Senior Citizens Homestead Exemption. An
5annual homestead exemption limited, except as described here
6with relation to cooperatives or life care facilities, to a
7maximum reduction set forth below from the property's value, as
8equalized or assessed by the Department, is granted for
9property that is occupied as a residence by a person 65 years
10of age or older who is liable for paying real estate taxes on
11the property and is an owner of record of the property or has a
12legal or equitable interest therein as evidenced by a written
13instrument, except for a leasehold interest, other than a
14leasehold interest of land on which a single family residence
15is located, which is occupied as a residence by a person 65
16years or older who has an ownership interest therein, legal,
17equitable or as a lessee, and on which he or she is liable for
18the payment of property taxes. Before taxable year 2004, the
19maximum reduction shall be $2,500 in counties with 3,000,000 or
20more inhabitants and $2,000 in all other counties. For taxable
21years 2004 through 2005, the maximum reduction shall be $3,000
22in all counties. For taxable years 2006 and 2007, the maximum
23reduction shall be $3,500. For taxable years 2008 through 2011,
24the maximum reduction is $4,000 in all counties. For taxable
25year 2012, the maximum reduction is $5,000 in counties with

 

 

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13,000,000 or more inhabitants and $4,000 in all other counties.
2For taxable years 2013 and thereafter, the maximum reduction is
3$5,000 in all counties.
4    The chief county assessment officer may, when considering
5whether to grant a leasehold exemption under this Section,
6require the conditions set forth in subsection (e) of Section
715-175 to be met.
8    For land improved with an apartment building owned and
9operated as a cooperative, the maximum reduction from the value
10of the property, as equalized by the Department, shall be
11multiplied by the number of apartments or units occupied by a
12person 65 years of age or older who is liable, by contract with
13the owner or owners of record, for paying property taxes on the
14property and is an owner of record of a legal or equitable
15interest in the cooperative apartment building, other than a
16leasehold interest. For land improved with a life care
17facility, the maximum reduction from the value of the property,
18as equalized by the Department, shall be multiplied by the
19number of apartments or units occupied by persons 65 years of
20age or older, irrespective of any legal, equitable, or
21leasehold interest in the facility, who are liable, under a
22contract with the owner or owners of record of the facility,
23for paying property taxes on the property. In a cooperative or
24a life care facility where a homestead exemption has been
25granted, the cooperative association or the management firm of
26the cooperative or facility shall credit the savings resulting

 

 

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1from that exemption only to the apportioned tax liability of
2the owner or resident who qualified for the exemption. Any
3person who willfully refuses to so credit the savings shall be
4guilty of a Class B misdemeanor. Under this Section and
5Sections 15-175, 15-176, and 15-177, "life care facility" means
6a facility, as defined in Section 2 of the Life Care Facilities
7Act, with which the applicant for the homestead exemption has a
8life care contract as defined in that Act.
9    When a homestead exemption has been granted under this
10Section and the person qualifying subsequently becomes a
11resident of a facility licensed under the Assisted Living and
12Shared Housing Act, the Nursing Home Care Act, the Specialized
13Mental Health Rehabilitation Act of 2013, the ID/DD Community
14Care Act, or the MC/DD Act, the exemption shall continue so
15long as the residence continues to be occupied by the
16qualifying person's spouse if the spouse is 65 years of age or
17older, or if the residence remains unoccupied but is still
18owned by the person qualified for the homestead exemption.
19    A person who will be 65 years of age during the current
20assessment year shall be eligible to apply for the homestead
21exemption during that assessment year. Application shall be
22made during the application period in effect for the county of
23his residence.
24    Beginning with assessment year 2003, for taxes payable in
252004, property that is first occupied as a residence after
26January 1 of any assessment year by a person who is eligible

 

 

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1for the senior citizens homestead exemption under this Section
2must be granted a pro-rata exemption for the assessment year.
3The amount of the pro-rata exemption is the exemption allowed
4in the county under this Section divided by 365 and multiplied
5by the number of days during the assessment year the property
6is occupied as a residence by a person eligible for the
7exemption under this Section. The chief county assessment
8officer must adopt reasonable procedures to establish
9eligibility for this pro-rata exemption.
10    The assessor or chief county assessment officer may
11determine the eligibility of a life care facility to receive
12the benefits provided by this Section, by affidavit,
13application, visual inspection, questionnaire or other
14reasonable methods in order to insure that the tax savings
15resulting from the exemption are credited by the management
16firm to the apportioned tax liability of each qualifying
17resident. The assessor may request reasonable proof that the
18management firm has so credited the exemption.
19    The chief county assessment officer of each county with
20less than 3,000,000 inhabitants shall provide to each person
21allowed a homestead exemption under this Section a form to
22designate any other person to receive a duplicate of any notice
23of delinquency in the payment of taxes assessed and levied
24under this Code on the property of the person receiving the
25exemption. The duplicate notice shall be in addition to the
26notice required to be provided to the person receiving the

 

 

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1exemption, and shall be given in the manner required by this
2Code. The person filing the request for the duplicate notice
3shall pay a fee of $5 to cover administrative costs to the
4supervisor of assessments, who shall then file the executed
5designation with the county collector. Notwithstanding any
6other provision of this Code to the contrary, the filing of
7such an executed designation requires the county collector to
8provide duplicate notices as indicated by the designation. A
9designation may be rescinded by the person who executed such
10designation at any time, in the manner and form required by the
11chief county assessment officer.
12    The assessor or chief county assessment officer may
13determine the eligibility of residential property to receive
14the homestead exemption provided by this Section by
15application, visual inspection, questionnaire or other
16reasonable methods. The determination shall be made in
17accordance with guidelines established by the Department.
18    In counties with 3,000,000 or more inhabitants, beginning
19in taxable year 2010, each taxpayer who has been granted an
20exemption under this Section must reapply on an annual basis.
21The chief county assessment officer shall mail the application
22to the taxpayer. In counties with less than 3,000,000
23inhabitants, the county board may by resolution provide that if
24a person has been granted a homestead exemption under this
25Section, the person qualifying need not reapply for the
26exemption.

 

 

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1    In counties with less than 3,000,000 inhabitants, if the
2assessor or chief county assessment officer requires annual
3application for verification of eligibility for an exemption
4once granted under this Section, the application shall be
5mailed to the taxpayer.
6    The assessor or chief county assessment officer shall
7notify each person who qualifies for an exemption under this
8Section that the person may also qualify for deferral of real
9estate taxes under the Senior Citizens Real Estate Tax Deferral
10Act. The notice shall set forth the qualifications needed for
11deferral of real estate taxes, the address and telephone number
12of county collector, and a statement that applications for
13deferral of real estate taxes may be obtained from the county
14collector.
15    Notwithstanding Sections 6 and 8 of the State Mandates Act,
16no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18(Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,
19eff. 7-16-14; 99-180, eff. 7-29-15.)
 
20    (35 ILCS 200/15-172)
21    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
22Exemption.
23    (a) This Section may be cited as the Senior Citizens
24Assessment Freeze Homestead Exemption.
25    (b) As used in this Section:

 

 

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

 

 

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

 

 

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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    The chief county assessment officer may, when considering
20whether to grant a leasehold exemption under this Section,
21require the conditions set forth in subsection (e) of Section
2215-175 to be met.
23    In counties of 3,000,000 or more inhabitants, the amount of
24the exemption for all taxable years is the equalized assessed
25value of the residence in the taxable year for which
26application is made minus the base amount. In all other

 

 

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

 

 

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

 

 

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

 

 

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1years.
2    When married persons maintain separate residences, the
3exemption provided for in this Section may be claimed by only
4one of such persons and for only one residence.
5    For taxable year 1994 only, in counties having less than
63,000,000 inhabitants, to receive the exemption, a person shall
7submit an application by February 15, 1995 to the Chief County
8Assessment Officer of the county in which the property is
9located. In counties having 3,000,000 or more inhabitants, for
10taxable year 1994 and all subsequent taxable years, to receive
11the exemption, a person may submit an application to the Chief
12County Assessment Officer of the county in which the property
13is located during such period as may be specified by the Chief
14County Assessment Officer. The Chief County Assessment Officer
15in counties of 3,000,000 or more inhabitants shall annually
16give notice of the application period by mail or by
17publication. In counties having less than 3,000,000
18inhabitants, beginning with taxable year 1995 and thereafter,
19to receive the exemption, a person shall submit an application
20by July 1 of each taxable year to the Chief County Assessment
21Officer of the county in which the property is located. A
22county may, by ordinance, establish a date for submission of
23applications that is different than July 1. The applicant shall
24submit with the application an affidavit of the applicant's
25total household income, age, marital status (and if married the
26name and address of the applicant's spouse, if known), and

 

 

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

 

 

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1provided in this paragraph, the applicant shall provide the
2Chief County Assessment Officer with a signed statement from
3the applicant's physician stating the nature and extent of the
4condition, that, in the physician's opinion, the condition was
5so severe that it rendered the applicant incapable of filing
6the application in a timely manner, and the date on which the
7applicant regained the capability to file the application.
8    Beginning January 1, 1998, notwithstanding any other
9provision to the contrary, in counties having fewer than
103,000,000 inhabitants, if an applicant fails to file the
11application required by this Section in a timely manner and
12this failure to file is due to a mental or physical condition
13sufficiently severe so as to render the applicant incapable of
14filing the application in a timely manner, the Chief County
15Assessment Officer may extend the filing deadline for a period
16of 3 months. In order to receive the extension provided in this
17paragraph, the applicant shall provide the Chief County
18Assessment Officer with a signed statement from the applicant's
19physician stating the nature and extent of the condition, and
20that, in the physician's opinion, the condition was so severe
21that it rendered the applicant incapable of filing the
22application in a timely manner.
23    In counties having less than 3,000,000 inhabitants, if an
24applicant was denied an exemption in taxable year 1994 and the
25denial occurred due to an error on the part of an assessment
26official, or his or her agent or employee, then beginning in

 

 

SB2428- 28 -LRB099 15843 HLH 42104 b

1taxable year 1997 the applicant's base year, for purposes of
2determining the amount of the exemption, shall be 1993 rather
3than 1994. In addition, in taxable year 1997, the applicant's
4exemption shall also include an amount equal to (i) the amount
5of any exemption denied to the applicant in taxable year 1995
6as a result of using 1994, rather than 1993, as the base year,
7(ii) the amount of any exemption denied to the applicant in
8taxable year 1996 as a result of using 1994, rather than 1993,
9as the base year, and (iii) the amount of the exemption
10erroneously denied for taxable year 1994.
11    For purposes of this Section, a person who will be 65 years
12of age during the current taxable year shall be eligible to
13apply for the homestead exemption during that taxable year.
14Application shall be made during the application period in
15effect for the county of his or her residence.
16    The Chief County Assessment Officer may determine the
17eligibility of a life care facility that qualifies as a
18cooperative to receive the benefits provided by this Section by
19use of an affidavit, application, visual inspection,
20questionnaire, or other reasonable method in order to insure
21that the tax savings resulting from the exemption are credited
22by the management firm to the apportioned tax liability of each
23qualifying resident. The Chief County Assessment Officer may
24request reasonable proof that the management firm has so
25credited that exemption.
26    Except as provided in this Section, all information

 

 

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

 

 

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1no reimbursement by the State is required for the
2implementation of any mandate created by this Section.
3(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
499-180, eff. 7-29-15; revised 10-21-15.)
 
5    (35 ILCS 200/15-175)
6    Sec. 15-175. General homestead exemption.
7    (a) Except as provided in Sections 15-176 and 15-177,
8homestead property is entitled to an annual homestead exemption
9limited, except as described here with relation to
10cooperatives, to a reduction in the equalized assessed value of
11homestead property equal to the increase in equalized assessed
12value for the current assessment year above the equalized
13assessed value of the property for 1977, up to the maximum
14reduction set forth below. If however, the 1977 equalized
15assessed value upon which taxes were paid is subsequently
16determined by local assessing officials, the Property Tax
17Appeal Board, or a court to have been excessive, the equalized
18assessed value which should have been placed on the property
19for 1977 shall be used to determine the amount of the
20exemption.
21    (b) Except as provided in Section 15-176, the maximum
22reduction before taxable year 2004 shall be $4,500 in counties
23with 3,000,000 or more inhabitants and $3,500 in all other
24counties. Except as provided in Sections 15-176 and 15-177, for
25taxable years 2004 through 2007, the maximum reduction shall be

 

 

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1$5,000, for taxable year 2008, the maximum reduction is $5,500,
2and, for taxable years 2009 through 2011, the maximum reduction
3is $6,000 in all counties. For taxable years 2012 and
4thereafter, the maximum reduction is $7,000 in counties with
53,000,000 or more inhabitants and $6,000 in all other counties.
6If a county has elected to subject itself to the provisions of
7Section 15-176 as provided in subsection (k) of that Section,
8then, for the first taxable year only after the provisions of
9Section 15-176 no longer apply, for owners who, for the taxable
10year, have not been granted a senior citizens assessment freeze
11homestead exemption under Section 15-172 or a long-time
12occupant homestead exemption under Section 15-177, there shall
13be an additional exemption of $5,000 for owners with a
14household income of $30,000 or less.
15    (c) In counties with fewer than 3,000,000 inhabitants, if,
16based on the most recent assessment, the equalized assessed
17value of the homestead property for the current assessment year
18is greater than the equalized assessed value of the property
19for 1977, the owner of the property shall automatically receive
20the exemption granted under this Section in an amount equal to
21the increase over the 1977 assessment up to the maximum
22reduction set forth in this Section.
23    (d) If in any assessment year beginning with the 2000
24assessment year, homestead property has a pro-rata valuation
25under Section 9-180 resulting in an increase in the assessed
26valuation, a reduction in equalized assessed valuation equal to

 

 

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1the increase in equalized assessed value of the property for
2the year of the pro-rata valuation above the equalized assessed
3value of the property for 1977 shall be applied to the property
4on a proportionate basis for the period the property qualified
5as homestead property during the assessment year. The maximum
6proportionate homestead exemption shall not exceed the maximum
7homestead exemption allowed in the county under this Section
8divided by 365 and multiplied by the number of days the
9property qualified as homestead property.
10    (e) The chief county assessment officer may, when granting
11considering whether to grant a leasehold exemption under this
12Section, Section 15-167, Section 15-168, Section 15-169,
13Section 15-170, or Section 15-172 require the following
14conditions to be met:
15        (1) that a notarized application for the exemption,
16    signed by both the owner and the lessee of the property,
17    must be submitted each year during the application period
18    in effect for the county in which the property is located;
19        (2) that a copy of the lease must be filed with the
20    chief county assessment officer by the owner of the
21    property at the time the notarized application is
22    submitted;
23        (3) that the lease must expressly state that the lessee
24    is liable for the payment of property taxes; however, the
25    payment of property taxes by the lessee to the county
26    collector shall not be a requirement; and

 

 

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1        (4) that the lease must include the following language
2    in substantially the following form:
3            "Lessee shall be liable for the payment of property
4        real estate taxes with respect to the residence in
5        accordance with the terms and conditions of Section
6        15-167, Section 15-168, Section 15-169, Section
7        15-170, Section 15-172, and Section 15-175 of the
8        Property Tax Code (35 ILCS 200/15-167; 35 ILCS
9        200/15-168; 35 ILCS 200/15-169; 35 ILCS 200/15-170; 35
10        ILCS 200/15-172; and 35 ILCS 200/15-175), as
11        applicable. The permanent real estate index number for
12        the premises is (insert number), and, according to the
13        most recent property tax bill, the current amount of
14        property real estate taxes associated with the
15        premises is (insert amount) per year. The parties agree
16        that the monthly rent set forth above shall be
17        increased or decreased pro rata (effective January 1 of
18        each calendar year) to reflect any increase or decrease
19        in property real estate taxes. Lessee shall be deemed
20        to be satisfying Lessee's liability for the above
21        mentioned property 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
25lessee vacates the property, then the chief county assessment
26officer may require the owner of the property to notify the

 

 

SB2428- 34 -LRB099 15843 HLH 42104 b

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

 

 

SB2428- 35 -LRB099 15843 HLH 42104 b

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

 

 

SB2428- 36 -LRB099 15843 HLH 42104 b

1the chief county assessment officer an application with an
2affidavit of the applicant's total household income, age,
3marital status (and, if married, the name and address of the
4applicant's spouse, if known), and principal dwelling place of
5members of the household on January 1 of the taxable year. The
6Department shall issue guidelines establishing a method for
7verifying the accuracy of the affidavits filed by applicants
8under this paragraph. The applications shall be clearly marked
9as applications for the Additional General Homestead
10Exemption.
11    (i-5) This subsection (i-5) applies to counties with
123,000,000 or more inhabitants. In the event of a sale of
13homestead property, the homestead exemption shall remain in
14effect for the remainder of the assessment year of the sale.
15Upon receipt of a transfer declaration transmitted by the
16recorder pursuant to Section 31-30 of the Real Estate Transfer
17Tax Law for property receiving an exemption under this Section,
18the assessor shall mail a notice and forms to the new owner of
19the property providing information pertaining to the rules and
20applicable filing periods for applying or reapplying for
21homestead exemptions under this Code for which the property may
22be eligible. If the new owner fails to apply or reapply for a
23homestead exemption during the applicable filing period or the
24property no longer qualifies for an existing homestead
25exemption, the assessor shall cancel such exemption for any
26ensuing assessment year.

 

 

SB2428- 37 -LRB099 15843 HLH 42104 b

1    (j) In counties with fewer than 3,000,000 inhabitants, in
2the event of a sale of homestead property the homestead
3exemption shall remain in effect for the remainder of the
4assessment year of the sale. The assessor or chief county
5assessment officer may require the new owner of the property to
6apply for the homestead exemption for the following assessment
7year.
8    (k) Notwithstanding Sections 6 and 8 of the State Mandates
9Act, no reimbursement by the State is required for the
10implementation of any mandate created by this Section.
11(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
12eff. 7-27-15; 99-164, eff. 7-28-15; revised 8-25-15.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.