100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0430

 

Introduced , by Rep. Avery Bourne

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the maximum reduction under the General Homestead Exemption is $7,000, and indexes the maximum reductions in all counties to the Consumer Price Index. Effective immediately.


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

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently
17determined by local assessing officials, the Property Tax
18Appeal Board, or a court to have been excessive, the equalized
19assessed value which should have been placed on the property
20for 1977 shall be used to determine the amount of the
21exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties

 

 

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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177, for
3taxable years 2004 through 2007, the maximum reduction shall be
4$5,000, for taxable year 2008, the maximum reduction is $5,500,
5and, for taxable years 2009 through 2011, the maximum reduction
6is $6,000 in all counties. For taxable years 2012 through 2016
7and thereafter, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable year 2017, the maximum reduction in all
10counties is $7,000; thereafter, the maximum reduction is the
11maximum reduction for the prior taxable year increased by the
12annual rate of increase for the previous calendar year in the
13Consumer Price Index for All Urban Consumers for all items
14published by the United States Bureau of Labor Statistics. If a
15county has elected to subject itself to the provisions of
16Section 15-176 as provided in subsection (k) of that Section,
17then, for the first taxable year only after the provisions of
18Section 15-176 no longer apply, for owners who, for the taxable
19year, have not been granted a senior citizens assessment freeze
20homestead exemption under Section 15-172 or a long-time
21occupant homestead exemption under Section 15-177, there shall
22be an additional exemption of $5,000 for owners with a
23household income of $30,000 or less.
24    (c) In counties with fewer than 3,000,000 inhabitants, if,
25based on the most recent assessment, the equalized assessed
26value of the homestead property for the current assessment year

 

 

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1is greater than the equalized assessed value of the property
2for 1977, the owner of the property shall automatically receive
3the exemption granted under this Section in an amount equal to
4the increase over the 1977 assessment up to the maximum
5reduction set forth in this Section.
6    (d) If in any assessment year beginning with the 2000
7assessment year, homestead property has a pro-rata valuation
8under Section 9-180 resulting in an increase in the assessed
9valuation, a reduction in equalized assessed valuation equal to
10the increase in equalized assessed value of the property for
11the year of the pro-rata valuation above the equalized assessed
12value of the property for 1977 shall be applied to the property
13on a proportionate basis for the period the property qualified
14as homestead property during the assessment year. The maximum
15proportionate homestead exemption shall not exceed the maximum
16homestead exemption allowed in the county under this Section
17divided by 365 and multiplied by the number of days the
18property qualified as homestead property.
19    (d-1) In counties with 3,000,000 or more inhabitants, where
20the chief county assessment officer provides a notice of
21discovery, if a property is not occupied by its owner as a
22principal residence as of January 1 of the current tax year,
23then the property owner shall notify the chief county
24assessment officer of that fact on a form prescribed by the
25chief county assessment officer. That notice must be received
26by the chief county assessment officer on or before March 1 of

 

 

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1the collection year. If mailed, the form shall be sent by
2certified mail, return receipt requested. If the form is
3provided in person, the chief county assessment officer shall
4provide a date stamped copy of the notice. Failure to provide
5timely notice pursuant to this subsection (d-1) shall result in
6the exemption being treated as an erroneous exemption. Upon
7timely receipt of the notice for the current tax year, no
8exemption shall be applied to the property for the current tax
9year. If the exemption is not removed upon timely receipt of
10the notice by the chief assessment officer, then the error is
11considered granted as a result of a clerical error or omission
12on the part of the chief county assessment officer as described
13in subsection (h) of Section 9-275, and the property owner
14shall not be liable for the payment of interest and penalties
15due to the erroneous exemption for the current tax year for
16which the notice was filed after the date that notice was
17timely received pursuant to this subsection. Notice provided
18under this subsection shall not constitute a defense or amnesty
19for prior year erroneous exemptions.
20    For the purposes of this subsection (d-1):
21    "Collection year" means the year in which the first and
22second installment of the current tax year is billed.
23    "Current tax year" means the year prior to the collection
24year.
25    (e) The chief county assessment officer may, when
26considering whether to grant a leasehold exemption under this

 

 

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

 

 

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

 

 

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1record of a legal or equitable interest in the cooperative
2apartment building, other than a leasehold interest. For
3purposes of this Section, the term "life care facility" has the
4meaning stated in Section 15-170.
5    "Household", as used in this Section, means the owner, the
6spouse of the owner, and all persons using the residence of the
7owner as their principal place of residence.
8    "Household income", as used in this Section, means the
9combined income of the members of a household for the calendar
10year preceding the taxable year.
11    "Income", as used in this Section, has the same meaning as
12provided in Section 3.07 of the Senior Citizens and Persons
13with Disabilities Property Tax Relief Act, except that "income"
14does not include veteran's benefits.
15    (g) In a cooperative where a homestead exemption has been
16granted, the cooperative association or its management firm
17shall credit the savings resulting from that exemption only to
18the apportioned tax liability of the owner who qualified for
19the exemption. Any person who willfully refuses to so credit
20the savings shall be guilty of a Class B misdemeanor.
21    (h) Where married persons maintain and reside in separate
22residences qualifying as homestead property, each residence
23shall receive 50% of the total reduction in equalized assessed
24valuation provided by this Section.
25    (i) In all counties, the assessor or chief county
26assessment officer may determine the eligibility of

 

 

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1residential property to receive the homestead exemption and the
2amount of the exemption by application, visual inspection,
3questionnaire or other reasonable methods. The determination
4shall be made in accordance with guidelines established by the
5Department, provided that the taxpayer applying for an
6additional general exemption under this Section shall submit to
7the chief county assessment officer an application with an
8affidavit of the applicant's total household income, age,
9marital status (and, if married, the name and address of the
10applicant's spouse, if known), and principal dwelling place of
11members of the household on January 1 of the taxable year. The
12Department shall issue guidelines establishing a method for
13verifying the accuracy of the affidavits filed by applicants
14under this paragraph. The applications shall be clearly marked
15as applications for the Additional General Homestead
16Exemption.
17    (i-5) This subsection (i-5) applies to counties with
183,000,000 or more inhabitants. In the event of a sale of
19homestead property, the homestead exemption shall remain in
20effect for the remainder of the assessment year of the sale.
21Upon receipt of a transfer declaration transmitted by the
22recorder pursuant to Section 31-30 of the Real Estate Transfer
23Tax Law for property receiving an exemption under this Section,
24the assessor shall mail a notice and forms to the new owner of
25the property providing information pertaining to the rules and
26applicable filing periods for applying or reapplying for

 

 

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1homestead exemptions under this Code for which the property may
2be eligible. If the new owner fails to apply or reapply for a
3homestead exemption during the applicable filing period or the
4property no longer qualifies for an existing homestead
5exemption, the assessor shall cancel such exemption for any
6ensuing assessment year.
7    (j) In counties with fewer than 3,000,000 inhabitants, in
8the event of a sale of homestead property the homestead
9exemption shall remain in effect for the remainder of the
10assessment year of the sale. The assessor or chief county
11assessment officer may require the new owner of the property to
12apply for the homestead exemption for the following assessment
13year.
14    (k) Notwithstanding Sections 6 and 8 of the State Mandates
15Act, no reimbursement by the State is required for the
16implementation of any mandate created by this Section.
17(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
18eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
1999-851, eff. 8-19-16.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.