102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0333

 

Introduced 1/29/2021, by Rep. Sam Yingling

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the maximum reduction for the senior homestead exemption is $9,000 in counties with a population of more than 500,000 but not more than 1,000,000, $8,000 in counties with 3,000,000 or more inhabitants, and $5,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the senior homestead exemption for property under the jurisdiction of that city or county to not more than $9,000. Provides that the maximum reduction for the general homestead exemption is $12,000 in counties with a population of more than 500,000 but not more than 1,000,000, $10,000 in counties with 3,000,000 or more inhabitants, and $6,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the general homestead exemption for property under the jurisdiction of that city or county to not more than $12,000.


LRB102 10092 HLH 15413 b

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

 

 

A BILL FOR

 

HB0333LRB102 10092 HLH 15413 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 15-170 and 15-175 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior citizens homestead exemption.
8    (a) An annual homestead exemption limited, except as
9described here with relation to cooperatives or life care
10facilities, to a maximum reduction set forth below from the
11property's value, as equalized or assessed by the Department,
12is granted for property that is occupied as a residence by a
13person 65 years of age or older who is liable for paying real
14estate taxes on the property and is an owner of record of the
15property or has a legal or equitable interest therein as
16evidenced by a written instrument, except for a leasehold
17interest, other than a leasehold interest of land on which a
18single family residence is located, which is occupied as a
19residence by a person 65 years or older who has an ownership
20interest therein, legal, equitable or as a lessee, and on
21which he or she is liable for the payment of property taxes.
22Before taxable year 2004, the maximum reduction shall be
23$2,500 in counties with 3,000,000 or more inhabitants and

 

 

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1$2,000 in all other counties. For taxable years 2004 through
22005, the maximum reduction shall be $3,000 in all counties.
3For taxable years 2006 and 2007, the maximum reduction shall
4be $3,500. For taxable years 2008 through 2011, the maximum
5reduction is $4,000 in all counties. For taxable year 2012,
6the maximum reduction is $5,000 in counties with 3,000,000 or
7more inhabitants and $4,000 in all other counties. For taxable
8years 2013 through 2016, the maximum reduction is $5,000 in
9all counties. For taxable years 2017 through 2020 and
10thereafter, the maximum reduction is $8,000 in counties with
113,000,000 or more inhabitants and $5,000 in all other
12counties. For taxable years 2021 and thereafter, the maximum
13reduction is $9,000 in counties with a population of more than
14500,000 but not more than 1,000,000, $8,000 in counties with
153,000,000 or more inhabitants, and $5,000 in all other
16counties; however, the corporate authorities of the City of
17Chicago may, by ordinance, increase the maximum reduction for
18property located in the City of Chicago to not more than
19$9,000, and the county board of a county with 3,000,000 or more
20inhabitants may, by ordinance, increase the maximum reduction
21for property located in that county to not more than $9,000. If
22such an ordinance is passed, the corporate authorities or
23county board, as applicable, shall transmit a copy of the
24ordinance to the county clerk, and the maximum reduction set
25forth in the ordinance shall take effect for the next taxable
26year to occur after the passage of the ordinance.

 

 

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1    (b) For land improved with an apartment building owned and
2operated as a cooperative, the maximum reduction from the
3value of the property, as equalized by the Department, shall
4be multiplied by the number of apartments or units occupied by
5a person 65 years of age or older who is liable, by contract
6with the owner or owners of record, for paying property taxes
7on the property and is an owner of record of a legal or
8equitable interest in the cooperative apartment building,
9other than a leasehold interest. For land improved with a life
10care facility, the maximum reduction from the value of the
11property, as equalized by the Department, shall be multiplied
12by the number of apartments or units occupied by persons 65
13years of age or older, irrespective of any legal, equitable,
14or leasehold interest in the facility, who are liable, under a
15contract with the owner or owners of record of the facility,
16for paying property taxes on the property. In a cooperative or
17a life care facility where a homestead exemption has been
18granted, the cooperative association or the management firm of
19the cooperative or facility shall credit the savings resulting
20from that exemption only to the apportioned tax liability of
21the owner or resident who qualified for the exemption. Any
22person who willfully refuses to so credit the savings shall be
23guilty of a Class B misdemeanor. Under this Section and
24Sections 15-175, 15-176, and 15-177, "life care facility"
25means a facility, as defined in Section 2 of the Life Care
26Facilities Act, with which the applicant for the homestead

 

 

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1exemption has a life care contract as defined in that Act.
2    (c) When a homestead exemption has been granted under this
3Section and the person qualifying subsequently becomes a
4resident of a facility licensed under the Assisted Living and
5Shared Housing Act, the Nursing Home Care Act, the Specialized
6Mental Health Rehabilitation Act of 2013, the ID/DD Community
7Care Act, or the MC/DD Act, the exemption shall continue so
8long as the residence continues to be occupied by the
9qualifying person's spouse if the spouse is 65 years of age or
10older, or if the residence remains unoccupied but is still
11owned by the person qualified for the homestead exemption.
12    (d) A person who will be 65 years of age during the current
13assessment year shall be eligible to apply for the homestead
14exemption during that assessment year. Application shall be
15made during the application period in effect for the county of
16his residence.
17    (e) Beginning with assessment year 2003, for taxes payable
18in 2004, property that is first occupied as a residence after
19January 1 of any assessment year by a person who is eligible
20for the senior citizens homestead exemption under this Section
21must be granted a pro-rata exemption for the assessment year.
22The amount of the pro-rata exemption is the exemption allowed
23in the county under this Section divided by 365 and multiplied
24by the number of days during the assessment year the property
25is occupied as a residence by a person eligible for the
26exemption under this Section. The chief county assessment

 

 

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1officer must adopt reasonable procedures to establish
2eligibility for this pro-rata exemption.
3    (f) The assessor or chief county assessment officer may
4determine the eligibility of a life care facility to receive
5the benefits provided by this Section, by affidavit,
6application, visual inspection, questionnaire or other
7reasonable methods in order to insure that the tax savings
8resulting from the exemption are credited by the management
9firm to the apportioned tax liability of each qualifying
10resident. The assessor may request reasonable proof that the
11management firm has so credited the exemption.
12    (g) The chief county assessment officer of each county
13with less than 3,000,000 inhabitants shall provide to each
14person allowed a homestead exemption under this Section a form
15to designate any other person to receive a duplicate of any
16notice of delinquency in the payment of taxes assessed and
17levied under this Code on the property of the person receiving
18the exemption. The duplicate notice shall be in addition to
19the notice required to be provided to the person receiving the
20exemption, and shall be given in the manner required by this
21Code. The person filing the request for the duplicate notice
22shall pay a fee of $5 to cover administrative costs to the
23supervisor of assessments, who shall then file the executed
24designation with the county collector. Notwithstanding any
25other provision of this Code to the contrary, the filing of
26such an executed designation requires the county collector to

 

 

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1provide duplicate notices as indicated by the designation. A
2designation may be rescinded by the person who executed such
3designation at any time, in the manner and form required by the
4chief county assessment officer.
5    (h) The assessor or chief county assessment officer may
6determine the eligibility of residential property to receive
7the homestead exemption provided by this Section by
8application, visual inspection, questionnaire or other
9reasonable methods. The determination shall be made in
10accordance with guidelines established by the Department.
11    (i) In counties with 3,000,000 or more inhabitants, for
12taxable years 2010 through 2018, and beginning again in
13taxable year 2024, each taxpayer who has been granted an
14exemption under this Section must reapply on an annual basis.
15    If a reapplication is required, then the chief county
16assessment officer shall mail the application to the taxpayer
17at least 60 days prior to the last day of the application
18period for the county.
19    For taxable years 2019 through 2023, in counties with
203,000,000 or more inhabitants, a taxpayer who has been granted
21an exemption under this Section need not reapply. However, if
22the property ceases to be qualified for the exemption under
23this Section in any year for which a reapplication is not
24required under this Section, then the owner of record of the
25property shall notify the chief county assessment officer that
26the property is no longer qualified. In addition, for taxable

 

 

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1years 2019 through 2023, the chief county assessment officer
2of a county with 3,000,000 or more inhabitants shall enter
3into an intergovernmental agreement with the county clerk of
4that county and the Department of Public Health, as well as any
5other appropriate governmental agency, to obtain information
6that documents the death of a taxpayer who has been granted an
7exemption under this Section. Notwithstanding any other
8provision of law, the county clerk and the Department of
9Public Health shall provide that information to the chief
10county assessment officer. The Department of Public Health
11shall supply this information no less frequently than every
12calendar quarter. Information concerning the death of a
13taxpayer may be shared with the county treasurer. The chief
14county assessment officer shall also enter into a data
15exchange agreement with the Social Security Administration or
16its agent to obtain access to the information regarding deaths
17in possession of the Social Security Administration. The chief
18county assessment officer shall, subject to the notice
19requirements under subsection (m) of Section 9-275, terminate
20the exemption under this Section if the information obtained
21indicates that the property is no longer qualified for the
22exemption. In counties with 3,000,000 or more inhabitants, the
23assessor and the county recorder of deeds shall establish
24policies and practices for the regular exchange of information
25for the purpose of alerting the assessor whenever the transfer
26of ownership of any property receiving an exemption under this

 

 

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1Section has occurred. When such a transfer occurs, the
2assessor shall mail a notice to the new owner of the property
3(i) informing the new owner that the exemption will remain in
4place through the year of the transfer, after which it will be
5canceled, and (ii) providing information pertaining to the
6rules for reapplying for the exemption if the owner qualifies.
7In counties with 3,000,000 or more inhabitants, the chief
8county assessment official shall conduct audits of all
9exemptions granted under this Section no later than December
1031, 2022 and no later than December 31, 2024. The audit shall
11be designed to ascertain whether any senior homestead
12exemptions have been granted erroneously. If it is determined
13that a senior homestead exemption has been erroneously applied
14to a property, the chief county assessment officer shall make
15use of the appropriate provisions of Section 9-275 in relation
16to the property that received the erroneous homestead
17exemption.
18    (j) In counties with less than 3,000,000 inhabitants, the
19county board may by resolution provide that if a person has
20been granted a homestead exemption under this Section, the
21person qualifying need not reapply for the exemption.
22    In counties with less than 3,000,000 inhabitants, if the
23assessor or chief county assessment officer requires annual
24application for verification of eligibility for an exemption
25once granted under this Section, the application shall be
26mailed to the taxpayer.

 

 

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1    (l) The assessor or chief county assessment officer shall
2notify each person who qualifies for an exemption under this
3Section that the person may also qualify for deferral of real
4estate taxes under the Senior Citizens Real Estate Tax
5Deferral Act. The notice shall set forth the qualifications
6needed for deferral of real estate taxes, the address and
7telephone number of county collector, and a statement that
8applications for deferral of real estate taxes may be obtained
9from the county collector.
10    (m) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13(Source: P.A. 100-401, eff. 8-25-17; 101-453, eff. 8-23-19;
14101-622, eff. 1-14-20.)
 
15    (35 ILCS 200/15-175)
16    Sec. 15-175. General homestead exemption.
17    (a) Except as provided in Sections 15-176 and 15-177,
18homestead property is entitled to an annual homestead
19exemption limited, except as described here with relation to
20cooperatives or life care facilities, to a reduction in the
21equalized assessed value of homestead property equal to the
22increase in equalized assessed value for the current
23assessment year above the equalized assessed value of the
24property for 1977, up to the maximum reduction set forth
25below. If however, the 1977 equalized assessed value upon

 

 

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1which taxes were paid is subsequently determined by local
2assessing officials, the Property Tax Appeal Board, or a court
3to have been excessive, the equalized assessed value which
4should have been placed on the property for 1977 shall be used
5to determine the amount of the exemption.
6    (b) Except as provided in Section 15-176, the maximum
7reduction before taxable year 2004 shall be $4,500 in counties
8with 3,000,000 or more inhabitants and $3,500 in all other
9counties. Except as provided in Sections 15-176 and 15-177,
10for taxable years 2004 through 2007, the maximum reduction
11shall be $5,000, for taxable year 2008, the maximum reduction
12is $5,500, and, for taxable years 2009 through 2011, the
13maximum reduction is $6,000 in all counties. For taxable years
142012 through 2016, the maximum reduction is $7,000 in counties
15with 3,000,000 or more inhabitants and $6,000 in all other
16counties. For taxable years 2017 through 2020 and thereafter,
17the maximum reduction is $10,000 in counties with 3,000,000 or
18more inhabitants and $6,000 in all other counties. For taxable
19years 2021 and thereafter, the maximum reduction is $12,000 in
20counties with a population of more than 500,000 but not more
21than 1,000,000, $10,000 in counties with 3,000,000 or more
22inhabitants, and $6,000 in all other counties; however, the
23corporate authorities of the City of Chicago may, by
24ordinance, increase the maximum reduction for property located
25in the City of Chicago to not more than $12,000, and the county
26board of a county with 3,000,000 or more inhabitants may, by

 

 

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

 

 

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1under Section 9-180 resulting in an increase in the assessed
2valuation, a reduction in equalized assessed valuation equal
3to the increase in equalized assessed value of the property
4for the year of the pro-rata valuation above the equalized
5assessed value of the property for 1977 shall be applied to the
6property on a proportionate basis for the period the property
7qualified as homestead property during the assessment year.
8The maximum proportionate homestead exemption shall not exceed
9the maximum homestead exemption allowed in the county under
10this Section divided by 365 and multiplied by the number of
11days the property qualified as homestead property.
12    (d-1) In counties with 3,000,000 or more inhabitants,
13where the chief county assessment officer provides a notice of
14discovery, if a property is not occupied by its owner as a
15principal residence as of January 1 of the current tax year,
16then the property owner shall notify the chief county
17assessment officer of that fact on a form prescribed by the
18chief county assessment officer. That notice must be received
19by the chief county assessment officer on or before March 1 of
20the collection year. If mailed, the form shall be sent by
21certified mail, return receipt requested. If the form is
22provided in person, the chief county assessment officer shall
23provide a date stamped copy of the notice. Failure to provide
24timely notice pursuant to this subsection (d-1) shall result
25in the exemption being treated as an erroneous exemption. Upon
26timely receipt of the notice for the current tax year, no

 

 

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1exemption shall be applied to the property for the current tax
2year. If the exemption is not removed upon timely receipt of
3the notice by the chief assessment officer, then the error is
4considered granted as a result of a clerical error or omission
5on the part of the chief county assessment officer as
6described in subsection (h) of Section 9-275, and the property
7owner shall not be liable for the payment of interest and
8penalties due to the erroneous exemption for the current tax
9year for which the notice was filed after the date that notice
10was timely received pursuant to this subsection. Notice
11provided under this subsection shall not constitute a defense
12or amnesty for prior year erroneous exemptions.
13    For the purposes of this subsection (d-1):
14    "Collection year" means the year in which the first and
15second installment of the current tax year is billed.
16    "Current tax year" means the year prior to the collection
17year.
18    (e) The chief county assessment officer may, when
19considering whether to grant a leasehold exemption under this
20Section, require the following conditions to be met:
21        (1) that a notarized application for the exemption,
22    signed by both the owner and the lessee of the property,
23    must be submitted each year during the application period
24    in effect for the county in which the property is located;
25        (2) that a copy of the lease must be filed with the
26    chief county assessment officer by the owner of the

 

 

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

 

 

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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
6as his or their principal dwelling place, or that is a
7leasehold interest on which a single family residence is
8situated, which is occupied as a residence by a person who has
9an ownership interest therein, legal or equitable or as a
10lessee, and on which the person is liable for the payment of
11property taxes. For land improved with an apartment building
12owned and operated as a cooperative, the maximum reduction
13from the equalized assessed value shall be limited to the
14increase in the value above the equalized assessed value of
15the property for 1977, up to the maximum reduction set forth
16above, multiplied by the number of apartments or units
17occupied by a person or persons who is liable, by contract with
18the owner or owners of record, for paying property taxes on the
19property and is an owner of record of a legal or equitable
20interest in the cooperative apartment building, other than a
21leasehold interest. For land improved with a life care
22facility, the maximum reduction from the value of the
23property, as equalized by the Department, shall be multiplied
24by the number of apartments or units occupied by a person or
25persons, irrespective of any legal, equitable, or leasehold
26interest in the facility, who are liable, under a life care

 

 

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1contract with the owner or owners of record of the facility,
2for paying property taxes on the property. For purposes of
3this Section, the term "life care facility" has the meaning
4stated 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
14"income" does not include veteran's benefits.
15    (g) In a cooperative or life care facility where a
16homestead exemption has been granted, the cooperative
17association or the management of the cooperative or life care
18facility shall credit the savings resulting from that
19exemption only to the apportioned tax liability of the owner
20or resident who qualified for the exemption. Any person who
21willfully refuses to so credit the savings shall be guilty of a
22Class B misdemeanor.
23    (h) Where married persons maintain and reside in separate
24residences qualifying as homestead property, each residence
25shall receive 50% of the total reduction in equalized assessed
26valuation provided by this Section.

 

 

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1    (i) In all counties, the assessor or chief county
2assessment officer may determine the eligibility of
3residential property to receive the homestead exemption and
4the amount of the exemption by application, visual inspection,
5questionnaire or other reasonable methods. The determination
6shall be made in accordance with guidelines established by the
7Department, provided that the taxpayer applying for an
8additional general exemption under this Section shall submit
9to the chief county assessment officer an application with an
10affidavit of the applicant's total household income, age,
11marital status (and, if married, the name and address of the
12applicant's spouse, if known), and principal dwelling place of
13members of the household on January 1 of the taxable year. The
14Department shall issue guidelines establishing a method for
15verifying the accuracy of the affidavits filed by applicants
16under this paragraph. The applications shall be clearly marked
17as applications for the Additional General Homestead
18Exemption.
19    (i-5) This subsection (i-5) applies to counties with
203,000,000 or more inhabitants. In the event of a sale of
21homestead property, the homestead exemption shall remain in
22effect for the remainder of the assessment year of the sale.
23Upon receipt of a transfer declaration transmitted by the
24recorder pursuant to Section 31-30 of the Real Estate Transfer
25Tax Law for property receiving an exemption under this
26Section, the assessor shall mail a notice and forms to the new

 

 

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1owner of the property providing information pertaining to the
2rules and applicable filing periods for applying or reapplying
3for homestead exemptions under this Code for which the
4property may be eligible. If the new owner fails to apply or
5reapply for a homestead exemption during the applicable filing
6period or the property no longer qualifies for an existing
7homestead exemption, the assessor shall cancel such exemption
8for any ensuing assessment year.
9    (j) In counties with fewer than 3,000,000 inhabitants, in
10the event of a sale of homestead property the homestead
11exemption shall remain in effect for the remainder of the
12assessment year of the sale. The assessor or chief county
13assessment officer may require the new owner of the property
14to apply for the homestead exemption for the following
15assessment year.
16    (k) Notwithstanding Sections 6 and 8 of the State Mandates
17Act, no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19    (l) The changes made to this Section by this amendatory
20Act of the 100th General Assembly are effective for the 2018
21tax year and thereafter.
22(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
2399-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
248-25-17; 100-1077, eff. 1-1-19.)