103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4464

 

Introduced 1/16/2024, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. In provisions concerning the senior citizens homestead exemption, permanently removes the requirement to reapply for the exemption in counties with 3,000,000 or more inhabitants (currently, that requirement was eliminated only for taxable years 2019 through 2023). In counties with less than 3,000,000 inhabitants, provides that, if the county board passes a resolution removing the requirement to reapply for the exemption, the chief county assessment official shall conduct, by no later than December 31 of the first year of each reassessment cycle, an audit of all senior citizens homestead exemptions granted for the preceding reassessment cycle.


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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 15-170 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 2022, the maximum
10reduction is $8,000 in counties with 3,000,000 or more
11inhabitants and $5,000 in all other counties. For taxable
12years 2023 and thereafter, the maximum reduction is $8,000 in
13counties with 3,000,000 or more inhabitants and counties that
14are contiguous to a county of 3,000,000 or more inhabitants
15and $5,000 in all other counties.
16    (b) For land improved with an apartment building owned and
17operated as a cooperative, the maximum reduction from the
18value of the property, as equalized by the Department, shall
19be multiplied by the number of apartments or units occupied by
20a person 65 years of age or older who is liable, by contract
21with the owner or owners of record, for paying property taxes
22on the property and is an owner of record of a legal or
23equitable interest in the cooperative apartment building,
24other than a leasehold interest. For land improved with a life
25care facility, the maximum reduction from the value of the
26property, as equalized by the Department, shall be multiplied

 

 

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1by the number of apartments or units occupied by persons 65
2years of age or older, irrespective of any legal, equitable,
3or leasehold interest in the facility, who are liable, under a
4contract with the owner or owners of record of the facility,
5for paying property taxes on the property. In a cooperative or
6a life care facility where a homestead exemption has been
7granted, the cooperative association or the management firm of
8the cooperative or facility shall credit the savings resulting
9from that exemption only to the apportioned tax liability of
10the owner or resident who qualified for the exemption. Any
11person who willfully refuses to so credit the savings shall be
12guilty of a Class B misdemeanor. Under this Section and
13Sections 15-175, 15-176, and 15-177, "life care facility"
14means a facility, as defined in Section 2 of the Life Care
15Facilities Act, with which the applicant for the homestead
16exemption has a life care contract as defined in that Act.
17    (c) When a homestead exemption has been granted under this
18Section and the person qualifying subsequently becomes a
19resident of a facility licensed under the Assisted Living and
20Shared Housing Act, the Nursing Home Care Act, the Specialized
21Mental Health Rehabilitation Act of 2013, the ID/DD Community
22Care Act, or the MC/DD Act, the exemption shall continue so
23long as the residence continues to be occupied by the
24qualifying person's spouse if the spouse is 65 years of age or
25older, or if the residence remains unoccupied but is still
26owned by the person qualified for the homestead exemption.

 

 

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1    (d) A person who will be 65 years of age during the current
2assessment year shall be eligible to apply for the homestead
3exemption during that assessment year. Application shall be
4made during the application period in effect for the county of
5his residence.
6    (e) Beginning with assessment year 2003, for taxes payable
7in 2004, property that is first occupied as a residence after
8January 1 of any assessment year by a person who is eligible
9for the senior citizens homestead exemption under this Section
10must be granted a pro-rata exemption for the assessment year.
11The amount of the pro-rata exemption is the exemption allowed
12in the county under this Section divided by 365 and multiplied
13by the number of days during the assessment year the property
14is occupied as a residence by a person eligible for the
15exemption under this Section. The chief county assessment
16officer must adopt reasonable procedures to establish
17eligibility for this pro-rata exemption.
18    (f) The assessor or chief county assessment officer may
19determine the eligibility of a life care facility to receive
20the benefits provided by this Section, by affidavit,
21application, visual inspection, questionnaire or other
22reasonable methods in order to ensure insure that the tax
23savings resulting from the exemption are credited by the
24management firm to the apportioned tax liability of each
25qualifying resident. The assessor may request reasonable proof
26that the management firm has so credited the exemption.

 

 

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1    (g) The chief county assessment officer of each county
2with less than 3,000,000 inhabitants shall provide to each
3person allowed a homestead exemption under this Section a form
4to designate any other person to receive a duplicate of any
5notice of delinquency in the payment of taxes assessed and
6levied under this Code on the property of the person receiving
7the exemption. The duplicate notice shall be in addition to
8the notice required to be provided to the person receiving the
9exemption, and shall be given in the manner required by this
10Code. The person filing the request for the duplicate notice
11shall pay a fee of $5 to cover administrative costs to the
12supervisor of assessments, who shall then file the executed
13designation with the county collector. Notwithstanding any
14other provision of this Code to the contrary, the filing of
15such an executed designation requires the county collector to
16provide duplicate notices as indicated by the designation. A
17designation may be rescinded by the person who executed such
18designation at any time, in the manner and form required by the
19chief county assessment officer.
20    (h) The assessor or chief county assessment officer may
21determine the eligibility of residential property to receive
22the homestead exemption provided by this Section by
23application, visual inspection, questionnaire or other
24reasonable methods. The determination shall be made in
25accordance with guidelines established by the Department.
26    (i) In counties with 3,000,000 or more inhabitants, for

 

 

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1taxable years 2010 through 2018, and beginning again in
2taxable year 2024, each taxpayer who has been granted an
3exemption under this Section must reapply on an annual basis.
4    If a reapplication is required, then the chief county
5assessment officer shall mail the application to the taxpayer
6at least 60 days prior to the last day of the application
7period for the county.
8    For taxable years 2019 and thereafter through 2023, in
9counties with 3,000,000 or more inhabitants, a taxpayer who
10has been granted an exemption under this Section need not
11reapply. However, if the property ceases to be qualified for
12the exemption under this Section in any year for which a
13reapplication is not required under this Section, then the
14owner of record of the property shall notify the chief county
15assessment officer that the property is no longer qualified.
16In addition, for taxable years 2019 and thereafter through
172023, the chief county assessment officer of a county with
183,000,000 or more inhabitants shall enter into an
19intergovernmental agreement with the county clerk of that
20county and the Department of Public Health, as well as any
21other appropriate governmental agency, to obtain information
22that documents the death of a taxpayer who has been granted an
23exemption under this Section. Notwithstanding any other
24provision of law, the county clerk and the Department of
25Public Health shall provide that information to the chief
26county assessment officer. The Department of Public Health

 

 

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1shall supply this information no less frequently than every
2calendar quarter. Information concerning the death of a
3taxpayer may be shared with the county treasurer. The chief
4county assessment officer shall also enter into a data
5exchange agreement with the Social Security Administration or
6its agent to obtain access to the information regarding deaths
7in possession of the Social Security Administration. The chief
8county assessment officer shall, subject to the notice
9requirements under subsection (m) of Section 9-275, terminate
10the exemption under this Section if the information obtained
11indicates that the property is no longer qualified for the
12exemption. In counties with 3,000,000 or more inhabitants, the
13assessor and the county clerk recorder of deeds shall
14establish policies and practices for the regular exchange of
15information for the purpose of alerting the assessor whenever
16the transfer of ownership of any property receiving an
17exemption under this Section has occurred. When such a
18transfer occurs, the assessor shall mail a notice to the new
19owner of the property (i) informing the new owner that the
20exemption will remain in place through the year of the
21transfer, after which it will be canceled, and (ii) providing
22information pertaining to the rules for reapplying for the
23exemption if the owner qualifies. In counties with 3,000,000
24or more inhabitants, the chief county assessment official
25shall conduct, by no later than December 31 of the first year
26of each reassessment cycle, as determined by Section 9-220, an

 

 

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1audit audits of all exemptions granted under this Section for
2the preceding reassessment cycle under this Section no later
3than December 31, 2022 and no later than December 31, 2024. The
4audit shall be designed to ascertain whether any senior
5homestead exemptions have been granted erroneously. If it is
6determined that a senior homestead exemption has been
7erroneously applied to a property, the chief county assessment
8officer shall make use of the appropriate provisions of
9Section 9-275 in relation to the property that received the
10erroneous homestead exemption.
11    (j) In counties with less than 3,000,000 inhabitants, the
12county board may by resolution provide that if a person has
13been granted a homestead exemption under this Section, the
14person qualifying need not reapply for the exemption. In
15counties in which the county board passes such a resolution,
16the chief county assessment official shall conduct, by no
17later than December 31 of the first year of each reassessment
18cycle, as determined by Section 9-215, an audit of all
19exemptions granted for the preceding reassessment cycle under
20this Section. The audit shall be designed to ascertain whether
21any senior homestead exemptions have been granted erroneously.
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. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20;
14102-895, eff. 5-23-22.)