104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1339

 

Introduced 1/28/2025, by Rep. Paul Jacobs

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. Provides that property that qualifies for the senior citizens homestead exemption is exempt from taxation under the Code. Effective immediately.


LRB104 03379 HLH 13401 b

 

 

A BILL FOR

 

HB1339LRB104 03379 HLH 13401 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
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

 

 

HB1339- 2 -LRB104 03379 HLH 13401 b

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 through 2024 and thereafter, the maximum reduction
13is $8,000 in counties with 3,000,000 or more inhabitants and
14counties that are contiguous to a county of 3,000,000 or more
15inhabitants and $5,000 in all other counties. For taxable
16years 2025 and thereafter, property that qualifies for a
17homestead exemption under this Section is exempt from taxation
18under this Code.
19    (b) For land improved with an apartment building owned and
20operated as a cooperative, the maximum reduction from the
21value of the property, as equalized by the Department, shall
22be multiplied by the number of apartments or units occupied by
23a person 65 years of age or older who is liable, by contract
24with the owner or owners of record, for paying property taxes
25on the property and is an owner of record of a legal or
26equitable interest in the cooperative apartment building,

 

 

HB1339- 3 -LRB104 03379 HLH 13401 b

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

 

 

HB1339- 4 -LRB104 03379 HLH 13401 b

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

 

 

HB1339- 5 -LRB104 03379 HLH 13401 b

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

 

 

HB1339- 6 -LRB104 03379 HLH 13401 b

1reasonable methods. The determination shall be made in
2accordance with guidelines established by the Department.
3    (i) In counties with 3,000,000 or more inhabitants, for
4taxable years 2010 through 2018, each taxpayer who has been
5granted an exemption under this Section must reapply on an
6annual basis.
7    If a reapplication is required, then the chief county
8assessment officer shall mail the application to the taxpayer
9at least 60 days prior to the last day of the application
10period for the county.
11    For taxable years 2019 and thereafter, in counties with
123,000,000 or more inhabitants, a taxpayer who has been granted
13an exemption under this Section need not reapply. However, if
14the property ceases to be qualified for the exemption under
15this Section in any year for which a reapplication is not
16required under this Section, then the owner of record of the
17property shall notify the chief county assessment officer that
18the property is no longer qualified. In addition, for taxable
19years 2019 and thereafter, the chief county assessment officer
20of a county with 3,000,000 or more inhabitants shall enter
21into an intergovernmental agreement with the county clerk of
22that county and the Department of Public Health, as well as any
23other appropriate governmental agency, to obtain information
24that documents the death of a taxpayer who has been granted an
25exemption under this Section. Notwithstanding any other
26provision of law, the county clerk and the Department of

 

 

HB1339- 7 -LRB104 03379 HLH 13401 b

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

 

 

HB1339- 8 -LRB104 03379 HLH 13401 b

1December 31 of the first year of each reassessment cycle, as
2determined by Section 9-220, a review of all exemptions
3granted under this Section for the preceding reassessment
4cycle under this Section. The review shall be designed to
5ascertain whether any senior homestead exemptions have been
6granted erroneously. If it is determined that a senior
7homestead exemption has been erroneously applied to a
8property, the chief county assessment officer shall make use
9of the appropriate provisions of Section 9-275 in relation to
10the property that received the erroneous 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, prior to the
17submission of the final abstract for the first year of each
18reassessment cycle, as determined by Section 9-215, review all
19exemptions granted for the preceding reassessment cycle under
20this Section. The review shall be designed to ascertain
21whether any senior homestead exemptions have been granted
22erroneously.
23    In counties with less than 3,000,000 inhabitants, if the
24assessor or chief county assessment officer requires annual
25application for verification of eligibility for an exemption
26once granted under this Section, the application shall be

 

 

HB1339- 9 -LRB104 03379 HLH 13401 b

1mailed to the taxpayer.
2    (l) The assessor or chief county assessment officer shall
3notify each person who qualifies for an exemption under this
4Section that the person may also qualify for deferral of real
5estate taxes under the Senior Citizens Real Estate Tax
6Deferral Act. The notice shall set forth the qualifications
7needed for deferral of real estate taxes, the address and
8telephone number of county collector, and a statement that
9applications for deferral of real estate taxes may be obtained
10from the county collector.
11    (m) Notwithstanding Sections 6 and 8 of the State Mandates
12Act, no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 102-895, eff. 5-23-22; 103-592, eff. 1-1-25.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.