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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Property Tax Code is amended by changing
5 Sections 15-170 and 15-176 and by adding Section 15-167 as
6 follows:
 
7     (35 ILCS 200/15-167 new)
8     Sec. 15-167. Returning Veterans' Homestead Exemption.
9     (a) A homestead exemption limited to a reduction set forth
10 under subsection (b) from the property's value, as equalized or
11 assessed by the Department, is granted for property that is
12 owned and occupied as a residence by a veteran returning from
13 an armed conflict involving the armed forces of the United
14 States who is liable for paying real estate taxes on the
15 property and is an owner of record of the property or has a
16 legal or equitable interest therein as evidenced by a written
17 instrument, except for a leasehold interest, other than a
18 leasehold interest of land on which a single family residence
19 is located, which is occupied as a residence by a veteran
20 returning from an armed conflict involving the armed forces of
21 the United States who has an ownership interest therein, legal,
22 equitable or as a lessee, and on which he or she is liable for
23 the payment of property taxes. For purposes of the exemption
24 under this Section, "veteran" means an Illinois resident who
25 has served as a member of the United States Armed Forces, a
26 member of the Illinois National Guard, or a member of the
27 United States Reserve Forces.
28     (b) In all counties, the reduction is $5,000 and only for
29 the tax year in which the veteran returns from active duty in
30 an armed conflict involving the armed forces of the United
31 States. For land improved with an apartment building owned and
32 operated as a cooperative, the maximum reduction from the value

 

 

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1 of the property, as equalized by the Department, shall be
2 multiplied by the number of apartments or units occupied by a
3 veteran returning from an armed conflict involving the armed
4 forces of the United States who is liable, by contract with the
5 owner or owners of record, for paying property taxes on the
6 property and is an owner of record of a legal or equitable
7 interest in the cooperative apartment building, other than a
8 leasehold interest. In a cooperative where a homestead
9 exemption has been granted, the cooperative association or the
10 management firm of the cooperative or facility shall credit the
11 savings resulting from that exemption only to the apportioned
12 tax liability of the owner or resident who qualified for the
13 exemption. Any person who willfully refuses to so credit the
14 savings shall be guilty of a Class B misdemeanor.
15     (c) Application shall be made during the application period
16 in effect for the county of his or her residence. The assessor
17 or chief county assessment officer may determine the
18 eligibility of residential property to receive the homestead
19 exemption provided by this Section by application, visual
20 inspection, questionnaire or other reasonable methods. The
21 determination shall be made in accordance with guidelines
22 established by the Department.
23     (d) The exemption under this Section is in addition to any
24 other homestead provided in Sections 15-170 through 15-176.
25 Notwithstanding Sections 6 and 8 of the State Mandates Act, no
26 reimbursement by the State is required for the implementation
27 of any mandate created by this Section.
 
28     (35 ILCS 200/15-170)
29     Sec. 15-170. Senior Citizens Homestead Exemption. An
30 annual homestead exemption limited, except as described here
31 with relation to cooperatives or life care facilities, to a
32 maximum reduction set forth below from the property's value, as
33 equalized or assessed by the Department, is granted for
34 property that is occupied as a residence by a person 65 years
35 of age or older who is liable for paying real estate taxes on

 

 

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1 the property and is an owner of record of the property or has a
2 legal or equitable interest therein as evidenced by a written
3 instrument, except for a leasehold interest, other than a
4 leasehold interest of land on which a single family residence
5 is located, which is occupied as a residence by a person 65
6 years or older who has an ownership interest therein, legal,
7 equitable or as a lessee, and on which he or she is liable for
8 the payment of property taxes. Before taxable year 2004, the
9 maximum reduction shall be $2,500 in counties with 3,000,000 or
10 more inhabitants and $2,000 in all other counties. For taxable
11 years 2004 and thereafter, the maximum reduction shall be
12 $3,000 in all counties. For land improved with an apartment
13 building owned and operated as a cooperative, the maximum
14 reduction from the value of the property, as equalized by the
15 Department, shall be multiplied by the number of apartments or
16 units occupied by a person 65 years of age or older who is
17 liable, by contract with the owner or owners of record, for
18 paying property taxes on the property and is an owner of record
19 of a legal or equitable interest in the cooperative apartment
20 building, other than a leasehold interest. For land improved
21 with a life care facility, the maximum reduction from the value
22 of the property, as equalized by the Department, shall be
23 multiplied by the number of apartments or units occupied by
24 persons 65 years of age or older, irrespective of any legal,
25 equitable, or leasehold interest in the facility, who are
26 liable, under a contract with the owner or owners of record of
27 the facility, for paying property taxes on the property. In a
28 cooperative or a life care facility where a homestead exemption
29 has been granted, the cooperative association or the management
30 firm of the cooperative or facility shall credit the savings
31 resulting from that exemption only to the apportioned tax
32 liability of the owner or resident who qualified for the
33 exemption. Any person who willfully refuses to so credit the
34 savings shall be guilty of a Class B misdemeanor. Under this
35 Section and Sections 15-175 and 15-176, "life care facility"
36 means a facility as defined in Section 2 of the Life Care

 

 

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1 Facilities Act, with which the applicant for the homestead
2 exemption has a life care contract as defined in that Act.
3     When a homestead exemption has been granted under this
4 Section and the person qualifying subsequently becomes a
5 resident of a facility licensed under the Nursing Home Care
6 Act, the exemption shall continue so long as the residence
7 continues to be occupied by the qualifying person's spouse if
8 the spouse is 65 years of age or older, or if the residence
9 remains unoccupied but is still owned by the person qualified
10 for the homestead exemption.
11     A person who will be 65 years of age during the current
12 assessment year shall be eligible to apply for the homestead
13 exemption during that assessment year. Application shall be
14 made during the application period in effect for the county of
15 his residence.
16     Beginning with assessment year 2003, for taxes payable in
17 2004, property that is first occupied as a residence after
18 January 1 of any assessment year by a person who is eligible
19 for the senior citizens homestead exemption under this Section
20 must be granted a pro-rata exemption for the assessment year.
21 The amount of the pro-rata exemption is the exemption allowed
22 in the county under this Section divided by 365 and multiplied
23 by the number of days during the assessment year the property
24 is occupied as a residence by a person eligible for the
25 exemption under this Section. The chief county assessment
26 officer must adopt reasonable procedures to establish
27 eligibility for this pro-rata exemption.
28     The assessor or chief county assessment officer may
29 determine the eligibility of a life care facility to receive
30 the benefits provided by this Section, by affidavit,
31 application, visual inspection, questionnaire or other
32 reasonable methods in order to insure that the tax savings
33 resulting from the exemption are credited by the management
34 firm to the apportioned tax liability of each qualifying
35 resident. The assessor may request reasonable proof that the
36 management firm has so credited the exemption.

 

 

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1     The chief county assessment officer of each county with
2 less than 3,000,000 inhabitants shall provide to each person
3 allowed a homestead exemption under this Section a form to
4 designate any other person to receive a duplicate of any notice
5 of delinquency in the payment of taxes assessed and levied
6 under this Code on the property of the person receiving the
7 exemption. The duplicate notice shall be in addition to the
8 notice required to be provided to the person receiving the
9 exemption, and shall be given in the manner required by this
10 Code. The person filing the request for the duplicate notice
11 shall pay a fee of $5 to cover administrative costs to the
12 supervisor of assessments, who shall then file the executed
13 designation with the county collector. Notwithstanding any
14 other provision of this Code to the contrary, the filing of
15 such an executed designation requires the county collector to
16 provide duplicate notices as indicated by the designation. A
17 designation may be rescinded by the person who executed such
18 designation at any time, in the manner and form required by the
19 chief county assessment officer.
20     The assessor or chief county assessment officer may
21 determine the eligibility of residential property to receive
22 the homestead exemption provided by this Section by
23 application, visual inspection, questionnaire or other
24 reasonable methods. The determination shall be made in
25 accordance with guidelines established by the Department.
26     In all counties with less than 3,000,000 inhabitants, the
27 county board may by resolution provide that if a person has
28 been granted a homestead exemption under this Section, the
29 person qualifying need not reapply for the exemption.
30     In counties with less than 3,000,000 inhabitants, if the
31 assessor or chief county assessment officer requires annual
32 application for verification of eligibility for an exemption
33 once granted under this Section, the application shall be
34 mailed to the taxpayer.
35     The assessor or chief county assessment officer shall
36 notify each person who qualifies for an exemption under this

 

 

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1 Section that the person may also qualify for deferral of real
2 estate taxes under the Senior Citizens Real Estate Tax Deferral
3 Act. The notice shall set forth the qualifications needed for
4 deferral of real estate taxes, the address and telephone number
5 of county collector, and a statement that applications for
6 deferral of real estate taxes may be obtained from the county
7 collector.
8     Notwithstanding Sections 6 and 8 of the State Mandates Act,
9 no reimbursement by the State is required for the
10 implementation of any mandate created by this Section.
11 (Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03;
12 93-715, eff. 7-12-04.)
 
13     (35 ILCS 200/15-176)
14     Sec. 15-176. Alternative general homestead exemption.
15     (a) For the assessment years as determined under subsection
16 (j), in any county that has elected, by an ordinance in
17 accordance with subsection (k), to be subject to the provisions
18 of this Section in lieu of the provisions of Section 15-175,
19 homestead property is entitled to an annual homestead exemption
20 equal to a reduction in the property's equalized assessed value
21 calculated as provided in this Section.
22     (b) As used in this Section:
23         (1) "Assessor" means the supervisor of assessments or
24     the chief county assessment officer of each county.
25         (2) "Adjusted homestead value" means the lesser of the
26     following values:
27             (A) The property's base homestead value increased
28         by 7% for each tax year after the base year through and
29         including the current tax year, or, if the property is
30         sold or ownership is otherwise transferred, the
31         property's base homestead value increased by 7% for
32         each tax year after the year of the sale or transfer
33         through and including the current tax year. The
34         increase by 7% each year is an increase by 7% over the
35         prior year.

 

 

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1             (B) The property's equalized assessed value for
2         the current tax year minus (i) $4,500 in Cook County or
3         $3,500 in all other counties in tax year 2003 or (ii)
4         $5,000 in all counties in tax year 2004 and thereafter.
5         (3) "Base homestead value".
6             (A) Except as provided in subdivision (b)(3)(B),
7         "base homestead value" means the equalized assessed
8         value of the property for the base year prior to
9         exemptions, minus (i) $4,500 in Cook County or $3,500
10         in all other counties in tax year 2003 or (ii) $5,000
11         in all counties in tax year 2004 and thereafter,
12         provided that it was assessed for that year as
13         residential property qualified for any of the
14         homestead exemptions under Sections 15-170 through
15         15-175 of this Code, then in force, and further
16         provided that the property's assessment was not based
17         on a reduced assessed value resulting from a temporary
18         irregularity in the property for that year. Except as
19         provided in subdivision (b)(3)(B), if the property did
20         not have a residential equalized assessed value for the
21         base year, then "base homestead value" means the base
22         homestead value established by the assessor under
23         subsection (c).
24             (B) If the property is sold or ownership is
25         otherwise transferred, other than sales or transfers
26         between spouses or between a parent and a child, "base
27         homestead value" means the equalized assessed value of
28         the property at the time of the sale or transfer prior
29         to exemptions, minus (i) $4,500 in Cook County or
30         $3,500 in all other counties in tax year 2003 or (ii)
31         $5,000 in all counties in tax year 2004 and thereafter,
32         provided that it was assessed as residential property
33         qualified for any of the homestead exemptions under
34         Sections 15-170 through 15-175 of this Code, then in
35         force, and further provided that the property's
36         assessment was not based on a reduced assessed value

 

 

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1         resulting from a temporary irregularity in the
2         property.
3         (3.5) "Base year" means (i) tax year 2002 in Cook
4     County or (ii) tax year 2004 or 2005 2002 or 2003 in all
5     other counties in accordance with the designation made by
6     the county as provided in subsection (k).
7         (4) "Current tax year" means the tax year for which the
8     exemption under this Section is being applied.
9         (5) "Equalized assessed value" means the property's
10     assessed value as equalized by the Department.
11         (6) "Homestead" or "homestead property" means:
12             (A) Residential property that as of January 1 of
13         the tax year is occupied by its owner or owners as his,
14         her, or their principal dwelling place, or that is a
15         leasehold interest on which a single family residence
16         is situated, that is occupied as a residence by a
17         person who has a legal or equitable interest therein
18         evidenced by a written instrument, as an owner or as a
19         lessee, and on which the person is liable for the
20         payment of property taxes. Residential units in an
21         apartment building owned and operated as a
22         cooperative, or as a life care facility, which are
23         occupied by persons who hold a legal or equitable
24         interest in the cooperative apartment building or life
25         care facility as owners or lessees, and who are liable
26         by contract for the payment of property taxes, shall be
27         included within this definition of homestead property.
28             (B) A homestead includes the dwelling place,
29         appurtenant structures, and so much of the surrounding
30         land constituting the parcel on which the dwelling
31         place is situated as is used for residential purposes.
32         If the assessor has established a specific legal
33         description for a portion of property constituting the
34         homestead, then the homestead shall be limited to the
35         property within that description.
36         (7) "Life care facility" means a facility as defined in

 

 

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1     Section 2 of the Life Care Facilities Act.
2     (c) If the property did not have a residential equalized
3 assessed value for the base year as provided in subdivision
4 (b)(3)(A) of this Section, then the assessor shall first
5 determine an initial value for the property by comparison with
6 assessed values for the base year of other properties having
7 physical and economic characteristics similar to those of the
8 subject property, so that the initial value is uniform in
9 relation to assessed values of those other properties for the
10 base year. The product of the initial value multiplied by the
11 equalized factor for the base year for homestead properties in
12 that county, less (i) $4,500 in Cook County or $3,500 in all
13 other counties in tax year 2003 or (ii) $5,000 in all counties
14 in tax year 2004 and thereafter, is the base homestead value.
15     For any tax year for which the assessor determines or
16 adjusts an initial value and hence a base homestead value under
17 this subsection (c), the initial value shall be subject to
18 review by the same procedures applicable to assessed values
19 established under this Code for that tax year.
20     (d) The base homestead value shall remain constant, except
21 that the assessor may revise it under the following
22 circumstances:
23         (1) If the equalized assessed value of a homestead
24     property for the current tax year is less than the previous
25     base homestead value for that property, then the current
26     equalized assessed value (provided it is not based on a
27     reduced assessed value resulting from a temporary
28     irregularity in the property) shall become the base
29     homestead value in subsequent tax years.
30         (2) For any year in which new buildings, structures, or
31     other improvements are constructed on the homestead
32     property that would increase its assessed value, the
33     assessor shall adjust the base homestead value as provided
34     in subsection (c) of this Section with due regard to the
35     value added by the new improvements.
36         (3) If the property is sold or ownership is otherwise

 

 

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1     transferred, the base homestead value of the property shall
2     be adjusted as provided in subdivision (b)(3)(B). This item
3     (3) does not apply to sales or transfers between spouses or
4     between a parent and a child.
5     (e) The amount of the exemption under this Section is the
6 equalized assessed value of the homestead property for the
7 current tax year, minus the adjusted homestead value, with the
8 following exceptions:
9         (1) In Cook County, the The exemption under this
10     Section shall not exceed $20,000 for any taxable year
11     through tax year:
12             (i) 2005, if the general assessment year for the
13         property is 2003;
14             (ii) 2006, if the general assessment year for the
15         property is 2004; or
16             (iii) 2007, if the general assessment year for the
17         property is 2005.
18     Thereafter, in Cook County, the exemption under this
19     Section shall not exceed $60,000 for any taxable year.
20         (1.5) For all tax years in all other counties other
21     than Cook County, the exemption under this Section shall
22     not exceed $60,000 for any taxable year.
23         (2) In the case of homestead property that also
24     qualifies for the exemption under Section 15-172, the
25     property is entitled to the exemption under this Section,
26     limited to the amount of (i) $4,500 in Cook County or
27     $3,500 in all other counties in tax year 2003 or (ii)
28     $5,000 in all counties in tax year 2004 and thereafter.
29     (f) In the case of an apartment building owned and operated
30 as a cooperative, or as a life care facility, that contains
31 residential units that qualify as homestead property under this
32 Section, the maximum cumulative exemption amount attributed to
33 the entire building or facility shall not exceed the sum of the
34 exemptions calculated for each qualified residential unit. The
35 cooperative association, management firm, or other person or
36 entity that manages or controls the cooperative apartment

 

 

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1 building or life care facility shall credit the exemption
2 attributable to each residential unit only to the apportioned
3 tax liability of the owner or other person responsible for
4 payment of taxes as to that unit. Any person who willfully
5 refuses to so credit the exemption is guilty of a Class B
6 misdemeanor.
7     (g) When married persons maintain separate residences, the
8 exemption provided under this Section shall be claimed by only
9 one such person and for only one residence.
10     (h) In the event of a sale or other transfer in ownership
11 of the homestead property, the exemption under this Section
12 shall remain in effect for the remainder of the tax year in
13 which the sale or transfer occurs, but (other than for sales or
14 transfers between spouses or between a parent and a child)
15 shall be calculated using the new base homestead value as
16 provided in subdivision (b)(3)(B). The assessor may require the
17 new owner of the property to apply for the exemption in the
18 following year.
19     (i) The assessor may determine whether property qualifies
20 as a homestead under this Section by application, visual
21 inspection, questionnaire, or other reasonable methods. Each
22 year, at the time the assessment books are certified to the
23 county clerk by the board of review, the assessor shall furnish
24 to the county clerk a list of the properties qualified for the
25 homestead exemption under this Section. The list shall note the
26 base homestead value of each property to be used in the
27 calculation of the exemption for the current tax year.
28     (j) In counties with 3,000,000 or more inhabitants, the
29 provisions of this Section apply as follows:
30         (1) If the general assessment year for the property is
31     2003, this Section applies for assessment years 2003, 2004,
32     and 2005, 2006, 2007, and 2008. Thereafter, the provisions
33     of Section 15-175 apply.
34         (2) If the general assessment year for the property is
35     2004, this Section applies for assessment years 2004, 2005,
36     and 2006, 2007, 2008, and 2009. Thereafter, the provisions

 

 

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1     of Section 15-175 apply.
2         (3) If the general assessment year for the property is
3     2005, this Section applies for assessment years 2005, 2006,
4     and 2007, 2008, 2009, and 2010. Thereafter, the provisions
5     of Section 15-175 apply.
6     In counties with less than 3,000,000 inhabitants, this
7 Section applies for assessment years (i) 2005, 2006, and 2007
8 if tax year 2004 2003, 2004, and 2005 if 2002 is the designated
9 base year or (ii) 2006, 2007, and 2008 if tax year 2005 2004,
10 2005, and 2006 if 2003 is the designated base year. Thereafter,
11 the provisions of Section 15-175 apply.
12     (k) To be subject to the provisions of this Section in lieu
13 of Section 15-175, a county must adopt an ordinance to subject
14 itself to the provisions of this Section within 6 months after
15 the effective date of this amendatory Act of the 94th General
16 Assembly 93rd General Assembly. In a county other than Cook
17 County, the ordinance must designate either tax year 2004 2002
18 or tax year 2005 2003 as the base year.
19     (l) Notwithstanding Sections 6 and 8 of the State Mandates
20 Act, no reimbursement by the State is required for the
21 implementation of any mandate created by this Section.
22 (Source: P.A. 93-715, eff. 7-12-04.)
 
23     Section 90. The State Mandates Act is amended by adding
24 Section 8.30 as follows:
 
25     (30 ILCS 805/8.30 new)
26     Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
27 of this Act, no reimbursement by the State is required for the
28 implementation of any mandate created by this amendatory Act of
29 the 94th General Assembly.
 
30     Section 99. Effective date. This Act takes effect upon
31 becoming law.