SB0109 EngrossedLRB097 00079 HLH 40087 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 15-165, 15-167, 15-169, and 15-175 as follows:
 
6    (35 ILCS 200/15-165)
7    Sec. 15-165. Disabled veterans. Property up to an assessed
8value of $70,000, owned and used exclusively by a disabled
9veteran, or the spouse or unmarried surviving spouse of the
10veteran, as a home, is exempt. As used in this Section, a
11disabled veteran means a person who has served in the Armed
12Forces of the United States and whose disability is of such a
13nature that the Federal Government has authorized payment for
14purchase or construction of Specially Adapted Housing as set
15forth in the United States Code, Title 38, Chapter 21, Section
162101.
17    The exemption applies to housing where Federal funds have
18been used to purchase or construct special adaptations to suit
19the veteran's disability.
20    The exemption also applies to housing that is specially
21adapted to suit the veteran's disability, and purchased
22entirely or in part by the proceeds of a sale, casualty loss
23reimbursement, or other transfer of a home for which the

 

 

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1Federal Government had previously authorized payment for
2purchase or construction as Specially Adapted Housing.
3    However, the entire proceeds of the sale, casualty loss
4reimbursement, or other transfer of that housing shall be
5applied to the acquisition of subsequent specially adapted
6housing to the extent that the proceeds equal the purchase
7price of the subsequently acquired housing.
8    Beginning with assessment year 2011, for taxes payable in
92012, property that is first occupied as a residence after
10January 1 of any assessment year by a person who is eligible
11for the homestead exemption under this Section must be granted
12a pro-rata exemption for the assessment year. The amount of the
13pro-rata exemption is the exemption allowed in the county under
14this Section divided by 365 and multiplied by the number of
15days during the assessment year the property is occupied as a
16residence by a person eligible for the exemption under this
17Section. The chief county assessment officer must adopt
18reasonable procedures to establish eligibility for this
19pro-rata exemption.
20    In a cooperative or a life care facility where a homestead
21exemption has been granted, the cooperative association or the
22management firm of the cooperative or facility shall credit the
23savings resulting from that exemption only to the apportioned
24tax liability of the owner or resident who qualified for the
25exemption. Any person who willfully refuses to so credit the
26savings shall be guilty of a Class B misdemeanor.

 

 

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1    A person who becomes eligible during the taxable year is
2eligible to apply for this homestead exemption during that
3taxable year. Application must be made during the application
4period in effect for the county of his or her residence.
5    If a homestead exemption has been granted under this
6Section and the person awarded the exemption subsequently
7becomes a resident of a facility licensed under the Nursing
8Home Care Act or the MR/DD Community Care Act, then the
9exemption shall continue (i) so long as the residence continues
10to be occupied by the qualifying person's spouse or (ii) if the
11residence remains unoccupied but is still owned by the person
12qualified for the homestead exemption.
13    For purposes of this Section, "unmarried surviving spouse"
14means the surviving spouse of the veteran at any time after the
15death of the veteran during which such surviving spouse is not
16married.
17    This exemption must be reestablished on an annual basis by
18certification from the Illinois Department of Veterans'
19Affairs to the Department, which shall forward a copy of the
20certification to local assessing officials.
21    A taxpayer who claims an exemption under Section 15-168 or
2215-169 may not claim an exemption under this Section.
23(Source: P.A. 94-310, eff. 7-25-05; 95-644, eff. 10-12-07.)
 
24    (35 ILCS 200/15-167)
25    Sec. 15-167. Returning Veterans' Homestead Exemption.

 

 

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1    (a) Beginning with taxable year 2007, a homestead
2exemption, limited to a reduction set forth under subsection
3(b), from the property's value, as equalized or assessed by the
4Department, is granted for property that is owned and occupied
5as the principal residence of a veteran returning from an armed
6conflict involving the armed forces of the United States who is
7liable for paying real estate taxes on the property and is an
8owner of record of the property or has a legal or equitable
9interest therein as evidenced by a written instrument, except
10for a leasehold interest, other than a leasehold interest of
11land on which a single family residence is located, which is
12occupied as the principal residence of a veteran returning from
13an armed conflict involving the armed forces of the United
14States who has an ownership interest therein, legal, equitable
15or as a lessee, and on which he or she is liable for the payment
16of property taxes. For purposes of the exemption under this
17Section, "veteran" means an Illinois resident who has served as
18a member of the United States Armed Forces, a member of the
19Illinois National Guard, or a member of the United States
20Reserve Forces.
21    (b) In all counties, the reduction is $5,000 for the
22taxable year in which the veteran returns from active duty in
23an armed conflict involving the armed forces of the United
24States; however, if the veteran first acquires his or her
25principal residence during the taxable year in which he or she
26returns, but after January 1 of that year, and if the property

 

 

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1is owned and occupied by the veteran as a principal residence
2on January 1 of the next taxable year, he or she may apply the
3exemption for the next taxable year, and only the next taxable
4year, after he or she returns. Beginning in taxable year 2010,
5the reduction shall also be allowed for the taxable year after
6the taxable year in which the veteran returns from active duty
7in an armed conflict involving the armed forces of the United
8States. For land improved with an apartment building owned and
9operated as a cooperative, the maximum reduction from the value
10of the property, as equalized by the Department, must be
11multiplied by the number of apartments or units occupied by a
12veteran returning from an armed conflict involving the armed
13forces of the United States who is liable, by contract with the
14owner or owners of record, for paying property taxes on the
15property and is an owner of record of a legal or equitable
16interest in the cooperative apartment building, other than a
17leasehold interest. In a cooperative where a homestead
18exemption has been granted, the cooperative association or the
19management firm of the cooperative or facility shall credit the
20savings resulting from that exemption only to the apportioned
21tax liability of the owner or resident who qualified for the
22exemption. Any person who willfully refuses to so credit the
23savings is guilty of a Class B misdemeanor.
24    Beginning with assessment year 2011, for taxes payable in
252012, property that is first occupied as a residence after
26January 1 of any assessment year by a person who is eligible

 

 

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1for the homestead exemption under this Section must be granted
2a pro-rata exemption for the assessment year. The amount of the
3pro-rata exemption is the exemption allowed in the county under
4this Section divided by 365 and multiplied by the number of
5days during the assessment year the property is occupied as a
6residence by a person eligible for the exemption under this
7Section. The chief county assessment officer must adopt
8reasonable procedures to establish eligibility for this
9pro-rata exemption.
10    In a cooperative or a life care facility where a homestead
11exemption has been granted, the cooperative association or the
12management firm of the cooperative or facility shall credit the
13savings resulting from that exemption only to the apportioned
14tax liability of the owner or resident who qualified for the
15exemption. Any person who willfully refuses to so credit the
16savings shall be guilty of a Class B misdemeanor.
17    (c) A person who becomes eligible during the taxable year
18is eligible to apply for this homestead exemption during that
19taxable year. Application must be made during the application
20period in effect for the county of his or her residence. The
21assessor or chief county assessment officer may determine the
22eligibility of residential property to receive the homestead
23exemption provided by this Section by application, visual
24inspection, questionnaire, or other reasonable methods. The
25determination must be made in accordance with guidelines
26established by the Department.

 

 

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1    (c-5) If a homestead exemption has been granted under this
2Section and the person awarded the exemption is or becomes a
3resident of a facility licensed under the Nursing Home Care Act
4or the MR/DD Community Care Act during any taxable year in
5which an exemption under this Section is awarded, then the
6exemption shall remain in effect for that taxable year if (i)
7the residence continues to be occupied by the qualifying
8person's spouse or (ii) the residence remains unoccupied but is
9still owned by the person qualified for the homestead
10exemption.
11    (d) The exemption under this Section is in addition to any
12other homestead exemption provided in this Article 15.
13Notwithstanding Sections 6 and 8 of the State Mandates Act, no
14reimbursement by the State is required for the implementation
15of any mandate created by this Section.
16(Source: P.A. 95-644, eff. 10-12-07; 96-1288, eff. 7-26-10;
1796-1418, eff. 8-2-10; revised 9-2-10.)
 
18    (35 ILCS 200/15-169)
19    Sec. 15-169. Disabled veterans standard homestead
20exemption.
21    (a) Beginning with taxable year 2007, an annual homestead
22exemption, limited to the amounts set forth in subsection (b),
23is granted for property that is used as a qualified residence
24by a disabled veteran.
25    (b) The amount of the exemption under this Section is as

 

 

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1follows:
2        (1) for veterans with a service-connected disability
3    of at least (i) 75% for exemptions granted in taxable years
4    2007 through 2009 and (ii) 70% for exemptions granted in
5    taxable year 2010 and each taxable year thereafter, as
6    certified by the United States Department of Veterans
7    Affairs, the annual exemption is $5,000; and
8        (2) for veterans with a service-connected disability
9    of at least 50%, but less than (i) 75% for exemptions
10    granted in taxable years 2007 through 2009 and (ii) 70% for
11    exemptions granted in taxable year 2010 and each taxable
12    year thereafter, as certified by the United States
13    Department of Veterans Affairs, the annual exemption is
14    $2,500.
15    (b-5) If a homestead exemption is granted under this
16Section and the person awarded the exemption subsequently
17becomes a resident of a facility licensed under the Nursing
18Home Care Act, the MR/DD Community Care Act, or a facility
19operated by the United States Department of Veterans Affairs,
20then the exemption shall continue (i) so long as the residence
21continues to be occupied by the qualifying person's spouse or
22(ii) if the residence remains unoccupied but is still owned by
23the person who qualified for the homestead exemption.
24    (c) The tax exemption under this Section carries over to
25the benefit of the veteran's surviving spouse as long as the
26spouse holds the legal or beneficial title to the homestead,

 

 

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1permanently resides thereon, and does not remarry. If the
2surviving spouse sells the property, an exemption not to exceed
3the amount granted from the most recent ad valorem tax roll may
4be transferred to his or her new residence as long as it is
5used as his or her primary residence and he or she does not
6remarry.
7    (d) The exemption under this Section applies for taxable
8year 2007 and thereafter. A taxpayer who claims an exemption
9under Section 15-165 or 15-168 may not claim an exemption under
10this Section.
11    (e) Each taxpayer who has been granted an exemption under
12this Section must reapply on an annual basis. A person who
13becomes eligible during the taxable year is eligible to apply
14for this homestead exemption during that taxable year.
15Application must be made during the application period in
16effect for the county of his or her residence. The assessor or
17chief county assessment officer may determine the eligibility
18of residential property to receive the homestead exemption
19provided by this Section by application, visual inspection,
20questionnaire, or other reasonable methods. The determination
21must be made in accordance with guidelines established by the
22Department.
23    Beginning with assessment year 2011, for taxes payable in
242012, property that is first occupied as a residence after
25January 1 of any assessment year by a person who is eligible
26for the homestead exemption under this Section must be granted

 

 

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1a pro-rata exemption for the assessment year. The amount of the
2pro-rata exemption is the exemption allowed in the county under
3this Section divided by 365 and multiplied by the number of
4days during the assessment year the property is occupied as a
5residence by a person eligible for the exemption under this
6Section. The chief county assessment officer must adopt
7reasonable procedures to establish eligibility for this
8pro-rata exemption.
9    In a cooperative or a life care facility where a homestead
10exemption has been granted, the cooperative association or the
11management firm of the cooperative or facility shall credit the
12savings resulting from that exemption only to the apportioned
13tax liability of the owner or resident who qualified for the
14exemption. Any person who willfully refuses to so credit the
15savings shall be guilty of a Class B misdemeanor.
16    (f) For the purposes of this Section:
17    "Qualified residence" means real property, but less any
18portion of that property that is used for commercial purposes,
19with an equalized assessed value of less than $250,000 that is
20the disabled veteran's primary residence. Property rented for
21more than 6 months is presumed to be used for commercial
22purposes.
23    "Veteran" means an Illinois resident who has served as a
24member of the United States Armed Forces on active duty or
25State active duty, a member of the Illinois National Guard, or
26a member of the United States Reserve Forces and who has

 

 

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1received an honorable discharge.
2(Source: P.A. 95-644, eff. 10-12-07; 96-1298, eff. 1-1-11;
396-1418, eff. 8-2-10; revised 9-2-10.)
 
4    (35 ILCS 200/15-175)
5    Sec. 15-175. General homestead exemption. Except as
6provided in Sections 15-176 and 15-177, homestead property is
7entitled to an annual homestead exemption limited, except as
8described here with relation to cooperatives, to a reduction in
9the equalized assessed value of homestead property equal to the
10increase in equalized assessed value for the current assessment
11year above the equalized assessed value of the property for
121977, up to the maximum reduction set forth below. If however,
13the 1977 equalized assessed value upon which taxes were paid is
14subsequently determined by local assessing officials, the
15Property Tax Appeal Board, or a court to have been excessive,
16the equalized assessed value which should have been placed on
17the property for 1977 shall be used to determine the amount of
18the exemption.
19    Except as provided in Section 15-176, the maximum reduction
20before taxable year 2004 shall be $4,500 in counties with
213,000,000 or more inhabitants and $3,500 in all other counties.
22Except as provided in Sections 15-176 and 15-177, for taxable
23years 2004 through 2007, the maximum reduction shall be $5,000,
24for taxable year 2008, the maximum reduction is $5,500, and,
25for taxable years 2009 and thereafter, the maximum reduction is

 

 

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1$6,000 in all counties. If a county has elected to subject
2itself to the provisions of Section 15-176 as provided in
3subsection (k) of that Section, then, for the first taxable
4year only after the provisions of Section 15-176 no longer
5apply, for owners who, for the taxable year, have not been
6granted a senior citizens assessment freeze homestead
7exemption under Section 15-172 or a long-time occupant
8homestead exemption under Section 15-177, there shall be an
9additional exemption of $5,000 for owners with a household
10income of $30,000 or less.
11    In counties with fewer than 3,000,000 inhabitants, if,
12based on the most recent assessment, the equalized assessed
13value of the homestead property for the current assessment year
14is greater than the equalized assessed value of the property
15for 1977, the owner of the property shall automatically receive
16the exemption granted under this Section in an amount equal to
17the increase over the 1977 assessment up to the maximum
18reduction set forth in this Section.
19    If in any assessment year beginning with the 2000
20assessment year, homestead property has a pro-rata valuation
21under Section 9-180 resulting in an increase in the assessed
22valuation, a reduction in equalized assessed valuation equal to
23the increase in equalized assessed value of the property for
24the year of the pro-rata valuation above the equalized assessed
25value of the property for 1977 shall be applied to the property
26on a proportionate basis for the period the property qualified

 

 

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1as homestead property during the assessment year. The maximum
2proportionate homestead exemption shall not exceed the maximum
3homestead exemption allowed in the county under this Section
4divided by 365 and multiplied by the number of days the
5property qualified as homestead property.
6    Beginning with assessment year 2011, for taxes payable in
72012, property that is first occupied as a residence after
8January 1 of any assessment year by a person who is eligible
9for the homestead exemption under this Section must be granted
10a pro-rata exemption for the assessment year. The amount of the
11pro-rata exemption is the exemption allowed in the county under
12this Section divided by 365 and multiplied by the number of
13days during the assessment year the property is occupied as a
14residence by a person eligible for the exemption under this
15Section. The chief county assessment officer must adopt
16reasonable procedures to establish eligibility for this
17pro-rata exemption.
18    If a homestead exemption has been granted under this
19Section and the person awarded the exemption subsequently
20becomes a resident of a facility licensed under the Nursing
21Home Care Act or the MR/DD Community Care Act, then the
22exemption shall continue (i) so long as the residence continues
23to be occupied by the qualifying person's spouse or (ii) if the
24residence remains unoccupied but is still owned by the person
25qualified for the homestead exemption.
26    "Homestead property" under this Section includes

 

 

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1residential property that is occupied by its owner or owners as
2his or their principal dwelling place, or that is a leasehold
3interest on which a single family residence is situated, which
4is occupied as a residence by a person who has an ownership
5interest therein, legal or equitable or as a lessee, and on
6which the person is liable for the payment of property taxes.
7For land improved with an apartment building owned and operated
8as a cooperative or a building which is a life care facility as
9defined in Section 15-170 and considered to be a cooperative
10under Section 15-170, the maximum reduction from the equalized
11assessed value shall be limited to the increase in the value
12above the equalized assessed value of the property for 1977, up
13to the maximum reduction set forth above, multiplied by the
14number of apartments or units occupied by a person or persons
15who is liable, by contract with the owner or owners of record,
16for paying property taxes on the property and is an owner of
17record of a legal or equitable interest in the cooperative
18apartment building, other than a leasehold interest. For
19purposes of this Section, the term "life care facility" has the
20meaning stated in Section 15-170.
21    "Household", as used in this Section, means the owner, the
22spouse of the owner, and all persons using the residence of the
23owner as their principal place of residence.
24    "Household income", as used in this Section, means the
25combined income of the members of a household for the calendar
26year preceding the taxable year.

 

 

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1    "Income", as used in this Section, has the same meaning as
2provided in Section 3.07 of the Senior Citizens and Disabled
3Persons Property Tax Relief and Pharmaceutical Assistance Act,
4except that "income" does not include veteran's benefits.
5    In a cooperative where a homestead exemption has been
6granted, the cooperative association or its management firm
7shall credit the savings resulting from that exemption only to
8the apportioned tax liability of the owner who qualified for
9the exemption. Any person who willfully refuses to so credit
10the savings shall be guilty of a Class B misdemeanor.
11    Where married persons maintain and reside in separate
12residences qualifying as homestead property, each residence
13shall receive 50% of the total reduction in equalized assessed
14valuation provided by this Section.
15    A person who becomes eligible during the taxable year is
16eligible to apply for this homestead exemption during that
17taxable year. Application must be made during the application
18period in effect for the county of his or her residence.
19    In all counties, the assessor or chief county assessment
20officer may determine the eligibility of residential property
21to receive the homestead exemption and the amount of the
22exemption by application, visual inspection, questionnaire or
23other reasonable methods. The determination shall be made in
24accordance with guidelines established by the Department,
25provided that the taxpayer applying for an additional general
26exemption under this Section shall submit to the chief county

 

 

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1assessment officer an application with an affidavit of the
2applicant's total household income, age, marital status (and,
3if married, the name and address of the applicant's spouse, if
4known), and principal dwelling place of members of the
5household on January 1 of the taxable year. The Department
6shall issue guidelines establishing a method for verifying the
7accuracy of the affidavits filed by applicants under this
8paragraph. The applications shall be clearly marked as
9applications for the Additional General Homestead Exemption.
10    In counties with fewer than 3,000,000 inhabitants, in the
11event of a sale of homestead property the homestead exemption
12shall remain in effect for the remainder of the assessment year
13of the sale. The assessor or chief county assessment officer
14may require the new owner of the property to apply for the
15homestead exemption for the following assessment year.
16    Notwithstanding Sections 6 and 8 of the State Mandates Act,
17no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 95-644, eff. 10-12-07.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.