98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0944

 

Introduced 1/25/2013, by Rep. Sam Yingling

 

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

    Amends the Property Tax Code. Provides that, for taxable years 2013 and thereafter, the maximum reduction under the Senior Citizens Homestead Exemption is $8,000, and the maximum reduction under the General Homestead Exemption is $12,000. Effective immediately.


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

 

 

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
5Sections 15-170 and 15-175 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior Citizens Homestead Exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

 

 

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500 and, for taxable years 2008 through
42012 and thereafter, the maximum reduction is $4,000 in all
5counties, and, for taxable years 2013 and thereafter, the
6maximum reduction is $8,000.
7    For land improved with an apartment building owned and
8operated as a cooperative, the maximum reduction from the value
9of the property, as equalized by the Department, shall be
10multiplied by the number of apartments or units occupied by a
11person 65 years of age or older who is liable, by contract with
12the owner or owners of record, for paying property taxes on the
13property and is an owner of record of a legal or equitable
14interest in the cooperative apartment building, other than a
15leasehold interest. For land improved with a life care
16facility, the maximum reduction from the value of the property,
17as equalized by the Department, shall be multiplied by the
18number of apartments or units occupied by persons 65 years of
19age or older, irrespective of any legal, equitable, or
20leasehold interest in the facility, who are liable, under a
21contract with the owner or owners of record of the facility,
22for paying property taxes on the property. In a cooperative or
23a life care facility where a homestead exemption has been
24granted, the cooperative association or the management firm of
25the cooperative or facility shall credit the savings resulting
26from that exemption only to the apportioned tax liability of

 

 

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1the owner or resident who qualified for the exemption. Any
2person who willfully refuses to so credit the savings shall be
3guilty of a Class B misdemeanor. Under this Section and
4Sections 15-175, 15-176, and 15-177, "life care facility" means
5a facility, as defined in Section 2 of the Life Care Facilities
6Act, with which the applicant for the homestead exemption has a
7life care contract as defined in that Act.
8    When a homestead exemption has been granted under this
9Section and the person qualifying subsequently becomes a
10resident of a facility licensed under the Assisted Living and
11Shared Housing Act, the Nursing Home Care Act, the Specialized
12Mental Health Rehabilitation Act, or the ID/DD Community Care
13Act, the exemption shall continue so long as the residence
14continues to be occupied by the qualifying person's spouse if
15the spouse is 65 years of age or older, or if the residence
16remains unoccupied but is still owned by the person qualified
17for the homestead exemption.
18    A person who will be 65 years of age during the current
19assessment year shall be eligible to apply for the homestead
20exemption during that assessment year. Application shall be
21made during the application period in effect for the county of
22his residence.
23    Beginning with assessment year 2003, for taxes payable in
242004, property that is first occupied as a residence after
25January 1 of any assessment year by a person who is eligible
26for the senior citizens homestead exemption under this Section

 

 

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1must be granted a pro-rata exemption for the assessment year.
2The amount of the pro-rata exemption is the exemption allowed
3in the county under this Section divided by 365 and multiplied
4by the number of days during the assessment year the property
5is occupied as a residence by a person eligible for the
6exemption under this Section. The chief county assessment
7officer must adopt reasonable procedures to establish
8eligibility for this pro-rata exemption.
9    The assessor or chief county assessment officer may
10determine the eligibility of a life care facility to receive
11the benefits provided by this Section, by affidavit,
12application, visual inspection, questionnaire or other
13reasonable methods in order to insure that the tax savings
14resulting from the exemption are credited by the management
15firm to the apportioned tax liability of each qualifying
16resident. The assessor may request reasonable proof that the
17management firm has so credited the exemption.
18    The chief county assessment officer of each county with
19less than 3,000,000 inhabitants shall provide to each person
20allowed a homestead exemption under this Section a form to
21designate any other person to receive a duplicate of any notice
22of delinquency in the payment of taxes assessed and levied
23under this Code on the property of the person receiving the
24exemption. The duplicate notice shall be in addition to the
25notice required to be provided to the person receiving the
26exemption, and shall be given in the manner required by this

 

 

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1Code. The person filing the request for the duplicate notice
2shall pay a fee of $5 to cover administrative costs to the
3supervisor of assessments, who shall then file the executed
4designation with the county collector. Notwithstanding any
5other provision of this Code to the contrary, the filing of
6such an executed designation requires the county collector to
7provide duplicate notices as indicated by the designation. A
8designation may be rescinded by the person who executed such
9designation at any time, in the manner and form required by the
10chief county assessment officer.
11    The assessor or chief county assessment officer may
12determine the eligibility of residential property to receive
13the homestead exemption provided by this Section by
14application, visual inspection, questionnaire or other
15reasonable methods. The determination shall be made in
16accordance with guidelines established by the Department.
17    In counties with 3,000,000 or more inhabitants, beginning
18in taxable year 2010, each taxpayer who has been granted an
19exemption under this Section must reapply on an annual basis.
20The chief county assessment officer shall mail the application
21to the taxpayer. In counties with less than 3,000,000
22inhabitants, the county board may by resolution provide that if
23a person has been granted a homestead exemption under this
24Section, the person qualifying need not reapply for the
25exemption.
26    In counties with less than 3,000,000 inhabitants, if the

 

 

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1assessor or chief county assessment officer requires annual
2application for verification of eligibility for an exemption
3once granted under this Section, the application shall be
4mailed to the taxpayer.
5    The assessor or chief county assessment officer shall
6notify each person who qualifies for an exemption under this
7Section that the person may also qualify for deferral of real
8estate taxes under the Senior Citizens Real Estate Tax Deferral
9Act. The notice shall set forth the qualifications needed for
10deferral of real estate taxes, the address and telephone number
11of county collector, and a statement that applications for
12deferral of real estate taxes may be obtained from the county
13collector.
14    Notwithstanding Sections 6 and 8 of the State Mandates Act,
15no reimbursement by the State is required for the
16implementation of any mandate created by this Section.
17(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
1896-1000, eff. 7-2-10; 96-1418, eff. 8-2-10; 97-38, eff.
196-28-11; 97-227, eff. 1-1-12; 97-813, eff. 7-13-12.)
 
20    (35 ILCS 200/15-175)
21    Sec. 15-175. General homestead exemption.
22    (a) Except as provided in Sections 15-176 and 15-177,
23homestead property is entitled to an annual homestead exemption
24limited, except as described here with relation to
25cooperatives, to a reduction in the equalized assessed value of

 

 

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1homestead property equal to the increase in equalized assessed
2value for the current assessment year above the equalized
3assessed value of the property for 1977, up to the maximum
4reduction set forth below. If however, the 1977 equalized
5assessed value upon which taxes were paid is subsequently
6determined by local assessing officials, the Property Tax
7Appeal Board, or a court to have been excessive, the equalized
8assessed value which should have been placed on the property
9for 1977 shall be used to determine the amount of the
10exemption.
11    (b) Except as provided in Section 15-176, the maximum
12reduction before taxable year 2004 shall be $4,500 in counties
13with 3,000,000 or more inhabitants and $3,500 in all other
14counties. Except as provided in Sections 15-176 and 15-177, for
15taxable years 2004 through 2007, the maximum reduction shall be
16$5,000, for taxable year 2008, the maximum reduction is $5,500,
17and, for taxable years 2009 through 2012 and thereafter, the
18maximum reduction is $6,000 in all counties, and, for taxable
19years 2013 and thereafter, the maximum reduction is $12,000 in
20all counties. If a county has elected to subject itself to the
21provisions of Section 15-176 as provided in subsection (k) of
22that Section, then, for the first taxable year only after the
23provisions of Section 15-176 no longer apply, for owners who,
24for the taxable year, have not been granted a senior citizens
25assessment freeze homestead exemption under Section 15-172 or a
26long-time occupant homestead exemption under Section 15-177,

 

 

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1there shall be an additional exemption of $5,000 for owners
2with a household income of $30,000 or less.
3    (c) In counties with fewer than 3,000,000 inhabitants, if,
4based on the most recent assessment, the equalized assessed
5value of the homestead property for the current assessment year
6is greater than the equalized assessed value of the property
7for 1977, the owner of the property shall automatically receive
8the exemption granted under this Section in an amount equal to
9the increase over the 1977 assessment up to the maximum
10reduction set forth in this Section.
11    (d) If in any assessment year beginning with the 2000
12assessment year, homestead property has a pro-rata valuation
13under Section 9-180 resulting in an increase in the assessed
14valuation, a reduction in equalized assessed valuation equal to
15the increase in equalized assessed value of the property for
16the year of the pro-rata valuation above the equalized assessed
17value of the property for 1977 shall be applied to the property
18on a proportionate basis for the period the property qualified
19as homestead property during the assessment year. The maximum
20proportionate homestead exemption shall not exceed the maximum
21homestead exemption allowed in the county under this Section
22divided by 365 and multiplied by the number of days the
23property qualified as homestead property.
24    (e) The chief county assessment officer may, when
25considering whether to grant a leasehold exemption under this
26Section, require the following conditions to be met:

 

 

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

 

 

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1        rent payments as set forth above (or increased or
2        decreased as set forth herein).".
3    In addition, if there is a change in lessee, or if the
4lessee vacates the property, then the chief county assessment
5officer may require the owner of the property to notify the
6chief county assessment officer of that change.
7    This subsection (e) does not apply to leasehold interests
8in property owned by a municipality.
9    (f) "Homestead property" under this Section includes
10residential property that is occupied by its owner or owners as
11his or their principal dwelling place, or that is a leasehold
12interest on which a single family residence is situated, which
13is occupied as a residence by a person who has an ownership
14interest therein, legal or equitable or as a lessee, and on
15which the person is liable for the payment of property taxes.
16For land improved with an apartment building owned and operated
17as a cooperative or a building which is a life care facility as
18defined in Section 15-170 and considered to be a cooperative
19under Section 15-170, the maximum reduction from the equalized
20assessed value shall be limited to the increase in the value
21above the equalized assessed value of the property for 1977, up
22to the maximum reduction set forth above, multiplied by the
23number of apartments or units occupied by a person or persons
24who is liable, by contract with the owner or owners of record,
25for paying property taxes on the property and is an owner of
26record of a legal or equitable interest in the cooperative

 

 

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1apartment building, other than a leasehold interest. For
2purposes of this Section, the term "life care facility" has the
3meaning stated in Section 15-170.
4    "Household", as used in this Section, means the owner, the
5spouse of the owner, and all persons using the residence of the
6owner as their principal place of residence.
7    "Household income", as used in this Section, means the
8combined income of the members of a household for the calendar
9year preceding the taxable year.
10    "Income", as used in this Section, has the same meaning as
11provided in Section 3.07 of the Senior Citizens and Disabled
12Persons Property Tax Relief Act, except that "income" does not
13include veteran's benefits.
14    (g) In a cooperative where a homestead exemption has been
15granted, the cooperative association or its management firm
16shall credit the savings resulting from that exemption only to
17the apportioned tax liability of the owner who qualified for
18the exemption. Any person who willfully refuses to so credit
19the savings shall be guilty of a Class B misdemeanor.
20    (h) Where married persons maintain and reside in separate
21residences qualifying as homestead property, each residence
22shall receive 50% of the total reduction in equalized assessed
23valuation provided by this Section.
24    (i) In all counties, the assessor or chief county
25assessment officer may determine the eligibility of
26residential property to receive the homestead exemption and the

 

 

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1amount of the exemption by application, visual inspection,
2questionnaire or other reasonable methods. The determination
3shall be made in accordance with guidelines established by the
4Department, provided that the taxpayer applying for an
5additional general exemption under this Section shall submit to
6the chief county assessment officer an application with an
7affidavit of the applicant's total household income, age,
8marital status (and, if married, the name and address of the
9applicant's spouse, if known), and principal dwelling place of
10members of the household on January 1 of the taxable year. The
11Department shall issue guidelines establishing a method for
12verifying the accuracy of the affidavits filed by applicants
13under this paragraph. The applications shall be clearly marked
14as applications for the Additional General Homestead
15Exemption.
16    (j) In counties with fewer than 3,000,000 inhabitants, in
17the event of a sale of homestead property the homestead
18exemption shall remain in effect for the remainder of the
19assessment year of the sale. The assessor or chief county
20assessment officer may require the new owner of the property to
21apply for the homestead exemption for the following assessment
22year.
23    (k) Notwithstanding Sections 6 and 8 of the State Mandates
24Act, no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;

 

 

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1revised 9-20-12.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.