Illinois General Assembly - Full Text of SB0013
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Full Text of SB0013  95th General Assembly

SB0013eng 95TH GENERAL ASSEMBLY



 


 
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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
11 or 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

 

 

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1 under this Section, "veteran" means an Illinois resident who
2 has served as a member of the United States Armed Forces, a
3 member of the Illinois National Guard, or a member of the
4 United States Reserve Forces.
5     (b) In all counties, the reduction is $5,000 and only for
6 the tax year in which the veteran returns from active duty in
7 an armed conflict involving the armed forces of the United
8 States. For land improved with an apartment building owned and
9 operated as a cooperative, the maximum reduction from the value
10 of the property, as equalized by the Department, must be
11 multiplied by the number of apartments or units occupied by a
12 veteran returning from an armed conflict involving the armed
13 forces of the United States who is liable, by contract with the
14 owner or owners of record, for paying property taxes on the
15 property and is an owner of record of a legal or equitable
16 interest in the cooperative apartment building, other than a
17 leasehold interest. In a cooperative where a homestead
18 exemption has been granted, the cooperative association or the
19 management firm of the cooperative or facility shall credit the
20 savings resulting from that exemption only to the apportioned
21 tax liability of the owner or resident who qualified for the
22 exemption. Any person who willfully refuses to so credit the
23 savings is guilty of a Class B misdemeanor.
24     (c) Application must be made during the application period
25 in effect for the county of his or her residence. The assessor
26 or chief county assessment officer may determine the

 

 

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1 eligibility of residential property to receive the homestead
2 exemption provided by this Section by application, visual
3 inspection, questionnaire, or other reasonable methods. The
4 determination must be made in accordance with guidelines
5 established by the Department.
6     (d) The exemption under this Section is in addition to any
7 other homestead provided in Sections 15-170 through 15-176.
8 Notwithstanding Sections 6 and 8 of the State Mandates Act, no
9 reimbursement by the State is required for the implementation
10 of any mandate created by this Section.
 
11     (35 ILCS 200/15-170)
12     Sec. 15-170. Senior Citizens Homestead Exemption. An
13 annual homestead exemption limited, except as described here
14 with relation to cooperatives or life care facilities, to a
15 maximum reduction set forth below from the property's value, as
16 equalized or assessed by the Department, is granted for
17 property that is occupied as a residence by a person 65 years
18 of age or older who is liable for paying real estate taxes on
19 the property and is an owner of record of the property or has a
20 legal or equitable interest therein as evidenced by a written
21 instrument, except for a leasehold interest, other than a
22 leasehold interest of land on which a single family residence
23 is located, which is occupied as a residence by a person 65
24 years or older who has an ownership interest therein, legal,
25 equitable or as a lessee, and on which he or she is liable for

 

 

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

 

 

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1 the owner or resident who qualified for the exemption. Any
2 person who willfully refuses to so credit the savings shall be
3 guilty of a Class B misdemeanor. Under this Section and
4 Sections 15-175 and 15-176, "life care facility" means a
5 facility as defined in Section 2 of the Life Care Facilities
6 Act, with which the applicant for the homestead exemption has a
7 life care contract as defined in that Act.
8     When a homestead exemption has been granted under this
9 Section and the person qualifying subsequently becomes a
10 resident of a facility licensed under the Nursing Home Care
11 Act, the exemption shall continue so long as the residence
12 continues to be occupied by the qualifying person's spouse if
13 the spouse is 65 years of age or older, or if the residence
14 remains unoccupied but is still owned by the person qualified
15 for the homestead exemption.
16     A person who will be 65 years of age during the current
17 assessment year shall be eligible to apply for the homestead
18 exemption during that assessment year. Application shall be
19 made during the application period in effect for the county of
20 his residence.
21     Beginning with assessment year 2003, for taxes payable in
22 2004, property that is first occupied as a residence after
23 January 1 of any assessment year by a person who is eligible
24 for the senior citizens homestead exemption under this Section
25 must be granted a pro-rata exemption for the assessment year.
26 The amount of the pro-rata exemption is the exemption allowed

 

 

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

 

 

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

 

 

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1 estate taxes under the Senior Citizens Real Estate Tax Deferral
2 Act. The notice shall set forth the qualifications needed for
3 deferral of real estate taxes, the address and telephone number
4 of county collector, and a statement that applications for
5 deferral of real estate taxes may be obtained from the county
6 collector.
7     Notwithstanding Sections 6 and 8 of the State Mandates Act,
8 no reimbursement by the State is required for the
9 implementation of any mandate created by this Section.
10 (Source: P.A. 93-511, eff. 8-11-03; 93-715, eff. 7-12-04;
11 94-794, eff. 5-22-06.)
 
12     (35 ILCS 200/15-176)
13     Sec. 15-176. Alternative general homestead exemption.
14     (a) For the assessment years as determined under subsection
15 (j), in any county that has elected, by an ordinance in
16 accordance with subsection (k), to be subject to the provisions
17 of this Section in lieu of the provisions of Section 15-175,
18 homestead property is entitled to an annual homestead exemption
19 equal to a reduction in the property's equalized assessed value
20 calculated as provided in this Section.
21     (b) As used in this Section:
22         (1) "Assessor" means the supervisor of assessments or
23     the chief county assessment officer of each county.
24         (2) "Adjusted homestead value" means the lesser of the
25     following values:

 

 

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1             (A) The property's base homestead value increased
2         by 7% for each tax year after the base year through and
3         including the current tax year, or, if the property is
4         sold or ownership is otherwise transferred, the
5         property's base homestead value increased by 7% for
6         each tax year after the year of the sale or transfer
7         through and including the current tax year. The
8         increase by 7% each year is an increase by 7% over the
9         prior year.
10             (B) The property's equalized assessed value for
11         the current tax year minus: (i) $4,500 in Cook County
12         or $3,500 in all other counties in tax year 2003; or
13         (ii) $5,000 in all counties in tax years year 2004 and
14         2005; and (iii) the lesser of $5,000 or an amount equal
15         to the increase in the equalized assessed value for the
16         current tax year above the equalized assessed value for
17         1977 in tax year 2006 and thereafter.
18         (3) "Base homestead value".
19             (A) Except as provided in subdivision (b)(3)(A-5)
20         or (b)(3)(B), "base homestead value" means the
21         equalized assessed value of the property for the base
22         year prior to exemptions, minus (i) $4,500 in Cook
23         County or $3,500 in all other counties in tax year 2003
24         or (ii) $5,000 in all counties in tax year 2004 and
25         thereafter, provided that it was assessed for that year
26         as residential property qualified for any of the

 

 

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1         homestead exemptions under Sections 15-170 through
2         15-175 of this Code, then in force, and further
3         provided that the property's assessment was not based
4         on a reduced assessed value resulting from a temporary
5         irregularity in the property for that year. Except as
6         provided in subdivision (b)(3)(B), if the property did
7         not have a residential equalized assessed value for the
8         base year, then "base homestead value" means the base
9         homestead value established by the assessor under
10         subsection (c).
11             (A-5) On or before July 1, 2007, in Cook County,
12         the base homestead value, as set forth under
13         subdivision (b)(3)(A) and except as provided under
14         subdivision (b) (3) (B), must be recalculated as the
15         equalized assessed value of the property for the base
16         year, prior to exemptions, minus:
17                 (1) if the general assessment year for the
18             property was 2003, the lesser of (i) $4,500 or (ii)
19             the amount equal to the increase in equalized
20             assessed value for the 2002 tax year above the
21             equalized assessed value for 1977;
22                 (2) if the general assessment year for the
23             property was 2004, the lesser of (i) $4,500 or (ii)
24             the amount equal to the increase in equalized
25             assessed value for the 2003 tax year above the
26             equalized assessed value for 1977;

 

 

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1                 (3) if the general assessment year for the
2             property was 2005, the lesser of (i) $5,000 or (ii)
3             the amount equal to the increase in equalized
4             assessed value for the 2004 tax year above the
5             equalized assessed value for 1977.
6             (B) If the property is sold or ownership is
7         otherwise transferred, other than sales or transfers
8         between spouses or between a parent and a child, "base
9         homestead value" means the equalized assessed value of
10         the property at the time of the sale or transfer prior
11         to exemptions, minus: (i) $4,500 in Cook County or
12         $3,500 in all other counties in tax year 2003; or (ii)
13         $5,000 in all counties in tax years year 2004 and 2005;
14         and (iii) the lesser of $5,000 or an amount equal to
15         the increase in the equalized assessed value for the
16         current tax year above the equalized assessed value for
17         1977 in tax year 2006 and thereafter, provided that it
18         was assessed as residential property qualified for any
19         of the homestead exemptions under Sections 15-170
20         through 15-175 of this Code, then in force, and further
21         provided that the property's assessment was not based
22         on a reduced assessed value resulting from a temporary
23         irregularity in the property.
24         (3.5) "Base year" means (i) tax year 2002 in Cook
25     County or (ii) tax year 2005 or 2006 2002 or 2003 in all
26     other counties in accordance with the designation made by

 

 

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1     the county as provided in subsection (k).
2         (4) "Current tax year" means the tax year for which the
3     exemption under this Section is being applied.
4         (5) "Equalized assessed value" means the property's
5     assessed value as equalized by the Department.
6         (6) "Homestead" or "homestead property" means:
7             (A) Residential property that as of January 1 of
8         the tax year is occupied by its owner or owners as his,
9         her, or their principal dwelling place, or that is a
10         leasehold interest on which a single family residence
11         is situated, that is occupied as a residence by a
12         person who has a legal or equitable interest therein
13         evidenced by a written instrument, as an owner or as a
14         lessee, and on which the person is liable for the
15         payment of property taxes. Residential units in an
16         apartment building owned and operated as a
17         cooperative, or as a life care facility, which are
18         occupied by persons who hold a legal or equitable
19         interest in the cooperative apartment building or life
20         care facility as owners or lessees, and who are liable
21         by contract for the payment of property taxes, shall be
22         included within this definition of homestead property.
23             (B) A homestead includes the dwelling place,
24         appurtenant structures, and so much of the surrounding
25         land constituting the parcel on which the dwelling
26         place is situated as is used for residential purposes.

 

 

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1         If the assessor has established a specific legal
2         description for a portion of property constituting the
3         homestead, then the homestead shall be limited to the
4         property within that description.
5         (7) "Life care facility" means a facility as defined in
6     Section 2 of the Life Care Facilities Act.
7     (c) If the property did not have a residential equalized
8 assessed value for the base year as provided in subdivision
9 (b)(3)(A) of this Section, then the assessor shall first
10 determine an initial value for the property by comparison with
11 assessed values for the base year of other properties having
12 physical and economic characteristics similar to those of the
13 subject property, so that the initial value is uniform in
14 relation to assessed values of those other properties for the
15 base year. The product of the initial value multiplied by the
16 equalized factor for the base year for homestead properties in
17 that county, less: (i) $4,500 in Cook County or $3,500 in all
18 other counties in tax years year 2003; or (ii) $5,000 in all
19 counties in tax year 2004 and 2005; and (iii) the lesser of
20 $5,000 or an amount equal to the increase in the equalized
21 assessed value for the current tax year above the equalized
22 assessed value for 1977 in tax year 2006 and thereafter, is the
23 base homestead value.
24     For any tax year for which the assessor determines or
25 adjusts an initial value and hence a base homestead value under
26 this subsection (c), the initial value shall be subject to

 

 

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1 review by the same procedures applicable to assessed values
2 established under this Code for that tax year.
3     (d) The base homestead value shall remain constant, except
4 that the assessor may revise it under the following
5 circumstances:
6         (1) If the equalized assessed value of a homestead
7     property for the current tax year is less than the previous
8     base homestead value for that property, then the current
9     equalized assessed value (provided it is not based on a
10     reduced assessed value resulting from a temporary
11     irregularity in the property) shall become the base
12     homestead value in subsequent tax years.
13         (2) For any year in which new buildings, structures, or
14     other improvements are constructed on the homestead
15     property that would increase its assessed value, the
16     assessor shall adjust the base homestead value as provided
17     in subsection (c) of this Section with due regard to the
18     value added by the new improvements.
19         (3) If the property is sold or ownership is otherwise
20     transferred, the base homestead value of the property shall
21     be adjusted as provided in subdivision (b)(3)(B). This item
22     (3) does not apply to sales or transfers between spouses or
23     between a parent and a child.
24         (4) the recalculation required in Cook County under
25     subdivision (b)(3)(A-5).
26     (e) The amount of the exemption under this Section is the

 

 

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1 equalized assessed value of the homestead property for the
2 current tax year, minus the adjusted homestead value, with the
3 following exceptions:
4         (1) In Cook County, the The exemption under this
5     Section shall not exceed $20,000 for any taxable year
6     through tax year:
7             (i) 2005, if the general assessment year for the
8         property is 2003;
9             (ii) 2006, if the general assessment year for the
10         property is 2004; or
11             (iii) 2007, if the general assessment year for the
12         property is 2005.
13     Thereafter, in Cook County, the exemption under this
14     Section shall not exceed $60,000 for any taxable year.
15         (1.5) For all tax years in all other counties other
16     than Cook County, the exemption under this Section shall
17     not exceed $60,000 for any taxable year.
18         (2) In the case of homestead property that also
19     qualifies for the exemption under Section 15-172, the
20     property is entitled to the exemption under this Section,
21     limited to the amount of (i) $4,500 in Cook County or
22     $3,500 in all other counties in tax year 2003 or (ii)
23     $5,000 in all counties in tax year 2004 and thereafter.
24     (f) In the case of an apartment building owned and operated
25 as a cooperative, or as a life care facility, that contains
26 residential units that qualify as homestead property under this

 

 

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1 Section, the maximum cumulative exemption amount attributed to
2 the entire building or facility shall not exceed the sum of the
3 exemptions calculated for each qualified residential unit. The
4 cooperative association, management firm, or other person or
5 entity that manages or controls the cooperative apartment
6 building or life care facility shall credit the exemption
7 attributable to each residential unit only to the apportioned
8 tax liability of the owner or other person responsible for
9 payment of taxes as to that unit. Any person who willfully
10 refuses to so credit the exemption is guilty of a Class B
11 misdemeanor.
12     (g) When married persons maintain separate residences, the
13 exemption provided under this Section shall be claimed by only
14 one such person and for only one residence.
15     (h) In the event of a sale or other transfer in ownership
16 of the homestead property, the exemption under this Section
17 shall remain in effect for the remainder of the tax year in
18 which the sale or transfer occurs, but (other than for sales or
19 transfers between spouses or between a parent and a child)
20 shall be calculated using the new base homestead value as
21 provided in subdivision (b)(3)(B). The assessor may require the
22 new owner of the property to apply for the exemption in the
23 following year.
24     (i) The assessor may determine whether property qualifies
25 as a homestead under this Section by application, visual
26 inspection, questionnaire, or other reasonable methods. Each

 

 

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1 year, at the time the assessment books are certified to the
2 county clerk by the board of review, the assessor shall furnish
3 to the county clerk a list of the properties qualified for the
4 homestead exemption under this Section. The list shall note the
5 base homestead value of each property to be used in the
6 calculation of the exemption for the current tax year.
7     (j) In counties with 3,000,000 or more inhabitants, the
8 provisions of this Section apply as follows:
9         (1) If the general assessment year for the property is
10     2003, this Section applies for assessment years 2003, 2004,
11     and 2005, 2006, 2007, and 2008. Thereafter, the provisions
12     of Section 15-175 apply.
13         (2) If the general assessment year for the property is
14     2004, this Section applies for assessment years 2004, 2005,
15     and 2006, 2007, 2008, and 2009. Thereafter, the provisions
16     of Section 15-175 apply.
17         (3) If the general assessment year for the property is
18     2005, this Section applies for assessment years 2005, 2006,
19     and 2007, 2008, 2009, and 2010. Thereafter, the provisions
20     of Section 15-175 apply.
21     In counties with less than 3,000,000 inhabitants, this
22 Section applies for assessment years (i) 2006, 2007, and 2008,
23 and 2009 if tax year 2005 2003, 2004, and 2005 if 2002 is the
24 designated base year or (ii) 2007, 2008, 2009, and 2010 if tax
25 year 2006 2004, 2005, and 2006 if 2003 is the designated base
26 year. Thereafter, the provisions of Section 15-175 apply.

 

 

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1     (k) To be subject to the provisions of this Section in lieu
2 of Section 15-175, a county must adopt an ordinance to subject
3 itself to the provisions of this Section within 6 months after
4 the effective date of this amendatory Act of the 95th General
5 Assembly 93rd General Assembly. In a county other than Cook
6 County, the ordinance must designate either tax year 2005 2002
7 or tax year 2006 2003 as the base year.
8     (l) Notwithstanding Sections 6 and 8 of the State Mandates
9 Act, no reimbursement by the State is required for the
10 implementation of any mandate created by this Section.
11 (Source: P.A. 93-715, eff. 7-12-04.)
 
12     Section 90. The State Mandates Act is amended by adding
13 Section 8.31 as follows:
 
14     (30 ILCS 805/8.31 new)
15     Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8
16 of this Act, no reimbursement by the State is required for the
17 implementation of any mandate created by this amendatory Act of
18 the 95th General Assembly.
 
19     Section 99. Effective date. This Act takes effect upon
20 becoming law.