Full Text of HB0156 100th General Assembly
HB0156eng 100TH GENERAL ASSEMBLY |
| | HB0156 Engrossed | | LRB100 03826 HLH 13831 b |
|
| 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 9-275, 15-169, 15-170, and 15-175 and by adding | 6 | | Sections 15-172.5 and 15-178 as follows: | 7 | | (35 ILCS 200/9-275) | 8 | | Sec. 9-275. Erroneous homestead exemptions. | 9 | | (a) For purposes of this Section: | 10 | | "Erroneous homestead exemption" means a homestead | 11 | | exemption that was granted for real property in a taxable year | 12 | | if the property was not eligible for that exemption in that | 13 | | taxable year. If the taxpayer receives an erroneous homestead | 14 | | exemption under a single Section of this Code for the same | 15 | | property in multiple years, that exemption is considered a | 16 | | single erroneous homestead exemption for purposes of this | 17 | | Section. However, if the taxpayer receives erroneous homestead | 18 | | exemptions under multiple Sections of this Code for the same | 19 | | property, or if the taxpayer receives erroneous homestead | 20 | | exemptions under the same Section of this Code for multiple | 21 | | properties, then each of those exemptions is considered a | 22 | | separate erroneous homestead exemption for purposes of this | 23 | | Section. |
| | | HB0156 Engrossed | - 2 - | LRB100 03826 HLH 13831 b |
|
| 1 | | "Homestead exemption" means an exemption under Section | 2 | | 15-165 (veterans with disabilities), 15-167 (returning | 3 | | veterans), 15-168 (persons with disabilities), 15-169 | 4 | | (standard homestead for veterans with disabilities and | 5 | | veterans 75 years of age or older ), 15-170 (senior citizens), | 6 | | 15-172 (senior citizens assessment freeze), 15-175 (general | 7 | | homestead), 15-176 (alternative general homestead), or 15-177 | 8 | | (long-time occupant). | 9 | | "Erroneous exemption principal amount" means the total | 10 | | difference between the property taxes actually billed to a | 11 | | property index number and the amount of property taxes that | 12 | | would have been billed but for the erroneous exemption or | 13 | | exemptions. | 14 | | "Taxpayer" means the property owner or leasehold owner that | 15 | | erroneously received a homestead exemption upon property. | 16 | | (b) Notwithstanding any other provision of law, in counties | 17 | | with 3,000,000 or more inhabitants, the chief county assessment | 18 | | officer shall include the following information with each | 19 | | assessment notice sent in a general assessment year: (1) a list | 20 | | of each homestead exemption available under Article 15 of this | 21 | | Code and a description of the eligibility criteria for that | 22 | | exemption; (2) a list of each homestead exemption applied to | 23 | | the property in the current assessment year; (3) information | 24 | | regarding penalties and interest that may be incurred under | 25 | | this Section if the taxpayer received an erroneous homestead | 26 | | exemption in a previous taxable year; and (4) notice of the |
| | | HB0156 Engrossed | - 3 - | LRB100 03826 HLH 13831 b |
|
| 1 | | 60-day grace period available under this subsection. If, within | 2 | | 60 days after receiving his or her assessment notice, the | 3 | | taxpayer notifies the chief county assessment officer that he | 4 | | or she received an erroneous homestead exemption in a previous | 5 | | taxable year, and if the taxpayer pays the erroneous exemption | 6 | | principal amount, plus interest as provided in subsection (f), | 7 | | then the taxpayer shall not be liable for the penalties | 8 | | provided in subsection (f) with respect to that exemption. | 9 | | (c) In counties with 3,000,000 or more inhabitants, when | 10 | | the chief county assessment officer determines that one or more | 11 | | erroneous homestead exemptions was applied to the property, the | 12 | | erroneous exemption principal amount, together with all | 13 | | applicable interest and penalties as provided in subsections | 14 | | (f) and (j), shall constitute a lien in the name of the People | 15 | | of Cook County on the property receiving the erroneous | 16 | | homestead exemption. Upon becoming aware of the existence of | 17 | | one or more erroneous homestead exemptions, the chief county | 18 | | assessment officer shall cause to be served, by both regular | 19 | | mail and certified mail, a notice of discovery as set forth in | 20 | | subsection (c-5). The chief county assessment officer in a | 21 | | county with 3,000,000 or more inhabitants may cause a lien to | 22 | | be recorded against property that (1) is located in the county | 23 | | and (2) received one or more erroneous homestead exemptions if, | 24 | | upon determination of the chief county assessment officer, the | 25 | | taxpayer received: (A) one or 2 erroneous homestead exemptions | 26 | | for real property, including at least one erroneous homestead |
| | | HB0156 Engrossed | - 4 - | LRB100 03826 HLH 13831 b |
|
| 1 | | exemption granted for the property against which the lien is | 2 | | sought, during any of the 3 collection years immediately prior | 3 | | to the current collection year in which the notice of discovery | 4 | | is served; or (B) 3 or more erroneous homestead exemptions for | 5 | | real property, including at least one erroneous homestead | 6 | | exemption granted for the property against which the lien is | 7 | | sought, during any of the 6 collection years immediately prior | 8 | | to the current collection year in which the notice of discovery | 9 | | is served. Prior to recording the lien against the property, | 10 | | the chief county assessment officer shall cause to be served, | 11 | | by both regular mail and certified mail, return receipt | 12 | | requested, on the person to whom the most recent tax bill was | 13 | | mailed and the owner of record, a notice of intent to record a | 14 | | lien against the property. The chief county assessment officer | 15 | | shall cause the notice of intent to record a lien to be served | 16 | | within 3 years from the date on which the notice of discovery | 17 | | was served. | 18 | | (c-5) The notice of discovery described in subsection (c) | 19 | | shall: (1) identify, by property index number, the property for | 20 | | which the chief county assessment officer has knowledge | 21 | | indicating the existence of an erroneous homestead exemption; | 22 | | (2) set forth the taxpayer's liability for principal, interest, | 23 | | penalties, and administrative costs including, but not limited | 24 | | to, recording fees described in subsection (f); (3) inform the | 25 | | taxpayer that he or she will be served with a notice of intent | 26 | | to record a lien within 3 years from the date of service of the |
| | | HB0156 Engrossed | - 5 - | LRB100 03826 HLH 13831 b |
|
| 1 | | notice of discovery; (4) inform the taxpayer that he or she may | 2 | | pay the outstanding amount, plus interest, penalties, and | 3 | | administrative costs at any time prior to being served with the | 4 | | notice of intent to record a lien or within 30 days after the | 5 | | notice of intent to record a lien is served; and (5) inform the | 6 | | taxpayer that, if the taxpayer provided notice to the chief | 7 | | county assessment officer as provided in subsection (d-1) of | 8 | | Section 15-175 of this Code, upon submission by the taxpayer of | 9 | | evidence of timely notice and receipt thereof by the chief | 10 | | county assessment officer, the chief county assessment officer | 11 | | will withdraw the notice of discovery and reissue a notice of | 12 | | discovery in compliance with this Section in which the taxpayer | 13 | | is not liable for interest and penalties for the current tax | 14 | | year in which the notice was received. | 15 | | For the purposes of this subsection (c-5): | 16 | | "Collection year" means the year in which the first and | 17 | | second installment of the current tax year is billed. | 18 | | "Current tax year" means the year prior to the collection | 19 | | year. | 20 | | (d) The notice of intent to record a lien described in | 21 | | subsection (c) shall: (1) identify, by property index number, | 22 | | the property against which the lien is being sought; (2) | 23 | | identify each specific homestead exemption that was | 24 | | erroneously granted and the year or years in which each | 25 | | exemption was granted; (3) set forth the erroneous exemption | 26 | | principal amount due and the interest amount and any penalty |
| | | HB0156 Engrossed | - 6 - | LRB100 03826 HLH 13831 b |
|
| 1 | | and administrative costs due; (4) inform the taxpayer that he | 2 | | or she may request a hearing within 30 days after service and | 3 | | may appeal the hearing officer's ruling to the circuit court; | 4 | | (5) inform the taxpayer that he or she may pay the erroneous | 5 | | exemption principal amount, plus interest and penalties, | 6 | | within 30 days after service; and (6) inform the taxpayer that, | 7 | | if the lien is recorded against the property, the amount of the | 8 | | lien will be adjusted to include the applicable recording fee | 9 | | and that fees for recording a release of the lien shall be | 10 | | incurred by the taxpayer. A lien shall not be filed pursuant to | 11 | | this Section if the taxpayer pays the erroneous exemption | 12 | | principal amount, plus penalties and interest, within 30 days | 13 | | of service of the notice of intent to record a lien. | 14 | | (e) The notice of intent to record a lien shall also | 15 | | include a form that the taxpayer may return to the chief county | 16 | | assessment officer to request a hearing. The taxpayer may | 17 | | request a hearing by returning the form within 30 days after | 18 | | service. The hearing shall be held within 90 days after the | 19 | | taxpayer is served. The chief county assessment officer shall | 20 | | promulgate rules of service and procedure for the hearing. The | 21 | | chief county assessment officer must generally follow rules of | 22 | | evidence and practices that prevail in the county circuit | 23 | | courts, but, because of the nature of these proceedings, the | 24 | | chief county assessment officer is not bound by those rules in | 25 | | all particulars. The chief county assessment officer shall | 26 | | appoint a hearing officer to oversee the hearing. The taxpayer |
| | | HB0156 Engrossed | - 7 - | LRB100 03826 HLH 13831 b |
|
| 1 | | shall be allowed to present evidence to the hearing officer at | 2 | | the hearing. After taking into consideration all the relevant | 3 | | testimony and evidence, the hearing officer shall make an | 4 | | administrative decision on whether the taxpayer was | 5 | | erroneously granted a homestead exemption for the taxable year | 6 | | in question. The taxpayer may appeal the hearing officer's | 7 | | ruling to the circuit court of the county where the property is | 8 | | located as a final administrative decision under the | 9 | | Administrative Review Law. | 10 | | (f) A lien against the property imposed under this Section | 11 | | shall be filed with the county recorder of deeds, but may not | 12 | | be filed sooner than 60 days after the notice of intent to | 13 | | record a lien was delivered to the taxpayer if the taxpayer | 14 | | does not request a hearing, or until the conclusion of the | 15 | | hearing and all appeals if the taxpayer does request a hearing. | 16 | | If a lien is filed pursuant to this Section and the taxpayer | 17 | | received one or 2 erroneous homestead exemptions during any of | 18 | | the 3 collection years immediately prior to the current | 19 | | collection year in which the notice of discovery is served, | 20 | | then the erroneous exemption principal amount, plus 10% | 21 | | interest per annum or portion thereof from the date the | 22 | | erroneous exemption principal amount would have become due if | 23 | | properly included in the tax bill, shall be charged against the | 24 | | property by the chief county assessment officer. However, if a | 25 | | lien is filed pursuant to this Section and the taxpayer | 26 | | received 3 or more erroneous homestead exemptions during any of |
| | | HB0156 Engrossed | - 8 - | LRB100 03826 HLH 13831 b |
|
| 1 | | the 6 collection years immediately prior to the current | 2 | | collection year in which the notice of discovery is served, the | 3 | | erroneous exemption principal amount, plus a penalty of 50% of | 4 | | the total amount of the erroneous exemption principal amount | 5 | | for that property and 10% interest per annum or portion thereof | 6 | | from the date the erroneous exemption principal amount would | 7 | | have become due if properly included in the tax bill, shall be | 8 | | charged against the property by the chief county assessment | 9 | | officer. If a lien is filed pursuant to this Section, the | 10 | | taxpayer shall not be liable for interest that accrues between | 11 | | the date the notice of discovery is served and the date the | 12 | | lien is filed. Before recording the lien with the county | 13 | | recorder of deeds, the chief county assessment officer shall | 14 | | adjust the amount of the lien to add administrative costs, | 15 | | including but not limited to the applicable recording fee, to | 16 | | the total lien amount. | 17 | | (g) If a person received an erroneous homestead exemption | 18 | | under Section 15-170 and: (1) the person was the spouse, child, | 19 | | grandchild, brother, sister, niece, or nephew of the previous | 20 | | taxpayer; and (2) the person received the property by bequest | 21 | | or inheritance; then the person is not liable for the penalties | 22 | | imposed under this Section for any year or years during which | 23 | | the chief county assessment officer did not require an annual | 24 | | application for the exemption. However, that person is | 25 | | responsible for any interest owed under subsection (f). | 26 | | (h) If the erroneous homestead exemption was granted as a |
| | | HB0156 Engrossed | - 9 - | LRB100 03826 HLH 13831 b |
|
| 1 | | result of a clerical error or omission on the part of the chief | 2 | | county assessment officer, and if the taxpayer has paid the tax | 3 | | bills as received for the year in which the error occurred, | 4 | | then the interest and penalties authorized by this Section with | 5 | | respect to that homestead exemption shall not be chargeable to | 6 | | the taxpayer. However, nothing in this Section shall prevent | 7 | | the collection of the erroneous exemption principal amount due | 8 | | and owing. | 9 | | (i) A lien under this Section is not valid as to (1) any | 10 | | bona fide purchaser for value without notice of the erroneous | 11 | | homestead exemption whose rights in and to the underlying | 12 | | parcel arose after the erroneous homestead exemption was | 13 | | granted but before the filing of the notice of lien; or (2) any | 14 | | mortgagee, judgment creditor, or other lienor whose rights in | 15 | | and to the underlying parcel arose before the filing of the | 16 | | notice of lien. A title insurance policy for the property that | 17 | | is issued by a title company licensed to do business in the | 18 | | State showing that the property is free and clear of any liens | 19 | | imposed under this Section shall be prima facie evidence that | 20 | | the taxpayer is without notice of the erroneous homestead | 21 | | exemption. Nothing in this Section shall be deemed to impair | 22 | | the rights of subsequent creditors and subsequent purchasers | 23 | | under Section 30 of the Conveyances Act. | 24 | | (j) When a lien is filed against the property pursuant to | 25 | | this Section, the chief county assessment officer shall mail a | 26 | | copy of the lien to the person to whom the most recent tax bill |
| | | HB0156 Engrossed | - 10 - | LRB100 03826 HLH 13831 b |
|
| 1 | | was mailed and to the owner of record, and the outstanding | 2 | | liability created by such a lien is due and payable within 30 | 3 | | days after the mailing of the lien by the chief county | 4 | | assessment officer. This liability is deemed delinquent and | 5 | | shall bear interest beginning on the day after the due date at | 6 | | a rate of 1.5% per month or portion thereof. Payment shall be | 7 | | made to the county treasurer. Upon receipt of the full amount | 8 | | due, as determined by the chief county assessment officer, the | 9 | | county treasurer shall distribute the amount paid as provided | 10 | | in subsection (k). Upon presentment by the taxpayer to the | 11 | | chief county assessment officer of proof of payment of the | 12 | | total liability, the chief county assessment officer shall | 13 | | provide in reasonable form a release of the lien. The release | 14 | | of the lien provided shall clearly inform the taxpayer that it | 15 | | is the responsibility of the taxpayer to record the lien | 16 | | release form with the county recorder of deeds and to pay any | 17 | | applicable recording fees. | 18 | | (k) The county treasurer shall pay collected erroneous | 19 | | exemption principal amounts, pro rata, to the taxing districts, | 20 | | or their legal successors, that levied upon the subject | 21 | | property in the taxable year or years for which the erroneous | 22 | | homestead exemptions were granted, except as set forth in this | 23 | | Section. The county treasurer shall deposit collected | 24 | | penalties and interest into a special fund established by the | 25 | | county treasurer to offset the costs of administration of the | 26 | | provisions of this Section by the chief county assessment |
| | | HB0156 Engrossed | - 11 - | LRB100 03826 HLH 13831 b |
|
| 1 | | officer's office, as appropriated by the county board. If the | 2 | | costs of administration of this Section exceed the amount of | 3 | | interest and penalties collected in the special fund, the chief | 4 | | county assessor shall be reimbursed by each taxing district or | 5 | | their legal successors for those costs. Such costs shall be | 6 | | paid out of the funds collected by the county treasurer on | 7 | | behalf of each taxing district pursuant to this Section. | 8 | | (l) The chief county assessment officer in a county with | 9 | | 3,000,000 or more inhabitants shall establish an amnesty period | 10 | | for all taxpayers owing any tax due to an erroneous homestead | 11 | | exemption granted in a tax year prior to the 2013 tax year. The | 12 | | amnesty period shall begin on the effective date of this | 13 | | amendatory Act of the 98th General Assembly and shall run | 14 | | through December 31, 2013. If, during the amnesty period, the | 15 | | taxpayer pays the entire arrearage of taxes due for tax years | 16 | | prior to 2013, the county clerk shall abate and not seek to | 17 | | collect any interest or penalties that may be applicable and | 18 | | shall not seek civil or criminal prosecution for any taxpayer | 19 | | for tax years prior to 2013. Failure to pay all such taxes due | 20 | | during the amnesty period established under this Section shall | 21 | | invalidate the amnesty period for that taxpayer. | 22 | | The chief county assessment officer in a county with | 23 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 24 | | amnesty period with the tax bills for the second installment of | 25 | | taxes for the 2012 assessment year and (ii) as soon as possible | 26 | | after the effective date of this amendatory Act of the 98th |
| | | HB0156 Engrossed | - 12 - | LRB100 03826 HLH 13831 b |
|
| 1 | | General Assembly, publish notice of the amnesty period in a | 2 | | newspaper of general circulation in the county. Notices shall | 3 | | include information on the amnesty period, its purpose, and the | 4 | | method by which to make payment. | 5 | | Taxpayers who are a party to any criminal investigation or | 6 | | to any civil or criminal litigation that is pending in any | 7 | | circuit court or appellate court, or in the Supreme Court of | 8 | | this State, for nonpayment, delinquency, or fraud in relation | 9 | | to any property tax imposed by any taxing district located in | 10 | | the State on the effective date of this amendatory Act of the | 11 | | 98th General Assembly may not take advantage of the amnesty | 12 | | period. | 13 | | A taxpayer who has claimed 3 or more homestead exemptions | 14 | | in error shall not be eligible for the amnesty period | 15 | | established under this subsection.
| 16 | | (Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14; | 17 | | 98-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff. | 18 | | 7-27-15; 99-851, eff. 8-19-16.) | 19 | | (35 ILCS 200/15-169) | 20 | | Sec. 15-169. Homestead exemption for veterans with | 21 | | disabilities and veterans who are 75 years of age or older . | 22 | | (a) Beginning with taxable year 2007, an annual homestead | 23 | | exemption, limited to the amounts set forth in subsections (b) , | 24 | | and (b-3), and (b-4) is granted for property that is used as a | 25 | | qualified residence by a veteran with a disability or, |
| | | HB0156 Engrossed | - 13 - | LRB100 03826 HLH 13831 b |
|
| 1 | | beginning in taxable year 2017, a veteran who is 75 years of | 2 | | age or older . | 3 | | (b) For taxable years prior to 2015, the amount of the | 4 | | exemption under this Section is as follows: | 5 | | (1) for veterans with a service-connected disability | 6 | | of at least (i) 75% for exemptions granted in taxable years | 7 | | 2007 through 2009 and (ii) 70% for exemptions granted in | 8 | | taxable year 2010 and each taxable year thereafter, as | 9 | | certified by the United States Department of Veterans | 10 | | Affairs, the annual exemption is $5,000; and | 11 | | (2) for veterans with a service-connected disability | 12 | | of at least 50%, but less than (i) 75% for exemptions | 13 | | granted in taxable years 2007 through 2009 and (ii) 70% for | 14 | | exemptions granted in taxable year 2010 and each taxable | 15 | | year thereafter, as certified by the United States | 16 | | Department of Veterans Affairs, the annual exemption is | 17 | | $2,500. | 18 | | (b-3) For taxable years 2015 and 2016 thereafter : | 19 | | (1) if the veteran has a service connected disability | 20 | | of 30% or more but less than 50%, as certified by the | 21 | | United States Department of Veterans Affairs, then the | 22 | | annual exemption is $2,500; | 23 | | (2) if the veteran has a service connected disability | 24 | | of 50% or more but less than 70%, as certified by the | 25 | | United States Department of Veterans Affairs, then the | 26 | | annual exemption is $5,000; and |
| | | HB0156 Engrossed | - 14 - | LRB100 03826 HLH 13831 b |
|
| 1 | | (3) if the veteran has a service connected disability | 2 | | of 70% or more, as certified by the United States | 3 | | Department of Veterans Affairs, then the property is exempt | 4 | | from taxation under this Code. | 5 | | (b-4) For taxable years 2017 and thereafter: | 6 | | (1) if the veteran has a service connected disability | 7 | | of 20% or more but less than 50%, as certified by the | 8 | | United States Department of Veterans Affairs or the United | 9 | | States Department of Defense, then the annual exemption is | 10 | | $2,500; | 11 | | (2) if the veteran has a service connected disability | 12 | | of 50% or more but less than 70%, as certified by the | 13 | | United States Department of Veterans Affairs or the United | 14 | | States Department of Defense, then the annual exemption is | 15 | | $5,000; | 16 | | (3) if the veteran has a service connected disability | 17 | | of 70% or more, as certified by the United States | 18 | | Department of Veterans Affairs or the United States | 19 | | Department of Defense, then the property is exempt from | 20 | | taxation under this Code; and | 21 | | (4) if the veteran does not qualify under paragraphs | 22 | | (1) through (3) of this subsection (b-4), but the veteran | 23 | | is 75 years of age or older during the taxable year, then | 24 | | $2,500. | 25 | | (b-5) If a homestead exemption is granted under this | 26 | | Section and the person awarded the exemption subsequently |
| | | HB0156 Engrossed | - 15 - | LRB100 03826 HLH 13831 b |
|
| 1 | | becomes a resident of a facility licensed under the Nursing | 2 | | Home Care Act or a facility operated by the United States | 3 | | Department of Veterans Affairs, then the exemption shall | 4 | | continue (i) so long as the residence continues to be occupied | 5 | | by the qualifying person's spouse or (ii) if the residence | 6 | | remains unoccupied but is still owned by the person who | 7 | | qualified for the homestead exemption. | 8 | | (c) The tax exemption under this Section carries over to | 9 | | the benefit of the veteran's
surviving spouse as long as the | 10 | | spouse holds the legal or
beneficial title to the homestead, | 11 | | permanently resides
thereon, and does not remarry. If the | 12 | | surviving spouse sells
the property, an exemption not to exceed | 13 | | the amount granted
from the most recent ad valorem tax roll may | 14 | | be transferred to
his or her new residence as long as it is | 15 | | used as his or her
primary residence and he or she does not | 16 | | remarry. | 17 | | As used in this subsection (c): | 18 | | (1) for taxable years prior to 2015, "surviving spouse" | 19 | | means the surviving spouse of a veteran who obtained an | 20 | | exemption under this Section prior to his or her death; | 21 | | (2) for taxable year 2015 and 2016, "surviving spouse" | 22 | | means (i) the surviving spouse of a veteran who obtained an | 23 | | exemption under this Section prior to his or her death and | 24 | | (ii) the surviving spouse of a veteran who was killed in | 25 | | the line of duty; and | 26 | | (3) for taxable year 2017 and thereafter, "surviving |
| | | HB0156 Engrossed | - 16 - | LRB100 03826 HLH 13831 b |
|
| 1 | | spouse" means (i) the surviving spouse of a veteran who | 2 | | qualified for the exemption under this Section prior to his | 3 | | or her death, (ii) the surviving spouse of a veteran who | 4 | | was killed in the line of duty, and (iii) the surviving | 5 | | spouse of a veteran who did not obtain an exemption under | 6 | | this Section before death, but who applied for a | 7 | | service-connected disability certification from the United | 8 | | States Department of Veterans Affairs or the United States | 9 | | Department of Defense no earlier than January 1, 2007 and | 10 | | would have qualified for the exemption under this Section | 11 | | in the current taxable year if he or she had survived. | 12 | | (c-1) Beginning with taxable year 2015, nothing in this | 13 | | Section shall require the veteran to have qualified for or | 14 | | obtained the exemption before death if the veteran was killed | 15 | | in the line of duty. | 16 | | (d) The exemption under this Section applies for taxable | 17 | | year 2007 and thereafter. A taxpayer who claims an exemption | 18 | | under Section 15-165 or 15-168 may not claim an exemption under | 19 | | this Section. | 20 | | (e) Each taxpayer who has been granted an exemption under | 21 | | this Section must reapply on an annual basis. Application must | 22 | | be made during the application period
in effect for the county | 23 | | of his or her residence. The assessor
or chief county | 24 | | assessment officer may determine the
eligibility of | 25 | | residential property to receive the homestead
exemption | 26 | | provided by this Section by application, visual
inspection, |
| | | HB0156 Engrossed | - 17 - | LRB100 03826 HLH 13831 b |
|
| 1 | | questionnaire, or other reasonable methods. The
determination | 2 | | must be made in accordance with guidelines
established by the | 3 | | Department. | 4 | | (f) For the purposes of this Section: | 5 | | "Qualified residence" means real
property, but less any | 6 | | portion of that property that is used for
commercial purposes, | 7 | | with an equalized assessed value of less than $250,000 that is | 8 | | the primary residence of a veteran with a disability or, | 9 | | beginning in taxable year 2017, a veteran who is 75 years of | 10 | | age or older . Property rented for more than 6 months is
| 11 | | presumed to be used for commercial purposes. | 12 | | "Veteran" means an Illinois resident who has served as a
| 13 | | member of the United States Armed Forces on active duty or
| 14 | | State active duty, a member of the Illinois National Guard, or
| 15 | | a member of the United States Reserve Forces and who has | 16 | | received an honorable discharge. | 17 | | (Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15; | 18 | | 99-375, eff. 8-17-15; 99-642, eff. 7-28-16.) | 19 | | (35 ILCS 200/15-170) | 20 | | Sec. 15-170. Senior Citizens Homestead Exemption. An | 21 | | annual homestead
exemption limited, except as described here | 22 | | with relation to cooperatives or
life care facilities, to a
| 23 | | maximum reduction set forth below from the property's value, as | 24 | | equalized or
assessed by the Department, is granted for | 25 | | property that is occupied as a
residence by a person 65 years |
| | | HB0156 Engrossed | - 18 - | LRB100 03826 HLH 13831 b |
|
| 1 | | of age or older who is liable for paying real
estate taxes on | 2 | | the property and is an owner of record of the property or has a
| 3 | | legal or equitable interest therein as evidenced by a written | 4 | | instrument,
except for a leasehold interest, other than a | 5 | | leasehold interest of land on
which a single family residence | 6 | | is located, which is occupied as a residence by
a person 65 | 7 | | years or older who has an ownership interest therein, legal,
| 8 | | equitable or as a lessee, and on which he or she is liable for | 9 | | the payment
of property taxes. Before taxable year 2004, the | 10 | | maximum reduction shall be $2,500 in counties with
3,000,000 or | 11 | | more inhabitants and $2,000 in all other counties. For taxable | 12 | | years 2004 through 2005, the maximum reduction shall be $3,000 | 13 | | in all counties. For taxable years 2006 and 2007, the maximum | 14 | | reduction shall be $3,500. For taxable years 2008 through 2011, | 15 | | the maximum reduction is $4,000 in all counties.
For taxable | 16 | | year 2012, the maximum reduction is $5,000 in counties with
| 17 | | 3,000,000 or more inhabitants and $4,000 in all other counties. | 18 | | For taxable years 2013 through 2016 and thereafter , the maximum | 19 | | reduction is $5,000 in all counties. For taxable years 2017 and | 20 | | thereafter, the maximum reduction is $6,000 in all counties. | 21 | | For land
improved with an apartment building owned and | 22 | | operated as a cooperative, the maximum reduction from the value | 23 | | of the property, as
equalized
by the Department, shall be | 24 | | multiplied by the number of apartments or units
occupied by a | 25 | | person 65 years of age or older who is liable, by contract with
| 26 | | the owner or owners of record, for paying property taxes on the |
| | | HB0156 Engrossed | - 19 - | LRB100 03826 HLH 13831 b |
|
| 1 | | property and
is an owner of record of a legal or equitable | 2 | | interest in the cooperative
apartment building, other than a | 3 | | leasehold interest. For land improved with
a life care | 4 | | facility, the maximum reduction from the value of the property, | 5 | | as
equalized by the Department, shall be multiplied by the | 6 | | number of apartments or
units occupied by persons 65 years of | 7 | | age or older, irrespective of any legal,
equitable, or | 8 | | leasehold interest in the facility, who are liable, under a
| 9 | | contract with the owner or owners of record of the facility, | 10 | | for paying
property taxes on the property. In a
cooperative or | 11 | | a life care facility where a
homestead exemption has been | 12 | | granted, the cooperative association or the
management firm of | 13 | | the cooperative or facility shall credit the savings
resulting | 14 | | from that exemption only to
the apportioned tax liability of | 15 | | the owner or resident who qualified for
the exemption.
Any | 16 | | person who willfully refuses to so credit the savings shall be | 17 | | guilty of a
Class B misdemeanor. Under this Section and | 18 | | Sections 15-175, 15-176, and 15-177, "life care
facility" means | 19 | | a facility, as defined in Section 2 of the Life Care Facilities
| 20 | | Act, with which the applicant for the homestead exemption has a | 21 | | life care
contract as defined in that Act. | 22 | | When a homestead exemption has been granted under this | 23 | | Section and the person
qualifying subsequently becomes a | 24 | | resident of a facility licensed under the Assisted Living and | 25 | | Shared Housing Act, the Nursing Home Care Act, the Specialized | 26 | | Mental Health Rehabilitation Act of 2013, the ID/DD Community |
| | | HB0156 Engrossed | - 20 - | LRB100 03826 HLH 13831 b |
|
| 1 | | Care Act, or the MC/DD Act, the exemption shall continue so | 2 | | long as the residence
continues to be occupied by the | 3 | | qualifying person's spouse if the spouse is 65
years of age or | 4 | | older, or if the residence remains unoccupied but is still
| 5 | | owned by the person qualified for the homestead exemption. | 6 | | A person who will be 65 years of age
during the current | 7 | | assessment year
shall
be eligible to apply for the homestead | 8 | | exemption during that assessment
year.
Application shall be | 9 | | made during the application period in effect for the
county of | 10 | | his residence. | 11 | | Beginning with assessment year 2003, for taxes payable in | 12 | | 2004,
property
that is first occupied as a residence after | 13 | | January 1 of any assessment year by
a person who is eligible | 14 | | for the senior citizens homestead exemption under this
Section | 15 | | must be granted a pro-rata exemption for the assessment year. | 16 | | The
amount of the pro-rata exemption is the exemption
allowed | 17 | | in the county under this Section divided by 365 and multiplied | 18 | | by the
number of days during the assessment year the property | 19 | | is occupied as a
residence by a
person eligible for the | 20 | | exemption under this Section. The chief county
assessment | 21 | | officer must adopt reasonable procedures to establish | 22 | | eligibility
for this pro-rata exemption. | 23 | | The assessor or chief county assessment officer may | 24 | | determine the eligibility
of a life care facility to receive | 25 | | the benefits provided by this Section, by
affidavit, | 26 | | application, visual inspection, questionnaire or other |
| | | HB0156 Engrossed | - 21 - | LRB100 03826 HLH 13831 b |
|
| 1 | | reasonable
methods in order to insure that the tax savings | 2 | | resulting from the exemption
are credited by the management | 3 | | firm to the apportioned tax liability of each
qualifying | 4 | | resident. The assessor may request reasonable proof that the
| 5 | | management firm has so credited the exemption. | 6 | | The chief county assessment officer of each county with | 7 | | less than 3,000,000
inhabitants shall provide to each person | 8 | | allowed a homestead exemption under
this Section a form to | 9 | | designate any other person to receive a
duplicate of any notice | 10 | | of delinquency in the payment of taxes assessed and
levied | 11 | | under this Code on the property of the person receiving the | 12 | | exemption.
The duplicate notice shall be in addition to the | 13 | | notice required to be
provided to the person receiving the | 14 | | exemption, and shall be given in the
manner required by this | 15 | | Code. The person filing the request for the duplicate
notice | 16 | | shall pay a fee of $5 to cover administrative costs to the | 17 | | supervisor of
assessments, who shall then file the executed | 18 | | designation with the county
collector. Notwithstanding any | 19 | | other provision of this Code to the contrary,
the filing of | 20 | | such an executed designation requires the county collector to
| 21 | | provide duplicate notices as indicated by the designation. A | 22 | | designation may
be rescinded by the person who executed such | 23 | | designation at any time, in the
manner and form required by the | 24 | | chief county assessment officer. | 25 | | The assessor or chief county assessment officer may | 26 | | determine the
eligibility of residential property to receive |
| | | HB0156 Engrossed | - 22 - | LRB100 03826 HLH 13831 b |
|
| 1 | | the homestead exemption provided
by this Section by | 2 | | application, visual inspection, questionnaire or other
| 3 | | reasonable methods. The determination shall be made in | 4 | | accordance with
guidelines established by the Department. | 5 | | In counties with 3,000,000 or more inhabitants, beginning | 6 | | in taxable year 2010, each taxpayer who has been granted an | 7 | | exemption under this Section must reapply on an annual basis. | 8 | | The chief county assessment officer shall mail the application | 9 | | to the taxpayer. In counties with less than 3,000,000 | 10 | | inhabitants, the county board may by
resolution provide that if | 11 | | a person has been granted a homestead exemption
under this | 12 | | Section, the person qualifying need not reapply for the | 13 | | exemption. | 14 | | In counties with less than 3,000,000 inhabitants, if the | 15 | | assessor or chief
county assessment officer requires annual | 16 | | application for verification of
eligibility for an exemption | 17 | | once granted under this Section, the application
shall be | 18 | | mailed to the taxpayer. | 19 | | The assessor or chief county assessment officer shall | 20 | | notify each person
who qualifies for an exemption under this | 21 | | Section that the person may also
qualify for deferral of real | 22 | | estate taxes under the Senior Citizens Real Estate
Tax Deferral | 23 | | Act. The notice shall set forth the qualifications needed for
| 24 | | deferral of real estate taxes, the address and telephone number | 25 | | of
county collector, and a
statement that applications for | 26 | | deferral of real estate taxes may be obtained
from the county |
| | | HB0156 Engrossed | - 23 - | LRB100 03826 HLH 13831 b |
|
| 1 | | collector. | 2 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 3 | | no
reimbursement by the State is required for the | 4 | | implementation of any mandate
created by this Section. | 5 | | (Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756, | 6 | | eff. 7-16-14; 99-180, eff. 7-29-15.) | 7 | | (35 ILCS 200/15-172.5 new) | 8 | | Sec. 15-172.5. Assessment Freeze Homestead Exemption for | 9 | | persons receiving Supplemental Security Income. | 10 | | (a) This Section may be cited as the Assessment Freeze | 11 | | Homestead Exemption for persons receiving Supplemental | 12 | | Security Income. | 13 | | (b) As used in this Section: | 14 | | "Applicant" means an individual who has filed an | 15 | | application under this Section. | 16 | | "Base amount" means the base year equalized assessed value | 17 | | of the residence plus the first year's equalized assessed value | 18 | | of any added improvements which increased the assessed value of | 19 | | the residence after the base year. | 20 | | "Base year" means the taxable year prior to the taxable | 21 | | year for which the applicant first qualifies and applies for | 22 | | the exemption, provided that, in the prior taxable year, the | 23 | | property was improved with a permanent structure that was | 24 | | occupied as a residence by the applicant who was liable for | 25 | | paying real property taxes on the property and who was either |
| | | HB0156 Engrossed | - 24 - | LRB100 03826 HLH 13831 b |
|
| 1 | | (i) an owner of record of the property or had legal or | 2 | | equitable interest in the property as evidenced by a written | 3 | | instrument or (ii) had a legal or equitable interest as a | 4 | | lessee in the parcel of property that was single family | 5 | | residence. | 6 | | "Chief County Assessment Officer" means the County | 7 | | Assessor or Supervisor of Assessments of the county in which | 8 | | the property is located. | 9 | | "Equalized assessed value" means the assessed value of the | 10 | | property as equalized by the Department of Revenue. | 11 | | "Household" means the applicant, the spouse of the | 12 | | applicant, and all persons using the residence of the applicant | 13 | | as their principal place of residence. | 14 | | "Household income" means the combined income of the members | 15 | | of a household for the calendar year preceding the taxable | 16 | | year. | 17 | | "Income" has the same meaning as provided in Section 3.07 | 18 | | of the Senior Citizens and Persons with Disabilities Property | 19 | | Tax Relief Act, but does not include veteran's benefits. | 20 | | "Internal Revenue Code of 1986" means the United States | 21 | | Internal Revenue Code of 1986 or any successor law or laws | 22 | | relating to federal income taxes in effect for the year | 23 | | preceding the taxable year. | 24 | | "Life care facility that qualifies as a cooperative" means | 25 | | a facility as defined in Section 2 of the Life Care Facilities | 26 | | Act. |
| | | HB0156 Engrossed | - 25 - | LRB100 03826 HLH 13831 b |
|
| 1 | | "Maximum income limitation" means $55,000. | 2 | | "Residence" means the principal dwelling place and | 3 | | appurtenant structures used for residential purposes in this | 4 | | State occupied on January 1 of the taxable year by a household | 5 | | and so much of the surrounding land, constituting the parcel | 6 | | upon which the dwelling place is situated, as is used for | 7 | | residential purposes. If the chief county assessment officer | 8 | | has established a specific legal description for a portion of | 9 | | property constituting the residence, then that portion of | 10 | | property shall be deemed the residence for the purposes of this | 11 | | Section. | 12 | | "Taxable year" means the calendar year during which ad | 13 | | valorem property taxes payable in the next succeeding year are | 14 | | levied. | 15 | | (c) Beginning in taxable year 2017, an assessment freeze | 16 | | homestead exemption is granted for real property that is | 17 | | improved with a permanent structure that is occupied as a | 18 | | residence by an applicant who (i) receives federal Supplemental | 19 | | Security Income during the taxable year, (ii) has a household | 20 | | income that does not exceed the maximum income limitation, | 21 | | (iii) is liable for paying real property taxes on the property, | 22 | | and (iv) is an owner of record of the property or has a legal or | 23 | | equitable interest in the property as evidenced by a written | 24 | | instrument. This homestead exemption shall also apply to a | 25 | | leasehold interest in a parcel of property improved with a | 26 | | permanent structure that is a single family residence that is |
| | | HB0156 Engrossed | - 26 - | LRB100 03826 HLH 13831 b |
|
| 1 | | occupied as a residence by a person who (i) receives federal | 2 | | Supplemental Security Income during the taxable year, (ii) has | 3 | | a household income that does not exceed the maximum income | 4 | | limitation, (iii) has a legal or equitable ownership interest | 5 | | in the property as lessee, and (iv) is liable for the payment | 6 | | of real property taxes on that property. | 7 | | The amount of the exemption is the equalized assessed value | 8 | | of the residence in the taxable year for which application is | 9 | | made minus the base amount. | 10 | | When the applicant is a surviving spouse of an applicant | 11 | | for a prior year for the same residence for which an exemption | 12 | | under this Section has been granted, the base year and base | 13 | | amount for that residence are the same as for the applicant for | 14 | | the prior year. | 15 | | Each year at the time the assessment books are certified to | 16 | | the County Clerk, the Board of Review or Board of Appeals shall | 17 | | give to the County Clerk a list of the assessed values of | 18 | | improvements on each parcel qualifying for this exemption that | 19 | | were added after the base year for this parcel and that | 20 | | increased the assessed value of the property. | 21 | | In the case of land improved with an apartment building | 22 | | owned and operated as a cooperative or a building that is a | 23 | | life care facility that qualifies as a cooperative, the maximum | 24 | | reduction from the equalized assessed value of the property is | 25 | | limited to the sum of the reductions calculated for each unit | 26 | | occupied as a residence by a person or persons (i) who receive |
| | | HB0156 Engrossed | - 27 - | LRB100 03826 HLH 13831 b |
|
| 1 | | federal Supplemental Security Income during the taxable year, | 2 | | (ii) with a household income that does not exceed the maximum | 3 | | income limitation, (iii) who are liable, by contract with the | 4 | | owner or owners of record, for paying real property taxes on | 5 | | the property, and (iv) who is an owner of record of a legal or | 6 | | equitable interest in the cooperative apartment building, | 7 | | other than a leasehold interest. In the instance of a | 8 | | cooperative where a homestead exemption has been granted under | 9 | | this Section, the cooperative association or its management | 10 | | firm shall credit the savings resulting from that exemption | 11 | | only to the apportioned tax liability of the owner who | 12 | | qualified for the exemption. Any person who willfully refuses | 13 | | to credit that savings to an owner who qualifies for the | 14 | | exemption is guilty of a Class B misdemeanor. | 15 | | When a homestead exemption has been granted under this | 16 | | Section and an applicant then becomes a resident of a facility | 17 | | licensed under the Assisted Living and Shared Housing Act, the | 18 | | Nursing Home Care Act, the Specialized Mental Health | 19 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 20 | | the MC/DD Act, the exemption shall be granted in subsequent | 21 | | years so long as the residence (i) continues to be occupied by | 22 | | the qualified applicant's spouse or (ii) if remaining | 23 | | unoccupied, is still owned by the qualified applicant for the | 24 | | homestead exemption. | 25 | | When an individual dies who would have qualified for an | 26 | | exemption under this Section, and the surviving spouse does not |
| | | HB0156 Engrossed | - 28 - | LRB100 03826 HLH 13831 b |
|
| 1 | | independently qualify for this exemption because he or she does | 2 | | not receive Supplemental Security Income, the exemption under | 3 | | this Section shall be granted to the surviving spouse for the | 4 | | taxable year preceding and the taxable year of the death, | 5 | | provided that the surviving spouse meets all other | 6 | | qualifications for the granting of this exemption for those | 7 | | years. | 8 | | When married persons maintain separate residences, the | 9 | | exemption provided for in this Section may be claimed by only | 10 | | one of such persons and for only one residence. | 11 | | In counties having 3,000,000 or more inhabitants, to | 12 | | receive the exemption, a person may submit an application to | 13 | | the chief county assessment officer of the county in which the | 14 | | property is located during such period as may be specified by | 15 | | the chief county assessment officer. The chief county | 16 | | assessment officer in counties of 3,000,000 or more inhabitants | 17 | | shall annually give notice of the application period by mail or | 18 | | by publication. In counties having less than 3,000,000 | 19 | | inhabitants, to receive the exemption, a person shall submit an | 20 | | application by July 1 of each taxable year to the chief county | 21 | | assessment officer of the county in which the property is | 22 | | located. A county having less than 3,000,000 inhabitants may, | 23 | | by ordinance, establish a date for submission of applications | 24 | | that is different than July 1. The applicant shall submit with | 25 | | the application an affidavit verifying the applicant's | 26 | | qualifications for the exemption under this Section. The |
| | | HB0156 Engrossed | - 29 - | LRB100 03826 HLH 13831 b |
|
| 1 | | Department shall establish, by rule, a method for verifying the | 2 | | accuracy of such affidavits, and the chief county assessment | 3 | | officer may conduct audits of any taxpayer claiming an | 4 | | exemption under this Section to verify that the taxpayer is | 5 | | eligible to receive the exemption. Each application shall | 6 | | contain or be verified by a written declaration that it is made | 7 | | under the penalties of perjury. A taxpayer's signing a | 8 | | fraudulent application under this Act is perjury, as defined in | 9 | | Section 32-2 of the Criminal Code of 2012. The applications | 10 | | shall be clearly marked as applications for the Assessment | 11 | | Freeze Homestead Exemption for Persons Receiving Supplemental | 12 | | Security Income and must contain a notice that any taxpayer who | 13 | | receives the exemption is subject to an audit by the chief | 14 | | county assessment officer. | 15 | | If an applicant fails to file the application required by | 16 | | this Section in a timely manner and this failure to file is due | 17 | | to a mental or physical condition sufficiently severe so as to | 18 | | render the applicant incapable of filing the application in a | 19 | | timely manner, the chief county assessment officer may extend | 20 | | the filing deadline for a period of 30 days after the applicant | 21 | | regains the capability to file the application, but in no case | 22 | | may the filing deadline be extended beyond 3 months of the | 23 | | original filing deadline. In order to receive the extension | 24 | | provided in this paragraph, the applicant shall provide the | 25 | | chief county assessment officer with a signed statement from | 26 | | the applicant's physician, advanced practice nurse, or |
| | | HB0156 Engrossed | - 30 - | LRB100 03826 HLH 13831 b |
|
| 1 | | physician assistant stating the nature and extent of the | 2 | | condition, that, in the physician's, advanced practice | 3 | | nurse's, or physician assistant's opinion, the condition was so | 4 | | severe that it rendered the applicant incapable of filing the | 5 | | application in a timely manner, and the date on which the | 6 | | applicant regained the capability to file the application. | 7 | | The chief county assessment officer may determine the | 8 | | eligibility of a life care facility that qualifies as a | 9 | | cooperative to receive the benefits provided by this Section by | 10 | | use of an affidavit, application, visual inspection, | 11 | | questionnaire, or other reasonable method in order to insure | 12 | | that the tax savings resulting from the exemption are credited | 13 | | by the management firm to the apportioned tax liability of each | 14 | | qualifying resident. The chief county assessment officer may | 15 | | request reasonable proof that the management firm has so | 16 | | credited that exemption. | 17 | | Except as provided in this Section, all information | 18 | | received by the chief county assessment officer or the | 19 | | Department from applications filed under this Section, or from | 20 | | any investigation conducted under the provisions of this | 21 | | Section, shall be confidential, except for official purposes or | 22 | | pursuant to official procedures for collection of any State or | 23 | | local tax or enforcement of any civil or criminal penalty or | 24 | | sanction imposed by this Act or by any statute or ordinance | 25 | | imposing a State or local tax. Any person who divulges any such | 26 | | information in any manner, except in accordance with a proper |
| | | HB0156 Engrossed | - 31 - | LRB100 03826 HLH 13831 b |
|
| 1 | | judicial order, is guilty of a Class A misdemeanor. | 2 | | Nothing contained in this Section shall prevent the | 3 | | Director or chief county assessment officer from publishing or | 4 | | making available reasonable statistics concerning the | 5 | | operation of the exemption contained in this Section in which | 6 | | the contents of claims are grouped into aggregates in such a | 7 | | way that information contained in any individual claim shall | 8 | | not be disclosed. | 9 | | (d) Each Chief County Assessment Officer shall annually | 10 | | publish a notice of availability of the exemption provided | 11 | | under this Section. The notice shall be published at least 60 | 12 | | days but no more than 75 days prior to the date on which the | 13 | | application must be submitted to the Chief County Assessment | 14 | | Officer of the county in which the property is located. The | 15 | | notice shall appear in a newspaper of general circulation in | 16 | | the county. | 17 | | Notwithstanding any other provision of law, no person who | 18 | | receives an exemption under this Section may receive an | 19 | | exemption under Section 15-172 (senior citizens assessment | 20 | | freeze homestead exemption) or Section 15-177 (long-time | 21 | | occupant homestead exemption) for the same tax year. | 22 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 23 | | no reimbursement by the State is required for the | 24 | | implementation of any mandate created by this Section.
| 25 | | (35 ILCS 200/15-175)
|
| | | HB0156 Engrossed | - 32 - | LRB100 03826 HLH 13831 b |
|
| 1 | | Sec. 15-175. General homestead exemption. | 2 | | (a) Except as provided in Sections 15-176 and 15-177, | 3 | | homestead
property is
entitled to an annual homestead exemption | 4 | | limited, except as described here
with relation to | 5 | | cooperatives, to a reduction in the equalized assessed value
of | 6 | | homestead property equal to the increase in equalized assessed | 7 | | value for the
current assessment year above the equalized | 8 | | assessed value of the property for
1977, up to the maximum | 9 | | reduction set forth below. If however, the 1977
equalized | 10 | | assessed value upon which taxes were paid is subsequently | 11 | | determined
by local assessing officials, the Property Tax | 12 | | Appeal Board, or a court to have
been excessive, the equalized | 13 | | assessed value which should have been placed on
the property | 14 | | for 1977 shall be used to determine the amount of the | 15 | | exemption.
| 16 | | (b) Except as provided in Section 15-176, the maximum | 17 | | reduction before taxable year 2004 shall be
$4,500 in counties | 18 | | with 3,000,000 or more
inhabitants
and $3,500 in all other | 19 | | counties. Except as provided in Sections 15-176 and 15-177, for | 20 | | taxable years 2004 through 2007, the maximum reduction shall be | 21 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, | 22 | | and, for taxable years 2009 through 2011, the maximum reduction | 23 | | is $6,000 in all counties. For taxable years 2012 through 2016 | 24 | | and thereafter , the maximum reduction is $7,000 in counties | 25 | | with 3,000,000 or more
inhabitants
and $6,000 in all other | 26 | | counties. For taxable years 2017 and thereafter, the maximum |
| | | HB0156 Engrossed | - 33 - | LRB100 03826 HLH 13831 b |
|
| 1 | | reduction is $8,000 in all counties. If a county has elected to | 2 | | subject itself to the provisions of Section 15-176 as provided | 3 | | in subsection (k) of that Section, then, for the first taxable | 4 | | year only after the provisions of Section 15-176 no longer | 5 | | apply, for owners who, for the taxable year, have not been | 6 | | granted a senior citizens assessment freeze homestead | 7 | | exemption under Section 15-172 or a long-time occupant | 8 | | homestead exemption under Section 15-177, there shall be an | 9 | | additional exemption of $5,000 for owners with a household | 10 | | income of $30,000 or less.
| 11 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 12 | | based on the most
recent assessment, the equalized assessed | 13 | | value of
the homestead property for the current assessment year | 14 | | is greater than the
equalized assessed value of the property | 15 | | for 1977, the owner of the property
shall automatically receive | 16 | | the exemption granted under this Section in an
amount equal to | 17 | | the increase over the 1977 assessment up to the maximum
| 18 | | reduction set forth in this Section.
| 19 | | (d) If in any assessment year beginning with the 2000 | 20 | | assessment year,
homestead property has a pro-rata valuation | 21 | | under
Section 9-180 resulting in an increase in the assessed | 22 | | valuation, a reduction
in equalized assessed valuation equal to | 23 | | the increase in equalized assessed
value of the property for | 24 | | the year of the pro-rata valuation above the
equalized assessed | 25 | | value of the property for 1977 shall be applied to the
property | 26 | | on a proportionate basis for the period the property qualified |
| | | HB0156 Engrossed | - 34 - | LRB100 03826 HLH 13831 b |
|
| 1 | | as
homestead property during the assessment year. The maximum | 2 | | proportionate
homestead exemption shall not exceed the maximum | 3 | | homestead exemption allowed in
the county under this Section | 4 | | divided by 365 and multiplied by the number of
days the | 5 | | property qualified as homestead property.
| 6 | | (d-1) In counties with 3,000,000 or more inhabitants, where | 7 | | the chief county assessment officer provides a notice of | 8 | | discovery, if a property is not
occupied by its owner as a | 9 | | principal residence as of January 1 of the current tax year, | 10 | | then the property owner shall notify the chief county | 11 | | assessment officer of that fact on a form prescribed by the | 12 | | chief county assessment officer. That notice must be received | 13 | | by the chief county assessment officer on or before March 1 of | 14 | | the collection year. If mailed, the form shall be sent by | 15 | | certified mail, return receipt requested. If the form is | 16 | | provided in person, the chief county assessment officer shall | 17 | | provide a date stamped copy of the notice. Failure to provide | 18 | | timely notice pursuant to this subsection (d-1) shall result in | 19 | | the exemption being treated as an erroneous exemption. Upon | 20 | | timely receipt of the notice for the current tax year, no | 21 | | exemption shall be applied to the property for the current tax | 22 | | year. If the exemption is not removed upon timely receipt of | 23 | | the notice by the chief assessment officer, then the error is | 24 | | considered granted as a result of a clerical error or omission | 25 | | on the part of the chief county assessment officer as described | 26 | | in subsection (h) of Section 9-275, and the property owner |
| | | HB0156 Engrossed | - 35 - | LRB100 03826 HLH 13831 b |
|
| 1 | | shall not be liable for the payment of interest and penalties | 2 | | due to the erroneous exemption for the current tax year for | 3 | | which the notice was filed after the date that notice was | 4 | | timely received pursuant to this subsection. Notice provided | 5 | | under this subsection shall not constitute a defense or amnesty | 6 | | for prior year erroneous exemptions. | 7 | | For the purposes of this subsection (d-1): | 8 | | "Collection year" means the year in which the first and | 9 | | second installment of the current tax year is billed. | 10 | | "Current tax year" means the year prior to the collection | 11 | | year. | 12 | | (e) The chief county assessment officer may, when | 13 | | considering whether to grant a leasehold exemption under this | 14 | | Section, require the following conditions to be met: | 15 | | (1) that a notarized application for the exemption, | 16 | | signed by both the owner and the lessee of the property, | 17 | | must be submitted each year during the application period | 18 | | in effect for the county in which the property is located; | 19 | | (2) that a copy of the lease must be filed with the | 20 | | chief county assessment officer by the owner of the | 21 | | property at the time the notarized application is | 22 | | submitted; | 23 | | (3) that the lease must expressly state that the lessee | 24 | | is liable for the payment of property taxes; and | 25 | | (4) that the lease must include the following language | 26 | | in substantially the following form: |
| | | HB0156 Engrossed | - 36 - | LRB100 03826 HLH 13831 b |
|
| 1 | | "Lessee shall be liable for the payment of real | 2 | | estate taxes with respect to the residence in | 3 | | accordance with the terms and conditions of Section | 4 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). | 5 | | The permanent real estate index number for the premises | 6 | | is (insert number), and, according to the most recent | 7 | | property tax bill, the current amount of real estate | 8 | | taxes associated with the premises is (insert amount) | 9 | | per year. The parties agree that the monthly rent set | 10 | | forth above shall be increased or decreased pro rata | 11 | | (effective January 1 of each calendar year) to reflect | 12 | | any increase or decrease in real estate taxes. Lessee | 13 | | shall be deemed to be satisfying Lessee's liability for | 14 | | the above mentioned real estate taxes with the monthly | 15 | | rent payments as set forth above (or increased or | 16 | | decreased as set forth herein).". | 17 | | In addition, if there is a change in lessee, or if the | 18 | | lessee vacates the property, then the chief county assessment | 19 | | officer may require the owner of the property to notify the | 20 | | chief county assessment officer of that change. | 21 | | This subsection (e) does not apply to leasehold interests | 22 | | in property owned by a municipality. | 23 | | (f) "Homestead property" under this Section includes | 24 | | residential property that is
occupied by its owner or owners as | 25 | | his or their principal dwelling place, or
that is a leasehold | 26 | | interest on which a single family residence is situated,
which |
| | | HB0156 Engrossed | - 37 - | LRB100 03826 HLH 13831 b |
|
| 1 | | is occupied as a residence by a person who has an ownership | 2 | | interest
therein, legal or equitable or as a lessee, and on | 3 | | which the person is
liable for the payment of property taxes. | 4 | | For land improved with
an apartment building owned and operated | 5 | | as a cooperative or a building which
is a life care facility as | 6 | | defined in Section 15-170 and considered to
be a cooperative | 7 | | under Section 15-170, the maximum reduction from the equalized
| 8 | | assessed value shall be limited to the increase in the value | 9 | | above the
equalized assessed value of the property for 1977, up | 10 | | to
the maximum reduction set forth above, multiplied by the | 11 | | number of apartments
or units occupied by a person or persons | 12 | | who is liable, by contract with the
owner or owners of record, | 13 | | for paying property taxes on the property and is an
owner of | 14 | | record of a legal or equitable interest in the cooperative
| 15 | | apartment building, other than a leasehold interest. For | 16 | | purposes of this
Section, the term "life care facility" has the | 17 | | meaning stated in Section
15-170.
| 18 | | "Household", as used in this Section,
means the owner, the | 19 | | spouse of the owner, and all persons using
the
residence of the | 20 | | owner as their principal place of residence.
| 21 | | "Household income", as used in this Section,
means the | 22 | | combined income of the members of a household
for the calendar | 23 | | year preceding the taxable year.
| 24 | | "Income", as used in this Section,
has the same meaning as | 25 | | provided in Section 3.07 of the Senior
Citizens
and Persons | 26 | | with Disabilities Property Tax Relief Act,
except that
"income" |
| | | HB0156 Engrossed | - 38 - | LRB100 03826 HLH 13831 b |
|
| 1 | | does not include veteran's benefits.
| 2 | | (g) In a cooperative where a homestead exemption has been | 3 | | granted, the
cooperative association or its management firm | 4 | | shall credit the savings
resulting from that exemption only to | 5 | | the apportioned tax liability of the
owner who qualified for | 6 | | the exemption. Any person who willfully refuses to so
credit | 7 | | the savings shall be guilty of a Class B misdemeanor.
| 8 | | (h) Where married persons maintain and reside in separate | 9 | | residences qualifying
as homestead property, each residence | 10 | | shall receive 50% of the total reduction
in equalized assessed | 11 | | valuation provided by this Section.
| 12 | | (i) In all counties, the assessor
or chief county | 13 | | assessment officer may determine the
eligibility of | 14 | | residential property to receive the homestead exemption and the | 15 | | amount of the exemption by
application, visual inspection, | 16 | | questionnaire or other reasonable methods. The
determination | 17 | | shall be made in accordance with guidelines established by the
| 18 | | Department, provided that the taxpayer applying for an | 19 | | additional general exemption under this Section shall submit to | 20 | | the chief county assessment officer an application with an | 21 | | affidavit of the applicant's total household income, age, | 22 | | marital status (and, if married, the name and address of the | 23 | | applicant's spouse, if known), and principal dwelling place of | 24 | | members of the household on January 1 of the taxable year. The | 25 | | Department shall issue guidelines establishing a method for | 26 | | verifying the accuracy of the affidavits filed by applicants |
| | | HB0156 Engrossed | - 39 - | LRB100 03826 HLH 13831 b |
|
| 1 | | under this paragraph. The applications shall be clearly marked | 2 | | as applications for the Additional General Homestead | 3 | | Exemption.
| 4 | | (i-5) This subsection (i-5) applies to counties with | 5 | | 3,000,000 or more inhabitants. In the event of a sale of
| 6 | | homestead property, the homestead exemption shall remain in | 7 | | effect for the remainder of the assessment year of the sale. | 8 | | Upon receipt of a transfer declaration transmitted by the | 9 | | recorder pursuant to Section 31-30 of the Real Estate Transfer | 10 | | Tax Law for property receiving an exemption under this Section, | 11 | | the assessor shall mail a notice and forms to the new owner of | 12 | | the property providing information pertaining to the rules and | 13 | | applicable filing periods for applying or reapplying for | 14 | | homestead exemptions under this Code for which the property may | 15 | | be eligible. If the new owner fails to apply or reapply for a | 16 | | homestead exemption during the applicable filing period or the | 17 | | property no longer qualifies for an existing homestead | 18 | | exemption, the assessor shall cancel such exemption for any | 19 | | ensuing assessment year. | 20 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 21 | | the event of a sale
of
homestead property the homestead | 22 | | exemption shall remain in effect for the
remainder of the | 23 | | assessment year of the sale. The assessor or chief county
| 24 | | assessment officer may require the new
owner of the property to | 25 | | apply for the homestead exemption for the following
assessment | 26 | | year.
|
| | | HB0156 Engrossed | - 40 - | LRB100 03826 HLH 13831 b |
|
| 1 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 2 | | Act, no reimbursement by the State is required for the | 3 | | implementation of any mandate created by this Section.
| 4 | | (Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143, | 5 | | eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16; | 6 | | 99-851, eff. 8-19-16.)
| 7 | | (35 ILCS 200/15-178 new) | 8 | | Sec. 15-178. The statewide long-time occupant homestead | 9 | | exemption. | 10 | | (a) For taxable years 2017 and thereafter, homestead | 11 | | property that is occupied as a principal residence by a | 12 | | long-time occupant is entitled to an annual homestead exemption | 13 | | equal to a reduction in the property's equalized assessed value | 14 | | calculated as provided in subsection (b) of this Section. | 15 | | (b) The amount of the reduction shall be as follows: | 16 | | (1) if the taxpayer has occupied the property as his or | 17 | | her principal residence for not fewer than 8 but not more | 18 | | than 11 years as of January 1 of the taxable year, then the | 19 | | amount of the reduction shall be 25% of the amount of the | 20 | | general homestead exemption under Section 15-175 for the | 21 | | taxable year; | 22 | | (2) if the taxpayer has occupied the property as his or | 23 | | her principal residence for not fewer than 11 but not more | 24 | | than 16 years as of January 1 of the taxable year, then the | 25 | | amount of the reduction shall be 35% of the amount of the |
| | | HB0156 Engrossed | - 41 - | LRB100 03826 HLH 13831 b |
|
| 1 | | general homestead exemption under Section 15-175 for the | 2 | | taxable year; | 3 | | (3) if the taxpayer has occupied the property as his or | 4 | | her principal residence for not fewer than 16 but not more | 5 | | than 21 years as of January 1 of the taxable year, then the | 6 | | amount of the reduction shall be 45% of the amount of the | 7 | | general homestead exemption under Section 15-175 for the | 8 | | taxable year; and | 9 | | (4) if the taxpayer has occupied the property as his or | 10 | | her principal residence for 21 years or more as of January | 11 | | 1 of the taxable year, then the amount of the reduction | 12 | | shall be 60% of the amount of the general homestead | 13 | | exemption under Section 15-175 for the taxable year. | 14 | | (c) In the case of an apartment building owned and operated | 15 | | as a cooperative or a life care facility that contains | 16 | | residential units that qualify as homestead property of a | 17 | | long-time occupant under this Section, the maximum cumulative | 18 | | exemption amount attributed to the entire building or facility | 19 | | shall not exceed the sum of the exemptions calculated for each | 20 | | unit that is homestead property of a long-time occupant. The | 21 | | cooperative association, management firm, or other person or | 22 | | entity that manages or controls the cooperative apartment | 23 | | building or life care facility shall credit the exemption | 24 | | attributable to each residential unit only to the apportioned | 25 | | tax liability of the long-time occupant of that unit. Any | 26 | | person who willfully refuses to so credit the exemption is |
| | | HB0156 Engrossed | - 42 - | LRB100 03826 HLH 13831 b |
|
| 1 | | guilty of a Class B misdemeanor. | 2 | | (d) To receive the exemption, a person must submit an | 3 | | application to the county assessor during the period specified | 4 | | by the county assessor. | 5 | | Notwithstanding any other provision of law, no person who | 6 | | receives an exemption under this Section may receive an | 7 | | exemption under Section 15-177 (long-time occupant homestead | 8 | | exemption) for the same tax year. | 9 | | (e) As used in this Section: | 10 | | "Equalized assessed value" means the property's assessed | 11 | | value as equalized by the Department. | 12 | | "Homestead" or "homestead property" means residential | 13 | | property that, as of January 1 of the tax year, is owned and | 14 | | occupied by a long-time occupant as his or her principal | 15 | | dwelling place, or that is a leasehold interest on which a | 16 | | single family residence is situated, that is occupied as a | 17 | | residence by a long-time occupant who has a legal or equitable | 18 | | interest therein evidenced by a written instrument, as an owner | 19 | | or as a lessee, and on which the long-time occupant is liable | 20 | | for the payment of property taxes. Residential units in an | 21 | | apartment building owned and operated as a cooperative, or as a | 22 | | life care facility, which are occupied by persons who hold a | 23 | | legal or equitable interest in the cooperative apartment | 24 | | building or life care facility as owners or lessees, and who | 25 | | are liable by contract for the payment of property taxes, are | 26 | | included within this definition of homestead property. A |
| | | HB0156 Engrossed | - 43 - | LRB100 03826 HLH 13831 b |
|
| 1 | | homestead includes the dwelling place, appurtenant structures, | 2 | | and so much of the surrounding land constituting the parcel on | 3 | | which the dwelling place is situated as is used for residential | 4 | | purposes. If the assessor has established a specific legal | 5 | | description for a portion of property constituting the | 6 | | homestead, then the homestead is limited to the property within | 7 | | that description. | 8 | | "Long-time occupant" means an individual who (i) for at | 9 | | least 8 continuous years as of
January 1 of the taxable year, | 10 | | has occupied the same homestead property as a principal | 11 | | residence and domicile and (ii) has a household income of | 12 | | $100,000 or less. | 13 | | "Household income" has the meaning set forth under Section | 14 | | 15-172 of this Code. | 15 | | (f) Notwithstanding Sections 6 and 8 of the State Mandates | 16 | | Act, no reimbursement by the State is required for the | 17 | | implementation of any mandate created by this Section. | 18 | | Section 10. The Senior Citizens Real Estate Tax Deferral | 19 | | Act is amended by changing Section 3 as follows:
| 20 | | (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
| 21 | | Sec. 3.
A taxpayer may, on or before March 1 of each year,
| 22 | | apply to the county collector of the county where his | 23 | | qualifying
property is located, or to the official designated | 24 | | by a unit of local
government to collect special assessments on |
| | | HB0156 Engrossed | - 44 - | LRB100 03826 HLH 13831 b |
|
| 1 | | the qualifying property, as the
case may be, for a deferral of | 2 | | all or a part of real estate taxes payable
during that year for | 3 | | the preceding year in the case of real estate taxes
other than | 4 | | special assessments, or for a deferral of any installments | 5 | | payable
during that year in the case of special assessments, on | 6 | | all or part of his
qualifying property. The application shall | 7 | | be on a form prescribed by the
Department and furnished by the | 8 | | collector,
(a) showing that the applicant
will be 65 years of | 9 | | age or older by June 1 of the year for which a tax
deferral is | 10 | | claimed, (b) describing the property and verifying that the
| 11 | | property is qualifying property as defined in Section 2, (c) | 12 | | certifying
that the taxpayer has owned and occupied as his | 13 | | residence such
property or other qualifying property in the | 14 | | State for at least the last 3
years except for any periods | 15 | | during which the taxpayer may have temporarily
resided in a | 16 | | nursing or sheltered care home, and (d) specifying whether
the | 17 | | deferral is for all or a part of the taxes, and, if for a part, | 18 | | the amount
of deferral applied for. As to qualifying property | 19 | | not having a separate
assessed valuation, the taxpayer shall | 20 | | also file with the county collector a
written appraisal of the | 21 | | property prepared by a qualified real estate appraiser
together | 22 | | with a certificate signed by the appraiser stating that he has
| 23 | | personally examined the property and setting forth the value of | 24 | | the land and
the value of the buildings thereon occupied by the | 25 | | taxpayer as his residence.
| 26 | | The collector shall grant the tax deferral provided such |
| | | HB0156 Engrossed | - 45 - | LRB100 03826 HLH 13831 b |
|
| 1 | | deferral does not
exceed funds available in the Senior Citizens | 2 | | Real Estate Deferred Tax
Revolving Fund and provided that the | 3 | | owner or owners of such real property have
entered into a tax | 4 | | deferral and recovery agreement with the collector on behalf
of | 5 | | the county or other unit of local government, which agreement | 6 | | expressly
states:
| 7 | | (1) That the total amount of taxes deferred under this Act, | 8 | | plus
interest, for the year for which a tax deferral is claimed | 9 | | as well
as for those previous years for which taxes are not | 10 | | delinquent and
for which such deferral has been claimed may not | 11 | | exceed 80%
of the taxpayer's equity interest in the property | 12 | | for which taxes are
to be deferred and that, if the total | 13 | | deferred taxes plus interest equals
80% of the taxpayer's | 14 | | equity interest in the property, the taxpayer shall
thereafter | 15 | | pay the annual interest due on such deferred taxes plus | 16 | | interest
so that total deferred taxes plus interest will not | 17 | | exceed such 80% of the
taxpayer's equity interest in the | 18 | | property. For Effective as of the January 1, 2011 assessment | 19 | | year or tax year 2012 through assessment year 2016 and | 20 | | thereafter , the total amount of any such deferral shall not | 21 | | exceed $5,000 per taxpayer in each tax year. For the 2017 | 22 | | assessment year and thereafter, the total amount of any such | 23 | | deferral shall not exceed $6,000 per taxpayer in each tax year.
| 24 | | (2) That any real estate taxes deferred under this Act and | 25 | | any
interest accrued thereon at the rate of 6% per year are a | 26 | | lien on the real
estate and improvements thereon until paid. No |
| | | HB0156 Engrossed | - 46 - | LRB100 03826 HLH 13831 b |
|
| 1 | | sale or transfer of such
real property may be legally closed | 2 | | and recorded until the taxes
which would otherwise have been | 3 | | due on the property, plus accrued
interest, have been paid | 4 | | unless the collector certifies in
writing that an arrangement | 5 | | for prompt payment of the amount due
has been made with his | 6 | | office. The same shall apply if the
property is to be made the | 7 | | subject of a contract of sale.
| 8 | | (3) That upon the death of the taxpayer claiming the | 9 | | deferral
the heirs-at-law, assignees or legatees shall have | 10 | | first
priority to the real property upon which taxes have been | 11 | | deferred
by paying in full the total taxes which would | 12 | | otherwise have been due,
plus interest. However, if such | 13 | | heir-at-law, assignee, or legatee
is a surviving spouse, the | 14 | | tax deferred status of the
property shall be continued during | 15 | | the life of that surviving spouse
if the spouse is 55 years of | 16 | | age or older within 6 months of the
date of death of the | 17 | | taxpayer and enters into a tax deferral and
recovery agreement | 18 | | before the time when deferred taxes become due
under this | 19 | | Section. Any additional taxes deferred, plus interest,
on the | 20 | | real property under a tax deferral and recovery agreement
| 21 | | signed by a surviving spouse shall be added to the taxes and | 22 | | interest
which would otherwise have been due, and the payment | 23 | | of which has been
postponed during the life of such surviving | 24 | | spouse, in determining
the 80% equity requirement provided by | 25 | | this Section.
| 26 | | (4) That if the taxes due, plus interest, are not paid by |
| | | HB0156 Engrossed | - 47 - | LRB100 03826 HLH 13831 b |
|
| 1 | | the heir-at-law,
assignee or legatee or if payment is not | 2 | | postponed during the life of a
surviving spouse, the deferred | 3 | | taxes and interest shall be recovered from the
estate of the | 4 | | taxpayer within one year of the date of his death. In addition,
| 5 | | deferred real estate taxes and any interest accrued thereon are | 6 | | due within 90
days after any tax deferred property ceases to be | 7 | | qualifying property as
defined in Section 2.
| 8 | | If payment is not made when required by this Section, | 9 | | foreclosure proceedings
may be instituted under the Property | 10 | | Tax Code.
| 11 | | (5) That any joint owner has given written prior approval | 12 | | for such
agreement,
which written approval shall be made a part | 13 | | of such agreement.
| 14 | | (6) That a guardian for a person under legal disability | 15 | | appointed for a
taxpayer who otherwise qualifies under this Act | 16 | | may act for the taxpayer in
complying with this Act.
| 17 | | (7) That a taxpayer or his agent has provided to the | 18 | | satisfaction of the
collector, sufficient evidence that the | 19 | | qualifying property on which the taxes
are to be deferred is | 20 | | insured against fire or casualty loss for at least the
total | 21 | | amount of taxes which have been deferred.
| 22 | | If the taxes to be deferred are special assessments, the | 23 | | unit of local
government making the assessments shall forward a | 24 | | copy of the agreement
entered into pursuant to this Section and | 25 | | the bills for such assessments to
the county collector of the | 26 | | county in which the qualifying property is located.
|
| | | HB0156 Engrossed | - 48 - | LRB100 03826 HLH 13831 b |
|
| 1 | | (Source: P.A. 97-481, eff. 8-22-11.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
|
|