Full Text of SB3093 100th General Assembly
SB3093 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB3093 Introduced 2/15/2018, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Makes changes concerning the maximum reduction under the general homestead exemption for life care facilities. Provides that those changes are declarative of existing law.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-175 as follows:
| 6 | | (35 ILCS 200/15-175)
| 7 | | Sec. 15-175. General homestead exemption. | 8 | | (a) Except as provided in Sections 15-176 and 15-177, | 9 | | homestead
property is
entitled to an annual homestead exemption | 10 | | limited, except as described here
with relation to cooperatives | 11 | | or life care facilities , to a reduction in the equalized | 12 | | assessed value
of homestead property equal to the increase in | 13 | | equalized assessed value for the
current assessment year above | 14 | | the equalized assessed value of the property for
1977, up to | 15 | | the maximum reduction set forth below. If however, the 1977
| 16 | | equalized assessed value upon which taxes were paid is | 17 | | subsequently determined
by local assessing officials, the | 18 | | Property Tax Appeal Board, or a court to have
been excessive, | 19 | | the equalized assessed value which should have been placed on
| 20 | | the property for 1977 shall be used to determine the amount of | 21 | | the exemption.
| 22 | | (b) Except as provided in Section 15-176, the maximum | 23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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| 1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other | 2 | | counties. Except as provided in Sections 15-176 and 15-177, for | 3 | | taxable years 2004 through 2007, the maximum reduction shall be | 4 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, | 5 | | and, for taxable years 2009 through 2011, the maximum reduction | 6 | | is $6,000 in all counties. For taxable years 2012 through 2016, | 7 | | the maximum reduction is $7,000 in counties with 3,000,000 or | 8 | | more
inhabitants
and $6,000 in all other counties. For taxable | 9 | | years 2017 and thereafter, the maximum reduction is $10,000 in | 10 | | counties with 3,000,000 or more inhabitants and $6,000 in all | 11 | | other counties. If a county has elected to subject itself to | 12 | | the provisions of Section 15-176 as provided in subsection (k) | 13 | | of that Section, then, for the first taxable year only after | 14 | | the provisions of Section 15-176 no longer apply, for owners | 15 | | who, for the taxable year, have not been granted a senior | 16 | | citizens assessment freeze homestead exemption under Section | 17 | | 15-172 or a long-time occupant homestead exemption under | 18 | | Section 15-177, there shall be an additional exemption of | 19 | | $5,000 for owners with a household income of $30,000 or less.
| 20 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 21 | | based on the most
recent assessment, the equalized assessed | 22 | | value of
the homestead property for the current assessment year | 23 | | is greater than the
equalized assessed value of the property | 24 | | for 1977, the owner of the property
shall automatically receive | 25 | | the exemption granted under this Section in an
amount equal to | 26 | | the increase over the 1977 assessment up to the maximum
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| 1 | | reduction set forth in this Section.
| 2 | | (d) If in any assessment year beginning with the 2000 | 3 | | assessment year,
homestead property has a pro-rata valuation | 4 | | under
Section 9-180 resulting in an increase in the assessed | 5 | | valuation, a reduction
in equalized assessed valuation equal to | 6 | | the increase in equalized assessed
value of the property for | 7 | | the year of the pro-rata valuation above the
equalized assessed | 8 | | value of the property for 1977 shall be applied to the
property | 9 | | on a proportionate basis for the period the property qualified | 10 | | as
homestead property during the assessment year. The maximum | 11 | | proportionate
homestead exemption shall not exceed the maximum | 12 | | homestead exemption allowed in
the county under this Section | 13 | | divided by 365 and multiplied by the number of
days the | 14 | | property qualified as homestead property.
| 15 | | (d-1) In counties with 3,000,000 or more inhabitants, where | 16 | | the chief county assessment officer provides a notice of | 17 | | discovery, if a property is not
occupied by its owner as a | 18 | | principal residence as of January 1 of the current tax year, | 19 | | then the property owner shall notify the chief county | 20 | | assessment officer of that fact on a form prescribed by the | 21 | | chief county assessment officer. That notice must be received | 22 | | by the chief county assessment officer on or before March 1 of | 23 | | the collection year. If mailed, the form shall be sent by | 24 | | certified mail, return receipt requested. If the form is | 25 | | provided in person, the chief county assessment officer shall | 26 | | provide a date stamped copy of the notice. Failure to provide |
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| 1 | | timely notice pursuant to this subsection (d-1) shall result in | 2 | | the exemption being treated as an erroneous exemption. Upon | 3 | | timely receipt of the notice for the current tax year, no | 4 | | exemption shall be applied to the property for the current tax | 5 | | year. If the exemption is not removed upon timely receipt of | 6 | | the notice by the chief assessment officer, then the error is | 7 | | considered granted as a result of a clerical error or omission | 8 | | on the part of the chief county assessment officer as described | 9 | | in subsection (h) of Section 9-275, and the property owner | 10 | | shall not be liable for the payment of interest and penalties | 11 | | due to the erroneous exemption for the current tax year for | 12 | | which the notice was filed after the date that notice was | 13 | | timely received pursuant to this subsection. Notice provided | 14 | | under this subsection shall not constitute a defense or amnesty | 15 | | for prior year erroneous exemptions. | 16 | | For the purposes of this subsection (d-1): | 17 | | "Collection year" means the year in which the first and | 18 | | second installment of the current tax year is billed. | 19 | | "Current tax year" means the year prior to the collection | 20 | | year. | 21 | | (e) The chief county assessment officer may, when | 22 | | considering whether to grant a leasehold exemption under this | 23 | | Section, require the following conditions to be met: | 24 | | (1) that a notarized application for the exemption, | 25 | | signed by both the owner and the lessee of the property, | 26 | | must be submitted each year during the application period |
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| 1 | | in effect for the county in which the property is located; | 2 | | (2) that a copy of the lease must be filed with the | 3 | | chief county assessment officer by the owner of the | 4 | | property at the time the notarized application is | 5 | | submitted; | 6 | | (3) that the lease must expressly state that the lessee | 7 | | is liable for the payment of property taxes; and | 8 | | (4) that the lease must include the following language | 9 | | in substantially the following form: | 10 | | "Lessee shall be liable for the payment of real | 11 | | estate taxes with respect to the residence in | 12 | | accordance with the terms and conditions of Section | 13 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). | 14 | | The permanent real estate index number for the premises | 15 | | is (insert number), and, according to the most recent | 16 | | property tax bill, the current amount of real estate | 17 | | taxes associated with the premises is (insert amount) | 18 | | per year. The parties agree that the monthly rent set | 19 | | forth above shall be increased or decreased pro rata | 20 | | (effective January 1 of each calendar year) to reflect | 21 | | any increase or decrease in real estate taxes. Lessee | 22 | | shall be deemed to be satisfying Lessee's liability for | 23 | | the above mentioned real estate taxes with the monthly | 24 | | rent payments as set forth above (or increased or | 25 | | decreased as set forth herein).". | 26 | | In addition, if there is a change in lessee, or if the |
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| 1 | | lessee vacates the property, then the chief county assessment | 2 | | officer may require the owner of the property to notify the | 3 | | chief county assessment officer of that change. | 4 | | This subsection (e) does not apply to leasehold interests | 5 | | in property owned by a municipality. | 6 | | (f) "Homestead property" under this Section includes | 7 | | residential property that is
occupied by its owner or owners as | 8 | | his or their principal dwelling place, or
that is a leasehold | 9 | | interest on which a single family residence is situated,
which | 10 | | is occupied as a residence by a person who has an ownership | 11 | | interest
therein, legal or equitable or as a lessee, and on | 12 | | which the person is
liable for the payment of property taxes. | 13 | | For land improved with
an apartment building owned and operated | 14 | | as a cooperative or a building which
is a life care facility as | 15 | | defined in Section 15-170 and considered to
be a cooperative | 16 | | under Section 15-170 , the maximum reduction from the equalized
| 17 | | assessed value shall be limited to the increase in the value | 18 | | above the
equalized assessed value of the property for 1977, up | 19 | | to
the maximum reduction set forth above, multiplied by the | 20 | | number of apartments
or units occupied by a person or persons | 21 | | who is liable, by contract with the
owner or owners of record, | 22 | | for paying property taxes on the property and is an
owner of | 23 | | record of a legal or equitable interest in the cooperative
| 24 | | apartment building, other than a leasehold interest. For land | 25 | | improved with a life care facility, the maximum reduction from | 26 | | the value of the property, as equalized by the Department, |
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| 1 | | shall be multiplied by the number of apartments or units | 2 | | occupied by a person or persons, irrespective of any legal, | 3 | | equitable, or leasehold interest in the facility, who are | 4 | | liable, under a contract with the owner or owners of record of | 5 | | the facility, for paying property taxes on the property. The | 6 | | changes made to this subsection (f) by this amendatory Act of | 7 | | the 100th General Assembly are declarative of existing law. For | 8 | | purposes of this
Section, the term "life care facility" has the | 9 | | meaning stated in Section
15-170.
| 10 | | "Household", as used in this Section,
means the owner, the | 11 | | spouse of the owner, and all persons using
the
residence of the | 12 | | owner as their principal place of residence.
| 13 | | "Household income", as used in this Section,
means the | 14 | | combined income of the members of a household
for the calendar | 15 | | year preceding the taxable year.
| 16 | | "Income", as used in this Section,
has the same meaning as | 17 | | provided in Section 3.07 of the Senior
Citizens
and Persons | 18 | | with Disabilities Property Tax Relief Act,
except that
"income" | 19 | | does not include veteran's benefits.
| 20 | | (g) In a cooperative or life care facility where a | 21 | | homestead exemption has been granted, the
cooperative | 22 | | association or the its management of the life care facility | 23 | | firm shall credit the savings
resulting from that exemption | 24 | | only to the apportioned tax liability of the
owner who | 25 | | qualified for the exemption. Any person who willfully refuses | 26 | | to so
credit the savings shall be guilty of a Class B |
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| 1 | | misdemeanor. The changes made to this subsection (f) by this | 2 | | amendatory Act of the 100th General Assembly are declarative of | 3 | | existing law.
| 4 | | (h) Where married persons maintain and reside in separate | 5 | | residences qualifying
as homestead property, each residence | 6 | | shall receive 50% of the total reduction
in equalized assessed | 7 | | valuation provided by this Section.
| 8 | | (i) In all counties, the assessor
or chief county | 9 | | assessment officer may determine the
eligibility of | 10 | | residential property to receive the homestead exemption and the | 11 | | amount of the exemption by
application, visual inspection, | 12 | | questionnaire or other reasonable methods. The
determination | 13 | | shall be made in accordance with guidelines established by the
| 14 | | Department, provided that the taxpayer applying for an | 15 | | additional general exemption under this Section shall submit to | 16 | | the chief county assessment officer an application with an | 17 | | affidavit of the applicant's total household income, age, | 18 | | marital status (and, if married, the name and address of the | 19 | | applicant's spouse, if known), and principal dwelling place of | 20 | | members of the household on January 1 of the taxable year. The | 21 | | Department shall issue guidelines establishing a method for | 22 | | verifying the accuracy of the affidavits filed by applicants | 23 | | under this paragraph. The applications shall be clearly marked | 24 | | as applications for the Additional General Homestead | 25 | | Exemption.
| 26 | | (i-5) This subsection (i-5) applies to counties with |
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| 1 | | 3,000,000 or more inhabitants. In the event of a sale of
| 2 | | homestead property, the homestead exemption shall remain in | 3 | | effect for the remainder of the assessment year of the sale. | 4 | | Upon receipt of a transfer declaration transmitted by the | 5 | | recorder pursuant to Section 31-30 of the Real Estate Transfer | 6 | | Tax Law for property receiving an exemption under this Section, | 7 | | the assessor shall mail a notice and forms to the new owner of | 8 | | the property providing information pertaining to the rules and | 9 | | applicable filing periods for applying or reapplying for | 10 | | homestead exemptions under this Code for which the property may | 11 | | be eligible. If the new owner fails to apply or reapply for a | 12 | | homestead exemption during the applicable filing period or the | 13 | | property no longer qualifies for an existing homestead | 14 | | exemption, the assessor shall cancel such exemption for any | 15 | | ensuing assessment year. | 16 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 17 | | the event of a sale
of
homestead property the homestead | 18 | | exemption shall remain in effect for the
remainder of the | 19 | | assessment year of the sale. The assessor or chief county
| 20 | | assessment officer may require the new
owner of the property to | 21 | | apply for the homestead exemption for the following
assessment | 22 | | year.
| 23 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 24 | | Act, no reimbursement by the State is required for the | 25 | | implementation of any mandate created by this Section.
| 26 | | (Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15; |
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| 1 | | 99-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff. | 2 | | 8-25-17.)
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