Illinois General Assembly - Full Text of SB2352
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Full Text of SB2352  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/26/2021, by Sen. Michael E. Hastings


35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, for homestead property that is the principal place of residence of a caregiver and is used to provide home care services to a person who is over 65 years of age and needs assistance with the activities of daily living, the maximum general homestead exemption shall be increased by $1,000. Effective immediately.

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SB2352LRB102 16369 HLH 21756 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Section 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,
9homestead property is entitled to an annual homestead
10exemption limited, except as described here with relation to
11cooperatives or life care facilities, to a reduction in the
12equalized assessed value of homestead property equal to the
13increase in equalized assessed value for the current
14assessment year above the equalized assessed value of the
15property for 1977, up to the maximum reduction set forth
16below. If however, the 1977 equalized assessed value upon
17which taxes were paid is subsequently determined by local
18assessing officials, the Property Tax Appeal Board, or a court
19to have been excessive, the equalized assessed value which
20should have been placed on the property for 1977 shall be used
21to determine the amount of the exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties



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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177,
3for taxable years 2004 through 2007, the maximum reduction
4shall be $5,000, for taxable year 2008, the maximum reduction
5is $5,500, and, for taxable years 2009 through 2011, the
6maximum reduction is $6,000 in all counties. For taxable years
72012 through 2016, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable years 2017 and thereafter, the maximum
10reduction is $10,000 in counties with 3,000,000 or more
11inhabitants and $6,000 in all other counties. If a county has
12elected to subject itself to the provisions of Section 15-176
13as provided in subsection (k) of that Section, then, for the
14first taxable year only after the provisions of Section 15-176
15no longer apply, for owners who, for the taxable year, have not
16been granted a senior citizens assessment freeze homestead
17exemption under Section 15-172 or a long-time occupant
18homestead exemption under Section 15-177, there shall be an
19additional exemption of $5,000 for owners with a household
20income of $30,000 or less. In the case of homestead property
21that is the principal place of residence of a caregiver and is
22used to provide home care services to a person who is over 65
23years of age and needs assistance with the activities of daily
24living, the maximum exemption under this Section shall be
25increased by $1,000. As used in this Section, "caregiver"
26means a person who, either as a result of a family



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1relationship, voluntarily, or in exchange for compensation,
2has assumed responsibility for all or a portion of the
3day-to-day care of a person who is over 65 years of age and
4needs assistance with the activities of daily living.
5    (c) In counties with fewer than 3,000,000 inhabitants, if,
6based on the most recent assessment, the equalized assessed
7value of the homestead property for the current assessment
8year is greater than the equalized assessed value of the
9property for 1977, the owner of the property shall
10automatically receive the exemption granted under this Section
11in an amount equal to the increase over the 1977 assessment up
12to the maximum reduction set forth in this Section.
13    (d) If in any assessment year beginning with the 2000
14assessment year, homestead property has a pro-rata valuation
15under Section 9-180 resulting in an increase in the assessed
16valuation, a reduction in equalized assessed valuation equal
17to the increase in equalized assessed value of the property
18for the year of the pro-rata valuation above the equalized
19assessed value of the property for 1977 shall be applied to the
20property on a proportionate basis for the period the property
21qualified as homestead property during the assessment year.
22The maximum proportionate homestead exemption shall not exceed
23the maximum homestead exemption allowed in the county under
24this Section divided by 365 and multiplied by the number of
25days the property qualified as homestead property.
26    (d-1) In counties with 3,000,000 or more inhabitants,



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1where the chief county assessment officer provides a notice of
2discovery, if a property is not occupied by its owner as a
3principal residence as of January 1 of the current tax year,
4then the property owner shall notify the chief county
5assessment officer of that fact on a form prescribed by the
6chief county assessment officer. That notice must be received
7by the chief county assessment officer on or before March 1 of
8the collection year. If mailed, the form shall be sent by
9certified mail, return receipt requested. If the form is
10provided in person, the chief county assessment officer shall
11provide a date stamped copy of the notice. Failure to provide
12timely notice pursuant to this subsection (d-1) shall result
13in the exemption being treated as an erroneous exemption. Upon
14timely receipt of the notice for the current tax year, no
15exemption shall be applied to the property for the current tax
16year. If the exemption is not removed upon timely receipt of
17the notice by the chief assessment officer, then the error is
18considered granted as a result of a clerical error or omission
19on the part of the chief county assessment officer as
20described in subsection (h) of Section 9-275, and the property
21owner shall not be liable for the payment of interest and
22penalties due to the erroneous exemption for the current tax
23year for which the notice was filed after the date that notice
24was timely received pursuant to this subsection. Notice
25provided under this subsection shall not constitute a defense
26or amnesty for prior year erroneous exemptions.



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1    For the purposes of this subsection (d-1):
2    "Collection year" means the year in which the first and
3second installment of the current tax year is billed.
4    "Current tax year" means the year prior to the collection
6    (e) The chief county assessment officer may, when
7considering whether to grant a leasehold exemption under this
8Section, require the following conditions to be met:
9        (1) that a notarized application for the exemption,
10    signed by both the owner and the lessee of the property,
11    must be submitted each year during the application period
12    in effect for the county in which the property is located;
13        (2) that a copy of the lease must be filed with the
14    chief county assessment officer by the owner of the
15    property at the time the notarized application is
16    submitted;
17        (3) that the lease must expressly state that the
18    lessee is liable for the payment of property taxes; and
19        (4) that the lease must include the following language
20    in substantially the following form:
21            "Lessee shall be liable for the payment of real
22        estate taxes with respect to the residence in
23        accordance with the terms and conditions of Section
24        15-175 of the Property Tax Code (35 ILCS 200/15-175).
25        The permanent real estate index number for the
26        premises is (insert number), and, according to the



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1        most recent property tax bill, the current amount of
2        real estate taxes associated with the premises is
3        (insert amount) per year. The parties agree that the
4        monthly rent set forth above shall be increased or
5        decreased pro rata (effective January 1 of each
6        calendar year) to reflect any increase or decrease in
7        real estate taxes. Lessee shall be deemed to be
8        satisfying Lessee's liability for the above mentioned
9        real estate taxes with the monthly rent payments as
10        set forth above (or increased or decreased as set
11        forth herein).".
12    In addition, if there is a change in lessee, or if the
13lessee vacates the property, then the chief county assessment
14officer may require the owner of the property to notify the
15chief county assessment officer of that change.
16    This subsection (e) does not apply to leasehold interests
17in property owned by a municipality.
18    (f) "Homestead property" under this Section includes
19residential property that is occupied by its owner or owners
20as his or their principal dwelling place, or that is a
21leasehold interest on which a single family residence is
22situated, which is occupied as a residence by a person who has
23an ownership interest therein, legal or equitable or as a
24lessee, and on which the person is liable for the payment of
25property taxes. For land improved with an apartment building
26owned and operated as a cooperative, the maximum reduction



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1from the equalized assessed value shall be limited to the
2increase in the value above the equalized assessed value of
3the property for 1977, up to the maximum reduction set forth
4above, multiplied by the number of apartments or units
5occupied by a person or persons who is liable, by contract with
6the owner or owners of record, for paying property taxes on the
7property and is an owner of record of a legal or equitable
8interest in the cooperative apartment building, other than a
9leasehold interest. For land improved with a life care
10facility, the maximum reduction from the value of the
11property, as equalized by the Department, shall be multiplied
12by the number of apartments or units occupied by a person or
13persons, irrespective of any legal, equitable, or leasehold
14interest in the facility, who are liable, under a life care
15contract with the owner or owners of record of the facility,
16for paying property taxes on the property. For purposes of
17this Section, the term "life care facility" has the meaning
18stated in Section 15-170.
19    "Household", as used in this Section, means the owner, the
20spouse of the owner, and all persons using the residence of the
21owner as their principal place of residence.
22    "Household income", as used in this Section, means the
23combined income of the members of a household for the calendar
24year preceding the taxable year.
25    "Income", as used in this Section, has the same meaning as
26provided in Section 3.07 of the Senior Citizens and Persons



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1with Disabilities Property Tax Relief Act, except that
2"income" does not include veteran's benefits.
3    (g) In a cooperative or life care facility where a
4homestead exemption has been granted, the cooperative
5association or the management of the cooperative or life care
6facility shall credit the savings resulting from that
7exemption only to the apportioned tax liability of the owner
8or resident who qualified for the exemption. Any person who
9willfully refuses to so credit the savings shall be guilty of a
10Class B misdemeanor.
11    (h) Where married persons maintain and reside in separate
12residences qualifying as homestead property, each residence
13shall receive 50% of the total reduction in equalized assessed
14valuation provided by this Section.
15    (i) In all counties, the assessor or chief county
16assessment officer may determine the eligibility of
17residential property to receive the homestead exemption and
18the amount of the exemption by application, visual inspection,
19questionnaire or other reasonable methods. The determination
20shall be made in accordance with guidelines established by the
21Department, provided that the taxpayer applying for an
22additional general exemption under this Section shall submit
23to the chief county assessment officer an application with an
24affidavit of the applicant's total household income, age,
25marital status (and, if married, the name and address of the
26applicant's spouse, if known), and principal dwelling place of



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1members of the household on January 1 of the taxable year. The
2Department shall issue guidelines establishing a method for
3verifying the accuracy of the affidavits filed by applicants
4under this paragraph. The applications shall be clearly marked
5as applications for the Additional General Homestead
7    (i-5) This subsection (i-5) applies to counties with
83,000,000 or more inhabitants. In the event of a sale of
9homestead property, the homestead exemption shall remain in
10effect for the remainder of the assessment year of the sale.
11Upon receipt of a transfer declaration transmitted by the
12recorder pursuant to Section 31-30 of the Real Estate Transfer
13Tax Law for property receiving an exemption under this
14Section, the assessor shall mail a notice and forms to the new
15owner of the property providing information pertaining to the
16rules and applicable filing periods for applying or reapplying
17for homestead exemptions under this Code for which the
18property may be eligible. If the new owner fails to apply or
19reapply for a homestead exemption during the applicable filing
20period or the property no longer qualifies for an existing
21homestead exemption, the assessor shall cancel such exemption
22for any ensuing assessment year.
23    (j) In counties with fewer than 3,000,000 inhabitants, in
24the event of a sale of homestead property the homestead
25exemption shall remain in effect for the remainder of the
26assessment year of the sale. The assessor or chief county



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1assessment officer may require the new owner of the property
2to apply for the homestead exemption for the following
3assessment year.
4    (k) Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7    (l) The changes made to this Section by this amendatory
8Act of the 100th General Assembly are effective for the 2018
9tax year and thereafter.
10(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
1199-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
128-25-17; 100-1077, eff. 1-1-19.)
13    Section 99. Effective date. This Act takes effect upon
14becoming law.