Illinois General Assembly - Full Text of HB3390
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Full Text of HB3390  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/17/2023, by Rep. Joe C. Sosnowski


35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, beginning with the 2024 tax year (to be collected in 2025), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year, unless the increase in the property tax liability is attributable to improvements to the property. Contains provisions concerning the reallocation of property tax liability.

LRB103 05333 HLH 50352 b





HB3390LRB103 05333 HLH 50352 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 through 2022, the maximum
10reduction is $10,000 in counties with 3,000,000 or more
11inhabitants and $6,000 in all other counties. For taxable
12years 2023 and thereafter, the maximum reduction is $10,000 in
13counties with 3,000,000 or more inhabitants, $8,000 in
14counties that are contiguous to a county of 3,000,000 or more
15inhabitants, and $6,000 in all other counties. If a county has
16elected to subject itself to the provisions of Section 15-176
17as provided in subsection (k) of that Section, then, for the
18first taxable year only after the provisions of Section 15-176
19no longer apply, for owners who, for the taxable year, have not
20been granted a senior citizens assessment freeze homestead
21exemption under Section 15-172 or a long-time occupant
22homestead exemption under Section 15-177, there shall be an
23additional exemption of $5,000 for owners with a household
24income of $30,000 or less.
25    (c) In counties with fewer than 3,000,000 inhabitants, if,
26based on the most recent assessment, the equalized assessed



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1value of the homestead property for the current assessment
2year is greater than the equalized assessed value of the
3property for 1977, the owner of the property shall
4automatically receive the exemption granted under this Section
5in an amount equal to the increase over the 1977 assessment up
6to the maximum reduction set forth in this Section.
7    (d) If in any assessment year beginning with the 2000
8assessment year, homestead property has a pro-rata valuation
9under Section 9-180 resulting in an increase in the assessed
10valuation, a reduction in equalized assessed valuation equal
11to the increase in equalized assessed value of the property
12for the year of the pro-rata valuation above the equalized
13assessed value of the property for 1977 shall be applied to the
14property on a proportionate basis for the period the property
15qualified as homestead property during the assessment year.
16The maximum proportionate homestead exemption shall not exceed
17the maximum homestead exemption allowed in the county under
18this Section divided by 365 and multiplied by the number of
19days the property qualified as homestead property.
20    (d-1) In counties with 3,000,000 or more inhabitants,
21where the chief county assessment officer provides a notice of
22discovery, if a property is not occupied by its owner as a
23principal residence as of January 1 of the current tax year,
24then the property owner shall notify the chief county
25assessment officer of that fact on a form prescribed by the
26chief county assessment officer. That notice must be received



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1by the chief county assessment officer on or before March 1 of
2the collection year. If mailed, the form shall be sent by
3certified mail, return receipt requested. If the form is
4provided in person, the chief county assessment officer shall
5provide a date stamped copy of the notice. Failure to provide
6timely notice pursuant to this subsection (d-1) shall result
7in the exemption being treated as an erroneous exemption. Upon
8timely receipt of the notice for the current tax year, no
9exemption shall be applied to the property for the current tax
10year. If the exemption is not removed upon timely receipt of
11the notice by the chief assessment officer, then the error is
12considered granted as a result of a clerical error or omission
13on the part of the chief county assessment officer as
14described in subsection (h) of Section 9-275, and the property
15owner shall not be liable for the payment of interest and
16penalties due to the erroneous exemption for the current tax
17year for which the notice was filed after the date that notice
18was timely received pursuant to this subsection. Notice
19provided under this subsection shall not constitute a defense
20or amnesty for prior year erroneous exemptions.
21    For the purposes of this subsection (d-1):
22    "Collection year" means the year in which the first and
23second installment of the current tax year is billed.
24    "Current tax year" means the year prior to the collection
26    (e) The chief county assessment officer may, when



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



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



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1property and is an owner of record of a legal or equitable
2interest in the cooperative apartment building, other than a
3leasehold interest. For land improved with a life care
4facility, the maximum reduction from the value of the
5property, as equalized by the Department, shall be multiplied
6by the number of apartments or units occupied by a person or
7persons, irrespective of any legal, equitable, or leasehold
8interest in the facility, who are liable, under a life care
9contract with the owner or owners of record of the facility,
10for paying property taxes on the property. For purposes of
11this Section, the term "life care facility" has the meaning
12stated in Section 15-170.
13    "Household", as used in this Section, means the owner, the
14spouse of the owner, and all persons using the residence of the
15owner as their principal place of residence.
16    "Household income", as used in this Section, means the
17combined income of the members of a household for the calendar
18year preceding the taxable year.
19    "Income", as used in this Section, has the same meaning as
20provided in Section 3.07 of the Senior Citizens and Persons
21with Disabilities Property Tax Relief Act, except that
22"income" does not include veteran's benefits.
23    (g) In a cooperative or life care facility where a
24homestead exemption has been granted, the cooperative
25association or the management of the cooperative or life care
26facility shall credit the savings resulting from that



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1exemption only to the apportioned tax liability of the owner
2or resident who qualified for the exemption. Any person who
3willfully refuses to so credit the savings shall be guilty of a
4Class B misdemeanor.
5    (h) Where married persons maintain and reside in separate
6residences qualifying as homestead property, each residence
7shall receive 50% of the total reduction in equalized assessed
8valuation provided by this Section.
9    (i) In all counties, the assessor or chief county
10assessment officer may determine the eligibility of
11residential property to receive the homestead exemption and
12the amount of the exemption by application, visual inspection,
13questionnaire or other reasonable methods. The determination
14shall be made in accordance with guidelines established by the
15Department, provided that the taxpayer applying for an
16additional general exemption under this Section shall submit
17to the chief county assessment officer an application with an
18affidavit of the applicant's total household income, age,
19marital status (and, if married, the name and address of the
20applicant's spouse, if known), and principal dwelling place of
21members of the household on January 1 of the taxable year. The
22Department shall issue guidelines establishing a method for
23verifying the accuracy of the affidavits filed by applicants
24under this paragraph. The applications shall be clearly marked
25as applications for the Additional General Homestead



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1    (i-5) This subsection (i-5) applies to counties with
23,000,000 or more inhabitants. In the event of a sale of
3homestead property, the homestead exemption shall remain in
4effect for the remainder of the assessment year of the sale.
5Upon receipt of a transfer declaration transmitted by the
6recorder pursuant to Section 31-30 of the Real Estate Transfer
7Tax Law for property receiving an exemption under this
8Section, the assessor shall mail a notice and forms to the new
9owner of the property providing information pertaining to the
10rules and applicable filing periods for applying or reapplying
11for homestead exemptions under this Code for which the
12property may be eligible. If the new owner fails to apply or
13reapply for a homestead exemption during the applicable filing
14period or the property no longer qualifies for an existing
15homestead exemption, the assessor shall cancel such exemption
16for any ensuing assessment year.
17    (j) In counties with fewer than 3,000,000 inhabitants, in
18the event of a sale of homestead property the homestead
19exemption shall remain in effect for the remainder of the
20assessment year of the sale. The assessor or chief county
21assessment officer may require the new owner of the property
22to apply for the homestead exemption for the following
23assessment year.
24    (k) Notwithstanding Sections 6 and 8 of the State Mandates
25Act, no reimbursement by the State is required for the
26implementation of any mandate created by this Section.



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1    (k-5) Notwithstanding any other provision of law,
2beginning with the 2024 tax year (to be collected in 2025), the
3total tax bill for property receiving the General Homestead
4Exemption under this Section may not exceed 103% of the total
5property tax bill for the property for the immediately
6preceding taxable year, unless the increase in the property
7tax liability is attributable to improvements to the property.
8The chief county assessment officer shall adopt rules and
9policies to reallocate the responsibility for the property tax
10revenue that is lost as a result of the application of this
11subsection to other property in the taxing district on a pro
12rata basis.
13    (l) The changes made to this Section by this amendatory
14Act of the 100th General Assembly are effective for the 2018
15tax year and thereafter.
16(Source: P.A. 102-895, eff. 5-23-22.)