Full Text of HB3864 094th General Assembly
HB3864 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB3864
Introduced 2/25/2005, by Rep. Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
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35 ILCS 200/15-170 |
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35 ILCS 200/15-175 |
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Amends the Property Tax Code. Provides that the maximum reduction under the Senior Citizen Homestead Exemption shall be $3,500 for 2006, $4,000 for 2007, $4,500 for 2008, and $5,000 for 2009 and thereafter in all counties. Provides that the maximum reduction under the General Homestead Exemption shall be $5,500 for 2006, $6,000 for 2007, $6,500 for 2008, and $7,000 for 2009 and thereafter in all counties. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB3864 |
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LRB094 05180 BDD 35222 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 15-170 and 15-175 as follows:
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| (35 ILCS 200/15-170)
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| Sec. 15-170. Senior Citizens Homestead Exemption. An | 8 |
| annual homestead
exemption limited, except as described here | 9 |
| with relation to cooperatives or
life care facilities, to a
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| maximum reduction set forth below from the property's value, as | 11 |
| equalized or
assessed by the Department, is granted for | 12 |
| property that is occupied as a
residence by a person 65 years | 13 |
| of age or older who is liable for paying real
estate taxes on | 14 |
| the property and is an owner of record of the property or has a
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| legal or equitable interest therein as evidenced by a written | 16 |
| instrument,
except for a leasehold interest, other than a | 17 |
| leasehold interest of land on
which a single family residence | 18 |
| is located, which is occupied as a residence by
a person 65 | 19 |
| years or older who has an ownership interest therein, legal,
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| equitable or as a lessee, and on which he or she is liable for | 21 |
| the payment
of property taxes. Before taxable year 2004, the | 22 |
| maximum reduction shall be $2,500 in counties with
3,000,000 or | 23 |
| more inhabitants and $2,000 in all other counties. For taxable | 24 |
| year
years 2004 and thereafter , the maximum reduction shall be | 25 |
| $3,000 in all counties and shall be $3,500 for 2006, $4,000 for | 26 |
| 2007, $4,500 for 2008, and $5,000 for 2009 and thereafter in | 27 |
| all counties . For land
improved with an apartment building | 28 |
| owned and operated as a cooperative, the maximum reduction from | 29 |
| the value of the property, as
equalized
by the Department, | 30 |
| shall be multiplied by the number of apartments or units
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| occupied by a person 65 years of age or older who is liable, by | 32 |
| contract with
the owner or owners of record, for paying |
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HB3864 |
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LRB094 05180 BDD 35222 b |
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| property taxes on the property and
is an owner of record of a | 2 |
| legal or equitable interest in the cooperative
apartment | 3 |
| building, other than a leasehold interest. For land improved | 4 |
| with
a life care facility, the maximum reduction from the value | 5 |
| of the property, as
equalized by the Department, shall be | 6 |
| multiplied by the number of apartments or
units occupied by | 7 |
| persons 65 years of age or older, irrespective of any legal,
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| equitable, or leasehold interest in the facility, who are | 9 |
| liable, under a
contract with the owner or owners of record of | 10 |
| the facility, for paying
property taxes on the property. In a
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| cooperative or a life care facility where a
homestead exemption | 12 |
| has been granted, the cooperative association or the
management | 13 |
| firm of the cooperative or facility shall credit the savings
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| resulting from that exemption only to
the apportioned tax | 15 |
| liability of the owner or resident who qualified for
the | 16 |
| exemption.
Any person who willfully refuses to so credit the | 17 |
| savings shall be guilty of a
Class B misdemeanor. Under this | 18 |
| Section and Sections 15-175 and 15-176, "life care
facility" | 19 |
| means a facility as defined in Section 2 of the Life Care | 20 |
| Facilities
Act, with which the applicant for the homestead | 21 |
| exemption has a life care
contract as defined in that Act.
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| 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
Nursing Home Care | 25 |
| Act, the exemption shall continue so long as the residence
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| continues to be occupied by the qualifying person's spouse if | 27 |
| the spouse is 65
years of age or older, or if the residence | 28 |
| remains unoccupied but is still
owned by the person qualified | 29 |
| for the homestead exemption.
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| A person who will be 65 years of age
during the current | 31 |
| assessment year
shall
be eligible to apply for the homestead | 32 |
| exemption during that assessment
year.
Application shall be | 33 |
| made during the application period in effect for the
county of | 34 |
| his residence.
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| Beginning with assessment year 2003, for taxes payable in | 36 |
| 2004,
property
that is first occupied as a residence after |
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HB3864 |
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| January 1 of any assessment year by
a person who is eligible | 2 |
| for the senior citizens homestead exemption under this
Section | 3 |
| must be granted a pro-rata exemption for the assessment year. | 4 |
| The
amount of the pro-rata exemption is the exemption
allowed | 5 |
| in the county under this Section divided by 365 and multiplied | 6 |
| by the
number of days during the assessment year the property | 7 |
| is occupied as a
residence by a
person eligible for the | 8 |
| exemption under this Section. The chief county
assessment | 9 |
| officer must adopt reasonable procedures to establish | 10 |
| eligibility
for this pro-rata exemption.
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| The assessor or chief county assessment officer may | 12 |
| determine the eligibility
of a life care facility to receive | 13 |
| the benefits provided by this Section, by
affidavit, | 14 |
| application, visual inspection, questionnaire or other | 15 |
| reasonable
methods in order to insure that the tax savings | 16 |
| resulting from the exemption
are credited by the management | 17 |
| firm to the apportioned tax liability of each
qualifying | 18 |
| resident. The assessor may request reasonable proof that the
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| management firm has so credited the exemption.
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| The chief county assessment officer of each county with | 21 |
| less than 3,000,000
inhabitants shall provide to each person | 22 |
| allowed a homestead exemption under
this Section a form to | 23 |
| designate any other person to receive a
duplicate of any notice | 24 |
| of delinquency in the payment of taxes assessed and
levied | 25 |
| under this Code on the property of the person receiving the | 26 |
| exemption.
The duplicate notice shall be in addition to the | 27 |
| notice required to be
provided to the person receiving the | 28 |
| exemption, and shall be given in the
manner required by this | 29 |
| Code. The person filing the request for the duplicate
notice | 30 |
| shall pay a fee of $5 to cover administrative costs to the | 31 |
| supervisor of
assessments, who shall then file the executed | 32 |
| designation with the county
collector. Notwithstanding any | 33 |
| other provision of this Code to the contrary,
the filing of | 34 |
| such an executed designation requires the county collector to
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| provide duplicate notices as indicated by the designation. A | 36 |
| designation may
be rescinded by the person who executed such |
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| designation at any time, in the
manner and form required by the | 2 |
| chief county assessment officer.
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| The assessor or chief county assessment officer may | 4 |
| determine the
eligibility of residential property to receive | 5 |
| the homestead exemption provided
by this Section by | 6 |
| application, visual inspection, questionnaire or other
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| reasonable methods. The determination shall be made in | 8 |
| accordance with
guidelines established by the Department.
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| In counties with less than 3,000,000 inhabitants, the | 10 |
| county board may by
resolution provide that if a person has | 11 |
| been granted a homestead exemption
under this Section, the | 12 |
| person qualifying need not reapply for the exemption.
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| In counties with less than 3,000,000 inhabitants, if the | 14 |
| assessor or chief
county assessment officer requires annual | 15 |
| application for verification of
eligibility for an exemption | 16 |
| once granted under this Section, the application
shall be | 17 |
| mailed to the taxpayer.
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| The assessor or chief county assessment officer shall | 19 |
| notify each person
who qualifies for an exemption under this | 20 |
| Section that the person may also
qualify for deferral of real | 21 |
| estate taxes under the Senior Citizens Real Estate
Tax Deferral | 22 |
| Act. The notice shall set forth the qualifications needed for
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| deferral of real estate taxes, the address and telephone number | 24 |
| of
county collector, and a
statement that applications for | 25 |
| deferral of real estate taxes may be obtained
from the county | 26 |
| collector.
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| Notwithstanding Sections 6 and 8 of the State Mandates Act, | 28 |
| no
reimbursement by the State is required for the | 29 |
| implementation of any mandate
created by this Section.
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| (Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03; | 31 |
| 93-715, eff. 7-12-04.)
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| (35 ILCS 200/15-175)
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| Sec. 15-175. General homestead exemption. Except as | 34 |
| provided in Section
15-176, homestead
property is
entitled to | 35 |
| an annual homestead exemption limited, except as described here
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HB3864 |
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LRB094 05180 BDD 35222 b |
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| with relation to cooperatives, to a reduction in the equalized | 2 |
| assessed value
of homestead property equal to the increase in | 3 |
| equalized assessed value for the
current assessment year above | 4 |
| the equalized assessed value of the property for
1977, up to | 5 |
| the maximum reduction set forth below. If however, the 1977
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| equalized assessed value upon which taxes were paid is | 7 |
| subsequently determined
by local assessing officials, the | 8 |
| Property Tax Appeal Board, or a court to have
been excessive, | 9 |
| the equalized assessed value which should have been placed on
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| the property for 1977 shall be used to determine the amount of | 11 |
| the exemption.
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| Except as provided in Section 15-176, the maximum reduction | 13 |
| before taxable year 2004 shall be
$4,500 in counties with | 14 |
| 3,000,000 or more
inhabitants
and $3,500 in all other counties. | 15 |
| Except as provided in Section 15-176, for taxable year
years | 16 |
| 2004 and thereafter , the maximum reduction shall be $5,000 in | 17 |
| all counties and shall be $5,500 for 2006, $6,000 for 2007, | 18 |
| $6,500 for 2008, and $7,000 for 2009 and thereafter in all | 19 |
| counties . If a county has elected to subject itself to the | 20 |
| provisions of Section 15-176 as provided in subsection (k) of | 21 |
| that Section, then, for the first taxable year only after the | 22 |
| provisions of Section 15-176 no longer apply, for owners (i) | 23 |
| who have not been granted a senior citizens assessment freeze | 24 |
| homestead exemption under Section 15-172 for the taxable year | 25 |
| and (ii) whose qualified property has an assessed valuation | 26 |
| that has increased by more than 20% over the previous assessed | 27 |
| valuation of the property, there shall be an additional | 28 |
| exemption of $5,000 for owners with a household income of | 29 |
| $30,000 or less. For purposes of this paragraph, "household | 30 |
| income" has the meaning set forth in this Section 15-175.
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| In counties with fewer than 3,000,000 inhabitants, if, | 32 |
| based on the most
recent assessment, the equalized assessed | 33 |
| value of
the homestead property for the current assessment year | 34 |
| is greater than the
equalized assessed value of the property | 35 |
| for 1977, the owner of the property
shall automatically receive | 36 |
| the exemption granted under this Section in an
amount equal to |
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| the increase over the 1977 assessment up to the maximum
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| reduction set forth in this Section.
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| If in any assessment year beginning with the 2000 | 4 |
| assessment year,
homestead property has a pro-rata valuation | 5 |
| under
Section 9-180 resulting in an increase in the assessed | 6 |
| valuation, a reduction
in equalized assessed valuation equal to | 7 |
| the increase in equalized assessed
value of the property for | 8 |
| the year of the pro-rata valuation above the
equalized assessed | 9 |
| value of the property for 1977 shall be applied to the
property | 10 |
| on a proportionate basis for the period the property qualified | 11 |
| as
homestead property during the assessment year. The maximum | 12 |
| proportionate
homestead exemption shall not exceed the maximum | 13 |
| homestead exemption allowed in
the county under this Section | 14 |
| divided by 365 and multiplied by the number of
days the | 15 |
| property qualified as homestead property.
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| "Homestead property" under this Section includes | 17 |
| residential property that is
occupied by its owner or owners as | 18 |
| his or their principal dwelling place, or
that is a leasehold | 19 |
| interest on which a single family residence is situated,
which | 20 |
| is occupied as a residence by a person who has an ownership | 21 |
| interest
therein, legal or equitable or as a lessee, and on | 22 |
| which the person is
liable for the payment of property taxes. | 23 |
| For land improved with
an apartment building owned and operated | 24 |
| as a cooperative or a building which
is a life care facility as | 25 |
| defined in Section 15-170 and considered to
be a cooperative | 26 |
| under Section 15-170, the maximum reduction from the equalized
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| assessed value shall be limited to the increase in the value | 28 |
| above the
equalized assessed value of the property for 1977, up | 29 |
| to
the maximum reduction set forth above, multiplied by the | 30 |
| number of apartments
or units occupied by a person or persons | 31 |
| who is liable, by contract with the
owner or owners of record, | 32 |
| for paying property taxes on the property and is an
owner of | 33 |
| record of a legal or equitable interest in the cooperative
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| apartment building, other than a leasehold interest. For | 35 |
| purposes of this
Section, the term "life care facility" has the | 36 |
| meaning stated in Section
15-170.
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| "Household", as used in this Section,
means the owner, the | 2 |
| spouse of the owner, and all persons using
the
residence of the | 3 |
| owner as their principal place of residence.
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| "Household income", as used in this Section,
means the | 5 |
| combined income of the members of a household
for the calendar | 6 |
| year preceding the taxable year.
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| "Income", as used in this Section,
has the same meaning as | 8 |
| provided in Section 3.07 of the Senior
Citizens
and Disabled | 9 |
| Persons Property Tax Relief and Pharmaceutical Assistance Act,
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| except that
"income" does not include veteran's benefits.
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| In a cooperative where a homestead exemption has been | 12 |
| granted, the
cooperative association or its management firm | 13 |
| shall credit the savings
resulting from that exemption only to | 14 |
| the apportioned tax liability of the
owner who qualified for | 15 |
| the exemption. Any person who willfully refuses to so
credit | 16 |
| the savings shall be guilty of a Class B misdemeanor.
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| Where married persons maintain and reside in separate | 18 |
| residences qualifying
as homestead property, each residence | 19 |
| shall receive 50% of the total reduction
in equalized assessed | 20 |
| valuation provided by this Section.
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| In all counties, the assessor
or chief county assessment | 22 |
| officer may determine the
eligibility of residential property | 23 |
| to receive the homestead exemption and the amount of the | 24 |
| exemption by
application, visual inspection, questionnaire or | 25 |
| other reasonable methods. The
determination shall be made in | 26 |
| accordance with guidelines established by the
Department, | 27 |
| provided that the taxpayer applying for an additional general | 28 |
| exemption under this Section shall submit to the chief county | 29 |
| assessment officer an application with an affidavit of the | 30 |
| applicant's total household income, age, marital status (and, | 31 |
| if married, the name and address of the applicant's spouse, if | 32 |
| known), and principal dwelling place of members of the | 33 |
| household on January 1 of the taxable year. The Department | 34 |
| shall issue guidelines establishing a method for verifying the | 35 |
| accuracy of the affidavits filed by applicants under this | 36 |
| paragraph. The applications shall be clearly marked as |
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| applications for the Additional General Homestead Exemption.
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| In counties with fewer than 3,000,000 inhabitants, in the | 3 |
| event of a sale
of
homestead property the homestead exemption | 4 |
| shall remain in effect for the
remainder of the assessment year | 5 |
| of the sale. The assessor or chief county
assessment officer | 6 |
| may require the new
owner of the property to apply for the | 7 |
| homestead exemption for the following
assessment year.
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| Notwithstanding Sections 6 and 8 of the State Mandates Act, | 9 |
| no reimbursement by the State is required for the | 10 |
| implementation of any mandate created by this Section.
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| (Source: P.A. 93-715, eff. 7-12-04.)
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
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