Full Text of HB4695 100th General Assembly
HB4695 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4695 Introduced , by Rep. David S. Olsen SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/15-170 | |
35 ILCS 200/15-175 |
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Amends the Property Tax Code. Provides that, for taxable years 2018 and thereafter: (1) the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties); and (2) the maximum reduction under the general homestead exemption is $10,000 in all counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.
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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 | | Sections 15-170 and 15-175 as follows: | 6 | | (35 ILCS 200/15-170) | 7 | | 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
| 10 | | 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
| 15 | | 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,
| 20 | | 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 |
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| 1 | | years 2004 through 2005, the maximum reduction shall be $3,000 | 2 | | in all counties. For taxable years 2006 and 2007, the maximum | 3 | | reduction shall be $3,500. For taxable years 2008 through 2011, | 4 | | the maximum reduction is $4,000 in all counties.
For taxable | 5 | | year 2012, the maximum reduction is $5,000 in counties with
| 6 | | 3,000,000 or more inhabitants and $4,000 in all other counties. | 7 | | For taxable years 2013 through 2016, the maximum reduction is | 8 | | $5,000 in all counties. For taxable year years 2017 and | 9 | | thereafter , the maximum reduction is $8,000 in counties with | 10 | | 3,000,000 or more inhabitants and $5,000 in all other counties. | 11 | | For taxable years 2018 and thereafter, the maximum reduction is | 12 | | $8,000 in all counties. | 13 | | For land
improved with an apartment building owned and | 14 | | operated as a cooperative, the maximum reduction from the value | 15 | | of the property, as
equalized
by the Department, shall be | 16 | | multiplied by the number of apartments or units
occupied by a | 17 | | person 65 years of age or older who is liable, by contract with
| 18 | | the owner or owners of record, for paying property taxes on the | 19 | | property and
is an owner of record of a legal or equitable | 20 | | interest in the cooperative
apartment building, other than a | 21 | | leasehold interest. For land improved with
a life care | 22 | | facility, the maximum reduction from the value of the property, | 23 | | as
equalized by the Department, shall be multiplied by the | 24 | | number of apartments or
units occupied by persons 65 years of | 25 | | age or older, irrespective of any legal,
equitable, or | 26 | | leasehold interest in the facility, who are liable, under a
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| 1 | | contract with the owner or owners of record of the facility, | 2 | | for paying
property taxes on the property. In a
cooperative or | 3 | | a life care facility where a
homestead exemption has been | 4 | | granted, the cooperative association or the
management firm of | 5 | | the cooperative or facility shall credit the savings
resulting | 6 | | from that exemption only to
the apportioned tax liability of | 7 | | the owner or resident who qualified for
the exemption.
Any | 8 | | person who willfully refuses to so credit the savings shall be | 9 | | guilty of a
Class B misdemeanor. Under this Section and | 10 | | Sections 15-175, 15-176, and 15-177, "life care
facility" means | 11 | | a facility, as defined in Section 2 of the Life Care Facilities
| 12 | | Act, with which the applicant for the homestead exemption has a | 13 | | life care
contract as defined in that Act. | 14 | | When a homestead exemption has been granted under this | 15 | | Section and the person
qualifying subsequently becomes a | 16 | | resident of a facility licensed under the Assisted Living and | 17 | | Shared Housing Act, the Nursing Home Care Act, the Specialized | 18 | | Mental Health Rehabilitation Act of 2013, the ID/DD Community | 19 | | Care Act, or the MC/DD Act, the exemption shall continue so | 20 | | long as the residence
continues to be occupied by the | 21 | | qualifying person's spouse if the spouse is 65
years of age or | 22 | | older, or if the residence remains unoccupied but is still
| 23 | | owned by the person qualified for the homestead exemption. | 24 | | A person who will be 65 years of age
during the current | 25 | | assessment year
shall
be eligible to apply for the homestead | 26 | | exemption during that assessment
year.
Application shall be |
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| 1 | | made during the application period in effect for the
county of | 2 | | his residence. | 3 | | Beginning with assessment year 2003, for taxes payable in | 4 | | 2004,
property
that is first occupied as a residence after | 5 | | January 1 of any assessment year by
a person who is eligible | 6 | | for the senior citizens homestead exemption under this
Section | 7 | | must be granted a pro-rata exemption for the assessment year. | 8 | | The
amount of the pro-rata exemption is the exemption
allowed | 9 | | in the county under this Section divided by 365 and multiplied | 10 | | by the
number of days during the assessment year the property | 11 | | is occupied as a
residence by a
person eligible for the | 12 | | exemption under this Section. The chief county
assessment | 13 | | officer must adopt reasonable procedures to establish | 14 | | eligibility
for this pro-rata exemption. | 15 | | The assessor or chief county assessment officer may | 16 | | determine the eligibility
of a life care facility to receive | 17 | | the benefits provided by this Section, by
affidavit, | 18 | | application, visual inspection, questionnaire or other | 19 | | reasonable
methods in order to insure that the tax savings | 20 | | resulting from the exemption
are credited by the management | 21 | | firm to the apportioned tax liability of each
qualifying | 22 | | resident. The assessor may request reasonable proof that the
| 23 | | management firm has so credited the exemption. | 24 | | The chief county assessment officer of each county with | 25 | | less than 3,000,000
inhabitants shall provide to each person | 26 | | allowed a homestead exemption under
this Section a form to |
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| 1 | | designate any other person to receive a
duplicate of any notice | 2 | | of delinquency in the payment of taxes assessed and
levied | 3 | | under this Code on the property of the person receiving the | 4 | | exemption.
The duplicate notice shall be in addition to the | 5 | | notice required to be
provided to the person receiving the | 6 | | exemption, and shall be given in the
manner required by this | 7 | | Code. The person filing the request for the duplicate
notice | 8 | | shall pay a fee of $5 to cover administrative costs to the | 9 | | supervisor of
assessments, who shall then file the executed | 10 | | designation with the county
collector. Notwithstanding any | 11 | | other provision of this Code to the contrary,
the filing of | 12 | | such an executed designation requires the county collector to
| 13 | | provide duplicate notices as indicated by the designation. A | 14 | | designation may
be rescinded by the person who executed such | 15 | | designation at any time, in the
manner and form required by the | 16 | | chief county assessment officer. | 17 | | The assessor or chief county assessment officer may | 18 | | determine the
eligibility of residential property to receive | 19 | | the homestead exemption provided
by this Section by | 20 | | application, visual inspection, questionnaire or other
| 21 | | reasonable methods. The determination shall be made in | 22 | | accordance with
guidelines established by the Department. | 23 | | In counties with 3,000,000 or more inhabitants, beginning | 24 | | in taxable year 2010, each taxpayer who has been granted an | 25 | | exemption under this Section must reapply on an annual basis. | 26 | | The chief county assessment officer shall mail the application |
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| 1 | | to the taxpayer. In counties with less than 3,000,000 | 2 | | inhabitants, the county board may by
resolution provide that if | 3 | | a person has been granted a homestead exemption
under this | 4 | | Section, the person qualifying need not reapply for the | 5 | | exemption. | 6 | | In counties with less than 3,000,000 inhabitants, if the | 7 | | assessor or chief
county assessment officer requires annual | 8 | | application for verification of
eligibility for an exemption | 9 | | once granted under this Section, the application
shall be | 10 | | mailed to the taxpayer. | 11 | | The assessor or chief county assessment officer shall | 12 | | notify each person
who qualifies for an exemption under this | 13 | | Section that the person may also
qualify for deferral of real | 14 | | estate taxes under the Senior Citizens Real Estate
Tax Deferral | 15 | | Act. The notice shall set forth the qualifications needed for
| 16 | | deferral of real estate taxes, the address and telephone number | 17 | | of
county collector, and a
statement that applications for | 18 | | deferral of real estate taxes may be obtained
from the county | 19 | | collector. | 20 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 21 | | no
reimbursement by the State is required for the | 22 | | implementation of any mandate
created by this Section. | 23 | | (Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
| 24 | | (35 ILCS 200/15-175)
| 25 | | Sec. 15-175. General homestead exemption. |
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| 1 | | (a) Except as provided in Sections 15-176 and 15-177, | 2 | | homestead
property is
entitled to an annual homestead exemption | 3 | | limited, except as described here
with relation to | 4 | | cooperatives, to a reduction in the equalized assessed value
of | 5 | | homestead property equal to the increase in equalized assessed | 6 | | value for the
current assessment year above the equalized | 7 | | assessed value of the property for
1977, up to the maximum | 8 | | reduction set forth below. If however, the 1977
equalized | 9 | | assessed value upon which taxes were paid is subsequently | 10 | | determined
by local assessing officials, the Property Tax | 11 | | Appeal Board, or a court to have
been excessive, the equalized | 12 | | assessed value which should have been placed on
the property | 13 | | for 1977 shall be used to determine the amount of the | 14 | | exemption.
| 15 | | (b) Except as provided in Section 15-176, the maximum | 16 | | reduction before taxable year 2004 shall be
$4,500 in counties | 17 | | with 3,000,000 or more
inhabitants
and $3,500 in all other | 18 | | counties. Except as provided in Sections 15-176 and 15-177, for | 19 | | taxable years 2004 through 2007, the maximum reduction shall be | 20 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, | 21 | | and, for taxable years 2009 through 2011, the maximum reduction | 22 | | is $6,000 in all counties. For taxable years 2012 through 2016, | 23 | | the maximum reduction is $7,000 in counties with 3,000,000 or | 24 | | more
inhabitants
and $6,000 in all other counties. For taxable | 25 | | year years 2017 and thereafter , the maximum reduction is | 26 | | $10,000 in counties with 3,000,000 or more inhabitants and |
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| 1 | | $6,000 in all other counties. For taxable years 2018 and | 2 | | thereafter, the maximum reduction is $10,000 in all counties. | 3 | | If a county has elected to subject itself to the provisions of | 4 | | Section 15-176 as provided in subsection (k) of that Section, | 5 | | then, for the first taxable year only after the provisions of | 6 | | Section 15-176 no longer apply, for owners who, for the taxable | 7 | | year, have not been granted a senior citizens assessment freeze | 8 | | homestead exemption under Section 15-172 or a long-time | 9 | | occupant homestead exemption under Section 15-177, there shall | 10 | | be an additional exemption of $5,000 for owners with a | 11 | | household income of $30,000 or less.
| 12 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 13 | | based on the most
recent assessment, the equalized assessed | 14 | | value of
the homestead property for the current assessment year | 15 | | is greater than the
equalized assessed value of the property | 16 | | for 1977, the owner of the property
shall automatically receive | 17 | | the exemption granted under this Section in an
amount equal to | 18 | | the increase over the 1977 assessment up to the maximum
| 19 | | reduction set forth in this Section.
| 20 | | (d) If in any assessment year beginning with the 2000 | 21 | | assessment year,
homestead property has a pro-rata valuation | 22 | | under
Section 9-180 resulting in an increase in the assessed | 23 | | valuation, a reduction
in equalized assessed valuation equal to | 24 | | the increase in equalized assessed
value of the property for | 25 | | the year of the pro-rata valuation above the
equalized assessed | 26 | | value of the property for 1977 shall be applied to the
property |
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| 1 | | on a proportionate basis for the period the property qualified | 2 | | as
homestead property during the assessment year. The maximum | 3 | | proportionate
homestead exemption shall not exceed the maximum | 4 | | homestead exemption allowed in
the county under this Section | 5 | | divided by 365 and multiplied by the number of
days the | 6 | | property qualified as homestead property.
| 7 | | (d-1) In counties with 3,000,000 or more inhabitants, where | 8 | | the chief county assessment officer provides a notice of | 9 | | discovery, if a property is not
occupied by its owner as a | 10 | | principal residence as of January 1 of the current tax year, | 11 | | then the property owner shall notify the chief county | 12 | | assessment officer of that fact on a form prescribed by the | 13 | | chief county assessment officer. That notice must be received | 14 | | by the chief county assessment officer on or before March 1 of | 15 | | the collection year. If mailed, the form shall be sent by | 16 | | certified mail, return receipt requested. If the form is | 17 | | provided in person, the chief county assessment officer shall | 18 | | provide a date stamped copy of the notice. Failure to provide | 19 | | timely notice pursuant to this subsection (d-1) shall result in | 20 | | the exemption being treated as an erroneous exemption. Upon | 21 | | timely receipt of the notice for the current tax year, no | 22 | | exemption shall be applied to the property for the current tax | 23 | | year. If the exemption is not removed upon timely receipt of | 24 | | the notice by the chief assessment officer, then the error is | 25 | | considered granted as a result of a clerical error or omission | 26 | | on the part of the chief county assessment officer as described |
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| 1 | | in subsection (h) of Section 9-275, and the property owner | 2 | | shall not be liable for the payment of interest and penalties | 3 | | due to the erroneous exemption for the current tax year for | 4 | | which the notice was filed after the date that notice was | 5 | | timely received pursuant to this subsection. Notice provided | 6 | | under this subsection shall not constitute a defense or amnesty | 7 | | for prior year erroneous exemptions. | 8 | | For the purposes of this subsection (d-1): | 9 | | "Collection year" means the year in which the first and | 10 | | second installment of the current tax year is billed. | 11 | | "Current tax year" means the year prior to the collection | 12 | | year. | 13 | | (e) The chief county assessment officer may, when | 14 | | considering whether to grant a leasehold exemption under this | 15 | | Section, require the following conditions to be met: | 16 | | (1) that a notarized application for the exemption, | 17 | | signed by both the owner and the lessee of the property, | 18 | | must be submitted each year during the application period | 19 | | in effect for the county in which the property is located; | 20 | | (2) that a copy of the lease must be filed with the | 21 | | chief county assessment officer by the owner of the | 22 | | property at the time the notarized application is | 23 | | submitted; | 24 | | (3) that the lease must expressly state that the lessee | 25 | | is liable for the payment of property taxes; and | 26 | | (4) that the lease must include the following language |
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| 1 | | in substantially the following form: | 2 | | "Lessee shall be liable for the payment of real | 3 | | estate taxes with respect to the residence in | 4 | | accordance with the terms and conditions of Section | 5 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). | 6 | | The permanent real estate index number for the premises | 7 | | is (insert number), and, according to the most recent | 8 | | property tax bill, the current amount of real estate | 9 | | taxes associated with the premises is (insert amount) | 10 | | per year. The parties agree that the monthly rent set | 11 | | forth above shall be increased or decreased pro rata | 12 | | (effective January 1 of each calendar year) to reflect | 13 | | any increase or decrease in real estate taxes. Lessee | 14 | | shall be deemed to be satisfying Lessee's liability for | 15 | | the above mentioned real estate taxes with the monthly | 16 | | rent payments as set forth above (or increased or | 17 | | decreased as set forth herein).". | 18 | | In addition, if there is a change in lessee, or if the | 19 | | lessee vacates the property, then the chief county assessment | 20 | | officer may require the owner of the property to notify the | 21 | | chief county assessment officer of that change. | 22 | | This subsection (e) does not apply to leasehold interests | 23 | | in property owned by a municipality. | 24 | | (f) "Homestead property" under this Section includes | 25 | | residential property that is
occupied by its owner or owners as | 26 | | his or their principal dwelling place, or
that is a leasehold |
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| 1 | | interest on which a single family residence is situated,
which | 2 | | is occupied as a residence by a person who has an ownership | 3 | | interest
therein, legal or equitable or as a lessee, and on | 4 | | which the person is
liable for the payment of property taxes. | 5 | | For land improved with
an apartment building owned and operated | 6 | | as a cooperative or a building which
is a life care facility as | 7 | | defined in Section 15-170 and considered to
be a cooperative | 8 | | under Section 15-170, the maximum reduction from the equalized
| 9 | | assessed value shall be limited to the increase in the value | 10 | | above the
equalized assessed value of the property for 1977, up | 11 | | to
the maximum reduction set forth above, multiplied by the | 12 | | number of apartments
or units occupied by a person or persons | 13 | | who is liable, by contract with the
owner or owners of record, | 14 | | for paying property taxes on the property and is an
owner of | 15 | | record of a legal or equitable interest in the cooperative
| 16 | | apartment building, other than a leasehold interest. For | 17 | | purposes of this
Section, the term "life care facility" has the | 18 | | meaning stated in Section
15-170.
| 19 | | "Household", as used in this Section,
means the owner, the | 20 | | spouse of the owner, and all persons using
the
residence of the | 21 | | owner as their principal place of residence.
| 22 | | "Household income", as used in this Section,
means the | 23 | | combined income of the members of a household
for the calendar | 24 | | year preceding the taxable year.
| 25 | | "Income", as used in this Section,
has the same meaning as | 26 | | provided in Section 3.07 of the Senior
Citizens
and Persons |
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| 1 | | with Disabilities Property Tax Relief Act,
except that
"income" | 2 | | does not include veteran's benefits.
| 3 | | (g) In a cooperative where a homestead exemption has been | 4 | | granted, the
cooperative association or its management firm | 5 | | shall credit the savings
resulting from that exemption only to | 6 | | the apportioned tax liability of the
owner who qualified for | 7 | | the exemption. Any person who willfully refuses to so
credit | 8 | | the savings shall be guilty of a Class B misdemeanor.
| 9 | | (h) Where married persons maintain and reside in separate | 10 | | residences qualifying
as homestead property, each residence | 11 | | shall receive 50% of the total reduction
in equalized assessed | 12 | | valuation provided by this Section.
| 13 | | (i) In all counties, the assessor
or chief county | 14 | | assessment officer may determine the
eligibility of | 15 | | residential property to receive the homestead exemption and the | 16 | | amount of the exemption by
application, visual inspection, | 17 | | questionnaire or other reasonable methods. The
determination | 18 | | shall be made in accordance with guidelines established by the
| 19 | | Department, provided that the taxpayer applying for an | 20 | | additional general exemption under this Section shall submit to | 21 | | the chief county assessment officer an application with an | 22 | | affidavit of the applicant's total household income, age, | 23 | | marital status (and, if married, the name and address of the | 24 | | applicant's spouse, if known), and principal dwelling place of | 25 | | members of the household on January 1 of the taxable year. The | 26 | | Department shall issue guidelines establishing a method for |
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| 1 | | verifying the accuracy of the affidavits filed by applicants | 2 | | under this paragraph. The applications shall be clearly marked | 3 | | as applications for the Additional General Homestead | 4 | | Exemption.
| 5 | | (i-5) This subsection (i-5) applies to counties with | 6 | | 3,000,000 or more inhabitants. In the event of a sale of
| 7 | | homestead property, the homestead exemption shall remain in | 8 | | effect for the remainder of the assessment year of the sale. | 9 | | Upon receipt of a transfer declaration transmitted by the | 10 | | recorder pursuant to Section 31-30 of the Real Estate Transfer | 11 | | Tax Law for property receiving an exemption under this Section, | 12 | | the assessor shall mail a notice and forms to the new owner of | 13 | | the property providing information pertaining to the rules and | 14 | | applicable filing periods for applying or reapplying for | 15 | | homestead exemptions under this Code for which the property may | 16 | | be eligible. If the new owner fails to apply or reapply for a | 17 | | homestead exemption during the applicable filing period or the | 18 | | property no longer qualifies for an existing homestead | 19 | | exemption, the assessor shall cancel such exemption for any | 20 | | ensuing assessment year. | 21 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 22 | | the event of a sale
of
homestead property the homestead | 23 | | exemption shall remain in effect for the
remainder of the | 24 | | assessment year of the sale. The assessor or chief county
| 25 | | assessment officer may require the new
owner of the property to | 26 | | apply for the homestead exemption for the following
assessment |
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| 1 | | year.
| 2 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 3 | | Act, no reimbursement by the State is required for the | 4 | | implementation of any mandate created by this Section.
| 5 | | (Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15; | 6 | | 99-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff. | 7 | | 8-25-17.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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