Full Text of HB6294 98th General Assembly
HB6294 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB6294 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/15-175 | | 35 ILCS 200/15-177 | |
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Amends the Property Tax Code. Provides that the general homestead exemption amount and the long-time occupant homestead exemption amount shall be doubled for homestead property that is negatively affected by aircraft noise from Chicago O'Hare
International Airport. 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 15-175 and 15-177 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 | 11 | | cooperatives, to a reduction in the equalized assessed value
of | 12 | | homestead property equal to the increase in equalized assessed | 13 | | value for the
current assessment year above the equalized | 14 | | assessed value of the property for
1977, up to the maximum | 15 | | reduction set forth below. If however, the 1977
equalized | 16 | | assessed value upon which taxes were paid is subsequently | 17 | | determined
by local assessing officials, the Property Tax | 18 | | Appeal Board, or a court to have
been excessive, the equalized | 19 | | assessed value which should have been placed on
the property | 20 | | for 1977 shall be used to determine the amount of the | 21 | | 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 and | 7 | | thereafter, the maximum reduction is $7,000 in counties with | 8 | | 3,000,000 or more
inhabitants
and $6,000 in all other counties. | 9 | | If a county has elected to subject itself to the provisions of | 10 | | Section 15-176 as provided in subsection (k) of that Section, | 11 | | then, for the first taxable year only after the provisions of | 12 | | Section 15-176 no longer apply, for owners who, for the taxable | 13 | | year, have not been granted a senior citizens assessment freeze | 14 | | homestead exemption under Section 15-172 or a long-time | 15 | | occupant homestead exemption under Section 15-177, there shall | 16 | | be an additional exemption of $5,000 for owners with a | 17 | | household income of $30,000 or less.
| 18 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 19 | | based on the most
recent assessment, the equalized assessed | 20 | | value of
the homestead property for the current assessment year | 21 | | is greater than the
equalized assessed value of the property | 22 | | for 1977, the owner of the property
shall automatically receive | 23 | | the exemption granted under this Section in an
amount equal to | 24 | | the increase over the 1977 assessment up to the maximum
| 25 | | reduction set forth in this Section.
| 26 | | (d) If in any assessment year beginning with the 2000 |
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| 1 | | assessment year,
homestead property has a pro-rata valuation | 2 | | under
Section 9-180 resulting in an increase in the assessed | 3 | | valuation, a reduction
in equalized assessed valuation equal to | 4 | | the increase in equalized assessed
value of the property for | 5 | | the year of the pro-rata valuation above the
equalized assessed | 6 | | value of the property for 1977 shall be applied to the
property | 7 | | on a proportionate basis for the period the property qualified | 8 | | as
homestead property during the assessment year. The maximum | 9 | | proportionate
homestead exemption shall not exceed the maximum | 10 | | homestead exemption allowed in
the county under this Section | 11 | | divided by 365 and multiplied by the number of
days the | 12 | | property qualified as homestead property.
| 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 | | (e-5) Notwithstanding any other provision of law, and | 25 | | notwithstanding the limitations set forth in subsection (b), | 26 | | beginning in assessment year 2014, if homestead property is |
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| 1 | | negatively affected by aircraft noise from Chicago O'Hare
| 2 | | International Airport, then the amount of the exemption for | 3 | | that property shall be the amount of the exemption otherwise | 4 | | provided under this Section for that property, multiplied by 2. | 5 | | For the purposes of this subsection (e-5), property is | 6 | | negatively affected by aircraft noise from Chicago O'Hare
| 7 | | International Airport if the property routinely experiences | 8 | | aircraft noise of 65 decibels or more, and that aircraft noise | 9 | | is directly attributable to flight patterns at Chicago O'Hare
| 10 | | International Airport. The assessor or chief county assessment | 11 | | officer may determine the eligibility of residential property | 12 | | to receive the double homestead exemption under this subsection | 13 | | by application, visual inspection, questionnaire, or other | 14 | | reasonable methods. The determination shall be made in | 15 | | accordance with guidelines established by the Department, | 16 | | provided that the taxpayer applying for a double homestead | 17 | | exemption under this subsection shall submit to the chief | 18 | | county assessment officer, along with the taxpayer's original | 19 | | homestead exemption application, additional documentation | 20 | | establishing that the property is negatively affected by | 21 | | aircraft noise from Chicago O'Hare
International Airport. | 22 | | (f) "Homestead property" under this Section includes | 23 | | residential property that is
occupied by its owner or owners as | 24 | | his or their principal dwelling place, or
that is a leasehold | 25 | | interest on which a single family residence is situated,
which | 26 | | is occupied as a residence by a person who has an ownership |
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| 1 | | interest
therein, legal or equitable or as a lessee, and on | 2 | | which the person is
liable for the payment of property taxes. | 3 | | For land improved with
an apartment building owned and operated | 4 | | as a cooperative or a building which
is a life care facility as | 5 | | defined in Section 15-170 and considered to
be a cooperative | 6 | | under Section 15-170, the maximum reduction from the equalized
| 7 | | assessed value shall be limited to the increase in the value | 8 | | above the
equalized assessed value of the property for 1977, up | 9 | | to
the maximum reduction set forth above, multiplied by the | 10 | | number of apartments
or units occupied by a person or persons | 11 | | who is liable, by contract with the
owner or owners of record, | 12 | | for paying property taxes on the property and is an
owner of | 13 | | record of a legal or equitable interest in the cooperative
| 14 | | apartment building, other than a leasehold interest. For | 15 | | purposes of this
Section, the term "life care facility" has the | 16 | | meaning stated in Section
15-170.
| 17 | | "Household", as used in this Section,
means the owner, the | 18 | | spouse of the owner, and all persons using
the
residence of the | 19 | | owner as their principal place of residence.
| 20 | | "Household income", as used in this Section,
means the | 21 | | combined income of the members of a household
for the calendar | 22 | | year preceding the taxable year.
| 23 | | "Income", as used in this Section,
has the same meaning as | 24 | | provided in Section 3.07 of the Senior
Citizens
and Disabled | 25 | | Persons Property Tax Relief Act,
except that
"income" does not | 26 | | include veteran's benefits.
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| 1 | | (g) In a cooperative where a homestead exemption has been | 2 | | granted, the
cooperative association or its management firm | 3 | | shall credit the savings
resulting from that exemption only to | 4 | | the apportioned tax liability of the
owner who qualified for | 5 | | the exemption. Any person who willfully refuses to so
credit | 6 | | the savings shall be guilty of a Class B misdemeanor.
| 7 | | (h) Where married persons maintain and reside in separate | 8 | | residences qualifying
as homestead property, each residence | 9 | | shall receive 50% of the total reduction
in equalized assessed | 10 | | valuation provided by this Section.
| 11 | | (i) In all counties, the assessor
or chief county | 12 | | assessment officer may determine the
eligibility of | 13 | | residential property to receive the homestead exemption and the | 14 | | amount of the exemption by
application, visual inspection, | 15 | | questionnaire or other reasonable methods. The
determination | 16 | | shall be made in accordance with guidelines established by the
| 17 | | Department, provided that the taxpayer applying for an | 18 | | additional general exemption under this Section shall submit to | 19 | | the chief county assessment officer an application with an | 20 | | affidavit of the applicant's total household income, age, | 21 | | marital status (and, if married, the name and address of the | 22 | | applicant's spouse, if known), and principal dwelling place of | 23 | | members of the household on January 1 of the taxable year. The | 24 | | Department shall issue guidelines establishing a method for | 25 | | verifying the accuracy of the affidavits filed by applicants | 26 | | under this paragraph. The applications shall be clearly marked |
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| 1 | | as applications for the Additional General Homestead | 2 | | Exemption.
| 3 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 4 | | the event of a sale
of
homestead property the homestead | 5 | | exemption shall remain in effect for the
remainder of the | 6 | | assessment year of the sale. The assessor or chief county
| 7 | | assessment officer may require the new
owner of the property to | 8 | | apply for the homestead exemption for the following
assessment | 9 | | year.
| 10 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 11 | | Act, no reimbursement by the State is required for the | 12 | | implementation of any mandate created by this Section.
| 13 | | (Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12; | 14 | | 98-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
| 15 | | (35 ILCS 200/15-177) | 16 | | Sec. 15-177. The long-time occupant homestead exemption. | 17 | | (a) If the county has elected, under Section 15-176, to be | 18 | | subject to the provisions of the alternative general homestead | 19 | | exemption, then, for taxable years 2007 and thereafter, | 20 | | regardless of whether the exemption under Section 15-176 | 21 | | applies, qualified homestead property is
entitled to
an annual | 22 | | homestead exemption equal to a reduction in the property's | 23 | | equalized
assessed
value calculated as provided in this | 24 | | Section. | 25 | | (b) As used in this Section: |
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| 1 | | "Adjusted homestead value" means the lesser of
the | 2 | | following values: | 3 | | (1) The property's base homestead value increased
by: | 4 | | (i) 10% for each taxable year after the base year through | 5 | | and including the current tax year for qualified taxpayers | 6 | | with a household income of more than $75,000 but not | 7 | | exceeding $100,000; or (ii) 7% for each taxable year after | 8 | | the base year through and including the current tax year | 9 | | for qualified taxpayers with a household income of $75,000 | 10 | | or less. The increase each year is an increase over the | 11 | | prior year; or | 12 | | (2) The property's equalized assessed value for
the | 13 | | current tax year minus the general homestead deduction. | 14 | | "Base homestead value" means: | 15 | | (1) if the property did not have an adjusted homestead | 16 | | value under Section 15-176 for the base year, then an | 17 | | amount equal to the equalized assessed value of the | 18 | | property for the base year prior to exemptions, minus the | 19 | | general homestead deduction, provided that the property's | 20 | | assessment was not based on a reduced assessed value | 21 | | resulting from a temporary irregularity in the property for | 22 | | that year; or | 23 | | (2) if the property had an adjusted homestead value | 24 | | under Section 15-176 for the base year, then an amount | 25 | | equal to the adjusted homestead value of the property under | 26 | | Section 15-176 for the base year. |
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| 1 | | "Base year" means the taxable year prior to the taxable | 2 | | year in which the taxpayer first qualifies for the exemption | 3 | | under this Section. | 4 | | "Current taxable year" means the taxable year for which
the | 5 | | exemption under this Section is being applied. | 6 | | "Equalized assessed value" means the property's
assessed | 7 | | value as equalized by the Department. | 8 | | "Homestead" or "homestead property" means residential | 9 | | property that as of January 1 of
the tax year is occupied by a | 10 | | qualified taxpayer as his or her principal dwelling place, or | 11 | | that is a leasehold interest on which a single family residence | 12 | | is situated, that is occupied as a residence by a qualified | 13 | | taxpayer who has a legal or equitable interest therein | 14 | | evidenced by a written instrument, as an owner or as a lessee, | 15 | | and on which the person is liable for the payment of property | 16 | | taxes. Residential units in an apartment building owned and | 17 | | operated as a cooperative, or as a life care facility, which | 18 | | are occupied by persons who hold a legal or equitable interest | 19 | | in the cooperative apartment building or life care facility as | 20 | | owners or lessees, and who are liable by contract for the | 21 | | payment of property taxes, are included within this definition | 22 | | of homestead property. A homestead includes the dwelling place,
| 23 | | appurtenant structures, and so much of the surrounding land | 24 | | constituting the parcel on which the dwelling place is situated | 25 | | as is used for residential purposes. If the assessor has | 26 | | established a specific legal description for a portion of |
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| 1 | | property constituting the homestead, then the homestead is | 2 | | limited to the property within that description. | 3 | | "Household income" has the meaning set forth under Section | 4 | | 15-172 of this Code.
| 5 | | "General homestead deduction" means the amount of the | 6 | | general homestead exemption under Section 15-175.
| 7 | | "Life care facility" means a facility defined
in Section 2 | 8 | | of the Life Care Facilities Act. | 9 | | "Qualified homestead property" means homestead property | 10 | | owned by a qualified taxpayer.
| 11 | | "Qualified taxpayer" means any individual: | 12 | | (1) who, for at least 10 continuous years as of January | 13 | | 1 of the taxable year, has occupied the same homestead | 14 | | property as a principal residence and domicile or who, for | 15 | | at least 5 continuous years as of January 1 of the taxable | 16 | | year, has occupied the same homestead property as a | 17 | | principal residence and domicile if that person received | 18 | | assistance in the acquisition of the property as part of a | 19 | | government or nonprofit housing program; and | 20 | | (2) who has a household income of $100,000 or less.
| 21 | | (c) The base homestead value must remain constant, except | 22 | | that the assessor may revise it under any of the following | 23 | | circumstances: | 24 | | (1) If the equalized assessed value of a homestead
| 25 | | property for the current tax year is less than the previous | 26 | | base homestead value for that property, then the current |
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| 1 | | equalized assessed value (provided it is not based on a | 2 | | reduced assessed value resulting from a temporary | 3 | | irregularity in the property) becomes the base homestead | 4 | | value in subsequent tax years. | 5 | | (2) For any year in which new buildings, structures,
or | 6 | | other improvements are constructed on the homestead | 7 | | property that would increase its assessed value, the | 8 | | assessor shall adjust the base homestead value with due | 9 | | regard to the value added by the new improvements. | 10 | | (d) The amount of the exemption under this Section is the | 11 | | greater of: (i) the equalized assessed value of the homestead | 12 | | property for the current tax year minus the adjusted homestead | 13 | | value; or (ii) the general homestead deduction. | 14 | | (d-5) Notwithstanding any other provision of law, if | 15 | | qualified homestead property is negatively affected by | 16 | | aircraft noise from Chicago O'Hare
International Airport, as | 17 | | provided in subsection (e-5) of Section 15-175, then the amount | 18 | | of the exemption for that property shall be the greater of: (i) | 19 | | the difference between the equalized assessed value of the | 20 | | homestead property for the current tax year and the adjusted | 21 | | homestead value, multiplied by 2; or (ii) the general homestead | 22 | | deduction calculated under subsection (e-5) of Section 15-175. | 23 | | The assessor or chief county assessment officer may determine | 24 | | the eligibility of residential property to receive the double | 25 | | homestead exemption under this subsection by application, | 26 | | visual inspection, questionnaire, or other reasonable methods. |
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| 1 | | The determination shall be made in accordance with guidelines | 2 | | established by the Department, provided that the taxpayer | 3 | | applying for a double homestead exemption under this subsection | 4 | | shall submit to the chief county assessment officer, along with | 5 | | the taxpayer's original homestead exemption application, | 6 | | additional documentation establishing that the property is | 7 | | negatively affected by aircraft noise from Chicago O'Hare
| 8 | | International Airport. | 9 | | (e) In the case of an apartment building owned and operated | 10 | | as a cooperative, or as a life care facility, that contains | 11 | | residential units that qualify as homestead property of a | 12 | | qualified taxpayer under this Section, the maximum cumulative | 13 | | exemption amount attributed to the entire building or facility | 14 | | shall not exceed the sum of the exemptions calculated for each | 15 | | unit that is a qualified homestead property. The cooperative | 16 | | association, management firm, or other person or entity that | 17 | | manages or controls the cooperative apartment building or life | 18 | | care facility shall credit the exemption attributable to each | 19 | | residential unit only to the apportioned tax liability of the | 20 | | qualified taxpayer as to that unit. Any person who willfully | 21 | | refuses to so credit the exemption is guilty of a Class B | 22 | | misdemeanor. | 23 | | (f) When married persons maintain separate residences, the | 24 | | exemption provided under this Section may be claimed by only | 25 | | one such person and for only one residence. No person who | 26 | | receives an exemption under Section 15-172 of this Code may |
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| 1 | | receive an exemption under this Section. No person who receives | 2 | | an exemption under this Section may receive an exemption under | 3 | | Section 15-175 or 15-176 of this Code. | 4 | | (g) In the event of a sale or other transfer in ownership | 5 | | of the homestead property between spouses or between a parent | 6 | | and a child, the exemption under this Section remains in effect | 7 | | if the new owner has a household income of $100,000 or less. | 8 | | (h) In the event of a sale or other transfer in ownership | 9 | | of the homestead property other than subsection (g) of this | 10 | | Section, the exemption under this Section shall remain in | 11 | | effect for the remainder of the tax year and be calculated | 12 | | using the same base homestead value in which the sale or | 13 | | transfer occurs.
| 14 | | (i) To receive the exemption, a person must submit an | 15 | | application to the county assessor during the period specified | 16 | | by the county assessor. | 17 | | The county assessor shall annually give notice of the | 18 | | application period by mail or by publication. | 19 | | The taxpayer must submit, with the application, an | 20 | | affidavit of the taxpayer's total household income, marital | 21 | | status (and if married the name and address of the applicant's | 22 | | spouse, if known), and principal dwelling place of members of | 23 | | the household on January 1 of the taxable year. The Department | 24 | | shall establish, by rule, a method for verifying the accuracy | 25 | | of affidavits filed by applicants under this Section, and the | 26 | | Chief County Assessment Officer may conduct audits of any |
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| 1 | | taxpayer claiming an exemption under this Section to verify | 2 | | that the taxpayer is eligible to receive the exemption. Each | 3 | | application shall contain or be verified by a written | 4 | | declaration that it is made under the penalties of perjury. A | 5 | | taxpayer's signing a fraudulent application under this Act is | 6 | | perjury, as defined in Section 32-2 of the Criminal Code of | 7 | | 2012. The applications shall be clearly marked as applications | 8 | | for the Long-time Occupant Homestead Exemption and must contain | 9 | | a notice that any taxpayer who receives the exemption is | 10 | | subject to an audit by the Chief County Assessment Officer. | 11 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates | 12 | | Act, no reimbursement by the State is required for the | 13 | | implementation of any mandate created by this Section.
| 14 | | (Source: P.A. 97-1150, eff. 1-25-13.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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