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90_HB3895
35 ILCS 200/15-170
35 ILCS 200/15-175
30 ILCS 805/8.23 new
Amends the Property Tax Code concerning the senior
citizens homestead exemption and the general homestead
exemption. Provides that the maximum amount of the
exemptions shall be adjusted annually by the Department of
Revenue to reflect increases in the federal Consumer Price
Index. Exempts this Act from the requirements of the State
Mandates Act. Effective immediately.
LRB9013101PTbd
LRB9013101PTbd
1 AN ACT concerning property taxes.
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, to a maximum reduction set
10 forth below from the property's value, as equalized or
11 assessed by the Department, is granted for property that is
12 occupied as a residence by a person 65 years of age or older
13 who is liable for paying real estate taxes on the property
14 and is an owner of record of the property or has a legal or
15 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
21 for the payment of property taxes. The maximum reduction
22 shall be $2,500 in counties with 3,000,000 or more
23 inhabitants and $2,000 in all other counties, provided that
24 the maximum reduction shall be adjusted annually by the
25 Department of Revenue to reflect increases in the Consumer
26 Price Index reported by the Bureau of Labor Statistics of
27 the federal Department of Labor or its successor agency. If
28 this Consumer Price Index ceases to be reported, then the
29 Department of Revenue shall use a comparable substitute
30 index. For land improved with an apartment building owned
31 and operated as a cooperative or a building which is a life
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1 care facility which shall be considered to be a cooperative,
2 the maximum reduction from the value of the property, as
3 equalized by the Department, shall be multiplied by the
4 number of apartments or units occupied by a person 65 years
5 of age or older who is liable, by contract with the owner or
6 owners of record, for paying property taxes on the property
7 and is an owner of record of a legal or equitable interest in
8 the cooperative apartment building, other than a leasehold
9 interest. In a cooperative where a homestead exemption has
10 been granted, the cooperative association or its management
11 firm shall credit the savings resulting from that exemption
12 only to the apportioned tax liability of the owner who
13 qualified for the exemption. Any person who willfully
14 refuses to so credit the savings shall be guilty of a Class B
15 misdemeanor. Under this Section and Section 15-175, "life
16 care facility" means a facility as defined in Section 2 of
17 the Life Care Facilities Act, with which the applicant for
18 the homestead exemption has a life care contract as defined
19 in that Act, which requires the applicant to pay property
20 taxes.
21 When a homestead exemption has been granted under this
22 Section and the person qualifying subsequently becomes a
23 resident of a facility licensed under the Nursing Home Care
24 Act, the exemption shall continue so long as the residence
25 continues to be occupied by the qualifying person's spouse if
26 the spouse is 65 years of age or older, or if the residence
27 remains unoccupied but is still owned by the person qualified
28 for the homestead exemption.
29 A person who will be 65 years of age during the current
30 assessment year shall be eligible to apply for the homestead
31 exemption during that assessment year. Application shall be
32 made during the application period in effect for the county
33 of his residence.
34 The assessor or chief county assessment officer may
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1 determine the eligibility of a life care facility to receive
2 the benefits provided by this Section, by affidavit,
3 application, visual inspection, questionnaire or other
4 reasonable methods in order to insure that the tax savings
5 resulting from the exemption are credited by the management
6 firm to the apportioned tax liability of each qualifying
7 resident. The assessor may request reasonable proof that the
8 management firm has so credited the exemption.
9 The chief county assessment officer of each county with
10 less than 3,000,000 inhabitants shall provide to each person
11 allowed a homestead exemption under this Section a form to
12 designate any other person to receive a duplicate of any
13 notice of delinquency in the payment of taxes assessed and
14 levied under this Code on the property of the person
15 receiving the exemption. The duplicate notice shall be in
16 addition to the notice required to be provided to the person
17 receiving the exemption, and shall be given in the manner
18 required by this Code. The person filing the request for the
19 duplicate notice shall pay a fee of $5 to cover
20 administrative costs to the supervisor of assessments, who
21 shall then file the executed designation with the county
22 collector. Notwithstanding any other provision of this Code
23 to the contrary, the filing of such an executed designation
24 requires the county collector to provide duplicate notices as
25 indicated by the designation. A designation may be rescinded
26 by the person who executed such designation at any time, in
27 the manner and form required by the chief county assessment
28 officer.
29 The assessor or chief county assessment officer may
30 determine the eligibility of residential property to receive
31 the homestead exemption provided by this Section by
32 application, visual inspection, questionnaire or other
33 reasonable methods. The determination shall be made in
34 accordance with guidelines established by the Department.
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1 In counties with less than 3,000,000 inhabitants, the
2 county board may by resolution provide that if a person has
3 been granted a homestead exemption under this Section, the
4 person qualifying need not reapply for the exemption.
5 In counties with less than 3,000,000 inhabitants, if the
6 assessor or chief county assessment officer requires annual
7 application for verification of eligibility for an exemption
8 once granted under this Section, the application shall be
9 mailed to the taxpayer.
10 The assessor or chief county assessment officer shall
11 notify each person who qualifies for an exemption under this
12 Section that the person may also qualify for deferral of real
13 estate taxes under the Senior Citizens Real Estate Tax
14 Deferral Act. The notice shall set forth the qualifications
15 needed for deferral of real estate taxes, the address and
16 telephone number of county collector, and a statement that
17 applications for deferral of real estate taxes may be
18 obtained from the county collector.
19 (Source: P.A. 89-412, eff. 11-17-95; 90-471, eff. 8-17-97.)
20 (35 ILCS 200/15-175)
21 Sec. 15-175. General homestead exemption. Homestead
22 property is entitled to an annual homestead exemption
23 limited, except as described here with relation to
24 cooperatives, to a reduction in the equalized assessed value
25 of homestead property equal to the increase in equalized
26 assessed value for the current assessment year above the
27 equalized assessed value of the property for 1977, up to the
28 maximum reduction set forth below. If however, the 1977
29 equalized assessed value upon which taxes were paid is
30 subsequently determined by local assessing officials, the
31 Property Tax Appeal Board, or a court to have been excessive,
32 the equalized assessed value which should have been placed on
33 the property for 1977 shall be used to determine the amount
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1 of the exemption.
2 The maximum reduction shall be $4,500 in counties with
3 3,000,000 or more inhabitants and $3,500 in all other
4 counties, provided that the maximum reduction shall be
5 adjusted annually by the Department of Revenue to reflect
6 increases in the Consumer Price Index reported by the Bureau
7 of Labor Statistics of the federal Department of Labor or
8 its successor agency. If this Consumer Price Index ceases to
9 be reported, then the Department of Revenue shall use a
10 comparable substitute index.
11 In counties with fewer than 3,000,000 inhabitants, if,
12 based on the most recent assessment, the equalized assessed
13 value of the homestead property for the current assessment
14 year is greater than the equalized assessed value of the
15 property for 1977, the owner of the property shall
16 automatically receive the exemption granted under this
17 Section in an amount equal to the increase over the 1977
18 assessment up to the maximum reduction set forth in this
19 Section.
20 "Homestead property" under this Section includes
21 residential property that is occupied by its owner or owners
22 as his or their principal dwelling place, or that is a
23 leasehold interest on which a single family residence is
24 situated, which is occupied as a residence by a person who
25 has an ownership interest therein, legal or equitable or as a
26 lessee, and on which the person is liable for the payment of
27 property taxes. For land improved with an apartment building
28 owned and operated as a cooperative or a building which is a
29 life care facility as defined in Section 15-170 and
30 considered to be a cooperative under Section 15-170, the
31 maximum reduction from the equalized assessed value shall be
32 limited to the increase in the value above the equalized
33 assessed value of the property for 1977, up to the maximum
34 reduction set forth above, multiplied by the number of
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1 apartments or units occupied by a person or persons who is
2 liable, by contract with the owner or owners of record, for
3 paying property taxes on the property and is an owner of
4 record of a legal or equitable interest in the cooperative
5 apartment building, other than a leasehold interest. For
6 purposes of this Section, the term "life care facility" has
7 the meaning stated in Section 15-170.
8 In a cooperative where a homestead exemption has been
9 granted, the cooperative association or its management firm
10 shall credit the savings resulting from that exemption only
11 to the apportioned tax liability of the owner who qualified
12 for the exemption. Any person who willfully refuses to so
13 credit the savings shall be guilty of a Class B misdemeanor.
14 Where married persons maintain and reside in separate
15 residences qualifying as homestead property, each residence
16 shall receive 50% of the total reduction in equalized
17 assessed valuation provided by this Section.
18 In counties with more than 3,000,000 inhabitants, the
19 assessor or chief county assessment officer may determine the
20 eligibility of residential property to receive the homestead
21 exemption by application, visual inspection, questionnaire or
22 other reasonable methods. The determination shall be made in
23 accordance with guidelines established by the Department. In
24 counties with fewer than 3,000,000 inhabitants, in the event
25 of a sale of homestead property the homestead exemption shall
26 remain in effect for the remainder of the assessment year of
27 the sale. The assessor or chief county assessment officer
28 may require the new owner of the property to apply for the
29 homestead exemption for the following assessment year.
30 (Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
31 90-655, eff. 7-30-98.)
32 Section 90. The State Mandates Act is amended by adding
33 Section 8.23 as follows:
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1 (30 ILCS 805/8.23 new)
2 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1998.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.