Sen. Emil Jones, III

Filed: 3/3/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 631

2    AMENDMENT NO. ______. Amend Senate Bill 631 by replacing
3everything after the enacting clause with the following:
 
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 exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently

 

 

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1determined by local assessing officials, the Property Tax
2Appeal Board, or a court to have been excessive, the equalized
3assessed value which should have been placed on the property
4for 1977 shall be used to determine the amount of the
5exemption.
6    (b) Except as provided in Section 15-176, the maximum
7reduction before taxable year 2004 shall be $4,500 in counties
8with 3,000,000 or more inhabitants and $3,500 in all other
9counties. Except as provided in Sections 15-176 and 15-177, for
10taxable years 2004 through 2007, the maximum reduction shall be
11$5,000, for taxable year 2008, the maximum reduction is $5,500,
12and, for taxable years 2009 through 2011, the maximum reduction
13is $6,000 in all counties. For taxable years 2012 and
14thereafter, the maximum reduction is $7,000 in counties with
153,000,000 or more inhabitants and $6,000 in all other counties.
16If a county has elected to subject itself to the provisions of
17Section 15-176 as provided in subsection (k) of that Section,
18then, for the first taxable year only after the provisions of
19Section 15-176 no longer apply, for owners who, for the taxable
20year, have not been granted a senior citizens assessment freeze
21homestead exemption under Section 15-172 or a long-time
22occupant homestead exemption under Section 15-177, there shall
23be an additional exemption of $5,000 for owners with a
24household income 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 year
2is greater than the equalized assessed value of the property
3for 1977, the owner of the property shall automatically receive
4the exemption granted under this Section in an amount equal to
5the increase over the 1977 assessment up to the maximum
6reduction 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 to
11the increase in equalized assessed value of the property for
12the year of the pro-rata valuation above the equalized assessed
13value of the property for 1977 shall be applied to the property
14on a proportionate basis for the period the property qualified
15as homestead property during the assessment year. The maximum
16proportionate homestead exemption shall not exceed the maximum
17homestead exemption allowed in the county under this Section
18divided by 365 and multiplied by the number of days the
19property qualified as homestead property.
20    (d-1) In counties with 3,000,000 or more inhabitants, where
21the 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 in
7the 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 described
14in subsection (h) of Section 9-275, and the property owner
15shall not be liable for the payment of interest and penalties
16due to the erroneous exemption for the current tax year for
17which the notice was filed after the date that notice was
18timely received pursuant to this subsection. If an exemption is
19applied after timely receipt of the notice, upon request of the
20property owner, the exemption shall be removed prior to the
21final installment due date as specified on the real estate tax
22bill. Notice provided under this subsection shall not
23constitute a defense or amnesty for prior year erroneous
24exemptions.
25    For the purposes of this subsection (d-1):
26    "Collection year" means the year in which the first and

 

 

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

 

 

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1        per year. The parties agree that the monthly rent set
2        forth above shall be increased or decreased pro rata
3        (effective January 1 of each calendar year) to reflect
4        any increase or decrease in real estate taxes. Lessee
5        shall be deemed to be satisfying Lessee's liability for
6        the above mentioned real estate taxes with the monthly
7        rent payments as set forth above (or increased or
8        decreased as set forth herein).".
9    In addition, if there is a change in lessee, or if the
10lessee vacates the property, then the chief county assessment
11officer may require the owner of the property to notify the
12chief county assessment officer of that change.
13    This subsection (e) does not apply to leasehold interests
14in property owned by a municipality.
15    (f) "Homestead property" under this Section includes
16residential property that is occupied by its owner or owners as
17his or their principal dwelling place, or that is a leasehold
18interest on which a single family residence is situated, which
19is occupied as a residence by a person who has an ownership
20interest therein, legal or equitable or as a lessee, and on
21which the person is liable for the payment of property taxes.
22For land improved with an apartment building owned and operated
23as a cooperative or a building which is a life care facility as
24defined in Section 15-170 and considered to be a cooperative
25under Section 15-170, the maximum reduction from the equalized
26assessed value shall be limited to the increase in the value

 

 

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1above the equalized assessed value of the property for 1977, up
2to the maximum reduction set forth above, multiplied by the
3number of apartments or units occupied by a person or persons
4who is liable, by contract with the owner or owners of record,
5for paying property taxes on the property and is an owner of
6record of a legal or equitable interest in the cooperative
7apartment building, other than a leasehold interest. For
8purposes of this Section, the term "life care facility" has the
9meaning stated in Section 15-170.
10    "Household", as used in this Section, means the owner, the
11spouse of the owner, and all persons using the residence of the
12owner as their principal place of residence.
13    "Household income", as used in this Section, means the
14combined income of the members of a household for the calendar
15year preceding the taxable year.
16    "Income", as used in this Section, has the same meaning as
17provided in Section 3.07 of the Senior Citizens and Persons
18with Disabilities Property Tax Relief Act, except that "income"
19does not include veteran's benefits.
20    (g) In a cooperative where a homestead exemption has been
21granted, the cooperative association or its management firm
22shall credit the savings resulting from that exemption only to
23the apportioned tax liability of the owner who qualified for
24the exemption. Any person who willfully refuses to so credit
25the savings shall be guilty of a Class B misdemeanor.
26    (h) Where married persons maintain and reside in separate

 

 

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1residences qualifying as homestead property, each residence
2shall receive 50% of the total reduction in equalized assessed
3valuation provided by this Section.
4    (i) In all counties, the assessor or chief county
5assessment officer may determine the eligibility of
6residential property to receive the homestead exemption and the
7amount of the exemption by application, visual inspection,
8questionnaire or other reasonable methods. The determination
9shall be made in accordance with guidelines established by the
10Department, provided that the taxpayer applying for an
11additional general exemption under this Section shall submit to
12the chief county assessment officer an application with an
13affidavit of the applicant's total household income, age,
14marital status (and, if married, the name and address of the
15applicant's spouse, if known), and principal dwelling place of
16members of the household on January 1 of the taxable year. The
17Department shall issue guidelines establishing a method for
18verifying the accuracy of the affidavits filed by applicants
19under this paragraph. The applications shall be clearly marked
20as applications for the Additional General Homestead
21Exemption.
22    (i-5) This subsection (i-5) applies to counties with
233,000,000 or more inhabitants. In the event of a sale of
24homestead property, the homestead exemption shall remain in
25effect for the remainder of the assessment year of the sale.
26Upon receipt of a transfer declaration transmitted by the

 

 

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1recorder pursuant to Section 31-30 of the Real Estate Transfer
2Tax Law for property receiving an exemption under this Section,
3the assessor shall mail a notice and forms to the new owner of
4the property providing information pertaining to the rules and
5applicable filing periods for applying or reapplying for
6homestead exemptions under this Code for which the property may
7be eligible. If the new owner fails to apply or reapply for a
8homestead exemption during the applicable filing period or the
9property no longer qualifies for an existing homestead
10exemption, the assessor shall cancel such exemption for any
11ensuing assessment year.
12    (j) In counties with fewer than 3,000,000 inhabitants, in
13the event of a sale of homestead property the homestead
14exemption shall remain in effect for the remainder of the
15assessment year of the sale. The assessor or chief county
16assessment officer may require the new owner of the property to
17apply for the homestead exemption for the following assessment
18year.
19    (k) Notwithstanding Sections 6 and 8 of the State Mandates
20Act, no reimbursement by the State is required for the
21implementation of any mandate created by this Section.
22(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
23eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
2499-851, eff. 8-19-16.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.".