103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3070

 

Introduced 2/17/2023, by Rep. Edgar Gonzalez, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-177

    Amends the Property Tax Code. In provisions concerning the long-time occupant homestead exemption, provides that for tax year 2024 and thereafter, the exemption applies to qualified taxpayers with a household income of $85,000 or less and is based on an increase of 5% for each taxable year after the base year. Removes provisions providing that a qualified taxpayer may not receive the long-time occupant homestead exemption and certain other exemptions. Provides that qualified taxpayers need not reapply for the long-time occupant homestead exemption on an annual basis. Effective immediately.


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A BILL FOR

 

HB3070LRB103 30509 HLH 56942 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-177 as follows:
 
6    (35 ILCS 200/15-177)
7    Sec. 15-177. The long-time occupant homestead exemption.
8    (a) If the county has elected, under Section 15-176, to be
9subject to the provisions of the alternative general homestead
10exemption, then, for taxable years 2007 and thereafter,
11regardless of whether the exemption under Section 15-176
12applies, qualified homestead property is entitled to an annual
13homestead exemption equal to a reduction in the property's
14equalized assessed value calculated as provided in this
15Section.
16    (b) As used in this Section:
17    "Adjusted homestead value" means, for tax years before
182024, the lesser of the following values:
19        (1) The property's base homestead value increased by:
20    (i) 10% for each taxable year after the base year through
21    and including the current tax year for qualified taxpayers
22    with a household income of more than $75,000 but not
23    exceeding $100,000; or (ii) 7% for each taxable year after

 

 

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1    the base year through and including the current tax year
2    for qualified taxpayers with a household income of $75,000
3    or less. The increase each year is an increase over the
4    prior year; or
5        (2) The property's equalized assessed value for the
6    current tax year minus the general homestead deduction.
7    "Adjusted homestead value" means, for tax year 2024 and
8thereafter, the lesser of the following values:
9        (1) The property's base homestead value increased by
10    5% for each taxable year after the base year through and
11    including the current tax year for qualified taxpayers
12    with a household income of $85,000 or less. The increase
13    each year is an increase over the prior year; or
14        (2) The property's equalized assessed value for the
15    current tax year minus the general homestead deduction.
16    "Base homestead value" means:
17        (1) if the property did not have an adjusted homestead
18    value under Section 15-176 for the base year, then an
19    amount equal to the equalized assessed value of the
20    property for the base year prior to exemptions, minus the
21    general homestead deduction, provided that the property's
22    assessment was not based on a reduced assessed value
23    resulting from a temporary irregularity in the property
24    for that year; or
25        (2) if the property had an adjusted homestead value
26    under Section 15-176 for the base year, then an amount

 

 

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1    equal to the adjusted homestead value of the property
2    under Section 15-176 for the base year.
3    "Base year" means the taxable year prior to the taxable
4year in which the taxpayer first qualifies for the exemption
5under this Section.
6    "Current taxable year" means the taxable year for which
7the exemption under this Section is being applied.
8    "Equalized assessed value" means the property's assessed
9value as equalized by the Department.
10    "Homestead" or "homestead property" means residential
11property that as of January 1 of the tax year is occupied by a
12qualified taxpayer as his or her principal dwelling place, or
13that is a leasehold interest on which a single family
14residence is situated, that is occupied as a residence by a
15qualified taxpayer who has a legal or equitable interest
16therein evidenced by a written instrument, as an owner or as a
17lessee, and on which the person is liable for the payment of
18property taxes. Residential units in an apartment building
19owned and operated as a cooperative, or as a life care
20facility, which are occupied by persons who hold a legal or
21equitable interest in the cooperative apartment building or
22life care facility as owners or lessees, and who are liable by
23contract for the payment of property taxes, are included
24within this definition of homestead property. A homestead
25includes the dwelling place, appurtenant structures, and so
26much of the surrounding land constituting the parcel on which

 

 

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1the dwelling place is situated as is used for residential
2purposes. If the assessor has established a specific legal
3description for a portion of property constituting the
4homestead, then the homestead is limited to the property
5within that description.
6    "Household income" has the meaning set forth under Section
715-172 of this Code.
8    "General homestead deduction" means the amount of the
9general homestead exemption under Section 15-175.
10    "Life care facility" means a facility defined in Section 2
11of the Life Care Facilities Act.
12    "Qualified homestead property" means homestead property
13owned by a qualified taxpayer.
14    "Qualified taxpayer" means any individual:
15        (1) who, for at least 10 continuous years as of
16    January 1 of the taxable year, has occupied the same
17    homestead property as a principal residence and domicile
18    or who, for at least 5 continuous years as of January 1 of
19    the taxable year, has occupied the same homestead property
20    as a principal residence and domicile if that person
21    received assistance in the acquisition of the property as
22    part of a government or nonprofit housing program; and
23        (2) who has a household income of $100,000 or less.
24    (c) The base homestead value must remain constant, except
25that the assessor may revise it under any of the following
26circumstances:

 

 

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1        (1) If the equalized assessed value of a homestead
2    property for the current tax year is less than the
3    previous base homestead value for that property, then the
4    current equalized assessed value (provided it is not based
5    on a reduced assessed value resulting from a temporary
6    irregularity in the property) becomes the base homestead
7    value in subsequent tax years.
8        (2) For any year in which new buildings, structures,
9    or other improvements are constructed on the homestead
10    property that would increase its assessed value, the
11    assessor shall adjust the base homestead value with due
12    regard to the value added by the new improvements.
13    (d) The amount of the exemption under this Section is the
14greater of: (i) the equalized assessed value of the homestead
15property for the current tax year minus the adjusted homestead
16value; or (ii) the general homestead deduction.
17    (e) In the case of an apartment building owned and
18operated as a cooperative, or as a life care facility, that
19contains residential units that qualify as homestead property
20of a qualified taxpayer under this Section, the maximum
21cumulative exemption amount attributed to the entire building
22or facility shall not exceed the sum of the exemptions
23calculated for each unit that is a qualified homestead
24property. The cooperative association, management firm, or
25other person or entity that manages or controls the
26cooperative apartment building or life care facility shall

 

 

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1credit the exemption attributable to each residential unit
2only to the apportioned tax liability of the qualified
3taxpayer as to that unit. Any person who willfully refuses to
4so credit the exemption is guilty of a Class B misdemeanor.
5    (f) When married persons maintain separate residences, the
6exemption provided under this Section may be claimed by only
7one such person and for only one residence. No person who
8receives an exemption under Section 15-172 of this Code may
9receive an exemption under this Section. No person who
10receives an exemption under this Section may receive an
11exemption under Section 15-175 or 15-176 of this Code.
12    (g) In the event of a sale or other transfer in ownership
13of the homestead property between spouses or between a parent
14and a child, the exemption under this Section remains in
15effect if the new owner has a household income of $100,000 or
16less.
17    (h) In the event of a sale or other transfer in ownership
18of the homestead property other than subsection (g) of this
19Section, the exemption under this Section shall remain in
20effect for the remainder of the tax year and be calculated
21using the same base homestead value in which the sale or
22transfer occurs.
23    (i) To receive the exemption, a person must submit an
24application to the county assessor during the period specified
25by the county assessor. For taxable year 2024 and thereafter,
26qualified taxpayers need not reapply on an annual basis;

 

 

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1however, they must notify the chief county assessment officer
2if the property is sold, transferred, or conveyed, or if the
3property no longer qualifies for the exemption under this
4Section.
5    The county assessor shall annually give notice of the
6application period by mail or by publication.
7    The taxpayer must submit, with the application, an
8affidavit of the taxpayer's total household income, marital
9status (and if married the name and address of the applicant's
10spouse, if known), and principal dwelling place of members of
11the household on January 1 of the taxable year. The Department
12shall establish, by rule, a method for verifying the accuracy
13of affidavits filed by applicants under this Section, and the
14Chief County Assessment Officer may conduct audits of any
15taxpayer claiming an exemption under this Section to verify
16that the taxpayer is eligible to receive the exemption. Each
17application shall contain or be verified by a written
18declaration that it is made under the penalties of perjury. A
19taxpayer's signing a fraudulent application under this Act is
20perjury, as defined in Section 32-2 of the Criminal Code of
212012. The applications shall be clearly marked as applications
22for the Long-time Occupant Homestead Exemption and must
23contain a notice that any taxpayer who receives the exemption
24is subject to an audit by the Chief County Assessment Officer.
25    (j) Notwithstanding Sections 6 and 8 of the State Mandates
26Act, no reimbursement by the State is required for the

 

 

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1implementation of any mandate created by this Section.
2(Source: P.A. 97-1150, eff. 1-25-13.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.