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Full Text of SB1488  99th General Assembly

SB1488ham002 99TH GENERAL ASSEMBLY

Rep. Barbara Flynn Currie

Filed: 10/19/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1488

2    AMENDMENT NO. ______. Amend Senate Bill 1488, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Property Tax Code is amended by changing
6Section 15-175 as follows:
 
7    (35 ILCS 200/15-175)
8    Sec. 15-175. General homestead exemption.
9    (a) Except as provided in Sections 15-176 and 15-177,
10homestead property is entitled to an annual homestead exemption
11limited, except as described here with relation to
12cooperatives, to a reduction in the equalized assessed value of
13homestead property equal to the increase in equalized assessed
14value for the current assessment year above the equalized
15assessed value of the property for 1977, up to the maximum
16reduction set forth below. If however, the 1977 equalized

 

 

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1assessed value upon which taxes were paid is subsequently
2determined by local assessing officials, the Property Tax
3Appeal Board, or a court to have been excessive, the equalized
4assessed value which should have been placed on the property
5for 1977 shall be used to determine the amount of the
6exemption.
7    (b) Except as provided in Section 15-176, the maximum
8reduction before taxable year 2004 shall be $4,500 in counties
9with 3,000,000 or more inhabitants and $3,500 in all other
10counties. Except as provided in Sections 15-176 and 15-177, for
11taxable years 2004 through 2007, the maximum reduction shall be
12$5,000, for taxable year 2008, the maximum reduction is $5,500,
13and, for taxable years 2009 through 2011, the maximum reduction
14is $6,000 in all counties. Except as provided in subsections
15(b-1) and (b-2), for For taxable years 2012 and thereafter, the
16maximum reduction is $7,000 in counties with 3,000,000 or more
17inhabitants and $6,000 in all other counties. If a county has
18elected to subject itself to the provisions of Section 15-176
19as provided in subsection (k) of that Section, then, for the
20first taxable year only after the provisions of Section 15-176
21no longer apply, for owners who, for the taxable year, have not
22been granted a senior citizens assessment freeze homestead
23exemption under Section 15-172 or a long-time occupant
24homestead exemption under Section 15-177, there shall be an
25additional exemption of $5,000 for owners with a household
26income of $30,000 or less.

 

 

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1    (b-1) For taxable years 2015 and thereafter, in any
2municipality with 1,000,000 or more inhabitants that has
3elected, by ordinance in accordance with this subsection (b-1),
4to be subject to the provisions of this subsection (b-1), the
5maximum reduction is $14,000; provided, however, that any
6reduction above $7,000 shall apply only as to levies that are
7imposed exclusively within such municipality. To be subject to
8the provisions of this subsection (b-1), a municipality must
9adopt an ordinance to subject itself to the provisions of this
10subsection (b-1) within 6 months after the effective date of
11this amendatory Act of the 99th General Assembly.
12    (b-2) For taxable years 2015 and thereafter, in any county
13that has elected, by ordinance in accordance with this
14subsection (b-2), to be subject to the provisions of this
15subsection (b-2), the maximum reduction is $14,000. To be
16subject to the provisions of this subsection (b-2), a county
17must adopt an ordinance to subject itself to the provisions of
18this subsection (b-2) within 6 months after the effective date
19of this amendatory Act of the 99th General Assembly.
20    (c) In counties with fewer than 3,000,000 inhabitants, if,
21based on the most recent assessment, the equalized assessed
22value of the homestead property for the current assessment year
23is greater than the equalized assessed value of the property
24for 1977, the owner of the property shall automatically receive
25the exemption granted under this Section in an amount equal to
26the increase over the 1977 assessment up to the maximum

 

 

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1reduction set forth in this Section.
2    (d) If in any assessment year beginning with the 2000
3assessment year, homestead property has a pro-rata valuation
4under Section 9-180 resulting in an increase in the assessed
5valuation, a reduction in equalized assessed valuation equal to
6the increase in equalized assessed value of the property for
7the year of the pro-rata valuation above the equalized assessed
8value of the property for 1977 shall be applied to the property
9on a proportionate basis for the period the property qualified
10as homestead property during the assessment year. The maximum
11proportionate homestead exemption shall not exceed the maximum
12homestead exemption allowed in the county under this Section
13divided by 365 and multiplied by the number of days the
14property qualified as homestead property.
15    (e) The chief county assessment officer may, when
16considering whether to grant a leasehold exemption under this
17Section, require the following conditions to be met:
18        (1) that a notarized application for the exemption,
19    signed by both the owner and the lessee of the property,
20    must be submitted each year during the application period
21    in effect for the county in which the property is located;
22        (2) that a copy of the lease must be filed with the
23    chief county assessment officer by the owner of the
24    property at the time the notarized application is
25    submitted;
26        (3) that the lease must expressly state that the lessee

 

 

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1    is liable for the payment of property taxes; and
2        (4) that the lease must include the following language
3    in substantially the following form:
4            "Lessee shall be liable for the payment of real
5        estate taxes with respect to the residence in
6        accordance with the terms and conditions of Section
7        15-175 of the Property Tax Code (35 ILCS 200/15-175).
8        The permanent real estate index number for the premises
9        is (insert number), and, according to the most recent
10        property tax bill, the current amount of real estate
11        taxes associated with the premises is (insert amount)
12        per year. The parties agree that the monthly rent set
13        forth above shall be increased or decreased pro rata
14        (effective January 1 of each calendar year) to reflect
15        any increase or decrease in real estate taxes. Lessee
16        shall be deemed to be satisfying Lessee's liability for
17        the above mentioned real estate taxes with the monthly
18        rent payments as set forth above (or increased or
19        decreased as set forth herein).".
20    In addition, if there is a change in lessee, or if the
21lessee vacates the property, then the chief county assessment
22officer may require the owner of the property to notify the
23chief county assessment officer of that change.
24    This subsection (e) does not apply to leasehold interests
25in property owned by a municipality.
26    (f) "Homestead property" under this Section includes

 

 

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1residential property that is occupied by its owner or owners as
2his or their principal dwelling place, or that is a leasehold
3interest on which a single family residence is situated, which
4is occupied as a residence by a person who has an ownership
5interest therein, legal or equitable or as a lessee, and on
6which the person is liable for the payment of property taxes.
7For land improved with an apartment building owned and operated
8as a cooperative or a building which is a life care facility as
9defined in Section 15-170 and considered to be a cooperative
10under Section 15-170, the maximum reduction from the equalized
11assessed value shall be limited to the increase in the value
12above the equalized assessed value of the property for 1977, up
13to the maximum reduction set forth above, multiplied by the
14number of apartments or units occupied by a person or persons
15who is liable, by contract with the owner or owners of record,
16for paying property taxes on the property and is an owner of
17record of a legal or equitable interest in the cooperative
18apartment building, other than a leasehold interest. For
19purposes of this Section, the term "life care facility" has the
20meaning stated in Section 15-170.
21    "Household", as used in this Section, means the owner, the
22spouse of the owner, and all persons using the residence of the
23owner as their principal place of residence.
24    "Household income", as used in this Section, means the
25combined income of the members of a household for the calendar
26year preceding the taxable year.

 

 

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1    "Income", as used in this Section, has the same meaning as
2provided in Section 3.07 of the Senior Citizens and Persons
3with Disabilities Property Tax Relief Act, except that "income"
4does not include veteran's benefits.
5    (g) In a cooperative where a homestead exemption has been
6granted, the cooperative association or its management firm
7shall credit the savings resulting from that exemption only to
8the apportioned tax liability of the owner who qualified for
9the exemption. Any person who willfully refuses to so credit
10the savings shall be guilty of a Class B misdemeanor.
11    (h) Where married persons maintain and reside in separate
12residences qualifying as homestead property, each residence
13shall receive 50% of the total reduction in equalized assessed
14valuation provided by this Section.
15    (i) In all counties, the assessor or chief county
16assessment officer may determine the eligibility of
17residential property to receive the homestead exemption and the
18amount of the exemption by application, visual inspection,
19questionnaire or other reasonable methods. The determination
20shall be made in accordance with guidelines established by the
21Department, provided that the taxpayer applying for an
22additional general exemption under this Section shall submit to
23the chief county assessment officer an application with an
24affidavit of the applicant's total household income, age,
25marital status (and, if married, the name and address of the
26applicant's spouse, if known), and principal dwelling place of

 

 

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1members of the household on January 1 of the taxable year. The
2Department shall issue guidelines establishing a method for
3verifying the accuracy of the affidavits filed by applicants
4under this paragraph. The applications shall be clearly marked
5as applications for the Additional General Homestead
6Exemption.
7    (i-5) This subsection (i-5) applies to counties with
83,000,000 or more inhabitants. In the event of a sale of
9homestead property, the homestead exemption shall remain in
10effect for the remainder of the assessment year of the sale.
11Upon receipt of a transfer declaration transmitted by the
12recorder pursuant to Section 31-30 of the Real Estate Transfer
13Tax Law for property receiving an exemption under this Section,
14the assessor shall mail a notice and forms to the new owner of
15the property providing information pertaining to the rules and
16applicable filing periods for applying or reapplying for
17homestead exemptions under this Code for which the property may
18be eligible. If the new owner fails to apply or reapply for a
19homestead exemption during the applicable filing period or the
20property no longer qualifies for an existing homestead
21exemption, the assessor shall cancel such exemption for any
22ensuing assessment year.
23    (j) In counties with fewer than 3,000,000 inhabitants, in
24the event of a sale of homestead property the homestead
25exemption shall remain in effect for the remainder of the
26assessment year of the sale. The assessor or chief county

 

 

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1assessment officer may require the new owner of the property to
2apply for the homestead exemption for the following assessment
3year.
4    (k) Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
8eff. 7-27-15; 99-164, eff. 7-28-15; revised 8-25-15.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".