Illinois General Assembly - Full Text of HB0156
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Full Text of HB0156  100th General Assembly

HB0156ham001 100TH GENERAL ASSEMBLY

Rep. Michelle Mussman

Filed: 4/3/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 156

2    AMENDMENT NO. ______. Amend House Bill 156 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 9-275, 15-169, 15-170, and 15-175 and by adding
6Sections 15-172.5 and 15-178 as follows:
 
7    (35 ILCS 200/9-275)
8    Sec. 9-275. Erroneous homestead exemptions.
9    (a) For purposes of this Section:
10    "Erroneous homestead exemption" means a homestead
11exemption that was granted for real property in a taxable year
12if the property was not eligible for that exemption in that
13taxable year. If the taxpayer receives an erroneous homestead
14exemption under a single Section of this Code for the same
15property in multiple years, that exemption is considered a
16single erroneous homestead exemption for purposes of this

 

 

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1Section. However, if the taxpayer receives erroneous homestead
2exemptions under multiple Sections of this Code for the same
3property, or if the taxpayer receives erroneous homestead
4exemptions under the same Section of this Code for multiple
5properties, then each of those exemptions is considered a
6separate erroneous homestead exemption for purposes of this
7Section.
8    "Homestead exemption" means an exemption under Section
915-165 (veterans with disabilities), 15-167 (returning
10veterans), 15-168 (persons with disabilities), 15-169
11(standard homestead for veterans with disabilities and
12veterans 75 years of age or older), 15-170 (senior citizens),
1315-172 (senior citizens assessment freeze), 15-175 (general
14homestead), 15-176 (alternative general homestead), or 15-177
15(long-time occupant).
16    "Erroneous exemption principal amount" means the total
17difference between the property taxes actually billed to a
18property index number and the amount of property taxes that
19would have been billed but for the erroneous exemption or
20exemptions.
21    "Taxpayer" means the property owner or leasehold owner that
22erroneously received a homestead exemption upon property.
23    (b) Notwithstanding any other provision of law, in counties
24with 3,000,000 or more inhabitants, the chief county assessment
25officer shall include the following information with each
26assessment notice sent in a general assessment year: (1) a list

 

 

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1of each homestead exemption available under Article 15 of this
2Code and a description of the eligibility criteria for that
3exemption; (2) a list of each homestead exemption applied to
4the property in the current assessment year; (3) information
5regarding penalties and interest that may be incurred under
6this Section if the taxpayer received an erroneous homestead
7exemption in a previous taxable year; and (4) notice of the
860-day grace period available under this subsection. If, within
960 days after receiving his or her assessment notice, the
10taxpayer notifies the chief county assessment officer that he
11or she received an erroneous homestead exemption in a previous
12taxable year, and if the taxpayer pays the erroneous exemption
13principal amount, plus interest as provided in subsection (f),
14then the taxpayer shall not be liable for the penalties
15provided in subsection (f) with respect to that exemption.
16    (c) In counties with 3,000,000 or more inhabitants, when
17the chief county assessment officer determines that one or more
18erroneous homestead exemptions was applied to the property, the
19erroneous exemption principal amount, together with all
20applicable interest and penalties as provided in subsections
21(f) and (j), shall constitute a lien in the name of the People
22of Cook County on the property receiving the erroneous
23homestead exemption. Upon becoming aware of the existence of
24one or more erroneous homestead exemptions, the chief county
25assessment officer shall cause to be served, by both regular
26mail and certified mail, a notice of discovery as set forth in

 

 

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1subsection (c-5). The chief county assessment officer in a
2county with 3,000,000 or more inhabitants may cause a lien to
3be recorded against property that (1) is located in the county
4and (2) received one or more erroneous homestead exemptions if,
5upon determination of the chief county assessment officer, the
6taxpayer received: (A) one or 2 erroneous homestead exemptions
7for real property, including at least one erroneous homestead
8exemption granted for the property against which the lien is
9sought, during any of the 3 collection years immediately prior
10to the current collection year in which the notice of discovery
11is served; or (B) 3 or more erroneous homestead exemptions for
12real property, including at least one erroneous homestead
13exemption granted for the property against which the lien is
14sought, during any of the 6 collection years immediately prior
15to the current collection year in which the notice of discovery
16is served. Prior to recording the lien against the property,
17the chief county assessment officer shall cause to be served,
18by both regular mail and certified mail, return receipt
19requested, on the person to whom the most recent tax bill was
20mailed and the owner of record, a notice of intent to record a
21lien against the property. The chief county assessment officer
22shall cause the notice of intent to record a lien to be served
23within 3 years from the date on which the notice of discovery
24was served.
25    (c-5) The notice of discovery described in subsection (c)
26shall: (1) identify, by property index number, the property for

 

 

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1which the chief county assessment officer has knowledge
2indicating the existence of an erroneous homestead exemption;
3(2) set forth the taxpayer's liability for principal, interest,
4penalties, and administrative costs including, but not limited
5to, recording fees described in subsection (f); (3) inform the
6taxpayer that he or she will be served with a notice of intent
7to record a lien within 3 years from the date of service of the
8notice of discovery; (4) inform the taxpayer that he or she may
9pay the outstanding amount, plus interest, penalties, and
10administrative costs at any time prior to being served with the
11notice of intent to record a lien or within 30 days after the
12notice of intent to record a lien is served; and (5) inform the
13taxpayer that, if the taxpayer provided notice to the chief
14county assessment officer as provided in subsection (d-1) of
15Section 15-175 of this Code, upon submission by the taxpayer of
16evidence of timely notice and receipt thereof by the chief
17county assessment officer, the chief county assessment officer
18will withdraw the notice of discovery and reissue a notice of
19discovery in compliance with this Section in which the taxpayer
20is not liable for interest and penalties for the current tax
21year in which the notice was received.
22    For the purposes of this subsection (c-5):
23    "Collection year" means the year in which the first and
24second installment of the current tax year is billed.
25    "Current tax year" means the year prior to the collection
26year.

 

 

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1    (d) The notice of intent to record a lien described in
2subsection (c) shall: (1) identify, by property index number,
3the property against which the lien is being sought; (2)
4identify each specific homestead exemption that was
5erroneously granted and the year or years in which each
6exemption was granted; (3) set forth the erroneous exemption
7principal amount due and the interest amount and any penalty
8and administrative costs due; (4) inform the taxpayer that he
9or she may request a hearing within 30 days after service and
10may appeal the hearing officer's ruling to the circuit court;
11(5) inform the taxpayer that he or she may pay the erroneous
12exemption principal amount, plus interest and penalties,
13within 30 days after service; and (6) inform the taxpayer that,
14if the lien is recorded against the property, the amount of the
15lien will be adjusted to include the applicable recording fee
16and that fees for recording a release of the lien shall be
17incurred by the taxpayer. A lien shall not be filed pursuant to
18this Section if the taxpayer pays the erroneous exemption
19principal amount, plus penalties and interest, within 30 days
20of service of the notice of intent to record a lien.
21    (e) The notice of intent to record a lien shall also
22include a form that the taxpayer may return to the chief county
23assessment officer to request a hearing. The taxpayer may
24request a hearing by returning the form within 30 days after
25service. The hearing shall be held within 90 days after the
26taxpayer is served. The chief county assessment officer shall

 

 

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1promulgate rules of service and procedure for the hearing. The
2chief county assessment officer must generally follow rules of
3evidence and practices that prevail in the county circuit
4courts, but, because of the nature of these proceedings, the
5chief county assessment officer is not bound by those rules in
6all particulars. The chief county assessment officer shall
7appoint a hearing officer to oversee the hearing. The taxpayer
8shall be allowed to present evidence to the hearing officer at
9the hearing. After taking into consideration all the relevant
10testimony and evidence, the hearing officer shall make an
11administrative decision on whether the taxpayer was
12erroneously granted a homestead exemption for the taxable year
13in question. The taxpayer may appeal the hearing officer's
14ruling to the circuit court of the county where the property is
15located as a final administrative decision under the
16Administrative Review Law.
17    (f) A lien against the property imposed under this Section
18shall be filed with the county recorder of deeds, but may not
19be filed sooner than 60 days after the notice of intent to
20record a lien was delivered to the taxpayer if the taxpayer
21does not request a hearing, or until the conclusion of the
22hearing and all appeals if the taxpayer does request a hearing.
23If a lien is filed pursuant to this Section and the taxpayer
24received one or 2 erroneous homestead exemptions during any of
25the 3 collection years immediately prior to the current
26collection year in which the notice of discovery is served,

 

 

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1then the erroneous exemption principal amount, plus 10%
2interest per annum or portion thereof from the date the
3erroneous exemption principal amount would have become due if
4properly included in the tax bill, shall be charged against the
5property by the chief county assessment officer. However, if a
6lien is filed pursuant to this Section and the taxpayer
7received 3 or more erroneous homestead exemptions during any of
8the 6 collection years immediately prior to the current
9collection year in which the notice of discovery is served, the
10erroneous exemption principal amount, plus a penalty of 50% of
11the total amount of the erroneous exemption principal amount
12for that property and 10% interest per annum or portion thereof
13from the date the erroneous exemption principal amount would
14have become due if properly included in the tax bill, shall be
15charged against the property by the chief county assessment
16officer. If a lien is filed pursuant to this Section, the
17taxpayer shall not be liable for interest that accrues between
18the date the notice of discovery is served and the date the
19lien is filed. Before recording the lien with the county
20recorder of deeds, the chief county assessment officer shall
21adjust the amount of the lien to add administrative costs,
22including but not limited to the applicable recording fee, to
23the total lien amount.
24    (g) If a person received an erroneous homestead exemption
25under Section 15-170 and: (1) the person was the spouse, child,
26grandchild, brother, sister, niece, or nephew of the previous

 

 

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1taxpayer; and (2) the person received the property by bequest
2or inheritance; then the person is not liable for the penalties
3imposed under this Section for any year or years during which
4the chief county assessment officer did not require an annual
5application for the exemption. However, that person is
6responsible for any interest owed under subsection (f).
7    (h) If the erroneous homestead exemption was granted as a
8result of a clerical error or omission on the part of the chief
9county assessment officer, and if the taxpayer has paid the tax
10bills as received for the year in which the error occurred,
11then the interest and penalties authorized by this Section with
12respect to that homestead exemption shall not be chargeable to
13the taxpayer. However, nothing in this Section shall prevent
14the collection of the erroneous exemption principal amount due
15and owing.
16    (i) A lien under this Section is not valid as to (1) any
17bona fide purchaser for value without notice of the erroneous
18homestead exemption whose rights in and to the underlying
19parcel arose after the erroneous homestead exemption was
20granted but before the filing of the notice of lien; or (2) any
21mortgagee, judgment creditor, or other lienor whose rights in
22and to the underlying parcel arose before the filing of the
23notice of lien. A title insurance policy for the property that
24is issued by a title company licensed to do business in the
25State showing that the property is free and clear of any liens
26imposed under this Section shall be prima facie evidence that

 

 

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1the taxpayer is without notice of the erroneous homestead
2exemption. Nothing in this Section shall be deemed to impair
3the rights of subsequent creditors and subsequent purchasers
4under Section 30 of the Conveyances Act.
5    (j) When a lien is filed against the property pursuant to
6this Section, the chief county assessment officer shall mail a
7copy of the lien to the person to whom the most recent tax bill
8was mailed and to the owner of record, and the outstanding
9liability created by such a lien is due and payable within 30
10days after the mailing of the lien by the chief county
11assessment officer. This liability is deemed delinquent and
12shall bear interest beginning on the day after the due date at
13a rate of 1.5% per month or portion thereof. Payment shall be
14made to the county treasurer. Upon receipt of the full amount
15due, as determined by the chief county assessment officer, the
16county treasurer shall distribute the amount paid as provided
17in subsection (k). Upon presentment by the taxpayer to the
18chief county assessment officer of proof of payment of the
19total liability, the chief county assessment officer shall
20provide in reasonable form a release of the lien. The release
21of the lien provided shall clearly inform the taxpayer that it
22is the responsibility of the taxpayer to record the lien
23release form with the county recorder of deeds and to pay any
24applicable recording fees.
25    (k) The county treasurer shall pay collected erroneous
26exemption principal amounts, pro rata, to the taxing districts,

 

 

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1or their legal successors, that levied upon the subject
2property in the taxable year or years for which the erroneous
3homestead exemptions were granted, except as set forth in this
4Section. The county treasurer shall deposit collected
5penalties and interest into a special fund established by the
6county treasurer to offset the costs of administration of the
7provisions of this Section by the chief county assessment
8officer's office, as appropriated by the county board. If the
9costs of administration of this Section exceed the amount of
10interest and penalties collected in the special fund, the chief
11county assessor shall be reimbursed by each taxing district or
12their legal successors for those costs. Such costs shall be
13paid out of the funds collected by the county treasurer on
14behalf of each taxing district pursuant to this Section.
15    (l) The chief county assessment officer in a county with
163,000,000 or more inhabitants shall establish an amnesty period
17for all taxpayers owing any tax due to an erroneous homestead
18exemption granted in a tax year prior to the 2013 tax year. The
19amnesty period shall begin on the effective date of this
20amendatory Act of the 98th General Assembly and shall run
21through December 31, 2013. If, during the amnesty period, the
22taxpayer pays the entire arrearage of taxes due for tax years
23prior to 2013, the county clerk shall abate and not seek to
24collect any interest or penalties that may be applicable and
25shall not seek civil or criminal prosecution for any taxpayer
26for tax years prior to 2013. Failure to pay all such taxes due

 

 

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1during the amnesty period established under this Section shall
2invalidate the amnesty period for that taxpayer.
3    The chief county assessment officer in a county with
43,000,000 or more inhabitants shall (i) mail notice of the
5amnesty period with the tax bills for the second installment of
6taxes for the 2012 assessment year and (ii) as soon as possible
7after the effective date of this amendatory Act of the 98th
8General Assembly, publish notice of the amnesty period in a
9newspaper of general circulation in the county. Notices shall
10include information on the amnesty period, its purpose, and the
11method by which to make payment.
12    Taxpayers who are a party to any criminal investigation or
13to any civil or criminal litigation that is pending in any
14circuit court or appellate court, or in the Supreme Court of
15this State, for nonpayment, delinquency, or fraud in relation
16to any property tax imposed by any taxing district located in
17the State on the effective date of this amendatory Act of the
1898th General Assembly may not take advantage of the amnesty
19period.
20    A taxpayer who has claimed 3 or more homestead exemptions
21in error shall not be eligible for the amnesty period
22established under this subsection.
23(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
2498-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
257-27-15; 99-851, eff. 8-19-16.)
 

 

 

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1    (35 ILCS 200/15-169)
2    Sec. 15-169. Homestead exemption for veterans with
3disabilities and veterans who are 75 years of age or older.
4    (a) Beginning with taxable year 2007, an annual homestead
5exemption, limited to the amounts set forth in subsections (b),
6and (b-3), and (b-4) is granted for property that is used as a
7qualified residence by a veteran with a disability or,
8beginning in taxable year 2017, a veteran who is 75 years of
9age or older.
10    (b) For taxable years prior to 2015, the amount of the
11exemption under this Section is as follows:
12        (1) for veterans with a service-connected disability
13    of at least (i) 75% for exemptions granted in taxable years
14    2007 through 2009 and (ii) 70% for exemptions granted in
15    taxable year 2010 and each taxable year thereafter, as
16    certified by the United States Department of Veterans
17    Affairs, the annual exemption is $5,000; and
18        (2) for veterans with a service-connected disability
19    of at least 50%, but less than (i) 75% for exemptions
20    granted in taxable years 2007 through 2009 and (ii) 70% for
21    exemptions granted in taxable year 2010 and each taxable
22    year thereafter, as certified by the United States
23    Department of Veterans Affairs, the annual exemption is
24    $2,500.
25    (b-3) For taxable years 2015 and 2016 thereafter:
26        (1) if the veteran has a service connected disability

 

 

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1    of 30% or more but less than 50%, as certified by the
2    United States Department of Veterans Affairs, then the
3    annual exemption is $2,500;
4        (2) if the veteran has a service connected disability
5    of 50% or more but less than 70%, as certified by the
6    United States Department of Veterans Affairs, then the
7    annual exemption is $5,000; and
8        (3) if the veteran has a service connected disability
9    of 70% or more, as certified by the United States
10    Department of Veterans Affairs, then the property is exempt
11    from taxation under this Code.
12    (b-4) For taxable years 2017 and thereafter:
13        (1) if the veteran has a service connected disability
14    of 20% or more but less than 50%, as certified by the
15    United States Department of Veterans Affairs or the United
16    States Department of Defense, then the annual exemption is
17    $2,500;
18        (2) if the veteran has a service connected disability
19    of 50% or more but less than 70%, as certified by the
20    United States Department of Veterans Affairs or the United
21    States Department of Defense, then the annual exemption is
22    $5,000;
23        (3) if the veteran has a service connected disability
24    of 70% or more, as certified by the United States
25    Department of Veterans Affairs or the United States
26    Department of Defense, then the property is exempt from

 

 

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1    taxation under this Code; and
2        (4) if the veteran does not qualify under paragraphs
3    (1) through (3) of this subsection (b-4), but the veteran
4    is 75 years of age or older during the taxable year, then
5    $2,500.
6    (b-5) If a homestead exemption is granted under this
7Section and the person awarded the exemption subsequently
8becomes a resident of a facility licensed under the Nursing
9Home Care Act or a facility operated by the United States
10Department of Veterans Affairs, then the exemption shall
11continue (i) so long as the residence continues to be occupied
12by the qualifying person's spouse or (ii) if the residence
13remains unoccupied but is still owned by the person who
14qualified for the homestead exemption.
15    (c) The tax exemption under this Section carries over to
16the benefit of the veteran's surviving spouse as long as the
17spouse holds the legal or beneficial title to the homestead,
18permanently resides thereon, and does not remarry. If the
19surviving spouse sells the property, an exemption not to exceed
20the amount granted from the most recent ad valorem tax roll may
21be transferred to his or her new residence as long as it is
22used as his or her primary residence and he or she does not
23remarry.
24    As used in this subsection (c):
25        (1) for taxable years prior to 2015, "surviving spouse"
26    means the surviving spouse of a veteran who obtained an

 

 

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1    exemption under this Section prior to his or her death;
2        (2) for taxable year 2015 and 2016, "surviving spouse"
3    means (i) the surviving spouse of a veteran who obtained an
4    exemption under this Section prior to his or her death and
5    (ii) the surviving spouse of a veteran who was killed in
6    the line of duty; and
7        (3) for taxable year 2017 and thereafter, "surviving
8    spouse" means (i) the surviving spouse of a veteran who
9    qualified for the exemption under this Section prior to his
10    or her death, (ii) the surviving spouse of a veteran who
11    was killed in the line of duty, and (iii) the surviving
12    spouse of a veteran who did not obtain an exemption under
13    this Section before death, but who applied for a
14    service-connected disability certification from the United
15    States Department of Veterans Affairs or the United States
16    Department of Defense no earlier than January 1, 2007 and
17    would have qualified for the exemption under this Section
18    in the current taxable year if he or she had survived.
19    (c-1) Beginning with taxable year 2015, nothing in this
20Section shall require the veteran to have qualified for or
21obtained the exemption before death if the veteran was killed
22in the line of duty.
23    (d) The exemption under this Section applies for taxable
24year 2007 and thereafter. A taxpayer who claims an exemption
25under Section 15-165 or 15-168 may not claim an exemption under
26this Section.

 

 

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1    (e) Each taxpayer who has been granted an exemption under
2this Section must reapply on an annual basis. Application must
3be made during the application period in effect for the county
4of his or her residence. The assessor or chief county
5assessment officer may determine the eligibility of
6residential property to receive the homestead exemption
7provided by this Section by application, visual inspection,
8questionnaire, or other reasonable methods. The determination
9must be made in accordance with guidelines established by the
10Department.
11    (f) For the purposes of this Section:
12    "Qualified residence" means real property, but less any
13portion of that property that is used for commercial purposes,
14with an equalized assessed value of less than $250,000 that is
15the primary residence of a veteran with a disability or,
16beginning in taxable year 2017, a veteran who is 75 years of
17age or older. Property rented for more than 6 months is
18presumed to be used for commercial purposes.
19    "Veteran" means an Illinois resident who has served as a
20member of the United States Armed Forces on active duty or
21State active duty, a member of the Illinois National Guard, or
22a member of the United States Reserve Forces and who has
23received an honorable discharge.
24(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
2599-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
 

 

 

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1    (35 ILCS 200/15-170)
2    Sec. 15-170. Senior Citizens Homestead Exemption. An
3annual homestead exemption limited, except as described here
4with relation to cooperatives or life care facilities, to a
5maximum reduction set forth below from the property's value, as
6equalized or assessed by the Department, is granted for
7property that is occupied as a residence by a person 65 years
8of age or older who is liable for paying real estate taxes on
9the property and is an owner of record of the property or has a
10legal or equitable interest therein as evidenced by a written
11instrument, except for a leasehold interest, other than a
12leasehold interest of land on which a single family residence
13is located, which is occupied as a residence by a person 65
14years or older who has an ownership interest therein, legal,
15equitable or as a lessee, and on which he or she is liable for
16the payment of property taxes. Before taxable year 2004, the
17maximum reduction shall be $2,500 in counties with 3,000,000 or
18more inhabitants and $2,000 in all other counties. For taxable
19years 2004 through 2005, the maximum reduction shall be $3,000
20in all counties. For taxable years 2006 and 2007, the maximum
21reduction shall be $3,500. For taxable years 2008 through 2011,
22the maximum reduction is $4,000 in all counties. For taxable
23year 2012, the maximum reduction is $5,000 in counties with
243,000,000 or more inhabitants and $4,000 in all other counties.
25For taxable years 2013 through 2016 and thereafter, the maximum
26reduction is $5,000 in all counties. For taxable years 2017 and

 

 

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1thereafter, the maximum reduction is $6,000 in all counties.
2    For land improved with an apartment building owned and
3operated as a cooperative, the maximum reduction from the value
4of the property, as equalized by the Department, shall be
5multiplied by the number of apartments or units occupied by a
6person 65 years of age or older who is liable, by contract with
7the owner or owners of record, for paying property taxes on the
8property and is an owner of record of a legal or equitable
9interest in the cooperative apartment building, other than a
10leasehold interest. For land improved with a life care
11facility, the maximum reduction from the value of the property,
12as equalized by the Department, shall be multiplied by the
13number of apartments or units occupied by persons 65 years of
14age or older, irrespective of any legal, equitable, or
15leasehold interest in the facility, who are liable, under a
16contract with the owner or owners of record of the facility,
17for paying property taxes on the property. In a cooperative or
18a life care facility where a homestead exemption has been
19granted, the cooperative association or the management firm of
20the cooperative or facility shall credit the savings resulting
21from that exemption only to the apportioned tax liability of
22the owner or resident who qualified for the exemption. Any
23person who willfully refuses to so credit the savings shall be
24guilty of a Class B misdemeanor. Under this Section and
25Sections 15-175, 15-176, and 15-177, "life care facility" means
26a facility, as defined in Section 2 of the Life Care Facilities

 

 

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1Act, with which the applicant for the homestead exemption has a
2life care contract as defined in that Act.
3    When a homestead exemption has been granted under this
4Section and the person qualifying subsequently becomes a
5resident of a facility licensed under the Assisted Living and
6Shared Housing Act, the Nursing Home Care Act, the Specialized
7Mental Health Rehabilitation Act of 2013, the ID/DD Community
8Care Act, or the MC/DD Act, the exemption shall continue so
9long as the residence continues to be occupied by the
10qualifying person's spouse if the spouse is 65 years of age or
11older, or if the residence remains unoccupied but is still
12owned by the person qualified for the homestead exemption.
13    A person who will be 65 years of age during the current
14assessment year shall be eligible to apply for the homestead
15exemption during that assessment year. Application shall be
16made during the application period in effect for the county of
17his residence.
18    Beginning with assessment year 2003, for taxes payable in
192004, property that is first occupied as a residence after
20January 1 of any assessment year by a person who is eligible
21for the senior citizens homestead exemption under this Section
22must be granted a pro-rata exemption for the assessment year.
23The amount of the pro-rata exemption is the exemption allowed
24in the county under this Section divided by 365 and multiplied
25by the number of days during the assessment year the property
26is occupied as a residence by a person eligible for the

 

 

10000HB0156ham001- 21 -LRB100 03826 HLH 24801 a

1exemption under this Section. The chief county assessment
2officer must adopt reasonable procedures to establish
3eligibility for this pro-rata exemption.
4    The assessor or chief county assessment officer may
5determine the eligibility of a life care facility to receive
6the benefits provided by this Section, by affidavit,
7application, visual inspection, questionnaire or other
8reasonable methods in order to insure that the tax savings
9resulting from the exemption are credited by the management
10firm to the apportioned tax liability of each qualifying
11resident. The assessor may request reasonable proof that the
12management firm has so credited the exemption.
13    The chief county assessment officer of each county with
14less than 3,000,000 inhabitants shall provide to each person
15allowed a homestead exemption under this Section a form to
16designate any other person to receive a duplicate of any notice
17of delinquency in the payment of taxes assessed and levied
18under this Code on the property of the person receiving the
19exemption. The duplicate notice shall be in addition to the
20notice required to be provided to the person receiving the
21exemption, and shall be given in the manner required by this
22Code. The person filing the request for the duplicate notice
23shall pay a fee of $5 to cover administrative costs to the
24supervisor of assessments, who shall then file the executed
25designation with the county collector. Notwithstanding any
26other provision of this Code to the contrary, the filing of

 

 

10000HB0156ham001- 22 -LRB100 03826 HLH 24801 a

1such an executed designation requires the county collector to
2provide duplicate notices as indicated by the designation. A
3designation may be rescinded by the person who executed such
4designation at any time, in the manner and form required by the
5chief county assessment officer.
6    The assessor or chief county assessment officer may
7determine the eligibility of residential property to receive
8the homestead exemption provided by this Section by
9application, visual inspection, questionnaire or other
10reasonable methods. The determination shall be made in
11accordance with guidelines established by the Department.
12    In counties with 3,000,000 or more inhabitants, beginning
13in taxable year 2010, each taxpayer who has been granted an
14exemption under this Section must reapply on an annual basis.
15The chief county assessment officer shall mail the application
16to the taxpayer. In counties with less than 3,000,000
17inhabitants, the county board may by resolution provide that if
18a person has been granted a homestead exemption under this
19Section, the person qualifying need not reapply for the
20exemption.
21    In counties with less than 3,000,000 inhabitants, if the
22assessor or chief county assessment officer requires annual
23application for verification of eligibility for an exemption
24once granted under this Section, the application shall be
25mailed to the taxpayer.
26    The assessor or chief county assessment officer shall

 

 

10000HB0156ham001- 23 -LRB100 03826 HLH 24801 a

1notify each person who qualifies for an exemption under this
2Section that the person may also qualify for deferral of real
3estate taxes under the Senior Citizens Real Estate Tax Deferral
4Act. The notice shall set forth the qualifications needed for
5deferral of real estate taxes, the address and telephone number
6of county collector, and a statement that applications for
7deferral of real estate taxes may be obtained from the county
8collector.
9    Notwithstanding Sections 6 and 8 of the State Mandates Act,
10no reimbursement by the State is required for the
11implementation of any mandate created by this Section.
12(Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,
13eff. 7-16-14; 99-180, eff. 7-29-15.)
 
14    (35 ILCS 200/15-172.5 new)
15    Sec. 15-172.5. Assessment Freeze Homestead Exemption for
16persons receiving Supplemental Security Income.
17    (a) This Section may be cited as the Assessment Freeze
18Homestead Exemption for persons receiving Supplemental
19Security Income.
20    (b) As used in this Section:
21    "Applicant" means an individual who has filed an
22application under this Section.
23    "Base amount" means the base year equalized assessed value
24of the residence plus the first year's equalized assessed value
25of any added improvements which increased the assessed value of

 

 

10000HB0156ham001- 24 -LRB100 03826 HLH 24801 a

1the residence after the base year.
2    "Base year" means the taxable year prior to the taxable
3year for which the applicant first qualifies and applies for
4the exemption, provided that, in the prior taxable year, the
5property was improved with a permanent structure that was
6occupied as a residence by the applicant who was liable for
7paying real property taxes on the property and who was either
8(i) an owner of record of the property or had legal or
9equitable interest in the property as evidenced by a written
10instrument or (ii) had a legal or equitable interest as a
11lessee in the parcel of property that was single family
12residence.
13    "Chief County Assessment Officer" means the County
14Assessor or Supervisor of Assessments of the county in which
15the property is located.
16    "Equalized assessed value" means the assessed value of the
17property as equalized by the Department of Revenue.
18    "Household" means the applicant, the spouse of the
19applicant, and all persons using the residence of the applicant
20as their principal place of residence.
21    "Household income" means the combined income of the members
22of a household for the calendar year preceding the taxable
23year.
24    "Income" has the same meaning as provided in Section 3.07
25of the Senior Citizens and Persons with Disabilities Property
26Tax Relief Act, but does not include veteran's benefits.

 

 

10000HB0156ham001- 25 -LRB100 03826 HLH 24801 a

1    "Internal Revenue Code of 1986" means the United States
2Internal Revenue Code of 1986 or any successor law or laws
3relating to federal income taxes in effect for the year
4preceding the taxable year.
5    "Life care facility that qualifies as a cooperative" means
6a facility as defined in Section 2 of the Life Care Facilities
7Act.
8    "Maximum income limitation" means $55,000.
9    "Residence" means the principal dwelling place and
10appurtenant structures used for residential purposes in this
11State occupied on January 1 of the taxable year by a household
12and so much of the surrounding land, constituting the parcel
13upon which the dwelling place is situated, as is used for
14residential purposes. If the chief county assessment officer
15has established a specific legal description for a portion of
16property constituting the residence, then that portion of
17property shall be deemed the residence for the purposes of this
18Section.
19    "Taxable year" means the calendar year during which ad
20valorem property taxes payable in the next succeeding year are
21levied.
22    (c) Beginning in taxable year 2017, an assessment freeze
23homestead exemption is granted for real property that is
24improved with a permanent structure that is occupied as a
25residence by an applicant who (i) receives federal Supplemental
26Security Income during the taxable year, (ii) has a household

 

 

10000HB0156ham001- 26 -LRB100 03826 HLH 24801 a

1income that does not exceed the maximum income limitation,
2(iii) is liable for paying real property taxes on the property,
3and (iv) is an owner of record of the property or has a legal or
4equitable interest in the property as evidenced by a written
5instrument. This homestead exemption shall also apply to a
6leasehold interest in a parcel of property improved with a
7permanent structure that is a single family residence that is
8occupied as a residence by a person who (i) receives federal
9Supplemental Security Income during the taxable year, (ii) has
10a household income that does not exceed the maximum income
11limitation, (iii) has a legal or equitable ownership interest
12in the property as lessee, and (iv) is liable for the payment
13of real property taxes on that property.
14    The amount of the exemption is the equalized assessed value
15of the residence in the taxable year for which application is
16made minus the base amount.
17    When the applicant is a surviving spouse of an applicant
18for a prior year for the same residence for which an exemption
19under this Section has been granted, the base year and base
20amount for that residence are the same as for the applicant for
21the prior year.
22    Each year at the time the assessment books are certified to
23the County Clerk, the Board of Review or Board of Appeals shall
24give to the County Clerk a list of the assessed values of
25improvements on each parcel qualifying for this exemption that
26were added after the base year for this parcel and that

 

 

10000HB0156ham001- 27 -LRB100 03826 HLH 24801 a

1increased the assessed value of the property.
2    In the case of land improved with an apartment building
3owned and operated as a cooperative or a building that is a
4life care facility that qualifies as a cooperative, the maximum
5reduction from the equalized assessed value of the property is
6limited to the sum of the reductions calculated for each unit
7occupied as a residence by a person or persons (i) who receive
8federal Supplemental Security Income during the taxable year,
9(ii) with a household income that does not exceed the maximum
10income limitation, (iii) who are liable, by contract with the
11owner or owners of record, for paying real property taxes on
12the property, and (iv) who is an owner of record of a legal or
13equitable interest in the cooperative apartment building,
14other than a leasehold interest. In the instance of a
15cooperative where a homestead exemption has been granted under
16this Section, the cooperative association or its management
17firm shall credit the savings resulting from that exemption
18only to the apportioned tax liability of the owner who
19qualified for the exemption. Any person who willfully refuses
20to credit that savings to an owner who qualifies for the
21exemption is guilty of a Class B misdemeanor.
22    When a homestead exemption has been granted under this
23Section and an applicant then becomes a resident of a facility
24licensed under the Assisted Living and Shared Housing Act, the
25Nursing Home Care Act, the Specialized Mental Health
26Rehabilitation Act of 2013, the ID/DD Community Care Act, or

 

 

10000HB0156ham001- 28 -LRB100 03826 HLH 24801 a

1the MC/DD Act, the exemption shall be granted in subsequent
2years so long as the residence (i) continues to be occupied by
3the qualified applicant's spouse or (ii) if remaining
4unoccupied, is still owned by the qualified applicant for the
5homestead exemption.
6    When an individual dies who would have qualified for an
7exemption under this Section, and the surviving spouse does not
8independently qualify for this exemption because he or she does
9not receive Supplemental Security Income, the exemption under
10this Section shall be granted to the surviving spouse for the
11taxable year preceding and the taxable year of the death,
12provided that the surviving spouse meets all other
13qualifications for the granting of this exemption for those
14years.
15    When married persons maintain separate residences, the
16exemption provided for in this Section may be claimed by only
17one of such persons and for only one residence.
18    In counties having 3,000,000 or more inhabitants, to
19receive the exemption, a person may submit an application to
20the chief county assessment officer of the county in which the
21property is located during such period as may be specified by
22the chief county assessment officer. The chief county
23assessment officer in counties of 3,000,000 or more inhabitants
24shall annually give notice of the application period by mail or
25by publication. In counties having less than 3,000,000
26inhabitants, to receive the exemption, a person shall submit an

 

 

10000HB0156ham001- 29 -LRB100 03826 HLH 24801 a

1application by July 1 of each taxable year to the chief county
2assessment officer of the county in which the property is
3located. A county having less than 3,000,000 inhabitants may,
4by ordinance, establish a date for submission of applications
5that is different than July 1. The applicant shall submit with
6the application an affidavit verifying the applicant's
7qualifications for the exemption under this Section. The
8Department shall establish, by rule, a method for verifying the
9accuracy of such affidavits, and the chief county assessment
10officer may conduct audits of any taxpayer claiming an
11exemption under this Section to verify that the taxpayer is
12eligible to receive the exemption. Each application shall
13contain or be verified by a written declaration that it is made
14under the penalties of perjury. A taxpayer's signing a
15fraudulent application under this Act is perjury, as defined in
16Section 32-2 of the Criminal Code of 2012. The applications
17shall be clearly marked as applications for the Assessment
18Freeze Homestead Exemption for Persons Receiving Supplemental
19Security Income and must contain a notice that any taxpayer who
20receives the exemption is subject to an audit by the chief
21county assessment officer.
22    If an applicant fails to file the application required by
23this Section in a timely manner and this failure to file is due
24to a mental or physical condition sufficiently severe so as to
25render the applicant incapable of filing the application in a
26timely manner, the chief county assessment officer may extend

 

 

10000HB0156ham001- 30 -LRB100 03826 HLH 24801 a

1the filing deadline for a period of 30 days after the applicant
2regains the capability to file the application, but in no case
3may the filing deadline be extended beyond 3 months of the
4original filing deadline. In order to receive the extension
5provided in this paragraph, the applicant shall provide the
6chief county assessment officer with a signed statement from
7the applicant's physician, advanced practice nurse, or
8physician assistant stating the nature and extent of the
9condition, that, in the physician's, advanced practice
10nurse's, or physician assistant's opinion, the condition was so
11severe that it rendered the applicant incapable of filing the
12application in a timely manner, and the date on which the
13applicant regained the capability to file the application.
14    The chief county assessment officer may determine the
15eligibility of a life care facility that qualifies as a
16cooperative to receive the benefits provided by this Section by
17use of an affidavit, application, visual inspection,
18questionnaire, or other reasonable method in order to insure
19that the tax savings resulting from the exemption are credited
20by the management firm to the apportioned tax liability of each
21qualifying resident. The chief county assessment officer may
22request reasonable proof that the management firm has so
23credited that exemption.
24    Except as provided in this Section, all information
25received by the chief county assessment officer or the
26Department from applications filed under this Section, or from

 

 

10000HB0156ham001- 31 -LRB100 03826 HLH 24801 a

1any investigation conducted under the provisions of this
2Section, shall be confidential, except for official purposes or
3pursuant to official procedures for collection of any State or
4local tax or enforcement of any civil or criminal penalty or
5sanction imposed by this Act or by any statute or ordinance
6imposing a State or local tax. Any person who divulges any such
7information in any manner, except in accordance with a proper
8judicial order, is guilty of a Class A misdemeanor.
9    Nothing contained in this Section shall prevent the
10Director or chief county assessment officer from publishing or
11making available reasonable statistics concerning the
12operation of the exemption contained in this Section in which
13the contents of claims are grouped into aggregates in such a
14way that information contained in any individual claim shall
15not be disclosed.
16    (d) Each Chief County Assessment Officer shall annually
17publish a notice of availability of the exemption provided
18under this Section. The notice shall be published at least 60
19days but no more than 75 days prior to the date on which the
20application must be submitted to the Chief County Assessment
21Officer of the county in which the property is located. The
22notice shall appear in a newspaper of general circulation in
23the county.
24    Notwithstanding Sections 6 and 8 of the State Mandates Act,
25no reimbursement by the State is required for the
26implementation of any mandate created by this Section.
 

 

 

10000HB0156ham001- 32 -LRB100 03826 HLH 24801 a

1    (35 ILCS 200/15-175)
2    Sec. 15-175. General homestead exemption.
3    (a) Except as provided in Sections 15-176 and 15-177,
4homestead property is entitled to an annual homestead exemption
5limited, except as described here with relation to
6cooperatives, to a reduction in the equalized assessed value of
7homestead property equal to the increase in equalized assessed
8value for the current assessment year above the equalized
9assessed value of the property for 1977, up to the maximum
10reduction set forth below. If however, the 1977 equalized
11assessed value upon which taxes were paid is subsequently
12determined by local assessing officials, the Property Tax
13Appeal Board, or a court to have been excessive, the equalized
14assessed value which should have been placed on the property
15for 1977 shall be used to determine the amount of the
16exemption.
17    (b) Except as provided in Section 15-176, the maximum
18reduction before taxable year 2004 shall be $4,500 in counties
19with 3,000,000 or more inhabitants and $3,500 in all other
20counties. Except as provided in Sections 15-176 and 15-177, for
21taxable years 2004 through 2007, the maximum reduction shall be
22$5,000, for taxable year 2008, the maximum reduction is $5,500,
23and, for taxable years 2009 through 2011, the maximum reduction
24is $6,000 in all counties. For taxable years 2012 through 2016
25and thereafter, the maximum reduction is $7,000 in counties

 

 

10000HB0156ham001- 33 -LRB100 03826 HLH 24801 a

1with 3,000,000 or more inhabitants and $6,000 in all other
2counties. For taxable years 2017 and thereafter, the maximum
3reduction is $8,000 in all counties. If a county has elected to
4subject itself to the provisions of Section 15-176 as provided
5in subsection (k) of that Section, then, for the first taxable
6year only after the provisions of Section 15-176 no longer
7apply, for owners who, for the taxable year, have not been
8granted a senior citizens assessment freeze homestead
9exemption under Section 15-172 or a long-time occupant
10homestead exemption under Section 15-177, there shall be an
11additional exemption of $5,000 for owners with a household
12income of $30,000 or less.
13    (c) In counties with fewer than 3,000,000 inhabitants, if,
14based on the most recent assessment, the equalized assessed
15value of the homestead property for the current assessment year
16is greater than the equalized assessed value of the property
17for 1977, the owner of the property shall automatically receive
18the exemption granted under this Section in an amount equal to
19the increase over the 1977 assessment up to the maximum
20reduction set forth in this Section.
21    (d) If in any assessment year beginning with the 2000
22assessment year, homestead property has a pro-rata valuation
23under Section 9-180 resulting in an increase in the assessed
24valuation, a reduction in equalized assessed valuation equal to
25the increase in equalized assessed value of the property for
26the year of the pro-rata valuation above the equalized assessed

 

 

10000HB0156ham001- 34 -LRB100 03826 HLH 24801 a

1value of the property for 1977 shall be applied to the property
2on a proportionate basis for the period the property qualified
3as homestead property during the assessment year. The maximum
4proportionate homestead exemption shall not exceed the maximum
5homestead exemption allowed in the county under this Section
6divided by 365 and multiplied by the number of days the
7property qualified as homestead property.
8    (d-1) In counties with 3,000,000 or more inhabitants, where
9the chief county assessment officer provides a notice of
10discovery, if a property is not occupied by its owner as a
11principal residence as of January 1 of the current tax year,
12then the property owner shall notify the chief county
13assessment officer of that fact on a form prescribed by the
14chief county assessment officer. That notice must be received
15by the chief county assessment officer on or before March 1 of
16the collection year. If mailed, the form shall be sent by
17certified mail, return receipt requested. If the form is
18provided in person, the chief county assessment officer shall
19provide a date stamped copy of the notice. Failure to provide
20timely notice pursuant to this subsection (d-1) shall result in
21the exemption being treated as an erroneous exemption. Upon
22timely receipt of the notice for the current tax year, no
23exemption shall be applied to the property for the current tax
24year. If the exemption is not removed upon timely receipt of
25the notice by the chief assessment officer, then the error is
26considered granted as a result of a clerical error or omission

 

 

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1on the part of the chief county assessment officer as described
2in subsection (h) of Section 9-275, and the property owner
3shall not be liable for the payment of interest and penalties
4due to the erroneous exemption for the current tax year for
5which the notice was filed after the date that notice was
6timely received pursuant to this subsection. Notice provided
7under this subsection shall not constitute a defense or amnesty
8for prior year erroneous exemptions.
9    For the purposes of this subsection (d-1):
10    "Collection year" means the year in which the first and
11second installment of the current tax year is billed.
12    "Current tax year" means the year prior to the collection
13year.
14    (e) The chief county assessment officer may, when
15considering whether to grant a leasehold exemption under this
16Section, require the following conditions to be met:
17        (1) that a notarized application for the exemption,
18    signed by both the owner and the lessee of the property,
19    must be submitted each year during the application period
20    in effect for the county in which the property is located;
21        (2) that a copy of the lease must be filed with the
22    chief county assessment officer by the owner of the
23    property at the time the notarized application is
24    submitted;
25        (3) that the lease must expressly state that the lessee
26    is liable for the payment of property taxes; and

 

 

10000HB0156ham001- 36 -LRB100 03826 HLH 24801 a

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

 

 

10000HB0156ham001- 37 -LRB100 03826 HLH 24801 a

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

 

 

10000HB0156ham001- 38 -LRB100 03826 HLH 24801 a

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

 

 

10000HB0156ham001- 39 -LRB100 03826 HLH 24801 a

1Department shall issue guidelines establishing a method for
2verifying the accuracy of the affidavits filed by applicants
3under this paragraph. The applications shall be clearly marked
4as applications for the Additional General Homestead
5Exemption.
6    (i-5) This subsection (i-5) applies to counties with
73,000,000 or more inhabitants. In the event of a sale of
8homestead property, the homestead exemption shall remain in
9effect for the remainder of the assessment year of the sale.
10Upon receipt of a transfer declaration transmitted by the
11recorder pursuant to Section 31-30 of the Real Estate Transfer
12Tax Law for property receiving an exemption under this Section,
13the assessor shall mail a notice and forms to the new owner of
14the property providing information pertaining to the rules and
15applicable filing periods for applying or reapplying for
16homestead exemptions under this Code for which the property may
17be eligible. If the new owner fails to apply or reapply for a
18homestead exemption during the applicable filing period or the
19property no longer qualifies for an existing homestead
20exemption, the assessor shall cancel such exemption for any
21ensuing assessment year.
22    (j) In counties with fewer than 3,000,000 inhabitants, in
23the event of a sale of homestead property the homestead
24exemption shall remain in effect for the remainder of the
25assessment year of the sale. The assessor or chief county
26assessment officer may require the new owner of the property to

 

 

10000HB0156ham001- 40 -LRB100 03826 HLH 24801 a

1apply for the homestead exemption for the following assessment
2year.
3    (k) Notwithstanding Sections 6 and 8 of the State Mandates
4Act, no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
7eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
899-851, eff. 8-19-16.)
 
9    (35 ILCS 200/15-178 new)
10    Sec. 15-178. The statewide long-time occupant homestead
11exemption.
12    (a) For taxable years 2017 and thereafter, homestead
13property that is occupied as a principal residence by a
14long-time occupant is entitled to an annual homestead exemption
15equal to a reduction in the property's equalized assessed value
16calculated as provided in subsection (b) of this Section.
17    (b) The amount of the reduction shall be as follows:
18        (1) if the taxpayer has occupied the property as his or
19    her principal residence for not fewer than 8 but not more
20    than 11 years as of January 1 of the taxable year, then the
21    amount of the reduction shall be 25% of the amount of the
22    general homestead exemption under Section 15-175 for the
23    taxable year;
24        (2) if the taxpayer has occupied the property as his or
25    her principal residence for not fewer than 11 but not more

 

 

10000HB0156ham001- 41 -LRB100 03826 HLH 24801 a

1    than 16 years as of January 1 of the taxable year, then the
2    amount of the reduction shall be 35% of the amount of the
3    general homestead exemption under Section 15-175 for the
4    taxable year;
5        (3) if the taxpayer has occupied the property as his or
6    her principal residence for not fewer than 16 but not more
7    than 21 years as of January 1 of the taxable year, then the
8    amount of the reduction shall be 45% of the amount of the
9    general homestead exemption under Section 15-175 for the
10    taxable year; and
11        (4) if the taxpayer has occupied the property as his or
12    her principal residence for 21 years or more as of January
13    1 of the taxable year, then the amount of the reduction
14    shall be 60% of the amount of the general homestead
15    exemption under Section 15-175 for the taxable year.
16    (c) In the case of an apartment building owned and operated
17as a cooperative or a life care facility that contains
18residential units that qualify as homestead property of a
19long-time occupant under this Section, the maximum cumulative
20exemption amount attributed to the entire building or facility
21shall not exceed the sum of the exemptions calculated for each
22unit that is homestead property of a long-time occupant. The
23cooperative association, management firm, or other person or
24entity that manages or controls the cooperative apartment
25building or life care facility shall credit the exemption
26attributable to each residential unit only to the apportioned

 

 

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1tax liability of the long-time occupant of that unit. Any
2person who willfully refuses to so credit the exemption is
3guilty of a Class B misdemeanor.
4    (d) To receive the exemption, a person must submit an
5application to the county assessor during the period specified
6by the county assessor.
7    (e) As used in this Section:
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 owned and
12occupied by a long-time occupant as his or her principal
13dwelling place, or that is a leasehold interest on which a
14single family residence is situated, that is occupied as a
15residence by a long-time occupant who has a legal or equitable
16interest therein evidenced by a written instrument, as an owner
17or as a lessee, and on which the long-time occupant is liable
18for the payment of property taxes. Residential units in an
19apartment building owned and operated as a cooperative, or as a
20life care facility, which are occupied by persons who hold a
21legal or equitable interest in the cooperative apartment
22building or life care facility as owners or lessees, and who
23are liable by contract for the payment of property taxes, are
24included within this definition of homestead property. A
25homestead includes the dwelling place, appurtenant structures,
26and so much of the surrounding land constituting the parcel on

 

 

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1which the 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 within
5that description.
6    "Long-time occupant" means an individual who (i) for at
7least 8 continuous years as of January 1 of the taxable year,
8has occupied the same homestead property as a principal
9residence and domicile and (ii) has a household income of
10$100,000 or less.
11    "Household income" has the meaning set forth under Section
1215-172 of this Code.
13    (f) Notwithstanding Sections 6 and 8 of the State Mandates
14Act, no reimbursement by the State is required for the
15implementation of any mandate created by this Section.
 
16    Section 10. The Senior Citizens Real Estate Tax Deferral
17Act is amended by changing Section 3 as follows:
 
18    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
19    Sec. 3. A taxpayer may, on or before March 1 of each year,
20apply to the county collector of the county where his
21qualifying property is located, or to the official designated
22by a unit of local government to collect special assessments on
23the qualifying property, as the case may be, for a deferral of
24all or a part of real estate taxes payable during that year for

 

 

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1the preceding year in the case of real estate taxes other than
2special assessments, or for a deferral of any installments
3payable during that year in the case of special assessments, on
4all or part of his qualifying property. The application shall
5be on a form prescribed by the Department and furnished by the
6collector, (a) showing that the applicant will be 65 years of
7age or older by June 1 of the year for which a tax deferral is
8claimed, (b) describing the property and verifying that the
9property is qualifying property as defined in Section 2, (c)
10certifying that the taxpayer has owned and occupied as his
11residence such property or other qualifying property in the
12State for at least the last 3 years except for any periods
13during which the taxpayer may have temporarily resided in a
14nursing or sheltered care home, and (d) specifying whether the
15deferral is for all or a part of the taxes, and, if for a part,
16the amount of deferral applied for. As to qualifying property
17not having a separate assessed valuation, the taxpayer shall
18also file with the county collector a written appraisal of the
19property prepared by a qualified real estate appraiser together
20with a certificate signed by the appraiser stating that he has
21personally examined the property and setting forth the value of
22the land and the value of the buildings thereon occupied by the
23taxpayer as his residence.
24    The collector shall grant the tax deferral provided such
25deferral does not exceed funds available in the Senior Citizens
26Real Estate Deferred Tax Revolving Fund and provided that the

 

 

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1owner or owners of such real property have entered into a tax
2deferral and recovery agreement with the collector on behalf of
3the county or other unit of local government, which agreement
4expressly states:
5    (1) That the total amount of taxes deferred under this Act,
6plus interest, for the year for which a tax deferral is claimed
7as well as for those previous years for which taxes are not
8delinquent and for which such deferral has been claimed may not
9exceed 80% of the taxpayer's equity interest in the property
10for which taxes are to be deferred and that, if the total
11deferred taxes plus interest equals 80% of the taxpayer's
12equity interest in the property, the taxpayer shall thereafter
13pay the annual interest due on such deferred taxes plus
14interest so that total deferred taxes plus interest will not
15exceed such 80% of the taxpayer's equity interest in the
16property. For Effective as of the January 1, 2011 assessment
17year or tax year 2012 through assessment year 2016 and
18thereafter, the total amount of any such deferral shall not
19exceed $5,000 per taxpayer in each tax year. For the 2017
20assessment year and thereafter, the total amount of any such
21deferral shall not exceed $6,000 per taxpayer in each tax year.
22    (2) That any real estate taxes deferred under this Act and
23any interest accrued thereon at the rate of 6% per year are a
24lien on the real estate and improvements thereon until paid. No
25sale or transfer of such real property may be legally closed
26and recorded until the taxes which would otherwise have been

 

 

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1due on the property, plus accrued interest, have been paid
2unless the collector certifies in writing that an arrangement
3for prompt payment of the amount due has been made with his
4office. The same shall apply if the property is to be made the
5subject of a contract of sale.
6    (3) That upon the death of the taxpayer claiming the
7deferral the heirs-at-law, assignees or legatees shall have
8first priority to the real property upon which taxes have been
9deferred by paying in full the total taxes which would
10otherwise have been due, plus interest. However, if such
11heir-at-law, assignee, or legatee is a surviving spouse, the
12tax deferred status of the property shall be continued during
13the life of that surviving spouse if the spouse is 55 years of
14age or older within 6 months of the date of death of the
15taxpayer and enters into a tax deferral and recovery agreement
16before the time when deferred taxes become due under this
17Section. Any additional taxes deferred, plus interest, on the
18real property under a tax deferral and recovery agreement
19signed by a surviving spouse shall be added to the taxes and
20interest which would otherwise have been due, and the payment
21of which has been postponed during the life of such surviving
22spouse, in determining the 80% equity requirement provided by
23this Section.
24    (4) That if the taxes due, plus interest, are not paid by
25the heir-at-law, assignee or legatee or if payment is not
26postponed during the life of a surviving spouse, the deferred

 

 

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1taxes and interest shall be recovered from the estate of the
2taxpayer within one year of the date of his death. In addition,
3deferred real estate taxes and any interest accrued thereon are
4due within 90 days after any tax deferred property ceases to be
5qualifying property as defined in Section 2.
6    If payment is not made when required by this Section,
7foreclosure proceedings may be instituted under the Property
8Tax Code.
9    (5) That any joint owner has given written prior approval
10for such agreement, which written approval shall be made a part
11of such agreement.
12    (6) That a guardian for a person under legal disability
13appointed for a taxpayer who otherwise qualifies under this Act
14may act for the taxpayer in complying with this Act.
15    (7) That a taxpayer or his agent has provided to the
16satisfaction of the collector, sufficient evidence that the
17qualifying property on which the taxes are to be deferred is
18insured against fire or casualty loss for at least the total
19amount of taxes which have been deferred.
20    If the taxes to be deferred are special assessments, the
21unit of local government making the assessments shall forward a
22copy of the agreement entered into pursuant to this Section and
23the bills for such assessments to the county collector of the
24county in which the qualifying property is located.
25(Source: P.A. 97-481, eff. 8-22-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".