100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5733

 

Introduced , by Rep. David S. Olsen

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. Provides that, for taxable years 2018 and thereafter, the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties. Indexes the maximum reductions in all counties to the Consumer Price Index. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5733LRB100 20895 HLH 36401 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 15-170 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior citizens homestead exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

 

 

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500. For taxable years 2008 through 2011,
4the maximum reduction is $4,000 in all counties. For taxable
5year 2012, the maximum reduction is $5,000 in counties with
63,000,000 or more inhabitants and $4,000 in all other counties.
7For taxable years 2013 through 2016, the maximum reduction is
8$5,000 in all counties. For taxable year years 2017 and
9thereafter, the maximum reduction is $8,000 in counties with
103,000,000 or more inhabitants and $5,000 in all other counties.
11For taxable years 2018 and thereafter, the maximum reduction is
12$8,000 in all counties; thereafter, the maximum reduction is
13the maximum reduction for the prior taxable year increased by
14the annual rate of increase for the previous calendar year in
15the Consumer Price Index for All Urban Consumers for all items
16published by the United States Bureau of Labor Statistics.
17    For land improved with an apartment building owned and
18operated as a cooperative, the maximum reduction from the value
19of the property, as equalized by the Department, shall be
20multiplied by the number of apartments or units occupied by a
21person 65 years of age or older who is liable, by contract with
22the owner or owners of record, for paying property taxes on the
23property and is an owner of record of a legal or equitable
24interest in the cooperative apartment building, other than a
25leasehold interest. For land improved with a life care
26facility, the maximum reduction from the value of the property,

 

 

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1as equalized by the Department, shall be multiplied by the
2number of apartments or units occupied by persons 65 years of
3age or older, irrespective of any legal, equitable, or
4leasehold interest in the facility, who are liable, under a
5contract with the owner or owners of record of the facility,
6for paying property taxes on the property. In a cooperative or
7a life care facility where a homestead exemption has been
8granted, the cooperative association or the management firm of
9the cooperative or facility shall credit the savings resulting
10from that exemption only to the apportioned tax liability of
11the owner or resident who qualified for the exemption. Any
12person who willfully refuses to so credit the savings shall be
13guilty of a Class B misdemeanor. Under this Section and
14Sections 15-175, 15-176, and 15-177, "life care facility" means
15a facility, as defined in Section 2 of the Life Care Facilities
16Act, with which the applicant for the homestead exemption has a
17life care contract as defined in that Act.
18    When a homestead exemption has been granted under this
19Section and the person qualifying subsequently becomes a
20resident of a facility licensed under the Assisted Living and
21Shared Housing Act, the Nursing Home Care Act, the Specialized
22Mental Health Rehabilitation Act of 2013, the ID/DD Community
23Care Act, or the MC/DD Act, the exemption shall continue so
24long as the residence continues to be occupied by the
25qualifying person's spouse if the spouse is 65 years of age or
26older, or if the residence remains unoccupied but is still

 

 

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1owned by the person qualified for the homestead exemption.
2    A person who will be 65 years of age during the current
3assessment year shall be eligible to apply for the homestead
4exemption during that assessment year. Application shall be
5made during the application period in effect for the county of
6his residence.
7    Beginning with assessment year 2003, for taxes payable in
82004, property that is first occupied as a residence after
9January 1 of any assessment year by a person who is eligible
10for the senior citizens homestead exemption under this Section
11must be granted a pro-rata exemption for the assessment year.
12The amount of the pro-rata exemption is the exemption allowed
13in the county under this Section divided by 365 and multiplied
14by the number of days during the assessment year the property
15is occupied as a residence by a person eligible for the
16exemption under this Section. The chief county assessment
17officer must adopt reasonable procedures to establish
18eligibility for this pro-rata exemption.
19    The assessor or chief county assessment officer may
20determine the eligibility of a life care facility to receive
21the benefits provided by this Section, by affidavit,
22application, visual inspection, questionnaire or other
23reasonable methods in order to insure that the tax savings
24resulting from the exemption are credited by the management
25firm to the apportioned tax liability of each qualifying
26resident. The assessor may request reasonable proof that the

 

 

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1management firm has so credited the exemption.
2    The chief county assessment officer of each county with
3less than 3,000,000 inhabitants shall provide to each person
4allowed a homestead exemption under this Section a form to
5designate any other person to receive a duplicate of any notice
6of delinquency in the payment of taxes assessed and levied
7under this Code on the property of the person receiving the
8exemption. The duplicate notice shall be in addition to the
9notice required to be provided to the person receiving the
10exemption, and shall be given in the manner required by this
11Code. The person filing the request for the duplicate notice
12shall pay a fee of $5 to cover administrative costs to the
13supervisor of assessments, who shall then file the executed
14designation with the county collector. Notwithstanding any
15other provision of this Code to the contrary, the filing of
16such an executed designation requires the county collector to
17provide duplicate notices as indicated by the designation. A
18designation may be rescinded by the person who executed such
19designation at any time, in the manner and form required by the
20chief county assessment officer.
21    The assessor or chief county assessment officer may
22determine the eligibility of residential property to receive
23the homestead exemption provided by this Section by
24application, visual inspection, questionnaire or other
25reasonable methods. The determination shall be made in
26accordance with guidelines established by the Department.

 

 

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1    In counties with 3,000,000 or more inhabitants, beginning
2in taxable year 2010, each taxpayer who has been granted an
3exemption under this Section must reapply on an annual basis.
4The chief county assessment officer shall mail the application
5to the taxpayer. In counties with less than 3,000,000
6inhabitants, the county board may by resolution provide that if
7a person has been granted a homestead exemption under this
8Section, the person qualifying need not reapply for the
9exemption.
10    In counties with less than 3,000,000 inhabitants, if the
11assessor or chief county assessment officer requires annual
12application for verification of eligibility for an exemption
13once granted under this Section, the application shall be
14mailed to the taxpayer.
15    The assessor or chief county assessment officer shall
16notify each person who qualifies for an exemption under this
17Section that the person may also qualify for deferral of real
18estate taxes under the Senior Citizens Real Estate Tax Deferral
19Act. The notice shall set forth the qualifications needed for
20deferral of real estate taxes, the address and telephone number
21of county collector, and a statement that applications for
22deferral of real estate taxes may be obtained from the county
23collector.
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.

 

 

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1(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.