101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2807

 

Introduced , by Rep. Mary Edly-Allen

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). Provides that, for taxable years 2019 and thereafter, the maximum reduction under the general homestead exemption is $10,000 in counties with 3,000,000 or more inhabitants and $8,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.


LRB101 10467 HLH 55573 b

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

 

 

A BILL FOR

 

HB2807LRB101 10467 HLH 55573 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
5Sections 15-170 and 15-175 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 years 2017 and 2018
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 2019 and thereafter, the the maximum
12reduction is $8,000 in all counties.
13    For land improved with an apartment building owned and
14operated as a cooperative, the maximum reduction from the value
15of the property, as equalized by the Department, shall be
16multiplied by the number of apartments or units occupied by a
17person 65 years of age or older who is liable, by contract with
18the owner or owners of record, for paying property taxes on the
19property and is an owner of record of a legal or equitable
20interest in the cooperative apartment building, other than a
21leasehold interest. For land improved with a life care
22facility, the maximum reduction from the value of the property,
23as equalized by the Department, shall be multiplied by the
24number of apartments or units occupied by persons 65 years of
25age or older, irrespective of any legal, equitable, or
26leasehold interest in the facility, who are liable, under a

 

 

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

 

 

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1made during the application period in effect for the county of
2his residence.
3    Beginning with assessment year 2003, for taxes payable in
42004, property that is first occupied as a residence after
5January 1 of any assessment year by a person who is eligible
6for the senior citizens homestead exemption under this Section
7must be granted a pro-rata exemption for the assessment year.
8The amount of the pro-rata exemption is the exemption allowed
9in the county under this Section divided by 365 and multiplied
10by the number of days during the assessment year the property
11is occupied as a residence by a person eligible for the
12exemption under this Section. The chief county assessment
13officer must adopt reasonable procedures to establish
14eligibility for this pro-rata exemption.
15    The assessor or chief county assessment officer may
16determine the eligibility of a life care facility to receive
17the benefits provided by this Section, by affidavit,
18application, visual inspection, questionnaire or other
19reasonable methods in order to insure that the tax savings
20resulting from the exemption are credited by the management
21firm to the apportioned tax liability of each qualifying
22resident. The assessor may request reasonable proof that the
23management firm has so credited the exemption.
24    The chief county assessment officer of each county with
25less than 3,000,000 inhabitants shall provide to each person
26allowed a homestead exemption under this Section a form to

 

 

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1designate any other person to receive a duplicate of any notice
2of delinquency in the payment of taxes assessed and levied
3under this Code on the property of the person receiving the
4exemption. The duplicate notice shall be in addition to the
5notice required to be provided to the person receiving the
6exemption, and shall be given in the manner required by this
7Code. The person filing the request for the duplicate notice
8shall pay a fee of $5 to cover administrative costs to the
9supervisor of assessments, who shall then file the executed
10designation with the county collector. Notwithstanding any
11other provision of this Code to the contrary, the filing of
12such an executed designation requires the county collector to
13provide duplicate notices as indicated by the designation. A
14designation may be rescinded by the person who executed such
15designation at any time, in the manner and form required by the
16chief county assessment officer.
17    The assessor or chief county assessment officer may
18determine the eligibility of residential property to receive
19the homestead exemption provided by this Section by
20application, visual inspection, questionnaire or other
21reasonable methods. The determination shall be made in
22accordance with guidelines established by the Department.
23    In counties with 3,000,000 or more inhabitants, beginning
24in taxable year 2010, each taxpayer who has been granted an
25exemption under this Section must reapply on an annual basis.
26The chief county assessment officer shall mail the application

 

 

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1to the taxpayer. In counties with less than 3,000,000
2inhabitants, the county board may by resolution provide that if
3a person has been granted a homestead exemption under this
4Section, the person qualifying need not reapply for the
5exemption.
6    In counties with less than 3,000,000 inhabitants, if the
7assessor or chief county assessment officer requires annual
8application for verification of eligibility for an exemption
9once granted under this Section, the application shall be
10mailed to the taxpayer.
11    The assessor or chief county assessment officer shall
12notify each person who qualifies for an exemption under this
13Section that the person may also qualify for deferral of real
14estate taxes under the Senior Citizens Real Estate Tax Deferral
15Act. The notice shall set forth the qualifications needed for
16deferral of real estate taxes, the address and telephone number
17of county collector, and a statement that applications for
18deferral of real estate taxes may be obtained from the county
19collector.
20    Notwithstanding Sections 6 and 8 of the State Mandates Act,
21no reimbursement by the State is required for the
22implementation of any mandate created by this Section.
23(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
 
24    (35 ILCS 200/15-175)
25    Sec. 15-175. General homestead exemption.

 

 

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1    (a) Except as provided in Sections 15-176 and 15-177,
2homestead property is entitled to an annual homestead exemption
3limited, except as described here with relation to cooperatives
4or life care facilities, to a reduction in the equalized
5assessed value of homestead property equal to the increase in
6equalized assessed value for the current assessment year above
7the equalized assessed value of the property for 1977, up to
8the maximum reduction set forth below. If however, the 1977
9equalized assessed value upon which taxes were paid is
10subsequently determined by local assessing officials, the
11Property Tax Appeal Board, or a court to have been excessive,
12the equalized assessed value which should have been placed on
13the property for 1977 shall be used to determine the amount of
14the exemption.
15    (b) Except as provided in Section 15-176, the maximum
16reduction before taxable year 2004 shall be $4,500 in counties
17with 3,000,000 or more inhabitants and $3,500 in all other
18counties. Except as provided in Sections 15-176 and 15-177, for
19taxable years 2004 through 2007, the maximum reduction shall be
20$5,000, for taxable year 2008, the maximum reduction is $5,500,
21and, for taxable years 2009 through 2011, the maximum reduction
22is $6,000 in all counties. For taxable years 2012 through 2016,
23the maximum reduction is $7,000 in counties with 3,000,000 or
24more inhabitants and $6,000 in all other counties. For taxable
25years 2017 and 2018 thereafter, the maximum reduction is
26$10,000 in counties with 3,000,000 or more inhabitants and

 

 

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1$6,000 in all other counties. For taxable years 2019 and
2thereafter, the maximum reduction is $10,000 in counties with
33,000,000 or more inhabitants and $8,000 in all other counties.
4If a county has elected to subject itself to the provisions of
5Section 15-176 as provided in subsection (k) of that Section,
6then, for the first taxable year only after the provisions of
7Section 15-176 no longer apply, for owners who, for the taxable
8year, have not been granted a senior citizens assessment freeze
9homestead exemption under Section 15-172 or a long-time
10occupant homestead exemption under Section 15-177, there shall
11be an additional exemption of $5,000 for owners with a
12household income 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

 

 

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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

 

 

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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

 

 

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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, the maximum reduction from the equalized
8assessed value shall be limited to the increase in the value
9above the equalized assessed value of the property for 1977, up
10to the maximum reduction set forth above, multiplied by the
11number of apartments or units occupied by a person or persons
12who is liable, by contract with the owner or owners of record,
13for paying property taxes on the property and is an owner of
14record of a legal or equitable interest in the cooperative
15apartment building, other than a leasehold interest. For land
16improved with a life care facility, the maximum reduction from
17the value of the property, as equalized by the Department,
18shall be multiplied by the number of apartments or units
19occupied by a person or persons, irrespective of any legal,
20equitable, or leasehold interest in the facility, who are
21liable, under a life care contract with the owner or owners of
22record of the facility, for paying property taxes on the
23property. For purposes of this Section, the term "life care
24facility" has the meaning stated in Section 15-170.
25    "Household", as used in this Section, means the owner, the
26spouse of the owner, and all persons using the residence of the

 

 

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

 

 

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1Department, provided that the taxpayer applying for an
2additional general exemption under this Section shall submit to
3the chief county assessment officer an application with an
4affidavit of the applicant's total household income, age,
5marital status (and, if married, the name and address of the
6applicant's spouse, if known), and principal dwelling place of
7members of the household on January 1 of the taxable year. The
8Department shall issue guidelines establishing a method for
9verifying the accuracy of the affidavits filed by applicants
10under this paragraph. The applications shall be clearly marked
11as applications for the Additional General Homestead
12Exemption.
13    (i-5) This subsection (i-5) applies to counties with
143,000,000 or more inhabitants. In the event of a sale of
15homestead property, the homestead exemption shall remain in
16effect for the remainder of the assessment year of the sale.
17Upon receipt of a transfer declaration transmitted by the
18recorder pursuant to Section 31-30 of the Real Estate Transfer
19Tax Law for property receiving an exemption under this Section,
20the assessor shall mail a notice and forms to the new owner of
21the property providing information pertaining to the rules and
22applicable filing periods for applying or reapplying for
23homestead exemptions under this Code for which the property may
24be eligible. If the new owner fails to apply or reapply for a
25homestead exemption during the applicable filing period or the
26property no longer qualifies for an existing homestead

 

 

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1exemption, the assessor shall cancel such exemption for any
2ensuing assessment year.
3    (j) In counties with fewer than 3,000,000 inhabitants, in
4the event of a sale of homestead property the homestead
5exemption shall remain in effect for the remainder of the
6assessment year of the sale. The assessor or chief county
7assessment officer may require the new owner of the property to
8apply for the homestead exemption for the following assessment
9year.
10    (k) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13    (l) The changes made to this Section by this amendatory Act
14of the 100th General Assembly are effective for the 2018 tax
15year and thereafter.
16(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
1799-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
188-25-17; 100-1077, eff. 1-1-19.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.