103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3509

 

Introduced 2/17/2023, by Rep. Curtis J. Tarver, II

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2024 through 2026, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately.


LRB103 30437 HLH 56868 b

 

 

A BILL FOR

 

HB3509LRB103 30437 HLH 56868 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 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead
10exemption limited, except as described here with relation to
11cooperatives or life care facilities, to a reduction in the
12equalized assessed value of homestead property equal to the
13increase in equalized assessed value for the current
14assessment year above the equalized assessed value of the
15property for 1977, up to the maximum reduction set forth
16below. If however, the 1977 equalized assessed value upon
17which taxes were paid is subsequently determined by local
18assessing officials, the Property Tax Appeal Board, or a court
19to have been excessive, the equalized assessed value which
20should have been placed on the property for 1977 shall be used
21to determine the amount of the exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties

 

 

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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177,
3for taxable years 2004 through 2007, the maximum reduction
4shall be $5,000, for taxable year 2008, the maximum reduction
5is $5,500, and, for taxable years 2009 through 2011, the
6maximum reduction is $6,000 in all counties. For taxable years
72012 through 2016, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable years 2017 through 2022, the maximum
10reduction is $10,000 in counties with 3,000,000 or more
11inhabitants and $6,000 in all other counties. For taxable year
12years 2023 and thereafter, the maximum reduction is $10,000 in
13counties with 3,000,000 or more inhabitants, $8,000 in
14counties that are contiguous to a county of 3,000,000 or more
15inhabitants, and $6,000 in all other counties. For taxable
16years 2024 and thereafter, the maximum reduction is $50,000 in
17counties with 3,000,000 or more inhabitants, $8,000 in
18counties that are contiguous to a county of 3,000,000 or more
19inhabitants, and $6,000 in all other counties. If a county has
20elected to subject itself to the provisions of Section 15-176
21as provided in subsection (k) of that Section, then, for the
22first taxable year only after the provisions of Section 15-176
23no longer apply, for owners who, for the taxable year, have not
24been granted a senior citizens assessment freeze homestead
25exemption under Section 15-172 or a long-time occupant
26homestead exemption under Section 15-177, there shall be an

 

 

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1additional exemption of $5,000 for owners with a household
2income of $30,000 or less.
3    (c) In counties with fewer than 3,000,000 inhabitants, if,
4based on the most recent assessment, the equalized assessed
5value of the homestead property for the current assessment
6year is greater than the equalized assessed value of the
7property for 1977, the owner of the property shall
8automatically receive the exemption granted under this Section
9in an amount equal to the increase over the 1977 assessment up
10to the maximum reduction set forth in this Section.
11    Notwithstanding any other provision of law, for taxable
12years 2024 through 2026, the property tax liability for
13homestead property in Cook County that contains a
14single-family home or a multi-unit residential dwelling with
15fewer than 3 units shall not exceed the adjusted property tax
16liability for the property for the applicable tax year.
17    (d) If in any assessment year beginning with the 2000
18assessment year, homestead property has a pro-rata valuation
19under Section 9-180 resulting in an increase in the assessed
20valuation, a reduction in equalized assessed valuation equal
21to the increase in equalized assessed value of the property
22for the year of the pro-rata valuation above the equalized
23assessed value of the property for 1977 shall be applied to the
24property on a proportionate basis for the period the property
25qualified as homestead property during the assessment year.
26The maximum proportionate homestead exemption shall not exceed

 

 

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1the maximum homestead exemption allowed in the county under
2this Section divided by 365 and multiplied by the number of
3days the property qualified as homestead property.
4    (d-1) In counties with 3,000,000 or more inhabitants,
5where the chief county assessment officer provides a notice of
6discovery, if a property is not occupied by its owner as a
7principal residence as of January 1 of the current tax year,
8then the property owner shall notify the chief county
9assessment officer of that fact on a form prescribed by the
10chief county assessment officer. That notice must be received
11by the chief county assessment officer on or before March 1 of
12the collection year. If mailed, the form shall be sent by
13certified mail, return receipt requested. If the form is
14provided in person, the chief county assessment officer shall
15provide a date stamped copy of the notice. Failure to provide
16timely notice pursuant to this subsection (d-1) shall result
17in the exemption being treated as an erroneous exemption. Upon
18timely receipt of the notice for the current tax year, no
19exemption shall be applied to the property for the current tax
20year. If the exemption is not removed upon timely receipt of
21the notice by the chief assessment officer, then the error is
22considered granted as a result of a clerical error or omission
23on the part of the chief county assessment officer as
24described in subsection (h) of Section 9-275, and the property
25owner shall not be liable for the payment of interest and
26penalties due to the erroneous exemption for the current tax

 

 

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

 

 

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

 

 

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1by 5% over the prior year. If the property did not have a
2residential equalized assessed value for the base year, then
3the assessor shall first determine an initial property tax
4liability for the property by comparison with other properties
5having physical and economic characteristics similar to those
6of the subject property.
7    "Base year" means the 2018 tax year, or, if the property is
8sold or ownership is otherwise transferred in tax year 2024,
92025, or 2026, then the year of the sale or transfer
10    "Homestead property" under this Section includes
11residential property that is occupied by its owner or owners
12as his or their principal dwelling place, or that is a
13leasehold interest on which a single family residence is
14situated, which is occupied as a residence by a person who has
15an ownership interest therein, legal or equitable or as a
16lessee, and on which the person is liable for the payment of
17property taxes. For land improved with an apartment building
18owned and operated as a cooperative, the maximum reduction
19from the equalized assessed value shall be limited to the
20increase in the value above the equalized assessed value of
21the property for 1977, up to the maximum reduction set forth
22above, multiplied by the number of apartments or units
23occupied by a person or persons who is liable, by contract with
24the owner or owners of record, for paying property taxes on the
25property and is an owner of record of a legal or equitable
26interest in the cooperative apartment building, other than a

 

 

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1leasehold interest. For land improved with a life care
2facility, the maximum reduction from the value of the
3property, as equalized by the Department, shall be multiplied
4by the number of apartments or units occupied by a person or
5persons, irrespective of any legal, equitable, or leasehold
6interest in the facility, who are liable, under a life care
7contract with the owner or owners of record of the facility,
8for paying property taxes on the property. For purposes of
9this Section, the term "life care facility" has the meaning
10stated in Section 15-170.
11    "Household", as used in this Section, means the owner, the
12spouse of the owner, and all persons using the residence of the
13owner as their principal place of residence.
14    "Household income", as used in this Section, means the
15combined income of the members of a household for the calendar
16year preceding the taxable year.
17    "Income", as used in this Section, has the same meaning as
18provided in Section 3.07 of the Senior Citizens and Persons
19with Disabilities Property Tax Relief Act, except that
20"income" does not include veteran's benefits.
21    (g) In a cooperative or life care facility where a
22homestead exemption has been granted, the cooperative
23association or the management of the cooperative or life care
24facility shall credit the savings resulting from that
25exemption only to the apportioned tax liability of the owner
26or resident who qualified for the exemption. Any person who

 

 

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1willfully refuses to so credit the savings shall be guilty of a
2Class B misdemeanor.
3    (h) Where married persons maintain and reside in separate
4residences qualifying as homestead property, each residence
5shall receive 50% of the total reduction in equalized assessed
6valuation provided by this Section.
7    (i) In all counties, the assessor or chief county
8assessment officer may determine the eligibility of
9residential property to receive the homestead exemption and
10the amount of the exemption by application, visual inspection,
11questionnaire or other reasonable methods. The determination
12shall be made in accordance with guidelines established by the
13Department, provided that the taxpayer applying for an
14additional general exemption under this Section shall submit
15to the chief county assessment officer an application with an
16affidavit of the applicant's total household income, age,
17marital status (and, if married, the name and address of the
18applicant's spouse, if known), and principal dwelling place of
19members of the household on January 1 of the taxable year. The
20Department shall issue guidelines establishing a method for
21verifying the accuracy of the affidavits filed by applicants
22under this paragraph. The applications shall be clearly marked
23as applications for the Additional General Homestead
24Exemption.
25    (i-5) This subsection (i-5) applies to counties with
263,000,000 or more inhabitants. In the event of a sale of

 

 

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1homestead property, the homestead exemption shall remain in
2effect for the remainder of the assessment year of the sale.
3Upon receipt of a transfer declaration transmitted by the
4recorder pursuant to Section 31-30 of the Real Estate Transfer
5Tax Law for property receiving an exemption under this
6Section, the assessor shall mail a notice and forms to the new
7owner of the property providing information pertaining to the
8rules and applicable filing periods for applying or reapplying
9for homestead exemptions under this Code for which the
10property may be eligible. If the new owner fails to apply or
11reapply for a homestead exemption during the applicable filing
12period or the property no longer qualifies for an existing
13homestead exemption, the assessor shall cancel such exemption
14for any ensuing assessment year.
15    (j) In counties with fewer than 3,000,000 inhabitants, in
16the event of a sale of homestead property the homestead
17exemption shall remain in effect for the remainder of the
18assessment year of the sale. The assessor or chief county
19assessment officer may require the new owner of the property
20to apply for the homestead exemption for the following
21assessment year.
22    (k) Notwithstanding Sections 6 and 8 of the State Mandates
23Act, no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25    (l) The changes made to this Section by this amendatory
26Act of the 100th General Assembly are effective for the 2018

 

 

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1tax year and thereafter.
2(Source: P.A. 102-895, eff. 5-23-22.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.