Revenue Committee

Filed: 3/4/2004

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5533

2     AMENDMENT NO. ______. Amend House Bill 5533 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Property Tax Code is amended by changing
5 Sections 15-170 and 15-175 as follows:
 
6     (35 ILCS 200/15-170)
7     Sec. 15-170. Senior Citizens Homestead Exemption. An
8 annual homestead exemption limited, except as described here
9 with relation to cooperatives or life care facilities, to a
10 maximum reduction set forth below from the property's value, as
11 equalized or assessed by the Department, is granted for
12 property that is occupied as a residence by a person 65 years
13 of age or older who is liable for paying real estate taxes on
14 the property and is an owner of record of the property or has a
15 legal or equitable interest therein as evidenced by a written
16 instrument, except for a leasehold interest, other than a
17 leasehold interest of land on which a single family residence
18 is located, which is occupied as a residence by a person 65
19 years or older who has an ownership interest therein, legal,
20 equitable or as a lessee, and on which he or she is liable for
21 the payment of property taxes. Before taxable year 2004, the
22 The maximum reduction shall be $2,500 in counties with
23 3,000,000 or more inhabitants and $2,000 in all other counties.
24 For taxable years 2004 and thereafter, the maximum reduction

 

 

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

 

 

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1 remains unoccupied but is still owned by the person qualified
2 for the homestead exemption.
3     A person who will be 65 years of age during the current
4 assessment year shall be eligible to apply for the homestead
5 exemption during that assessment year. Application shall be
6 made during the application period in effect for the county of
7 his residence.
8     Beginning with assessment year 2003, for taxes payable in
9 2004, property that is first occupied as a residence after
10 January 1 of any assessment year by a person who is eligible
11 for the senior citizens homestead exemption under this Section
12 must be granted a pro-rata exemption for the assessment year.
13 The amount of the pro-rata exemption is the exemption allowed
14 in the county under this Section divided by 365 and multiplied
15 by the number of days during the assessment year the property
16 is occupied as a residence by a person eligible for the
17 exemption under this Section. The chief county assessment
18 officer must adopt reasonable procedures to establish
19 eligibility for this pro-rata exemption.
20     The assessor or chief county assessment officer may
21 determine the eligibility of a life care facility to receive
22 the benefits provided by this Section, by affidavit,
23 application, visual inspection, questionnaire or other
24 reasonable methods in order to insure that the tax savings
25 resulting from the exemption are credited by the management
26 firm to the apportioned tax liability of each qualifying
27 resident. The assessor may request reasonable proof that the
28 management firm has so credited the exemption.
29     The chief county assessment officer of each county with
30 less than 3,000,000 inhabitants shall provide to each person
31 allowed a homestead exemption under this Section a form to
32 designate any other person to receive a duplicate of any notice
33 of delinquency in the payment of taxes assessed and levied
34 under this Code on the property of the person receiving the

 

 

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1 exemption. The duplicate notice shall be in addition to the
2 notice required to be provided to the person receiving the
3 exemption, and shall be given in the manner required by this
4 Code. The person filing the request for the duplicate notice
5 shall pay a fee of $5 to cover administrative costs to the
6 supervisor of assessments, who shall then file the executed
7 designation with the county collector. Notwithstanding any
8 other provision of this Code to the contrary, the filing of
9 such an executed designation requires the county collector to
10 provide duplicate notices as indicated by the designation. A
11 designation may be rescinded by the person who executed such
12 designation at any time, in the manner and form required by the
13 chief county assessment officer.
14     The assessor or chief county assessment officer may
15 determine the eligibility of residential property to receive
16 the homestead exemption provided by this Section by
17 application, visual inspection, questionnaire or other
18 reasonable methods. The determination shall be made in
19 accordance with guidelines established by the Department.
20     In counties with less than 3,000,000 inhabitants, the
21 county board may by resolution provide that if a person has
22 been granted a homestead exemption under this Section, the
23 person qualifying need not reapply for the exemption.
24     In counties with less than 3,000,000 inhabitants, if the
25 assessor or chief county assessment officer requires annual
26 application for verification of eligibility for an exemption
27 once granted under this Section, the application shall be
28 mailed to the taxpayer.
29     The assessor or chief county assessment officer shall
30 notify each person who qualifies for an exemption under this
31 Section that the person may also qualify for deferral of real
32 estate taxes under the Senior Citizens Real Estate Tax Deferral
33 Act. The notice shall set forth the qualifications needed for
34 deferral of real estate taxes, the address and telephone number

 

 

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1 of county collector, and a statement that applications for
2 deferral of real estate taxes may be obtained from the county
3 collector.
4     Notwithstanding Sections 6 and 8 of the State Mandates Act,
5 no reimbursement by the State is required for the
6 implementation of any mandate created by this Section.
7 (Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)
 
8     (35 ILCS 200/15-175)
9     Sec. 15-175. General homestead exemption. Homestead
10 property is entitled to an annual homestead exemption limited,
11 except as described here with relation to cooperatives, to a
12 reduction in the equalized assessed value of homestead property
13 equal to the increase in equalized assessed value for the
14 current assessment year above the equalized assessed value of
15 the property for 1977, up to the maximum reduction set forth
16 below. If however, the 1977 equalized assessed value upon which
17 taxes were paid is subsequently determined by local assessing
18 officials, the Property Tax Appeal Board, or a court to have
19 been excessive, the equalized assessed value which should have
20 been placed on the property for 1977 shall be used to determine
21 the amount of the exemption.
22     Before taxable year 2004, the The maximum reduction shall
23 be $4,500 in counties with 3,000,000 or more inhabitants and
24 $3,500 in all other counties. For taxable years 2004 and
25 thereafter, the maximum reduction shall be $5,000 for all
26 counties.
27     In counties with fewer than 3,000,000 inhabitants, if,
28 based on the most recent assessment, the equalized assessed
29 value of the homestead property for the current assessment year
30 is greater than the equalized assessed value of the property
31 for 1977, the owner of the property shall automatically receive
32 the exemption granted under this Section in an amount equal to
33 the increase over the 1977 assessment up to the maximum

 

 

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1 reduction set forth in this Section.
2     If in any assessment year beginning with the 2000
3 assessment year, homestead property has a pro-rata valuation
4 under Section 9-180 resulting in an increase in the assessed
5 valuation, a reduction in equalized assessed valuation equal to
6 the increase in equalized assessed value of the property for
7 the year of the pro-rata valuation above the equalized assessed
8 value of the property for 1977 shall be applied to the property
9 on a proportionate basis for the period the property qualified
10 as homestead property during the assessment year. The maximum
11 proportionate homestead exemption shall not exceed the maximum
12 homestead exemption allowed in the county under this Section
13 divided by 365 and multiplied by the number of days the
14 property qualified as homestead property.
15     "Homestead property" under this Section includes
16 residential property that is occupied by its owner or owners as
17 his or their principal dwelling place, or that is a leasehold
18 interest on which a single family residence is situated, which
19 is occupied as a residence by a person who has an ownership
20 interest therein, legal or equitable or as a lessee, and on
21 which the person is liable for the payment of property taxes.
22 For land improved with an apartment building owned and operated
23 as a cooperative or a building which is a life care facility as
24 defined in Section 15-170 and considered to be a cooperative
25 under Section 15-170, the maximum reduction from the equalized
26 assessed value shall be limited to the increase in the value
27 above the equalized assessed value of the property for 1977, up
28 to the maximum reduction set forth above, multiplied by the
29 number of apartments or units occupied by a person or persons
30 who is liable, by contract with the owner or owners of record,
31 for paying property taxes on the property and is an owner of
32 record of a legal or equitable interest in the cooperative
33 apartment building, other than a leasehold interest. For
34 purposes of this Section, the term "life care facility" has the

 

 

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1 meaning stated in Section 15-170.
2     In a cooperative where a homestead exemption has been
3 granted, the cooperative association or its management firm
4 shall credit the savings resulting from that exemption only to
5 the apportioned tax liability of the owner who qualified for
6 the exemption. Any person who willfully refuses to so credit
7 the savings shall be guilty of a Class B misdemeanor.
8     Where married persons maintain and reside in separate
9 residences qualifying as homestead property, each residence
10 shall receive 50% of the total reduction in equalized assessed
11 valuation provided by this Section.
12     In counties with more than 3,000,000 inhabitants, the
13 assessor or chief county assessment officer may determine the
14 eligibility of residential property to receive the homestead
15 exemption by application, visual inspection, questionnaire or
16 other reasonable methods. The determination shall be made in
17 accordance with guidelines established by the Department. In
18 counties with fewer than 3,000,000 inhabitants, in the event of
19 a sale of homestead property the homestead exemption shall
20 remain in effect for the remainder of the assessment year of
21 the sale. The assessor or chief county assessment officer may
22 require the new owner of the property to apply for the
23 homestead exemption for the following assessment year.
24 (Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
25 90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)
 
26     Section 99. Effective date. This Act takes effect upon
27 becoming law.".