SB1894 EnrolledLRB098 09919 HLH 40077 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 and, for taxable years 2008
4through 2011 and thereafter, the maximum reduction is $4,000 in
5all counties. For taxable year 2012, the maximum reduction is
6$5,000 in counties with 3,000,000 or more inhabitants and
7$4,000 in all other counties. For taxable years 2013 and
8thereafter, the maximum reduction is $5,000 in all counties.
9    For land improved with an apartment building owned and
10operated as a cooperative, the maximum reduction from the value
11of the property, as equalized by the Department, shall be
12multiplied by the number of apartments or units occupied by a
13person 65 years of age or older who is liable, by contract with
14the owner or owners of record, for paying property taxes on the
15property and is an owner of record of a legal or equitable
16interest in the cooperative apartment building, other than a
17leasehold interest. For land improved with a life care
18facility, the maximum reduction from the value of the property,
19as equalized by the Department, shall be multiplied by the
20number of apartments or units occupied by persons 65 years of
21age or older, irrespective of any legal, equitable, or
22leasehold interest in the facility, who are liable, under a
23contract with the owner or owners of record of the facility,
24for paying property taxes on the property. In a cooperative or
25a life care facility where a homestead exemption has been
26granted, the cooperative association or the management firm of

 

 

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1the cooperative or facility shall credit the savings resulting
2from that exemption only to the apportioned tax liability of
3the owner or resident who qualified for the exemption. Any
4person who willfully refuses to so credit the savings shall be
5guilty of a Class B misdemeanor. Under this Section and
6Sections 15-175, 15-176, and 15-177, "life care facility" means
7a facility, as defined in Section 2 of the Life Care Facilities
8Act, with which the applicant for the homestead exemption has a
9life care contract as defined in that Act.
10    When a homestead exemption has been granted under this
11Section and the person qualifying subsequently becomes a
12resident of a facility licensed under the Assisted Living and
13Shared Housing Act, the Nursing Home Care Act, the Specialized
14Mental Health Rehabilitation Act, or the ID/DD Community Care
15Act, the exemption shall continue so long as the residence
16continues to be occupied by the qualifying person's spouse if
17the spouse is 65 years of age or older, or if the residence
18remains unoccupied but is still owned by the person qualified
19for the homestead exemption.
20    A person who will be 65 years of age during the current
21assessment year shall be eligible to apply for the homestead
22exemption during that assessment year. Application shall be
23made during the application period in effect for the county of
24his residence.
25    Beginning with assessment year 2003, for taxes payable in
262004, property that is first occupied as a residence after

 

 

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

 

 

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

 

 

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1exemption.
2    In counties with less than 3,000,000 inhabitants, if the
3assessor or chief county assessment officer requires annual
4application for verification of eligibility for an exemption
5once granted under this Section, the application shall be
6mailed to the taxpayer.
7    The assessor or chief county assessment officer shall
8notify each person who qualifies for an exemption under this
9Section that the person may also qualify for deferral of real
10estate taxes under the Senior Citizens Real Estate Tax Deferral
11Act. The notice shall set forth the qualifications needed for
12deferral of real estate taxes, the address and telephone number
13of county collector, and a statement that applications for
14deferral of real estate taxes may be obtained from the county
15collector.
16    Notwithstanding Sections 6 and 8 of the State Mandates Act,
17no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
2096-1000, eff. 7-2-10; 96-1418, eff. 8-2-10; 97-38, eff.
216-28-11; 97-227, eff. 1-1-12; 97-813, eff. 7-13-12.)
 
22    (35 ILCS 200/15-175)
23    Sec. 15-175. General homestead exemption.
24    (a) Except as provided in Sections 15-176 and 15-177,
25homestead property is entitled to an annual homestead exemption

 

 

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1limited, except as described here with relation to
2cooperatives, to a reduction in the equalized assessed value of
3homestead property equal to the increase in equalized assessed
4value for the current assessment year above the equalized
5assessed value of the property for 1977, up to the maximum
6reduction set forth below. If however, the 1977 equalized
7assessed value upon which taxes were paid is subsequently
8determined by local assessing officials, the Property Tax
9Appeal Board, or a court to have been excessive, the equalized
10assessed value which should have been placed on the property
11for 1977 shall be used to determine the amount of the
12exemption.
13    (b) Except as provided in Section 15-176, the maximum
14reduction before taxable year 2004 shall be $4,500 in counties
15with 3,000,000 or more inhabitants and $3,500 in all other
16counties. Except as provided in Sections 15-176 and 15-177, for
17taxable years 2004 through 2007, the maximum reduction shall be
18$5,000, for taxable year 2008, the maximum reduction is $5,500,
19and, for taxable years 2009 through 2011 and thereafter, the
20maximum reduction is $6,000 in all counties. For taxable years
212012 and thereafter, the maximum reduction is $7,000 in
22counties with 3,000,000 or more inhabitants and $6,000 in all
23other counties. If a county has elected to subject itself to
24the provisions of Section 15-176 as provided in subsection (k)
25of that Section, then, for the first taxable year only after
26the provisions of Section 15-176 no longer apply, for owners

 

 

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1who, for the taxable year, have not been granted a senior
2citizens assessment freeze homestead exemption under Section
315-172 or a long-time occupant homestead exemption under
4Section 15-177, there shall be an additional exemption of
5$5,000 for owners with a household income of $30,000 or less.
6    (c) In counties with fewer than 3,000,000 inhabitants, if,
7based on the most recent assessment, the equalized assessed
8value of the homestead property for the current assessment year
9is greater than the equalized assessed value of the property
10for 1977, the owner of the property shall automatically receive
11the exemption granted under this Section in an amount equal to
12the increase over the 1977 assessment up to the maximum
13reduction set forth in this Section.
14    (d) If in any assessment year beginning with the 2000
15assessment year, homestead property has a pro-rata valuation
16under Section 9-180 resulting in an increase in the assessed
17valuation, a reduction in equalized assessed valuation equal to
18the increase in equalized assessed value of the property for
19the year of the pro-rata valuation above the equalized assessed
20value of the property for 1977 shall be applied to the property
21on a proportionate basis for the period the property qualified
22as homestead property during the assessment year. The maximum
23proportionate homestead exemption shall not exceed the maximum
24homestead exemption allowed in the county under this Section
25divided by 365 and multiplied by the number of days the
26property qualified as homestead property.

 

 

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1    (e) The chief county assessment officer may, when
2considering whether to grant a leasehold exemption under this
3Section, require the following conditions to be met:
4        (1) that a notarized application for the exemption,
5    signed by both the owner and the lessee of the property,
6    must be submitted each year during the application period
7    in effect for the county in which the property is located;
8        (2) that a copy of the lease must be filed with the
9    chief county assessment officer by the owner of the
10    property at the time the notarized application is
11    submitted;
12        (3) that the lease must expressly state that the lessee
13    is liable for the payment of property taxes; and
14        (4) that the lease must include the following language
15    in substantially the following form:
16            "Lessee shall be liable for the payment of real
17        estate taxes with respect to the residence in
18        accordance with the terms and conditions of Section
19        15-175 of the Property Tax Code (35 ILCS 200/15-175).
20        The permanent real estate index number for the premises
21        is (insert number), and, according to the most recent
22        property tax bill, the current amount of real estate
23        taxes associated with the premises is (insert amount)
24        per year. The parties agree that the monthly rent set
25        forth above shall be increased or decreased pro rata
26        (effective January 1 of each calendar year) to reflect

 

 

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1        any increase or decrease in real estate taxes. Lessee
2        shall be deemed to be satisfying Lessee's liability for
3        the above mentioned real estate taxes with the monthly
4        rent payments as set forth above (or increased or
5        decreased as set forth herein).".
6    In addition, if there is a change in lessee, or if the
7lessee vacates the property, then the chief county assessment
8officer may require the owner of the property to notify the
9chief county assessment officer of that change.
10    This subsection (e) does not apply to leasehold interests
11in property owned by a municipality.
12    (f) "Homestead property" under this Section includes
13residential property that is occupied by its owner or owners as
14his or their principal dwelling place, or that is a leasehold
15interest on which a single family residence is situated, which
16is occupied as a residence by a person who has an ownership
17interest therein, legal or equitable or as a lessee, and on
18which the person is liable for the payment of property taxes.
19For land improved with an apartment building owned and operated
20as a cooperative or a building which is a life care facility as
21defined in Section 15-170 and considered to be a cooperative
22under Section 15-170, the maximum reduction from the equalized
23assessed value shall be limited to the increase in the value
24above the equalized assessed value of the property for 1977, up
25to the maximum reduction set forth above, multiplied by the
26number of apartments or units occupied by a person or persons

 

 

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1who is liable, by contract with the owner or owners of record,
2for paying property taxes on the property and is an owner of
3record of a legal or equitable interest in the cooperative
4apartment building, other than a leasehold interest. For
5purposes of this Section, the term "life care facility" has the
6meaning stated in Section 15-170.
7    "Household", as used in this Section, means the owner, the
8spouse of the owner, and all persons using the residence of the
9owner as their principal place of residence.
10    "Household income", as used in this Section, means the
11combined income of the members of a household for the calendar
12year preceding the taxable year.
13    "Income", as used in this Section, has the same meaning as
14provided in Section 3.07 of the Senior Citizens and Disabled
15Persons Property Tax Relief Act, except that "income" does not
16include veteran's benefits.
17    (g) In a cooperative where a homestead exemption has been
18granted, the cooperative association or its management firm
19shall credit the savings resulting from that exemption only to
20the apportioned tax liability of the owner who qualified for
21the exemption. Any person who willfully refuses to so credit
22the savings shall be guilty of a Class B misdemeanor.
23    (h) Where married persons maintain and reside in separate
24residences qualifying as homestead property, each residence
25shall receive 50% of the total reduction in equalized assessed
26valuation provided by this Section.

 

 

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1    (i) In all counties, the assessor or chief county
2assessment officer may determine the eligibility of
3residential property to receive the homestead exemption and the
4amount of the exemption by application, visual inspection,
5questionnaire or other reasonable methods. The determination
6shall be made in accordance with guidelines established by the
7Department, provided that the taxpayer applying for an
8additional general exemption under this Section shall submit to
9the chief county assessment officer an application with an
10affidavit of the applicant's total household income, age,
11marital status (and, if married, the name and address of the
12applicant's spouse, if known), and principal dwelling place of
13members of the household on January 1 of the taxable year. The
14Department shall issue guidelines establishing a method for
15verifying the accuracy of the affidavits filed by applicants
16under this paragraph. The applications shall be clearly marked
17as applications for the Additional General Homestead
18Exemption.
19    (j) In counties with fewer than 3,000,000 inhabitants, in
20the event of a sale of homestead property the homestead
21exemption shall remain in effect for the remainder of the
22assessment year of the sale. The assessor or chief county
23assessment officer may require the new owner of the property to
24apply for the homestead exemption for the following assessment
25year.
26    (k) Notwithstanding Sections 6 and 8 of the State Mandates

 

 

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1Act, no reimbursement by the State is required for the
2implementation of any mandate created by this Section.
3(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
4revised 9-20-12.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.