Sen. Toi W. Hutchinson

Filed: 3/13/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1894

2    AMENDMENT NO. ______. Amend Senate Bill 1894 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1leasehold interest of land on which a single family residence
2is located, which is occupied as a residence by a person 65
3years or older who has an ownership interest therein, legal,
4equitable or as a lessee, and on which he or she is liable for
5the payment of property taxes. Before taxable year 2004, the
6maximum reduction shall be $2,500 in counties with 3,000,000 or
7more inhabitants and $2,000 in all other counties. For taxable
8years 2004 through 2005, the maximum reduction shall be $3,000
9in all counties. For taxable years 2006 and 2007, the maximum
10reduction shall be $3,500. For and, for taxable years 2008
11through 2011 and thereafter, the maximum reduction is $4,000 in
12all counties. For taxable year 2012, the maximum reduction is
13$5,000 in counties with 3,000,000 or more inhabitants and
14$4,000 in all other counties. For taxable years 2013 and
15thereafter, the maximum reduction is $5,000 in all counties.
16    For land improved with an apartment building owned and
17operated as a cooperative, the maximum reduction from the value
18of the property, as equalized by the Department, shall be
19multiplied by the number of apartments or units occupied by a
20person 65 years of age or older who is liable, by contract with
21the owner or owners of record, for paying property taxes on the
22property and is an owner of record of a legal or equitable
23interest in the cooperative apartment building, other than a
24leasehold interest. For land improved with a life care
25facility, the maximum reduction from the value of the property,
26as equalized by the Department, shall be multiplied by the

 

 

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

 

 

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1    A person who will be 65 years of age during the current
2assessment year shall be eligible to apply for the homestead
3exemption during that assessment year. Application shall be
4made during the application period in effect for the county of
5his residence.
6    Beginning with assessment year 2003, for taxes payable in
72004, property that is first occupied as a residence after
8January 1 of any assessment year by a person who is eligible
9for the senior citizens homestead exemption under this Section
10must be granted a pro-rata exemption for the assessment year.
11The amount of the pro-rata exemption is the exemption allowed
12in the county under this Section divided by 365 and multiplied
13by the number of days during the assessment year the property
14is occupied as a residence by a person eligible for the
15exemption under this Section. The chief county assessment
16officer must adopt reasonable procedures to establish
17eligibility for this pro-rata exemption.
18    The assessor or chief county assessment officer may
19determine the eligibility of a life care facility to receive
20the benefits provided by this Section, by affidavit,
21application, visual inspection, questionnaire or other
22reasonable methods in order to insure that the tax savings
23resulting from the exemption are credited by the management
24firm to the apportioned tax liability of each qualifying
25resident. The assessor may request reasonable proof that the
26management firm has so credited the exemption.

 

 

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

 

 

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1in taxable year 2010, each taxpayer who has been granted an
2exemption under this Section must reapply on an annual basis.
3The chief county assessment officer shall mail the application
4to the taxpayer. In counties with less than 3,000,000
5inhabitants, the county board may by resolution provide that if
6a person has been granted a homestead exemption under this
7Section, the person qualifying need not reapply for the
8exemption.
9    In counties with less than 3,000,000 inhabitants, if the
10assessor or chief county assessment officer requires annual
11application for verification of eligibility for an exemption
12once granted under this Section, the application shall be
13mailed to the taxpayer.
14    The assessor or chief county assessment officer shall
15notify each person who qualifies for an exemption under this
16Section that the person may also qualify for deferral of real
17estate taxes under the Senior Citizens Real Estate Tax Deferral
18Act. The notice shall set forth the qualifications needed for
19deferral of real estate taxes, the address and telephone number
20of county collector, and a statement that applications for
21deferral of real estate taxes may be obtained from the county
22collector.
23    Notwithstanding Sections 6 and 8 of the State Mandates Act,
24no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;

 

 

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196-1000, eff. 7-2-10; 96-1418, eff. 8-2-10; 97-38, eff.
26-28-11; 97-227, eff. 1-1-12; 97-813, eff. 7-13-12.)
 
3    (35 ILCS 200/15-175)
4    Sec. 15-175. General homestead exemption.
5    (a) Except as provided in Sections 15-176 and 15-177,
6homestead property is entitled to an annual homestead exemption
7limited, except as described here with relation to
8cooperatives, to a reduction in the equalized assessed value of
9homestead property equal to the increase in equalized assessed
10value for the current assessment year above the equalized
11assessed value of the property for 1977, up to the maximum
12reduction set forth below. If however, the 1977 equalized
13assessed value upon which taxes were paid is subsequently
14determined by local assessing officials, the Property Tax
15Appeal Board, or a court to have been excessive, the equalized
16assessed value which should have been placed on the property
17for 1977 shall be used to determine the amount of the
18exemption.
19    (b) Except as provided in Section 15-176, the maximum
20reduction before taxable year 2004 shall be $4,500 in counties
21with 3,000,000 or more inhabitants and $3,500 in all other
22counties. Except as provided in Sections 15-176 and 15-177, for
23taxable years 2004 through 2007, the maximum reduction shall be
24$5,000, for taxable year 2008, the maximum reduction is $5,500,
25and, for taxable years 2009 through 2011 and thereafter, the

 

 

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1maximum reduction is $6,000 in all counties. For taxable years
22012 and thereafter, the maximum reduction is $7,000 in
3counties with 3,000,000 or more inhabitants and $6,000 in all
4other counties. If a county has elected to subject itself to
5the provisions of Section 15-176 as provided in subsection (k)
6of that Section, then, for the first taxable year only after
7the provisions of Section 15-176 no longer apply, for owners
8who, for the taxable year, have not been granted a senior
9citizens assessment freeze homestead exemption under Section
1015-172 or a long-time occupant homestead exemption under
11Section 15-177, there shall be an additional exemption of
12$5,000 for owners with a household 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    (e) The chief county assessment officer may, when
9considering whether to grant a leasehold exemption under this
10Section, require the following conditions to be met:
11        (1) that a notarized application for the exemption,
12    signed by both the owner and the lessee of the property,
13    must be submitted each year during the application period
14    in effect for the county in which the property is located;
15        (2) that a copy of the lease must be filed with the
16    chief county assessment officer by the owner of the
17    property at the time the notarized application is
18    submitted;
19        (3) that the lease must expressly state that the lessee
20    is liable for the payment of property taxes; and
21        (4) that the lease must include the following language
22    in substantially the following form:
23            "Lessee shall be liable for the payment of real
24        estate taxes with respect to the residence in
25        accordance with the terms and conditions of Section
26        15-175 of the Property Tax Code (35 ILCS 200/15-175).

 

 

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1        The permanent real estate index number for the premises
2        is (insert number), and, according to the most recent
3        property tax bill, the current amount of real estate
4        taxes associated with the premises is (insert amount)
5        per year. The parties agree that the monthly rent set
6        forth above shall be increased or decreased pro rata
7        (effective January 1 of each calendar year) to reflect
8        any increase or decrease in real estate taxes. Lessee
9        shall be deemed to be satisfying Lessee's liability for
10        the above mentioned real estate taxes with the monthly
11        rent payments as set forth above (or increased or
12        decreased as set forth herein).".
13    In addition, if there is a change in lessee, or if the
14lessee vacates the property, then the chief county assessment
15officer may require the owner of the property to notify the
16chief county assessment officer of that change.
17    This subsection (e) does not apply to leasehold interests
18in property owned by a municipality.
19    (f) "Homestead property" under this Section includes
20residential property that is occupied by its owner or owners as
21his or their principal dwelling place, or that is a leasehold
22interest on which a single family residence is situated, which
23is occupied as a residence by a person who has an ownership
24interest therein, legal or equitable or as a lessee, and on
25which the person is liable for the payment of property taxes.
26For land improved with an apartment building owned and operated

 

 

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1as a cooperative or a building which is a life care facility as
2defined in Section 15-170 and considered to be a cooperative
3under Section 15-170, the maximum reduction from the equalized
4assessed value shall be limited to the increase in the value
5above the equalized assessed value of the property for 1977, up
6to the maximum reduction set forth above, multiplied by the
7number of apartments or units occupied by a person or persons
8who is liable, by contract with the owner or owners of record,
9for paying property taxes on the property and is an owner of
10record of a legal or equitable interest in the cooperative
11apartment building, other than a leasehold interest. For
12purposes of this Section, the term "life care facility" has the
13meaning stated in Section 15-170.
14    "Household", as used in this Section, means the owner, the
15spouse of the owner, and all persons using the residence of the
16owner as their principal place of residence.
17    "Household income", as used in this Section, means the
18combined income of the members of a household for the calendar
19year preceding the taxable year.
20    "Income", as used in this Section, has the same meaning as
21provided in Section 3.07 of the Senior Citizens and Disabled
22Persons Property Tax Relief Act, except that "income" does not
23include veteran's benefits.
24    (g) In a cooperative where a homestead exemption has been
25granted, the cooperative association or its management firm
26shall credit the savings resulting from that exemption only to

 

 

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

 

 

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1the event of a sale of homestead property the homestead
2exemption shall remain in effect for the remainder of the
3assessment year of the sale. The assessor or chief county
4assessment officer may require the new owner of the property to
5apply for the homestead exemption for the following assessment
6year.
7    (k) Notwithstanding Sections 6 and 8 of the State Mandates
8Act, no reimbursement by the State is required for the
9implementation of any mandate created by this Section.
10(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
11revised 9-20-12.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".