Sen. Emil Jones, III

Filed: 3/18/2015

 

 


 

 


 
09900SB0780sam002LRB099 06575 HLH 32716 a

1
AMENDMENT TO SENATE BILL 780

2    AMENDMENT NO. ______. Amend Senate Bill 780 by replacing
3everything after the enacting clause with the following:
 
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 exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently

 

 

09900SB0780sam002- 2 -LRB099 06575 HLH 32716 a

1determined by local assessing officials, the Property Tax
2Appeal Board, or a court to have been excessive, the equalized
3assessed value which should have been placed on the property
4for 1977 shall be used to determine the amount of the
5exemption.
6    (b) Except as provided in Section 15-176, the maximum
7reduction before taxable year 2004 shall be $4,500 in counties
8with 3,000,000 or more inhabitants and $3,500 in all other
9counties. Except as provided in Sections 15-176 and 15-177, for
10taxable years 2004 through 2007, the maximum reduction shall be
11$5,000, for taxable year 2008, the maximum reduction is $5,500,
12and, for taxable years 2009 through 2011, the maximum reduction
13is $6,000 in all counties. For taxable years 2012 and
14thereafter, the maximum reduction is $7,000 in counties with
153,000,000 or more inhabitants and $6,000 in all other counties.
16If a county has elected to subject itself to the provisions of
17Section 15-176 as provided in subsection (k) of that Section,
18then, for the first taxable year only after the provisions of
19Section 15-176 no longer apply, for owners who, for the taxable
20year, have not been granted a senior citizens assessment freeze
21homestead exemption under Section 15-172 or a long-time
22occupant homestead exemption under Section 15-177, there shall
23be an additional exemption of $5,000 for owners with a
24household income of $30,000 or less.
25    (c) In counties with fewer than 3,000,000 inhabitants, if,
26based on the most recent assessment, the equalized assessed

 

 

09900SB0780sam002- 3 -LRB099 06575 HLH 32716 a

1value of the homestead property for the current assessment year
2is greater than the equalized assessed value of the property
3for 1977, the owner of the property shall automatically receive
4the exemption granted under this Section in an amount equal to
5the increase over the 1977 assessment up to the maximum
6reduction set forth in this Section.
7    (d) If in any assessment year beginning with the 2000
8assessment year, homestead property has a pro-rata valuation
9under Section 9-180 resulting in an increase in the assessed
10valuation, a reduction in equalized assessed valuation equal to
11the increase in equalized assessed value of the property for
12the year of the pro-rata valuation above the equalized assessed
13value of the property for 1977 shall be applied to the property
14on a proportionate basis for the period the property qualified
15as homestead property during the assessment year. The maximum
16proportionate homestead exemption shall not exceed the maximum
17homestead exemption allowed in the county under this Section
18divided by 365 and multiplied by the number of days the
19property qualified as homestead property.
20    (e) The chief county assessment officer may, when
21considering whether to grant a leasehold exemption under this
22Section, require the following conditions to be met:
23        (1) that a notarized application for the exemption,
24    signed by both the owner and the lessee of the property,
25    must be submitted each year during the application period
26    in effect for the county in which the property is located;

 

 

09900SB0780sam002- 4 -LRB099 06575 HLH 32716 a

1        (2) that a copy of the lease must be filed with the
2    chief county assessment officer by the owner of the
3    property at the time the notarized application is
4    submitted;
5        (3) that the lease must expressly state that the lessee
6    is liable for the payment of property taxes; and
7        (4) that the lease must include the following language
8    in substantially the following form:
9            "Lessee shall be liable for the payment of real
10        estate taxes with respect to the residence in
11        accordance with the terms and conditions of Section
12        15-175 of the Property Tax Code (35 ILCS 200/15-175).
13        The permanent real estate index number for the premises
14        is (insert number), and, according to the most recent
15        property tax bill, the current amount of real estate
16        taxes associated with the premises is (insert amount)
17        per year. The parties agree that the monthly rent set
18        forth above shall be increased or decreased pro rata
19        (effective January 1 of each calendar year) to reflect
20        any increase or decrease in real estate taxes. Lessee
21        shall be deemed to be satisfying Lessee's liability for
22        the above mentioned real estate taxes with the monthly
23        rent payments as set forth above (or increased or
24        decreased as set forth herein).".
25    In addition, if there is a change in lessee, or if the
26lessee vacates the property, then the chief county assessment

 

 

09900SB0780sam002- 5 -LRB099 06575 HLH 32716 a

1officer may require the owner of the property to notify the
2chief county assessment officer of that change.
3    This subsection (e) does not apply to leasehold interests
4in property owned by a municipality.
5    (f) "Homestead property" under this Section includes
6residential property that is occupied by its owner or owners as
7his or their principal dwelling place, or that is a leasehold
8interest on which a single family residence is situated, which
9is occupied as a residence by a person who has an ownership
10interest therein, legal or equitable or as a lessee, and on
11which the person is liable for the payment of property taxes.
12For land improved with an apartment building owned and operated
13as a cooperative or a building which is a life care facility as
14defined in Section 15-170 and considered to be a cooperative
15under Section 15-170, the maximum reduction from the equalized
16assessed value shall be limited to the increase in the value
17above the equalized assessed value of the property for 1977, up
18to the maximum reduction set forth above, multiplied by the
19number of apartments or units occupied by a person or persons
20who is liable, by contract with the owner or owners of record,
21for paying property taxes on the property and is an owner of
22record of a legal or equitable interest in the cooperative
23apartment building, other than a leasehold interest. For
24purposes of this Section, the term "life care facility" has the
25meaning stated in Section 15-170.
26    "Household", as used in this Section, means the owner, the

 

 

09900SB0780sam002- 6 -LRB099 06575 HLH 32716 a

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

 

 

09900SB0780sam002- 7 -LRB099 06575 HLH 32716 a

1additional general exemption under this Section shall submit to
2the chief county assessment officer an application with an
3affidavit of the applicant's total household income, age,
4marital status (and, if married, the name and address of the
5applicant's spouse, if known), and principal dwelling place of
6members of the household on January 1 of the taxable year. The
7Department shall issue guidelines establishing a method for
8verifying the accuracy of the affidavits filed by applicants
9under this paragraph. The applications shall be clearly marked
10as applications for the Additional General Homestead
11Exemption.
12    (j) In counties with fewer than 3,000,000 inhabitants, in
13the event of a sale of homestead property the homestead
14exemption shall remain in effect for the remainder of the
15assessment year of the sale. The assessor or chief county
16assessment officer may require the new owner of the property to
17apply for the homestead exemption for the following assessment
18year.
19    (j-5) In counties with 3,000,000 or more inhabitants, upon
20receipt of a transfer declaration transmitted by the recorder
21pursuant to Section 31-30 of the Real Estate Transfer Tax Law
22for property receiving an exemption under this Section, that
23exemption and any previously granted homestead exemptions for
24which the property is no longer eligible shall be cancelled by
25the assessor. The assessor shall mail a notice to the new owner
26of the property (i) informing the new owner of the exemptions

 

 

09900SB0780sam002- 8 -LRB099 06575 HLH 32716 a

1that have been cancelled and (ii) providing information
2pertaining to the rules for reapplying for any homestead
3exemptions under this Code for which the property may be
4eligible.
5    (k) Notwithstanding Sections 6 and 8 of the State Mandates
6Act, no reimbursement by the State is required for the
7implementation of any mandate created by this Section.
8(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
998-7, eff. 4-23-13; 98-463, eff. 8-16-13.)".