Illinois General Assembly - Full Text of SB3995
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Full Text of SB3995  101st General Assembly

SB3995 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3995

 

Introduced 5/21/2020, by Sen. Melinda Bush

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, for taxable year 2020 and thereafter, the maximum reductions under the senior citizens homestead exemption and the general homestead exemption that apply in counties with more than 3,000,000 inhabitants apply in counties with 300,000 or more inhabitants. Effective immediately.


LRB101 21368 HLH 71993 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3995LRB101 21368 HLH 71993 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.
8    (a) An annual homestead exemption limited, except as
9described here with relation to cooperatives or life care
10facilities, to a maximum reduction set forth below from the
11property's value, as equalized or assessed by the Department,
12is granted for property that is occupied as a residence by a
13person 65 years of age or older who is liable for paying real
14estate taxes on the property and is an owner of record of the
15property or has a legal or equitable interest therein as
16evidenced by a written instrument, except for a leasehold
17interest, other than a leasehold interest of land on which a
18single family residence is located, which is occupied as a
19residence by a person 65 years or older who has an ownership
20interest therein, legal, equitable or as a lessee, and on which
21he or she is liable for the payment of property taxes. Before
22taxable year 2004, the maximum reduction shall be $2,500 in
23counties with 3,000,000 or more inhabitants and $2,000 in all

 

 

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1other counties. For taxable years 2004 through 2005, the
2maximum reduction shall be $3,000 in all counties. For taxable
3years 2006 and 2007, the maximum reduction shall be $3,500. For
4taxable years 2008 through 2011, the maximum reduction is
5$4,000 in all counties. For taxable year 2012, the maximum
6reduction is $5,000 in counties with 3,000,000 or more
7inhabitants and $4,000 in all other counties. For taxable years
82013 through 2016, the maximum reduction is $5,000 in all
9counties. For taxable years 2017 through 2019 and thereafter,
10the maximum reduction is $8,000 in counties with 3,000,000 or
11more inhabitants and $5,000 in all other counties. For taxable
12years 2020 and thereafter, the maximum reduction is is $8,000
13in counties with 300,000 or more inhabitants and $5,000 in all
14other counties.
15    (b) For land improved with an apartment building owned and
16operated as a cooperative, the maximum reduction from the value
17of the property, as equalized by the Department, shall be
18multiplied by the number of apartments or units occupied by a
19person 65 years of age or older who is liable, by contract with
20the owner or owners of record, for paying property taxes on the
21property and is an owner of record of a legal or equitable
22interest in the cooperative apartment building, other than a
23leasehold interest. For land improved with a life care
24facility, the maximum reduction from the value of the property,
25as equalized by the Department, shall be multiplied by the
26number of apartments or units occupied by persons 65 years of

 

 

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1age or older, irrespective of any legal, equitable, or
2leasehold interest in the facility, who are liable, under a
3contract with the owner or owners of record of the facility,
4for paying property taxes on the property. In a cooperative or
5a life care facility where a homestead exemption has been
6granted, the cooperative association or the management firm of
7the cooperative or facility shall credit the savings resulting
8from that exemption only to the apportioned tax liability of
9the owner or resident who qualified for the exemption. Any
10person who willfully refuses to so credit the savings shall be
11guilty of a Class B misdemeanor. Under this Section and
12Sections 15-175, 15-176, and 15-177, "life care facility" means
13a facility, as defined in Section 2 of the Life Care Facilities
14Act, with which the applicant for the homestead exemption has a
15life care contract as defined in that Act.
16    (c) When a homestead exemption has been granted under this
17Section and the person qualifying subsequently becomes a
18resident of a facility licensed under the Assisted Living and
19Shared Housing Act, the Nursing Home Care Act, the Specialized
20Mental Health Rehabilitation Act of 2013, the ID/DD Community
21Care Act, or the MC/DD Act, the exemption shall continue so
22long as the residence continues to be occupied by the
23qualifying person's spouse if the spouse is 65 years of age or
24older, or if the residence remains unoccupied but is still
25owned by the person qualified for the homestead exemption.
26    (d) A person who will be 65 years of age during the current

 

 

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1assessment year shall be eligible to apply for the homestead
2exemption during that assessment year. Application shall be
3made during the application period in effect for the county of
4his residence.
5    (e) Beginning with assessment year 2003, for taxes payable
6in 2004, property that is first occupied as a residence after
7January 1 of any assessment year by a person who is eligible
8for the senior citizens homestead exemption under this Section
9must be granted a pro-rata exemption for the assessment year.
10The amount of the pro-rata exemption is the exemption allowed
11in the county under this Section divided by 365 and multiplied
12by the number of days during the assessment year the property
13is occupied as a residence by a person eligible for the
14exemption under this Section. The chief county assessment
15officer must adopt reasonable procedures to establish
16eligibility for this pro-rata exemption.
17    (f) The assessor or chief county assessment officer may
18determine the eligibility of a life care facility to receive
19the benefits provided by this Section, by affidavit,
20application, visual inspection, questionnaire or other
21reasonable methods in order to insure that the tax savings
22resulting from the exemption are credited by the management
23firm to the apportioned tax liability of each qualifying
24resident. The assessor may request reasonable proof that the
25management firm has so credited the exemption.
26    (g) The chief county assessment officer of each county with

 

 

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1less than 3,000,000 inhabitants shall provide to each person
2allowed a homestead exemption under this Section a form to
3designate any other person to receive a duplicate of any notice
4of delinquency in the payment of taxes assessed and levied
5under this Code on the property of the person receiving the
6exemption. The duplicate notice shall be in addition to the
7notice required to be provided to the person receiving the
8exemption, and shall be given in the manner required by this
9Code. The person filing the request for the duplicate notice
10shall pay a fee of $5 to cover administrative costs to the
11supervisor of assessments, who shall then file the executed
12designation with the county collector. Notwithstanding any
13other provision of this Code to the contrary, the filing of
14such an executed designation requires the county collector to
15provide duplicate notices as indicated by the designation. A
16designation may be rescinded by the person who executed such
17designation at any time, in the manner and form required by the
18chief county assessment officer.
19    (h) The assessor or chief county assessment officer may
20determine the eligibility of residential property to receive
21the homestead exemption provided by this Section by
22application, visual inspection, questionnaire or other
23reasonable methods. The determination shall be made in
24accordance with guidelines established by the Department.
25    (i) In counties with 3,000,000 or more inhabitants, for
26taxable years 2010 through 2018, and beginning again in taxable

 

 

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1year 2024, each taxpayer who has been granted an exemption
2under this Section must reapply on an annual basis.
3    If a reapplication is required, then the chief county
4assessment officer shall mail the application to the taxpayer
5at least 60 days prior to the last day of the application
6period for the county.
7    For taxable years 2019 through 2023, in counties with
83,000,000 or more inhabitants, a taxpayer who has been granted
9an exemption under this Section need not reapply. However, if
10the property ceases to be qualified for the exemption under
11this Section in any year for which a reapplication is not
12required under this Section, then the owner of record of the
13property shall notify the chief county assessment officer that
14the property is no longer qualified. In addition, for taxable
15years 2019 through 2023, the chief county assessment officer of
16a county with 3,000,000 or more inhabitants shall enter into an
17intergovernmental agreement with the county clerk of that
18county and the Department of Public Health, as well as any
19other appropriate governmental agency, to obtain information
20that documents the death of a taxpayer who has been granted an
21exemption under this Section. Notwithstanding any other
22provision of law, the county clerk and the Department of Public
23Health shall provide that information to the chief county
24assessment officer. The Department of Public Health shall
25supply this information no less frequently than every calendar
26quarter. Information concerning the death of a taxpayer may be

 

 

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1shared with the county treasurer. The chief county assessment
2officer shall also enter into a data exchange agreement with
3the Social Security Administration or its agent to obtain
4access to the information regarding deaths in possession of the
5Social Security Administration. The chief county assessment
6officer shall, subject to the notice requirements under
7subsection (m) of Section 9-275, terminate the exemption under
8this Section if the information obtained indicates that the
9property is no longer qualified for the exemption. In counties
10with 3,000,000 or more inhabitants, the assessor and the county
11recorder of deeds shall establish policies and practices for
12the regular exchange of information for the purpose of alerting
13the assessor whenever the transfer of ownership of any property
14receiving an exemption under this Section has occurred. When
15such a transfer occurs, the assessor shall mail a notice to the
16new owner of the property (i) informing the new owner that the
17exemption will remain in place through the year of the
18transfer, after which it will be canceled, and (ii) providing
19information pertaining to the rules for reapplying for the
20exemption if the owner qualifies. In counties with 3,000,000 or
21more inhabitants, the chief county assessment official shall
22conduct audits of all exemptions granted under this Section no
23later than December 31, 2022 and no later than December 31,
242024. The audit shall be designed to ascertain whether any
25senior homestead exemptions have been granted erroneously. If
26it is determined that a senior homestead exemption has been

 

 

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1erroneously applied to a property, the chief county assessment
2officer shall make use of the appropriate provisions of Section
39-275 in relation to the property that received the erroneous
4homestead exemption.
5    (j) In counties with less than 3,000,000 inhabitants, the
6county board may by resolution provide that if a person has
7been granted a homestead exemption under this Section, the
8person qualifying need not reapply for the exemption.
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    (l) 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    (m) Notwithstanding Sections 6 and 8 of the State Mandates
24Act, no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 100-401, eff. 8-25-17; 101-453, eff. 8-23-19;

 

 

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1101-622, eff. 1-14-20.)
 
2    (35 ILCS 200/15-175)
3    Sec. 15-175. General homestead exemption.
4    (a) Except as provided in Sections 15-176 and 15-177,
5homestead property is entitled to an annual homestead exemption
6limited, except as described here with relation to cooperatives
7or life care facilities, to a reduction in the equalized
8assessed value of homestead property equal to the increase in
9equalized assessed value for the current assessment year above
10the equalized assessed value of the property for 1977, up to
11the maximum reduction set forth below. If however, the 1977
12equalized assessed value upon which taxes were paid is
13subsequently determined by local assessing officials, the
14Property Tax Appeal Board, or a court to have been excessive,
15the equalized assessed value which should have been placed on
16the property for 1977 shall be used to determine the amount of
17the exemption.
18    (b) Except as provided in Section 15-176, the maximum
19reduction before taxable year 2004 shall be $4,500 in counties
20with 3,000,000 or more inhabitants and $3,500 in all other
21counties. Except as provided in Sections 15-176 and 15-177, for
22taxable years 2004 through 2007, the maximum reduction shall be
23$5,000, for taxable year 2008, the maximum reduction is $5,500,
24and, for taxable years 2009 through 2011, the maximum reduction
25is $6,000 in all counties. For taxable years 2012 through 2016,

 

 

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1the maximum reduction is $7,000 in counties with 3,000,000 or
2more inhabitants and $6,000 in all other counties. For taxable
3years 2017 through 2019 and thereafter, the maximum reduction
4is $10,000 in counties with 3,000,000 or more inhabitants and
5$6,000 in all other counties. For taxable years 2020 and
6thereafter, the maximum reduction is $10,000 in counties with
7300,000 or more inhabitants and $6,000 in all other counties.
8If a county has elected to subject itself to the provisions of
9Section 15-176 as provided in subsection (k) of that Section,
10then, for the first taxable year only after the provisions of
11Section 15-176 no longer apply, for owners who, for the taxable
12year, have not been granted a senior citizens assessment freeze
13homestead exemption under Section 15-172 or a long-time
14occupant homestead exemption under Section 15-177, there shall
15be an additional exemption of $5,000 for owners with a
16household income of $30,000 or less.
17    (c) In counties with fewer than 3,000,000 inhabitants, if,
18based on the most recent assessment, the equalized assessed
19value of the homestead property for the current assessment year
20is greater than the equalized assessed value of the property
21for 1977, the owner of the property shall automatically receive
22the exemption granted under this Section in an amount equal to
23the increase over the 1977 assessment up to the maximum
24reduction set forth in this Section.
25    (d) If in any assessment year beginning with the 2000
26assessment year, homestead property has a pro-rata valuation

 

 

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1under Section 9-180 resulting in an increase in the assessed
2valuation, a reduction in equalized assessed valuation equal to
3the increase in equalized assessed value of the property for
4the year of the pro-rata valuation above the equalized assessed
5value of the property for 1977 shall be applied to the property
6on a proportionate basis for the period the property qualified
7as homestead property during the assessment year. The maximum
8proportionate homestead exemption shall not exceed the maximum
9homestead exemption allowed in the county under this Section
10divided by 365 and multiplied by the number of days the
11property qualified as homestead property.
12    (d-1) In counties with 3,000,000 or more inhabitants, where
13the chief county assessment officer provides a notice of
14discovery, if a property is not occupied by its owner as a
15principal residence as of January 1 of the current tax year,
16then the property owner shall notify the chief county
17assessment officer of that fact on a form prescribed by the
18chief county assessment officer. That notice must be received
19by the chief county assessment officer on or before March 1 of
20the collection year. If mailed, the form shall be sent by
21certified mail, return receipt requested. If the form is
22provided in person, the chief county assessment officer shall
23provide a date stamped copy of the notice. Failure to provide
24timely notice pursuant to this subsection (d-1) shall result in
25the exemption being treated as an erroneous exemption. Upon
26timely receipt of the notice for the current tax year, no

 

 

SB3995- 12 -LRB101 21368 HLH 71993 b

1exemption shall be applied to the property for the current tax
2year. If the exemption is not removed upon timely receipt of
3the notice by the chief assessment officer, then the error is
4considered granted as a result of a clerical error or omission
5on the part of the chief county assessment officer as described
6in subsection (h) of Section 9-275, and the property owner
7shall not be liable for the payment of interest and penalties
8due to the erroneous exemption for the current tax year for
9which the notice was filed after the date that notice was
10timely received pursuant to this subsection. Notice provided
11under this subsection shall not constitute a defense or amnesty
12for prior year erroneous exemptions.
13    For the purposes of this subsection (d-1):
14    "Collection year" means the year in which the first and
15second installment of the current tax year is billed.
16    "Current tax year" means the year prior to the collection
17year.
18    (e) The chief county assessment officer may, when
19considering whether to grant a leasehold exemption under this
20Section, require the following conditions to be met:
21        (1) that a notarized application for the exemption,
22    signed by both the owner and the lessee of the property,
23    must be submitted each year during the application period
24    in effect for the county in which the property is located;
25        (2) that a copy of the lease must be filed with the
26    chief county assessment officer by the owner of the

 

 

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

 

 

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

 

 

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

 

 

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1residential property to receive the homestead exemption and the
2amount of the exemption by application, visual inspection,
3questionnaire or other reasonable methods. The determination
4shall be made in accordance with guidelines established by the
5Department, provided that the taxpayer applying for an
6additional general exemption under this Section shall submit to
7the chief county assessment officer an application with an
8affidavit of the applicant's total household income, age,
9marital status (and, if married, the name and address of the
10applicant's spouse, if known), and principal dwelling place of
11members of the household on January 1 of the taxable year. The
12Department shall issue guidelines establishing a method for
13verifying the accuracy of the affidavits filed by applicants
14under this paragraph. The applications shall be clearly marked
15as applications for the Additional General Homestead
16Exemption.
17    (i-5) This subsection (i-5) applies to counties with
183,000,000 or more inhabitants. In the event of a sale of
19homestead property, the homestead exemption shall remain in
20effect for the remainder of the assessment year of the sale.
21Upon receipt of a transfer declaration transmitted by the
22recorder pursuant to Section 31-30 of the Real Estate Transfer
23Tax Law for property receiving an exemption under this Section,
24the assessor shall mail a notice and forms to the new owner of
25the property providing information pertaining to the rules and
26applicable filing periods for applying or reapplying for

 

 

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1homestead exemptions under this Code for which the property may
2be eligible. If the new owner fails to apply or reapply for a
3homestead exemption during the applicable filing period or the
4property no longer qualifies for an existing homestead
5exemption, the assessor shall cancel such exemption for any
6ensuing assessment year.
7    (j) In counties with fewer than 3,000,000 inhabitants, in
8the event of a sale of homestead property the homestead
9exemption shall remain in effect for the remainder of the
10assessment year of the sale. The assessor or chief county
11assessment officer may require the new owner of the property to
12apply for the homestead exemption for the following assessment
13year.
14    (k) Notwithstanding Sections 6 and 8 of the State Mandates
15Act, no reimbursement by the State is required for the
16implementation of any mandate created by this Section.
17    (l) The changes made to this Section by this amendatory Act
18of the 100th General Assembly are effective for the 2018 tax
19year and thereafter.
20(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
2199-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
228-25-17; 100-1077, eff. 1-1-19.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.