Illinois General Assembly - Full Text of HB1411
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Full Text of HB1411  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 1/31/2023, by Rep. Martin McLaughlin


35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, for taxable years 2024 and thereafter, the maximum reduction is $10,000 in all counties. Effective immediately.

LRB103 25602 HLH 51951 b





HB1411LRB103 25602 HLH 51951 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
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
10exemption limited, except as described here with relation to
11cooperatives or life care facilities, to a reduction in the
12equalized assessed value of homestead property equal to the
13increase in equalized assessed value for the current
14assessment year above the equalized assessed value of the
15property for 1977, up to the maximum reduction set forth
16below. If however, the 1977 equalized assessed value upon
17which taxes were paid is subsequently determined by local
18assessing officials, the Property Tax Appeal Board, or a court
19to have been excessive, the equalized assessed value which
20should have been placed on the property for 1977 shall be used
21to determine the amount of the exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties



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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177,
3for taxable years 2004 through 2007, the maximum reduction
4shall be $5,000, for taxable year 2008, the maximum reduction
5is $5,500, and, for taxable years 2009 through 2011, the
6maximum reduction is $6,000 in all counties. For taxable years
72012 through 2016, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable years 2017 through 2022, the maximum
10reduction is $10,000 in counties with 3,000,000 or more
11inhabitants and $6,000 in all other counties. For taxable year
12years 2023 and thereafter, the maximum reduction is $10,000 in
13counties with 3,000,000 or more inhabitants, $8,000 in
14counties that are contiguous to a county of 3,000,000 or more
15inhabitants, and $6,000 in all other counties. For taxable
16years 2024 and thereafter, the maximum reduction is $10,000 in
17all counties. If a county has elected to subject itself to the
18provisions of Section 15-176 as provided in subsection (k) of
19that Section, then, for the first taxable year only after the
20provisions of Section 15-176 no longer apply, for owners who,
21for the taxable year, have not been granted a senior citizens
22assessment freeze homestead exemption under Section 15-172 or
23a long-time occupant homestead exemption under Section 15-177,
24there shall be an additional exemption of $5,000 for owners
25with a household income of $30,000 or less.
26    (c) In counties with fewer than 3,000,000 inhabitants, if,



HB1411- 3 -LRB103 25602 HLH 51951 b

1based on the most recent assessment, the equalized assessed
2value of the homestead property for the current assessment
3year is greater than the equalized assessed value of the
4property for 1977, the owner of the property shall
5automatically receive the exemption granted under this Section
6in an amount equal to the increase over the 1977 assessment up
7to the maximum reduction set forth in this Section.
8    (d) If in any assessment year beginning with the 2000
9assessment year, homestead property has a pro-rata valuation
10under Section 9-180 resulting in an increase in the assessed
11valuation, a reduction in equalized assessed valuation equal
12to the increase in equalized assessed value of the property
13for the year of the pro-rata valuation above the equalized
14assessed value of the property for 1977 shall be applied to the
15property on a proportionate basis for the period the property
16qualified as homestead property during the assessment year.
17The maximum proportionate homestead exemption shall not exceed
18the maximum homestead exemption allowed in the county under
19this Section divided by 365 and multiplied by the number of
20days the property qualified as homestead property.
21    (d-1) In counties with 3,000,000 or more inhabitants,
22where the chief county assessment officer provides a notice of
23discovery, if a property is not occupied by its owner as a
24principal residence as of January 1 of the current tax year,
25then the property owner shall notify the chief county
26assessment officer of that fact on a form prescribed by the



HB1411- 4 -LRB103 25602 HLH 51951 b

1chief county assessment officer. That notice must be received
2by the chief county assessment officer on or before March 1 of
3the collection year. If mailed, the form shall be sent by
4certified mail, return receipt requested. If the form is
5provided in person, the chief county assessment officer shall
6provide a date stamped copy of the notice. Failure to provide
7timely notice pursuant to this subsection (d-1) shall result
8in the exemption being treated as an erroneous exemption. Upon
9timely receipt of the notice for the current tax year, no
10exemption shall be applied to the property for the current tax
11year. If the exemption is not removed upon timely receipt of
12the notice by the chief assessment officer, then the error is
13considered granted as a result of a clerical error or omission
14on the part of the chief county assessment officer as
15described in subsection (h) of Section 9-275, and the property
16owner shall not be liable for the payment of interest and
17penalties due to the erroneous exemption for the current tax
18year for which the notice was filed after the date that notice
19was timely received pursuant to this subsection. Notice
20provided under this subsection shall not constitute a defense
21or amnesty for prior year erroneous exemptions.
22    For the purposes of this subsection (d-1):
23    "Collection year" means the year in which the first and
24second installment of the current tax year is billed.
25    "Current tax year" means the year prior to the collection



HB1411- 5 -LRB103 25602 HLH 51951 b

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
13    lessee 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
21        premises is (insert number), and, according to the
22        most recent property tax bill, the current amount of
23        real estate taxes associated with the premises is
24        (insert amount) per year. The parties agree that the
25        monthly rent set forth above shall be increased or
26        decreased pro rata (effective January 1 of each



HB1411- 6 -LRB103 25602 HLH 51951 b

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



HB1411- 7 -LRB103 25602 HLH 51951 b

1the owner or owners of record, for paying property taxes on the
2property and is an owner of record of a legal or equitable
3interest in the cooperative apartment building, other than a
4leasehold interest. For land improved with a life care
5facility, the maximum reduction from the value of the
6property, as equalized by the Department, shall be multiplied
7by the number of apartments or units occupied by a person or
8persons, irrespective of any legal, equitable, or leasehold
9interest in the facility, who are liable, under a life care
10contract with the owner or owners of record of the facility,
11for paying property taxes on the property. For purposes of
12this Section, the term "life care facility" has the meaning
13stated 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 Persons
22with Disabilities Property Tax Relief Act, except that
23"income" does not include veteran's benefits.
24    (g) In a cooperative or life care facility where a
25homestead exemption has been granted, the cooperative
26association or the management of the cooperative or life care



HB1411- 8 -LRB103 25602 HLH 51951 b

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



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2    (i-5) This subsection (i-5) applies to counties with
33,000,000 or more inhabitants. In the event of a sale of
4homestead property, the homestead exemption shall remain in
5effect for the remainder of the assessment year of the sale.
6Upon receipt of a transfer declaration transmitted by the
7recorder pursuant to Section 31-30 of the Real Estate Transfer
8Tax Law for property receiving an exemption under this
9Section, the assessor shall mail a notice and forms to the new
10owner of the property providing information pertaining to the
11rules and applicable filing periods for applying or reapplying
12for homestead exemptions under this Code for which the
13property may be eligible. If the new owner fails to apply or
14reapply for a homestead exemption during the applicable filing
15period or the property no longer qualifies for an existing
16homestead exemption, the assessor shall cancel such exemption
17for any ensuing assessment year.
18    (j) In counties with fewer than 3,000,000 inhabitants, in
19the event of a sale of homestead property the homestead
20exemption shall remain in effect for the remainder of the
21assessment year of the sale. The assessor or chief county
22assessment officer may require the new owner of the property
23to apply for the homestead exemption for the following
24assessment year.
25    (k) Notwithstanding Sections 6 and 8 of the State Mandates
26Act, no reimbursement by the State is required for the



HB1411- 10 -LRB103 25602 HLH 51951 b

1implementation of any mandate created by this Section.
2    (l) The changes made to this Section by this amendatory
3Act of the 100th General Assembly are effective for the 2018
4tax year and thereafter.
5(Source: P.A. 102-895, eff. 5-23-22.)
6    Section 99. Effective date. This Act takes effect upon
7becoming law.