Illinois General Assembly - Full Text of SB3093
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Full Text of SB3093  100th General Assembly




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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 exemption
10limited, except as described here with relation to cooperatives
11or life care facilities, to a reduction in the equalized
12assessed value of homestead property equal to the increase in
13equalized assessed value for the current assessment year above
14the equalized assessed value of the property for 1977, up to
15the maximum reduction set forth below. If however, the 1977
16equalized assessed value upon which taxes were paid is
17subsequently determined by local assessing officials, the
18Property Tax Appeal Board, or a court to have been excessive,
19the equalized assessed value which should have been placed on
20the property for 1977 shall be used to determine the amount of
21the 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, for
3taxable years 2004 through 2007, the maximum reduction shall be
4$5,000, for taxable year 2008, the maximum reduction is $5,500,
5and, for taxable years 2009 through 2011, the maximum reduction
6is $6,000 in all counties. For taxable years 2012 through 2016,
7the maximum reduction is $7,000 in counties with 3,000,000 or
8more inhabitants and $6,000 in all other counties. For taxable
9years 2017 and thereafter, the maximum reduction is $10,000 in
10counties with 3,000,000 or more inhabitants and $6,000 in all
11other counties. If a county has elected to subject itself to
12the provisions of Section 15-176 as provided in subsection (k)
13of that Section, then, for the first taxable year only after
14the provisions of Section 15-176 no longer apply, for owners
15who, for the taxable year, have not been granted a senior
16citizens assessment freeze homestead exemption under Section
1715-172 or a long-time occupant homestead exemption under
18Section 15-177, there shall be an additional exemption of
19$5,000 for owners with a household income of $30,000 or less.
20    (c) In counties with fewer than 3,000,000 inhabitants, if,
21based on the most recent assessment, the equalized assessed
22value of the homestead property for the current assessment year
23is greater than the equalized assessed value of the property
24for 1977, the owner of the property shall automatically receive
25the exemption granted under this Section in an amount equal to
26the increase over the 1977 assessment up to the maximum



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1reduction set forth in this Section.
2    (d) If in any assessment year beginning with the 2000
3assessment year, homestead property has a pro-rata valuation
4under Section 9-180 resulting in an increase in the assessed
5valuation, a reduction in equalized assessed valuation equal to
6the increase in equalized assessed value of the property for
7the year of the pro-rata valuation above the equalized assessed
8value of the property for 1977 shall be applied to the property
9on a proportionate basis for the period the property qualified
10as homestead property during the assessment year. The maximum
11proportionate homestead exemption shall not exceed the maximum
12homestead exemption allowed in the county under this Section
13divided by 365 and multiplied by the number of days the
14property qualified as homestead property.
15    (d-1) In counties with 3,000,000 or more inhabitants, where
16the chief county assessment officer provides a notice of
17discovery, if a property is not occupied by its owner as a
18principal residence as of January 1 of the current tax year,
19then the property owner shall notify the chief county
20assessment officer of that fact on a form prescribed by the
21chief county assessment officer. That notice must be received
22by the chief county assessment officer on or before March 1 of
23the collection year. If mailed, the form shall be sent by
24certified mail, return receipt requested. If the form is
25provided in person, the chief county assessment officer shall
26provide a date stamped copy of the notice. Failure to provide



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1timely notice pursuant to this subsection (d-1) shall result in
2the exemption being treated as an erroneous exemption. Upon
3timely receipt of the notice for the current tax year, no
4exemption shall be applied to the property for the current tax
5year. If the exemption is not removed upon timely receipt of
6the notice by the chief assessment officer, then the error is
7considered granted as a result of a clerical error or omission
8on the part of the chief county assessment officer as described
9in subsection (h) of Section 9-275, and the property owner
10shall not be liable for the payment of interest and penalties
11due to the erroneous exemption for the current tax year for
12which the notice was filed after the date that notice was
13timely received pursuant to this subsection. Notice provided
14under this subsection shall not constitute a defense or amnesty
15for prior year erroneous exemptions.
16    For the purposes of this subsection (d-1):
17    "Collection year" means the year in which the first and
18second installment of the current tax year is billed.
19    "Current tax year" means the year prior to the collection
21    (e) The chief county assessment officer may, when
22considering whether to grant a leasehold exemption under this
23Section, require the following conditions to be met:
24        (1) that a notarized application for the exemption,
25    signed by both the owner and the lessee of the property,
26    must be submitted each year during the application period



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



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



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



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1residences qualifying as homestead property, each residence
2shall receive 50% of the total reduction in equalized assessed
3valuation provided by this Section.
4    (i) In all counties, the assessor or chief county
5assessment officer may determine the eligibility of
6residential property to receive the homestead exemption and the
7amount of the exemption by application, visual inspection,
8questionnaire or other reasonable methods. The determination
9shall be made in accordance with guidelines established by the
10Department, provided that the taxpayer applying for an
11additional general exemption under this Section shall submit to
12the chief county assessment officer an application with an
13affidavit of the applicant's total household income, age,
14marital status (and, if married, the name and address of the
15applicant's spouse, if known), and principal dwelling place of
16members of the household on January 1 of the taxable year. The
17Department shall issue guidelines establishing a method for
18verifying the accuracy of the affidavits filed by applicants
19under this paragraph. The applications shall be clearly marked
20as applications for the Additional General Homestead
22    (i-5) This subsection (i-5) applies to counties with
233,000,000 or more inhabitants. In the event of a sale of
24homestead property, the homestead exemption shall remain in
25effect for the remainder of the assessment year of the sale.
26Upon receipt of a transfer declaration transmitted by the



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1recorder pursuant to Section 31-30 of the Real Estate Transfer
2Tax Law for property receiving an exemption under this Section,
3the assessor shall mail a notice and forms to the new owner of
4the property providing information pertaining to the rules and
5applicable filing periods for applying or reapplying for
6homestead exemptions under this Code for which the property may
7be eligible. If the new owner fails to apply or reapply for a
8homestead exemption during the applicable filing period or the
9property no longer qualifies for an existing homestead
10exemption, the assessor shall cancel such exemption for any
11ensuing assessment year.
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
19    (k) Notwithstanding Sections 6 and 8 of the State Mandates
20Act, no reimbursement by the State is required for the
21implementation of any mandate created by this Section.
22    (l) The changes made to this Section by this amendatory Act
23of the 100th General Assembly are effective for the 2018 tax
24year and thereafter.
25(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
2699-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.



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