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


Sen. Neil Anderson

Filed: 4/17/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 3093, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Property Tax Code is amended by changing
6Section 15-175 as follows:
7    (35 ILCS 200/15-175)
8    Sec. 15-175. General homestead exemption.
9    (a) Except as provided in Sections 15-176 and 15-177,
10homestead property is entitled to an annual homestead exemption
11limited, except as described here with relation to cooperatives
12or life care facilities, to a reduction in the equalized
13assessed value of homestead property equal to the increase in
14equalized assessed value for the current assessment year above
15the equalized assessed value of the property for 1977, up to
16the maximum reduction set forth below. If however, the 1977



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1equalized assessed value upon which taxes were paid is
2subsequently determined by local assessing officials, the
3Property Tax Appeal Board, or a court to have been excessive,
4the equalized assessed value which should have been placed on
5the property for 1977 shall be used to determine the amount of
6the exemption.
7    (b) Except as provided in Section 15-176, the maximum
8reduction before taxable year 2004 shall be $4,500 in counties
9with 3,000,000 or more inhabitants and $3,500 in all other
10counties. Except as provided in Sections 15-176 and 15-177, for
11taxable years 2004 through 2007, the maximum reduction shall be
12$5,000, for taxable year 2008, the maximum reduction is $5,500,
13and, for taxable years 2009 through 2011, the maximum reduction
14is $6,000 in all counties. For taxable years 2012 through 2016,
15the maximum reduction is $7,000 in counties with 3,000,000 or
16more inhabitants and $6,000 in all other counties. For taxable
17years 2017 and thereafter, the maximum reduction is $10,000 in
18counties with 3,000,000 or more inhabitants and $6,000 in all
19other counties. If a county has elected to subject itself to
20the provisions of Section 15-176 as provided in subsection (k)
21of that Section, then, for the first taxable year only after
22the provisions of Section 15-176 no longer apply, for owners
23who, for the taxable year, have not been granted a senior
24citizens assessment freeze homestead exemption under Section
2515-172 or a long-time occupant homestead exemption under
26Section 15-177, there shall be an additional exemption of



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1$5,000 for owners with a household income of $30,000 or less.
2    (c) In counties with fewer than 3,000,000 inhabitants, if,
3based on the most recent assessment, the equalized assessed
4value of the homestead property for the current assessment year
5is greater than the equalized assessed value of the property
6for 1977, the owner of the property shall automatically receive
7the exemption granted under this Section in an amount equal to
8the increase over the 1977 assessment up to the maximum
9reduction set forth in this Section.
10    (d) If in any assessment year beginning with the 2000
11assessment year, homestead property has a pro-rata valuation
12under Section 9-180 resulting in an increase in the assessed
13valuation, a reduction in equalized assessed valuation equal to
14the increase in equalized assessed value of the property for
15the year of the pro-rata valuation above the equalized assessed
16value of the property for 1977 shall be applied to the property
17on a proportionate basis for the period the property qualified
18as homestead property during the assessment year. The maximum
19proportionate homestead exemption shall not exceed the maximum
20homestead exemption allowed in the county under this Section
21divided by 365 and multiplied by the number of days the
22property qualified as homestead property.
23    (d-1) In counties with 3,000,000 or more inhabitants, where
24the chief county assessment officer provides a notice of
25discovery, if a property is not occupied by its owner as a
26principal residence as of January 1 of the current tax year,



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1then the property owner shall notify the chief county
2assessment officer of that fact on a form prescribed by the
3chief county assessment officer. That notice must be received
4by the chief county assessment officer on or before March 1 of
5the collection year. If mailed, the form shall be sent by
6certified mail, return receipt requested. If the form is
7provided in person, the chief county assessment officer shall
8provide a date stamped copy of the notice. Failure to provide
9timely notice pursuant to this subsection (d-1) shall result in
10the exemption being treated as an erroneous exemption. Upon
11timely receipt of the notice for the current tax year, no
12exemption shall be applied to the property for the current tax
13year. If the exemption is not removed upon timely receipt of
14the notice by the chief assessment officer, then the error is
15considered granted as a result of a clerical error or omission
16on the part of the chief county assessment officer as described
17in subsection (h) of Section 9-275, and the property owner
18shall not be liable for the payment of interest and penalties
19due to the erroneous exemption for the current tax year for
20which the notice was filed after the date that notice was
21timely received pursuant to this subsection. Notice provided
22under this subsection shall not constitute a defense or amnesty
23for prior year erroneous exemptions.
24    For the purposes of this subsection (d-1):
25    "Collection year" means the year in which the first and
26second installment of the current tax year is billed.



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1    "Current tax year" means the year prior to the collection
3    (e) The chief county assessment officer may, when
4considering whether to grant a leasehold exemption under this
5Section, require the following conditions to be met:
6        (1) that a notarized application for the exemption,
7    signed by both the owner and the lessee of the property,
8    must be submitted each year during the application period
9    in effect for the county in which the property is located;
10        (2) that a copy of the lease must be filed with the
11    chief county assessment officer by the owner of the
12    property at the time the notarized application is
13    submitted;
14        (3) that the lease must expressly state that the lessee
15    is liable for the payment of property taxes; and
16        (4) that the lease must include the following language
17    in substantially the following form:
18            "Lessee shall be liable for the payment of real
19        estate taxes with respect to the residence in
20        accordance with the terms and conditions of Section
21        15-175 of the Property Tax Code (35 ILCS 200/15-175).
22        The permanent real estate index number for the premises
23        is (insert number), and, according to the most recent
24        property tax bill, the current amount of real estate
25        taxes associated with the premises is (insert amount)
26        per year. The parties agree that the monthly rent set



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1        forth above shall be increased or decreased pro rata
2        (effective January 1 of each calendar year) to reflect
3        any increase or decrease in real estate taxes. Lessee
4        shall be deemed to be satisfying Lessee's liability for
5        the above mentioned real estate taxes with the monthly
6        rent payments as set forth above (or increased or
7        decreased as set forth herein).".
8    In addition, if there is a change in lessee, or if the
9lessee vacates the property, then the chief county assessment
10officer may require the owner of the property to notify the
11chief county assessment officer of that change.
12    This subsection (e) does not apply to leasehold interests
13in property owned by a municipality.
14    (f) "Homestead property" under this Section includes
15residential property that is occupied by its owner or owners as
16his or their principal dwelling place, or that is a leasehold
17interest on which a single family residence is situated, which
18is occupied as a residence by a person who has an ownership
19interest therein, legal or equitable or as a lessee, and on
20which the person is liable for the payment of property taxes.
21For land improved with an apartment building owned and operated
22as a cooperative or a building which is a life care facility as
23defined in Section 15-170 and considered to be a cooperative
24under Section 15-170, the maximum reduction from the equalized
25assessed value shall be limited to the increase in the value
26above the equalized assessed value of the property for 1977, up



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



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



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1under this paragraph. The applications shall be clearly marked
2as applications for the Additional General Homestead
4    (i-5) This subsection (i-5) applies to counties with
53,000,000 or more inhabitants. In the event of a sale of
6homestead property, the homestead exemption shall remain in
7effect for the remainder of the assessment year of the sale.
8Upon receipt of a transfer declaration transmitted by the
9recorder pursuant to Section 31-30 of the Real Estate Transfer
10Tax Law for property receiving an exemption under this Section,
11the assessor shall mail a notice and forms to the new owner of
12the property providing information pertaining to the rules and
13applicable filing periods for applying or reapplying for
14homestead exemptions under this Code for which the property may
15be eligible. If the new owner fails to apply or reapply for a
16homestead exemption during the applicable filing period or the
17property no longer qualifies for an existing homestead
18exemption, the assessor shall cancel such exemption for any
19ensuing assessment year.
20    (j) In counties with fewer than 3,000,000 inhabitants, in
21the event of a sale of homestead property the homestead
22exemption shall remain in effect for the remainder of the
23assessment year of the sale. The assessor or chief county
24assessment officer may require the new owner of the property to
25apply for the homestead exemption for the following assessment



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1    (k) Notwithstanding Sections 6 and 8 of the State Mandates
2Act, no reimbursement by the State is required for the
3implementation of any mandate created by this Section.
4    (l) The changes made to this Section by this amendatory Act
5of the 100th General Assembly are effective for the 2018 tax
6year and thereafter.
7(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
899-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.