Bill Text: IL HB6294 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that the general homestead exemption amount and the long-time occupant homestead exemption amount shall be doubled for homestead property that is negatively affected by aircraft noise from Chicago O'Hare International Airport. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB6294 Detail]

Download: Illinois-2013-HB6294-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB6294 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-175
35 ILCS 200/15-177
Amends the Property Tax Code. Provides that the general homestead exemption amount and the long-time occupant homestead exemption amount shall be doubled for homestead property that is negatively affected by aircraft noise from Chicago O'Hare International Airport. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-175 and 15-177 as follows:
(35 ILCS 200/15-175)
Sec. 15-175. General homestead exemption.
(a) Except as provided in Sections 15-176 and 15-177,
homestead property is entitled to an annual homestead exemption
limited, except as described here with relation to
cooperatives, to a reduction in the equalized assessed value of
homestead property equal to the increase in equalized assessed
value for the current assessment year above the equalized
assessed value of the property for 1977, up to the maximum
reduction set forth below. If however, the 1977 equalized
assessed value upon which taxes were paid is subsequently
determined by local assessing officials, the Property Tax
Appeal Board, or a court to have been excessive, the equalized
assessed value which should have been placed on the property
for 1977 shall be used to determine the amount of the
exemption.
(b) Except as provided in Section 15-176, the maximum
reduction before taxable year 2004 shall be $4,500 in counties

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with 3,000,000 or more inhabitants and $3,500 in all other
counties. Except as provided in Sections 15-176 and 15-177, for
taxable years 2004 through 2007, the maximum reduction shall be
$5,000, for taxable year 2008, the maximum reduction is $5,500,
and, for taxable years 2009 through 2011, the maximum reduction
is $6,000 in all counties. For taxable years 2012 and
thereafter, the maximum reduction is $7,000 in counties with
3,000,000 or more inhabitants and $6,000 in all other counties.
If a county has elected to subject itself to the provisions of
Section 15-176 as provided in subsection (k) of that Section,
then, for the first taxable year only after the provisions of
Section 15-176 no longer apply, for owners who, for the taxable
year, have not been granted a senior citizens assessment freeze
homestead exemption under Section 15-172 or a long-time
occupant homestead exemption under Section 15-177, there shall
be an additional exemption of $5,000 for owners with a
household income of $30,000 or less.
(c) In counties with fewer than 3,000,000 inhabitants, if,
based on the most recent assessment, the equalized assessed
value of the homestead property for the current assessment year
is greater than the equalized assessed value of the property
for 1977, the owner of the property shall automatically receive
the exemption granted under this Section in an amount equal to
the increase over the 1977 assessment up to the maximum
reduction set forth in this Section.
(d) If in any assessment year beginning with the 2000

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assessment year, homestead property has a pro-rata valuation
under Section 9-180 resulting in an increase in the assessed
valuation, a reduction in equalized assessed valuation equal to
the increase in equalized assessed value of the property for
the year of the pro-rata valuation above the equalized assessed
value of the property for 1977 shall be applied to the property
on a proportionate basis for the period the property qualified
as homestead property during the assessment year. The maximum
proportionate homestead exemption shall not exceed the maximum
homestead exemption allowed in the county under this Section
divided by 365 and multiplied by the number of days the
property qualified as homestead property.
(e) The chief county assessment officer may, when
considering whether to grant a leasehold exemption under this
Section, require the following conditions to be met:
(1) that a notarized application for the exemption,
signed by both the owner and the lessee of the property,
must be submitted each year during the application period
in effect for the county in which the property is located;
(2) that a copy of the lease must be filed with the
chief county assessment officer by the owner of the
property at the time the notarized application is
submitted;
(3) that the lease must expressly state that the lessee
is liable for the payment of property taxes; and
(4) that the lease must include the following language

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in substantially the following form:
"Lessee shall be liable for the payment of real
estate taxes with respect to the residence in
accordance with the terms and conditions of Section
15-175 of the Property Tax Code (35 ILCS 200/15-175).
The permanent real estate index number for the premises
is (insert number), and, according to the most recent
property tax bill, the current amount of real estate
taxes associated with the premises is (insert amount)
per year. The parties agree that the monthly rent set
forth above shall be increased or decreased pro rata
(effective January 1 of each calendar year) to reflect
any increase or decrease in real estate taxes. Lessee
shall be deemed to be satisfying Lessee's liability for
the above mentioned real estate taxes with the monthly
rent payments as set forth above (or increased or
decreased as set forth herein).".
In addition, if there is a change in lessee, or if the
lessee vacates the property, then the chief county assessment
officer may require the owner of the property to notify the
chief county assessment officer of that change.
This subsection (e) does not apply to leasehold interests
in property owned by a municipality.
(e-5) Notwithstanding any other provision of law, and
notwithstanding the limitations set forth in subsection (b),
beginning in assessment year 2014, if homestead property is

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negatively affected by aircraft noise from Chicago O'Hare
International Airport, then the amount of the exemption for
that property shall be the amount of the exemption otherwise
provided under this Section for that property, multiplied by 2.
For the purposes of this subsection (e-5), property is
negatively affected by aircraft noise from Chicago O'Hare
International Airport if the property routinely experiences
aircraft noise of 65 decibels or more, and that aircraft noise
is directly attributable to flight patterns at Chicago O'Hare
International Airport. The assessor or chief county assessment
officer may determine the eligibility of residential property
to receive the double homestead exemption under this subsection
by application, visual inspection, questionnaire, or other
reasonable methods. The determination shall be made in
accordance with guidelines established by the Department,
provided that the taxpayer applying for a double homestead
exemption under this subsection shall submit to the chief
county assessment officer, along with the taxpayer's original
homestead exemption application, additional documentation
establishing that the property is negatively affected by
aircraft noise from Chicago O'Hare International Airport.
(f) "Homestead property" under this Section includes
residential property that is occupied by its owner or owners as
his or their principal dwelling place, or that is a leasehold
interest on which a single family residence is situated, which
is occupied as a residence by a person who has an ownership

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interest therein, legal or equitable or as a lessee, and on
which the person is liable for the payment of property taxes.
For land improved with an apartment building owned and operated
as a cooperative or a building which is a life care facility as
defined in Section 15-170 and considered to be a cooperative
under Section 15-170, the maximum reduction from the equalized
assessed value shall be limited to the increase in the value
above the equalized assessed value of the property for 1977, up
to the maximum reduction set forth above, multiplied by the
number of apartments or units occupied by a person or persons
who is liable, by contract with the owner or owners of record,
for paying property taxes on the property and is an owner of
record of a legal or equitable interest in the cooperative
apartment building, other than a leasehold interest. For
purposes of this Section, the term "life care facility" has the
meaning stated in Section 15-170.
"Household", as used in this Section, means the owner, the
spouse of the owner, and all persons using the residence of the
owner as their principal place of residence.
"Household income", as used in this Section, means the
combined income of the members of a household for the calendar
year preceding the taxable year.
"Income", as used in this Section, has the same meaning as
provided in Section 3.07 of the Senior Citizens and Disabled
Persons Property Tax Relief Act, except that "income" does not
include veteran's benefits.

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(g) In a cooperative where a homestead exemption has been
granted, the cooperative association or its management firm
shall credit the savings resulting from that exemption only to
the apportioned tax liability of the owner who qualified for
the exemption. Any person who willfully refuses to so credit
the savings shall be guilty of a Class B misdemeanor.
(h) Where married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
(i) In all counties, the assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption and the
amount of the exemption by application, visual inspection,
questionnaire or other reasonable methods. The determination
shall be made in accordance with guidelines established by the
Department, provided that the taxpayer applying for an
additional general exemption under this Section shall submit to
the chief county assessment officer an application with an
affidavit of the applicant's total household income, age,
marital status (and, if married, the name and address of the
applicant's spouse, if known), and principal dwelling place of
members of the household on January 1 of the taxable year. The
Department shall issue guidelines establishing a method for
verifying the accuracy of the affidavits filed by applicants
under this paragraph. The applications shall be clearly marked

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as applications for the Additional General Homestead
Exemption.
(j) In counties with fewer than 3,000,000 inhabitants, in
the event of a sale of homestead property the homestead
exemption shall remain in effect for the remainder of the
assessment year of the sale. The assessor or chief county
assessment officer may require the new owner of the property to
apply for the homestead exemption for the following assessment
year.
(k) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
98-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
(35 ILCS 200/15-177)
Sec. 15-177. The long-time occupant homestead exemption.
(a) If the county has elected, under Section 15-176, to be
subject to the provisions of the alternative general homestead
exemption, then, for taxable years 2007 and thereafter,
regardless of whether the exemption under Section 15-176
applies, qualified homestead property is entitled to an annual
homestead exemption equal to a reduction in the property's
equalized assessed value calculated as provided in this
Section.
(b) As used in this Section:

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"Adjusted homestead value" means the lesser of the
following values:
(1) The property's base homestead value increased by:
(i) 10% for each taxable year after the base year through
and including the current tax year for qualified taxpayers
with a household income of more than $75,000 but not
exceeding $100,000; or (ii) 7% for each taxable year after
the base year through and including the current tax year
for qualified taxpayers with a household income of $75,000
or less. The increase each year is an increase over the
prior year; or
(2) The property's equalized assessed value for the
current tax year minus the general homestead deduction.
"Base homestead value" means:
(1) if the property did not have an adjusted homestead
value under Section 15-176 for the base year, then an
amount equal to the equalized assessed value of the
property for the base year prior to exemptions, minus the
general homestead deduction, provided that the property's
assessment was not based on a reduced assessed value
resulting from a temporary irregularity in the property for
that year; or
(2) if the property had an adjusted homestead value
under Section 15-176 for the base year, then an amount
equal to the adjusted homestead value of the property under
Section 15-176 for the base year.

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"Base year" means the taxable year prior to the taxable
year in which the taxpayer first qualifies for the exemption
under this Section.
"Current taxable year" means the taxable year for which the
exemption under this Section is being applied.
"Equalized assessed value" means the property's assessed
value as equalized by the Department.
"Homestead" or "homestead property" means residential
property that as of January 1 of the tax year is occupied by a
qualified taxpayer as his or her principal dwelling place, or
that is a leasehold interest on which a single family residence
is situated, that is occupied as a residence by a qualified
taxpayer who has a legal or equitable interest therein
evidenced by a written instrument, as an owner or as a lessee,
and on which the person is liable for the payment of property
taxes. Residential units in an apartment building owned and
operated as a cooperative, or as a life care facility, which
are occupied by persons who hold a legal or equitable interest
in the cooperative apartment building or life care facility as
owners or lessees, and who are liable by contract for the
payment of property taxes, are included within this definition
of homestead property. A homestead includes the dwelling place,
appurtenant structures, and so much of the surrounding land
constituting the parcel on which the dwelling place is situated
as is used for residential purposes. If the assessor has
established a specific legal description for a portion of

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property constituting the homestead, then the homestead is
limited to the property within that description.
"Household income" has the meaning set forth under Section
15-172 of this Code.
"General homestead deduction" means the amount of the
general homestead exemption under Section 15-175.
"Life care facility" means a facility defined in Section 2
of the Life Care Facilities Act.
"Qualified homestead property" means homestead property
owned by a qualified taxpayer.
"Qualified taxpayer" means any individual:
(1) who, for at least 10 continuous years as of January
1 of the taxable year, has occupied the same homestead
property as a principal residence and domicile or who, for
at least 5 continuous years as of January 1 of the taxable
year, has occupied the same homestead property as a
principal residence and domicile if that person received
assistance in the acquisition of the property as part of a
government or nonprofit housing program; and
(2) who has a household income of $100,000 or less.
(c) The base homestead value must remain constant, except
that the assessor may revise it under any of the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the previous
base homestead value for that property, then the current

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equalized assessed value (provided it is not based on a
reduced assessed value resulting from a temporary
irregularity in the property) becomes the base homestead
value in subsequent tax years.
(2) For any year in which new buildings, structures, or
other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value with due
regard to the value added by the new improvements.
(d) The amount of the exemption under this Section is the
greater of: (i) the equalized assessed value of the homestead
property for the current tax year minus the adjusted homestead
value; or (ii) the general homestead deduction.
(d-5) Notwithstanding any other provision of law, if
qualified homestead property is negatively affected by
aircraft noise from Chicago O'Hare International Airport, as
provided in subsection (e-5) of Section 15-175, then the amount
of the exemption for that property shall be the greater of: (i)
the difference between the equalized assessed value of the
homestead property for the current tax year and the adjusted
homestead value, multiplied by 2; or (ii) the general homestead
deduction calculated under subsection (e-5) of Section 15-175.
The assessor or chief county assessment officer may determine
the eligibility of residential property to receive the double
homestead exemption under this subsection by application,
visual inspection, questionnaire, or other reasonable methods.

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The determination shall be made in accordance with guidelines
established by the Department, provided that the taxpayer
applying for a double homestead exemption under this subsection
shall submit to the chief county assessment officer, along with
the taxpayer's original homestead exemption application,
additional documentation establishing that the property is
negatively affected by aircraft noise from Chicago O'Hare
International Airport.
(e) In the case of an apartment building owned and operated
as a cooperative, or as a life care facility, that contains
residential units that qualify as homestead property of a
qualified taxpayer under this Section, the maximum cumulative
exemption amount attributed to the entire building or facility
shall not exceed the sum of the exemptions calculated for each
unit that is a qualified homestead property. The cooperative
association, management firm, or other person or entity that
manages or controls the cooperative apartment building or life
care facility shall credit the exemption attributable to each
residential unit only to the apportioned tax liability of the
qualified taxpayer as to that unit. Any person who willfully
refuses to so credit the exemption is guilty of a Class B
misdemeanor.
(f) When married persons maintain separate residences, the
exemption provided under this Section may be claimed by only
one such person and for only one residence. No person who
receives an exemption under Section 15-172 of this Code may

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receive an exemption under this Section. No person who receives
an exemption under this Section may receive an exemption under
Section 15-175 or 15-176 of this Code.
(g) In the event of a sale or other transfer in ownership
of the homestead property between spouses or between a parent
and a child, the exemption under this Section remains in effect
if the new owner has a household income of $100,000 or less.
(h) In the event of a sale or other transfer in ownership
of the homestead property other than subsection (g) of this
Section, the exemption under this Section shall remain in
effect for the remainder of the tax year and be calculated
using the same base homestead value in which the sale or
transfer occurs.
(i) To receive the exemption, a person must submit an
application to the county assessor during the period specified
by the county assessor.
The county assessor shall annually give notice of the
application period by mail or by publication.
The taxpayer must submit, with the application, an
affidavit of the taxpayer's total household income, marital
status (and if married the name and address of the applicant's
spouse, if known), and principal dwelling place of members of
the household on January 1 of the taxable year. The Department
shall establish, by rule, a method for verifying the accuracy
of affidavits filed by applicants under this Section, and the
Chief County Assessment Officer may conduct audits of any

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taxpayer claiming an exemption under this Section to verify
that the taxpayer is eligible to receive the exemption. Each
application shall contain or be verified by a written
declaration that it is made under the penalties of perjury. A
taxpayer's signing a fraudulent application under this Act is
perjury, as defined in Section 32-2 of the Criminal Code of
2012. The applications shall be clearly marked as applications
for the Long-time Occupant Homestead Exemption and must contain
a notice that any taxpayer who receives the exemption is
subject to an audit by the Chief County Assessment Officer.
(j) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 97-1150, eff. 1-25-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.