Bill Text: IL HB0156 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning a tax credit for property taxes.

Spectrum: Moderate Partisan Bill (Democrat 41-8)

Status: (Engrossed) 2017-05-29 - Assigned to Revenue [HB0156 Detail]

Download: Illinois-2017-HB0156-Engrossed.html



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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
5Sections 9-275, 15-169, 15-170, and 15-175 and by adding
6Sections 15-172.5 and 15-178 as follows:
7 (35 ILCS 200/9-275)
8 Sec. 9-275. Erroneous homestead exemptions.
9 (a) For purposes of this Section:
10 "Erroneous homestead exemption" means a homestead
11exemption that was granted for real property in a taxable year
12if the property was not eligible for that exemption in that
13taxable year. If the taxpayer receives an erroneous homestead
14exemption under a single Section of this Code for the same
15property in multiple years, that exemption is considered a
16single erroneous homestead exemption for purposes of this
17Section. However, if the taxpayer receives erroneous homestead
18exemptions under multiple Sections of this Code for the same
19property, or if the taxpayer receives erroneous homestead
20exemptions under the same Section of this Code for multiple
21properties, then each of those exemptions is considered a
22separate erroneous homestead exemption for purposes of this
23Section.

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1 "Homestead exemption" means an exemption under Section
215-165 (veterans with disabilities), 15-167 (returning
3veterans), 15-168 (persons with disabilities), 15-169
4(standard homestead for veterans with disabilities and
5veterans 75 years of age or older), 15-170 (senior citizens),
615-172 (senior citizens assessment freeze), 15-175 (general
7homestead), 15-176 (alternative general homestead), or 15-177
8(long-time occupant).
9 "Erroneous exemption principal amount" means the total
10difference between the property taxes actually billed to a
11property index number and the amount of property taxes that
12would have been billed but for the erroneous exemption or
13exemptions.
14 "Taxpayer" means the property owner or leasehold owner that
15erroneously received a homestead exemption upon property.
16 (b) Notwithstanding any other provision of law, in counties
17with 3,000,000 or more inhabitants, the chief county assessment
18officer shall include the following information with each
19assessment notice sent in a general assessment year: (1) a list
20of each homestead exemption available under Article 15 of this
21Code and a description of the eligibility criteria for that
22exemption; (2) a list of each homestead exemption applied to
23the property in the current assessment year; (3) information
24regarding penalties and interest that may be incurred under
25this Section if the taxpayer received an erroneous homestead
26exemption in a previous taxable year; and (4) notice of the

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160-day grace period available under this subsection. If, within
260 days after receiving his or her assessment notice, the
3taxpayer notifies the chief county assessment officer that he
4or she received an erroneous homestead exemption in a previous
5taxable year, and if the taxpayer pays the erroneous exemption
6principal amount, plus interest as provided in subsection (f),
7then the taxpayer shall not be liable for the penalties
8provided in subsection (f) with respect to that exemption.
9 (c) In counties with 3,000,000 or more inhabitants, when
10the chief county assessment officer determines that one or more
11erroneous homestead exemptions was applied to the property, the
12erroneous exemption principal amount, together with all
13applicable interest and penalties as provided in subsections
14(f) and (j), shall constitute a lien in the name of the People
15of Cook County on the property receiving the erroneous
16homestead exemption. Upon becoming aware of the existence of
17one or more erroneous homestead exemptions, the chief county
18assessment officer shall cause to be served, by both regular
19mail and certified mail, a notice of discovery as set forth in
20subsection (c-5). The chief county assessment officer in a
21county with 3,000,000 or more inhabitants may cause a lien to
22be recorded against property that (1) is located in the county
23and (2) received one or more erroneous homestead exemptions if,
24upon determination of the chief county assessment officer, the
25taxpayer received: (A) one or 2 erroneous homestead exemptions
26for real property, including at least one erroneous homestead

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1exemption granted for the property against which the lien is
2sought, during any of the 3 collection years immediately prior
3to the current collection year in which the notice of discovery
4is served; or (B) 3 or more erroneous homestead exemptions for
5real property, including at least one erroneous homestead
6exemption granted for the property against which the lien is
7sought, during any of the 6 collection years immediately prior
8to the current collection year in which the notice of discovery
9is served. Prior to recording the lien against the property,
10the chief county assessment officer shall cause to be served,
11by both regular mail and certified mail, return receipt
12requested, on the person to whom the most recent tax bill was
13mailed and the owner of record, a notice of intent to record a
14lien against the property. The chief county assessment officer
15shall cause the notice of intent to record a lien to be served
16within 3 years from the date on which the notice of discovery
17was served.
18 (c-5) The notice of discovery described in subsection (c)
19shall: (1) identify, by property index number, the property for
20which the chief county assessment officer has knowledge
21indicating the existence of an erroneous homestead exemption;
22(2) set forth the taxpayer's liability for principal, interest,
23penalties, and administrative costs including, but not limited
24to, recording fees described in subsection (f); (3) inform the
25taxpayer that he or she will be served with a notice of intent
26to record a lien within 3 years from the date of service of the

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1notice of discovery; (4) inform the taxpayer that he or she may
2pay the outstanding amount, plus interest, penalties, and
3administrative costs at any time prior to being served with the
4notice of intent to record a lien or within 30 days after the
5notice of intent to record a lien is served; and (5) inform the
6taxpayer that, if the taxpayer provided notice to the chief
7county assessment officer as provided in subsection (d-1) of
8Section 15-175 of this Code, upon submission by the taxpayer of
9evidence of timely notice and receipt thereof by the chief
10county assessment officer, the chief county assessment officer
11will withdraw the notice of discovery and reissue a notice of
12discovery in compliance with this Section in which the taxpayer
13is not liable for interest and penalties for the current tax
14year in which the notice was received.
15 For the purposes of this subsection (c-5):
16 "Collection year" means the year in which the first and
17second installment of the current tax year is billed.
18 "Current tax year" means the year prior to the collection
19year.
20 (d) The notice of intent to record a lien described in
21subsection (c) shall: (1) identify, by property index number,
22the property against which the lien is being sought; (2)
23identify each specific homestead exemption that was
24erroneously granted and the year or years in which each
25exemption was granted; (3) set forth the erroneous exemption
26principal amount due and the interest amount and any penalty

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1and administrative costs due; (4) inform the taxpayer that he
2or she may request a hearing within 30 days after service and
3may appeal the hearing officer's ruling to the circuit court;
4(5) inform the taxpayer that he or she may pay the erroneous
5exemption principal amount, plus interest and penalties,
6within 30 days after service; and (6) inform the taxpayer that,
7if the lien is recorded against the property, the amount of the
8lien will be adjusted to include the applicable recording fee
9and that fees for recording a release of the lien shall be
10incurred by the taxpayer. A lien shall not be filed pursuant to
11this Section if the taxpayer pays the erroneous exemption
12principal amount, plus penalties and interest, within 30 days
13of service of the notice of intent to record a lien.
14 (e) The notice of intent to record a lien shall also
15include a form that the taxpayer may return to the chief county
16assessment officer to request a hearing. The taxpayer may
17request a hearing by returning the form within 30 days after
18service. The hearing shall be held within 90 days after the
19taxpayer is served. The chief county assessment officer shall
20promulgate rules of service and procedure for the hearing. The
21chief county assessment officer must generally follow rules of
22evidence and practices that prevail in the county circuit
23courts, but, because of the nature of these proceedings, the
24chief county assessment officer is not bound by those rules in
25all particulars. The chief county assessment officer shall
26appoint a hearing officer to oversee the hearing. The taxpayer

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1shall be allowed to present evidence to the hearing officer at
2the hearing. After taking into consideration all the relevant
3testimony and evidence, the hearing officer shall make an
4administrative decision on whether the taxpayer was
5erroneously granted a homestead exemption for the taxable year
6in question. The taxpayer may appeal the hearing officer's
7ruling to the circuit court of the county where the property is
8located as a final administrative decision under the
9Administrative Review Law.
10 (f) A lien against the property imposed under this Section
11shall be filed with the county recorder of deeds, but may not
12be filed sooner than 60 days after the notice of intent to
13record a lien was delivered to the taxpayer if the taxpayer
14does not request a hearing, or until the conclusion of the
15hearing and all appeals if the taxpayer does request a hearing.
16If a lien is filed pursuant to this Section and the taxpayer
17received one or 2 erroneous homestead exemptions during any of
18the 3 collection years immediately prior to the current
19collection year in which the notice of discovery is served,
20then the erroneous exemption principal amount, plus 10%
21interest per annum or portion thereof from the date the
22erroneous exemption principal amount would have become due if
23properly included in the tax bill, shall be charged against the
24property by the chief county assessment officer. However, if a
25lien is filed pursuant to this Section and the taxpayer
26received 3 or more erroneous homestead exemptions during any of

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1the 6 collection years immediately prior to the current
2collection year in which the notice of discovery is served, the
3erroneous exemption principal amount, plus a penalty of 50% of
4the total amount of the erroneous exemption principal amount
5for that property and 10% interest per annum or portion thereof
6from the date the erroneous exemption principal amount would
7have become due if properly included in the tax bill, shall be
8charged against the property by the chief county assessment
9officer. If a lien is filed pursuant to this Section, the
10taxpayer shall not be liable for interest that accrues between
11the date the notice of discovery is served and the date the
12lien is filed. Before recording the lien with the county
13recorder of deeds, the chief county assessment officer shall
14adjust the amount of the lien to add administrative costs,
15including but not limited to the applicable recording fee, to
16the total lien amount.
17 (g) If a person received an erroneous homestead exemption
18under Section 15-170 and: (1) the person was the spouse, child,
19grandchild, brother, sister, niece, or nephew of the previous
20taxpayer; and (2) the person received the property by bequest
21or inheritance; then the person is not liable for the penalties
22imposed under this Section for any year or years during which
23the chief county assessment officer did not require an annual
24application for the exemption. However, that person is
25responsible for any interest owed under subsection (f).
26 (h) If the erroneous homestead exemption was granted as a

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1result of a clerical error or omission on the part of the chief
2county assessment officer, and if the taxpayer has paid the tax
3bills as received for the year in which the error occurred,
4then the interest and penalties authorized by this Section with
5respect to that homestead exemption shall not be chargeable to
6the taxpayer. However, nothing in this Section shall prevent
7the collection of the erroneous exemption principal amount due
8and owing.
9 (i) A lien under this Section is not valid as to (1) any
10bona fide purchaser for value without notice of the erroneous
11homestead exemption whose rights in and to the underlying
12parcel arose after the erroneous homestead exemption was
13granted but before the filing of the notice of lien; or (2) any
14mortgagee, judgment creditor, or other lienor whose rights in
15and to the underlying parcel arose before the filing of the
16notice of lien. A title insurance policy for the property that
17is issued by a title company licensed to do business in the
18State showing that the property is free and clear of any liens
19imposed under this Section shall be prima facie evidence that
20the taxpayer is without notice of the erroneous homestead
21exemption. Nothing in this Section shall be deemed to impair
22the rights of subsequent creditors and subsequent purchasers
23under Section 30 of the Conveyances Act.
24 (j) When a lien is filed against the property pursuant to
25this Section, the chief county assessment officer shall mail a
26copy of the lien to the person to whom the most recent tax bill

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1was mailed and to the owner of record, and the outstanding
2liability created by such a lien is due and payable within 30
3days after the mailing of the lien by the chief county
4assessment officer. This liability is deemed delinquent and
5shall bear interest beginning on the day after the due date at
6a rate of 1.5% per month or portion thereof. Payment shall be
7made to the county treasurer. Upon receipt of the full amount
8due, as determined by the chief county assessment officer, the
9county treasurer shall distribute the amount paid as provided
10in subsection (k). Upon presentment by the taxpayer to the
11chief county assessment officer of proof of payment of the
12total liability, the chief county assessment officer shall
13provide in reasonable form a release of the lien. The release
14of the lien provided shall clearly inform the taxpayer that it
15is the responsibility of the taxpayer to record the lien
16release form with the county recorder of deeds and to pay any
17applicable recording fees.
18 (k) The county treasurer shall pay collected erroneous
19exemption principal amounts, pro rata, to the taxing districts,
20or their legal successors, that levied upon the subject
21property in the taxable year or years for which the erroneous
22homestead exemptions were granted, except as set forth in this
23Section. The county treasurer shall deposit collected
24penalties and interest into a special fund established by the
25county treasurer to offset the costs of administration of the
26provisions of this Section by the chief county assessment

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1officer's office, as appropriated by the county board. If the
2costs of administration of this Section exceed the amount of
3interest and penalties collected in the special fund, the chief
4county assessor shall be reimbursed by each taxing district or
5their legal successors for those costs. Such costs shall be
6paid out of the funds collected by the county treasurer on
7behalf of each taxing district pursuant to this Section.
8 (l) The chief county assessment officer in a county with
93,000,000 or more inhabitants shall establish an amnesty period
10for all taxpayers owing any tax due to an erroneous homestead
11exemption granted in a tax year prior to the 2013 tax year. The
12amnesty period shall begin on the effective date of this
13amendatory Act of the 98th General Assembly and shall run
14through December 31, 2013. If, during the amnesty period, the
15taxpayer pays the entire arrearage of taxes due for tax years
16prior to 2013, the county clerk shall abate and not seek to
17collect any interest or penalties that may be applicable and
18shall not seek civil or criminal prosecution for any taxpayer
19for tax years prior to 2013. Failure to pay all such taxes due
20during the amnesty period established under this Section shall
21invalidate the amnesty period for that taxpayer.
22 The chief county assessment officer in a county with
233,000,000 or more inhabitants shall (i) mail notice of the
24amnesty period with the tax bills for the second installment of
25taxes for the 2012 assessment year and (ii) as soon as possible
26after the effective date of this amendatory Act of the 98th

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1General Assembly, publish notice of the amnesty period in a
2newspaper of general circulation in the county. Notices shall
3include information on the amnesty period, its purpose, and the
4method by which to make payment.
5 Taxpayers who are a party to any criminal investigation or
6to any civil or criminal litigation that is pending in any
7circuit court or appellate court, or in the Supreme Court of
8this State, for nonpayment, delinquency, or fraud in relation
9to any property tax imposed by any taxing district located in
10the State on the effective date of this amendatory Act of the
1198th General Assembly may not take advantage of the amnesty
12period.
13 A taxpayer who has claimed 3 or more homestead exemptions
14in error shall not be eligible for the amnesty period
15established under this subsection.
16(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
1798-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
187-27-15; 99-851, eff. 8-19-16.)
19 (35 ILCS 200/15-169)
20 Sec. 15-169. Homestead exemption for veterans with
21disabilities and veterans who are 75 years of age or older.
22 (a) Beginning with taxable year 2007, an annual homestead
23exemption, limited to the amounts set forth in subsections (b),
24and (b-3), and (b-4) is granted for property that is used as a
25qualified residence by a veteran with a disability or,

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1beginning in taxable year 2017, a veteran who is 75 years of
2age or older.
3 (b) For taxable years prior to 2015, the amount of the
4exemption under this Section is as follows:
5 (1) for veterans with a service-connected disability
6 of at least (i) 75% for exemptions granted in taxable years
7 2007 through 2009 and (ii) 70% for exemptions granted in
8 taxable year 2010 and each taxable year thereafter, as
9 certified by the United States Department of Veterans
10 Affairs, the annual exemption is $5,000; and
11 (2) for veterans with a service-connected disability
12 of at least 50%, but less than (i) 75% for exemptions
13 granted in taxable years 2007 through 2009 and (ii) 70% for
14 exemptions granted in taxable year 2010 and each taxable
15 year thereafter, as certified by the United States
16 Department of Veterans Affairs, the annual exemption is
17 $2,500.
18 (b-3) For taxable years 2015 and 2016 thereafter:
19 (1) if the veteran has a service connected disability
20 of 30% or more but less than 50%, as certified by the
21 United States Department of Veterans Affairs, then the
22 annual exemption is $2,500;
23 (2) if the veteran has a service connected disability
24 of 50% or more but less than 70%, as certified by the
25 United States Department of Veterans Affairs, then the
26 annual exemption is $5,000; and

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1 (3) if the veteran has a service connected disability
2 of 70% or more, as certified by the United States
3 Department of Veterans Affairs, then the property is exempt
4 from taxation under this Code.
5 (b-4) For taxable years 2017 and thereafter:
6 (1) if the veteran has a service connected disability
7 of 20% or more but less than 50%, as certified by the
8 United States Department of Veterans Affairs or the United
9 States Department of Defense, then the annual exemption is
10 $2,500;
11 (2) if the veteran has a service connected disability
12 of 50% or more but less than 70%, as certified by the
13 United States Department of Veterans Affairs or the United
14 States Department of Defense, then the annual exemption is
15 $5,000;
16 (3) if the veteran has a service connected disability
17 of 70% or more, as certified by the United States
18 Department of Veterans Affairs or the United States
19 Department of Defense, then the property is exempt from
20 taxation under this Code; and
21 (4) if the veteran does not qualify under paragraphs
22 (1) through (3) of this subsection (b-4), but the veteran
23 is 75 years of age or older during the taxable year, then
24 $2,500.
25 (b-5) If a homestead exemption is granted under this
26Section and the person awarded the exemption subsequently

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1becomes a resident of a facility licensed under the Nursing
2Home Care Act or a facility operated by the United States
3Department of Veterans Affairs, then the exemption shall
4continue (i) so long as the residence continues to be occupied
5by the qualifying person's spouse or (ii) if the residence
6remains unoccupied but is still owned by the person who
7qualified for the homestead exemption.
8 (c) The tax exemption under this Section carries over to
9the benefit of the veteran's surviving spouse as long as the
10spouse holds the legal or beneficial title to the homestead,
11permanently resides thereon, and does not remarry. If the
12surviving spouse sells the property, an exemption not to exceed
13the amount granted from the most recent ad valorem tax roll may
14be transferred to his or her new residence as long as it is
15used as his or her primary residence and he or she does not
16remarry.
17 As used in this subsection (c):
18 (1) for taxable years prior to 2015, "surviving spouse"
19 means the surviving spouse of a veteran who obtained an
20 exemption under this Section prior to his or her death;
21 (2) for taxable year 2015 and 2016, "surviving spouse"
22 means (i) the surviving spouse of a veteran who obtained an
23 exemption under this Section prior to his or her death and
24 (ii) the surviving spouse of a veteran who was killed in
25 the line of duty; and
26 (3) for taxable year 2017 and thereafter, "surviving

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1 spouse" means (i) the surviving spouse of a veteran who
2 qualified for the exemption under this Section prior to his
3 or her death, (ii) the surviving spouse of a veteran who
4 was killed in the line of duty, and (iii) the surviving
5 spouse of a veteran who did not obtain an exemption under
6 this Section before death, but who applied for a
7 service-connected disability certification from the United
8 States Department of Veterans Affairs or the United States
9 Department of Defense no earlier than January 1, 2007 and
10 would have qualified for the exemption under this Section
11 in the current taxable year if he or she had survived.
12 (c-1) Beginning with taxable year 2015, nothing in this
13Section shall require the veteran to have qualified for or
14obtained the exemption before death if the veteran was killed
15in the line of duty.
16 (d) The exemption under this Section applies for taxable
17year 2007 and thereafter. A taxpayer who claims an exemption
18under Section 15-165 or 15-168 may not claim an exemption under
19this Section.
20 (e) Each taxpayer who has been granted an exemption under
21this Section must reapply on an annual basis. Application must
22be made during the application period in effect for the county
23of his or her residence. The assessor or chief county
24assessment officer may determine the eligibility of
25residential property to receive the homestead exemption
26provided by this Section by application, visual inspection,

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1questionnaire, or other reasonable methods. The determination
2must be made in accordance with guidelines established by the
3Department.
4 (f) For the purposes of this Section:
5 "Qualified residence" means real property, but less any
6portion of that property that is used for commercial purposes,
7with an equalized assessed value of less than $250,000 that is
8the primary residence of a veteran with a disability or,
9beginning in taxable year 2017, a veteran who is 75 years of
10age or older. Property rented for more than 6 months is
11presumed to be used for commercial purposes.
12 "Veteran" means an Illinois resident who has served as a
13member of the United States Armed Forces on active duty or
14State active duty, a member of the Illinois National Guard, or
15a member of the United States Reserve Forces and who has
16received an honorable discharge.
17(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
1899-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
19 (35 ILCS 200/15-170)
20 Sec. 15-170. Senior Citizens Homestead Exemption. An
21annual homestead exemption limited, except as described here
22with relation to cooperatives or life care facilities, to a
23maximum reduction set forth below from the property's value, as
24equalized or assessed by the Department, is granted for
25property that is occupied as a residence by a person 65 years

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1of age or older who is liable for paying real estate taxes on
2the property and is an owner of record of the property or has a
3legal or equitable interest therein as evidenced by a written
4instrument, except for a leasehold interest, other than a
5leasehold interest of land on which a single family residence
6is located, which is occupied as a residence by a person 65
7years or older who has an ownership interest therein, legal,
8equitable or as a lessee, and on which he or she is liable for
9the payment of property taxes. Before taxable year 2004, the
10maximum reduction shall be $2,500 in counties with 3,000,000 or
11more inhabitants and $2,000 in all other counties. For taxable
12years 2004 through 2005, the maximum reduction shall be $3,000
13in all counties. For taxable years 2006 and 2007, the maximum
14reduction shall be $3,500. For taxable years 2008 through 2011,
15the maximum reduction is $4,000 in all counties. For taxable
16year 2012, the maximum reduction is $5,000 in counties with
173,000,000 or more inhabitants and $4,000 in all other counties.
18For taxable years 2013 through 2016 and thereafter, the maximum
19reduction is $5,000 in all counties. For taxable years 2017 and
20thereafter, the maximum reduction is $6,000 in all counties.
21 For land improved with an apartment building owned and
22operated as a cooperative, the maximum reduction from the value
23of the property, as equalized by the Department, shall be
24multiplied by the number of apartments or units occupied by a
25person 65 years of age or older who is liable, by contract with
26the owner or owners of record, for paying property taxes on the

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1property and is an owner of record of a legal or equitable
2interest in the cooperative apartment building, other than a
3leasehold interest. For land improved with a life care
4facility, the maximum reduction from the value of the property,
5as equalized by the Department, shall be multiplied by the
6number of apartments or units occupied by persons 65 years of
7age or older, irrespective of any legal, equitable, or
8leasehold interest in the facility, who are liable, under a
9contract with the owner or owners of record of the facility,
10for paying property taxes on the property. In a cooperative or
11a life care facility where a homestead exemption has been
12granted, the cooperative association or the management firm of
13the cooperative or facility shall credit the savings resulting
14from that exemption only to the apportioned tax liability of
15the owner or resident who qualified for the exemption. Any
16person who willfully refuses to so credit the savings shall be
17guilty of a Class B misdemeanor. Under this Section and
18Sections 15-175, 15-176, and 15-177, "life care facility" means
19a facility, as defined in Section 2 of the Life Care Facilities
20Act, with which the applicant for the homestead exemption has a
21life care contract as defined in that Act.
22 When a homestead exemption has been granted under this
23Section and the person qualifying subsequently becomes a
24resident of a facility licensed under the Assisted Living and
25Shared Housing Act, the Nursing Home Care Act, the Specialized
26Mental Health Rehabilitation Act of 2013, the ID/DD Community

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1Care Act, or the MC/DD Act, the exemption shall continue so
2long as the residence continues to be occupied by the
3qualifying person's spouse if the spouse is 65 years of age or
4older, or if the residence remains unoccupied but is still
5owned by the person qualified for the homestead exemption.
6 A person who will be 65 years of age during the current
7assessment year shall be eligible to apply for the homestead
8exemption during that assessment year. Application shall be
9made during the application period in effect for the county of
10his residence.
11 Beginning with assessment year 2003, for taxes payable in
122004, property that is first occupied as a residence after
13January 1 of any assessment year by a person who is eligible
14for the senior citizens homestead exemption under this Section
15must be granted a pro-rata exemption for the assessment year.
16The amount of the pro-rata exemption is the exemption allowed
17in the county under this Section divided by 365 and multiplied
18by the number of days during the assessment year the property
19is occupied as a residence by a person eligible for the
20exemption under this Section. The chief county assessment
21officer must adopt reasonable procedures to establish
22eligibility for this pro-rata exemption.
23 The assessor or chief county assessment officer may
24determine the eligibility of a life care facility to receive
25the benefits provided by this Section, by affidavit,
26application, visual inspection, questionnaire or other

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1reasonable methods in order to insure that the tax savings
2resulting from the exemption are credited by the management
3firm to the apportioned tax liability of each qualifying
4resident. The assessor may request reasonable proof that the
5management firm has so credited the exemption.
6 The chief county assessment officer of each county with
7less than 3,000,000 inhabitants shall provide to each person
8allowed a homestead exemption under this Section a form to
9designate any other person to receive a duplicate of any notice
10of delinquency in the payment of taxes assessed and levied
11under this Code on the property of the person receiving the
12exemption. The duplicate notice shall be in addition to the
13notice required to be provided to the person receiving the
14exemption, and shall be given in the manner required by this
15Code. The person filing the request for the duplicate notice
16shall pay a fee of $5 to cover administrative costs to the
17supervisor of assessments, who shall then file the executed
18designation with the county collector. Notwithstanding any
19other provision of this Code to the contrary, the filing of
20such an executed designation requires the county collector to
21provide duplicate notices as indicated by the designation. A
22designation may be rescinded by the person who executed such
23designation at any time, in the manner and form required by the
24chief county assessment officer.
25 The assessor or chief county assessment officer may
26determine the eligibility of residential property to receive

HB0156 Engrossed- 22 -LRB100 03826 HLH 13831 b
1the homestead exemption provided by this Section by
2application, visual inspection, questionnaire or other
3reasonable methods. The determination shall be made in
4accordance with guidelines established by the Department.
5 In counties with 3,000,000 or more inhabitants, beginning
6in taxable year 2010, each taxpayer who has been granted an
7exemption under this Section must reapply on an annual basis.
8The chief county assessment officer shall mail the application
9to the taxpayer. In counties with less than 3,000,000
10inhabitants, the county board may by resolution provide that if
11a person has been granted a homestead exemption under this
12Section, the person qualifying need not reapply for the
13exemption.
14 In counties with less than 3,000,000 inhabitants, if the
15assessor or chief county assessment officer requires annual
16application for verification of eligibility for an exemption
17once granted under this Section, the application shall be
18mailed to the taxpayer.
19 The assessor or chief county assessment officer shall
20notify each person who qualifies for an exemption under this
21Section that the person may also qualify for deferral of real
22estate taxes under the Senior Citizens Real Estate Tax Deferral
23Act. The notice shall set forth the qualifications needed for
24deferral of real estate taxes, the address and telephone number
25of county collector, and a statement that applications for
26deferral of real estate taxes may be obtained from the county

HB0156 Engrossed- 23 -LRB100 03826 HLH 13831 b
1collector.
2 Notwithstanding Sections 6 and 8 of the State Mandates Act,
3no reimbursement by the State is required for the
4implementation of any mandate created by this Section.
5(Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,
6eff. 7-16-14; 99-180, eff. 7-29-15.)
7 (35 ILCS 200/15-172.5 new)
8 Sec. 15-172.5. Assessment Freeze Homestead Exemption for
9persons receiving Supplemental Security Income.
10 (a) This Section may be cited as the Assessment Freeze
11Homestead Exemption for persons receiving Supplemental
12Security Income.
13 (b) As used in this Section:
14 "Applicant" means an individual who has filed an
15application under this Section.
16 "Base amount" means the base year equalized assessed value
17of the residence plus the first year's equalized assessed value
18of any added improvements which increased the assessed value of
19the residence after the base year.
20 "Base year" means the taxable year prior to the taxable
21year for which the applicant first qualifies and applies for
22the exemption, provided that, in the prior taxable year, the
23property was improved with a permanent structure that was
24occupied as a residence by the applicant who was liable for
25paying real property taxes on the property and who was either

HB0156 Engrossed- 24 -LRB100 03826 HLH 13831 b
1(i) an owner of record of the property or had legal or
2equitable interest in the property as evidenced by a written
3instrument or (ii) had a legal or equitable interest as a
4lessee in the parcel of property that was single family
5residence.
6 "Chief County Assessment Officer" means the County
7Assessor or Supervisor of Assessments of the county in which
8the property is located.
9 "Equalized assessed value" means the assessed value of the
10property as equalized by the Department of Revenue.
11 "Household" means the applicant, the spouse of the
12applicant, and all persons using the residence of the applicant
13as their principal place of residence.
14 "Household income" means the combined income of the members
15of a household for the calendar year preceding the taxable
16year.
17 "Income" has the same meaning as provided in Section 3.07
18of the Senior Citizens and Persons with Disabilities Property
19Tax Relief Act, but does not include veteran's benefits.
20 "Internal Revenue Code of 1986" means the United States
21Internal Revenue Code of 1986 or any successor law or laws
22relating to federal income taxes in effect for the year
23preceding the taxable year.
24 "Life care facility that qualifies as a cooperative" means
25a facility as defined in Section 2 of the Life Care Facilities
26Act.

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1 "Maximum income limitation" means $55,000.
2 "Residence" means the principal dwelling place and
3appurtenant structures used for residential purposes in this
4State occupied on January 1 of the taxable year by a household
5and so much of the surrounding land, constituting the parcel
6upon which the dwelling place is situated, as is used for
7residential purposes. If the chief county assessment officer
8has established a specific legal description for a portion of
9property constituting the residence, then that portion of
10property shall be deemed the residence for the purposes of this
11Section.
12 "Taxable year" means the calendar year during which ad
13valorem property taxes payable in the next succeeding year are
14levied.
15 (c) Beginning in taxable year 2017, an assessment freeze
16homestead exemption is granted for real property that is
17improved with a permanent structure that is occupied as a
18residence by an applicant who (i) receives federal Supplemental
19Security Income during the taxable year, (ii) has a household
20income that does not exceed the maximum income limitation,
21(iii) is liable for paying real property taxes on the property,
22and (iv) is an owner of record of the property or has a legal or
23equitable interest in the property as evidenced by a written
24instrument. This homestead exemption shall also apply to a
25leasehold interest in a parcel of property improved with a
26permanent structure that is a single family residence that is

HB0156 Engrossed- 26 -LRB100 03826 HLH 13831 b
1occupied as a residence by a person who (i) receives federal
2Supplemental Security Income during the taxable year, (ii) has
3a household income that does not exceed the maximum income
4limitation, (iii) has a legal or equitable ownership interest
5in the property as lessee, and (iv) is liable for the payment
6of real property taxes on that property.
7 The amount of the exemption is the equalized assessed value
8of the residence in the taxable year for which application is
9made minus the base amount.
10 When the applicant is a surviving spouse of an applicant
11for a prior year for the same residence for which an exemption
12under this Section has been granted, the base year and base
13amount for that residence are the same as for the applicant for
14the prior year.
15 Each year at the time the assessment books are certified to
16the County Clerk, the Board of Review or Board of Appeals shall
17give to the County Clerk a list of the assessed values of
18improvements on each parcel qualifying for this exemption that
19were added after the base year for this parcel and that
20increased the assessed value of the property.
21 In the case of land improved with an apartment building
22owned and operated as a cooperative or a building that is a
23life care facility that qualifies as a cooperative, the maximum
24reduction from the equalized assessed value of the property is
25limited to the sum of the reductions calculated for each unit
26occupied as a residence by a person or persons (i) who receive

HB0156 Engrossed- 27 -LRB100 03826 HLH 13831 b
1federal Supplemental Security Income during the taxable year,
2(ii) with a household income that does not exceed the maximum
3income limitation, (iii) who are liable, by contract with the
4owner or owners of record, for paying real property taxes on
5the property, and (iv) who is an owner of record of a legal or
6equitable interest in the cooperative apartment building,
7other than a leasehold interest. In the instance of a
8cooperative where a homestead exemption has been granted under
9this Section, the cooperative association or its management
10firm shall credit the savings resulting from that exemption
11only to the apportioned tax liability of the owner who
12qualified for the exemption. Any person who willfully refuses
13to credit that savings to an owner who qualifies for the
14exemption is guilty of a Class B misdemeanor.
15 When a homestead exemption has been granted under this
16Section and an applicant then becomes a resident of a facility
17licensed under the Assisted Living and Shared Housing Act, the
18Nursing Home Care Act, the Specialized Mental Health
19Rehabilitation Act of 2013, the ID/DD Community Care Act, or
20the MC/DD Act, the exemption shall be granted in subsequent
21years so long as the residence (i) continues to be occupied by
22the qualified applicant's spouse or (ii) if remaining
23unoccupied, is still owned by the qualified applicant for the
24homestead exemption.
25 When an individual dies who would have qualified for an
26exemption under this Section, and the surviving spouse does not

HB0156 Engrossed- 28 -LRB100 03826 HLH 13831 b
1independently qualify for this exemption because he or she does
2not receive Supplemental Security Income, the exemption under
3this Section shall be granted to the surviving spouse for the
4taxable year preceding and the taxable year of the death,
5provided that the surviving spouse meets all other
6qualifications for the granting of this exemption for those
7years.
8 When married persons maintain separate residences, the
9exemption provided for in this Section may be claimed by only
10one of such persons and for only one residence.
11 In counties having 3,000,000 or more inhabitants, to
12receive the exemption, a person may submit an application to
13the chief county assessment officer of the county in which the
14property is located during such period as may be specified by
15the chief county assessment officer. The chief county
16assessment officer in counties of 3,000,000 or more inhabitants
17shall annually give notice of the application period by mail or
18by publication. In counties having less than 3,000,000
19inhabitants, to receive the exemption, a person shall submit an
20application by July 1 of each taxable year to the chief county
21assessment officer of the county in which the property is
22located. A county having less than 3,000,000 inhabitants may,
23by ordinance, establish a date for submission of applications
24that is different than July 1. The applicant shall submit with
25the application an affidavit verifying the applicant's
26qualifications for the exemption under this Section. The

HB0156 Engrossed- 29 -LRB100 03826 HLH 13831 b
1Department shall establish, by rule, a method for verifying the
2accuracy of such affidavits, and the chief county assessment
3officer may conduct audits of any taxpayer claiming an
4exemption under this Section to verify that the taxpayer is
5eligible to receive the exemption. Each application shall
6contain or be verified by a written declaration that it is made
7under the penalties of perjury. A taxpayer's signing a
8fraudulent application under this Act is perjury, as defined in
9Section 32-2 of the Criminal Code of 2012. The applications
10shall be clearly marked as applications for the Assessment
11Freeze Homestead Exemption for Persons Receiving Supplemental
12Security Income and must contain a notice that any taxpayer who
13receives the exemption is subject to an audit by the chief
14county assessment officer.
15 If an applicant fails to file the application required by
16this Section in a timely manner and this failure to file is due
17to a mental or physical condition sufficiently severe so as to
18render the applicant incapable of filing the application in a
19timely manner, the chief county assessment officer may extend
20the filing deadline for a period of 30 days after the applicant
21regains the capability to file the application, but in no case
22may the filing deadline be extended beyond 3 months of the
23original filing deadline. In order to receive the extension
24provided in this paragraph, the applicant shall provide the
25chief county assessment officer with a signed statement from
26the applicant's physician, advanced practice nurse, or

HB0156 Engrossed- 30 -LRB100 03826 HLH 13831 b
1physician assistant stating the nature and extent of the
2condition, that, in the physician's, advanced practice
3nurse's, or physician assistant's opinion, the condition was so
4severe that it rendered the applicant incapable of filing the
5application in a timely manner, and the date on which the
6applicant regained the capability to file the application.
7 The chief county assessment officer may determine the
8eligibility of a life care facility that qualifies as a
9cooperative to receive the benefits provided by this Section by
10use of an affidavit, application, visual inspection,
11questionnaire, or other reasonable method in order to insure
12that the tax savings resulting from the exemption are credited
13by the management firm to the apportioned tax liability of each
14qualifying resident. The chief county assessment officer may
15request reasonable proof that the management firm has so
16credited that exemption.
17 Except as provided in this Section, all information
18received by the chief county assessment officer or the
19Department from applications filed under this Section, or from
20any investigation conducted under the provisions of this
21Section, shall be confidential, except for official purposes or
22pursuant to official procedures for collection of any State or
23local tax or enforcement of any civil or criminal penalty or
24sanction imposed by this Act or by any statute or ordinance
25imposing a State or local tax. Any person who divulges any such
26information in any manner, except in accordance with a proper

HB0156 Engrossed- 31 -LRB100 03826 HLH 13831 b
1judicial order, is guilty of a Class A misdemeanor.
2 Nothing contained in this Section shall prevent the
3Director or chief county assessment officer from publishing or
4making available reasonable statistics concerning the
5operation of the exemption contained in this Section in which
6the contents of claims are grouped into aggregates in such a
7way that information contained in any individual claim shall
8not be disclosed.
9 (d) Each Chief County Assessment Officer shall annually
10publish a notice of availability of the exemption provided
11under this Section. The notice shall be published at least 60
12days but no more than 75 days prior to the date on which the
13application must be submitted to the Chief County Assessment
14Officer of the county in which the property is located. The
15notice shall appear in a newspaper of general circulation in
16the county.
17 Notwithstanding any other provision of law, no person who
18receives an exemption under this Section may receive an
19exemption under Section 15-172 (senior citizens assessment
20freeze homestead exemption) or Section 15-177 (long-time
21occupant homestead exemption) for the same tax year.
22 Notwithstanding Sections 6 and 8 of the State Mandates Act,
23no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25 (35 ILCS 200/15-175)

HB0156 Engrossed- 32 -LRB100 03826 HLH 13831 b
1 Sec. 15-175. General homestead exemption.
2 (a) Except as provided in Sections 15-176 and 15-177,
3homestead property is entitled to an annual homestead exemption
4limited, except as described here with relation to
5cooperatives, to a reduction in the equalized assessed value of
6homestead property equal to the increase in equalized assessed
7value for the current assessment year above the equalized
8assessed value of the property for 1977, up to the maximum
9reduction set forth below. If however, the 1977 equalized
10assessed value upon which taxes were paid is subsequently
11determined by local assessing officials, the Property Tax
12Appeal Board, or a court to have been excessive, the equalized
13assessed value which should have been placed on the property
14for 1977 shall be used to determine the amount of the
15exemption.
16 (b) Except as provided in Section 15-176, the maximum
17reduction before taxable year 2004 shall be $4,500 in counties
18with 3,000,000 or more inhabitants and $3,500 in all other
19counties. Except as provided in Sections 15-176 and 15-177, for
20taxable years 2004 through 2007, the maximum reduction shall be
21$5,000, for taxable year 2008, the maximum reduction is $5,500,
22and, for taxable years 2009 through 2011, the maximum reduction
23is $6,000 in all counties. For taxable years 2012 through 2016
24and thereafter, the maximum reduction is $7,000 in counties
25with 3,000,000 or more inhabitants and $6,000 in all other
26counties. For taxable years 2017 and thereafter, the maximum

HB0156 Engrossed- 33 -LRB100 03826 HLH 13831 b
1reduction is $8,000 in all counties. If a county has elected to
2subject itself to the provisions of Section 15-176 as provided
3in subsection (k) of that Section, then, for the first taxable
4year only after the provisions of Section 15-176 no longer
5apply, for owners who, for the taxable year, have not been
6granted a senior citizens assessment freeze homestead
7exemption under Section 15-172 or a long-time occupant
8homestead exemption under Section 15-177, there shall be an
9additional exemption of $5,000 for owners with a household
10income of $30,000 or less.
11 (c) In counties with fewer than 3,000,000 inhabitants, if,
12based on the most recent assessment, the equalized assessed
13value of the homestead property for the current assessment year
14is greater than the equalized assessed value of the property
15for 1977, the owner of the property shall automatically receive
16the exemption granted under this Section in an amount equal to
17the increase over the 1977 assessment up to the maximum
18reduction set forth in this Section.
19 (d) If in any assessment year beginning with the 2000
20assessment year, homestead property has a pro-rata valuation
21under Section 9-180 resulting in an increase in the assessed
22valuation, a reduction in equalized assessed valuation equal to
23the increase in equalized assessed value of the property for
24the year of the pro-rata valuation above the equalized assessed
25value of the property for 1977 shall be applied to the property
26on a proportionate basis for the period the property qualified

HB0156 Engrossed- 34 -LRB100 03826 HLH 13831 b
1as homestead property during the assessment year. The maximum
2proportionate homestead exemption shall not exceed the maximum
3homestead exemption allowed in the county under this Section
4divided by 365 and multiplied by the number of days the
5property qualified as homestead property.
6 (d-1) In counties with 3,000,000 or more inhabitants, where
7the chief county assessment officer provides a notice of
8discovery, if a property is not occupied by its owner as a
9principal residence as of January 1 of the current tax year,
10then the property owner shall notify the chief county
11assessment officer of that fact on a form prescribed by the
12chief county assessment officer. That notice must be received
13by the chief county assessment officer on or before March 1 of
14the collection year. If mailed, the form shall be sent by
15certified mail, return receipt requested. If the form is
16provided in person, the chief county assessment officer shall
17provide a date stamped copy of the notice. Failure to provide
18timely notice pursuant to this subsection (d-1) shall result in
19the exemption being treated as an erroneous exemption. Upon
20timely receipt of the notice for the current tax year, no
21exemption shall be applied to the property for the current tax
22year. If the exemption is not removed upon timely receipt of
23the notice by the chief assessment officer, then the error is
24considered granted as a result of a clerical error or omission
25on the part of the chief county assessment officer as described
26in subsection (h) of Section 9-275, and the property owner

HB0156 Engrossed- 35 -LRB100 03826 HLH 13831 b
1shall not be liable for the payment of interest and penalties
2due to the erroneous exemption for the current tax year for
3which the notice was filed after the date that notice was
4timely received pursuant to this subsection. Notice provided
5under this subsection shall not constitute a defense or amnesty
6for prior year erroneous exemptions.
7 For the purposes of this subsection (d-1):
8 "Collection year" means the year in which the first and
9second installment of the current tax year is billed.
10 "Current tax year" means the year prior to the collection
11year.
12 (e) The chief county assessment officer may, when
13considering whether to grant a leasehold exemption under this
14Section, require the following conditions to be met:
15 (1) that a notarized application for the exemption,
16 signed by both the owner and the lessee of the property,
17 must be submitted each year during the application period
18 in effect for the county in which the property is located;
19 (2) that a copy of the lease must be filed with the
20 chief county assessment officer by the owner of the
21 property at the time the notarized application is
22 submitted;
23 (3) that the lease must expressly state that the lessee
24 is liable for the payment of property taxes; and
25 (4) that the lease must include the following language
26 in substantially the following form:

HB0156 Engrossed- 36 -LRB100 03826 HLH 13831 b
1 "Lessee shall be liable for the payment of real
2 estate taxes with respect to the residence in
3 accordance with the terms and conditions of Section
4 15-175 of the Property Tax Code (35 ILCS 200/15-175).
5 The permanent real estate index number for the premises
6 is (insert number), and, according to the most recent
7 property tax bill, the current amount of real estate
8 taxes associated with the premises is (insert amount)
9 per year. The parties agree that the monthly rent set
10 forth above shall be increased or decreased pro rata
11 (effective January 1 of each calendar year) to reflect
12 any increase or decrease in real estate taxes. Lessee
13 shall be deemed to be satisfying Lessee's liability for
14 the above mentioned real estate taxes with the monthly
15 rent payments as set forth above (or increased or
16 decreased as set forth herein).".
17 In addition, if there is a change in lessee, or if the
18lessee vacates the property, then the chief county assessment
19officer may require the owner of the property to notify the
20chief county assessment officer of that change.
21 This subsection (e) does not apply to leasehold interests
22in property owned by a municipality.
23 (f) "Homestead property" under this Section includes
24residential property that is occupied by its owner or owners as
25his or their principal dwelling place, or that is a leasehold
26interest on which a single family residence is situated, which

HB0156 Engrossed- 37 -LRB100 03826 HLH 13831 b
1is occupied as a residence by a person who has an ownership
2interest therein, legal or equitable or as a lessee, and on
3which the person is liable for the payment of property taxes.
4For land improved with an apartment building owned and operated
5as a cooperative or a building which is a life care facility as
6defined in Section 15-170 and considered to be a cooperative
7under Section 15-170, the maximum reduction from the equalized
8assessed value shall be limited to the increase in the value
9above the equalized assessed value of the property for 1977, up
10to the maximum reduction set forth above, multiplied by the
11number of apartments or units occupied by a person or persons
12who is liable, by contract with the owner or owners of record,
13for paying property taxes on the property and is an owner of
14record of a legal or equitable interest in the cooperative
15apartment building, other than a leasehold interest. For
16purposes of this Section, the term "life care facility" has the
17meaning stated in Section 15-170.
18 "Household", as used in this Section, means the owner, the
19spouse of the owner, and all persons using the residence of the
20owner as their principal place of residence.
21 "Household income", as used in this Section, means the
22combined income of the members of a household for the calendar
23year preceding the taxable year.
24 "Income", as used in this Section, has the same meaning as
25provided in Section 3.07 of the Senior Citizens and Persons
26with Disabilities Property Tax Relief Act, except that "income"

HB0156 Engrossed- 38 -LRB100 03826 HLH 13831 b
1does not include veteran's benefits.
2 (g) In a cooperative where a homestead exemption has been
3granted, the cooperative association or its management firm
4shall credit the savings resulting from that exemption only to
5the apportioned tax liability of the owner who qualified for
6the exemption. Any person who willfully refuses to so credit
7the savings shall be guilty of a Class 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

HB0156 Engrossed- 39 -LRB100 03826 HLH 13831 b
1under this paragraph. The applications shall be clearly marked
2as applications for the Additional General Homestead
3Exemption.
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
26year.

HB0156 Engrossed- 40 -LRB100 03826 HLH 13831 b
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(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
5eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
699-851, eff. 8-19-16.)
7 (35 ILCS 200/15-178 new)
8 Sec. 15-178. The statewide long-time occupant homestead
9exemption.
10 (a) For taxable years 2017 and thereafter, homestead
11property that is occupied as a principal residence by a
12long-time occupant is entitled to an annual homestead exemption
13equal to a reduction in the property's equalized assessed value
14calculated as provided in subsection (b) of this Section.
15 (b) The amount of the reduction shall be as follows:
16 (1) if the taxpayer has occupied the property as his or
17 her principal residence for not fewer than 8 but not more
18 than 11 years as of January 1 of the taxable year, then the
19 amount of the reduction shall be 25% of the amount of the
20 general homestead exemption under Section 15-175 for the
21 taxable year;
22 (2) if the taxpayer has occupied the property as his or
23 her principal residence for not fewer than 11 but not more
24 than 16 years as of January 1 of the taxable year, then the
25 amount of the reduction shall be 35% of the amount of the

HB0156 Engrossed- 41 -LRB100 03826 HLH 13831 b
1 general homestead exemption under Section 15-175 for the
2 taxable year;
3 (3) if the taxpayer has occupied the property as his or
4 her principal residence for not fewer than 16 but not more
5 than 21 years as of January 1 of the taxable year, then the
6 amount of the reduction shall be 45% of the amount of the
7 general homestead exemption under Section 15-175 for the
8 taxable year; and
9 (4) if the taxpayer has occupied the property as his or
10 her principal residence for 21 years or more as of January
11 1 of the taxable year, then the amount of the reduction
12 shall be 60% of the amount of the general homestead
13 exemption under Section 15-175 for the taxable year.
14 (c) In the case of an apartment building owned and operated
15as a cooperative or a life care facility that contains
16residential units that qualify as homestead property of a
17long-time occupant under this Section, the maximum cumulative
18exemption amount attributed to the entire building or facility
19shall not exceed the sum of the exemptions calculated for each
20unit that is homestead property of a long-time occupant. The
21cooperative association, management firm, or other person or
22entity that manages or controls the cooperative apartment
23building or life care facility shall credit the exemption
24attributable to each residential unit only to the apportioned
25tax liability of the long-time occupant of that unit. Any
26person who willfully refuses to so credit the exemption is

HB0156 Engrossed- 42 -LRB100 03826 HLH 13831 b
1guilty of a Class B misdemeanor.
2 (d) To receive the exemption, a person must submit an
3application to the county assessor during the period specified
4by the county assessor.
5 Notwithstanding any other provision of law, no person who
6receives an exemption under this Section may receive an
7exemption under Section 15-177 (long-time occupant homestead
8exemption) for the same tax year.
9 (e) As used in this Section:
10 "Equalized assessed value" means the property's assessed
11value as equalized by the Department.
12 "Homestead" or "homestead property" means residential
13property that, as of January 1 of the tax year, is owned and
14occupied by a long-time occupant as his or her principal
15dwelling place, or that is a leasehold interest on which a
16single family residence is situated, that is occupied as a
17residence by a long-time occupant who has a legal or equitable
18interest therein evidenced by a written instrument, as an owner
19or as a lessee, and on which the long-time occupant is liable
20for the payment of property taxes. Residential units in an
21apartment building owned and operated as a cooperative, or as a
22life care facility, which are occupied by persons who hold a
23legal or equitable interest in the cooperative apartment
24building or life care facility as owners or lessees, and who
25are liable by contract for the payment of property taxes, are
26included within this definition of homestead property. A

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1homestead includes the dwelling place, appurtenant structures,
2and so much of the surrounding land constituting the parcel on
3which the dwelling place is situated as is used for residential
4purposes. If the assessor has established a specific legal
5description for a portion of property constituting the
6homestead, then the homestead is limited to the property within
7that description.
8 "Long-time occupant" means an individual who (i) for at
9least 8 continuous years as of January 1 of the taxable year,
10has occupied the same homestead property as a principal
11residence and domicile and (ii) has a household income of
12$100,000 or less.
13 "Household income" has the meaning set forth under Section
1415-172 of this Code.
15 (f) Notwithstanding Sections 6 and 8 of the State Mandates
16Act, no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18 Section 10. The Senior Citizens Real Estate Tax Deferral
19Act is amended by changing Section 3 as follows:
20 (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
21 Sec. 3. A taxpayer may, on or before March 1 of each year,
22apply to the county collector of the county where his
23qualifying property is located, or to the official designated
24by a unit of local government to collect special assessments on

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1the qualifying property, as the case may be, for a deferral of
2all or a part of real estate taxes payable during that year for
3the preceding year in the case of real estate taxes other than
4special assessments, or for a deferral of any installments
5payable during that year in the case of special assessments, on
6all or part of his qualifying property. The application shall
7be on a form prescribed by the Department and furnished by the
8collector, (a) showing that the applicant will be 65 years of
9age or older by June 1 of the year for which a tax deferral is
10claimed, (b) describing the property and verifying that the
11property is qualifying property as defined in Section 2, (c)
12certifying that the taxpayer has owned and occupied as his
13residence such property or other qualifying property in the
14State for at least the last 3 years except for any periods
15during which the taxpayer may have temporarily resided in a
16nursing or sheltered care home, and (d) specifying whether the
17deferral is for all or a part of the taxes, and, if for a part,
18the amount of deferral applied for. As to qualifying property
19not having a separate assessed valuation, the taxpayer shall
20also file with the county collector a written appraisal of the
21property prepared by a qualified real estate appraiser together
22with a certificate signed by the appraiser stating that he has
23personally examined the property and setting forth the value of
24the land and the value of the buildings thereon occupied by the
25taxpayer as his residence.
26 The collector shall grant the tax deferral provided such

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1deferral does not exceed funds available in the Senior Citizens
2Real Estate Deferred Tax Revolving Fund and provided that the
3owner or owners of such real property have entered into a tax
4deferral and recovery agreement with the collector on behalf of
5the county or other unit of local government, which agreement
6expressly states:
7 (1) That the total amount of taxes deferred under this Act,
8plus interest, for the year for which a tax deferral is claimed
9as well as for those previous years for which taxes are not
10delinquent and for which such deferral has been claimed may not
11exceed 80% of the taxpayer's equity interest in the property
12for which taxes are to be deferred and that, if the total
13deferred taxes plus interest equals 80% of the taxpayer's
14equity interest in the property, the taxpayer shall thereafter
15pay the annual interest due on such deferred taxes plus
16interest so that total deferred taxes plus interest will not
17exceed such 80% of the taxpayer's equity interest in the
18property. For Effective as of the January 1, 2011 assessment
19year or tax year 2012 through assessment year 2016 and
20thereafter, the total amount of any such deferral shall not
21exceed $5,000 per taxpayer in each tax year. For the 2017
22assessment year and thereafter, the total amount of any such
23deferral shall not exceed $6,000 per taxpayer in each tax year.
24 (2) That any real estate taxes deferred under this Act and
25any interest accrued thereon at the rate of 6% per year are a
26lien on the real estate and improvements thereon until paid. No

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1sale or transfer of such real property may be legally closed
2and recorded until the taxes which would otherwise have been
3due on the property, plus accrued interest, have been paid
4unless the collector certifies in writing that an arrangement
5for prompt payment of the amount due has been made with his
6office. The same shall apply if the property is to be made the
7subject of a contract of sale.
8 (3) That upon the death of the taxpayer claiming the
9deferral the heirs-at-law, assignees or legatees shall have
10first priority to the real property upon which taxes have been
11deferred by paying in full the total taxes which would
12otherwise have been due, plus interest. However, if such
13heir-at-law, assignee, or legatee is a surviving spouse, the
14tax deferred status of the property shall be continued during
15the life of that surviving spouse if the spouse is 55 years of
16age or older within 6 months of the date of death of the
17taxpayer and enters into a tax deferral and recovery agreement
18before the time when deferred taxes become due under this
19Section. Any additional taxes deferred, plus interest, on the
20real property under a tax deferral and recovery agreement
21signed by a surviving spouse shall be added to the taxes and
22interest which would otherwise have been due, and the payment
23of which has been postponed during the life of such surviving
24spouse, in determining the 80% equity requirement provided by
25this Section.
26 (4) That if the taxes due, plus interest, are not paid by

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1the heir-at-law, assignee or legatee or if payment is not
2postponed during the life of a surviving spouse, the deferred
3taxes and interest shall be recovered from the estate of the
4taxpayer within one year of the date of his death. In addition,
5deferred real estate taxes and any interest accrued thereon are
6due within 90 days after any tax deferred property ceases to be
7qualifying property as defined in Section 2.
8 If payment is not made when required by this Section,
9foreclosure proceedings may be instituted under the Property
10Tax Code.
11 (5) That any joint owner has given written prior approval
12for such agreement, which written approval shall be made a part
13of such agreement.
14 (6) That a guardian for a person under legal disability
15appointed for a taxpayer who otherwise qualifies under this Act
16may act for the taxpayer in complying with this Act.
17 (7) That a taxpayer or his agent has provided to the
18satisfaction of the collector, sufficient evidence that the
19qualifying property on which the taxes are to be deferred is
20insured against fire or casualty loss for at least the total
21amount of taxes which have been deferred.
22 If the taxes to be deferred are special assessments, the
23unit of local government making the assessments shall forward a
24copy of the agreement entered into pursuant to this Section and
25the bills for such assessments to the county collector of the
26county in which the qualifying property is located.

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1(Source: P.A. 97-481, eff. 8-22-11.)
2 Section 99. Effective date. This Act takes effect upon
3becoming law.
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