Bill Text: IL HB0237 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that homestead property that (i) is located in Lake County and (ii) is owned by a taxpayer who has occupied that property as a principal residence and domicile for at least 10 continuous years as of January 1 of the taxable year is entitled to an additional homestead exemption of $1,000. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0237 Detail]

Download: Illinois-2015-HB0237-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB0237 Introduced , by Rep. Sam Yingling SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-175
Amends the Property Tax Code. Provides that homestead property that (i) is located in Lake County and (ii) is owned by a taxpayer who has occupied that property as a principal residence and domicile for at least 10 continuous years as of January 1 of the taxable year is entitled to an additional homestead exemption of $1,000. 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
Section 15-175 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.
(b-5) Notwithstanding the maximum reduction amounts set
forth in subsections (a) and (b), for taxable years 2015 and
thereafter, if homestead property (i) is located in Lake County
and (ii) is owned by a qualified taxpayer, then that homestead
property is entitled to an additional exemption of $1,000.
(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

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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
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

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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
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.

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This subsection (e) does not apply to leasehold interests
in property owned by a municipality.
(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
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.

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"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.
"Qualified taxpayer" means a taxpayer who has occupied the
same homestead property as a principal residence and domicile
for at least 10 continuous years as of January 1 of the taxable
year.
(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

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shall be made in accordance with guidelines established by the
Department, provided that the taxpayer applying for an
additional general exemption under subsection (b) of 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. If the taxpayer is applying for an
additional general exemption under subsection (b-5) of this
Section, then the taxpayer shall submit to the chief county
assessment officer an application with an affidavit declaring
that the taxpayer is a qualified taxpayer under this Section.
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
as applications for an 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

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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.)
Section 99. Effective date. This Act takes effect upon
becoming law.