Bill Text: IL HB0417 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Introduced) 2017-04-07 - Added Co-Sponsor Rep. Katie Stuart [HB0417 Detail]

Download: Illinois-2017-HB0417-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0417

Introduced , by Rep. Grant Wehrli

SYNOPSIS AS INTRODUCED:
30 ILCS 805/8.28
35 ILCS 200/9-275
35 ILCS 200/15-10
35 ILCS 200/15-172
35 ILCS 200/15-175

Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.
LRB100 04234 HLH 14240 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB0417LRB100 04234 HLH 14240 b
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 State Mandates Act is amended by changing
5Section 8.28 as follows:
6 (30 ILCS 805/8.28)
7 Sec. 8.28. Exempt mandate.
8 (a) Notwithstanding Sections 6 and 8 of this Act, no
9reimbursement by the State is required for the implementation
10of any mandate created by Public Act 93-654, 93-677, 93-679,
1193-689, 93-734, 93-753, 93-910, 93-917, 93-1036, 93-1038,
1293-1079, or 93-1090.
13 (b) Notwithstanding Sections 6 and 8 of this Act, no
14reimbursement by the State is required for the implementation
15of any mandate created by the Senior Citizens and Persons with
16a Disability Assessment Freeze Homestead Exemption under
17Section 15-172 of the Property Tax Code, the General Homestead
18Exemption under Section 15-175 of the Property Tax Code, the
19alternative General Homestead Exemption under Section 15-176
20of the Property Tax Code, the Homestead Improvements Exemption
21under Section 15-180 of the Property Tax Code, and by Public
22Act 93-715.
23(Source: P.A. 95-331, eff. 8-21-07.)

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1 Section 10. The Property Tax Code is amended by changing
2Sections 9-275, 15-10, 15-172, and 15-175 as follows:
3 (35 ILCS 200/9-275)
4 Sec. 9-275. Erroneous homestead exemptions.
5 (a) For purposes of this Section:
6 "Erroneous homestead exemption" means a homestead
7exemption that was granted for real property in a taxable year
8if the property was not eligible for that exemption in that
9taxable year. If the taxpayer receives an erroneous homestead
10exemption under a single Section of this Code for the same
11property in multiple years, that exemption is considered a
12single erroneous homestead exemption for purposes of this
13Section. However, if the taxpayer receives erroneous homestead
14exemptions under multiple Sections of this Code for the same
15property, or if the taxpayer receives erroneous homestead
16exemptions under the same Section of this Code for multiple
17properties, then each of those exemptions is considered a
18separate erroneous homestead exemption for purposes of this
19Section.
20 "Homestead exemption" means an exemption under Section
2115-165 (veterans with disabilities), 15-167 (returning
22veterans), 15-168 (persons with disabilities), 15-169
23(standard homestead for veterans with disabilities), 15-170
24(senior citizens), 15-172 (senior citizens and persons with a

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1disability assessment freeze), 15-175 (general homestead),
215-176 (alternative general homestead), or 15-177 (long-time
3occupant).
4 "Erroneous exemption principal amount" means the total
5difference between the property taxes actually billed to a
6property index number and the amount of property taxes that
7would have been billed but for the erroneous exemption or
8exemptions.
9 "Taxpayer" means the property owner or leasehold owner that
10erroneously received a homestead exemption upon property.
11 (b) Notwithstanding any other provision of law, in counties
12with 3,000,000 or more inhabitants, the chief county assessment
13officer shall include the following information with each
14assessment notice sent in a general assessment year: (1) a list
15of each homestead exemption available under Article 15 of this
16Code and a description of the eligibility criteria for that
17exemption; (2) a list of each homestead exemption applied to
18the property in the current assessment year; (3) information
19regarding penalties and interest that may be incurred under
20this Section if the taxpayer received an erroneous homestead
21exemption in a previous taxable year; and (4) notice of the
2260-day grace period available under this subsection. If, within
2360 days after receiving his or her assessment notice, the
24taxpayer notifies the chief county assessment officer that he
25or she received an erroneous homestead exemption in a previous
26taxable year, and if the taxpayer pays the erroneous exemption

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1principal amount, plus interest as provided in subsection (f),
2then the taxpayer shall not be liable for the penalties
3provided in subsection (f) with respect to that exemption.
4 (c) In counties with 3,000,000 or more inhabitants, when
5the chief county assessment officer determines that one or more
6erroneous homestead exemptions was applied to the property, the
7erroneous exemption principal amount, together with all
8applicable interest and penalties as provided in subsections
9(f) and (j), shall constitute a lien in the name of the People
10of Cook County on the property receiving the erroneous
11homestead exemption. Upon becoming aware of the existence of
12one or more erroneous homestead exemptions, the chief county
13assessment officer shall cause to be served, by both regular
14mail and certified mail, a notice of discovery as set forth in
15subsection (c-5). The chief county assessment officer in a
16county with 3,000,000 or more inhabitants may cause a lien to
17be recorded against property that (1) is located in the county
18and (2) received one or more erroneous homestead exemptions if,
19upon determination of the chief county assessment officer, the
20taxpayer received: (A) one or 2 erroneous homestead exemptions
21for real property, including at least one erroneous homestead
22exemption granted for the property against which the lien is
23sought, during any of the 3 collection years immediately prior
24to the current collection year in which the notice of discovery
25is served; or (B) 3 or more erroneous homestead exemptions for
26real 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 6 collection years immediately prior
3to the current collection year in which the notice of discovery
4is served. Prior to recording the lien against the property,
5the chief county assessment officer shall cause to be served,
6by both regular mail and certified mail, return receipt
7requested, on the person to whom the most recent tax bill was
8mailed and the owner of record, a notice of intent to record a
9lien against the property. The chief county assessment officer
10shall cause the notice of intent to record a lien to be served
11within 3 years from the date on which the notice of discovery
12was served.
13 (c-5) The notice of discovery described in subsection (c)
14shall: (1) identify, by property index number, the property for
15which the chief county assessment officer has knowledge
16indicating the existence of an erroneous homestead exemption;
17(2) set forth the taxpayer's liability for principal, interest,
18penalties, and administrative costs including, but not limited
19to, recording fees described in subsection (f); (3) inform the
20taxpayer that he or she will be served with a notice of intent
21to record a lien within 3 years from the date of service of the
22notice of discovery; (4) inform the taxpayer that he or she may
23pay the outstanding amount, plus interest, penalties, and
24administrative costs at any time prior to being served with the
25notice of intent to record a lien or within 30 days after the
26notice of intent to record a lien is served; and (5) inform the

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

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1within 30 days after service; and (6) inform the taxpayer that,
2if the lien is recorded against the property, the amount of the
3lien will be adjusted to include the applicable recording fee
4and that fees for recording a release of the lien shall be
5incurred by the taxpayer. A lien shall not be filed pursuant to
6this Section if the taxpayer pays the erroneous exemption
7principal amount, plus penalties and interest, within 30 days
8of service of the notice of intent to record a lien.
9 (e) The notice of intent to record a lien shall also
10include a form that the taxpayer may return to the chief county
11assessment officer to request a hearing. The taxpayer may
12request a hearing by returning the form within 30 days after
13service. The hearing shall be held within 90 days after the
14taxpayer is served. The chief county assessment officer shall
15promulgate rules of service and procedure for the hearing. The
16chief county assessment officer must generally follow rules of
17evidence and practices that prevail in the county circuit
18courts, but, because of the nature of these proceedings, the
19chief county assessment officer is not bound by those rules in
20all particulars. The chief county assessment officer shall
21appoint a hearing officer to oversee the hearing. The taxpayer
22shall be allowed to present evidence to the hearing officer at
23the hearing. After taking into consideration all the relevant
24testimony and evidence, the hearing officer shall make an
25administrative decision on whether the taxpayer was
26erroneously granted a homestead exemption for the taxable year

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1in question. The taxpayer may appeal the hearing officer's
2ruling to the circuit court of the county where the property is
3located as a final administrative decision under the
4Administrative Review Law.
5 (f) A lien against the property imposed under this Section
6shall be filed with the county recorder of deeds, but may not
7be filed sooner than 60 days after the notice of intent to
8record a lien was delivered to the taxpayer if the taxpayer
9does not request a hearing, or until the conclusion of the
10hearing and all appeals if the taxpayer does request a hearing.
11If a lien is filed pursuant to this Section and the taxpayer
12received one or 2 erroneous homestead exemptions during any of
13the 3 collection years immediately prior to the current
14collection year in which the notice of discovery is served,
15then the erroneous exemption principal amount, plus 10%
16interest per annum or portion thereof from the date the
17erroneous exemption principal amount would have become due if
18properly included in the tax bill, shall be charged against the
19property by the chief county assessment officer. However, if a
20lien is filed pursuant to this Section and the taxpayer
21received 3 or more erroneous homestead exemptions during any of
22the 6 collection years immediately prior to the current
23collection year in which the notice of discovery is served, the
24erroneous exemption principal amount, plus a penalty of 50% of
25the total amount of the erroneous exemption principal amount
26for that property and 10% interest per annum or portion thereof

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

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1the taxpayer. However, nothing in this Section shall prevent
2the collection of the erroneous exemption principal amount due
3and owing.
4 (i) A lien under this Section is not valid as to (1) any
5bona fide purchaser for value without notice of the erroneous
6homestead exemption whose rights in and to the underlying
7parcel arose after the erroneous homestead exemption was
8granted but before the filing of the notice of lien; or (2) any
9mortgagee, judgment creditor, or other lienor whose rights in
10and to the underlying parcel arose before the filing of the
11notice of lien. A title insurance policy for the property that
12is issued by a title company licensed to do business in the
13State showing that the property is free and clear of any liens
14imposed under this Section shall be prima facie evidence that
15the taxpayer is without notice of the erroneous homestead
16exemption. Nothing in this Section shall be deemed to impair
17the rights of subsequent creditors and subsequent purchasers
18under Section 30 of the Conveyances Act.
19 (j) When a lien is filed against the property pursuant to
20this Section, the chief county assessment officer shall mail a
21copy of the lien to the person to whom the most recent tax bill
22was mailed and to the owner of record, and the outstanding
23liability created by such a lien is due and payable within 30
24days after the mailing of the lien by the chief county
25assessment officer. This liability is deemed delinquent and
26shall bear interest beginning on the day after the due date at

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1a rate of 1.5% per month or portion thereof. Payment shall be
2made to the county treasurer. Upon receipt of the full amount
3due, as determined by the chief county assessment officer, the
4county treasurer shall distribute the amount paid as provided
5in subsection (k). Upon presentment by the taxpayer to the
6chief county assessment officer of proof of payment of the
7total liability, the chief county assessment officer shall
8provide in reasonable form a release of the lien. The release
9of the lien provided shall clearly inform the taxpayer that it
10is the responsibility of the taxpayer to record the lien
11release form with the county recorder of deeds and to pay any
12applicable recording fees.
13 (k) The county treasurer shall pay collected erroneous
14exemption principal amounts, pro rata, to the taxing districts,
15or their legal successors, that levied upon the subject
16property in the taxable year or years for which the erroneous
17homestead exemptions were granted, except as set forth in this
18Section. The county treasurer shall deposit collected
19penalties and interest into a special fund established by the
20county treasurer to offset the costs of administration of the
21provisions of this Section by the chief county assessment
22officer's office, as appropriated by the county board. If the
23costs of administration of this Section exceed the amount of
24interest and penalties collected in the special fund, the chief
25county assessor shall be reimbursed by each taxing district or
26their legal successors for those costs. Such costs shall be

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1paid out of the funds collected by the county treasurer on
2behalf of each taxing district pursuant to this Section.
3 (l) The chief county assessment officer in a county with
43,000,000 or more inhabitants shall establish an amnesty period
5for all taxpayers owing any tax due to an erroneous homestead
6exemption granted in a tax year prior to the 2013 tax year. The
7amnesty period shall begin on the effective date of this
8amendatory Act of the 98th General Assembly and shall run
9through December 31, 2013. If, during the amnesty period, the
10taxpayer pays the entire arrearage of taxes due for tax years
11prior to 2013, the county clerk shall abate and not seek to
12collect any interest or penalties that may be applicable and
13shall not seek civil or criminal prosecution for any taxpayer
14for tax years prior to 2013. Failure to pay all such taxes due
15during the amnesty period established under this Section shall
16invalidate the amnesty period for that taxpayer.
17 The chief county assessment officer in a county with
183,000,000 or more inhabitants shall (i) mail notice of the
19amnesty period with the tax bills for the second installment of
20taxes for the 2012 assessment year and (ii) as soon as possible
21after the effective date of this amendatory Act of the 98th
22General Assembly, publish notice of the amnesty period in a
23newspaper of general circulation in the county. Notices shall
24include information on the amnesty period, its purpose, and the
25method by which to make payment.
26 Taxpayers who are a party to any criminal investigation or

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1to any civil or criminal litigation that is pending in any
2circuit court or appellate court, or in the Supreme Court of
3this State, for nonpayment, delinquency, or fraud in relation
4to any property tax imposed by any taxing district located in
5the State on the effective date of this amendatory Act of the
698th General Assembly may not take advantage of the amnesty
7period.
8 A taxpayer who has claimed 3 or more homestead exemptions
9in error shall not be eligible for the amnesty period
10established under this subsection.
11(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
1298-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
137-27-15; 99-851, eff. 8-19-16.)
14 (35 ILCS 200/15-10)
15 Sec. 15-10. Exempt property; procedures for certification.
16 (a) All property granted an exemption by the Department
17pursuant to the requirements of Section 15-5 and described in
18the Sections following Section 15-30 and preceding Section
1916-5, to the extent therein limited, is exempt from taxation.
20In order to maintain that exempt status, the titleholder or the
21owner of the beneficial interest of any property that is exempt
22must file with the chief county assessment officer, on or
23before January 31 of each year (May 31 in the case of property
24exempted by Section 15-170), an affidavit stating whether there
25has been any change in the ownership or use of the property,

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1the status of the owner-resident, the satisfaction by a
2relevant hospital entity of the condition for an exemption
3under Section 15-86, or that a veteran with a disability who
4qualifies under Section 15-165 owned and used the property as
5of January 1 of that year. The nature of any change shall be
6stated in the affidavit. Failure to file an affidavit shall, in
7the discretion of the assessment officer, constitute cause to
8terminate the exemption of that property, notwithstanding any
9other provision of this Code. Owners of 5 or more such exempt
10parcels within a county may file a single annual affidavit in
11lieu of an affidavit for each parcel. The assessment officer,
12upon request, shall furnish an affidavit form to the owners, in
13which the owner may state whether there has been any change in
14the ownership or use of the property or status of the owner or
15resident as of January 1 of that year. The owner of 5 or more
16exempt parcels shall list all the properties giving the same
17information for each parcel as required of owners who file
18individual affidavits.
19 (b) However, titleholders or owners of the beneficial
20interest in any property exempted under any of the following
21provisions are not required to submit an annual filing under
22this Section:
23 (1) Section 15-45 (burial grounds) in counties of less
24 than 3,000,000 inhabitants and owned by a not-for-profit
25 organization.
26 (2) Section 15-40.

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1 (3) Section 15-50 (United States property).
2 (c) If there is a change in use or ownership, however,
3notice must be filed pursuant to Section 15-20.
4 (d) An application for homestead exemptions shall be filed
5as provided in Section 15-170 (senior citizens homestead
6exemption), Section 15-172 (senior citizens and persons with a
7disability assessment freeze homestead exemption), and
8Sections 15-175 (general homestead exemption), 15-176 (general
9alternative homestead exemption), and 15-177 (long-time
10occupant homestead exemption), respectively.
11 (e) For purposes of determining satisfaction of the
12condition for an exemption under Section 15-86:
13 (1) The "year for which exemption is sought" is the
14 year prior to the year in which the affidavit is due.
15 (2) The "hospital year" is the fiscal year of the
16 relevant hospital entity, or the fiscal year of one of the
17 hospitals in the hospital system if the relevant hospital
18 entity is a hospital system with members with different
19 fiscal years, that ends in the year prior to the year in
20 which the affidavit is due. However, if that fiscal year
21 ends 3 months or less before the date on which the
22 affidavit is due, the relevant hospital entity shall file
23 an interim affidavit based on the currently available
24 information, and shall file a supplemental affidavit
25 within 90 days of date on which the application was due, if
26 the information in the relevant hospital entity's audited

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1 financial statements changes the interim affidavit's
2 statement concerning the entity's compliance with the
3 calculation required by Section 15-86.
4 (3) The affidavit shall be accompanied by an exhibit
5 prepared by the relevant hospital entity showing (A) the
6 value of the relevant hospital entity's services and
7 activities, if any, under items (1) through (7) of
8 subsection (e) of Section 15-86, stated separately for each
9 item, and (B) the value relating to the relevant hospital
10 entity's estimated property tax liability under paragraphs
11 (A), (B), and (C) of item (1) of subsection (g) of Section
12 15-86; under paragraphs (A), (B), and (C) of item (2) of
13 subsection (g) of Section 15-86; and under item (3) of
14 subsection (g) of Section 15-86.
15(Source: P.A. 99-143, eff. 7-27-15.)
16 (35 ILCS 200/15-172)
17 Sec. 15-172. Senior Citizens and Persons with a Disability
18Assessment Freeze Homestead Exemption.
19 (a) This Section may be cited as the Senior Citizens and
20Persons with a Disability Assessment Freeze Homestead
21Exemption.
22 (b) As used in this Section:
23 "Applicant" means an individual who has filed an
24application under this Section.
25 "Base amount" means the base year equalized assessed value

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1of the residence plus the first year's equalized assessed value
2of any added improvements which increased the assessed value of
3the residence after the base year.
4 "Base year" means the taxable year prior to the taxable
5year for which the applicant first qualifies and applies for
6the exemption provided that in the prior taxable year the
7property was improved with a permanent structure that was
8occupied as a residence by the applicant who was liable for
9paying real property taxes on the property and who was either
10(i) an owner of record of the property or had legal or
11equitable interest in the property as evidenced by a written
12instrument or (ii) had a legal or equitable interest as a
13lessee in the parcel of property that was single family
14residence. If in any subsequent taxable year for which the
15applicant applies and qualifies for the exemption the equalized
16assessed value of the residence is less than the equalized
17assessed value in the existing base year (provided that such
18equalized assessed value is not based on an assessed value that
19results from a temporary irregularity in the property that
20reduces the assessed value for one or more taxable years), then
21that subsequent taxable year shall become the base year until a
22new base year is established under the terms of this paragraph.
23For taxable year 1999 only, the Chief County Assessment Officer
24shall review (i) all taxable years for which the applicant
25applied and qualified for the exemption and (ii) the existing
26base year. The assessment officer shall select as the new base

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1year the year with the lowest equalized assessed value. An
2equalized assessed value that is based on an assessed value
3that results from a temporary irregularity in the property that
4reduces the assessed value for one or more taxable years shall
5not be considered the lowest equalized assessed value. The
6selected year shall be the base year for taxable year 1999 and
7thereafter until a new base year is established under the terms
8of this paragraph.
9 "Chief County Assessment Officer" means the County
10Assessor or Supervisor of Assessments of the county in which
11the property is located.
12 "Equalized assessed value" means the assessed value as
13equalized by the Illinois Department of Revenue.
14 "Household" means the applicant, the spouse of the
15applicant, and all persons using the residence of the applicant
16as their principal place of residence.
17 "Household income" means the combined income of the members
18of a household for the calendar year preceding the taxable
19year.
20 "Income" has the same meaning as provided in Section 3.07
21of the Senior Citizens and Persons with Disabilities Property
22Tax Relief Act, except that, beginning in assessment year 2001,
23"income" does not include veteran's benefits.
24 "Internal Revenue Code of 1986" means the United States
25Internal Revenue Code of 1986 or any successor law or laws
26relating to federal income taxes in effect for the year

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1preceding the taxable year.
2 "Life care facility that qualifies as a cooperative" means
3a facility as defined in Section 2 of the Life Care Facilities
4Act.
5 "Maximum income limitation" means:
6 (1) $35,000 prior to taxable year 1999;
7 (2) $40,000 in taxable years 1999 through 2003;
8 (3) $45,000 in taxable years 2004 through 2005;
9 (4) $50,000 in taxable years 2006 and 2007; and
10 (5) $55,000 in taxable year 2008 and thereafter.
11 "Person with a disability" means a person unable to engage
12in any substantial gainful activity by reason of a medically
13determinable physical or mental impairment that (i) can be
14expected to result in death or (ii) has lasted or can be
15expected to last for a continuous period of not less than 12
16months. Persons applying for the exemption under this Section
17as a person with a disability must submit proof of the
18disability in the manner prescribed by the chief county
19assessment officer. Proof that an applicant is eligible to
20receive disability benefits under the federal Social Security
21Act constitutes proof of disability for purposes of this
22Section. Issuance of an Illinois Person with a Disability
23Identification Card to the applicant stating that the possessor
24is under a Class 2 disability, as defined in Section 4A of the
25Illinois Identification Card Act, constitutes proof that the
26person is a person with a disability for purposes of this

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1Section.
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 (1) taxable year 1994 for senior citizens
16and (2) taxable year 2017 for persons with a disability, an a
17senior citizens assessment freeze homestead exemption is
18granted for real property that is improved with a permanent
19structure that is occupied as a residence by an applicant who
20(i) is 65 years of age or older or is a person with a disability
21during the taxable year, (ii) has a household income that does
22not exceed the maximum income limitation, (iii) is liable for
23paying real property taxes on the property, and (iv) is an
24owner of record of the property or has a legal or equitable
25interest in the property as evidenced by a written instrument.
26This homestead exemption shall also apply to a leasehold

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1interest in a parcel of property improved with a permanent
2structure that is a single family residence that is occupied as
3a residence by a person who (i) is 65 years of age or older or
4is a person with a disability during the taxable year, (ii) has
5a household income that does not exceed the maximum income
6limitation, (iii) has a legal or equitable ownership interest
7in the property as lessee, and (iv) is liable for the payment
8of real property taxes on that property.
9 In counties of 3,000,000 or more inhabitants, the amount of
10the exemption for all taxable years is the equalized assessed
11value of the residence in the taxable year for which
12application is made minus the base amount. In all other
13counties, the amount of the exemption is as follows: (i)
14through taxable year 2005 and for taxable year 2007 and
15thereafter, the amount of this exemption shall be the equalized
16assessed value of the residence in the taxable year for which
17application is made minus the base amount; and (ii) for taxable
18year 2006, the amount of the exemption is as follows:
19 (1) For an applicant who has a household income of
20 $45,000 or less, the amount of the exemption is the
21 equalized assessed value of the residence in the taxable
22 year for which application is made minus the base amount.
23 (2) For an applicant who has a household income
24 exceeding $45,000 but not exceeding $46,250, the amount of
25 the exemption is (i) the equalized assessed value of the
26 residence in the taxable year for which application is made

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1 minus the base amount (ii) multiplied by 0.8.
2 (3) For an applicant who has a household income
3 exceeding $46,250 but not exceeding $47,500, the amount of
4 the exemption is (i) the equalized assessed value of the
5 residence in the taxable year for which application is made
6 minus the base amount (ii) multiplied by 0.6.
7 (4) For an applicant who has a household income
8 exceeding $47,500 but not exceeding $48,750, the amount of
9 the exemption is (i) the equalized assessed value of the
10 residence in the taxable year for which application is made
11 minus the base amount (ii) multiplied by 0.4.
12 (5) For an applicant who has a household income
13 exceeding $48,750 but not exceeding $50,000, the amount of
14 the exemption is (i) the equalized assessed value of the
15 residence in the taxable year for which application is made
16 minus the base amount (ii) multiplied by 0.2.
17 When the applicant is a surviving spouse of an applicant
18for a prior year for the same residence for which an exemption
19under this Section has been granted, the base year and base
20amount for that residence are the same as for the applicant for
21the prior year.
22 Each year at the time the assessment books are certified to
23the County Clerk, the Board of Review or Board of Appeals shall
24give to the County Clerk a list of the assessed values of
25improvements on each parcel qualifying for this exemption that
26were added after the base year for this parcel and that

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1increased the assessed value of the property.
2 In the case of land improved with an apartment building
3owned and operated as a cooperative or a building that is a
4life care facility that qualifies as a cooperative, the maximum
5reduction from the equalized assessed value of the property is
6limited to the sum of the reductions calculated for each unit
7occupied as a residence by a person or persons (i) who is 65
8years of age or older or a person with a disability, (ii) with
9a household income that does not exceed the maximum income
10limitation, (iii) who is liable, by contract with the owner or
11owners of record, for paying real property taxes on the
12property, and (iv) who is an owner of record of a legal or
13equitable interest in the cooperative apartment building,
14other than a leasehold interest. In the instance of a
15cooperative where a homestead exemption has been granted under
16this Section, the cooperative association or its management
17firm shall credit the savings resulting from that exemption
18only to the apportioned tax liability of the owner who
19qualified for the exemption. Any person who willfully refuses
20to credit that savings to an owner who qualifies for the
21exemption is guilty of a Class B misdemeanor.
22 When a homestead exemption has been granted under this
23Section and an applicant then becomes a resident of a facility
24licensed under the Assisted Living and Shared Housing Act, the
25Nursing Home Care Act, the Specialized Mental Health
26Rehabilitation Act of 2013, the ID/DD Community Care Act, or

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1the MC/DD Act, the exemption shall be granted in subsequent
2years so long as the residence (i) continues to be occupied by
3the qualified applicant's spouse or (ii) if remaining
4unoccupied, is still owned by the qualified applicant for the
5homestead exemption.
6 Beginning January 1, 1997 for senior citizens and January
71, 2017 for persons with a disability, when an individual dies
8who would have qualified for an exemption under this Section,
9and the surviving spouse does not independently qualify for
10this exemption because of age or nondisability, the exemption
11under this Section shall be granted to the surviving spouse for
12the taxable year preceding and the taxable year of the death,
13provided that, except for age or nondisability, the surviving
14spouse meets all other qualifications for the granting of this
15exemption for those years.
16 When married persons maintain separate residences, the
17exemption provided for in this Section may be claimed by only
18one of such persons and for only one residence.
19 For taxable year 1994 only, in counties having less than
203,000,000 inhabitants, to receive the exemption, a person shall
21submit an application by February 15, 1995 to the Chief County
22Assessment Officer of the county in which the property is
23located. In counties having 3,000,000 or more inhabitants, for
24taxable year 1994 and all subsequent taxable years, to receive
25the exemption, a person may submit an application to the Chief
26County Assessment Officer of the county in which the property

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1is located during such period as may be specified by the Chief
2County Assessment Officer. The Chief County Assessment Officer
3in counties of 3,000,000 or more inhabitants shall annually
4give notice of the application period by mail or by
5publication. In counties having less than 3,000,000
6inhabitants, beginning with taxable year 1995 and thereafter,
7to receive the exemption, a person shall submit an application
8by July 1 of each taxable year to the Chief County Assessment
9Officer of the county in which the property is located. A
10county may, by ordinance, establish a date for submission of
11applications that is different than July 1. The applicant shall
12submit with the application an affidavit of the applicant's
13total household income, age, marital status (and if married the
14name and address of the applicant's spouse, if known),
15disability (if applying for the exemption as a person with a
16disability), and principal dwelling place of members of the
17household on January 1 of the taxable year. The Department
18shall establish, by rule, a method for verifying the accuracy
19of affidavits filed by applicants under this Section, and the
20Chief County Assessment Officer may conduct audits of any
21taxpayer claiming an exemption under this Section to verify
22that the taxpayer is eligible to receive the exemption. Each
23application shall contain or be verified by a written
24declaration that it is made under the penalties of perjury. A
25taxpayer's signing a fraudulent application under this Act is
26perjury, as defined in Section 32-2 of the Criminal Code of

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12012. The applications shall be clearly marked as applications
2for the Senior Citizens and Persons with a Disability
3Assessment Freeze Homestead Exemption and must contain a notice
4that any taxpayer who receives the exemption is subject to an
5audit by the Chief County Assessment Officer.
6 Notwithstanding any other provision to the contrary, in
7counties having fewer than 3,000,000 inhabitants, if an
8applicant fails to file the application required by this
9Section in a timely manner and this failure to file is due to a
10mental or physical condition sufficiently severe so as to
11render the applicant incapable of filing the application in a
12timely manner, the Chief County Assessment Officer may extend
13the filing deadline for a period of 30 days after the applicant
14regains the capability to file the application, but in no case
15may the filing deadline be extended beyond 3 months of the
16original filing deadline. In order to receive the extension
17provided in this paragraph, the applicant shall provide the
18Chief County Assessment Officer with a signed statement from
19the applicant's physician, advanced practice nurse, or
20physician assistant stating the nature and extent of the
21condition, that, in the physician's, advanced practice
22nurse's, or physician assistant's opinion, the condition was so
23severe that it rendered the applicant incapable of filing the
24application in a timely manner, and the date on which the
25applicant regained the capability to file the application.
26 Beginning January 1, 1998, notwithstanding any other

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1provision to the contrary, in counties having fewer than
23,000,000 inhabitants, if an applicant fails to file the
3application required by this Section in a timely manner and
4this failure to file is due to a mental or physical condition
5sufficiently severe so as to render the applicant incapable of
6filing the application in a timely manner, the Chief County
7Assessment Officer may extend the filing deadline for a period
8of 3 months. In order to receive the extension provided in this
9paragraph, the applicant shall provide the Chief County
10Assessment Officer with a signed statement from the applicant's
11physician, advanced practice nurse, or physician assistant
12stating the nature and extent of the condition, and that, in
13the physician's, advanced practice nurse's, or physician
14assistant's opinion, the condition was so severe that it
15rendered the applicant incapable of filing the application in a
16timely manner.
17 In counties having less than 3,000,000 inhabitants, if an
18applicant was denied an exemption in taxable year 1994 and the
19denial occurred due to an error on the part of an assessment
20official, or his or her agent or employee, then beginning in
21taxable year 1997 the applicant's base year, for purposes of
22determining the amount of the exemption, shall be 1993 rather
23than 1994. In addition, in taxable year 1997, the applicant's
24exemption shall also include an amount equal to (i) the amount
25of any exemption denied to the applicant in taxable year 1995
26as a result of using 1994, rather than 1993, as the base year,

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1(ii) the amount of any exemption denied to the applicant in
2taxable year 1996 as a result of using 1994, rather than 1993,
3as the base year, and (iii) the amount of the exemption
4erroneously denied for taxable year 1994.
5 For purposes of this Section, a person who will be 65 years
6of age or a person with a disability during the current taxable
7year shall be eligible to apply for the homestead exemption
8during that taxable year. Application shall be made during the
9application period in effect for the county of his or her
10residence.
11 The Chief County Assessment Officer may determine the
12eligibility of a life care facility that qualifies as a
13cooperative to receive the benefits provided by this Section by
14use of an affidavit, application, visual inspection,
15questionnaire, or other reasonable method in order to insure
16that the tax savings resulting from the exemption are credited
17by the management firm to the apportioned tax liability of each
18qualifying resident. The Chief County Assessment Officer may
19request reasonable proof that the management firm has so
20credited that exemption.
21 Except as provided in this Section, all information
22received by the chief county assessment officer or the
23Department from applications filed under this Section, or from
24any investigation conducted under the provisions of this
25Section, shall be confidential, except for official purposes or
26pursuant to official procedures for collection of any State or

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1local tax or enforcement of any civil or criminal penalty or
2sanction imposed by this Act or by any statute or ordinance
3imposing a State or local tax. Any person who divulges any such
4information in any manner, except in accordance with a proper
5judicial order, is guilty of a Class A misdemeanor.
6 Nothing contained in this Section shall prevent the
7Director or chief county assessment officer from publishing or
8making available reasonable statistics concerning the
9operation of the exemption contained in this Section in which
10the contents of claims are grouped into aggregates in such a
11way that information contained in any individual claim shall
12not be disclosed.
13 (d) Each Chief County Assessment Officer shall annually
14publish a notice of availability of the exemption provided
15under this Section. The notice shall be published at least 60
16days but no more than 75 days prior to the date on which the
17application must be submitted to the Chief County Assessment
18Officer of the county in which the property is located. The
19notice shall appear in a newspaper of general circulation in
20the county.
21 Notwithstanding Sections 6 and 8 of the State Mandates Act,
22no reimbursement by the State is required for the
23implementation of any mandate created by this Section.
24(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
2599-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
267-28-16.)

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1 (35 ILCS 200/15-175)
2 Sec. 15-175. General homestead exemption.
3 (a) Except as provided in Sections 15-176 and 15-177,
4homestead property is entitled to an annual homestead exemption
5limited, except as described here with relation to
6cooperatives, to a reduction in the equalized assessed value of
7homestead property equal to the increase in equalized assessed
8value for the current assessment year above the equalized
9assessed value of the property for 1977, up to the maximum
10reduction set forth below. If however, the 1977 equalized
11assessed value upon which taxes were paid is subsequently
12determined by local assessing officials, the Property Tax
13Appeal Board, or a court to have been excessive, the equalized
14assessed value which should have been placed on the property
15for 1977 shall be used to determine the amount of the
16exemption.
17 (b) Except as provided in Section 15-176, the maximum
18reduction before taxable year 2004 shall be $4,500 in counties
19with 3,000,000 or more inhabitants and $3,500 in all other
20counties. Except as provided in Sections 15-176 and 15-177, for
21taxable years 2004 through 2007, the maximum reduction shall be
22$5,000, for taxable year 2008, the maximum reduction is $5,500,
23and, for taxable years 2009 through 2011, the maximum reduction
24is $6,000 in all counties. For taxable years 2012 and
25thereafter, the maximum reduction is $7,000 in counties with

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13,000,000 or more inhabitants and $6,000 in all other counties.
2If a county has elected to subject itself to the provisions of
3Section 15-176 as provided in subsection (k) of that Section,
4then, for the first taxable year only after the provisions of
5Section 15-176 no longer apply, for owners who, for the taxable
6year, have not been granted a senior citizens and persons with
7a disability assessment freeze homestead exemption under
8Section 15-172 or a long-time occupant homestead exemption
9under Section 15-177, there shall be an additional exemption of
10$5,000 for owners with a household income 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

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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

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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:

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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

HB0417- 35 -LRB100 04234 HLH 14240 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"

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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

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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.

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1 (k) Notwithstanding Sections 6 and 8 of the State Mandates
2Act, no reimbursement by the State is required for the
3implementation of any mandate created by this Section.
4(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 Section 99. Effective date. This Act takes effect upon
8becoming law.
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