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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1411 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED:
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Amends the Property Tax Code. Provides that, for taxable years 2024 and thereafter, the maximum reduction is $10,000 in all counties. Effective immediately.
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| | A BILL FOR |
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| | HB1411 | | LRB103 25602 HLH 51951 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 15-175 as follows:
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| 6 | | (35 ILCS 200/15-175)
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| 7 | | Sec. 15-175. General homestead exemption. |
| 8 | | (a) Except as provided in Sections 15-176 and 15-177, |
| 9 | | homestead
property is
entitled to an annual homestead |
| 10 | | exemption limited, except as described here
with relation to |
| 11 | | cooperatives or life care facilities, to a reduction in the |
| 12 | | equalized assessed value
of homestead property equal to the |
| 13 | | increase in equalized assessed value for the
current |
| 14 | | assessment year above the equalized assessed value of the |
| 15 | | property for
1977, up to the maximum reduction set forth |
| 16 | | below. If however, the 1977
equalized assessed value upon |
| 17 | | which taxes were paid is subsequently determined
by local |
| 18 | | assessing officials, the Property Tax Appeal Board, or a court |
| 19 | | to have
been excessive, the equalized assessed value which |
| 20 | | should have been placed on
the property for 1977 shall be used |
| 21 | | to determine the amount of the exemption.
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| 22 | | (b) Except as provided in Section 15-176, the maximum |
| 23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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| 1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other |
| 2 | | counties. Except as provided in Sections 15-176 and 15-177, |
| 3 | | for taxable years 2004 through 2007, the maximum reduction |
| 4 | | shall be $5,000, for taxable year 2008, the maximum reduction |
| 5 | | is $5,500, and, for taxable years 2009 through 2011, the |
| 6 | | maximum reduction is $6,000 in all counties. For taxable years |
| 7 | | 2012 through 2016, the maximum reduction is $7,000 in counties |
| 8 | | with 3,000,000 or more
inhabitants
and $6,000 in all other |
| 9 | | counties. For taxable years 2017 through 2022, the maximum |
| 10 | | reduction is $10,000 in counties with 3,000,000 or more |
| 11 | | inhabitants and $6,000 in all other counties. For taxable year |
| 12 | | years 2023 and thereafter, the maximum reduction is $10,000 in |
| 13 | | counties with 3,000,000 or more inhabitants, $8,000 in |
| 14 | | counties that are contiguous to a county of 3,000,000 or more |
| 15 | | inhabitants, and $6,000 in all other counties. For taxable |
| 16 | | years 2024 and thereafter, the maximum reduction is $10,000 in |
| 17 | | all counties. If a county has elected to subject itself to the |
| 18 | | provisions of Section 15-176 as provided in subsection (k) of |
| 19 | | that Section, then, for the first taxable year only after the |
| 20 | | provisions of Section 15-176 no longer apply, for owners who, |
| 21 | | for the taxable year, have not been granted a senior citizens |
| 22 | | assessment freeze homestead exemption under Section 15-172 or |
| 23 | | a long-time occupant homestead exemption under Section 15-177, |
| 24 | | there shall be an additional exemption of $5,000 for owners |
| 25 | | with a household income of $30,000 or less.
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| 26 | | (c) In counties with fewer than 3,000,000 inhabitants, if, |
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| 1 | | based on the most
recent assessment, the equalized assessed |
| 2 | | value of
the homestead property for the current assessment |
| 3 | | year is greater than the
equalized assessed value of the |
| 4 | | property for 1977, the owner of the property
shall |
| 5 | | automatically receive the exemption granted under this Section |
| 6 | | in an
amount equal to the increase over the 1977 assessment up |
| 7 | | to the maximum
reduction set forth in this Section.
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| 8 | | (d) If in any assessment year beginning with the 2000 |
| 9 | | assessment year,
homestead property has a pro-rata valuation |
| 10 | | under
Section 9-180 resulting in an increase in the assessed |
| 11 | | valuation, a reduction
in equalized assessed valuation equal |
| 12 | | to the increase in equalized assessed
value of the property |
| 13 | | for the year of the pro-rata valuation above the
equalized |
| 14 | | assessed value of the property for 1977 shall be applied to the
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| 15 | | property on a proportionate basis for the period the property |
| 16 | | qualified as
homestead property during the assessment year. |
| 17 | | The maximum proportionate
homestead exemption shall not exceed |
| 18 | | the maximum homestead exemption allowed in
the county under |
| 19 | | this Section divided by 365 and multiplied by the number of
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| 20 | | days the property qualified as homestead property.
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| 21 | | (d-1) In counties with 3,000,000 or more inhabitants, |
| 22 | | where the chief county assessment officer provides a notice of |
| 23 | | discovery, if a property is not
occupied by its owner as a |
| 24 | | principal residence as of January 1 of the current tax year, |
| 25 | | then the property owner shall notify the chief county |
| 26 | | assessment officer of that fact on a form prescribed by the |
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| 1 | | chief county assessment officer. That notice must be received |
| 2 | | by the chief county assessment officer on or before March 1 of |
| 3 | | the collection year. If mailed, the form shall be sent by |
| 4 | | certified mail, return receipt requested. If the form is |
| 5 | | provided in person, the chief county assessment officer shall |
| 6 | | provide a date stamped copy of the notice. Failure to provide |
| 7 | | timely notice pursuant to this subsection (d-1) shall result |
| 8 | | in the exemption being treated as an erroneous exemption. Upon |
| 9 | | timely receipt of the notice for the current tax year, no |
| 10 | | exemption shall be applied to the property for the current tax |
| 11 | | year. If the exemption is not removed upon timely receipt of |
| 12 | | the notice by the chief assessment officer, then the error is |
| 13 | | considered granted as a result of a clerical error or omission |
| 14 | | on the part of the chief county assessment officer as |
| 15 | | described in subsection (h) of Section 9-275, and the property |
| 16 | | owner shall not be liable for the payment of interest and |
| 17 | | penalties due to the erroneous exemption for the current tax |
| 18 | | year for which the notice was filed after the date that notice |
| 19 | | was timely received pursuant to this subsection. Notice |
| 20 | | provided under this subsection shall not constitute a defense |
| 21 | | or amnesty for prior year erroneous exemptions. |
| 22 | | For the purposes of this subsection (d-1): |
| 23 | | "Collection year" means the year in which the first and |
| 24 | | second installment of the current tax year is billed. |
| 25 | | "Current tax year" means the year prior to the collection |
| 26 | | year. |
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| 1 | | (e) The chief county assessment officer may, when |
| 2 | | considering whether to grant a leasehold exemption under this |
| 3 | | Section, require the following conditions to be met: |
| 4 | | (1) that a notarized application for the exemption, |
| 5 | | signed by both the owner and the lessee of the property, |
| 6 | | must be submitted each year during the application period |
| 7 | | in effect for the county in which the property is located; |
| 8 | | (2) that a copy of the lease must be filed with the |
| 9 | | chief county assessment officer by the owner of the |
| 10 | | property at the time the notarized application is |
| 11 | | submitted; |
| 12 | | (3) that the lease must expressly state that the |
| 13 | | lessee is liable for the payment of property taxes; and |
| 14 | | (4) that the lease must include the following language |
| 15 | | in substantially the following form: |
| 16 | | "Lessee shall be liable for the payment of real |
| 17 | | estate taxes with respect to the residence in |
| 18 | | accordance with the terms and conditions of Section |
| 19 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). |
| 20 | | The permanent real estate index number for the |
| 21 | | premises is (insert number), and, according to the |
| 22 | | most recent property tax bill, the current amount of |
| 23 | | real estate taxes associated with the premises is |
| 24 | | (insert amount) per year. The parties agree that the |
| 25 | | monthly rent set forth above shall be increased or |
| 26 | | decreased pro rata (effective January 1 of each |
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| 1 | | calendar year) to reflect any increase or decrease in |
| 2 | | real estate taxes. Lessee shall be deemed to be |
| 3 | | satisfying Lessee's liability for the above mentioned |
| 4 | | real estate taxes with the monthly rent payments as |
| 5 | | set forth above (or increased or decreased as set |
| 6 | | forth herein).". |
| 7 | | In addition, if there is a change in lessee, or if the |
| 8 | | lessee vacates the property, then the chief county assessment |
| 9 | | officer may require the owner of the property to notify the |
| 10 | | chief county assessment officer of that change. |
| 11 | | This subsection (e) does not apply to leasehold interests |
| 12 | | in property owned by a municipality. |
| 13 | | (f) "Homestead property" under this Section includes |
| 14 | | residential property that is
occupied by its owner or owners |
| 15 | | as his or their principal dwelling place, or
that is a |
| 16 | | leasehold interest on which a single family residence is |
| 17 | | situated,
which is occupied as a residence by a person who has |
| 18 | | an ownership interest
therein, legal or equitable or as a |
| 19 | | lessee, and on which the person is
liable for the payment of |
| 20 | | property taxes. For land improved with
an apartment building |
| 21 | | owned and operated as a cooperative, the maximum reduction |
| 22 | | from the equalized
assessed value shall be limited to the |
| 23 | | increase in the value above the
equalized assessed value of |
| 24 | | the property for 1977, up to
the maximum reduction set forth |
| 25 | | above, multiplied by the number of apartments
or units |
| 26 | | occupied by a person or persons who is liable, by contract with |
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| 1 | | the
owner or owners of record, for paying property taxes on the |
| 2 | | property and is an
owner of record of a legal or equitable |
| 3 | | interest in the cooperative
apartment building, other than a |
| 4 | | leasehold interest. For land improved with a life care |
| 5 | | facility, the maximum reduction from the value of the |
| 6 | | property, as equalized by the Department, shall be multiplied |
| 7 | | by the number of apartments or units occupied by a person or |
| 8 | | persons, irrespective of any legal, equitable, or leasehold |
| 9 | | interest in the facility, who are liable, under a life care |
| 10 | | contract with the owner or owners of record of the facility, |
| 11 | | for paying property taxes on the property. For purposes of |
| 12 | | this
Section, the term "life care facility" has the meaning |
| 13 | | stated in Section
15-170.
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| 14 | | "Household", as used in this Section,
means the owner, the |
| 15 | | spouse of the owner, and all persons using
the
residence of the |
| 16 | | owner as their principal place of residence.
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| 17 | | "Household income", as used in this Section,
means the |
| 18 | | combined income of the members of a household
for the calendar |
| 19 | | year preceding the taxable year.
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| 20 | | "Income", as used in this Section,
has the same meaning as |
| 21 | | provided in Section 3.07 of the Senior
Citizens
and Persons |
| 22 | | with Disabilities Property Tax Relief Act,
except that
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| 23 | | "income" does not include veteran's benefits.
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| 24 | | (g) In a cooperative or life care facility where a |
| 25 | | homestead exemption has been granted, the
cooperative |
| 26 | | association or the management of the cooperative or life care |
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| 1 | | facility shall credit the savings
resulting from that |
| 2 | | exemption only to the apportioned tax liability of the
owner |
| 3 | | or resident who qualified for the exemption. Any person who |
| 4 | | willfully refuses to so
credit the savings shall be guilty of a |
| 5 | | Class B misdemeanor.
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| 6 | | (h) Where married persons maintain and reside in separate |
| 7 | | residences qualifying
as homestead property, each residence |
| 8 | | shall receive 50% of the total reduction
in equalized assessed |
| 9 | | valuation provided by this Section.
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| 10 | | (i) In all counties, the assessor
or chief county |
| 11 | | assessment officer may determine the
eligibility of |
| 12 | | residential property to receive the homestead exemption and |
| 13 | | the amount of the exemption by
application, visual inspection, |
| 14 | | questionnaire or other reasonable methods. The
determination |
| 15 | | shall be made in accordance with guidelines established by the
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| 16 | | Department, provided that the taxpayer applying for an |
| 17 | | additional general exemption under this Section shall submit |
| 18 | | to the chief county assessment officer an application with an |
| 19 | | affidavit of the applicant's total household income, age, |
| 20 | | marital status (and, if married, the name and address of the |
| 21 | | applicant's spouse, if known), and principal dwelling place of |
| 22 | | members of the household on January 1 of the taxable year. The |
| 23 | | Department shall issue guidelines establishing a method for |
| 24 | | verifying the accuracy of the affidavits filed by applicants |
| 25 | | under this paragraph. The applications shall be clearly marked |
| 26 | | as applications for the Additional General Homestead |
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| 1 | | Exemption.
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| 2 | | (i-5) This subsection (i-5) applies to counties with |
| 3 | | 3,000,000 or more inhabitants. In the event of a sale of
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| 4 | | homestead property, the homestead exemption shall remain in |
| 5 | | effect for the remainder of the assessment year of the sale. |
| 6 | | Upon receipt of a transfer declaration transmitted by the |
| 7 | | recorder pursuant to Section 31-30 of the Real Estate Transfer |
| 8 | | Tax Law for property receiving an exemption under this |
| 9 | | Section, the assessor shall mail a notice and forms to the new |
| 10 | | owner of the property providing information pertaining to the |
| 11 | | rules and applicable filing periods for applying or reapplying |
| 12 | | for homestead exemptions under this Code for which the |
| 13 | | property may be eligible. If the new owner fails to apply or |
| 14 | | reapply for a homestead exemption during the applicable filing |
| 15 | | period or the property no longer qualifies for an existing |
| 16 | | homestead exemption, the assessor shall cancel such exemption |
| 17 | | for any ensuing assessment year. |
| 18 | | (j) In counties with fewer than 3,000,000 inhabitants, in |
| 19 | | the event of a sale
of
homestead property the homestead |
| 20 | | exemption shall remain in effect for the
remainder of the |
| 21 | | assessment year of the sale. The assessor or chief county
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| 22 | | assessment officer may require the new
owner of the property |
| 23 | | to apply for the homestead exemption for the following
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| 24 | | assessment year.
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| 25 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates |
| 26 | | Act, no reimbursement by the State is required for the |