Bill Text: IL HB3511 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that, if property qualifies for the senior citizens homestead exemption, but the property owner fails to apply for the exemption during the application period, then the property owner may apply to any or all of the taxing districts in which the property is located to receive a refund of that taxing district's share of the excess property taxes extended against the property as a result of the failure to apply the exemption. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB3511 Detail]

Download: Illinois-2023-HB3511-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3511

Introduced , by Rep. Dagmara Avelar

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-170

Amends the Property Tax Code. Provides that, if property qualifies for the senior citizens homestead exemption, but the property owner fails to apply for the exemption during the application period, then the property owner may apply to any or all of the taxing districts in which the property is located to receive a refund of that taxing district's share of the excess property taxes extended against the property as a result of the failure to apply the exemption. Effective immediately.
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A BILL FOR

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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
5Section 15-170 as follows:
6 (35 ILCS 200/15-170)
7 Sec. 15-170. Senior citizens homestead exemption.
8 (a) An annual homestead exemption limited, except as
9described here with relation to cooperatives or life care
10facilities, to a maximum reduction set forth below from the
11property's value, as equalized or assessed by the Department,
12is granted for property that is occupied as a residence by a
13person 65 years of age or older who is liable for paying real
14estate taxes on the property and is an owner of record of the
15property or has a legal or equitable interest therein as
16evidenced by a written instrument, except for a leasehold
17interest, other than a leasehold interest of land on which a
18single family residence is located, which is occupied as a
19residence by a person 65 years or older who has an ownership
20interest therein, legal, equitable or as a lessee, and on
21which he or she is liable for the payment of property taxes.
22Before taxable year 2004, the maximum reduction shall be
23$2,500 in counties with 3,000,000 or more inhabitants and

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1$2,000 in all other counties. For taxable years 2004 through
22005, the maximum reduction shall be $3,000 in all counties.
3For taxable years 2006 and 2007, the maximum reduction shall
4be $3,500. For taxable years 2008 through 2011, the maximum
5reduction is $4,000 in all counties. For taxable year 2012,
6the maximum reduction is $5,000 in counties with 3,000,000 or
7more inhabitants and $4,000 in all other counties. For taxable
8years 2013 through 2016, the maximum reduction is $5,000 in
9all counties. For taxable years 2017 through 2022, the maximum
10reduction is $8,000 in counties with 3,000,000 or more
11inhabitants and $5,000 in all other counties. For taxable
12years 2023 and thereafter, the maximum reduction is $8,000 in
13counties with 3,000,000 or more inhabitants and counties that
14are contiguous to a county of 3,000,000 or more inhabitants
15and $5,000 in all other counties.
16 (b) For land improved with an apartment building owned and
17operated as a cooperative, the maximum reduction from the
18value of the property, as equalized by the Department, shall
19be multiplied by the number of apartments or units occupied by
20a person 65 years of age or older who is liable, by contract
21with the owner or owners of record, for paying property taxes
22on the property and is an owner of record of a legal or
23equitable interest in the cooperative apartment building,
24other than a leasehold interest. For land improved with a life
25care facility, the maximum reduction from the value of the
26property, as equalized by the Department, shall be multiplied

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

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1 (d) A person who will be 65 years of age during the current
2assessment year shall be eligible to apply for the homestead
3exemption during that assessment year. Application shall be
4made during the application period in effect for the county of
5his residence.
6 (e) Beginning with assessment year 2003, for taxes payable
7in 2004, property that is first occupied as a residence after
8January 1 of any assessment year by a person who is eligible
9for the senior citizens homestead exemption under this Section
10must be granted a pro-rata exemption for the assessment year.
11The amount of the pro-rata exemption is the exemption allowed
12in the county under this Section divided by 365 and multiplied
13by the number of days during the assessment year the property
14is occupied as a residence by a person eligible for the
15exemption under this Section. The chief county assessment
16officer must adopt reasonable procedures to establish
17eligibility for this pro-rata exemption.
18 (f) The assessor or chief county assessment officer may
19determine the eligibility of a life care facility to receive
20the benefits provided by this Section, by affidavit,
21application, visual inspection, questionnaire or other
22reasonable methods in order to insure that the tax savings
23resulting from the exemption are credited by the management
24firm to the apportioned tax liability of each qualifying
25resident. The assessor may request reasonable proof that the
26management firm has so credited the exemption.

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1 (g) The chief county assessment officer of each county
2with less than 3,000,000 inhabitants shall provide to each
3person allowed a homestead exemption under this Section a form
4to designate any other person to receive a duplicate of any
5notice of delinquency in the payment of taxes assessed and
6levied under this Code on the property of the person receiving
7the exemption. The duplicate notice shall be in addition to
8the notice required to be provided to the person receiving the
9exemption, and shall be given in the manner required by this
10Code. The person filing the request for the duplicate notice
11shall pay a fee of $5 to cover administrative costs to the
12supervisor of assessments, who shall then file the executed
13designation with the county collector. Notwithstanding any
14other provision of this Code to the contrary, the filing of
15such an executed designation requires the county collector to
16provide duplicate notices as indicated by the designation. A
17designation may be rescinded by the person who executed such
18designation at any time, in the manner and form required by the
19chief county assessment officer.
20 (h) The assessor or chief county assessment officer may
21determine the eligibility of residential property to receive
22the homestead exemption provided by this Section by
23application, visual inspection, questionnaire or other
24reasonable methods. The determination shall be made in
25accordance with guidelines established by the Department.
26 (i) In counties with 3,000,000 or more inhabitants, for

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1taxable years 2010 through 2018, and beginning again in
2taxable year 2024, each taxpayer who has been granted an
3exemption under this Section must reapply on an annual basis.
4 If a reapplication is required, then the chief county
5assessment officer shall mail the application to the taxpayer
6at least 60 days prior to the last day of the application
7period for the county.
8 For taxable years 2019 through 2023, in counties with
93,000,000 or more inhabitants, a taxpayer who has been granted
10an exemption under this Section need not reapply. However, if
11the property ceases to be qualified for the exemption under
12this Section in any year for which a reapplication is not
13required under this Section, then the owner of record of the
14property shall notify the chief county assessment officer that
15the property is no longer qualified. In addition, for taxable
16years 2019 through 2023, the chief county assessment officer
17of a county with 3,000,000 or more inhabitants shall enter
18into an intergovernmental agreement with the county clerk of
19that county and the Department of Public Health, as well as any
20other appropriate governmental agency, to obtain information
21that documents the death of a taxpayer who has been granted an
22exemption under this Section. Notwithstanding any other
23provision of law, the county clerk and the Department of
24Public Health shall provide that information to the chief
25county assessment officer. The Department of Public Health
26shall supply this information no less frequently than every

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1calendar quarter. Information concerning the death of a
2taxpayer may be shared with the county treasurer. The chief
3county assessment officer shall also enter into a data
4exchange agreement with the Social Security Administration or
5its agent to obtain access to the information regarding deaths
6in possession of the Social Security Administration. The chief
7county assessment officer shall, subject to the notice
8requirements under subsection (m) of Section 9-275, terminate
9the exemption under this Section if the information obtained
10indicates that the property is no longer qualified for the
11exemption. In counties with 3,000,000 or more inhabitants, the
12assessor and the county recorder of deeds shall establish
13policies and practices for the regular exchange of information
14for the purpose of alerting the assessor whenever the transfer
15of ownership of any property receiving an exemption under this
16Section has occurred. When such a transfer occurs, the
17assessor shall mail a notice to the new owner of the property
18(i) informing the new owner that the exemption will remain in
19place through the year of the transfer, after which it will be
20canceled, and (ii) providing information pertaining to the
21rules for reapplying for the exemption if the owner qualifies.
22In counties with 3,000,000 or more inhabitants, the chief
23county assessment official shall conduct audits of all
24exemptions granted under this Section no later than December
2531, 2022 and no later than December 31, 2024. The audit shall
26be designed to ascertain whether any senior homestead

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1exemptions have been granted erroneously. If it is determined
2that a senior homestead exemption has been erroneously applied
3to a property, the chief county assessment officer shall make
4use of the appropriate provisions of Section 9-275 in relation
5to the property that received the erroneous homestead
6exemption.
7 (j) In counties with less than 3,000,000 inhabitants, the
8county board may by resolution provide that if a person has
9been granted a homestead exemption under this Section, the
10person qualifying need not reapply for the exemption.
11 In counties with less than 3,000,000 inhabitants, if the
12assessor or chief county assessment officer requires annual
13application for verification of eligibility for an exemption
14once granted under this Section, the application shall be
15mailed to the taxpayer.
16 (l) The assessor or chief county assessment officer shall
17notify each person who qualifies for an exemption under this
18Section that the person may also qualify for deferral of real
19estate taxes under the Senior Citizens Real Estate Tax
20Deferral Act. The notice shall set forth the qualifications
21needed for deferral of real estate taxes, the address and
22telephone number of county collector, and a statement that
23applications for deferral of real estate taxes may be obtained
24from the county collector.
25 (l-5) For the 2023 taxable year or any subsequent taxable
26year, if property qualifies for the exemption under this

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1Section, but the property owner fails to apply for the
2exemption during the application period, then the property
3owner may apply to any or all of the taxing districts in which
4the property is located to receive a refund of that taxing
5district's share of the excess property taxes extended against
6the property as a result of the failure to apply the exemption
7under this Section. Such an application shall be made within 5
8years after the taxable year in which the exemption should
9have been applied to the property.
10 (m) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20;
14102-895, eff. 5-23-22.)
15 Section 99. Effective date. This Act takes effect upon
16becoming law.
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