Bill Text: IL HB4119 | 2015-2016 | 99th General Assembly | Introduced


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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4119 Detail]

Download: Illinois-2015-HB4119-Introduced.html


99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4119

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 disabled persons. Amends the State Mandates Act to make conforming changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB4119LRB099 07764 HLH 27897 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 Disabled
16Persons Assessment Freeze Homestead Exemption under Section
1715-172 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 (disabled veterans), 15-167 (returning veterans),
2215-168 (disabled persons), 15-169 (disabled veterans standard
23homestead), 15-170 (senior citizens), 15-172 (senior citizens
24and disabled persons assessment freeze), 15-175 (general

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1homestead), 15-176 (alternative general homestead), or 15-177
2(long-time occupant).
3 "Erroneous exemption principal amount" means the total
4difference between the property taxes actually billed to a
5property index number and the amount of property taxes that
6would have been billed but for the erroneous exemption or
7exemptions.
8 "Taxpayer" means the property owner or leasehold owner that
9erroneously received a homestead exemption upon property.
10 (b) Notwithstanding any other provision of law, in counties
11with 3,000,000 or more inhabitants, the chief county assessment
12officer shall include the following information with each
13assessment notice sent in a general assessment year: (1) a list
14of each homestead exemption available under Article 15 of this
15Code and a description of the eligibility criteria for that
16exemption; (2) a list of each homestead exemption applied to
17the property in the current assessment year; (3) information
18regarding penalties and interest that may be incurred under
19this Section if the taxpayer received an erroneous homestead
20exemption in a previous taxable year; and (4) notice of the
2160-day grace period available under this subsection. If, within
2260 days after receiving his or her assessment notice, the
23taxpayer notifies the chief county assessment officer that he
24or she received an erroneous homestead exemption in a previous
25taxable year, and if the taxpayer pays the erroneous exemption
26principal amount, plus interest as provided in subsection (f),

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1then the taxpayer shall not be liable for the penalties
2provided in subsection (f) with respect to that exemption.
3 (c) In counties with 3,000,000 or more inhabitants, when
4the chief county assessment officer determines that one or more
5erroneous homestead exemptions was applied to the property, the
6erroneous exemption principal amount, together with all
7applicable interest and penalties as provided in subsections
8(f) and (j), shall constitute a lien in the name of the People
9of Cook County on the property receiving the erroneous
10homestead exemption. Upon becoming aware of the existence of
11one or more erroneous homestead exemptions, the chief county
12assessment officer shall cause to be served, by both regular
13mail and certified mail, a notice of discovery as set forth in
14subsection (c-5). The chief county assessment officer in a
15county with 3,000,000 or more inhabitants may cause a lien to
16be recorded against property that (1) is located in the county
17and (2) received one or more erroneous homestead exemptions if,
18upon determination of the chief county assessment officer, the
19taxpayer received: (A) one or 2 erroneous homestead exemptions
20for real property, including at least one erroneous homestead
21exemption granted for the property against which the lien is
22sought, during any of the 3 collection years immediately prior
23to the current collection year in which the notice of discovery
24is served; or (B) 3 or more erroneous homestead exemptions for
25real property, including at least one erroneous homestead
26exemption granted for the property against which the lien is

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1sought, during any of the 6 collection years immediately prior
2to the current collection year in which the notice of discovery
3is served. Prior to recording the lien against the property,
4the chief county assessment officer shall cause to be served,
5by both regular mail and certified mail, return receipt
6requested, on the person to whom the most recent tax bill was
7mailed and the owner of record, a notice of intent to record a
8lien against the property. The chief county assessment officer
9shall cause the notice of intent to record a lien to be served
10within 3 years from the date on which the notice of discovery
11was served.
12 (c-5) The notice of discovery described in subsection (c)
13shall: (1) identify, by property index number, the property for
14which the chief county assessment officer has knowledge
15indicating the existence of an erroneous homestead exemption;
16(2) set forth the taxpayer's liability for principal, interest,
17penalties, and administrative costs including, but not limited
18to, recording fees described in subsection (f); (3) inform the
19taxpayer that he or she will be served with a notice of intent
20to record a lien within 3 years from the date of service of the
21notice of discovery; and (4) inform the taxpayer that he or she
22may pay the outstanding amount, plus interest, penalties, and
23administrative costs at any time prior to being served with the
24notice of intent to record a lien or within 30 days after the
25notice of intent to record a lien is served.
26 (d) The notice of intent to record a lien described in

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1subsection (c) shall: (1) identify, by property index number,
2the property against which the lien is being sought; (2)
3identify each specific homestead exemption that was
4erroneously granted and the year or years in which each
5exemption was granted; (3) set forth the erroneous exemption
6principal amount due and the interest amount and any penalty
7and administrative costs due; (4) inform the taxpayer that he
8or she may request a hearing within 30 days after service and
9may appeal the hearing officer's ruling to the circuit court;
10(5) inform the taxpayer that he or she may pay the erroneous
11exemption principal amount, plus interest and penalties,
12within 30 days after service; and (6) inform the taxpayer that,
13if the lien is recorded against the property, the amount of the
14lien will be adjusted to include the applicable recording fee
15and that fees for recording a release of the lien shall be
16incurred by the taxpayer. A lien shall not be filed pursuant to
17this Section if the taxpayer pays the erroneous exemption
18principal amount, plus penalties and interest, within 30 days
19of service of the notice of intent to record a lien.
20 (e) The notice of intent to record a lien shall also
21include a form that the taxpayer may return to the chief county
22assessment officer to request a hearing. The taxpayer may
23request a hearing by returning the form within 30 days after
24service. The hearing shall be held within 90 days after the
25taxpayer is served. The chief county assessment officer shall
26promulgate rules of service and procedure for the hearing. The

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1chief county assessment officer must generally follow rules of
2evidence and practices that prevail in the county circuit
3courts, but, because of the nature of these proceedings, the
4chief county assessment officer is not bound by those rules in
5all particulars. The chief county assessment officer shall
6appoint a hearing officer to oversee the hearing. The taxpayer
7shall be allowed to present evidence to the hearing officer at
8the hearing. After taking into consideration all the relevant
9testimony and evidence, the hearing officer shall make an
10administrative decision on whether the taxpayer was
11erroneously granted a homestead exemption for the taxable year
12in question. The taxpayer may appeal the hearing officer's
13ruling to the circuit court of the county where the property is
14located as a final administrative decision under the
15Administrative Review Law.
16 (f) A lien against the property imposed under this Section
17shall be filed with the county recorder of deeds, but may not
18be filed sooner than 60 days after the notice of intent to
19record a lien was delivered to the taxpayer if the taxpayer
20does not request a hearing, or until the conclusion of the
21hearing and all appeals if the taxpayer does request a hearing.
22If a lien is filed pursuant to this Section and the taxpayer
23received one or 2 erroneous homestead exemptions during any of
24the 3 collection years immediately prior to the current
25collection year in which the notice of discovery is served,
26then the erroneous exemption principal amount, plus 10%

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

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1or inheritance; then the person is not liable for the penalties
2imposed under this Section for any year or years during which
3the chief county assessment officer did not require an annual
4application for the exemption. However, that person is
5responsible for any interest owed under subsection (f).
6 (h) If the erroneous homestead exemption was granted as a
7result of a clerical error or omission on the part of the chief
8county assessment officer, and if the taxpayer has paid the tax
9bills as received for the year in which the error occurred,
10then the interest and penalties authorized by this Section with
11respect to that homestead exemption shall not be chargeable to
12the taxpayer. However, nothing in this Section shall prevent
13the collection of the erroneous exemption principal amount due
14and owing.
15 (i) A lien under this Section is not valid as to (1) any
16bona fide purchaser for value without notice of the erroneous
17homestead exemption whose rights in and to the underlying
18parcel arose after the erroneous homestead exemption was
19granted but before the filing of the notice of lien; or (2) any
20mortgagee, judgment creditor, or other lienor whose rights in
21and to the underlying parcel arose before the filing of the
22notice of lien. A title insurance policy for the property that
23is issued by a title company licensed to do business in the
24State showing that the property is free and clear of any liens
25imposed under this Section shall be prima facie evidence that
26the taxpayer is without notice of the erroneous homestead

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1exemption. Nothing in this Section shall be deemed to impair
2the rights of subsequent creditors and subsequent purchasers
3under Section 30 of the Conveyances Act.
4 (j) When a lien is filed against the property pursuant to
5this Section, the chief county assessment officer shall mail a
6copy of the lien to the person to whom the most recent tax bill
7was mailed and to the owner of record, and the outstanding
8liability created by such a lien is due and payable within 30
9days after the mailing of the lien by the chief county
10assessment officer. This liability is deemed delinquent and
11shall bear interest beginning on the day after the due date at
12a rate of 1.5% per month or portion thereof. Payment shall be
13made to the county treasurer. Upon receipt of the full amount
14due, as determined by the chief county assessment officer, the
15county treasurer shall distribute the amount paid as provided
16in subsection (k). Upon presentment by the taxpayer to the
17chief county assessment officer of proof of payment of the
18total liability, the chief county assessment officer shall
19provide in reasonable form a release of the lien. The release
20of the lien provided shall clearly inform the taxpayer that it
21is the responsibility of the taxpayer to record the lien
22release form with the county recorder of deeds and to pay any
23applicable recording fees.
24 (k) The county treasurer shall pay collected erroneous
25exemption principal amounts, pro rata, to the taxing districts,
26or their legal successors, that levied upon the subject

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1property in the taxable year or years for which the erroneous
2homestead exemptions were granted, except as set forth in this
3Section. The county treasurer shall deposit collected
4penalties and interest into a special fund established by the
5county treasurer to offset the costs of administration of the
6provisions of this Section by the chief county assessment
7officer's office, as appropriated by the county board. If the
8costs of administration of this Section exceed the amount of
9interest and penalties collected in the special fund, the chief
10county assessor shall be reimbursed by each taxing district or
11their legal successors for those costs. Such costs shall be
12paid out of the funds collected by the county treasurer on
13behalf of each taxing district pursuant to this Section.
14 (l) The chief county assessment officer in a county with
153,000,000 or more inhabitants shall establish an amnesty period
16for all taxpayers owing any tax due to an erroneous homestead
17exemption granted in a tax year prior to the 2013 tax year. The
18amnesty period shall begin on the effective date of this
19amendatory Act of the 98th General Assembly and shall run
20through December 31, 2013. If, during the amnesty period, the
21taxpayer pays the entire arrearage of taxes due for tax years
22prior to 2013, the county clerk shall abate and not seek to
23collect any interest or penalties that may be applicable and
24shall not seek civil or criminal prosecution for any taxpayer
25for tax years prior to 2013. Failure to pay all such taxes due
26during the amnesty period established under this Section shall

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1invalidate the amnesty period for that taxpayer.
2 The chief county assessment officer in a county with
33,000,000 or more inhabitants shall (i) mail notice of the
4amnesty period with the tax bills for the second installment of
5taxes for the 2012 assessment year and (ii) as soon as possible
6after the effective date of this amendatory Act of the 98th
7General Assembly, publish notice of the amnesty period in a
8newspaper of general circulation in the county. Notices shall
9include information on the amnesty period, its purpose, and the
10method by which to make payment.
11 Taxpayers who are a party to any criminal investigation or
12to any civil or criminal litigation that is pending in any
13circuit court or appellate court, or in the Supreme Court of
14this State, for nonpayment, delinquency, or fraud in relation
15to any property tax imposed by any taxing district located in
16the State on the effective date of this amendatory Act of the
1798th General Assembly may not take advantage of the amnesty
18period.
19 A taxpayer who has claimed 3 or more homestead exemptions
20in error shall not be eligible for the amnesty period
21established under this subsection.
22(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
2398-811, eff. 1-1-15; 98-1143, eff. 1-1-15.)
24 (35 ILCS 200/15-10)
25 Sec. 15-10. Exempt property; procedures for certification.

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1 (a) All property granted an exemption by the Department
2pursuant to the requirements of Section 15-5 and described in
3the Sections following Section 15-30 and preceding Section
416-5, to the extent therein limited, is exempt from taxation.
5In order to maintain that exempt status, the titleholder or the
6owner of the beneficial interest of any property that is exempt
7must file with the chief county assessment officer, on or
8before January 31 of each year (May 31 in the case of property
9exempted by Section 15-170), an affidavit stating whether there
10has been any change in the ownership or use of the property,
11the status of the owner-resident, the satisfaction by a
12relevant hospital entity of the condition for an exemption
13under Section 15-86, or that a disabled veteran who qualifies
14under Section 15-165 owned and used the property as of January
151 of that year. The nature of any change shall be stated in the
16affidavit. Failure to file an affidavit shall, in the
17discretion of the assessment officer, constitute cause to
18terminate the exemption of that property, notwithstanding any
19other provision of this Code. Owners of 5 or more such exempt
20parcels within a county may file a single annual affidavit in
21lieu of an affidavit for each parcel. The assessment officer,
22upon request, shall furnish an affidavit form to the owners, in
23which the owner may state whether there has been any change in
24the ownership or use of the property or status of the owner or
25resident as of January 1 of that year. The owner of 5 or more
26exempt parcels shall list all the properties giving the same

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1information for each parcel as required of owners who file
2individual affidavits.
3 (b) However, titleholders or owners of the beneficial
4interest in any property exempted under any of the following
5provisions are not required to submit an annual filing under
6this Section:
7 (1) Section 15-45 (burial grounds) in counties of less
8 than 3,000,000 inhabitants and owned by a not-for-profit
9 organization.
10 (2) Section 15-40.
11 (3) Section 15-50 (United States property).
12 (c) If there is a change in use or ownership, however,
13notice must be filed pursuant to Section 15-20.
14 (d) An application for homestead exemptions shall be filed
15as provided in Section 15-170 (senior citizens homestead
16exemption), Section 15-172 (senior citizens and disabled
17persons assessment freeze homestead exemption), and Sections
1815-175 (general homestead exemption), 15-176 (general
19alternative homestead exemption), and 15-177 (long-time
20occupant homestead exemption), respectively.
21 (e) For purposes of determining satisfaction of the
22condition for an exemption under Section 15-86:
23 (1) The "year for which exemption is sought" is the
24 year prior to the year in which the affidavit is due.
25 (2) The "hospital year" is the fiscal year of the
26 relevant hospital entity, or the fiscal year of one of the

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1 hospitals in the hospital system if the relevant hospital
2 entity is a hospital system with members with different
3 fiscal years, that ends in the year prior to the year in
4 which the affidavit is due. However, if that fiscal year
5 ends 3 months or less before the date on which the
6 affidavit is due, the relevant hospital entity shall file
7 an interim affidavit based on the currently available
8 information, and shall file a supplemental affidavit
9 within 90 days of date on which the application was due, if
10 the information in the relevant hospital entity's audited
11 financial statements changes the interim affidavit's
12 statement concerning the entity's compliance with the
13 calculation required by Section 15-86.
14 (3) The affidavit shall be accompanied by an exhibit
15 prepared by the relevant hospital entity showing (A) the
16 value of the relevant hospital entity's services and
17 activities, if any, under items (1) through (7) of
18 subsection (e) of Section 15-86, stated separately for each
19 item, and (B) the value relating to the relevant hospital
20 entity's estimated property tax liability under paragraphs
21 (A), (B), and (C) of item (1) of subsection (g) of Section
22 15-86; under paragraphs (A), (B), and (C) of item (2) of
23 subsection (g) of Section 15-86; and under item (3) of
24 subsection (g) of Section 15-86.
25(Source: P.A. 97-688, eff. 6-14-12.)

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1 (35 ILCS 200/15-172)
2 Sec. 15-172. Senior Citizens and Disabled Persons
3Assessment Freeze Homestead Exemption.
4 (a) This Section may be cited as the Senior Citizens and
5Disabled Persons Assessment Freeze Homestead Exemption.
6 (b) As used in this Section:
7 "Applicant" means an individual who has filed an
8application under this Section.
9 "Base amount" means the base year equalized assessed value
10of the residence plus the first year's equalized assessed value
11of any added improvements which increased the assessed value of
12the residence after the base year.
13 "Base year" means the taxable year prior to the taxable
14year for which the applicant first qualifies and applies for
15the exemption provided that in the prior taxable year the
16property was improved with a permanent structure that was
17occupied as a residence by the applicant who was liable for
18paying real property taxes on the property and who was either
19(i) an owner of record of the property or had legal or
20equitable interest in the property as evidenced by a written
21instrument or (ii) had a legal or equitable interest as a
22lessee in the parcel of property that was single family
23residence. If in any subsequent taxable year for which the
24applicant applies and qualifies for the exemption the equalized
25assessed value of the residence is less than the equalized
26assessed value in the existing base year (provided that such

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1equalized assessed value is not based on an assessed value that
2results from a temporary irregularity in the property that
3reduces the assessed value for one or more taxable years), then
4that subsequent taxable year shall become the base year until a
5new base year is established under the terms of this paragraph.
6For taxable year 1999 only, the Chief County Assessment Officer
7shall review (i) all taxable years for which the applicant
8applied and qualified for the exemption and (ii) the existing
9base year. The assessment officer shall select as the new base
10year the year with the lowest equalized assessed value. An
11equalized assessed value that is based on an assessed value
12that results from a temporary irregularity in the property that
13reduces the assessed value for one or more taxable years shall
14not be considered the lowest equalized assessed value. The
15selected year shall be the base year for taxable year 1999 and
16thereafter until a new base year is established under the terms
17of this paragraph.
18 "Chief County Assessment Officer" means the County
19Assessor or Supervisor of Assessments of the county in which
20the property is located.
21 "Disabled person" means a person unable to engage in any
22substantial gainful activity by reason of a medically
23determinable physical or mental impairment that (i) can be
24expected to result in death or (ii) has lasted or can be
25expected to last for a continuous period of not less than 12
26months. Disabled persons applying for the exemption under this

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1Section must submit proof of the disability in the manner
2prescribed by the chief county assessment officer. Proof that
3an applicant is eligible to receive disability benefits under
4the federal Social Security Act constitutes proof of disability
5for purposes of this Section. Issuance of an Illinois Disabled
6Person Identification Card to the applicant stating that the
7possessor is under a Class 2 disability, as defined in Section
84A of the Illinois Identification Card Act, constitutes proof
9that the person is a disabled person for purposes of this
10Section.
11 "Equalized assessed value" means the assessed value as
12equalized by the Illinois Department of Revenue.
13 "Household" means the applicant, the spouse of the
14applicant, and all persons using the residence of the applicant
15as their principal place of residence.
16 "Household income" means the combined income of the members
17of a household for the calendar year preceding the taxable
18year.
19 "Income" has the same meaning as provided in Section 3.07
20of the Senior Citizens and Disabled Persons Property Tax Relief
21Act, except that, beginning in assessment year 2001, "income"
22does not include veteran's benefits.
23 "Internal Revenue Code of 1986" means the United States
24Internal Revenue Code of 1986 or any successor law or laws
25relating to federal income taxes in effect for the year
26preceding the taxable year.

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1 "Life care facility that qualifies as a cooperative" means
2a facility as defined in Section 2 of the Life Care Facilities
3Act.
4 "Maximum income limitation" means:
5 (1) $35,000 prior to taxable year 1999;
6 (2) $40,000 in taxable years 1999 through 2003;
7 (3) $45,000 in taxable years 2004 through 2005;
8 (4) $50,000 in taxable years 2006 and 2007; and
9 (5) $55,000 in taxable year 2008 and thereafter.
10 "Residence" means the principal dwelling place and
11appurtenant structures used for residential purposes in this
12State occupied on January 1 of the taxable year by a household
13and so much of the surrounding land, constituting the parcel
14upon which the dwelling place is situated, as is used for
15residential purposes. If the Chief County Assessment Officer
16has established a specific legal description for a portion of
17property constituting the residence, then that portion of
18property shall be deemed the residence for the purposes of this
19Section.
20 "Taxable year" means the calendar year during which ad
21valorem property taxes payable in the next succeeding year are
22levied.
23 (c) Beginning in (1) taxable year 1994 for senior citizens
24and (2) taxable year 2015 for disabled persons, an a senior
25citizens assessment freeze homestead exemption is granted for
26real property that is improved with a permanent structure that

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

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1 (1) For an applicant who has a household income of
2 $45,000 or less, the amount of the exemption is the
3 equalized assessed value of the residence in the taxable
4 year for which application is made minus the base amount.
5 (2) For an applicant who has a household income
6 exceeding $45,000 but not exceeding $46,250, the amount of
7 the exemption is (i) the equalized assessed value of the
8 residence in the taxable year for which application is made
9 minus the base amount (ii) multiplied by 0.8.
10 (3) For an applicant who has a household income
11 exceeding $46,250 but not exceeding $47,500, the amount of
12 the exemption is (i) the equalized assessed value of the
13 residence in the taxable year for which application is made
14 minus the base amount (ii) multiplied by 0.6.
15 (4) For an applicant who has a household income
16 exceeding $47,500 but not exceeding $48,750, the amount of
17 the exemption is (i) the equalized assessed value of the
18 residence in the taxable year for which application is made
19 minus the base amount (ii) multiplied by 0.4.
20 (5) For an applicant who has a household income
21 exceeding $48,750 but not exceeding $50,000, the amount of
22 the exemption is (i) the equalized assessed value of the
23 residence in the taxable year for which application is made
24 minus the base amount (ii) multiplied by 0.2.
25 When the applicant is a surviving spouse of an applicant
26for a prior year for the same residence for which an exemption

HB4119- 22 -LRB099 07764 HLH 27897 b
1under this Section has been granted, the base year and base
2amount for that residence are the same as for the applicant for
3the prior year.
4 Each year at the time the assessment books are certified to
5the County Clerk, the Board of Review or Board of Appeals shall
6give to the County Clerk a list of the assessed values of
7improvements on each parcel qualifying for this exemption that
8were added after the base year for this parcel and that
9increased the assessed value of the property.
10 In the case of land improved with an apartment building
11owned and operated as a cooperative or a building that is a
12life care facility that qualifies as a cooperative, the maximum
13reduction from the equalized assessed value of the property is
14limited to the sum of the reductions calculated for each unit
15occupied as a residence by a person or persons (i) 65 years of
16age or older or by a disabled person or persons, (ii) with a
17household income that does not exceed the maximum income
18limitation, (iii) who is liable, by contract with the owner or
19owners of record, for paying real property taxes on the
20property, and (iv) who is an owner of record of a legal or
21equitable interest in the cooperative apartment building,
22other than a leasehold interest. In the instance of a
23cooperative where a homestead exemption has been granted under
24this Section, the cooperative association or its management
25firm shall credit the savings resulting from that exemption
26only to the apportioned tax liability of the owner who

HB4119- 23 -LRB099 07764 HLH 27897 b
1qualified for the exemption. Any person who willfully refuses
2to credit that savings to an owner who qualifies for the
3exemption is guilty of a Class B misdemeanor.
4 When a homestead exemption has been granted under this
5Section and an applicant then becomes a resident of a facility
6licensed under the Assisted Living and Shared Housing Act, the
7Nursing Home Care Act, the Specialized Mental Health
8Rehabilitation Act of 2013, or the ID/DD Community Care Act,
9the exemption shall be granted in subsequent years so long as
10the residence (i) continues to be occupied by the qualified
11applicant's spouse or (ii) if remaining unoccupied, is still
12owned by the qualified applicant for the homestead exemption.
13 Beginning January 1, 1997 for senior citizens and January
141, 2015 for disabled persons, when an individual dies who would
15have qualified for an exemption under this Section, and the
16surviving spouse does not independently qualify for this
17exemption because of age or nondisability, the exemption under
18this Section shall be granted to the surviving spouse for the
19taxable year preceding and the taxable year of the death,
20provided that, except for age or nondisability, the surviving
21spouse meets all other qualifications for the granting of this
22exemption for those years.
23 When married persons maintain separate residences, the
24exemption provided for in this Section may be claimed by only
25one of such persons and for only one residence.
26 For taxable year 1994 only, in counties having less than

HB4119- 24 -LRB099 07764 HLH 27897 b
13,000,000 inhabitants, to receive the exemption, a person shall
2submit an application by February 15, 1995 to the Chief County
3Assessment Officer of the county in which the property is
4located. In counties having 3,000,000 or more inhabitants, for
5taxable year 1994 and all subsequent taxable years, to receive
6the exemption, a person may submit an application to the Chief
7County Assessment Officer of the county in which the property
8is located during such period as may be specified by the Chief
9County Assessment Officer. The Chief County Assessment Officer
10in counties of 3,000,000 or more inhabitants shall annually
11give notice of the application period by mail or by
12publication. In counties having less than 3,000,000
13inhabitants, beginning with taxable year 1995 and thereafter,
14to receive the exemption, a person shall submit an application
15by July 1 of each taxable year to the Chief County Assessment
16Officer of the county in which the property is located. A
17county may, by ordinance, establish a date for submission of
18applications that is different than July 1. The applicant shall
19submit with the application an affidavit of the applicant's
20total household income, age, marital status (and if married the
21name and address of the applicant's spouse, if known),
22disability (if applying for the exemption as a disabled
23person), and principal dwelling place of members of the
24household on January 1 of the taxable year. The Department
25shall establish, by rule, a method for verifying the accuracy
26of affidavits filed by applicants under this Section, and the

HB4119- 25 -LRB099 07764 HLH 27897 b
1Chief County Assessment Officer may conduct audits of any
2taxpayer claiming an exemption under this Section to verify
3that the taxpayer is eligible to receive the exemption. Each
4application shall contain or be verified by a written
5declaration that it is made under the penalties of perjury. A
6taxpayer's signing a fraudulent application under this Act is
7perjury, as defined in Section 32-2 of the Criminal Code of
82012. The applications shall be clearly marked as applications
9for the Senior Citizens and Disabled Persons Assessment Freeze
10Homestead Exemption and must contain a notice that any taxpayer
11who receives the exemption is subject to an audit by the Chief
12County Assessment Officer.
13 Notwithstanding any other provision to the contrary, in
14counties having fewer than 3,000,000 inhabitants, if an
15applicant fails to file the application required by this
16Section in a timely manner and this failure to file is due to a
17mental or physical condition sufficiently severe so as to
18render the applicant incapable of filing the application in a
19timely manner, the Chief County Assessment Officer may extend
20the filing deadline for a period of 30 days after the applicant
21regains the capability to file the application, but in no case
22may the filing deadline be extended beyond 3 months of the
23original filing deadline. In order to receive the extension
24provided in this paragraph, the applicant shall provide the
25Chief County Assessment Officer with a signed statement from
26the applicant's physician stating the nature and extent of the

HB4119- 26 -LRB099 07764 HLH 27897 b
1condition, that, in the physician's opinion, the condition was
2so severe that it rendered the applicant incapable of filing
3the application in a timely manner, and the date on which the
4applicant regained the capability to file the application.
5 Beginning January 1, 1998, notwithstanding any other
6provision to the contrary, in counties having fewer than
73,000,000 inhabitants, if an applicant fails to file the
8application required by this Section in a timely manner and
9this failure to file is due to a mental or physical condition
10sufficiently severe so as to render the applicant incapable of
11filing the application in a timely manner, the Chief County
12Assessment Officer may extend the filing deadline for a period
13of 3 months. In order to receive the extension provided in this
14paragraph, the applicant shall provide the Chief County
15Assessment Officer with a signed statement from the applicant's
16physician stating the nature and extent of the condition, and
17that, in the physician's opinion, the condition was so severe
18that it rendered the applicant incapable of filing the
19application in a timely manner.
20 In counties having less than 3,000,000 inhabitants, if an
21applicant was denied an exemption in taxable year 1994 and the
22denial occurred due to an error on the part of an assessment
23official, or his or her agent or employee, then beginning in
24taxable year 1997 the applicant's base year, for purposes of
25determining the amount of the exemption, shall be 1993 rather
26than 1994. In addition, in taxable year 1997, the applicant's

HB4119- 27 -LRB099 07764 HLH 27897 b
1exemption shall also include an amount equal to (i) the amount
2of any exemption denied to the applicant in taxable year 1995
3as a result of using 1994, rather than 1993, as the base year,
4(ii) the amount of any exemption denied to the applicant in
5taxable year 1996 as a result of using 1994, rather than 1993,
6as the base year, and (iii) the amount of the exemption
7erroneously denied for taxable year 1994.
8 For purposes of this Section, a person who will be 65 years
9of age during the current taxable year or is a disabled person
10during the current taxable year shall be eligible to apply for
11the homestead exemption during that taxable year. Application
12shall be made during the application period in effect for the
13county of his or her residence.
14 The Chief County Assessment Officer may determine the
15eligibility of a life care facility that qualifies as a
16cooperative to receive the benefits provided by this Section by
17use of an affidavit, application, visual inspection,
18questionnaire, or other reasonable method in order to insure
19that the tax savings resulting from the exemption are credited
20by the management firm to the apportioned tax liability of each
21qualifying resident. The Chief County Assessment Officer may
22request reasonable proof that the management firm has so
23credited that exemption.
24 Except as provided in this Section, all information
25received by the chief county assessment officer or the
26Department from applications filed under this Section, or from

HB4119- 28 -LRB099 07764 HLH 27897 b
1any investigation conducted under the provisions of this
2Section, shall be confidential, except for official purposes or
3pursuant to official procedures for collection of any State or
4local tax or enforcement of any civil or criminal penalty or
5sanction imposed by this Act or by any statute or ordinance
6imposing a State or local tax. Any person who divulges any such
7information in any manner, except in accordance with a proper
8judicial order, is guilty of a Class A misdemeanor.
9 Nothing contained in this Section shall prevent the
10Director or chief county assessment officer from publishing or
11making available reasonable statistics concerning the
12operation of the exemption contained in this Section in which
13the contents of claims are grouped into aggregates in such a
14way that information contained in any individual claim shall
15not be disclosed.
16 (d) Each Chief County Assessment Officer shall annually
17publish a notice of availability of the exemption provided
18under this Section. The notice shall be published at least 60
19days but no more than 75 days prior to the date on which the
20application must be submitted to the Chief County Assessment
21Officer of the county in which the property is located. The
22notice shall appear in a newspaper of general circulation in
23the county.
24 Notwithstanding Sections 6 and 8 of the State Mandates Act,
25no reimbursement by the State is required for the
26implementation of any mandate created by this Section.

HB4119- 29 -LRB099 07764 HLH 27897 b
1(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
2eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
398-104, eff. 7-22-13.)
4 (35 ILCS 200/15-175)
5 Sec. 15-175. General homestead exemption.
6 (a) Except as provided in Sections 15-176 and 15-177,
7homestead property is entitled to an annual homestead exemption
8limited, except as described here with relation to
9cooperatives, to a reduction in the equalized assessed value of
10homestead property equal to the increase in equalized assessed
11value for the current assessment year above the equalized
12assessed value of the property for 1977, up to the maximum
13reduction set forth below. If however, the 1977 equalized
14assessed value upon which taxes were paid is subsequently
15determined by local assessing officials, the Property Tax
16Appeal Board, or a court to have been excessive, the equalized
17assessed value which should have been placed on the property
18for 1977 shall be used to determine the amount of the
19exemption.
20 (b) Except as provided in Section 15-176, the maximum
21reduction before taxable year 2004 shall be $4,500 in counties
22with 3,000,000 or more inhabitants and $3,500 in all other
23counties. Except as provided in Sections 15-176 and 15-177, for
24taxable years 2004 through 2007, the maximum reduction shall be
25$5,000, for taxable year 2008, the maximum reduction is $5,500,

HB4119- 30 -LRB099 07764 HLH 27897 b
1and, for taxable years 2009 through 2011, the maximum reduction
2is $6,000 in all counties. For taxable years 2012 and
3thereafter, the maximum reduction is $7,000 in counties with
43,000,000 or more inhabitants and $6,000 in all other counties.
5If a county has elected to subject itself to the provisions of
6Section 15-176 as provided in subsection (k) of that Section,
7then, for the first taxable year only after the provisions of
8Section 15-176 no longer apply, for owners who, for the taxable
9year, have not been granted a senior citizens and disabled
10persons assessment freeze homestead exemption under Section
1115-172 or a long-time occupant homestead exemption under
12Section 15-177, there shall be an additional exemption of
13$5,000 for owners with a household income of $30,000 or less.
14 (c) In counties with fewer than 3,000,000 inhabitants, if,
15based on the most recent assessment, the equalized assessed
16value of the homestead property for the current assessment year
17is greater than the equalized assessed value of the property
18for 1977, the owner of the property shall automatically receive
19the exemption granted under this Section in an amount equal to
20the increase over the 1977 assessment up to the maximum
21reduction set forth in this Section.
22 (d) If in any assessment year beginning with the 2000
23assessment year, homestead property has a pro-rata valuation
24under Section 9-180 resulting in an increase in the assessed
25valuation, a reduction in equalized assessed valuation equal to
26the increase in equalized assessed value of the property for

HB4119- 31 -LRB099 07764 HLH 27897 b
1the year of the pro-rata valuation above the equalized assessed
2value of the property for 1977 shall be applied to the property
3on a proportionate basis for the period the property qualified
4as homestead property during the assessment year. The maximum
5proportionate homestead exemption shall not exceed the maximum
6homestead exemption allowed in the county under this Section
7divided by 365 and multiplied by the number of days the
8property qualified as homestead property.
9 (e) The chief county assessment officer may, when
10considering whether to grant a leasehold exemption under this
11Section, require the following conditions to be met:
12 (1) that a notarized application for the exemption,
13 signed by both the owner and the lessee of the property,
14 must be submitted each year during the application period
15 in effect for the county in which the property is located;
16 (2) that a copy of the lease must be filed with the
17 chief county assessment officer by the owner of the
18 property at the time the notarized application is
19 submitted;
20 (3) that the lease must expressly state that the lessee
21 is liable for the payment of property taxes; and
22 (4) that the lease must include the following language
23 in substantially the following form:
24 "Lessee shall be liable for the payment of real
25 estate taxes with respect to the residence in
26 accordance with the terms and conditions of Section

HB4119- 32 -LRB099 07764 HLH 27897 b
1 15-175 of the Property Tax Code (35 ILCS 200/15-175).
2 The permanent real estate index number for the premises
3 is (insert number), and, according to the most recent
4 property tax bill, the current amount of real estate
5 taxes associated with the premises is (insert amount)
6 per year. The parties agree that the monthly rent set
7 forth above shall be increased or decreased pro rata
8 (effective January 1 of each calendar year) to reflect
9 any increase or decrease in real estate taxes. Lessee
10 shall be deemed to be satisfying Lessee's liability for
11 the above mentioned real estate taxes with the monthly
12 rent payments as set forth above (or increased or
13 decreased as set forth herein).".
14 In addition, if there is a change in lessee, or if the
15lessee vacates the property, then the chief county assessment
16officer may require the owner of the property to notify the
17chief county assessment officer of that change.
18 This subsection (e) does not apply to leasehold interests
19in property owned by a municipality.
20 (f) "Homestead property" under this Section includes
21residential property that is occupied by its owner or owners as
22his or their principal dwelling place, or that is a leasehold
23interest on which a single family residence is situated, which
24is occupied as a residence by a person who has an ownership
25interest therein, legal or equitable or as a lessee, and on
26which the person is liable for the payment of property taxes.

HB4119- 33 -LRB099 07764 HLH 27897 b
1For land improved with an apartment building owned and operated
2as a cooperative or a building which is a life care facility as
3defined in Section 15-170 and considered to be a cooperative
4under Section 15-170, the maximum reduction from the equalized
5assessed value shall be limited to the increase in the value
6above the equalized assessed value of the property for 1977, up
7to the maximum reduction set forth above, multiplied by the
8number of apartments or units occupied by a person or persons
9who is liable, by contract with the owner or owners of record,
10for paying property taxes on the property and is an owner of
11record of a legal or equitable interest in the cooperative
12apartment building, other than a leasehold interest. For
13purposes of this Section, the term "life care facility" has the
14meaning stated in Section 15-170.
15 "Household", as used in this Section, means the owner, the
16spouse of the owner, and all persons using the residence of the
17owner as their principal place of residence.
18 "Household income", as used in this Section, means the
19combined income of the members of a household for the calendar
20year preceding the taxable year.
21 "Income", as used in this Section, has the same meaning as
22provided in Section 3.07 of the Senior Citizens and Disabled
23Persons Property Tax Relief Act, except that "income" does not
24include veteran's benefits.
25 (g) In a cooperative where a homestead exemption has been
26granted, the cooperative association or its management firm

HB4119- 34 -LRB099 07764 HLH 27897 b
1shall credit the savings resulting from that exemption only to
2the apportioned tax liability of the owner who qualified for
3the exemption. Any person who willfully refuses to so credit
4the savings shall be guilty of a Class B misdemeanor.
5 (h) Where married persons maintain and reside in separate
6residences qualifying as homestead property, each residence
7shall receive 50% of the total reduction in equalized assessed
8valuation provided by this Section.
9 (i) In all counties, the assessor or chief county
10assessment officer may determine the eligibility of
11residential property to receive the homestead exemption and the
12amount of the exemption by application, visual inspection,
13questionnaire or other reasonable methods. The determination
14shall be made in accordance with guidelines established by the
15Department, provided that the taxpayer applying for an
16additional general exemption under this Section shall submit to
17the chief county assessment officer an application with an
18affidavit of the applicant's total household income, age,
19marital status (and, if married, the name and address of the
20applicant's spouse, if known), and principal dwelling place of
21members of the household on January 1 of the taxable year. The
22Department shall issue guidelines establishing a method for
23verifying the accuracy of the affidavits filed by applicants
24under this paragraph. The applications shall be clearly marked
25as applications for the Additional General Homestead
26Exemption.

HB4119- 35 -LRB099 07764 HLH 27897 b
1 (j) In counties with fewer than 3,000,000 inhabitants, in
2the event of a sale of homestead property the homestead
3exemption shall remain in effect for the remainder of the
4assessment year of the sale. The assessor or chief county
5assessment officer may require the new owner of the property to
6apply for the homestead exemption for the following assessment
7year.
8 (k) Notwithstanding Sections 6 and 8 of the State Mandates
9Act, no reimbursement by the State is required for the
10implementation of any mandate created by this Section.
11(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
1298-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
13 Section 99. Effective date. This Act takes effect upon
14becoming law.
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