Bill Text: IL HB5953 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, if a taxpayer must have an income that is at or below a certain amount in order to qualify for an exemption, then, for the purposes of that exemption, the term "income" does not include Social Security benefits unless expressly stated otherwise. Effective immediately.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5953 Detail]

Download: Illinois-2013-HB5953-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB5953 Introduced , by Rep. Sandra M. Pihos SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-7 new
35 ILCS 200/15-172
35 ILCS 200/15-175
35 ILCS 200/15-177
Amends the Property Tax Code. Provides that, if a taxpayer must have an income that is at or below a certain amount in order to qualify for an exemption, then, for the purposes of that exemption, the term "income" does not include Social Security benefits unless expressly stated otherwise. Effective immediately.
LRB098 16995 HLH 52077 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB5953 LRB098 16995 HLH 52077 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-172, 15-175, and 15-177 and by adding Section 15-7
as follows:
(35 ILCS 200/15-7 new)
Sec. 15-7. Income limits; Social Security. Beginning with
the 2014 assessment year, if, in order to qualify for an
exemption under this Article 15, the taxpayer must have an
income that is at or below a certain amount, then, for the
purposes of that exemption, the term "income" does not include
any Social Security benefit unless expressly stated otherwise
in this Code.
(35 ILCS 200/15-172)
Sec. 15-172. Senior Citizens Assessment Freeze Homestead
Exemption.
(a) This Section may be cited as the Senior Citizens
Assessment Freeze Homestead Exemption.
(b) As used in this Section:
"Applicant" means an individual who has filed an
application under this Section.

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"Base amount" means the base year equalized assessed value
of the residence plus the first year's equalized assessed value
of any added improvements which increased the assessed value of
the residence after the base year.
"Base year" means the taxable year prior to the taxable
year for which the applicant first qualifies and applies for
the exemption provided that in the prior taxable year the
property was improved with a permanent structure that was
occupied as a residence by the applicant who was liable for
paying real property taxes on the property and who was either
(i) an owner of record of the property or had legal or
equitable interest in the property as evidenced by a written
instrument or (ii) had a legal or equitable interest as a
lessee in the parcel of property that was single family
residence. If in any subsequent taxable year for which the
applicant applies and qualifies for the exemption the equalized
assessed value of the residence is less than the equalized
assessed value in the existing base year (provided that such
equalized assessed value is not based on an assessed value that
results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years), then
that subsequent taxable year shall become the base year until a
new base year is established under the terms of this paragraph.
For taxable year 1999 only, the Chief County Assessment Officer
shall review (i) all taxable years for which the applicant
applied and qualified for the exemption and (ii) the existing

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base year. The assessment officer shall select as the new base
year the year with the lowest equalized assessed value. An
equalized assessed value that is based on an assessed value
that results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years shall
not be considered the lowest equalized assessed value. The
selected year shall be the base year for taxable year 1999 and
thereafter until a new base year is established under the terms
of this paragraph.
"Chief County Assessment Officer" means the County
Assessor or Supervisor of Assessments of the county in which
the property is located.
"Equalized assessed value" means the assessed value as
equalized by the Illinois Department of Revenue.
"Household" means the applicant, the spouse of the
applicant, and all persons using the residence of the applicant
as their principal place of residence.
"Household income" means the combined income of the members
of a household for the calendar year preceding the taxable
year.
"Income" has the same meaning as provided in Section 3.07
of the Senior Citizens and Disabled Persons Property Tax Relief
Act, except that, beginning in assessment year 2001, "income"
does not include veteran's benefits, and, beginning in
assessment year 2014, "income" does not include Social Security
benefits.

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"Internal Revenue Code of 1986" means the United States
Internal Revenue Code of 1986 or any successor law or laws
relating to federal income taxes in effect for the year
preceding the taxable year.
"Life care facility that qualifies as a cooperative" means
a facility as defined in Section 2 of the Life Care Facilities
Act.
"Maximum income limitation" means:
(1) $35,000 prior to taxable year 1999;
(2) $40,000 in taxable years 1999 through 2003;
(3) $45,000 in taxable years 2004 through 2005;
(4) $50,000 in taxable years 2006 and 2007; and
(5) $55,000 in taxable year 2008 and thereafter.
"Residence" means the principal dwelling place and
appurtenant structures used for residential purposes in this
State occupied on January 1 of the taxable year by a household
and so much of the surrounding land, constituting the parcel
upon which the dwelling place is situated, as is used for
residential purposes. If the Chief County Assessment Officer
has established a specific legal description for a portion of
property constituting the residence, then that portion of
property shall be deemed the residence for the purposes of this
Section.
"Taxable year" means the calendar year during which ad
valorem property taxes payable in the next succeeding year are
levied.

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(c) Beginning in taxable year 1994, a senior citizens
assessment freeze homestead exemption is granted for real
property that is improved with a permanent structure that is
occupied as a residence by an applicant who (i) is 65 years of
age or older during the taxable year, (ii) has a household
income that does not exceed the maximum income limitation,
(iii) is liable for paying real property taxes on the property,
and (iv) is an owner of record of the property or has a legal or
equitable interest in the property as evidenced by a written
instrument. This homestead exemption shall also apply to a
leasehold interest in a parcel of property improved with a
permanent structure that is a single family residence that is
occupied as a residence by a person who (i) is 65 years of age
or older during the taxable year, (ii) has a household income
that does not exceed the maximum income limitation, (iii) has a
legal or equitable ownership interest in the property as
lessee, and (iv) is liable for the payment of real property
taxes on that property.
In counties of 3,000,000 or more inhabitants, the amount of
the exemption for all taxable years is the equalized assessed
value of the residence in the taxable year for which
application is made minus the base amount. In all other
counties, the amount of the exemption is as follows: (i)
through taxable year 2005 and for taxable year 2007 and
thereafter, the amount of this exemption shall be the equalized
assessed value of the residence in the taxable year for which

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application is made minus the base amount; and (ii) for taxable
year 2006, the amount of the exemption is as follows:
(1) For an applicant who has a household income of
$45,000 or less, the amount of the exemption is the
equalized assessed value of the residence in the taxable
year for which application is made minus the base amount.
(2) For an applicant who has a household income
exceeding $45,000 but not exceeding $46,250, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.8.
(3) For an applicant who has a household income
exceeding $46,250 but not exceeding $47,500, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.6.
(4) For an applicant who has a household income
exceeding $47,500 but not exceeding $48,750, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.4.
(5) For an applicant who has a household income
exceeding $48,750 but not exceeding $50,000, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.2.

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When the applicant is a surviving spouse of an applicant
for a prior year for the same residence for which an exemption
under this Section has been granted, the base year and base
amount for that residence are the same as for the applicant for
the prior year.
Each year at the time the assessment books are certified to
the County Clerk, the Board of Review or Board of Appeals shall
give to the County Clerk a list of the assessed values of
improvements on each parcel qualifying for this exemption that
were added after the base year for this parcel and that
increased the assessed value of the property.
In the case of land improved with an apartment building
owned and operated as a cooperative or a building that is a
life care facility that qualifies as a cooperative, the maximum
reduction from the equalized assessed value of the property is
limited to the sum of the reductions calculated for each unit
occupied as a residence by a person or persons (i) 65 years of
age or older, (ii) with a household income that does not exceed
the maximum income limitation, (iii) who is liable, by contract
with the owner or owners of record, for paying real property
taxes on the property, and (iv) who is an owner of record of a
legal or equitable interest in the cooperative apartment
building, other than a leasehold interest. In the instance of a
cooperative where a homestead exemption has been granted under
this Section, the cooperative association or its management
firm shall credit the savings resulting from that exemption

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only to the apportioned tax liability of the owner who
qualified for the exemption. Any person who willfully refuses
to credit that savings to an owner who qualifies for the
exemption is guilty of a Class B misdemeanor.
When a homestead exemption has been granted under this
Section and an applicant then becomes a resident of a facility
licensed under the Assisted Living and Shared Housing Act, the
Nursing Home Care Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the ID/DD Community Care Act,
the exemption shall be granted in subsequent years so long as
the residence (i) continues to be occupied by the qualified
applicant's spouse or (ii) if remaining unoccupied, is still
owned by the qualified applicant for the homestead exemption.
Beginning January 1, 1997, when an individual dies who
would have qualified for an exemption under this Section, and
the surviving spouse does not independently qualify for this
exemption because of age, the exemption under this Section
shall be granted to the surviving spouse for the taxable year
preceding and the taxable year of the death, provided that,
except for age, the surviving spouse meets all other
qualifications for the granting of this exemption for those
years.
When married persons maintain separate residences, the
exemption provided for in this Section may be claimed by only
one of such persons and for only one residence.
For taxable year 1994 only, in counties having less than

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3,000,000 inhabitants, to receive the exemption, a person shall
submit an application by February 15, 1995 to the Chief County
Assessment Officer of the county in which the property is
located. In counties having 3,000,000 or more inhabitants, for
taxable year 1994 and all subsequent taxable years, to receive
the exemption, a person may submit an application to the Chief
County Assessment Officer of the county in which the property
is located during such period as may be specified by the Chief
County Assessment Officer. The Chief County Assessment Officer
in counties of 3,000,000 or more inhabitants shall annually
give notice of the application period by mail or by
publication. In counties having less than 3,000,000
inhabitants, beginning with taxable year 1995 and thereafter,
to receive the exemption, a person shall submit an application
by July 1 of each taxable year to the Chief County Assessment
Officer of the county in which the property is located. A
county may, by ordinance, establish a date for submission of
applications that is different than July 1. The applicant shall
submit with the application an affidavit of the applicant's
total household income, age, marital status (and if married the
name and address of the applicant's spouse, if known), and
principal dwelling place of members of the household on January
1 of the taxable year. The Department shall establish, by rule,
a method for verifying the accuracy of affidavits filed by
applicants under this Section, and the Chief County Assessment
Officer may conduct audits of any taxpayer claiming an

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exemption under this Section to verify that the taxpayer is
eligible to receive the exemption. Each application shall
contain or be verified by a written declaration that it is made
under the penalties of perjury. A taxpayer's signing a
fraudulent application under this Act is perjury, as defined in
Section 32-2 of the Criminal Code of 2012. The applications
shall be clearly marked as applications for the Senior Citizens
Assessment Freeze Homestead Exemption and must contain a notice
that any taxpayer who receives the exemption is subject to an
audit by the Chief County Assessment Officer.
Notwithstanding any other provision to the contrary, in
counties having fewer than 3,000,000 inhabitants, if an
applicant fails to file the application required by this
Section in a timely manner and this failure to file is due to a
mental or physical condition sufficiently severe so as to
render the applicant incapable of filing the application in a
timely manner, the Chief County Assessment Officer may extend
the filing deadline for a period of 30 days after the applicant
regains the capability to file the application, but in no case
may the filing deadline be extended beyond 3 months of the
original filing deadline. In order to receive the extension
provided in this paragraph, the applicant shall provide the
Chief County Assessment Officer with a signed statement from
the applicant's physician stating the nature and extent of the
condition, that, in the physician's opinion, the condition was
so severe that it rendered the applicant incapable of filing

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the application in a timely manner, and the date on which the
applicant regained the capability to file the application.
Beginning January 1, 1998, notwithstanding any other
provision to the contrary, in counties having fewer than
3,000,000 inhabitants, if an applicant fails to file the
application required by this Section in a timely manner and
this failure to file is due to a mental or physical condition
sufficiently severe so as to render the applicant incapable of
filing the application in a timely manner, the Chief County
Assessment Officer may extend the filing deadline for a period
of 3 months. In order to receive the extension provided in this
paragraph, the applicant shall provide the Chief County
Assessment Officer with a signed statement from the applicant's
physician stating the nature and extent of the condition, and
that, in the physician's opinion, the condition was so severe
that it rendered the applicant incapable of filing the
application in a timely manner.
In counties having less than 3,000,000 inhabitants, if an
applicant was denied an exemption in taxable year 1994 and the
denial occurred due to an error on the part of an assessment
official, or his or her agent or employee, then beginning in
taxable year 1997 the applicant's base year, for purposes of
determining the amount of the exemption, shall be 1993 rather
than 1994. In addition, in taxable year 1997, the applicant's
exemption shall also include an amount equal to (i) the amount
of any exemption denied to the applicant in taxable year 1995

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

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local tax or enforcement of any civil or criminal penalty or
sanction imposed by this Act or by any statute or ordinance
imposing a State or local tax. Any person who divulges any such
information in any manner, except in accordance with a proper
judicial order, is guilty of a Class A misdemeanor.
Nothing contained in this Section shall prevent the
Director or chief county assessment officer from publishing or
making available reasonable statistics concerning the
operation of the exemption contained in this Section in which
the contents of claims are grouped into aggregates in such a
way that information contained in any individual claim shall
not be disclosed.
(d) Each Chief County Assessment Officer shall annually
publish a notice of availability of the exemption provided
under this Section. The notice shall be published at least 60
days but no more than 75 days prior to the date on which the
application must be submitted to the Chief County Assessment
Officer of the county in which the property is located. The
notice shall appear in a newspaper of general circulation in
the county.
Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
98-104, eff. 7-22-13.)

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

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3,000,000 or more inhabitants and $6,000 in all other counties.
If a county has elected to subject itself to the provisions of
Section 15-176 as provided in subsection (k) of that Section,
then, for the first taxable year only after the provisions of
Section 15-176 no longer apply, for owners who, for the taxable
year, have not been granted a senior citizens assessment freeze
homestead exemption under Section 15-172 or a long-time
occupant homestead exemption under Section 15-177, there shall
be an additional exemption of $5,000 for owners with a
household income of $30,000 or less.
(c) In counties with fewer than 3,000,000 inhabitants, if,
based on the most recent assessment, the equalized assessed
value of the homestead property for the current assessment year
is greater than the equalized assessed value of the property
for 1977, the owner of the property shall automatically receive
the exemption granted under this Section in an amount equal to
the increase over the 1977 assessment up to the maximum
reduction set forth in this Section.
(d) If in any assessment year beginning with the 2000
assessment year, homestead property has a pro-rata valuation
under Section 9-180 resulting in an increase in the assessed
valuation, a reduction in equalized assessed valuation equal to
the increase in equalized assessed value of the property for
the year of the pro-rata valuation above the equalized assessed
value of the property for 1977 shall be applied to the property
on a proportionate basis for the period the property qualified

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as homestead property during the assessment year. The maximum
proportionate homestead exemption shall not exceed the maximum
homestead exemption allowed in the county under this Section
divided by 365 and multiplied by the number of days the
property qualified as homestead property.
(e) The chief county assessment officer may, when
considering whether to grant a leasehold exemption under this
Section, require the following conditions to be met:
(1) that a notarized application for the exemption,
signed by both the owner and the lessee of the property,
must be submitted each year during the application period
in effect for the county in which the property is located;
(2) that a copy of the lease must be filed with the
chief county assessment officer by the owner of the
property at the time the notarized application is
submitted;
(3) that the lease must expressly state that the lessee
is liable for the payment of property taxes; and
(4) that the lease must include the following language
in substantially the following form:
"Lessee shall be liable for the payment of real
estate taxes with respect to the residence in
accordance with the terms and conditions of Section
15-175 of the Property Tax Code (35 ILCS 200/15-175).
The permanent real estate index number for the premises
is (insert number), and, according to the most recent

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property tax bill, the current amount of real estate
taxes associated with the premises is (insert amount)
per year. The parties agree that the monthly rent set
forth above shall be increased or decreased pro rata
(effective January 1 of each calendar year) to reflect
any increase or decrease in real estate taxes. Lessee
shall be deemed to be satisfying Lessee's liability for
the above mentioned real estate taxes with the monthly
rent payments as set forth above (or increased or
decreased as set forth herein).".
In addition, if there is a change in lessee, or if the
lessee vacates the property, then the chief county assessment
officer may require the owner of the property to notify the
chief county assessment officer of that change.
This subsection (e) does not apply to leasehold interests
in property owned by a municipality.
(f) "Homestead property" under this Section includes
residential property that is occupied by its owner or owners as
his or their principal dwelling place, or that is a leasehold
interest on which a single family residence is situated, which
is occupied as a residence by a person who has an ownership
interest therein, legal or equitable or as a lessee, and on
which the person is liable for the payment of property taxes.
For land improved with an apartment building owned and operated
as a cooperative or a building which is a life care facility as
defined in Section 15-170 and considered to be a cooperative

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under Section 15-170, the maximum reduction from the equalized
assessed value shall be limited to the increase in the value
above the equalized assessed value of the property for 1977, up
to the maximum reduction set forth above, multiplied by the
number of apartments or units occupied by a person or persons
who is liable, by contract with the owner or owners of record,
for paying property taxes on the property and is an owner of
record of a legal or equitable interest in the cooperative
apartment building, other than a leasehold interest. For
purposes of this Section, the term "life care facility" has the
meaning stated in Section 15-170.
"Household", as used in this Section, means the owner, the
spouse of the owner, and all persons using the residence of the
owner as their principal place of residence.
"Household income", as used in this Section, means the
combined income of the members of a household for the calendar
year preceding the taxable year.
"Income", as used in this Section, has the same meaning as
provided in Section 3.07 of the Senior Citizens and Disabled
Persons Property Tax Relief Act, except that "income" does not
include veteran's benefits, and, beginning in assessment year
2014, "income" does not include Social Security benefits.
(g) In a cooperative where a homestead exemption has been
granted, the cooperative association or its management firm
shall credit the savings resulting from that exemption only to
the apportioned tax liability of the owner who qualified for

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the exemption. Any person who willfully refuses to so credit
the savings shall be guilty of a Class B misdemeanor.
(h) Where married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
(i) In all counties, the assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption and the
amount of the exemption by application, visual inspection,
questionnaire or other reasonable methods. The determination
shall be made in accordance with guidelines established by the
Department, provided that the taxpayer applying for an
additional general exemption under this Section shall submit to
the chief county assessment officer an application with an
affidavit of the applicant's total household income, age,
marital status (and, if married, the name and address of the
applicant's spouse, if known), and principal dwelling place of
members of the household on January 1 of the taxable year. The
Department shall issue guidelines establishing a method for
verifying the accuracy of the affidavits filed by applicants
under this paragraph. The applications shall be clearly marked
as applications for the Additional General Homestead
Exemption.
(j) In counties with fewer than 3,000,000 inhabitants, in
the event of a sale of homestead property the homestead

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exemption shall remain in effect for the remainder of the
assessment year of the sale. The assessor or chief county
assessment officer may require the new owner of the property to
apply for the homestead exemption for the following assessment
year.
(k) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
98-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
(35 ILCS 200/15-177)
Sec. 15-177. The long-time occupant homestead exemption.
(a) If the county has elected, under Section 15-176, to be
subject to the provisions of the alternative general homestead
exemption, then, for taxable years 2007 and thereafter,
regardless of whether the exemption under Section 15-176
applies, qualified homestead property is entitled to an annual
homestead exemption equal to a reduction in the property's
equalized assessed value calculated as provided in this
Section.
(b) As used in this Section:
"Adjusted homestead value" means the lesser of the
following values:
(1) The property's base homestead value increased by:
(i) 10% for each taxable year after the base year through

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and including the current tax year for qualified taxpayers
with a household income of more than $75,000 but not
exceeding $100,000; or (ii) 7% for each taxable year after
the base year through and including the current tax year
for qualified taxpayers with a household income of $75,000
or less. The increase each year is an increase over the
prior year; or
(2) The property's equalized assessed value for the
current tax year minus the general homestead deduction.
"Base homestead value" means:
(1) if the property did not have an adjusted homestead
value under Section 15-176 for the base year, then an
amount equal to the equalized assessed value of the
property for the base year prior to exemptions, minus the
general homestead deduction, provided that the property's
assessment was not based on a reduced assessed value
resulting from a temporary irregularity in the property for
that year; or
(2) if the property had an adjusted homestead value
under Section 15-176 for the base year, then an amount
equal to the adjusted homestead value of the property under
Section 15-176 for the base year.
"Base year" means the taxable year prior to the taxable
year in which the taxpayer first qualifies for the exemption
under this Section.
"Current taxable year" means the taxable year for which the

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exemption under this Section is being applied.
"Equalized assessed value" means the property's assessed
value as equalized by the Department.
"Homestead" or "homestead property" means residential
property that as of January 1 of the tax year is occupied by a
qualified taxpayer as his or her principal dwelling place, or
that is a leasehold interest on which a single family residence
is situated, that is occupied as a residence by a qualified
taxpayer who has a legal or equitable interest therein
evidenced by a written instrument, as an owner or as a lessee,
and on which the person is liable for the payment of property
taxes. Residential units in an apartment building owned and
operated as a cooperative, or as a life care facility, which
are occupied by persons who hold a legal or equitable interest
in the cooperative apartment building or life care facility as
owners or lessees, and who are liable by contract for the
payment of property taxes, are included within this definition
of homestead property. A homestead includes the dwelling place,
appurtenant structures, and so much of the surrounding land
constituting the parcel on which the dwelling place is situated
as is used for residential purposes. If the assessor has
established a specific legal description for a portion of
property constituting the homestead, then the homestead is
limited to the property within that description.
"Household income" has the meaning set forth under Section
15-172 of this Code. Beginning in assessment year 2014,

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"household income" does not include Social Security benefits.
"General homestead deduction" means the amount of the
general homestead exemption under Section 15-175.
"Life care facility" means a facility defined in Section 2
of the Life Care Facilities Act.
"Qualified homestead property" means homestead property
owned by a qualified taxpayer.
"Qualified taxpayer" means any individual:
(1) who, for at least 10 continuous years as of January
1 of the taxable year, has occupied the same homestead
property as a principal residence and domicile or who, for
at least 5 continuous years as of January 1 of the taxable
year, has occupied the same homestead property as a
principal residence and domicile if that person received
assistance in the acquisition of the property as part of a
government or nonprofit housing program; and
(2) who has a household income of $100,000 or less.
(c) The base homestead value must remain constant, except
that the assessor may revise it under any of the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the previous
base homestead value for that property, then the current
equalized assessed value (provided it is not based on a
reduced assessed value resulting from a temporary
irregularity in the property) becomes the base homestead

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value in subsequent tax years.
(2) For any year in which new buildings, structures, or
other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value with due
regard to the value added by the new improvements.
(d) The amount of the exemption under this Section is the
greater of: (i) the equalized assessed value of the homestead
property for the current tax year minus the adjusted homestead
value; or (ii) the general homestead deduction.
(e) In the case of an apartment building owned and operated
as a cooperative, or as a life care facility, that contains
residential units that qualify as homestead property of a
qualified taxpayer under this Section, the maximum cumulative
exemption amount attributed to the entire building or facility
shall not exceed the sum of the exemptions calculated for each
unit that is a qualified homestead property. The cooperative
association, management firm, or other person or entity that
manages or controls the cooperative apartment building or life
care facility shall credit the exemption attributable to each
residential unit only to the apportioned tax liability of the
qualified taxpayer as to that unit. Any person who willfully
refuses to so credit the exemption is guilty of a Class B
misdemeanor.
(f) When married persons maintain separate residences, the
exemption provided under this Section may be claimed by only

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one such person and for only one residence. No person who
receives an exemption under Section 15-172 of this Code may
receive an exemption under this Section. No person who receives
an exemption under this Section may receive an exemption under
Section 15-175 or 15-176 of this Code.
(g) In the event of a sale or other transfer in ownership
of the homestead property between spouses or between a parent
and a child, the exemption under this Section remains in effect
if the new owner has a household income of $100,000 or less.
(h) In the event of a sale or other transfer in ownership
of the homestead property other than subsection (g) of this
Section, the exemption under this Section shall remain in
effect for the remainder of the tax year and be calculated
using the same base homestead value in which the sale or
transfer occurs.
(i) To receive the exemption, a person must submit an
application to the county assessor during the period specified
by the county assessor.
The county assessor shall annually give notice of the
application period by mail or by publication.
The taxpayer must submit, with the application, an
affidavit of the taxpayer's total household income, marital
status (and if married the name and address of the applicant's
spouse, if known), and principal dwelling place of members of
the household on January 1 of the taxable year. The Department
shall establish, by rule, a method for verifying the accuracy

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of affidavits filed by applicants under this Section, and the
Chief County Assessment Officer may conduct audits of any
taxpayer claiming an exemption under this Section to verify
that the taxpayer is eligible to receive the exemption. Each
application shall contain or be verified by a written
declaration that it is made under the penalties of perjury. A
taxpayer's signing a fraudulent application under this Act is
perjury, as defined in Section 32-2 of the Criminal Code of
2012. The applications shall be clearly marked as applications
for the Long-time Occupant Homestead Exemption and must contain
a notice that any taxpayer who receives the exemption is
subject to an audit by the Chief County Assessment Officer.
(j) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 97-1150, eff. 1-25-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.