Bill Text: IL SB0473 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Direct Pay Permit Implementation Act. Makes a technical change in a Section creating the direct pay permit pilot program.

Spectrum: Partisan Bill (Democrat 41-2)

Status: (Enrolled) 2017-05-31 - Passed Both Houses [SB0473 Detail]

Download: Illinois-2017-SB0473-Enrolled.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Sections 15-170, 15-172, and 15-175 as follows:
6 (35 ILCS 200/15-170)
7 Sec. 15-170. Senior Citizens Homestead Exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500. For taxable years 2008 through 2011,
4the maximum reduction is $4,000 in all counties. For taxable
5year 2012, the maximum reduction is $5,000 in counties with
63,000,000 or more inhabitants and $4,000 in all other counties.
7For taxable years 2013 through 2016 and thereafter, the maximum
8reduction is $5,000 in all counties. For taxable years 2017 and
9thereafter, the maximum reduction is $8,000 in counties with
103,000,000 or more inhabitants and $5,000 in all other counties.
11 For land improved with an apartment building owned and
12operated as a cooperative, the maximum reduction from the value
13of the property, as equalized by the Department, shall be
14multiplied by the number of apartments or units occupied by a
15person 65 years of age or older who is liable, by contract with
16the owner or owners of record, for paying property taxes on the
17property and is an owner of record of a legal or equitable
18interest in the cooperative apartment building, other than a
19leasehold interest. For land improved with a life care
20facility, the maximum reduction from the value of the property,
21as equalized by the Department, shall be multiplied by the
22number of apartments or units occupied by persons 65 years of
23age or older, irrespective of any legal, equitable, or
24leasehold interest in the facility, who are liable, under a
25contract with the owner or owners of record of the facility,
26for paying property taxes on the property. In a cooperative or

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1a life care facility where a homestead exemption has been
2granted, the cooperative association or the management firm of
3the cooperative or facility shall credit the savings resulting
4from that exemption only to the apportioned tax liability of
5the owner or resident who qualified for the exemption. Any
6person who willfully refuses to so credit the savings shall be
7guilty of a Class B misdemeanor. Under this Section and
8Sections 15-175, 15-176, and 15-177, "life care facility" means
9a facility, as defined in Section 2 of the Life Care Facilities
10Act, with which the applicant for the homestead exemption has a
11life care contract as defined in that Act.
12 When a homestead exemption has been granted under this
13Section and the person qualifying subsequently becomes a
14resident of a facility licensed under the Assisted Living and
15Shared Housing Act, the Nursing Home Care Act, the Specialized
16Mental Health Rehabilitation Act of 2013, the ID/DD Community
17Care Act, or the MC/DD Act, the exemption shall continue so
18long as the residence continues to be occupied by the
19qualifying person's spouse if the spouse is 65 years of age or
20older, or if the residence remains unoccupied but is still
21owned by the person qualified for the homestead exemption.
22 A person who will be 65 years of age during the current
23assessment year shall be eligible to apply for the homestead
24exemption during that assessment year. Application shall be
25made during the application period in effect for the county of
26his residence.

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1 Beginning with assessment year 2003, for taxes payable in
22004, property that is first occupied as a residence after
3January 1 of any assessment year by a person who is eligible
4for the senior citizens homestead exemption under this Section
5must be granted a pro-rata exemption for the assessment year.
6The amount of the pro-rata exemption is the exemption allowed
7in the county under this Section divided by 365 and multiplied
8by the number of days during the assessment year the property
9is occupied as a residence by a person eligible for the
10exemption under this Section. The chief county assessment
11officer must adopt reasonable procedures to establish
12eligibility for this pro-rata exemption.
13 The assessor or chief county assessment officer may
14determine the eligibility of a life care facility to receive
15the benefits provided by this Section, by affidavit,
16application, visual inspection, questionnaire or other
17reasonable methods in order to insure that the tax savings
18resulting from the exemption are credited by the management
19firm to the apportioned tax liability of each qualifying
20resident. The assessor may request reasonable proof that the
21management firm has so credited the exemption.
22 The chief county assessment officer of each county with
23less than 3,000,000 inhabitants shall provide to each person
24allowed a homestead exemption under this Section a form to
25designate any other person to receive a duplicate of any notice
26of delinquency in the payment of taxes assessed and levied

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1under this Code on the property of the person receiving the
2exemption. The duplicate notice shall be in addition to the
3notice required to be provided to the person receiving the
4exemption, and shall be given in the manner required by this
5Code. The person filing the request for the duplicate notice
6shall pay a fee of $5 to cover administrative costs to the
7supervisor of assessments, who shall then file the executed
8designation with the county collector. Notwithstanding any
9other provision of this Code to the contrary, the filing of
10such an executed designation requires the county collector to
11provide duplicate notices as indicated by the designation. A
12designation may be rescinded by the person who executed such
13designation at any time, in the manner and form required by the
14chief county assessment officer.
15 The assessor or chief county assessment officer may
16determine the eligibility of residential property to receive
17the homestead exemption provided by this Section by
18application, visual inspection, questionnaire or other
19reasonable methods. The determination shall be made in
20accordance with guidelines established by the Department.
21 In counties with 3,000,000 or more inhabitants, beginning
22in taxable year 2010, each taxpayer who has been granted an
23exemption under this Section must reapply on an annual basis.
24The chief county assessment officer shall mail the application
25to the taxpayer. In counties with less than 3,000,000
26inhabitants, the county board may by resolution provide that if

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1a person has been granted a homestead exemption under this
2Section, the person qualifying need not reapply for the
3exemption.
4 In counties with less than 3,000,000 inhabitants, if the
5assessor or chief county assessment officer requires annual
6application for verification of eligibility for an exemption
7once granted under this Section, the application shall be
8mailed to the taxpayer.
9 The assessor or chief county assessment officer shall
10notify each person who qualifies for an exemption under this
11Section that the person may also qualify for deferral of real
12estate taxes under the Senior Citizens Real Estate Tax Deferral
13Act. The notice shall set forth the qualifications needed for
14deferral of real estate taxes, the address and telephone number
15of county collector, and a statement that applications for
16deferral of real estate taxes may be obtained from the county
17collector.
18 Notwithstanding Sections 6 and 8 of the State Mandates Act,
19no reimbursement by the State is required for the
20implementation of any mandate created by this Section.
21(Source: P.A. 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,
22eff. 7-16-14; 99-180, eff. 7-29-15.)
23 (35 ILCS 200/15-172)
24 Sec. 15-172. Senior Citizens Assessment Freeze Homestead
25Exemption.

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1 (a) This Section may be cited as the Senior Citizens
2Assessment Freeze Homestead Exemption.
3 (b) As used in this Section:
4 "Applicant" means an individual who has filed an
5application under this Section.
6 "Base amount" means the base year equalized assessed value
7of the residence plus the first year's equalized assessed value
8of any added improvements which increased the assessed value of
9the residence after the base year.
10 "Base year" means the taxable year prior to the taxable
11year for which the applicant first qualifies and applies for
12the exemption provided that in the prior taxable year the
13property was improved with a permanent structure that was
14occupied as a residence by the applicant who was liable for
15paying real property taxes on the property and who was either
16(i) an owner of record of the property or had legal or
17equitable interest in the property as evidenced by a written
18instrument or (ii) had a legal or equitable interest as a
19lessee in the parcel of property that was single family
20residence. If in any subsequent taxable year for which the
21applicant applies and qualifies for the exemption the equalized
22assessed value of the residence is less than the equalized
23assessed value in the existing base year (provided that such
24equalized assessed value is not based on an assessed value that
25results from a temporary irregularity in the property that
26reduces the assessed value for one or more taxable years), then

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1that subsequent taxable year shall become the base year until a
2new base year is established under the terms of this paragraph.
3For taxable year 1999 only, the Chief County Assessment Officer
4shall review (i) all taxable years for which the applicant
5applied and qualified for the exemption and (ii) the existing
6base year. The assessment officer shall select as the new base
7year the year with the lowest equalized assessed value. An
8equalized assessed value that is based on an assessed value
9that results from a temporary irregularity in the property that
10reduces the assessed value for one or more taxable years shall
11not be considered the lowest equalized assessed value. The
12selected year shall be the base year for taxable year 1999 and
13thereafter until a new base year is established under the terms
14of this paragraph.
15 "Chief County Assessment Officer" means the County
16Assessor or Supervisor of Assessments of the county in which
17the property is located.
18 "Equalized assessed value" means the assessed value as
19equalized by the Illinois Department of Revenue.
20 "Household" means the applicant, the spouse of the
21applicant, and all persons using the residence of the applicant
22as their principal place of residence.
23 "Household income" means the combined income of the members
24of a household for the calendar year preceding the taxable
25year.
26 "Income" has the same meaning as provided in Section 3.07

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1of the Senior Citizens and Persons with Disabilities Property
2Tax Relief Act, except that, beginning in assessment year 2001,
3"income" does not include veteran's benefits.
4 "Internal Revenue Code of 1986" means the United States
5Internal Revenue Code of 1986 or any successor law or laws
6relating to federal income taxes in effect for the year
7preceding the taxable year.
8 "Life care facility that qualifies as a cooperative" means
9a facility as defined in Section 2 of the Life Care Facilities
10Act.
11 "Maximum income limitation" means:
12 (1) $35,000 prior to taxable year 1999;
13 (2) $40,000 in taxable years 1999 through 2003;
14 (3) $45,000 in taxable years 2004 through 2005;
15 (4) $50,000 in taxable years 2006 and 2007; and
16 (5) $55,000 in taxable years 2008 through 2016; year
17 2008 and thereafter.
18 (6) for taxable year 2017, (i) $65,000 for qualified
19 property located in a county with 3,000,000 or more
20 inhabitants and (ii) $55,000 for qualified property
21 located in a county with fewer than 3,000,000 inhabitants;
22 and
23 (7) for taxable years 2018 and thereafter, $65,000 for
24 all qualified property.
25 "Residence" means the principal dwelling place and
26appurtenant structures used for residential purposes in this

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1State occupied on January 1 of the taxable year by a household
2and so much of the surrounding land, constituting the parcel
3upon which the dwelling place is situated, as is used for
4residential purposes. If the Chief County Assessment Officer
5has established a specific legal description for a portion of
6property constituting the residence, then that portion of
7property shall be deemed the residence for the purposes of this
8Section.
9 "Taxable year" means the calendar year during which ad
10valorem property taxes payable in the next succeeding year are
11levied.
12 (c) Beginning in taxable year 1994, a senior citizens
13assessment freeze homestead exemption is granted for real
14property that is improved with a permanent structure that is
15occupied as a residence by an applicant who (i) is 65 years of
16age or older during the taxable year, (ii) has a household
17income that does not exceed the maximum income limitation,
18(iii) is liable for paying real property taxes on the property,
19and (iv) is an owner of record of the property or has a legal or
20equitable interest in the property as evidenced by a written
21instrument. This homestead exemption shall also apply to a
22leasehold interest in a parcel of property improved with a
23permanent structure that is a single family residence that is
24occupied as a residence by a person who (i) is 65 years of age
25or older during the taxable year, (ii) has a household income
26that does not exceed the maximum income limitation, (iii) has a

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1legal or equitable ownership interest in the property as
2lessee, and (iv) is liable for the payment of real property
3taxes on that property.
4 In counties of 3,000,000 or more inhabitants, the amount of
5the exemption for all taxable years is the equalized assessed
6value of the residence in the taxable year for which
7application is made minus the base amount. In all other
8counties, the amount of the exemption is as follows: (i)
9through taxable year 2005 and for taxable year 2007 and
10thereafter, the amount of this exemption shall be the equalized
11assessed value of the residence in the taxable year for which
12application is made minus the base amount; and (ii) for taxable
13year 2006, the amount of the exemption is as follows:
14 (1) For an applicant who has a household income of
15 $45,000 or less, the amount of the exemption is the
16 equalized assessed value of the residence in the taxable
17 year for which application is made minus the base amount.
18 (2) For an applicant who has a household income
19 exceeding $45,000 but not exceeding $46,250, the amount of
20 the exemption is (i) the equalized assessed value of the
21 residence in the taxable year for which application is made
22 minus the base amount (ii) multiplied by 0.8.
23 (3) For an applicant who has a household income
24 exceeding $46,250 but not exceeding $47,500, the amount of
25 the exemption is (i) the equalized assessed value of the
26 residence in the taxable year for which application is made

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

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1limited to the sum of the reductions calculated for each unit
2occupied as a residence by a person or persons (i) 65 years of
3age or older, (ii) with a household income that does not exceed
4the maximum income limitation, (iii) who is liable, by contract
5with the owner or owners of record, for paying real property
6taxes on the property, and (iv) who is an owner of record of a
7legal or equitable interest in the cooperative apartment
8building, other than a leasehold interest. In the instance of a
9cooperative where a homestead exemption has been granted under
10this Section, the cooperative association or its management
11firm shall credit the savings resulting from that exemption
12only to the apportioned tax liability of the owner who
13qualified for the exemption. Any person who willfully refuses
14to credit that savings to an owner who qualifies for the
15exemption is guilty of a Class B misdemeanor.
16 When a homestead exemption has been granted under this
17Section and an applicant then becomes a resident of a facility
18licensed under the Assisted Living and Shared Housing Act, the
19Nursing Home Care Act, the Specialized Mental Health
20Rehabilitation Act of 2013, the ID/DD Community Care Act, or
21the MC/DD Act, the exemption shall be granted in subsequent
22years so long as the residence (i) continues to be occupied by
23the qualified applicant's spouse or (ii) if remaining
24unoccupied, is still owned by the qualified applicant for the
25homestead exemption.
26 Beginning January 1, 1997, when an individual dies who

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1would have qualified for an exemption under this Section, and
2the surviving spouse does not independently qualify for this
3exemption because of age, the exemption under this Section
4shall be granted to the surviving spouse for the taxable year
5preceding and the taxable year of the death, provided that,
6except for age, the surviving spouse meets all other
7qualifications for the granting of this exemption for those
8years.
9 When married persons maintain separate residences, the
10exemption provided for in this Section may be claimed by only
11one of such persons and for only one residence.
12 For taxable year 1994 only, in counties having less than
133,000,000 inhabitants, to receive the exemption, a person shall
14submit an application by February 15, 1995 to the Chief County
15Assessment Officer of the county in which the property is
16located. In counties having 3,000,000 or more inhabitants, for
17taxable year 1994 and all subsequent taxable years, to receive
18the exemption, a person may submit an application to the Chief
19County Assessment Officer of the county in which the property
20is located during such period as may be specified by the Chief
21County Assessment Officer. The Chief County Assessment Officer
22in counties of 3,000,000 or more inhabitants shall annually
23give notice of the application period by mail or by
24publication. In counties having less than 3,000,000
25inhabitants, beginning with taxable year 1995 and thereafter,
26to receive the exemption, a person shall submit an application

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1by July 1 of each taxable year to the Chief County Assessment
2Officer of the county in which the property is located. A
3county may, by ordinance, establish a date for submission of
4applications that is different than July 1. The applicant shall
5submit with the application an affidavit of the applicant's
6total household income, age, marital status (and if married the
7name and address of the applicant's spouse, if known), and
8principal dwelling place of members of the household on January
91 of the taxable year. The Department shall establish, by rule,
10a method for verifying the accuracy of affidavits filed by
11applicants under this Section, and the Chief County Assessment
12Officer may conduct audits of any taxpayer claiming an
13exemption under this Section to verify that the taxpayer is
14eligible to receive the exemption. Each application shall
15contain or be verified by a written declaration that it is made
16under the penalties of perjury. A taxpayer's signing a
17fraudulent application under this Act is perjury, as defined in
18Section 32-2 of the Criminal Code of 2012. The applications
19shall be clearly marked as applications for the Senior Citizens
20Assessment Freeze Homestead Exemption and must contain a notice
21that any taxpayer who receives the exemption is subject to an
22audit by the Chief County Assessment Officer.
23 Notwithstanding any other provision to the contrary, in
24counties having fewer than 3,000,000 inhabitants, if an
25applicant fails to file the application required by this
26Section in a timely manner and this failure to file is due to a

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1mental or physical condition sufficiently severe so as to
2render the applicant incapable of filing the application in a
3timely manner, the Chief County Assessment Officer may extend
4the filing deadline for a period of 30 days after the applicant
5regains the capability to file the application, but in no case
6may the filing deadline be extended beyond 3 months of the
7original filing deadline. In order to receive the extension
8provided in this paragraph, the applicant shall provide the
9Chief County Assessment Officer with a signed statement from
10the applicant's physician, advanced practice nurse, or
11physician assistant stating the nature and extent of the
12condition, that, in the physician's, advanced practice
13nurse's, or physician assistant's opinion, the condition was so
14severe that it rendered the applicant incapable of filing the
15application in a timely manner, and the date on which the
16applicant regained the capability to file the application.
17 Beginning January 1, 1998, notwithstanding any other
18provision to the contrary, in counties having fewer than
193,000,000 inhabitants, if an applicant fails to file the
20application required by this Section in a timely manner and
21this failure to file is due to a mental or physical condition
22sufficiently severe so as to render the applicant incapable of
23filing the application in a timely manner, the Chief County
24Assessment Officer may extend the filing deadline for a period
25of 3 months. In order to receive the extension provided in this
26paragraph, the applicant shall provide the Chief County

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1Assessment Officer with a signed statement from the applicant's
2physician, advanced practice nurse, or physician assistant
3stating the nature and extent of the condition, and that, in
4the physician's, advanced practice nurse's, or physician
5assistant's opinion, the condition was so severe that it
6rendered the applicant incapable of filing the application in a
7timely manner.
8 In counties having less than 3,000,000 inhabitants, if an
9applicant was denied an exemption in taxable year 1994 and the
10denial occurred due to an error on the part of an assessment
11official, or his or her agent or employee, then beginning in
12taxable year 1997 the applicant's base year, for purposes of
13determining the amount of the exemption, shall be 1993 rather
14than 1994. In addition, in taxable year 1997, the applicant's
15exemption shall also include an amount equal to (i) the amount
16of any exemption denied to the applicant in taxable year 1995
17as a result of using 1994, rather than 1993, as the base year,
18(ii) the amount of any exemption denied to the applicant in
19taxable year 1996 as a result of using 1994, rather than 1993,
20as the base year, and (iii) the amount of the exemption
21erroneously denied for taxable year 1994.
22 For purposes of this Section, a person who will be 65 years
23of age during the current taxable year shall be eligible to
24apply for the homestead exemption during that taxable year.
25Application shall be made during the application period in
26effect for the county of his or her residence.

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1 The Chief County Assessment Officer may determine the
2eligibility of a life care facility that qualifies as a
3cooperative to receive the benefits provided by this Section by
4use of an affidavit, application, visual inspection,
5questionnaire, or other reasonable method in order to insure
6that the tax savings resulting from the exemption are credited
7by the management firm to the apportioned tax liability of each
8qualifying resident. The Chief County Assessment Officer may
9request reasonable proof that the management firm has so
10credited that exemption.
11 Except as provided in this Section, all information
12received by the chief county assessment officer or the
13Department from applications filed under this Section, or from
14any investigation conducted under the provisions of this
15Section, shall be confidential, except for official purposes or
16pursuant to official procedures for collection of any State or
17local tax or enforcement of any civil or criminal penalty or
18sanction imposed by this Act or by any statute or ordinance
19imposing a State or local tax. Any person who divulges any such
20information in any manner, except in accordance with a proper
21judicial order, is guilty of a Class A misdemeanor.
22 Nothing contained in this Section shall prevent the
23Director or chief county assessment officer from publishing or
24making available reasonable statistics concerning the
25operation of the exemption contained in this Section in which
26the contents of claims are grouped into aggregates in such a

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1way that information contained in any individual claim shall
2not be disclosed.
3 Notwithstanding any other provision of law, for taxable
4year 2017 and thereafter, in counties of 3,000,000 or more
5inhabitants, the amount of the exemption shall be the greater
6of (i) the amount of the exemption otherwise calculated under
7this Section or (ii) $2,000.
8 (d) Each Chief County Assessment Officer shall annually
9publish a notice of availability of the exemption provided
10under this Section. The notice shall be published at least 60
11days but no more than 75 days prior to the date on which the
12application must be submitted to the Chief County Assessment
13Officer of the county in which the property is located. The
14notice shall appear in a newspaper of general circulation in
15the county.
16 Notwithstanding Sections 6 and 8 of the State Mandates Act,
17no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
2099-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
217-28-16.)
22 (35 ILCS 200/15-175)
23 Sec. 15-175. General homestead exemption.
24 (a) Except as provided in Sections 15-176 and 15-177,
25homestead property is entitled to an annual homestead exemption

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1limited, except as described here with relation to
2cooperatives, to a reduction in the equalized assessed value of
3homestead property equal to the increase in equalized assessed
4value for the current assessment year above the equalized
5assessed value of the property for 1977, up to the maximum
6reduction set forth below. If however, the 1977 equalized
7assessed value upon which taxes were paid is subsequently
8determined by local assessing officials, the Property Tax
9Appeal Board, or a court to have been excessive, the equalized
10assessed value which should have been placed on the property
11for 1977 shall be used to determine the amount of the
12exemption.
13 (b) Except as provided in Section 15-176, the maximum
14reduction before taxable year 2004 shall be $4,500 in counties
15with 3,000,000 or more inhabitants and $3,500 in all other
16counties. Except as provided in Sections 15-176 and 15-177, for
17taxable years 2004 through 2007, the maximum reduction shall be
18$5,000, for taxable year 2008, the maximum reduction is $5,500,
19and, for taxable years 2009 through 2011, the maximum reduction
20is $6,000 in all counties. For taxable years 2012 through 2016
21and thereafter, the maximum reduction is $7,000 in counties
22with 3,000,000 or more inhabitants and $6,000 in all other
23counties. For taxable years 2017 and thereafter, the maximum
24reduction is $10,000 in counties with 3,000,000 or more
25inhabitants and $6,000 in all other counties. If a county has
26elected to subject itself to the provisions of Section 15-176

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1as provided in subsection (k) of that Section, then, for the
2first taxable year only after the provisions of Section 15-176
3no longer apply, for owners who, for the taxable year, have not
4been granted a senior citizens assessment freeze homestead
5exemption under Section 15-172 or a long-time occupant
6homestead exemption under Section 15-177, there shall be an
7additional exemption of $5,000 for owners with a household
8income of $30,000 or less.
9 (c) In counties with fewer than 3,000,000 inhabitants, if,
10based on the most recent assessment, the equalized assessed
11value of the homestead property for the current assessment year
12is greater than the equalized assessed value of the property
13for 1977, the owner of the property shall automatically receive
14the exemption granted under this Section in an amount equal to
15the increase over the 1977 assessment up to the maximum
16reduction set forth in this Section.
17 (d) If in any assessment year beginning with the 2000
18assessment year, homestead property has a pro-rata valuation
19under Section 9-180 resulting in an increase in the assessed
20valuation, a reduction in equalized assessed valuation equal to
21the increase in equalized assessed value of the property for
22the year of the pro-rata valuation above the equalized assessed
23value of the property for 1977 shall be applied to the property
24on a proportionate basis for the period the property qualified
25as homestead property during the assessment year. The maximum
26proportionate homestead exemption shall not exceed the maximum

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1homestead exemption allowed in the county under this Section
2divided by 365 and multiplied by the number of days the
3property qualified as homestead property.
4 (d-1) In counties with 3,000,000 or more inhabitants, where
5the chief county assessment officer provides a notice of
6discovery, if a property is not occupied by its owner as a
7principal residence as of January 1 of the current tax year,
8then the property owner shall notify the chief county
9assessment officer of that fact on a form prescribed by the
10chief county assessment officer. That notice must be received
11by the chief county assessment officer on or before March 1 of
12the collection year. If mailed, the form shall be sent by
13certified mail, return receipt requested. If the form is
14provided in person, the chief county assessment officer shall
15provide a date stamped copy of the notice. Failure to provide
16timely notice pursuant to this subsection (d-1) shall result in
17the exemption being treated as an erroneous exemption. Upon
18timely receipt of the notice for the current tax year, no
19exemption shall be applied to the property for the current tax
20year. If the exemption is not removed upon timely receipt of
21the notice by the chief assessment officer, then the error is
22considered granted as a result of a clerical error or omission
23on the part of the chief county assessment officer as described
24in subsection (h) of Section 9-275, and the property owner
25shall not be liable for the payment of interest and penalties
26due to the erroneous exemption for the current tax year for

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1which the notice was filed after the date that notice was
2timely received pursuant to this subsection. Notice provided
3under this subsection shall not constitute a defense or amnesty
4for prior year erroneous exemptions.
5 For the purposes of this subsection (d-1):
6 "Collection year" means the year in which the first and
7second installment of the current tax year is billed.
8 "Current tax year" means the year prior to the collection
9year.
10 (e) The chief county assessment officer may, when
11considering whether to grant a leasehold exemption under this
12Section, require the following conditions to be met:
13 (1) that a notarized application for the exemption,
14 signed by both the owner and the lessee of the property,
15 must be submitted each year during the application period
16 in effect for the county in which the property is located;
17 (2) that a copy of the lease must be filed with the
18 chief county assessment officer by the owner of the
19 property at the time the notarized application is
20 submitted;
21 (3) that the lease must expressly state that the lessee
22 is liable for the payment of property taxes; and
23 (4) that the lease must include the following language
24 in substantially the following form:
25 "Lessee shall be liable for the payment of real
26 estate taxes with respect to the residence in

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

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

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

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1Exemption.
2 (i-5) This subsection (i-5) applies to counties with
33,000,000 or more inhabitants. In the event of a sale of
4homestead property, the homestead exemption shall remain in
5effect for the remainder of the assessment year of the sale.
6Upon receipt of a transfer declaration transmitted by the
7recorder pursuant to Section 31-30 of the Real Estate Transfer
8Tax Law for property receiving an exemption under this Section,
9the assessor shall mail a notice and forms to the new owner of
10the property providing information pertaining to the rules and
11applicable filing periods for applying or reapplying for
12homestead exemptions under this Code for which the property may
13be eligible. If the new owner fails to apply or reapply for a
14homestead exemption during the applicable filing period or the
15property no longer qualifies for an existing homestead
16exemption, the assessor shall cancel such exemption for any
17ensuing assessment year.
18 (j) In counties with fewer than 3,000,000 inhabitants, in
19the event of a sale of homestead property the homestead
20exemption shall remain in effect for the remainder of the
21assessment year of the sale. The assessor or chief county
22assessment officer may require the new owner of the property to
23apply for the homestead exemption for the following assessment
24year.
25 (k) Notwithstanding Sections 6 and 8 of the State Mandates
26Act, no reimbursement by the State is required for the

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1implementation of any mandate created by this Section.
2(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
3eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
499-851, eff. 8-19-16.)
5 Section 99. Effective date. This Act takes effect upon
6becoming law.
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