Bill Text: IL SB3093 | 2017-2018 | 100th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Property Tax Code. Makes changes concerning the maximum reduction under the general homestead exemption for life care facilities. Provides that those changes are declarative of existing law.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2018-08-24 - Public Act . . . . . . . . . 100-1077 [SB3093 Detail]
Download: Illinois-2017-SB3093-Introduced.html
Bill Title: Amends the Property Tax Code. Makes changes concerning the maximum reduction under the general homestead exemption for life care facilities. Provides that those changes are declarative of existing law.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2018-08-24 - Public Act . . . . . . . . . 100-1077 [SB3093 Detail]
Download: Illinois-2017-SB3093-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||||||||||||||||||||
5 | Section 15-175 as follows:
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6 | (35 ILCS 200/15-175)
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7 | Sec. 15-175. General homestead exemption. | ||||||||||||||||||||||||
8 | (a) Except as provided in Sections 15-176 and 15-177, | ||||||||||||||||||||||||
9 | homestead
property is
entitled to an annual homestead exemption | ||||||||||||||||||||||||
10 | limited, except as described here
with relation to cooperatives | ||||||||||||||||||||||||
11 | or life care facilities , to a reduction in the equalized | ||||||||||||||||||||||||
12 | assessed value
of homestead property equal to the increase in | ||||||||||||||||||||||||
13 | equalized assessed value for the
current assessment year above | ||||||||||||||||||||||||
14 | the equalized assessed value of the property for
1977, up to | ||||||||||||||||||||||||
15 | the maximum reduction set forth below. If however, the 1977
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16 | equalized assessed value upon which taxes were paid is | ||||||||||||||||||||||||
17 | subsequently determined
by local assessing officials, the | ||||||||||||||||||||||||
18 | Property Tax Appeal Board, or a court to have
been excessive, | ||||||||||||||||||||||||
19 | the equalized assessed value which should have been placed on
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20 | the property for 1977 shall be used to determine the amount of | ||||||||||||||||||||||||
21 | the exemption.
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22 | (b) Except as provided in Section 15-176, the maximum | ||||||||||||||||||||||||
23 | reduction before taxable year 2004 shall be
$4,500 in counties |
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1 | with 3,000,000 or more
inhabitants
and $3,500 in all other | ||||||
2 | counties. Except as provided in Sections 15-176 and 15-177, for | ||||||
3 | taxable years 2004 through 2007, the maximum reduction shall be | ||||||
4 | $5,000, for taxable year 2008, the maximum reduction is $5,500, | ||||||
5 | and, for taxable years 2009 through 2011, the maximum reduction | ||||||
6 | is $6,000 in all counties. For taxable years 2012 through 2016, | ||||||
7 | the maximum reduction is $7,000 in counties with 3,000,000 or | ||||||
8 | more
inhabitants
and $6,000 in all other counties. For taxable | ||||||
9 | years 2017 and thereafter, the maximum reduction is $10,000 in | ||||||
10 | counties with 3,000,000 or more inhabitants and $6,000 in all | ||||||
11 | other counties. If a county has elected to subject itself to | ||||||
12 | the provisions of Section 15-176 as provided in subsection (k) | ||||||
13 | of that Section, then, for the first taxable year only after | ||||||
14 | the provisions of Section 15-176 no longer apply, for owners | ||||||
15 | who, for the taxable year, have not been granted a senior | ||||||
16 | citizens assessment freeze homestead exemption under Section | ||||||
17 | 15-172 or a long-time occupant homestead exemption under | ||||||
18 | Section 15-177, there shall be an additional exemption of | ||||||
19 | $5,000 for owners with a household income of $30,000 or less.
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20 | (c) In counties with fewer than 3,000,000 inhabitants, if, | ||||||
21 | based on the most
recent assessment, the equalized assessed | ||||||
22 | value of
the homestead property for the current assessment year | ||||||
23 | is greater than the
equalized assessed value of the property | ||||||
24 | for 1977, the owner of the property
shall automatically receive | ||||||
25 | the exemption granted under this Section in an
amount equal to | ||||||
26 | the increase over the 1977 assessment up to the maximum
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1 | reduction set forth in this Section.
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2 | (d) If in any assessment year beginning with the 2000 | ||||||
3 | assessment year,
homestead property has a pro-rata valuation | ||||||
4 | under
Section 9-180 resulting in an increase in the assessed | ||||||
5 | valuation, a reduction
in equalized assessed valuation equal to | ||||||
6 | the increase in equalized assessed
value of the property for | ||||||
7 | the year of the pro-rata valuation above the
equalized assessed | ||||||
8 | value of the property for 1977 shall be applied to the
property | ||||||
9 | on a proportionate basis for the period the property qualified | ||||||
10 | as
homestead property during the assessment year. The maximum | ||||||
11 | proportionate
homestead exemption shall not exceed the maximum | ||||||
12 | homestead exemption allowed in
the county under this Section | ||||||
13 | divided by 365 and multiplied by the number of
days the | ||||||
14 | property qualified as homestead property.
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15 | (d-1) In counties with 3,000,000 or more inhabitants, where | ||||||
16 | the chief county assessment officer provides a notice of | ||||||
17 | discovery, if a property is not
occupied by its owner as a | ||||||
18 | principal residence as of January 1 of the current tax year, | ||||||
19 | then the property owner shall notify the chief county | ||||||
20 | assessment officer of that fact on a form prescribed by the | ||||||
21 | chief county assessment officer. That notice must be received | ||||||
22 | by the chief county assessment officer on or before March 1 of | ||||||
23 | the collection year. If mailed, the form shall be sent by | ||||||
24 | certified mail, return receipt requested. If the form is | ||||||
25 | provided in person, the chief county assessment officer shall | ||||||
26 | provide a date stamped copy of the notice. Failure to provide |
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1 | timely notice pursuant to this subsection (d-1) shall result in | ||||||
2 | the exemption being treated as an erroneous exemption. Upon | ||||||
3 | timely receipt of the notice for the current tax year, no | ||||||
4 | exemption shall be applied to the property for the current tax | ||||||
5 | year. If the exemption is not removed upon timely receipt of | ||||||
6 | the notice by the chief assessment officer, then the error is | ||||||
7 | considered granted as a result of a clerical error or omission | ||||||
8 | on the part of the chief county assessment officer as described | ||||||
9 | in subsection (h) of Section 9-275, and the property owner | ||||||
10 | shall not be liable for the payment of interest and penalties | ||||||
11 | due to the erroneous exemption for the current tax year for | ||||||
12 | which the notice was filed after the date that notice was | ||||||
13 | timely received pursuant to this subsection. Notice provided | ||||||
14 | under this subsection shall not constitute a defense or amnesty | ||||||
15 | for prior year erroneous exemptions. | ||||||
16 | For the purposes of this subsection (d-1): | ||||||
17 | "Collection year" means the year in which the first and | ||||||
18 | second installment of the current tax year is billed. | ||||||
19 | "Current tax year" means the year prior to the collection | ||||||
20 | year. | ||||||
21 | (e) The chief county assessment officer may, when | ||||||
22 | considering whether to grant a leasehold exemption under this | ||||||
23 | Section, require the following conditions to be met: | ||||||
24 | (1) that a notarized application for the exemption, | ||||||
25 | signed by both the owner and the lessee of the property, | ||||||
26 | must be submitted each year during the application period |
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1 | in effect for the county in which the property is located; | ||||||
2 | (2) that a copy of the lease must be filed with the | ||||||
3 | chief county assessment officer by the owner of the | ||||||
4 | property at the time the notarized application is | ||||||
5 | submitted; | ||||||
6 | (3) that the lease must expressly state that the lessee | ||||||
7 | is liable for the payment of property taxes; and | ||||||
8 | (4) that the lease must include the following language | ||||||
9 | in substantially the following form: | ||||||
10 | "Lessee shall be liable for the payment of real | ||||||
11 | estate taxes with respect to the residence in | ||||||
12 | accordance with the terms and conditions of Section | ||||||
13 | 15-175 of the Property Tax Code (35 ILCS 200/15-175). | ||||||
14 | The permanent real estate index number for the premises | ||||||
15 | is (insert number), and, according to the most recent | ||||||
16 | property tax bill, the current amount of real estate | ||||||
17 | taxes associated with the premises is (insert amount) | ||||||
18 | per year. The parties agree that the monthly rent set | ||||||
19 | forth above shall be increased or decreased pro rata | ||||||
20 | (effective January 1 of each calendar year) to reflect | ||||||
21 | any increase or decrease in real estate taxes. Lessee | ||||||
22 | shall be deemed to be satisfying Lessee's liability for | ||||||
23 | the above mentioned real estate taxes with the monthly | ||||||
24 | rent payments as set forth above (or increased or | ||||||
25 | decreased as set forth herein).". | ||||||
26 | In addition, if there is a change in lessee, or if the |
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1 | lessee vacates the property, then the chief county assessment | ||||||
2 | officer may require the owner of the property to notify the | ||||||
3 | chief county assessment officer of that change. | ||||||
4 | This subsection (e) does not apply to leasehold interests | ||||||
5 | in property owned by a municipality. | ||||||
6 | (f) "Homestead property" under this Section includes | ||||||
7 | residential property that is
occupied by its owner or owners as | ||||||
8 | his or their principal dwelling place, or
that is a leasehold | ||||||
9 | interest on which a single family residence is situated,
which | ||||||
10 | is occupied as a residence by a person who has an ownership | ||||||
11 | interest
therein, legal or equitable or as a lessee, and on | ||||||
12 | which the person is
liable for the payment of property taxes. | ||||||
13 | For land improved with
an apartment building owned and operated | ||||||
14 | as a cooperative or a building which
is a life care facility as | ||||||
15 | defined in Section 15-170 and considered to
be a cooperative | ||||||
16 | under Section 15-170 , the maximum reduction from the equalized
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17 | assessed value shall be limited to the increase in the value | ||||||
18 | above the
equalized assessed value of the property for 1977, up | ||||||
19 | to
the maximum reduction set forth above, multiplied by the | ||||||
20 | number of apartments
or units occupied by a person or persons | ||||||
21 | who is liable, by contract with the
owner or owners of record, | ||||||
22 | for paying property taxes on the property and is an
owner of | ||||||
23 | record of a legal or equitable interest in the cooperative
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24 | apartment building, other than a leasehold interest. For land | ||||||
25 | improved with a life care facility, the maximum reduction from | ||||||
26 | the value of the property, as equalized by the Department, |
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1 | shall be multiplied by the number of apartments or units | ||||||
2 | occupied by a person or persons, irrespective of any legal, | ||||||
3 | equitable, or leasehold interest in the facility, who are | ||||||
4 | liable, under a contract with the owner or owners of record of | ||||||
5 | the facility, for paying property taxes on the property. The | ||||||
6 | changes made to this subsection (f) by this amendatory Act of | ||||||
7 | the 100th General Assembly are declarative of existing law. For | ||||||
8 | purposes of this
Section, the term "life care facility" has the | ||||||
9 | meaning stated in Section
15-170.
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10 | "Household", as used in this Section,
means the owner, the | ||||||
11 | spouse of the owner, and all persons using
the
residence of the | ||||||
12 | owner as their principal place of residence.
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13 | "Household income", as used in this Section,
means the | ||||||
14 | combined income of the members of a household
for the calendar | ||||||
15 | year preceding the taxable year.
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16 | "Income", as used in this Section,
has the same meaning as | ||||||
17 | provided in Section 3.07 of the Senior
Citizens
and Persons | ||||||
18 | with Disabilities Property Tax Relief Act,
except that
"income" | ||||||
19 | does not include veteran's benefits.
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20 | (g) In a cooperative or life care facility where a | ||||||
21 | homestead exemption has been granted, the
cooperative | ||||||
22 | association or the its management of the life care facility | ||||||
23 | firm shall credit the savings
resulting from that exemption | ||||||
24 | only to the apportioned tax liability of the
owner who | ||||||
25 | qualified for the exemption. Any person who willfully refuses | ||||||
26 | to so
credit the savings shall be guilty of a Class B |
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1 | misdemeanor. The changes made to this subsection (f) by this | ||||||
2 | amendatory Act of the 100th General Assembly are declarative of | ||||||
3 | existing law.
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4 | (h) Where married persons maintain and reside in separate | ||||||
5 | residences qualifying
as homestead property, each residence | ||||||
6 | shall receive 50% of the total reduction
in equalized assessed | ||||||
7 | valuation provided by this Section.
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8 | (i) In all counties, the assessor
or chief county | ||||||
9 | assessment officer may determine the
eligibility of | ||||||
10 | residential property to receive the homestead exemption and the | ||||||
11 | amount of the exemption by
application, visual inspection, | ||||||
12 | questionnaire or other reasonable methods. The
determination | ||||||
13 | shall be made in accordance with guidelines established by the
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14 | Department, provided that the taxpayer applying for an | ||||||
15 | additional general exemption under this Section shall submit to | ||||||
16 | the chief county assessment officer an application with an | ||||||
17 | affidavit of the applicant's total household income, age, | ||||||
18 | marital status (and, if married, the name and address of the | ||||||
19 | applicant's spouse, if known), and principal dwelling place of | ||||||
20 | members of the household on January 1 of the taxable year. The | ||||||
21 | Department shall issue guidelines establishing a method for | ||||||
22 | verifying the accuracy of the affidavits filed by applicants | ||||||
23 | under this paragraph. The applications shall be clearly marked | ||||||
24 | as applications for the Additional General Homestead | ||||||
25 | Exemption.
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26 | (i-5) This subsection (i-5) applies to counties with |
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1 | 3,000,000 or more inhabitants. In the event of a sale of
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2 | homestead property, the homestead exemption shall remain in | ||||||
3 | effect for the remainder of the assessment year of the sale. | ||||||
4 | Upon receipt of a transfer declaration transmitted by the | ||||||
5 | recorder pursuant to Section 31-30 of the Real Estate Transfer | ||||||
6 | Tax Law for property receiving an exemption under this Section, | ||||||
7 | the assessor shall mail a notice and forms to the new owner of | ||||||
8 | the property providing information pertaining to the rules and | ||||||
9 | applicable filing periods for applying or reapplying for | ||||||
10 | homestead exemptions under this Code for which the property may | ||||||
11 | be eligible. If the new owner fails to apply or reapply for a | ||||||
12 | homestead exemption during the applicable filing period or the | ||||||
13 | property no longer qualifies for an existing homestead | ||||||
14 | exemption, the assessor shall cancel such exemption for any | ||||||
15 | ensuing assessment year. | ||||||
16 | (j) In counties with fewer than 3,000,000 inhabitants, in | ||||||
17 | the event of a sale
of
homestead property the homestead | ||||||
18 | exemption shall remain in effect for the
remainder of the | ||||||
19 | assessment year of the sale. The assessor or chief county
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20 | assessment officer may require the new
owner of the property to | ||||||
21 | apply for the homestead exemption for the following
assessment | ||||||
22 | year.
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23 | (k) Notwithstanding Sections 6 and 8 of the State Mandates | ||||||
24 | Act, no reimbursement by the State is required for the | ||||||
25 | implementation of any mandate created by this Section.
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26 | (Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15; |
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1 | 99-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff. | ||||||
2 | 8-25-17.)
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