Bill Text: IL SB3242 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Property Tax Code. Makes structural changes concerning homestead exemptions by creating separate divisions for homestead exemptions in counties with 3,000,000 or more inhabitants and counties with fewer than 3,000,000 inhabitants. Effective January 1, 2019.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2018-05-18 - Rule 19(a) / Re-referred to Rules Committee [SB3242 Detail]

Download: Illinois-2017-SB3242-Engrossed.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 renumbering
5Section 15-174, by changing Sections 9-275, 15-167, 15-168,
615-169, 15-170, 15-172, 15-173, 15-175, 15-176, 15-177, and
715-180, by adding Division headings to Division 20 of Article
810, Division 1 of Article 15, and Division 2 of Article 15, and
9by adding Sections 15-13 and 15-163 and Division 3 of Article
1015 as follows:
11 (35 ILCS 200/9-275)
12 Sec. 9-275. Erroneous homestead exemptions.
13 (a) For purposes of this Section:
14 "Erroneous homestead exemption" means a homestead
15exemption that was granted for real property in a taxable year
16if the property was not eligible for that exemption in that
17taxable year. If the taxpayer receives an erroneous homestead
18exemption under a single Section of this Code for the same
19property in multiple years, that exemption is considered a
20single erroneous homestead exemption for purposes of this
21Section. However, if the taxpayer receives erroneous homestead
22exemptions under multiple Sections of this Code for the same
23property, or if the taxpayer receives erroneous homestead

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1exemptions under the same Section of this Code for multiple
2properties, then each of those exemptions is considered a
3separate erroneous homestead exemption for purposes of this
4Section.
5 "Homestead exemption" means an exemption under Division 2
6of Article 15 of this Code Section 15-165 (veterans with
7disabilities), 15-167 (returning veterans), 15-168 (persons
8with disabilities), 15-169 (standard homestead for veterans
9with disabilities), 15-170 (senior citizens), 15-172 (senior
10citizens assessment freeze), 15-175 (general homestead),
1115-176 (alternative general homestead), or 15-177 (long-time
12occupant).
13 "Erroneous exemption principal amount" means the total
14difference between the property taxes actually billed to a
15property index number and the amount of property taxes that
16would have been billed but for the erroneous exemption or
17exemptions.
18 "Taxpayer" means the property owner or leasehold owner that
19erroneously received a homestead exemption upon property.
20 (b) Notwithstanding any other provision of law, in counties
21with 3,000,000 or more inhabitants, the chief county assessment
22officer shall include the following information with each
23assessment notice sent in a general assessment year: (1) a list
24of each homestead exemption available under Article 15 of this
25Code and a description of the eligibility criteria for that
26exemption; (2) a list of each homestead exemption applied to

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1the property in the current assessment year; (3) information
2regarding penalties and interest that may be incurred under
3this Section if the taxpayer received an erroneous homestead
4exemption in a previous taxable year; and (4) notice of the
560-day grace period available under this subsection. If, within
660 days after receiving his or her assessment notice, the
7taxpayer notifies the chief county assessment officer that he
8or she received an erroneous homestead exemption in a previous
9taxable year, and if the taxpayer pays the erroneous exemption
10principal amount, plus interest as provided in subsection (f),
11then the taxpayer shall not be liable for the penalties
12provided in subsection (f) with respect to that exemption.
13 (c) In counties with 3,000,000 or more inhabitants, when
14the chief county assessment officer determines that one or more
15erroneous homestead exemptions was applied to the property, the
16erroneous exemption principal amount, together with all
17applicable interest and penalties as provided in subsections
18(f) and (j), shall constitute a lien in the name of the People
19of Cook County on the property receiving the erroneous
20homestead exemption. Upon becoming aware of the existence of
21one or more erroneous homestead exemptions, the chief county
22assessment officer shall cause to be served, by both regular
23mail and certified mail, a notice of discovery as set forth in
24subsection (c-5). The chief county assessment officer in a
25county with 3,000,000 or more inhabitants may cause a lien to
26be recorded against property that (1) is located in the county

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1and (2) received one or more erroneous homestead exemptions if,
2upon determination of the chief county assessment officer, the
3taxpayer received: (A) one or 2 erroneous homestead exemptions
4for real property, including at least one erroneous homestead
5exemption granted for the property against which the lien is
6sought, during any of the 3 collection years immediately prior
7to the current collection year in which the notice of discovery
8is served; or (B) 3 or more erroneous homestead exemptions for
9real property, including at least one erroneous homestead
10exemption granted for the property against which the lien is
11sought, during any of the 6 collection years immediately prior
12to the current collection year in which the notice of discovery
13is served. Prior to recording the lien against the property,
14the chief county assessment officer shall cause to be served,
15by both regular mail and certified mail, return receipt
16requested, on the person to whom the most recent tax bill was
17mailed and the owner of record, a notice of intent to record a
18lien against the property. The chief county assessment officer
19shall cause the notice of intent to record a lien to be served
20within 3 years from the date on which the notice of discovery
21was served.
22 (c-5) The notice of discovery described in subsection (c)
23shall: (1) identify, by property index number, the property for
24which the chief county assessment officer has knowledge
25indicating the existence of an erroneous homestead exemption;
26(2) set forth the taxpayer's liability for principal, interest,

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1penalties, and administrative costs including, but not limited
2to, recording fees described in subsection (f); (3) inform the
3taxpayer that he or she will be served with a notice of intent
4to record a lien within 3 years from the date of service of the
5notice of discovery; (4) inform the taxpayer that he or she may
6pay the outstanding amount, plus interest, penalties, and
7administrative costs at any time prior to being served with the
8notice of intent to record a lien or within 30 days after the
9notice of intent to record a lien is served; and (5) inform the
10taxpayer that, if the taxpayer provided notice to the chief
11county assessment officer as provided in subsection (d-1) of
12Section 15-175 of this Code, upon submission by the taxpayer of
13evidence of timely notice and receipt thereof by the chief
14county assessment officer, the chief county assessment officer
15will withdraw the notice of discovery and reissue a notice of
16discovery in compliance with this Section in which the taxpayer
17is not liable for interest and penalties for the current tax
18year in which the notice was received.
19 For the purposes of this subsection (c-5):
20 "Collection year" means the year in which the first and
21second installment of the current tax year is billed.
22 "Current tax year" means the year prior to the collection
23year.
24 (d) The notice of intent to record a lien described in
25subsection (c) shall: (1) identify, by property index number,
26the property against which the lien is being sought; (2)

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

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

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

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

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1under Section 30 of the Conveyances Act.
2 (j) When a lien is filed against the property pursuant to
3this Section, the chief county assessment officer shall mail a
4copy of the lien to the person to whom the most recent tax bill
5was mailed and to the owner of record, and the outstanding
6liability created by such a lien is due and payable within 30
7days after the mailing of the lien by the chief county
8assessment officer. This liability is deemed delinquent and
9shall bear interest beginning on the day after the due date at
10a rate of 1.5% per month or portion thereof. Payment shall be
11made to the county treasurer. Upon receipt of the full amount
12due, as determined by the chief county assessment officer, the
13county treasurer shall distribute the amount paid as provided
14in subsection (k). Upon presentment by the taxpayer to the
15chief county assessment officer of proof of payment of the
16total liability, the chief county assessment officer shall
17provide in reasonable form a release of the lien. The release
18of the lien provided shall clearly inform the taxpayer that it
19is the responsibility of the taxpayer to record the lien
20release form with the county recorder of deeds and to pay any
21applicable recording fees.
22 (k) The county treasurer shall pay collected erroneous
23exemption principal amounts, pro rata, to the taxing districts,
24or their legal successors, that levied upon the subject
25property in the taxable year or years for which the erroneous
26homestead exemptions were granted, except as set forth in this

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1Section. The county treasurer shall deposit collected
2penalties and interest into a special fund established by the
3county treasurer to offset the costs of administration of the
4provisions of this Section by the chief county assessment
5officer's office, as appropriated by the county board. If the
6costs of administration of this Section exceed the amount of
7interest and penalties collected in the special fund, the chief
8county assessor shall be reimbursed by each taxing district or
9their legal successors for those costs. Such costs shall be
10paid out of the funds collected by the county treasurer on
11behalf of each taxing district pursuant to this Section.
12 (l) The chief county assessment officer in a county with
133,000,000 or more inhabitants shall establish an amnesty period
14for all taxpayers owing any tax due to an erroneous homestead
15exemption granted in a tax year prior to the 2013 tax year. The
16amnesty period shall begin on the effective date of this
17amendatory Act of the 98th General Assembly and shall run
18through December 31, 2013. If, during the amnesty period, the
19taxpayer pays the entire arrearage of taxes due for tax years
20prior to 2013, the county clerk shall abate and not seek to
21collect any interest or penalties that may be applicable and
22shall not seek civil or criminal prosecution for any taxpayer
23for tax years prior to 2013. Failure to pay all such taxes due
24during the amnesty period established under this Section shall
25invalidate the amnesty period for that taxpayer.
26 The chief county assessment officer in a county with

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13,000,000 or more inhabitants shall (i) mail notice of the
2amnesty period with the tax bills for the second installment of
3taxes for the 2012 assessment year and (ii) as soon as possible
4after the effective date of this amendatory Act of the 98th
5General Assembly, publish notice of the amnesty period in a
6newspaper of general circulation in the county. Notices shall
7include information on the amnesty period, its purpose, and the
8method by which to make payment.
9 Taxpayers who are a party to any criminal investigation or
10to any civil or criminal litigation that is pending in any
11circuit court or appellate court, or in the Supreme Court of
12this State, for nonpayment, delinquency, or fraud in relation
13to any property tax imposed by any taxing district located in
14the State on the effective date of this amendatory Act of the
1598th General Assembly may not take advantage of the amnesty
16period.
17 A taxpayer who has claimed 3 or more homestead exemptions
18in error shall not be eligible for the amnesty period
19established under this subsection.
20(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
2198-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
227-27-15; 99-851, eff. 8-19-16.)
23 (35 ILCS 200/Art. 10 Div. 20 heading new)
24
Division 20. Community stabilization assessment freeze pilot
25
program

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1 (35 ILCS 200/10-800) (was 35 ILCS 200/15-174)
2 Sec. 10-800 15-174. Community stabilization assessment
3freeze pilot program.
4 (a) Beginning January 1, 2015 and ending June 30, 2029, the
5chief county assessment officer of any county may reduce the
6assessed value of improvements to residential real property in
7accordance with subsection (b) for 10 taxable years after the
8improvements are put in service, if and only if all of the
9following factors have been met:
10 (1) the improvements are residential;
11 (2) the parcel was purchased or otherwise conveyed to
12 the taxpayer after January 1 of the taxable year and that
13 conveyance was not a tax sale as required under the
14 Property Tax Code;
15 (3) the parcel is located in a targeted area;
16 (4) for single family homes, the taxpayer occupies the
17 improvements on the parcel as his or her primary residence;
18 for residences of one to 6 units that will not be
19 owner-occupied, the taxpayer replaces 2 primary building
20 systems as outlined in this Section;
21 (5) the transfer from the holder of the prior mortgage
22 to the taxpayer was an arm's length transaction, in that
23 the taxpayer has no legal relationship to the holder of the
24 prior mortgage;
25 (6) an existing residential dwelling structure of no

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1 more than 6 units on the parcel was unoccupied at the time
2 of conveyance for a minimum of 6 months, or the parcel was
3 ordered by a court of competent jurisdiction to be
4 deconverted in accordance with the provisions governing
5 distressed condominiums as provided in the Condominium
6 Property Act;
7 (7) the parcel is clear of unreleased liens and has no
8 outstanding tax liabilities attached against it; and
9 (8) the purchase price did not exceed the Federal
10 Housing Administration's loan limits then in place for the
11 area in which the improvement is located.
12 To be eligible for the benefit conferred by this Section,
13residential units must (i) meet local building codes, or if
14there are no local building codes, Housing Quality Standards,
15as determined by the U.S. Department of Housing and Urban
16Development from time to time and (ii) be owner-occupied or in
17need of substantial rehabilitation. "Substantial
18rehabilitation" means, at a minimum, compliance with local
19building codes and the replacement or renovation of at least 2
20primary building systems. Although the cost of each primary
21building system may vary, the combined expenditure for making
22the building compliant with local codes and replacing primary
23building systems must be at least $5 per square foot, adjusted
24by the Consumer Price Index for All Urban Consumers, as
25published annually by the U.S. Department of Labor. "Primary
26building systems", together with their related

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1rehabilitations, specifically approved for this program are:
2 (1) Electrical. All electrical work must comply with
3 applicable codes; it may consist of a combination of any of
4 the following alternatives:
5 (A) installing individual equipment and appliance
6 branch circuits as required by code (the minimum being
7 a kitchen appliance branch circuit);
8 (B) installing a new emergency service, including
9 emergency lighting with all associated conduits and
10 wiring;
11 (C) rewiring all existing feeder conduits ("home
12 runs") from the main switchgear to apartment area
13 distribution panels;
14 (D) installing new in-wall conduits for
15 receptacles, switches, appliances, equipment, and
16 fixtures;
17 (E) replacing power wiring for receptacles,
18 switches, appliances, equipment, and fixtures;
19 (F) installing new light fixtures throughout the
20 building including closets and central areas;
21 (G) replacing, adding, or doing work as necessary
22 to bring all receptacles, switches, and other
23 electrical devices into code compliance;
24 (H) installing a new main service, including
25 conduit, cables into the building, and main disconnect
26 switch; and

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1 (I) installing new distribution panels, including
2 all panel wiring, terminals, circuit breakers, and all
3 other panel devices.
4 (2) Heating. All heating work must comply with
5 applicable codes; it may consist of a combination of any of
6 the following alternatives:
7 (A) installing a new system to replace one of the
8 following heat distribution systems: (i) piping and
9 heat radiating units, including new main line venting
10 and radiator venting; or (ii) duct work, diffusers, and
11 cold air returns; or (iii) any other type of existing
12 heat distribution and radiation/diffusion components;
13 or
14 (B) installing a new system to replace one of the
15 following heat generating units: (i) hot water/steam
16 boiler; (ii) gas furnace; or (iii) any other type of
17 existing heat generating unit.
18 (3) Plumbing. All plumbing work must comply with
19 applicable codes. Replace all or a part of the in-wall
20 supply and waste plumbing; however, main supply risers,
21 waste stacks and vents, and code-conforming waste lines
22 need not be replaced.
23 (4) Roofing. All roofing work must comply with
24 applicable codes; it may consist of either of the following
25 alternatives, separately or in combination:
26 (A) replacing all rotted roof decks and

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1 insulation; or
2 (B) replacing or repairing leaking roof membranes
3 (10% is the suggested minimum replacement of
4 membrane); restoration of the entire roof is an
5 acceptable substitute for membrane replacement.
6 (5) Exterior doors and windows. Replace the exterior
7 doors and windows. Renovation of ornate entry doors is an
8 acceptable substitute for replacement.
9 (6) Floors, walls, and ceilings. Finishes must be
10 replaced or covered over with new material. Acceptable
11 replacement or covering materials are as follows:
12 (A) floors must have new carpeting, vinyl tile,
13 ceramic, refurbished wood finish, or a similar
14 substitute;
15 (B) walls must have new drywall, including joint
16 taping and painting; or
17 (C) new ceilings must be either drywall, suspended
18 type, or a similar substitute.
19 (7) Exterior walls.
20 (A) replace loose or crumbling mortar and masonry
21 with new material;
22 (B) replace or paint wall siding and trim as
23 needed;
24 (C) bring porches and balconies to a sound
25 condition; or
26 (D) any combination of (A), (B), and (C).

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1 (8) Elevators. Where applicable, at least 4 of the
2 following 7 alternatives must be accomplished:
3 (A) replace or rebuild the machine room controls
4 and refurbish the elevator machine (or equivalent
5 mechanisms in the case of hydraulic elevators);
6 (B) replace hoistway electro-mechanical items
7 including: ropes, switches, limits, buffers, levelers,
8 and deflector sheaves (or equivalent mechanisms in the
9 case of hydraulic elevators);
10 (C) replace hoistway wiring;
11 (D) replace door operators and linkage;
12 (E) replace door panels at each opening;
13 (F) replace hall stations, car stations, and
14 signal fixtures; or
15 (G) rebuild the car shell and refinish the
16 interior.
17 (9) Health and safety.
18 (A) install or replace fire suppression systems;
19 (B) install or replace security systems; or
20 (C) environmental remediation of lead-based paint,
21 asbestos, leaking underground storage tanks, or radon.
22 (10) Energy conservation improvements undertaken to
23 limit the amount of solar energy absorbed by a building's
24 roof or to reduce energy use for the property, including
25 any of the following activities:
26 (A) installing or replacing reflective roof

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1 coatings (flat roofs);
2 (B) installing or replacing R-38 roof insulation;
3 (C) installing or replacing R-19 perimeter wall
4 insulation;
5 (D) installing or replacing insulated entry doors;
6 (E) installing or replacing Low E, insulated
7 windows;
8 (F) installing or replacing low-flow plumbing
9 fixtures;
10 (G) installing or replacing 90% sealed combustion
11 heating systems;
12 (H) installing or replacing direct exhaust hot
13 water heaters;
14 (I) installing or replacing mechanical ventilation
15 to exterior for kitchens and baths;
16 (J) installing or replacing Energy Star
17 appliances;
18 (K) installing low VOC interior paints on interior
19 finishes;
20 (L) installing or replacing fluorescent lighting
21 in common areas; or
22 (M) installing or replacing grading and
23 landscaping to promote on-site water retention.
24 (b) For the first 7 years after the improvements are placed
25in service, the assessed value of the improvements shall be
26reduced by an amount equal to 90% of the difference between the

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1base year assessed value of the improvements and the assessed
2value of the improvements in the current taxable year. The
3property will continue to be eligible for the benefits under
4this Section in the eighth and ninth taxable years after the
5improvements are placed in service, calculated as follows, if
6and only if all of the factors in subsection (a) of this
7Section continue to be met: in the eighth taxable year, the
8assessed value of the improvements shall be reduced by an
9amount equal to 65% of the difference between the base year
10assessed value of the improvements and the assessed value of
11the improvements in the current taxable year, and in the ninth
12taxable year, the assessed value of the improvements shall be
13reduced by an amount equal to 35% of the difference between the
14base year assessed value of the improvements and the assessed
15value of the improvements in the current taxable year. The
16benefit will cease in the tenth taxable year.
17 (c) In order to receive benefits under this Section, in
18addition to any information required by the chief county
19assessment officer, the taxpayer must also submit the following
20information to the chief county assessment officer for review:
21 (1) the owner's name;
22 (2) the postal address and permanent index number of
23 the parcel;
24 (3) a deed or other instrument conveying the parcel to
25 the current owner;
26 (4) evidence that the purchase price is within the

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1 Federal Housing Administration's loan limits for the area
2 in which the improvement is located;
3 (5) certification that the parcel was unoccupied at the
4 time of conveyance to the current owner for a minimum of at
5 least 6 months;
6 (6) evidence that the parcel is clear of unreleased
7 liens and has no outstanding tax liabilities attached
8 against it;
9 (7) evidence that the improvements meet local building
10 codes, or if there are no local building codes, Housing
11 Quality Standards, as determined by the U.S. Department of
12 Housing and Urban Development from time to time, which may
13 be shown by a certificate of occupancy issued by the
14 appropriate local government or the certification by a home
15 inspector licensed by the State of Illinois; and
16 (8) any additional information as reasonably required
17 by the chief county assessment officer.
18 (d) The chief county assessment officer shall notify the
19taxpayer as to whether or not the parcel meets the requirements
20of this Section. If the parcel does not meet the requirements
21of this Section, the chief county assessment officer shall
22provide written notice of any deficiencies to the taxpayer, who
23will then have 14 days from the date of notification to provide
24supplemental information showing compliance with this Section.
25If the taxpayer does not exercise this right to cure the
26deficiency, or if the information submitted, in the sole

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1judgment of the chief county assessment officer, is
2insufficient to meet the requirements of this Section, the
3chief county assessment officer shall provide a written
4explanation of the reasons for denial. A taxpayer may
5subsequently reapply for the benefit if the deficiencies are
6cured at a later date, but no later than 2019. The chief county
7assessment officer may charge a reasonable application fee to
8offset the administrative expenses associated with the
9program.
10 (e) The benefit conferred by this Section is limited as
11follows:
12 (1) The owner is eligible to apply for the benefit
13 conferred by this Section beginning January 1, 2015 through
14 December 31, 2019. If approved, the reduction will be
15 effective for the current taxable year, which will be
16 reflected in the tax bill issued in the following taxable
17 year.
18 (2) The reduction outlined in this Section shall
19 continue for a period of 10 years, and may not be extended
20 or renewed for any additional period.
21 (3) At the completion of the assessment freeze period
22 described here, the entire parcel will be assessed as
23 otherwise provided in this Code.
24 (4) If there is a transfer of ownership during the
25 period of the assessment freeze, then the benefit conferred
26 by this Section shall not apply on or after the date of

SB3242 Engrossed- 23 -LRB100 19223 HLH 34489 b
1 that transfer unless (i) the property is conveyed by an
2 owner who does not occupy the improvements as a primary
3 residence to an owner who will occupy the improvements as a
4 primary residence and (ii) all requirements of this Section
5 continue to be met.
6 (f) If the taxpayer does not occupy or intend to occupy the
7residential dwelling as his or her principal residence within a
8reasonable time, as determined by the chief county assessment
9officer, the taxpayer must:
10 (1) immediately secure the residential dwelling in
11 accordance with the requirements of this Section;
12 (2) complete sufficient rehabilitation to bring the
13 improvements into compliance with local building codes,
14 including, without limitation, regulations concerning
15 lead-based paint and asbestos remediation; and
16 (3) complete rehabilitation within 18 months of
17 conveyance.
18 (g) For the purposes of this Section,
19 "Base year" means the taxable year prior to the taxable
20 year in which the property is purchased by the eligible
21 homeowner.
22 "Secure" means that:
23 (1) all doors and windows are closed and secured
24 using secure doors, windows without broken or cracked
25 panes, commercial-quality metal security panels filled
26 with like-kind material as the surrounding wall, or

SB3242 Engrossed- 24 -LRB100 19223 HLH 34489 b
1 plywood installed and secured in accordance with local
2 ordinances; at least one building entrance shall be
3 accessible from the exterior and secured with a door
4 that is locked to allow access only to authorized
5 persons;
6 (2) all grass and weeds on the vacant residential
7 property are maintained below 10 inches in height,
8 unless a local ordinance imposes a lower height;
9 (3) debris, trash, and litter on any portion of the
10 exterior of the vacant residential property is removed
11 in compliance with local ordinance;
12 (4) fences, gates, stairs, and steps that lead to
13 the main entrance of the building are maintained in a
14 structurally sound and reasonable manner;
15 (5) the property is winterized when appropriate;
16 (6) the exterior of the improvements are
17 reasonably maintained to ensure the safety of
18 passersby; and
19 (7) vermin and pests are regularly exterminated on
20 the exterior and interior of the property.
21 "Targeted area" means a distressed community that
22 meets the geographic, poverty, and unemployment criteria
23 for a distressed community set forth in 12 C.F.R. 1806.200.
24(Source: P.A. 98-789, eff. 1-1-15.)
25 (35 ILCS 200/Art. 15 Div. 1 heading new)

SB3242 Engrossed- 25 -LRB100 19223 HLH 34489 b
1
Division 1. Non-homestead exemptions in all counties
2 (35 ILCS 200/15-13 new)
3 Sec. 15-13. Applicability. This Division 1 applies in all
4counties and encompasses this Section and Sections occurring
5after this Section and prior to Section 15-163.
6 (35 ILCS 200/Art. 15 Div. 2 heading new)
7
Division 2. Homestead exemptions in counties of 3,000,000 or
8
more inhabitants
9 (35 ILCS 200/15-163 new)
10 Sec. 15-163. Applicability. This Division 2 applies in
11counties with 3,000,000 or more inhabitants and encompasses
12this Section and Sections occurring after this Section and
13prior to Section 15-261.
14 (35 ILCS 200/15-167)
15 Sec. 15-167. Returning Veterans' Homestead Exemption.
16 (a) Beginning with taxable year 2007, a homestead
17exemption, limited to a reduction set forth under subsection
18(b), from the property's value, as equalized or assessed by the
19Department, is granted for property that is owned and occupied
20as the principal residence of a veteran returning from an armed
21conflict involving the armed forces of the United States who is
22liable for paying real estate taxes on the property and is an

SB3242 Engrossed- 26 -LRB100 19223 HLH 34489 b
1owner of record of the property or has a legal or equitable
2interest therein as evidenced by a written instrument, except
3for a leasehold interest, other than a leasehold interest of
4land on which a single family residence is located, which is
5occupied as the principal residence of a veteran returning from
6an armed conflict involving the armed forces of the United
7States who has an ownership interest therein, legal, equitable
8or as a lessee, and on which he or she is liable for the payment
9of property taxes. For purposes of the exemption under this
10Section, "veteran" means an Illinois resident who has served as
11a member of the United States Armed Forces, a member of the
12Illinois National Guard, or a member of the United States
13Reserve Forces.
14 (b) The In all counties, the reduction is $5,000 for the
15taxable year in which the veteran returns from active duty in
16an armed conflict involving the armed forces of the United
17States; however, if the veteran first acquires his or her
18principal residence during the taxable year in which he or she
19returns, but after January 1 of that year, and if the property
20is owned and occupied by the veteran as a principal residence
21on January 1 of the next taxable year, he or she may apply the
22exemption for the next taxable year, and only the next taxable
23year, after he or she returns. Beginning in taxable year 2010,
24the reduction shall also be allowed for the taxable year after
25the taxable year in which the veteran returns from active duty
26in an armed conflict involving the armed forces of the United

SB3242 Engrossed- 27 -LRB100 19223 HLH 34489 b
1States. For land improved with an apartment building owned and
2operated as a cooperative, the maximum reduction from the value
3of the property, as equalized by the Department, must be
4multiplied by the number of apartments or units occupied by a
5veteran returning from an armed conflict involving the armed
6forces of the United States who is liable, by contract with the
7owner or owners of record, for paying property taxes on the
8property and is an owner of record of a legal or equitable
9interest in the cooperative apartment building, other than a
10leasehold interest. In a cooperative where a homestead
11exemption has been granted, the cooperative association or the
12management firm of the cooperative or facility shall credit the
13savings resulting from that exemption only to the apportioned
14tax liability of the owner or resident who qualified for the
15exemption. Any person who willfully refuses to so credit the
16savings is guilty of a Class B misdemeanor.
17 (c) Application must be made during the application period
18in effect for the county of his or her residence. The assessor
19or chief county assessment officer may determine the
20eligibility of residential property to receive the homestead
21exemption provided by this Section by application, visual
22inspection, questionnaire, or other reasonable methods. The
23determination must be made in accordance with guidelines
24established by the Department.
25 (d) The exemption under this Section is in addition to any
26other homestead exemption provided in this Article 15.

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1Notwithstanding Sections 6 and 8 of the State Mandates Act, no
2reimbursement by the State is required for the implementation
3of any mandate created by this Section.
4(Source: P.A. 96-1288, eff. 7-26-10; 96-1418, eff. 8-2-10;
597-333, eff. 8-12-11.)
6 (35 ILCS 200/15-168)
7 Sec. 15-168. Homestead exemption for persons with
8disabilities.
9 (a) Beginning with taxable year 2007, an annual homestead
10exemption is granted to persons with disabilities in the amount
11of $2,000, except as provided in subsection (c), to be deducted
12from the property's value as equalized or assessed by the
13Department of Revenue. The person with a disability shall
14receive the homestead exemption upon meeting the following
15requirements:
16 (1) The property must be occupied as the primary
17 residence by the person with a disability.
18 (2) The person with a disability must be liable for
19 paying the real estate taxes on the property.
20 (3) The person with a disability must be an owner of
21 record of the property or have a legal or equitable
22 interest in the property as evidenced by a written
23 instrument. In the case of a leasehold interest in
24 property, the lease must be for a single family residence.
25 A person who has a disability during the taxable year is

SB3242 Engrossed- 29 -LRB100 19223 HLH 34489 b
1eligible to apply for this homestead exemption during that
2taxable year. Application must be made during the application
3period in effect for the county of residence. If a homestead
4exemption has been granted under this Section and the person
5awarded the exemption subsequently becomes a resident of a
6facility licensed under the Nursing Home Care Act, the
7Specialized Mental Health Rehabilitation Act of 2013, the ID/DD
8Community Care Act, or the MC/DD Act, then the exemption shall
9continue (i) so long as the residence continues to be occupied
10by the qualifying person's spouse or (ii) if the residence
11remains unoccupied but is still owned by the person qualified
12for the homestead exemption.
13 (b) For the purposes of this Section, "person with a
14disability" means a person unable to engage in any substantial
15gainful activity by reason of a medically determinable physical
16or mental impairment which can be expected to result in death
17or has lasted or can be expected to last for a continuous
18period of not less than 12 months. Persons with disabilities
19filing claims under this Act shall submit proof of disability
20in such form and manner as the Department shall by rule and
21regulation prescribe. Proof that a claimant is eligible to
22receive disability benefits under the Federal Social Security
23Act shall constitute proof of disability for purposes of this
24Act. Issuance of an Illinois Person with a Disability
25Identification Card stating that the claimant is under a Class
262 disability, as defined in Section 4A of the Illinois

SB3242 Engrossed- 30 -LRB100 19223 HLH 34489 b
1Identification Card Act, shall constitute proof that the person
2named thereon is a person with a disability for purposes of
3this Act. A person with a disability not covered under the
4Federal Social Security Act and not presenting an Illinois
5Person with a Disability Identification Card stating that the
6claimant is under a Class 2 disability shall be examined by a
7physician, advanced practice registered nurse, or physician
8assistant designated by the Department, and his status as a
9person with a disability determined using the same standards as
10used by the Social Security Administration. The costs of any
11required examination shall be borne by the claimant.
12 (c) For land improved with (i) an apartment building owned
13and operated as a cooperative or (ii) a life care facility as
14defined under Section 2 of the Life Care Facilities Act that is
15considered to be a cooperative, the maximum reduction from the
16value of the property, as equalized or assessed by the
17Department, shall be multiplied by the number of apartments or
18units occupied by a person with a disability. The person with a
19disability shall receive the homestead exemption upon meeting
20the following requirements:
21 (1) The property must be occupied as the primary
22 residence by the person with a disability.
23 (2) The person with a disability must be liable by
24 contract with the owner or owners of record for paying the
25 apportioned property taxes on the property of the
26 cooperative or life care facility. In the case of a life

SB3242 Engrossed- 31 -LRB100 19223 HLH 34489 b
1 care facility, the person with a disability must be liable
2 for paying the apportioned property taxes under a life care
3 contract as defined in Section 2 of the Life Care
4 Facilities Act.
5 (3) The person with a disability must be an owner of
6 record of a legal or equitable interest in the cooperative
7 apartment building. A leasehold interest does not meet this
8 requirement.
9If a homestead exemption is granted under this subsection, the
10cooperative association or management firm shall credit the
11savings resulting from the exemption to the apportioned tax
12liability of the qualifying person with a disability. The
13assessor chief county assessment officer may request
14reasonable proof that the association or firm has properly
15credited the exemption. A person who willfully refuses to
16credit an exemption to the qualified person with a disability
17is guilty of a Class B misdemeanor.
18 (d) The assessor chief county assessment officer shall
19determine the eligibility of property to receive the homestead
20exemption according to guidelines established by the
21Department. After a person has received an exemption under this
22Section, an annual verification of eligibility for the
23exemption shall be mailed to the taxpayer.
24 In counties with fewer than 3,000,000 inhabitants, the
25chief county assessment officer shall provide to each person
26granted a homestead exemption under this Section a form to

SB3242 Engrossed- 32 -LRB100 19223 HLH 34489 b
1designate any other person to receive a duplicate of any notice
2of delinquency in the payment of taxes assessed and levied
3under this Code on the person's qualifying property. The
4duplicate notice shall be in addition to the notice required to
5be provided to the person receiving the exemption and shall be
6given in the manner required by this Code. The person filing
7the request for the duplicate notice shall pay an
8administrative fee of $5 to the chief county assessment
9officer. The assessment officer shall then file the executed
10designation with the county collector, who shall issue the
11duplicate notices as indicated by the designation. A
12designation may be rescinded by the person with a disability in
13the manner required by the chief county assessment officer.
14 (e) A taxpayer who claims an exemption under Section 15-165
15or 15-169 may not claim an exemption under this Section.
16(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1799-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-513, eff.
181-1-18.)
19 (35 ILCS 200/15-169)
20 Sec. 15-169. Homestead exemption for veterans with
21disabilities.
22 (a) Beginning with taxable year 2007, an annual homestead
23exemption, limited to the amounts set forth in subsections (b)
24and (b-3), is granted for property that is used as a qualified
25residence by a veteran with a disability.

SB3242 Engrossed- 33 -LRB100 19223 HLH 34489 b
1 (b) For taxable years prior to 2015, the amount of the
2exemption under this Section is as follows:
3 (1) for veterans with a service-connected disability
4 of at least (i) 75% for exemptions granted in taxable years
5 2007 through 2009 and (ii) 70% for exemptions granted in
6 taxable year 2010 and each taxable year thereafter, as
7 certified by the United States Department of Veterans
8 Affairs, the annual exemption is $5,000; and
9 (2) for veterans with a service-connected disability
10 of at least 50%, but less than (i) 75% for exemptions
11 granted in taxable years 2007 through 2009 and (ii) 70% for
12 exemptions granted in taxable year 2010 and each taxable
13 year thereafter, as certified by the United States
14 Department of Veterans Affairs, the annual exemption is
15 $2,500.
16 (b-3) For taxable years 2015 and thereafter:
17 (1) if the veteran has a service connected disability
18 of 30% or more but less than 50%, as certified by the
19 United States Department of Veterans Affairs, then the
20 annual exemption is $2,500;
21 (2) if the veteran has a service connected disability
22 of 50% or more but less than 70%, as certified by the
23 United States Department of Veterans Affairs, then the
24 annual exemption is $5,000; and
25 (3) if the veteran has a service connected disability
26 of 70% or more, as certified by the United States

SB3242 Engrossed- 34 -LRB100 19223 HLH 34489 b
1 Department of Veterans Affairs, then the property is exempt
2 from taxation under this Code.
3 (b-5) If a homestead exemption is granted under this
4Section and the person awarded the exemption subsequently
5becomes a resident of a facility licensed under the Nursing
6Home Care Act or a facility operated by the United States
7Department of Veterans Affairs, then the exemption shall
8continue (i) so long as the residence continues to be occupied
9by the qualifying person's spouse or (ii) if the residence
10remains unoccupied but is still owned by the person who
11qualified for the homestead exemption.
12 (c) The tax exemption under this Section carries over to
13the benefit of the veteran's surviving spouse as long as the
14spouse holds the legal or beneficial title to the homestead,
15permanently resides thereon, and does not remarry. If the
16surviving spouse sells the property, an exemption not to exceed
17the amount granted from the most recent ad valorem tax roll may
18be transferred to his or her new residence as long as it is
19used as his or her primary residence and he or she does not
20remarry.
21 (c-1) Beginning with taxable year 2015, nothing in this
22Section shall require the veteran to have qualified for or
23obtained the exemption before death if the veteran was killed
24in the line of duty.
25 (d) The exemption under this Section applies for taxable
26year 2007 and thereafter. A taxpayer who claims an exemption

SB3242 Engrossed- 35 -LRB100 19223 HLH 34489 b
1under Section 15-165 or 15-168 may not claim an exemption under
2this Section.
3 (e) Each taxpayer who has been granted an exemption under
4this Section must reapply on an annual basis. Application must
5be made during the application period in effect for the county
6of his or her residence. The assessor or chief county
7assessment officer may determine the eligibility of
8residential property to receive the homestead exemption
9provided by this Section by application, visual inspection,
10questionnaire, or other reasonable methods. The determination
11must be made in accordance with guidelines established by the
12Department.
13 (f) For the purposes of this Section:
14 "Qualified residence" means real property, but less any
15portion of that property that is used for commercial purposes,
16with an equalized assessed value of less than $250,000 that is
17the primary residence of a veteran with a disability. Property
18rented for more than 6 months is presumed to be used for
19commercial purposes.
20 "Veteran" means an Illinois resident who has served as a
21member of the United States Armed Forces on active duty or
22State active duty, a member of the Illinois National Guard, or
23a member of the United States Reserve Forces and who has
24received an honorable discharge.
25(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
2699-375, eff. 8-17-15; 99-642, eff. 7-28-16.)

SB3242 Engrossed- 36 -LRB100 19223 HLH 34489 b
1 (35 ILCS 200/15-170)
2 Sec. 15-170. Senior citizens homestead exemption. An
3annual homestead exemption limited, except as described here
4with relation to cooperatives or life care facilities, to a
5maximum reduction set forth below from the property's value, as
6equalized or assessed by the Department, is granted for
7property that is occupied as a residence by a person 65 years
8of age or older who is liable for paying real estate taxes on
9the property and is an owner of record of the property or has a
10legal or equitable interest therein as evidenced by a written
11instrument, except for a leasehold interest, other than a
12leasehold interest of land on which a single family residence
13is located, which is occupied as a residence by a person 65
14years or older who has an ownership interest therein, legal,
15equitable or as a lessee, and on which he or she is liable for
16the payment of property taxes. Before taxable year 2004, the
17maximum reduction shall be $2,500 in counties with 3,000,000 or
18more inhabitants and $2,000 in all other counties. For taxable
19years 2004 through 2005, the maximum reduction shall be $3,000
20in all counties. For taxable years 2006 and 2007, the maximum
21reduction shall be $3,500. For taxable years 2008 through 2011,
22the maximum reduction is $4,000 in all counties. For taxable
23year 2012, the maximum reduction is $5,000 in counties with
243,000,000 or more inhabitants and $4,000 in all other counties.
25For taxable years 2013 through 2016, the maximum reduction is

SB3242 Engrossed- 37 -LRB100 19223 HLH 34489 b
1$5,000 in all counties. For taxable years 2017 and thereafter,
2the maximum reduction is $8,000 in counties with 3,000,000 or
3more inhabitants and $5,000 in all other counties.
4 For land improved with an apartment building owned and
5operated as a cooperative, the maximum reduction from the value
6of the property, as equalized by the Department, shall be
7multiplied by the number of apartments or units occupied by a
8person 65 years of age or older who is liable, by contract with
9the owner or owners of record, for paying property taxes on the
10property and is an owner of record of a legal or equitable
11interest in the cooperative apartment building, other than a
12leasehold interest. For land improved with a life care
13facility, the maximum reduction from the value of the property,
14as equalized by the Department, shall be multiplied by the
15number of apartments or units occupied by persons 65 years of
16age or older, irrespective of any legal, equitable, or
17leasehold interest in the facility, who are liable, under a
18contract with the owner or owners of record of the facility,
19for paying property taxes on the property. In a cooperative or
20a life care facility where a homestead exemption has been
21granted, the cooperative association or the management firm of
22the cooperative or facility shall credit the savings resulting
23from that exemption only to the apportioned tax liability of
24the owner or resident who qualified for the exemption. Any
25person who willfully refuses to so credit the savings shall be
26guilty of a Class B misdemeanor. Under this Section and

SB3242 Engrossed- 38 -LRB100 19223 HLH 34489 b
1Sections 15-175, 15-176, and 15-177, "life care facility" means
2a facility, as defined in Section 2 of the Life Care Facilities
3Act, with which the applicant for the homestead exemption has a
4life care contract as defined in that Act.
5 When a homestead exemption has been granted under this
6Section and the person qualifying subsequently becomes a
7resident of a facility licensed under the Assisted Living and
8Shared Housing Act, the Nursing Home Care Act, the Specialized
9Mental Health Rehabilitation Act of 2013, the ID/DD Community
10Care Act, or the MC/DD Act, the exemption shall continue so
11long as the residence continues to be occupied by the
12qualifying person's spouse if the spouse is 65 years of age or
13older, or if the residence remains unoccupied but is still
14owned by the person qualified for the homestead exemption.
15 A person who will be 65 years of age during the current
16assessment year shall be eligible to apply for the homestead
17exemption during that assessment year. Application shall be
18made during the application period in effect for the county of
19his residence.
20 Beginning with assessment year 2003, for taxes payable in
212004, property that is first occupied as a residence after
22January 1 of any assessment year by a person who is eligible
23for the senior citizens homestead exemption under this Section
24must be granted a pro-rata exemption for the assessment year.
25The amount of the pro-rata exemption is the exemption allowed
26in the county under this Section divided by 365 and multiplied

SB3242 Engrossed- 39 -LRB100 19223 HLH 34489 b
1by the number of days during the assessment year the property
2is occupied as a residence by a person eligible for the
3exemption under this Section. The assessor chief county
4assessment officer must adopt reasonable procedures to
5establish eligibility for this pro-rata exemption.
6 The assessor or chief county assessment officer may
7determine the eligibility of a life care facility to receive
8the benefits provided by this Section, by affidavit,
9application, visual inspection, questionnaire or other
10reasonable methods in order to insure that the tax savings
11resulting from the exemption are credited by the management
12firm to the apportioned tax liability of each qualifying
13resident. The assessor may request reasonable proof that the
14management firm has so credited the exemption.
15 The chief county assessment officer of each county with
16less than 3,000,000 inhabitants shall provide to each person
17allowed a homestead exemption under this Section a form to
18designate any other person to receive a duplicate of any notice
19of delinquency in the payment of taxes assessed and levied
20under this Code on the property of the person receiving the
21exemption. The duplicate notice shall be in addition to the
22notice required to be provided to the person receiving the
23exemption, and shall be given in the manner required by this
24Code. The person filing the request for the duplicate notice
25shall pay a fee of $5 to cover administrative costs to the
26supervisor of assessments, who shall then file the executed

SB3242 Engrossed- 40 -LRB100 19223 HLH 34489 b
1designation with the county collector. Notwithstanding any
2other provision of this Code to the contrary, the filing of
3such an executed designation requires the county collector to
4provide duplicate notices as indicated by the designation. A
5designation may be rescinded by the person who executed such
6designation at any time, in the manner and form required by the
7chief county assessment officer.
8 The assessor or chief county assessment officer may
9determine the eligibility of residential property to receive
10the homestead exemption provided by this Section by
11application, visual inspection, questionnaire or other
12reasonable methods. The determination shall be made in
13accordance with guidelines established by the Department.
14 Beginning In counties with 3,000,000 or more inhabitants,
15beginning in taxable year 2010, each taxpayer who has been
16granted an exemption under this Section must reapply on an
17annual basis. The assessor chief county assessment officer
18shall mail the application to the taxpayer. In counties with
19less than 3,000,000 inhabitants, the county board may by
20resolution provide that if a person has been granted a
21homestead exemption under this Section, the person qualifying
22need not reapply for the exemption.
23 In counties with less than 3,000,000 inhabitants, if the
24assessor or chief county assessment officer requires annual
25application for verification of eligibility for an exemption
26once granted under this Section, the application shall be

SB3242 Engrossed- 41 -LRB100 19223 HLH 34489 b
1mailed to the taxpayer.
2 The assessor or chief county assessment officer shall
3notify each person who qualifies for an exemption under this
4Section that the person may also qualify for deferral of real
5estate taxes under the Senior Citizens Real Estate Tax Deferral
6Act. The notice shall set forth the qualifications needed for
7deferral of real estate taxes, the address and telephone number
8of county collector, and a statement that applications for
9deferral of real estate taxes may be obtained from the county
10collector.
11 Notwithstanding Sections 6 and 8 of the State Mandates Act,
12no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
15 (35 ILCS 200/15-172)
16 Sec. 15-172. Senior Citizens Assessment Freeze Homestead
17Exemption.
18 (a) This Section may be cited as the Senior Citizens
19Assessment Freeze Homestead Exemption.
20 (b) As used in this Section:
21 "Applicant" means an individual who has filed an
22application under this Section.
23 "Base amount" means the base year equalized assessed value
24of the residence plus the first year's equalized assessed value
25of any added improvements which increased the assessed value of

SB3242 Engrossed- 42 -LRB100 19223 HLH 34489 b
1the residence after the base year.
2 "Base year" means the taxable year prior to the taxable
3year for which the applicant first qualifies and applies for
4the exemption provided that in the prior taxable year the
5property was improved with a permanent structure that was
6occupied as a residence by the applicant who was liable for
7paying real property taxes on the property and who was either
8(i) an owner of record of the property or had legal or
9equitable interest in the property as evidenced by a written
10instrument or (ii) had a legal or equitable interest as a
11lessee in the parcel of property that was single family
12residence. If in any subsequent taxable year for which the
13applicant applies and qualifies for the exemption the equalized
14assessed value of the residence is less than the equalized
15assessed value in the existing base year (provided that such
16equalized assessed value is not based on an assessed value that
17results from a temporary irregularity in the property that
18reduces the assessed value for one or more taxable years), then
19that subsequent taxable year shall become the base year until a
20new base year is established under the terms of this paragraph.
21For taxable year 1999 only, assessor the Chief County
22Assessment Officer shall review (i) all taxable years for which
23the applicant applied and qualified for the exemption and (ii)
24the existing base year. The assessor assessment officer shall
25select as the new base year the year with the lowest equalized
26assessed value. An equalized assessed value that is based on an

SB3242 Engrossed- 43 -LRB100 19223 HLH 34489 b
1assessed value that results from a temporary irregularity in
2the property that reduces the assessed value for one or more
3taxable years shall not be considered the lowest equalized
4assessed value. The selected year shall be the base year for
5taxable year 1999 and thereafter until a new base year is
6established under the terms of this paragraph.
7 "Chief County Assessment Officer" means the County
8Assessor or Supervisor of Assessments of the county in which
9the property is located.
10 "Equalized assessed value" means the assessed value as
11equalized by the Illinois Department of Revenue.
12 "Household" means the applicant, the spouse of the
13applicant, and all persons using the residence of the applicant
14as their principal place of residence.
15 "Household income" means the combined income of the members
16of a household for the calendar year preceding the taxable
17year.
18 "Income" has the same meaning as provided in Section 3.07
19of the Senior Citizens and Persons with Disabilities Property
20Tax Relief Act, except that, beginning in assessment year 2001,
21"income" does not include veteran's benefits.
22 "Internal Revenue Code of 1986" means the United States
23Internal Revenue Code of 1986 or any successor law or laws
24relating to federal income taxes in effect for the year
25preceding the taxable year.
26 "Life care facility that qualifies as a cooperative" means

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1a facility as defined in Section 2 of the Life Care Facilities
2Act.
3 "Maximum income limitation" means:
4 (1) $35,000 prior to taxable year 1999;
5 (2) $40,000 in taxable years 1999 through 2003;
6 (3) $45,000 in taxable years 2004 through 2005;
7 (4) $50,000 in taxable years 2006 and 2007;
8 (5) $55,000 in taxable years 2008 through 2016;
9 (6) for taxable years year 2017 and thereafter, (i)
10 $65,000 for all qualified property located in a county with
11 3,000,000 or more inhabitants and (ii) $55,000 for
12 qualified property located in a county with fewer than
13 3,000,000 inhabitants; and
14 (7) for taxable years 2018 and thereafter, $65,000 for
15 all qualified property.
16 "Residence" means the principal dwelling place and
17appurtenant structures used for residential purposes in this
18State occupied on January 1 of the taxable year by a household
19and so much of the surrounding land, constituting the parcel
20upon which the dwelling place is situated, as is used for
21residential purposes. If the assessor Chief County Assessment
22Officer has established a specific legal description for a
23portion of property constituting the residence, then that
24portion of property shall be deemed the residence for the
25purposes of this Section.
26 "Taxable year" means the calendar year during which ad

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1valorem property taxes payable in the next succeeding year are
2levied.
3 (c) Beginning in taxable year 1994, a senior citizens
4assessment freeze homestead exemption is granted for real
5property that is improved with a permanent structure that is
6occupied as a residence by an applicant who (i) is 65 years of
7age or older during the taxable year, (ii) has a household
8income that does not exceed the maximum income limitation,
9(iii) is liable for paying real property taxes on the property,
10and (iv) is an owner of record of the property or has a legal or
11equitable interest in the property as evidenced by a written
12instrument. This homestead exemption shall also apply to a
13leasehold interest in a parcel of property improved with a
14permanent structure that is a single family residence that is
15occupied as a residence by a person who (i) is 65 years of age
16or older during the taxable year, (ii) has a household income
17that does not exceed the maximum income limitation, (iii) has a
18legal or equitable ownership interest in the property as
19lessee, and (iv) is liable for the payment of real property
20taxes on that property.
21 The In counties of 3,000,000 or more inhabitants, the
22amount of the exemption for all taxable years is the equalized
23assessed value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

SB3242 Engrossed- 46 -LRB100 19223 HLH 34489 b
1thereafter, the amount of this exemption shall be the equalized
2assessed value of the residence in the taxable year for which
3application is made minus the base amount; and (ii) for taxable
4year 2006, the amount of the exemption is as follows:
5 (1) For an applicant who has a household income of
6 $45,000 or less, the amount of the exemption is the
7 equalized assessed value of the residence in the taxable
8 year for which application is made minus the base amount.
9 (2) For an applicant who has a household income
10 exceeding $45,000 but not exceeding $46,250, the amount of
11 the exemption is (i) the equalized assessed value of the
12 residence in the taxable year for which application is made
13 minus the base amount (ii) multiplied by 0.8.
14 (3) For an applicant who has a household income
15 exceeding $46,250 but not exceeding $47,500, the amount of
16 the exemption is (i) the equalized assessed value of the
17 residence in the taxable year for which application is made
18 minus the base amount (ii) multiplied by 0.6.
19 (4) For an applicant who has a household income
20 exceeding $47,500 but not exceeding $48,750, the amount of
21 the exemption is (i) the equalized assessed value of the
22 residence in the taxable year for which application is made
23 minus the base amount (ii) multiplied by 0.4.
24 (5) For an applicant who has a household income
25 exceeding $48,750 but not exceeding $50,000, the amount of
26 the exemption is (i) the equalized assessed value of the

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1 residence in the taxable year for which application is made
2 minus the base amount (ii) multiplied by 0.2.
3 When the applicant is a surviving spouse of an applicant
4for a prior year for the same residence for which an exemption
5under this Section has been granted, the base year and base
6amount for that residence are the same as for the applicant for
7the prior year.
8 Each year at the time the assessment books are certified to
9the County Clerk, the Board of Review or Board of Appeals shall
10give to the County Clerk a list of the assessed values of
11improvements on each parcel qualifying for this exemption that
12were added after the base year for this parcel and that
13increased the assessed value of the property.
14 In the case of land improved with an apartment building
15owned and operated as a cooperative or a building that is a
16life care facility that qualifies as a cooperative, the maximum
17reduction from the equalized assessed value of the property is
18limited to the sum of the reductions calculated for each unit
19occupied as a residence by a person or persons (i) 65 years of
20age or older, (ii) with a household income that does not exceed
21the maximum income limitation, (iii) who is liable, by contract
22with the owner or owners of record, for paying real property
23taxes on the property, and (iv) who is an owner of record of a
24legal or equitable interest in the cooperative apartment
25building, other than a leasehold interest. In the instance of a
26cooperative where a homestead exemption has been granted under

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1this Section, the cooperative association or its management
2firm shall credit the savings resulting from that exemption
3only to the apportioned tax liability of the owner who
4qualified for the exemption. Any person who willfully refuses
5to credit that savings to an owner who qualifies for the
6exemption is guilty of a Class B misdemeanor.
7 When a homestead exemption has been granted under this
8Section and an applicant then becomes a resident of a facility
9licensed under the Assisted Living and Shared Housing Act, the
10Nursing Home Care Act, the Specialized Mental Health
11Rehabilitation Act of 2013, the ID/DD Community Care Act, or
12the MC/DD Act, the exemption shall be granted in subsequent
13years so long as the residence (i) continues to be occupied by
14the qualified applicant's spouse or (ii) if remaining
15unoccupied, is still owned by the qualified applicant for the
16homestead exemption.
17 Beginning January 1, 1997, when an individual dies who
18would have qualified for an exemption under this Section, and
19the surviving spouse does not independently qualify for this
20exemption because of age, the exemption under this Section
21shall be granted to the surviving spouse for the taxable year
22preceding and the taxable year of the death, provided that,
23except for age, the surviving spouse meets all other
24qualifications for the granting of this exemption for those
25years.
26 When married persons maintain separate residences, the

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1exemption provided for in this Section may be claimed by only
2one of such persons and for only one residence.
3 For taxable year 1994 only, in counties having less than
43,000,000 inhabitants, to receive the exemption, a person shall
5submit an application by February 15, 1995 to the Chief County
6Assessment Officer of the county in which the property is
7located. In counties having 3,000,000 or more inhabitants, for
8taxable year 1994 and all subsequent taxable years, to receive
9the exemption, a person may submit an application to the
10assessor Chief County Assessment Officer of the county in which
11the property is located during such period as may be specified
12by the assessor Chief County Assessment Officer. The
13assessorChief County Assessment Officer in counties of
143,000,000 or more inhabitants shall annually give notice of the
15application period by mail or by publication. In counties
16having less than 3,000,000 inhabitants, beginning with taxable
17year 1995 and thereafter, to receive the exemption, a person
18shall submit an application by July 1 of each taxable year to
19the Chief County Assessment Officer of the county in which the
20property is located. A county may, by ordinance, establish a
21date for submission of applications that is different than July
221. The applicant shall submit with the application an affidavit
23of the applicant's total household income, age, marital status
24(and if married the name and address of the applicant's spouse,
25if known), and principal dwelling place of members of the
26household on January 1 of the taxable year. The Department

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1shall establish, by rule, a method for verifying the accuracy
2of affidavits filed by applicants under this Section, and the
3Chief County Assessment Officer may conduct audits of any
4taxpayer claiming an exemption under this Section to verify
5that the taxpayer is eligible to receive the exemption. Each
6application shall contain or be verified by a written
7declaration that it is made under the penalties of perjury. A
8taxpayer's signing a fraudulent application under this Act is
9perjury, as defined in Section 32-2 of the Criminal Code of
102012. The applications shall be clearly marked as applications
11for the Senior Citizens Assessment Freeze Homestead Exemption
12and must contain a notice that any taxpayer who receives the
13exemption is subject to an audit by the assessor Chief County
14Assessment Officer.
15 Notwithstanding any other provision to the contrary, in
16counties having fewer than 3,000,000 inhabitants, if an
17applicant fails to file the application required by this
18Section in a timely manner and this failure to file is due to a
19mental or physical condition sufficiently severe so as to
20render the applicant incapable of filing the application in a
21timely manner, the Chief County Assessment Officer may extend
22the filing deadline for a period of 30 days after the applicant
23regains the capability to file the application, but in no case
24may the filing deadline be extended beyond 3 months of the
25original filing deadline. In order to receive the extension
26provided in this paragraph, the applicant shall provide the

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1Chief County Assessment Officer with a signed statement from
2the applicant's physician, advanced practice registered nurse,
3or physician assistant stating the nature and extent of the
4condition, that, in the physician's, advanced practice
5registered nurse's, or physician assistant's opinion, the
6condition was so severe that it rendered the applicant
7incapable of filing the application in a timely manner, and the
8date on which the applicant regained the capability to file the
9application.
10 Beginning January 1, 1998, notwithstanding any other
11provision to the contrary, in counties having fewer than
123,000,000 inhabitants, if an applicant fails to file the
13application required by this Section in a timely manner and
14this failure to file is due to a mental or physical condition
15sufficiently severe so as to render the applicant incapable of
16filing the application in a timely manner, the Chief County
17Assessment Officer may extend the filing deadline for a period
18of 3 months. In order to receive the extension provided in this
19paragraph, the applicant shall provide the Chief County
20Assessment Officer with a signed statement from the applicant's
21physician, advanced practice registered nurse, or physician
22assistant stating the nature and extent of the condition, and
23that, in the physician's, advanced practice registered
24nurse's, or physician assistant's opinion, the condition was so
25severe that it rendered the applicant incapable of filing the
26application in a timely manner.

SB3242 Engrossed- 52 -LRB100 19223 HLH 34489 b
1 In counties having less than 3,000,000 inhabitants, if an
2applicant was denied an exemption in taxable year 1994 and the
3denial occurred due to an error on the part of an assessment
4official, or his or her agent or employee, then beginning in
5taxable year 1997 the applicant's base year, for purposes of
6determining the amount of the exemption, shall be 1993 rather
7than 1994. In addition, in taxable year 1997, the applicant's
8exemption shall also include an amount equal to (i) the amount
9of any exemption denied to the applicant in taxable year 1995
10as a result of using 1994, rather than 1993, as the base year,
11(ii) the amount of any exemption denied to the applicant in
12taxable year 1996 as a result of using 1994, rather than 1993,
13as the base year, and (iii) the amount of the exemption
14erroneously denied for taxable year 1994.
15 For purposes of this Section, a person who will be 65 years
16of age during the current taxable year shall be eligible to
17apply for the homestead exemption during that taxable year.
18Application shall be made during the application period in
19effect for the county of his or her residence.
20 The assessor Chief County Assessment Officer may determine
21the eligibility of a life care facility that qualifies as a
22cooperative to receive the benefits provided by this Section by
23use of an affidavit, application, visual inspection,
24questionnaire, or other reasonable method in order to insure
25that the tax savings resulting from the exemption are credited
26by the management firm to the apportioned tax liability of each

SB3242 Engrossed- 53 -LRB100 19223 HLH 34489 b
1qualifying resident. The assessor Chief County Assessment
2Officer may request reasonable proof that the management firm
3has so credited that exemption.
4 Except as provided in this Section, all information
5received by the assessor chief county assessment officer or the
6Department from applications filed under this Section, or from
7any investigation conducted under the provisions of this
8Section, shall be confidential, except for official purposes or
9pursuant to official procedures for collection of any State or
10local tax or enforcement of any civil or criminal penalty or
11sanction imposed by this Act or by any statute or ordinance
12imposing a State or local tax. Any person who divulges any such
13information in any manner, except in accordance with a proper
14judicial order, is guilty of a Class A misdemeanor.
15 Nothing contained in this Section shall prevent the
16Director or assessor chief county assessment officer from
17publishing or making available reasonable statistics
18concerning the operation of the exemption contained in this
19Section in which the contents of claims are grouped into
20aggregates in such a way that information contained in any
21individual claim shall not be disclosed.
22 Notwithstanding any other provision of law, for taxable
23year 2017 and thereafter, in counties of 3,000,000 or more
24inhabitants, the amount of the exemption shall be the greater
25of (i) the amount of the exemption otherwise calculated under
26this Section or (ii) $2,000.

SB3242 Engrossed- 54 -LRB100 19223 HLH 34489 b
1 (d) Each assessor Chief County Assessment Officer shall
2annually publish a notice of availability of the exemption
3provided under this Section. The notice shall be published at
4least 60 days but no more than 75 days prior to the date on
5which the application must be submitted to the assessor Chief
6County Assessment Officer of the county in which the property
7is located. The notice shall appear in a newspaper of general
8circulation in the county.
9 Notwithstanding Sections 6 and 8 of the State Mandates Act,
10no reimbursement by the State is required for the
11implementation of any mandate created by this Section.
12(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1399-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
148-25-17; 100-513, eff. 1-1-18; revised 9-25-17.)
15 (35 ILCS 200/15-173)
16 Sec. 15-173. Natural Disaster Homestead Exemption.
17 (a) This Section may be cited as the Natural Disaster
18Homestead Exemption.
19 (b) As used in this Section:
20 "Base amount" means the base year equalized assessed value
21of the residence.
22 "Base year" means the taxable year prior to the taxable
23year in which the natural disaster occurred.
24 "Chief county assessment officer" means the County
25Assessor or Supervisor of Assessments of the county in which

SB3242 Engrossed- 55 -LRB100 19223 HLH 34489 b
1the property is located.
2 "Equalized assessed value" means the assessed value as
3equalized by the Illinois Department of Revenue.
4 "Homestead property" has the meaning ascribed to that term
5in Section 15-175 of this Code.
6 "Natural disaster" means an occurrence of widespread or
7severe damage or loss of property resulting from any
8catastrophic cause including but not limited to fire, flood,
9earthquake, wind, storm, or extended period of severe inclement
10weather. In the case of a residential structure affected by
11flooding, the structure shall not be eligible for this
12homestead improvement exemption unless it is located within a
13local jurisdiction which is participating in the National Flood
14Insurance Program. A proclamation of disaster by the President
15of the United States or Governor of the State of Illinois is
16not a prerequisite to the classification of an occurrence as a
17natural disaster under this Section.
18 (c) A homestead exemption shall be granted by the assessor
19chief county assessment officer for homestead properties
20containing a residential structure that has been rebuilt
21following a natural disaster occurring in taxable year 2012 or
22any taxable year thereafter. The amount of the exemption is the
23equalized assessed value of the residence in the first taxable
24year for which the taxpayer applies for an exemption under this
25Section minus the base amount. To be eligible for an exemption
26under this Section: (i) the residential structure must be

SB3242 Engrossed- 56 -LRB100 19223 HLH 34489 b
1rebuilt within 2 years after the date of the natural disaster;
2and (ii) the square footage of the rebuilt residential
3structure may not be more than 110% of the square footage of
4the original residential structure as it existed immediately
5prior to the natural disaster. The taxpayer's initial
6application for an exemption under this Section must be made no
7later than the first taxable year after the residential
8structure is rebuilt. The exemption shall continue at the same
9annual amount until the taxable year in which the property is
10sold or transferred.
11 (d) To receive the exemption, the taxpayer shall submit an
12application to the assessor chief county assessment officer of
13the county in which the property is located by July 1 of each
14taxable year. A county may, by resolution, establish a date for
15submission of applications that is different than July 1. The
16assessor chief county assessment officer may require
17additional documentation to be provided by the applicant. The
18applications shall be clearly marked as applications for the
19Natural Disaster Homestead Exemption.
20 (e) Property is not eligible for an exemption under this
21Section and Section 15-180 for the same natural disaster or
22catastrophic event. The property may, however, remain eligible
23for an additional exemption under Section 15-180 for any
24separate event occurring after the property qualified for an
25exemption under this Section.
26 (f) The exemption under this Section carries over to the

SB3242 Engrossed- 57 -LRB100 19223 HLH 34489 b
1benefit of the surviving spouse as long as the spouse holds the
2legal or beneficial title to the homestead and permanently
3resides thereon.
4 (g) Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 97-716, eff. 6-29-12.)
8 (35 ILCS 200/15-175)
9 Sec. 15-175. General homestead exemption.
10 (a) Except as provided in Sections 15-176 and 15-177,
11homestead property is entitled to an annual homestead exemption
12limited, except as described here with relation to
13cooperatives, to a reduction in the equalized assessed value of
14homestead property equal to the increase in equalized assessed
15value for the current assessment year above the equalized
16assessed value of the property for 1977, up to the maximum
17reduction set forth below. If however, the 1977 equalized
18assessed value upon which taxes were paid is subsequently
19determined by local assessing officials, the Property Tax
20Appeal Board, or a court to have been excessive, the equalized
21assessed value which should have been placed on the property
22for 1977 shall be used to determine the amount of the
23exemption.
24 (b) Except as provided in Section 15-176, the maximum
25reduction before taxable year 2004 shall be $4,500 in counties

SB3242 Engrossed- 58 -LRB100 19223 HLH 34489 b
1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177, for
3taxable years 2004 through 2007, the maximum reduction shall be
4$5,000, for taxable year 2008, the maximum reduction is $5,500,
5and, for taxable years 2009 through 2011, the maximum reduction
6is $6,000 in all counties. For taxable years 2012 through 2016,
7the maximum reduction is $7,000 in counties with 3,000,000 or
8more inhabitants and $6,000 in all other counties. For taxable
9years 2017 and thereafter, the maximum reduction is $10,000 in
10counties with 3,000,000 or more inhabitants and $6,000 in all
11other counties. If a county has elected to subject itself to
12the provisions of Section 15-176 as provided in subsection (k)
13of that Section, then, for the first taxable year only after
14the provisions of Section 15-176 no longer apply, for owners
15who, for the taxable year, have not been granted a senior
16citizens assessment freeze homestead exemption under Section
1715-172 or a long-time occupant homestead exemption under
18Section 15-177, there shall be an additional exemption of
19$5,000 for owners with a household income of $30,000 or less.
20 (c) (Blank). In counties with fewer than 3,000,000
21inhabitants, if, based on the most recent assessment, the
22equalized assessed value of the homestead property for the
23current assessment year is greater than the equalized assessed
24value of the property for 1977, the owner of the property shall
25automatically receive the exemption granted under this Section
26in an amount equal to the increase over the 1977 assessment up

SB3242 Engrossed- 59 -LRB100 19223 HLH 34489 b
1to the maximum reduction set forth in this Section.
2 (d) If in any assessment year beginning with the 2000
3assessment year, homestead property has a pro-rata valuation
4under Section 9-180 resulting in an increase in the assessed
5valuation, a reduction in equalized assessed valuation equal to
6the increase in equalized assessed value of the property for
7the year of the pro-rata valuation above the equalized assessed
8value of the property for 1977 shall be applied to the property
9on a proportionate basis for the period the property qualified
10as homestead property during the assessment year. The maximum
11proportionate homestead exemption shall not exceed the maximum
12homestead exemption allowed in the county under this Section
13divided by 365 and multiplied by the number of days the
14property qualified as homestead property.
15 (d-1) Where In counties with 3,000,000 or more inhabitants,
16where the chief county assessment officer provides a notice of
17discovery, if a property is not occupied by its owner as a
18principal residence as of January 1 of the current tax year,
19then the property owner shall notify the chief county
20assessment officer of that fact on a form prescribed by the
21chief county assessment officer. That notice must be received
22by the chief county assessment officer on or before March 1 of
23the collection year. If mailed, the form shall be sent by
24certified mail, return receipt requested. If the form is
25provided in person, the chief county assessment officer shall
26provide a date stamped copy of the notice. Failure to provide

SB3242 Engrossed- 60 -LRB100 19223 HLH 34489 b
1timely notice pursuant to this subsection (d-1) shall result in
2the exemption being treated as an erroneous exemption. Upon
3timely receipt of the notice for the current tax year, no
4exemption shall be applied to the property for the current tax
5year. If the exemption is not removed upon timely receipt of
6the notice by the chief assessment officer, then the error is
7considered granted as a result of a clerical error or omission
8on the part of the chief county assessment officer as described
9in subsection (h) of Section 9-275, and the property owner
10shall not be liable for the payment of interest and penalties
11due to the erroneous exemption for the current tax year for
12which the notice was filed after the date that notice was
13timely received pursuant to this subsection. Notice provided
14under this subsection shall not constitute a defense or amnesty
15for prior year erroneous exemptions.
16 For the purposes of this subsection (d-1):
17 "Collection year" means the year in which the first and
18second installment of the current tax year is billed.
19 "Current tax year" means the year prior to the collection
20year.
21 (e) The assessor chief county assessment officer may, when
22considering whether to grant a leasehold exemption under this
23Section, 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

SB3242 Engrossed- 61 -LRB100 19223 HLH 34489 b
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 assessor chief county assessment officer by the owner of
4 the 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

SB3242 Engrossed- 62 -LRB100 19223 HLH 34489 b
1lessee vacates the property, then the assessor chief county
2assessment officer may require the owner of the property to
3notify the assessor chief county assessment officer of that
4change.
5 This subsection (e) does not apply to leasehold interests
6in property owned by a municipality.
7 (f) "Homestead property" under this Section includes
8residential property that is occupied by its owner or owners as
9his or their principal dwelling place, or that is a leasehold
10interest on which a single family residence is situated, which
11is occupied as a residence by a person who has an ownership
12interest therein, legal or equitable or as a lessee, and on
13which the person is liable for the payment of property taxes.
14For land improved with an apartment building owned and operated
15as a cooperative or a building which is a life care facility as
16defined in Section 15-170 and considered to be a cooperative
17under Section 15-170, the maximum reduction from the equalized
18assessed value shall be limited to the increase in the value
19above the equalized assessed value of the property for 1977, up
20to the maximum reduction set forth above, multiplied by the
21number of apartments or units occupied by a person or persons
22who is liable, by contract with the owner or owners of record,
23for paying property taxes on the property and is an owner of
24record of a legal or equitable interest in the cooperative
25apartment building, other than a leasehold interest. For
26purposes of this Section, the term "life care facility" has the

SB3242 Engrossed- 63 -LRB100 19223 HLH 34489 b
1meaning stated in Section 15-170.
2 "Household", as used in this Section, means the owner, the
3spouse of the owner, and all persons using the residence of the
4owner as their principal place of residence.
5 "Household income", as used in this Section, means the
6combined income of the members of a household for the calendar
7year preceding the taxable year.
8 "Income", as used in this Section, has the same meaning as
9provided in Section 3.07 of the Senior Citizens and Persons
10with Disabilities Property Tax Relief Act, except that "income"
11does not include veteran's benefits.
12 (g) In a cooperative where a homestead exemption has been
13granted, the cooperative association or its management firm
14shall credit the savings resulting from that exemption only to
15the apportioned tax liability of the owner who qualified for
16the exemption. Any person who willfully refuses to so credit
17the savings shall be guilty of a Class B misdemeanor.
18 (h) Where married persons maintain and reside in separate
19residences qualifying as homestead property, each residence
20shall receive 50% of the total reduction in equalized assessed
21valuation provided by this Section.
22 (i) The In all counties, the assessor or chief county
23assessment officer may determine the eligibility of
24residential property to receive the homestead exemption and the
25amount of the exemption by application, visual inspection,
26questionnaire or other reasonable methods. The determination

SB3242 Engrossed- 64 -LRB100 19223 HLH 34489 b
1shall be made in accordance with guidelines established by the
2Department, provided that the taxpayer applying for an
3additional general exemption under this Section shall submit to
4the assessor chief county assessment officer an application
5with an affidavit of the applicant's total household income,
6age, marital status (and, if married, the name and address of
7the applicant's spouse, if known), and principal dwelling place
8of members of the household on January 1 of the taxable year.
9The Department shall issue guidelines establishing a method for
10verifying the accuracy of the affidavits filed by applicants
11under this paragraph. The applications shall be clearly marked
12as applications for the Additional General Homestead
13Exemption.
14 (i-5) This subsection (i-5) applies to counties with
153,000,000 or more inhabitants. In the event of a sale of
16homestead property, the homestead exemption shall remain in
17effect for the remainder of the assessment year of the sale.
18Upon receipt of a transfer declaration transmitted by the
19recorder pursuant to Section 31-30 of the Real Estate Transfer
20Tax Law for property receiving an exemption under this Section,
21the assessor shall mail a notice and forms to the new owner of
22the property providing information pertaining to the rules and
23applicable filing periods for applying or reapplying for
24homestead exemptions under this Code for which the property may
25be eligible. If the new owner fails to apply or reapply for a
26homestead exemption during the applicable filing period or the

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1property no longer qualifies for an existing homestead
2exemption, the assessor shall cancel such exemption for any
3ensuing assessment year.
4 (j) (Blank). In counties with fewer than 3,000,000
5inhabitants, in the event of a sale of homestead property the
6homestead exemption shall remain in effect for the remainder of
7the assessment year of the sale. The assessor or chief county
8assessment officer may require the new owner of the property to
9apply for the homestead exemption for the following assessment
10year.
11 (k) Notwithstanding Sections 6 and 8 of the State Mandates
12Act, no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
1599-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
168-25-17.)
17 (35 ILCS 200/15-176)
18 Sec. 15-176. Alternative general homestead exemption.
19 (a) For the assessment years as determined under subsection
20(j), in any county that has elected, by an ordinance in
21accordance with subsection (k), to be subject to the provisions
22of this Section in lieu of the provisions of Section 15-175,
23homestead property is entitled to an annual homestead exemption
24equal to a reduction in the property's equalized assessed value
25calculated as provided in this Section.

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1 (b) As used in this Section:
2 (1) "Assessor" means the supervisor of assessments or
3 the chief county assessment officer of each county.
4 (2) "Adjusted homestead value" means the lesser of the
5 following values:
6 (A) The property's base homestead value increased
7 by 7% for each tax year after the base year through and
8 including the current tax year, or, if the property is
9 sold or ownership is otherwise transferred, the
10 property's base homestead value increased by 7% for
11 each tax year after the year of the sale or transfer
12 through and including the current tax year. The
13 increase by 7% each year is an increase by 7% over the
14 prior year.
15 (B) The property's equalized assessed value for
16 the current tax year minus: (i) $4,500 in Cook County
17 or $3,500 in all other counties in tax year 2003; (ii)
18 $5,000 in all counties in tax years 2004 and 2005; and
19 (iii) the lesser of the amount of the general homestead
20 exemption under Section 15-175 or an amount equal to
21 the increase in the equalized assessed value for the
22 current tax year above the equalized assessed value for
23 1977 in tax year 2006 and thereafter.
24 (3) "Base homestead value".
25 (A) Except as provided in subdivision (b)(3)(A-5)
26 or (b)(3)(B), "base homestead value" means the

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1 equalized assessed value of the property for the base
2 year prior to exemptions, minus (i) $4,500 in Cook
3 County or $3,500 in all other counties in tax year
4 2003, (ii) $5,000 in all counties in tax years 2004 and
5 2005, or (iii) the lesser of the amount of the general
6 homestead exemption under Section 15-175 or an amount
7 equal to the increase in the equalized assessed value
8 for the current tax year above the equalized assessed
9 value for 1977 in tax year 2006 and thereafter,
10 provided that it was assessed for that year as
11 residential property qualified for any of the
12 homestead exemptions under Sections 15-170 through
13 15-175 of this Code, then in force, and further
14 provided that the property's assessment was not based
15 on a reduced assessed value resulting from a temporary
16 irregularity in the property for that year. Except as
17 provided in subdivision (b)(3)(B), if the property did
18 not have a residential equalized assessed value for the
19 base year, then "base homestead value" means the base
20 homestead value established by the assessor under
21 subsection (c).
22 (A-5) On or before September 1, 2007, in Cook
23 County, the base homestead value, as set forth under
24 subdivision (b)(3)(A) and except as provided under
25 subdivision (b) (3) (B), must be recalculated as the
26 equalized assessed value of the property for the base

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1 year, prior to exemptions, minus:
2 (1) if the general assessment year for the
3 property was 2003, the lesser of (i) $4,500 or (ii)
4 the amount equal to the increase in equalized
5 assessed value for the 2002 tax year above the
6 equalized assessed value for 1977;
7 (2) if the general assessment year for the
8 property was 2004, the lesser of (i) $4,500 or (ii)
9 the amount equal to the increase in equalized
10 assessed value for the 2003 tax year above the
11 equalized assessed value for 1977;
12 (3) if the general assessment year for the
13 property was 2005, the lesser of (i) $5,000 or (ii)
14 the amount equal to the increase in equalized
15 assessed value for the 2004 tax year above the
16 equalized assessed value for 1977.
17 (B) If the property is sold or ownership is
18 otherwise transferred, other than sales or transfers
19 between spouses or between a parent and a child, "base
20 homestead value" means the equalized assessed value of
21 the property at the time of the sale or transfer prior
22 to exemptions, minus: (i) $4,500 in Cook County or
23 $3,500 in all other counties in tax year 2003; (ii)
24 $5,000 in all counties in tax years 2004 and 2005; and
25 (iii) the lesser of the amount of the general homestead
26 exemption under Section 15-175 or an amount equal to

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1 the increase in the equalized assessed value for the
2 current tax year above the equalized assessed value for
3 1977 in tax year 2006 and thereafter, provided that it
4 was assessed as residential property qualified for any
5 of the homestead exemptions under Sections 15-170
6 through 15-175 of this Code, then in force, and further
7 provided that the property's assessment was not based
8 on a reduced assessed value resulting from a temporary
9 irregularity in the property.
10 (3.5) "Base year" means (i) tax year 2002 in Cook
11 County or (ii) tax year 2008 or 2009 in all other counties
12 in accordance with the designation made by the county as
13 provided in subsection (k).
14 (4) "Current tax year" means the tax year for which the
15 exemption under this Section is being applied.
16 (5) "Equalized assessed value" means the property's
17 assessed value as equalized by the Department.
18 (6) "Homestead" or "homestead property" means:
19 (A) Residential property that as of January 1 of
20 the tax year is occupied by its owner or owners as his,
21 her, or their principal dwelling place, or that is a
22 leasehold interest on which a single family residence
23 is situated, that is occupied as a residence by a
24 person who has a legal or equitable interest therein
25 evidenced by a written instrument, as an owner or as a
26 lessee, and on which the person is liable for the

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1 payment of property taxes. Residential units in an
2 apartment building owned and operated as a
3 cooperative, or as a life care facility, which are
4 occupied by persons who hold a legal or equitable
5 interest in the cooperative apartment building or life
6 care facility as owners or lessees, and who are liable
7 by contract for the payment of property taxes, shall be
8 included within this definition of homestead property.
9 (B) A homestead includes the dwelling place,
10 appurtenant structures, and so much of the surrounding
11 land constituting the parcel on which the dwelling
12 place is situated as is used for residential purposes.
13 If the assessor has established a specific legal
14 description for a portion of property constituting the
15 homestead, then the homestead shall be limited to the
16 property within that description.
17 (7) "Life care facility" means a facility as defined in
18 Section 2 of the Life Care Facilities Act.
19 (c) If the property did not have a residential equalized
20assessed value for the base year as provided in subdivision
21(b)(3)(A) of this Section, then the assessor shall first
22determine an initial value for the property by comparison with
23assessed values for the base year of other properties having
24physical and economic characteristics similar to those of the
25subject property, so that the initial value is uniform in
26relation to assessed values of those other properties for the

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1base year. The product of the initial value multiplied by the
2equalized factor for the base year for homestead properties in
3that county, less: (i) $4,500 in Cook County or $3,500 in all
4other counties in tax year 2003; (ii) $5,000 in all counties in
5tax year years 2004 and 2005; and (iii) the lesser of the
6amount of the general homestead exemption under Section 15-175
7or an amount equal to the increase in the equalized assessed
8value for the current tax year above the equalized assessed
9value for 1977 in tax year 2006 and thereafter, is the base
10homestead value.
11 For any tax year for which the assessor determines or
12adjusts an initial value and hence a base homestead value under
13this subsection (c), the initial value shall be subject to
14review by the same procedures applicable to assessed values
15established under this Code for that tax year.
16 (d) The base homestead value shall remain constant, except
17that the assessor may revise it under the following
18circumstances:
19 (1) If the equalized assessed value of a homestead
20 property for the current tax year is less than the previous
21 base homestead value for that property, then the current
22 equalized assessed value (provided it is not based on a
23 reduced assessed value resulting from a temporary
24 irregularity in the property) shall become the base
25 homestead value in subsequent tax years.
26 (2) For any year in which new buildings, structures, or

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1 other improvements are constructed on the homestead
2 property that would increase its assessed value, the
3 assessor shall adjust the base homestead value as provided
4 in subsection (c) of this Section with due regard to the
5 value added by the new improvements.
6 (3) If the property is sold or ownership is otherwise
7 transferred, the base homestead value of the property shall
8 be adjusted as provided in subdivision (b)(3)(B). This item
9 (3) does not apply to sales or transfers between spouses or
10 between a parent and a child.
11 (4) the recalculation required in Cook County under
12 subdivision (b)(3)(A-5).
13 (e) The amount of the exemption under this Section is the
14equalized assessed value of the homestead property for the
15current tax year, minus the adjusted homestead value, with the
16following exceptions:
17 (1) The In Cook County, the exemption under this
18 Section shall not exceed $20,000 for any taxable year
19 through tax year:
20 (i) 2005, if the general assessment year for the
21 property is 2003;
22 (ii) 2006, if the general assessment year for the
23 property is 2004; or
24 (iii) 2007, if the general assessment year for the
25 property is 2005.
26 (1.1) Thereafter, in Cook County, and in all other

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1 counties, the exemption is as follows:
2 (i) if the general assessment year for the property
3 is 2006, then the exemption may not exceed: $33,000 for
4 taxable year 2006; $26,000 for taxable year 2007;
5 $20,000 for taxable years 2008 and 2009; $16,000 for
6 taxable year 2010; and $12,000 for taxable year 2011;
7 (ii) if the general assessment year for the
8 property is 2007, then the exemption may not exceed:
9 $33,000 for taxable year 2007; $26,000 for taxable year
10 2008; $20,000 for taxable years 2009 and 2010; $16,000
11 for taxable year 2011; and $12,000 for taxable year
12 2012; and
13 (iii) if the general assessment year for the
14 property is 2008, then the exemption may not exceed:
15 $33,000 for taxable year 2008; $26,000 for taxable year
16 2009; $20,000 for taxable years 2010 and 2011; $16,000
17 for taxable year 2012; and $12,000 for taxable year
18 2013.
19 (1.5) For In Cook County, for the 2006 taxable year only,
20the maximum amount of the exemption set forth under subsection
21(e)(1.1)(i) of this Section may be increased: (i) by $7,000 if
22the equalized assessed value of the property in that taxable
23year exceeds the equalized assessed value of that property in
242002 by 100% or more; or (ii) by $2,000 if the equalized
25assessed value of the property in that taxable year exceeds the
26equalized assessed value of that property in 2002 by more than

SB3242 Engrossed- 74 -LRB100 19223 HLH 34489 b
180% but less than 100%.
2 (2) In the case of homestead property that also
3 qualifies for the exemption under Section 15-172, the
4 property is entitled to the exemption under this Section,
5 limited to the amount of (i) $4,500 in Cook County or
6 $3,500 in all other counties in tax year 2003, (ii) $5,000
7 in all counties in tax years 2004 and 2005, or (iii) the
8 lesser of the amount of the general homestead exemption
9 under Section 15-175 or an amount equal to the increase in
10 the equalized assessed value for the current tax year above
11 the equalized assessed value for 1977 in tax year 2006 and
12 thereafter.
13 (f) In the case of an apartment building owned and operated
14as a cooperative, or as a life care facility, that contains
15residential units that qualify as homestead property under this
16Section, the maximum cumulative exemption amount attributed to
17the entire building or facility shall not exceed the sum of the
18exemptions calculated for each qualified residential unit. The
19cooperative association, management firm, or other person or
20entity that manages or controls the cooperative apartment
21building or life care facility shall credit the exemption
22attributable to each residential unit only to the apportioned
23tax liability of the owner or other person responsible for
24payment of taxes as to that unit. Any person who willfully
25refuses to so credit the exemption is guilty of a Class B
26misdemeanor.

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1 (g) When married persons maintain separate residences, the
2exemption provided under this Section shall be claimed by only
3one such person and for only one residence.
4 (h) In the event of a sale or other transfer in ownership
5of the homestead property, the exemption under this Section
6shall remain in effect for the remainder of the tax year and be
7calculated using the same base homestead value in which the
8sale or transfer occurs, but (other than for sales or transfers
9between spouses or between a parent and a child) shall be
10calculated for any subsequent tax year using the new base
11homestead value as provided in subdivision (b)(3)(B). The
12assessor may require the new owner of the property to apply for
13the exemption in the following year.
14 (i) The assessor may determine whether property qualifies
15as a homestead under this Section by application, visual
16inspection, questionnaire, or other reasonable methods. Each
17year, at the time the assessment books are certified to the
18county clerk by the board of review, the assessor shall furnish
19to the county clerk a list of the properties qualified for the
20homestead exemption under this Section. The list shall note the
21base homestead value of each property to be used in the
22calculation of the exemption for the current tax year.
23 (j) In counties with 3,000,000 or more inhabitants, the
24provisions of this Section apply as follows:
25 (1) If the general assessment year for the property is
26 2003, this Section applies for assessment years 2003

SB3242 Engrossed- 76 -LRB100 19223 HLH 34489 b
1 through 2011. Thereafter, the provisions of Section 15-175
2 apply.
3 (2) If the general assessment year for the property is
4 2004, this Section applies for assessment years 2004
5 through 2012. Thereafter, the provisions of Section 15-175
6 apply.
7 (3) If the general assessment year for the property is
8 2005, this Section applies for assessment years 2005
9 through 2013. Thereafter, the provisions of Section 15-175
10 apply.
11 In counties with less than 3,000,000 inhabitants, this
12Section applies for assessment years (i) 2009, 2010, 2011, and
132012 if tax year 2008 is the designated base year or (ii) 2010,
142011, 2012, and 2013 if tax year 2009 is the designated base
15year. Thereafter, the provisions of Section 15-175 apply.
16 (k) To be subject to the provisions of this Section in lieu
17of Section 15-175, a county must adopt an ordinance to subject
18itself to the provisions of this Section within 6 months after
19August 2, 2010 (the effective date of Public Act 96-1418). In a
20county other than Cook County, the ordinance must designate
21either tax year 2008 or tax year 2009 as the base year.
22 (l) Notwithstanding Sections 6 and 8 of the State Mandates
23Act, no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25(Source: P.A. 100-201, eff. 8-18-17.)

SB3242 Engrossed- 77 -LRB100 19223 HLH 34489 b
1 (35 ILCS 200/15-177)
2 Sec. 15-177. The long-time occupant homestead exemption.
3 (a) If the county has elected, under Section 15-176, to be
4subject to the provisions of the alternative general homestead
5exemption, then, for taxable years 2007 and thereafter,
6regardless of whether the exemption under Section 15-176
7applies, qualified homestead property is entitled to an annual
8homestead exemption equal to a reduction in the property's
9equalized assessed value calculated as provided in this
10Section.
11 (b) As used in this Section:
12 "Adjusted homestead value" means the lesser of the
13following values:
14 (1) The property's base homestead value increased by:
15 (i) 10% for each taxable year after the base year through
16 and including the current tax year for qualified taxpayers
17 with a household income of more than $75,000 but not
18 exceeding $100,000; or (ii) 7% for each taxable year after
19 the base year through and including the current tax year
20 for qualified taxpayers with a household income of $75,000
21 or less. The increase each year is an increase over the
22 prior year; or
23 (2) The property's equalized assessed value for the
24 current tax year minus the general homestead deduction.
25 "Base homestead value" means:
26 (1) if the property did not have an adjusted homestead

SB3242 Engrossed- 78 -LRB100 19223 HLH 34489 b
1 value under Section 15-176 for the base year, then an
2 amount equal to the equalized assessed value of the
3 property for the base year prior to exemptions, minus the
4 general homestead deduction, provided that the property's
5 assessment was not based on a reduced assessed value
6 resulting from a temporary irregularity in the property for
7 that year; or
8 (2) if the property had an adjusted homestead value
9 under Section 15-176 for the base year, then an amount
10 equal to the adjusted homestead value of the property under
11 Section 15-176 for the base year.
12 "Base year" means the taxable year prior to the taxable
13year in which the taxpayer first qualifies for the exemption
14under this Section.
15 "Current taxable year" means the taxable year for which the
16exemption under this Section is being applied.
17 "Equalized assessed value" means the property's assessed
18value as equalized by the Department.
19 "Homestead" or "homestead property" means residential
20property that as of January 1 of the tax year is occupied by a
21qualified taxpayer as his or her principal dwelling place, or
22that is a leasehold interest on which a single family residence
23is situated, that is occupied as a residence by a qualified
24taxpayer who has a legal or equitable interest therein
25evidenced by a written instrument, as an owner or as a lessee,
26and on which the person is liable for the payment of property

SB3242 Engrossed- 79 -LRB100 19223 HLH 34489 b
1taxes. Residential units in an apartment building owned and
2operated as a cooperative, or as a life care facility, which
3are occupied by persons who hold a legal or equitable interest
4in the cooperative apartment building or life care facility as
5owners or lessees, and who are liable by contract for the
6payment of property taxes, are included within this definition
7of homestead property. A homestead includes the dwelling place,
8appurtenant structures, and so much of the surrounding land
9constituting the parcel on which the dwelling place is situated
10as is used for residential purposes. If the assessor has
11established a specific legal description for a portion of
12property constituting the homestead, then the homestead is
13limited to the property within that description.
14 "Household income" has the meaning set forth under Section
1515-172 of this Code.
16 "General homestead deduction" means the amount of the
17general homestead exemption under Section 15-175.
18 "Life care facility" means a facility defined in Section 2
19of the Life Care Facilities Act.
20 "Qualified homestead property" means homestead property
21owned by a qualified taxpayer.
22 "Qualified taxpayer" means any individual:
23 (1) who, for at least 10 continuous years as of January
24 1 of the taxable year, has occupied the same homestead
25 property as a principal residence and domicile or who, for
26 at least 5 continuous years as of January 1 of the taxable

SB3242 Engrossed- 80 -LRB100 19223 HLH 34489 b
1 year, has occupied the same homestead property as a
2 principal residence and domicile if that person received
3 assistance in the acquisition of the property as part of a
4 government or nonprofit housing program; and
5 (2) who has a household income of $100,000 or less.
6 (c) The base homestead value must remain constant, except
7that the assessor may revise it under any of the following
8circumstances:
9 (1) If the equalized assessed value of a homestead
10 property for the current tax year is less than the previous
11 base homestead value for that property, then the current
12 equalized assessed value (provided it is not based on a
13 reduced assessed value resulting from a temporary
14 irregularity in the property) becomes the base homestead
15 value in subsequent tax years.
16 (2) For any year in which new buildings, structures, or
17 other improvements are constructed on the homestead
18 property that would increase its assessed value, the
19 assessor shall adjust the base homestead value with due
20 regard to the value added by the new improvements.
21 (d) The amount of the exemption under this Section is the
22greater of: (i) the equalized assessed value of the homestead
23property for the current tax year minus the adjusted homestead
24value; or (ii) the general homestead deduction.
25 (e) In the case of an apartment building owned and operated
26as a cooperative, or as a life care facility, that contains

SB3242 Engrossed- 81 -LRB100 19223 HLH 34489 b
1residential units that qualify as homestead property of a
2qualified taxpayer under this Section, the maximum cumulative
3exemption amount attributed to the entire building or facility
4shall not exceed the sum of the exemptions calculated for each
5unit that is a qualified homestead property. The cooperative
6association, management firm, or other person or entity that
7manages or controls the cooperative apartment building or life
8care facility shall credit the exemption attributable to each
9residential unit only to the apportioned tax liability of the
10qualified taxpayer as to that unit. Any person who willfully
11refuses to so credit the exemption is guilty of a Class B
12misdemeanor.
13 (f) When married persons maintain separate residences, the
14exemption provided under this Section may be claimed by only
15one such person and for only one residence. No person who
16receives an exemption under Section 15-172 of this Code may
17receive an exemption under this Section. No person who receives
18an exemption under this Section may receive an exemption under
19Section 15-175 or 15-176 of this Code.
20 (g) In the event of a sale or other transfer in ownership
21of the homestead property between spouses or between a parent
22and a child, the exemption under this Section remains in effect
23if the new owner has a household income of $100,000 or less.
24 (h) In the event of a sale or other transfer in ownership
25of the homestead property other than subsection (g) of this
26Section, the exemption under this Section shall remain in

SB3242 Engrossed- 82 -LRB100 19223 HLH 34489 b
1effect for the remainder of the tax year and be calculated
2using the same base homestead value in which the sale or
3transfer occurs.
4 (i) To receive the exemption, a person must submit an
5application to the county assessor during the period specified
6by the county assessor.
7 The county assessor shall annually give notice of the
8application period by mail or by publication.
9 The taxpayer must submit, with the application, an
10affidavit of the taxpayer's total household income, marital
11status (and if married the name and address of the applicant's
12spouse, if known), and principal dwelling place of members of
13the household on January 1 of the taxable year. The Department
14shall establish, by rule, a method for verifying the accuracy
15of affidavits filed by applicants under this Section, and the
16Chief County Assessment Officer may conduct audits of any
17taxpayer claiming an exemption under this Section to verify
18that the taxpayer is eligible to receive the exemption. Each
19application shall contain or be verified by a written
20declaration that it is made under the penalties of perjury. A
21taxpayer's signing a fraudulent application under this Act is
22perjury, as defined in Section 32-2 of the Criminal Code of
232012. The applications shall be clearly marked as applications
24for the Long-time Occupant Homestead Exemption and must contain
25a notice that any taxpayer who receives the exemption is
26subject to an audit by the assessor Chief County Assessment

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1Officer.
2 (j) Notwithstanding Sections 6 and 8 of the State Mandates
3Act, no reimbursement by the State is required for the
4implementation of any mandate created by this Section.
5(Source: P.A. 97-1150, eff. 1-25-13.)
6 (35 ILCS 200/15-180)
7 Sec. 15-180. Homestead improvements. Homestead properties
8that have been improved and residential structures on homestead
9property that have been rebuilt following a catastrophic event
10are entitled to a homestead improvement exemption, limited to
11$30,000 per year through December 31, 1997, $45,000 beginning
12January 1, 1998 and through December 31, 2003, and $75,000 per
13year for that homestead property beginning January 1, 2004 and
14thereafter, in fair cash value, when that property is owned and
15used exclusively for a residential purpose and upon
16demonstration that a proposed increase in assessed value is
17attributable solely to a new improvement of an existing
18structure or the rebuilding of a residential structure
19following a catastrophic event. To be eligible for an exemption
20under this Section after a catastrophic event, the residential
21structure must be rebuilt within 2 years after the catastrophic
22event. The exemption for rebuilt structures under this Section
23applies to the increase in value of the rebuilt structure over
24the value of the structure before the catastrophic event. The
25amount of the exemption shall be limited to the fair cash value

SB3242 Engrossed- 84 -LRB100 19223 HLH 34489 b
1added by the new improvement or rebuilding and shall continue
2for 4 years from the date the improvement or rebuilding is
3completed and occupied, or until the next following general
4assessment of that property, whichever is later.
5 A proclamation of disaster by the President of the United
6States or Governor of the State of Illinois is not a
7prerequisite to the classification of an occurrence as a
8catastrophic event under this Section. A "catastrophic event"
9may include an occurrence of widespread or severe damage or
10loss of property resulting from any catastrophic cause
11including but not limited to fire, including arson (provided
12the fire was not caused by the willful action of an owner or
13resident of the property), flood, earthquake, wind, storm,
14explosion, or extended periods of severe inclement weather. In
15the case of a residential structure affected by flooding, the
16structure shall not be eligible for this homestead improvement
17exemption unless it is located within a local jurisdiction
18which is participating in the National Flood Insurance Program.
19 In counties of less than 3,000,000 inhabitants, in addition
20to the notice requirement under Section 12-30, a supervisor of
21assessments, county assessor, or township or multi-township
22assessor responsible for adding an assessable improvement to a
23residential property's assessment shall either notify a
24taxpayer whose assessment has been changed since the last
25preceding assessment that he or she may be eligible for the
26exemption provided under this Section or shall grant the

SB3242 Engrossed- 85 -LRB100 19223 HLH 34489 b
1exemption automatically.
2 Beginning January 1, 1999, in counties of 3,000,000 or more
3inhabitants, an application for a homestead improvement
4exemption for a residential structure that has been rebuilt
5following a catastrophic event must be submitted to the
6assessor Chief County Assessment Officer with a valuation
7complaint and a copy of the building permit to rebuild the
8structure. The assessor Chief County Assessment Officer may
9require additional documentation which must be provided by the
10applicant.
11 Notwithstanding Sections 6 and 8 of the State Mandates Act,
12no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 93-715, eff. 7-12-04.)
15 (35 ILCS 200/Art. 15 Div. 3 heading new)
16
Division 3. Homestead exemptions in counties with fewer than
17
3,000,000 inhabitants
18 (35 ILCS 200/15-261 new)
19 Sec. 15-261. Applicability. This Division 3 applies in
20counties with fewer than 3,000,000 inhabitants and encompasses
21this Section and Sections in Article 15 occurring after this
22Section.
23 (35 ILCS 200/15-262 new)

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1 Sec. 15-262. Homestead Exemptions; Definitions.
2 (a) "Homestead property" under this Section includes:
3 (1) Property that is occupied as a principal dwelling
4 place by its owner or owners who are liable for the payment
5 of property taxes; or
6 (2) A leasehold interest in property on which a
7 detached single-family residence is situated, which is
8 occupied as a principal dwelling place by a person or
9 persons who has an ownership interest therein, legal or
10 equitable or as a lessee, and on which the person or
11 persons is liable for the payment of property taxes; or
12 (3) A unit in an apartment building owned and operated
13 as a cooperative, occupied as a principal dwelling place by
14 a person or persons who is liable, by contract with the
15 owner or owners of record, for paying property taxes on the
16 property and is an owner of record of a legal or equitable
17 interest in the cooperative apartment building, other than
18 a leasehold interest; or
19 (4) A unit within a building which is a life care
20 facility operated as a cooperative, occupied by a person or
21 persons who is liable, by contract with the owner or owners
22 of record, for paying property taxes on the property and is
23 an owner of record of a legal or equitable interest in the
24 cooperative apartment building, other than a leasehold
25 interest.
26 (b) "Homestead owner" under this Section includes:

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1 (1) The person or persons who own and occupy
2 residential property as a principal dwelling place by its
3 owner or owners who are liable for the payment of property
4 taxes as of January 1 of a taxable year; or
5 (2) The person or persons who possess a leasehold
6 interest in property on which a detached single-family
7 residence is situated, and occupy said detached
8 single-family residence as a principal dwelling place,
9 have an ownership interest therein, legal or equitable or
10 as a lessee, and on which the person or persons are liable
11 for the payment of property taxes.
12 (3) The person or persons who are liable, by contract
13 with the owner or owners of record, for paying property
14 taxes on a unit in an apartment building owned and operated
15 as a cooperative, occupy the unit as a principal dwelling
16 place, and are an owner or owners of record of a legal or
17 equitable interest in the cooperative apartment building,
18 other than a leasehold interest.
19 (4) The person or persons who are liable, by contract
20 with the owner or owners of record, for paying property
21 taxes on a unit within a building which is a life care
22 facility, occupy the unit as a principal dwelling place,
23 and are an owner or owners of record of a legal or
24 equitable interest in the cooperative apartment building,
25 other than a leasehold interest.
26 (c) "Life care facility" means as defined under Section 2

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1of the Life Care Facilities Act with which the homestead owner
2has a life care contract as defined in that Act.
3 (d) "State-licensed care facility" means a facility
4licensed under the Assisted Living and Shared Housing Act, the
5Nursing Home Care Act, the Specialized Mental Health
6Rehabilitation Act of 2013, the ID/DD Community Care Act, or
7the MC/DD Act.
8 (e) "Veterans care facility" means a facility operated by
9the United States Department of Veterans Affairs.
10 (f) "Assessed Value" means the value of the property after
11equalization by a chief county assessment officer or board of
12review, but before equalization by the Department.
13 (g) "Equalized Assessed Value" means the value of the
14property after equalization by the Department.
15 (35 ILCS 200/15-263 new)
16 Sec. 15-263. Homestead Exemptions; General Provisions.
17 (a) Unless otherwise provided, an initial application for
18any homestead exemption must be made to the Chief County
19Assessment Officer during the application period in effect for
20the county of his or her residence. The Chief County Assessment
21Officer may determine the eligibility of residential property
22to receive the homestead exemption provided by this Section by
23application, visual inspection, questionnaire, or other
24reasonable methods. The determination must be made in
25accordance with guidelines established by the Department.

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1 (b) Unless otherwise provided, a county board may by
2resolution provide that if a person has been granted a
3homestead exemption, the person qualifying need not reapply for
4the exemption.
5 (c) If the 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 (d) If a homestead exemption is granted to a property that
10is operated as a cooperative or as a life care facility
11operated as a cooperative, the cooperative association or
12management firm shall credit the savings resulting from the
13exemption to the apportioned tax liability of the homestead
14owner. The Chief County Assessment Officer may request
15reasonable proof that the association or firm has properly
16credited the exemption. A person who willfully refuses to
17credit an exemption to the qualified person is guilty of a
18Class B misdemeanor.
19 (e) The Chief County Assessment Officer shall provide to
20each person granted a homestead exemption under Sections
2115-268, 15-269, 15-270, and 15-272 a form to designate any
22other person to receive a duplicate of any notice of
23delinquency in the payment of taxes assessed and levied under
24this Code on the person's qualifying property. The duplicate
25notice shall be in addition to the notice required to be
26provided to the person receiving the exemption and shall be

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1given in the manner required by this Code. The person filing
2the request for the duplicate notice shall pay an
3administrative fee of $5 to the Chief County Assessment
4Officer. The Chief County Assessment Officer shall then file
5the executed designation with the county collector, who shall
6issue the duplicate notices as indicated by the designation. A
7designation may be rescinded by the person in the manner
8required by the Chief County Assessment Officer.
9 (f) The Chief County Assessment Officer may, when
10considering whether to grant an exemption based on a homestead
11owner's eligibility pursuant to Section 15-262(b)(2), require
12the 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: "Lessee shall be
25 liable for the payment of real estate taxes with respect to
26 the residence in accordance with the terms and conditions

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1 of Section 15-262(b)(2) of the Property Tax Code (35 ILCS
2 200/15-262(b)(2)). The permanent real estate index number
3 for the premises is (insert number), and, according to the
4 most recent property tax bill, the current amount of real
5 estate taxes associated with the premises is (insert
6 amount) per year. The parties agree that the monthly rent
7 set forth above shall be increased or decreased pro rata
8 (effective January 1 of each calendar year) to reflect any
9 increase or decrease in real estate taxes. Lessee shall be
10 deemed to be satisfying Lessee's liability for the above
11 mentioned real estate taxes with the monthly rent payments
12 as set forth above (or increased or decreased as set forth
13 herein).".
14 In addition, if there is a change in lessee, or if the
15 lessee vacates the property, then the Chief County
16 Assessment Officer may require the owner of the property to
17 notify the Chief County Assessment Officer of that change.
18 This subsection (f) does not apply to leasehold interests
19 in property owned by a municipality.
20 (g) When a homestead exemption has been granted under this
21Section and the person qualifying subsequently becomes a
22resident of a State-licensed care facility or veterans care
23facility, the exemption shall continue so long as the residence
24continues to be occupied by the qualifying person's spouse, or
25if the residence remains unoccupied but is still owned by the
26person qualified for the homestead exemption.

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1 (h) Any taxpayer whose application for a homestead
2exemption is denied by the Chief County Assessment Officer may
3appeal that denial to the county Board of Review. The decision
4of the Board of Review shall be final.
5 (i) Notwithstanding any other provision, if a property
6transfers or otherwise ceases to be homestead property after
7the first date of eligibility within a taxable year, the
8exemption shall remain with the property until the end of that
9taxable year.
10 (j) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by homestead exemptions
13under this Division.
14 (35 ILCS 200/15-265 new)
15 Sec. 15-265. Veterans with disabilities adapted housing
16homestead exemption.
17 (a) Definitions. In addition to the definitions found in
18Section 15-262:
19 "Veteran with a disability" means a person who has served
20in the Armed Forces of the United States and whose disability
21is of such a nature that the federal government has authorized
22payment for purchase or construction of specially adapted
23housing as set forth in the United States Code, Title 38,
24Chapter 21, Section 2101.
25 "Unmarried surviving spouse" means the surviving spouse of

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1the veteran at any time after the death of the veteran during
2which such surviving spouse is not married.
3 "Charitable organization" means any benevolent,
4philanthropic, patriotic, or eleemosynary entity that solicits
5and collects funds for charitable purposes and includes each
6local, county, or area division of that charitable
7organization.
8 (b) Eligibility. The homestead property must be occupied by
9a homestead owner who is a veteran with a disability, or the
10spouse or unmarried surviving spouse of the veteran.
11 The exemption applies to housing where federal funds have
12been used to purchase or construct special adaptations to suit
13the veteran's disability.
14 The exemption also applies to housing that is specially
15adapted to suit the veteran's disability, and purchased
16entirely or in part by the proceeds of a sale, casualty loss
17reimbursement, or other transfer of a home for which the
18federal government had previously authorized payment for
19purchase or construction as specially adapted housing.
20 However, the entire proceeds of the sale, casualty loss
21reimbursement, or other transfer of that housing shall be
22applied to the acquisition of subsequent specially adapted
23housing to the extent that the proceeds equal the purchase
24price of the subsequently acquired housing.
25 The exemption also applies to housing that is specifically
26constructed or adapted to suit a qualifying veteran's

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1disability if the housing or adaptations are donated by a
2charitable organization, the veteran has been approved to
3receive funds for the purchase or construction of specially
4adapted housing under Title 38, Chapter 21, Section 2101 of the
5United States Code, and the home has been inspected and
6certified by a licensed home inspector to be in compliance with
7applicable standards set forth in U.S. Department of Veterans
8Affairs, Veterans Benefits Administration Pamphlet 26-13,
9Handbook for Design: Specially Adapted Housing.
10 (c) Amount. Eligible homestead property up to an equalized
11assessed value of $100,000 is exempt.
12 (d) Additional provisions. This exemption must be
13reestablished on an annual basis by certification from the
14Illinois Department of Veterans' Affairs to the Department,
15which shall forward a copy of the certification to local
16assessing officials.
17 A taxpayer who claims an exemption under Section 15-268 or
1815-269 may not claim an exemption under this Section.
19 (35 ILCS 200/15-267 new)
20 Sec. 15-267. Returning Veterans' Homestead Exemption.
21 (a) Definitions. In addition to the definitions found in
22Section 15-262, "veteran" means an Illinois resident who has
23served as a member of the United States Armed Forces, a member
24of the Illinois National Guard, or a member of the United
25States Reserve Forces.

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1 (b) Eligibility. The homestead property must be occupied by
2a homestead owner who is a veteran returning from an armed
3conflict involving the armed forces of the United States.
4 (c) Amount. The reduction is $5,000 in equalized assessed
5value for the taxable year in which the veteran returns from
6active duty in an armed conflict involving the armed forces of
7the United States; however, if the veteran first acquires his
8or her principal residence during the taxable year in which he
9or she returns, but after January 1 of that year, and if the
10property is owned and occupied by the veteran as a principal
11residence on January 1 of the next taxable year, he or she may
12apply the exemption for the next taxable year, and only the
13next taxable year, after he or she returns. The reduction shall
14also be allowed for the taxable year after the taxable year in
15which the veteran returns from active duty in an armed conflict
16involving the armed forces of the United States. For land
17improved with an apartment building owned and operated as a
18cooperative, the maximum reduction from the value of the
19property, as equalized by the Department, must be multiplied by
20the number of apartments or units occupied by a veteran
21returning from an armed conflict involving the armed forces of
22the United States who is liable, by contract with the owner or
23owners of record, for paying property taxes on the property and
24is an owner of record of a legal or equitable interest in the
25cooperative apartment building, other than a leasehold
26interest.

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1 (d) Additional Provisions. The exemption under this
2Section is in addition to any other homestead exemption
3provided in this Article 15.
4 (35 ILCS 200/15-268 new)
5 Sec. 15-268. Homestead Exemption for persons with
6disabilities.
7 (a) Definitions. In addition to the definitions found in
8Section 15-262, "person with a disability" means a person
9unable to engage in any substantial gainful activity by reason
10of a medically determinable physical or mental impairment which
11can be expected to result in death or has lasted or can be
12expected to last for a continuous period of not less than 12
13months.
14 (b) Eligibility. An annual homestead exemption is granted
15to homestead property occupied by a homestead owner who is also
16a person with a disability. A person who has a disability
17during the taxable year is eligible to receive this homestead
18exemption during that taxable year.
19 (c) Amount. The annual exemption amount is $2,000 in
20equalized assessed value, to be deducted from the property's
21value as equalized or assessed by the Department; except that
22for land improved with (i) an apartment building owned and
23operated as a cooperative or (ii) a life care facility that is
24considered to be a cooperative, the maximum reduction from the
25value of the property, as equalized or assessed by the

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1Department, shall be multiplied by the number of apartments or
2units occupied by a disabled person.
3 (d) Additional provisions.
4 (1) A person with a disability filing claims under this
5 Act shall submit proof of disability in such form and
6 manner as the Department shall by rule and regulation
7 prescribe. Any one or more of the following shall
8 constitute proof of disability for purposes of this Act:
9 (A) Proof that a claimant is eligible to receive
10 disability benefits under the Federal Social Security
11 Act; or
12 (B) Issuance of an Illinois Person with a
13 Disability Identification Card stating that the
14 claimant is under a Class 2 or 2A disability, as
15 defined in Section 4A of the Illinois Identification
16 Card Act; or
17 (C) A person with a disability not covered under
18 the Federal Social Security Act and not presenting an
19 Illinois Person with a Disability Identification Card
20 stating that the claimant is under a Class 2 disability
21 shall be examined by a physician licensed to practice
22 in the State of Illinois, and his status as a person
23 with a disability determined using the same standards
24 as used by the Social Security Administration. The
25 costs of any required examination shall be borne by the
26 claimant.

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1 (e) A taxpayer who claims an exemption under Section 15-265
2or 15-269 may not claim an exemption under this Section.
3 (35 ILCS 200/15-269 new)
4 Sec. 15-269. Homestead exemption for veterans with
5disabilities.
6 (a) Definitions. In addition to the definitions found in
7Section 15-262:
8 "Qualified residence" means homestead property, but
9 less any portion of that property that is used for
10 commercial purposes, with an equalized assessed value of
11 less than $250,000. Property rented for more than 6 months
12 is presumed to be used for commercial purposes.
13 "Veteran" means an Illinois resident who has served as
14 a member of the United States Armed Forces on active duty
15 or State active duty, a member of the Illinois National
16 Guard, or a member of the United States Reserve Forces and
17 who has received an honorable discharge.
18 (b) Eligibility. An annual homestead exemption, limited to
19the amounts set forth in subsection (c), is granted for
20homestead property that is used as a qualified residence by a
21homestead owner who is a veteran with a disability.
22 (c) Amount. The amount of the exemption under this Section
23is as follows:
24 (1) if the veteran has a service-connected disability
25 of 30% or more but less than 50%, as certified by the

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1 United States Department of Veterans Affairs, then the
2 annual exemption is $2,500 of equalized assessed value;
3 (2) if the veteran has a service-connected disability
4 of 50% or more but less than 70%, as certified by the
5 United States Department of Veterans Affairs, then the
6 annual exemption is $5,000 of equalized assessed value; and
7 (3) if the veteran has a service connected disability
8 of 70% or more, as certified by the United States
9 Department of Veterans Affairs, then the property is exempt
10 from taxation under this Code.
11 (d) Additional provisions.
12 (1) The tax exemption under this Section carries over
13 to the benefit of the veteran's surviving spouse as long as
14 the spouse holds the legal or beneficial title to the
15 homestead, permanently resides thereon, and does not
16 remarry. If the surviving spouse sells the property, an
17 exemption not to exceed the amount granted from the most
18 recent ad valorem tax roll may be transferred to his or her
19 new residence as long as it is used as his or her primary
20 residence and he or she does not remarry.
21 (2) A taxpayer who claims an exemption under Section
22 15-265 or 15-268 may not claim an exemption under this
23 Section.
24 (3) Each taxpayer who has been granted an exemption
25 under this Section must reapply on an annual basis.
26 Application must be made during the application period in

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1 effect for the county of his or her residence.
2 (35 ILCS 200/15-270 new)
3 Sec. 15-270. Senior Citizens Homestead Exemption.
4 (a) Definitions. The definitions found in Section 15-262
5shall apply to this Section.
6 (b) Eligibility. An annual homestead exemption limited,
7except as described here with relation to cooperatives or life
8care facilities, to a maximum reduction set forth below from
9the property's value, as equalized or assessed by the
10Department, is granted for homestead property that is occupied
11by a homestead owner who will be 65 years of age or older by
12December 31 of the taxable year.
13 (c) Amount.
14 (1) The maximum reduction is $5,000 of equalized
15 assessed value.
16 (2) For land improved with an apartment building owned
17 and operated as a cooperative, the maximum reduction from
18 the value of the property, as equalized by the Department.
19 (3) Property that is first occupied as a residence
20 after January 1 of any assessment year by a person who is
21 eligible for the homestead exemption under this Section
22 must be granted a pro-rata exemption for the assessment
23 year. The amount of the pro-rata exemption is the exemption
24 allowed in the county under this Section divided by 365 and
25 multiplied by the number of days during the assessment year

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1 the property is occupied as a residence by a person
2 eligible for the exemption under this Section. The Chief
3 County Assessment Officer must adopt reasonable procedures
4 to establish eligibility for this pro-rata exemption.
5 (d) Additional provisions. The Chief County Assessment
6Officer shall notify each person who qualifies for an exemption
7under this Section that the person may also qualify for
8deferral of real estate taxes under the Senior Citizens Real
9Estate Tax Deferral Act. The notice shall set forth the
10qualifications needed for deferral of real estate taxes, the
11address and telephone number of the county collector, and a
12statement that applications for deferral of real estate taxes
13may be obtained from the county collector.
14 (35 ILCS 200/15-272 new)
15 Sec. 15-272. Senior Citizens Assessment Freeze Homestead
16Exemption.
17 (a) Definitions. In addition to the definitions found in
18Section 15-262:
19 "Applicant" means an individual who has filed an
20 application under this Section.
21 "Base amount" means the base year equalized assessed
22 value of the residence plus the first year's equalized
23 assessed value of any added improvements which increased
24 the assessed value of the residence after the base year.
25 "Base year" means the taxable year prior to the taxable

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1 year for which the applicant first qualifies and applies
2 for the exemption provided that in the prior taxable year
3 the property was improved with a permanent structure that
4 was occupied as a residence by the applicant who was liable
5 for paying real property taxes on the property and who was
6 either (i) an owner of record of the property or had legal
7 or equitable interest in the property as evidenced by a
8 written instrument or (ii) had a legal or equitable
9 interest as a lessee in the parcel of property that was a
10 single-family residence. If in any subsequent taxable year
11 for which the applicant applies and qualifies for the
12 exemption the equalized assessed value of the residence is
13 less than the equalized assessed value in the existing base
14 year (provided that such equalized assessed value is not
15 based on an assessed value that results from a temporary
16 irregularity in the property that reduces the assessed
17 value for one or more taxable years), then that subsequent
18 taxable year shall become the base year until a new base
19 year is established under the terms of this paragraph. For
20 taxable year 1999 only, the Chief County Assessment Officer
21 shall review (i) all taxable years for which the applicant
22 applied and qualified for the exemption and (ii) the
23 existing base year. The assessment officer shall select as
24 the new base year the year with the lowest equalized
25 assessed value. An equalized assessed value that is based
26 on an assessed value that results from a temporary

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1 irregularity in the property that reduces the assessed
2 value for one or more taxable years shall not be considered
3 the lowest equalized assessed value. The selected year
4 shall be the base year for taxable year 1999 and thereafter
5 until a new base year is established under the terms of
6 this paragraph.
7 "Household" means the applicant, the spouse of the
8 applicant, and all persons using the residence of the
9 applicant as their principal place of residence.
10 "Household income" means the combined income of the
11 members of a household for the calendar year preceding the
12 taxable year.
13 "Income" has the same meaning as provided in Section
14 3.07 of the Senior Citizens and Persons with Disabilities
15 Property Tax Relief Act, except that, beginning in
16 assessment year 2001, "income" does not include veteran's
17 benefits.
18 "Internal Revenue Code of 1986" means the United States
19 Internal Revenue Code of 1986 or any successor law or laws
20 relating to federal income taxes in effect for the year
21 preceding the taxable year.
22 "Maximum income limitation" means $65,000.
23 "Residence" means the principal dwelling place and
24 appurtenant structures used for residential purposes in
25 this State occupied on January 1 of the taxable year by a
26 household and so much of the surrounding land, constituting

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1 the parcel upon which the dwelling place is situated, as is
2 used for residential purposes. If the Chief County
3 Assessment Officer has established a specific legal
4 description for a portion of property constituting the
5 residence, then that portion of property shall be deemed
6 the residence for the purposes of this Section.
7 "Taxable year" means the calendar year during which ad
8 valorem property taxes payable in the next succeeding year
9 are levied.
10 (b) Eligibility. A senior citizens assessment freeze
11homestead exemption is granted for homestead property that is
12occupied by a homestead owner who (i) is 65 years of age or
13older by December 31 of the taxable year, and (ii) has a
14household income that does not exceed the maximum income
15limitation.
16 (c) Amount.
17 (1) The amount of the exemption for all taxable years
18 is the equalized assessed value of the residence in the
19 taxable year for which application is made minus the base
20 amount.
21 (2) When the applicant is a surviving spouse of an
22 applicant for a prior year for the same residence for which
23 an exemption under this Section has been granted, the base
24 year and base amount for that residence are the same as for
25 the applicant for the prior year.
26 (3) Each year at the time the assessment books are

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1 certified to the County Clerk, the Board of Review shall
2 give to the County Clerk a list of the assessed values of
3 improvements on each parcel qualifying for this exemption
4 that were added after the base year for this parcel and
5 that increased the assessed value of the property.
6 (4) In the case of land improved with an apartment
7 building owned and operated as a cooperative or a building
8 that is a life care facility that qualifies as a
9 cooperative, the maximum reduction from the equalized
10 assessed value of the property is limited to the sum of the
11 reductions calculated for each unit occupied as a residence
12 by a person or persons (i) 65 years of age or older, (ii)
13 with a household income that does not exceed the maximum
14 income limitation, (iii) who is liable, by contract with
15 the owner or owners of record, for paying real property
16 taxes on the property, and (iv) who is an owner of record
17 of a legal or equitable interest in the cooperative
18 apartment building, other than a leasehold interest.
19 (d) Additional provisions.
20 (1) When an individual dies who would have qualified
21 for an exemption under this Section, and the surviving
22 spouse does not independently qualify for this exemption
23 because of age, the exemption under this Section shall be
24 granted to the surviving spouse for the taxable year
25 preceding and the taxable year of the death, provided that,
26 except for age, the surviving spouse meets all other

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1 qualifications for the granting of this exemption for those
2 years.
3 (2) When married persons maintain separate residences,
4 the exemption provided for in this Section may be claimed
5 by only one of such persons and for only one residence.
6 (3) To receive the exemption, a person shall submit an
7 application by July 1 of each taxable year to the Chief
8 County Assessment Officer of the county in which the
9 property is located.
10 (4) A county may, by ordinance, establish a date for
11 submission of applications that is different than July 1.
12 (5) The applicant shall submit with the application an
13 affidavit of the applicant's total household income, age,
14 marital status (and if married the name and address of the
15 applicant's spouse, if known), and principal dwelling
16 place of members of the household on January 1 of the
17 taxable year.
18 (6) The Department shall establish, by rule, a method
19 for verifying the accuracy of affidavits filed by
20 applicants under this Section, and the Chief County
21 Assessment Officer may conduct audits of any taxpayer
22 claiming an exemption under this Section to verify that the
23 taxpayer is eligible to receive the exemption.
24 (7) Each application shall contain or be verified by a
25 notarized declaration that it is made under the penalties
26 of perjury. A taxpayer's signing a fraudulent application

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1 under this Act is perjury, as defined in Section 32-2 of
2 the Criminal Code of 2012.
3 (8) The applications shall be clearly marked as
4 applications for the Senior Citizens Assessment Freeze
5 Homestead Exemption and must contain a notice that any
6 taxpayer who receives the exemption is subject to an audit
7 by the Chief County Assessment Officer.
8 (9) Except as provided in this Section, all information
9 received by the Chief County Assessment Officer or the
10 Department from applications filed under this Section, or
11 from any investigation conducted under the provisions of
12 this Section, shall be confidential, except for official
13 purposes or pursuant to official procedures for collection
14 of any State or local tax or enforcement of any civil or
15 criminal penalty or sanction imposed by this Act or by any
16 statute or ordinance imposing a State or local tax. Any
17 person who divulges any such information in any manner,
18 except in accordance with a proper judicial order, is
19 guilty of a Class A misdemeanor.
20 Nothing contained in this Section shall prevent the
21 Director or Chief County Assessment Officer from
22 publishing or making available reasonable statistics
23 concerning the operation of the exemption contained in this
24 Section in which the contents of claims are grouped into
25 aggregates in such a way that information contained in any
26 individual claim shall not be disclosed.

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1 (10) Each Chief County Assessment Officer shall
2 annually publish a notice of availability of the exemption
3 provided under this Section. The notice shall be published
4 at least 60 days but no more than 75 days prior to the date
5 on which the application must be submitted to the Chief
6 County Assessment Officer of the county in which the
7 property is located. The notice shall appear in a newspaper
8 of general circulation in the county.
9 (35 ILCS 200/15-273 new)
10 Sec. 15-273. Natural Disaster Homestead Exemption.
11 (a) Definitions. In addition to the definitions found in
12Section 15-262:
13 "Base amount" means the base year equalized assessed
14 value of the residence.
15 "Base year" means the taxable year prior to the taxable
16 year in which the natural disaster occurred.
17 "Natural disaster" means an occurrence of widespread
18 or severe damage or loss of property resulting from any
19 catastrophic cause, including, but not limited to, fire,
20 flood, earthquake, wind, storm, or extended period of
21 severe inclement weather. In the case of a residential
22 structure affected by flooding, the structure shall not be
23 eligible for this homestead improvement exemption unless
24 it is located within a local jurisdiction which is
25 participating in the National Flood Insurance Program. A

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1 proclamation of disaster by the President of the United
2 States or Governor of the State of Illinois is not a
3 prerequisite to the classification of an occurrence as a
4 natural disaster under this Section.
5 (b) Eligibility. A homestead exemption shall be granted by
6the Chief County Assessment Officer for homestead properties
7containing a residential structure that has been rebuilt
8following a natural disaster occurring in taxable year 2012 or
9any taxable year thereafter.
10 To be eligible for an exemption under this Section: (i) the
11residential structure must be rebuilt within 2 years after the
12date of the natural disaster; and (ii) the square footage of
13the rebuilt residential structure may not be more than 110% of
14the square footage of the original residential structure as it
15existed immediately prior to the natural disaster. The
16taxpayer's initial application for an exemption under this
17Section must be made no later than the first taxable year after
18the residential structure is rebuilt. The exemption shall
19continue at the same annual amount until the taxable year in
20which the property is sold or transferred.
21 (c) Amount. The amount of the exemption is the equalized
22assessed value of the residence in the first taxable year for
23which the taxpayer applies for an exemption under this Section
24minus the base amount.
25 (d) Additional provisions.
26 (1) To receive the exemption, the taxpayer shall submit

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1 an application to the Chief County Assessment Officer of
2 the county in which the property is located by July 1 of
3 each taxable year. A county may, by resolution, establish a
4 date for submission of applications that is different than
5 July 1. The applications shall be clearly marked as
6 applications for the Natural Disaster Homestead Exemption.
7 (2) Property is not eligible for an exemption under
8 this Section and Section 15-280 for the same natural
9 disaster or catastrophic event. The property may, however,
10 remain eligible for an additional exemption under Section
11 15-280 for any separate event occurring after the property
12 qualified for an exemption under this Section.
13 (3) The exemption under this Section carries over to
14 the benefit of the surviving spouse as long as the spouse
15 holds the legal or beneficial title to the homestead and
16 permanently resides thereon.
17 (35 ILCS 200/15-275 new)
18 Sec. 15-275. General homestead exemption.
19 (a) Definitions. The definitions found in Section 15-262
20are applicable to this Section.
21 (b) Eligibility. Homestead property occupied by a
22homestead owner is entitled to an annual homestead exemption
23limited, except as described here with relation to
24cooperatives, to a reduction in the equalized assessed value of
25homestead property equal to the increase in equalized assessed

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1value for the current assessment year above the equalized
2assessed value of the property for 1977, up to the maximum
3reduction set forth below. If, however, the 1977 equalized
4assessed value upon which taxes were paid is subsequently
5determined by local assessing officials, the Property Tax
6Appeal Board, or a court to have been excessive, the equalized
7assessed value which should have been placed on the property
8for 1977 shall be used to determine the amount of the
9exemption.
10 (c) Amount.
11 (1) The maximum reduction is $6,000 of equalized
12 assessed value.
13 (2) If, based on the most recent assessment, the
14 equalized assessed value of the homestead property for the
15 current assessment year is greater than the equalized
16 assessed value of the property for 1977, the owner of the
17 property shall automatically receive the exemption granted
18 under this Section in an amount equal to the increase over
19 the 1977 assessment up to the maximum reduction set forth
20 in this Section.
21 (d) Additional provisions.
22 (1) If in any assessment year homestead property has a
23 pro-rata valuation under Section 9-180 resulting in an
24 increase in the assessed valuation, a reduction in
25 equalized assessed valuation equal to the increase in
26 equalized assessed value of the property for the year of

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1 the pro-rata valuation above the equalized assessed value
2 of the property for 1977 shall be applied to the property
3 on a proportionate basis for the period the property
4 qualified as homestead property during the assessment
5 year. The maximum proportionate homestead exemption shall
6 not exceed the maximum homestead exemption allowed in the
7 county under this Section divided by 365 and multiplied by
8 the number of days the property qualified as homestead
9 property.
10 (2) Where married persons maintain and reside in
11 separate residences qualifying as homestead property, each
12 residence shall receive 50% of the total reduction in
13 equalized assessed valuation provided by this Section.
14 (35 ILCS 200/15-280 new)
15 Sec. 15-280. Homestead improvement exemption.
16 (a) Definitions. In addition to the definitions found in
17Section 15-262, a "catastrophic event" may include an
18occurrence of widespread or severe damage or loss of property
19resulting from any catastrophic cause including but not limited
20to fire, including arson (provided the fire was not caused by
21the willful action of an owner or resident of the property),
22flood, earthquake, wind, storm, explosion, or extended periods
23of severe inclement weather. In the case of a residential
24structure affected by flooding, the structure shall not be
25eligible for this homestead improvement exemption unless it is

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1located within a local jurisdiction which is participating in
2the National Flood Insurance Program. A proclamation of
3disaster by the President of the United States or Governor of
4the State of Illinois is not a prerequisite to the
5classification of an occurrence as a catastrophic event under
6this Section.
7 (b) Eligibility. Homestead properties that have been
8improved and residential structures on homestead property that
9have been rebuilt following a catastrophic event are entitled
10to a homestead improvement exemption, when that property is
11owned by a homestead owner and used exclusively for a
12residential purpose and upon demonstration that a proposed
13increase in assessed value is attributable solely to a new
14improvement of an existing structure or the rebuilding of a
15residential structure following a catastrophic event. To be
16eligible for an exemption under this Section after a
17catastrophic event, the residential structure must be rebuilt
18within 2 years after the catastrophic event. The exemption for
19rebuilt structures under this Section applies to the increase
20in value of the rebuilt structure over the value of the
21structure before the catastrophic event. The amount of the
22exemption shall be limited to the fair cash value added by the
23new improvement or rebuilding and shall continue for 4 years
24from the date the improvement or rebuilding is completed and
25occupied.
26 (c) Amount. The exemption is limited to $25,000 of

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1equalized assessed value.
2 (d) Additional Provisions. In addition to the notice
3requirement under Section 12-30, a supervisor of assessments,
4county assessor, or township or multi-township assessor
5responsible for adding an assessable improvement to a
6residential property's assessment shall either notify a
7taxpayer whose assessment has been changed since the last
8preceding assessment that he or she may be eligible for the
9exemption provided under this Section or shall grant the
10exemption automatically.
11 Section 99. Effective date. This Act takes effect January
121, 2019.

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1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 200/9-275
4 35 ILCS 200/Art. 10 Div.
5 20 heading new
6 35 ILCS 200/10-800was 35 ILCS 200/15-174
7 35 ILCS 200/Art. 15 Div. 1
8 heading new
9 35 ILCS 200/15-13 new
10 35 ILCS 200/Art. 15 Div. 2
11 heading new
12 35 ILCS 200/15-163 new
13 35 ILCS 200/15-167
14 35 ILCS 200/15-168
15 35 ILCS 200/15-169
16 35 ILCS 200/15-170
17 35 ILCS 200/15-172
18 35 ILCS 200/15-173
19 35 ILCS 200/15-175
20 35 ILCS 200/15-176
21 35 ILCS 200/15-177
22 35 ILCS 200/15-180
23 35 ILCS 200/Art. 15 Div. 3
24 heading new
25 35 ILCS 200/15-261 new

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