100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2355

 

Introduced , by Rep. Sam Yingling

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the maximum amount of the general homestead exemption is $7,500 in all counties (currently, $7,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2355LRB100 08106 HLH 18200 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-175 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently
17determined by local assessing officials, the Property Tax
18Appeal Board, or a court to have been excessive, the equalized
19assessed value which should have been placed on the property
20for 1977 shall be used to determine the amount of the
21exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties

 

 

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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
7and thereafter, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable years 2017 and thereafter, the maximum
10reduction is $7,500 in all counties. If a county has elected to
11subject itself to the provisions of Section 15-176 as provided
12in subsection (k) of that Section, then, for the first taxable
13year only after the provisions of Section 15-176 no longer
14apply, for owners who, for the taxable year, have not been
15granted a senior citizens assessment freeze homestead
16exemption under Section 15-172 or a long-time occupant
17homestead exemption under Section 15-177, there shall be an
18additional exemption of $5,000 for owners with a household
19income of $30,000 or less.
20    (c) In counties with fewer than 3,000,000 inhabitants, if,
21based on the most recent assessment, the equalized assessed
22value of the homestead property for the current assessment year
23is greater than the equalized assessed value of the property
24for 1977, the owner of the property shall automatically receive
25the exemption granted under this Section in an amount equal to
26the increase over the 1977 assessment up to the maximum

 

 

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1reduction 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) In counties with 3,000,000 or more inhabitants, where
16the 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

 

 

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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 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

 

 

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1    in effect for the county in which the property is located;
2        (2) that a copy of the lease must be filed with the
3    chief county assessment officer by the owner of the
4    property at the time the notarized application is
5    submitted;
6        (3) that the lease must expressly state that the lessee
7    is liable for the payment of property taxes; and
8        (4) that the lease must include the following language
9    in substantially the following form:
10            "Lessee shall be liable for the payment of real
11        estate taxes with respect to the residence in
12        accordance with the terms and conditions of Section
13        15-175 of the Property Tax Code (35 ILCS 200/15-175).
14        The permanent real estate index number for the premises
15        is (insert number), and, according to the most recent
16        property tax bill, the current amount of real estate
17        taxes associated with the premises is (insert amount)
18        per year. The parties agree that the monthly rent set
19        forth above shall be increased or decreased pro rata
20        (effective January 1 of each calendar year) to reflect
21        any increase or decrease in real estate taxes. Lessee
22        shall be deemed to be satisfying Lessee's liability for
23        the above mentioned real estate taxes with the monthly
24        rent payments as set forth above (or increased or
25        decreased as set forth herein).".
26    In addition, if there is a change in lessee, or if the

 

 

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

 

 

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

 

 

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1Department, provided that the taxpayer applying for an
2additional general exemption under this Section shall submit to
3the chief county assessment officer an application with an
4affidavit of the applicant's total household income, age,
5marital status (and, if married, the name and address of the
6applicant's spouse, if known), and principal dwelling place of
7members of the household on January 1 of the taxable year. The
8Department shall issue guidelines establishing a method for
9verifying the accuracy of the affidavits filed by applicants
10under this paragraph. The applications shall be clearly marked
11as applications for the Additional General Homestead
12Exemption.
13    (i-5) This subsection (i-5) applies to counties with
143,000,000 or more inhabitants. In the event of a sale of
15homestead property, the homestead exemption shall remain in
16effect for the remainder of the assessment year of the sale.
17Upon receipt of a transfer declaration transmitted by the
18recorder pursuant to Section 31-30 of the Real Estate Transfer
19Tax Law for property receiving an exemption under this Section,
20the assessor shall mail a notice and forms to the new owner of
21the property providing information pertaining to the rules and
22applicable filing periods for applying or reapplying for
23homestead exemptions under this Code for which the property may
24be eligible. If the new owner fails to apply or reapply for a
25homestead exemption during the applicable filing period or the
26property no longer qualifies for an existing homestead

 

 

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1exemption, the assessor shall cancel such exemption for any
2ensuing assessment year.
3    (j) In counties with fewer than 3,000,000 inhabitants, in
4the event of a sale of homestead property the homestead
5exemption shall remain in effect for the remainder of the
6assessment year of the sale. The assessor or chief county
7assessment officer may require the new owner of the property to
8apply for the homestead exemption for the following assessment
9year.
10    (k) 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 this Section.
13(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
14eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
1599-851, eff. 8-19-16.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.