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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB6294 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/15-175 | | 35 ILCS 200/15-177 | |
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Amends the Property Tax Code. Provides that the general homestead exemption amount and the long-time occupant homestead exemption amount shall be doubled for homestead property that is negatively affected by aircraft noise from Chicago O'Hare
International Airport. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | HB6294 | | LRB098 22320 HLH 61240 b |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Property Tax Code is amended by changing |
5 | | Sections 15-175 and 15-177 as follows:
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6 | | (35 ILCS 200/15-175)
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7 | | Sec. 15-175. General homestead exemption. |
8 | | (a) Except as provided in Sections 15-176 and 15-177, |
9 | | homestead
property is
entitled to an annual homestead exemption |
10 | | limited, except as described here
with relation to |
11 | | cooperatives, to a reduction in the equalized assessed value
of |
12 | | homestead property equal to the increase in equalized assessed |
13 | | value for the
current assessment year above the equalized |
14 | | assessed value of the property for
1977, up to the maximum |
15 | | reduction set forth below. If however, the 1977
equalized |
16 | | assessed value upon which taxes were paid is subsequently |
17 | | determined
by local assessing officials, the Property Tax |
18 | | Appeal Board, or a court to have
been excessive, the equalized |
19 | | assessed value which should have been placed on
the property |
20 | | for 1977 shall be used to determine the amount of the |
21 | | exemption.
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22 | | (b) Except as provided in Section 15-176, the maximum |
23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other |
2 | | counties. Except as provided in Sections 15-176 and 15-177, for |
3 | | taxable years 2004 through 2007, the maximum reduction shall be |
4 | | $5,000, for taxable year 2008, the maximum reduction is $5,500, |
5 | | and, for taxable years 2009 through 2011, the maximum reduction |
6 | | is $6,000 in all counties. For taxable years 2012 and |
7 | | thereafter, the maximum reduction is $7,000 in counties with |
8 | | 3,000,000 or more
inhabitants
and $6,000 in all other counties. |
9 | | If a county has elected to subject itself to the provisions of |
10 | | Section 15-176 as provided in subsection (k) of that Section, |
11 | | then, for the first taxable year only after the provisions of |
12 | | Section 15-176 no longer apply, for owners who, for the taxable |
13 | | year, have not been granted a senior citizens assessment freeze |
14 | | homestead exemption under Section 15-172 or a long-time |
15 | | occupant homestead exemption under Section 15-177, there shall |
16 | | be an additional exemption of $5,000 for owners with a |
17 | | household income of $30,000 or less.
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18 | | (c) In counties with fewer than 3,000,000 inhabitants, if, |
19 | | based on the most
recent assessment, the equalized assessed |
20 | | value of
the homestead property for the current assessment year |
21 | | is greater than the
equalized assessed value of the property |
22 | | for 1977, the owner of the property
shall automatically receive |
23 | | the exemption granted under this Section in an
amount equal to |
24 | | the increase over the 1977 assessment up to the maximum
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25 | | reduction set forth in this Section.
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26 | | (d) If in any assessment year beginning with the 2000 |
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1 | | assessment year,
homestead property has a pro-rata valuation |
2 | | under
Section 9-180 resulting in an increase in the assessed |
3 | | valuation, a reduction
in equalized assessed valuation equal to |
4 | | the increase in equalized assessed
value of the property for |
5 | | the year of the pro-rata valuation above the
equalized assessed |
6 | | value of the property for 1977 shall be applied to the
property |
7 | | on a proportionate basis for the period the property qualified |
8 | | as
homestead property during the assessment year. The maximum |
9 | | proportionate
homestead exemption shall not exceed the maximum |
10 | | homestead exemption allowed in
the county under this Section |
11 | | divided by 365 and multiplied by the number of
days the |
12 | | property qualified as homestead property.
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13 | | (e) The chief county assessment officer may, when |
14 | | considering whether to grant a leasehold exemption under this |
15 | | Section, require the following conditions to be met: |
16 | | (1) that a notarized application for the exemption, |
17 | | signed by both the owner and the lessee of the property, |
18 | | must be submitted each year during the application period |
19 | | in effect for the county in which the property is located; |
20 | | (2) that a copy of the lease must be filed with the |
21 | | chief county assessment officer by the owner of the |
22 | | property at the time the notarized application is |
23 | | submitted; |
24 | | (3) that the lease must expressly state that the lessee |
25 | | is liable for the payment of property taxes; and |
26 | | (4) that the lease must include the following language |
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1 | | in substantially the following form: |
2 | | "Lessee shall be liable for the payment of real |
3 | | estate taxes with respect to the residence in |
4 | | accordance with the terms and conditions of Section |
5 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). |
6 | | The permanent real estate index number for the premises |
7 | | is (insert number), and, according to the most recent |
8 | | property tax bill, the current amount of real estate |
9 | | taxes associated with the premises is (insert amount) |
10 | | per year. The parties agree that the monthly rent set |
11 | | forth above shall be increased or decreased pro rata |
12 | | (effective January 1 of each calendar year) to reflect |
13 | | any increase or decrease in real estate taxes. Lessee |
14 | | shall be deemed to be satisfying Lessee's liability for |
15 | | the above mentioned real estate taxes with the monthly |
16 | | rent payments as set forth above (or increased or |
17 | | decreased as set forth herein).". |
18 | | In addition, if there is a change in lessee, or if the |
19 | | lessee vacates the property, then the chief county assessment |
20 | | officer may require the owner of the property to notify the |
21 | | chief county assessment officer of that change. |
22 | | This subsection (e) does not apply to leasehold interests |
23 | | in property owned by a municipality. |
24 | | (e-5) Notwithstanding any other provision of law, and |
25 | | notwithstanding the limitations set forth in subsection (b), |
26 | | beginning in assessment year 2014, if homestead property is |
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1 | | negatively affected by aircraft noise from Chicago O'Hare
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2 | | International Airport, then the amount of the exemption for |
3 | | that property shall be the amount of the exemption otherwise |
4 | | provided under this Section for that property, multiplied by 2. |
5 | | For the purposes of this subsection (e-5), property is |
6 | | negatively affected by aircraft noise from Chicago O'Hare
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7 | | International Airport if the property routinely experiences |
8 | | aircraft noise of 65 decibels or more, and that aircraft noise |
9 | | is directly attributable to flight patterns at Chicago O'Hare
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10 | | International Airport. The assessor or chief county assessment |
11 | | officer may determine the eligibility of residential property |
12 | | to receive the double homestead exemption under this subsection |
13 | | by application, visual inspection, questionnaire, or other |
14 | | reasonable methods. The determination shall be made in |
15 | | accordance with guidelines established by the Department, |
16 | | provided that the taxpayer applying for a double homestead |
17 | | exemption under this subsection shall submit to the chief |
18 | | county assessment officer, along with the taxpayer's original |
19 | | homestead exemption application, additional documentation |
20 | | establishing that the property is negatively affected by |
21 | | aircraft noise from Chicago O'Hare
International Airport. |
22 | | (f) "Homestead property" under this Section includes |
23 | | residential property that is
occupied by its owner or owners as |
24 | | his or their principal dwelling place, or
that is a leasehold |
25 | | interest on which a single family residence is situated,
which |
26 | | is occupied as a residence by a person who has an ownership |
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1 | | interest
therein, legal or equitable or as a lessee, and on |
2 | | which the person is
liable for the payment of property taxes. |
3 | | For land improved with
an apartment building owned and operated |
4 | | as a cooperative or a building which
is a life care facility as |
5 | | defined in Section 15-170 and considered to
be a cooperative |
6 | | under Section 15-170, the maximum reduction from the equalized
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7 | | assessed value shall be limited to the increase in the value |
8 | | above the
equalized assessed value of the property for 1977, up |
9 | | to
the maximum reduction set forth above, multiplied by the |
10 | | number of apartments
or units occupied by a person or persons |
11 | | who is liable, by contract with the
owner or owners of record, |
12 | | for paying property taxes on the property and is an
owner of |
13 | | record of a legal or equitable interest in the cooperative
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14 | | apartment building, other than a leasehold interest. For |
15 | | purposes of this
Section, the term "life care facility" has the |
16 | | meaning stated in Section
15-170.
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17 | | "Household", as used in this Section,
means the owner, the |
18 | | spouse of the owner, and all persons using
the
residence of the |
19 | | owner as their principal place of residence.
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20 | | "Household income", as used in this Section,
means the |
21 | | combined income of the members of a household
for the calendar |
22 | | year preceding the taxable year.
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23 | | "Income", as used in this Section,
has the same meaning as |
24 | | provided in Section 3.07 of the Senior
Citizens
and Disabled |
25 | | Persons Property Tax Relief Act,
except that
"income" does not |
26 | | include veteran's benefits.
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1 | | (g) In a cooperative where a homestead exemption has been |
2 | | granted, the
cooperative association or its management firm |
3 | | shall credit the savings
resulting from that exemption only to |
4 | | the apportioned tax liability of the
owner who qualified for |
5 | | the exemption. Any person who willfully refuses to so
credit |
6 | | the savings shall be guilty of a Class B misdemeanor.
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7 | | (h) Where married persons maintain and reside in separate |
8 | | residences qualifying
as homestead property, each residence |
9 | | shall receive 50% of the total reduction
in equalized assessed |
10 | | valuation provided by this Section.
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11 | | (i) In all counties, the assessor
or chief county |
12 | | assessment officer may determine the
eligibility of |
13 | | residential property to receive the homestead exemption and the |
14 | | amount of the exemption by
application, visual inspection, |
15 | | questionnaire or other reasonable methods. The
determination |
16 | | shall be made in accordance with guidelines established by the
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17 | | Department, provided that the taxpayer applying for an |
18 | | additional general exemption under this Section shall submit to |
19 | | the chief county assessment officer an application with an |
20 | | affidavit of the applicant's total household income, age, |
21 | | marital status (and, if married, the name and address of the |
22 | | applicant's spouse, if known), and principal dwelling place of |
23 | | members of the household on January 1 of the taxable year. The |
24 | | Department shall issue guidelines establishing a method for |
25 | | verifying the accuracy of the affidavits filed by applicants |
26 | | under this paragraph. The applications shall be clearly marked |
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1 | | as applications for the Additional General Homestead |
2 | | Exemption.
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3 | | (j) In counties with fewer than 3,000,000 inhabitants, in |
4 | | the event of a sale
of
homestead property the homestead |
5 | | exemption shall remain in effect for the
remainder of the |
6 | | assessment year of the sale. The assessor or chief county
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7 | | assessment officer may require the new
owner of the property to |
8 | | apply for the homestead exemption for the following
assessment |
9 | | year.
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10 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates |
11 | | Act, no reimbursement by the State is required for the |
12 | | implementation of any mandate created by this Section.
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13 | | (Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12; |
14 | | 98-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
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15 | | (35 ILCS 200/15-177) |
16 | | Sec. 15-177. The long-time occupant homestead exemption. |
17 | | (a) If the county has elected, under Section 15-176, to be |
18 | | subject to the provisions of the alternative general homestead |
19 | | exemption, then, for taxable years 2007 and thereafter, |
20 | | regardless of whether the exemption under Section 15-176 |
21 | | applies, qualified homestead property is
entitled to
an annual |
22 | | homestead exemption equal to a reduction in the property's |
23 | | equalized
assessed
value calculated as provided in this |
24 | | Section. |
25 | | (b) As used in this Section: |
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1 | | "Adjusted homestead value" means the lesser of
the |
2 | | following values: |
3 | | (1) The property's base homestead value increased
by: |
4 | | (i) 10% for each taxable year after the base year through |
5 | | and including the current tax year for qualified taxpayers |
6 | | with a household income of more than $75,000 but not |
7 | | exceeding $100,000; or (ii) 7% for each taxable year after |
8 | | the base year through and including the current tax year |
9 | | for qualified taxpayers with a household income of $75,000 |
10 | | or less. The increase each year is an increase over the |
11 | | prior year; or |
12 | | (2) The property's equalized assessed value for
the |
13 | | current tax year minus the general homestead deduction. |
14 | | "Base homestead value" means: |
15 | | (1) if the property did not have an adjusted homestead |
16 | | value under Section 15-176 for the base year, then an |
17 | | amount equal to the equalized assessed value of the |
18 | | property for the base year prior to exemptions, minus the |
19 | | general homestead deduction, provided that the property's |
20 | | assessment was not based on a reduced assessed value |
21 | | resulting from a temporary irregularity in the property for |
22 | | that year; or |
23 | | (2) if the property had an adjusted homestead value |
24 | | under Section 15-176 for the base year, then an amount |
25 | | equal to the adjusted homestead value of the property under |
26 | | Section 15-176 for the base year. |
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1 | | "Base year" means the taxable year prior to the taxable |
2 | | year in which the taxpayer first qualifies for the exemption |
3 | | under this Section. |
4 | | "Current taxable year" means the taxable year for which
the |
5 | | exemption under this Section is being applied. |
6 | | "Equalized assessed value" means the property's
assessed |
7 | | value as equalized by the Department. |
8 | | "Homestead" or "homestead property" means residential |
9 | | property that as of January 1 of
the tax year is occupied by a |
10 | | qualified taxpayer as his or her principal dwelling place, or |
11 | | that is a leasehold interest on which a single family residence |
12 | | is situated, that is occupied as a residence by a qualified |
13 | | taxpayer who has a legal or equitable interest therein |
14 | | evidenced by a written instrument, as an owner or as a lessee, |
15 | | and on which the person is liable for the payment of property |
16 | | taxes. Residential units in an apartment building owned and |
17 | | operated as a cooperative, or as a life care facility, which |
18 | | are occupied by persons who hold a legal or equitable interest |
19 | | in the cooperative apartment building or life care facility as |
20 | | owners or lessees, and who are liable by contract for the |
21 | | payment of property taxes, are included within this definition |
22 | | of homestead property. A homestead includes the dwelling place,
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23 | | appurtenant structures, and so much of the surrounding land |
24 | | constituting the parcel on which the dwelling place is situated |
25 | | as is used for residential purposes. If the assessor has |
26 | | established a specific legal description for a portion of |
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1 | | property constituting the homestead, then the homestead is |
2 | | limited to the property within that description. |
3 | | "Household income" has the meaning set forth under Section |
4 | | 15-172 of this Code.
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5 | | "General homestead deduction" means the amount of the |
6 | | general homestead exemption under Section 15-175.
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7 | | "Life care facility" means a facility defined
in Section 2 |
8 | | of the Life Care Facilities Act. |
9 | | "Qualified homestead property" means homestead property |
10 | | owned by a qualified taxpayer.
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11 | | "Qualified taxpayer" means any individual: |
12 | | (1) who, for at least 10 continuous years as of January |
13 | | 1 of the taxable year, has occupied the same homestead |
14 | | property as a principal residence and domicile or who, for |
15 | | at least 5 continuous years as of January 1 of the taxable |
16 | | year, has occupied the same homestead property as a |
17 | | principal residence and domicile if that person received |
18 | | assistance in the acquisition of the property as part of a |
19 | | government or nonprofit housing program; and |
20 | | (2) who has a household income of $100,000 or less.
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21 | | (c) The base homestead value must remain constant, except |
22 | | that the assessor may revise it under any of the following |
23 | | circumstances: |
24 | | (1) If the equalized assessed value of a homestead
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25 | | property for the current tax year is less than the previous |
26 | | base homestead value for that property, then the current |
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1 | | equalized assessed value (provided it is not based on a |
2 | | reduced assessed value resulting from a temporary |
3 | | irregularity in the property) becomes the base homestead |
4 | | value in subsequent tax years. |
5 | | (2) For any year in which new buildings, structures,
or |
6 | | other improvements are constructed on the homestead |
7 | | property that would increase its assessed value, the |
8 | | assessor shall adjust the base homestead value with due |
9 | | regard to the value added by the new improvements. |
10 | | (d) The amount of the exemption under this Section is the |
11 | | greater of: (i) the equalized assessed value of the homestead |
12 | | property for the current tax year minus the adjusted homestead |
13 | | value; or (ii) the general homestead deduction. |
14 | | (d-5) Notwithstanding any other provision of law, if |
15 | | qualified homestead property is negatively affected by |
16 | | aircraft noise from Chicago O'Hare
International Airport, as |
17 | | provided in subsection (e-5) of Section 15-175, then the amount |
18 | | of the exemption for that property shall be the greater of: (i) |
19 | | the difference between the equalized assessed value of the |
20 | | homestead property for the current tax year and the adjusted |
21 | | homestead value, multiplied by 2; or (ii) the general homestead |
22 | | deduction calculated under subsection (e-5) of Section 15-175. |
23 | | The assessor or chief county assessment officer may determine |
24 | | the eligibility of residential property to receive the double |
25 | | homestead exemption under this subsection by application, |
26 | | visual inspection, questionnaire, or other reasonable methods. |
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1 | | The determination shall be made in accordance with guidelines |
2 | | established by the Department, provided that the taxpayer |
3 | | applying for a double homestead exemption under this subsection |
4 | | shall submit to the chief county assessment officer, along with |
5 | | the taxpayer's original homestead exemption application, |
6 | | additional documentation establishing that the property is |
7 | | negatively affected by aircraft noise from Chicago O'Hare
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8 | | International Airport. |
9 | | (e) In the case of an apartment building owned and operated |
10 | | as a cooperative, or as a life care facility, that contains |
11 | | residential units that qualify as homestead property of a |
12 | | qualified taxpayer under this Section, the maximum cumulative |
13 | | exemption amount attributed to the entire building or facility |
14 | | shall not exceed the sum of the exemptions calculated for each |
15 | | unit that is a qualified homestead property. The cooperative |
16 | | association, management firm, or other person or entity that |
17 | | manages or controls the cooperative apartment building or life |
18 | | care facility shall credit the exemption attributable to each |
19 | | residential unit only to the apportioned tax liability of the |
20 | | qualified taxpayer as to that unit. Any person who willfully |
21 | | refuses to so credit the exemption is guilty of a Class B |
22 | | misdemeanor. |
23 | | (f) When married persons maintain separate residences, the |
24 | | exemption provided under this Section may be claimed by only |
25 | | one such person and for only one residence. No person who |
26 | | receives an exemption under Section 15-172 of this Code may |
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1 | | receive an exemption under this Section. No person who receives |
2 | | an exemption under this Section may receive an exemption under |
3 | | Section 15-175 or 15-176 of this Code. |
4 | | (g) In the event of a sale or other transfer in ownership |
5 | | of the homestead property between spouses or between a parent |
6 | | and a child, the exemption under this Section remains in effect |
7 | | if the new owner has a household income of $100,000 or less. |
8 | | (h) In the event of a sale or other transfer in ownership |
9 | | of the homestead property other than subsection (g) of this |
10 | | Section, the exemption under this Section shall remain in |
11 | | effect for the remainder of the tax year and be calculated |
12 | | using the same base homestead value in which the sale or |
13 | | transfer occurs.
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14 | | (i) To receive the exemption, a person must submit an |
15 | | application to the county assessor during the period specified |
16 | | by the county assessor. |
17 | | The county assessor shall annually give notice of the |
18 | | application period by mail or by publication. |
19 | | The taxpayer must submit, with the application, an |
20 | | affidavit of the taxpayer's total household income, marital |
21 | | status (and if married the name and address of the applicant's |
22 | | spouse, if known), and principal dwelling place of members of |
23 | | the household on January 1 of the taxable year. The Department |
24 | | shall establish, by rule, a method for verifying the accuracy |
25 | | of affidavits filed by applicants under this Section, and the |
26 | | Chief County Assessment Officer may conduct audits of any |
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1 | | taxpayer claiming an exemption under this Section to verify |
2 | | that the taxpayer is eligible to receive the exemption. Each |
3 | | application shall contain or be verified by a written |
4 | | declaration that it is made under the penalties of perjury. A |
5 | | taxpayer's signing a fraudulent application under this Act is |
6 | | perjury, as defined in Section 32-2 of the Criminal Code of |
7 | | 2012. The applications shall be clearly marked as applications |
8 | | for the Long-time Occupant Homestead Exemption and must contain |
9 | | a notice that any taxpayer who receives the exemption is |
10 | | subject to an audit by the Chief County Assessment Officer. |
11 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates |
12 | | Act, no reimbursement by the State is required for the |
13 | | implementation of any mandate created by this Section.
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14 | | (Source: P.A. 97-1150, eff. 1-25-13.)
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15 | | Section 99. Effective date. This Act takes effect upon |
16 | | becoming law.
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