|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Property Tax Code is amended by changing | ||||||||||||||||||||||||||
5 | Sections 15-170 and 15-176 as follows:
| ||||||||||||||||||||||||||
6 | (35 ILCS 200/15-170)
| ||||||||||||||||||||||||||
7 | Sec. 15-170. Senior Citizens Homestead Exemption. An | ||||||||||||||||||||||||||
8 | annual homestead
exemption limited, except as described here | ||||||||||||||||||||||||||
9 | with relation to cooperatives or
life care facilities, to a
| ||||||||||||||||||||||||||
10 | maximum reduction set forth below from the property's value, as | ||||||||||||||||||||||||||
11 | equalized or
assessed by the Department, is granted for | ||||||||||||||||||||||||||
12 | property that is occupied as a
residence by a person 65 years | ||||||||||||||||||||||||||
13 | of age or older who is liable for paying real
estate taxes on | ||||||||||||||||||||||||||
14 | the property and is an owner of record of the property or has a
| ||||||||||||||||||||||||||
15 | legal or equitable interest therein as evidenced by a written | ||||||||||||||||||||||||||
16 | instrument,
except for a leasehold interest, other than a | ||||||||||||||||||||||||||
17 | leasehold interest of land on
which a single family residence | ||||||||||||||||||||||||||
18 | is located, which is occupied as a residence by
a person 65 | ||||||||||||||||||||||||||
19 | years or older who has an ownership interest therein, legal,
| ||||||||||||||||||||||||||
20 | equitable or as a lessee, and on which he or she is liable for | ||||||||||||||||||||||||||
21 | the payment
of property taxes. Before taxable year 2004, the | ||||||||||||||||||||||||||
22 | maximum reduction shall be $2,500 in counties with
3,000,000 or | ||||||||||||||||||||||||||
23 | more inhabitants and $2,000 in all other counties. For taxable | ||||||||||||||||||||||||||
24 | years 2004 and thereafter, the maximum reduction shall be | ||||||||||||||||||||||||||
25 | $3,000 in all counties. For land
improved with an apartment | ||||||||||||||||||||||||||
26 | building owned and operated as a cooperative, the maximum | ||||||||||||||||||||||||||
27 | reduction from the value of the property, as
equalized
by the | ||||||||||||||||||||||||||
28 | Department, shall be multiplied by the number of apartments or | ||||||||||||||||||||||||||
29 | units
occupied by a person 65 years of age or older who is | ||||||||||||||||||||||||||
30 | liable, by contract with
the owner or owners of record, for | ||||||||||||||||||||||||||
31 | paying property taxes on the property and
is an owner of record | ||||||||||||||||||||||||||
32 | of a legal or equitable interest in the cooperative
apartment |
| |||||||
| |||||||
1 | building, other than a leasehold interest. For land improved | ||||||
2 | with
a life care facility, the maximum reduction from the value | ||||||
3 | of the property, as
equalized by the Department, shall be | ||||||
4 | multiplied by the number of apartments or
units occupied by | ||||||
5 | persons 65 years of age or older, irrespective of any legal,
| ||||||
6 | equitable, or leasehold interest in the facility, who are | ||||||
7 | liable, under a
contract with the owner or owners of record of | ||||||
8 | the facility, for paying
property taxes on the property. In a
| ||||||
9 | cooperative or a life care facility where a
homestead exemption | ||||||
10 | has been granted, the cooperative association or the
management | ||||||
11 | firm of the cooperative or facility shall credit the savings
| ||||||
12 | resulting from that exemption only to
the apportioned tax | ||||||
13 | liability of the owner or resident who qualified for
the | ||||||
14 | exemption.
Any person who willfully refuses to so credit the | ||||||
15 | savings shall be guilty of a
Class B misdemeanor. Under this | ||||||
16 | Section and Sections 15-175 and 15-176, "life care
facility" | ||||||
17 | means a facility as defined in Section 2 of the Life Care | ||||||
18 | Facilities
Act, with which the applicant for the homestead | ||||||
19 | exemption has a life care
contract as defined in that Act.
| ||||||
20 | When a homestead exemption has been granted under this | ||||||
21 | Section and the person
qualifying subsequently becomes a | ||||||
22 | resident of a facility licensed under the
Nursing Home Care | ||||||
23 | Act, the exemption shall continue so long as the residence
| ||||||
24 | continues to be occupied by the qualifying person's spouse if | ||||||
25 | the spouse is 65
years of age or older, or if the residence | ||||||
26 | remains unoccupied but is still
owned by the person qualified | ||||||
27 | for the homestead exemption.
| ||||||
28 | A person who will be 65 years of age
during the current | ||||||
29 | assessment year
shall
be eligible to apply for the homestead | ||||||
30 | exemption during that assessment
year.
Application shall be | ||||||
31 | made during the application period in effect for the
county of | ||||||
32 | his residence.
| ||||||
33 | Beginning with assessment year 2003, for taxes payable in | ||||||
34 | 2004,
property
that is first occupied as a residence after | ||||||
35 | January 1 of any assessment year by
a person who is eligible | ||||||
36 | for the senior citizens homestead exemption under this
Section |
| |||||||
| |||||||
1 | must be granted a pro-rata exemption for the assessment year. | ||||||
2 | The
amount of the pro-rata exemption is the exemption
allowed | ||||||
3 | in the county under this Section divided by 365 and multiplied | ||||||
4 | by the
number of days during the assessment year the property | ||||||
5 | is occupied as a
residence by a
person eligible for the | ||||||
6 | exemption under this Section. The chief county
assessment | ||||||
7 | officer must adopt reasonable procedures to establish | ||||||
8 | eligibility
for this pro-rata exemption.
| ||||||
9 | The assessor or chief county assessment officer may | ||||||
10 | determine the eligibility
of a life care facility to receive | ||||||
11 | the benefits provided by this Section, by
affidavit, | ||||||
12 | application, visual inspection, questionnaire or other | ||||||
13 | reasonable
methods in order to insure that the tax savings | ||||||
14 | resulting from the exemption
are credited by the management | ||||||
15 | firm to the apportioned tax liability of each
qualifying | ||||||
16 | resident. The assessor may request reasonable proof that the
| ||||||
17 | management firm has so credited the exemption.
| ||||||
18 | The chief county assessment officer of each county with | ||||||
19 | less than 3,000,000
inhabitants shall provide to each person | ||||||
20 | allowed a homestead exemption under
this Section a form to | ||||||
21 | designate any other person to receive a
duplicate of any notice | ||||||
22 | of delinquency in the payment of taxes assessed and
levied | ||||||
23 | under this Code on the property of the person receiving the | ||||||
24 | exemption.
The duplicate notice shall be in addition to the | ||||||
25 | notice required to be
provided to the person receiving the | ||||||
26 | exemption, and shall be given in the
manner required by this | ||||||
27 | Code. The person filing the request for the duplicate
notice | ||||||
28 | shall pay a fee of $5 to cover administrative costs to the | ||||||
29 | supervisor of
assessments, who shall then file the executed | ||||||
30 | designation with the county
collector. Notwithstanding any | ||||||
31 | other provision of this Code to the contrary,
the filing of | ||||||
32 | such an executed designation requires the county collector to
| ||||||
33 | provide duplicate notices as indicated by the designation. A | ||||||
34 | designation may
be rescinded by the person who executed such | ||||||
35 | designation at any time, in the
manner and form required by the | ||||||
36 | chief county assessment officer.
|
| |||||||
| |||||||
1 | The assessor or chief county assessment officer may | ||||||
2 | determine the
eligibility of residential property to receive | ||||||
3 | the homestead exemption provided
by this Section by | ||||||
4 | application, visual inspection, questionnaire or other
| ||||||
5 | reasonable methods. The determination shall be made in | ||||||
6 | accordance with
guidelines established by the Department.
| ||||||
7 | In all counties with less than 3,000,000 inhabitants , the | ||||||
8 | county board may by
resolution provide that if a person has | ||||||
9 | been granted a homestead exemption
under this Section, the | ||||||
10 | person qualifying need not reapply for the exemption.
| ||||||
11 | In counties with less than 3,000,000 inhabitants, if the | ||||||
12 | assessor or chief
county assessment officer requires annual | ||||||
13 | application for verification of
eligibility for an exemption | ||||||
14 | once granted under this Section, the application
shall be | ||||||
15 | mailed to the taxpayer.
| ||||||
16 | The assessor or chief county assessment officer shall | ||||||
17 | notify each person
who qualifies for an exemption under this | ||||||
18 | Section that the person may also
qualify for deferral of real | ||||||
19 | estate taxes under the Senior Citizens Real Estate
Tax Deferral | ||||||
20 | Act. The notice shall set forth the qualifications needed for
| ||||||
21 | deferral of real estate taxes, the address and telephone number | ||||||
22 | of
county collector, and a
statement that applications for | ||||||
23 | deferral of real estate taxes may be obtained
from the county | ||||||
24 | collector.
| ||||||
25 | Notwithstanding Sections 6 and 8 of the State Mandates Act, | ||||||
26 | no
reimbursement by the State is required for the | ||||||
27 | implementation of any mandate
created by this Section.
| ||||||
28 | (Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03; | ||||||
29 | 93-715, eff. 7-12-04.)
| ||||||
30 | (35 ILCS 200/15-176)
| ||||||
31 | Sec. 15-176. Alternative general homestead exemption.
| ||||||
32 | (a) In
For the assessment years as determined under | ||||||
33 | subsection (j), in any county that has elected, by an ordinance | ||||||
34 | in accordance with subsection (k), to be subject to the | ||||||
35 | provisions of this Section in lieu of the provisions of Section |
| |||||||
| |||||||
1 | 15-175, homestead property is
entitled to
an annual homestead | ||||||
2 | exemption equal to a reduction in the property's equalized
| ||||||
3 | assessed
value calculated as provided in this Section.
| ||||||
4 | (b) As used in this Section:
| ||||||
5 | (1) "Assessor" means the supervisor of assessments or | ||||||
6 | the chief county assessment officer of each county.
| ||||||
7 | (2) "Adjusted homestead value" means the lesser of the | ||||||
8 | following values:
| ||||||
9 | (A) The property's base homestead value increased | ||||||
10 | by 7% for each
tax year after the base year through and | ||||||
11 | including the current tax year, or, if the property is | ||||||
12 | sold or ownership is otherwise transferred, the | ||||||
13 | property's base homestead value increased by 7% for | ||||||
14 | each tax year after the year of the sale or transfer | ||||||
15 | through and including the current tax year. The | ||||||
16 | increase by 7% each year is an increase by 7% over the | ||||||
17 | prior year.
| ||||||
18 | (B) The property's equalized assessed value for | ||||||
19 | the current tax
year minus (i) $4,500 in Cook County or | ||||||
20 | $3,500 in all other counties in tax year 2003 or (ii) | ||||||
21 | $5,000 in all counties in tax year 2004 and thereafter.
| ||||||
22 | (3) "Base homestead value".
| ||||||
23 | (A) Except as provided in subdivision (b)(3)(B), | ||||||
24 | "base homestead value" means the equalized assessed | ||||||
25 | value of the property for the base year
prior to | ||||||
26 | exemptions, minus (i) $4,500 in Cook County or $3,500 | ||||||
27 | in all other counties in tax year 2003 or (ii) $5,000 | ||||||
28 | in all counties in tax year 2004 and thereafter, | ||||||
29 | provided that it was assessed for that
year as | ||||||
30 | residential property qualified for any of the | ||||||
31 | homestead exemptions
under Sections 15-170 through | ||||||
32 | 15-175 of this Code, then in force, and
further | ||||||
33 | provided that the property's assessment was not based | ||||||
34 | on a reduced
assessed value resulting from a temporary | ||||||
35 | irregularity in the property for
that year. Except as | ||||||
36 | provided in subdivision (b)(3)(B), if the property did |
| |||||||
| |||||||
1 | not have a
residential
equalized assessed value for the | ||||||
2 | base year, then "base homestead value" means the base
| ||||||
3 | homestead value established by the assessor under | ||||||
4 | subsection (c).
| ||||||
5 | (B) If the property is sold or ownership is | ||||||
6 | otherwise transferred, other than sales or transfers | ||||||
7 | between spouses or between a parent and a child, "base | ||||||
8 | homestead value" means the equalized assessed value of | ||||||
9 | the property at the time of the sale or transfer prior | ||||||
10 | to exemptions, minus (i) $4,500 in Cook County or | ||||||
11 | $3,500 in all other counties in tax year 2003 or (ii) | ||||||
12 | $5,000 in all counties in tax year 2004 and thereafter, | ||||||
13 | provided that it was assessed as residential property | ||||||
14 | qualified for any of the homestead exemptions
under | ||||||
15 | Sections 15-170 through 15-175 of this Code, then in | ||||||
16 | force, and
further provided that the property's | ||||||
17 | assessment was not based on a reduced
assessed value | ||||||
18 | resulting from a temporary irregularity in the | ||||||
19 | property.
| ||||||
20 | (3.5) "Base year" means (i) tax year 2002 in Cook | ||||||
21 | County or (ii) tax year 2002 or 2003 in all other counties , | ||||||
22 | the tax year designated
in accordance with the designation | ||||||
23 | made by the county as provided in subsection (k).
| ||||||
24 | (4) "Current tax year" means the tax year for which the | ||||||
25 | exemption under
this Section is being applied.
| ||||||
26 | (5) "Equalized assessed value" means the property's | ||||||
27 | assessed value as
equalized by the Department.
| ||||||
28 | (6) "Homestead" or "homestead property" means:
| ||||||
29 | (A) Residential property that as of January 1 of | ||||||
30 | the tax year is
occupied by its owner or owners as his, | ||||||
31 | her, or their principal dwelling
place, or that is a | ||||||
32 | leasehold interest on which a single family residence | ||||||
33 | is
situated, that is occupied as a residence by a | ||||||
34 | person who has a legal or
equitable interest therein | ||||||
35 | evidenced by a written instrument, as an owner
or as a | ||||||
36 | lessee, and on which the person is liable for the |
| |||||||
| |||||||
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 | ||||||
20 | assessed value for
the base year as provided in subdivision | ||||||
21 | (b)(3)(A) of this Section, then the assessor
shall first | ||||||
22 | determine an initial value for the property by comparison with
| ||||||
23 | assessed values for the base year of other properties having | ||||||
24 | physical and
economic characteristics similar to those of the | ||||||
25 | subject property, so that the
initial value is uniform in | ||||||
26 | relation to assessed values of those other
properties for the | ||||||
27 | base year. The product of the initial value multiplied by
the | ||||||
28 | equalized factor for the base year for homestead properties in | ||||||
29 | that county, less (i) $4,500 in Cook County or $3,500 in all | ||||||
30 | other counties in tax year 2003 or (ii) $5,000 in all counties | ||||||
31 | in tax year 2004 and thereafter, is the base homestead value.
| ||||||
32 | For any tax year for which the assessor determines or | ||||||
33 | adjusts an initial
value and
hence a base homestead value under | ||||||
34 | this subsection (c), the initial value shall
be subject
to | ||||||
35 | review by the same procedures applicable to assessed values | ||||||
36 | established
under this
Code for that tax year.
|
| |||||||
| |||||||
1 | (d) The base homestead value shall remain constant, except | ||||||
2 | that the assessor
may
revise it under the following | ||||||
3 | circumstances:
| ||||||
4 | (1) If the equalized assessed value of a homestead | ||||||
5 | property for the current
tax year is less than the previous | ||||||
6 | base homestead value for that property, then the
current | ||||||
7 | equalized assessed value (provided it is not based on a | ||||||
8 | reduced assessed
value resulting from a temporary | ||||||
9 | irregularity in the property) shall become the
base | ||||||
10 | homestead value in subsequent tax years.
| ||||||
11 | (2) For any year in which new buildings, structures, or | ||||||
12 | other
improvements are constructed on the homestead | ||||||
13 | property that would increase its
assessed value, the | ||||||
14 | assessor shall adjust the base homestead value as provided | ||||||
15 | in
subsection (c) of this Section with due regard to the | ||||||
16 | value added by the new
improvements. | ||||||
17 | (3) If the property is sold or ownership is otherwise | ||||||
18 | transferred, the base homestead value of the property shall | ||||||
19 | be adjusted as provided in subdivision (b)(3)(B). This item | ||||||
20 | (3) does not apply to sales or transfers between spouses or | ||||||
21 | between a parent and a child.
| ||||||
22 | (e) The amount of the exemption under this Section is the | ||||||
23 | equalized assessed
value of the homestead property for the | ||||||
24 | current tax year, minus the adjusted homestead
value, with the | ||||||
25 | following exceptions: | ||||||
26 | (1) In Cook County, the
The exemption under this | ||||||
27 | Section shall not exceed $20,000 for any taxable year | ||||||
28 | through tax year: | ||||||
29 | (i) 2005, if the general assessment year for the | ||||||
30 | property is 2003; | ||||||
31 | (ii) 2006, if the general assessment year for the | ||||||
32 | property is 2004; or | ||||||
33 | (iii) 2007, if the general assessment year for the | ||||||
34 | property is 2005 . | ||||||
35 | Thereafter, in Cook County, the $20,000 limitation does not | ||||||
36 | apply. For all tax years in all other counties, the $20,000 |
| |||||||
| |||||||
1 | limitation does not apply.
| ||||||
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 or (ii) | ||||||
7 | $5,000 in all counties in tax year 2004 and thereafter.
| ||||||
8 | (f) In the case of an apartment building owned and operated | ||||||
9 | as a cooperative, or
as a life care facility, that contains | ||||||
10 | residential units that qualify as homestead property
under this | ||||||
11 | Section, the maximum cumulative exemption amount attributed to | ||||||
12 | the entire
building or facility shall not exceed the sum of the | ||||||
13 | exemptions calculated for each
qualified residential unit. The | ||||||
14 | cooperative association, management firm, or other person
or | ||||||
15 | entity that manages or controls the cooperative apartment | ||||||
16 | building or life care facility
shall credit the exemption | ||||||
17 | attributable to each residential unit only to the apportioned | ||||||
18 | tax
liability of the owner or other person responsible for | ||||||
19 | payment of taxes as to that unit.
Any person who willfully | ||||||
20 | refuses to so credit the exemption is guilty of a Class B
| ||||||
21 | misdemeanor.
| ||||||
22 | (g) When married persons maintain separate residences, the | ||||||
23 | exemption provided
under this Section shall be claimed by only | ||||||
24 | one such person and for only one residence.
| ||||||
25 | (h) In the event of a sale or other transfer in ownership | ||||||
26 | of the homestead property, the exemption under this
Section | ||||||
27 | shall remain in effect for the remainder of the tax year in | ||||||
28 | which the sale or transfer occurs, but (other than for sales or | ||||||
29 | transfers between spouses or between a parent and a child) | ||||||
30 | shall be calculated using the new base homestead value as | ||||||
31 | provided in subdivision (b)(3)(B).
The assessor may require the | ||||||
32 | new owner of the property to apply for the exemption in the
| ||||||
33 | following year.
| ||||||
34 | (i) The assessor may determine whether property qualifies | ||||||
35 | as a homestead under
this Section by application, visual | ||||||
36 | inspection, questionnaire, or other
reasonable methods.
Each |
| |||||||
| |||||||
1 | year, at the time the assessment books are certified to the | ||||||
2 | county clerk
by the board
of review, the assessor shall furnish | ||||||
3 | to the county clerk a list of the
properties qualified
for the | ||||||
4 | homestead exemption under this Section. The list shall note the | ||||||
5 | base
homestead
value of each property to be used in the | ||||||
6 | calculation of the exemption for the
current tax
year.
| ||||||
7 | (j) The
In counties with 3,000,000 or more inhabitants, the | ||||||
8 | provisions of this Section apply until such time that the | ||||||
9 | county adopts an ordinance under subsection (k) to subject | ||||||
10 | itself to the provisions of Section 15-175 in lieu of this | ||||||
11 | Section.
as follows:
| ||||||
12 | (1) If the general assessment year for the property is | ||||||
13 | 2003, this Section
applies for assessment years 2003, 2004, | ||||||
14 | and 2005.
Thereafter, the provisions of Section 15-175 | ||||||
15 | apply.
| ||||||
16 | (2) If the general assessment year for the property is | ||||||
17 | 2004, this Section
applies for assessment years 2004, 2005, | ||||||
18 | and 2006.
Thereafter, the provisions of Section 15-175 | ||||||
19 | apply.
| ||||||
20 | (3) If the general assessment year for the property is | ||||||
21 | 2005, this Section
applies for assessment years 2005, 2006, | ||||||
22 | and 2007.
Thereafter, the provisions of Section 15-175 | ||||||
23 | apply. | ||||||
24 | In counties with less than 3,000,000 inhabitants, this | ||||||
25 | Section applies for assessment years (i) 2003, 2004, and 2005 | ||||||
26 | if 2002 is the designated base year or (ii) 2004, 2005, and | ||||||
27 | 2006 if 2003 is the designated base year. Thereafter, the | ||||||
28 | provisions of Section 15-175 apply.
| ||||||
29 | (k) To be subject to the provisions of this Section in lieu | ||||||
30 | of Section 15-175, a county must adopt an ordinance to subject | ||||||
31 | itself to the provisions of this Section within 6 months after | ||||||
32 | the effective date of this amendatory Act of the 93rd General | ||||||
33 | Assembly . | ||||||
34 | In a county other than Cook County, the ordinance must | ||||||
35 | designate either tax year 2002 or tax year 2003 as the base | ||||||
36 | year if the ordinance was adopted on or before December 31, |
| |||||||
| |||||||
1 | 2005. If the ordinance was adopted on or after January 1, 2006, | ||||||
2 | the ordinance must designate, as the base year, the tax year | ||||||
3 | immediately preceding the tax year in which the ordinance was | ||||||
4 | adopted .
| ||||||
5 | A county that is subject to the provisions of this Section | ||||||
6 | may adopt an ordinance to subject itself to the provisions of | ||||||
7 | Section 15-175 in lieu of this Section. Any such ordinance may | ||||||
8 | not take effect until the tax year immediately following the | ||||||
9 | tax year in which the ordinance was adopted.
| ||||||
10 | (l) 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.
| ||||||
13 | (Source: P.A. 93-715, eff. 7-12-04.)
| ||||||
14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
|