102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3954

 

Introduced 2/22/2021, by Rep. Dagmara Avelar

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. Provides that, if property qualifies for the senior citizens homestead exemption, but the property owner fails to apply for the exemption during the application period, then the property owner may apply to any or all of the taxing districts in which the property is located to receive a refund of that taxing district's share of the excess property taxes extended against the property as a result of the failure to apply the exemption. 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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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 15-170 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior citizens homestead exemption.
8    (a) An annual homestead exemption limited, except as
9described here with relation to cooperatives or life care
10facilities, to a maximum reduction set forth below from the
11property's value, as equalized or assessed by the Department,
12is granted for property that is occupied as a residence by a
13person 65 years of age or older who is liable for paying real
14estate taxes on the property and is an owner of record of the
15property or has a legal or equitable interest therein as
16evidenced by a written instrument, except for a leasehold
17interest, other than a leasehold interest of land on which a
18single family residence is located, which is occupied as a
19residence by a person 65 years or older who has an ownership
20interest therein, legal, equitable or as a lessee, and on
21which he or she is liable for the payment of property taxes.
22Before taxable year 2004, the maximum reduction shall be
23$2,500 in counties with 3,000,000 or more inhabitants and

 

 

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1$2,000 in all other counties. For taxable years 2004 through
22005, the maximum reduction shall be $3,000 in all counties.
3For taxable years 2006 and 2007, the maximum reduction shall
4be $3,500. For taxable years 2008 through 2011, the maximum
5reduction is $4,000 in all counties. For taxable year 2012,
6the maximum reduction is $5,000 in counties with 3,000,000 or
7more inhabitants and $4,000 in all other counties. For taxable
8years 2013 through 2016, the maximum reduction is $5,000 in
9all counties. For taxable years 2017 and thereafter, the
10maximum reduction is $8,000 in counties with 3,000,000 or more
11inhabitants and $5,000 in all other counties.
12    (b) For land improved with an apartment building owned and
13operated as a cooperative, the maximum reduction from the
14value of the property, as equalized by the Department, shall
15be multiplied by the number of apartments or units occupied by
16a person 65 years of age or older who is liable, by contract
17with the owner or owners of record, for paying property taxes
18on the property and is an owner of record of a legal or
19equitable interest in the cooperative apartment building,
20other than a leasehold interest. For land improved with a life
21care facility, the maximum reduction from the value of the
22property, as equalized by the Department, shall be multiplied
23by the number of apartments or units occupied by persons 65
24years of age or older, irrespective of any legal, equitable,
25or leasehold interest in the facility, who are liable, under a
26contract with the owner or owners of record of the facility,

 

 

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1for paying property taxes on the property. In a cooperative or
2a life care facility where a homestead exemption has been
3granted, the cooperative association or the management firm of
4the cooperative or facility shall credit the savings resulting
5from that exemption only to the apportioned tax liability of
6the owner or resident who qualified for the exemption. Any
7person who willfully refuses to so credit the savings shall be
8guilty of a Class B misdemeanor. Under this Section and
9Sections 15-175, 15-176, and 15-177, "life care facility"
10means a facility, as defined in Section 2 of the Life Care
11Facilities Act, with which the applicant for the homestead
12exemption has a life care contract as defined in that Act.
13    (c) When a homestead exemption has been granted under this
14Section and the person qualifying subsequently becomes a
15resident of a facility licensed under the Assisted Living and
16Shared Housing Act, the Nursing Home Care Act, the Specialized
17Mental Health Rehabilitation Act of 2013, the ID/DD Community
18Care Act, or the MC/DD Act, the exemption shall continue so
19long as the residence continues to be occupied by the
20qualifying person's spouse if the spouse is 65 years of age or
21older, or if the residence remains unoccupied but is still
22owned by the person qualified for the homestead exemption.
23    (d) A person who will be 65 years of age during the current
24assessment year shall be eligible to apply for the homestead
25exemption during that assessment year. Application shall be
26made during the application period in effect for the county of

 

 

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1his residence.
2    (e) Beginning with assessment year 2003, for taxes payable
3in 2004, property that is first occupied as a residence after
4January 1 of any assessment year by a person who is eligible
5for the senior citizens homestead exemption under this Section
6must be granted a pro-rata exemption for the assessment year.
7The amount of the pro-rata exemption is the exemption allowed
8in the county under this Section divided by 365 and multiplied
9by the number of days during the assessment year the property
10is occupied as a residence by a person eligible for the
11exemption under this Section. The chief county assessment
12officer must adopt reasonable procedures to establish
13eligibility for this pro-rata exemption.
14    (f) The assessor or chief county assessment officer may
15determine the eligibility of a life care facility to receive
16the benefits provided by this Section, by affidavit,
17application, visual inspection, questionnaire or other
18reasonable methods in order to insure that the tax savings
19resulting from the exemption are credited by the management
20firm to the apportioned tax liability of each qualifying
21resident. The assessor may request reasonable proof that the
22management firm has so credited the exemption.
23    (g) The chief county assessment officer of each county
24with less than 3,000,000 inhabitants shall provide to each
25person allowed a homestead exemption under this Section a form
26to designate any other person to receive a duplicate of any

 

 

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1notice of delinquency in the payment of taxes assessed and
2levied under this Code on the property of the person receiving
3the exemption. The duplicate notice shall be in addition to
4the notice required to be provided to the person receiving the
5exemption, and shall be given in the manner required by this
6Code. The person filing the request for the duplicate notice
7shall pay a fee of $5 to cover administrative costs to the
8supervisor of assessments, who shall then file the executed
9designation with the county collector. Notwithstanding any
10other provision of this Code to the contrary, the filing of
11such an executed designation requires the county collector to
12provide duplicate notices as indicated by the designation. A
13designation may be rescinded by the person who executed such
14designation at any time, in the manner and form required by the
15chief county assessment officer.
16    (h) The assessor or chief county assessment officer may
17determine the eligibility of residential property to receive
18the homestead exemption provided by this Section by
19application, visual inspection, questionnaire or other
20reasonable methods. The determination shall be made in
21accordance with guidelines established by the Department.
22    (i) In counties with 3,000,000 or more inhabitants, for
23taxable years 2010 through 2018, and beginning again in
24taxable year 2024, each taxpayer who has been granted an
25exemption under this Section must reapply on an annual basis.
26    If a reapplication is required, then the chief county

 

 

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1assessment officer shall mail the application to the taxpayer
2at least 60 days prior to the last day of the application
3period for the county.
4    For taxable years 2019 through 2023, in counties with
53,000,000 or more inhabitants, a taxpayer who has been granted
6an exemption under this Section need not reapply. However, if
7the property ceases to be qualified for the exemption under
8this Section in any year for which a reapplication is not
9required under this Section, then the owner of record of the
10property shall notify the chief county assessment officer that
11the property is no longer qualified. In addition, for taxable
12years 2019 through 2023, the chief county assessment officer
13of a county with 3,000,000 or more inhabitants shall enter
14into an intergovernmental agreement with the county clerk of
15that county and the Department of Public Health, as well as any
16other appropriate governmental agency, to obtain information
17that documents the death of a taxpayer who has been granted an
18exemption under this Section. Notwithstanding any other
19provision of law, the county clerk and the Department of
20Public Health shall provide that information to the chief
21county assessment officer. The Department of Public Health
22shall supply this information no less frequently than every
23calendar quarter. Information concerning the death of a
24taxpayer may be shared with the county treasurer. The chief
25county assessment officer shall also enter into a data
26exchange agreement with the Social Security Administration or

 

 

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1its agent to obtain access to the information regarding deaths
2in possession of the Social Security Administration. The chief
3county assessment officer shall, subject to the notice
4requirements under subsection (m) of Section 9-275, terminate
5the exemption under this Section if the information obtained
6indicates that the property is no longer qualified for the
7exemption. In counties with 3,000,000 or more inhabitants, the
8assessor and the county recorder of deeds shall establish
9policies and practices for the regular exchange of information
10for the purpose of alerting the assessor whenever the transfer
11of ownership of any property receiving an exemption under this
12Section has occurred. When such a transfer occurs, the
13assessor shall mail a notice to the new owner of the property
14(i) informing the new owner that the exemption will remain in
15place through the year of the transfer, after which it will be
16canceled, and (ii) providing information pertaining to the
17rules for reapplying for the exemption if the owner qualifies.
18In counties with 3,000,000 or more inhabitants, the chief
19county assessment official shall conduct audits of all
20exemptions granted under this Section no later than December
2131, 2022 and no later than December 31, 2024. The audit shall
22be designed to ascertain whether any senior homestead
23exemptions have been granted erroneously. If it is determined
24that a senior homestead exemption has been erroneously applied
25to a property, the chief county assessment officer shall make
26use of the appropriate provisions of Section 9-275 in relation

 

 

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1to the property that received the erroneous homestead
2exemption.
3    (j) In counties with less than 3,000,000 inhabitants, the
4county board may by resolution provide that if a person has
5been granted a homestead exemption under this Section, the
6person qualifying need not reapply for the exemption.
7    In counties with less than 3,000,000 inhabitants, if the
8assessor or chief county assessment officer requires annual
9application for verification of eligibility for an exemption
10once granted under this Section, the application shall be
11mailed to the taxpayer.
12    (l) The assessor or chief county assessment officer shall
13notify each person who qualifies for an exemption under this
14Section that the person may also qualify for deferral of real
15estate taxes under the Senior Citizens Real Estate Tax
16Deferral Act. The notice shall set forth the qualifications
17needed for deferral of real estate taxes, the address and
18telephone number of county collector, and a statement that
19applications for deferral of real estate taxes may be obtained
20from the county collector.
21    (l-5) For the 2021 taxable year or any subsequent taxable
22year, if property qualifies for the exemption under this
23Section, but the property owner fails to apply for the
24exemption during the application period, then the property
25owner may apply to any or all of the taxing districts in which
26the property is located to receive a refund of that taxing

 

 

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1district's share of the excess property taxes extended against
2the property as a result of the failure to apply the exemption
3under this Section. Such an application shall be made within 5
4years after the taxable year in which the exemption should
5have been applied to the property.
6    (m) Notwithstanding Sections 6 and 8 of the State Mandates
7Act, no reimbursement by the State is required for the
8implementation of any mandate created by this Section.
9(Source: P.A. 100-401, eff. 8-25-17; 101-453, eff. 8-23-19;
10101-622, eff. 1-14-20.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.