103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2845

 

Introduced 1/19/2024, by Sen. Natalie Toro

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-177

    Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately.


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A BILL FOR

 

SB2845LRB103 36734 HLH 66844 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 15-177 as follows:
 
6    (35 ILCS 200/15-177)
7    Sec. 15-177. The long-time occupant homestead exemption.
8    (a) If the county has elected, under Section 15-176, to be
9subject to the provisions of the alternative general homestead
10exemption, then, for taxable years 2007 and thereafter,
11regardless of whether the exemption under Section 15-176
12applies, qualified homestead property is entitled to an annual
13homestead exemption equal to a reduction in the property's
14equalized assessed value calculated as provided in this
15Section.
16    (b) As used in this Section:
17    "Adjusted homestead value" means, for taxable years before
18taxable year 2024, the lesser of the following values:
19        (1) The property's base homestead value increased by:
20    (i) 10% for each taxable year after the base year through
21    and including the current tax year for qualified taxpayers
22    with a household income of more than $75,000 but not
23    exceeding $100,000; or (ii) 7% for each taxable year after

 

 

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1    the base year through and including the current tax year
2    for qualified taxpayers with a household income of $75,000
3    or less. The increase each year is an increase over the
4    prior year; or
5        (2) The property's equalized assessed value for the
6    current tax year minus the general homestead deduction.
7    "Adjusted homestead value" means, beginning in taxable
8year 2024, the lesser of the following values:
9        (1) the property's base homestead value increased by:
10    (i) 5% for each taxable year after the base year through
11    and including the current tax year for qualified taxpayers
12    with a household income of more than $75,000 but not
13    exceeding $100,000; or (ii) 3% for each taxable year after
14    the base year through and including the current tax year
15    for qualified taxpayers with a household income of $75,000
16    or less; the increase each year is an increase over the
17    prior year; or
18        (2) the property's equalized assessed value for the
19    current tax year minus the general homestead deduction.
20    "Base homestead value" means:
21        (1) if the property did not have an adjusted homestead
22    value under Section 15-176 for the base year, then an
23    amount equal to the equalized assessed value of the
24    property for the base year prior to exemptions, minus the
25    general homestead deduction, provided that the property's
26    assessment was not based on a reduced assessed value

 

 

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1    resulting from a temporary irregularity in the property
2    for that year; or
3        (2) if the property had an adjusted homestead value
4    under Section 15-176 for the base year, then an amount
5    equal to the adjusted homestead value of the property
6    under Section 15-176 for the base year.
7    "Base year" means the taxable year prior to the taxable
8year in which the taxpayer first qualifies for the exemption
9under this Section.
10    "Current taxable year" means the taxable year for which
11the exemption under this Section is being applied.
12    "Equalized assessed value" means the property's assessed
13value as equalized by the Department.
14    "Homestead" or "homestead property" means residential
15property that as of January 1 of the tax year is occupied by a
16qualified taxpayer as his or her principal dwelling place, or
17that is a leasehold interest on which a single family
18residence is situated, that is occupied as a residence by a
19qualified taxpayer who has a legal or equitable interest
20therein evidenced by a written instrument, as an owner or as a
21lessee, and on which the person is liable for the payment of
22property taxes. Residential units in an apartment building
23owned and operated as a cooperative, or as a life care
24facility, which are occupied by persons who hold a legal or
25equitable interest in the cooperative apartment building or
26life care facility as owners or lessees, and who are liable by

 

 

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1contract for the payment of property taxes, are included
2within this definition of homestead property. A homestead
3includes the dwelling place, appurtenant structures, and so
4much of the surrounding land constituting the parcel on which
5the dwelling place is situated as is used for residential
6purposes. If the assessor has established a specific legal
7description for a portion of property constituting the
8homestead, then the homestead is limited to the property
9within that description.
10    "Household income" has the meaning set forth under Section
1115-172 of this Code.
12    "General homestead deduction" means the amount of the
13general homestead exemption under Section 15-175.
14    "Life care facility" means a facility defined in Section 2
15of the Life Care Facilities Act.
16    "Qualified homestead property" means homestead property
17owned by a qualified taxpayer.
18    "Qualified taxpayer" means any individual:
19        (1) who, for at least 10 continuous years as of
20    January 1 of the taxable year, has occupied the same
21    homestead property as a principal residence and domicile
22    or who, for at least 5 continuous years as of January 1 of
23    the taxable year, has occupied the same homestead property
24    as a principal residence and domicile if that person
25    received assistance in the acquisition of the property as
26    part of a government or nonprofit housing program; and

 

 

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1        (2) who has a household income of $100,000 or less.
2    (c) The base homestead value must remain constant, except
3that the assessor may revise it under any of the following
4circumstances:
5        (1) If the equalized assessed value of a homestead
6    property for the current tax year is less than the
7    previous base homestead value for that property, then the
8    current equalized assessed value (provided it is not based
9    on a reduced assessed value resulting from a temporary
10    irregularity in the property) becomes the base homestead
11    value in subsequent tax years.
12        (2) For any year in which new buildings, structures,
13    or other improvements are constructed on the homestead
14    property that would increase its assessed value, the
15    assessor shall adjust the base homestead value with due
16    regard to the value added by the new improvements.
17    (d) The amount of the exemption under this Section is the
18greater of: (i) the equalized assessed value of the homestead
19property for the current tax year minus the adjusted homestead
20value; or (ii) the general homestead deduction.
21    (e) In the case of an apartment building owned and
22operated as a cooperative, or as a life care facility, that
23contains residential units that qualify as homestead property
24of a qualified taxpayer under this Section, the maximum
25cumulative exemption amount attributed to the entire building
26or facility shall not exceed the sum of the exemptions

 

 

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1calculated for each unit that is a qualified homestead
2property. The cooperative association, management firm, or
3other person or entity that manages or controls the
4cooperative apartment building or life care facility shall
5credit the exemption attributable to each residential unit
6only to the apportioned tax liability of the qualified
7taxpayer as to that unit. Any person who willfully refuses to
8so credit the exemption is guilty of a Class B misdemeanor.
9    (f) When married persons maintain separate residences, the
10exemption provided under this Section may be claimed by only
11one such person and for only one residence. No person who
12receives an exemption under Section 15-172 of this Code may
13receive an exemption under this Section. No person who
14receives an exemption under this Section may receive an
15exemption under Section 15-175 or 15-176 of this Code.
16    (g) In the event of a sale or other transfer in ownership
17of the homestead property between spouses or between a parent
18and a child, the exemption under this Section remains in
19effect if the new owner has a household income of $100,000 or
20less.
21    (h) In the event of a sale or other transfer in ownership
22of the homestead property other than subsection (g) of this
23Section, the exemption under this Section shall remain in
24effect for the remainder of the tax year and be calculated
25using the same base homestead value in which the sale or
26transfer occurs.

 

 

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1    (i) To receive the exemption, a person must submit an
2application to the county assessor during the period specified
3by the county assessor.
4    The county assessor shall annually give notice of the
5application period by mail or by publication.
6    The taxpayer must submit, with the application, an
7affidavit of the taxpayer's total household income, marital
8status (and if married the name and address of the applicant's
9spouse, if known), and principal dwelling place of members of
10the household on January 1 of the taxable year. The Department
11shall establish, by rule, a method for verifying the accuracy
12of affidavits filed by applicants under this Section, and the
13Chief County Assessment Officer may conduct audits of any
14taxpayer claiming an exemption under this Section to verify
15that the taxpayer is eligible to receive the exemption. Each
16application shall contain or be verified by a written
17declaration that it is made under the penalties of perjury. A
18taxpayer's signing a fraudulent application under this Act is
19perjury, as defined in Section 32-2 of the Criminal Code of
202012. The applications shall be clearly marked as applications
21for the Long-time Occupant Homestead Exemption and must
22contain a notice that any taxpayer who receives the exemption
23is subject to an audit by the Chief County Assessment Officer.
24    (j) Notwithstanding Sections 6 and 8 of the State Mandates
25Act, no reimbursement by the State is required for the
26implementation of any mandate created by this Section.

 

 

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1(Source: P.A. 97-1150, eff. 1-25-13.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.