95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0013

 

Introduced 1/31/2007, by Sen. Emil Jones, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-167 new
35 ILCS 200/15-170
35 ILCS 200/15-176
30 ILCS 805/8.31 new

    Amends the Property Tax Code. Creates the Returning Veterans' Homestead Exemption, under which an exemption from the property's value is granted for residential property that is owned and occupied as a residence by a veteran for the tax year in which the veteran returns from active duty in an armed conflict involving the armed forces of the United States. In a Section concerning the Senior Citizens Homestead Exemption, provides that in all counties (now, in counties with less than 3,000,000 inhabitants), the county board may by resolution provide that if a person has been granted the homestead exemption, the person qualifying need not reapply for the exemption. In a Section concerning the alternative general homestead exemption, extends the alternative exemption by an additional 3 years. Provides that the maximum amount of the exemption is $60,000 if the general assessment year for the property is 2006 or later. Provides that the base year for counties other than Cook County is the 2005 or 2006 tax year. Provides that, to subject itself to the provisions of the alternative general homestead exemption, a county must adopt an ordinance to that effect within 6 months after the effective date of this amendatory Act. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 and by adding Section 15-167 as
6 follows:
 
7     (35 ILCS 200/15-167 new)
8     Sec. 15-167. Returning Veterans' Homestead Exemption.
9     (a) A homestead exemption, limited to a reduction set forth
10 under subsection (b), from the property's value, as equalized
11 or assessed by the Department, is granted for property that is
12 owned and occupied as a residence by a veteran returning from
13 an armed conflict involving the armed forces of the United
14 States who is liable for paying real estate taxes on the
15 property and is an owner of record of the property or has a
16 legal or equitable interest therein as evidenced by a written
17 instrument, except for a leasehold interest, other than a
18 leasehold interest of land on which a single family residence
19 is located, which is occupied as a residence by a veteran
20 returning from an armed conflict involving the armed forces of
21 the United States who has an ownership interest therein, legal,
22 equitable or as a lessee, and on which he or she is liable for
23 the payment of property taxes. For purposes of the exemption

 

 

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1 under this Section, "veteran" means an Illinois resident who
2 has served as a member of the United States Armed Forces, a
3 member of the Illinois National Guard, or a member of the
4 United States Reserve Forces.
5     (b) In all counties, the reduction is $5,000 and only for
6 the tax year in which the veteran returns from active duty in
7 an armed conflict involving the armed forces of the United
8 States. For land improved with an apartment building owned and
9 operated as a cooperative, the maximum reduction from the value
10 of the property, as equalized by the Department, must be
11 multiplied by the number of apartments or units occupied by a
12 veteran returning from an armed conflict involving the armed
13 forces of the United States who is liable, by contract with the
14 owner or owners of record, for paying property taxes on the
15 property and is an owner of record of a legal or equitable
16 interest in the cooperative apartment building, other than a
17 leasehold interest. In a cooperative where a homestead
18 exemption has been granted, the cooperative association or the
19 management firm of the cooperative or facility shall credit the
20 savings resulting from that exemption only to the apportioned
21 tax liability of the owner or resident who qualified for the
22 exemption. Any person who willfully refuses to so credit the
23 savings is guilty of a Class B misdemeanor.
24     (c) Application must be made during the application period
25 in effect for the county of his or her residence. The assessor
26 or chief county assessment officer may determine the

 

 

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1 eligibility of residential property to receive the homestead
2 exemption provided by this Section by application, visual
3 inspection, questionnaire, or other reasonable methods. The
4 determination must be made in accordance with guidelines
5 established by the Department.
6     (d) The exemption under this Section is in addition to any
7 other homestead provided in Sections 15-170 through 15-176.
8 Notwithstanding Sections 6 and 8 of the State Mandates Act, no
9 reimbursement by the State is required for the implementation
10 of any mandate created by this Section.
 
11     (35 ILCS 200/15-170)
12     Sec. 15-170. Senior Citizens Homestead Exemption. An
13 annual homestead exemption limited, except as described here
14 with relation to cooperatives or life care facilities, to a
15 maximum reduction set forth below from the property's value, as
16 equalized or assessed by the Department, is granted for
17 property that is occupied as a residence by a person 65 years
18 of age or older who is liable for paying real estate taxes on
19 the property and is an owner of record of the property or has a
20 legal or equitable interest therein as evidenced by a written
21 instrument, except for a leasehold interest, other than a
22 leasehold interest of land on which a single family residence
23 is located, which is occupied as a residence by a person 65
24 years or older who has an ownership interest therein, legal,
25 equitable or as a lessee, and on which he or she is liable for

 

 

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1 the payment of property taxes. Before taxable year 2004, the
2 maximum reduction shall be $2,500 in counties with 3,000,000 or
3 more inhabitants and $2,000 in all other counties. For taxable
4 years 2004 through 2005, the maximum reduction shall be $3,000
5 in all counties. For taxable years 2006 and thereafter, the
6 maximum reduction shall be $3,500 in all counties.
7     For land improved with an apartment building owned and
8 operated as a cooperative, the maximum reduction from the value
9 of the property, as equalized by the Department, shall be
10 multiplied by the number of apartments or units occupied by a
11 person 65 years of age or older who is liable, by contract with
12 the owner or owners of record, for paying property taxes on the
13 property and is an owner of record of a legal or equitable
14 interest in the cooperative apartment building, other than a
15 leasehold interest. For land improved with a life care
16 facility, the maximum reduction from the value of the property,
17 as equalized by the Department, shall be multiplied by the
18 number of apartments or units occupied by persons 65 years of
19 age or older, irrespective of any legal, equitable, or
20 leasehold interest in the facility, who are liable, under a
21 contract with the owner or owners of record of the facility,
22 for paying property taxes on the property. In a cooperative or
23 a life care facility where a homestead exemption has been
24 granted, the cooperative association or the management firm of
25 the cooperative or facility shall credit the savings resulting
26 from that exemption only to the apportioned tax liability of

 

 

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1 the owner or resident who qualified for the exemption. Any
2 person who willfully refuses to so credit the savings shall be
3 guilty of a Class B misdemeanor. Under this Section and
4 Sections 15-175 and 15-176, "life care facility" means a
5 facility as defined in Section 2 of the Life Care Facilities
6 Act, with which the applicant for the homestead exemption has a
7 life care contract as defined in that Act.
8     When a homestead exemption has been granted under this
9 Section and the person qualifying subsequently becomes a
10 resident of a facility licensed under the Nursing Home Care
11 Act, the exemption shall continue so long as the residence
12 continues to be occupied by the qualifying person's spouse if
13 the spouse is 65 years of age or older, or if the residence
14 remains unoccupied but is still owned by the person qualified
15 for the homestead exemption.
16     A person who will be 65 years of age during the current
17 assessment year shall be eligible to apply for the homestead
18 exemption during that assessment year. Application shall be
19 made during the application period in effect for the county of
20 his residence.
21     Beginning with assessment year 2003, for taxes payable in
22 2004, property that is first occupied as a residence after
23 January 1 of any assessment year by a person who is eligible
24 for the senior citizens homestead exemption under this Section
25 must be granted a pro-rata exemption for the assessment year.
26 The amount of the pro-rata exemption is the exemption allowed

 

 

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1 in the county under this Section divided by 365 and multiplied
2 by the number of days during the assessment year the property
3 is occupied as a residence by a person eligible for the
4 exemption under this Section. The chief county assessment
5 officer must adopt reasonable procedures to establish
6 eligibility for this pro-rata exemption.
7     The assessor or chief county assessment officer may
8 determine the eligibility of a life care facility to receive
9 the benefits provided by this Section, by affidavit,
10 application, visual inspection, questionnaire or other
11 reasonable methods in order to insure that the tax savings
12 resulting from the exemption are credited by the management
13 firm to the apportioned tax liability of each qualifying
14 resident. The assessor may request reasonable proof that the
15 management firm has so credited the exemption.
16     The chief county assessment officer of each county with
17 less than 3,000,000 inhabitants shall provide to each person
18 allowed a homestead exemption under this Section a form to
19 designate any other person to receive a duplicate of any notice
20 of delinquency in the payment of taxes assessed and levied
21 under this Code on the property of the person receiving the
22 exemption. The duplicate notice shall be in addition to the
23 notice required to be provided to the person receiving the
24 exemption, and shall be given in the manner required by this
25 Code. The person filing the request for the duplicate notice
26 shall pay a fee of $5 to cover administrative costs to the

 

 

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1 supervisor of assessments, who shall then file the executed
2 designation with the county collector. Notwithstanding any
3 other provision of this Code to the contrary, the filing of
4 such an executed designation requires the county collector to
5 provide duplicate notices as indicated by the designation. A
6 designation may be rescinded by the person who executed such
7 designation at any time, in the manner and form required by the
8 chief county assessment officer.
9     The assessor or chief county assessment officer may
10 determine the eligibility of residential property to receive
11 the homestead exemption provided by this Section by
12 application, visual inspection, questionnaire or other
13 reasonable methods. The determination shall be made in
14 accordance with guidelines established by the Department.
15     In all counties with less than 3,000,000 inhabitants, the
16 county board may by resolution provide that if a person has
17 been granted a homestead exemption under this Section, the
18 person qualifying need not reapply for the exemption.
19     In counties with less than 3,000,000 inhabitants, if the
20 assessor or chief county assessment officer requires annual
21 application for verification of eligibility for an exemption
22 once granted under this Section, the application shall be
23 mailed to the taxpayer.
24     The assessor or chief county assessment officer shall
25 notify each person who qualifies for an exemption under this
26 Section that the person may also qualify for deferral of real

 

 

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1 estate taxes under the Senior Citizens Real Estate Tax Deferral
2 Act. The notice shall set forth the qualifications needed for
3 deferral of real estate taxes, the address and telephone number
4 of county collector, and a statement that applications for
5 deferral of real estate taxes may be obtained from the county
6 collector.
7     Notwithstanding Sections 6 and 8 of the State Mandates Act,
8 no reimbursement by the State is required for the
9 implementation of any mandate created by this Section.
10 (Source: P.A. 93-511, eff. 8-11-03; 93-715, eff. 7-12-04;
11 94-794, eff. 5-22-06.)
 
12     (35 ILCS 200/15-176)
13     Sec. 15-176. Alternative general homestead exemption.
14     (a) For the assessment years as determined under subsection
15 (j), in any county that has elected, by an ordinance in
16 accordance with subsection (k), to be subject to the provisions
17 of this Section in lieu of the provisions of Section 15-175,
18 homestead property is entitled to an annual homestead exemption
19 equal to a reduction in the property's equalized assessed value
20 calculated as provided in this Section.
21     (b) As used in this Section:
22         (1) "Assessor" means the supervisor of assessments or
23     the chief county assessment officer of each county.
24         (2) "Adjusted homestead value" means the lesser of the
25     following values:

 

 

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1             (A) The property's base homestead value increased
2         by 7% for each tax year after the base year through and
3         including the current tax year, or, if the property is
4         sold or ownership is otherwise transferred, the
5         property's base homestead value increased by 7% for
6         each tax year after the year of the sale or transfer
7         through and including the current tax year. The
8         increase by 7% each year is an increase by 7% over the
9         prior year.
10             (B) The property's equalized assessed value for
11         the current tax year minus (i) $4,500 in Cook County or
12         $3,500 in all other counties in tax year 2003 or (ii)
13         $5,000 in all counties in tax year 2004 and thereafter.
14         (3) "Base homestead value".
15             (A) Except as provided in subdivision (b)(3)(B),
16         "base homestead value" means the equalized assessed
17         value of the property for the base year prior to
18         exemptions, minus (i) $4,500 in Cook County or $3,500
19         in all other counties in tax year 2003 or (ii) $5,000
20         in all counties in tax year 2004 and thereafter,
21         provided that it was assessed for that year as
22         residential property qualified for any of the
23         homestead exemptions under Sections 15-170 through
24         15-175 of this Code, then in force, and further
25         provided that the property's assessment was not based
26         on a reduced assessed value resulting from a temporary

 

 

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1         irregularity in the property for that year. Except as
2         provided in subdivision (b)(3)(B), if the property did
3         not have a residential equalized assessed value for the
4         base year, then "base homestead value" means the base
5         homestead value established by the assessor under
6         subsection (c).
7             (B) If the property is sold or ownership is
8         otherwise transferred, other than sales or transfers
9         between spouses or between a parent and a child, "base
10         homestead value" means the equalized assessed value of
11         the property at the time of the sale or transfer prior
12         to exemptions, minus (i) $4,500 in Cook County or
13         $3,500 in all other counties in tax year 2003 or (ii)
14         $5,000 in all counties in tax year 2004 and thereafter,
15         provided that it was assessed as residential property
16         qualified for any of the homestead exemptions under
17         Sections 15-170 through 15-175 of this Code, then in
18         force, and further provided that the property's
19         assessment was not based on a reduced assessed value
20         resulting from a temporary irregularity in the
21         property.
22         (3.5) "Base year" means (i) tax year 2002 in Cook
23     County or (ii) tax year 2005 or 2006 2002 or 2003 in all
24     other counties in accordance with the designation made by
25     the county as provided in subsection (k).
26         (4) "Current tax year" means the tax year for which the

 

 

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1     exemption under this Section is being applied.
2         (5) "Equalized assessed value" means the property's
3     assessed value as equalized by the Department.
4         (6) "Homestead" or "homestead property" means:
5             (A) Residential property that as of January 1 of
6         the tax year is occupied by its owner or owners as his,
7         her, or their principal dwelling place, or that is a
8         leasehold interest on which a single family residence
9         is situated, that is occupied as a residence by a
10         person who has a legal or equitable interest therein
11         evidenced by a written instrument, as an owner or as a
12         lessee, and on which the person is liable for the
13         payment of property taxes. Residential units in an
14         apartment building owned and operated as a
15         cooperative, or as a life care facility, which are
16         occupied by persons who hold a legal or equitable
17         interest in the cooperative apartment building or life
18         care facility as owners or lessees, and who are liable
19         by contract for the payment of property taxes, shall be
20         included within this definition of homestead property.
21             (B) A homestead includes the dwelling place,
22         appurtenant structures, and so much of the surrounding
23         land constituting the parcel on which the dwelling
24         place is situated as is used for residential purposes.
25         If the assessor has established a specific legal
26         description for a portion of property constituting the

 

 

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1         homestead, then the homestead shall be limited to the
2         property within that description.
3         (7) "Life care facility" means a facility as defined in
4     Section 2 of the Life Care Facilities Act.
5     (c) If the property did not have a residential equalized
6 assessed value for the base year as provided in subdivision
7 (b)(3)(A) of this Section, then the assessor shall first
8 determine an initial value for the property by comparison with
9 assessed values for the base year of other properties having
10 physical and economic characteristics similar to those of the
11 subject property, so that the initial value is uniform in
12 relation to assessed values of those other properties for the
13 base year. The product of the initial value multiplied by the
14 equalized factor for the base year for homestead properties in
15 that county, less (i) $4,500 in Cook County or $3,500 in all
16 other counties in tax year 2003 or (ii) $5,000 in all counties
17 in tax year 2004 and thereafter, is the base homestead value.
18     For any tax year for which the assessor determines or
19 adjusts an initial value and hence a base homestead value under
20 this subsection (c), the initial value shall be subject to
21 review by the same procedures applicable to assessed values
22 established under this Code for that tax year.
23     (d) The base homestead value shall remain constant, except
24 that the assessor may revise it under the following
25 circumstances:
26         (1) If the equalized assessed value of a homestead

 

 

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1     property for the current tax year is less than the previous
2     base homestead value for that property, then the current
3     equalized assessed value (provided it is not based on a
4     reduced assessed value resulting from a temporary
5     irregularity in the property) shall become the base
6     homestead value in subsequent tax years.
7         (2) For any year in which new buildings, structures, or
8     other improvements are constructed on the homestead
9     property that would increase its assessed value, the
10     assessor shall adjust the base homestead value as provided
11     in subsection (c) of this Section with due regard to the
12     value added by the new improvements.
13         (3) If the property is sold or ownership is otherwise
14     transferred, the base homestead value of the property shall
15     be adjusted as provided in subdivision (b)(3)(B). This item
16     (3) does not apply to sales or transfers between spouses or
17     between a parent and a child.
18     (e) The amount of the exemption under this Section is the
19 equalized assessed value of the homestead property for the
20 current tax year, minus the adjusted homestead value, with the
21 following exceptions:
22         (1) In Cook County, the The exemption under this
23     Section shall not exceed $20,000 for any taxable year
24     through tax year:
25             (i) 2005, if the general assessment year for the
26         property is 2003;

 

 

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1             (ii) 2006, if the general assessment year for the
2         property is 2004; or
3             (iii) 2007, if the general assessment year for the
4         property is 2005.
5     Thereafter, in Cook County, the exemption under this
6     Section shall not exceed $60,000 for any taxable year.
7         (1.5) For all tax years in all other counties other
8     than Cook County, the exemption under this Section shall
9     not exceed $60,000 for any taxable year.
10         (2) In the case of homestead property that also
11     qualifies for the exemption under Section 15-172, the
12     property is entitled to the exemption under this Section,
13     limited to the amount of (i) $4,500 in Cook County or
14     $3,500 in all other counties in tax year 2003 or (ii)
15     $5,000 in all counties in tax year 2004 and thereafter.
16     (f) In the case of an apartment building owned and operated
17 as a cooperative, or as a life care facility, that contains
18 residential units that qualify as homestead property under this
19 Section, the maximum cumulative exemption amount attributed to
20 the entire building or facility shall not exceed the sum of the
21 exemptions calculated for each qualified residential unit. The
22 cooperative association, management firm, or other person or
23 entity that manages or controls the cooperative apartment
24 building or life care facility shall credit the exemption
25 attributable to each residential unit only to the apportioned
26 tax liability of the owner or other person responsible for

 

 

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1 payment of taxes as to that unit. Any person who willfully
2 refuses to so credit the exemption is guilty of a Class B
3 misdemeanor.
4     (g) When married persons maintain separate residences, the
5 exemption provided under this Section shall be claimed by only
6 one such person and for only one residence.
7     (h) In the event of a sale or other transfer in ownership
8 of the homestead property, the exemption under this Section
9 shall remain in effect for the remainder of the tax year in
10 which the sale or transfer occurs, but (other than for sales or
11 transfers between spouses or between a parent and a child)
12 shall be calculated using the new base homestead value as
13 provided in subdivision (b)(3)(B). The assessor may require the
14 new owner of the property to apply for the exemption in the
15 following year.
16     (i) The assessor may determine whether property qualifies
17 as a homestead under this Section by application, visual
18 inspection, questionnaire, or other reasonable methods. Each
19 year, at the time the assessment books are certified to the
20 county clerk by the board of review, the assessor shall furnish
21 to the county clerk a list of the properties qualified for the
22 homestead exemption under this Section. The list shall note the
23 base homestead value of each property to be used in the
24 calculation of the exemption for the current tax year.
25     (j) In counties with 3,000,000 or more inhabitants, the
26 provisions of this Section apply as follows:

 

 

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1         (1) If the general assessment year for the property is
2     2003, this Section applies for assessment years 2003, 2004,
3     and 2005, 2006, 2007, and 2008. Thereafter, the provisions
4     of Section 15-175 apply.
5         (2) If the general assessment year for the property is
6     2004, this Section applies for assessment years 2004, 2005,
7     and 2006, 2007, 2008, and 2009. Thereafter, the provisions
8     of Section 15-175 apply.
9         (3) If the general assessment year for the property is
10     2005, this Section applies for assessment years 2005, 2006,
11     and 2007, 2008, 2009, and 2010. Thereafter, the provisions
12     of Section 15-175 apply.
13     In counties with less than 3,000,000 inhabitants, this
14 Section applies for assessment years (i) 2006, 2007, and 2008
15 if tax year 2005 2003, 2004, and 2005 if 2002 is the designated
16 base year or (ii) 2007, 2008, and 2009 if tax year 2006 2004,
17 2005, and 2006 if 2003 is the designated base year. Thereafter,
18 the provisions of Section 15-175 apply.
19     (k) To be subject to the provisions of this Section in lieu
20 of Section 15-175, a county must adopt an ordinance to subject
21 itself to the provisions of this Section within 6 months after
22 the effective date of this amendatory Act of the 95th General
23 Assembly 93rd General Assembly. In a county other than Cook
24 County, the ordinance must designate either tax year 2005 2002
25 or tax year 2006 2003 as the base year.
26     (l) Notwithstanding Sections 6 and 8 of the State Mandates

 

 

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1 Act, no reimbursement by the State is required for the
2 implementation of any mandate created by this Section.
3 (Source: P.A. 93-715, eff. 7-12-04.)
 
4     Section 90. The State Mandates Act is amended by adding
5 Section 8.31 as follows:
 
6     (30 ILCS 805/8.31 new)
7     Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8
8 of this Act, no reimbursement by the State is required for the
9 implementation of any mandate created by this amendatory Act of
10 the 95th General Assembly.
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.