96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4914

 

Introduced 1/15/2010, by Rep. Kay Hatcher

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. Increases the maximum reduction under the Senior Citizens Homestead Exemption from $4,000 to $7,000 for taxable year 2010 and indexes the reduction to the Consumer Price Index. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4914 LRB096 15663 HLH 30899 b

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 Section 15-170 as follows:
 
6     (35 ILCS 200/15-170)
7     (Text of Section before amendment by P.A. 96-339)
8     Sec. 15-170. Senior Citizens Homestead Exemption. An
9 annual homestead exemption limited, except as described here
10 with relation to cooperatives or life care facilities, to a
11 maximum reduction set forth below from the property's value, as
12 equalized or assessed by the Department, is granted for
13 property that is occupied as a residence by a person 65 years
14 of age or older who is liable for paying real estate taxes on
15 the 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 person 65
20 years or older who has an ownership interest therein, legal,
21 equitable or as a lessee, and on which he or she is liable for
22 the payment of property taxes. Before taxable year 2004, the
23 maximum reduction shall be $2,500 in counties with 3,000,000 or

 

 

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1 more inhabitants and $2,000 in all other counties. For taxable
2 years 2004 through 2005, the maximum reduction shall be $3,000
3 in all counties. For taxable years 2006 and 2007, the maximum
4 reduction shall be $3,500 in all counties. For and, for taxable
5 years 2008 and 2009 thereafter, the maximum reduction is $4,000
6 in all counties. For taxable year 2010, the maximum reduction
7 is $7,000 in all counties. For taxable years 2011 and
8 thereafter, the maximum reduction is the maximum reduction for
9 the prior taxable year increased by the annual rate of
10 increase, for the previous calendar year, of the Consumer Price
11 Index for All Urban Consumers for all items, published by the
12 United States Bureau of Labor Statistics.
13     For land improved with an apartment building owned and
14 operated as a cooperative, the maximum reduction from the value
15 of the property, as equalized by the Department, shall be
16 multiplied by the number of apartments or units occupied by a
17 person 65 years of age or older who is liable, by contract with
18 the owner or owners of record, for paying property taxes on the
19 property and is an owner of record of a legal or equitable
20 interest in the cooperative apartment building, other than a
21 leasehold interest. For land improved with a life care
22 facility, the maximum reduction from the value of the property,
23 as equalized by the Department, shall be multiplied by the
24 number of apartments or units occupied by persons 65 years of
25 age or older, irrespective of any legal, equitable, or
26 leasehold interest in the facility, who are liable, under a

 

 

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

 

 

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

 

 

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1 of delinquency in the payment of taxes assessed and levied
2 under this Code on the property of the person receiving the
3 exemption. The duplicate notice shall be in addition to the
4 notice required to be provided to the person receiving the
5 exemption, and shall be given in the manner required by this
6 Code. The person filing the request for the duplicate notice
7 shall pay a fee of $5 to cover administrative costs to the
8 supervisor of assessments, who shall then file the executed
9 designation with the county collector. Notwithstanding any
10 other provision of this Code to the contrary, the filing of
11 such an executed designation requires the county collector to
12 provide duplicate notices as indicated by the designation. A
13 designation may be rescinded by the person who executed such
14 designation at any time, in the manner and form required by the
15 chief county assessment officer.
16     The assessor or chief county assessment officer may
17 determine the eligibility of residential property to receive
18 the homestead exemption provided by this Section by
19 application, visual inspection, questionnaire or other
20 reasonable methods. The determination shall be made in
21 accordance with guidelines established by the Department.
22     In counties with less than 3,000,000 inhabitants, the
23 county board may by resolution provide that if a person has
24 been granted a homestead exemption under this Section, the
25 person qualifying need not reapply for the exemption.
26     In counties with less than 3,000,000 inhabitants, if the

 

 

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1 assessor or chief county assessment officer requires annual
2 application for verification of eligibility for an exemption
3 once granted under this Section, the application shall be
4 mailed to the taxpayer.
5     The assessor or chief county assessment officer shall
6 notify each person who qualifies for an exemption under this
7 Section that the person may also qualify for deferral of real
8 estate taxes under the Senior Citizens Real Estate Tax Deferral
9 Act. The notice shall set forth the qualifications needed for
10 deferral of real estate taxes, the address and telephone number
11 of county collector, and a statement that applications for
12 deferral of real estate taxes may be obtained from the county
13 collector.
14     Notwithstanding Sections 6 and 8 of the State Mandates Act,
15 no reimbursement by the State is required for the
16 implementation of any mandate created by this Section.
17 (Source: P.A. 95-644, eff. 10-12-07; 95-876, eff. 8-21-08;
18 96-355, eff. 1-1-10.)
 
19     (Text of Section after amendment by P.A. 96-339)
20     Sec. 15-170. Senior Citizens Homestead Exemption. An
21 annual homestead exemption limited, except as described here
22 with relation to cooperatives or life care facilities, to a
23 maximum reduction set forth below from the property's value, as
24 equalized or assessed by the Department, is granted for
25 property that is occupied as a residence by a person 65 years

 

 

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1 of age or older who is liable for paying real estate taxes on
2 the property and is an owner of record of the property or has a
3 legal or equitable interest therein as evidenced by a written
4 instrument, except for a leasehold interest, other than a
5 leasehold interest of land on which a single family residence
6 is located, which is occupied as a residence by a person 65
7 years or older who has an ownership interest therein, legal,
8 equitable or as a lessee, and on which he or she is liable for
9 the payment of property taxes. Before taxable year 2004, the
10 maximum reduction shall be $2,500 in counties with 3,000,000 or
11 more inhabitants and $2,000 in all other counties. For taxable
12 years 2004 through 2005, the maximum reduction shall be $3,000
13 in all counties. For taxable years 2006 and 2007, the maximum
14 reduction shall be $3,500 in all counties. For and, for taxable
15 years 2008 and 2009 thereafter, the maximum reduction is $4,000
16 in all counties. For taxable year 2010, the maximum reduction
17 is $7,000 in all counties. For taxable years 2011 and
18 thereafter, the maximum reduction is the maximum reduction for
19 the prior taxable year increased by the annual rate of
20 increase, for the previous calendar year, of the Consumer Price
21 Index for All Urban Consumers for all items, published by the
22 United States Bureau of Labor Statistics.
23     For land improved with an apartment building owned and
24 operated as a cooperative, the maximum reduction from the value
25 of the property, as equalized by the Department, shall be
26 multiplied by the number of apartments or units occupied by a

 

 

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1 person 65 years of age or older who is liable, by contract with
2 the owner or owners of record, for paying property taxes on the
3 property and is an owner of record of a legal or equitable
4 interest in the cooperative apartment building, other than a
5 leasehold interest. For land improved with a life care
6 facility, the maximum reduction from the value of the property,
7 as equalized by the Department, shall be multiplied by the
8 number of apartments or units occupied by persons 65 years of
9 age or older, irrespective of any legal, equitable, or
10 leasehold interest in the facility, who are liable, under a
11 contract with the owner or owners of record of the facility,
12 for paying property taxes on the property. In a cooperative or
13 a life care facility where a homestead exemption has been
14 granted, the cooperative association or the management firm of
15 the cooperative or facility shall credit the savings resulting
16 from that exemption only to the apportioned tax liability of
17 the owner or resident who qualified for the exemption. Any
18 person who willfully refuses to so credit the savings shall be
19 guilty of a Class B misdemeanor. Under this Section and
20 Sections 15-175, 15-176, and 15-177, "life care facility" means
21 a facility, as defined in Section 2 of the Life Care Facilities
22 Act, with which the applicant for the homestead exemption has a
23 life care contract as defined in that Act.
24     When a homestead exemption has been granted under this
25 Section and the person qualifying subsequently becomes a
26 resident of a facility licensed under the Assisted Living and

 

 

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1 Shared Housing Act, or the Nursing Home Care Act, or the MR/DD
2 Community Care Act, the exemption shall continue so long as the
3 residence continues to be occupied by the qualifying person's
4 spouse if the spouse is 65 years of age or older, or if the
5 residence remains unoccupied but is still owned by the person
6 qualified for the homestead exemption.
7     A person who will be 65 years of age during the current
8 assessment year shall be eligible to apply for the homestead
9 exemption during that assessment year. Application shall be
10 made during the application period in effect for the county of
11 his residence.
12     Beginning with assessment year 2003, for taxes payable in
13 2004, property that is first occupied as a residence after
14 January 1 of any assessment year by a person who is eligible
15 for the senior citizens homestead exemption under this Section
16 must be granted a pro-rata exemption for the assessment year.
17 The amount of the pro-rata exemption is the exemption allowed
18 in the county under this Section divided by 365 and multiplied
19 by the number of days during the assessment year the property
20 is occupied as a residence by a person eligible for the
21 exemption under this Section. The chief county assessment
22 officer must adopt reasonable procedures to establish
23 eligibility for this pro-rata exemption.
24     The assessor or chief county assessment officer may
25 determine the eligibility of a life care facility to receive
26 the benefits provided by this Section, by affidavit,

 

 

HB4914 - 10 - LRB096 15663 HLH 30899 b

1 application, visual inspection, questionnaire or other
2 reasonable methods in order to insure that the tax savings
3 resulting from the exemption are credited by the management
4 firm to the apportioned tax liability of each qualifying
5 resident. The assessor may request reasonable proof that the
6 management firm has so credited the exemption.
7     The chief county assessment officer of each county with
8 less than 3,000,000 inhabitants shall provide to each person
9 allowed a homestead exemption under this Section a form to
10 designate any other person to receive a duplicate of any notice
11 of delinquency in the payment of taxes assessed and levied
12 under this Code on the property of the person receiving the
13 exemption. The duplicate notice shall be in addition to the
14 notice required to be provided to the person receiving the
15 exemption, and shall be given in the manner required by this
16 Code. The person filing the request for the duplicate notice
17 shall pay a fee of $5 to cover administrative costs to the
18 supervisor of assessments, who shall then file the executed
19 designation with the county collector. Notwithstanding any
20 other provision of this Code to the contrary, the filing of
21 such an executed designation requires the county collector to
22 provide duplicate notices as indicated by the designation. A
23 designation may be rescinded by the person who executed such
24 designation at any time, in the manner and form required by the
25 chief county assessment officer.
26     The assessor or chief county assessment officer may

 

 

HB4914 - 11 - LRB096 15663 HLH 30899 b

1 determine the eligibility of residential property to receive
2 the homestead exemption provided by this Section by
3 application, visual inspection, questionnaire or other
4 reasonable methods. The determination shall be made in
5 accordance with guidelines established by the Department.
6     In counties with less than 3,000,000 inhabitants, the
7 county board may by resolution provide that if a person has
8 been granted a homestead exemption under this Section, the
9 person qualifying need not reapply for the exemption.
10     In counties with less than 3,000,000 inhabitants, if the
11 assessor or chief county assessment officer requires annual
12 application for verification of eligibility for an exemption
13 once granted under this Section, the application shall be
14 mailed to the taxpayer.
15     The assessor or chief county assessment officer shall
16 notify each person who qualifies for an exemption under this
17 Section that the person may also qualify for deferral of real
18 estate taxes under the Senior Citizens Real Estate Tax Deferral
19 Act. The notice shall set forth the qualifications needed for
20 deferral of real estate taxes, the address and telephone number
21 of county collector, and a statement that applications for
22 deferral of real estate taxes may be obtained from the county
23 collector.
24     Notwithstanding Sections 6 and 8 of the State Mandates Act,
25 no reimbursement by the State is required for the
26 implementation of any mandate created by this Section.

 

 

HB4914 - 12 - LRB096 15663 HLH 30899 b

1 (Source: P.A. 95-644, eff. 10-12-07; 95-876, eff. 8-21-08;
2 96-339, eff. 7-1-10; 96-355, eff. 1-1-10; revised 9-25-09.)
 
3     Section 95. No acceleration or delay. Where this Act makes
4 changes in a statute that is represented in this Act by text
5 that is not yet or no longer in effect (for example, a Section
6 represented by multiple versions), the use of that text does
7 not accelerate or delay the taking effect of (i) the changes
8 made by this Act or (ii) provisions derived from any other
9 Public Act.
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.