97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3560

 

Introduced 2/24/2011, by Rep. David Harris - Darlene J. Senger - Renée Kosel - John D. Cavaletto

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-7 new
35 ILCS 200/15-172
35 ILCS 200/15-175
35 ILCS 200/15-177

    Amends the Property Tax Code. Provides that, if a taxpayer must have an income that is at or below a certain amount in order to qualify for an exemption, then, for the purposes of that exemption, the term "income" does not include Social Security benefits unless expressly stated otherwise. Effective immediately.


LRB097 06205 HLH 46280 b

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
5Sections 15-172, 15-175, and 15-177 and by adding Section 15-7
6as follows:
 
7    (35 ILCS 200/15-7 new)
8    Sec. 15-7. Income limits; Social Security. Beginning with
9the 2011 assessment year, if, in order to qualify for an
10exemption under this Article 15, the taxpayer must have an
11income that is at or below a certain amount, then, for the
12purposes of that exemption, the term "income" does not include
13any Social Security benefit unless expressly stated otherwise
14in this Code.
 
15    (35 ILCS 200/15-172)
16    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
17Exemption.
18    (a) This Section may be cited as the Senior Citizens
19Assessment Freeze Homestead Exemption.
20    (b) As used in this Section:
21    "Applicant" means an individual who has filed an
22application under this Section.

 

 

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1    "Base amount" means the base year equalized assessed value
2of the residence plus the first year's equalized assessed value
3of any added improvements which increased the assessed value of
4the residence after the base year.
5    "Base year" means the taxable year prior to the taxable
6year for which the applicant first qualifies and applies for
7the exemption provided that in the prior taxable year the
8property was improved with a permanent structure that was
9occupied as a residence by the applicant who was liable for
10paying real property taxes on the property and who was either
11(i) an owner of record of the property or had legal or
12equitable interest in the property as evidenced by a written
13instrument or (ii) had a legal or equitable interest as a
14lessee in the parcel of property that was single family
15residence. If in any subsequent taxable year for which the
16applicant applies and qualifies for the exemption the equalized
17assessed value of the residence is less than the equalized
18assessed value in the existing base year (provided that such
19equalized assessed value is not based on an assessed value that
20results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years), then
22that subsequent taxable year shall become the base year until a
23new base year is established under the terms of this paragraph.
24For taxable year 1999 only, the Chief County Assessment Officer
25shall review (i) all taxable years for which the applicant
26applied and qualified for the exemption and (ii) the existing

 

 

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1base year. The assessment officer shall select as the new base
2year the year with the lowest equalized assessed value. An
3equalized assessed value that is based on an assessed value
4that results from a temporary irregularity in the property that
5reduces the assessed value for one or more taxable years shall
6not be considered the lowest equalized assessed value. The
7selected year shall be the base year for taxable year 1999 and
8thereafter until a new base year is established under the terms
9of this paragraph.
10    "Chief County Assessment Officer" means the County
11Assessor or Supervisor of Assessments of the county in which
12the property is located.
13    "Equalized assessed value" means the assessed value as
14equalized by the Illinois Department of Revenue.
15    "Household" means the applicant, the spouse of the
16applicant, and all persons using the residence of the applicant
17as their principal place of residence.
18    "Household income" means the combined income of the members
19of a household for the calendar year preceding the taxable
20year.
21    "Income" has the same meaning as provided in Section 3.07
22of the Senior Citizens and Disabled Persons Property Tax Relief
23and Pharmaceutical Assistance Act, except that, beginning in
24assessment year 2001, "income" does not include veteran's
25benefits and, beginning in assessment year 2011, "income" does
26not include Social Security benefits.

 

 

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1    "Internal Revenue Code of 1986" means the United States
2Internal Revenue Code of 1986 or any successor law or laws
3relating to federal income taxes in effect for the year
4preceding the taxable year.
5    "Life care facility that qualifies as a cooperative" means
6a facility as defined in Section 2 of the Life Care Facilities
7Act.
8    "Maximum income limitation" means:
9        (1) $35,000 prior to taxable year 1999;
10        (2) $40,000 in taxable years 1999 through 2003;
11        (3) $45,000 in taxable years 2004 through 2005;
12        (4) $50,000 in taxable years 2006 and 2007; and
13        (5) $55,000 in taxable year 2008 and thereafter.
14    "Residence" means the principal dwelling place and
15appurtenant structures used for residential purposes in this
16State occupied on January 1 of the taxable year by a household
17and so much of the surrounding land, constituting the parcel
18upon which the dwelling place is situated, as is used for
19residential purposes. If the Chief County Assessment Officer
20has established a specific legal description for a portion of
21property constituting the residence, then that portion of
22property shall be deemed the residence for the purposes of this
23Section.
24    "Taxable year" means the calendar year during which ad
25valorem property taxes payable in the next succeeding year are
26levied.

 

 

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1    (c) Beginning in taxable year 1994, a senior citizens
2assessment freeze homestead exemption is granted for real
3property that is improved with a permanent structure that is
4occupied as a residence by an applicant who (i) is 65 years of
5age or older during the taxable year, (ii) has a household
6income that does not exceed the maximum income limitation,
7(iii) is liable for paying real property taxes on the property,
8and (iv) is an owner of record of the property or has a legal or
9equitable interest in the property as evidenced by a written
10instrument. This homestead exemption shall also apply to a
11leasehold interest in a parcel of property improved with a
12permanent structure that is a single family residence that is
13occupied as a residence by a person who (i) is 65 years of age
14or older during the taxable year, (ii) has a household income
15that does not exceed the maximum income limitation, (iii) has a
16legal or equitable ownership interest in the property as
17lessee, and (iv) is liable for the payment of real property
18taxes on that property.
19    In counties of 3,000,000 or more inhabitants, the amount of
20the exemption for all taxable years is the equalized assessed
21value of the residence in the taxable year for which
22application is made minus the base amount. In all other
23counties, the amount of the exemption is as follows: (i)
24through taxable year 2005 and for taxable year 2007 and
25thereafter, the amount of this exemption shall be the equalized
26assessed value of the residence in the taxable year for which

 

 

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1application is made minus the base amount; and (ii) for taxable
2year 2006, the amount of the exemption is as follows:
3        (1) For an applicant who has a household income of
4    $45,000 or less, the amount of the exemption is the
5    equalized assessed value of the residence in the taxable
6    year for which application is made minus the base amount.
7        (2) For an applicant who has a household income
8    exceeding $45,000 but not exceeding $46,250, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.8.
12        (3) For an applicant who has a household income
13    exceeding $46,250 but not exceeding $47,500, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is made
16    minus the base amount (ii) multiplied by 0.6.
17        (4) For an applicant who has a household income
18    exceeding $47,500 but not exceeding $48,750, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is made
21    minus the base amount (ii) multiplied by 0.4.
22        (5) For an applicant who has a household income
23    exceeding $48,750 but not exceeding $50,000, the amount of
24    the exemption is (i) the equalized assessed value of the
25    residence in the taxable year for which application is made
26    minus the base amount (ii) multiplied by 0.2.

 

 

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1    When the applicant is a surviving spouse of an applicant
2for a prior year for the same residence for which an exemption
3under this Section has been granted, the base year and base
4amount for that residence are the same as for the applicant for
5the prior year.
6    Each year at the time the assessment books are certified to
7the County Clerk, the Board of Review or Board of Appeals shall
8give to the County Clerk a list of the assessed values of
9improvements on each parcel qualifying for this exemption that
10were added after the base year for this parcel and that
11increased the assessed value of the property.
12    In the case of land improved with an apartment building
13owned and operated as a cooperative or a building that is a
14life care facility that qualifies as a cooperative, the maximum
15reduction from the equalized assessed value of the property is
16limited to the sum of the reductions calculated for each unit
17occupied as a residence by a person or persons (i) 65 years of
18age or older, (ii) with a household income that does not exceed
19the maximum income limitation, (iii) who is liable, by contract
20with the owner or owners of record, for paying real property
21taxes on the property, and (iv) who is an owner of record of a
22legal or equitable interest in the cooperative apartment
23building, other than a leasehold interest. In the instance of a
24cooperative where a homestead exemption has been granted under
25this Section, the cooperative association or its management
26firm shall credit the savings resulting from that exemption

 

 

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1only to the apportioned tax liability of the owner who
2qualified for the exemption. Any person who willfully refuses
3to credit that savings to an owner who qualifies for the
4exemption is guilty of a Class B misdemeanor.
5    When a homestead exemption has been granted under this
6Section and an applicant then becomes a resident of a facility
7licensed under the Assisted Living and Shared Housing Act, the
8Nursing Home Care Act, or the MR/DD Community Care Act, the
9exemption shall be granted in subsequent years so long as the
10residence (i) continues to be occupied by the qualified
11applicant's spouse or (ii) if remaining unoccupied, is still
12owned by the qualified applicant for the homestead exemption.
13    Beginning January 1, 1997, when an individual dies who
14would have qualified for an exemption under this Section, and
15the surviving spouse does not independently qualify for this
16exemption because of age, the exemption under this Section
17shall be granted to the surviving spouse for the taxable year
18preceding and the taxable year of the death, provided that,
19except for age, the surviving spouse meets all other
20qualifications for the granting of this exemption for those
21years.
22    When married persons maintain separate residences, the
23exemption provided for in this Section may be claimed by only
24one of such persons and for only one residence.
25    For taxable year 1994 only, in counties having less than
263,000,000 inhabitants, to receive the exemption, a person shall

 

 

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1submit an application by February 15, 1995 to the Chief County
2Assessment Officer of the county in which the property is
3located. In counties having 3,000,000 or more inhabitants, for
4taxable year 1994 and all subsequent taxable years, to receive
5the exemption, a person may submit an application to the Chief
6County Assessment Officer of the county in which the property
7is located during such period as may be specified by the Chief
8County Assessment Officer. The Chief County Assessment Officer
9in counties of 3,000,000 or more inhabitants shall annually
10give notice of the application period by mail or by
11publication. In counties having less than 3,000,000
12inhabitants, beginning with taxable year 1995 and thereafter,
13to receive the exemption, a person shall submit an application
14by July 1 of each taxable year to the Chief County Assessment
15Officer of the county in which the property is located. A
16county may, by ordinance, establish a date for submission of
17applications that is different than July 1. The applicant shall
18submit with the application an affidavit of the applicant's
19total household income, age, marital status (and if married the
20name and address of the applicant's spouse, if known), and
21principal dwelling place of members of the household on January
221 of the taxable year. The Department shall establish, by rule,
23a method for verifying the accuracy of affidavits filed by
24applicants under this Section, and the Chief County Assessment
25Officer may conduct audits of any taxpayer claiming an
26exemption under this Section to verify that the taxpayer is

 

 

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1eligible to receive the exemption. Each application shall
2contain or be verified by a written declaration that it is made
3under the penalties of perjury. A taxpayer's signing a
4fraudulent application under this Act is perjury, as defined in
5Section 32-2 of the Criminal Code of 1961. The applications
6shall be clearly marked as applications for the Senior Citizens
7Assessment Freeze Homestead Exemption and must contain a notice
8that any taxpayer who receives the exemption is subject to an
9audit by the Chief County Assessment Officer.
10    Notwithstanding any other provision to the contrary, in
11counties having fewer than 3,000,000 inhabitants, if an
12applicant fails to file the application required by this
13Section in a timely manner and this failure to file is due to a
14mental or physical condition sufficiently severe so as to
15render the applicant incapable of filing the application in a
16timely manner, the Chief County Assessment Officer may extend
17the filing deadline for a period of 30 days after the applicant
18regains the capability to file the application, but in no case
19may the filing deadline be extended beyond 3 months of the
20original filing deadline. In order to receive the extension
21provided in this paragraph, the applicant shall provide the
22Chief County Assessment Officer with a signed statement from
23the applicant's physician stating the nature and extent of the
24condition, that, in the physician's opinion, the condition was
25so severe that it rendered the applicant incapable of filing
26the application in a timely manner, and the date on which the

 

 

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1applicant regained the capability to file the application.
2    Beginning January 1, 1998, notwithstanding any other
3provision to the contrary, in counties having fewer than
43,000,000 inhabitants, if an applicant fails to file the
5application required by this Section in a timely manner and
6this failure to file is due to a mental or physical condition
7sufficiently severe so as to render the applicant incapable of
8filing the application in a timely manner, the Chief County
9Assessment Officer may extend the filing deadline for a period
10of 3 months. In order to receive the extension provided in this
11paragraph, the applicant shall provide the Chief County
12Assessment Officer with a signed statement from the applicant's
13physician stating the nature and extent of the condition, and
14that, in the physician's opinion, the condition was so severe
15that it rendered the applicant incapable of filing the
16application in a timely manner.
17    In counties having less than 3,000,000 inhabitants, if an
18applicant was denied an exemption in taxable year 1994 and the
19denial occurred due to an error on the part of an assessment
20official, or his or her agent or employee, then beginning in
21taxable year 1997 the applicant's base year, for purposes of
22determining the amount of the exemption, shall be 1993 rather
23than 1994. In addition, in taxable year 1997, the applicant's
24exemption shall also include an amount equal to (i) the amount
25of any exemption denied to the applicant in taxable year 1995
26as a result of using 1994, rather than 1993, as the base year,

 

 

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1(ii) the amount of any exemption denied to the applicant in
2taxable year 1996 as a result of using 1994, rather than 1993,
3as the base year, and (iii) the amount of the exemption
4erroneously denied for taxable year 1994.
5    For purposes of this Section, a person who will be 65 years
6of age during the current taxable year shall be eligible to
7apply for the homestead exemption during that taxable year.
8Application shall be made during the application period in
9effect for the county of his or her residence.
10    The Chief County Assessment Officer may determine the
11eligibility of a life care facility that qualifies as a
12cooperative to receive the benefits provided by this Section by
13use of an affidavit, application, visual inspection,
14questionnaire, or other reasonable method in order to insure
15that the tax savings resulting from the exemption are credited
16by the management firm to the apportioned tax liability of each
17qualifying resident. The Chief County Assessment Officer may
18request reasonable proof that the management firm has so
19credited that exemption.
20    Except as provided in this Section, all information
21received by the chief county assessment officer or the
22Department from applications filed under this Section, or from
23any investigation conducted under the provisions of this
24Section, shall be confidential, except for official purposes or
25pursuant to official procedures for collection of any State or
26local tax or enforcement of any civil or criminal penalty or

 

 

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1sanction imposed by this Act or by any statute or ordinance
2imposing a State or local tax. Any person who divulges any such
3information in any manner, except in accordance with a proper
4judicial order, is guilty of a Class A misdemeanor.
5    Nothing contained in this Section shall prevent the
6Director or chief county assessment officer from publishing or
7making available reasonable statistics concerning the
8operation of the exemption contained in this Section in which
9the contents of claims are grouped into aggregates in such a
10way that information contained in any individual claim shall
11not be disclosed.
12    (d) Each Chief County Assessment Officer shall annually
13publish a notice of availability of the exemption provided
14under this Section. The notice shall be published at least 60
15days but no more than 75 days prior to the date on which the
16application must be submitted to the Chief County Assessment
17Officer of the county in which the property is located. The
18notice shall appear in a newspaper of general circulation in
19the county.
20    Notwithstanding Sections 6 and 8 of the State Mandates Act,
21no reimbursement by the State is required for the
22implementation of any mandate created by this Section.
23(Source: P.A. 95-644, eff. 10-12-07; 96-339, eff. 7-1-10;
2496-355, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
25    (35 ILCS 200/15-175)

 

 

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1    Sec. 15-175. General homestead exemption. Except as
2provided in Sections 15-176 and 15-177, homestead property is
3entitled to an annual homestead exemption limited, except as
4described here with relation to cooperatives, to a reduction in
5the equalized assessed value of homestead property equal to the
6increase in equalized assessed value for the current assessment
7year above the equalized assessed value of the property for
81977, up to the maximum reduction set forth below. If however,
9the 1977 equalized assessed value upon which taxes were paid is
10subsequently determined by local assessing officials, the
11Property Tax Appeal Board, or a court to have been excessive,
12the equalized assessed value which should have been placed on
13the property for 1977 shall be used to determine the amount of
14the exemption.
15    Except as provided in Section 15-176, the maximum reduction
16before taxable year 2004 shall be $4,500 in counties with
173,000,000 or more inhabitants and $3,500 in all other counties.
18Except as provided in Sections 15-176 and 15-177, for taxable
19years 2004 through 2007, the maximum reduction shall be $5,000,
20for taxable year 2008, the maximum reduction is $5,500, and,
21for taxable years 2009 and thereafter, the maximum reduction is
22$6,000 in all counties. If a county has elected to subject
23itself to the provisions of Section 15-176 as provided in
24subsection (k) of that Section, then, for the first taxable
25year only after the provisions of Section 15-176 no longer
26apply, for owners who, for the taxable year, have not been

 

 

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1granted a senior citizens assessment freeze homestead
2exemption under Section 15-172 or a long-time occupant
3homestead exemption under Section 15-177, there shall be an
4additional exemption of $5,000 for owners with a household
5income of $30,000 or less.
6    In counties with fewer than 3,000,000 inhabitants, if,
7based on the most recent assessment, the equalized assessed
8value of the homestead property for the current assessment year
9is greater than the equalized assessed value of the property
10for 1977, the owner of the property shall automatically receive
11the exemption granted under this Section in an amount equal to
12the increase over the 1977 assessment up to the maximum
13reduction set forth in this Section.
14    If in any assessment year beginning with the 2000
15assessment year, homestead property has a pro-rata valuation
16under Section 9-180 resulting in an increase in the assessed
17valuation, a reduction in equalized assessed valuation equal to
18the increase in equalized assessed value of the property for
19the year of the pro-rata valuation above the equalized assessed
20value of the property for 1977 shall be applied to the property
21on a proportionate basis for the period the property qualified
22as homestead property during the assessment year. The maximum
23proportionate homestead exemption shall not exceed the maximum
24homestead exemption allowed in the county under this Section
25divided by 365 and multiplied by the number of days the
26property qualified as homestead property.

 

 

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1    "Homestead property" under this Section includes
2residential property that is occupied by its owner or owners as
3his or their principal dwelling place, or that is a leasehold
4interest on which a single family residence is situated, which
5is occupied as a residence by a person who has an ownership
6interest therein, legal or equitable or as a lessee, and on
7which the person is liable for the payment of property taxes.
8For land improved with an apartment building owned and operated
9as a cooperative or a building which is a life care facility as
10defined in Section 15-170 and considered to be a cooperative
11under Section 15-170, the maximum reduction from the equalized
12assessed value shall be limited to the increase in the value
13above the equalized assessed value of the property for 1977, up
14to the maximum reduction set forth above, multiplied by the
15number of apartments or units occupied by a person or persons
16who is liable, by contract with the owner or owners of record,
17for paying property taxes on the property and is an owner of
18record of a legal or equitable interest in the cooperative
19apartment building, other than a leasehold interest. For
20purposes of this Section, the term "life care facility" has the
21meaning stated in Section 15-170.
22    "Household", as used in this Section, means the owner, the
23spouse of the owner, and all persons using the residence of the
24owner as their principal place of residence.
25    "Household income", as used in this Section, means the
26combined income of the members of a household for the calendar

 

 

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1year preceding the taxable year.
2    "Income", as used in this Section, has the same meaning as
3provided in Section 3.07 of the Senior Citizens and Disabled
4Persons Property Tax Relief and Pharmaceutical Assistance Act,
5except that "income" does not include veteran's benefits and,
6beginning in assessment year 2011, "income" does not include
7Social Security benefits.
8    In a cooperative where a homestead exemption has been
9granted, the cooperative association or its management firm
10shall credit the savings resulting from that exemption only to
11the apportioned tax liability of the owner who qualified for
12the exemption. Any person who willfully refuses to so credit
13the savings shall be guilty of a Class B misdemeanor.
14    Where married persons maintain and reside in separate
15residences qualifying as homestead property, each residence
16shall receive 50% of the total reduction in equalized assessed
17valuation provided by this Section.
18    In all counties, the assessor or chief county assessment
19officer may determine the eligibility of residential property
20to receive the homestead exemption and the amount of the
21exemption by application, visual inspection, questionnaire or
22other reasonable methods. The determination shall be made in
23accordance with guidelines established by the Department,
24provided that the taxpayer applying for an additional general
25exemption under this Section shall submit to the chief county
26assessment officer an application with an affidavit of the

 

 

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1applicant's total household income, age, marital status (and,
2if married, the name and address of the applicant's spouse, if
3known), and principal dwelling place of members of the
4household on January 1 of the taxable year. The Department
5shall issue guidelines establishing a method for verifying the
6accuracy of the affidavits filed by applicants under this
7paragraph. The applications shall be clearly marked as
8applications for the Additional General Homestead Exemption.
9    In counties with fewer than 3,000,000 inhabitants, in the
10event of a sale of homestead property the homestead exemption
11shall remain in effect for the remainder of the assessment year
12of the sale. The assessor or chief county assessment officer
13may require the new owner of the property to apply for the
14homestead exemption for the following assessment year.
15    Notwithstanding Sections 6 and 8 of the State Mandates Act,
16no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18(Source: P.A. 95-644, eff. 10-12-07.)
 
19    (35 ILCS 200/15-177)
20    Sec. 15-177. The long-time occupant homestead exemption.
21    (a) If the county has elected, under Section 15-176, to be
22subject to the provisions of the alternative general homestead
23exemption, then, for taxable years 2007 and thereafter,
24regardless of whether the exemption under Section 15-176
25applies, qualified homestead property is entitled to an annual

 

 

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

 

 

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

 

 

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1appurtenant structures, and so much of the surrounding land
2constituting the parcel on which the dwelling place is situated
3as is used for residential purposes. If the assessor has
4established a specific legal description for a portion of
5property constituting the homestead, then the homestead is
6limited to the property within that description.
7    "Household income" has the meaning set forth under Section
815-172 of this Code. Beginning in assessment year 2011,
9"household income" does not include Social Security benefits.
10    "General homestead deduction" means the amount of the
11general homestead exemption under Section 15-175.
12    "Life care facility" means a facility defined in Section 2
13of the Life Care Facilities Act.
14    "Qualified homestead property" means homestead property
15owned by a qualified taxpayer.
16    "Qualified taxpayer" means any individual:
17        (1) who, for at least 10 continuous years as of January
18    1 of the taxable year, has occupied the same homestead
19    property as a principal residence and domicile or who, for
20    at least 5 continuous years as of January 1 of the taxable
21    year, has occupied the same homestead property as a
22    principal residence and domicile if that person received
23    assistance in the acquisition of the property as part of a
24    government or nonprofit housing program; and
25        (2) who has a household income of $100,000 or less.
26    (c) The base homestead value must remain constant, except

 

 

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

 

 

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

 

 

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1    The county assessor shall annually give notice of the
2application period by mail or by publication.
3    The taxpayer must submit, with the application, an
4affidavit of the taxpayer's total household income, marital
5status (and if married the name and address of the applicant's
6spouse, if known), and principal dwelling place of members of
7the household on January 1 of the taxable year. The Department
8shall establish, by rule, a method for verifying the accuracy
9of affidavits filed by applicants under this Section, and the
10Chief County Assessment Officer may conduct audits of any
11taxpayer claiming an exemption under this Section to verify
12that the taxpayer is eligible to receive the exemption. Each
13application shall contain or be verified by a written
14declaration that it is made under the penalties of perjury. A
15taxpayer's signing a fraudulent application under this Act is
16perjury, as defined in Section 32-2 of the Criminal Code of
171961. The applications shall be clearly marked as applications
18for the Long-time Occupant Homestead Exemption and must contain
19a notice that any taxpayer who receives the exemption is
20subject to an audit by the Chief County Assessment Officer.
21    (j) Notwithstanding Sections 6 and 8 of the State Mandates
22Act, no reimbursement by the State is required for the
23implementation of any mandate created by this Section.
24(Source: P.A. 95-644, eff. 10-12-07.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.