98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB6294

 

Introduced , by Rep. Martin J. Moylan

 

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

    Amends the Property Tax Code. Provides that the general homestead exemption amount and the long-time occupant homestead exemption amount shall be doubled for homestead property that is negatively affected by aircraft noise from Chicago O'Hare International Airport. Effective immediately.


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

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 15-175 and 15-177 as follows:
 
6    (35 ILCS 200/15-175)
7    Sec. 15-175. General homestead exemption.
8    (a) Except as provided in Sections 15-176 and 15-177,
9homestead property is entitled to an annual homestead exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently
17determined by local assessing officials, the Property Tax
18Appeal Board, or a court to have been excessive, the equalized
19assessed value which should have been placed on the property
20for 1977 shall be used to determine the amount of the
21exemption.
22    (b) Except as provided in Section 15-176, the maximum
23reduction before taxable year 2004 shall be $4,500 in counties

 

 

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1with 3,000,000 or more inhabitants and $3,500 in all other
2counties. Except as provided in Sections 15-176 and 15-177, for
3taxable years 2004 through 2007, the maximum reduction shall be
4$5,000, for taxable year 2008, the maximum reduction is $5,500,
5and, for taxable years 2009 through 2011, the maximum reduction
6is $6,000 in all counties. For taxable years 2012 and
7thereafter, the maximum reduction is $7,000 in counties with
83,000,000 or more inhabitants and $6,000 in all other counties.
9If a county has elected to subject itself to the provisions of
10Section 15-176 as provided in subsection (k) of that Section,
11then, for the first taxable year only after the provisions of
12Section 15-176 no longer apply, for owners who, for the taxable
13year, have not been granted a senior citizens assessment freeze
14homestead exemption under Section 15-172 or a long-time
15occupant homestead exemption under Section 15-177, there shall
16be an additional exemption of $5,000 for owners with a
17household income of $30,000 or less.
18    (c) In counties with fewer than 3,000,000 inhabitants, if,
19based on the most recent assessment, the equalized assessed
20value of the homestead property for the current assessment year
21is greater than the equalized assessed value of the property
22for 1977, the owner of the property shall automatically receive
23the exemption granted under this Section in an amount equal to
24the increase over the 1977 assessment up to the maximum
25reduction set forth in this Section.
26    (d) If in any assessment year beginning with the 2000

 

 

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1assessment year, homestead property has a pro-rata valuation
2under Section 9-180 resulting in an increase in the assessed
3valuation, a reduction in equalized assessed valuation equal to
4the increase in equalized assessed value of the property for
5the year of the pro-rata valuation above the equalized assessed
6value of the property for 1977 shall be applied to the property
7on a proportionate basis for the period the property qualified
8as homestead property during the assessment year. The maximum
9proportionate homestead exemption shall not exceed the maximum
10homestead exemption allowed in the county under this Section
11divided by 365 and multiplied by the number of days the
12property qualified as homestead property.
13    (e) The chief county assessment officer may, when
14considering whether to grant a leasehold exemption under this
15Section, require the following conditions to be met:
16        (1) that a notarized application for the exemption,
17    signed by both the owner and the lessee of the property,
18    must be submitted each year during the application period
19    in effect for the county in which the property is located;
20        (2) that a copy of the lease must be filed with the
21    chief county assessment officer by the owner of the
22    property at the time the notarized application is
23    submitted;
24        (3) that the lease must expressly state that the lessee
25    is liable for the payment of property taxes; and
26        (4) that the lease must include the following language

 

 

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1    in substantially the following form:
2            "Lessee shall be liable for the payment of real
3        estate taxes with respect to the residence in
4        accordance with the terms and conditions of Section
5        15-175 of the Property Tax Code (35 ILCS 200/15-175).
6        The permanent real estate index number for the premises
7        is (insert number), and, according to the most recent
8        property tax bill, the current amount of real estate
9        taxes associated with the premises is (insert amount)
10        per year. The parties agree that the monthly rent set
11        forth above shall be increased or decreased pro rata
12        (effective January 1 of each calendar year) to reflect
13        any increase or decrease in real estate taxes. Lessee
14        shall be deemed to be satisfying Lessee's liability for
15        the above mentioned real estate taxes with the monthly
16        rent payments as set forth above (or increased or
17        decreased as set forth herein).".
18    In addition, if there is a change in lessee, or if the
19lessee vacates the property, then the chief county assessment
20officer may require the owner of the property to notify the
21chief county assessment officer of that change.
22    This subsection (e) does not apply to leasehold interests
23in property owned by a municipality.
24    (e-5) Notwithstanding any other provision of law, and
25notwithstanding the limitations set forth in subsection (b),
26beginning in assessment year 2014, if homestead property is

 

 

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1negatively affected by aircraft noise from Chicago O'Hare
2International Airport, then the amount of the exemption for
3that property shall be the amount of the exemption otherwise
4provided under this Section for that property, multiplied by 2.
5For the purposes of this subsection (e-5), property is
6negatively affected by aircraft noise from Chicago O'Hare
7International Airport if the property routinely experiences
8aircraft noise of 65 decibels or more, and that aircraft noise
9is directly attributable to flight patterns at Chicago O'Hare
10International Airport. The assessor or chief county assessment
11officer may determine the eligibility of residential property
12to receive the double homestead exemption under this subsection
13by application, visual inspection, questionnaire, or other
14reasonable methods. The determination shall be made in
15accordance with guidelines established by the Department,
16provided that the taxpayer applying for a double homestead
17exemption under this subsection shall submit to the chief
18county assessment officer, along with the taxpayer's original
19homestead exemption application, additional documentation
20establishing that the property is negatively affected by
21aircraft noise from Chicago O'Hare International Airport.
22    (f) "Homestead property" under this Section includes
23residential property that is occupied by its owner or owners as
24his or their principal dwelling place, or that is a leasehold
25interest on which a single family residence is situated, which
26is occupied as a residence by a person who has an ownership

 

 

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1interest therein, legal or equitable or as a lessee, and on
2which the person is liable for the payment of property taxes.
3For land improved with an apartment building owned and operated
4as a cooperative or a building which is a life care facility as
5defined in Section 15-170 and considered to be a cooperative
6under Section 15-170, the maximum reduction from the equalized
7assessed value shall be limited to the increase in the value
8above the equalized assessed value of the property for 1977, up
9to the maximum reduction set forth above, multiplied by the
10number of apartments or units occupied by a person or persons
11who is liable, by contract with the owner or owners of record,
12for paying property taxes on the property and is an owner of
13record of a legal or equitable interest in the cooperative
14apartment building, other than a leasehold interest. For
15purposes of this Section, the term "life care facility" has the
16meaning stated in Section 15-170.
17    "Household", as used in this Section, means the owner, the
18spouse of the owner, and all persons using the residence of the
19owner as their principal place of residence.
20    "Household income", as used in this Section, means the
21combined income of the members of a household for the calendar
22year preceding the taxable year.
23    "Income", as used in this Section, has the same meaning as
24provided in Section 3.07 of the Senior Citizens and Disabled
25Persons Property Tax Relief Act, except that "income" does not
26include veteran's benefits.

 

 

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1    (g) In a cooperative where a homestead exemption has been
2granted, the cooperative association or its management firm
3shall credit the savings resulting from that exemption only to
4the apportioned tax liability of the owner who qualified for
5the exemption. Any person who willfully refuses to so credit
6the savings shall be guilty of a Class B misdemeanor.
7    (h) Where married persons maintain and reside in separate
8residences qualifying as homestead property, each residence
9shall receive 50% of the total reduction in equalized assessed
10valuation provided by this Section.
11    (i) In all counties, the assessor or chief county
12assessment officer may determine the eligibility of
13residential property to receive the homestead exemption and the
14amount of the exemption by application, visual inspection,
15questionnaire or other reasonable methods. The determination
16shall be made in accordance with guidelines established by the
17Department, provided that the taxpayer applying for an
18additional general exemption under this Section shall submit to
19the chief county assessment officer an application with an
20affidavit of the applicant's total household income, age,
21marital status (and, if married, the name and address of the
22applicant's spouse, if known), and principal dwelling place of
23members of the household on January 1 of the taxable year. The
24Department shall issue guidelines establishing a method for
25verifying the accuracy of the affidavits filed by applicants
26under this paragraph. The applications shall be clearly marked

 

 

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1as applications for the Additional General Homestead
2Exemption.
3    (j) In counties with fewer than 3,000,000 inhabitants, in
4the event of a sale of homestead property the homestead
5exemption shall remain in effect for the remainder of the
6assessment year of the sale. The assessor or chief county
7assessment officer may require the new owner of the property to
8apply for the homestead exemption for the following assessment
9year.
10    (k) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
1498-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
 
15    (35 ILCS 200/15-177)
16    Sec. 15-177. The long-time occupant homestead exemption.
17    (a) If the county has elected, under Section 15-176, to be
18subject to the provisions of the alternative general homestead
19exemption, then, for taxable years 2007 and thereafter,
20regardless of whether the exemption under Section 15-176
21applies, qualified homestead property is entitled to an annual
22homestead exemption equal to a reduction in the property's
23equalized assessed value calculated as provided in this
24Section.
25    (b) As used in this Section:

 

 

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

 

 

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

 

 

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1property constituting the homestead, then the homestead is
2limited to the property within that description.
3    "Household income" has the meaning set forth under Section
415-172 of this Code.
5    "General homestead deduction" means the amount of the
6general homestead exemption under Section 15-175.
7    "Life care facility" means a facility defined in Section 2
8of the Life Care Facilities Act.
9    "Qualified homestead property" means homestead property
10owned by a qualified taxpayer.
11    "Qualified taxpayer" means any individual:
12        (1) who, for at least 10 continuous years as of January
13    1 of the taxable year, has occupied the same homestead
14    property as a principal residence and domicile or who, for
15    at least 5 continuous years as of January 1 of the taxable
16    year, has occupied the same homestead property as a
17    principal residence and domicile if that person received
18    assistance in the acquisition of the property as part of a
19    government or nonprofit housing program; and
20        (2) who has a household income of $100,000 or less.
21    (c) The base homestead value must remain constant, except
22that the assessor may revise it under any of the following
23circumstances:
24        (1) If the equalized assessed value of a homestead
25    property for the current tax year is less than the previous
26    base homestead value for that property, then the current

 

 

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1    equalized assessed value (provided it is not based on a
2    reduced assessed value resulting from a temporary
3    irregularity in the property) becomes the base homestead
4    value in subsequent tax years.
5        (2) For any year in which new buildings, structures, or
6    other improvements are constructed on the homestead
7    property that would increase its assessed value, the
8    assessor shall adjust the base homestead value with due
9    regard to the value added by the new improvements.
10    (d) The amount of the exemption under this Section is the
11greater of: (i) the equalized assessed value of the homestead
12property for the current tax year minus the adjusted homestead
13value; or (ii) the general homestead deduction.
14    (d-5) Notwithstanding any other provision of law, if
15qualified homestead property is negatively affected by
16aircraft noise from Chicago O'Hare International Airport, as
17provided in subsection (e-5) of Section 15-175, then the amount
18of the exemption for that property shall be the greater of: (i)
19the difference between the equalized assessed value of the
20homestead property for the current tax year and the adjusted
21homestead value, multiplied by 2; or (ii) the general homestead
22deduction calculated under subsection (e-5) of Section 15-175.
23The assessor or chief county assessment officer may determine
24the eligibility of residential property to receive the double
25homestead exemption under this subsection by application,
26visual inspection, questionnaire, or other reasonable methods.

 

 

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1The determination shall be made in accordance with guidelines
2established by the Department, provided that the taxpayer
3applying for a double homestead exemption under this subsection
4shall submit to the chief county assessment officer, along with
5the taxpayer's original homestead exemption application,
6additional documentation establishing that the property is
7negatively affected by aircraft noise from Chicago O'Hare
8International Airport.
9    (e) In the case of an apartment building owned and operated
10as a cooperative, or as a life care facility, that contains
11residential units that qualify as homestead property of a
12qualified taxpayer under this Section, the maximum cumulative
13exemption amount attributed to the entire building or facility
14shall not exceed the sum of the exemptions calculated for each
15unit that is a qualified homestead property. The cooperative
16association, management firm, or other person or entity that
17manages or controls the cooperative apartment building or life
18care facility shall credit the exemption attributable to each
19residential unit only to the apportioned tax liability of the
20qualified taxpayer as to that unit. Any person who willfully
21refuses to so credit the exemption is guilty of a Class B
22misdemeanor.
23    (f) When married persons maintain separate residences, the
24exemption provided under this Section may be claimed by only
25one such person and for only one residence. No person who
26receives an exemption under Section 15-172 of this Code may

 

 

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1receive an exemption under this Section. No person who receives
2an exemption under this Section may receive an exemption under
3Section 15-175 or 15-176 of this Code.
4    (g) In the event of a sale or other transfer in ownership
5of the homestead property between spouses or between a parent
6and a child, the exemption under this Section remains in effect
7if the new owner has a household income of $100,000 or less.
8    (h) In the event of a sale or other transfer in ownership
9of the homestead property other than subsection (g) of this
10Section, the exemption under this Section shall remain in
11effect for the remainder of the tax year and be calculated
12using the same base homestead value in which the sale or
13transfer occurs.
14    (i) To receive the exemption, a person must submit an
15application to the county assessor during the period specified
16by the county assessor.
17    The county assessor shall annually give notice of the
18application period by mail or by publication.
19    The taxpayer must submit, with the application, an
20affidavit of the taxpayer's total household income, marital
21status (and if married the name and address of the applicant's
22spouse, if known), and principal dwelling place of members of
23the household on January 1 of the taxable year. The Department
24shall establish, by rule, a method for verifying the accuracy
25of affidavits filed by applicants under this Section, and the
26Chief County Assessment Officer may conduct audits of any

 

 

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1taxpayer claiming an exemption under this Section to verify
2that the taxpayer is eligible to receive the exemption. Each
3application shall contain or be verified by a written
4declaration that it is made under the penalties of perjury. A
5taxpayer's signing a fraudulent application under this Act is
6perjury, as defined in Section 32-2 of the Criminal Code of
72012. The applications shall be clearly marked as applications
8for the Long-time Occupant Homestead Exemption and must contain
9a notice that any taxpayer who receives the exemption is
10subject to an audit by the Chief County Assessment Officer.
11    (j) Notwithstanding Sections 6 and 8 of the State Mandates
12Act, no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 97-1150, eff. 1-25-13.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.