99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6234

 

Introduced 2/11/2016, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 805/8.28
35 ILCS 200/9-275
35 ILCS 200/15-10
35 ILCS 200/15-172
35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.


LRB099 18244 HLH 42614 b

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

 

 

A BILL FOR

 

HB6234LRB099 18244 HLH 42614 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Mandates Act is amended by changing
5Section 8.28 as follows:
 
6    (30 ILCS 805/8.28)
7    Sec. 8.28. Exempt mandate.
8    (a) Notwithstanding Sections 6 and 8 of this Act, no
9reimbursement by the State is required for the implementation
10of any mandate created by Public Act 93-654, 93-677, 93-679,
1193-689, 93-734, 93-753, 93-910, 93-917, 93-1036, 93-1038,
1293-1079, or 93-1090.
13    (b) Notwithstanding Sections 6 and 8 of this Act, no
14reimbursement by the State is required for the implementation
15of any mandate created by the Senior Citizens Assessment Freeze
16Homestead Exemption for Senior Citizens and Persons with a
17Disability under Section 15-172 of the Property Tax Code, the
18General Homestead Exemption under Section 15-175 of the
19Property Tax Code, the alternative General Homestead Exemption
20under Section 15-176 of the Property Tax Code, the Homestead
21Improvements Exemption under Section 15-180 of the Property Tax
22Code, and by Public Act 93-715.
23(Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

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1    Section 10. The Property Tax Code is amended by changing
2Sections 9-275, 15-10, 15-172, and 15-175 as follows:
 
3    (35 ILCS 200/9-275)
4    Sec. 9-275. Erroneous homestead exemptions.
5    (a) For purposes of this Section:
6    "Erroneous homestead exemption" means a homestead
7exemption that was granted for real property in a taxable year
8if the property was not eligible for that exemption in that
9taxable year. If the taxpayer receives an erroneous homestead
10exemption under a single Section of this Code for the same
11property in multiple years, that exemption is considered a
12single erroneous homestead exemption for purposes of this
13Section. However, if the taxpayer receives erroneous homestead
14exemptions under multiple Sections of this Code for the same
15property, or if the taxpayer receives erroneous homestead
16exemptions under the same Section of this Code for multiple
17properties, then each of those exemptions is considered a
18separate erroneous homestead exemption for purposes of this
19Section.
20    "Homestead exemption" means an exemption under Section
2115-165 (veterans with disabilities), 15-167 (returning
22veterans), 15-168 (persons with disabilities), 15-169
23(standard homestead for veterans with disabilities), 15-170
24(senior citizens), 15-172 (senior citizens assessment freeze

 

 

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1for senior citizens and persons with a disability), 15-175
2(general homestead), 15-176 (alternative general homestead),
3or 15-177 (long-time occupant).
4    "Erroneous exemption principal amount" means the total
5difference between the property taxes actually billed to a
6property index number and the amount of property taxes that
7would have been billed but for the erroneous exemption or
8exemptions.
9    "Taxpayer" means the property owner or leasehold owner that
10erroneously received a homestead exemption upon property.
11    (b) Notwithstanding any other provision of law, in counties
12with 3,000,000 or more inhabitants, the chief county assessment
13officer shall include the following information with each
14assessment notice sent in a general assessment year: (1) a list
15of each homestead exemption available under Article 15 of this
16Code and a description of the eligibility criteria for that
17exemption; (2) a list of each homestead exemption applied to
18the property in the current assessment year; (3) information
19regarding penalties and interest that may be incurred under
20this Section if the taxpayer received an erroneous homestead
21exemption in a previous taxable year; and (4) notice of the
2260-day grace period available under this subsection. If, within
2360 days after receiving his or her assessment notice, the
24taxpayer notifies the chief county assessment officer that he
25or she received an erroneous homestead exemption in a previous
26taxable year, and if the taxpayer pays the erroneous exemption

 

 

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1principal amount, plus interest as provided in subsection (f),
2then the taxpayer shall not be liable for the penalties
3provided in subsection (f) with respect to that exemption.
4    (c) In counties with 3,000,000 or more inhabitants, when
5the chief county assessment officer determines that one or more
6erroneous homestead exemptions was applied to the property, the
7erroneous exemption principal amount, together with all
8applicable interest and penalties as provided in subsections
9(f) and (j), shall constitute a lien in the name of the People
10of Cook County on the property receiving the erroneous
11homestead exemption. Upon becoming aware of the existence of
12one or more erroneous homestead exemptions, the chief county
13assessment officer shall cause to be served, by both regular
14mail and certified mail, a notice of discovery as set forth in
15subsection (c-5). The chief county assessment officer in a
16county with 3,000,000 or more inhabitants may cause a lien to
17be recorded against property that (1) is located in the county
18and (2) received one or more erroneous homestead exemptions if,
19upon determination of the chief county assessment officer, the
20taxpayer received: (A) one or 2 erroneous homestead exemptions
21for real property, including at least one erroneous homestead
22exemption granted for the property against which the lien is
23sought, during any of the 3 collection years immediately prior
24to the current collection year in which the notice of discovery
25is served; or (B) 3 or more erroneous homestead exemptions for
26real property, including at least one erroneous homestead

 

 

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1exemption granted for the property against which the lien is
2sought, during any of the 6 collection years immediately prior
3to the current collection year in which the notice of discovery
4is served. Prior to recording the lien against the property,
5the chief county assessment officer shall cause to be served,
6by both regular mail and certified mail, return receipt
7requested, on the person to whom the most recent tax bill was
8mailed and the owner of record, a notice of intent to record a
9lien against the property. The chief county assessment officer
10shall cause the notice of intent to record a lien to be served
11within 3 years from the date on which the notice of discovery
12was served.
13    (c-5) The notice of discovery described in subsection (c)
14shall: (1) identify, by property index number, the property for
15which the chief county assessment officer has knowledge
16indicating the existence of an erroneous homestead exemption;
17(2) set forth the taxpayer's liability for principal, interest,
18penalties, and administrative costs including, but not limited
19to, recording fees described in subsection (f); (3) inform the
20taxpayer that he or she will be served with a notice of intent
21to record a lien within 3 years from the date of service of the
22notice of discovery; and (4) inform the taxpayer that he or she
23may pay the outstanding amount, plus interest, penalties, and
24administrative costs at any time prior to being served with the
25notice of intent to record a lien or within 30 days after the
26notice of intent to record a lien is served.

 

 

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1    (d) The notice of intent to record a lien described in
2subsection (c) shall: (1) identify, by property index number,
3the property against which the lien is being sought; (2)
4identify each specific homestead exemption that was
5erroneously granted and the year or years in which each
6exemption was granted; (3) set forth the erroneous exemption
7principal amount due and the interest amount and any penalty
8and administrative costs due; (4) inform the taxpayer that he
9or she may request a hearing within 30 days after service and
10may appeal the hearing officer's ruling to the circuit court;
11(5) inform the taxpayer that he or she may pay the erroneous
12exemption principal amount, plus interest and penalties,
13within 30 days after service; and (6) inform the taxpayer that,
14if the lien is recorded against the property, the amount of the
15lien will be adjusted to include the applicable recording fee
16and that fees for recording a release of the lien shall be
17incurred by the taxpayer. A lien shall not be filed pursuant to
18this Section if the taxpayer pays the erroneous exemption
19principal amount, plus penalties and interest, within 30 days
20of service of the notice of intent to record a lien.
21    (e) The notice of intent to record a lien shall also
22include a form that the taxpayer may return to the chief county
23assessment officer to request a hearing. The taxpayer may
24request a hearing by returning the form within 30 days after
25service. The hearing shall be held within 90 days after the
26taxpayer is served. The chief county assessment officer shall

 

 

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1promulgate rules of service and procedure for the hearing. The
2chief county assessment officer must generally follow rules of
3evidence and practices that prevail in the county circuit
4courts, but, because of the nature of these proceedings, the
5chief county assessment officer is not bound by those rules in
6all particulars. The chief county assessment officer shall
7appoint a hearing officer to oversee the hearing. The taxpayer
8shall be allowed to present evidence to the hearing officer at
9the hearing. After taking into consideration all the relevant
10testimony and evidence, the hearing officer shall make an
11administrative decision on whether the taxpayer was
12erroneously granted a homestead exemption for the taxable year
13in question. The taxpayer may appeal the hearing officer's
14ruling to the circuit court of the county where the property is
15located as a final administrative decision under the
16Administrative Review Law.
17    (f) A lien against the property imposed under this Section
18shall be filed with the county recorder of deeds, but may not
19be filed sooner than 60 days after the notice of intent to
20record a lien was delivered to the taxpayer if the taxpayer
21does not request a hearing, or until the conclusion of the
22hearing and all appeals if the taxpayer does request a hearing.
23If a lien is filed pursuant to this Section and the taxpayer
24received one or 2 erroneous homestead exemptions during any of
25the 3 collection years immediately prior to the current
26collection year in which the notice of discovery is served,

 

 

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1then the erroneous exemption principal amount, plus 10%
2interest per annum or portion thereof from the date the
3erroneous exemption principal amount would have become due if
4properly included in the tax bill, shall be charged against the
5property by the chief county assessment officer. However, if a
6lien is filed pursuant to this Section and the taxpayer
7received 3 or more erroneous homestead exemptions during any of
8the 6 collection years immediately prior to the current
9collection year in which the notice of discovery is served, the
10erroneous exemption principal amount, plus a penalty of 50% of
11the total amount of the erroneous exemption principal amount
12for that property and 10% interest per annum or portion thereof
13from the date the erroneous exemption principal amount would
14have become due if properly included in the tax bill, shall be
15charged against the property by the chief county assessment
16officer. If a lien is filed pursuant to this Section, the
17taxpayer shall not be liable for interest that accrues between
18the date the notice of discovery is served and the date the
19lien is filed. Before recording the lien with the county
20recorder of deeds, the chief county assessment officer shall
21adjust the amount of the lien to add administrative costs,
22including but not limited to the applicable recording fee, to
23the total lien amount.
24    (g) If a person received an erroneous homestead exemption
25under Section 15-170 and: (1) the person was the spouse, child,
26grandchild, brother, sister, niece, or nephew of the previous

 

 

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1taxpayer; and (2) the person received the property by bequest
2or inheritance; then the person is not liable for the penalties
3imposed under this Section for any year or years during which
4the chief county assessment officer did not require an annual
5application for the exemption. However, that person is
6responsible for any interest owed under subsection (f).
7    (h) If the erroneous homestead exemption was granted as a
8result of a clerical error or omission on the part of the chief
9county assessment officer, and if the taxpayer has paid the tax
10bills as received for the year in which the error occurred,
11then the interest and penalties authorized by this Section with
12respect to that homestead exemption shall not be chargeable to
13the taxpayer. However, nothing in this Section shall prevent
14the collection of the erroneous exemption principal amount due
15and owing.
16    (i) A lien under this Section is not valid as to (1) any
17bona fide purchaser for value without notice of the erroneous
18homestead exemption whose rights in and to the underlying
19parcel arose after the erroneous homestead exemption was
20granted but before the filing of the notice of lien; or (2) any
21mortgagee, judgment creditor, or other lienor whose rights in
22and to the underlying parcel arose before the filing of the
23notice of lien. A title insurance policy for the property that
24is issued by a title company licensed to do business in the
25State showing that the property is free and clear of any liens
26imposed under this Section shall be prima facie evidence that

 

 

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1the taxpayer is without notice of the erroneous homestead
2exemption. Nothing in this Section shall be deemed to impair
3the rights of subsequent creditors and subsequent purchasers
4under Section 30 of the Conveyances Act.
5    (j) When a lien is filed against the property pursuant to
6this Section, the chief county assessment officer shall mail a
7copy of the lien to the person to whom the most recent tax bill
8was mailed and to the owner of record, and the outstanding
9liability created by such a lien is due and payable within 30
10days after the mailing of the lien by the chief county
11assessment officer. This liability is deemed delinquent and
12shall bear interest beginning on the day after the due date at
13a rate of 1.5% per month or portion thereof. Payment shall be
14made to the county treasurer. Upon receipt of the full amount
15due, as determined by the chief county assessment officer, the
16county treasurer shall distribute the amount paid as provided
17in subsection (k). Upon presentment by the taxpayer to the
18chief county assessment officer of proof of payment of the
19total liability, the chief county assessment officer shall
20provide in reasonable form a release of the lien. The release
21of the lien provided shall clearly inform the taxpayer that it
22is the responsibility of the taxpayer to record the lien
23release form with the county recorder of deeds and to pay any
24applicable recording fees.
25    (k) The county treasurer shall pay collected erroneous
26exemption principal amounts, pro rata, to the taxing districts,

 

 

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1or their legal successors, that levied upon the subject
2property in the taxable year or years for which the erroneous
3homestead exemptions were granted, except as set forth in this
4Section. The county treasurer shall deposit collected
5penalties and interest into a special fund established by the
6county treasurer to offset the costs of administration of the
7provisions of this Section by the chief county assessment
8officer's office, as appropriated by the county board. If the
9costs of administration of this Section exceed the amount of
10interest and penalties collected in the special fund, the chief
11county assessor shall be reimbursed by each taxing district or
12their legal successors for those costs. Such costs shall be
13paid out of the funds collected by the county treasurer on
14behalf of each taxing district pursuant to this Section.
15    (l) The chief county assessment officer in a county with
163,000,000 or more inhabitants shall establish an amnesty period
17for all taxpayers owing any tax due to an erroneous homestead
18exemption granted in a tax year prior to the 2013 tax year. The
19amnesty period shall begin on the effective date of this
20amendatory Act of the 98th General Assembly and shall run
21through December 31, 2013. If, during the amnesty period, the
22taxpayer pays the entire arrearage of taxes due for tax years
23prior to 2013, the county clerk shall abate and not seek to
24collect any interest or penalties that may be applicable and
25shall not seek civil or criminal prosecution for any taxpayer
26for tax years prior to 2013. Failure to pay all such taxes due

 

 

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1during the amnesty period established under this Section shall
2invalidate the amnesty period for that taxpayer.
3    The chief county assessment officer in a county with
43,000,000 or more inhabitants shall (i) mail notice of the
5amnesty period with the tax bills for the second installment of
6taxes for the 2012 assessment year and (ii) as soon as possible
7after the effective date of this amendatory Act of the 98th
8General Assembly, publish notice of the amnesty period in a
9newspaper of general circulation in the county. Notices shall
10include information on the amnesty period, its purpose, and the
11method by which to make payment.
12    Taxpayers who are a party to any criminal investigation or
13to any civil or criminal litigation that is pending in any
14circuit court or appellate court, or in the Supreme Court of
15this State, for nonpayment, delinquency, or fraud in relation
16to any property tax imposed by any taxing district located in
17the State on the effective date of this amendatory Act of the
1898th General Assembly may not take advantage of the amnesty
19period.
20    A taxpayer who has claimed 3 or more homestead exemptions
21in error shall not be eligible for the amnesty period
22established under this subsection.
23(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
2498-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
257-27-15.)
 

 

 

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1    (35 ILCS 200/15-10)
2    Sec. 15-10. Exempt property; procedures for certification.
3    (a) All property granted an exemption by the Department
4pursuant to the requirements of Section 15-5 and described in
5the Sections following Section 15-30 and preceding Section
616-5, to the extent therein limited, is exempt from taxation.
7In order to maintain that exempt status, the titleholder or the
8owner of the beneficial interest of any property that is exempt
9must file with the chief county assessment officer, on or
10before January 31 of each year (May 31 in the case of property
11exempted by Section 15-170), an affidavit stating whether there
12has been any change in the ownership or use of the property,
13the status of the owner-resident, the satisfaction by a
14relevant hospital entity of the condition for an exemption
15under Section 15-86, or that a veteran with a disability who
16qualifies under Section 15-165 owned and used the property as
17of January 1 of that year. The nature of any change shall be
18stated in the affidavit. Failure to file an affidavit shall, in
19the discretion of the assessment officer, constitute cause to
20terminate the exemption of that property, notwithstanding any
21other provision of this Code. Owners of 5 or more such exempt
22parcels within a county may file a single annual affidavit in
23lieu of an affidavit for each parcel. The assessment officer,
24upon request, shall furnish an affidavit form to the owners, in
25which the owner may state whether there has been any change in
26the ownership or use of the property or status of the owner or

 

 

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1resident as of January 1 of that year. The owner of 5 or more
2exempt parcels shall list all the properties giving the same
3information for each parcel as required of owners who file
4individual affidavits.
5    (b) However, titleholders or owners of the beneficial
6interest in any property exempted under any of the following
7provisions are not required to submit an annual filing under
8this Section:
9        (1) Section 15-45 (burial grounds) in counties of less
10    than 3,000,000 inhabitants and owned by a not-for-profit
11    organization.
12        (2) Section 15-40.
13        (3) Section 15-50 (United States property).
14    (c) If there is a change in use or ownership, however,
15notice must be filed pursuant to Section 15-20.
16    (d) An application for homestead exemptions shall be filed
17as provided in Section 15-170 (senior citizens homestead
18exemption), Section 15-172 (senior citizens assessment freeze
19homestead exemption for senior citizens and persons with a
20disability), and Sections 15-175 (general homestead
21exemption), 15-176 (general alternative homestead exemption),
22and 15-177 (long-time occupant homestead exemption),
23respectively.
24    (e) For purposes of determining satisfaction of the
25condition for an exemption under Section 15-86:
26        (1) The "year for which exemption is sought" is the

 

 

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1    year prior to the year in which the affidavit is due.
2        (2) The "hospital year" is the fiscal year of the
3    relevant hospital entity, or the fiscal year of one of the
4    hospitals in the hospital system if the relevant hospital
5    entity is a hospital system with members with different
6    fiscal years, that ends in the year prior to the year in
7    which the affidavit is due. However, if that fiscal year
8    ends 3 months or less before the date on which the
9    affidavit is due, the relevant hospital entity shall file
10    an interim affidavit based on the currently available
11    information, and shall file a supplemental affidavit
12    within 90 days of date on which the application was due, if
13    the information in the relevant hospital entity's audited
14    financial statements changes the interim affidavit's
15    statement concerning the entity's compliance with the
16    calculation required by Section 15-86.
17        (3) The affidavit shall be accompanied by an exhibit
18    prepared by the relevant hospital entity showing (A) the
19    value of the relevant hospital entity's services and
20    activities, if any, under items (1) through (7) of
21    subsection (e) of Section 15-86, stated separately for each
22    item, and (B) the value relating to the relevant hospital
23    entity's estimated property tax liability under paragraphs
24    (A), (B), and (C) of item (1) of subsection (g) of Section
25    15-86; under paragraphs (A), (B), and (C) of item (2) of
26    subsection (g) of Section 15-86; and under item (3) of

 

 

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1    subsection (g) of Section 15-86.
2(Source: P.A. 99-143, eff. 7-27-15.)
 
3    (35 ILCS 200/15-172)
4    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
5Exemption for Senior Citizens and Persons with a Disability.
6    (a) This Section may be cited as the Senior Citizens
7Assessment Freeze Homestead Exemption for Senior Citizens and
8Persons with a Disability.
9    (b) As used in this Section:
10    "Applicant" means an individual who has filed an
11application under this Section.
12    "Base amount" means the base year equalized assessed value
13of the residence plus the first year's equalized assessed value
14of any added improvements which increased the assessed value of
15the residence after the base year.
16    "Base year" means the taxable year prior to the taxable
17year for which the applicant first qualifies and applies for
18the exemption provided that in the prior taxable year the
19property was improved with a permanent structure that was
20occupied as a residence by the applicant who was liable for
21paying real property taxes on the property and who was either
22(i) an owner of record of the property or had legal or
23equitable interest in the property as evidenced by a written
24instrument or (ii) had a legal or equitable interest as a
25lessee in the parcel of property that was single family

 

 

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1residence. If in any subsequent taxable year for which the
2applicant applies and qualifies for the exemption the equalized
3assessed value of the residence is less than the equalized
4assessed value in the existing base year (provided that such
5equalized assessed value is not based on an assessed value that
6results from a temporary irregularity in the property that
7reduces the assessed value for one or more taxable years), then
8that subsequent taxable year shall become the base year until a
9new base year is established under the terms of this paragraph.
10For taxable year 1999 only, the Chief County Assessment Officer
11shall review (i) all taxable years for which the applicant
12applied and qualified for the exemption and (ii) the existing
13base year. The assessment officer shall select as the new base
14year the year with the lowest equalized assessed value. An
15equalized assessed value that is based on an assessed value
16that results from a temporary irregularity in the property that
17reduces the assessed value for one or more taxable years shall
18not be considered the lowest equalized assessed value. The
19selected year shall be the base year for taxable year 1999 and
20thereafter until a new base year is established under the terms
21of this paragraph.
22    "Chief County Assessment Officer" means the County
23Assessor or Supervisor of Assessments of the county in which
24the property is located.
25    "Equalized assessed value" means the assessed value as
26equalized by the Illinois Department of Revenue.

 

 

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1    "Household" means the applicant, the spouse of the
2applicant, and all persons using the residence of the applicant
3as their principal place of residence.
4    "Household income" means the combined income of the members
5of a household for the calendar year preceding the taxable
6year.
7    "Income" has the same meaning as provided in Section 3.07
8of the Senior Citizens and Persons with Disabilities Property
9Tax Relief Act, except that, beginning in assessment year 2001,
10"income" does not include veteran's benefits.
11    "Internal Revenue Code of 1986" means the United States
12Internal Revenue Code of 1986 or any successor law or laws
13relating to federal income taxes in effect for the year
14preceding the taxable year.
15    "Life care facility that qualifies as a cooperative" means
16a facility as defined in Section 2 of the Life Care Facilities
17Act.
18    "Maximum income limitation" means:
19        (1) $35,000 prior to taxable year 1999;
20        (2) $40,000 in taxable years 1999 through 2003;
21        (3) $45,000 in taxable years 2004 through 2005;
22        (4) $50,000 in taxable years 2006 and 2007; and
23        (5) $55,000 in taxable year 2008 and thereafter.
24    "Person with a disability" means a person unable to engage
25in any substantial gainful activity by reason of a medically
26determinable physical or mental impairment that (i) can be

 

 

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1expected to result in death or (ii) has lasted or can be
2expected to last for a continuous period of not less than 12
3months. Persons with a disability applying for the exemption
4under this Section must submit proof of the disability in the
5manner prescribed by the chief county assessment officer. Proof
6that an applicant is eligible to receive disability benefits
7under the federal Social Security Act constitutes proof of
8disability for purposes of this Section. Issuance of an
9Illinois Person with a Disability Identification Card to the
10applicant stating that the possessor is under a Class 2
11disability, as defined in Section 4A of the Illinois
12Identification Card Act, constitutes proof that the person is a
13person with a disability for purposes of this Section.
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 (1) taxable year 1994 for senior citizens
2and (2) taxable year 2016 for persons with a disability, an , a
3senior citizens assessment freeze homestead exemption is
4granted for real property that is improved with a permanent
5structure that is occupied as a residence by an applicant who
6(i) is 65 years of age or older or is a person with a disability
7during the taxable year, (ii) has a household income that does
8not exceed the maximum income limitation, (iii) is liable for
9paying real property taxes on the property, and (iv) is an
10owner of record of the property or has a legal or equitable
11interest in the property as evidenced by a written instrument.
12This homestead exemption shall also apply to a leasehold
13interest in a parcel of property improved with a permanent
14structure that is a single family residence that is occupied as
15a residence by a person who (i) is 65 years of age or older or
16is a person with a disability during the taxable year, (ii) has
17a household income that does not exceed the maximum income
18limitation, (iii) has a legal or equitable ownership interest
19in the property as lessee, and (iv) is liable for the payment
20of real property taxes on that property.
21    In counties of 3,000,000 or more inhabitants, the amount of
22the exemption for all taxable years is the equalized assessed
23value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

 

 

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

 

 

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1    residence in the taxable year for which application is made
2    minus the base amount (ii) multiplied by 0.2.
3    When the applicant is a surviving spouse of an applicant
4for a prior year for the same residence for which an exemption
5under this Section has been granted, the base year and base
6amount for that residence are the same as for the applicant for
7the prior year.
8    Each year at the time the assessment books are certified to
9the County Clerk, the Board of Review or Board of Appeals shall
10give to the County Clerk a list of the assessed values of
11improvements on each parcel qualifying for this exemption that
12were added after the base year for this parcel and that
13increased the assessed value of the property.
14    In the case of land improved with an apartment building
15owned and operated as a cooperative or a building that is a
16life care facility that qualifies as a cooperative, the maximum
17reduction from the equalized assessed value of the property is
18limited to the sum of the reductions calculated for each unit
19occupied as a residence by a person or persons (i) 65 years of
20age or older or with a disability, (ii) with a household income
21that does not exceed the maximum income limitation, (iii) who
22is liable, by contract with the owner or owners of record, for
23paying real property taxes on the property, and (iv) who is an
24owner of record of a legal or equitable interest in the
25cooperative apartment building, other than a leasehold
26interest. In the instance of a cooperative where a homestead

 

 

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1exemption has been granted under this Section, the cooperative
2association or its management firm shall credit the savings
3resulting from that exemption only to the apportioned tax
4liability of the owner who qualified for the exemption. Any
5person who willfully refuses to credit that savings to an owner
6who qualifies for the exemption is guilty of a Class B
7misdemeanor.
8    When a homestead exemption has been granted under this
9Section and an applicant then becomes a resident of a facility
10licensed under the Assisted Living and Shared Housing Act, the
11Nursing Home Care Act, the Specialized Mental Health
12Rehabilitation Act of 2013, the ID/DD Community Care Act, or
13the MC/DD Act, the exemption shall be granted in subsequent
14years so long as the residence (i) continues to be occupied by
15the qualified applicant's spouse or (ii) if remaining
16unoccupied, is still owned by the qualified applicant for the
17homestead exemption.
18    Beginning January 1, 1997 for senior citizens and January
191, 2016 for persons with a disability, when an individual dies
20who would have qualified for an exemption under this Section,
21and the surviving spouse does not independently qualify for
22this exemption because of age or nondisability, the exemption
23under this Section shall be granted to the surviving spouse for
24the taxable year preceding and the taxable year of the death,
25provided that, except for age or nondisability, the surviving
26spouse meets all other qualifications for the granting of this

 

 

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1exemption for those years.
2    When married persons maintain separate residences, the
3exemption provided for in this Section may be claimed by only
4one of such persons and for only one residence.
5    For taxable year 1994 only, in counties having less than
63,000,000 inhabitants, to receive the exemption, a person shall
7submit an application by February 15, 1995 to the Chief County
8Assessment Officer of the county in which the property is
9located. In counties having 3,000,000 or more inhabitants, for
10taxable year 1994 and all subsequent taxable years, to receive
11the exemption, a person may submit an application to the Chief
12County Assessment Officer of the county in which the property
13is located during such period as may be specified by the Chief
14County Assessment Officer. The Chief County Assessment Officer
15in counties of 3,000,000 or more inhabitants shall annually
16give notice of the application period by mail or by
17publication. In counties having less than 3,000,000
18inhabitants, beginning with taxable year 1995 and thereafter,
19to receive the exemption, a person shall submit an application
20by July 1 of each taxable year to the Chief County Assessment
21Officer of the county in which the property is located. A
22county may, by ordinance, establish a date for submission of
23applications that is different than July 1. The applicant shall
24submit with the application an affidavit of the applicant's
25total household income, age, marital status (and if married the
26name and address of the applicant's spouse, if known),

 

 

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1disability (if applying for the exemption as a person with a
2disability), and principal dwelling place of members of the
3household on January 1 of the taxable year. The Department
4shall establish, by rule, a method for verifying the accuracy
5of affidavits filed by applicants under this Section, and the
6Chief County Assessment Officer may conduct audits of any
7taxpayer claiming an exemption under this Section to verify
8that the taxpayer is eligible to receive the exemption. Each
9application shall contain or be verified by a written
10declaration that it is made under the penalties of perjury. A
11taxpayer's signing a fraudulent application under this Act is
12perjury, as defined in Section 32-2 of the Criminal Code of
132012. The applications shall be clearly marked as applications
14for the Senior Citizens Assessment Freeze Homestead Exemption
15for Senior Citizens and Persons with a Disability and must
16contain a notice that any taxpayer who receives the exemption
17is subject to an audit by the Chief County Assessment Officer.
18    Notwithstanding any other provision to the contrary, in
19counties having fewer than 3,000,000 inhabitants, if an
20applicant fails to file the application required by this
21Section in a timely manner and this failure to file is due to a
22mental or physical condition sufficiently severe so as to
23render the applicant incapable of filing the application in a
24timely manner, the Chief County Assessment Officer may extend
25the filing deadline for a period of 30 days after the applicant
26regains the capability to file the application, but in no case

 

 

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1may the filing deadline be extended beyond 3 months of the
2original filing deadline. In order to receive the extension
3provided in this paragraph, the applicant shall provide the
4Chief County Assessment Officer with a signed statement from
5the applicant's physician stating the nature and extent of the
6condition, that, in the physician's opinion, the condition was
7so severe that it rendered the applicant incapable of filing
8the application in a timely manner, and the date on which the
9applicant regained the capability to file the application.
10    Beginning January 1, 1998, notwithstanding any other
11provision to the contrary, in counties having fewer than
123,000,000 inhabitants, if an applicant fails to file the
13application required by this Section in a timely manner and
14this failure to file is due to a mental or physical condition
15sufficiently severe so as to render the applicant incapable of
16filing the application in a timely manner, the Chief County
17Assessment Officer may extend the filing deadline for a period
18of 3 months. In order to receive the extension provided in this
19paragraph, the applicant shall provide the Chief County
20Assessment Officer with a signed statement from the applicant's
21physician stating the nature and extent of the condition, and
22that, in the physician's opinion, the condition was so severe
23that it rendered the applicant incapable of filing the
24application in a timely manner.
25    In counties having less than 3,000,000 inhabitants, if an
26applicant was denied an exemption in taxable year 1994 and the

 

 

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1denial occurred due to an error on the part of an assessment
2official, or his or her agent or employee, then beginning in
3taxable year 1997 the applicant's base year, for purposes of
4determining the amount of the exemption, shall be 1993 rather
5than 1994. In addition, in taxable year 1997, the applicant's
6exemption shall also include an amount equal to (i) the amount
7of any exemption denied to the applicant in taxable year 1995
8as a result of using 1994, rather than 1993, as the base year,
9(ii) the amount of any exemption denied to the applicant in
10taxable year 1996 as a result of using 1994, rather than 1993,
11as the base year, and (iii) the amount of the exemption
12erroneously denied for taxable year 1994.
13    For purposes of this Section, a person who will be 65 years
14of age during the current taxable year or is a person with a
15disability during the taxable year shall be eligible to apply
16for the homestead exemption during that taxable year.
17Application shall be made during the application period in
18effect for the county of his or her residence.
19    The Chief County Assessment Officer may determine the
20eligibility of a life care facility that qualifies as a
21cooperative to receive the benefits provided by this Section by
22use of an affidavit, application, visual inspection,
23questionnaire, or other reasonable method in order to insure
24that the tax savings resulting from the exemption are credited
25by the management firm to the apportioned tax liability of each
26qualifying resident. The Chief County Assessment Officer may

 

 

HB6234- 28 -LRB099 18244 HLH 42614 b

1request reasonable proof that the management firm has so
2credited that exemption.
3    Except as provided in this Section, all information
4received by the chief county assessment officer or the
5Department from applications filed under this Section, or from
6any investigation conducted under the provisions of this
7Section, shall be confidential, except for official purposes or
8pursuant to official procedures for collection of any State or
9local tax or enforcement of any civil or criminal penalty or
10sanction imposed by this Act or by any statute or ordinance
11imposing a State or local tax. Any person who divulges any such
12information in any manner, except in accordance with a proper
13judicial order, is guilty of a Class A misdemeanor.
14    Nothing contained in this Section shall prevent the
15Director or chief county assessment officer from publishing or
16making available reasonable statistics concerning the
17operation of the exemption contained in this Section in which
18the contents of claims are grouped into aggregates in such a
19way that information contained in any individual claim shall
20not be disclosed.
21    (d) Each Chief County Assessment Officer shall annually
22publish a notice of availability of the exemption provided
23under this Section. The notice shall be published at least 60
24days but no more than 75 days prior to the date on which the
25application must be submitted to the Chief County Assessment
26Officer of the county in which the property is located. The

 

 

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1notice shall appear in a newspaper of general circulation in
2the county.
3    Notwithstanding Sections 6 and 8 of the State Mandates Act,
4no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
799-180, eff. 7-29-15; revised 10-21-15.)
 
8    (35 ILCS 200/15-175)
9    Sec. 15-175. General homestead exemption.
10    (a) Except as provided in Sections 15-176 and 15-177,
11homestead property is entitled to an annual homestead exemption
12limited, except as described here with relation to
13cooperatives, to a reduction in the equalized assessed value of
14homestead property equal to the increase in equalized assessed
15value for the current assessment year above the equalized
16assessed value of the property for 1977, up to the maximum
17reduction set forth below. If however, the 1977 equalized
18assessed value upon which taxes were paid is subsequently
19determined by local assessing officials, the Property Tax
20Appeal Board, or a court to have been excessive, the equalized
21assessed value which should have been placed on the property
22for 1977 shall be used to determine the amount of the
23exemption.
24    (b) Except as provided in Section 15-176, the maximum
25reduction before taxable year 2004 shall be $4,500 in counties

 

 

HB6234- 30 -LRB099 18244 HLH 42614 b

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 an a senior citizens assessment
14freeze homestead exemption for senior citizens and persons with
15a disability under Section 15-172 or a long-time occupant
16homestead exemption under Section 15-177, there shall be an
17additional exemption of $5,000 for owners with a household
18income of $30,000 or less.
19    (c) In counties with fewer than 3,000,000 inhabitants, if,
20based on the most recent assessment, the equalized assessed
21value of the homestead property for the current assessment year
22is greater than the equalized assessed value of the property
23for 1977, the owner of the property shall automatically receive
24the exemption granted under this Section in an amount equal to
25the increase over the 1977 assessment up to the maximum
26reduction set forth in this Section.

 

 

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1    (d) If in any assessment year beginning with the 2000
2assessment year, homestead property has a pro-rata valuation
3under Section 9-180 resulting in an increase in the assessed
4valuation, a reduction in equalized assessed valuation equal to
5the increase in equalized assessed value of the property for
6the year of the pro-rata valuation above the equalized assessed
7value of the property for 1977 shall be applied to the property
8on a proportionate basis for the period the property qualified
9as homestead property during the assessment year. The maximum
10proportionate homestead exemption shall not exceed the maximum
11homestead exemption allowed in the county under this Section
12divided by 365 and multiplied by the number of days the
13property qualified as homestead property.
14    (e) The chief county assessment officer may, when
15considering whether to grant a leasehold exemption under this
16Section, require the following conditions to be met:
17        (1) that a notarized application for the exemption,
18    signed by both the owner and the lessee of the property,
19    must be submitted each year during the application period
20    in effect for the county in which the property is located;
21        (2) that a copy of the lease must be filed with the
22    chief county assessment officer by the owner of the
23    property at the time the notarized application is
24    submitted;
25        (3) that the lease must expressly state that the lessee
26    is liable for the payment of property taxes; and

 

 

HB6234- 32 -LRB099 18244 HLH 42614 b

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

 

 

HB6234- 33 -LRB099 18244 HLH 42614 b

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

 

 

HB6234- 34 -LRB099 18244 HLH 42614 b

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

 

 

HB6234- 35 -LRB099 18244 HLH 42614 b

1Department shall issue guidelines establishing a method for
2verifying the accuracy of the affidavits filed by applicants
3under this paragraph. The applications shall be clearly marked
4as applications for the Additional General Homestead
5Exemption.
6    (i-5) This subsection (i-5) applies to counties with
73,000,000 or more inhabitants. In the event of a sale of
8homestead property, the homestead exemption shall remain in
9effect for the remainder of the assessment year of the sale.
10Upon receipt of a transfer declaration transmitted by the
11recorder pursuant to Section 31-30 of the Real Estate Transfer
12Tax Law for property receiving an exemption under this Section,
13the assessor shall mail a notice and forms to the new owner of
14the property providing information pertaining to the rules and
15applicable filing periods for applying or reapplying for
16homestead exemptions under this Code for which the property may
17be eligible. If the new owner fails to apply or reapply for a
18homestead exemption during the applicable filing period or the
19property no longer qualifies for an existing homestead
20exemption, the assessor shall cancel such exemption for any
21ensuing assessment year.
22    (j) In counties with fewer than 3,000,000 inhabitants, in
23the event of a sale of homestead property the homestead
24exemption shall remain in effect for the remainder of the
25assessment year of the sale. The assessor or chief county
26assessment officer may require the new owner of the property to

 

 

HB6234- 36 -LRB099 18244 HLH 42614 b

1apply for the homestead exemption for the following assessment
2year.
3    (k) Notwithstanding Sections 6 and 8 of the State Mandates
4Act, no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
7eff. 7-27-15; 99-164, eff. 7-28-15; revised 8-25-15.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.