Illinois General Assembly - Full Text of HB3684
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Full Text of HB3684  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/22/2021, by Rep. Martin McLaughlin - Chris Bos


35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that, for taxable years 2022 and thereafter, the maximum reduction is $10,000 in all counties. Effective immediately.

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HB3684LRB102 13586 HLH 18934 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 Property Tax Code is amended by changing
5Section 15-175 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
10exemption limited, except as described here with relation to
11cooperatives or life care facilities, to a reduction in the
12equalized assessed value of homestead property equal to the
13increase in equalized assessed value for the current
14assessment year above the equalized assessed value of the
15property for 1977, up to the maximum reduction set forth
16below. If however, the 1977 equalized assessed value upon
17which taxes were paid is subsequently determined by local
18assessing officials, the Property Tax Appeal Board, or a court
19to have been excessive, the equalized assessed value which
20should have been placed on the property for 1977 shall be used
21to determine the amount of the exemption.
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,
3for taxable years 2004 through 2007, the maximum reduction
4shall be $5,000, for taxable year 2008, the maximum reduction
5is $5,500, and, for taxable years 2009 through 2011, the
6maximum reduction is $6,000 in all counties. For taxable years
72012 through 2016, the maximum reduction is $7,000 in counties
8with 3,000,000 or more inhabitants and $6,000 in all other
9counties. For taxable years 2017 through 2021 and thereafter,
10the maximum reduction is $10,000 in counties with 3,000,000 or
11more inhabitants and $6,000 in all other counties. For taxable
12years 2022 and thereafter, the maximum reduction is $10,000 in
13all counties. If a county has elected to subject itself to the
14provisions of Section 15-176 as provided in subsection (k) of
15that Section, then, for the first taxable year only after the
16provisions of Section 15-176 no longer apply, for owners who,
17for the taxable year, have not been granted a senior citizens
18assessment freeze homestead exemption under Section 15-172 or
19a long-time occupant homestead exemption under Section 15-177,
20there shall be an additional exemption of $5,000 for owners
21with a household income of $30,000 or less.
22    (c) In counties with fewer than 3,000,000 inhabitants, if,
23based on the most recent assessment, the equalized assessed
24value of the homestead property for the current assessment
25year is greater than the equalized assessed value of the
26property for 1977, the owner of the property shall



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1automatically receive the exemption granted under this Section
2in an amount equal to the increase over the 1977 assessment up
3to the maximum reduction set forth in this Section.
4    (d) If in any assessment year beginning with the 2000
5assessment year, homestead property has a pro-rata valuation
6under Section 9-180 resulting in an increase in the assessed
7valuation, a reduction in equalized assessed valuation equal
8to the increase in equalized assessed value of the property
9for the year of the pro-rata valuation above the equalized
10assessed value of the property for 1977 shall be applied to the
11property on a proportionate basis for the period the property
12qualified as homestead property during the assessment year.
13The maximum proportionate homestead exemption shall not exceed
14the maximum homestead exemption allowed in the county under
15this Section divided by 365 and multiplied by the number of
16days the property qualified as homestead property.
17    (d-1) In counties with 3,000,000 or more inhabitants,
18where the chief county assessment officer provides a notice of
19discovery, if a property is not occupied by its owner as a
20principal residence as of January 1 of the current tax year,
21then the property owner shall notify the chief county
22assessment officer of that fact on a form prescribed by the
23chief county assessment officer. That notice must be received
24by the chief county assessment officer on or before March 1 of
25the collection year. If mailed, the form shall be sent by
26certified mail, return receipt requested. If the form is



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1provided in person, the chief county assessment officer shall
2provide a date stamped copy of the notice. Failure to provide
3timely notice pursuant to this subsection (d-1) shall result
4in the exemption being treated as an erroneous exemption. Upon
5timely receipt of the notice for the current tax year, no
6exemption shall be applied to the property for the current tax
7year. If the exemption is not removed upon timely receipt of
8the notice by the chief assessment officer, then the error is
9considered granted as a result of a clerical error or omission
10on the part of the chief county assessment officer as
11described in subsection (h) of Section 9-275, and the property
12owner shall not be liable for the payment of interest and
13penalties due to the erroneous exemption for the current tax
14year for which the notice was filed after the date that notice
15was timely received pursuant to this subsection. Notice
16provided under this subsection shall not constitute a defense
17or amnesty for prior year erroneous exemptions.
18    For the purposes of this subsection (d-1):
19    "Collection year" means the year in which the first and
20second installment of the current tax year is billed.
21    "Current tax year" means the year prior to the collection
23    (e) The chief county assessment officer may, when
24considering whether to grant a leasehold exemption under this
25Section, require the following conditions to be met:
26        (1) that a notarized application for the exemption,



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1    signed by both the owner and the lessee of the property,
2    must be submitted each year during the application period
3    in effect for the county in which the property is located;
4        (2) that a copy of the lease must be filed with the
5    chief county assessment officer by the owner of the
6    property at the time the notarized application is
7    submitted;
8        (3) that the lease must expressly state that the
9    lessee is liable for the payment of property taxes; and
10        (4) that the lease must include the following language
11    in substantially the following form:
12            "Lessee shall be liable for the payment of real
13        estate taxes with respect to the residence in
14        accordance with the terms and conditions of Section
15        15-175 of the Property Tax Code (35 ILCS 200/15-175).
16        The permanent real estate index number for the
17        premises is (insert number), and, according to the
18        most recent property tax bill, the current amount of
19        real estate taxes associated with the premises is
20        (insert amount) per year. The parties agree that the
21        monthly rent set forth above shall be increased or
22        decreased pro rata (effective January 1 of each
23        calendar year) to reflect any increase or decrease in
24        real estate taxes. Lessee shall be deemed to be
25        satisfying Lessee's liability for the above mentioned
26        real estate taxes with the monthly rent payments as



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1        set forth above (or increased or decreased as set
2        forth herein).".
3    In addition, if there is a change in lessee, or if the
4lessee vacates the property, then the chief county assessment
5officer may require the owner of the property to notify the
6chief county assessment officer of that change.
7    This subsection (e) does not apply to leasehold interests
8in property owned by a municipality.
9    (f) "Homestead property" under this Section includes
10residential property that is occupied by its owner or owners
11as his or their principal dwelling place, or that is a
12leasehold interest on which a single family residence is
13situated, which is occupied as a residence by a person who has
14an ownership interest therein, legal or equitable or as a
15lessee, and on which the person is liable for the payment of
16property taxes. For land improved with an apartment building
17owned and operated as a cooperative, the maximum reduction
18from the equalized assessed value shall be limited to the
19increase in the value above the equalized assessed value of
20the property for 1977, up to the maximum reduction set forth
21above, multiplied by the number of apartments or units
22occupied by a person or persons who is liable, by contract with
23the owner or owners of record, for paying property taxes on the
24property and is an owner of record of a legal or equitable
25interest in the cooperative apartment building, other than a
26leasehold interest. For land improved with a life care



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1facility, the maximum reduction from the value of the
2property, as equalized by the Department, shall be multiplied
3by the number of apartments or units occupied by a person or
4persons, irrespective of any legal, equitable, or leasehold
5interest in the facility, who are liable, under a life care
6contract with the owner or owners of record of the facility,
7for paying property taxes on the property. For purposes of
8this Section, the term "life care facility" has the meaning
9stated in Section 15-170.
10    "Household", as used in this Section, means the owner, the
11spouse of the owner, and all persons using the residence of the
12owner as their principal place of residence.
13    "Household income", as used in this Section, means the
14combined income of the members of a household for the calendar
15year preceding the taxable year.
16    "Income", as used in this Section, has the same meaning as
17provided in Section 3.07 of the Senior Citizens and Persons
18with Disabilities Property Tax Relief Act, except that
19"income" does not include veteran's benefits.
20    (g) In a cooperative or life care facility where a
21homestead exemption has been granted, the cooperative
22association or the management of the cooperative or life care
23facility shall credit the savings resulting from that
24exemption only to the apportioned tax liability of the owner
25or resident who qualified for the exemption. Any person who
26willfully refuses to so credit the savings shall be guilty of a



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1Class B misdemeanor.
2    (h) Where married persons maintain and reside in separate
3residences qualifying as homestead property, each residence
4shall receive 50% of the total reduction in equalized assessed
5valuation provided by this Section.
6    (i) In all counties, the assessor or chief county
7assessment officer may determine the eligibility of
8residential property to receive the homestead exemption and
9the amount of the exemption by application, visual inspection,
10questionnaire or other reasonable methods. The determination
11shall be made in accordance with guidelines established by the
12Department, provided that the taxpayer applying for an
13additional general exemption under this Section shall submit
14to the chief county assessment officer an application with an
15affidavit of the applicant's total household income, age,
16marital status (and, if married, the name and address of the
17applicant's spouse, if known), and principal dwelling place of
18members of the household on January 1 of the taxable year. The
19Department shall issue guidelines establishing a method for
20verifying the accuracy of the affidavits filed by applicants
21under this paragraph. The applications shall be clearly marked
22as applications for the Additional General Homestead
24    (i-5) This subsection (i-5) applies to counties with
253,000,000 or more inhabitants. In the event of a sale of
26homestead property, the homestead exemption shall remain in



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1effect for the remainder of the assessment year of the sale.
2Upon receipt of a transfer declaration transmitted by the
3recorder pursuant to Section 31-30 of the Real Estate Transfer
4Tax Law for property receiving an exemption under this
5Section, the assessor shall mail a notice and forms to the new
6owner of the property providing information pertaining to the
7rules and applicable filing periods for applying or reapplying
8for homestead exemptions under this Code for which the
9property may be eligible. If the new owner fails to apply or
10reapply for a homestead exemption during the applicable filing
11period or the property no longer qualifies for an existing
12homestead exemption, the assessor shall cancel such exemption
13for any ensuing assessment year.
14    (j) In counties with fewer than 3,000,000 inhabitants, in
15the event of a sale of homestead property the homestead
16exemption shall remain in effect for the remainder of the
17assessment year of the sale. The assessor or chief county
18assessment officer may require the new owner of the property
19to apply for the homestead exemption for the following
20assessment year.
21    (k) 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    (l) The changes made to this Section by this amendatory
25Act of the 100th General Assembly are effective for the 2018
26tax year and thereafter.



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1(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
299-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
38-25-17; 100-1077, eff. 1-1-19.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.