Illinois General Assembly - Full Text of HB2583
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Full Text of HB2583  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/15/2023, by Rep. Amy Elik


35 ILCS 200/15-177

    Amends the Property Tax Code. Provides that the long-time occupant homestead exemption applies in all counties beginning with taxable year 2023. Effective immediately.

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HB2583LRB103 04801 HLH 49811 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 15-177 as follows:
6    (35 ILCS 200/15-177)
7    Sec. 15-177. The long-time occupant homestead exemption.
8    (a) Qualified If the county has elected, under Section
915-176, to be subject to the provisions of the alternative
10general homestead exemption, then, for taxable years 2007 and
11thereafter, regardless of whether the exemption under Section
1215-176 applies, qualified homestead property is entitled to an
13annual homestead exemption equal to a reduction in the
14property's equalized assessed value calculated as provided in
15this Section. If the county has elected, under Section 15-176,
16to be subject to the provisions of the alternative general
17homestead exemption, then this Section applies beginning in
18taxable year 2007, regardless of whether the exemption under
19Section 15-176 applies. In all other counties, this Section
20applies beginning in taxable year 2023.
21    (b) As used in this Section:
22    "Adjusted homestead value" means the lesser of the
23following values:



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



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



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1within that description.
2    "Household income" has the meaning set forth under Section
315-172 of this Code.
4    "General homestead deduction" means the amount of the
5general homestead exemption under Section 15-175.
6    "Life care facility" means a facility defined in Section 2
7of the Life Care Facilities Act.
8    "Qualified homestead property" means homestead property
9owned by a qualified taxpayer.
10    "Qualified taxpayer" means any individual:
11        (1) who, for at least 10 continuous years as of
12    January 1 of the taxable year, has occupied the same
13    homestead property as a principal residence and domicile
14    or who, for at least 5 continuous years as of January 1 of
15    the taxable year, has occupied the same homestead property
16    as a principal residence and domicile if that person
17    received assistance in the acquisition of the property as
18    part of a government or nonprofit housing program; and
19        (2) who has a household income of $100,000 or less.
20    (c) The base homestead value must remain constant, except
21that the assessor may revise it under any of the following
23        (1) If the equalized assessed value of a homestead
24    property for the current tax year is less than the
25    previous base homestead value for that property, then the
26    current equalized assessed value (provided it is not based



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



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1    (f) When married persons maintain separate residences, the
2exemption provided under this Section may be claimed by only
3one such person and for only one residence. No person who
4receives an exemption under Section 15-172 of this Code may
5receive an exemption under this Section. No person who
6receives an exemption under this Section may receive an
7exemption under Section 15-175 or 15-176 of this Code.
8    (g) In the event of a sale or other transfer in ownership
9of the homestead property between spouses or between a parent
10and a child, the exemption under this Section remains in
11effect if the new owner has a household income of $100,000 or
13    (h) In the event of a sale or other transfer in ownership
14of the homestead property other than subsection (g) of this
15Section, the exemption under this Section shall remain in
16effect for the remainder of the tax year and be calculated
17using the same base homestead value in which the sale or
18transfer occurs.
19    (i) To receive the exemption, a person must submit an
20application to the county assessor during the period specified
21by the county assessor.
22    The county assessor shall annually give notice of the
23application period by mail or by publication.
24    The taxpayer must submit, with the application, an
25affidavit of the taxpayer's total household income, marital
26status (and if married the name and address of the applicant's



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1spouse, if known), and principal dwelling place of members of
2the household on January 1 of the taxable year. The Department
3shall establish, by rule, a method for verifying the accuracy
4of affidavits filed by applicants under this Section, and the
5Chief County Assessment Officer may conduct audits of any
6taxpayer claiming an exemption under this Section to verify
7that the taxpayer is eligible to receive the exemption. Each
8application shall contain or be verified by a written
9declaration that it is made under the penalties of perjury. A
10taxpayer's signing a fraudulent application under this Act is
11perjury, as defined in Section 32-2 of the Criminal Code of
122012. The applications shall be clearly marked as applications
13for the Long-time Occupant Homestead Exemption and must
14contain a notice that any taxpayer who receives the exemption
15is subject to an audit by the Chief County Assessment Officer.
16    (j) Notwithstanding Sections 6 and 8 of the State Mandates
17Act, no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 97-1150, eff. 1-25-13.)
20    Section 99. Effective date. This Act takes effect upon
21becoming law.