Full Text of HB3070 103rd General Assembly
HB3070 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3070 Introduced 2/17/2023, by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. In provisions concerning the long-time occupant homestead exemption, provides that for tax year 2024 and thereafter, the exemption applies to qualified taxpayers with a household income of $85,000 or less and is based on an increase of 5% for each taxable year after the base year. Removes provisions providing that a qualified taxpayer may not receive the long-time occupant homestead exemption and certain other exemptions. Provides that qualified taxpayers need not reapply for the long-time occupant homestead exemption on an annual basis. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-177 as follows: | 6 | | (35 ILCS 200/15-177) | 7 | | Sec. 15-177. The long-time occupant homestead exemption. | 8 | | (a) If the county has elected, under Section 15-176, to be | 9 | | subject to the provisions of the alternative general homestead | 10 | | exemption, then, for taxable years 2007 and thereafter, | 11 | | regardless of whether the exemption under Section 15-176 | 12 | | applies, qualified homestead property is
entitled to
an annual | 13 | | homestead exemption equal to a reduction in the property's | 14 | | equalized
assessed
value calculated as provided in this | 15 | | Section. | 16 | | (b) As used in this Section: | 17 | | "Adjusted homestead value" means , for tax years before | 18 | | 2024, the lesser of
the following values: | 19 | | (1) The property's base homestead value increased
by: | 20 | | (i) 10% for each taxable year after the base year through | 21 | | and including the current tax year for qualified taxpayers | 22 | | with a household income of more than $75,000 but not | 23 | | exceeding $100,000; or (ii) 7% for each taxable year after |
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| 1 | | the base year through and including the current tax year | 2 | | for qualified taxpayers with a household income of $75,000 | 3 | | or less. The increase each year is an increase over the | 4 | | prior year; or | 5 | | (2) The property's equalized assessed value for
the | 6 | | current tax year minus the general homestead deduction. | 7 | | "Adjusted homestead value" means, for tax year 2024 and | 8 | | thereafter, the lesser of
the following values: | 9 | | (1) The property's base homestead value increased
by | 10 | | 5% for each taxable year after the base year through and | 11 | | including the current tax year for qualified taxpayers | 12 | | with a household income of $85,000 or less. The increase | 13 | | each year is an increase over the prior year; or | 14 | | (2) The property's equalized assessed value for
the | 15 | | current tax year minus the general homestead deduction. | 16 | | "Base homestead value" means: | 17 | | (1) if the property did not have an adjusted homestead | 18 | | value under Section 15-176 for the base year, then an | 19 | | amount equal to the equalized assessed value of the | 20 | | property for the base year prior to exemptions, minus the | 21 | | general homestead deduction, provided that the property's | 22 | | assessment was not based on a reduced assessed value | 23 | | resulting from a temporary irregularity in the property | 24 | | for that year; or | 25 | | (2) if the property had an adjusted homestead value | 26 | | under Section 15-176 for the base year, then an amount |
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| 1 | | equal to the adjusted homestead value of the property | 2 | | under Section 15-176 for the base year. | 3 | | "Base year" means the taxable year prior to the taxable | 4 | | year in which the taxpayer first qualifies for the exemption | 5 | | under this Section. | 6 | | "Current taxable year" means the taxable year for which
| 7 | | the exemption under this Section is being applied. | 8 | | "Equalized assessed value" means the property's
assessed | 9 | | value as equalized by the Department. | 10 | | "Homestead" or "homestead property" means residential | 11 | | property that as of January 1 of
the tax year is occupied by a | 12 | | qualified taxpayer as his or her principal dwelling place, or | 13 | | that is a leasehold interest on which a single family | 14 | | residence is situated, that is occupied as a residence by a | 15 | | qualified taxpayer who has a legal or equitable interest | 16 | | therein evidenced by a written instrument, as an owner or as a | 17 | | lessee, and on which the person is liable for the payment of | 18 | | property taxes. Residential units in an apartment building | 19 | | owned and operated as a cooperative, or as a life care | 20 | | facility, which are occupied by persons who hold a legal or | 21 | | equitable interest in the cooperative apartment building or | 22 | | life care facility as owners or lessees, and who are liable by | 23 | | contract for the payment of property taxes, are included | 24 | | within this definition of homestead property. A homestead | 25 | | includes the dwelling place,
appurtenant structures, and so | 26 | | much of the surrounding land constituting the parcel on which |
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| 1 | | the dwelling place is situated as is used for residential | 2 | | purposes. If the assessor has established a specific legal | 3 | | description for a portion of property constituting the | 4 | | homestead, then the homestead is limited to the property | 5 | | within that description. | 6 | | "Household income" has the meaning set forth under Section | 7 | | 15-172 of this Code.
| 8 | | "General homestead deduction" means the amount of the | 9 | | general homestead exemption under Section 15-175.
| 10 | | "Life care facility" means a facility defined
in Section 2 | 11 | | of the Life Care Facilities Act. | 12 | | "Qualified homestead property" means homestead property | 13 | | owned by a qualified taxpayer.
| 14 | | "Qualified taxpayer" means any individual: | 15 | | (1) who, for at least 10 continuous years as of | 16 | | January 1 of the taxable year, has occupied the same | 17 | | homestead property as a principal residence and domicile | 18 | | or who, for at least 5 continuous years as of January 1 of | 19 | | the taxable year, has occupied the same homestead property | 20 | | as a principal residence and domicile if that person | 21 | | received assistance in the acquisition of the property as | 22 | | part of a government or nonprofit housing program; and | 23 | | (2) who has a household income of $100,000 or less.
| 24 | | (c) The base homestead value must remain constant, except | 25 | | that the assessor may revise it under any of the following | 26 | | circumstances: |
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| 1 | | (1) If the equalized assessed value of a homestead
| 2 | | property for the current tax year is less than the | 3 | | previous base homestead value for that property, then the | 4 | | current equalized assessed value (provided it is not based | 5 | | on a reduced assessed value resulting from a temporary | 6 | | irregularity in the property) becomes the base homestead | 7 | | value in subsequent tax years. | 8 | | (2) For any year in which new buildings, structures,
| 9 | | or other improvements are constructed on the homestead | 10 | | property that would increase its assessed value, the | 11 | | assessor shall adjust the base homestead value with due | 12 | | regard to the value added by the new improvements. | 13 | | (d) The amount of the exemption under this Section is the | 14 | | greater of: (i) the equalized assessed value of the homestead | 15 | | property for the current tax year minus the adjusted homestead | 16 | | value; or (ii) the general homestead deduction. | 17 | | (e) In the case of an apartment building owned and | 18 | | operated as a cooperative, or as a life care facility, that | 19 | | contains residential units that qualify as homestead property | 20 | | of a qualified taxpayer under this Section, the maximum | 21 | | cumulative exemption amount attributed to the entire building | 22 | | or facility shall not exceed the sum of the exemptions | 23 | | calculated for each unit that is a qualified homestead | 24 | | property. The cooperative association, management firm, or | 25 | | other person or entity that manages or controls the | 26 | | cooperative apartment building or life care facility shall |
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| 1 | | credit the exemption attributable to each residential unit | 2 | | only to the apportioned tax liability of the qualified | 3 | | taxpayer as to that unit. Any person who willfully refuses to | 4 | | so credit the exemption is guilty of a Class B misdemeanor. | 5 | | (f) When married persons maintain separate residences, the | 6 | | exemption provided under this Section may be claimed by only | 7 | | one such person and for only one residence. No person who | 8 | | receives an exemption under Section 15-172 of this Code may | 9 | | receive an exemption under this Section. No person who | 10 | | receives an exemption under this Section may receive an | 11 | | exemption under Section 15-175 or 15-176 of this Code. | 12 | | (g) In the event of a sale or other transfer in ownership | 13 | | of the homestead property between spouses or between a parent | 14 | | and a child, the exemption under this Section remains in | 15 | | effect if the new owner has a household income of $100,000 or | 16 | | less. | 17 | | (h) In the event of a sale or other transfer in ownership | 18 | | of the homestead property other than subsection (g) of this | 19 | | Section, the exemption under this Section shall remain in | 20 | | effect for the remainder of the tax year and be calculated | 21 | | using the same base homestead value in which the sale or | 22 | | transfer occurs.
| 23 | | (i) To receive the exemption, a person must submit an | 24 | | application to the county assessor during the period specified | 25 | | by the county assessor. For taxable year 2024 and thereafter, | 26 | | qualified taxpayers need not reapply on an annual basis; |
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| 1 | | however, they must notify the chief county assessment officer | 2 | | if the property is sold, transferred, or conveyed, or if the | 3 | | property no longer qualifies for the exemption under this | 4 | | Section. | 5 | | The county assessor shall annually give notice of the | 6 | | application period by mail or by publication. | 7 | | The taxpayer must submit, with the application, an | 8 | | affidavit of the taxpayer's total household income, marital | 9 | | status (and if married the name and address of the applicant's | 10 | | spouse, if known), and principal dwelling place of members of | 11 | | the household on January 1 of the taxable year. The Department | 12 | | shall establish, by rule, a method for verifying the accuracy | 13 | | of affidavits filed by applicants under this Section, and the | 14 | | Chief County Assessment Officer may conduct audits of any | 15 | | taxpayer claiming an exemption under this Section to verify | 16 | | that the taxpayer is eligible to receive the exemption. Each | 17 | | application shall contain or be verified by a written | 18 | | declaration that it is made under the penalties of perjury. A | 19 | | taxpayer's signing a fraudulent application under this Act is | 20 | | perjury, as defined in Section 32-2 of the Criminal Code of | 21 | | 2012. The applications shall be clearly marked as applications | 22 | | for the Long-time Occupant Homestead Exemption and must | 23 | | contain a notice that any taxpayer who receives the exemption | 24 | | is subject to an audit by the Chief County Assessment Officer. | 25 | | (j) Notwithstanding Sections 6 and 8 of the State Mandates | 26 | | Act, no reimbursement by the State is required for the |
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| 1 | | implementation of any mandate created by this Section.
| 2 | | (Source: P.A. 97-1150, eff. 1-25-13.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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