Illinois General Assembly - Full Text of HB2434
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Full Text of HB2434  99th General Assembly




State of Illinois
2015 and 2016


Introduced 2/17/2015, by Rep. Dwight Kay


35 ILCS 200/15-170

    Amends the Property Tax Code. Increases the maximum reduction under the Senior Citizens Homestead Exemption from $5,000 to $7,000 for taxable year 2015 and indexes the reduction to the Consumer Price Index. Effective immediately.

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HB2434LRB099 03790 HLH 23803 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 15-170 as follows:
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior Citizens Homestead Exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable



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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500. For taxable years 2008 through 2011,
4the maximum reduction is $4,000 in all counties. For taxable
5year 2012, the maximum reduction is $5,000 in counties with
63,000,000 or more inhabitants and $4,000 in all other counties.
7For taxable years 2013 and 2014 thereafter, the maximum
8reduction is $5,000 in all counties. For taxable year 2015, the
9maximum reduction is $7,000 in all counties. For taxable years
102016 and thereafter, the maximum reduction is the maximum
11reduction for the prior taxable year increased by the annual
12rate of increase, for the previous calendar year, of the
13Consumer Price Index for All Urban Consumers for all items,
14published by the United States Bureau of Labor Statistics.
15    For land improved with an apartment building owned and
16operated as a cooperative, the maximum reduction from the value
17of the property, as equalized by the Department, shall be
18multiplied by the number of apartments or units occupied by a
19person 65 years of age or older who is liable, by contract with
20the owner or owners of record, for paying property taxes on the
21property and is an owner of record of a legal or equitable
22interest in the cooperative apartment building, other than a
23leasehold interest. For land improved with a life care
24facility, the maximum reduction from the value of the property,
25as equalized by the Department, shall be multiplied by the
26number of apartments or units occupied by persons 65 years of



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1age or older, irrespective of any legal, equitable, or
2leasehold interest in the facility, who are liable, under a
3contract with the owner or owners of record of the facility,
4for paying property taxes on the property. In a cooperative or
5a life care facility where a homestead exemption has been
6granted, the cooperative association or the management firm of
7the cooperative or facility shall credit the savings resulting
8from that exemption only to the apportioned tax liability of
9the owner or resident who qualified for the exemption. Any
10person who willfully refuses to so credit the savings shall be
11guilty of a Class B misdemeanor. Under this Section and
12Sections 15-175, 15-176, and 15-177, "life care facility" means
13a facility, as defined in Section 2 of the Life Care Facilities
14Act, with which the applicant for the homestead exemption has a
15life care contract as defined in that Act.
16    When a homestead exemption has been granted under this
17Section and the person qualifying subsequently becomes a
18resident of a facility licensed under the Assisted Living and
19Shared Housing Act, the Nursing Home Care Act, the Specialized
20Mental Health Rehabilitation Act of 2013, or the ID/DD
21Community Care Act, the exemption shall continue so long as the
22residence continues to be occupied by the qualifying person's
23spouse if the spouse is 65 years of age or older, or if the
24residence remains unoccupied but is still owned by the person
25qualified for the homestead exemption.
26    A person who will be 65 years of age during the current



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1assessment year shall be eligible to apply for the homestead
2exemption during that assessment year. Application shall be
3made during the application period in effect for the county of
4his residence.
5    Beginning with assessment year 2003, for taxes payable in
62004, property that is first occupied as a residence after
7January 1 of any assessment year by a person who is eligible
8for the senior citizens homestead exemption under this Section
9must be granted a pro-rata exemption for the assessment year.
10The amount of the pro-rata exemption is the exemption allowed
11in the county under this Section divided by 365 and multiplied
12by the number of days during the assessment year the property
13is occupied as a residence by a person eligible for the
14exemption under this Section. The chief county assessment
15officer must adopt reasonable procedures to establish
16eligibility for this pro-rata exemption.
17    The assessor or chief county assessment officer may
18determine the eligibility of a life care facility to receive
19the benefits provided by this Section, by affidavit,
20application, visual inspection, questionnaire or other
21reasonable methods in order to insure that the tax savings
22resulting from the exemption are credited by the management
23firm to the apportioned tax liability of each qualifying
24resident. The assessor may request reasonable proof that the
25management firm has so credited the exemption.
26    The chief county assessment officer of each county with



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1less than 3,000,000 inhabitants shall provide to each person
2allowed a homestead exemption under this Section a form to
3designate any other person to receive a duplicate of any notice
4of delinquency in the payment of taxes assessed and levied
5under this Code on the property of the person receiving the
6exemption. The duplicate notice shall be in addition to the
7notice required to be provided to the person receiving the
8exemption, and shall be given in the manner required by this
9Code. The person filing the request for the duplicate notice
10shall pay a fee of $5 to cover administrative costs to the
11supervisor of assessments, who shall then file the executed
12designation with the county collector. Notwithstanding any
13other provision of this Code to the contrary, the filing of
14such an executed designation requires the county collector to
15provide duplicate notices as indicated by the designation. A
16designation may be rescinded by the person who executed such
17designation at any time, in the manner and form required by the
18chief county assessment officer.
19    The assessor or chief county assessment officer may
20determine the eligibility of residential property to receive
21the homestead exemption provided by this Section by
22application, visual inspection, questionnaire or other
23reasonable methods. The determination shall be made in
24accordance with guidelines established by the Department.
25    In counties with 3,000,000 or more inhabitants, beginning
26in taxable year 2010, each taxpayer who has been granted an



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1exemption under this Section must reapply on an annual basis.
2The chief county assessment officer shall mail the application
3to the taxpayer. In counties with less than 3,000,000
4inhabitants, the county board may by resolution provide that if
5a person has been granted a homestead exemption under this
6Section, the person qualifying need not reapply for the
8    In counties with less than 3,000,000 inhabitants, if the
9assessor or chief county assessment officer requires annual
10application for verification of eligibility for an exemption
11once granted under this Section, the application shall be
12mailed to the taxpayer.
13    The assessor or chief county assessment officer shall
14notify each person who qualifies for an exemption under this
15Section that the person may also qualify for deferral of real
16estate taxes under the Senior Citizens Real Estate Tax Deferral
17Act. The notice shall set forth the qualifications needed for
18deferral of real estate taxes, the address and telephone number
19of county collector, and a statement that applications for
20deferral of real estate taxes may be obtained from the county
22    Notwithstanding Sections 6 and 8 of the State Mandates Act,
23no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
26eff. 7-13-12; 98-7, eff. 4-23-13; 98-104, eff. 7-22-13; 98-756,



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1eff. 7-16-14.)
2    Section 99. Effective date. This Act takes effect upon
3becoming law.