Illinois General Assembly - Full Text of HB3715
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Full Text of HB3715  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Avery Bourne - Mark Batinick - Christine Winger - Sheri L Jesiel


35 ILCS 200/15-175

    Amends the Property Tax Code. Provides that the maximum reduction under the General Homestead Exemption is $7,000, and indexes the maximum reductions in all counties to the Consumer Price Index. Effective immediately.

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HB3715LRB099 07748 HLH 27881 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 exemption
10limited, except as described here with relation to
11cooperatives, to a reduction in the equalized assessed value of
12homestead property equal to the increase in equalized assessed
13value for the current assessment year above the equalized
14assessed value of the property for 1977, up to the maximum
15reduction set forth below. If however, the 1977 equalized
16assessed value upon which taxes were paid is subsequently
17determined by local assessing officials, the Property Tax
18Appeal Board, or a court to have been excessive, the equalized
19assessed value which should have been placed on the property
20for 1977 shall be used to determine the amount of the
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, 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 2014
7thereafter, the maximum reduction is $7,000 in counties with
83,000,000 or more inhabitants and $6,000 in all other counties.
9For taxable year 2015, the maximum reduction in all counties is
10$7,000; 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 in the Consumer
13Price Index for All Urban Consumers for all items published by
14the United States Bureau of Labor Statistics. If a county has
15elected to subject itself to the provisions of Section 15-176
16as provided in subsection (k) of that Section, then, for the
17first taxable year only after the provisions of Section 15-176
18no longer apply, for owners who, for the taxable year, have not
19been granted a senior citizens assessment freeze homestead
20exemption under Section 15-172 or a long-time occupant
21homestead exemption under Section 15-177, there shall be an
22additional exemption of $5,000 for owners with a household
23income of $30,000 or less.
24    (c) In counties with fewer than 3,000,000 inhabitants, if,
25based on the most recent assessment, the equalized assessed
26value of the homestead property for the current assessment year



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



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



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1chief county assessment officer of that change.
2    This subsection (e) does not apply to leasehold interests
3in property owned by a municipality.
4    (f) "Homestead property" under this Section includes
5residential property that is occupied by its owner or owners as
6his or their principal dwelling place, or that is a leasehold
7interest on which a single family residence is situated, which
8is occupied as a residence by a person who has an ownership
9interest therein, legal or equitable or as a lessee, and on
10which the person is liable for the payment of property taxes.
11For land improved with an apartment building owned and operated
12as a cooperative or a building which is a life care facility as
13defined in Section 15-170 and considered to be a cooperative
14under Section 15-170, the maximum reduction from the equalized
15assessed value shall be limited to the increase in the value
16above the equalized assessed value of the property for 1977, up
17to the maximum reduction set forth above, multiplied by the
18number of apartments or units occupied by a person or persons
19who is liable, by contract with the owner or owners of record,
20for paying property taxes on the property and is an owner of
21record of a legal or equitable interest in the cooperative
22apartment building, other than a leasehold interest. For
23purposes of this Section, the term "life care facility" has the
24meaning stated in Section 15-170.
25    "Household", as used in this Section, means the owner, the
26spouse of the owner, and all persons using the residence of the



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



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1the chief county assessment officer an application with an
2affidavit of the applicant's total household income, age,
3marital status (and, if married, the name and address of the
4applicant's spouse, if known), and principal dwelling place of
5members of the household on January 1 of the taxable year. The
6Department shall issue guidelines establishing a method for
7verifying the accuracy of the affidavits filed by applicants
8under this paragraph. The applications shall be clearly marked
9as applications for the Additional General Homestead
11    (j) In counties with fewer than 3,000,000 inhabitants, in
12the event of a sale of homestead property the homestead
13exemption shall remain in effect for the remainder of the
14assessment year of the sale. The assessor or chief county
15assessment officer may require the new owner of the property to
16apply for the homestead exemption for the following assessment
18    (k) Notwithstanding Sections 6 and 8 of the State Mandates
19Act, no reimbursement by the State is required for the
20implementation of any mandate created by this Section.
21(Source: P.A. 97-689, eff. 6-14-12; 97-1125, eff. 8-28-12;
2298-7, eff. 4-23-13; 98-463, eff. 8-16-13.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.