HB3141 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3141

 

Introduced 2/19/2021, by Rep. Suzanne Ness

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170

    Amends the Property Tax Code. Provides that, for taxable years 2022 and thereafter, the maximum reduction for the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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

 

 

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1$2,000 in all other counties. For taxable years 2004 through
22005, the maximum reduction shall be $3,000 in all counties.
3For taxable years 2006 and 2007, the maximum reduction shall
4be $3,500. For taxable years 2008 through 2011, the maximum
5reduction is $4,000 in all counties. For taxable year 2012,
6the maximum reduction is $5,000 in counties with 3,000,000 or
7more inhabitants and $4,000 in all other counties. For taxable
8years 2013 through 2016, the maximum reduction is $5,000 in
9all counties. For taxable years 2017 through 2021 and
10thereafter, the maximum reduction is $8,000 in counties with
113,000,000 or more inhabitants and $5,000 in all other
12counties. For taxable years 2022 and thereafter, the maximum
13reduction is $8,000 in all counties.
14    (b) For land improved with an apartment building owned and
15operated as a cooperative, the maximum reduction from the
16value of the property, as equalized by the Department, shall
17be multiplied by the number of apartments or units occupied by
18a person 65 years of age or older who is liable, by contract
19with the owner or owners of record, for paying property taxes
20on the property and is an owner of record of a legal or
21equitable interest in the cooperative apartment building,
22other than a leasehold interest. For land improved with a life
23care facility, the maximum reduction from the value of the
24property, as equalized by the Department, shall be multiplied
25by the number of apartments or units occupied by persons 65
26years of age or older, irrespective of any legal, equitable,

 

 

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

 

 

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1exemption during that assessment year. Application shall be
2made during the application period in effect for the county of
3his residence.
4    (e) Beginning with assessment year 2003, for taxes payable
5in 2004, property that is first occupied as a residence after
6January 1 of any assessment year by a person who is eligible
7for the senior citizens homestead exemption under this Section
8must be granted a pro-rata exemption for the assessment year.
9The amount of the pro-rata exemption is the exemption allowed
10in the county under this Section divided by 365 and multiplied
11by the number of days during the assessment year the property
12is occupied as a residence by a person eligible for the
13exemption under this Section. The chief county assessment
14officer must adopt reasonable procedures to establish
15eligibility for this pro-rata exemption.
16    (f) The assessor or chief county assessment officer may
17determine the eligibility of a life care facility to receive
18the benefits provided by this Section, by affidavit,
19application, visual inspection, questionnaire or other
20reasonable methods in order to insure that the tax savings
21resulting from the exemption are credited by the management
22firm to the apportioned tax liability of each qualifying
23resident. The assessor may request reasonable proof that the
24management firm has so credited the exemption.
25    (g) The chief county assessment officer of each county
26with less than 3,000,000 inhabitants shall provide to each

 

 

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1person allowed a homestead exemption under this Section a form
2to designate any other person to receive a duplicate of any
3notice of delinquency in the payment of taxes assessed and
4levied under this Code on the property of the person receiving
5the exemption. The duplicate notice shall be in addition to
6the notice required to be provided to the person receiving the
7exemption, and shall be given in the manner required by this
8Code. The person filing the request for the duplicate notice
9shall pay a fee of $5 to cover administrative costs to the
10supervisor of assessments, who shall then file the executed
11designation with the county collector. Notwithstanding any
12other provision of this Code to the contrary, the filing of
13such an executed designation requires the county collector to
14provide duplicate notices as indicated by the designation. A
15designation may be rescinded by the person who executed such
16designation at any time, in the manner and form required by the
17chief county assessment officer.
18    (h) The assessor or chief county assessment officer may
19determine the eligibility of residential property to receive
20the homestead exemption provided by this Section by
21application, visual inspection, questionnaire or other
22reasonable methods. The determination shall be made in
23accordance with guidelines established by the Department.
24    (i) In counties with 3,000,000 or more inhabitants, for
25taxable years 2010 through 2018, and beginning again in
26taxable year 2024, each taxpayer who has been granted an

 

 

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1exemption under this Section must reapply on an annual basis.
2    If a reapplication is required, then the chief county
3assessment officer shall mail the application to the taxpayer
4at least 60 days prior to the last day of the application
5period for the county.
6    For taxable years 2019 through 2023, in counties with
73,000,000 or more inhabitants, a taxpayer who has been granted
8an exemption under this Section need not reapply. However, if
9the property ceases to be qualified for the exemption under
10this Section in any year for which a reapplication is not
11required under this Section, then the owner of record of the
12property shall notify the chief county assessment officer that
13the property is no longer qualified. In addition, for taxable
14years 2019 through 2023, the chief county assessment officer
15of a county with 3,000,000 or more inhabitants shall enter
16into an intergovernmental agreement with the county clerk of
17that county and the Department of Public Health, as well as any
18other appropriate governmental agency, to obtain information
19that documents the death of a taxpayer who has been granted an
20exemption under this Section. Notwithstanding any other
21provision of law, the county clerk and the Department of
22Public Health shall provide that information to the chief
23county assessment officer. The Department of Public Health
24shall supply this information no less frequently than every
25calendar quarter. Information concerning the death of a
26taxpayer may be shared with the county treasurer. The chief

 

 

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1county assessment officer shall also enter into a data
2exchange agreement with the Social Security Administration or
3its agent to obtain access to the information regarding deaths
4in possession of the Social Security Administration. The chief
5county assessment officer shall, subject to the notice
6requirements under subsection (m) of Section 9-275, terminate
7the exemption under this Section if the information obtained
8indicates that the property is no longer qualified for the
9exemption. In counties with 3,000,000 or more inhabitants, the
10assessor and the county recorder of deeds shall establish
11policies and practices for the regular exchange of information
12for the purpose of alerting the assessor whenever the transfer
13of ownership of any property receiving an exemption under this
14Section has occurred. When such a transfer occurs, the
15assessor shall mail a notice to the new owner of the property
16(i) informing the new owner that the exemption will remain in
17place through the year of the transfer, after which it will be
18canceled, and (ii) providing information pertaining to the
19rules for reapplying for the exemption if the owner qualifies.
20In counties with 3,000,000 or more inhabitants, the chief
21county assessment official shall conduct audits of all
22exemptions granted under this Section no later than December
2331, 2022 and no later than December 31, 2024. The audit shall
24be designed to ascertain whether any senior homestead
25exemptions have been granted erroneously. If it is determined
26that a senior homestead exemption has been erroneously applied

 

 

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1to a property, the chief county assessment officer shall make
2use of the appropriate provisions of Section 9-275 in relation
3to the property that received the erroneous homestead
4exemption.
5    (j) In counties with less than 3,000,000 inhabitants, the
6county board may by resolution provide that if a person has
7been granted a homestead exemption under this Section, the
8person qualifying need not reapply for the exemption.
9    In counties with less than 3,000,000 inhabitants, if the
10assessor or chief county assessment officer requires annual
11application for verification of eligibility for an exemption
12once granted under this Section, the application shall be
13mailed to the taxpayer.
14    (l) The assessor or chief county assessment officer shall
15notify each person who qualifies for an exemption under this
16Section that the person may also qualify for deferral of real
17estate taxes under the Senior Citizens Real Estate Tax
18Deferral Act. The notice shall set forth the qualifications
19needed for deferral of real estate taxes, the address and
20telephone number of county collector, and a statement that
21applications for deferral of real estate taxes may be obtained
22from the county collector.
23    (m) Notwithstanding Sections 6 and 8 of the State Mandates
24Act, no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 100-401, eff. 8-25-17; 101-453, eff. 8-23-19;

 

 

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1101-622, eff. 1-14-20.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.