Full Text of HB3509 103rd General Assembly
HB3509 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3509 Introduced 2/17/2023, by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2024 through 2026, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. 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 15-175 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, | 9 | | homestead
property is
entitled to an annual homestead | 10 | | exemption limited, except as described here
with relation to | 11 | | cooperatives or life care facilities, to a reduction in the | 12 | | equalized assessed value
of homestead property equal to the | 13 | | increase in equalized assessed value for the
current | 14 | | assessment year above the equalized assessed value of the | 15 | | property for
1977, up to the maximum reduction set forth | 16 | | below. If however, the 1977
equalized assessed value upon | 17 | | which taxes were paid is subsequently determined
by local | 18 | | assessing officials, the Property Tax Appeal Board, or a court | 19 | | to have
been excessive, the equalized assessed value which | 20 | | should have been placed on
the property for 1977 shall be used | 21 | | to determine the amount of the exemption.
| 22 | | (b) Except as provided in Section 15-176, the maximum | 23 | | reduction before taxable year 2004 shall be
$4,500 in counties |
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| 1 | | with 3,000,000 or more
inhabitants
and $3,500 in all other | 2 | | counties. Except as provided in Sections 15-176 and 15-177, | 3 | | for taxable years 2004 through 2007, the maximum reduction | 4 | | shall be $5,000, for taxable year 2008, the maximum reduction | 5 | | is $5,500, and, for taxable years 2009 through 2011, the | 6 | | maximum reduction is $6,000 in all counties. For taxable years | 7 | | 2012 through 2016, the maximum reduction is $7,000 in counties | 8 | | with 3,000,000 or more
inhabitants
and $6,000 in all other | 9 | | counties. For taxable years 2017 through 2022, the maximum | 10 | | reduction is $10,000 in counties with 3,000,000 or more | 11 | | inhabitants and $6,000 in all other counties. For taxable year | 12 | | years 2023 and thereafter , the maximum reduction is $10,000 in | 13 | | counties with 3,000,000 or more inhabitants, $8,000 in | 14 | | counties that are contiguous to a county of 3,000,000 or more | 15 | | inhabitants, and $6,000 in all other counties. For taxable | 16 | | years 2024 and thereafter, the maximum reduction is $50,000 in | 17 | | counties with 3,000,000 or more inhabitants, $8,000 in | 18 | | counties that are contiguous to a county of 3,000,000 or more | 19 | | inhabitants, and $6,000 in all other counties. If a county has | 20 | | elected to subject itself to the provisions of Section 15-176 | 21 | | as provided in subsection (k) of that Section, then, for the | 22 | | first taxable year only after the provisions of Section 15-176 | 23 | | no longer apply, for owners who, for the taxable year, have not | 24 | | been granted a senior citizens assessment freeze homestead | 25 | | exemption under Section 15-172 or a long-time occupant | 26 | | homestead exemption under Section 15-177, there shall be an |
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| 1 | | additional exemption of $5,000 for owners with a household | 2 | | income of $30,000 or less.
| 3 | | (c) In counties with fewer than 3,000,000 inhabitants, if, | 4 | | based on the most
recent assessment, the equalized assessed | 5 | | value of
the homestead property for the current assessment | 6 | | year is greater than the
equalized assessed value of the | 7 | | property for 1977, the owner of the property
shall | 8 | | automatically receive the exemption granted under this Section | 9 | | in an
amount equal to the increase over the 1977 assessment up | 10 | | to the maximum
reduction set forth in this Section.
| 11 | | Notwithstanding any other provision of law, for taxable | 12 | | years 2024 through 2026, the property tax liability for | 13 | | homestead property in Cook County that contains a | 14 | | single-family home or a multi-unit residential dwelling with | 15 | | fewer than 3 units shall not exceed the adjusted property tax | 16 | | liability for the property for the applicable tax year. | 17 | | (d) If in any assessment year beginning with the 2000 | 18 | | assessment year,
homestead property has a pro-rata valuation | 19 | | under
Section 9-180 resulting in an increase in the assessed | 20 | | valuation, a reduction
in equalized assessed valuation equal | 21 | | to the increase in equalized assessed
value of the property | 22 | | for the year of the pro-rata valuation above the
equalized | 23 | | assessed value of the property for 1977 shall be applied to the
| 24 | | property on a proportionate basis for the period the property | 25 | | qualified as
homestead property during the assessment year. | 26 | | The maximum proportionate
homestead exemption shall not exceed |
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| 1 | | the maximum homestead exemption allowed in
the county under | 2 | | this Section divided by 365 and multiplied by the number of
| 3 | | days the property qualified as homestead property.
| 4 | | (d-1) In counties with 3,000,000 or more inhabitants, | 5 | | where the chief county assessment officer provides a notice of | 6 | | discovery, if a property is not
occupied by its owner as a | 7 | | principal residence as of January 1 of the current tax year, | 8 | | then the property owner shall notify the chief county | 9 | | assessment officer of that fact on a form prescribed by the | 10 | | chief county assessment officer. That notice must be received | 11 | | by the chief county assessment officer on or before March 1 of | 12 | | the collection year. If mailed, the form shall be sent by | 13 | | certified mail, return receipt requested. If the form is | 14 | | provided in person, the chief county assessment officer shall | 15 | | provide a date stamped copy of the notice. Failure to provide | 16 | | timely notice pursuant to this subsection (d-1) shall result | 17 | | in the exemption being treated as an erroneous exemption. Upon | 18 | | timely receipt of the notice for the current tax year, no | 19 | | exemption shall be applied to the property for the current tax | 20 | | year. If the exemption is not removed upon timely receipt of | 21 | | the notice by the chief assessment officer, then the error is | 22 | | considered granted as a result of a clerical error or omission | 23 | | on the part of the chief county assessment officer as | 24 | | described in subsection (h) of Section 9-275, and the property | 25 | | owner shall not be liable for the payment of interest and | 26 | | penalties due to the erroneous exemption for the current tax |
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| 1 | | year for which the notice was filed after the date that notice | 2 | | was timely received pursuant to this subsection. Notice | 3 | | provided under this subsection shall not constitute a defense | 4 | | or amnesty for prior year erroneous exemptions. | 5 | | For the purposes of this subsection (d-1): | 6 | | "Collection year" means the year in which the first and | 7 | | second installment of the current tax year is billed. | 8 | | "Current tax year" means the year prior to the collection | 9 | | year. | 10 | | (e) The chief county assessment officer may, when | 11 | | considering whether to grant a leasehold exemption under this | 12 | | Section, require the following conditions to be met: | 13 | | (1) that a notarized application for the exemption, | 14 | | signed by both the owner and the lessee of the property, | 15 | | must be submitted each year during the application period | 16 | | in effect for the county in which the property is located; | 17 | | (2) that a copy of the lease must be filed with the | 18 | | chief county assessment officer by the owner of the | 19 | | property at the time the notarized application is | 20 | | submitted; | 21 | | (3) that the lease must expressly state that the | 22 | | lessee is liable for the payment of property taxes; and | 23 | | (4) that the lease must include the following language | 24 | | in substantially the following form: | 25 | | "Lessee shall be liable for the payment of real | 26 | | estate taxes with respect to the residence in |
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| 1 | | accordance with the terms and conditions of Section | 2 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). | 3 | | The permanent real estate index number for the | 4 | | premises is (insert number), and, according to the | 5 | | most recent property tax bill, the current amount of | 6 | | real estate taxes associated with the premises is | 7 | | (insert amount) per year. The parties agree that the | 8 | | monthly rent set forth above shall be increased or | 9 | | decreased pro rata (effective January 1 of each | 10 | | calendar year) to reflect any increase or decrease in | 11 | | real estate taxes. Lessee shall be deemed to be | 12 | | satisfying Lessee's liability for the above mentioned | 13 | | real estate taxes with the monthly rent payments as | 14 | | set forth above (or increased or decreased as set | 15 | | forth herein).". | 16 | | In addition, if there is a change in lessee, or if the | 17 | | lessee vacates the property, then the chief county assessment | 18 | | officer may require the owner of the property to notify the | 19 | | chief county assessment officer of that change. | 20 | | This subsection (e) does not apply to leasehold interests | 21 | | in property owned by a municipality. | 22 | | (f) As used in this Section: | 23 | | "Adjusted property tax liability" means the property tax | 24 | | liability for the property in the base year, increased
by 5% | 25 | | for each tax year after the base year through and including the | 26 | | current tax year. The increase by 5% each year is an increase |
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| 1 | | by 5% over the prior year. If the property did not have a | 2 | | residential equalized assessed value for the base year, then | 3 | | the assessor shall first determine an initial property tax | 4 | | liability for the property by comparison with other properties | 5 | | having physical and economic characteristics similar to those | 6 | | of the subject property. | 7 | | "Base year" means the 2018 tax year, or, if the property is | 8 | | sold or ownership is otherwise transferred in tax year 2024, | 9 | | 2025, or 2026, then the year of the sale or transfer | 10 | | "Homestead property" under this Section includes | 11 | | residential property that is
occupied by its owner or owners | 12 | | as his or their principal dwelling place, or
that is a | 13 | | leasehold interest on which a single family residence is | 14 | | situated,
which is occupied as a residence by a person who has | 15 | | an ownership interest
therein, legal or equitable or as a | 16 | | lessee, and on which the person is
liable for the payment of | 17 | | property taxes. For land improved with
an apartment building | 18 | | owned and operated as a cooperative, the maximum reduction | 19 | | from the equalized
assessed value shall be limited to the | 20 | | increase in the value above the
equalized assessed value of | 21 | | the property for 1977, up to
the maximum reduction set forth | 22 | | above, multiplied by the number of apartments
or units | 23 | | occupied by a person or persons who is liable, by contract with | 24 | | the
owner or owners of record, for paying property taxes on the | 25 | | property and is an
owner of record of a legal or equitable | 26 | | interest in the cooperative
apartment building, other than a |
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| 1 | | leasehold interest. For land improved with a life care | 2 | | facility, the maximum reduction from the value of the | 3 | | property, as equalized by the Department, shall be multiplied | 4 | | by the number of apartments or units occupied by a person or | 5 | | persons, irrespective of any legal, equitable, or leasehold | 6 | | interest in the facility, who are liable, under a life care | 7 | | contract with the owner or owners of record of the facility, | 8 | | for paying property taxes on the property. For purposes of | 9 | | this
Section, the term "life care facility" has the meaning | 10 | | stated in Section
15-170.
| 11 | | "Household", as used in this Section,
means the owner, the | 12 | | spouse of the owner, and all persons using
the
residence of the | 13 | | owner as their principal place of residence.
| 14 | | "Household income", as used in this Section,
means the | 15 | | combined income of the members of a household
for the calendar | 16 | | year preceding the taxable year.
| 17 | | "Income", as used in this Section,
has the same meaning as | 18 | | provided in Section 3.07 of the Senior
Citizens
and Persons | 19 | | with Disabilities Property Tax Relief Act,
except that
| 20 | | "income" does not include veteran's benefits.
| 21 | | (g) In a cooperative or life care facility where a | 22 | | homestead exemption has been granted, the
cooperative | 23 | | association or the management of the cooperative or life care | 24 | | facility shall credit the savings
resulting from that | 25 | | exemption only to the apportioned tax liability of the
owner | 26 | | or resident who qualified for the exemption. Any person who |
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| 1 | | willfully refuses to so
credit the savings shall be guilty of a | 2 | | Class B misdemeanor.
| 3 | | (h) Where married persons maintain and reside in separate | 4 | | residences qualifying
as homestead property, each residence | 5 | | shall receive 50% of the total reduction
in equalized assessed | 6 | | valuation provided by this Section.
| 7 | | (i) In all counties, the assessor
or chief county | 8 | | assessment officer may determine the
eligibility of | 9 | | residential property to receive the homestead exemption and | 10 | | the amount of the exemption by
application, visual inspection, | 11 | | questionnaire or other reasonable methods. The
determination | 12 | | shall be made in accordance with guidelines established by the
| 13 | | Department, provided that the taxpayer applying for an | 14 | | additional general exemption under this Section shall submit | 15 | | to the chief county assessment officer an application with an | 16 | | affidavit of the applicant's total household income, age, | 17 | | marital status (and, if married, the name and address of the | 18 | | applicant's spouse, if known), and principal dwelling place of | 19 | | members of the household on January 1 of the taxable year. The | 20 | | Department shall issue guidelines establishing a method for | 21 | | verifying the accuracy of the affidavits filed by applicants | 22 | | under this paragraph. The applications shall be clearly marked | 23 | | as applications for the Additional General Homestead | 24 | | Exemption.
| 25 | | (i-5) This subsection (i-5) applies to counties with | 26 | | 3,000,000 or more inhabitants. In the event of a sale of
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| 1 | | homestead property, the homestead exemption shall remain in | 2 | | effect for the remainder of the assessment year of the sale. | 3 | | Upon receipt of a transfer declaration transmitted by the | 4 | | recorder pursuant to Section 31-30 of the Real Estate Transfer | 5 | | Tax Law for property receiving an exemption under this | 6 | | Section, the assessor shall mail a notice and forms to the new | 7 | | owner of the property providing information pertaining to the | 8 | | rules and applicable filing periods for applying or reapplying | 9 | | for homestead exemptions under this Code for which the | 10 | | property may be eligible. If the new owner fails to apply or | 11 | | reapply for a homestead exemption during the applicable filing | 12 | | period or the property no longer qualifies for an existing | 13 | | homestead exemption, the assessor shall cancel such exemption | 14 | | for any ensuing assessment year. | 15 | | (j) In counties with fewer than 3,000,000 inhabitants, in | 16 | | the event of a sale
of
homestead property the homestead | 17 | | exemption shall remain in effect for the
remainder of the | 18 | | assessment year of the sale. The assessor or chief county
| 19 | | assessment officer may require the new
owner of the property | 20 | | to apply for the homestead exemption for the following
| 21 | | assessment year.
| 22 | | (k) Notwithstanding Sections 6 and 8 of the State Mandates | 23 | | Act, no reimbursement by the State is required for the | 24 | | implementation of any mandate created by this Section.
| 25 | | (l) The changes made to this Section by this amendatory | 26 | | Act of the 100th General Assembly are effective for the 2018 |
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| 1 | | tax year and thereafter. | 2 | | (Source: P.A. 102-895, eff. 5-23-22.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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