Bill Text: IL HB2208 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that the maximum reduction for the senior homestead exemption is $9,000 in counties with a population of more than 500,000 but not more than 1,000,000, $8,000 in counties with 3,000,000 or more inhabitants, and $5,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the senior homestead exemption for property under the jurisdiction of that city or county to not more than $9,000. Provides that the maximum reduction for the general homestead exemption is $12,000 in counties with a population of more than 500,000 but not more than 1,000,000, $10,000 in counties with 3,000,000 or more inhabitants, and $6,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the general homestead exemption for property under the jurisdiction of that city or county to not more than $12,000.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2019-07-18 - Added Co-Sponsor Rep. Debbie Meyers-Martin [HB2208 Detail]

Download: Illinois-2019-HB2208-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2208

Introduced , by Rep. Sam Yingling

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-170
35 ILCS 200/15-175

Amends the Property Tax Code. Provides that the maximum reduction for the senior homestead exemption is $9,000 in counties with a population of more than 500,000 but not more than 1,000,000, $8,000 in counties with 3,000,000 or more inhabitants, and $5,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the senior homestead exemption for property under the jurisdiction of that city or county to not more than $9,000. Provides that the maximum reduction for the general homestead exemption is $12,000 in counties with a population of more than 500,000 but not more than 1,000,000, $10,000 in counties with 3,000,000 or more inhabitants, and $6,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the general homestead exemption for property under the jurisdiction of that city or county to not more than $12,000.
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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB2208LRB101 07517 HLH 52561 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
5Sections 15-170 and 15-175 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 through 2016, the maximum reduction is
8$5,000 in all counties. For taxable years 2017 and 2018 and
9thereafter, the maximum reduction is $8,000 in counties with
103,000,000 or more inhabitants and $5,000 in all other counties.
11For taxable years 2019 and thereafter, the maximum reduction is
12$9,000 in counties with a population of more than 500,000 but
13not more than 1,000,000, $8,000 in counties with 3,000,000 or
14more inhabitants, and $5,000 in all other counties; however,
15the corporate authorities of the City of Chicago may, by
16ordinance, increase the maximum reduction for property located
17in the City of Chicago to not more than $9,000, and the county
18board of a county with 3,000,000 or more inhabitants may, by
19ordinance, increase the maximum reduction for property located
20in that county to not more than $9,000. If such an ordinance is
21passed, the corporate authorities or county board, as
22applicable, shall transmit a copy of the ordinance to the
23county clerk, and the maximum reduction set forth in the
24ordinance shall take effect for the next taxable year to occur
25after the passage of the ordinance.
26 For land improved with an apartment building owned and

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1operated as a cooperative, the maximum reduction from the value
2of the property, as equalized by the Department, shall be
3multiplied by the number of apartments or units occupied by a
4person 65 years of age or older who is liable, by contract with
5the owner or owners of record, for paying property taxes on the
6property and is an owner of record of a legal or equitable
7interest in the cooperative apartment building, other than a
8leasehold interest. For land improved with a life care
9facility, the maximum reduction from the value of the property,
10as equalized by the Department, shall be multiplied by the
11number of apartments or units occupied by persons 65 years of
12age or older, irrespective of any legal, equitable, or
13leasehold interest in the facility, who are liable, under a
14contract with the owner or owners of record of the facility,
15for paying property taxes on the property. In a cooperative or
16a life care facility where a homestead exemption has been
17granted, the cooperative association or the management firm of
18the cooperative or facility shall credit the savings resulting
19from that exemption only to the apportioned tax liability of
20the owner or resident who qualified for the exemption. Any
21person who willfully refuses to so credit the savings shall be
22guilty of a Class B misdemeanor. Under this Section and
23Sections 15-175, 15-176, and 15-177, "life care facility" means
24a facility, as defined in Section 2 of the Life Care Facilities
25Act, with which the applicant for the homestead exemption has a
26life care contract as defined in that Act.

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1 When a homestead exemption has been granted under this
2Section and the person qualifying subsequently becomes a
3resident of a facility licensed under the Assisted Living and
4Shared Housing Act, the Nursing Home Care Act, the Specialized
5Mental Health Rehabilitation Act of 2013, the ID/DD Community
6Care Act, or the MC/DD Act, the exemption shall continue so
7long as the residence continues to be occupied by the
8qualifying person's spouse if the spouse is 65 years of age or
9older, or if the residence remains unoccupied but is still
10owned by the person qualified for the homestead exemption.
11 A person who will be 65 years of age during the current
12assessment year shall be eligible to apply for the homestead
13exemption during that assessment year. Application shall be
14made during the application period in effect for the county of
15his residence.
16 Beginning with assessment year 2003, for taxes payable in
172004, property that is first occupied as a residence after
18January 1 of any assessment year by a person who is eligible
19for the senior citizens homestead exemption under this Section
20must be granted a pro-rata exemption for the assessment year.
21The amount of the pro-rata exemption is the exemption allowed
22in the county under this Section divided by 365 and multiplied
23by the number of days during the assessment year the property
24is occupied as a residence by a person eligible for the
25exemption under this Section. The chief county assessment
26officer must adopt reasonable procedures to establish

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1eligibility for this pro-rata exemption.
2 The assessor or chief county assessment officer may
3determine the eligibility of a life care facility to receive
4the benefits provided by this Section, by affidavit,
5application, visual inspection, questionnaire or other
6reasonable methods in order to insure that the tax savings
7resulting from the exemption are credited by the management
8firm to the apportioned tax liability of each qualifying
9resident. The assessor may request reasonable proof that the
10management firm has so credited the exemption.
11 The chief county assessment officer of each county with
12less than 3,000,000 inhabitants shall provide to each person
13allowed a homestead exemption under this Section a form to
14designate any other person to receive a duplicate of any notice
15of delinquency in the payment of taxes assessed and levied
16under this Code on the property of the person receiving the
17exemption. The duplicate notice shall be in addition to the
18notice required to be provided to the person receiving the
19exemption, and shall be given in the manner required by this
20Code. The person filing the request for the duplicate notice
21shall pay a fee of $5 to cover administrative costs to the
22supervisor of assessments, who shall then file the executed
23designation with the county collector. Notwithstanding any
24other provision of this Code to the contrary, the filing of
25such an executed designation requires the county collector to
26provide duplicate notices as indicated by the designation. A

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1designation may be rescinded by the person who executed such
2designation at any time, in the manner and form required by the
3chief county assessment officer.
4 The assessor or chief county assessment officer may
5determine the eligibility of residential property to receive
6the homestead exemption provided by this Section by
7application, visual inspection, questionnaire or other
8reasonable methods. The determination shall be made in
9accordance with guidelines established by the Department.
10 In counties with 3,000,000 or more inhabitants, beginning
11in taxable year 2010, each taxpayer who has been granted an
12exemption under this Section must reapply on an annual basis.
13The chief county assessment officer shall mail the application
14to the taxpayer. In counties with less than 3,000,000
15inhabitants, the county board may by resolution provide that if
16a person has been granted a homestead exemption under this
17Section, the person qualifying need not reapply for the
18exemption.
19 In counties with less than 3,000,000 inhabitants, if the
20assessor or chief county assessment officer requires annual
21application for verification of eligibility for an exemption
22once granted under this Section, the application shall be
23mailed to the taxpayer.
24 The assessor or chief county assessment officer shall
25notify each person who qualifies for an exemption under this
26Section that the person may also qualify for deferral of real

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1estate taxes under the Senior Citizens Real Estate Tax Deferral
2Act. The notice shall set forth the qualifications needed for
3deferral of real estate taxes, the address and telephone number
4of county collector, and a statement that applications for
5deferral of real estate taxes may be obtained from the county
6collector.
7 Notwithstanding Sections 6 and 8 of the State Mandates Act,
8no reimbursement by the State is required for the
9implementation of any mandate created by this Section.
10(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
11 (35 ILCS 200/15-175)
12 Sec. 15-175. General homestead exemption.
13 (a) Except as provided in Sections 15-176 and 15-177,
14homestead property is entitled to an annual homestead exemption
15limited, except as described here with relation to cooperatives
16or life care facilities, to a reduction in the equalized
17assessed value of homestead property equal to the increase in
18equalized assessed value for the current assessment year above
19the equalized assessed value of the property for 1977, up to
20the maximum reduction set forth below. If however, the 1977
21equalized assessed value upon which taxes were paid is
22subsequently determined by local assessing officials, the
23Property Tax Appeal Board, or a court to have been excessive,
24the equalized assessed value which should have been placed on
25the property for 1977 shall be used to determine the amount of

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1the exemption.
2 (b) Except as provided in Section 15-176, the maximum
3reduction before taxable year 2004 shall be $4,500 in counties
4with 3,000,000 or more inhabitants and $3,500 in all other
5counties. Except as provided in Sections 15-176 and 15-177, for
6taxable years 2004 through 2007, the maximum reduction shall be
7$5,000, for taxable year 2008, the maximum reduction is $5,500,
8and, for taxable years 2009 through 2011, the maximum reduction
9is $6,000 in all counties. For taxable years 2012 through 2016,
10the maximum reduction is $7,000 in counties with 3,000,000 or
11more inhabitants and $6,000 in all other counties. For taxable
12years 2017 and 2018 and thereafter, the maximum reduction is
13$10,000 in counties with 3,000,000 or more inhabitants and
14$6,000 in all other counties. For taxable years 2019 and
15thereafter, the maximum reduction is $12,000 in counties with a
16population of more than 500,000 but not more than 1,000,000,
17$10,000 in counties with 3,000,000 or more inhabitants, and
18$6,000 in all other counties; however, the corporate
19authorities of the City of Chicago may, by ordinance, increase
20the maximum reduction for property located in the City of
21Chicago to not more than $12,000, and the county board of a
22county with 3,000,000 or more inhabitants may, by ordinance,
23increase the maximum reduction for property located in that
24county to not more than $12,000. If such an ordinance is
25passed, the corporate authorities or county board, as
26applicable, shall transmit a copy of the ordinance to the

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1county clerk, and the maximum reduction set forth in the
2ordinance shall take effect for the next taxable year to occur
3after the passage of the ordinance. If a county has elected to
4subject itself to the provisions of Section 15-176 as provided
5in subsection (k) of that Section, then, for the first taxable
6year only after the provisions of Section 15-176 no longer
7apply, for owners who, for the taxable year, have not been
8granted a senior citizens assessment freeze homestead
9exemption under Section 15-172 or a long-time occupant
10homestead exemption under Section 15-177, there shall be an
11additional exemption of $5,000 for owners with a household
12income of $30,000 or less.
13 (c) In counties with fewer than 3,000,000 inhabitants, if,
14based on the most recent assessment, the equalized assessed
15value of the homestead property for the current assessment year
16is greater than the equalized assessed value of the property
17for 1977, the owner of the property shall automatically receive
18the exemption granted under this Section in an amount equal to
19the increase over the 1977 assessment up to the maximum
20reduction set forth in this Section.
21 (d) If in any assessment year beginning with the 2000
22assessment year, homestead property has a pro-rata valuation
23under Section 9-180 resulting in an increase in the assessed
24valuation, a reduction in equalized assessed valuation equal to
25the increase in equalized assessed value of the property for
26the year of the pro-rata valuation above the equalized assessed

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1value of the property for 1977 shall be applied to the property
2on a proportionate basis for the period the property qualified
3as homestead property during the assessment year. The maximum
4proportionate homestead exemption shall not exceed the maximum
5homestead exemption allowed in the county under this Section
6divided by 365 and multiplied by the number of days the
7property qualified as homestead property.
8 (d-1) In counties with 3,000,000 or more inhabitants, where
9the chief county assessment officer provides a notice of
10discovery, if a property is not occupied by its owner as a
11principal residence as of January 1 of the current tax year,
12then the property owner shall notify the chief county
13assessment officer of that fact on a form prescribed by the
14chief county assessment officer. That notice must be received
15by the chief county assessment officer on or before March 1 of
16the collection year. If mailed, the form shall be sent by
17certified mail, return receipt requested. If the form is
18provided in person, the chief county assessment officer shall
19provide a date stamped copy of the notice. Failure to provide
20timely notice pursuant to this subsection (d-1) shall result in
21the exemption being treated as an erroneous exemption. Upon
22timely receipt of the notice for the current tax year, no
23exemption shall be applied to the property for the current tax
24year. If the exemption is not removed upon timely receipt of
25the notice by the chief assessment officer, then the error is
26considered granted as a result of a clerical error or omission

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1on the part of the chief county assessment officer as described
2in subsection (h) of Section 9-275, and the property owner
3shall not be liable for the payment of interest and penalties
4due to the erroneous exemption for the current tax year for
5which the notice was filed after the date that notice was
6timely received pursuant to this subsection. Notice provided
7under this subsection shall not constitute a defense or amnesty
8for prior year erroneous exemptions.
9 For the purposes of this subsection (d-1):
10 "Collection year" means the year in which the first and
11second installment of the current tax year is billed.
12 "Current tax year" means the year prior to the collection
13year.
14 (e) The chief county assessment officer may, when
15considering whether to grant a leasehold exemption under this
16Section, require the following conditions to be met:
17 (1) that a notarized application for the exemption,
18 signed by both the owner and the lessee of the property,
19 must be submitted each year during the application period
20 in effect for the county in which the property is located;
21 (2) that a copy of the lease must be filed with the
22 chief county assessment officer by the owner of the
23 property at the time the notarized application is
24 submitted;
25 (3) that the lease must expressly state that the lessee
26 is liable for the payment of property taxes; and

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1 (4) that the lease must include the following language
2 in substantially the following form:
3 "Lessee shall be liable for the payment of real
4 estate taxes with respect to the residence in
5 accordance with the terms and conditions of Section
6 15-175 of the Property Tax Code (35 ILCS 200/15-175).
7 The permanent real estate index number for the premises
8 is (insert number), and, according to the most recent
9 property tax bill, the current amount of real estate
10 taxes associated with the premises is (insert amount)
11 per year. The parties agree that the monthly rent set
12 forth above shall be increased or decreased pro rata
13 (effective January 1 of each calendar year) to reflect
14 any increase or decrease in real estate taxes. Lessee
15 shall be deemed to be satisfying Lessee's liability for
16 the above mentioned real estate taxes with the monthly
17 rent payments as set forth above (or increased or
18 decreased as set forth herein).".
19 In addition, if there is a change in lessee, or if the
20lessee vacates the property, then the chief county assessment
21officer may require the owner of the property to notify the
22chief county assessment officer of that change.
23 This subsection (e) does not apply to leasehold interests
24in property owned by a municipality.
25 (f) "Homestead property" under this Section includes
26residential property that is occupied by its owner or owners as

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1his or their principal dwelling place, or that is a leasehold
2interest on which a single family residence is situated, which
3is occupied as a residence by a person who has an ownership
4interest therein, legal or equitable or as a lessee, and on
5which the person is liable for the payment of property taxes.
6For land improved with an apartment building owned and operated
7as a cooperative, the maximum reduction from the equalized
8assessed value shall be limited to the increase in the value
9above the equalized assessed value of the property for 1977, up
10to the maximum reduction set forth above, multiplied by the
11number of apartments or units occupied by a person or persons
12who is liable, by contract with the owner or owners of record,
13for paying property taxes on the property and is an owner of
14record of a legal or equitable interest in the cooperative
15apartment building, other than a leasehold interest. For land
16improved with a life care facility, the maximum reduction from
17the value of the property, as equalized by the Department,
18shall be multiplied by the number of apartments or units
19occupied by a person or persons, irrespective of any legal,
20equitable, or leasehold interest in the facility, who are
21liable, under a life care contract with the owner or owners of
22record of the facility, for paying property taxes on the
23property. For purposes of this Section, the term "life care
24facility" has the meaning 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 Persons
7with Disabilities Property Tax Relief Act, except that "income"
8does not include veteran's benefits.
9 (g) In a cooperative or life care facility where a
10homestead exemption has been granted, the cooperative
11association or the management of the cooperative or life care
12facility shall credit the savings resulting from that exemption
13only to the apportioned tax liability of the owner or resident
14who qualified for the exemption. Any person who willfully
15refuses to so credit the savings shall be guilty of a Class B
16misdemeanor.
17 (h) Where married persons maintain and reside in separate
18residences qualifying as homestead property, each residence
19shall receive 50% of the total reduction in equalized assessed
20valuation provided by this Section.
21 (i) In all counties, the assessor or chief county
22assessment officer may determine the eligibility of
23residential property to receive the homestead exemption and the
24amount of the exemption by application, visual inspection,
25questionnaire or other reasonable methods. The determination
26shall be made in accordance with guidelines established by the

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1Department, provided that the taxpayer applying for an
2additional general exemption under this Section shall submit to
3the chief county assessment officer an application with an
4affidavit of the applicant's total household income, age,
5marital status (and, if married, the name and address of the
6applicant's spouse, if known), and principal dwelling place of
7members of the household on January 1 of the taxable year. The
8Department shall issue guidelines establishing a method for
9verifying the accuracy of the affidavits filed by applicants
10under this paragraph. The applications shall be clearly marked
11as applications for the Additional General Homestead
12Exemption.
13 (i-5) This subsection (i-5) applies to counties with
143,000,000 or more inhabitants. In the event of a sale of
15homestead property, the homestead exemption shall remain in
16effect for the remainder of the assessment year of the sale.
17Upon receipt of a transfer declaration transmitted by the
18recorder pursuant to Section 31-30 of the Real Estate Transfer
19Tax Law for property receiving an exemption under this Section,
20the assessor shall mail a notice and forms to the new owner of
21the property providing information pertaining to the rules and
22applicable filing periods for applying or reapplying for
23homestead exemptions under this Code for which the property may
24be eligible. If the new owner fails to apply or reapply for a
25homestead exemption during the applicable filing period or the
26property no longer qualifies for an existing homestead

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1exemption, the assessor shall cancel such exemption for any
2ensuing assessment year.
3 (j) In counties with fewer than 3,000,000 inhabitants, in
4the event of a sale of homestead property the homestead
5exemption shall remain in effect for the remainder of the
6assessment year of the sale. The assessor or chief county
7assessment officer may require the new owner of the property to
8apply for the homestead exemption for the following assessment
9year.
10 (k) Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13 (l) The changes made to this Section by this amendatory Act
14of the 100th General Assembly are effective for the 2018 tax
15year and thereafter.
16(Source: P.A. 99-143, eff. 7-27-15; 99-164, eff. 7-28-15;
1799-642, eff. 7-28-16; 99-851, eff. 8-19-16; 100-401, eff.
188-25-17; 100-1077, eff. 1-1-19.)
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