Bill Text: IL HB2807 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that the maximum reduction under 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). Provides that, for taxable years 2019 and thereafter, the maximum reduction under the general homestead exemption is $10,000 in counties with 3,000,000 or more inhabitants and $8,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2019-08-07 - Added Co-Sponsor Rep. Lindsey LaPointe [HB2807 Detail]

Download: Illinois-2019-HB2807-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2807 Introduced , by Rep. Mary Edly-Allen SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-170
35 ILCS 200/15-175
Amends the Property Tax Code. Provides that the maximum reduction under 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). Provides that, for taxable years 2019 and thereafter, the maximum reduction under the general homestead exemption is $10,000 in counties with 3,000,000 or more inhabitants and $8,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 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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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-170 and 15-175 as follows:
(35 ILCS 200/15-170)
Sec. 15-170. Senior citizens homestead exemption. An
annual homestead exemption limited, except as described here
with relation to cooperatives or life care facilities, to a
maximum reduction set forth below from the property's value, as
equalized or assessed by the Department, is granted for
property that is occupied as a residence by a person 65 years
of age or older who is liable for paying real estate taxes on
the property and is an owner of record of the property or has a
legal or equitable interest therein as evidenced by a written
instrument, except for a leasehold interest, other than a
leasehold interest of land on which a single family residence
is located, which is occupied as a residence by a person 65
years or older who has an ownership interest therein, legal,
equitable or as a lessee, and on which he or she is liable for
the payment of property taxes. Before taxable year 2004, the
maximum reduction shall be $2,500 in counties with 3,000,000 or
more inhabitants and $2,000 in all other counties. For taxable

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years 2004 through 2005, the maximum reduction shall be $3,000
in all counties. For taxable years 2006 and 2007, the maximum
reduction shall be $3,500. For taxable years 2008 through 2011,
the maximum reduction is $4,000 in all counties. For taxable
year 2012, the maximum reduction is $5,000 in counties with
3,000,000 or more inhabitants and $4,000 in all other counties.
For taxable years 2013 through 2016, the maximum reduction is
$5,000 in all counties. For taxable years 2017 and 2018
thereafter, the maximum reduction is $8,000 in counties with
3,000,000 or more inhabitants and $5,000 in all other counties.
For taxable years 2019 and thereafter, the the maximum
reduction is $8,000 in all counties.
For land improved with an apartment building owned and
operated as a cooperative, the maximum reduction from the value
of the property, as equalized by the Department, shall be
multiplied by the number of apartments or units occupied by a
person 65 years of age or older who is liable, by contract with
the owner or owners of record, for paying property taxes on the
property and is an owner of record of a legal or equitable
interest in the cooperative apartment building, other than a
leasehold interest. For land improved with a life care
facility, the maximum reduction from the value of the property,
as equalized by the Department, shall be multiplied by the
number of apartments or units occupied by persons 65 years of
age or older, irrespective of any legal, equitable, or
leasehold interest in the facility, who are liable, under a

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contract with the owner or owners of record of the facility,
for paying property taxes on the property. In a cooperative or
a life care facility where a homestead exemption has been
granted, the cooperative association or the management firm of
the cooperative or facility shall credit the savings resulting
from that exemption only to the apportioned tax liability of
the owner or resident who qualified for the exemption. Any
person who willfully refuses to so credit the savings shall be
guilty of a Class B misdemeanor. Under this Section and
Sections 15-175, 15-176, and 15-177, "life care facility" means
a facility, as defined in Section 2 of the Life Care Facilities
Act, with which the applicant for the homestead exemption has a
life care contract as defined in that Act.
When a homestead exemption has been granted under this
Section and the person qualifying subsequently becomes a
resident of a facility licensed under the Assisted Living and
Shared Housing Act, the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act, the exemption shall continue so
long as the residence continues to be occupied by the
qualifying person's spouse if the spouse is 65 years of age or
older, or if the residence remains unoccupied but is still
owned by the person qualified for the homestead exemption.
A person who will be 65 years of age during the current
assessment year shall be eligible to apply for the homestead
exemption during that assessment year. Application shall be

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made during the application period in effect for the county of
his residence.
Beginning with assessment year 2003, for taxes payable in
2004, property that is first occupied as a residence after
January 1 of any assessment year by a person who is eligible
for the senior citizens homestead exemption under this Section
must be granted a pro-rata exemption for the assessment year.
The amount of the pro-rata exemption is the exemption allowed
in the county under this Section divided by 365 and multiplied
by the number of days during the assessment year the property
is occupied as a residence by a person eligible for the
exemption under this Section. The chief county assessment
officer must adopt reasonable procedures to establish
eligibility for this pro-rata exemption.
The assessor or chief county assessment officer may
determine the eligibility of a life care facility to receive
the benefits provided by this Section, by affidavit,
application, visual inspection, questionnaire or other
reasonable methods in order to insure that the tax savings
resulting from the exemption are credited by the management
firm to the apportioned tax liability of each qualifying
resident. The assessor may request reasonable proof that the
management firm has so credited the exemption.
The chief county assessment officer of each county with
less than 3,000,000 inhabitants shall provide to each person
allowed a homestead exemption under this Section a form to

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designate any other person to receive a duplicate of any notice
of delinquency in the payment of taxes assessed and levied
under this Code on the property of the person receiving the
exemption. The duplicate notice shall be in addition to the
notice required to be provided to the person receiving the
exemption, and shall be given in the manner required by this
Code. The person filing the request for the duplicate notice
shall pay a fee of $5 to cover administrative costs to the
supervisor of assessments, who shall then file the executed
designation with the county collector. Notwithstanding any
other provision of this Code to the contrary, the filing of
such an executed designation requires the county collector to
provide duplicate notices as indicated by the designation. A
designation may be rescinded by the person who executed such
designation at any time, in the manner and form required by the
chief county assessment officer.
The assessor or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption provided by this Section by
application, visual inspection, questionnaire or other
reasonable methods. The determination shall be made in
accordance with guidelines established by the Department.
In counties with 3,000,000 or more inhabitants, beginning
in taxable year 2010, each taxpayer who has been granted an
exemption under this Section must reapply on an annual basis.
The chief county assessment officer shall mail the application

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to the taxpayer. In counties with less than 3,000,000
inhabitants, the county board may by resolution provide that if
a person has been granted a homestead exemption under this
Section, the person qualifying need not reapply for the
exemption.
In counties with less than 3,000,000 inhabitants, if the
assessor or chief county assessment officer requires annual
application for verification of eligibility for an exemption
once granted under this Section, the application shall be
mailed to the taxpayer.
The assessor or chief county assessment officer shall
notify each person who qualifies for an exemption under this
Section that the person may also qualify for deferral of real
estate taxes under the Senior Citizens Real Estate Tax Deferral
Act. The notice shall set forth the qualifications needed for
deferral of real estate taxes, the address and telephone number
of county collector, and a statement that applications for
deferral of real estate taxes may be obtained from the county
collector.
Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
(35 ILCS 200/15-175)
Sec. 15-175. General homestead exemption.

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(a) Except as provided in Sections 15-176 and 15-177,
homestead property is entitled to an annual homestead exemption
limited, except as described here with relation to cooperatives
or life care facilities, to a reduction in the equalized
assessed value of homestead property equal to the increase in
equalized assessed value for the current assessment year above
the equalized assessed value of the property for 1977, up to
the maximum reduction set forth below. If however, the 1977
equalized assessed value upon which taxes were paid is
subsequently determined by local assessing officials, the
Property Tax Appeal Board, or a court to have been excessive,
the equalized assessed value which should have been placed on
the property for 1977 shall be used to determine the amount of
the exemption.
(b) Except as provided in Section 15-176, the maximum
reduction before taxable year 2004 shall be $4,500 in counties
with 3,000,000 or more inhabitants and $3,500 in all other
counties. Except as provided in Sections 15-176 and 15-177, for
taxable years 2004 through 2007, the maximum reduction shall be
$5,000, for taxable year 2008, the maximum reduction is $5,500,
and, for taxable years 2009 through 2011, the maximum reduction
is $6,000 in all counties. For taxable years 2012 through 2016,
the maximum reduction is $7,000 in counties with 3,000,000 or
more inhabitants and $6,000 in all other counties. For taxable
years 2017 and 2018 thereafter, the maximum reduction is
$10,000 in counties with 3,000,000 or more inhabitants and

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$6,000 in all other counties. For taxable years 2019 and
thereafter, the maximum reduction is $10,000 in counties with
3,000,000 or more inhabitants and $8,000 in all other counties.
If a county has elected to subject itself to the provisions of
Section 15-176 as provided in subsection (k) of that Section,
then, for the first taxable year only after the provisions of
Section 15-176 no longer apply, for owners who, for the taxable
year, have not been granted a senior citizens assessment freeze
homestead exemption under Section 15-172 or a long-time
occupant homestead exemption under Section 15-177, there shall
be an additional exemption of $5,000 for owners with a
household income of $30,000 or less.
(c) In counties with fewer than 3,000,000 inhabitants, if,
based on the most recent assessment, the equalized assessed
value of the homestead property for the current assessment year
is greater than the equalized assessed value of the property
for 1977, the owner of the property shall automatically receive
the exemption granted under this Section in an amount equal to
the increase over the 1977 assessment up to the maximum
reduction set forth in this Section.
(d) If in any assessment year beginning with the 2000
assessment year, homestead property has a pro-rata valuation
under Section 9-180 resulting in an increase in the assessed
valuation, a reduction in equalized assessed valuation equal to
the increase in equalized assessed value of the property for
the year of the pro-rata valuation above the equalized assessed

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

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

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

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his or their principal dwelling place, or that is a leasehold
interest on which a single family residence is situated, which
is occupied as a residence by a person who has an ownership
interest therein, legal or equitable or as a lessee, and on
which the person is liable for the payment of property taxes.
For land improved with an apartment building owned and operated
as a cooperative, the maximum reduction from the equalized
assessed value shall be limited to the increase in the value
above the equalized assessed value of the property for 1977, up
to the maximum reduction set forth above, multiplied by the
number of apartments or units occupied by a person or persons
who is liable, by contract with the owner or owners of record,
for paying property taxes on the property and is an owner of
record of a legal or equitable interest in the cooperative
apartment building, other than a leasehold interest. For land
improved with a life care facility, the maximum reduction from
the value of the property, as equalized by the Department,
shall be multiplied by the number of apartments or units
occupied by a person or persons, irrespective of any legal,
equitable, or leasehold interest in the facility, who are
liable, under a life care contract with the owner or owners of
record of the facility, for paying property taxes on the
property. For purposes of this Section, the term "life care
facility" has the meaning stated in Section 15-170.
"Household", as used in this Section, means the owner, the
spouse of the owner, and all persons using the residence of the

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owner as their principal place of residence.
"Household income", as used in this Section, means the
combined income of the members of a household for the calendar
year preceding the taxable year.
"Income", as used in this Section, has the same meaning as
provided in Section 3.07 of the Senior Citizens and Persons
with Disabilities Property Tax Relief Act, except that "income"
does not include veteran's benefits.
(g) In a cooperative or life care facility where a
homestead exemption has been granted, the cooperative
association or the management of the cooperative or life care
facility shall credit the savings resulting from that exemption
only to the apportioned tax liability of the owner or resident
who qualified for the exemption. Any person who willfully
refuses to so credit the savings shall be guilty of a Class B
misdemeanor.
(h) Where married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
(i) In all counties, the assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption and the
amount of the exemption by application, visual inspection,
questionnaire or other reasonable methods. The determination
shall be made in accordance with guidelines established by the

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

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