Bill Text: IL SB2845 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 2-10 Committee Deadline Established As May 3, 2024 [SB2845 Detail]

Download: Illinois-2023-SB2845-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2845 Introduced 1/19/2024, by Sen. Natalie Toro SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-177
Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately.
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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
Section 15-177 as follows:
(35 ILCS 200/15-177)
Sec. 15-177. The long-time occupant homestead exemption.
(a) If the county has elected, under Section 15-176, to be
subject to the provisions of the alternative general homestead
exemption, then, for taxable years 2007 and thereafter,
regardless of whether the exemption under Section 15-176
applies, qualified homestead property is entitled to an annual
homestead exemption equal to a reduction in the property's
equalized assessed value calculated as provided in this
Section.
(b) As used in this Section:
"Adjusted homestead value" means, for taxable years before
taxable year 2024, the lesser of the following values:
(1) The property's base homestead value increased by:
(i) 10% for each taxable year after the base year through
and including the current tax year for qualified taxpayers
with a household income of more than $75,000 but not
exceeding $100,000; or (ii) 7% for each taxable year after

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the base year through and including the current tax year
for qualified taxpayers with a household income of $75,000
or less. The increase each year is an increase over the
prior year; or
(2) The property's equalized assessed value for the
current tax year minus the general homestead deduction.
"Adjusted homestead value" means, beginning in taxable
year 2024, the lesser of the following values:
(1) the property's base homestead value increased by:
(i) 5% for each taxable year after the base year through
and including the current tax year for qualified taxpayers
with a household income of more than $75,000 but not
exceeding $100,000; or (ii) 3% for each taxable year after
the base year through and including the current tax year
for qualified taxpayers with a household income of $75,000
or less; the increase each year is an increase over the
prior year; or
(2) the property's equalized assessed value for the
current tax year minus the general homestead deduction.
"Base homestead value" means:
(1) if the property did not have an adjusted homestead
value under Section 15-176 for the base year, then an
amount equal to the equalized assessed value of the
property for the base year prior to exemptions, minus the
general homestead deduction, provided that the property's
assessment was not based on a reduced assessed value

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resulting from a temporary irregularity in the property
for that year; or
(2) if the property had an adjusted homestead value
under Section 15-176 for the base year, then an amount
equal to the adjusted homestead value of the property
under Section 15-176 for the base year.
"Base year" means the taxable year prior to the taxable
year in which the taxpayer first qualifies for the exemption
under this Section.
"Current taxable year" means the taxable year for which
the exemption under this Section is being applied.
"Equalized assessed value" means the property's assessed
value as equalized by the Department.
"Homestead" or "homestead property" means residential
property that as of January 1 of the tax year is occupied by a
qualified taxpayer as his or her principal dwelling place, or
that is a leasehold interest on which a single family
residence is situated, that is occupied as a residence by a
qualified taxpayer who has a legal or equitable interest
therein evidenced by a written instrument, as an owner or as a
lessee, and on which the person is liable for the payment of
property taxes. Residential units in an apartment building
owned and operated as a cooperative, or as a life care
facility, which are occupied by persons who hold a legal or
equitable interest in the cooperative apartment building or
life care facility as owners or lessees, and who are liable by

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contract for the payment of property taxes, are included
within this definition of homestead property. A homestead
includes the dwelling place, appurtenant structures, and so
much of the surrounding land constituting the parcel on which
the dwelling place is situated as is used for residential
purposes. If the assessor has established a specific legal
description for a portion of property constituting the
homestead, then the homestead is limited to the property
within that description.
"Household income" has the meaning set forth under Section
15-172 of this Code.
"General homestead deduction" means the amount of the
general homestead exemption under Section 15-175.
"Life care facility" means a facility defined in Section 2
of the Life Care Facilities Act.
"Qualified homestead property" means homestead property
owned by a qualified taxpayer.
"Qualified taxpayer" means any individual:
(1) who, for at least 10 continuous years as of
January 1 of the taxable year, has occupied the same
homestead property as a principal residence and domicile
or who, for at least 5 continuous years as of January 1 of
the taxable year, has occupied the same homestead property
as a principal residence and domicile if that person
received assistance in the acquisition of the property as
part of a government or nonprofit housing program; and

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(2) who has a household income of $100,000 or less.
(c) The base homestead value must remain constant, except
that the assessor may revise it under any of the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the
previous base homestead value for that property, then the
current equalized assessed value (provided it is not based
on a reduced assessed value resulting from a temporary
irregularity in the property) becomes the base homestead
value in subsequent tax years.
(2) For any year in which new buildings, structures,
or other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value with due
regard to the value added by the new improvements.
(d) The amount of the exemption under this Section is the
greater of: (i) the equalized assessed value of the homestead
property for the current tax year minus the adjusted homestead
value; or (ii) the general homestead deduction.
(e) In the case of an apartment building owned and
operated as a cooperative, or as a life care facility, that
contains residential units that qualify as homestead property
of a qualified taxpayer under this Section, the maximum
cumulative exemption amount attributed to the entire building
or facility shall not exceed the sum of the exemptions

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calculated for each unit that is a qualified homestead
property. The cooperative association, management firm, or
other person or entity that manages or controls the
cooperative apartment building or life care facility shall
credit the exemption attributable to each residential unit
only to the apportioned tax liability of the qualified
taxpayer as to that unit. Any person who willfully refuses to
so credit the exemption is guilty of a Class B misdemeanor.
(f) When married persons maintain separate residences, the
exemption provided under this Section may be claimed by only
one such person and for only one residence. No person who
receives an exemption under Section 15-172 of this Code may
receive an exemption under this Section. No person who
receives an exemption under this Section may receive an
exemption under Section 15-175 or 15-176 of this Code.
(g) In the event of a sale or other transfer in ownership
of the homestead property between spouses or between a parent
and a child, the exemption under this Section remains in
effect if the new owner has a household income of $100,000 or
less.
(h) In the event of a sale or other transfer in ownership
of the homestead property other than subsection (g) of this
Section, the exemption under this Section shall remain in
effect for the remainder of the tax year and be calculated
using the same base homestead value in which the sale or
transfer occurs.

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(i) To receive the exemption, a person must submit an
application to the county assessor during the period specified
by the county assessor.
The county assessor shall annually give notice of the
application period by mail or by publication.
The taxpayer must submit, with the application, an
affidavit of the taxpayer's total household income, 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 establish, by rule, a method for verifying the accuracy
of affidavits filed by applicants under this Section, and the
Chief County Assessment Officer may conduct audits of any
taxpayer claiming an exemption under this Section to verify
that the taxpayer is eligible to receive the exemption. Each
application shall contain or be verified by a written
declaration that it is made under the penalties of perjury. A
taxpayer's signing a fraudulent application under this Act is
perjury, as defined in Section 32-2 of the Criminal Code of
2012. The applications shall be clearly marked as applications
for the Long-time Occupant Homestead Exemption and must
contain a notice that any taxpayer who receives the exemption
is subject to an audit by the Chief County Assessment Officer.
(j) 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.

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(Source: P.A. 97-1150, eff. 1-25-13.)