Bill Text: IL HB0417 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0417 Detail]

Download: Illinois-2017-HB0417-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0417 Introduced , by Rep. Grant Wehrli SYNOPSIS AS INTRODUCED:
30 ILCS 805/8.28
35 ILCS 200/9-275
35 ILCS 200/15-10
35 ILCS 200/15-172
35 ILCS 200/15-175
Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. 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 State Mandates Act is amended by changing
Section 8.28 as follows:
(30 ILCS 805/8.28)
Sec. 8.28. Exempt mandate.
(a) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by Public Act 93-654, 93-677, 93-679,
93-689, 93-734, 93-753, 93-910, 93-917, 93-1036, 93-1038,
93-1079, or 93-1090.
(b) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by the Senior Citizens and Persons with
a Disability Assessment Freeze Homestead Exemption under
Section 15-172 of the Property Tax Code, the General Homestead
Exemption under Section 15-175 of the Property Tax Code, the
alternative General Homestead Exemption under Section 15-176
of the Property Tax Code, the Homestead Improvements Exemption
under Section 15-180 of the Property Tax Code, and by Public
Act 93-715.
(Source: P.A. 95-331, eff. 8-21-07.)

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Section 10. The Property Tax Code is amended by changing
Sections 9-275, 15-10, 15-172, and 15-175 as follows:
(35 ILCS 200/9-275)
Sec. 9-275. Erroneous homestead exemptions.
(a) For purposes of this Section:
"Erroneous homestead exemption" means a homestead
exemption that was granted for real property in a taxable year
if the property was not eligible for that exemption in that
taxable year. If the taxpayer receives an erroneous homestead
exemption under a single Section of this Code for the same
property in multiple years, that exemption is considered a
single erroneous homestead exemption for purposes of this
Section. However, if the taxpayer receives erroneous homestead
exemptions under multiple Sections of this Code for the same
property, or if the taxpayer receives erroneous homestead
exemptions under the same Section of this Code for multiple
properties, then each of those exemptions is considered a
separate erroneous homestead exemption for purposes of this
Section.
"Homestead exemption" means an exemption under Section
15-165 (veterans with disabilities), 15-167 (returning
veterans), 15-168 (persons with disabilities), 15-169
(standard homestead for veterans with disabilities), 15-170
(senior citizens), 15-172 (senior citizens and persons with a

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disability assessment freeze), 15-175 (general homestead),
15-176 (alternative general homestead), or 15-177 (long-time
occupant).
"Erroneous exemption principal amount" means the total
difference between the property taxes actually billed to a
property index number and the amount of property taxes that
would have been billed but for the erroneous exemption or
exemptions.
"Taxpayer" means the property owner or leasehold owner that
erroneously received a homestead exemption upon property.
(b) Notwithstanding any other provision of law, in counties
with 3,000,000 or more inhabitants, the chief county assessment
officer shall include the following information with each
assessment notice sent in a general assessment year: (1) a list
of each homestead exemption available under Article 15 of this
Code and a description of the eligibility criteria for that
exemption; (2) a list of each homestead exemption applied to
the property in the current assessment year; (3) information
regarding penalties and interest that may be incurred under
this Section if the taxpayer received an erroneous homestead
exemption in a previous taxable year; and (4) notice of the
60-day grace period available under this subsection. If, within
60 days after receiving his or her assessment notice, the
taxpayer notifies the chief county assessment officer that he
or she received an erroneous homestead exemption in a previous
taxable year, and if the taxpayer pays the erroneous exemption

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principal amount, plus interest as provided in subsection (f),
then the taxpayer shall not be liable for the penalties
provided in subsection (f) with respect to that exemption.
(c) In counties with 3,000,000 or more inhabitants, when
the chief county assessment officer determines that one or more
erroneous homestead exemptions was applied to the property, the
erroneous exemption principal amount, together with all
applicable interest and penalties as provided in subsections
(f) and (j), shall constitute a lien in the name of the People
of Cook County on the property receiving the erroneous
homestead exemption. Upon becoming aware of the existence of
one or more erroneous homestead exemptions, the chief county
assessment officer shall cause to be served, by both regular
mail and certified mail, a notice of discovery as set forth in
subsection (c-5). The chief county assessment officer in a
county with 3,000,000 or more inhabitants may cause a lien to
be recorded against property that (1) is located in the county
and (2) received one or more erroneous homestead exemptions if,
upon determination of the chief county assessment officer, the
taxpayer received: (A) one or 2 erroneous homestead exemptions
for real property, including at least one erroneous homestead
exemption granted for the property against which the lien is
sought, during any of the 3 collection years immediately prior
to the current collection year in which the notice of discovery
is served; or (B) 3 or more erroneous homestead exemptions for
real property, including at least one erroneous homestead

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exemption granted for the property against which the lien is
sought, during any of the 6 collection years immediately prior
to the current collection year in which the notice of discovery
is served. Prior to recording the lien against the property,
the chief county assessment officer shall cause to be served,
by both regular mail and certified mail, return receipt
requested, on the person to whom the most recent tax bill was
mailed and the owner of record, a notice of intent to record a
lien against the property. The chief county assessment officer
shall cause the notice of intent to record a lien to be served
within 3 years from the date on which the notice of discovery
was served.
(c-5) The notice of discovery described in subsection (c)
shall: (1) identify, by property index number, the property for
which the chief county assessment officer has knowledge
indicating the existence of an erroneous homestead exemption;
(2) set forth the taxpayer's liability for principal, interest,
penalties, and administrative costs including, but not limited
to, recording fees described in subsection (f); (3) inform the
taxpayer that he or she will be served with a notice of intent
to record a lien within 3 years from the date of service of the
notice of discovery; (4) inform the taxpayer that he or she may
pay the outstanding amount, plus interest, penalties, and
administrative costs at any time prior to being served with the
notice of intent to record a lien or within 30 days after the
notice of intent to record a lien is served; and (5) inform the

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taxpayer that, if the taxpayer provided notice to the chief
county assessment officer as provided in subsection (d-1) of
Section 15-175 of this Code, upon submission by the taxpayer of
evidence of timely notice and receipt thereof by the chief
county assessment officer, the chief county assessment officer
will withdraw the notice of discovery and reissue a notice of
discovery in compliance with this Section in which the taxpayer
is not liable for interest and penalties for the current tax
year in which the notice was received.
For the purposes of this subsection (c-5):
"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.
(d) The notice of intent to record a lien described in
subsection (c) shall: (1) identify, by property index number,
the property against which the lien is being sought; (2)
identify each specific homestead exemption that was
erroneously granted and the year or years in which each
exemption was granted; (3) set forth the erroneous exemption
principal amount due and the interest amount and any penalty
and administrative costs due; (4) inform the taxpayer that he
or she may request a hearing within 30 days after service and
may appeal the hearing officer's ruling to the circuit court;
(5) inform the taxpayer that he or she may pay the erroneous
exemption principal amount, plus interest and penalties,

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within 30 days after service; and (6) inform the taxpayer that,
if the lien is recorded against the property, the amount of the
lien will be adjusted to include the applicable recording fee
and that fees for recording a release of the lien shall be
incurred by the taxpayer. A lien shall not be filed pursuant to
this Section if the taxpayer pays the erroneous exemption
principal amount, plus penalties and interest, within 30 days
of service of the notice of intent to record a lien.
(e) The notice of intent to record a lien shall also
include a form that the taxpayer may return to the chief county
assessment officer to request a hearing. The taxpayer may
request a hearing by returning the form within 30 days after
service. The hearing shall be held within 90 days after the
taxpayer is served. The chief county assessment officer shall
promulgate rules of service and procedure for the hearing. The
chief county assessment officer must generally follow rules of
evidence and practices that prevail in the county circuit
courts, but, because of the nature of these proceedings, the
chief county assessment officer is not bound by those rules in
all particulars. The chief county assessment officer shall
appoint a hearing officer to oversee the hearing. The taxpayer
shall be allowed to present evidence to the hearing officer at
the hearing. After taking into consideration all the relevant
testimony and evidence, the hearing officer shall make an
administrative decision on whether the taxpayer was
erroneously granted a homestead exemption for the taxable year

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in question. The taxpayer may appeal the hearing officer's
ruling to the circuit court of the county where the property is
located as a final administrative decision under the
Administrative Review Law.
(f) A lien against the property imposed under this Section
shall be filed with the county recorder of deeds, but may not
be filed sooner than 60 days after the notice of intent to
record a lien was delivered to the taxpayer if the taxpayer
does not request a hearing, or until the conclusion of the
hearing and all appeals if the taxpayer does request a hearing.
If a lien is filed pursuant to this Section and the taxpayer
received one or 2 erroneous homestead exemptions during any of
the 3 collection years immediately prior to the current
collection year in which the notice of discovery is served,
then the erroneous exemption principal amount, plus 10%
interest per annum or portion thereof from the date the
erroneous exemption principal amount would have become due if
properly included in the tax bill, shall be charged against the
property by the chief county assessment officer. However, if a
lien is filed pursuant to this Section and the taxpayer
received 3 or more erroneous homestead exemptions during any of
the 6 collection years immediately prior to the current
collection year in which the notice of discovery is served, the
erroneous exemption principal amount, plus a penalty of 50% of
the total amount of the erroneous exemption principal amount
for that property and 10% interest per annum or portion thereof

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from the date the erroneous exemption principal amount would
have become due if properly included in the tax bill, shall be
charged against the property by the chief county assessment
officer. If a lien is filed pursuant to this Section, the
taxpayer shall not be liable for interest that accrues between
the date the notice of discovery is served and the date the
lien is filed. Before recording the lien with the county
recorder of deeds, the chief county assessment officer shall
adjust the amount of the lien to add administrative costs,
including but not limited to the applicable recording fee, to
the total lien amount.
(g) If a person received an erroneous homestead exemption
under Section 15-170 and: (1) the person was the spouse, child,
grandchild, brother, sister, niece, or nephew of the previous
taxpayer; and (2) the person received the property by bequest
or inheritance; then the person is not liable for the penalties
imposed under this Section for any year or years during which
the chief county assessment officer did not require an annual
application for the exemption. However, that person is
responsible for any interest owed under subsection (f).
(h) If the erroneous homestead exemption was granted as a
result of a clerical error or omission on the part of the chief
county assessment officer, and if the taxpayer has paid the tax
bills as received for the year in which the error occurred,
then the interest and penalties authorized by this Section with
respect to that homestead exemption shall not be chargeable to

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the taxpayer. However, nothing in this Section shall prevent
the collection of the erroneous exemption principal amount due
and owing.
(i) A lien under this Section is not valid as to (1) any
bona fide purchaser for value without notice of the erroneous
homestead exemption whose rights in and to the underlying
parcel arose after the erroneous homestead exemption was
granted but before the filing of the notice of lien; or (2) any
mortgagee, judgment creditor, or other lienor whose rights in
and to the underlying parcel arose before the filing of the
notice of lien. A title insurance policy for the property that
is issued by a title company licensed to do business in the
State showing that the property is free and clear of any liens
imposed under this Section shall be prima facie evidence that
the taxpayer is without notice of the erroneous homestead
exemption. Nothing in this Section shall be deemed to impair
the rights of subsequent creditors and subsequent purchasers
under Section 30 of the Conveyances Act.
(j) When a lien is filed against the property pursuant to
this Section, the chief county assessment officer shall mail a
copy of the lien to the person to whom the most recent tax bill
was mailed and to the owner of record, and the outstanding
liability created by such a lien is due and payable within 30
days after the mailing of the lien by the chief county
assessment officer. This liability is deemed delinquent and
shall bear interest beginning on the day after the due date at

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a rate of 1.5% per month or portion thereof. Payment shall be
made to the county treasurer. Upon receipt of the full amount
due, as determined by the chief county assessment officer, the
county treasurer shall distribute the amount paid as provided
in subsection (k). Upon presentment by the taxpayer to the
chief county assessment officer of proof of payment of the
total liability, the chief county assessment officer shall
provide in reasonable form a release of the lien. The release
of the lien provided shall clearly inform the taxpayer that it
is the responsibility of the taxpayer to record the lien
release form with the county recorder of deeds and to pay any
applicable recording fees.
(k) The county treasurer shall pay collected erroneous
exemption principal amounts, pro rata, to the taxing districts,
or their legal successors, that levied upon the subject
property in the taxable year or years for which the erroneous
homestead exemptions were granted, except as set forth in this
Section. The county treasurer shall deposit collected
penalties and interest into a special fund established by the
county treasurer to offset the costs of administration of the
provisions of this Section by the chief county assessment
officer's office, as appropriated by the county board. If the
costs of administration of this Section exceed the amount of
interest and penalties collected in the special fund, the chief
county assessor shall be reimbursed by each taxing district or
their legal successors for those costs. Such costs shall be

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paid out of the funds collected by the county treasurer on
behalf of each taxing district pursuant to this Section.
(l) The chief county assessment officer in a county with
3,000,000 or more inhabitants shall establish an amnesty period
for all taxpayers owing any tax due to an erroneous homestead
exemption granted in a tax year prior to the 2013 tax year. The
amnesty period shall begin on the effective date of this
amendatory Act of the 98th General Assembly and shall run
through December 31, 2013. If, during the amnesty period, the
taxpayer pays the entire arrearage of taxes due for tax years
prior to 2013, the county clerk shall abate and not seek to
collect any interest or penalties that may be applicable and
shall not seek civil or criminal prosecution for any taxpayer
for tax years prior to 2013. Failure to pay all such taxes due
during the amnesty period established under this Section shall
invalidate the amnesty period for that taxpayer.
The chief county assessment officer in a county with
3,000,000 or more inhabitants shall (i) mail notice of the
amnesty period with the tax bills for the second installment of
taxes for the 2012 assessment year and (ii) as soon as possible
after the effective date of this amendatory Act of the 98th
General Assembly, publish notice of the amnesty period in a
newspaper of general circulation in the county. Notices shall
include information on the amnesty period, its purpose, and the
method by which to make payment.
Taxpayers who are a party to any criminal investigation or

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to any civil or criminal litigation that is pending in any
circuit court or appellate court, or in the Supreme Court of
this State, for nonpayment, delinquency, or fraud in relation
to any property tax imposed by any taxing district located in
the State on the effective date of this amendatory Act of the
98th General Assembly may not take advantage of the amnesty
period.
A taxpayer who has claimed 3 or more homestead exemptions
in error shall not be eligible for the amnesty period
established under this subsection.
(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
98-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
7-27-15; 99-851, eff. 8-19-16.)
(35 ILCS 200/15-10)
Sec. 15-10. Exempt property; procedures for certification.
(a) All property granted an exemption by the Department
pursuant to the requirements of Section 15-5 and described in
the Sections following Section 15-30 and preceding Section
16-5, to the extent therein limited, is exempt from taxation.
In order to maintain that exempt status, the titleholder or the
owner of the beneficial interest of any property that is exempt
must file with the chief county assessment officer, on or
before January 31 of each year (May 31 in the case of property
exempted by Section 15-170), an affidavit stating whether there
has been any change in the ownership or use of the property,

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the status of the owner-resident, the satisfaction by a
relevant hospital entity of the condition for an exemption
under Section 15-86, or that a veteran with a disability who
qualifies under Section 15-165 owned and used the property as
of January 1 of that year. The nature of any change shall be
stated in the affidavit. Failure to file an affidavit shall, in
the discretion of the assessment officer, constitute cause to
terminate the exemption of that property, notwithstanding any
other provision of this Code. Owners of 5 or more such exempt
parcels within a county may file a single annual affidavit in
lieu of an affidavit for each parcel. The assessment officer,
upon request, shall furnish an affidavit form to the owners, in
which the owner may state whether there has been any change in
the ownership or use of the property or status of the owner or
resident as of January 1 of that year. The owner of 5 or more
exempt parcels shall list all the properties giving the same
information for each parcel as required of owners who file
individual affidavits.
(b) However, titleholders or owners of the beneficial
interest in any property exempted under any of the following
provisions are not required to submit an annual filing under
this Section:
(1) Section 15-45 (burial grounds) in counties of less
than 3,000,000 inhabitants and owned by a not-for-profit
organization.
(2) Section 15-40.

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(3) Section 15-50 (United States property).
(c) If there is a change in use or ownership, however,
notice must be filed pursuant to Section 15-20.
(d) An application for homestead exemptions shall be filed
as provided in Section 15-170 (senior citizens homestead
exemption), Section 15-172 (senior citizens and persons with a
disability assessment freeze homestead exemption), and
Sections 15-175 (general homestead exemption), 15-176 (general
alternative homestead exemption), and 15-177 (long-time
occupant homestead exemption), respectively.
(e) For purposes of determining satisfaction of the
condition for an exemption under Section 15-86:
(1) The "year for which exemption is sought" is the
year prior to the year in which the affidavit is due.
(2) The "hospital year" is the fiscal year of the
relevant hospital entity, or the fiscal year of one of the
hospitals in the hospital system if the relevant hospital
entity is a hospital system with members with different
fiscal years, that ends in the year prior to the year in
which the affidavit is due. However, if that fiscal year
ends 3 months or less before the date on which the
affidavit is due, the relevant hospital entity shall file
an interim affidavit based on the currently available
information, and shall file a supplemental affidavit
within 90 days of date on which the application was due, if
the information in the relevant hospital entity's audited

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financial statements changes the interim affidavit's
statement concerning the entity's compliance with the
calculation required by Section 15-86.
(3) The affidavit shall be accompanied by an exhibit
prepared by the relevant hospital entity showing (A) the
value of the relevant hospital entity's services and
activities, if any, under items (1) through (7) of
subsection (e) of Section 15-86, stated separately for each
item, and (B) the value relating to the relevant hospital
entity's estimated property tax liability under paragraphs
(A), (B), and (C) of item (1) of subsection (g) of Section
15-86; under paragraphs (A), (B), and (C) of item (2) of
subsection (g) of Section 15-86; and under item (3) of
subsection (g) of Section 15-86.
(Source: P.A. 99-143, eff. 7-27-15.)
(35 ILCS 200/15-172)
Sec. 15-172. Senior Citizens and Persons with a Disability
Assessment Freeze Homestead Exemption.
(a) This Section may be cited as the Senior Citizens and
Persons with a Disability Assessment Freeze Homestead
Exemption.
(b) As used in this Section:
"Applicant" means an individual who has filed an
application under this Section.
"Base amount" means the base year equalized assessed value

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of the residence plus the first year's equalized assessed value
of any added improvements which increased the assessed value of
the residence after the base year.
"Base year" means the taxable year prior to the taxable
year for which the applicant first qualifies and applies for
the exemption provided that in the prior taxable year the
property was improved with a permanent structure that was
occupied as a residence by the applicant who was liable for
paying real property taxes on the property and who was either
(i) an owner of record of the property or had legal or
equitable interest in the property as evidenced by a written
instrument or (ii) had a legal or equitable interest as a
lessee in the parcel of property that was single family
residence. If in any subsequent taxable year for which the
applicant applies and qualifies for the exemption the equalized
assessed value of the residence is less than the equalized
assessed value in the existing base year (provided that such
equalized assessed value is not based on an assessed value that
results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years), then
that subsequent taxable year shall become the base year until a
new base year is established under the terms of this paragraph.
For taxable year 1999 only, the Chief County Assessment Officer
shall review (i) all taxable years for which the applicant
applied and qualified for the exemption and (ii) the existing
base year. The assessment officer shall select as the new base

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year the year with the lowest equalized assessed value. An
equalized assessed value that is based on an assessed value
that results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years shall
not be considered the lowest equalized assessed value. The
selected year shall be the base year for taxable year 1999 and
thereafter until a new base year is established under the terms
of this paragraph.
"Chief County Assessment Officer" means the County
Assessor or Supervisor of Assessments of the county in which
the property is located.
"Equalized assessed value" means the assessed value as
equalized by the Illinois Department of Revenue.
"Household" means the applicant, the spouse of the
applicant, and all persons using the residence of the applicant
as their principal place of residence.
"Household income" means the combined income of the members
of a household for the calendar year preceding the taxable
year.
"Income" has the same meaning as provided in Section 3.07
of the Senior Citizens and Persons with Disabilities Property
Tax Relief Act, except that, beginning in assessment year 2001,
"income" does not include veteran's benefits.
"Internal Revenue Code of 1986" means the United States
Internal Revenue Code of 1986 or any successor law or laws
relating to federal income taxes in effect for the year

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preceding the taxable year.
"Life care facility that qualifies as a cooperative" means
a facility as defined in Section 2 of the Life Care Facilities
Act.
"Maximum income limitation" means:
(1) $35,000 prior to taxable year 1999;
(2) $40,000 in taxable years 1999 through 2003;
(3) $45,000 in taxable years 2004 through 2005;
(4) $50,000 in taxable years 2006 and 2007; and
(5) $55,000 in taxable year 2008 and thereafter.
"Person with a disability" means a person unable to engage
in any substantial gainful activity by reason of a medically
determinable physical or mental impairment that (i) can be
expected to result in death or (ii) has lasted or can be
expected to last for a continuous period of not less than 12
months. Persons applying for the exemption under this Section
as a person with a disability must submit proof of the
disability in the manner prescribed by the chief county
assessment officer. Proof that an applicant is eligible to
receive disability benefits under the federal Social Security
Act constitutes proof of disability for purposes of this
Section. Issuance of an Illinois Person with a Disability
Identification Card to the applicant stating that the possessor
is under a Class 2 disability, as defined in Section 4A of the
Illinois Identification Card Act, constitutes proof that the
person is a person with a disability for purposes of this

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Section.
"Residence" means the principal dwelling place and
appurtenant structures used for residential purposes in this
State occupied on January 1 of the taxable year by a household
and so much of the surrounding land, constituting the parcel
upon which the dwelling place is situated, as is used for
residential purposes. If the Chief County Assessment Officer
has established a specific legal description for a portion of
property constituting the residence, then that portion of
property shall be deemed the residence for the purposes of this
Section.
"Taxable year" means the calendar year during which ad
valorem property taxes payable in the next succeeding year are
levied.
(c) Beginning in (1) taxable year 1994 for senior citizens
and (2) taxable year 2017 for persons with a disability, an a
senior citizens assessment freeze homestead exemption is
granted for real property that is improved with a permanent
structure that is occupied as a residence by an applicant who
(i) is 65 years of age or older or is a person with a disability
during the taxable year, (ii) has a household income that does
not exceed the maximum income limitation, (iii) is liable for
paying real property taxes on the property, and (iv) is an
owner of record of the property or has a legal or equitable
interest in the property as evidenced by a written instrument.
This homestead exemption shall also apply to a leasehold

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interest in a parcel of property improved with a permanent
structure that is a single family residence that is occupied as
a residence by a person who (i) is 65 years of age or older or
is a person with a disability during the taxable year, (ii) has
a household income that does not exceed the maximum income
limitation, (iii) has a legal or equitable ownership interest
in the property as lessee, and (iv) is liable for the payment
of real property taxes on that property.
In counties of 3,000,000 or more inhabitants, the amount of
the exemption for all taxable years is the equalized assessed
value of the residence in the taxable year for which
application is made minus the base amount. In all other
counties, the amount of the exemption is as follows: (i)
through taxable year 2005 and for taxable year 2007 and
thereafter, the amount of this exemption shall be the equalized
assessed value of the residence in the taxable year for which
application is made minus the base amount; and (ii) for taxable
year 2006, the amount of the exemption is as follows:
(1) For an applicant who has a household income of
$45,000 or less, the amount of the exemption is the
equalized assessed value of the residence in the taxable
year for which application is made minus the base amount.
(2) For an applicant who has a household income
exceeding $45,000 but not exceeding $46,250, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made

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minus the base amount (ii) multiplied by 0.8.
(3) For an applicant who has a household income
exceeding $46,250 but not exceeding $47,500, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.6.
(4) For an applicant who has a household income
exceeding $47,500 but not exceeding $48,750, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.4.
(5) For an applicant who has a household income
exceeding $48,750 but not exceeding $50,000, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is made
minus the base amount (ii) multiplied by 0.2.
When the applicant is a surviving spouse of an applicant
for a prior year for the same residence for which an exemption
under this Section has been granted, the base year and base
amount for that residence are the same as for the applicant for
the prior year.
Each year at the time the assessment books are certified to
the County Clerk, the Board of Review or Board of Appeals shall
give to the County Clerk a list of the assessed values of
improvements on each parcel qualifying for this exemption that
were added after the base year for this parcel and that

HB0417 - 23 - LRB100 04234 HLH 14240 b
increased the assessed value of the property.
In the case of land improved with an apartment building
owned and operated as a cooperative or a building that is a
life care facility that qualifies as a cooperative, the maximum
reduction from the equalized assessed value of the property is
limited to the sum of the reductions calculated for each unit
occupied as a residence by a person or persons (i) who is 65
years of age or older or a person with a disability, (ii) with
a household income that does not exceed the maximum income
limitation, (iii) who is liable, by contract with the owner or
owners of record, for paying real property taxes on the
property, and (iv) who is an owner of record of a legal or
equitable interest in the cooperative apartment building,
other than a leasehold interest. In the instance of a
cooperative where a homestead exemption has been granted under
this Section, the cooperative association or its management
firm shall credit the savings resulting from that exemption
only to the apportioned tax liability of the owner who
qualified for the exemption. Any person who willfully refuses
to credit that savings to an owner who qualifies for the
exemption is guilty of a Class B misdemeanor.
When a homestead exemption has been granted under this
Section and an applicant then 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

HB0417 - 24 - LRB100 04234 HLH 14240 b
the MC/DD Act, the exemption shall be granted in subsequent
years so long as the residence (i) continues to be occupied by
the qualified applicant's spouse or (ii) if remaining
unoccupied, is still owned by the qualified applicant for the
homestead exemption.
Beginning January 1, 1997 for senior citizens and January
1, 2017 for persons with a disability, when an individual dies
who would have qualified for an exemption under this Section,
and the surviving spouse does not independently qualify for
this exemption because of age or nondisability, the exemption
under this Section shall be granted to the surviving spouse for
the taxable year preceding and the taxable year of the death,
provided that, except for age or nondisability, the surviving
spouse meets all other qualifications for the granting of this
exemption for those years.
When married persons maintain separate residences, the
exemption provided for in this Section may be claimed by only
one of such persons and for only one residence.
For taxable year 1994 only, in counties having less than
3,000,000 inhabitants, to receive the exemption, a person shall
submit an application by February 15, 1995 to the Chief County
Assessment Officer of the county in which the property is
located. In counties having 3,000,000 or more inhabitants, for
taxable year 1994 and all subsequent taxable years, to receive
the exemption, a person may submit an application to the Chief
County Assessment Officer of the county in which the property

HB0417 - 25 - LRB100 04234 HLH 14240 b
is located during such period as may be specified by the Chief
County Assessment Officer. The Chief County Assessment Officer
in counties of 3,000,000 or more inhabitants shall annually
give notice of the application period by mail or by
publication. In counties having less than 3,000,000
inhabitants, beginning with taxable year 1995 and thereafter,
to receive the exemption, a person shall submit an application
by July 1 of each taxable year to the Chief County Assessment
Officer of the county in which the property is located. A
county may, by ordinance, establish a date for submission of
applications that is different than July 1. The applicant shall
submit with the application 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),
disability (if applying for the exemption as a person with a
disability), 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

HB0417 - 26 - LRB100 04234 HLH 14240 b
2012. The applications shall be clearly marked as applications
for the Senior Citizens and Persons with a Disability
Assessment Freeze 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.
Notwithstanding any other provision to the contrary, in
counties having fewer than 3,000,000 inhabitants, if an
applicant fails to file the application required by this
Section in a timely manner and this failure to file is due to a
mental or physical condition sufficiently severe so as to
render the applicant incapable of filing the application in a
timely manner, the Chief County Assessment Officer may extend
the filing deadline for a period of 30 days after the applicant
regains the capability to file the application, but in no case
may the filing deadline be extended beyond 3 months of the
original filing deadline. In order to receive the extension
provided in this paragraph, the applicant shall provide the
Chief County Assessment Officer with a signed statement from
the applicant's physician, advanced practice nurse, or
physician assistant stating the nature and extent of the
condition, that, in the physician's, advanced practice
nurse's, or physician assistant's opinion, the condition was so
severe that it rendered the applicant incapable of filing the
application in a timely manner, and the date on which the
applicant regained the capability to file the application.
Beginning January 1, 1998, notwithstanding any other

HB0417 - 27 - LRB100 04234 HLH 14240 b
provision to the contrary, in counties having fewer than
3,000,000 inhabitants, if an applicant fails to file the
application required by this Section in a timely manner and
this failure to file is due to a mental or physical condition
sufficiently severe so as to render the applicant incapable of
filing the application in a timely manner, the Chief County
Assessment Officer may extend the filing deadline for a period
of 3 months. In order to receive the extension provided in this
paragraph, the applicant shall provide the Chief County
Assessment Officer with a signed statement from the applicant's
physician, advanced practice nurse, or physician assistant
stating the nature and extent of the condition, and that, in
the physician's, advanced practice nurse's, or physician
assistant's opinion, the condition was so severe that it
rendered the applicant incapable of filing the application in a
timely manner.
In counties having less than 3,000,000 inhabitants, if an
applicant was denied an exemption in taxable year 1994 and the
denial occurred due to an error on the part of an assessment
official, or his or her agent or employee, then beginning in
taxable year 1997 the applicant's base year, for purposes of
determining the amount of the exemption, shall be 1993 rather
than 1994. In addition, in taxable year 1997, the applicant's
exemption shall also include an amount equal to (i) the amount
of any exemption denied to the applicant in taxable year 1995
as a result of using 1994, rather than 1993, as the base year,

HB0417 - 28 - LRB100 04234 HLH 14240 b
(ii) the amount of any exemption denied to the applicant in
taxable year 1996 as a result of using 1994, rather than 1993,
as the base year, and (iii) the amount of the exemption
erroneously denied for taxable year 1994.
For purposes of this Section, a person who will be 65 years
of age or a person with a disability during the current taxable
year shall be eligible to apply for the homestead exemption
during that taxable year. Application shall be made during the
application period in effect for the county of his or her
residence.
The Chief County Assessment Officer may determine the
eligibility of a life care facility that qualifies as a
cooperative to receive the benefits provided by this Section by
use of an affidavit, application, visual inspection,
questionnaire, or other reasonable method 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 Chief County Assessment Officer may
request reasonable proof that the management firm has so
credited that exemption.
Except as provided in this Section, all information
received by the chief county assessment officer or the
Department from applications filed under this Section, or from
any investigation conducted under the provisions of this
Section, shall be confidential, except for official purposes or
pursuant to official procedures for collection of any State or

HB0417 - 29 - LRB100 04234 HLH 14240 b
local tax or enforcement of any civil or criminal penalty or
sanction imposed by this Act or by any statute or ordinance
imposing a State or local tax. Any person who divulges any such
information in any manner, except in accordance with a proper
judicial order, is guilty of a Class A misdemeanor.
Nothing contained in this Section shall prevent the
Director or chief county assessment officer from publishing or
making available reasonable statistics concerning the
operation of the exemption contained in this Section in which
the contents of claims are grouped into aggregates in such a
way that information contained in any individual claim shall
not be disclosed.
(d) Each Chief County Assessment Officer shall annually
publish a notice of availability of the exemption provided
under this Section. The notice shall be published at least 60
days but no more than 75 days prior to the date on which the
application must be submitted to the Chief County Assessment
Officer of the county in which the property is located. The
notice shall appear in a newspaper of general circulation in
the county.
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. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
99-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
7-28-16.)

HB0417 - 30 - LRB100 04234 HLH 14240 b
(35 ILCS 200/15-175)
Sec. 15-175. General homestead exemption.
(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, 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 and
thereafter, the maximum reduction is $7,000 in counties with

HB0417 - 31 - LRB100 04234 HLH 14240 b
3,000,000 or more inhabitants and $6,000 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 and persons with
a disability 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
value of the property for 1977 shall be applied to the property
on a proportionate basis for the period the property qualified

HB0417 - 32 - LRB100 04234 HLH 14240 b
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
on the part of the chief county assessment officer as described
in subsection (h) of Section 9-275, and the property owner

HB0417 - 33 - LRB100 04234 HLH 14240 b
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
(4) that the lease must include the following language
in substantially the following form:

HB0417 - 34 - LRB100 04234 HLH 14240 b
"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
his or their principal dwelling place, or that is a leasehold
interest on which a single family residence is situated, which

HB0417 - 35 - LRB100 04234 HLH 14240 b
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 or a building which is a life care facility as
defined in Section 15-170 and considered to be a cooperative
under Section 15-170, 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
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
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"

HB0417 - 36 - LRB100 04234 HLH 14240 b
does not include veteran's benefits.
(g) In a cooperative where a homestead exemption has been
granted, the cooperative association or its management firm
shall credit the savings resulting from that exemption only to
the apportioned tax liability of the owner 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
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

HB0417 - 37 - LRB100 04234 HLH 14240 b
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
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.

HB0417 - 38 - LRB100 04234 HLH 14240 b
(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.
(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143,
eff. 7-27-15; 99-164, eff. 7-28-15; 99-642, eff. 7-28-16;
99-851, eff. 8-19-16.)
Section 99. Effective date. This Act takes effect upon
becoming law.