|
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1254 Introduced , by Rep. Joe Sosnowski SYNOPSIS AS INTRODUCED:
|
| |
Amends the Property Tax Code. Provides that the total property tax bill for any property receiving the senior citizens homestead exemption may not exceed 101% of the tax bill for the immediately preceding taxable year, unless the increase is due to improvements to the property that increased the property's fair market value in the applicable tax year.
| |
| | |
| | A BILL FOR |
|
|
| | HB1254 | | LRB103 05301 HLH 50319 b |
|
|
| 1 | | AN ACT concerning revenue.
|
| 2 | | Be it enacted by the People of the State of Illinois,
|
| 3 | | represented in the General Assembly:
|
| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 15-170 as follows:
|
| 6 | | (35 ILCS 200/15-170) |
| 7 | | Sec. 15-170. Senior citizens homestead exemption. |
| 8 | | (a) An annual homestead
exemption limited, except as |
| 9 | | described here with relation to cooperatives or
life care |
| 10 | | facilities, to a
maximum reduction set forth below from the |
| 11 | | property's value, as equalized or
assessed by the Department, |
| 12 | | is granted for property that is occupied as a
residence by a |
| 13 | | person 65 years of age or older who is liable for paying real
|
| 14 | | estate taxes on the property and is an owner of record of the |
| 15 | | property or has a
legal or equitable interest therein as |
| 16 | | evidenced by a written instrument,
except for a leasehold |
| 17 | | interest, other than a leasehold interest of land on
which a |
| 18 | | single family residence is located, which is occupied as a |
| 19 | | residence by
a person 65 years or older who has an ownership |
| 20 | | interest therein, legal,
equitable or as a lessee, and on |
| 21 | | which he or she is liable for the payment
of property taxes. |
| 22 | | Before taxable year 2004, the maximum reduction shall be |
| 23 | | $2,500 in counties with
3,000,000 or more inhabitants and |
|
| | HB1254 | - 2 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | $2,000 in all other counties. For taxable years 2004 through |
| 2 | | 2005, the maximum reduction shall be $3,000 in all counties. |
| 3 | | For taxable years 2006 and 2007, the maximum reduction shall |
| 4 | | be $3,500. For taxable years 2008 through 2011, the maximum |
| 5 | | reduction is $4,000 in all counties.
For taxable year 2012, |
| 6 | | the maximum reduction is $5,000 in counties with
3,000,000 or |
| 7 | | more inhabitants and $4,000 in all other counties. For taxable |
| 8 | | years 2013 through 2016, the maximum reduction is $5,000 in |
| 9 | | all counties. For taxable years 2017 through 2022, the maximum |
| 10 | | reduction is $8,000 in counties with 3,000,000 or more |
| 11 | | inhabitants and $5,000 in all other counties. For taxable |
| 12 | | years 2023 and thereafter, the maximum reduction is $8,000 in |
| 13 | | counties with 3,000,000 or more inhabitants and counties that |
| 14 | | are contiguous to a county of 3,000,000 or more inhabitants |
| 15 | | and $5,000 in all other counties. |
| 16 | | (b) For land
improved with an apartment building owned and |
| 17 | | operated as a cooperative, the maximum reduction from the |
| 18 | | value of the property, as
equalized
by the Department, shall |
| 19 | | be multiplied by the number of apartments or units
occupied by |
| 20 | | a person 65 years of age or older who is liable, by contract |
| 21 | | with
the owner or owners of record, for paying property taxes |
| 22 | | on the property and
is an owner of record of a legal or |
| 23 | | equitable interest in the cooperative
apartment building, |
| 24 | | other than a leasehold interest. For land improved with
a life |
| 25 | | care facility, the maximum reduction from the value of the |
| 26 | | property, as
equalized by the Department, shall be multiplied |
|
| | HB1254 | - 3 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | by the number of apartments or
units occupied by persons 65 |
| 2 | | years of age or older, irrespective of any legal,
equitable, |
| 3 | | or leasehold interest in the facility, who are liable, under a
|
| 4 | | contract with the owner or owners of record of the facility, |
| 5 | | for paying
property taxes on the property. In a
cooperative or |
| 6 | | a life care facility where a
homestead exemption has been |
| 7 | | granted, the cooperative association or the
management firm of |
| 8 | | the cooperative or facility shall credit the savings
resulting |
| 9 | | from that exemption only to
the apportioned tax liability of |
| 10 | | the owner or resident who qualified for
the exemption.
Any |
| 11 | | person who willfully refuses to so credit the savings shall be |
| 12 | | guilty of a
Class B misdemeanor. Under this Section and |
| 13 | | Sections 15-175, 15-176, and 15-177, "life care
facility" |
| 14 | | means a facility, as defined in Section 2 of the Life Care |
| 15 | | Facilities
Act, with which the applicant for the homestead |
| 16 | | exemption has a life care
contract as defined in that Act. |
| 17 | | (c) When a homestead exemption has been granted under this |
| 18 | | Section and the person
qualifying subsequently becomes a |
| 19 | | resident of a facility licensed under the Assisted Living and |
| 20 | | Shared Housing Act, the Nursing Home Care Act, the Specialized |
| 21 | | Mental Health Rehabilitation Act of 2013, the ID/DD Community |
| 22 | | Care Act, or the MC/DD Act, the exemption shall continue so |
| 23 | | long as the residence
continues to be occupied by the |
| 24 | | qualifying person's spouse if the spouse is 65
years of age or |
| 25 | | older, or if the residence remains unoccupied but is still
|
| 26 | | owned by the person qualified for the homestead exemption. |
|
| | HB1254 | - 4 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | (d) A person who will be 65 years of age
during the current |
| 2 | | assessment year
shall
be eligible to apply for the homestead |
| 3 | | exemption during that assessment
year.
Application shall be |
| 4 | | made during the application period in effect for the
county of |
| 5 | | his residence. |
| 6 | | (e) Beginning with assessment year 2003, for taxes payable |
| 7 | | in 2004,
property
that is first occupied as a residence after |
| 8 | | January 1 of any assessment year by
a person who is eligible |
| 9 | | for the senior citizens homestead exemption under this
Section |
| 10 | | must be granted a pro-rata exemption for the assessment year. |
| 11 | | The
amount of the pro-rata exemption is the exemption
allowed |
| 12 | | in the county under this Section divided by 365 and multiplied |
| 13 | | by the
number of days during the assessment year the property |
| 14 | | is occupied as a
residence by a
person eligible for the |
| 15 | | exemption under this Section. The chief county
assessment |
| 16 | | officer must adopt reasonable procedures to establish |
| 17 | | eligibility
for this pro-rata exemption. |
| 18 | | (f) The assessor or chief county assessment officer may |
| 19 | | determine the eligibility
of a life care facility to receive |
| 20 | | the benefits provided by this Section, by
affidavit, |
| 21 | | application, visual inspection, questionnaire or other |
| 22 | | reasonable
methods in order to insure that the tax savings |
| 23 | | resulting from the exemption
are credited by the management |
| 24 | | firm to the apportioned tax liability of each
qualifying |
| 25 | | resident. The assessor may request reasonable proof that the
|
| 26 | | management firm has so credited the exemption. |
|
| | HB1254 | - 5 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | (g) The chief county assessment officer of each county |
| 2 | | with less than 3,000,000
inhabitants shall provide to each |
| 3 | | person allowed a homestead exemption under
this Section a form |
| 4 | | to designate any other person to receive a
duplicate of any |
| 5 | | notice of delinquency in the payment of taxes assessed and
|
| 6 | | levied under this Code on the property of the person receiving |
| 7 | | the exemption.
The duplicate notice shall be in addition to |
| 8 | | the notice required to be
provided to the person receiving the |
| 9 | | exemption, and shall be given in the
manner required by this |
| 10 | | Code. The person filing the request for the duplicate
notice |
| 11 | | shall pay a fee of $5 to cover administrative costs to the |
| 12 | | supervisor of
assessments, who shall then file the executed |
| 13 | | designation with the county
collector. Notwithstanding any |
| 14 | | other provision of this Code to the contrary,
the filing of |
| 15 | | such an executed designation requires the county collector to
|
| 16 | | provide duplicate notices as indicated by the designation. A |
| 17 | | designation may
be rescinded by the person who executed such |
| 18 | | designation at any time, in the
manner and form required by the |
| 19 | | chief county assessment officer. |
| 20 | | (h) The assessor or chief county assessment officer may |
| 21 | | determine the
eligibility of residential property to receive |
| 22 | | the homestead exemption provided
by this Section by |
| 23 | | application, visual inspection, questionnaire or other
|
| 24 | | reasonable methods. The determination shall be made in |
| 25 | | accordance with
guidelines established by the Department. |
| 26 | | (i) In counties with 3,000,000 or more inhabitants, for |
|
| | HB1254 | - 6 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | taxable years 2010 through 2018, and beginning again in |
| 2 | | taxable year 2024, each taxpayer who has been granted an |
| 3 | | exemption under this Section must reapply on an annual basis. |
| 4 | | If a reapplication is required, then the chief county |
| 5 | | assessment officer shall mail the application to the taxpayer |
| 6 | | at least 60 days prior to the last day of the application |
| 7 | | period for the county. |
| 8 | | For taxable years 2019 through 2023, in counties with |
| 9 | | 3,000,000 or more inhabitants, a taxpayer who has been granted |
| 10 | | an exemption under this Section need not reapply. However, if |
| 11 | | the property ceases to be qualified for the exemption under |
| 12 | | this Section in any year for which a reapplication is not |
| 13 | | required under this Section, then the owner of record of the |
| 14 | | property shall notify the chief county assessment officer that |
| 15 | | the property is no longer qualified. In addition, for taxable |
| 16 | | years 2019 through 2023, the chief county assessment officer |
| 17 | | of a county with 3,000,000 or more inhabitants shall enter |
| 18 | | into an intergovernmental agreement with the county clerk of |
| 19 | | that county and the Department of Public Health, as well as any |
| 20 | | other appropriate governmental agency, to obtain information |
| 21 | | that documents the death of a taxpayer who has been granted an |
| 22 | | exemption under this Section. Notwithstanding any other |
| 23 | | provision of law, the county clerk and the Department of |
| 24 | | Public Health shall provide that information to the chief |
| 25 | | county assessment officer. The Department of Public Health |
| 26 | | shall supply this information no less frequently than every |
|
| | HB1254 | - 7 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | calendar quarter. Information concerning the death of a |
| 2 | | taxpayer may be shared with the county treasurer. The chief |
| 3 | | county assessment officer shall also enter into a data |
| 4 | | exchange agreement with the Social Security Administration or |
| 5 | | its agent to obtain access to the information regarding deaths |
| 6 | | in possession of the Social Security Administration. The chief |
| 7 | | county assessment officer shall, subject to the notice |
| 8 | | requirements under subsection (m) of Section 9-275, terminate |
| 9 | | the exemption under this Section if the information obtained |
| 10 | | indicates that the property is no longer qualified for the |
| 11 | | exemption. In counties with 3,000,000 or more inhabitants, the |
| 12 | | assessor and the county recorder of deeds shall establish |
| 13 | | policies and practices for the regular exchange of information |
| 14 | | for the purpose of alerting the assessor whenever the transfer |
| 15 | | of ownership of any property receiving an exemption under this |
| 16 | | Section has occurred. When such a transfer occurs, the |
| 17 | | assessor shall mail a notice to the new owner of the property |
| 18 | | (i) informing the new owner that the exemption will remain in |
| 19 | | place through the year of the transfer, after which it will be |
| 20 | | canceled, and (ii) providing information pertaining to the |
| 21 | | rules for reapplying for the exemption if the owner qualifies. |
| 22 | | In counties with 3,000,000 or more inhabitants, the chief |
| 23 | | county assessment official shall conduct audits of all |
| 24 | | exemptions granted under this Section no later than December |
| 25 | | 31, 2022 and no later than December 31, 2024. The audit shall |
| 26 | | be designed to ascertain whether any senior homestead |
|
| | HB1254 | - 8 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | exemptions have been granted erroneously. If it is determined |
| 2 | | that a senior homestead exemption has been erroneously applied |
| 3 | | to a property, the chief county assessment officer shall make |
| 4 | | use of the appropriate provisions of Section 9-275 in relation |
| 5 | | to the property that received the erroneous homestead |
| 6 | | exemption. |
| 7 | | (j) In counties with less than 3,000,000 inhabitants, the |
| 8 | | county board may by
resolution provide that if a person has |
| 9 | | been granted a homestead exemption
under this Section, the |
| 10 | | person qualifying need not reapply for the exemption. |
| 11 | | In counties with less than 3,000,000 inhabitants, if the |
| 12 | | assessor or chief
county assessment officer requires annual |
| 13 | | application for verification of
eligibility for an exemption |
| 14 | | once granted under this Section, the application
shall be |
| 15 | | mailed to the taxpayer. |
| 16 | | (l) The assessor or chief county assessment officer shall |
| 17 | | notify each person
who qualifies for an exemption under this |
| 18 | | Section that the person may also
qualify for deferral of real |
| 19 | | estate taxes under the Senior Citizens Real Estate
Tax |
| 20 | | Deferral Act. The notice shall set forth the qualifications |
| 21 | | needed for
deferral of real estate taxes, the address and |
| 22 | | telephone number of
county collector, and a
statement that |
| 23 | | applications for deferral of real estate taxes may be obtained
|
| 24 | | from the county collector. |
| 25 | | (l-5) Notwithstanding any other provision of law, |
| 26 | | beginning in levy year 2024, the total tax bill for any |
|
| | HB1254 | - 9 - | LRB103 05301 HLH 50319 b |
|
|
|
| 1 | | property receiving an exemption under this Section may not |
| 2 | | exceed 101% of the tax bill for the immediately preceding |
| 3 | | taxable year, unless the increase is due to improvements to |
| 4 | | the property that increased the property's fair market value |
| 5 | | in the applicable tax year. If the property's tax liability is |
| 6 | | reduced as a result of the provisions of this subsection, then |
| 7 | | the disbursements to each taxing district in which the |
| 8 | | property is located shall be reduced according to each taxing |
| 9 | | district's proportionate share of the property's total tax |
| 10 | | liability for the taxable year. |
| 11 | | (m) Notwithstanding Sections 6 and 8 of the State Mandates |
| 12 | | Act, no
reimbursement by the State is required for the |
| 13 | | implementation of any mandate
created by this Section. |
| 14 | | (Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20; |
| 15 | | 102-895, eff. 5-23-22.)
|