Bill Text: IL HB1428 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, for taxable years 2024 and thereafter, the term "maximum income limitation" for the low-income senior citizens assessment freeze homestead exemption means the greater of (i) $80,000 or (ii) $80,000 adjusted by certain increases in the consumer price index-u. Provides that the Department of Revenue shall, not later than January 31 of each calendar year, calculate, publish, and transmit to all county clerks and county treasurers the indexed maximum income limitation number. In provisions concerning the general homestead exemption, provides that, for taxable years 2024 and thereafter, the maximum reduction is $10,000 in all counties.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-01-31 - Referred to Rules Committee [HB1428 Detail]

Download: Illinois-2023-HB1428-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1428 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172
35 ILCS 200/15-175
Amends the Property Tax Code. Provides that, for taxable years 2024 and thereafter, the term "maximum income limitation" for the low-income senior citizens assessment freeze homestead exemption means the greater of (i) $80,000 or (ii) $80,000 adjusted by certain increases in the consumer price index-u. Provides that the Department of Revenue shall, not later than January 31 of each calendar year, calculate, publish, and transmit to all county clerks and county treasurers the indexed maximum income limitation number. In provisions concerning the general homestead exemption, provides that, for taxable years 2024 and thereafter, the maximum reduction is $10,000 in all counties.
LRB103 25817 HLH 52168 b
A BILL FOR
HB1428 LRB103 25817 HLH 52168 b
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 15-172 and 15-175 as follows:
(35 ILCS 200/15-172)
Sec. 15-172. Low-Income Senior Citizens Assessment Freeze
Homestead Exemption.
(a) This Section may be cited as the Low-Income Senior
Citizens 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
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

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(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 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.

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"Chief County Assessment Officer" means the County
Assessor or Supervisor of Assessments of the county in which
the property is located.
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"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
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

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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;
(5) $55,000 in taxable years 2008 through 2016;
(6) for taxable year 2017, (i) $65,000 for qualified
property located in a county with 3,000,000 or more
inhabitants and (ii) $55,000 for qualified property
located in a county with fewer than 3,000,000 inhabitants;
and
(7) for taxable years 2018 through 2023 and
thereafter, $65,000 for all qualified property; and .
(8) for taxable years 2024 and thereafter, the greater
of either (i) $80,000 or (ii) $80,000 multiplied by the
unadjusted percentage increase (but not less than zero) in
the consumer price index-u for the 12 months ending with
December preceding each January 1, including all previous
adjustments. The Department shall, by January 31, 2024 and
by January 31 of each calendar year thereafter, calculate,
publish, and transmit to all county clerks and county
treasurers the indexed maximum income limitation for the
applicable taxable year, as calculated under this
paragraph (8).
As an alternative income valuation, a homeowner who is

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enrolled in any of the following programs may be presumed to
have household income that does not exceed the maximum income
limitation for that tax year as required by this Section: Aid
to the Aged, Blind or Disabled (AABD) Program or the
Supplemental Nutrition Assistance Program (SNAP), both of
which are administered by the Department of Human Services;
the Low Income Home Energy Assistance Program (LIHEAP), which
is administered by the Department of Commerce and Economic
Opportunity; The Benefit Access program, which is administered
by the Department on Aging; and the Senior Citizens Real
Estate Tax Deferral Program.
A chief county assessment officer may indicate that he or
she has verified an applicant's income eligibility for this
exemption but may not report which program or programs, if
any, enroll the applicant. Release of personal information
submitted pursuant to this Section shall be deemed an
unwarranted invasion of personal privacy under the Freedom of
Information Act.
"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

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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 taxable year 1994, a low-income 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 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 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 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

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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 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

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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
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) 65 years of age or older, (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

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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
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, 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, the exemption under this Section
shall be granted to the surviving spouse for the taxable year

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preceding and the taxable year of the death, provided that,
except for age, 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 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

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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), 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 Low-Income Senior Citizens 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

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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 registered nurse,
or physician assistant stating the nature and extent of the
condition, that, in the physician's, advanced practice
registered 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
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 registered nurse, or

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physician assistant stating the nature and extent of the
condition, and that, in the physician's, advanced practice
registered 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,
(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 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

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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 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.

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Notwithstanding any other provision of law, for taxable
year 2017 and thereafter, in counties of 3,000,000 or more
inhabitants, the amount of the exemption shall be the greater
of (i) the amount of the exemption otherwise calculated under
this Section or (ii) $2,000.
(c-5) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2020 taxable year, without application, for any property
that was approved for this exemption for the 2019 taxable
year, provided that:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;
(2) the owner of record of the property as of January
1, 2020 is the same as the owner of record of the property
as of January 1, 2019;
(3) the exemption for the 2019 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the applicant for the 2019 taxable year has not
asked for the exemption to be removed for the 2019 or 2020
taxable years.
Nothing in this subsection shall preclude or impair the
authority of a chief county assessment officer to conduct
audits of any taxpayer claiming an exemption under this
Section to verify that the taxpayer is eligible to receive the

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exemption as provided elsewhere in this Section.
(c-10) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2021 taxable year, without application, for any property
that was approved for this exemption for the 2020 taxable
year, if:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;
(2) the owner of record of the property as of January
1, 2021 is the same as the owner of record of the property
as of January 1, 2020;
(3) the exemption for the 2020 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the taxpayer for the 2020 taxable year has not
asked for the exemption to be removed for the 2020 or 2021
taxable years.
Nothing in this subsection shall preclude or impair the
authority of a chief county assessment officer to conduct
audits of any taxpayer claiming an exemption under this
Section to verify that the taxpayer is eligible to receive the
exemption as provided elsewhere in this Section.
(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

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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. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
102-895, eff. 5-23-22.)
(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 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

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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 through 2022, the maximum
reduction is $10,000 in counties with 3,000,000 or more
inhabitants and $6,000 in all other counties. For taxable year
years 2023 and thereafter, the maximum reduction is $10,000 in
counties with 3,000,000 or more inhabitants, $8,000 in
counties that are contiguous to a county of 3,000,000 or more
inhabitants, and $6,000 in all other counties. For taxable
years 2024 and thereafter, the maximum reduction is $10,000 in
all 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,

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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 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

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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 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

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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:
"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

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(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 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

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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
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.

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(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
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

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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 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

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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. 102-895, eff. 5-23-22.)