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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1428 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
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| 35 ILCS 200/15-172 | | 35 ILCS 200/15-175 | |
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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.
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| | A BILL FOR |
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| | HB1428 | | LRB103 25817 HLH 52168 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Sections 15-172 and 15-175 as follows:
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| 6 | | (35 ILCS 200/15-172)
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| 7 | | Sec. 15-172. Low-Income Senior Citizens Assessment Freeze |
| 8 | | Homestead Exemption.
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| 9 | | (a) This Section may be cited as the Low-Income Senior |
| 10 | | Citizens Assessment
Freeze Homestead Exemption.
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| 11 | | (b) As used in this Section:
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| 12 | | "Applicant" means an individual who has filed an |
| 13 | | application under this
Section.
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| 14 | | "Base amount" means the base year equalized assessed value |
| 15 | | of the residence
plus the first year's equalized assessed |
| 16 | | value of any added improvements which
increased the assessed |
| 17 | | value of the residence after the base year.
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| 18 | | "Base year" means the taxable year prior to the taxable |
| 19 | | year for which the
applicant first qualifies and applies for |
| 20 | | the exemption provided that in the
prior taxable year the |
| 21 | | property was improved with a permanent structure that
was |
| 22 | | occupied as a residence by the applicant who was liable for |
| 23 | | paying real
property taxes on the property and who was either |
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| 1 | | (i) an owner of record of the
property or had legal or |
| 2 | | equitable interest in the property as evidenced by a
written |
| 3 | | instrument or (ii) had a legal or equitable interest as a |
| 4 | | lessee in the
parcel of property that was single family |
| 5 | | residence.
If in any subsequent taxable year for which the |
| 6 | | applicant applies and
qualifies for the exemption the |
| 7 | | equalized assessed value of the residence is
less than the |
| 8 | | equalized assessed value in the existing base year
(provided |
| 9 | | that such equalized assessed value is not
based
on an
assessed |
| 10 | | value that results from a temporary irregularity in the |
| 11 | | property that
reduces the
assessed value for one or more |
| 12 | | taxable years), then that
subsequent taxable year shall become |
| 13 | | the base year until a new base year is
established under the |
| 14 | | terms of this paragraph. For taxable year 1999 only, the
Chief |
| 15 | | County Assessment Officer shall review (i) all taxable years |
| 16 | | for which
the
applicant applied and qualified for the |
| 17 | | exemption and (ii) the existing base
year.
The assessment |
| 18 | | officer shall select as the new base year the year with the
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| 19 | | lowest equalized assessed value.
An equalized assessed value |
| 20 | | that is based on an assessed value that results
from a
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| 21 | | temporary irregularity in the property that reduces the |
| 22 | | assessed value for one
or more
taxable years shall not be |
| 23 | | considered the lowest equalized assessed value.
The selected |
| 24 | | year shall be the base year for
taxable year 1999 and |
| 25 | | thereafter until a new base year is established under the
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| 26 | | terms of this paragraph.
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| 1 | | "Chief County Assessment Officer" means the County |
| 2 | | Assessor or Supervisor of
Assessments of the county in which |
| 3 | | the property is located.
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| 4 | | "Consumer price index-u" means
the index published by the |
| 5 | | Bureau of Labor Statistics of the United States
Department of |
| 6 | | Labor that measures the average change in prices of goods and
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| 7 | | services purchased by all urban consumers, United States city |
| 8 | | average, all
items, 1982-84 = 100. |
| 9 | | "Equalized assessed value" means the assessed value as |
| 10 | | equalized by the
Illinois Department of Revenue.
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| 11 | | "Household" means the applicant, the spouse of the |
| 12 | | applicant, and all persons
using the residence of the |
| 13 | | applicant as their principal place of residence.
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| 14 | | "Household income" means the combined income of the |
| 15 | | members of a household
for the calendar year preceding the |
| 16 | | taxable year.
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| 17 | | "Income" has the same meaning as provided in Section 3.07 |
| 18 | | of the Senior
Citizens and Persons with Disabilities Property |
| 19 | | Tax Relief
Act, except that, beginning in assessment year |
| 20 | | 2001, "income" does not
include veteran's benefits.
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| 21 | | "Internal Revenue Code of 1986" means the United States |
| 22 | | Internal Revenue Code
of 1986 or any successor law or laws |
| 23 | | relating to federal income taxes in effect
for the year |
| 24 | | preceding the taxable year.
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| 25 | | "Life care facility that qualifies as a cooperative" means |
| 26 | | a facility as
defined in Section 2 of the Life Care Facilities |
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| 1 | | Act.
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| 2 | | "Maximum income limitation" means: |
| 3 | | (1) $35,000 prior
to taxable year 1999; |
| 4 | | (2) $40,000 in taxable years 1999 through 2003; |
| 5 | | (3) $45,000 in taxable years 2004 through 2005; |
| 6 | | (4) $50,000 in taxable years 2006 and 2007; |
| 7 | | (5) $55,000 in taxable years 2008 through 2016;
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| 8 | | (6) for taxable year 2017, (i) $65,000 for qualified |
| 9 | | property located in a county with 3,000,000 or more |
| 10 | | inhabitants and (ii) $55,000 for qualified property |
| 11 | | located in a county with fewer than 3,000,000 inhabitants; |
| 12 | | and |
| 13 | | (7) for taxable years 2018 through 2023 and |
| 14 | | thereafter, $65,000 for all qualified property; and . |
| 15 | | (8) for taxable years 2024 and thereafter, the greater |
| 16 | | of either (i) $80,000 or (ii) $80,000 multiplied by the |
| 17 | | unadjusted percentage increase (but not less than zero) in |
| 18 | | the consumer price index-u for the 12 months ending with |
| 19 | | December preceding each January 1, including all previous |
| 20 | | adjustments. The Department shall, by January 31, 2024 and |
| 21 | | by January 31 of each calendar year thereafter, calculate, |
| 22 | | publish, and transmit to all county clerks and county |
| 23 | | treasurers the indexed maximum income limitation for the |
| 24 | | applicable taxable year, as calculated under this |
| 25 | | paragraph (8). |
| 26 | | As an alternative income valuation, a homeowner who is |
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| 1 | | enrolled in any of the following programs may be presumed to |
| 2 | | have household income that does not exceed the maximum income |
| 3 | | limitation for that tax year as required by this Section: Aid |
| 4 | | to the Aged, Blind or Disabled (AABD) Program or the |
| 5 | | Supplemental Nutrition Assistance Program (SNAP), both of |
| 6 | | which are administered by the Department of Human Services; |
| 7 | | the Low Income Home Energy Assistance Program (LIHEAP), which |
| 8 | | is administered by the Department of Commerce and Economic |
| 9 | | Opportunity; The Benefit Access program, which is administered |
| 10 | | by the Department on Aging; and the Senior Citizens Real |
| 11 | | Estate Tax Deferral Program. |
| 12 | | A chief county assessment officer may indicate that he or |
| 13 | | she has verified an applicant's income eligibility for this |
| 14 | | exemption but may not report which program or programs, if |
| 15 | | any, enroll the applicant. Release of personal information |
| 16 | | submitted pursuant to this Section shall be deemed an |
| 17 | | unwarranted invasion of personal privacy under the Freedom of |
| 18 | | Information Act. |
| 19 | | "Residence" means the principal dwelling place and |
| 20 | | appurtenant structures
used for residential purposes in this |
| 21 | | State occupied on January 1 of the
taxable year by a household |
| 22 | | and so much of the surrounding land, constituting
the parcel |
| 23 | | upon which the dwelling place is situated, as is used for
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| 24 | | residential purposes. If the Chief County Assessment Officer |
| 25 | | has established a
specific legal description for a portion of |
| 26 | | property constituting the
residence, then that portion of |
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| 1 | | property shall be deemed the residence for the
purposes of |
| 2 | | this Section.
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| 3 | | "Taxable year" means the calendar year during which ad |
| 4 | | valorem property taxes
payable in the next succeeding year are |
| 5 | | levied.
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| 6 | | (c) Beginning in taxable year 1994, a low-income senior |
| 7 | | citizens assessment freeze
homestead exemption is granted for |
| 8 | | real property that is improved with a
permanent structure that |
| 9 | | is occupied as a residence by an applicant who (i) is
65 years |
| 10 | | of age or older during the taxable year, (ii) has a household |
| 11 | | income that does not exceed the maximum income limitation, |
| 12 | | (iii) is liable for paying real property taxes on
the
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| 13 | | property, and (iv) is an owner of record of the property or has |
| 14 | | a legal or
equitable interest in the property as evidenced by a |
| 15 | | written instrument. This
homestead exemption shall also apply |
| 16 | | to a leasehold interest in a parcel of
property improved with a |
| 17 | | permanent structure that is a single family residence
that is |
| 18 | | occupied as a residence by a person who (i) is 65 years of age |
| 19 | | or older
during the taxable year, (ii) has a household income |
| 20 | | that does not exceed the maximum income limitation,
(iii)
has |
| 21 | | a legal or equitable ownership interest in the property as |
| 22 | | lessee, and (iv)
is liable for the payment of real property |
| 23 | | taxes on that property.
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| 24 | | In counties of 3,000,000 or more inhabitants, the amount |
| 25 | | of the exemption for all taxable years is the equalized |
| 26 | | assessed value of the
residence in the taxable year for which |
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| 1 | | application is made minus the base
amount. In all other |
| 2 | | counties, the amount of the exemption is as follows: (i) |
| 3 | | through taxable year 2005 and for taxable year 2007 and |
| 4 | | thereafter, the amount of this exemption shall be the |
| 5 | | equalized assessed value of the
residence in the taxable year |
| 6 | | for which application is made minus the base
amount; and (ii) |
| 7 | | for
taxable year 2006, the amount of the exemption is as |
| 8 | | follows:
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| 9 | | (1) For an applicant who has a household income of |
| 10 | | $45,000 or less, the amount of the exemption is the |
| 11 | | equalized assessed value of the
residence in the taxable |
| 12 | | year for which application is made minus the base
amount. |
| 13 | | (2) For an applicant who has a household income |
| 14 | | exceeding $45,000 but not exceeding $46,250, the amount of |
| 15 | | the exemption is (i) the equalized assessed value of the
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| 16 | | residence in the taxable year for which application is |
| 17 | | made minus the base
amount (ii) multiplied by 0.8. |
| 18 | | (3) For an applicant who has a household income |
| 19 | | exceeding $46,250 but not exceeding $47,500, the amount of |
| 20 | | the exemption is (i) the equalized assessed value of the
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| 21 | | residence in the taxable year for which application is |
| 22 | | made minus the base
amount (ii) multiplied by 0.6. |
| 23 | | (4) For an applicant who has a household income |
| 24 | | exceeding $47,500 but not exceeding $48,750, the amount of |
| 25 | | the exemption is (i) the equalized assessed value of the
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| 26 | | residence in the taxable year for which application is |
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| 1 | | made minus the base
amount (ii) multiplied by 0.4. |
| 2 | | (5) For an applicant who has a household income |
| 3 | | exceeding $48,750 but not exceeding $50,000, the amount of |
| 4 | | the exemption is (i) the equalized assessed value of the
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| 5 | | residence in the taxable year for which application is |
| 6 | | made minus the base
amount (ii) multiplied by 0.2.
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| 7 | | When the applicant is a surviving spouse of an applicant |
| 8 | | for a prior year for
the same residence for which an exemption |
| 9 | | under this Section has been granted,
the base year and base |
| 10 | | amount for that residence are the same as for the
applicant for |
| 11 | | the prior year.
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| 12 | | Each year at the time the assessment books are certified |
| 13 | | to the County Clerk,
the Board of Review or Board of Appeals |
| 14 | | shall give to the County Clerk a list
of the assessed values of |
| 15 | | improvements on each parcel qualifying for this
exemption that |
| 16 | | were added after the base year for this parcel and that
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| 17 | | increased the assessed value of the property.
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| 18 | | In the case of land improved with an apartment building |
| 19 | | owned and operated as
a cooperative or a building that is a |
| 20 | | life care facility that qualifies as a
cooperative, the |
| 21 | | maximum reduction from the equalized assessed value of the
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| 22 | | property is limited to the sum of the reductions calculated |
| 23 | | for each unit
occupied as a residence by a person or persons |
| 24 | | (i) 65 years of age or older, (ii) with a
household income that |
| 25 | | does not exceed the maximum income limitation, (iii) who is |
| 26 | | liable, by contract with the
owner
or owners of record, for |
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| 1 | | paying real property taxes on the property, and (iv) who is
an |
| 2 | | owner of record of a legal or equitable interest in the |
| 3 | | cooperative
apartment building, other than a leasehold |
| 4 | | interest. In the instance of a
cooperative where a homestead |
| 5 | | exemption has been granted under this Section,
the cooperative |
| 6 | | association or its management firm shall credit the savings
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| 7 | | resulting from that exemption only to the apportioned tax |
| 8 | | liability of the
owner who qualified for the exemption. Any |
| 9 | | person who willfully refuses to
credit that savings to an |
| 10 | | owner who qualifies for the exemption is guilty of a
Class B |
| 11 | | misdemeanor.
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| 12 | | When a homestead exemption has been granted under this |
| 13 | | Section and an
applicant then becomes a resident of a facility |
| 14 | | licensed under the Assisted Living and Shared Housing Act, the |
| 15 | | Nursing Home
Care Act, the Specialized Mental Health |
| 16 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or |
| 17 | | the MC/DD Act, the exemption shall be granted in subsequent |
| 18 | | years so long as the
residence (i) continues to be occupied by |
| 19 | | the qualified applicant's spouse or
(ii) if remaining |
| 20 | | unoccupied, is still owned by the qualified applicant for the
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| 21 | | homestead exemption.
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| 22 | | Beginning January 1, 1997, when an individual dies who |
| 23 | | would have qualified
for an exemption under this Section, and |
| 24 | | the surviving spouse does not
independently qualify for this |
| 25 | | exemption because of age, the exemption under
this Section |
| 26 | | shall be granted to the surviving spouse for the taxable year
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| 1 | | preceding and the taxable
year of the death, provided that, |
| 2 | | except for age, the surviving spouse meets
all
other |
| 3 | | qualifications for the granting of this exemption for those |
| 4 | | years.
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| 5 | | When married persons maintain separate residences, the |
| 6 | | exemption provided for
in this Section may be claimed by only |
| 7 | | one of such persons and for only one
residence.
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| 8 | | For taxable year 1994 only, in counties having less than |
| 9 | | 3,000,000
inhabitants, to receive the exemption, a person |
| 10 | | shall submit an application by
February 15, 1995 to the Chief |
| 11 | | County Assessment Officer
of the county in which the property |
| 12 | | is located. In counties having 3,000,000
or more inhabitants, |
| 13 | | for taxable year 1994 and all subsequent taxable years, to
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| 14 | | receive the exemption, a person
may submit an application to |
| 15 | | the Chief County
Assessment Officer of the county in which the |
| 16 | | property is located during such
period as may be specified by |
| 17 | | the Chief County Assessment Officer. The Chief
County |
| 18 | | Assessment Officer in counties of 3,000,000 or more |
| 19 | | inhabitants shall
annually give notice of the application |
| 20 | | period by mail or by publication. In
counties having less than |
| 21 | | 3,000,000 inhabitants, beginning with taxable year
1995 and |
| 22 | | thereafter, to receive the exemption, a person
shall
submit an
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| 23 | | application by July 1 of each taxable year to the Chief County |
| 24 | | Assessment
Officer of the county in which the property is |
| 25 | | located. A county may, by
ordinance, establish a date for |
| 26 | | submission of applications that is
different than
July 1.
The |
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| 1 | | applicant shall submit with the
application an affidavit of |
| 2 | | the applicant's total household income, age,
marital status |
| 3 | | (and if married the name and address of the applicant's |
| 4 | | spouse,
if known), and principal dwelling place of members of |
| 5 | | the household on January
1 of the taxable year. The Department |
| 6 | | shall establish, by rule, a method for
verifying the accuracy |
| 7 | | of affidavits filed by applicants under this Section, and the |
| 8 | | Chief County Assessment Officer may conduct audits of any |
| 9 | | taxpayer claiming an exemption under this Section to verify |
| 10 | | that the taxpayer is eligible to receive the exemption. Each |
| 11 | | application shall contain or be verified by a written |
| 12 | | declaration that it is made under the penalties of perjury. A |
| 13 | | taxpayer's signing a fraudulent application under this Act is |
| 14 | | perjury, as defined in Section 32-2 of the Criminal Code of |
| 15 | | 2012.
The applications shall be clearly marked as applications |
| 16 | | for the Low-Income Senior
Citizens Assessment Freeze Homestead |
| 17 | | Exemption and must contain a notice that any taxpayer who |
| 18 | | receives the exemption is subject to an audit by the Chief |
| 19 | | County Assessment Officer.
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| 20 | | Notwithstanding any other provision to the contrary, in |
| 21 | | counties having fewer
than 3,000,000 inhabitants, if an |
| 22 | | applicant fails
to file the application required by this |
| 23 | | Section in a timely manner and this
failure to file is due to a |
| 24 | | mental or physical condition sufficiently severe so
as to |
| 25 | | render the applicant incapable of filing the application in a |
| 26 | | timely
manner, the Chief County Assessment Officer may extend |
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| 1 | | the filing deadline for
a period of 30 days after the applicant |
| 2 | | regains the capability to file the
application, but in no case |
| 3 | | may the filing deadline be extended beyond 3
months of the |
| 4 | | original filing deadline. In order to receive the extension
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| 5 | | provided in this paragraph, the applicant shall provide the |
| 6 | | Chief County
Assessment Officer with a signed statement from |
| 7 | | the applicant's physician, advanced practice registered nurse, |
| 8 | | or physician assistant
stating the nature and extent of the |
| 9 | | condition, that, in the
physician's, advanced practice |
| 10 | | registered nurse's, or physician assistant's opinion, the |
| 11 | | condition was so severe that it rendered the applicant
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| 12 | | incapable of filing the application in a timely manner, and |
| 13 | | the date on which
the applicant regained the capability to |
| 14 | | file the application.
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| 15 | | Beginning January 1, 1998, notwithstanding any other |
| 16 | | provision to the
contrary, in counties having fewer than |
| 17 | | 3,000,000 inhabitants, if an applicant
fails to file the |
| 18 | | application required by this Section in a timely manner and
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| 19 | | this failure to file is due to a mental or physical condition |
| 20 | | sufficiently
severe so as to render the applicant incapable of |
| 21 | | filing the application in a
timely manner, the Chief County |
| 22 | | Assessment Officer may extend the filing
deadline for a period |
| 23 | | of 3 months. In order to receive the extension provided
in this |
| 24 | | paragraph, the applicant shall provide the Chief County |
| 25 | | Assessment
Officer with a signed statement from the |
| 26 | | applicant's physician, advanced practice registered nurse, or |
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| 1 | | physician assistant stating the
nature and extent of the |
| 2 | | condition, and that, in the physician's, advanced practice |
| 3 | | registered nurse's, or physician assistant's opinion, the
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| 4 | | condition was so severe that it rendered the applicant |
| 5 | | incapable of filing the
application in a timely manner.
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| 6 | | In counties having less than 3,000,000 inhabitants, if an |
| 7 | | applicant was
denied an exemption in taxable year 1994 and the |
| 8 | | denial occurred due to an
error on the part of an assessment
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| 9 | | official, or his or her agent or employee, then beginning in |
| 10 | | taxable year 1997
the
applicant's base year, for purposes of |
| 11 | | determining the amount of the exemption,
shall be 1993 rather |
| 12 | | than 1994. In addition, in taxable year 1997, the
applicant's |
| 13 | | exemption shall also include an amount equal to (i) the amount |
| 14 | | of
any exemption denied to the applicant in taxable year 1995 |
| 15 | | as a result of using
1994, rather than 1993, as the base year, |
| 16 | | (ii) the amount of any exemption
denied to the applicant in |
| 17 | | taxable year 1996 as a result of using 1994, rather
than 1993, |
| 18 | | as the base year, and (iii) the amount of the exemption |
| 19 | | erroneously
denied for taxable year 1994.
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| 20 | | For purposes of this Section, a person who will be 65 years |
| 21 | | of age during the
current taxable year shall be eligible to |
| 22 | | apply for the homestead exemption
during that taxable year. |
| 23 | | Application shall be made during the application
period in |
| 24 | | effect for the county of his or her residence.
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| 25 | | The Chief County Assessment Officer may determine the |
| 26 | | eligibility of a life
care facility that qualifies as a |
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| 1 | | cooperative to receive the benefits
provided by this Section |
| 2 | | by use of an affidavit, application, visual
inspection, |
| 3 | | questionnaire, or other reasonable method in order to insure |
| 4 | | that
the tax savings resulting from the exemption are credited |
| 5 | | by the management
firm to the apportioned tax liability of |
| 6 | | each qualifying resident. The Chief
County Assessment Officer |
| 7 | | may request reasonable proof that the management firm
has so |
| 8 | | credited that exemption.
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| 9 | | Except as provided in this Section, all information |
| 10 | | received by the chief
county assessment officer or the |
| 11 | | Department from applications filed under this
Section, or from |
| 12 | | any investigation conducted under the provisions of this
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| 13 | | Section, shall be confidential, except for official purposes |
| 14 | | or
pursuant to official procedures for collection of any State |
| 15 | | or local tax or
enforcement of any civil or criminal penalty or |
| 16 | | sanction imposed by this Act or
by any statute or ordinance |
| 17 | | imposing a State or local tax. Any person who
divulges any such |
| 18 | | information in any manner, except in accordance with a proper
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| 19 | | judicial order, is guilty of a Class A misdemeanor.
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| 20 | | Nothing contained in this Section shall prevent the |
| 21 | | Director or chief county
assessment officer from publishing or |
| 22 | | making available reasonable statistics
concerning the |
| 23 | | operation of the exemption contained in this Section in which
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| 24 | | the contents of claims are grouped into aggregates in such a |
| 25 | | way that
information contained in any individual claim shall |
| 26 | | not be disclosed. |
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| 1 | | Notwithstanding any other provision of law, for taxable |
| 2 | | year 2017 and thereafter, in counties of 3,000,000 or more |
| 3 | | inhabitants, the amount of the exemption shall be the greater |
| 4 | | of (i) the amount of the exemption otherwise calculated under |
| 5 | | this Section or (ii) $2,000.
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| 6 | | (c-5) Notwithstanding any other provision of law, each |
| 7 | | chief county assessment officer may approve this exemption for |
| 8 | | the 2020 taxable year, without application, for any property |
| 9 | | that was approved for this exemption for the 2019 taxable |
| 10 | | year, provided that: |
| 11 | | (1) the county board has declared a local disaster as |
| 12 | | provided in the Illinois Emergency Management Agency Act |
| 13 | | related to the COVID-19 public health emergency; |
| 14 | | (2) the owner of record of the property as of January |
| 15 | | 1, 2020 is the same as the owner of record of the property |
| 16 | | as of January 1, 2019; |
| 17 | | (3) the exemption for the 2019 taxable year has not |
| 18 | | been determined to be an erroneous exemption as defined by |
| 19 | | this Code; and |
| 20 | | (4) the applicant for the 2019 taxable year has not |
| 21 | | asked for the exemption to be removed for the 2019 or 2020 |
| 22 | | taxable years. |
| 23 | | Nothing in this subsection shall preclude or impair the |
| 24 | | authority of a chief county assessment officer to conduct |
| 25 | | audits of any taxpayer claiming an exemption under this |
| 26 | | Section to verify that the taxpayer is eligible to receive the |
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| 1 | | exemption as provided elsewhere in this Section. |
| 2 | | (c-10) Notwithstanding any other provision of law, each |
| 3 | | chief county assessment officer may approve this exemption for |
| 4 | | the 2021 taxable year, without application, for any property |
| 5 | | that was approved for this exemption for the 2020 taxable |
| 6 | | year, if: |
| 7 | | (1) the county board has declared a local disaster as |
| 8 | | provided in the Illinois Emergency Management Agency Act |
| 9 | | related to the COVID-19 public health emergency; |
| 10 | | (2) the owner of record of the property as of January |
| 11 | | 1, 2021 is the same as the owner of record of the property |
| 12 | | as of January 1, 2020; |
| 13 | | (3) the exemption for the 2020 taxable year has not |
| 14 | | been determined to be an erroneous exemption as defined by |
| 15 | | this Code; and |
| 16 | | (4) the taxpayer for the 2020 taxable year has not |
| 17 | | asked for the exemption to be removed for the 2020 or 2021 |
| 18 | | taxable years. |
| 19 | | Nothing in this subsection shall preclude or impair the |
| 20 | | authority of a chief county assessment officer to conduct |
| 21 | | audits of any taxpayer claiming an exemption under this |
| 22 | | Section to verify that the taxpayer is eligible to receive the |
| 23 | | exemption as provided elsewhere in this Section. |
| 24 | | (d) Each Chief County Assessment Officer shall annually |
| 25 | | publish a notice
of availability of the exemption provided |
| 26 | | under this Section. The notice
shall be published at least 60 |
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| 1 | | days but no more than 75 days prior to the date
on which the |
| 2 | | application must be submitted to the Chief County Assessment
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| 3 | | Officer of the county in which the property is located. The |
| 4 | | notice shall
appear in a newspaper of general circulation in |
| 5 | | the county.
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| 6 | | Notwithstanding Sections 6 and 8 of the State Mandates |
| 7 | | Act, no reimbursement by the State is required for the |
| 8 | | implementation of any mandate created by this Section.
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| 9 | | (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21; |
| 10 | | 102-895, eff. 5-23-22.)
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| 11 | | (35 ILCS 200/15-175)
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| 12 | | Sec. 15-175. General homestead exemption. |
| 13 | | (a) Except as provided in Sections 15-176 and 15-177, |
| 14 | | homestead
property is
entitled to an annual homestead |
| 15 | | exemption limited, except as described here
with relation to |
| 16 | | cooperatives or life care facilities, to a reduction in the |
| 17 | | equalized assessed value
of homestead property equal to the |
| 18 | | increase in equalized assessed value for the
current |
| 19 | | assessment year above the equalized assessed value of the |
| 20 | | property for
1977, up to the maximum reduction set forth |
| 21 | | below. If however, the 1977
equalized assessed value upon |
| 22 | | which taxes were paid is subsequently determined
by local |
| 23 | | assessing officials, the Property Tax Appeal Board, or a court |
| 24 | | to have
been excessive, the equalized assessed value which |
| 25 | | should have been placed on
the property for 1977 shall be used |
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| 1 | | to determine the amount of the exemption.
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| 2 | | (b) Except as provided in Section 15-176, the maximum |
| 3 | | reduction before taxable year 2004 shall be
$4,500 in counties |
| 4 | | with 3,000,000 or more
inhabitants
and $3,500 in all other |
| 5 | | counties. Except as provided in Sections 15-176 and 15-177, |
| 6 | | for taxable years 2004 through 2007, the maximum reduction |
| 7 | | shall be $5,000, for taxable year 2008, the maximum reduction |
| 8 | | is $5,500, and, for taxable years 2009 through 2011, the |
| 9 | | maximum reduction is $6,000 in all counties. For taxable years |
| 10 | | 2012 through 2016, the maximum reduction is $7,000 in counties |
| 11 | | with 3,000,000 or more
inhabitants
and $6,000 in all other |
| 12 | | counties. For taxable years 2017 through 2022, the maximum |
| 13 | | reduction is $10,000 in counties with 3,000,000 or more |
| 14 | | inhabitants and $6,000 in all other counties. For taxable year |
| 15 | | years 2023 and thereafter, the maximum reduction is $10,000 in |
| 16 | | counties with 3,000,000 or more inhabitants, $8,000 in |
| 17 | | counties that are contiguous to a county of 3,000,000 or more |
| 18 | | inhabitants, and $6,000 in all other counties. For taxable |
| 19 | | years 2024 and thereafter, the maximum reduction is $10,000 in |
| 20 | | all counties. If a county has elected to subject itself to the |
| 21 | | provisions of Section 15-176 as provided in subsection (k) of |
| 22 | | that Section, then, for the first taxable year only after the |
| 23 | | provisions of Section 15-176 no longer apply, for owners who, |
| 24 | | for the taxable year, have not been granted a senior citizens |
| 25 | | assessment freeze homestead exemption under Section 15-172 or |
| 26 | | a long-time occupant homestead exemption under Section 15-177, |
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| 1 | | there shall be an additional exemption of $5,000 for owners |
| 2 | | with a household income of $30,000 or less.
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| 3 | | (c) In counties with fewer than 3,000,000 inhabitants, if, |
| 4 | | based on the most
recent assessment, the equalized assessed |
| 5 | | value of
the homestead property for the current assessment |
| 6 | | year is greater than the
equalized assessed value of the |
| 7 | | property for 1977, the owner of the property
shall |
| 8 | | automatically receive the exemption granted under this Section |
| 9 | | in an
amount equal to the increase over the 1977 assessment up |
| 10 | | to the maximum
reduction set forth in this Section.
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| 11 | | (d) If in any assessment year beginning with the 2000 |
| 12 | | assessment year,
homestead property has a pro-rata valuation |
| 13 | | under
Section 9-180 resulting in an increase in the assessed |
| 14 | | valuation, a reduction
in equalized assessed valuation equal |
| 15 | | to the increase in equalized assessed
value of the property |
| 16 | | for the year of the pro-rata valuation above the
equalized |
| 17 | | assessed value of the property for 1977 shall be applied to the
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| 18 | | property on a proportionate basis for the period the property |
| 19 | | qualified as
homestead property during the assessment year. |
| 20 | | The maximum proportionate
homestead exemption shall not exceed |
| 21 | | the maximum homestead exemption allowed in
the county under |
| 22 | | this Section divided by 365 and multiplied by the number of
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| 23 | | days the property qualified as homestead property.
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| 24 | | (d-1) In counties with 3,000,000 or more inhabitants, |
| 25 | | where the chief county assessment officer provides a notice of |
| 26 | | discovery, if a property is not
occupied by its owner as a |
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| 1 | | principal residence as of January 1 of the current tax year, |
| 2 | | then the property owner shall notify the chief county |
| 3 | | assessment officer of that fact on a form prescribed by the |
| 4 | | chief county assessment officer. That notice must be received |
| 5 | | by the chief county assessment officer on or before March 1 of |
| 6 | | the collection year. If mailed, the form shall be sent by |
| 7 | | certified mail, return receipt requested. If the form is |
| 8 | | provided in person, the chief county assessment officer shall |
| 9 | | provide a date stamped copy of the notice. Failure to provide |
| 10 | | timely notice pursuant to this subsection (d-1) shall result |
| 11 | | in the exemption being treated as an erroneous exemption. Upon |
| 12 | | timely receipt of the notice for the current tax year, no |
| 13 | | exemption shall be applied to the property for the current tax |
| 14 | | year. If the exemption is not removed upon timely receipt of |
| 15 | | the notice by the chief assessment officer, then the error is |
| 16 | | considered granted as a result of a clerical error or omission |
| 17 | | on the part of the chief county assessment officer as |
| 18 | | described in subsection (h) of Section 9-275, and the property |
| 19 | | owner shall not be liable for the payment of interest and |
| 20 | | penalties due to the erroneous exemption for the current tax |
| 21 | | year for which the notice was filed after the date that notice |
| 22 | | was timely received pursuant to this subsection. Notice |
| 23 | | provided under this subsection shall not constitute a defense |
| 24 | | or amnesty for prior year erroneous exemptions. |
| 25 | | For the purposes of this subsection (d-1): |
| 26 | | "Collection year" means the year in which the first and |
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| 1 | | second installment of the current tax year is billed. |
| 2 | | "Current tax year" means the year prior to the collection |
| 3 | | year. |
| 4 | | (e) The chief county assessment officer may, when |
| 5 | | considering whether to grant a leasehold exemption under this |
| 6 | | Section, require the following conditions to be met: |
| 7 | | (1) that a notarized application for the exemption, |
| 8 | | signed by both the owner and the lessee of the property, |
| 9 | | must be submitted each year during the application period |
| 10 | | in effect for the county in which the property is located; |
| 11 | | (2) that a copy of the lease must be filed with the |
| 12 | | chief county assessment officer by the owner of the |
| 13 | | property at the time the notarized application is |
| 14 | | submitted; |
| 15 | | (3) that the lease must expressly state that the |
| 16 | | lessee is liable for the payment of property taxes; and |
| 17 | | (4) that the lease must include the following language |
| 18 | | in substantially the following form: |
| 19 | | "Lessee shall be liable for the payment of real |
| 20 | | estate taxes with respect to the residence in |
| 21 | | accordance with the terms and conditions of Section |
| 22 | | 15-175 of the Property Tax Code (35 ILCS 200/15-175). |
| 23 | | The permanent real estate index number for the |
| 24 | | premises is (insert number), and, according to the |
| 25 | | most recent property tax bill, the current amount of |
| 26 | | real estate taxes associated with the premises is |
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| 1 | | (insert amount) per year. The parties agree that the |
| 2 | | monthly rent set forth above shall be increased or |
| 3 | | decreased pro rata (effective January 1 of each |
| 4 | | calendar year) to reflect any increase or decrease in |
| 5 | | real estate taxes. Lessee shall be deemed to be |
| 6 | | satisfying Lessee's liability for the above mentioned |
| 7 | | real estate taxes with the monthly rent payments as |
| 8 | | set forth above (or increased or decreased as set |
| 9 | | forth herein).". |
| 10 | | In addition, if there is a change in lessee, or if the |
| 11 | | lessee vacates the property, then the chief county assessment |
| 12 | | officer may require the owner of the property to notify the |
| 13 | | chief county assessment officer of that change. |
| 14 | | This subsection (e) does not apply to leasehold interests |
| 15 | | in property owned by a municipality. |
| 16 | | (f) "Homestead property" under this Section includes |
| 17 | | residential property that is
occupied by its owner or owners |
| 18 | | as his or their principal dwelling place, or
that is a |
| 19 | | leasehold interest on which a single family residence is |
| 20 | | situated,
which is occupied as a residence by a person who has |
| 21 | | an ownership interest
therein, legal or equitable or as a |
| 22 | | lessee, and on which the person is
liable for the payment of |
| 23 | | property taxes. For land improved with
an apartment building |
| 24 | | owned and operated as a cooperative, the maximum reduction |
| 25 | | from the equalized
assessed value shall be limited to the |
| 26 | | increase in the value above the
equalized assessed value of |
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| 1 | | the property for 1977, up to
the maximum reduction set forth |
| 2 | | above, multiplied by the number of apartments
or units |
| 3 | | occupied by a person or persons who is liable, by contract with |
| 4 | | the
owner or owners of record, for paying property taxes on the |
| 5 | | property and is an
owner of record of a legal or equitable |
| 6 | | interest in the cooperative
apartment building, other than a |
| 7 | | leasehold interest. For land improved with a life care |
| 8 | | facility, the maximum reduction from the value of the |
| 9 | | property, as equalized by the Department, shall be multiplied |
| 10 | | by the number of apartments or units occupied by a person or |
| 11 | | persons, irrespective of any legal, equitable, or leasehold |
| 12 | | interest in the facility, who are liable, under a life care |
| 13 | | contract with the owner or owners of record of the facility, |
| 14 | | for paying property taxes on the property. For purposes of |
| 15 | | this
Section, the term "life care facility" has the meaning |
| 16 | | stated in Section
15-170.
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| 17 | | "Household", as used in this Section,
means the owner, the |
| 18 | | spouse of the owner, and all persons using
the
residence of the |
| 19 | | owner as their principal place of residence.
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| 20 | | "Household income", as used in this Section,
means the |
| 21 | | combined income of the members of a household
for the calendar |
| 22 | | year preceding the taxable year.
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| 23 | | "Income", as used in this Section,
has the same meaning as |
| 24 | | provided in Section 3.07 of the Senior
Citizens
and Persons |
| 25 | | with Disabilities Property Tax Relief Act,
except that
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| 26 | | "income" does not include veteran's benefits.
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| 1 | | (g) In a cooperative or life care facility where a |
| 2 | | homestead exemption has been granted, the
cooperative |
| 3 | | association or the management of the cooperative or life care |
| 4 | | facility shall credit the savings
resulting from that |
| 5 | | exemption only to the apportioned tax liability of the
owner |
| 6 | | or resident who qualified for the exemption. Any person who |
| 7 | | willfully refuses to so
credit the savings shall be guilty of a |
| 8 | | Class B misdemeanor.
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| 9 | | (h) Where married persons maintain and reside in separate |
| 10 | | residences qualifying
as homestead property, each residence |
| 11 | | shall receive 50% of the total reduction
in equalized assessed |
| 12 | | valuation provided by this Section.
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| 13 | | (i) In all counties, the assessor
or chief county |
| 14 | | assessment officer may determine the
eligibility of |
| 15 | | residential property to receive the homestead exemption and |
| 16 | | the amount of the exemption by
application, visual inspection, |
| 17 | | questionnaire or other reasonable methods. The
determination |
| 18 | | shall be made in accordance with guidelines established by the
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| 19 | | Department, provided that the taxpayer applying for an |
| 20 | | additional general exemption under this Section shall submit |
| 21 | | to the chief county assessment officer an application with an |
| 22 | | affidavit of the applicant's total household income, age, |
| 23 | | marital status (and, if married, the name and address of the |
| 24 | | applicant's spouse, if known), and principal dwelling place of |
| 25 | | members of the household on January 1 of the taxable year. The |
| 26 | | Department shall issue guidelines establishing a method for |
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| 1 | | verifying the accuracy of the affidavits filed by applicants |
| 2 | | under this paragraph. The applications shall be clearly marked |
| 3 | | as applications for the Additional General Homestead |
| 4 | | Exemption.
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| 5 | | (i-5) This subsection (i-5) applies to counties with |
| 6 | | 3,000,000 or more inhabitants. In the event of a sale of
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| 7 | | homestead property, the homestead exemption shall remain in |
| 8 | | effect for the remainder of the assessment year of the sale. |
| 9 | | Upon receipt of a transfer declaration transmitted by the |
| 10 | | recorder pursuant to Section 31-30 of the Real Estate Transfer |
| 11 | | Tax Law for property receiving an exemption under this |
| 12 | | Section, the assessor shall mail a notice and forms to the new |
| 13 | | owner of the property providing information pertaining to the |
| 14 | | rules and applicable filing periods for applying or reapplying |
| 15 | | for homestead exemptions under this Code for which the |
| 16 | | property may be eligible. If the new owner fails to apply or |
| 17 | | reapply for a homestead exemption during the applicable filing |
| 18 | | period or the property no longer qualifies for an existing |
| 19 | | homestead exemption, the assessor shall cancel such exemption |
| 20 | | for any ensuing assessment year. |
| 21 | | (j) In counties with fewer than 3,000,000 inhabitants, in |
| 22 | | the event of a sale
of
homestead property the homestead |
| 23 | | exemption shall remain in effect for the
remainder of the |
| 24 | | assessment year of the sale. The assessor or chief county
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| 25 | | assessment officer may require the new
owner of the property |
| 26 | | to apply for the homestead exemption for the following
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