Bill Text: IL HB3509 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2024 through 2026, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3509 Detail]

Download: Illinois-2023-HB3509-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3509 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-175
Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2024 through 2026, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately.
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A BILL FOR
HB3509 LRB103 30437 HLH 56868 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
Section 15-175 as follows:
(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
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

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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 $50,000 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. 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, there shall be an

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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.
Notwithstanding any other provision of law, for taxable
years 2024 through 2026, the property tax liability for
homestead property in Cook County that contains a
single-family home or a multi-unit residential dwelling with
fewer than 3 units shall not exceed the adjusted property tax
liability for the property for the applicable tax year.
(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

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the maximum homestead exemption allowed in the county under
this Section divided by 365 and multiplied by the number of
days the property qualified as homestead property.
(d-1) In counties with 3,000,000 or more inhabitants,
where the chief county assessment officer provides a notice of
discovery, if a property is not occupied by its owner as a
principal residence as of January 1 of the current tax year,
then the property owner shall notify the chief county
assessment officer of that fact on a form prescribed by the
chief county assessment officer. That notice must be received
by the chief county assessment officer on or before March 1 of
the collection year. If mailed, the form shall be sent by
certified mail, return receipt requested. If the form is
provided in person, the chief county assessment officer shall
provide a date stamped copy of the notice. Failure to provide
timely notice pursuant to this subsection (d-1) shall result
in the exemption being treated as an erroneous exemption. Upon
timely receipt of the notice for the current tax year, no
exemption shall be applied to the property for the current tax
year. If the exemption is not removed upon timely receipt of
the notice by the chief assessment officer, then the error is
considered granted as a result of a clerical error or omission
on the part of the chief county assessment officer as
described in subsection (h) of Section 9-275, and the property
owner shall not be liable for the payment of interest and
penalties due to the erroneous exemption for the current tax

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year for which the notice was filed after the date that notice
was timely received pursuant to this subsection. Notice
provided under this subsection shall not constitute a defense
or amnesty for prior year erroneous exemptions.
For the purposes of this subsection (d-1):
"Collection year" means the year in which the first and
second installment of the current tax year is billed.
"Current tax year" means the year prior to the collection
year.
(e) The chief county assessment officer may, when
considering whether to grant a leasehold exemption under this
Section, require the following conditions to be met:
(1) that a notarized application for the exemption,
signed by both the owner and the lessee of the property,
must be submitted each year during the application period
in effect for the county in which the property is located;
(2) that a copy of the lease must be filed with the
chief county assessment officer by the owner of the
property at the time the notarized application is
submitted;
(3) that the lease must expressly state that the
lessee is liable for the payment of property taxes; and
(4) that the lease must include the following language
in substantially the following form:
"Lessee shall be liable for the payment of real
estate taxes with respect to the residence in

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accordance with the terms and conditions of Section
15-175 of the Property Tax Code (35 ILCS 200/15-175).
The permanent real estate index number for the
premises is (insert number), and, according to the
most recent property tax bill, the current amount of
real estate taxes associated with the premises is
(insert amount) per year. The parties agree that the
monthly rent set forth above shall be increased or
decreased pro rata (effective January 1 of each
calendar year) to reflect any increase or decrease in
real estate taxes. Lessee shall be deemed to be
satisfying Lessee's liability for the above mentioned
real estate taxes with the monthly rent payments as
set forth above (or increased or decreased as set
forth herein).".
In addition, if there is a change in lessee, or if the
lessee vacates the property, then the chief county assessment
officer may require the owner of the property to notify the
chief county assessment officer of that change.
This subsection (e) does not apply to leasehold interests
in property owned by a municipality.
(f) As used in this Section:
"Adjusted property tax liability" means the property tax
liability for the property in the base year, increased by 5%
for each tax year after the base year through and including the
current tax year. The increase by 5% each year is an increase

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by 5% over the prior year. If the property did not have a
residential equalized assessed value for the base year, then
the assessor shall first determine an initial property tax
liability for the property by comparison with other properties
having physical and economic characteristics similar to those
of the subject property.
"Base year" means the 2018 tax year, or, if the property is
sold or ownership is otherwise transferred in tax year 2024,
2025, or 2026, then the year of the sale or transfer
"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
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

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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.
(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

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willfully refuses to so credit the savings shall be guilty of a
Class B misdemeanor.
(h) Where married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
(i) In all counties, the assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption and
the amount of the exemption by application, visual inspection,
questionnaire or other reasonable methods. The determination
shall be made in accordance with guidelines established by the
Department, provided that the taxpayer applying for an
additional general exemption under this Section shall submit
to the chief county assessment officer an application with an
affidavit of the applicant's total household income, age,
marital status (and, if married, the name and address of the
applicant's spouse, if known), and principal dwelling place of
members of the household on January 1 of the taxable year. The
Department shall issue guidelines establishing a method for
verifying the accuracy of the affidavits filed by applicants
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

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homestead property, the homestead exemption shall remain in
effect for the remainder of the assessment year of the sale.
Upon receipt of a transfer declaration transmitted by the
recorder pursuant to Section 31-30 of the Real Estate Transfer
Tax Law for property receiving an exemption under this
Section, the assessor shall mail a notice and forms to the new
owner of the property providing information pertaining to the
rules and applicable filing periods for applying or reapplying
for homestead exemptions under this Code for which the
property may be eligible. If the new owner fails to apply or
reapply for a homestead exemption during the applicable filing
period or the property no longer qualifies for an existing
homestead exemption, the assessor shall cancel such exemption
for any ensuing assessment year.
(j) In counties with fewer than 3,000,000 inhabitants, in
the event of a sale of homestead property the homestead
exemption shall remain in effect for the remainder of the
assessment year of the sale. The assessor or chief county
assessment officer may require the new owner of the property
to apply for the homestead exemption for the following
assessment year.
(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

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tax year and thereafter.
(Source: P.A. 102-895, eff. 5-23-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.