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Illinois Senate Bill SB2845

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2845 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2845 Introduced 1/19/2024, by Sen. Natalie Toro SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-177 Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately. LRB103 36734 HLH 66844 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2845 Introduced 1/19/2024, by Sen. Natalie Toro SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-177 35 ILCS 200/15-177 Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately. LRB103 36734 HLH 66844 b LRB103 36734 HLH 66844 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2845 Introduced 1/19/2024, by Sen. Natalie Toro SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/15-177 35 ILCS 200/15-177
44 35 ILCS 200/15-177
55 Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately.
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1111 1 AN ACT concerning revenue.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Property Tax Code is amended by changing
1515 5 Section 15-177 as follows:
1616 6 (35 ILCS 200/15-177)
1717 7 Sec. 15-177. The long-time occupant homestead exemption.
1818 8 (a) If the county has elected, under Section 15-176, to be
1919 9 subject to the provisions of the alternative general homestead
2020 10 exemption, then, for taxable years 2007 and thereafter,
2121 11 regardless of whether the exemption under Section 15-176
2222 12 applies, qualified homestead property is entitled to an annual
2323 13 homestead exemption equal to a reduction in the property's
2424 14 equalized assessed value calculated as provided in this
2525 15 Section.
2626 16 (b) As used in this Section:
2727 17 "Adjusted homestead value" means, for taxable years before
2828 18 taxable year 2024, the lesser of the following values:
2929 19 (1) The property's base homestead value increased by:
3030 20 (i) 10% for each taxable year after the base year through
3131 21 and including the current tax year for qualified taxpayers
3232 22 with a household income of more than $75,000 but not
3333 23 exceeding $100,000; or (ii) 7% for each taxable year after
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3838 35 ILCS 200/15-177 35 ILCS 200/15-177
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4040 Amends the Property Tax Code. Provides that, for the purpose of calculating the long-time occupant homestead exemption, the adjusted homestead value shall be calculated by increasing the base homestead value by (i) 5% (currently, 10%) for qualified taxpayers with a household income of more than $75,000 but not exceeding $100,000 or (ii) 3% (currently, 7%) for qualified taxpayers with a household income of $75,000 or less. Effective immediately.
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6868 1 the base year through and including the current tax year
6969 2 for qualified taxpayers with a household income of $75,000
7070 3 or less. The increase each year is an increase over the
7171 4 prior year; or
7272 5 (2) The property's equalized assessed value for the
7373 6 current tax year minus the general homestead deduction.
7474 7 "Adjusted homestead value" means, beginning in taxable
7575 8 year 2024, the lesser of the following values:
7676 9 (1) the property's base homestead value increased by:
7777 10 (i) 5% for each taxable year after the base year through
7878 11 and including the current tax year for qualified taxpayers
7979 12 with a household income of more than $75,000 but not
8080 13 exceeding $100,000; or (ii) 3% for each taxable year after
8181 14 the base year through and including the current tax year
8282 15 for qualified taxpayers with a household income of $75,000
8383 16 or less; the increase each year is an increase over the
8484 17 prior year; or
8585 18 (2) the property's equalized assessed value for the
8686 19 current tax year minus the general homestead deduction.
8787 20 "Base homestead value" means:
8888 21 (1) if the property did not have an adjusted homestead
8989 22 value under Section 15-176 for the base year, then an
9090 23 amount equal to the equalized assessed value of the
9191 24 property for the base year prior to exemptions, minus the
9292 25 general homestead deduction, provided that the property's
9393 26 assessment was not based on a reduced assessed value
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104104 1 resulting from a temporary irregularity in the property
105105 2 for that year; or
106106 3 (2) if the property had an adjusted homestead value
107107 4 under Section 15-176 for the base year, then an amount
108108 5 equal to the adjusted homestead value of the property
109109 6 under Section 15-176 for the base year.
110110 7 "Base year" means the taxable year prior to the taxable
111111 8 year in which the taxpayer first qualifies for the exemption
112112 9 under this Section.
113113 10 "Current taxable year" means the taxable year for which
114114 11 the exemption under this Section is being applied.
115115 12 "Equalized assessed value" means the property's assessed
116116 13 value as equalized by the Department.
117117 14 "Homestead" or "homestead property" means residential
118118 15 property that as of January 1 of the tax year is occupied by a
119119 16 qualified taxpayer as his or her principal dwelling place, or
120120 17 that is a leasehold interest on which a single family
121121 18 residence is situated, that is occupied as a residence by a
122122 19 qualified taxpayer who has a legal or equitable interest
123123 20 therein evidenced by a written instrument, as an owner or as a
124124 21 lessee, and on which the person is liable for the payment of
125125 22 property taxes. Residential units in an apartment building
126126 23 owned and operated as a cooperative, or as a life care
127127 24 facility, which are occupied by persons who hold a legal or
128128 25 equitable interest in the cooperative apartment building or
129129 26 life care facility as owners or lessees, and who are liable by
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140140 1 contract for the payment of property taxes, are included
141141 2 within this definition of homestead property. A homestead
142142 3 includes the dwelling place, appurtenant structures, and so
143143 4 much of the surrounding land constituting the parcel on which
144144 5 the dwelling place is situated as is used for residential
145145 6 purposes. If the assessor has established a specific legal
146146 7 description for a portion of property constituting the
147147 8 homestead, then the homestead is limited to the property
148148 9 within that description.
149149 10 "Household income" has the meaning set forth under Section
150150 11 15-172 of this Code.
151151 12 "General homestead deduction" means the amount of the
152152 13 general homestead exemption under Section 15-175.
153153 14 "Life care facility" means a facility defined in Section 2
154154 15 of the Life Care Facilities Act.
155155 16 "Qualified homestead property" means homestead property
156156 17 owned by a qualified taxpayer.
157157 18 "Qualified taxpayer" means any individual:
158158 19 (1) who, for at least 10 continuous years as of
159159 20 January 1 of the taxable year, has occupied the same
160160 21 homestead property as a principal residence and domicile
161161 22 or who, for at least 5 continuous years as of January 1 of
162162 23 the taxable year, has occupied the same homestead property
163163 24 as a principal residence and domicile if that person
164164 25 received assistance in the acquisition of the property as
165165 26 part of a government or nonprofit housing program; and
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176176 1 (2) who has a household income of $100,000 or less.
177177 2 (c) The base homestead value must remain constant, except
178178 3 that the assessor may revise it under any of the following
179179 4 circumstances:
180180 5 (1) If the equalized assessed value of a homestead
181181 6 property for the current tax year is less than the
182182 7 previous base homestead value for that property, then the
183183 8 current equalized assessed value (provided it is not based
184184 9 on a reduced assessed value resulting from a temporary
185185 10 irregularity in the property) becomes the base homestead
186186 11 value in subsequent tax years.
187187 12 (2) For any year in which new buildings, structures,
188188 13 or other improvements are constructed on the homestead
189189 14 property that would increase its assessed value, the
190190 15 assessor shall adjust the base homestead value with due
191191 16 regard to the value added by the new improvements.
192192 17 (d) The amount of the exemption under this Section is the
193193 18 greater of: (i) the equalized assessed value of the homestead
194194 19 property for the current tax year minus the adjusted homestead
195195 20 value; or (ii) the general homestead deduction.
196196 21 (e) In the case of an apartment building owned and
197197 22 operated as a cooperative, or as a life care facility, that
198198 23 contains residential units that qualify as homestead property
199199 24 of a qualified taxpayer under this Section, the maximum
200200 25 cumulative exemption amount attributed to the entire building
201201 26 or facility shall not exceed the sum of the exemptions
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212212 1 calculated for each unit that is a qualified homestead
213213 2 property. The cooperative association, management firm, or
214214 3 other person or entity that manages or controls the
215215 4 cooperative apartment building or life care facility shall
216216 5 credit the exemption attributable to each residential unit
217217 6 only to the apportioned tax liability of the qualified
218218 7 taxpayer as to that unit. Any person who willfully refuses to
219219 8 so credit the exemption is guilty of a Class B misdemeanor.
220220 9 (f) When married persons maintain separate residences, the
221221 10 exemption provided under this Section may be claimed by only
222222 11 one such person and for only one residence. No person who
223223 12 receives an exemption under Section 15-172 of this Code may
224224 13 receive an exemption under this Section. No person who
225225 14 receives an exemption under this Section may receive an
226226 15 exemption under Section 15-175 or 15-176 of this Code.
227227 16 (g) In the event of a sale or other transfer in ownership
228228 17 of the homestead property between spouses or between a parent
229229 18 and a child, the exemption under this Section remains in
230230 19 effect if the new owner has a household income of $100,000 or
231231 20 less.
232232 21 (h) In the event of a sale or other transfer in ownership
233233 22 of the homestead property other than subsection (g) of this
234234 23 Section, the exemption under this Section shall remain in
235235 24 effect for the remainder of the tax year and be calculated
236236 25 using the same base homestead value in which the sale or
237237 26 transfer occurs.
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248248 1 (i) To receive the exemption, a person must submit an
249249 2 application to the county assessor during the period specified
250250 3 by the county assessor.
251251 4 The county assessor shall annually give notice of the
252252 5 application period by mail or by publication.
253253 6 The taxpayer must submit, with the application, an
254254 7 affidavit of the taxpayer's total household income, marital
255255 8 status (and if married the name and address of the applicant's
256256 9 spouse, if known), and principal dwelling place of members of
257257 10 the household on January 1 of the taxable year. The Department
258258 11 shall establish, by rule, a method for verifying the accuracy
259259 12 of affidavits filed by applicants under this Section, and the
260260 13 Chief County Assessment Officer may conduct audits of any
261261 14 taxpayer claiming an exemption under this Section to verify
262262 15 that the taxpayer is eligible to receive the exemption. Each
263263 16 application shall contain or be verified by a written
264264 17 declaration that it is made under the penalties of perjury. A
265265 18 taxpayer's signing a fraudulent application under this Act is
266266 19 perjury, as defined in Section 32-2 of the Criminal Code of
267267 20 2012. The applications shall be clearly marked as applications
268268 21 for the Long-time Occupant Homestead Exemption and must
269269 22 contain a notice that any taxpayer who receives the exemption
270270 23 is subject to an audit by the Chief County Assessment Officer.
271271 24 (j) Notwithstanding Sections 6 and 8 of the State Mandates
272272 25 Act, no reimbursement by the State is required for the
273273 26 implementation of any mandate created by this Section.
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284284 1 (Source: P.A. 97-1150, eff. 1-25-13.)
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