100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3246

 

Introduced , by Rep. Christine Winger

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Beginning in taxable year 2017, increases the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption from $55,000 to $75,000 for applicants who have occupied the residence for 5 years or more. Indexes the maximum income limitation to the Consumer Price Index. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3246LRB100 10319 HLH 20508 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying 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
2equitable interest in the property as evidenced by a written
3instrument or (ii) had a legal or equitable interest as a
4lessee in the parcel of property that was single family
5residence. If in any subsequent taxable year for which the
6applicant applies and qualifies for the exemption the equalized
7assessed value of the residence is less than the equalized
8assessed value in the existing base year (provided that such
9equalized assessed value is not based on an assessed value that
10results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years), then
12that subsequent taxable year shall become the base year until a
13new base year is established under the terms of this paragraph.
14For taxable year 1999 only, the Chief County Assessment Officer
15shall review (i) all taxable years for which the applicant
16applied and qualified for the exemption and (ii) the existing
17base year. The assessment officer shall select as the new base
18year the year with the lowest equalized assessed value. An
19equalized assessed value that is based on an assessed value
20that results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years shall
22not be considered the lowest equalized assessed value. The
23selected year shall be the base year for taxable year 1999 and
24thereafter until a new base year is established under the terms
25of this paragraph.
26    "Chief County Assessment Officer" means the County

 

 

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1Assessor or Supervisor of Assessments of the county in which
2the property is located.
3    "Equalized assessed value" means the assessed value as
4equalized by the Illinois Department of Revenue.
5    "Household" means the applicant, the spouse of the
6applicant, and all persons using the residence of the applicant
7as their principal place of residence.
8    "Household income" means the combined income of the members
9of a household for the calendar year preceding the taxable
10year.
11    "Income" has the same meaning as provided in Section 3.07
12of the Senior Citizens and Persons with Disabilities Property
13Tax Relief Act, except that, beginning in assessment year 2001,
14"income" does not include veteran's benefits.
15    "Internal Revenue Code of 1986" means the United States
16Internal Revenue Code of 1986 or any successor law or laws
17relating to federal income taxes in effect for the year
18preceding the taxable year.
19    "Life care facility that qualifies as a cooperative" means
20a facility as defined in Section 2 of the Life Care Facilities
21Act.
22    "Maximum income limitation" means:
23        (1) $35,000 prior to taxable year 1999;
24        (2) $40,000 in taxable years 1999 through 2003;
25        (3) $45,000 in taxable years 2004 through 2005;
26        (4) $50,000 in taxable years 2006 and 2007; and

 

 

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1        (5) $55,000 in taxable years year 2008 through 2016;
2    and thereafter.
3        (6) in taxable year 2017, (A) $55,000 for applicants
4    who have occupied the residence for less than 5 years and
5    (B) $75,000 for applicants who have occupied the residence
6    for 5 or more years; and
7        (7) in taxable year 2018 and thereafter, (A) for
8    applicants who have occupied the residence for less than 5
9    years, an amount equal to the maximum income limitation for
10    the immediately prior taxable year for applicants who have
11    occupied the residence for less than 5 years increased by
12    the lesser of (i) 2% or (ii) the percentage increase during
13    the immediately prior taxable year in the Consumer Price
14    Index for All Urban Consumers for all items published by
15    the United States Department of Labor Bureau of Labor
16    Statistics and (B) for applicants who have occupied the
17    residence for 5 or more years, an amount equal to the
18    maximum income limitation for the immediately prior
19    taxable year for applicants who have occupied the residence
20    for 5 or more years increased by the lesser of (i) 2% or
21    (ii) the percentage increase during the immediately prior
22    taxable year in the Consumer Price Index for All Urban
23    Consumers for all items published by the United States
24    Department of Labor Bureau of Labor Statistics.
25    "Residence" means the principal dwelling place and
26appurtenant structures used for residential purposes in this

 

 

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1State occupied on January 1 of the taxable year by a household
2and so much of the surrounding land, constituting the parcel
3upon which the dwelling place is situated, as is used for
4residential purposes. If the Chief County Assessment Officer
5has established a specific legal description for a portion of
6property constituting the residence, then that portion of
7property shall be deemed the residence for the purposes of this
8Section.
9    "Taxable year" means the calendar year during which ad
10valorem property taxes payable in the next succeeding year are
11levied.
12    (c) Beginning in taxable year 1994, a senior citizens
13assessment freeze homestead exemption is granted for real
14property that is improved with a permanent structure that is
15occupied as a residence by an applicant who (i) is 65 years of
16age or older during the taxable year, (ii) has a household
17income that does not exceed the maximum income limitation,
18(iii) is liable for paying real property taxes on the property,
19and (iv) is an owner of record of the property or has a legal or
20equitable interest in the property as evidenced by a written
21instrument. This homestead exemption shall also apply to a
22leasehold interest in a parcel of property improved with a
23permanent structure that is a single family residence that is
24occupied as a residence by a person who (i) is 65 years of age
25or older during the taxable year, (ii) has a household income
26that does not exceed the maximum income limitation, (iii) has a

 

 

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1legal or equitable ownership interest in the property as
2lessee, and (iv) is liable for the payment of real property
3taxes on that property.
4    In counties of 3,000,000 or more inhabitants, the amount of
5the exemption for all taxable years is the equalized assessed
6value of the residence in the taxable year for which
7application is made minus the base amount. In all other
8counties, the amount of the exemption is as follows: (i)
9through taxable year 2005 and for taxable year 2007 and
10thereafter, the amount of this exemption shall be the equalized
11assessed value of the residence in the taxable year for which
12application is made minus the base amount; and (ii) for taxable
13year 2006, the amount of the exemption is as follows:
14        (1) For an applicant who has a household income of
15    $45,000 or less, the amount of the exemption is the
16    equalized assessed value of the residence in the taxable
17    year for which application is made minus the base amount.
18        (2) For an applicant who has a household income
19    exceeding $45,000 but not exceeding $46,250, the amount of
20    the exemption is (i) the equalized assessed value of the
21    residence in the taxable year for which application is made
22    minus the base amount (ii) multiplied by 0.8.
23        (3) For an applicant who has a household income
24    exceeding $46,250 but not exceeding $47,500, the amount of
25    the exemption is (i) the equalized assessed value of the
26    residence in the taxable year for which application is made

 

 

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1    minus the base amount (ii) multiplied by 0.6.
2        (4) For an applicant who has a household income
3    exceeding $47,500 but not exceeding $48,750, the amount of
4    the exemption is (i) the equalized assessed value of the
5    residence in the taxable year for which application is made
6    minus the base amount (ii) multiplied by 0.4.
7        (5) For an applicant who has a household income
8    exceeding $48,750 but not exceeding $50,000, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.2.
12    When the applicant is a surviving spouse of an applicant
13for a prior year for the same residence for which an exemption
14under this Section has been granted, the base year and base
15amount for that residence are the same as for the applicant for
16the prior year.
17    Each year at the time the assessment books are certified to
18the County Clerk, the Board of Review or Board of Appeals shall
19give to the County Clerk a list of the assessed values of
20improvements on each parcel qualifying for this exemption that
21were added after the base year for this parcel and that
22increased the assessed value of the property.
23    In the case of land improved with an apartment building
24owned and operated as a cooperative or a building that is a
25life care facility that qualifies as a cooperative, the maximum
26reduction from the equalized assessed value of the property is

 

 

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1limited to the sum of the reductions calculated for each unit
2occupied as a residence by a person or persons (i) 65 years of
3age or older, (ii) with a household income that does not exceed
4the maximum income limitation, (iii) who is liable, by contract
5with the owner or owners of record, for paying real property
6taxes on the property, and (iv) who is an owner of record of a
7legal or equitable interest in the cooperative apartment
8building, other than a leasehold interest. In the instance of a
9cooperative where a homestead exemption has been granted under
10this Section, the cooperative association or its management
11firm shall credit the savings resulting from that exemption
12only to the apportioned tax liability of the owner who
13qualified for the exemption. Any person who willfully refuses
14to credit that savings to an owner who qualifies for the
15exemption is guilty of a Class B misdemeanor.
16    When a homestead exemption has been granted under this
17Section and an applicant then becomes a resident of a facility
18licensed under the Assisted Living and Shared Housing Act, the
19Nursing Home Care Act, the Specialized Mental Health
20Rehabilitation Act of 2013, the ID/DD Community Care Act, or
21the MC/DD Act, the exemption shall be granted in subsequent
22years so long as the residence (i) continues to be occupied by
23the qualified applicant's spouse or (ii) if remaining
24unoccupied, is still owned by the qualified applicant for the
25homestead exemption.
26    Beginning January 1, 1997, when an individual dies who

 

 

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1would have qualified for an exemption under this Section, and
2the surviving spouse does not independently qualify for this
3exemption because of age, the exemption under this Section
4shall be granted to the surviving spouse for the taxable year
5preceding and the taxable year of the death, provided that,
6except for age, the surviving spouse meets all other
7qualifications for the granting of this exemption for those
8years.
9    When married persons maintain separate residences, the
10exemption provided for in this Section may be claimed by only
11one of such persons and for only one residence.
12    For taxable year 1994 only, in counties having less than
133,000,000 inhabitants, to receive the exemption, a person shall
14submit an application by February 15, 1995 to the Chief County
15Assessment Officer of the county in which the property is
16located. In counties having 3,000,000 or more inhabitants, for
17taxable year 1994 and all subsequent taxable years, to receive
18the exemption, a person may submit an application to the Chief
19County Assessment Officer of the county in which the property
20is located during such period as may be specified by the Chief
21County Assessment Officer. The Chief County Assessment Officer
22in counties of 3,000,000 or more inhabitants shall annually
23give notice of the application period by mail or by
24publication. In counties having less than 3,000,000
25inhabitants, beginning with taxable year 1995 and thereafter,
26to receive the exemption, a person shall submit an application

 

 

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1by July 1 of each taxable year to the Chief County Assessment
2Officer of the county in which the property is located. A
3county may, by ordinance, establish a date for submission of
4applications that is different than July 1. The applicant shall
5submit with the application an affidavit of the applicant's
6total household income, age, marital status (and if married the
7name and address of the applicant's spouse, if known), and
8principal dwelling place of members of the household on January
91 of the taxable year. The Department shall establish, by rule,
10a method for verifying the accuracy of affidavits filed by
11applicants under this Section, and the Chief County Assessment
12Officer may conduct audits of any taxpayer claiming an
13exemption under this Section to verify that the taxpayer is
14eligible to receive the exemption. Each application shall
15contain or be verified by a written declaration that it is made
16under the penalties of perjury. A taxpayer's signing a
17fraudulent application under this Act is perjury, as defined in
18Section 32-2 of the Criminal Code of 2012. The applications
19shall be clearly marked as applications for the Senior Citizens
20Assessment Freeze Homestead Exemption and must contain a notice
21that any taxpayer who receives the exemption is subject to an
22audit by the Chief County Assessment Officer.
23    Notwithstanding any other provision to the contrary, in
24counties having fewer than 3,000,000 inhabitants, if an
25applicant fails to file the application required by this
26Section in a timely manner and this failure to file is due to a

 

 

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1mental or physical condition sufficiently severe so as to
2render the applicant incapable of filing the application in a
3timely manner, the Chief County Assessment Officer may extend
4the filing deadline for a period of 30 days after the applicant
5regains the capability to file the application, but in no case
6may the filing deadline be extended beyond 3 months of the
7original filing deadline. In order to receive the extension
8provided in this paragraph, the applicant shall provide the
9Chief County Assessment Officer with a signed statement from
10the applicant's physician, advanced practice nurse, or
11physician assistant stating the nature and extent of the
12condition, that, in the physician's, advanced practice
13nurse's, or physician assistant's opinion, the condition was so
14severe that it rendered the applicant incapable of filing the
15application in a timely manner, and the date on which the
16applicant regained the capability to file the application.
17    Beginning January 1, 1998, notwithstanding any other
18provision to the contrary, in counties having fewer than
193,000,000 inhabitants, if an applicant fails to file the
20application required by this Section in a timely manner and
21this failure to file is due to a mental or physical condition
22sufficiently severe so as to render the applicant incapable of
23filing the application in a timely manner, the Chief County
24Assessment Officer may extend the filing deadline for a period
25of 3 months. In order to receive the extension provided in this
26paragraph, the applicant shall provide the Chief County

 

 

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1Assessment Officer with a signed statement from the applicant's
2physician, advanced practice nurse, or physician assistant
3stating the nature and extent of the condition, and that, in
4the physician's, advanced practice nurse's, or physician
5assistant's opinion, the condition was so severe that it
6rendered the applicant incapable of filing the application in a
7timely manner.
8    In counties having less than 3,000,000 inhabitants, if an
9applicant was denied an exemption in taxable year 1994 and the
10denial occurred due to an error on the part of an assessment
11official, or his or her agent or employee, then beginning in
12taxable year 1997 the applicant's base year, for purposes of
13determining the amount of the exemption, shall be 1993 rather
14than 1994. In addition, in taxable year 1997, the applicant's
15exemption shall also include an amount equal to (i) the amount
16of any exemption denied to the applicant in taxable year 1995
17as a result of using 1994, rather than 1993, as the base year,
18(ii) the amount of any exemption denied to the applicant in
19taxable year 1996 as a result of using 1994, rather than 1993,
20as the base year, and (iii) the amount of the exemption
21erroneously denied for taxable year 1994.
22    For purposes of this Section, a person who will be 65 years
23of age during the current taxable year shall be eligible to
24apply for the homestead exemption during that taxable year.
25Application shall be made during the application period in
26effect for the county of his or her residence.

 

 

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1    The Chief County Assessment Officer may determine the
2eligibility of a life care facility that qualifies as a
3cooperative to receive the benefits provided by this Section by
4use of an affidavit, application, visual inspection,
5questionnaire, or other reasonable method in order to insure
6that the tax savings resulting from the exemption are credited
7by the management firm to the apportioned tax liability of each
8qualifying resident. The Chief County Assessment Officer may
9request reasonable proof that the management firm has so
10credited that exemption.
11    Except as provided in this Section, all information
12received by the chief county assessment officer or the
13Department from applications filed under this Section, or from
14any investigation conducted under the provisions of this
15Section, shall be confidential, except for official purposes or
16pursuant to official procedures for collection of any State or
17local tax or enforcement of any civil or criminal penalty or
18sanction imposed by this Act or by any statute or ordinance
19imposing a State or local tax. Any person who divulges any such
20information in any manner, except in accordance with a proper
21judicial order, is guilty of a Class A misdemeanor.
22    Nothing contained in this Section shall prevent the
23Director or chief county assessment officer from publishing or
24making available reasonable statistics concerning the
25operation of the exemption contained in this Section in which
26the contents of claims are grouped into aggregates in such a

 

 

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1way that information contained in any individual claim shall
2not be disclosed.
3    (d) Each Chief County Assessment Officer shall annually
4publish a notice of availability of the exemption provided
5under this Section. The notice shall be published at least 60
6days but no more than 75 days prior to the date on which the
7application must be submitted to the Chief County Assessment
8Officer of the county in which the property is located. The
9notice shall appear in a newspaper of general circulation in
10the county.
11    Notwithstanding Sections 6 and 8 of the State Mandates Act,
12no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
1599-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
167-28-16.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.