97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3562

 

Introduced 2/24/2011, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, if a person turns 70 years of age or older during the taxable year and he or she qualified for a Senior Citizens Assessment Freeze Homestead Exemption or a Senior Citizens Homestead Exemption in the previous taxable year, then the person qualifying need not reapply for the exemption. Effective immediately.


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

 

 

A BILL FOR

 

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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
5Sections 15-170 and 15-172 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior Citizens Homestead Exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

 

 

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500 and, for taxable years 2008 and
4thereafter, the maximum reduction is $4,000 in all counties.
5    For land improved with an apartment building owned and
6operated as a cooperative, the maximum reduction from the value
7of the property, as equalized by the Department, shall be
8multiplied by the number of apartments or units occupied by a
9person 65 years of age or older who is liable, by contract with
10the owner or owners of record, for paying property taxes on the
11property and is an owner of record of a legal or equitable
12interest in the cooperative apartment building, other than a
13leasehold interest. For land improved with a life care
14facility, the maximum reduction from the value of the property,
15as equalized by the Department, shall be multiplied by the
16number of apartments or units occupied by persons 65 years of
17age or older, irrespective of any legal, equitable, or
18leasehold interest in the facility, who are liable, under a
19contract with the owner or owners of record of the facility,
20for paying property taxes on the property. In a cooperative or
21a life care facility where a homestead exemption has been
22granted, the cooperative association or the management firm of
23the cooperative or facility shall credit the savings resulting
24from that exemption only to the apportioned tax liability of
25the owner or resident who qualified for the exemption. Any
26person who willfully refuses to so credit the savings shall be

 

 

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1guilty of a Class B misdemeanor. Under this Section and
2Sections 15-175, 15-176, and 15-177, "life care facility" means
3a facility, as defined in Section 2 of the Life Care Facilities
4Act, with which the applicant for the homestead exemption has a
5life care contract as defined in that Act.
6    When a homestead exemption has been granted under this
7Section and the person qualifying subsequently becomes a
8resident of a facility licensed under the Assisted Living and
9Shared Housing Act, the Nursing Home Care Act, or the MR/DD
10Community Care Act, the exemption shall continue so long as the
11residence continues to be occupied by the qualifying person's
12spouse if the spouse is 65 years of age or older, or if the
13residence remains unoccupied but is still owned by the person
14qualified for the homestead exemption.
15    A person who will be 65 years of age during the current
16assessment year shall be eligible to apply for the homestead
17exemption during that assessment year. Application shall be
18made during the application period in effect for the county of
19his residence.
20    If a person turns 70 years of age or older during the
21taxable year, and he or she qualified for an exemption under
22this Section in the previous taxable year, then the person
23qualifying need not reapply for the exemption.
24    Beginning with assessment year 2003, for taxes payable in
252004, property that is first occupied as a residence after
26January 1 of any assessment year by a person who is eligible

 

 

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1for the senior citizens homestead exemption under this Section
2must be granted a pro-rata exemption for the assessment year.
3The amount of the pro-rata exemption is the exemption allowed
4in the county under this Section divided by 365 and multiplied
5by the number of days during the assessment year the property
6is occupied as a residence by a person eligible for the
7exemption under this Section. The chief county assessment
8officer must adopt reasonable procedures to establish
9eligibility for this pro-rata exemption.
10    The assessor or chief county assessment officer may
11determine the eligibility of a life care facility to receive
12the benefits provided by this Section, by affidavit,
13application, visual inspection, questionnaire or other
14reasonable methods in order to insure that the tax savings
15resulting from the exemption are credited by the management
16firm to the apportioned tax liability of each qualifying
17resident. The assessor may request reasonable proof that the
18management firm has so credited the exemption.
19    The chief county assessment officer of each county with
20less than 3,000,000 inhabitants shall provide to each person
21allowed a homestead exemption under this Section a form to
22designate any other person to receive a duplicate of any notice
23of delinquency in the payment of taxes assessed and levied
24under this Code on the property of the person receiving the
25exemption. The duplicate notice shall be in addition to the
26notice required to be provided to the person receiving the

 

 

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1exemption, and shall be given in the manner required by this
2Code. The person filing the request for the duplicate notice
3shall pay a fee of $5 to cover administrative costs to the
4supervisor of assessments, who shall then file the executed
5designation with the county collector. Notwithstanding any
6other provision of this Code to the contrary, the filing of
7such an executed designation requires the county collector to
8provide duplicate notices as indicated by the designation. A
9designation may be rescinded by the person who executed such
10designation at any time, in the manner and form required by the
11chief county assessment officer.
12    The assessor or chief county assessment officer may
13determine the eligibility of residential property to receive
14the homestead exemption provided by this Section by
15application, visual inspection, questionnaire or other
16reasonable methods. The determination shall be made in
17accordance with guidelines established by the Department.
18    In counties with 3,000,000 or more inhabitants, beginning
19in taxable year 2010, each taxpayer who has been granted an
20exemption under this Section must reapply on an annual basis.
21The chief county assessment officer shall mail the application
22to the taxpayer. In counties with less than 3,000,000
23inhabitants, the county board may by resolution provide that if
24a person has been granted a homestead exemption under this
25Section, the person qualifying need not reapply for the
26exemption.

 

 

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1    In counties with less than 3,000,000 inhabitants, if the
2assessor or chief county assessment officer requires annual
3application for verification of eligibility for an exemption
4once granted under this Section, the application shall be
5mailed to the taxpayer.
6    The assessor or chief county assessment officer shall
7notify each person who qualifies for an exemption under this
8Section that the person may also qualify for deferral of real
9estate taxes under the Senior Citizens Real Estate Tax Deferral
10Act. The notice shall set forth the qualifications needed for
11deferral of real estate taxes, the address and telephone number
12of county collector, and a statement that applications for
13deferral of real estate taxes may be obtained from the county
14collector.
15    Notwithstanding Sections 6 and 8 of the State Mandates Act,
16no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18(Source: P.A. 95-644, eff. 10-12-07; 95-876, eff. 8-21-08;
1996-339, eff. 7-1-10; 96-355, eff. 1-1-10; 96-1000, eff. 7-2-10;
2096-1418, eff. 8-2-10.)
 
21    (35 ILCS 200/15-172)
22    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
23Exemption.
24    (a) This Section may be cited as the Senior Citizens
25Assessment Freeze Homestead Exemption.

 

 

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1    (b) As used in this Section:
2    "Applicant" means an individual who has filed an
3application under this Section.
4    "Base amount" means the base year equalized assessed value
5of the residence plus the first year's equalized assessed value
6of any added improvements which increased the assessed value of
7the residence after the base year.
8    "Base year" means the taxable year prior to the taxable
9year for which the applicant first qualifies and applies for
10the exemption provided that in the prior taxable year the
11property was improved with a permanent structure that was
12occupied as a residence by the applicant who was liable for
13paying real property taxes on the property and who was either
14(i) an owner of record of the property or had legal or
15equitable interest in the property as evidenced by a written
16instrument or (ii) had a legal or equitable interest as a
17lessee in the parcel of property that was single family
18residence. If in any subsequent taxable year for which the
19applicant applies and qualifies for the exemption the equalized
20assessed value of the residence is less than the equalized
21assessed value in the existing base year (provided that such
22equalized assessed value is not based on an assessed value that
23results from a temporary irregularity in the property that
24reduces the assessed value for one or more taxable years), then
25that subsequent taxable year shall become the base year until a
26new base year is established under the terms of this paragraph.

 

 

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1For taxable year 1999 only, the Chief County Assessment Officer
2shall review (i) all taxable years for which the applicant
3applied and qualified for the exemption and (ii) the existing
4base year. The assessment officer shall select as the new base
5year the year with the lowest equalized assessed value. An
6equalized assessed value that is based on an assessed value
7that results from a temporary irregularity in the property that
8reduces the assessed value for one or more taxable years shall
9not be considered the lowest equalized assessed value. The
10selected year shall be the base year for taxable year 1999 and
11thereafter until a new base year is established under the terms
12of this paragraph.
13    "Chief County Assessment Officer" means the County
14Assessor or Supervisor of Assessments of the county in which
15the property is located.
16    "Equalized assessed value" means the assessed value as
17equalized by the Illinois Department of Revenue.
18    "Household" means the applicant, the spouse of the
19applicant, and all persons using the residence of the applicant
20as their principal place of residence.
21    "Household income" means the combined income of the members
22of a household for the calendar year preceding the taxable
23year.
24    "Income" has the same meaning as provided in Section 3.07
25of the Senior Citizens and Disabled Persons Property Tax Relief
26and Pharmaceutical Assistance Act, except that, beginning in

 

 

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1assessment year 2001, "income" does not include veteran's
2benefits.
3    "Internal Revenue Code of 1986" means the United States
4Internal Revenue Code of 1986 or any successor law or laws
5relating to federal income taxes in effect for the year
6preceding the taxable year.
7    "Life care facility that qualifies as a cooperative" means
8a facility as defined in Section 2 of the Life Care Facilities
9Act.
10    "Maximum income limitation" means:
11        (1) $35,000 prior to taxable year 1999;
12        (2) $40,000 in taxable years 1999 through 2003;
13        (3) $45,000 in taxable years 2004 through 2005;
14        (4) $50,000 in taxable years 2006 and 2007; and
15        (5) $55,000 in taxable year 2008 and thereafter.
16    "Residence" means the principal dwelling place and
17appurtenant structures used for residential purposes in this
18State occupied on January 1 of the taxable year by a household
19and so much of the surrounding land, constituting the parcel
20upon which the dwelling place is situated, as is used for
21residential purposes. If the Chief County Assessment Officer
22has established a specific legal description for a portion of
23property constituting the residence, then that portion of
24property shall be deemed the residence for the purposes of this
25Section.
26    "Taxable year" means the calendar year during which ad

 

 

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1valorem property taxes payable in the next succeeding year are
2levied.
3    (c) Beginning in taxable year 1994, a senior citizens
4assessment freeze homestead exemption is granted for real
5property that is improved with a permanent structure that is
6occupied as a residence by an applicant who (i) is 65 years of
7age or older during the taxable year, (ii) has a household
8income that does not exceed the maximum income limitation,
9(iii) is liable for paying real property taxes on the property,
10and (iv) is an owner of record of the property or has a legal or
11equitable interest in the property as evidenced by a written
12instrument. This homestead exemption shall also apply to a
13leasehold interest in a parcel of property improved with a
14permanent structure that is a single family residence that is
15occupied as a residence by a person who (i) is 65 years of age
16or older during the taxable year, (ii) has a household income
17that does not exceed the maximum income limitation, (iii) has a
18legal or equitable ownership interest in the property as
19lessee, and (iv) is liable for the payment of real property
20taxes on that property.
21    In counties of 3,000,000 or more inhabitants, the amount of
22the exemption for all taxable years is the equalized assessed
23value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

 

 

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1thereafter, the amount of this exemption shall be the equalized
2assessed value of the residence in the taxable year for which
3application is made minus the base amount; and (ii) for taxable
4year 2006, the amount of the exemption is as follows:
5        (1) For an applicant who has a household income of
6    $45,000 or less, the amount of the exemption is the
7    equalized assessed value of the residence in the taxable
8    year for which application is made minus the base amount.
9        (2) For an applicant who has a household income
10    exceeding $45,000 but not exceeding $46,250, the amount of
11    the exemption is (i) the equalized assessed value of the
12    residence in the taxable year for which application is made
13    minus the base amount (ii) multiplied by 0.8.
14        (3) For an applicant who has a household income
15    exceeding $46,250 but not exceeding $47,500, the amount of
16    the exemption is (i) the equalized assessed value of the
17    residence in the taxable year for which application is made
18    minus the base amount (ii) multiplied by 0.6.
19        (4) For an applicant who has a household income
20    exceeding $47,500 but not exceeding $48,750, the amount of
21    the exemption is (i) the equalized assessed value of the
22    residence in the taxable year for which application is made
23    minus the base amount (ii) multiplied by 0.4.
24        (5) For an applicant who has a household income
25    exceeding $48,750 but not exceeding $50,000, the amount of
26    the exemption is (i) the equalized assessed value of the

 

 

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1    residence in the taxable year for which application is made
2    minus the base amount (ii) multiplied by 0.2.
3    When the applicant is a surviving spouse of an applicant
4for a prior year for the same residence for which an exemption
5under this Section has been granted, the base year and base
6amount for that residence are the same as for the applicant for
7the prior year.
8    Each year at the time the assessment books are certified to
9the County Clerk, the Board of Review or Board of Appeals shall
10give to the County Clerk a list of the assessed values of
11improvements on each parcel qualifying for this exemption that
12were added after the base year for this parcel and that
13increased the assessed value of the property.
14    In the case of land improved with an apartment building
15owned and operated as a cooperative or a building that is a
16life care facility that qualifies as a cooperative, the maximum
17reduction from the equalized assessed value of the property is
18limited to the sum of the reductions calculated for each unit
19occupied as a residence by a person or persons (i) 65 years of
20age or older, (ii) with a household income that does not exceed
21the maximum income limitation, (iii) who is liable, by contract
22with the owner or owners of record, for paying real property
23taxes on the property, and (iv) who is an owner of record of a
24legal or equitable interest in the cooperative apartment
25building, other than a leasehold interest. In the instance of a
26cooperative where a homestead exemption has been granted under

 

 

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1this Section, the cooperative association or its management
2firm shall credit the savings resulting from that exemption
3only to the apportioned tax liability of the owner who
4qualified for the exemption. Any person who willfully refuses
5to credit that savings to an owner who qualifies for the
6exemption is guilty of a Class B misdemeanor.
7    When a homestead exemption has been granted under this
8Section and an applicant then becomes a resident of a facility
9licensed under the Assisted Living and Shared Housing Act, the
10Nursing Home Care Act, or the MR/DD Community Care Act, the
11exemption shall be granted in subsequent years so long as the
12residence (i) continues to be occupied by the qualified
13applicant's spouse or (ii) if remaining unoccupied, is still
14owned by the qualified applicant for the homestead exemption.
15    Beginning January 1, 1997, when an individual dies who
16would have qualified for an exemption under this Section, and
17the surviving spouse does not independently qualify for this
18exemption because of age, the exemption under this Section
19shall be granted to the surviving spouse for the taxable year
20preceding and the taxable year of the death, provided that,
21except for age, the surviving spouse meets all other
22qualifications for the granting of this exemption for those
23years.
24    When married persons maintain separate residences, the
25exemption provided for in this Section may be claimed by only
26one of such persons and for only one residence.

 

 

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1    For taxable year 1994 only, in counties having less than
23,000,000 inhabitants, to receive the exemption, a person shall
3submit an application by February 15, 1995 to the Chief County
4Assessment Officer of the county in which the property is
5located. In counties having 3,000,000 or more inhabitants, for
6taxable year 1994 and all subsequent taxable years, to receive
7the exemption, a person may submit an application to the Chief
8County Assessment Officer of the county in which the property
9is located during such period as may be specified by the Chief
10County Assessment Officer. The Chief County Assessment Officer
11in counties of 3,000,000 or more inhabitants shall annually
12give notice of the application period by mail or by
13publication. In counties having less than 3,000,000
14inhabitants, beginning with taxable year 1995 and thereafter,
15to receive the exemption, a person shall submit an application
16by July 1 of each taxable year to the Chief County Assessment
17Officer of the county in which the property is located. A
18county may, by ordinance, establish a date for submission of
19applications that is different than July 1. The applicant shall
20submit with the application an affidavit of the applicant's
21total household income, age, marital status (and if married the
22name and address of the applicant's spouse, if known), and
23principal dwelling place of members of the household on January
241 of the taxable year. The Department shall establish, by rule,
25a method for verifying the accuracy of affidavits filed by
26applicants under this Section, and the Chief County Assessment

 

 

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1Officer may conduct audits of any taxpayer claiming an
2exemption under this Section to verify that the taxpayer is
3eligible to receive the exemption. Each application shall
4contain or be verified by a written declaration that it is made
5under the penalties of perjury. A taxpayer's signing a
6fraudulent application under this Act is perjury, as defined in
7Section 32-2 of the Criminal Code of 1961. The applications
8shall be clearly marked as applications for the Senior Citizens
9Assessment Freeze Homestead Exemption and must contain a notice
10that any taxpayer who receives the exemption is subject to an
11audit by the Chief County Assessment Officer.
12    Notwithstanding any other provision to the contrary, in
13counties having fewer than 3,000,000 inhabitants, if an
14applicant fails to file the application required by this
15Section in a timely manner and this failure to file is due to a
16mental or physical condition sufficiently severe so as to
17render the applicant incapable of filing the application in a
18timely manner, the Chief County Assessment Officer may extend
19the filing deadline for a period of 30 days after the applicant
20regains the capability to file the application, but in no case
21may the filing deadline be extended beyond 3 months of the
22original filing deadline. In order to receive the extension
23provided in this paragraph, the applicant shall provide the
24Chief County Assessment Officer with a signed statement from
25the applicant's physician stating the nature and extent of the
26condition, that, in the physician's opinion, the condition was

 

 

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1so severe that it rendered the applicant incapable of filing
2the application in a timely manner, and the date on which the
3applicant regained the capability to file the application.
4    Beginning January 1, 1998, notwithstanding any other
5provision to the contrary, in counties having fewer than
63,000,000 inhabitants, if an applicant fails to file the
7application required by this Section in a timely manner and
8this failure to file is due to a mental or physical condition
9sufficiently severe so as to render the applicant incapable of
10filing the application in a timely manner, the Chief County
11Assessment Officer may extend the filing deadline for a period
12of 3 months. In order to receive the extension provided in this
13paragraph, the applicant shall provide the Chief County
14Assessment Officer with a signed statement from the applicant's
15physician stating the nature and extent of the condition, and
16that, in the physician's opinion, the condition was so severe
17that it rendered the applicant incapable of filing the
18application in a timely manner.
19    In counties having less than 3,000,000 inhabitants, if an
20applicant was denied an exemption in taxable year 1994 and the
21denial occurred due to an error on the part of an assessment
22official, or his or her agent or employee, then beginning in
23taxable year 1997 the applicant's base year, for purposes of
24determining the amount of the exemption, shall be 1993 rather
25than 1994. In addition, in taxable year 1997, the applicant's
26exemption shall also include an amount equal to (i) the amount

 

 

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1of any exemption denied to the applicant in taxable year 1995
2as a result of using 1994, rather than 1993, as the base year,
3(ii) the amount of any exemption denied to the applicant in
4taxable year 1996 as a result of using 1994, rather than 1993,
5as the base year, and (iii) the amount of the exemption
6erroneously denied for taxable year 1994.
7    For purposes of this Section, a person who will be 65 years
8of age during the current taxable year shall be eligible to
9apply for the homestead exemption during that taxable year.
10Application shall be made during the application period in
11effect for the county of his or her residence.
12    If a person turns 70 years of age or older during the
13taxable year, and he or she qualified for an exemption under
14this Section in the previous taxable year, then the person
15qualifying need not reapply for the exemption.
16    The Chief County Assessment Officer may determine the
17eligibility of a life care facility that qualifies as a
18cooperative to receive the benefits provided by this Section by
19use of an affidavit, application, visual inspection,
20questionnaire, or other reasonable method in order to insure
21that the tax savings resulting from the exemption are credited
22by the management firm to the apportioned tax liability of each
23qualifying resident. The Chief County Assessment Officer may
24request reasonable proof that the management firm has so
25credited that exemption.
26    Except as provided in this Section, all information

 

 

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1received by the chief county assessment officer or the
2Department from applications filed under this Section, or from
3any investigation conducted under the provisions of this
4Section, shall be confidential, except for official purposes or
5pursuant to official procedures for collection of any State or
6local tax or enforcement of any civil or criminal penalty or
7sanction imposed by this Act or by any statute or ordinance
8imposing a State or local tax. Any person who divulges any such
9information in any manner, except in accordance with a proper
10judicial order, is guilty of a Class A misdemeanor.
11    Nothing contained in this Section shall prevent the
12Director or chief county assessment officer from publishing or
13making available reasonable statistics concerning the
14operation of the exemption contained in this Section in which
15the contents of claims are grouped into aggregates in such a
16way that information contained in any individual claim shall
17not be disclosed.
18    (d) Each Chief County Assessment Officer shall annually
19publish a notice of availability of the exemption provided
20under this Section. The notice shall be published at least 60
21days but no more than 75 days prior to the date on which the
22application must be submitted to the Chief County Assessment
23Officer of the county in which the property is located. The
24notice shall appear in a newspaper of general circulation in
25the county.
26    Notwithstanding Sections 6 and 8 of the State Mandates Act,

 

 

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1no reimbursement by the State is required for the
2implementation of any mandate created by this Section.
3(Source: P.A. 95-644, eff. 10-12-07; 96-339, eff. 7-1-10;
496-355, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.