98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4352

 

Introduced , by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Beginning in taxable year 2014, 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

 

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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
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 Disabled Persons Property Tax Relief
13Act, except that, beginning in assessment year 2001, "income"
14does 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 2013;
2    and thereafter.
3        (6) in taxable year 2014: (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 2015 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, or the ID/DD Community Care Act,
21the exemption shall be granted in subsequent years so long as
22the residence (i) continues to be occupied by the qualified
23applicant's spouse or (ii) if remaining unoccupied, is still
24owned by the qualified applicant for the homestead exemption.
25    Beginning January 1, 1997, when an individual dies who
26would have qualified for an exemption under this Section, and

 

 

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1the surviving spouse does not independently qualify for this
2exemption because of age, the exemption under this Section
3shall be granted to the surviving spouse for the taxable year
4preceding and the taxable year of the death, provided that,
5except for age, the surviving spouse meets all other
6qualifications for the granting of this exemption for those
7years.
8    When married persons maintain separate residences, the
9exemption provided for in this Section may be claimed by only
10one of such persons and for only one residence.
11    For taxable year 1994 only, in counties having less than
123,000,000 inhabitants, to receive the exemption, a person shall
13submit an application by February 15, 1995 to the Chief County
14Assessment Officer of the county in which the property is
15located. In counties having 3,000,000 or more inhabitants, for
16taxable year 1994 and all subsequent taxable years, to receive
17the exemption, a person may submit an application to the Chief
18County Assessment Officer of the county in which the property
19is located during such period as may be specified by the Chief
20County Assessment Officer. The Chief County Assessment Officer
21in counties of 3,000,000 or more inhabitants shall annually
22give notice of the application period by mail or by
23publication. In counties having less than 3,000,000
24inhabitants, beginning with taxable year 1995 and thereafter,
25to receive the exemption, a person shall submit an application
26by July 1 of each taxable year to the Chief County Assessment

 

 

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1Officer of the county in which the property is located. A
2county may, by ordinance, establish a date for submission of
3applications that is different than July 1. The applicant shall
4submit with the application an affidavit of the applicant's
5total household income, age, marital status (and if married the
6name and address of the applicant's spouse, if known), and
7principal dwelling place of members of the household on January
81 of the taxable year. The Department shall establish, by rule,
9a method for verifying the accuracy of affidavits filed by
10applicants under this Section, and the Chief County Assessment
11Officer may conduct audits of any taxpayer claiming an
12exemption under this Section to verify that the taxpayer is
13eligible to receive the exemption. Each application shall
14contain or be verified by a written declaration that it is made
15under the penalties of perjury. A taxpayer's signing a
16fraudulent application under this Act is perjury, as defined in
17Section 32-2 of the Criminal Code of 2012. The applications
18shall be clearly marked as applications for the Senior Citizens
19Assessment Freeze Homestead Exemption and must contain a notice
20that any taxpayer who receives the exemption is subject to an
21audit by the Chief County Assessment Officer.
22    Notwithstanding any other provision to the contrary, in
23counties having fewer than 3,000,000 inhabitants, if an
24applicant fails to file the application required by this
25Section in a timely manner and this failure to file is due to a
26mental or physical condition sufficiently severe so as to

 

 

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1render the applicant incapable of filing the application in a
2timely manner, the Chief County Assessment Officer may extend
3the filing deadline for a period of 30 days after the applicant
4regains the capability to file the application, but in no case
5may the filing deadline be extended beyond 3 months of the
6original filing deadline. In order to receive the extension
7provided in this paragraph, the applicant shall provide the
8Chief County Assessment Officer with a signed statement from
9the applicant's physician stating the nature and extent of the
10condition, that, in the physician's opinion, the condition was
11so severe that it rendered the applicant incapable of filing
12the application in a timely manner, and the date on which the
13applicant regained the capability to file the application.
14    Beginning January 1, 1998, notwithstanding any other
15provision to the contrary, in counties having fewer than
163,000,000 inhabitants, if an applicant fails to file the
17application required by this Section in a timely manner and
18this failure to file is due to a mental or physical condition
19sufficiently severe so as to render the applicant incapable of
20filing the application in a timely manner, the Chief County
21Assessment Officer may extend the filing deadline for a period
22of 3 months. In order to receive the extension provided in this
23paragraph, the applicant shall provide the Chief County
24Assessment Officer with a signed statement from the applicant's
25physician stating the nature and extent of the condition, and
26that, in the physician's opinion, the condition was so severe

 

 

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1that it rendered the applicant incapable of filing the
2application in a timely manner.
3    In counties having less than 3,000,000 inhabitants, if an
4applicant was denied an exemption in taxable year 1994 and the
5denial occurred due to an error on the part of an assessment
6official, or his or her agent or employee, then beginning in
7taxable year 1997 the applicant's base year, for purposes of
8determining the amount of the exemption, shall be 1993 rather
9than 1994. In addition, in taxable year 1997, the applicant's
10exemption shall also include an amount equal to (i) the amount
11of any exemption denied to the applicant in taxable year 1995
12as a result of using 1994, rather than 1993, as the base year,
13(ii) the amount of any exemption denied to the applicant in
14taxable year 1996 as a result of using 1994, rather than 1993,
15as the base year, and (iii) the amount of the exemption
16erroneously denied for taxable year 1994.
17    For purposes of this Section, a person who will be 65 years
18of age during the current taxable year shall be eligible to
19apply for the homestead exemption during that taxable year.
20Application shall be made during the application period in
21effect for the county of his or her residence.
22    The Chief County Assessment Officer may determine the
23eligibility of a life care facility that qualifies as a
24cooperative to receive the benefits provided by this Section by
25use of an affidavit, application, visual inspection,
26questionnaire, or other reasonable method in order to insure

 

 

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1that the tax savings resulting from the exemption are credited
2by the management firm to the apportioned tax liability of each
3qualifying resident. The Chief County Assessment Officer may
4request reasonable proof that the management firm has so
5credited that exemption.
6    Except as provided in this Section, all information
7received by the chief county assessment officer or the
8Department from applications filed under this Section, or from
9any investigation conducted under the provisions of this
10Section, shall be confidential, except for official purposes or
11pursuant to official procedures for collection of any State or
12local tax or enforcement of any civil or criminal penalty or
13sanction imposed by this Act or by any statute or ordinance
14imposing a State or local tax. Any person who divulges any such
15information in any manner, except in accordance with a proper
16judicial order, is guilty of a Class A misdemeanor.
17    Nothing contained in this Section shall prevent the
18Director or chief county assessment officer from publishing or
19making available reasonable statistics concerning the
20operation of the exemption contained in this Section in which
21the contents of claims are grouped into aggregates in such a
22way that information contained in any individual claim shall
23not be disclosed.
24    (d) Each Chief County Assessment Officer shall annually
25publish a notice of availability of the exemption provided
26under this Section. The notice shall be published at least 60

 

 

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1days but no more than 75 days prior to the date on which the
2application must be submitted to the Chief County Assessment
3Officer of the county in which the property is located. The
4notice shall appear in a newspaper of general circulation in
5the county.
6    Notwithstanding Sections 6 and 8 of the State Mandates Act,
7no reimbursement by the State is required for the
8implementation of any mandate created by this Section.
9(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
10eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
1198-104, eff. 7-22-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.