98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1937

 

Introduced 2/15/2013, by Sen. Christine Radogno

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. In a Section concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that the applicant's household income does not include the income of any disabled person who is a member of the household.


LRB098 09012 HLH 39147 b

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

 

 

A BILL FOR

 

SB1937LRB098 09012 HLH 39147 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    "Disabled person" means a person unable to engage in any
4substantial gainful activity by reason of a medically
5determinable physical or mental impairment that (i) can be
6expected to result in death or (ii) has lasted or can be
7expected to last for a continuous period of not less than 12
8months.
9    "Equalized assessed value" means the assessed value as
10equalized by the Illinois Department of Revenue.
11    "Household" means the applicant, the spouse of the
12applicant, and all persons using the residence of the applicant
13as their principal place of residence.
14    "Household income" means the combined income of the members
15of a household for the calendar year preceding the taxable
16year. Household income does not include the income of any
17disabled person who is a member of a household, as defined by
18this Section.
19    "Income" has the same meaning as provided in Section 3.07
20of the Senior Citizens and Disabled Persons Property Tax Relief
21Act, except that, beginning in assessment year 2001, "income"
22does not include veteran's benefits.
23    "Internal Revenue Code of 1986" means the United States
24Internal Revenue Code of 1986 or any successor law or laws
25relating to federal income taxes in effect for the year
26preceding the taxable year.

 

 

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1    "Life care facility that qualifies as a cooperative" means
2a facility as defined in Section 2 of the Life Care Facilities
3Act.
4    "Maximum income limitation" means:
5        (1) $35,000 prior to taxable year 1999;
6        (2) $40,000 in taxable years 1999 through 2003;
7        (3) $45,000 in taxable years 2004 through 2005;
8        (4) $50,000 in taxable years 2006 and 2007; and
9        (5) $55,000 in taxable year 2008 and thereafter.
10    "Residence" means the principal dwelling place and
11appurtenant structures used for residential purposes in this
12State occupied on January 1 of the taxable year by a household
13and so much of the surrounding land, constituting the parcel
14upon which the dwelling place is situated, as is used for
15residential purposes. If the Chief County Assessment Officer
16has established a specific legal description for a portion of
17property constituting the residence, then that portion of
18property shall be deemed the residence for the purposes of this
19Section.
20    "Taxable year" means the calendar year during which ad
21valorem property taxes payable in the next succeeding year are
22levied.
23    (c) Beginning in taxable year 1994, a senior citizens
24assessment freeze homestead exemption is granted for real
25property that is improved with a permanent structure that is
26occupied as a residence by an applicant who (i) is 65 years of

 

 

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1age or older during the taxable year, (ii) has a household
2income that does not exceed the maximum income limitation,
3(iii) is liable for paying real property taxes on the property,
4and (iv) is an owner of record of the property or has a legal or
5equitable interest in the property as evidenced by a written
6instrument. This homestead exemption shall also apply to a
7leasehold interest in a parcel of property improved with a
8permanent structure that is a single family residence that is
9occupied as a residence by a person who (i) is 65 years of age
10or older during the taxable year, (ii) has a household income
11that does not exceed the maximum income limitation, (iii) has a
12legal or equitable ownership interest in the property as
13lessee, and (iv) is liable for the payment of real property
14taxes on that property.
15    In counties of 3,000,000 or more inhabitants, the amount of
16the exemption for all taxable years is the equalized assessed
17value of the residence in the taxable year for which
18application is made minus the base amount. In all other
19counties, the amount of the exemption is as follows: (i)
20through taxable year 2005 and for taxable year 2007 and
21thereafter, the amount of this exemption shall be the equalized
22assessed value of the residence in the taxable year for which
23application is made minus the base amount; and (ii) for taxable
24year 2006, the amount of the exemption is as follows:
25        (1) For an applicant who has a household income of
26    $45,000 or less, the amount of the exemption is the

 

 

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1    equalized assessed value of the residence in the taxable
2    year for which application is made minus the base amount.
3        (2) For an applicant who has a household income
4    exceeding $45,000 but not exceeding $46,250, the amount of
5    the exemption is (i) the equalized assessed value of the
6    residence in the taxable year for which application is made
7    minus the base amount (ii) multiplied by 0.8.
8        (3) For an applicant who has a household income
9    exceeding $46,250 but not exceeding $47,500, the amount of
10    the exemption is (i) the equalized assessed value of the
11    residence in the taxable year for which application is made
12    minus the base amount (ii) multiplied by 0.6.
13        (4) For an applicant who has a household income
14    exceeding $47,500 but not exceeding $48,750, the amount of
15    the exemption is (i) the equalized assessed value of the
16    residence in the taxable year for which application is made
17    minus the base amount (ii) multiplied by 0.4.
18        (5) For an applicant who has a household income
19    exceeding $48,750 but not exceeding $50,000, 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 0.2.
23    When the applicant is a surviving spouse of an applicant
24for a prior year for the same residence for which an exemption
25under this Section has been granted, the base year and base
26amount for that residence are the same as for the applicant for

 

 

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

 

 

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1    When a homestead exemption has been granted under this
2Section and an applicant then becomes a resident of a facility
3licensed under the Assisted Living and Shared Housing Act, the
4Nursing Home Care Act, the Specialized Mental Health
5Rehabilitation Act, or the ID/DD Community Care Act, the
6exemption shall be granted in subsequent years so long as the
7residence (i) continues to be occupied by the qualified
8applicant's spouse or (ii) if remaining unoccupied, is still
9owned by the qualified applicant for the homestead exemption.
10    Beginning January 1, 1997, when an individual dies who
11would have qualified for an exemption under this Section, and
12the surviving spouse does not independently qualify for this
13exemption because of age, the exemption under this Section
14shall be granted to the surviving spouse for the taxable year
15preceding and the taxable year of the death, provided that,
16except for age, the surviving spouse meets all other
17qualifications for the granting of this exemption for those
18years.
19    When married persons maintain separate residences, the
20exemption provided for in this Section may be claimed by only
21one of such persons and for only one residence.
22    For taxable year 1994 only, in counties having less than
233,000,000 inhabitants, to receive the exemption, a person shall
24submit an application by February 15, 1995 to the Chief County
25Assessment Officer of the county in which the property is
26located. In counties having 3,000,000 or more inhabitants, for

 

 

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1taxable year 1994 and all subsequent taxable years, to receive
2the exemption, a person may submit an application to the Chief
3County Assessment Officer of the county in which the property
4is located during such period as may be specified by the Chief
5County Assessment Officer. The Chief County Assessment Officer
6in counties of 3,000,000 or more inhabitants shall annually
7give notice of the application period by mail or by
8publication. In counties having less than 3,000,000
9inhabitants, beginning with taxable year 1995 and thereafter,
10to receive the exemption, a person shall submit an application
11by July 1 of each taxable year to the Chief County Assessment
12Officer of the county in which the property is located. A
13county may, by ordinance, establish a date for submission of
14applications that is different than July 1. The applicant shall
15submit with the application an affidavit of the applicant's
16total household income, age, marital status (and if married the
17name and address of the applicant's spouse, if known), and
18principal dwelling place of members of the household on January
191 of the taxable year. The Department shall establish, by rule,
20a method for verifying the accuracy of affidavits filed by
21applicants under this Section, and the Chief County Assessment
22Officer may conduct audits of any taxpayer claiming an
23exemption under this Section to verify that the taxpayer is
24eligible to receive the exemption. Each application shall
25contain or be verified by a written declaration that it is made
26under the penalties of perjury. A taxpayer's signing a

 

 

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1fraudulent application under this Act is perjury, as defined in
2Section 32-2 of the Criminal Code of 2012. The applications
3shall be clearly marked as applications for the Senior Citizens
4Assessment Freeze Homestead Exemption and must contain a notice
5that any taxpayer who receives the exemption is subject to an
6audit by the Chief County Assessment Officer.
7    If any applicant's household contains a disabled person,
8and if that disabled person's income is not reported as part of
9the applicant's household income on an application for an
10exemption under this Section, then that applicant shall submit
11proof of the disability in the manner prescribed by the chief
12county assessment officer. Proof that an applicant is eligible
13to receive disability benefits under the federal Social
14Security Act constitutes proof of disability for purposes of
15this Section. Issuance of an Illinois Disabled Person
16Identification Card to the applicant stating that the possessor
17is under a Class 2 disability, as defined in Section 4A of the
18Illinois Identification Card Act, constitutes proof that the
19person is a disabled person for purposes of this Section.
20    Notwithstanding any other provision to the contrary, in
21counties having fewer than 3,000,000 inhabitants, if an
22applicant fails to file the application required by this
23Section in a timely manner and this failure to file is due to a
24mental or physical condition sufficiently severe so as to
25render the applicant incapable of filing the application in a
26timely manner, the Chief County Assessment Officer may extend

 

 

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1the filing deadline for a period of 30 days after the applicant
2regains the capability to file the application, but in no case
3may the filing deadline be extended beyond 3 months of the
4original filing deadline. In order to receive the extension
5provided in this paragraph, the applicant shall provide the
6Chief County Assessment Officer with a signed statement from
7the applicant's physician stating the nature and extent of the
8condition, that, in the physician's opinion, the condition was
9so severe that it rendered the applicant incapable of filing
10the application in a timely manner, and the date on which the
11applicant regained the capability to file the application.
12    Beginning January 1, 1998, notwithstanding any other
13provision to the contrary, in counties having fewer than
143,000,000 inhabitants, if an applicant fails to file the
15application required by this Section in a timely manner and
16this failure to file is due to a mental or physical condition
17sufficiently severe so as to render the applicant incapable of
18filing the application in a timely manner, the Chief County
19Assessment Officer may extend the filing deadline for a period
20of 3 months. In order to receive the extension provided in this
21paragraph, the applicant shall provide the Chief County
22Assessment Officer with a signed statement from the applicant's
23physician stating the nature and extent of the condition, and
24that, in the physician's opinion, the condition was so severe
25that it rendered the applicant incapable of filing the
26application in a timely manner.

 

 

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

 

 

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

 

 

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1Officer of the county in which the property is located. The
2notice shall appear in a newspaper of general circulation in
3the county.
4    Notwithstanding Sections 6 and 8 of the State Mandates Act,
5no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
896-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
997-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff.
101-25-13.)