101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2758

 

Introduced , by Rep. Thomas Morrison

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Beginning in taxable year 2019, increases the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption from $65,000 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

 

HB2758LRB101 09212 HLH 54306 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;

 

 

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1        (5) $55,000 in taxable years 2008 through 2016;
2        (6) for taxable year 2017, (i) $65,000 for qualified
3    property located in a county with 3,000,000 or more
4    inhabitants and (ii) $55,000 for qualified property
5    located in a county with fewer than 3,000,000 inhabitants;
6    and
7        (7) for taxable year years 2018 and thereafter, $65,000
8    for all qualified property; .
9        (8) for taxable year 2019, (A) $65,000 for applicants
10    who have occupied the residence for less than 5 years and
11    (B) $75,000 for applicants who have occupied the residence
12    for 5 or more years; and
13        (7) for taxable year 2020 and thereafter, (A) for
14    applicants who have occupied the residence for less than 5
15    years, an amount equal to the maximum income limitation for
16    the immediately prior taxable year for applicants who have
17    occupied the residence for less than 5 years increased by
18    the lesser of (i) 2% or (ii) the percentage increase during
19    the immediately prior taxable year in the Consumer Price
20    Index for All Urban Consumers for all items published by
21    the United States Department of Labor Bureau of Labor
22    Statistics and (B) for applicants who have occupied the
23    residence for 5 or more years, an amount equal to the
24    maximum income limitation for the immediately prior
25    taxable year for applicants who have occupied the residence
26    for 5 or more years increased by the lesser of (i) 2% or

 

 

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

 

 

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1instrument. This homestead exemption shall also apply to a
2leasehold interest in a parcel of property improved with a
3permanent structure that is a single family residence that is
4occupied as a residence by a person who (i) is 65 years of age
5or older during the taxable year, (ii) has a household income
6that does not exceed the maximum income limitation, (iii) has a
7legal or equitable ownership interest in the property as
8lessee, and (iv) is liable for the payment of real property
9taxes on that property.
10    In counties of 3,000,000 or more inhabitants, the amount of
11the exemption for all taxable years is the equalized assessed
12value of the residence in the taxable year for which
13application is made minus the base amount. In all other
14counties, the amount of the exemption is as follows: (i)
15through taxable year 2005 and for taxable year 2007 and
16thereafter, the amount of this exemption shall be the equalized
17assessed value of the residence in the taxable year for which
18application is made minus the base amount; and (ii) for taxable
19year 2006, the amount of the exemption is as follows:
20        (1) For an applicant who has a household income of
21    $45,000 or less, the amount of the exemption is the
22    equalized assessed value of the residence in the taxable
23    year for which application is made minus the base amount.
24        (2) For an applicant who has a household income
25    exceeding $45,000 but not exceeding $46,250, 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 0.8.
3        (3) For an applicant who has a household income
4    exceeding $46,250 but not exceeding $47,500, 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 0.6.
8        (4) For an applicant who has a household income
9    exceeding $47,500 but not exceeding $48,750, 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 0.4.
13        (5) For an applicant who has a household income
14    exceeding $48,750 but not exceeding $50,000, 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 0.2.
18    When the applicant is a surviving spouse of an applicant
19for a prior year for the same residence for which an exemption
20under this Section has been granted, the base year and base
21amount for that residence are the same as for the applicant for
22the prior year.
23    Each year at the time the assessment books are certified to
24the County Clerk, the Board of Review or Board of Appeals shall
25give to the County Clerk a list of the assessed values of
26improvements on each parcel qualifying for this exemption that

 

 

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

 

 

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1the MC/DD Act, the exemption shall be granted in subsequent
2years so long as the residence (i) continues to be occupied by
3the qualified applicant's spouse or (ii) if remaining
4unoccupied, is still owned by the qualified applicant for the
5homestead exemption.
6    Beginning January 1, 1997, when an individual dies who
7would have qualified for an exemption under this Section, and
8the surviving spouse does not independently qualify for this
9exemption because of age, the exemption under this Section
10shall be granted to the surviving spouse for the taxable year
11preceding and the taxable year of the death, provided that,
12except for age, the surviving spouse meets all other
13qualifications for the granting of this exemption for those
14years.
15    When married persons maintain separate residences, the
16exemption provided for in this Section may be claimed by only
17one of such persons and for only one residence.
18    For taxable year 1994 only, in counties having less than
193,000,000 inhabitants, to receive the exemption, a person shall
20submit an application by February 15, 1995 to the Chief County
21Assessment Officer of the county in which the property is
22located. In counties having 3,000,000 or more inhabitants, for
23taxable year 1994 and all subsequent taxable years, to receive
24the exemption, a person may submit an application to the Chief
25County Assessment Officer of the county in which the property
26is located during such period as may be specified by the Chief

 

 

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1County Assessment Officer. The Chief County Assessment Officer
2in counties of 3,000,000 or more inhabitants shall annually
3give notice of the application period by mail or by
4publication. In counties having less than 3,000,000
5inhabitants, beginning with taxable year 1995 and thereafter,
6to receive the exemption, a person shall submit an application
7by July 1 of each taxable year to the Chief County Assessment
8Officer of the county in which the property is located. A
9county may, by ordinance, establish a date for submission of
10applications that is different than July 1. The applicant shall
11submit with the application an affidavit of the applicant's
12total household income, age, marital status (and if married the
13name and address of the applicant's spouse, if known), and
14principal dwelling place of members of the household on January
151 of the taxable year. The Department shall establish, by rule,
16a method for verifying the accuracy of affidavits filed by
17applicants under this Section, and the Chief County Assessment
18Officer may conduct audits of any taxpayer claiming an
19exemption under this Section to verify that the taxpayer is
20eligible to receive the exemption. Each application shall
21contain or be verified by a written declaration that it is made
22under the penalties of perjury. A taxpayer's signing a
23fraudulent application under this Act is perjury, as defined in
24Section 32-2 of the Criminal Code of 2012. The applications
25shall be clearly marked as applications for the Senior Citizens
26Assessment Freeze Homestead Exemption and must contain a notice

 

 

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1that any taxpayer who receives the exemption is subject to an
2audit by the Chief County Assessment Officer.
3    Notwithstanding any other provision to the contrary, in
4counties having fewer than 3,000,000 inhabitants, if an
5applicant fails to file the application required by this
6Section in a timely manner and this failure to file is due to a
7mental or physical condition sufficiently severe so as to
8render the applicant incapable of filing the application in a
9timely manner, the Chief County Assessment Officer may extend
10the filing deadline for a period of 30 days after the applicant
11regains the capability to file the application, but in no case
12may the filing deadline be extended beyond 3 months of the
13original filing deadline. In order to receive the extension
14provided in this paragraph, the applicant shall provide the
15Chief County Assessment Officer with a signed statement from
16the applicant's physician, advanced practice registered nurse,
17or physician assistant stating the nature and extent of the
18condition, that, in the physician's, advanced practice
19registered nurse's, or physician assistant's opinion, the
20condition was so severe that it rendered the applicant
21incapable of filing the application in a timely manner, and the
22date on which the applicant regained the capability to file the
23application.
24    Beginning January 1, 1998, notwithstanding any other
25provision to the contrary, in counties having fewer than
263,000,000 inhabitants, if an applicant fails to file the

 

 

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1application required by this Section in a timely manner and
2this failure to file is due to a mental or physical condition
3sufficiently severe so as to render the applicant incapable of
4filing the application in a timely manner, the Chief County
5Assessment Officer may extend the filing deadline for a period
6of 3 months. In order to receive the extension provided in this
7paragraph, the applicant shall provide the Chief County
8Assessment Officer with a signed statement from the applicant's
9physician, advanced practice registered nurse, or physician
10assistant stating the nature and extent of the condition, and
11that, in the physician's, advanced practice registered
12nurse's, or physician assistant's opinion, the condition was so
13severe that it rendered the applicant incapable of filing the
14application in a timely manner.
15    In counties having less than 3,000,000 inhabitants, if an
16applicant was denied an exemption in taxable year 1994 and the
17denial occurred due to an error on the part of an assessment
18official, or his or her agent or employee, then beginning in
19taxable year 1997 the applicant's base year, for purposes of
20determining the amount of the exemption, shall be 1993 rather
21than 1994. In addition, in taxable year 1997, the applicant's
22exemption shall also include an amount equal to (i) the amount
23of any exemption denied to the applicant in taxable year 1995
24as a result of using 1994, rather than 1993, as the base year,
25(ii) the amount of any exemption denied to the applicant in
26taxable year 1996 as a result of using 1994, rather than 1993,

 

 

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1as the base year, and (iii) the amount of the exemption
2erroneously denied for taxable year 1994.
3    For purposes of this Section, a person who will be 65 years
4of age during the current taxable year shall be eligible to
5apply for the homestead exemption during that taxable year.
6Application shall be made during the application period in
7effect for the county of his or her residence.
8    The Chief County Assessment Officer may determine the
9eligibility of a life care facility that qualifies as a
10cooperative to receive the benefits provided by this Section by
11use of an affidavit, application, visual inspection,
12questionnaire, or other reasonable method in order to insure
13that the tax savings resulting from the exemption are credited
14by the management firm to the apportioned tax liability of each
15qualifying resident. The Chief County Assessment Officer may
16request reasonable proof that the management firm has so
17credited that exemption.
18    Except as provided in this Section, all information
19received by the chief county assessment officer or the
20Department from applications filed under this Section, or from
21any investigation conducted under the provisions of this
22Section, shall be confidential, except for official purposes or
23pursuant to official procedures for collection of any State or
24local tax or enforcement of any civil or criminal penalty or
25sanction imposed by this Act or by any statute or ordinance
26imposing a State or local tax. Any person who divulges any such

 

 

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1information in any manner, except in accordance with a proper
2judicial order, is guilty of a Class A misdemeanor.
3    Nothing contained in this Section shall prevent the
4Director or chief county assessment officer from publishing or
5making available reasonable statistics concerning the
6operation of the exemption contained in this Section in which
7the contents of claims are grouped into aggregates in such a
8way that information contained in any individual claim shall
9not be disclosed.
10    Notwithstanding any other provision of law, for taxable
11year 2017 and thereafter, in counties of 3,000,000 or more
12inhabitants, the amount of the exemption shall be the greater
13of (i) the amount of the exemption otherwise calculated under
14this Section or (ii) $2,000.
15    (d) Each Chief County Assessment Officer shall annually
16publish a notice of availability of the exemption provided
17under this Section. The notice shall be published at least 60
18days but no more than 75 days prior to the date on which the
19application must be submitted to the Chief County Assessment
20Officer of the county in which the property is located. The
21notice shall appear in a newspaper of general circulation in
22the county.
23    Notwithstanding Sections 6 and 8 of the State Mandates Act,
24no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;

 

 

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199-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
28-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.