102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3797

 

Introduced 2/22/2021, by Rep. Bradley Stephens

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-275
35 ILCS 200/15-10
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that the surviving spouse of a fallen police officer, soldier, or rescue worker who meets certain income limitations is eligible for an assessment freeze. Effective immediately.


LRB102 04245 HLH 14263 b

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

 

 

A BILL FOR

 

HB3797LRB102 04245 HLH 14263 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
5Sections 9-275, 15-10, 15-172 as follows:
 
6    (35 ILCS 200/9-275)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) For purposes of this Section:
9    "Erroneous homestead exemption" means a homestead
10exemption that was granted for real property in a taxable year
11if the property was not eligible for that exemption in that
12taxable year. If the taxpayer receives an erroneous homestead
13exemption under a single Section of this Code for the same
14property in multiple years, that exemption is considered a
15single erroneous homestead exemption for purposes of this
16Section. However, if the taxpayer receives erroneous homestead
17exemptions under multiple Sections of this Code for the same
18property, or if the taxpayer receives erroneous homestead
19exemptions under the same Section of this Code for multiple
20properties, then each of those exemptions is considered a
21separate erroneous homestead exemption for purposes of this
22Section.
23    "Homestead exemption" means an exemption under Section

 

 

HB3797- 2 -LRB102 04245 HLH 14263 b

115-165 (veterans with disabilities), 15-167 (returning
2veterans), 15-168 (persons with disabilities), 15-169
3(standard homestead for veterans with disabilities), 15-170
4(senior citizens), 15-172 (senior citizens assessment freeze),
515-175 (general homestead), 15-176 (alternative general
6homestead), or 15-177 (long-time occupant).
7    "Erroneous exemption principal amount" means the total
8difference between the property taxes actually billed to a
9property index number and the amount of property taxes that
10would have been billed but for the erroneous exemption or
11exemptions.
12    "Taxpayer" means the property owner or leasehold owner
13that erroneously received a homestead exemption upon property.
14    (b) Notwithstanding any other provision of law, in
15counties with 3,000,000 or more inhabitants, the chief county
16assessment officer shall include the following information
17with each assessment notice sent in a general assessment year:
18(1) a list of each homestead exemption available under Article
1915 of this Code and a description of the eligibility criteria
20for that exemption, including the number of assessment years
21of automatic renewal remaining on a current senior citizens
22homestead exemption if such an exemption has been applied to
23the property; (2) a list of each homestead exemption applied
24to the property in the current assessment year; (3)
25information regarding penalties and interest that may be
26incurred under this Section if the taxpayer received an

 

 

HB3797- 3 -LRB102 04245 HLH 14263 b

1erroneous homestead exemption in a previous taxable year; and
2(4) notice of the 60-day grace period available under this
3subsection. If, within 60 days after receiving his or her
4assessment notice, the taxpayer notifies the chief county
5assessment officer that he or she received an erroneous
6homestead exemption in a previous taxable year, and if the
7taxpayer pays the erroneous exemption principal amount, plus
8interest as provided in subsection (f), then the taxpayer
9shall not be liable for the penalties provided in subsection
10(f) with respect to that exemption.
11    (c) In counties with 3,000,000 or more inhabitants, when
12the chief county assessment officer determines that one or
13more erroneous homestead exemptions was applied to the
14property, the erroneous exemption principal amount, together
15with all applicable interest and penalties as provided in
16subsections (f) and (j), shall constitute a lien in the name of
17the People of Cook County on the property receiving the
18erroneous homestead exemption. Upon becoming aware of the
19existence of one or more erroneous homestead exemptions, the
20chief county assessment officer shall cause to be served, by
21both regular mail and certified mail, a notice of discovery as
22set forth in subsection (c-5). The chief county assessment
23officer in a county with 3,000,000 or more inhabitants may
24cause a lien to be recorded against property that (1) is
25located in the county and (2) received one or more erroneous
26homestead exemptions if, upon determination of the chief

 

 

HB3797- 4 -LRB102 04245 HLH 14263 b

1county assessment officer, the taxpayer received: (A) one or 2
2erroneous homestead exemptions for real property, including at
3least one erroneous homestead exemption granted for the
4property against which the lien is sought, during any of the 3
5collection years immediately prior to the current collection
6year in which the notice of discovery is served; or (B) 3 or
7more erroneous homestead exemptions for real property,
8including at least one erroneous homestead exemption granted
9for the property against which the lien is sought, during any
10of the 6 collection years immediately prior to the current
11collection year in which the notice of discovery is served.
12Prior to recording the lien against the property, the chief
13county assessment officer shall cause to be served, by both
14regular mail and certified mail, return receipt requested, on
15the person to whom the most recent tax bill was mailed and the
16owner of record, a notice of intent to record a lien against
17the property. The chief county assessment officer shall cause
18the notice of intent to record a lien to be served within 3
19years from the date on which the notice of discovery was
20served.
21    (c-5) The notice of discovery described in subsection (c)
22shall: (1) identify, by property index number, the property
23for which the chief county assessment officer has knowledge
24indicating the existence of an erroneous homestead exemption;
25(2) set forth the taxpayer's liability for principal,
26interest, penalties, and administrative costs including, but

 

 

HB3797- 5 -LRB102 04245 HLH 14263 b

1not limited to, recording fees described in subsection (f);
2(3) inform the taxpayer that he or she will be served with a
3notice of intent to record a lien within 3 years from the date
4of service of the notice of discovery; (4) inform the taxpayer
5that he or she may pay the outstanding amount, plus interest,
6penalties, and administrative costs at any time prior to being
7served with the notice of intent to record a lien or within 30
8days after the notice of intent to record a lien is served; and
9(5) inform the taxpayer that, if the taxpayer provided notice
10to the chief county assessment officer as provided in
11subsection (d-1) of Section 15-175 of this Code, upon
12submission by the taxpayer of evidence of timely notice and
13receipt thereof by the chief county assessment officer, the
14chief county assessment officer will withdraw the notice of
15discovery and reissue a notice of discovery in compliance with
16this Section in which the taxpayer is not liable for interest
17and penalties for the current tax year in which the notice was
18received.
19    For the purposes of this subsection (c-5):
20    "Collection year" means the year in which the first and
21second installment of the current tax year is billed.
22    "Current tax year" means the year prior to the collection
23year.
24    (d) The notice of intent to record a lien described in
25subsection (c) shall: (1) identify, by property index number,
26the property against which the lien is being sought; (2)

 

 

HB3797- 6 -LRB102 04245 HLH 14263 b

1identify each specific homestead exemption that was
2erroneously granted and the year or years in which each
3exemption was granted; (3) set forth the erroneous exemption
4principal amount due and the interest amount and any penalty
5and administrative costs due; (4) inform the taxpayer that he
6or she may request a hearing within 30 days after service and
7may appeal the hearing officer's ruling to the circuit court;
8(5) inform the taxpayer that he or she may pay the erroneous
9exemption principal amount, plus interest and penalties,
10within 30 days after service; and (6) inform the taxpayer
11that, if the lien is recorded against the property, the amount
12of the lien will be adjusted to include the applicable
13recording fee and that fees for recording a release of the lien
14shall be incurred by the taxpayer. A lien shall not be filed
15pursuant to this Section if the taxpayer pays the erroneous
16exemption principal amount, plus penalties and interest,
17within 30 days of service of the notice of intent to record a
18lien.
19    (e) The notice of intent to record a lien shall also
20include a form that the taxpayer may return to the chief county
21assessment officer to request a hearing. The taxpayer may
22request a hearing by returning the form within 30 days after
23service. The hearing shall be held within 90 days after the
24taxpayer is served. The chief county assessment officer shall
25promulgate rules of service and procedure for the hearing. The
26chief county assessment officer must generally follow rules of

 

 

HB3797- 7 -LRB102 04245 HLH 14263 b

1evidence and practices that prevail in the county circuit
2courts, but, because of the nature of these proceedings, the
3chief county assessment officer is not bound by those rules in
4all particulars. The chief county assessment officer shall
5appoint a hearing officer to oversee the hearing. The taxpayer
6shall be allowed to present evidence to the hearing officer at
7the hearing. After taking into consideration all the relevant
8testimony and evidence, the hearing officer shall make an
9administrative decision on whether the taxpayer was
10erroneously granted a homestead exemption for the taxable year
11in question. The taxpayer may appeal the hearing officer's
12ruling to the circuit court of the county where the property is
13located as a final administrative decision under the
14Administrative Review Law.
15    (f) A lien against the property imposed under this Section
16shall be filed with the county recorder of deeds, but may not
17be filed sooner than 60 days after the notice of intent to
18record a lien was delivered to the taxpayer if the taxpayer
19does not request a hearing, or until the conclusion of the
20hearing and all appeals if the taxpayer does request a
21hearing. If a lien is filed pursuant to this Section and the
22taxpayer received one or 2 erroneous homestead exemptions
23during any of the 3 collection years immediately prior to the
24current collection year in which the notice of discovery is
25served, then the erroneous exemption principal amount, plus
2610% interest per annum or portion thereof from the date the

 

 

HB3797- 8 -LRB102 04245 HLH 14263 b

1erroneous exemption principal amount would have become due if
2properly included in the tax bill, shall be charged against
3the property by the chief county assessment officer. However,
4if a lien is filed pursuant to this Section and the taxpayer
5received 3 or more erroneous homestead exemptions during any
6of the 6 collection years immediately prior to the current
7collection year in which the notice of discovery is served,
8the erroneous exemption principal amount, plus a penalty of
950% of the total amount of the erroneous exemption principal
10amount for that property and 10% interest per annum or portion
11thereof from the date the erroneous exemption principal amount
12would have become due if properly included in the tax bill,
13shall be charged against the property by the chief county
14assessment officer. If a lien is filed pursuant to this
15Section, the taxpayer shall not be liable for interest that
16accrues between the date the notice of discovery is served and
17the date the lien is filed. Before recording the lien with the
18county recorder of deeds, the chief county assessment officer
19shall adjust the amount of the lien to add administrative
20costs, including but not limited to the applicable recording
21fee, to the total lien amount.
22    (g) If a person received an erroneous homestead exemption
23under Section 15-170 and: (1) the person was the spouse,
24child, grandchild, brother, sister, niece, or nephew of the
25previous taxpayer; and (2) the person received the property by
26bequest or inheritance; then the person is not liable for the

 

 

HB3797- 9 -LRB102 04245 HLH 14263 b

1penalties imposed under this Section for any year or years
2during which the chief county assessment officer did not
3require an annual application for the exemption or, in a
4county with 3,000,000 or more inhabitants, an application for
5renewal of a multi-year exemption pursuant to subsection (i)
6of Section 15-170, as the case may be. However, that person is
7responsible for any interest owed under subsection (f).
8    (h) If the erroneous homestead exemption was granted as a
9result of a clerical error or omission on the part of the chief
10county assessment officer, and if the taxpayer has paid the
11tax bills as received for the year in which the error occurred,
12then the interest and penalties authorized by this Section
13with respect to that homestead exemption shall not be
14chargeable to the taxpayer. However, nothing in this Section
15shall prevent the collection of the erroneous exemption
16principal amount due and owing.
17    (i) A lien under this Section is not valid as to (1) any
18bona fide purchaser for value without notice of the erroneous
19homestead exemption whose rights in and to the underlying
20parcel arose after the erroneous homestead exemption was
21granted but before the filing of the notice of lien; or (2) any
22mortgagee, judgment creditor, or other lienor whose rights in
23and to the underlying parcel arose before the filing of the
24notice of lien. A title insurance policy for the property that
25is issued by a title company licensed to do business in the
26State showing that the property is free and clear of any liens

 

 

HB3797- 10 -LRB102 04245 HLH 14263 b

1imposed under this Section shall be prima facie evidence that
2the taxpayer is without notice of the erroneous homestead
3exemption. Nothing in this Section shall be deemed to impair
4the rights of subsequent creditors and subsequent purchasers
5under Section 30 of the Conveyances Act.
6    (j) When a lien is filed against the property pursuant to
7this Section, the chief county assessment officer shall mail a
8copy of the lien to the person to whom the most recent tax bill
9was mailed and to the owner of record, and the outstanding
10liability created by such a lien is due and payable within 30
11days after the mailing of the lien by the chief county
12assessment officer. This liability is deemed delinquent and
13shall bear interest beginning on the day after the due date at
14a rate of 1.5% per month or portion thereof. Payment shall be
15made to the county treasurer. Upon receipt of the full amount
16due, as determined by the chief county assessment officer, the
17county treasurer shall distribute the amount paid as provided
18in subsection (k). Upon presentment by the taxpayer to the
19chief county assessment officer of proof of payment of the
20total liability, the chief county assessment officer shall
21provide in reasonable form a release of the lien. The release
22of the lien provided shall clearly inform the taxpayer that it
23is the responsibility of the taxpayer to record the lien
24release form with the county recorder of deeds and to pay any
25applicable recording fees.
26    (k) The county treasurer shall pay collected erroneous

 

 

HB3797- 11 -LRB102 04245 HLH 14263 b

1exemption principal amounts, pro rata, to the taxing
2districts, or their legal successors, that levied upon the
3subject property in the taxable year or years for which the
4erroneous homestead exemptions were granted, except as set
5forth in this Section. The county treasurer shall deposit
6collected penalties and interest into a special fund
7established by the county treasurer to offset the costs of
8administration of the provisions of this Section by the chief
9county assessment officer's office, as appropriated by the
10county board. If the costs of administration of this Section
11exceed the amount of interest and penalties collected in the
12special fund, the chief county assessor shall be reimbursed by
13each taxing district or their legal successors for those
14costs. Such costs shall be paid out of the funds collected by
15the county treasurer on behalf of each taxing district
16pursuant to this Section.
17    (l) The chief county assessment officer in a county with
183,000,000 or more inhabitants shall establish an amnesty
19period for all taxpayers owing any tax due to an erroneous
20homestead exemption granted in a tax year prior to the 2013 tax
21year. The amnesty period shall begin on the effective date of
22this amendatory Act of the 98th General Assembly and shall run
23through December 31, 2013. If, during the amnesty period, the
24taxpayer pays the entire arrearage of taxes due for tax years
25prior to 2013, the county clerk shall abate and not seek to
26collect any interest or penalties that may be applicable and

 

 

HB3797- 12 -LRB102 04245 HLH 14263 b

1shall not seek civil or criminal prosecution for any taxpayer
2for tax years prior to 2013. Failure to pay all such taxes due
3during the amnesty period established under this Section shall
4invalidate the amnesty period for that taxpayer.
5    The chief county assessment officer in a county with
63,000,000 or more inhabitants shall (i) mail notice of the
7amnesty period with the tax bills for the second installment
8of taxes for the 2012 assessment year and (ii) as soon as
9possible after the effective date of this amendatory Act of
10the 98th General Assembly, publish notice of the amnesty
11period in a newspaper of general circulation in the county.
12Notices shall include information on the amnesty period, its
13purpose, and the method by which to make payment.
14    Taxpayers who are a party to any criminal investigation or
15to any civil or criminal litigation that is pending in any
16circuit court or appellate court, or in the Supreme Court of
17this State, for nonpayment, delinquency, or fraud in relation
18to any property tax imposed by any taxing district located in
19the State on the effective date of this amendatory Act of the
2098th General Assembly may not take advantage of the amnesty
21period.
22    A taxpayer who has claimed 3 or more homestead exemptions
23in error shall not be eligible for the amnesty period
24established under this subsection.
25    (m) Notwithstanding any other provision of law, for
26taxable years 2019 through 2023, in counties with 3,000,000 or

 

 

HB3797- 13 -LRB102 04245 HLH 14263 b

1more inhabitants, the chief county assessment officer shall,
2if he or she learns that a taxpayer who has been granted a
3senior citizens homestead exemption has died during the period
4to which the exemption applies, send a notice to the address on
5record for the owner of record of the property notifying the
6owner that the exemption will be terminated unless, within 90
7days after the notice is sent, the chief county assessment
8officer is provided with a basis to continue the exemption.
9The notice shall be sent by first-class mail, in an envelope
10that bears on its front, in boldface red lettering that is at
11least one inch in size, the words "Notice of Exemption
12Termination"; however, if the taxpayer elects to receive the
13notice by email and provides an email address, then the notice
14shall be sent by email.
15(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20.)
 
16    (35 ILCS 200/15-10)
17    Sec. 15-10. Exempt property; procedures for certification.
18    (a) All property granted an exemption by the Department
19pursuant to the requirements of Section 15-5 and described in
20the Sections following Section 15-30 and preceding Section
2116-5, to the extent therein limited, is exempt from taxation.
22In order to maintain that exempt status, the titleholder or
23the owner of the beneficial interest of any property that is
24exempt must file with the chief county assessment officer, on
25or before January 31 of each year (May 31 in the case of

 

 

HB3797- 14 -LRB102 04245 HLH 14263 b

1property exempted by Section 15-170), an affidavit stating
2whether there has been any change in the ownership or use of
3the property, the status of the owner-resident, the
4satisfaction by a relevant hospital entity of the condition
5for an exemption under Section 15-86, or that a veteran with a
6disability who qualifies under Section 15-165 owned and used
7the property as of January 1 of that year. The nature of any
8change shall be stated in the affidavit. Failure to file an
9affidavit shall, in the discretion of the assessment officer,
10constitute cause to terminate the exemption of that property,
11notwithstanding any other provision of this Code. Owners of 5
12or more such exempt parcels within a county may file a single
13annual affidavit in lieu of an affidavit for each parcel. The
14assessment officer, upon request, shall furnish an affidavit
15form to the owners, in which the owner may state whether there
16has been any change in the ownership or use of the property or
17status of the owner or resident as of January 1 of that year.
18The owner of 5 or more exempt parcels shall list all the
19properties giving the same information for each parcel as
20required of owners who file individual affidavits.
21    (b) However, titleholders or owners of the beneficial
22interest in any property exempted under any of the following
23provisions are not required to submit an annual filing under
24this Section:
25        (1) Section 15-45 (burial grounds) in counties of less
26    than 3,000,000 inhabitants and owned by a not-for-profit

 

 

HB3797- 15 -LRB102 04245 HLH 14263 b

1    organization.
2        (2) Section 15-40.
3        (3) Section 15-50 (United States property).
4    (c) If there is a change in use or ownership, however,
5notice must be filed pursuant to Section 15-20.
6    (d) An application for homestead exemptions shall be filed
7as provided in Section 15-170 (senior citizens homestead
8exemption), Section 15-172 (senior citizens assessment freeze
9homestead exemption), and Sections 15-175 (general homestead
10exemption), 15-176 (general alternative homestead exemption),
11and 15-177 (long-time occupant homestead exemption),
12respectively.
13    (e) For purposes of determining satisfaction of the
14condition for an exemption under Section 15-86:
15        (1) The "year for which exemption is sought" is the
16    year prior to the year in which the affidavit is due.
17        (2) The "hospital year" is the fiscal year of the
18    relevant hospital entity, or the fiscal year of one of the
19    hospitals in the hospital system if the relevant hospital
20    entity is a hospital system with members with different
21    fiscal years, that ends in the year prior to the year in
22    which the affidavit is due. However, if that fiscal year
23    ends 3 months or less before the date on which the
24    affidavit is due, the relevant hospital entity shall file
25    an interim affidavit based on the currently available
26    information, and shall file a supplemental affidavit

 

 

HB3797- 16 -LRB102 04245 HLH 14263 b

1    within 90 days of date on which the application was due, if
2    the information in the relevant hospital entity's audited
3    financial statements changes the interim affidavit's
4    statement concerning the entity's compliance with the
5    calculation required by Section 15-86.
6        (3) The affidavit shall be accompanied by an exhibit
7    prepared by the relevant hospital entity showing (A) the
8    value of the relevant hospital entity's services and
9    activities, if any, under items (1) through (7) of
10    subsection (e) of Section 15-86, stated separately for
11    each item, and (B) the value relating to the relevant
12    hospital entity's estimated property tax liability under
13    paragraphs (A), (B), and (C) of item (1) of subsection (g)
14    of Section 15-86; under paragraphs (A), (B), and (C) of
15    item (2) of subsection (g) of Section 15-86; and under
16    item (3) of subsection (g) of Section 15-86.
17(Source: P.A. 99-143, eff. 7-27-15.)
 
18    (35 ILCS 200/15-172)
19    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
20Exemption.
21    (a) This Section may be cited as the Senior Citizens
22Assessment Freeze Homestead Exemption.
23    (b) As used in this Section:
24    "Applicant" means an individual who has filed an
25application under this Section.

 

 

HB3797- 17 -LRB102 04245 HLH 14263 b

1    "Base amount" means the base year equalized assessed value
2of the residence plus the first year's equalized assessed
3value of any added improvements which increased the assessed
4value of the residence after the base year.
5    "Base year" means the taxable year prior to the taxable
6year for which the applicant first qualifies and applies for
7the exemption provided that in the prior taxable year the
8property was improved with a permanent structure that was
9occupied as a residence by the applicant who was liable for
10paying real property taxes on the property and who was either
11(i) an owner of record of the property or had legal or
12equitable interest in the property as evidenced by a written
13instrument or (ii) had a legal or equitable interest as a
14lessee in the parcel of property that was single family
15residence. If in any subsequent taxable year for which the
16applicant applies and qualifies for the exemption the
17equalized assessed value of the residence is less than the
18equalized assessed value in the existing base year (provided
19that such equalized assessed value is not based on an assessed
20value that results from a temporary irregularity in the
21property that reduces the assessed value for one or more
22taxable years), then that subsequent taxable year shall become
23the base year until a new base year is established under the
24terms of this paragraph. For taxable year 1999 only, the Chief
25County Assessment Officer shall review (i) all taxable years
26for which the applicant applied and qualified for the

 

 

HB3797- 18 -LRB102 04245 HLH 14263 b

1exemption and (ii) the existing base year. The assessment
2officer shall select as the new base year the year with the
3lowest equalized assessed value. An equalized assessed value
4that is based on an assessed value that results from a
5temporary irregularity in the property that reduces the
6assessed value for one or more taxable years shall not be
7considered the lowest equalized assessed value. The selected
8year shall be the base year for taxable year 1999 and
9thereafter until a new base year is established under the
10terms of this paragraph.
11    "Chief County Assessment Officer" means the County
12Assessor or Supervisor of Assessments of the county in which
13the property is located.
14    "Equalized assessed value" means the assessed value as
15equalized by the Illinois Department of Revenue.
16    "Household" means the applicant, the spouse of the
17applicant, and all persons using the residence of the
18applicant as their principal place of residence.
19    "Household income" means the combined income of the
20members of a household for the calendar year preceding the
21taxable year.
22    "Income" has the same meaning as provided in Section 3.07
23of the Senior Citizens and Persons with Disabilities Property
24Tax Relief Act, except that, beginning in assessment year
252001, "income" does not include veteran's benefits.
26    "Internal Revenue Code of 1986" means the United States

 

 

HB3797- 19 -LRB102 04245 HLH 14263 b

1Internal Revenue Code of 1986 or any successor law or laws
2relating to federal income taxes in effect for the year
3preceding the taxable year.
4    "Life care facility that qualifies as a cooperative" means
5a facility as defined in Section 2 of the Life Care Facilities
6Act.
7    "Maximum income limitation" means:
8        (1) $35,000 prior to taxable year 1999;
9        (2) $40,000 in taxable years 1999 through 2003;
10        (3) $45,000 in taxable years 2004 through 2005;
11        (4) $50,000 in taxable years 2006 and 2007;
12        (5) $55,000 in taxable years 2008 through 2016;
13        (6) for taxable year 2017, (i) $65,000 for qualified
14    property located in a county with 3,000,000 or more
15    inhabitants and (ii) $55,000 for qualified property
16    located in a county with fewer than 3,000,000 inhabitants;
17    and
18        (7) for taxable years 2018 and thereafter, $65,000 for
19    all qualified property.
20    "Residence" means the principal dwelling place and
21appurtenant structures used for residential purposes in this
22State occupied on January 1 of the taxable year by a household
23and so much of the surrounding land, constituting the parcel
24upon which the dwelling place is situated, as is used for
25residential purposes. If the Chief County Assessment Officer
26has established a specific legal description for a portion of

 

 

HB3797- 20 -LRB102 04245 HLH 14263 b

1property constituting the residence, then that portion of
2property shall be deemed the residence for the purposes of
3this Section.
4    "Taxable year" means the calendar year during which ad
5valorem property taxes payable in the next succeeding year are
6levied.
7    (c) Beginning in taxable year 1994, a senior citizens
8assessment freeze homestead exemption is granted for real
9property that is improved with a permanent structure that is
10occupied as a residence by an applicant who (i) is 65 years of
11age or older during the taxable year, (ii) has a household
12income that does not exceed the maximum income limitation,
13(iii) is liable for paying real property taxes on the
14property, and (iv) is an owner of record of the property or has
15a legal or equitable interest in the property as evidenced by a
16written instrument. This homestead exemption shall also apply
17to a leasehold interest in a parcel of property improved with a
18permanent structure that is a single family residence that is
19occupied as a residence by a person who (i) is 65 years of age
20or older during the taxable year, (ii) has a household income
21that does not exceed the maximum income limitation, (iii) has
22a legal or equitable ownership interest in the property as
23lessee, and (iv) is liable for the payment of real property
24taxes on that property.
25    Beginning in taxable year 2021, an assessment freeze
26homestead exemption is granted for real property that is

 

 

HB3797- 21 -LRB102 04245 HLH 14263 b

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

 

 

HB3797- 22 -LRB102 04245 HLH 14263 b

1for taxable year 2006, the amount of the exemption is as
2follows:
3        (1) For an applicant who has a household income of
4    $45,000 or less, the amount of the exemption is the
5    equalized assessed value of the residence in the taxable
6    year for which application is made minus the base amount.
7        (2) For an applicant who has a household income
8    exceeding $45,000 but not exceeding $46,250, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is
11    made minus the base amount (ii) multiplied by 0.8.
12        (3) For an applicant who has a household income
13    exceeding $46,250 but not exceeding $47,500, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is
16    made minus the base amount (ii) multiplied by 0.6.
17        (4) For an applicant who has a household income
18    exceeding $47,500 but not exceeding $48,750, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is
21    made minus the base amount (ii) multiplied by 0.4.
22        (5) For an applicant who has a household income
23    exceeding $48,750 but not exceeding $50,000, the amount of
24    the exemption is (i) the equalized assessed value of the
25    residence in the taxable year for which application is
26    made minus the base amount (ii) multiplied by 0.2.

 

 

HB3797- 23 -LRB102 04245 HLH 14263 b

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

 

 

HB3797- 24 -LRB102 04245 HLH 14263 b

1resulting from that exemption only to the apportioned tax
2liability of the owner who qualified for the exemption. Any
3person who willfully refuses to credit that savings to an
4owner who qualifies for the exemption is guilty of a Class B
5misdemeanor.
6    When a homestead exemption has been granted under this
7Section and an applicant then becomes a resident of a facility
8licensed under the Assisted Living and Shared Housing Act, the
9Nursing Home Care Act, the Specialized Mental Health
10Rehabilitation Act of 2013, the ID/DD Community Care Act, or
11the MC/DD Act, the exemption shall be granted in subsequent
12years so long as the residence (i) continues to be occupied by
13the qualified applicant's spouse or (ii) if remaining
14unoccupied, is still owned by the qualified applicant for the
15homestead exemption.
16    Beginning January 1, 1997, when an individual dies who
17would have qualified for an exemption under this Section, and
18the surviving spouse does not independently qualify for this
19exemption because of age, the exemption under this Section
20shall be granted to the surviving spouse for the taxable year
21preceding and the taxable year of the death, provided that,
22except for age, the surviving spouse meets all other
23qualifications for the granting of this exemption for those
24years.
25    When married persons maintain separate residences, the
26exemption provided for in this Section may be claimed by only

 

 

HB3797- 25 -LRB102 04245 HLH 14263 b

1one of such persons and for only one residence.
2    For taxable year 1994 only, in counties having less than
33,000,000 inhabitants, to receive the exemption, a person
4shall submit an application by February 15, 1995 to the Chief
5County Assessment Officer of the county in which the property
6is located. In counties having 3,000,000 or more inhabitants,
7for taxable year 1994 and all subsequent taxable years, to
8receive the exemption, a person may submit an application to
9the Chief County Assessment Officer of the county in which the
10property is located during such period as may be specified by
11the Chief County Assessment Officer. The Chief County
12Assessment Officer in counties of 3,000,000 or more
13inhabitants shall annually give notice of the application
14period by mail or by publication. In counties having less than
153,000,000 inhabitants, beginning with taxable year 1995 and
16thereafter, to receive the exemption, a person shall submit an
17application by July 1 of each taxable year to the Chief County
18Assessment Officer of the county in which the property is
19located. A county may, by ordinance, establish a date for
20submission of applications that is different than July 1. The
21applicant shall submit with the application an affidavit of
22the applicant's total household income, age, marital status
23(and if married the name and address of the applicant's
24spouse, if known), and principal dwelling place of members of
25the household on January 1 of the taxable year. The Department
26shall establish, by rule, a method for verifying the accuracy

 

 

HB3797- 26 -LRB102 04245 HLH 14263 b

1of affidavits filed by applicants under this Section, and the
2Chief County Assessment Officer may conduct audits of any
3taxpayer claiming an exemption under this Section to verify
4that the taxpayer is eligible to receive the exemption. Each
5application shall contain or be verified by a written
6declaration that it is made under the penalties of perjury. A
7taxpayer's signing a fraudulent application under this Act is
8perjury, as defined in Section 32-2 of the Criminal Code of
92012. The applications shall be clearly marked as applications
10for the Senior Citizens Assessment Freeze Homestead Exemption
11and must contain a notice that any taxpayer who receives the
12exemption is subject to an audit by the Chief County
13Assessment Officer.
14    Notwithstanding any other provision to the contrary, in
15counties having fewer than 3,000,000 inhabitants, if an
16applicant fails to file the application required by this
17Section in a timely manner and this failure to file is due to a
18mental or physical condition sufficiently severe so as to
19render the applicant incapable of filing the application in a
20timely manner, the Chief County Assessment Officer may extend
21the filing deadline for a period of 30 days after the applicant
22regains the capability to file the application, but in no case
23may the filing deadline be extended beyond 3 months of the
24original filing deadline. In order to receive the extension
25provided in this paragraph, the applicant shall provide the
26Chief County Assessment Officer with a signed statement from

 

 

HB3797- 27 -LRB102 04245 HLH 14263 b

1the applicant's physician, advanced practice registered nurse,
2or physician assistant stating the nature and extent of the
3condition, that, in the physician's, advanced practice
4registered nurse's, or physician assistant's opinion, the
5condition was so severe that it rendered the applicant
6incapable of filing the application in a timely manner, and
7the date on which the applicant regained the capability to
8file the application.
9    Beginning January 1, 1998, notwithstanding any other
10provision to the contrary, in counties having fewer than
113,000,000 inhabitants, if an applicant fails to file the
12application required by this Section in a timely manner and
13this failure to file is due to a mental or physical condition
14sufficiently severe so as to render the applicant incapable of
15filing the application in a timely manner, the Chief County
16Assessment Officer may extend the filing deadline for a period
17of 3 months. In order to receive the extension provided in this
18paragraph, the applicant shall provide the Chief County
19Assessment Officer with a signed statement from the
20applicant's physician, advanced practice registered nurse, or
21physician assistant stating the nature and extent of the
22condition, and that, in the physician's, advanced practice
23registered nurse's, or physician assistant's opinion, the
24condition was so severe that it rendered the applicant
25incapable of filing the application in a timely manner.
26    In counties having less than 3,000,000 inhabitants, if an

 

 

HB3797- 28 -LRB102 04245 HLH 14263 b

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

 

 

HB3797- 29 -LRB102 04245 HLH 14263 b

1may request reasonable proof that the management firm has so
2credited that exemption.
3    Except as provided in this Section, all information
4received by the chief county assessment officer or the
5Department from applications filed under this Section, or from
6any investigation conducted under the provisions of this
7Section, shall be confidential, except for official purposes
8or pursuant to official procedures for collection of any State
9or local tax or enforcement of any civil or criminal penalty or
10sanction imposed by this Act or by any statute or ordinance
11imposing a State or local tax. Any person who divulges any such
12information in any manner, except in accordance with a proper
13judicial order, is guilty of a Class A misdemeanor.
14    Nothing contained in this Section shall prevent the
15Director or chief county assessment officer from publishing or
16making available reasonable statistics concerning the
17operation of the exemption contained in this Section in which
18the contents of claims are grouped into aggregates in such a
19way that information contained in any individual claim shall
20not be disclosed.
21    Notwithstanding any other provision of law, for taxable
22year 2017 and thereafter, in counties of 3,000,000 or more
23inhabitants, the amount of the exemption shall be the greater
24of (i) the amount of the exemption otherwise calculated under
25this Section or (ii) $2,000.
26    (c-5) Notwithstanding any other provision of law, each

 

 

HB3797- 30 -LRB102 04245 HLH 14263 b

1chief county assessment officer may approve this exemption for
2the 2020 taxable year, without application, for any property
3that was approved for this exemption for the 2019 taxable
4year, provided that:
5        (1) the county board has declared a local disaster as
6    provided in the Illinois Emergency Management Agency Act
7    related to the COVID-19 public health emergency;
8        (2) the owner of record of the property as of January
9    1, 2020 is the same as the owner of record of the property
10    as of January 1, 2019;
11        (3) the exemption for the 2019 taxable year has not
12    been determined to be an erroneous exemption as defined by
13    this Code; and
14        (4) the applicant for the 2019 taxable year has not
15    asked for the exemption to be removed for the 2019 or 2020
16    taxable years.
17    Nothing in this subsection shall preclude or impair the
18authority of a chief county assessment officer to conduct
19audits of any taxpayer claiming an exemption under this
20Section to verify that the taxpayer is eligible to receive the
21exemption as provided elsewhere in this Section.
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

 

 

HB3797- 31 -LRB102 04245 HLH 14263 b

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
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 100-401, eff. 8-25-17; 100-513, eff. 1-1-18;
8100-863, eff. 8-14-18; 101-635, eff. 6-5-20.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.