103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2030

 

Introduced 2/9/2023, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172
320 ILCS 30/2  from Ch. 67 1/2, par. 452

    Amends the Property Tax Code. Provides that, for taxable year 2023, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption is (i) $75,000 for qualified property in a county with 3,000,000 or more inhabitants and (ii) $65,000 for qualified property located in a county with fewer than 3,000,000 inhabitants. Provides that, for taxable years 2024 and thereafter, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption is $75,000 for all qualified property. Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the maximum household income under the Act is $75,000 for tax years 2023 and thereafter. Effective immediately.


LRB103 26395 HLH 52758 b

 

 

A BILL FOR

 

SB2030LRB103 26395 HLH 52758 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. Low-Income Senior Citizens Assessment Freeze
8Homestead Exemption.
9    (a) This Section may be cited as the Low-Income Senior
10Citizens Assessment 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
16value of any added improvements which increased the assessed
17value of the 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
7equalized assessed value of the residence is less than the
8equalized assessed value in the existing base year (provided
9that such equalized assessed value is not based on an assessed
10value that results from a temporary irregularity in the
11property that reduces the assessed value for one or more
12taxable years), then that subsequent taxable year shall become
13the base year until a new base year is established under the
14terms of this paragraph. For taxable year 1999 only, the Chief
15County Assessment Officer shall review (i) all taxable years
16for which the applicant applied and qualified for the
17exemption and (ii) the existing base year. The assessment
18officer shall select as the new base year the year with the
19lowest equalized assessed value. An equalized assessed value
20that is based on an assessed value that results from a
21temporary irregularity in the property that reduces the
22assessed value for one or more taxable years shall not be
23considered the lowest equalized assessed value. The selected
24year shall be the base year for taxable year 1999 and
25thereafter until a new base year is established under the
26terms of this paragraph.

 

 

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1    "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4    "Equalized assessed value" means the assessed value as
5equalized by the Illinois Department of Revenue.
6    "Household" means the applicant, the spouse of the
7applicant, and all persons using the residence of the
8applicant as their principal place of residence.
9    "Household income" means the combined income of the
10members of a household for the calendar year preceding the
11taxable year.
12    "Income" has the same meaning as provided in Section 3.07
13of the Senior Citizens and Persons with Disabilities Property
14Tax Relief Act, except that, beginning in assessment year
152001, "income" does not include veteran's benefits.
16    "Internal Revenue Code of 1986" means the United States
17Internal Revenue Code of 1986 or any successor law or laws
18relating to federal income taxes in effect for the year
19preceding the taxable year.
20    "Life care facility that qualifies as a cooperative" means
21a facility as defined in Section 2 of the Life Care Facilities
22Act.
23    "Maximum income limitation" means:
24        (1) $35,000 prior to taxable year 1999;
25        (2) $40,000 in taxable years 1999 through 2003;
26        (3) $45,000 in taxable years 2004 through 2005;

 

 

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1        (4) $50,000 in taxable years 2006 and 2007;
2        (5) $55,000 in taxable years 2008 through 2016;
3        (6) for taxable year 2017, (i) $65,000 for qualified
4    property located in a county with 3,000,000 or more
5    inhabitants and (ii) $55,000 for qualified property
6    located in a county with fewer than 3,000,000 inhabitants;
7    and
8        (7) for taxable years 2018 through 2022 and
9    thereafter, $65,000 for all qualified property; .
10        (8) for taxable year 2023, (i) $75,000 for qualified
11    property in a county with 3,000,000 or more inhabitants
12    and (ii) $65,000 for qualified property located in a
13    county with fewer than 3,000,000 inhabitants; and
14        (9) for taxable years 2024 and thereafter, $75,000 for
15    all qualified property.
16    As an alternative income valuation, a homeowner who is
17enrolled in any of the following programs may be presumed to
18have household income that does not exceed the maximum income
19limitation for that tax year as required by this Section: Aid
20to the Aged, Blind or Disabled (AABD) Program or the
21Supplemental Nutrition Assistance Program (SNAP), both of
22which are administered by the Department of Human Services;
23the Low Income Home Energy Assistance Program (LIHEAP), which
24is administered by the Department of Commerce and Economic
25Opportunity; The Benefit Access program, which is administered
26by the Department on Aging; and the Senior Citizens Real

 

 

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1Estate Tax Deferral Program.
2    A chief county assessment officer may indicate that he or
3she has verified an applicant's income eligibility for this
4exemption but may not report which program or programs, if
5any, enroll the applicant. Release of personal information
6submitted pursuant to this Section shall be deemed an
7unwarranted invasion of personal privacy under the Freedom of
8Information Act.
9    "Residence" means the principal dwelling place and
10appurtenant structures used for residential purposes in this
11State occupied on January 1 of the taxable year by a household
12and so much of the surrounding land, constituting the parcel
13upon which the dwelling place is situated, as is used for
14residential purposes. If the Chief County Assessment Officer
15has established a specific legal description for a portion of
16property constituting the residence, then that portion of
17property shall be deemed the residence for the purposes of
18this Section.
19    "Taxable year" means the calendar year during which ad
20valorem property taxes payable in the next succeeding year are
21levied.
22    (c) Beginning in taxable year 1994, a low-income senior
23citizens assessment freeze homestead exemption is granted for
24real property that is improved with a permanent structure that
25is occupied as a residence by an applicant who (i) is 65 years
26of age or older during the taxable year, (ii) has a household

 

 

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1income that does not exceed the maximum income limitation,
2(iii) is liable for paying real property taxes on the
3property, and (iv) is an owner of record of the property or has
4a legal or equitable interest in the property as evidenced by a
5written instrument. This homestead exemption shall also apply
6to a leasehold interest in a parcel of property improved with a
7permanent structure that is a single family residence that is
8occupied as a residence by a person who (i) is 65 years of age
9or older during the taxable year, (ii) has a household income
10that does not exceed the maximum income limitation, (iii) has
11a legal or equitable ownership interest in the property as
12lessee, and (iv) is liable for the payment of real property
13taxes on that property.
14    In counties of 3,000,000 or more inhabitants, the amount
15of the exemption for all taxable years is the equalized
16assessed value of the residence in the taxable year for which
17application is made minus the base amount. In all other
18counties, the amount of the exemption is as follows: (i)
19through taxable year 2005 and for taxable year 2007 and
20thereafter, the amount of this exemption shall be the
21equalized assessed value of the residence in the taxable year
22for which application is made minus the base amount; and (ii)
23for taxable year 2006, the amount of the exemption is as
24follows:
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
7    made 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
12    made 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
17    made 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
22    made 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
3to the County Clerk, the Board of Review or Board of Appeals
4shall give 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
11maximum reduction from the equalized assessed value of the
12property is limited to the sum of the reductions calculated
13for each unit occupied as a residence by a person or persons
14(i) 65 years of age or older, (ii) with a household income that
15does not exceed the maximum income limitation, (iii) who is
16liable, by contract with the owner or owners of record, for
17paying real property taxes on the property, and (iv) who is an
18owner of record of a legal or equitable interest in the
19cooperative apartment building, other than a leasehold
20interest. In the instance of a cooperative where a homestead
21exemption has been granted under this Section, the cooperative
22association or its management firm shall credit the savings
23resulting from that exemption only to the apportioned tax
24liability of the owner who qualified for the exemption. Any
25person who willfully refuses to credit that savings to an
26owner who qualifies for the exemption is guilty of a Class B

 

 

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1misdemeanor.
2    When a homestead exemption has been granted under this
3Section and an applicant then becomes a resident of a facility
4licensed under the Assisted Living and Shared Housing Act, the
5Nursing Home Care Act, the Specialized Mental Health
6Rehabilitation Act of 2013, the ID/DD Community Care Act, or
7the MC/DD Act, the exemption shall be granted in subsequent
8years so long as the residence (i) continues to be occupied by
9the qualified applicant's spouse or (ii) if remaining
10unoccupied, is still owned by the qualified applicant for the
11homestead exemption.
12    Beginning January 1, 1997, when an individual dies who
13would have qualified for an exemption under this Section, and
14the surviving spouse does not independently qualify for this
15exemption because of age, the exemption under this Section
16shall be granted to the surviving spouse for the taxable year
17preceding and the taxable year of the death, provided that,
18except for age, the surviving spouse meets all other
19qualifications for the granting of this exemption for those
20years.
21    When married persons maintain separate residences, the
22exemption provided for in this Section may be claimed by only
23one of such persons and for only one residence.
24    For taxable year 1994 only, in counties having less than
253,000,000 inhabitants, to receive the exemption, a person
26shall submit an application by February 15, 1995 to the Chief

 

 

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1County Assessment Officer of the county in which the property
2is located. In counties having 3,000,000 or more inhabitants,
3for taxable year 1994 and all subsequent taxable years, to
4receive the exemption, a person may submit an application to
5the Chief County Assessment Officer of the county in which the
6property is located during such period as may be specified by
7the Chief County Assessment Officer. The Chief County
8Assessment Officer in counties of 3,000,000 or more
9inhabitants shall annually give notice of the application
10period by mail or by publication. In counties having less than
113,000,000 inhabitants, beginning with taxable year 1995 and
12thereafter, to receive the exemption, a person shall submit an
13application by July 1 of each taxable year to the Chief County
14Assessment Officer of the county in which the property is
15located. A county may, by ordinance, establish a date for
16submission of applications that is different than July 1. The
17applicant shall submit with the application an affidavit of
18the applicant's total household income, age, marital status
19(and if married the name and address of the applicant's
20spouse, if known), and principal dwelling place of members of
21the household on January 1 of the taxable year. The Department
22shall establish, by rule, a method for verifying the accuracy
23of affidavits filed by applicants under this Section, and the
24Chief County Assessment Officer may conduct audits of any
25taxpayer claiming an exemption under this Section to verify
26that the taxpayer is eligible to receive the exemption. Each

 

 

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1application shall contain or be verified by a written
2declaration that it is made under the penalties of perjury. A
3taxpayer's signing a fraudulent application under this Act is
4perjury, as defined in Section 32-2 of the Criminal Code of
52012. The applications shall be clearly marked as applications
6for the Low-Income Senior Citizens Assessment Freeze Homestead
7Exemption and must contain a notice that any taxpayer who
8receives the exemption is subject to an audit by the Chief
9County Assessment Officer.
10    Notwithstanding any other provision to the contrary, in
11counties having fewer than 3,000,000 inhabitants, if an
12applicant fails to file the application required by this
13Section in a timely manner and this failure to file is due to a
14mental or physical condition sufficiently severe so as to
15render the applicant incapable of filing the application in a
16timely manner, the Chief County Assessment Officer may extend
17the filing deadline for a period of 30 days after the applicant
18regains the capability to file the application, but in no case
19may the filing deadline be extended beyond 3 months of the
20original filing deadline. In order to receive the extension
21provided in this paragraph, the applicant shall provide the
22Chief County Assessment Officer with a signed statement from
23the applicant's physician, advanced practice registered nurse,
24or physician assistant stating the nature and extent of the
25condition, that, in the physician's, advanced practice
26registered nurse's, or physician assistant's opinion, the

 

 

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1condition was so severe that it rendered the applicant
2incapable of filing the application in a timely manner, and
3the date on which the applicant regained the capability to
4file the application.
5    Beginning January 1, 1998, notwithstanding any other
6provision to the contrary, in counties having fewer than
73,000,000 inhabitants, if an applicant fails to file the
8application required by this Section in a timely manner and
9this failure to file is due to a mental or physical condition
10sufficiently severe so as to render the applicant incapable of
11filing the application in a timely manner, the Chief County
12Assessment Officer may extend the filing deadline for a period
13of 3 months. In order to receive the extension provided in this
14paragraph, the applicant shall provide the Chief County
15Assessment Officer with a signed statement from the
16applicant's physician, advanced practice registered nurse, or
17physician assistant stating the nature and extent of the
18condition, and 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.
22    In counties having less than 3,000,000 inhabitants, if an
23applicant was denied an exemption in taxable year 1994 and the
24denial occurred due to an error on the part of an assessment
25official, or his or her agent or employee, then beginning in
26taxable year 1997 the applicant's base year, for purposes of

 

 

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

 

 

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1Department from applications filed under this Section, or from
2any investigation conducted under the provisions of this
3Section, shall be confidential, except for official purposes
4or pursuant to official procedures for collection of any State
5or local tax or enforcement of any civil or criminal penalty or
6sanction imposed by this Act or by any statute or ordinance
7imposing a State or local tax. Any person who divulges any such
8information in any manner, except in accordance with a proper
9judicial order, is guilty of a Class A misdemeanor.
10    Nothing contained in this Section shall prevent the
11Director or chief county assessment officer from publishing or
12making available reasonable statistics concerning the
13operation of the exemption contained in this Section in which
14the contents of claims are grouped into aggregates in such a
15way that information contained in any individual claim shall
16not be disclosed.
17    Notwithstanding any other provision of law, for taxable
18year 2017 and thereafter, in counties of 3,000,000 or more
19inhabitants, the amount of the exemption shall be the greater
20of (i) the amount of the exemption otherwise calculated under
21this Section or (ii) $2,000.
22    (c-5) Notwithstanding any other provision of law, each
23chief county assessment officer may approve this exemption for
24the 2020 taxable year, without application, for any property
25that was approved for this exemption for the 2019 taxable
26year, provided that:

 

 

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1        (1) the county board has declared a local disaster as
2    provided in the Illinois Emergency Management Agency Act
3    related to the COVID-19 public health emergency;
4        (2) the owner of record of the property as of January
5    1, 2020 is the same as the owner of record of the property
6    as of January 1, 2019;
7        (3) the exemption for the 2019 taxable year has not
8    been determined to be an erroneous exemption as defined by
9    this Code; and
10        (4) the applicant for the 2019 taxable year has not
11    asked for the exemption to be removed for the 2019 or 2020
12    taxable years.
13    Nothing in this subsection shall preclude or impair the
14authority of a chief county assessment officer to conduct
15audits of any taxpayer claiming an exemption under this
16Section to verify that the taxpayer is eligible to receive the
17exemption as provided elsewhere in this Section.
18    (c-10) Notwithstanding any other provision of law, each
19chief county assessment officer may approve this exemption for
20the 2021 taxable year, without application, for any property
21that was approved for this exemption for the 2020 taxable
22year, if:
23        (1) the county board has declared a local disaster as
24    provided in the Illinois Emergency Management Agency Act
25    related to the COVID-19 public health emergency;
26        (2) the owner of record of the property as of January

 

 

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1    1, 2021 is the same as the owner of record of the property
2    as of January 1, 2020;
3        (3) the exemption for the 2020 taxable year has not
4    been determined to be an erroneous exemption as defined by
5    this Code; and
6        (4) the taxpayer for the 2020 taxable year has not
7    asked for the exemption to be removed for the 2020 or 2021
8    taxable years.
9    Nothing in this subsection shall preclude or impair the
10authority of a chief county assessment officer to conduct
11audits of any taxpayer claiming an exemption under this
12Section to verify that the taxpayer is eligible to receive the
13exemption as provided elsewhere in this Section.
14    (d) Each Chief County Assessment Officer shall annually
15publish a notice of availability of the exemption provided
16under this Section. The notice shall be published at least 60
17days but no more than 75 days prior to the date on which the
18application must be submitted to the Chief County Assessment
19Officer of the county in which the property is located. The
20notice shall appear in a newspaper of general circulation in
21the county.
22    Notwithstanding Sections 6 and 8 of the State Mandates
23Act, no reimbursement by the State is required for the
24implementation of any mandate created by this Section.
25(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
26102-895, eff. 5-23-22.)
 

 

 

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1    Section 10. The Senior Citizens Real Estate Tax Deferral
2Act is amended by changing Section 2 as follows:
 
3    (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
4    Sec. 2. Definitions. As used in this Act:
5    (a) "Taxpayer" means an individual whose household income
6for the year is no greater than: (i) $40,000 through tax year
72005; (ii) $50,000 for tax years 2006 through 2011; (iii)
8$55,000 for tax years 2012 through 2021; (iv) $65,000 for tax
9year years 2022 through 2025; and (v) $75,000 $55,000 for tax
10year 2023 2026 and thereafter.
11    (b) "Tax deferred property" means the property upon which
12real estate taxes are deferred under this Act.
13    (c) "Homestead" means the land and buildings thereon,
14including a condominium or a dwelling unit in a multidwelling
15building that is owned and operated as a cooperative, occupied
16by the taxpayer as his residence or which are temporarily
17unoccupied by the taxpayer because such taxpayer is
18temporarily residing, for not more than 1 year, in a licensed
19facility as defined in Section 1-113 of the Nursing Home Care
20Act.
21    (d) "Real estate taxes" or "taxes" means the taxes on real
22property for which the taxpayer would be liable under the
23Property Tax Code, including special service area taxes, and
24special assessments on benefited real property for which the

 

 

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1taxpayer would be liable to a unit of local government.
2    (e) "Department" means the Department of Revenue.
3    (f) "Qualifying property" means a homestead which (a) the
4taxpayer or the taxpayer and his spouse own in fee simple or
5are purchasing in fee simple under a recorded instrument of
6sale, (b) is not income-producing property, (c) is not subject
7to a lien for unpaid real estate taxes when a claim under this
8Act is filed, and (d) is not held in trust, other than an
9Illinois land trust with the taxpayer identified as the sole
10beneficiary, if the taxpayer is filing for the program for the
11first time effective as of the January 1, 2011 assessment year
12or tax year 2012 and thereafter.
13    (g) "Equity interest" means the current assessed valuation
14of the qualified property times the fraction necessary to
15convert that figure to full market value minus any outstanding
16debts or liens on that property. In the case of qualifying
17property not having a separate assessed valuation, the
18appraised value as determined by a qualified real estate
19appraiser shall be used instead of the current assessed
20valuation.
21    (h) "Household income" has the meaning ascribed to that
22term in the Senior Citizens and Persons with Disabilities
23Property Tax Relief Act.
24    (i) "Collector" means the county collector or, if the
25taxes to be deferred are special assessments, an official
26designated by a unit of local government to collect special

 

 

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1assessments.
2(Source: P.A. 102-644, eff. 8-27-21.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.