103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3573

 

Introduced 2/9/2024, by Sen. Erica Harriss

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for taxable year 2024, the maximum income limitation for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption is $75,000. Provides that, for taxable year 2025 and subsequent taxable years, the maximum income limitation shall be adjusted by the percentage increase, if any, in the Consumer Price Index. Effective immediately.


LRB103 38885 HLH 69022 b

 

 

A BILL FOR

 

SB3573LRB103 38885 HLH 69022 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    "Consumer Price Index-u" means means the index published
5by the Bureau of Labor Statistics of the United States
6Department of Labor that measures the average change in prices
7of goods and services purchased by all urban consumers, United
8States city average, all items, 1982-84=100.
9    "Equalized assessed value" means the assessed value as
10equalized by the Illinois Department of Revenue.
11    "Household" means the applicant, the spouse of the
12applicant, and all persons using the residence of the
13applicant as their principal place of residence.
14    "Household income" means the combined income of the
15members of a household for the calendar year preceding the
16taxable year.
17    "Income" has the same meaning as provided in Section 3.07
18of the Senior Citizens and Persons with Disabilities Property
19Tax Relief Act, except that, beginning in assessment year
202001, "income" does not include veteran's benefits.
21    "Internal Revenue Code of 1986" means the United States
22Internal Revenue Code of 1986 or any successor law or laws
23relating to federal income taxes in effect for the year
24preceding the taxable year.
25    "Life care facility that qualifies as a cooperative" means
26a facility as defined in Section 2 of the Life Care Facilities

 

 

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1Act.
2    "Maximum income limitation" means:
3        (1) $35,000 prior to taxable year 1999;
4        (2) $40,000 in taxable years 1999 through 2003;
5        (3) $45,000 in taxable years 2004 through 2005;
6        (4) $50,000 in taxable years 2006 and 2007;
7        (5) $55,000 in taxable years 2008 through 2016;
8        (6) for taxable year 2017, (i) $65,000 for qualified
9    property located in a county with 3,000,000 or more
10    inhabitants and (ii) $55,000 for qualified property
11    located in a county with fewer than 3,000,000 inhabitants;
12    and
13        (7) for taxable years 2018 through 2023 and
14    thereafter, $65,000 for all qualified property; .
15        (8) for taxable year 2024, $75,000 for all qualified
16    property; and
17        (9) for taxable years 2025 and thereafter, the maximum
18    income limitation for the immediately preceding taxable
19    year, multiplied by one plus the percentage increase, if
20    any, in the Consumer Price Index-U for the 12-month period
21    ending in September of the calendar year immediately
22    preceding the taxable year for which the limitation is
23    calculated.
24    As an alternative income valuation, a homeowner who is
25enrolled in any of the following programs may be presumed to
26have household income that does not exceed the maximum income

 

 

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1limitation for that tax year as required by this Section: Aid
2to the Aged, Blind or Disabled (AABD) Program or the
3Supplemental Nutrition Assistance Program (SNAP), both of
4which are administered by the Department of Human Services;
5the Low Income Home Energy Assistance Program (LIHEAP), which
6is administered by the Department of Commerce and Economic
7Opportunity; The Benefit Access program, which is administered
8by the Department on Aging; and the Senior Citizens Real
9Estate Tax Deferral Program.
10    A chief county assessment officer may indicate that he or
11she has verified an applicant's income eligibility for this
12exemption but may not report which program or programs, if
13any, enroll the applicant. Release of personal information
14submitted pursuant to this Section shall be deemed an
15unwarranted invasion of personal privacy under the Freedom of
16Information Act.
17    "Residence" means the principal dwelling place and
18appurtenant structures used for residential purposes in this
19State occupied on January 1 of the taxable year by a household
20and so much of the surrounding land, constituting the parcel
21upon which the dwelling place is situated, as is used for
22residential purposes. If the Chief County Assessment Officer
23has established a specific legal description for a portion of
24property constituting the residence, then that portion of
25property shall be deemed the residence for the purposes of
26this Section.

 

 

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1    "Taxable year" means the calendar year during which ad
2valorem property taxes payable in the next succeeding year are
3levied.
4    (c) Beginning in taxable year 1994, a low-income senior
5citizens assessment freeze homestead exemption is granted for
6real property that is improved with a permanent structure that
7is occupied as a residence by an applicant who (i) is 65 years
8of age or older during the taxable year, (ii) has a household
9income that does not exceed the maximum income limitation,
10(iii) is liable for paying real property taxes on the
11property, and (iv) is an owner of record of the property or has
12a legal or equitable interest in the property as evidenced by a
13written instrument. This homestead exemption shall also apply
14to a leasehold interest in a parcel of property improved with a
15permanent structure that is a single family residence that is
16occupied as a residence by a person who (i) is 65 years of age
17or older during the taxable year, (ii) has a household income
18that does not exceed the maximum income limitation, (iii) has
19a legal or equitable ownership interest in the property as
20lessee, and (iv) is liable for the payment of real property
21taxes on that property.
22    In counties of 3,000,000 or more inhabitants, the amount
23of the exemption for all taxable years is the equalized
24assessed value of the residence in the taxable year for which
25application is made minus the base amount. In all other
26counties, the amount of the exemption is as follows: (i)

 

 

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1through taxable year 2005 and for taxable year 2007 and
2thereafter, the amount of this exemption shall be the
3equalized assessed value of the residence in the taxable year
4for which application is made minus the base amount; and (ii)
5for taxable year 2006, the amount of the exemption is as
6follows:
7        (1) For an applicant who has a household income of
8    $45,000 or less, the amount of the exemption is the
9    equalized assessed value of the residence in the taxable
10    year for which application is made minus the base amount.
11        (2) For an applicant who has a household income
12    exceeding $45,000 but not exceeding $46,250, the amount of
13    the exemption is (i) the equalized assessed value of the
14    residence in the taxable year for which application is
15    made minus the base amount (ii) multiplied by 0.8.
16        (3) For an applicant who has a household income
17    exceeding $46,250 but not exceeding $47,500, the amount of
18    the exemption is (i) the equalized assessed value of the
19    residence in the taxable year for which application is
20    made minus the base amount (ii) multiplied by 0.6.
21        (4) For an applicant who has a household income
22    exceeding $47,500 but not exceeding $48,750, the amount of
23    the exemption is (i) the equalized assessed value of the
24    residence in the taxable year for which application is
25    made minus the base amount (ii) multiplied by 0.4.
26        (5) For an applicant who has a household income

 

 

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1    exceeding $48,750 but not exceeding $50,000, the amount of
2    the exemption is (i) the equalized assessed value of the
3    residence in the taxable year for which application is
4    made minus the base amount (ii) multiplied by 0.2.
5    When the applicant is a surviving spouse of an applicant
6for a prior year for the same residence for which an exemption
7under this Section has been granted, the base year and base
8amount for that residence are the same as for the applicant for
9the prior year.
10    Each year at the time the assessment books are certified
11to the County Clerk, the Board of Review or Board of Appeals
12shall give to the County Clerk a list of the assessed values of
13improvements on each parcel qualifying for this exemption that
14were added after the base year for this parcel and that
15increased the assessed value of the property.
16    In the case of land improved with an apartment building
17owned and operated as a cooperative or a building that is a
18life care facility that qualifies as a cooperative, the
19maximum reduction from the equalized assessed value of the
20property is limited to the sum of the reductions calculated
21for each unit occupied as a residence by a person or persons
22(i) 65 years of age or older, (ii) with a household income that
23does not exceed the maximum income limitation, (iii) who is
24liable, by contract with the owner or owners of record, for
25paying real property taxes on the property, and (iv) who is an
26owner of record of a legal or equitable interest in the

 

 

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

 

 

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1qualifications for the granting of this exemption for those
2years.
3    When married persons maintain separate residences, the
4exemption provided for in this Section may be claimed by only
5one of such persons and for only one residence.
6    For taxable year 1994 only, in counties having less than
73,000,000 inhabitants, to receive the exemption, a person
8shall submit an application by February 15, 1995 to the Chief
9County Assessment Officer of the county in which the property
10is located. In counties having 3,000,000 or more inhabitants,
11for taxable year 1994 and all subsequent taxable years, to
12receive the exemption, a person may submit an application to
13the Chief County Assessment Officer of the county in which the
14property is located during such period as may be specified by
15the Chief County Assessment Officer. The Chief County
16Assessment Officer in counties of 3,000,000 or more
17inhabitants shall annually give notice of the application
18period by mail or by publication. In counties having less than
193,000,000 inhabitants, beginning with taxable year 1995 and
20thereafter, to receive the exemption, a person shall submit an
21application by July 1 of each taxable year to the Chief County
22Assessment Officer of the county in which the property is
23located. A county may, by ordinance, establish a date for
24submission of applications that is different than July 1. The
25applicant shall submit with the application an affidavit of
26the applicant's total household income, age, marital status

 

 

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1(and if married the name and address of the applicant's
2spouse, if known), and principal dwelling place of members of
3the household on January 1 of the taxable year. The Department
4shall establish, by rule, a method for verifying the accuracy
5of affidavits filed by applicants under this Section, and the
6Chief County Assessment Officer may conduct audits of any
7taxpayer claiming an exemption under this Section to verify
8that the taxpayer is eligible to receive the exemption. Each
9application shall contain or be verified by a written
10declaration that it is made under the penalties of perjury. A
11taxpayer's signing a fraudulent application under this Act is
12perjury, as defined in Section 32-2 of the Criminal Code of
132012. The applications shall be clearly marked as applications
14for the Low-Income Senior Citizens Assessment Freeze Homestead
15Exemption and must contain a notice that any taxpayer who
16receives the exemption is subject to an audit by the Chief
17County Assessment Officer.
18    Notwithstanding any other provision to the contrary, in
19counties having fewer than 3,000,000 inhabitants, if an
20applicant fails to file the application required by this
21Section in a timely manner and this failure to file is due to a
22mental or physical condition sufficiently severe so as to
23render the applicant incapable of filing the application in a
24timely manner, the Chief County Assessment Officer may extend
25the filing deadline for a period of 30 days after the applicant
26regains the capability to file the application, but in no case

 

 

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1may the filing deadline be extended beyond 3 months of the
2original filing deadline. In order to receive the extension
3provided in this paragraph, the applicant shall provide the
4Chief County Assessment Officer with a signed statement from
5the applicant's physician, advanced practice registered nurse,
6or physician assistant stating the nature and extent of the
7condition, that, in the physician's, advanced practice
8registered nurse's, or physician assistant's opinion, the
9condition was so severe that it rendered the applicant
10incapable of filing the application in a timely manner, and
11the date on which the applicant regained the capability to
12file the application.
13    Beginning January 1, 1998, notwithstanding any other
14provision to the contrary, in counties having fewer than
153,000,000 inhabitants, if an applicant fails to file the
16application required by this Section in a timely manner and
17this failure to file is due to a mental or physical condition
18sufficiently severe so as to render the applicant incapable of
19filing the application in a timely manner, the Chief County
20Assessment Officer may extend the filing deadline for a period
21of 3 months. In order to receive the extension provided in this
22paragraph, the applicant shall provide the Chief County
23Assessment Officer with a signed statement from the
24applicant's physician, advanced practice registered nurse, or
25physician assistant stating the nature and extent of the
26condition, and that, in the physician's, advanced practice

 

 

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

 

 

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

 

 

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1inhabitants, the amount of the exemption shall be the greater
2of (i) the amount of the exemption otherwise calculated under
3this Section or (ii) $2,000.
4    (c-5) Notwithstanding any other provision of law, each
5chief county assessment officer may approve this exemption for
6the 2020 taxable year, without application, for any property
7that was approved for this exemption for the 2019 taxable
8year, provided that:
9        (1) the county board has declared a local disaster as
10    provided in the Illinois Emergency Management Agency Act
11    related to the COVID-19 public health emergency;
12        (2) the owner of record of the property as of January
13    1, 2020 is the same as the owner of record of the property
14    as of January 1, 2019;
15        (3) the exemption for the 2019 taxable year has not
16    been determined to be an erroneous exemption as defined by
17    this Code; and
18        (4) the applicant for the 2019 taxable year has not
19    asked for the exemption to be removed for the 2019 or 2020
20    taxable years.
21    Nothing in this subsection shall preclude or impair the
22authority of a chief county assessment officer to conduct
23audits of any taxpayer claiming an exemption under this
24Section to verify that the taxpayer is eligible to receive the
25exemption as provided elsewhere in this Section.
26    (c-10) Notwithstanding any other provision of law, each

 

 

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1chief county assessment officer may approve this exemption for
2the 2021 taxable year, without application, for any property
3that was approved for this exemption for the 2020 taxable
4year, if:
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, 2021 is the same as the owner of record of the property
10    as of January 1, 2020;
11        (3) the exemption for the 2020 taxable year has not
12    been determined to be an erroneous exemption as defined by
13    this Code; and
14        (4) the taxpayer for the 2020 taxable year has not
15    asked for the exemption to be removed for the 2020 or 2021
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

 

 

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1Officer of the county in which the property is located. The
2notice shall appear in a newspaper of general circulation in
3the county.
4    Notwithstanding Sections 6 and 8 of the State Mandates
5Act, no reimbursement by the State is required for the
6implementation of any mandate created by this Section.
7(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
8102-895, eff. 5-23-22.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.