Sen. Don Harmon

Filed: 3/23/2006

 

 


 

 


 
09400HB4789sam001 LRB094 18913 BDD 57550 a

1
AMENDMENT TO HOUSE BILL 4789

2     AMENDMENT NO. ______. Amend House Bill 4789 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Property Tax Code is amended by changing
5 Section 15-172 as follows:
 
6     (35 ILCS 200/15-172)
7     Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8 Exemption.
9     (a) This Section may be cited as the Senior Citizens
10 Assessment Freeze Homestead Exemption.
11     (b) As used in this Section:
12     "Applicant" means an individual who has filed an
13 application under this this Section.
14     "Base amount" means the base year equalized assessed value
15 of the residence plus the first year's equalized assessed value
16 of any added improvements which increased the assessed value of
17 the residence after the base year.
18     "Base year" means the taxable year prior to the taxable
19 year for which the applicant first qualifies and applies for
20 the exemption provided that in the prior taxable year the
21 property was improved with a permanent structure that was
22 occupied as a residence by the applicant who was liable for
23 paying real property taxes on the property and who was either
24 (i) an owner of record of the property or had legal or

 

 

09400HB4789sam001 - 2 - LRB094 18913 BDD 57550 a

1 equitable interest in the property as evidenced by a written
2 instrument or (ii) had a legal or equitable interest as a
3 lessee in the parcel of property that was single family
4 residence. If in any subsequent taxable year for which the
5 applicant applies and qualifies for the exemption the equalized
6 assessed value of the residence is less than the equalized
7 assessed value in the existing base year (provided that such
8 equalized assessed value is not based on an assessed value that
9 results from a temporary irregularity in the property that
10 reduces the assessed value for one or more taxable years), then
11 that subsequent taxable year shall become the base year until a
12 new base year is established under the terms of this paragraph.
13 For taxable year 1999 only, the Chief County Assessment Officer
14 shall review (i) all taxable years for which the applicant
15 applied and qualified for the exemption and (ii) the existing
16 base year. The assessment officer shall select as the new base
17 year the year with the lowest equalized assessed value. An
18 equalized assessed value that is based on an assessed value
19 that results from a temporary irregularity in the property that
20 reduces the assessed value for one or more taxable years shall
21 not be considered the lowest equalized assessed value. The
22 selected year shall be the base year for taxable year 1999 and
23 thereafter until a new base year is established under the terms
24 of this paragraph.
25     "Chief County Assessment Officer" means the County
26 Assessor or Supervisor of Assessments of the county in which
27 the property is located.
28     "Equalized assessed value" means the assessed value as
29 equalized by the Illinois Department of Revenue.
30     "Household" means the applicant, the spouse of the
31 applicant, and all persons using the residence of the applicant
32 as their principal place of residence.
33     "Household income" means the combined income of the members
34 of a household for the calendar year preceding the taxable

 

 

09400HB4789sam001 - 3 - LRB094 18913 BDD 57550 a

1 year.
2     "Income" has the same meaning as provided in Section 3.07
3 of the Senior Citizens and Disabled Persons Property Tax Relief
4 and Pharmaceutical Assistance Act, except that, beginning in
5 assessment year 2001, "income" does not include veteran's
6 benefits.
7     "Internal Revenue Code of 1986" means the United States
8 Internal Revenue Code of 1986 or any successor law or laws
9 relating to federal income taxes in effect for the year
10 preceding the taxable year.
11     "Life care facility that qualifies as a cooperative" means
12 a facility as defined in Section 2 of the Life Care Facilities
13 Act.
14     "Residence" means the principal dwelling place and
15 appurtenant structures used for residential purposes in this
16 State occupied on January 1 of the taxable year by a household
17 and so much of the surrounding land, constituting the parcel
18 upon which the dwelling place is situated, as is used for
19 residential purposes. If the Chief County Assessment Officer
20 has established a specific legal description for a portion of
21 property constituting the residence, then that portion of
22 property shall be deemed the residence for the purposes of this
23 Section.
24     "Taxable year" means the calendar year during which ad
25 valorem property taxes payable in the next succeeding year are
26 levied.
27     (c) Beginning in taxable year 1994, a senior citizens
28 assessment freeze homestead exemption is granted for real
29 property that is improved with a permanent structure that is
30 occupied as a residence by an applicant who (i) is 65 years of
31 age or older during the taxable year, (ii) has a household
32 income of $35,000 or less prior to taxable year 1999, $40,000
33 or less in taxable years 1999 through 2003, and $45,000 or less
34 in taxable year 2004 and thereafter, (iii) is liable for paying

 

 

09400HB4789sam001 - 4 - LRB094 18913 BDD 57550 a

1 real property taxes on the property, and (iv) is an owner of
2 record of the property or has a legal or equitable interest in
3 the property as evidenced by a written instrument. This
4 homestead exemption shall also apply to a leasehold interest in
5 a parcel of property improved with a permanent structure that
6 is a single family residence that is occupied as a residence by
7 a person who (i) is 65 years of age or older during the taxable
8 year, (ii) has a household income of $35,000 or less prior to
9 taxable year 1999, $40,000 or less in taxable years 1999
10 through 2003, and $45,000 or less in taxable year 2004 and
11 thereafter, (iii) has a legal or equitable ownership interest
12 in the property as lessee, and (iv) is liable for the payment
13 of real property taxes on that property.
14      The amount of this exemption shall be the equalized
15 assessed value of the residence in the taxable year for which
16 application is made minus the base amount.
17     When the applicant is a surviving spouse of an applicant
18 for a prior year for the same residence for which an exemption
19 under this Section has been granted, the base year and base
20 amount for that residence are the same as for the applicant for
21 the prior year.
22     Each year at the time the assessment books are certified to
23 the County Clerk, the Board of Review or Board of Appeals shall
24 give to the County Clerk a list of the assessed values of
25 improvements on each parcel qualifying for this exemption that
26 were added after the base year for this parcel and that
27 increased the assessed value of the property.
28     In the case of land improved with an apartment building
29 owned and operated as a cooperative or a building that is a
30 life care facility that qualifies as a cooperative, the maximum
31 reduction from the equalized assessed value of the property is
32 limited to the sum of the reductions calculated for each unit
33 occupied as a residence by a person or persons (i) 65 years of
34 age or older, (ii) with a household income of $35,000 or less

 

 

09400HB4789sam001 - 5 - LRB094 18913 BDD 57550 a

1 prior to taxable year 1999, $40,000 or less in taxable years
2 1999 through 2003, and $45,000 or less in taxable year 2004 and
3 thereafter, (iii) who is liable, by contract with the owner or
4 owners of record, for paying real property taxes on the
5 property, and (iv) who is an owner of record of a legal or
6 equitable interest in the cooperative apartment building,
7 other than a leasehold interest. In the instance of a
8 cooperative where a homestead exemption has been granted under
9 this Section, the cooperative association or its management
10 firm shall credit the savings resulting from that exemption
11 only to the apportioned tax liability of the owner who
12 qualified for the exemption. Any person who willfully refuses
13 to credit that savings to an owner who qualifies for the
14 exemption is guilty of a Class B misdemeanor.
15     When a homestead exemption has been granted under this
16 Section and an applicant then becomes a resident of a facility
17 licensed under the Nursing Home Care Act, the exemption shall
18 be granted in subsequent years so long as the residence (i)
19 continues to be occupied by the qualified applicant's spouse or
20 (ii) if remaining unoccupied, is still owned by the qualified
21 applicant for the homestead exemption.
22     Beginning January 1, 1997, when an individual dies who
23 would have qualified for an exemption under this Section, and
24 the surviving spouse does not independently qualify for this
25 exemption because of age, the exemption under this Section
26 shall be granted to the surviving spouse for the taxable year
27 preceding and the taxable year of the death, provided that,
28 except for age, the surviving spouse meets all other
29 qualifications for the granting of this exemption for those
30 years.
31     When married persons maintain separate residences, the
32 exemption provided for in this Section may be claimed by only
33 one of such persons and for only one residence.
34     For taxable year 1994 only, in counties having less than

 

 

09400HB4789sam001 - 6 - LRB094 18913 BDD 57550 a

1 3,000,000 inhabitants, to receive the exemption, a person shall
2 submit an application by February 15, 1995 to the Chief County
3 Assessment Officer of the county in which the property is
4 located. In counties having 3,000,000 or more inhabitants, for
5 taxable year 1994 and all subsequent taxable years, to receive
6 the exemption, a person may submit an application to the Chief
7 County Assessment Officer of the county in which the property
8 is located during such period as may be specified by the Chief
9 County Assessment Officer. The Chief County Assessment Officer
10 in counties of 3,000,000 or more inhabitants shall annually
11 give notice of the application period by mail or by
12 publication. In counties having less than 3,000,000
13 inhabitants, beginning with taxable year 1995 and thereafter,
14 to receive the exemption, a person shall submit an application
15 by July 1 of each taxable year to the Chief County Assessment
16 Officer of the county in which the property is located. A
17 county may, by ordinance, establish a date for submission of
18 applications that is different than July 1. The applicant shall
19 submit with the application an affidavit of the applicant's
20 total household income, age, marital status (and if married the
21 name and address of the applicant's spouse, if known), and
22 principal dwelling place of members of the household on January
23 1 of the taxable year. The Department shall establish, by rule,
24 a method for verifying the accuracy of affidavits filed by
25 applicants under this Section. The applications shall be
26 clearly marked as applications for the Senior Citizens
27 Assessment Freeze Homestead Exemption.
28     Notwithstanding any other provision to the contrary, in
29 counties having fewer than 3,000,000 inhabitants, if an
30 applicant fails to file the application required by this
31 Section in a timely manner and this failure to file is due to a
32 mental or physical condition sufficiently severe so as to
33 render the applicant incapable of filing the application in a
34 timely manner, the Chief County Assessment Officer may extend

 

 

09400HB4789sam001 - 7 - LRB094 18913 BDD 57550 a

1 the filing deadline for a period of 30 days after the applicant
2 regains the capability to file the application, but in no case
3 may the filing deadline be extended beyond 3 months of the
4 original filing deadline. In order to receive the extension
5 provided in this paragraph, the applicant shall provide the
6 Chief County Assessment Officer with a signed statement from
7 the applicant's physician stating the nature and extent of the
8 condition, that, in the physician's opinion, the condition was
9 so severe that it rendered the applicant incapable of filing
10 the application in a timely manner, and the date on which the
11 applicant regained the capability to file the application.
12     Beginning January 1, 1998, notwithstanding any other
13 provision to the contrary, in counties having fewer than
14 3,000,000 inhabitants, if an applicant fails to file the
15 application required by this Section in a timely manner and
16 this failure to file is due to a mental or physical condition
17 sufficiently severe so as to render the applicant incapable of
18 filing the application in a timely manner, the Chief County
19 Assessment Officer may extend the filing deadline for a period
20 of 3 months. In order to receive the extension provided in this
21 paragraph, the applicant shall provide the Chief County
22 Assessment Officer with a signed statement from the applicant's
23 physician stating the nature and extent of the condition, and
24 that, in the physician's opinion, the condition was so severe
25 that it rendered the applicant incapable of filing the
26 application in a timely manner.
27     In counties having less than 3,000,000 inhabitants, if an
28 applicant was denied an exemption in taxable year 1994 and the
29 denial occurred due to an error on the part of an assessment
30 official, or his or her agent or employee, then beginning in
31 taxable year 1997 the applicant's base year, for purposes of
32 determining the amount of the exemption, shall be 1993 rather
33 than 1994. In addition, in taxable year 1997, the applicant's
34 exemption shall also include an amount equal to (i) the amount

 

 

09400HB4789sam001 - 8 - LRB094 18913 BDD 57550 a

1 of any exemption denied to the applicant in taxable year 1995
2 as a result of using 1994, rather than 1993, as the base year,
3 (ii) the amount of any exemption denied to the applicant in
4 taxable year 1996 as a result of using 1994, rather than 1993,
5 as the base year, and (iii) the amount of the exemption
6 erroneously denied for taxable year 1994.
7     For purposes of this Section, a person who will be 65 years
8 of age during the current taxable year shall be eligible to
9 apply for the homestead exemption during that taxable year.
10 Application shall be made during the application period in
11 effect for the county of his or her residence.
12     The Chief County Assessment Officer may determine the
13 eligibility of a life care facility that qualifies as a
14 cooperative to receive the benefits provided by this Section by
15 use of an affidavit, application, visual inspection,
16 questionnaire, or other reasonable method in order to insure
17 that the tax savings resulting from the exemption are credited
18 by the management firm to the apportioned tax liability of each
19 qualifying resident. The Chief County Assessment Officer may
20 request reasonable proof that the management firm has so
21 credited that exemption.
22     Except as provided in this Section, all information
23 received by the chief county assessment officer or the
24 Department from applications filed under this Section, or from
25 any investigation conducted under the provisions of this
26 Section, shall be confidential, except for official purposes or
27 pursuant to official procedures for collection of any State or
28 local tax or enforcement of any civil or criminal penalty or
29 sanction imposed by this Act or by any statute or ordinance
30 imposing a State or local tax. Any person who divulges any such
31 information in any manner, except in accordance with a proper
32 judicial order, is guilty of a Class A misdemeanor.
33     Nothing contained in this Section shall prevent the
34 Director or chief county assessment officer from publishing or

 

 

09400HB4789sam001 - 9 - LRB094 18913 BDD 57550 a

1 making available reasonable statistics concerning the
2 operation of the exemption contained in this Section in which
3 the contents of claims are grouped into aggregates in such a
4 way that information contained in any individual claim shall
5 not be disclosed.
6     (d) Each Chief County Assessment Officer shall annually
7 publish a notice of availability of the exemption provided
8 under this Section. The notice shall be published at least 60
9 days but no more than 75 days prior to the date on which the
10 application must be submitted to the Chief County Assessment
11 Officer of the county in which the property is located. The
12 notice shall appear in a newspaper of general circulation in
13 the county.
14     Notwithstanding Sections 6 and 8 of the State Mandates Act,
15 no reimbursement by the State is required for the
16 implementation of any mandate created by this Section.
17 (Source: P.A. 93-715, eff. 7-12-04.)".