97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4459

 

Introduced 1/30/2012, by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code concerning the Senior Citizens Assessment Freeze Homestead Exemption. Sets forth provisions for calculating the base amount for a new residence if the taxpayer changes residences. Effective immediately.


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

 

 

A BILL FOR

 

HB4459LRB097 17228 HLH 62428 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year.
18    Beginning with the 2012 taxable year, if a taxpayer who has
19been granted an exemption under this Section transfers his or
20her residence and acquires a new residence and the equalized
21assessed value of the new residence is equal to or less than
22the equalized assessed value of the taxpayer's prior residence,
23then, beginning with the taxable year immediately following the

 

 

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

 

 

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1For taxable year 1999 only, the Chief County Assessment Officer
2shall review (i) all taxable years for which the applicant
3applied and qualified for the exemption and (ii) the existing
4base year. The assessment officer shall select as the new base
5year the year with the lowest equalized assessed value. An
6equalized assessed value that is based on an assessed value
7that results from a temporary irregularity in the property that
8reduces the assessed value for one or more taxable years shall
9not be considered the lowest equalized assessed value. The
10selected year shall be the base year for taxable year 1999 and
11thereafter until a new base year is established under the terms
12of this paragraph.
13    "Chief County Assessment Officer" means the County
14Assessor or Supervisor of Assessments of the county in which
15the property is located.
16    "Equalized assessed value" means the assessed value as
17equalized by the Illinois Department of Revenue.
18    "Household" means the applicant, the spouse of the
19applicant, and all persons using the residence of the applicant
20as their principal place of residence.
21    "Household income" means the combined income of the members
22of a household for the calendar year preceding the taxable
23year.
24    "Income" has the same meaning as provided in Section 3.07
25of the Senior Citizens and Disabled Persons Property Tax Relief
26and Pharmaceutical Assistance Act, except that, beginning in

 

 

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1assessment year 2001, "income" does not include veteran's
2benefits.
3    "Internal Revenue Code of 1986" means the United States
4Internal Revenue Code of 1986 or any successor law or laws
5relating to federal income taxes in effect for the year
6preceding the taxable year.
7    "Life care facility that qualifies as a cooperative" means
8a facility as defined in Section 2 of the Life Care Facilities
9Act.
10    "Maximum income limitation" means:
11        (1) $35,000 prior to taxable year 1999;
12        (2) $40,000 in taxable years 1999 through 2003;
13        (3) $45,000 in taxable years 2004 through 2005;
14        (4) $50,000 in taxable years 2006 and 2007; and
15        (5) $55,000 in taxable year 2008 and thereafter.
16    "Residence" means the principal dwelling place and
17appurtenant structures used for residential purposes in this
18State occupied on January 1 of the taxable year by a household
19and so much of the surrounding land, constituting the parcel
20upon which the dwelling place is situated, as is used for
21residential purposes. If the Chief County Assessment Officer
22has established a specific legal description for a portion of
23property constituting the residence, then that portion of
24property shall be deemed the residence for the purposes of this
25Section.
26    "Taxable year" means the calendar year during which ad

 

 

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1valorem property taxes payable in the next succeeding year are
2levied.
3    (c) Beginning in taxable year 1994, a senior citizens
4assessment freeze homestead exemption is granted for real
5property that is improved with a permanent structure that is
6occupied as a residence by an applicant who (i) is 65 years of
7age or older during the taxable year, (ii) has a household
8income that does not exceed the maximum income limitation,
9(iii) is liable for paying real property taxes on the property,
10and (iv) is an owner of record of the property or has a legal or
11equitable interest in the property as evidenced by a written
12instrument. This homestead exemption shall also apply to a
13leasehold interest in a parcel of property improved with a
14permanent structure that is a single family residence that is
15occupied as a residence by a person who (i) is 65 years of age
16or older during the taxable year, (ii) has a household income
17that does not exceed the maximum income limitation, (iii) has a
18legal or equitable ownership interest in the property as
19lessee, and (iv) is liable for the payment of real property
20taxes on that property.
21    In counties of 3,000,000 or more inhabitants, the amount of
22the exemption for all taxable years is the equalized assessed
23value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

 

 

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

 

 

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

 

 

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1this Section, the cooperative association or its management
2firm shall credit the savings resulting from that exemption
3only to the apportioned tax liability of the owner who
4qualified for the exemption. Any person who willfully refuses
5to credit that savings to an owner who qualifies for the
6exemption is guilty of a Class B misdemeanor.
7    When a homestead exemption has been granted under this
8Section and an applicant then becomes a resident of a facility
9licensed under the Assisted Living and Shared Housing Act, the
10Nursing Home Care Act, the Specialized Mental Health
11Rehabilitation Act, or the ID/DD Community Care Act, the
12exemption shall be granted in subsequent years so long as the
13residence (i) continues to be occupied by the qualified
14applicant's spouse or (ii) if remaining unoccupied, is still
15owned by the qualified applicant for the homestead 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

 

 

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

 

 

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1applicants under this Section, and the Chief County Assessment
2Officer may conduct audits of any taxpayer claiming an
3exemption under this Section to verify that the taxpayer is
4eligible to receive the exemption. Each application shall
5contain or be verified by a written declaration that it is made
6under the penalties of perjury. A taxpayer's signing a
7fraudulent application under this Act is perjury, as defined in
8Section 32-2 of the Criminal Code of 1961. The applications
9shall be clearly marked as applications for the Senior Citizens
10Assessment Freeze Homestead Exemption and must contain a notice
11that any taxpayer who receives the exemption is subject to an
12audit by the Chief County Assessment Officer.
13    Notwithstanding any other provision to the contrary, in
14counties having fewer than 3,000,000 inhabitants, if an
15applicant fails to file the application required by this
16Section in a timely manner and this failure to file is due to a
17mental or physical condition sufficiently severe so as to
18render the applicant incapable of filing the application in a
19timely manner, the Chief County Assessment Officer may extend
20the filing deadline for a period of 30 days after the applicant
21regains the capability to file the application, but in no case
22may the filing deadline be extended beyond 3 months of the
23original filing deadline. In order to receive the extension
24provided in this paragraph, the applicant shall provide the
25Chief County Assessment Officer with a signed statement from
26the applicant's physician stating the nature and extent of the

 

 

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1condition, that, in the physician's opinion, the condition was
2so severe that it rendered the applicant incapable of filing
3the application in a timely manner, and the date on which the
4applicant regained the capability to file 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 applicant's
16physician stating the nature and extent of the condition, and
17that, in the physician's opinion, the condition was so severe
18that it rendered the applicant incapable of filing the
19application in a timely manner.
20    In counties having less than 3,000,000 inhabitants, if an
21applicant was denied an exemption in taxable year 1994 and the
22denial occurred due to an error on the part of an assessment
23official, or his or her agent or employee, then beginning in
24taxable year 1997 the applicant's base year, for purposes of
25determining the amount of the exemption, shall be 1993 rather
26than 1994. In addition, in taxable year 1997, the applicant's

 

 

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

 

 

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1Section, shall be confidential, except for official purposes or
2pursuant to official procedures for collection of any State or
3local tax or enforcement of any civil or criminal penalty or
4sanction imposed by this Act or by any statute or ordinance
5imposing a State or local tax. Any person who divulges any such
6information in any manner, except in accordance with a proper
7judicial order, is guilty of a Class A misdemeanor.
8    Nothing contained in this Section shall prevent the
9Director or chief county assessment officer from publishing or
10making available reasonable statistics concerning the
11operation of the exemption contained in this Section in which
12the contents of claims are grouped into aggregates in such a
13way that information contained in any individual claim shall
14not be disclosed.
15    (d) Each Chief County Assessment Officer shall annually
16publish a notice of availability of the exemption provided
17under this Section. The notice shall be published at least 60
18days but no more than 75 days prior to the date on which the
19application must be submitted to the Chief County Assessment
20Officer of the county in which the property is located. The
21notice shall appear in a newspaper of general circulation in
22the county.
23    Notwithstanding Sections 6 and 8 of the State Mandates Act,
24no reimbursement by the State is required for the
25implementation of any mandate created by this Section.
26(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;

 

 

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196-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
2revised 9-12-11.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.