SB3403 EngrossedLRB097 19856 HLH 65136 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 and Disabled Persons
8Assessment Freeze Homestead Exemption.
9    (a) This Section may be cited as the Senior Citizens and
10Disabled Persons 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 value
16of any added improvements which increased the assessed value of
17the 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 equalized
7assessed value of the residence is less than the equalized
8assessed value in the existing base year (provided that such
9equalized assessed value is not based on an assessed value that
10results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years), then
12that subsequent taxable year shall become the base year until a
13new base year is established under the terms of this paragraph.
14For taxable year 1999 only, the Chief County Assessment Officer
15shall review (i) all taxable years for which the applicant
16applied and qualified for the exemption and (ii) the existing
17base year. The assessment officer shall select as the new base
18year the year with the lowest equalized assessed value. An
19equalized assessed value that is based on an assessed value
20that results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years shall
22not be considered the lowest equalized assessed value. The
23selected year shall be the base year for taxable year 1999 and
24thereafter until a new base year is established under the terms
25of this paragraph.
26    "Chief County Assessment Officer" means the County

 

 

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1Assessor or Supervisor of Assessments of the county in which
2the property is located.
3    "Disabled person" means a person unable to engage in any
4substantial gainful activity by reason of a medically
5determinable physical or mental impairment that (i) can be
6expected to result in death or (ii) has lasted or can be
7expected to last for a continuous period of not less than 12
8months. Disabled persons applying for the exemption under this
9Section must submit proof of the disability in the manner
10prescribed by the chief county assessment officer. Proof that
11an applicant is eligible to receive disability benefits under
12the federal Social Security Act constitutes proof of disability
13for purposes of this Section. Issuance of an Illinois Disabled
14Person Identification Card to the applicant stating that the
15possessor is under a Class 2 disability, as defined in Section
164A of the Illinois Identification Card Act, constitutes proof
17that the person is a disabled person for purposes of this
18Section.
19    "Equalized assessed value" means the assessed value as
20equalized by the Illinois Department of Revenue.
21    "Household" means the applicant, the spouse of the
22applicant, and all persons using the residence of the applicant
23as their principal place of residence.
24    "Household income" means the combined income of the members
25of a household for the calendar year preceding the taxable
26year.

 

 

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1    "Income" has the same meaning as provided in Section 3.07
2of the Senior Citizens and Disabled Persons Property Tax Relief
3and Pharmaceutical Assistance Act, except that, beginning in
4assessment year 2001, "income" does not include veteran's
5benefits.
6    "Internal Revenue Code of 1986" means the United States
7Internal Revenue Code of 1986 or any successor law or laws
8relating to federal income taxes in effect for the year
9preceding the taxable year.
10    "Life care facility that qualifies as a cooperative" means
11a facility as defined in Section 2 of the Life Care Facilities
12Act.
13    "Maximum income limitation" means:
14        (1) $35,000 prior to taxable year 1999;
15        (2) $40,000 in taxable years 1999 through 2003;
16        (3) $45,000 in taxable years 2004 through 2005;
17        (4) $50,000 in taxable years 2006 and 2007; and
18        (5) $55,000 in taxable year 2008 and thereafter.
19    "Residence" means the principal dwelling place and
20appurtenant structures used for residential purposes in this
21State occupied on January 1 of the taxable year by a household
22and so much of the surrounding land, constituting the parcel
23upon which the dwelling place is situated, as is used for
24residential purposes. If the Chief County Assessment Officer
25has established a specific legal description for a portion of
26property constituting the residence, then that portion of

 

 

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1property shall be deemed the residence for the purposes of this
2Section.
3    "Taxable year" means the calendar year during which ad
4valorem property taxes payable in the next succeeding year are
5levied.
6    (c) Beginning in (1) taxable year 1994 for , a senior
7citizens and (2) taxable year 2012 for disabled persons, an
8assessment freeze homestead exemption is granted for real
9property that is improved with a permanent structure that is
10occupied as a residence by an applicant who (i) is 65 years of
11age or older or is a disabled person during the taxable year,
12(ii) has a household income that does not exceed the maximum
13income limitation, (iii) is liable for paying real property
14taxes on the property, and (iv) is an owner of record of the
15property or has a legal or equitable interest in the property
16as evidenced by a written instrument. This homestead exemption
17shall also apply to a leasehold interest in a parcel of
18property improved with a permanent structure that is a single
19family residence that is occupied as a residence by a person
20who (i) is 65 years of age or older or is a disabled person
21during the taxable year, (ii) has a household income that does
22not exceed the maximum income limitation, (iii) has a legal or
23equitable ownership interest in the property as lessee, and
24(iv) is liable for the payment of real property taxes on that
25property.
26    In counties of 3,000,000 or more inhabitants, the amount of

 

 

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1the exemption for all taxable years is the equalized assessed
2value of the residence in the taxable year for which
3application is made minus the base amount. In all other
4counties, the amount of the exemption is as follows: (i)
5through taxable year 2005 and for taxable year 2007 and
6thereafter, the amount of this exemption shall be the equalized
7assessed value of the residence in the taxable year for which
8application is made minus the base amount; and (ii) for taxable
9year 2006, the amount of the exemption is as follows:
10        (1) For an applicant who has a household income of
11    $45,000 or less, the amount of the exemption is the
12    equalized assessed value of the residence in the taxable
13    year for which application is made minus the base amount.
14        (2) For an applicant who has a household income
15    exceeding $45,000 but not exceeding $46,250, 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 0.8.
19        (3) For an applicant who has a household income
20    exceeding $46,250 but not exceeding $47,500, 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 0.6.
24        (4) For an applicant who has a household income
25    exceeding $47,500 but not exceeding $48,750, 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 0.4.
3        (5) For an applicant who has a household income
4    exceeding $48,750 but not exceeding $50,000, the amount of
5    the exemption is (i) the equalized assessed value of the
6    residence in the taxable year for which application is made
7    minus the base amount (ii) multiplied by 0.2.
8    When the applicant is a surviving spouse of an applicant
9for a prior year for the same residence for which an exemption
10under this Section has been granted, the base year and base
11amount for that residence are the same as for the applicant for
12the prior year.
13    Each year at the time the assessment books are certified to
14the County Clerk, the Board of Review or Board of Appeals shall
15give to the County Clerk a list of the assessed values of
16improvements on each parcel qualifying for this exemption that
17were added after the base year for this parcel and that
18increased the assessed value of the property.
19    In the case of land improved with an apartment building
20owned and operated as a cooperative or a building that is a
21life care facility that qualifies as a cooperative, the maximum
22reduction from the equalized assessed value of the property is
23limited to the sum of the reductions calculated for each unit
24occupied as a residence by a person or persons (i) 65 years of
25age or older or by a disabled person, (ii) with a household
26income that does not exceed the maximum income limitation,

 

 

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1(iii) who is liable, by contract with the owner or owners of
2record, for paying real property taxes on the property, and
3(iv) who is an owner of record of a legal or equitable interest
4in the cooperative apartment building, other than a leasehold
5interest. In the instance of a cooperative where a homestead
6exemption has been granted under this Section, the cooperative
7association or its management firm shall credit the savings
8resulting from that exemption only to the apportioned tax
9liability of the owner who qualified for the exemption. Any
10person who willfully refuses to credit that savings to an owner
11who qualifies for the exemption is guilty of a Class B
12misdemeanor.
13    When a homestead exemption has been granted under this
14Section and an applicant then becomes a resident of a facility
15licensed under the Assisted Living and Shared Housing Act, the
16Nursing Home Care Act, the Specialized Mental Health
17Rehabilitation Act, or the ID/DD Community Care Act, the
18exemption shall be granted in subsequent years so long as the
19residence (i) continues to be occupied by the qualified
20applicant's spouse or (ii) if remaining unoccupied, is still
21owned by the qualified applicant for the homestead exemption.
22    Beginning January 1, 1997 for senior citizens and January
231, 2012 for disabled persons, when an individual dies who would
24have qualified for an exemption under this Section, and the
25surviving spouse does not independently qualify for this
26exemption because of age or nondisability, the exemption under

 

 

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1this Section shall be granted to the surviving spouse for the
2taxable year preceding and the taxable year of the death,
3provided that, except for age or nondisability, the surviving
4spouse meets all other qualifications for the granting of this
5exemption for those years.
6    When married persons maintain separate residences, the
7exemption provided for in this Section may be claimed by only
8one of such persons and for only one residence.
9    For taxable year 1994 only, in counties having less than
103,000,000 inhabitants, to receive the exemption, a person shall
11submit an application by February 15, 1995 to the Chief County
12Assessment Officer of the county in which the property is
13located. In counties having 3,000,000 or more inhabitants, for
14taxable year 1994 and all subsequent taxable years, to receive
15the exemption, a person may submit an application to the Chief
16County Assessment Officer of the county in which the property
17is located during such period as may be specified by the Chief
18County Assessment Officer. The Chief County Assessment Officer
19in counties of 3,000,000 or more inhabitants shall annually
20give notice of the application period by mail or by
21publication. In counties having less than 3,000,000
22inhabitants, beginning with taxable year 1995 and thereafter,
23to receive the exemption, a person shall submit an application
24by July 1 of each taxable year to the Chief County Assessment
25Officer of the county in which the property is located. A
26county may, by ordinance, establish a date for submission of

 

 

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1applications that is different than July 1. The applicant shall
2submit with the application an affidavit of the applicant's
3total household income, age, marital status (and if married the
4name and address of the applicant's spouse, if known),
5disability (if applying for the exemption as a disabled
6person), and principal dwelling place of members of the
7household on January 1 of the taxable year. The Department
8shall establish, by rule, a method for verifying the accuracy
9of affidavits filed by applicants under this Section, and the
10Chief County Assessment Officer may conduct audits of any
11taxpayer claiming an exemption under this Section to verify
12that the taxpayer is eligible to receive the exemption. Each
13application shall contain or be verified by a written
14declaration that it is made under the penalties of perjury. A
15taxpayer's signing a fraudulent application under this Act is
16perjury, as defined in Section 32-2 of the Criminal Code of
171961. The applications shall be clearly marked as applications
18for the Senior Citizens and Disabled Persons Assessment Freeze
19Homestead Exemption and must contain a notice that any taxpayer
20who receives the exemption is subject to an audit by the Chief
21County Assessment Officer.
22    Notwithstanding any other provision to the contrary, in
23counties having fewer than 3,000,000 inhabitants, if an
24applicant fails to file the application required by this
25Section in a timely manner and this failure to file is due to a
26mental or physical condition sufficiently severe so as to

 

 

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1render the applicant incapable of filing the application in a
2timely manner, the Chief County Assessment Officer may extend
3the filing deadline for a period of 30 days after the applicant
4regains the capability to file the application, but in no case
5may the filing deadline be extended beyond 3 months of the
6original filing deadline. In order to receive the extension
7provided in this paragraph, the applicant shall provide the
8Chief County Assessment Officer with a signed statement from
9the applicant's physician stating the nature and extent of the
10condition, that, in the physician's opinion, the condition was
11so severe that it rendered the applicant incapable of filing
12the application in a timely manner, and the date on which the
13applicant regained the capability to file the application.
14    Beginning January 1, 1998, notwithstanding any other
15provision to the contrary, in counties having fewer than
163,000,000 inhabitants, if an applicant fails to file the
17application required by this Section in a timely manner and
18this failure to file is due to a mental or physical condition
19sufficiently severe so as to render the applicant incapable of
20filing the application in a timely manner, the Chief County
21Assessment Officer may extend the filing deadline for a period
22of 3 months. In order to receive the extension provided in this
23paragraph, the applicant shall provide the Chief County
24Assessment Officer with a signed statement from the applicant's
25physician stating the nature and extent of the condition, and
26that, in the physician's opinion, the condition was so severe

 

 

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1that it rendered the applicant incapable of filing the
2application in a timely manner.
3    In counties having less than 3,000,000 inhabitants, if an
4applicant was denied an exemption in taxable year 1994 and the
5denial occurred due to an error on the part of an assessment
6official, or his or her agent or employee, then beginning in
7taxable year 1997 the applicant's base year, for purposes of
8determining the amount of the exemption, shall be 1993 rather
9than 1994. In addition, in taxable year 1997, the applicant's
10exemption shall also include an amount equal to (i) the amount
11of any exemption denied to the applicant in taxable year 1995
12as a result of using 1994, rather than 1993, as the base year,
13(ii) the amount of any exemption denied to the applicant in
14taxable year 1996 as a result of using 1994, rather than 1993,
15as the base year, and (iii) the amount of the exemption
16erroneously denied for taxable year 1994.
17    For purposes of this Section, a person who will be 65 years
18of age or is a disabled person during the current taxable year
19shall be eligible to apply for the homestead exemption during
20that taxable year. Application shall be made during the
21application period in effect for the county of his or her
22residence.
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 by
26use 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 each
4qualifying resident. The Chief County Assessment Officer may
5request 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 or
12pursuant to official procedures for collection of any State or
13local 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    (d) Each Chief County Assessment Officer shall annually
26publish a notice of availability of the exemption provided

 

 

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1under this Section. The notice shall be published at least 60
2days but no more than 75 days prior to the date on which the
3application must be submitted to the Chief County Assessment
4Officer of the county in which the property is located. The
5notice shall appear in a newspaper of general circulation in
6the county.
7    Notwithstanding Sections 6 and 8 of the State Mandates Act,
8no reimbursement by the State is required for the
9implementation of any mandate created by this Section.
10(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
1196-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
12revised 9-12-11.)
 
13    Section 90. The State Mandates Act is amended by adding
14Section 8.36 as follows:
 
15    (30 ILCS 805/8.36 new)
16    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 97th General Assembly.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.