98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5545

 

Introduced , by Rep. Katherine Cloonen

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that "household income" does not include wages paid to a member of the household who is a disabled person.


LRB098 16818 HLH 51889 b

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

 

 

A BILL FOR

 

HB5545LRB098 16818 HLH 51889 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    "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 who suffers from a
4permanent physical or mental impairment resulting from
5disease, an injury, a functional disorder, or a congenital
6condition that renders the person incapable of adequately
7providing for his or her own health or personal care.
8    "Equalized assessed value" means the assessed value as
9equalized by the Illinois Department of Revenue.
10    "Household" means the applicant, the spouse of the
11applicant, and all persons using the residence of the applicant
12as their principal place of residence.
13    "Household income" means the combined income of the members
14of a household for the calendar year preceding the taxable
15year. Notwithstanding any other provision of law, "household
16income" does not include wages paid to a member of the
17household who is a disabled person.
18    "Income" has the same meaning as provided in Section 3.07
19of the Senior Citizens and Disabled Persons Property Tax Relief
20Act, except that, beginning in assessment year 2001, "income"
21does not include veteran's benefits.
22    "Internal Revenue Code of 1986" means the United States
23Internal Revenue Code of 1986 or any successor law or laws
24relating to federal income taxes in effect for the year
25preceding the taxable year.
26    "Life care facility that qualifies as a cooperative" means

 

 

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1a facility as defined in Section 2 of the Life Care Facilities
2Act.
3    "Maximum income limitation" means:
4        (1) $35,000 prior to taxable year 1999;
5        (2) $40,000 in taxable years 1999 through 2003;
6        (3) $45,000 in taxable years 2004 through 2005;
7        (4) $50,000 in taxable years 2006 and 2007; and
8        (5) $55,000 in taxable year 2008 and thereafter.
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 this
18Section.
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 senior citizens
23assessment freeze homestead exemption is granted for real
24property that is improved with a permanent structure that is
25occupied as a residence by an applicant who (i) is 65 years of
26age 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 property,
3and (iv) is an owner of record of the property or has a legal or
4equitable interest in the property as evidenced by a written
5instrument. This homestead exemption shall also apply to a
6leasehold 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 a
11legal 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 of
15the exemption for all taxable years is the equalized assessed
16value 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 equalized
21assessed value of the residence in the taxable year for which
22application is made minus the base amount; and (ii) for taxable
23year 2006, the amount of the exemption is as follows:
24        (1) For an applicant who has a household income of
25    $45,000 or less, the amount of the exemption is the
26    equalized assessed value of the residence in the taxable

 

 

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1    year for which application is made minus the base amount.
2        (2) For an applicant who has a household income
3    exceeding $45,000 but not exceeding $46,250, the amount of
4    the exemption is (i) the equalized assessed value of the
5    residence in the taxable year for which application is made
6    minus the base amount (ii) multiplied by 0.8.
7        (3) For an applicant who has a household income
8    exceeding $46,250 but not exceeding $47,500, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.6.
12        (4) For an applicant who has a household income
13    exceeding $47,500 but not exceeding $48,750, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is made
16    minus the base amount (ii) multiplied by 0.4.
17        (5) For an applicant who has a household income
18    exceeding $48,750 but not exceeding $50,000, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is made
21    minus the base amount (ii) multiplied by 0.2.
22    When the applicant is a surviving spouse of an applicant
23for a prior year for the same residence for which an exemption
24under this Section has been granted, the base year and base
25amount for that residence are the same as for the applicant for
26the prior year.

 

 

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

 

 

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1Section and an applicant then becomes a resident of a facility
2licensed under the Assisted Living and Shared Housing Act, the
3Nursing Home Care Act, the Specialized Mental Health
4Rehabilitation Act of 2013, or the ID/DD Community Care Act,
5the exemption shall be granted in subsequent years so long as
6the residence (i) continues to be occupied by the qualified
7applicant's spouse or (ii) if remaining unoccupied, is still
8owned by the qualified applicant for the homestead exemption.
9    Beginning January 1, 1997, when an individual dies who
10would have qualified for an exemption under this Section, and
11the surviving spouse does not independently qualify for this
12exemption because of age, the exemption under this Section
13shall be granted to the surviving spouse for the taxable year
14preceding and the taxable year of the death, provided that,
15except for age, the surviving spouse meets all other
16qualifications for the granting of this exemption for those
17years.
18    When married persons maintain separate residences, the
19exemption provided for in this Section may be claimed by only
20one of such persons and for only one residence.
21    For taxable year 1994 only, in counties having less than
223,000,000 inhabitants, to receive the exemption, a person shall
23submit an application by February 15, 1995 to the Chief County
24Assessment Officer of the county in which the property is
25located. In counties having 3,000,000 or more inhabitants, for
26taxable year 1994 and all subsequent taxable years, to receive

 

 

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1the exemption, a person may submit an application to the Chief
2County Assessment Officer of the county in which the property
3is located during such period as may be specified by the Chief
4County Assessment Officer. The Chief County Assessment Officer
5in counties of 3,000,000 or more inhabitants shall annually
6give notice of the application period by mail or by
7publication. In counties having less than 3,000,000
8inhabitants, beginning with taxable year 1995 and thereafter,
9to receive the exemption, a person shall submit an application
10by July 1 of each taxable year to the Chief County Assessment
11Officer of the county in which the property is located. A
12county may, by ordinance, establish a date for submission of
13applications that is different than July 1. The applicant shall
14submit with the application an affidavit of the applicant's
15total household income, age, marital status (and if married the
16name and address of the applicant's spouse, if known), and
17principal dwelling place of members of the household on January
181 of the taxable year. The Department shall establish, by rule,
19a method for verifying the accuracy of affidavits filed by
20applicants under this Section, and the Chief County Assessment
21Officer may conduct audits of any taxpayer claiming an
22exemption under this Section to verify that the taxpayer is
23eligible to receive the exemption. Each application shall
24contain or be verified by a written declaration that it is made
25under the penalties of perjury. A taxpayer's signing a
26fraudulent application under this Act is perjury, as defined in

 

 

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1Section 32-2 of the Criminal Code of 2012. The applications
2shall be clearly marked as applications for the Senior Citizens
3Assessment Freeze Homestead Exemption and must contain a notice
4that any taxpayer who receives the exemption is subject to an
5audit by the Chief County Assessment Officer.
6    Notwithstanding any other provision to the contrary, in
7counties having fewer than 3,000,000 inhabitants, if an
8applicant fails to file the application required by this
9Section in a timely manner and this failure to file is due to a
10mental or physical condition sufficiently severe so as to
11render the applicant incapable of filing the application in a
12timely manner, the Chief County Assessment Officer may extend
13the filing deadline for a period of 30 days after the applicant
14regains the capability to file the application, but in no case
15may the filing deadline be extended beyond 3 months of the
16original filing deadline. In order to receive the extension
17provided in this paragraph, the applicant shall provide the
18Chief County Assessment Officer with a signed statement from
19the applicant's physician stating the nature and extent of the
20condition, that, in the physician's opinion, the condition was
21so severe that it rendered the applicant incapable of filing
22the application in a timely manner, and the date on which the
23applicant regained the capability to file the application.
24    Beginning January 1, 1998, notwithstanding any other
25provision to the contrary, in counties having fewer than
263,000,000 inhabitants, if an applicant fails to file the

 

 

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1application required by this Section in a timely manner and
2this failure to file is due to a mental or physical condition
3sufficiently severe so as to render the applicant incapable of
4filing the application in a timely manner, the Chief County
5Assessment Officer may extend the filing deadline for a period
6of 3 months. In order to receive the extension provided in this
7paragraph, the applicant shall provide the Chief County
8Assessment Officer with a signed statement from the applicant's
9physician stating the nature and extent of the condition, and
10that, in the physician's opinion, the condition was so severe
11that it rendered the applicant incapable of filing the
12application in a timely manner.
13    In counties having less than 3,000,000 inhabitants, if an
14applicant was denied an exemption in taxable year 1994 and the
15denial occurred due to an error on the part of an assessment
16official, or his or her agent or employee, then beginning in
17taxable year 1997 the applicant's base year, for purposes of
18determining the amount of the exemption, shall be 1993 rather
19than 1994. In addition, in taxable year 1997, the applicant's
20exemption shall also include an amount equal to (i) the amount
21of any exemption denied to the applicant in taxable year 1995
22as a result of using 1994, rather than 1993, as the base year,
23(ii) the amount of any exemption denied to the applicant in
24taxable year 1996 as a result of using 1994, rather than 1993,
25as the base year, and (iii) the amount of the exemption
26erroneously denied for taxable year 1994.

 

 

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1    For purposes of this Section, a person who will be 65 years
2of age during the current taxable year shall be eligible to
3apply for the homestead exemption during that taxable year.
4Application shall be made during the application period in
5effect for the county of his or her residence.
6    The Chief County Assessment Officer may determine the
7eligibility of a life care facility that qualifies as a
8cooperative to receive the benefits provided by this Section by
9use of an affidavit, application, visual inspection,
10questionnaire, or other reasonable method in order to insure
11that the tax savings resulting from the exemption are credited
12by the management firm to the apportioned tax liability of each
13qualifying resident. The Chief County Assessment Officer may
14request reasonable proof that the management firm has so
15credited that exemption.
16    Except as provided in this Section, all information
17received by the chief county assessment officer or the
18Department from applications filed under this Section, or from
19any investigation conducted under the provisions of this
20Section, shall be confidential, except for official purposes or
21pursuant to official procedures for collection of any State or
22local tax or enforcement of any civil or criminal penalty or
23sanction imposed by this Act or by any statute or ordinance
24imposing a State or local tax. Any person who divulges any such
25information in any manner, except in accordance with a proper
26judicial order, is guilty of a Class A misdemeanor.

 

 

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1    Nothing contained in this Section shall prevent the
2Director or chief county assessment officer from publishing or
3making available reasonable statistics concerning the
4operation of the exemption contained in this Section in which
5the contents of claims are grouped into aggregates in such a
6way that information contained in any individual claim shall
7not be disclosed.
8    (d) Each Chief County Assessment Officer shall annually
9publish a notice of availability of the exemption provided
10under this Section. The notice shall be published at least 60
11days but no more than 75 days prior to the date on which the
12application must be submitted to the Chief County Assessment
13Officer of the county in which the property is located. The
14notice shall appear in a newspaper of general circulation in
15the county.
16    Notwithstanding Sections 6 and 8 of the State Mandates Act,
17no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
20eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
2198-104, eff. 7-22-13.)