99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3337

 

Introduced 2/19/2016, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for taxable year 2016 and thereafter, the amount of the senior citizens assessment freeze homestead exemption shall be the greater of (i) the amount of the exemption otherwise calculated under that Section of the Code or (ii) $2,000. Effective immediately.


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

 

 

A BILL FOR

 

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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    "Equalized assessed value" means the assessed value as
4equalized by the Illinois Department of Revenue.
5    "Household" means the applicant, the spouse of the
6applicant, and all persons using the residence of the applicant
7as their principal place of residence.
8    "Household income" means the combined income of the members
9of a household for the calendar year preceding the taxable
10year.
11    "Income" has the same meaning as provided in Section 3.07
12of the Senior Citizens and Persons with Disabilities Property
13Tax Relief Act, except that, beginning in assessment year 2001,
14"income" does not include veteran's benefits.
15    "Internal Revenue Code of 1986" means the United States
16Internal Revenue Code of 1986 or any successor law or laws
17relating to federal income taxes in effect for the year
18preceding the taxable year.
19    "Life care facility that qualifies as a cooperative" means
20a facility as defined in Section 2 of the Life Care Facilities
21Act.
22    "Maximum income limitation" means:
23        (1) $35,000 prior to taxable year 1999;
24        (2) $40,000 in taxable years 1999 through 2003;
25        (3) $45,000 in taxable years 2004 through 2005;
26        (4) $50,000 in taxable years 2006 and 2007; and

 

 

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1        (5) $55,000 in taxable year 2008 and thereafter.
2    "Residence" means the principal dwelling place and
3appurtenant structures used for residential purposes in this
4State occupied on January 1 of the taxable year by a household
5and so much of the surrounding land, constituting the parcel
6upon which the dwelling place is situated, as is used for
7residential purposes. If the Chief County Assessment Officer
8has established a specific legal description for a portion of
9property constituting the residence, then that portion of
10property shall be deemed the residence for the purposes of this
11Section.
12    "Taxable year" means the calendar year during which ad
13valorem property taxes payable in the next succeeding year are
14levied.
15    (c) Beginning in taxable year 1994, a senior citizens
16assessment freeze homestead exemption is granted for real
17property that is improved with a permanent structure that is
18occupied as a residence by an applicant who (i) is 65 years of
19age or older during the taxable year, (ii) has a household
20income that does not exceed the maximum income limitation,
21(iii) is liable for paying real property taxes on the property,
22and (iv) is an owner of record of the property or has a legal or
23equitable interest in the property as evidenced by a written
24instrument. This homestead exemption shall also apply to a
25leasehold interest in a parcel of property improved with a
26permanent structure that is a single family residence that is

 

 

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1occupied as a residence by a person who (i) is 65 years of age
2or older during the taxable year, (ii) has a household income
3that does not exceed the maximum income limitation, (iii) has a
4legal or equitable ownership interest in the property as
5lessee, and (iv) is liable for the payment of real property
6taxes on that property.
7    In counties of 3,000,000 or more inhabitants, the amount of
8the exemption for all taxable years is the equalized assessed
9value of the residence in the taxable year for which
10application is made minus the base amount. In all other
11counties, the amount of the exemption is as follows: (i)
12through taxable year 2005 and for taxable year 2007 and
13thereafter, the amount of this exemption shall be the equalized
14assessed value of the residence in the taxable year for which
15application is made minus the base amount; and (ii) for taxable
16year 2006, the amount of the exemption is as follows:
17        (1) For an applicant who has a household income of
18    $45,000 or less, the amount of the exemption is the
19    equalized assessed value of the residence in the taxable
20    year for which application is made minus the base amount.
21        (2) For an applicant who has a household income
22    exceeding $45,000 but not exceeding $46,250, the amount of
23    the exemption is (i) the equalized assessed value of the
24    residence in the taxable year for which application is made
25    minus the base amount (ii) multiplied by 0.8.
26        (3) For an applicant who has a household income

 

 

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1    exceeding $46,250 but not exceeding $47,500, the amount of
2    the exemption is (i) the equalized assessed value of the
3    residence in the taxable year for which application is made
4    minus the base amount (ii) multiplied by 0.6.
5        (4) For an applicant who has a household income
6    exceeding $47,500 but not exceeding $48,750, the amount of
7    the exemption is (i) the equalized assessed value of the
8    residence in the taxable year for which application is made
9    minus the base amount (ii) multiplied by 0.4.
10        (5) For an applicant who has a household income
11    exceeding $48,750 but not exceeding $50,000, the amount of
12    the exemption is (i) the equalized assessed value of the
13    residence in the taxable year for which application is made
14    minus the base amount (ii) multiplied by 0.2.
15    Notwithstanding any other provision of law, for taxable
16year 2016 and thereafter, in all counties, the amount of the
17exemption shall be the greater of (i) the amount of the
18exemption otherwise calculated under this Section or (ii)
19$2,000.
20    When the applicant is a surviving spouse of an applicant
21for a prior year for the same residence for which an exemption
22under this Section has been granted, the base year and base
23amount for that residence are the same as for the applicant for
24the prior year.
25    Each year at the time the assessment books are certified to
26the County Clerk, the Board of Review or Board of Appeals shall

 

 

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

 

 

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1Nursing Home Care Act, the Specialized Mental Health
2Rehabilitation Act of 2013, the ID/DD Community Care Act, or
3the MC/DD Act, the exemption shall be granted in subsequent
4years so long as the residence (i) continues to be occupied by
5the qualified applicant's spouse or (ii) if remaining
6unoccupied, is still owned by the qualified applicant for the
7homestead exemption.
8    Beginning January 1, 1997, when an individual dies who
9would have qualified for an exemption under this Section, and
10the surviving spouse does not independently qualify for this
11exemption because of age, the exemption under this Section
12shall be granted to the surviving spouse for the taxable year
13preceding and the taxable year of the death, provided that,
14except for age, the surviving spouse meets all other
15qualifications for the granting of this exemption for those
16years.
17    When married persons maintain separate residences, the
18exemption provided for in this Section may be claimed by only
19one of such persons and for only one residence.
20    For taxable year 1994 only, in counties having less than
213,000,000 inhabitants, to receive the exemption, a person shall
22submit an application by February 15, 1995 to the Chief County
23Assessment Officer of the county in which the property is
24located. In counties having 3,000,000 or more inhabitants, for
25taxable year 1994 and all subsequent taxable years, to receive
26the exemption, a person may submit an application to the Chief

 

 

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1County Assessment Officer of the county in which the property
2is located during such period as may be specified by the Chief
3County Assessment Officer. The Chief County Assessment Officer
4in counties of 3,000,000 or more inhabitants shall annually
5give notice of the application period by mail or by
6publication. In counties having less than 3,000,000
7inhabitants, beginning with taxable year 1995 and thereafter,
8to receive the exemption, a person shall submit an application
9by July 1 of each taxable year to the Chief County Assessment
10Officer of the county in which the property is located. A
11county may, by ordinance, establish a date for submission of
12applications that is different than July 1. The applicant shall
13submit with the application an affidavit of the applicant's
14total household income, age, marital status (and if married the
15name and address of the applicant's spouse, if known), and
16principal dwelling place of members of the household on January
171 of the taxable year. The Department shall establish, by rule,
18a method for verifying the accuracy of affidavits filed by
19applicants under this Section, and the Chief County Assessment
20Officer may conduct audits of any taxpayer claiming an
21exemption under this Section to verify that the taxpayer is
22eligible to receive the exemption. Each application shall
23contain or be verified by a written declaration that it is made
24under the penalties of perjury. A taxpayer's signing a
25fraudulent application under this Act is perjury, as defined in
26Section 32-2 of the Criminal Code of 2012. The applications

 

 

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1shall be clearly marked as applications for the Senior Citizens
2Assessment Freeze Homestead Exemption and must contain a notice
3that any taxpayer who receives the exemption is subject to an
4audit by the Chief County Assessment Officer.
5    Notwithstanding any other provision to the contrary, in
6counties having fewer than 3,000,000 inhabitants, if an
7applicant fails to file the application required by this
8Section in a timely manner and this failure to file is due to a
9mental or physical condition sufficiently severe so as to
10render the applicant incapable of filing the application in a
11timely manner, the Chief County Assessment Officer may extend
12the filing deadline for a period of 30 days after the applicant
13regains the capability to file the application, but in no case
14may the filing deadline be extended beyond 3 months of the
15original filing deadline. In order to receive the extension
16provided in this paragraph, the applicant shall provide the
17Chief County Assessment Officer with a signed statement from
18the applicant's physician stating the nature and extent of the
19condition, that, in the physician's opinion, the condition was
20so severe that it rendered the applicant incapable of filing
21the application in a timely manner, and the date on which the
22applicant regained the capability to file the application.
23    Beginning January 1, 1998, notwithstanding any other
24provision to the contrary, in counties having fewer than
253,000,000 inhabitants, if an applicant fails to file the
26application required by this Section in a timely manner and

 

 

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1this failure to file is due to a mental or physical condition
2sufficiently severe so as to render the applicant incapable of
3filing the application in a timely manner, the Chief County
4Assessment Officer may extend the filing deadline for a period
5of 3 months. In order to receive the extension provided in this
6paragraph, the applicant shall provide the Chief County
7Assessment Officer with a signed statement from the applicant's
8physician stating the nature and extent of the condition, and
9that, in the physician's opinion, the condition was so severe
10that it rendered the applicant incapable of filing the
11application in a timely manner.
12    In counties having less than 3,000,000 inhabitants, if an
13applicant was denied an exemption in taxable year 1994 and the
14denial occurred due to an error on the part of an assessment
15official, or his or her agent or employee, then beginning in
16taxable year 1997 the applicant's base year, for purposes of
17determining the amount of the exemption, shall be 1993 rather
18than 1994. In addition, in taxable year 1997, the applicant's
19exemption shall also include an amount equal to (i) the amount
20of any exemption denied to the applicant in taxable year 1995
21as a result of using 1994, rather than 1993, as the base year,
22(ii) the amount of any exemption denied to the applicant in
23taxable year 1996 as a result of using 1994, rather than 1993,
24as the base year, and (iii) the amount of the exemption
25erroneously denied for taxable year 1994.
26    For purposes of this Section, a person who will be 65 years

 

 

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

 

 

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1Director or chief county assessment officer from publishing or
2making available reasonable statistics concerning the
3operation of the exemption contained in this Section in which
4the contents of claims are grouped into aggregates in such a
5way that information contained in any individual claim shall
6not be disclosed.
7    (d) Each Chief County Assessment Officer shall annually
8publish a notice of availability of the exemption provided
9under this Section. The notice shall be published at least 60
10days but no more than 75 days prior to the date on which the
11application must be submitted to the Chief County Assessment
12Officer of the county in which the property is located. The
13notice shall appear in a newspaper of general circulation in
14the county.
15    Notwithstanding Sections 6 and 8 of the State Mandates Act,
16no reimbursement by the State is required for the
17implementation of any mandate created by this Section.
18(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
1999-180, eff. 7-29-15; revised 10-21-15.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.