093_HB1949eng

 
HB1949 Engrossed                     LRB093 08620 SJM 08848 b

 1        AN ACT concerning taxation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 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  15-172  may  be  cited  as the Senior
10    Citizens Assessment Freeze Homestead Exemption.
11        (b)  As used in this Section:
12        "Applicant"  means  an  individual  who  has   filed   an
13    application under this Section.
14        "Base  amount"  means  the  base  year equalized assessed
15    value of  the  residence  plus  the  first  year's  equalized
16    assessed  value of any added improvements which increased the
17    assessed value of 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
25    equitable interest in the property as evidenced by a  written
26    instrument  or  (ii)  had  a legal or equitable interest as a
27    lessee in the parcel  of  property  that  was  single  family
28    residence.  If  in  any subsequent taxable year for which the
29    applicant  applies  and  qualifies  for  the  exemption   the
30    equalized  assessed  value  of the residence is less than the
31    equalized assessed value in the existing base year  (provided
 
HB1949 Engrossed            -2-      LRB093 08620 SJM 08848 b
 1    that  such  equalized  assessed  value  is  not  based  on an
 2    assessed value that results from a temporary irregularity  in
 3    the  property that reduces the assessed value for one or more
 4    taxable years),  then  that  subsequent  taxable  year  shall
 5    become  the  base  year  until a new base year is established
 6    under the terms of this paragraph.   For  taxable  year  1999
 7    only,  the  Chief  County Assessment Officer shall review (i)
 8    all  taxable  years  for  which  the  applicant  applied  and
 9    qualified for the exemption and (ii) the existing base year.
10    The assessment officer shall select as the new base year  the
11    year  with  the lowest equalized assessed value. An equalized
12    assessed value that  is  based  on  an  assessed  value  that
13    results  from  a  temporary irregularity in the property that
14    reduces the assessed value for  one  or  more  taxable  years
15    shall  not be considered the lowest equalized assessed value.
16    The selected year shall be the base  year  for  taxable  year
17    1999  and  thereafter  until  a  new base year is established
18    under the terms of this paragraph.
19        "Chief  County  Assessment  Officer"  means  the   County
20    Assessor  or Supervisor of Assessments of the county in which
21    the property is located.
22        "Equalized assessed value" means the  assessed  value  as
23    equalized by the Illinois Department of Revenue.
24        "Household"  means  the  applicant,  the  spouse  of  the
25    applicant,  and  all  persons  using  the  residence  of  the
26    applicant as their principal place of residence.
27        "Household  income"  means  the  combined  income  of the
28    members of a household for the calendar  year  preceding  the
29    taxable year.
30        "Income" has the same meaning as provided in Section 3.07
31    of  the  Senior  Citizens  and  Disabled Persons Property Tax
32    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
33    beginning  in assessment year 2001, "income" does not include
34    veteran's benefits.
 
HB1949 Engrossed            -3-      LRB093 08620 SJM 08848 b
 1        "Internal Revenue Code of 1986" means the  United  States
 2    Internal  Revenue  Code  of 1986 or any successor law or laws
 3    relating to federal income  taxes  in  effect  for  the  year
 4    preceding the taxable year.
 5        "Life  care  facility  that  qualifies  as a cooperative"
 6    means a facility as defined in Section 2  of  the  Life  Care
 7    Facilities Act.
 8        "Residence"   means  the  principal  dwelling  place  and
 9    appurtenant structures used for residential purposes in  this
10    State  occupied  on  January  1  of  the  taxable  year  by a
11    household and so much of the surrounding  land,  constituting
12    the  parcel  upon which the dwelling place is situated, as is
13    used for residential purposes. If the Chief County Assessment
14    Officer has established a specific legal  description  for  a
15    portion  of  property  constituting  the residence, then that
16    portion of property shall be deemed  the  residence  for  the
17    purposes of this Section.
18        "Taxable  year"  means  the calendar year during which ad
19    valorem property taxes payable in the  next  succeeding  year
20    are levied.
21        (c)  Beginning  in  taxable  year 1994, a senior citizens
22    assessment freeze homestead exemption  is  granted  for  real
23    property  that is improved with a permanent structure that is
24    occupied as a residence by an applicant who (i) is  65  years
25    of age or older during the taxable year, (ii) has a household
26    income  of  $35,000  or  less  prior  to taxable year 1999 or
27    $40,000 or less in taxable year 1999 and thereafter, (iii) is
28    liable for paying real property taxes on  the  property,  and
29    (iv)  is an owner of record of the property or has a legal or
30    equitable interest in the property as evidenced by a  written
31    instrument.  This  homestead  exemption shall also apply to a
32    leasehold interest in a parcel of property  improved  with  a
33    permanent structure that is a single family residence that is
34    occupied  as  a  residence by a person who (i) is 65 years of
 
HB1949 Engrossed            -4-      LRB093 08620 SJM 08848 b
 1    age or older during the taxable year, (ii)  has  a  household
 2    income  of  $35,000  or  less  prior  to taxable year 1999 or
 3    $40,000 or less in taxable year 1999  and  thereafter,  (iii)
 4    has  a  legal or equitable ownership interest in the property
 5    as lessee, and  (iv)  is  liable  for  the  payment  of  real
 6    property taxes on that property.
 7        The  amount  of  this  exemption  shall  be the equalized
 8    assessed value of the residence in the taxable year for which
 9    application is made minus the base amount.
10        When the applicant is a surviving spouse of an  applicant
11    for  a  prior  year  for  the  same  residence  for  which an
12    exemption under this Section has been granted, the base  year
13    and  base  amount  for that residence are the same as for the
14    applicant for the prior year.
15        Each year at the time the assessment books are  certified
16    to  the County Clerk, the Board of Review or Board of Appeals
17    shall give to the County Clerk a list of the assessed  values
18    of  improvements on each parcel qualifying for this exemption
19    that were added after the base year for this parcel and  that
20    increased the assessed value of the property.
21        In  the  case of land improved with an apartment building
22    owned and operated as a cooperative or a building that  is  a
23    life  care  facility  that  qualifies  as  a cooperative, the
24    maximum reduction from the equalized assessed  value  of  the
25    property  is  limited to the sum of the reductions calculated
26    for each unit occupied as a residence by a person or  persons
27    65  years  of age or older with a household income of $35,000
28    or less prior to taxable year 1999  or  $40,000  or  less  in
29    taxable  year  1999 and thereafter who is liable, by contract
30    with the owner or owners of record, for paying real  property
31    taxes  on  the  property  and  who is an owner of record of a
32    legal or equitable  interest  in  the  cooperative  apartment
33    building, other than a leasehold interest. In the instance of
34    a  cooperative  where  a homestead exemption has been granted
 
HB1949 Engrossed            -5-      LRB093 08620 SJM 08848 b
 1    under  this  Section,  the  cooperative  association  or  its
 2    management firm shall credit the savings resulting from  that
 3    exemption  only to the apportioned tax liability of the owner
 4    who qualified for the exemption.  Any  person  who  willfully
 5    refuses  to credit that savings to an owner who qualifies for
 6    the exemption is guilty of a Class B misdemeanor.
 7        When a homestead exemption has been  granted  under  this
 8    Section  and  an  applicant  then  becomes  a  resident  of a
 9    facility licensed  under  the  Nursing  Home  Care  Act,  the
10    exemption shall be granted in subsequent years so long as the
11    residence  (i)  continues  to  be  occupied  by the qualified
12    applicant's spouse or (ii) if remaining unoccupied, is  still
13    owned by the qualified applicant for the homestead exemption.
14        Beginning  January  1,  1997, when an individual dies who
15    would have qualified for an exemption under this Section, and
16    the surviving spouse does not independently qualify for  this
17    exemption  because  of  age, the exemption under this Section
18    shall be granted to the surviving spouse for the taxable year
19    preceding and the taxable year of the death,  provided  that,
20    except   for  age,  the  surviving  spouse  meets  all  other
21    qualifications for the granting of this exemption  for  those
22    years.
23        When  married  persons  maintain separate residences, the
24    exemption provided for in this Section may be claimed by only
25    one of such persons and for only one residence.
26        For taxable year 1994 only, in counties having less  than
27    3,000,000  inhabitants,  to  receive  the exemption, a person
28    shall submit an application by February 15, 1995 to the Chief
29    County Assessment Officer of the county in which the property
30    is  located.   In   counties   having   3,000,000   or   more
31    inhabitants, for taxable year 1994 and all subsequent taxable
32    years,  to  receive  the  exemption,  a  person may submit an
33    application to the Chief County  Assessment  Officer  of  the
34    county in which the property is located during such period as
 
HB1949 Engrossed            -6-      LRB093 08620 SJM 08848 b
 1    may be specified by the Chief County Assessment Officer.  The
 2    Chief  County  Assessment Officer in counties of 3,000,000 or
 3    more  inhabitants  shall  annually   give   notice   of   the
 4    application  period  by  mail or by publication.  In counties
 5    having  less  than  3,000,000  inhabitants,  beginning   with
 6    taxable year 1995 and thereafter, to receive the exemption, a
 7    person  shall submit an application by July 1 of each taxable
 8    year to the Chief County Assessment Officer of the county  in
 9    which  the  property is located.  A county may, by ordinance,
10    establish a date  for  submission  of  applications  that  is
11    different  than  July  1. The applicant shall submit with the
12    application an affidavit of the applicant's  total  household
13    income,  age,  marital  status  (and  if married the name and
14    address of the applicant's spouse, if known),  and  principal
15    dwelling  place  of  members of the household on January 1 of
16    the taxable year. The Department shall establish, by rule,  a
17    method  for  verifying  the  accuracy  of affidavits filed by
18    applicants under this  Section.  The  applications  shall  be
19    clearly  marked  as  applications  for  the  Senior  Citizens
20    Assessment Freeze Homestead Exemption.
21        Notwithstanding  any  other provision to the contrary, in
22    counties having  fewer  than  3,000,000  inhabitants,  if  an
23    applicant  fails  to  file  the  application required by this
24    Section in a timely manner and this failure to file is due to
25    a mental or physical condition sufficiently severe so  as  to
26    render the applicant incapable of filing the application in a
27    timely manner, the Chief County Assessment Officer may extend
28    the  filing  deadline  for  a  period  of  30  days after the
29    applicant regains the capability to file the application, but
30    in no case may the  filing  deadline  be  extended  beyond  3
31    months  of the original filing deadline.  In order to receive
32    the extension provided in this paragraph, the applicant shall
33    provide the Chief County Assessment  Officer  with  a  signed
34    statement  from  the applicant's physician stating the nature
 
HB1949 Engrossed            -7-      LRB093 08620 SJM 08848 b
 1    and  extent  of  the  condition,  that,  in  the  physician's
 2    opinion, the condition was so severe  that  it  rendered  the
 3    applicant  incapable  of  filing  the application in a timely
 4    manner, and the date on  which  the  applicant  regained  the
 5    capability to file the application.
 6        Beginning  January  1,  1998,  notwithstanding  any other
 7    provision to the contrary,  in  counties  having  fewer  than
 8    3,000,000  inhabitants,  if  an  applicant  fails to file the
 9    application required by this Section in a timely  manner  and
10    this failure to file is due to a mental or physical condition
11    sufficiently  severe  so as to render the applicant incapable
12    of filing the application  in  a  timely  manner,  the  Chief
13    County  Assessment Officer may extend the filing deadline for
14    a period of 3 months.  In  order  to  receive  the  extension
15    provided  in  this paragraph, the applicant shall provide the
16    Chief County Assessment Officer with a signed statement  from
17    the  applicant's  physician  stating the nature and extent of
18    the condition, and that,  in  the  physician's  opinion,  the
19    condition  was  so  severe  that  it  rendered  the applicant
20    incapable of filing the application in a timely manner.
21        In counties having less than 3,000,000 inhabitants, if an
22    applicant was denied an exemption in taxable  year  1994  and
23    the  denial  occurred  due  to  an  error  on  the part of an
24    assessment official, or his or her agent  or  employee,  then
25    beginning in taxable year 1997 the applicant's base year, for
26    purposes of determining the amount of the exemption, shall be
27    1993 rather than 1994. In addition, in taxable year 1997, the
28    applicant's  exemption  shall also include an amount equal to
29    (i) the amount of any exemption denied to  the  applicant  in
30    taxable  year  1995  as  a  result of using 1994, rather than
31    1993, as the base year, (ii)  the  amount  of  any  exemption
32    denied  to  the applicant in taxable year 1996 as a result of
33    using 1994, rather than 1993, as the base year, and (iii) the
34    amount of the exemption erroneously denied for  taxable  year
 
HB1949 Engrossed            -8-      LRB093 08620 SJM 08848 b
 1    1994.
 2        For  purposes  of  this  Section, a person who will be 65
 3    years of  age  during  the  current  taxable  year  shall  be
 4    eligible  to  apply  for  the homestead exemption during that
 5    taxable  year.   Application  shall  be   made   during   the
 6    application  period  in  effect  for the county of his or her
 7    residence.
 8        The Chief County Assessment  Officer  may  determine  the
 9    eligibility  of  a  life  care  facility  that qualifies as a
10    cooperative to receive the benefits provided by this  Section
11    by  use  of  an  affidavit,  application,  visual inspection,
12    questionnaire, or other reasonable method in order to  insure
13    that  the  tax  savings  resulting  from  the  exemption  are
14    credited  by  the  management  firm  to  the  apportioned tax
15    liability of each  qualifying  resident.   The  Chief  County
16    Assessment  Officer  may  request  reasonable  proof that the
17    management firm has so credited that exemption.
18        Except as  provided  in  this  Section,  all  information
19    received  by  the  chief  county  assessment  officer  or the
20    Department from applications filed  under  this  Section,  or
21    from any investigation conducted under the provisions of this
22    Section,  shall be confidential, except for official purposes
23    or pursuant to official  procedures  for  collection  of  any
24    State  or  local  tax or enforcement of any civil or criminal
25    penalty or sanction imposed by this Act or by any statute  or
26    ordinance  imposing  a  State  or  local  tax. Any person who
27    divulges any  such  information  in  any  manner,  except  in
28    accordance with a proper judicial order, is guilty of a Class
29    A misdemeanor.
30        Nothing  contained  in  this  Section  shall  prevent the
31    Director or chief county assessment officer  from  publishing
32    or  making  available  reasonable  statistics  concerning the
33    operation of the exemption contained in this Section in which
34    the contents of claims are grouped into aggregates in such  a
 
HB1949 Engrossed            -9-      LRB093 08620 SJM 08848 b
 1    way  that information contained in any individual claim shall
 2    not be disclosed.
 3        (d)  Each Chief County Assessment Officer shall  annually
 4    publish  a  notice  of availability of the exemption provided
 5    under this Section.  The notice shall be published  at  least
 6    60  days  but no more than 75 days prior to the date on which
 7    the  application  must  be  submitted  to  the  Chief  County
 8    Assessment Officer of the county in  which  the  property  is
 9    located.   The  notice shall appear in a newspaper of general
10    circulation in the county.
11    (Source: P.A.  90-14,  eff.  7-1-97;  90-204,  eff.  7-25-97;
12    90-523,  eff.  11-13-97;  90-524,  eff.  1-1-98; 90-531, eff.
13    1-1-98; 90-655, eff. 7-30-98;  91-45,  eff.  6-30-99;  91-56,
14    eff. 6-30-99; 91-819, eff. 6-13-00.)