Illinois General Assembly - Full Text of HB2440
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Full Text of HB2440  93rd General Assembly

HB2440 93rd General Assembly


093_HB2440

 
                                     LRB093 06341 SJM 06460 b

 1        AN ACT concerning taxes.

 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  may  be  cited as the Senior Citizens
10    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
 
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 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.
 
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 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 (or up to
28    $50,000 in taxable year 2003 and thereafter, at the option of
29    each county as provided in subsection (e)), (iii)  is  liable
30    for  paying  real property taxes on the property, and (iv) is
31    an owner of  record  of  the  property  or  has  a  legal  or
32    equitable  interest in the property as evidenced by a written
33    instrument. This homestead exemption shall also  apply  to  a
34    leasehold  interest  in  a parcel of property improved with a
 
                            -4-      LRB093 06341 SJM 06460 b
 1    permanent structure that is a single family residence that is
 2    occupied as a residence by a person who (i) is  65  years  of
 3    age  or  older  during the taxable year, (ii) has a household
 4    income of $35,000 or less  prior  to  taxable  year  1999  or
 5    $40,000 or less in taxable year 1999 and thereafter (or up to
 6    $50,000 in taxable year 2003 and thereafter, at the option of
 7    each county as provided in subsection (e)), (iii) has a legal
 8    or  equitable  ownership  interest in the property as lessee,
 9    and (iv) is liable for the payment of real property taxes  on
10    that property.
11        The  amount  of  this  exemption  shall  be the equalized
12    assessed value of the residence in the taxable year for which
13    application is made minus the base amount.
14        When the applicant is a surviving spouse of an  applicant
15    for  a  prior  year  for  the  same  residence  for  which an
16    exemption under this Section has been granted, the base  year
17    and  base  amount  for that residence are the same as for the
18    applicant for the prior year.
19        Each year at the time the assessment books are  certified
20    to  the County Clerk, the Board of Review or Board of Appeals
21    shall give to the County Clerk a list of the assessed  values
22    of  improvements on each parcel qualifying for this exemption
23    that were added after the base year for this parcel and  that
24    increased the assessed value of the property.
25        In  the  case of land improved with an apartment building
26    owned and operated as a cooperative or a building that  is  a
27    life  care  facility  that  qualifies  as  a cooperative, the
28    maximum reduction from the equalized assessed  value  of  the
29    property  is  limited to the sum of the reductions calculated
30    for each unit occupied as a residence by a person or  persons
31    (i) 65 years of age or older, (ii) with a household income of
32    $35,000 or less prior to taxable year 1999 or $40,000 or less
33    in  taxable  year  1999  and  thereafter (or up to $50,000 in
34    taxable year 2003 and  thereafter,  at  the  option  of  each
 
                            -5-      LRB093 06341 SJM 06460 b
 1    county  as  provided in subsection (e)), (iii) who is liable,
 2    by contract with the owner or owners of  record,  for  paying
 3    real property taxes on the property, and (iv) who is an owner
 4    of record of a legal or equitable interest in the cooperative
 5    apartment  building,  other than a leasehold interest. In the
 6    instance of a cooperative where  a  homestead  exemption  has
 7    been  granted under this Section, the cooperative association
 8    or its management firm shall  credit  the  savings  resulting
 9    from  that exemption only to the apportioned tax liability of
10    the owner who qualified for the exemption.   Any  person  who
11    willfully  refuses  to  credit  that  savings to an owner who
12    qualifies  for  the  exemption  is  guilty  of  a   Class   B
13    misdemeanor.
14        When  a  homestead  exemption has been granted under this
15    Section and  an  applicant  then  becomes  a  resident  of  a
16    facility  licensed  under  the  Nursing  Home  Care  Act, the
17    exemption shall be granted in subsequent years so long as the
18    residence (i) continues  to  be  occupied  by  the  qualified
19    applicant's  spouse or (ii) if remaining unoccupied, is still
20    owned by the qualified applicant for the homestead exemption.
21        Beginning January 1, 1997, when an  individual  dies  who
22    would have qualified for an exemption under this Section, and
23    the  surviving spouse does not independently qualify for this
24    exemption because of age, the exemption  under  this  Section
25    shall be granted to the surviving spouse for the taxable year
26    preceding  and  the taxable year of the death, provided that,
27    except  for  age,  the  surviving  spouse  meets  all   other
28    qualifications  for  the granting of this exemption for those
29    years.
30        When married persons maintain  separate  residences,  the
31    exemption provided for in this Section may be claimed by only
32    one of such persons and for only one residence.
33        For  taxable year 1994 only, in counties having less than
34    3,000,000 inhabitants, to receive  the  exemption,  a  person
 
                            -6-      LRB093 06341 SJM 06460 b
 1    shall submit an application by February 15, 1995 to the Chief
 2    County Assessment Officer of the county in which the property
 3    is   located.    In   counties   having   3,000,000  or  more
 4    inhabitants, for taxable year 1994 and all subsequent taxable
 5    years, to receive the  exemption,  a  person  may  submit  an
 6    application  to  the  Chief  County Assessment Officer of the
 7    county in which the property is located during such period as
 8    may be specified by the Chief County Assessment Officer.  The
 9    Chief County Assessment Officer in counties of  3,000,000  or
10    more   inhabitants   shall   annually   give  notice  of  the
11    application period by mail or by  publication.   In  counties
12    having   less  than  3,000,000  inhabitants,  beginning  with
13    taxable year 1995 and thereafter, to receive the exemption, a
14    person shall submit an application by July 1 of each  taxable
15    year  to the Chief County Assessment Officer of the county in
16    which the property is located.  A county may,  by  ordinance,
17    establish  a  date  for  submission  of  applications that is
18    different than July 1. The applicant shall  submit  with  the
19    application  an  affidavit of the applicant's total household
20    income, age, marital status (and  if  married  the  name  and
21    address  of  the applicant's spouse, if known), and principal
22    dwelling place of members of the household on  January  1  of
23    the  taxable year. The Department shall establish, by rule, a
24    method for verifying the  accuracy  of  affidavits  filed  by
25    applicants  under  this  Section.  The  applications shall be
26    clearly  marked  as  applications  for  the  Senior  Citizens
27    Assessment Freeze Homestead Exemption.
28        Notwithstanding any other provision to the  contrary,  in
29    counties  having  fewer  than  3,000,000  inhabitants,  if an
30    applicant fails to file  the  application  required  by  this
31    Section in a timely manner and this failure to file is due to
32    a  mental  or physical condition sufficiently severe so as to
33    render the applicant incapable of filing the application in a
34    timely manner, the Chief County Assessment Officer may extend
 
                            -7-      LRB093 06341 SJM 06460 b
 1    the filing deadline  for  a  period  of  30  days  after  the
 2    applicant regains the capability to file the application, but
 3    in  no  case  may  the  filing  deadline be extended beyond 3
 4    months of the original filing deadline.  In order to  receive
 5    the extension provided in this paragraph, the applicant shall
 6    provide  the  Chief  County  Assessment Officer with a signed
 7    statement from the applicant's physician stating  the  nature
 8    and  extent  of  the  condition,  that,  in  the  physician's
 9    opinion,  the  condition  was  so severe that it rendered the
10    applicant incapable of filing the  application  in  a  timely
11    manner,  and  the  date  on  which the applicant regained the
12    capability to file the application.
13        Beginning January  1,  1998,  notwithstanding  any  other
14    provision  to  the  contrary,  in  counties having fewer than
15    3,000,000 inhabitants, if an  applicant  fails  to  file  the
16    application  required  by this Section in a timely manner and
17    this failure to file is due to a mental or physical condition
18    sufficiently severe so as to render the  applicant  incapable
19    of  filing  the  application  in  a  timely manner, the Chief
20    County Assessment Officer may extend the filing deadline  for
21    a  period  of  3  months.   In order to receive the extension
22    provided in this paragraph, the applicant shall  provide  the
23    Chief  County Assessment Officer with a signed statement from
24    the applicant's physician stating the nature  and  extent  of
25    the  condition,  and  that,  in  the physician's opinion, the
26    condition was  so  severe  that  it  rendered  the  applicant
27    incapable of filing the application in a timely manner.
28        In counties having less than 3,000,000 inhabitants, if an
29    applicant  was  denied  an exemption in taxable year 1994 and
30    the denial occurred due  to  an  error  on  the  part  of  an
31    assessment  official,  or  his or her agent or employee, then
32    beginning in taxable year 1997 the applicant's base year, for
33    purposes of determining the amount of the exemption, shall be
34    1993 rather than 1994. In addition, in taxable year 1997, the
 
                            -8-      LRB093 06341 SJM 06460 b
 1    applicant's exemption shall also include an amount  equal  to
 2    (i)  the  amount  of any exemption denied to the applicant in
 3    taxable year 1995 as a result  of  using  1994,  rather  than
 4    1993,  as  the  base  year,  (ii) the amount of any exemption
 5    denied to the applicant in taxable year 1996 as a  result  of
 6    using 1994, rather than 1993, as the base year, and (iii) the
 7    amount  of  the exemption erroneously denied for taxable year
 8    1994.
 9        For purposes of this Section, a person  who  will  be  65
10    years  of  age  during  the  current  taxable  year  shall be
11    eligible to apply for the  homestead  exemption  during  that
12    taxable   year.    Application   shall  be  made  during  the
13    application period in effect for the county  of  his  or  her
14    residence.
15        The  Chief  County  Assessment  Officer may determine the
16    eligibility of a life  care  facility  that  qualifies  as  a
17    cooperative  to receive the benefits provided by this Section
18    by use  of  an  affidavit,  application,  visual  inspection,
19    questionnaire,  or other reasonable method in order to insure
20    that  the  tax  savings  resulting  from  the  exemption  are
21    credited by  the  management  firm  to  the  apportioned  tax
22    liability  of  each  qualifying  resident.   The Chief County
23    Assessment Officer may  request  reasonable  proof  that  the
24    management firm has so credited that exemption.
25        Except  as  provided  in  this  Section,  all information
26    received by  the  chief  county  assessment  officer  or  the
27    Department  from  applications  filed  under this Section, or
28    from any investigation conducted under the provisions of this
29    Section, shall be confidential, except for official  purposes
30    or  pursuant  to  official  procedures  for collection of any
31    State or local tax or enforcement of any  civil  or  criminal
32    penalty  or sanction imposed by this Act or by any statute or
33    ordinance imposing a State  or  local  tax.  Any  person  who
34    divulges  any  such  information  in  any  manner,  except in
 
                            -9-      LRB093 06341 SJM 06460 b
 1    accordance with a proper judicial order, is guilty of a Class
 2    A misdemeanor.
 3        Nothing contained  in  this  Section  shall  prevent  the
 4    Director  or  chief county assessment officer from publishing
 5    or making  available  reasonable  statistics  concerning  the
 6    operation of the exemption contained in this Section in which
 7    the  contents of claims are grouped into aggregates in such a
 8    way that information contained in any individual claim  shall
 9    not be disclosed.
10        (d)  Each  Chief County Assessment Officer shall annually
11    publish a notice of availability of  the  exemption  provided
12    under  this  Section.  The notice shall be published at least
13    60 days but no more than 75 days prior to the date  on  which
14    the  application  must  be  submitted  to  the  Chief  County
15    Assessment  Officer  of  the  county in which the property is
16    located.  The notice shall appear in a newspaper  of  general
17    circulation in the county.
18        (e)   Each   county   may  opt  to  increase  the  income
19    eligibility limits  for  the  exemption  under  this  Section
20    beginning  with  taxable  year  2003.  To increase the income
21    eligibility limit to a household income of up to $50,000  for
22    taxable  year  2003 and thereafter, the corporate authorities
23    of the county must  adopt  an  ordinance  or  resolution,  as
24    appropriate,   approving  the  increased  income  eligibility
25    limits for the senior citizens  assessment  freeze  homestead
26    exemption program in that county.
27    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
28    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
29    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
30    eff. 6-30-99; 91-819, eff. 6-13-00.)

31        Section 99.  Effective date.  This Act takes effect  upon
32    becoming law.