093_HB3825

                                     LRB093 12488 SJM 17676 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
 
                            -2-      LRB093 12488 SJM 17676 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.
 
                            -3-      LRB093 12488 SJM 17676 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 years year 1999 through 2003, and
28    $45,000 or less in taxable year 2004 and thereafter, (iii) is
29    liable for paying real property taxes on  the  property,  and
30    (iv)  is an owner of record of the property or has a legal or
31    equitable interest in the property as evidenced by a  written
32    instrument.  This  homestead  exemption shall also apply to a
33    leasehold interest in a parcel of property  improved  with  a
34    permanent structure that is a single family residence that is
 
                            -4-      LRB093 12488 SJM 17676 b
 1    occupied  as  a  residence by a person who (i) is 65 years of
 2    age or older during the taxable year, (ii)  has  a  household
 3    income  of  $35,000  or  less  prior to taxable year 1999, or
 4    $40,000 or less in taxable years year 1999 through 2003,  and
 5    $45,000  or  less  in taxable year 2004 and thereafter, (iii)
 6    has a legal or equitable ownership interest in  the  property
 7    as  lessee,  and  (iv)  is  liable  for  the  payment of real
 8    property taxes on that property.
 9        The amount of  this  exemption  shall  be  the  equalized
10    assessed value of the residence in the taxable year for which
11    application is made minus the base amount.
12        When  the applicant is a surviving spouse of an applicant
13    for a  prior  year  for  the  same  residence  for  which  an
14    exemption  under this Section has been granted, the base year
15    and base amount for that residence are the same  as  for  the
16    applicant for the prior year.
17        Each  year at the time the assessment books are certified
18    to the County Clerk, the Board of Review or Board of  Appeals
19    shall  give to the County Clerk a list of the assessed values
20    of improvements on each parcel qualifying for this  exemption
21    that  were added after the base year for this parcel and that
22    increased the assessed value of the property.
23        In the case of land improved with an  apartment  building
24    owned  and  operated as a cooperative or a building that is a
25    life care facility  that  qualifies  as  a  cooperative,  the
26    maximum  reduction  from  the equalized assessed value of the
27    property is limited to the sum of the  reductions  calculated
28    for  each unit occupied as a residence by a person or persons
29    (i) 65 years of age or older, (ii) with a household income of
30    $35,000 or less prior to taxable year 1999,or $40,000 or less
31    in taxable years year 1999 through 2003, and $45,000 or  less
32    in  taxable year 2004 and thereafter, (iii) who is liable, by
33    contract with the owner or owners of record, for paying  real
34    property  taxes  on the property, and (iv) who is an owner of
 
                            -5-      LRB093 12488 SJM 17676 b
 1    record of a legal or equitable interest  in  the  cooperative
 2    apartment  building,  other than a leasehold interest. In the
 3    instance of a cooperative where  a  homestead  exemption  has
 4    been  granted under this Section, the cooperative association
 5    or its management firm shall  credit  the  savings  resulting
 6    from  that exemption only to the apportioned tax liability of
 7    the owner who qualified for the exemption.   Any  person  who
 8    willfully  refuses  to  credit  that  savings to an owner who
 9    qualifies  for  the  exemption  is  guilty  of  a   Class   B
10    misdemeanor.
11        When  a  homestead  exemption has been granted under this
12    Section and  an  applicant  then  becomes  a  resident  of  a
13    facility  licensed  under  the  Nursing  Home  Care  Act, the
14    exemption shall be granted in subsequent years so long as the
15    residence (i) continues  to  be  occupied  by  the  qualified
16    applicant's  spouse or (ii) if remaining unoccupied, is still
17    owned by the qualified applicant for the homestead exemption.
18        Beginning January 1, 1997, when an  individual  dies  who
19    would have qualified for an exemption under this Section, and
20    the  surviving spouse does not independently qualify for this
21    exemption because of age, the exemption  under  this  Section
22    shall be granted to the surviving spouse for the taxable year
23    preceding  and  the taxable year of the death, provided that,
24    except  for  age,  the  surviving  spouse  meets  all   other
25    qualifications  for  the granting of this exemption for those
26    years.
27        When married persons maintain  separate  residences,  the
28    exemption provided for in this Section may be claimed by only
29    one of such persons and for only one residence.
30        For  taxable year 1994 only, in counties having less than
31    3,000,000 inhabitants, to receive  the  exemption,  a  person
32    shall submit an application by February 15, 1995 to the Chief
33    County Assessment Officer of the county in which the property
34    is   located.    In   counties   having   3,000,000  or  more
 
                            -6-      LRB093 12488 SJM 17676 b
 1    inhabitants, for taxable year 1994 and all subsequent taxable
 2    years, to receive the  exemption,  a  person  may  submit  an
 3    application  to  the  Chief  County Assessment Officer of the
 4    county in which the property is located during such period as
 5    may be specified by the Chief County Assessment Officer.  The
 6    Chief County Assessment Officer in counties of  3,000,000  or
 7    more   inhabitants   shall   annually   give  notice  of  the
 8    application period by mail or by  publication.   In  counties
 9    having   less  than  3,000,000  inhabitants,  beginning  with
10    taxable year 1995 and thereafter, to receive the exemption, a
11    person shall submit an application by July 1 of each  taxable
12    year  to the Chief County Assessment Officer of the county in
13    which the property is located.  A county may,  by  ordinance,
14    establish  a  date  for  submission  of  applications that is
15    different than July 1. The applicant shall  submit  with  the
16    application  an  affidavit of the applicant's total household
17    income, age, marital status (and  if  married  the  name  and
18    address  of  the applicant's spouse, if known), and principal
19    dwelling place of members of the household on  January  1  of
20    the  taxable year. The Department shall establish, by rule, a
21    method for verifying the  accuracy  of  affidavits  filed  by
22    applicants  under  this  Section.  The  applications shall be
23    clearly  marked  as  applications  for  the  Senior  Citizens
24    Assessment Freeze Homestead Exemption.
25        Notwithstanding any other provision to the  contrary,  in
26    counties  having  fewer  than  3,000,000  inhabitants,  if an
27    applicant fails to file  the  application  required  by  this
28    Section in a timely manner and this failure to file is due to
29    a  mental  or physical condition sufficiently severe so as to
30    render the applicant incapable of filing the application in a
31    timely manner, the Chief County Assessment Officer may extend
32    the filing deadline  for  a  period  of  30  days  after  the
33    applicant regains the capability to file the application, but
34    in  no  case  may  the  filing  deadline be extended beyond 3
 
                            -7-      LRB093 12488 SJM 17676 b
 1    months of the original filing deadline.  In order to  receive
 2    the extension provided in this paragraph, the applicant shall
 3    provide  the  Chief  County  Assessment Officer with a signed
 4    statement from the applicant's physician stating  the  nature
 5    and  extent  of  the  condition,  that,  in  the  physician's
 6    opinion,  the  condition  was  so severe that it rendered the
 7    applicant incapable of filing the  application  in  a  timely
 8    manner,  and  the  date  on  which the applicant regained the
 9    capability to file the application.
10        Beginning January  1,  1998,  notwithstanding  any  other
11    provision  to  the  contrary,  in  counties having fewer than
12    3,000,000 inhabitants, if an  applicant  fails  to  file  the
13    application  required  by this Section in a timely manner and
14    this failure to file is due to a mental or physical condition
15    sufficiently severe so as to render the  applicant  incapable
16    of  filing  the  application  in  a  timely manner, the Chief
17    County Assessment Officer may extend the filing deadline  for
18    a  period  of  3  months.   In order to receive the extension
19    provided in this paragraph, the applicant shall  provide  the
20    Chief  County Assessment Officer with a signed statement from
21    the applicant's physician stating the nature  and  extent  of
22    the  condition,  and  that,  in  the physician's opinion, the
23    condition was  so  severe  that  it  rendered  the  applicant
24    incapable of filing the application in a timely manner.
25        In counties having less than 3,000,000 inhabitants, if an
26    applicant  was  denied  an exemption in taxable year 1994 and
27    the denial occurred due  to  an  error  on  the  part  of  an
28    assessment  official,  or  his or her agent or employee, then
29    beginning in taxable year 1997 the applicant's base year, for
30    purposes of determining the amount of the exemption, shall be
31    1993 rather than 1994. In addition, in taxable year 1997, the
32    applicant's exemption shall also include an amount  equal  to
33    (i)  the  amount  of any exemption denied to the applicant in
34    taxable year 1995 as a result  of  using  1994,  rather  than
 
                            -8-      LRB093 12488 SJM 17676 b
 1    1993,  as  the  base  year,  (ii) the amount of any exemption
 2    denied to the applicant in taxable year 1996 as a  result  of
 3    using 1994, rather than 1993, as the base year, and (iii) the
 4    amount  of  the exemption erroneously denied for taxable year
 5    1994.
 6        For purposes of this Section, a person  who  will  be  65
 7    years  of  age  during  the  current  taxable  year  shall be
 8    eligible to apply for the  homestead  exemption  during  that
 9    taxable   year.    Application   shall  be  made  during  the
10    application period in effect for the county  of  his  or  her
11    residence.
12        The  Chief  County  Assessment  Officer may determine the
13    eligibility of a life  care  facility  that  qualifies  as  a
14    cooperative  to receive the benefits provided by this Section
15    by use  of  an  affidavit,  application,  visual  inspection,
16    questionnaire,  or other reasonable method in order to insure
17    that  the  tax  savings  resulting  from  the  exemption  are
18    credited by  the  management  firm  to  the  apportioned  tax
19    liability  of  each  qualifying  resident.   The Chief County
20    Assessment Officer may  request  reasonable  proof  that  the
21    management firm has so credited that exemption.
22        Except  as  provided  in  this  Section,  all information
23    received by  the  chief  county  assessment  officer  or  the
24    Department  from  applications  filed  under this Section, or
25    from any investigation conducted under the provisions of this
26    Section, shall be confidential, except for official  purposes
27    or  pursuant  to  official  procedures  for collection of any
28    State or local tax or enforcement of any  civil  or  criminal
29    penalty  or sanction imposed by this Act or by any statute or
30    ordinance imposing a State  or  local  tax.  Any  person  who
31    divulges  any  such  information  in  any  manner,  except in
32    accordance with a proper judicial order, is guilty of a Class
33    A misdemeanor.
34        Nothing contained  in  this  Section  shall  prevent  the
 
                            -9-      LRB093 12488 SJM 17676 b
 1    Director  or  chief county assessment officer from publishing
 2    or making  available  reasonable  statistics  concerning  the
 3    operation of the exemption contained in this Section in which
 4    the  contents of claims are grouped into aggregates in such a
 5    way that information contained in any individual claim  shall
 6    not be disclosed.
 7        (d)  Each  Chief County Assessment Officer shall annually
 8    publish a notice of availability of  the  exemption  provided
 9    under  this  Section.  The notice shall be published at least
10    60 days but no more than 75 days prior to the date  on  which
11    the  application  must  be  submitted  to  the  Chief  County
12    Assessment  Officer  of  the  county in which the property is
13    located.  The notice shall appear in a newspaper  of  general
14    circulation in the county.
15        (e)  Notwithstanding  Sections  6  and  8  of  the  State
16    Mandates  Act,  no reimbursement by the State is required for
17    the implementation of any mandate created by this Section.
18    (Source: P.A.  90-14,  eff.  7-1-97;  90-204,  eff.  7-25-97;
19    90-523,  eff.  11-13-97;  90-524,  eff.  1-1-98; 90-531, eff.
20    1-1-98; 90-655, eff. 7-30-98;  91-45,  eff.  6-30-99;  91-56,
21    eff. 6-30-99; 91-819, eff. 6-13-00.)

22        Section  90.  The State Mandates Act is amended by adding
23    Section 8.27 as follows:

24        (30 ILCS 805/8.27 new)
25        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
26    and  8 of this Act, no reimbursement by the State is required
27    for the implementation of any mandate created by  the  Senior
28    Citizens  Assessment Freeze Homestead Exemption under Section
29    15-172 of the Property Tax Code.

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