093_SB0466eng

 
SB466 Engrossed                      LRB093 10668 SJM 11009 b

 1        AN ACT regarding disabled persons.

 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    Sections 14-20 and 15-172 as follows:

 6        (35 ILCS 200/14-20)
 7        Sec. 14-20.  Certificate of error; counties of less  than
 8    3,000,000.   In   any   county   with   less  than  3,000,000
 9    inhabitants, if, at any time before judgment or order of sale
10    is entered in any proceeding to  collect  or  to  enjoin  the
11    collection   of  taxes  based  upon  any  assessment  of  any
12    property, the chief county assessment  officer  discovers  an
13    error  or  mistake  in  the  assessment (other than errors of
14    judgment as to the valuation of  the  property),  he  or  she
15    shall  issue to the person erroneously assessed a certificate
16    setting forth the nature of the error and the cause or causes
17    of  the  error.  In  any  county  with  less  than  3,000,000
18    inhabitants, if an owner fails to file an application for the
19    Senior  Citizens  and  Disabled  Persons  Assessment   Freeze
20    Homestead  Exemption  provided  in  Section 15-172 during the
21    previous assessment year and qualifies for the exemption, the
22    Chief County Assessment Officer pursuant to this Section,  or
23    the  Board of Review pursuant to Section 16-75, shall issue a
24    certificate  of  error  setting  forth  the  correct  taxable
25    valuation of the property.  The  certificate,  when  properly
26    endorsed  by  the  majority  of  the board of review, showing
27    their concurrence, and not otherwise, may be used in evidence
28    in  any  court  of  competent  jurisdiction,  and   when   so
29    introduced  in  evidence,  shall  become  a part of the court
30    record and shall not be removed from the files except  on  an
31    order of the court.
 
SB466 Engrossed             -2-      LRB093 10668 SJM 11009 b
 1    (Source: P.A. 90-552, eff. 12-12-97; 91-377, eff. 7-30-99.)

 2        (35 ILCS 200/15-172)
 3        Sec.   15-172.   Senior  Citizens  and  Disabled  Persons
 4    Assessment Freeze Homestead Exemption.
 5        (a)  This Section may be cited as the Senior Citizens and
 6    Disabled Persons Assessment Freeze Homestead Exemption.
 7        (b)  As used in this Section:
 8        "Applicant"  means  an  individual  who  has   filed   an
 9    application under this Section.
10        "Base  amount"  means  the  base  year equalized assessed
11    value of  the  residence  plus  the  first  year's  equalized
12    assessed  value of any added improvements which increased the
13    assessed value of the residence after the base year.
14        "Base year" means the taxable year prior to  the  taxable
15    year  for which the applicant first qualifies and applies for
16    the exemption provided that in the  prior  taxable  year  the
17    property  was  improved  with  a permanent structure that was
18    occupied as a residence by the applicant who was  liable  for
19    paying real property taxes on the property and who was either
20    (i)  an  owner  of  record  of  the  property or had legal or
21    equitable interest in the property as evidenced by a  written
22    instrument  or  (ii)  had  a legal or equitable interest as a
23    lessee in the parcel  of  property  that  was  single  family
24    residence.  If  in  any subsequent taxable year for which the
25    applicant  applies  and  qualifies  for  the  exemption   the
26    equalized  assessed  value  of the residence is less than the
27    equalized assessed value in the existing base year  (provided
28    that  such  equalized  assessed  value  is  not  based  on an
29    assessed value that results from a temporary irregularity  in
30    the  property that reduces the assessed value for one or more
31    taxable years),  then  that  subsequent  taxable  year  shall
32    become  the  base  year  until a new base year is established
33    under the terms of this paragraph.   For  taxable  year  1999
 
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 1    only,  the  Chief  County Assessment Officer shall review (i)
 2    all  taxable  years  for  which  the  applicant  applied  and
 3    qualified for the exemption and (ii) the existing base year.
 4    The assessment officer shall select as the new base year  the
 5    year  with  the lowest equalized assessed value. An equalized
 6    assessed value that  is  based  on  an  assessed  value  that
 7    results  from  a  temporary irregularity in the property that
 8    reduces the assessed value for  one  or  more  taxable  years
 9    shall  not be considered the lowest equalized assessed value.
10    The selected year shall be the base  year  for  taxable  year
11    1999  and  thereafter  until  a  new base year is established
12    under the terms of this paragraph.
13        "Chief  County  Assessment  Officer"  means  the   County
14    Assessor  or Supervisor of Assessments of the county in which
15    the property is located.
16        "Disabled person" means a person unable to engage in  any
17    substantial   gainful  activity  by  reason  of  a  medically
18    determinable physical or mental impairment that  (i)  can  be
19    expected  to  result  in  death  or (ii) has lasted or can be
20    expected to last for a continuous period of not less than  12
21    months.   Disabled  persons  applying for the exemption under
22    this Section must submit  proof  of  the  disability  in  the
23    manner  prescribed  by  the  chief county assessment officer.
24    Proof that an applicant is  eligible  to  receive  disability
25    benefits  under  the  federal Social Security Act constitutes
26    proof of disability for purposes of this  Section.   Issuance
27    of  an  Illinois  Disabled  Person Identification Card to the
28    applicant stating that the  possessor  is  under  a  Class  2
29    disability,   as  defined  in  Section  4A  of  the  Illinois
30    Identification Card Act, constitutes proof that the person is
31    a disabled person for purposes of this Section.
32        "Equalized assessed value" means the  assessed  value  as
33    equalized by the Illinois Department of Revenue.
34        "Household"  means  the  applicant,  the  spouse  of  the
 
SB466 Engrossed             -4-      LRB093 10668 SJM 11009 b
 1    applicant,  and  all  persons  using  the  residence  of  the
 2    applicant as their principal place of residence.
 3        "Household  income"  means  the  combined  income  of the
 4    members of a household for the calendar  year  preceding  the
 5    taxable year.
 6        "Income" has the same meaning as provided in Section 3.07
 7    of  the  Senior  Citizens  and  Disabled Persons Property Tax
 8    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
 9    beginning  in assessment year 2001, "income" does not include
10    veteran's benefits.
11        "Internal Revenue Code of 1986" means the  United  States
12    Internal  Revenue  Code  of 1986 or any successor law or laws
13    relating to federal income  taxes  in  effect  for  the  year
14    preceding the taxable year.
15        "Life  care  facility  that  qualifies  as a cooperative"
16    means a facility as defined in Section 2  of  the  Life  Care
17    Facilities Act.
18        "Residence"   means  the  principal  dwelling  place  and
19    appurtenant structures used for residential purposes in  this
20    State  occupied  on  January  1  of  the  taxable  year  by a
21    household and so much of the surrounding  land,  constituting
22    the  parcel  upon which the dwelling place is situated, as is
23    used for residential purposes. If the Chief County Assessment
24    Officer has established a specific legal  description  for  a
25    portion  of  property  constituting  the residence, then that
26    portion of property shall be deemed  the  residence  for  the
27    purposes of this Section.
28        "Taxable  year"  means  the calendar year during which ad
29    valorem property taxes payable in the  next  succeeding  year
30    are levied.
31        (c)  Beginning  in  (1)  taxable  year 1994, for a senior
32    citizens and (2) taxable year 2003, for disabled persons,  an
33    assessment  freeze  homestead  exemption  is granted for real
34    property that is improved with a permanent structure that  is
 
SB466 Engrossed             -5-      LRB093 10668 SJM 11009 b
 1    occupied  as  a residence by an applicant who (i) is 65 years
 2    of age or older, or disabled, during the taxable  year,  (ii)
 3    has  a  household  income of $35,000 or less prior to taxable
 4    year 1999 or  $40,000  or  less  in  taxable  year  1999  and
 5    thereafter, (iii) is liable for paying real property taxes on
 6    the  property, and (iv) is an owner of record of the property
 7    or has a legal or  equitable  interest  in  the  property  as
 8    evidenced  by  a written instrument. This homestead exemption
 9    shall also apply to a  leasehold  interest  in  a  parcel  of
10    property improved with a permanent structure that is a single
11    family  residence that is occupied as a residence by a person
12    who (i) is 65 years of age or older, or disabled, during  the
13    taxable  year, (ii) has a household income of $35,000 or less
14    prior to taxable year 1999 or $40,000 or less in taxable year
15    1999 and thereafter, (iii) has a legal or equitable ownership
16    interest in the property as lessee, and (iv)  is  liable  for
17    the payment of real property taxes on that property.
18        The  amount  of  this  exemption  shall  be the equalized
19    assessed value of the residence in the taxable year for which
20    application is made minus the base amount.
21        When the applicant is a surviving spouse of an  applicant
22    for  a  prior  year  for  the  same  residence  for  which an
23    exemption under this Section has been granted, the base  year
24    and  base  amount  for that residence are the same as for the
25    applicant for the prior year.
26        Each year at the time the assessment books are  certified
27    to  the County Clerk, the Board of Review or Board of Appeals
28    shall give to the County Clerk a list of the assessed  values
29    of  improvements on each parcel qualifying for this exemption
30    that were added after the base year for this parcel and  that
31    increased the assessed value of the property.
32        In  the  case of land improved with an apartment building
33    owned and operated as a cooperative or a building that  is  a
34    life  care  facility  that  qualifies  as  a cooperative, the
 
SB466 Engrossed             -6-      LRB093 10668 SJM 11009 b
 1    maximum reduction from the equalized assessed  value  of  the
 2    property  is  limited to the sum of the reductions calculated
 3    for each unit occupied as a residence by a person or  persons
 4    65  years  of  age  or  older,  or disabled, with a household
 5    income of $35,000 or less  prior  to  taxable  year  1999  or
 6    $40,000  or  less  in taxable year 1999 and thereafter who is
 7    liable, by contract with the owner or owners of  record,  for
 8    paying  real  property  taxes  on  the property and who is an
 9    owner of record of a  legal  or  equitable  interest  in  the
10    cooperative   apartment  building,  other  than  a  leasehold
11    interest. In the instance of a cooperative where a  homestead
12    exemption   has   been   granted   under  this  Section,  the
13    cooperative association or its management firm  shall  credit
14    the  savings  resulting  from  that  exemption  only  to  the
15    apportioned  tax liability of the owner who qualified for the
16    exemption.  Any person who willfully refuses to  credit  that
17    savings to an owner who qualifies for the exemption is guilty
18    of a Class B misdemeanor.
19        When  a  homestead  exemption has been granted under this
20    Section and  an  applicant  then  becomes  a  resident  of  a
21    facility  licensed  under  the  Nursing  Home  Care  Act, the
22    exemption shall be granted in subsequent years so long as the
23    residence (i) continues  to  be  occupied  by  the  qualified
24    applicant's  spouse or (ii) if remaining unoccupied, is still
25    owned by the qualified applicant for the homestead exemption.
26        Beginning January 1, 1997 for senior citizens and January
27    1, 2004 for disabled persons, when  an  individual  dies  who
28    would have qualified for an exemption under this Section, and
29    the  surviving spouse does not independently qualify for this
30    exemption because of  age  or  nondisability,  the  exemption
31    under  this  Section shall be granted to the surviving spouse
32    for the taxable year preceding and the taxable  year  of  the
33    death,  provided  that,  except for age or nondisability, the
34    surviving spouse  meets  all  other  qualifications  for  the
 
SB466 Engrossed             -7-      LRB093 10668 SJM 11009 b
 1    granting of this exemption for those years.
 2        When  married  persons  maintain separate residences, the
 3    exemption provided for in this Section may be claimed by only
 4    one of such persons and for only one residence.
 5        For taxable year 1994 only, in counties having less  than
 6    3,000,000  inhabitants,  to  receive  the exemption, a person
 7    shall submit an application by February 15, 1995 to the Chief
 8    County Assessment Officer of the county in which the property
 9    is  located.   In   counties   having   3,000,000   or   more
10    inhabitants, for taxable year 1994 and all subsequent taxable
11    years,  to  receive  the  exemption,  a  person may submit an
12    application to the Chief County  Assessment  Officer  of  the
13    county in which the property is located during such period as
14    may be specified by the Chief County Assessment Officer.  The
15    Chief  County  Assessment Officer in counties of 3,000,000 or
16    more  inhabitants  shall  annually   give   notice   of   the
17    application  period  by  mail or by publication.  In counties
18    having  less  than  3,000,000  inhabitants,  beginning   with
19    taxable year 1995 and thereafter, to receive the exemption, a
20    person  shall submit an application by July 1 of each taxable
21    year to the Chief County Assessment Officer of the county  in
22    which  the  property is located.  A county may, by ordinance,
23    establish a date  for  submission  of  applications  that  is
24    different  than  July  1. The applicant shall submit with the
25    application an affidavit of the applicant's  total  household
26    income,  age,  marital  status  (and  if married the name and
27    address of the applicant's spouse, if known), disability  (if
28    applying  for  the  exemption  as  a  disabled  person),  and
29    principal  dwelling  place  of  members  of  the household on
30    January  1  of  the  taxable  year.  The   Department   shall
31    establish,  by  rule,  a method for verifying the accuracy of
32    affidavits  filed  by  applicants  under  this  Section.  The
33    applications shall be clearly marked as applications for  the
34    Senior   Citizens  and  Disabled  Persons  Assessment  Freeze
 
SB466 Engrossed             -8-      LRB093 10668 SJM 11009 b
 1    Homestead Exemption.
 2        Notwithstanding any other provision to the  contrary,  in
 3    counties  having  fewer  than  3,000,000  inhabitants,  if an
 4    applicant fails to file  the  application  required  by  this
 5    Section in a timely manner and this failure to file is due to
 6    a  mental  or physical condition sufficiently severe so as to
 7    render the applicant incapable of filing the application in a
 8    timely manner, the Chief County Assessment Officer may extend
 9    the filing deadline  for  a  period  of  30  days  after  the
10    applicant regains the capability to file the application, but
11    in  no  case  may  the  filing  deadline be extended beyond 3
12    months of the original filing deadline.  In order to  receive
13    the extension provided in this paragraph, the applicant shall
14    provide  the  Chief  County  Assessment Officer with a signed
15    statement from the applicant's physician stating  the  nature
16    and  extent  of  the  condition,  that,  in  the  physician's
17    opinion,  the  condition  was  so severe that it rendered the
18    applicant incapable of filing the  application  in  a  timely
19    manner,  and  the  date  on  which the applicant regained the
20    capability to file the application.
21        Beginning January  1,  1998,  notwithstanding  any  other
22    provision  to  the  contrary,  in  counties having fewer than
23    3,000,000 inhabitants, if an  applicant  fails  to  file  the
24    application  required  by this Section in a timely manner and
25    this failure to file is due to a mental or physical condition
26    sufficiently severe so as to render the  applicant  incapable
27    of  filing  the  application  in  a  timely manner, the Chief
28    County Assessment Officer may extend the filing deadline  for
29    a  period  of  3  months.   In order to receive the extension
30    provided in this paragraph, the applicant shall  provide  the
31    Chief  County Assessment Officer with a signed statement from
32    the applicant's physician stating the nature  and  extent  of
33    the  condition,  and  that,  in  the physician's opinion, the
34    condition was  so  severe  that  it  rendered  the  applicant
 
SB466 Engrossed             -9-      LRB093 10668 SJM 11009 b
 1    incapable of filing the application in a timely manner.
 2        In counties having less than 3,000,000 inhabitants, if an
 3    applicant  was  denied  an exemption in taxable year 1994 and
 4    the denial occurred due  to  an  error  on  the  part  of  an
 5    assessment  official,  or  his or her agent or employee, then
 6    beginning in taxable year 1997 the applicant's base year, for
 7    purposes of determining the amount of the exemption, shall be
 8    1993 rather than 1994. In addition, in taxable year 1997, the
 9    applicant's exemption shall also include an amount  equal  to
10    (i)  the  amount  of any exemption denied to the applicant in
11    taxable year 1995 as a result  of  using  1994,  rather  than
12    1993,  as  the  base  year,  (ii) the amount of any exemption
13    denied to the applicant in taxable year 1996 as a  result  of
14    using 1994, rather than 1993, as the base year, and (iii) the
15    amount  of  the exemption erroneously denied for taxable year
16    1994.
17        For purposes of this Section, a person  who  will  be  65
18    years  of  age or is disabled during the current taxable year
19    shall be eligible to apply for the homestead exemption during
20    that taxable year.  Application  shall  be  made  during  the
21    application  period  in  effect  for the county of his or her
22    residence.
23        The Chief County Assessment  Officer  may  determine  the
24    eligibility  of  a  life  care  facility  that qualifies as a
25    cooperative to receive the benefits provided by this  Section
26    by  use  of  an  affidavit,  application,  visual inspection,
27    questionnaire, or other reasonable method in order to  insure
28    that  the  tax  savings  resulting  from  the  exemption  are
29    credited  by  the  management  firm  to  the  apportioned tax
30    liability of each  qualifying  resident.   The  Chief  County
31    Assessment  Officer  may  request  reasonable  proof that the
32    management firm has so credited that exemption.
33        Except as  provided  in  this  Section,  all  information
34    received  by  the  chief  county  assessment  officer  or the
 
SB466 Engrossed             -10-     LRB093 10668 SJM 11009 b
 1    Department from applications filed  under  this  Section,  or
 2    from any investigation conducted under the provisions of this
 3    Section,  shall be confidential, except for official purposes
 4    or pursuant to official  procedures  for  collection  of  any
 5    State  or  local  tax or enforcement of any civil or criminal
 6    penalty or sanction imposed by this Act or by any statute  or
 7    ordinance  imposing  a  State  or  local  tax. Any person who
 8    divulges any  such  information  in  any  manner,  except  in
 9    accordance with a proper judicial order, is guilty of a Class
10    A misdemeanor.
11        Nothing  contained  in  this  Section  shall  prevent the
12    Director or chief county assessment officer  from  publishing
13    or  making  available  reasonable  statistics  concerning the
14    operation of the exemption contained in this Section in which
15    the contents of claims are grouped into aggregates in such  a
16    way  that information contained in any individual claim shall
17    not be disclosed.
18        (d)  Each Chief County Assessment Officer shall  annually
19    publish  a  notice  of availability of the exemption provided
20    under this Section.  The notice shall be published  at  least
21    60  days  but no more than 75 days prior to the date on which
22    the  application  must  be  submitted  to  the  Chief  County
23    Assessment Officer of the county in  which  the  property  is
24    located.   The  notice shall appear in a newspaper of general
25    circulation in the county.
26        (e)  Notwithstanding  Sections  6  and  8  of  the  State
27    Mandates Act, no reimbursement by the State is  required  for
28    the implementation of any mandate created by this Section.
29    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
30    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
31    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
32    eff. 6-30-99; 91-819, eff. 6-13-00.)

33        Section 90.  The State Mandates Act is amended by  adding
 
SB466 Engrossed             -11-     LRB093 10668 SJM 11009 b
 1    Section 8.27 as follows:

 2        (30 ILCS 805/8.27 new)
 3        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
 4    and 8 of this Act, no reimbursement by the State is  required
 5    for  the  implementation  of  any  mandate created by Section
 6    15-172 of the Property Tax Code.

 7        Section 99.  Effective date.  This Act takes effect  upon
 8    becoming law.