State of Illinois
90th General Assembly
Legislation

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90_SB0036

      35 ILCS 200/15-172
      30 ILCS 805/8.21 new
          Amends the Property Tax Code.  Requires that  each  Chief
      County  Assessment Officer shall annually publish a notice of
      availability  of  the  Senior  Citizens   Assessment   Freeze
      Homestead  Exemption.   Provides  that  this  notice shall be
      published at least 60 days but no more than 75 days prior  to
      the  date  on  which the application must be submitted to the
      Chief County Assessment Officer.  Provides  that  the  notice
      shall  appear  in  a  newspaper of general circulation in the
      county.  Exempt from reimbursement under the  State  Mandates
      Act.
                                                     LRB9000051KRpk
                                               LRB9000051KRpk
 1        AN ACT in relation to taxes, amending named Acts.
 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.
29        "Chief  County  Assessment  Officer"  means  the   County
30    Assessor  or Supervisor of Assessments of the county in which
31    the property is located.
                            -2-                LRB9000051KRpk
 1        "Equalized assessed value" means the  assessed  value  as
 2    equalized by the Illinois Department of Revenue.
 3        "Household"  means  the  applicant,  the  spouse  of  the
 4    applicant,  and  all  persons  using  the  residence  of  the
 5    applicant as their principal place of residence.
 6        "Household  income"  means  the  combined  income  of the
 7    members of a household for the calendar  year  preceding  the
 8    taxable year.
 9        "Income" has the same meaning as provided in Section 3.07
10    of  the  Senior  Citizens  and  Disabled Persons Property Tax
11    Relief and Pharmaceutical Assistance Act.
12        "Internal Revenue Code of 1986" means the  United  States
13    Internal  Revenue  Code  of 1986 or any successor law or laws
14    relating to federal income  taxes  in  effect  for  the  year
15    preceding the taxable year.
16        "Life  care  facility  that  qualifies  as a cooperative"
17    means a facility as defined in Section 2  of  the  Life  Care
18    Facilities Act.
19        "Residence"   means  the  principal  dwelling  place  and
20    appurtenant structures used for residential purposes in  this
21    State  occupied  on  January  1  of  the  taxable  year  by a
22    household and so much of the surrounding  land,  constituting
23    the  parcel  upon which the dwelling place is situated, as is
24    used for residential purposes. If the Chief County Assessment
25    Officer has established a specific legal  description  for  a
26    portion  of  property  constituting  the residence, then that
27    portion of property shall be deemed  the  residence  for  the
28    purposes of this Section.
29        "Taxable  year"  means  the calendar year during which ad
30    valorem property taxes payable in the  next  succeeding  year
31    are levied.
32        (c)  Beginning  in  taxable  year 1994, a senior citizens
33    assessment freeze homestead exemption  is  granted  for  real
34    property  that is improved with a permanent structure that is
                            -3-                LRB9000051KRpk
 1    occupied as a residence by an applicant who (i) is  65  years
 2    of age or older during the taxable year, (ii) has a household
 3    income  of  $35,000  or less, (iii) is liable for paying real
 4    property taxes on the property,  and  (iv)  is  an  owner  of
 5    record  of  the property or has a legal or equitable interest
 6    in the property as evidenced by a  written  instrument.  This
 7    homestead  exemption shall also apply to a leasehold interest
 8    in a parcel of property improved with a  permanent  structure
 9    that  is  a  single  family  residence  that is occupied as a
10    residence by a person who (i) is 65 years  of  age  or  older
11    during  the  taxable  year,  (ii)  has  a household income of
12    $35,000 or less, (iii) has a  legal  or  equitable  ownership
13    interest  in  the  property as lessee, and (iv) is liable for
14    the payment of real property taxes on that property.
15        The amount of  this  exemption  shall  be  the  equalized
16    assessed value of the residence in the taxable year for which
17    application is made minus the base amount.
18        When  the applicant is a surviving spouse of an applicant
19    for a  prior  year  for  the  same  residence  for  which  an
20    exemption  under this Section has been granted, the base year
21    and base amount for that residence are the same  as  for  the
22    applicant for the prior year.
23        Each  year at the time the assessment books are certified
24    to the County Clerk, the Board of Review or Board of  Appeals
25    shall  give to the County Clerk a list of the assessed values
26    of improvements on each parcel qualifying for this  exemption
27    that  were added after the base year for this parcel and that
28    increased the assessed value of the property.
29        In the case of land improved with an  apartment  building
30    owned  and  operated as a cooperative or a building that is a
31    life care facility  that  qualifies  as  a  cooperative,  the
32    maximum  reduction  from  the equalized assessed value of the
33    property is limited to the sum of the  reductions  calculated
34    for  each unit occupied as a residence by a person or persons
                            -4-                LRB9000051KRpk
 1    65 years of age or older with a household income  of  $35,000
 2    or  less  who is liable, by contract with the owner or owners
 3    of record, for paying real property taxes on the property and
 4    who is an owner of record of a legal or equitable interest in
 5    the cooperative apartment building, other  than  a  leasehold
 6    interest.  In the instance of a cooperative where a homestead
 7    exemption  has  been  granted   under   this   Section,   the
 8    cooperative  association  or its management firm shall credit
 9    the  savings  resulting  from  that  exemption  only  to  the
10    apportioned tax liability of the owner who qualified for  the
11    exemption.   Any  person who willfully refuses to credit that
12    savings to an owner who qualifies for the exemption is guilty
13    of a Class B 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
                            -5-                LRB9000051KRpk
 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    earlier than July 1, but in no event shall a county establish
19    a date for submission of applications that is later than July
20    1.   The  applicant  shall  submit  with  the  application an
21    affidavit of the applicant's  total  household  income,  age,
22    marital  status  (and  if married the name and address of the
23    applicant's spouse, if known), and principal  dwelling  place
24    of members of the household on January 1 of the taxable year.
25    The  Department  shall  establish,  by  rule,  a  method  for
26    verifying  the  accuracy  of  affidavits  filed by applicants
27    under this Section. The applications shall be clearly  marked
28    as  applications  for  the  Senior Citizens Assessment Freeze
29    Homestead Exemption.
30        In counties having less than 3,000,000 inhabitants, if an
31    applicant was denied an exemption in taxable  year  1994  and
32    the  denial  occurred  due  to  an  error  on  the part of an
33    assessment official, or his or her agent  or  employee,  then
34    beginning in taxable year 1997 the applicant's base year, for
                            -6-                LRB9000051KRpk
 1    purposes of determining the amount of the exemption, shall be
 2    1993 rather than 1994. In addition, in taxable year 1997, the
 3    applicant's  exemption  shall also include an amount equal to
 4    (i) the amount of any exemption denied to  the  applicant  in
 5    taxable  year  1995  as  a  result of using 1994, rather than
 6    1993, as the base year, (ii)  the  amount  of  any  exemption
 7    denied  to  the applicant in taxable year 1996 as a result of
 8    using 1994, rather than 1993, as the base year, and (iii) the
 9    amount of the exemption erroneously denied for  taxable  year
10    1994.
11        For  purposes  of  this  Section, a person who will be 65
12    years of  age  during  the  current  taxable  year  shall  be
13    eligible  to  apply  for  the homestead exemption during that
14    taxable  year.   Application  shall  be   made   during   the
15    application  period  in  effect  for the county of his or her
16    residence.
17        The Chief County Assessment  Officer  may  determine  the
18    eligibility  of  a  life  care  facility  that qualifies as a
19    cooperative to receive the benefits provided by this  Section
20    by  use  of  an  affidavit,  application,  visual inspection,
21    questionnaire, or other reasonable method in order to  insure
22    that  the  tax  savings  resulting  from  the  exemption  are
23    credited  by  the  management  firm  to  the  apportioned tax
24    liability of each  qualifying  resident.   The  Chief  County
25    Assessment  Officer  may  request  reasonable  proof that the
26    management firm has so credited that exemption.
27        Except as  provided  in  this  Section,  all  information
28    received  by  the  chief  county  assessment  officer  or the
29    Department from applications filed  under  this  Section,  or
30    from any investigation conducted under the provisions of this
31    Section,  shall be confidential, except for official purposes
32    or pursuant to official  procedures  for  collection  of  any
33    State  or  local  tax or enforcement of any civil or criminal
34    penalty or sanction imposed by this Act or by any statute  or
                            -7-                LRB9000051KRpk
 1    ordinance  imposing  a  State  or  local  tax. Any person who
 2    divulges any  such  information  in  any  manner,  except  in
 3    accordance with a proper judicial order, is guilty of a Class
 4    A misdemeanor.
 5        Nothing  contained  in  this  Section  shall  prevent the
 6    Director or chief county assessment officer  from  publishing
 7    or  making  available  reasonable  statistics  concerning the
 8    operation of the exemption contained in this Section in which
 9    the contents of claims are grouped into aggregates in such  a
10    way  that information contained in any individual claim shall
11    not be disclosed.
12        (d)  Each Chief County Assessment Officer shall  annually
13    publish  a  notice  of availability of the exemption provided
14    under this Section.  The notice shall be published  at  least
15    60  days  but no more than 75 days prior to the date on which
16    the  application  must  be  submitted  to  the  Chief  County
17    Assessment Officer of the county in  which  the  property  is
18    located.   The  notice shall appear in a newspaper of general
19    circulation in the county.
20    (Source: P.A. 88-669, eff. 11-29-94;  88-682,  eff.  1-13-95;
21    89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 89-557, eff. 1-1-97;
22    89-581, eff. 1-1-97; 89-626, eff. 8-9-96; revised 9-3-96.)
23        Section  10.  The State Mandates Act is amended by adding
24    Section 8.21 as follows:
25        (30 ILCS 805/8.21 new)
26        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
27    and  8 of this Act, no reimbursement by the State is required
28    for  the  implementation  of  any  mandate  created  by  this
29    amendatory Act of 1997.

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