State of Illinois
90th General Assembly
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90_SB0164

      35 ILCS 200/15-172
      30 ILCS 805/8.21 new
          Amends the Senior Citizens  Assessment  Freeze  Homestead
      Exemption  in  the  Property  Tax  Code.   Provides  that the
      household  income  limitation   for   the   senior   citizens
      assessment  freeze  homestead  exemption  shall be subject to
      annual adjustments equal to the  percentage  of  increase  or
      decrease in the previous year in the Consumer Price Index for
      All  Urban  Consumers  for  all items published by the United
      States Department of Labor.  Exempt from reimbursement  under
      the State Mandates Act.  Effective immediately.
                                                     LRB9000004KRpk
                                               LRB9000004KRpk
 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-                LRB9000004KRpk
 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-                LRB9000004KRpk
 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.
 7    Beginning with taxable  year  1998,  the  limitation  on  the
 8    amount  of  the  household  income  of the applicant shall be
 9    subject to annual adjustments  equal  to  the  percentage  of
10    increase  or  decrease  in  the previous calendar year in the
11    Consumer Price Index for All Urban Consumers  for  all  items
12    published  by  the  United  States  Department of Labor. This
13    homestead exemption shall also apply to a leasehold  interest
14    in  a  parcel of property improved with a permanent structure
15    that is a single family  residence  that  is  occupied  as  a
16    residence  by  a  person  who (i) is 65 years of age or older
17    during the taxable year,  (ii)  has  a  household  income  of
18    $35,000  or  less,  (iii)  has a legal or equitable ownership
19    interest in the property as lessee, and (iv)  is  liable  for
20    the   payment  of  real  property  taxes  on  that  property.
21    Beginning with taxable  year  1998,  the  limitation  on  the
22    amount  of  the  household  income  of the applicant shall be
23    subject to annual adjustments  equal  to  the  percentage  of
24    increase  or  decrease  in  the previous calendar year in the
25    Consumer Price Index for All Urban Consumers  for  all  items
26    published by the United States Department of Labor.
27        The  amount  of  this  exemption  shall  be the equalized
28    assessed value of the residence in the taxable year for which
29    application is made minus the base amount.
30        When the applicant is a surviving spouse of an  applicant
31    for  a  prior  year  for  the  same  residence  for  which an
32    exemption under this Section has been granted, the base  year
33    and  base  amount  for that residence are the same as for the
34    applicant for the prior year.
                            -4-                LRB9000004KRpk
 1        Each year at the time the assessment books are  certified
 2    to  the County Clerk, the Board of Review or Board of Appeals
 3    shall give to the County Clerk a list of the assessed  values
 4    of  improvements on each parcel qualifying for this exemption
 5    that were added after the base year for this parcel and  that
 6    increased the assessed value of the property.
 7        In  the  case of land improved with an apartment building
 8    owned and operated as a cooperative or a building that  is  a
 9    life  care  facility  that  qualifies  as  a cooperative, the
10    maximum reduction from the equalized assessed  value  of  the
11    property  is  limited to the sum of the reductions calculated
12    for each unit occupied as a residence by a person or  persons
13    65  years  of age or older with a household income of $35,000
14    or less who is liable, by contract with the owner  or  owners
15    of record, for paying real property taxes on the property and
16    who is an owner of record of a legal or equitable interest in
17    the  cooperative  apartment  building, other than a leasehold
18    interest. In the instance of a cooperative where a  homestead
19    exemption   has   been   granted   under  this  Section,  the
20    cooperative association or its management firm  shall  credit
21    the  savings  resulting  from  that  exemption  only  to  the
22    apportioned  tax liability of the owner who qualified for the
23    exemption.  Any person who willfully refuses to  credit  that
24    savings to an owner who qualifies for the exemption is guilty
25    of a Class B misdemeanor.
26        When  a  homestead  exemption has been granted under this
27    Section and  an  applicant  then  becomes  a  resident  of  a
28    facility  licensed  under  the  Nursing  Home  Care  Act, the
29    exemption shall be granted in subsequent years so long as the
30    residence (i) continues  to  be  occupied  by  the  qualified
31    applicant's  spouse or (ii) if remaining unoccupied, is still
32    owned by the qualified applicant for the homestead exemption.
33        Beginning January 1, 1997, when an  individual  dies  who
34    would have qualified for an exemption under this Section, and
                            -5-                LRB9000004KRpk
 1    the  surviving spouse does not independently qualify for this
 2    exemption because of age, the exemption  under  this  Section
 3    shall be granted to the surviving spouse for the taxable year
 4    preceding  and  the taxable year of the death, provided that,
 5    except  for  age,  the  surviving  spouse  meets  all   other
 6    qualifications  for  the granting of this exemption for those
 7    years.
 8        When married persons maintain  separate  residences,  the
 9    exemption provided for in this Section may be claimed by only
10    one of such persons and for only one residence.
11        For  taxable year 1994 only, in counties having less than
12    3,000,000 inhabitants, to receive  the  exemption,  a  person
13    shall submit an application by February 15, 1995 to the Chief
14    County Assessment Officer of the county in which the property
15    is   located.    In   counties   having   3,000,000  or  more
16    inhabitants, for taxable year 1994 and all subsequent taxable
17    years, to receive the  exemption,  a  person  may  submit  an
18    application  to  the  Chief  County Assessment Officer of the
19    county in which the property is located during such period as
20    may be specified by the Chief County Assessment Officer.  The
21    Chief County Assessment Officer in counties of  3,000,000  or
22    more   inhabitants   shall   annually   give  notice  of  the
23    application period by mail or by  publication.   In  counties
24    having   less  than  3,000,000  inhabitants,  beginning  with
25    taxable year 1995 and thereafter, to receive the exemption, a
26    person shall submit an application by July 1 of each  taxable
27    year  to the Chief County Assessment Officer of the county in
28    which the property is located.  A county may,  by  ordinance,
29    establish  a  date  for  submission  of  applications that is
30    earlier than July 1, but in no event shall a county establish
31    a date for submission of applications that is later than July
32    1.  The  applicant  shall  submit  with  the  application  an
33    affidavit  of  the  applicant's  total household income, age,
34    marital status (and if married the name and  address  of  the
                            -6-                LRB9000004KRpk
 1    applicant's  spouse,  if known), and principal dwelling place
 2    of members of the household on January 1 of the taxable year.
 3    The  Department  shall  establish,  by  rule,  a  method  for
 4    verifying the accuracy  of  affidavits  filed  by  applicants
 5    under  this Section. The applications shall be clearly marked
 6    as applications for the  Senior  Citizens  Assessment  Freeze
 7    Homestead Exemption.
 8        In counties having less than 3,000,000 inhabitants, if an
 9    applicant  was  denied  an exemption in taxable year 1994 and
10    the denial occurred due  to  an  error  on  the  part  of  an
11    assessment  official,  or  his or her agent or employee, then
12    beginning in taxable year 1997 the applicant's base year, for
13    purposes of determining the amount of the exemption, shall be
14    1993 rather than 1994. In addition, in taxable year 1997, the
15    applicant's exemption shall also include an amount  equal  to
16    (i)  the  amount  of any exemption denied to the applicant in
17    taxable year 1995 as a result  of  using  1994,  rather  than
18    1993,  as  the  base  year,  (ii) the amount of any exemption
19    denied to the applicant in taxable year 1996 as a  result  of
20    using 1994, rather than 1993, as the base year, and (iii) the
21    amount  of  the exemption erroneously denied for taxable year
22    1994.
23        For purposes of this Section, a person  who  will  be  65
24    years  of  age  during  the  current  taxable  year  shall be
25    eligible to apply for the  homestead  exemption  during  that
26    taxable   year.    Application   shall  be  made  during  the
27    application period in effect for the county  of  his  or  her
28    residence.
29        The  Chief  County  Assessment  Officer may determine the
30    eligibility of a life  care  facility  that  qualifies  as  a
31    cooperative  to receive the benefits provided by this Section
32    by use  of  an  affidavit,  application,  visual  inspection,
33    questionnaire,  or other reasonable method in order to insure
34    that  the  tax  savings  resulting  from  the  exemption  are
                            -7-                LRB9000004KRpk
 1    credited by  the  management  firm  to  the  apportioned  tax
 2    liability  of  each  qualifying  resident.   The Chief County
 3    Assessment Officer may  request  reasonable  proof  that  the
 4    management firm has so credited that exemption.
 5        Except  as  provided  in  this  Section,  all information
 6    received by  the  chief  county  assessment  officer  or  the
 7    Department  from  applications  filed  under this Section, or
 8    from any investigation conducted under the provisions of this
 9    Section, shall be confidential, except for official  purposes
10    or  pursuant  to  official  procedures  for collection of any
11    State or local tax or enforcement of any  civil  or  criminal
12    penalty  or sanction imposed by this Act or by any statute or
13    ordinance imposing a State  or  local  tax.  Any  person  who
14    divulges  any  such  information  in  any  manner,  except in
15    accordance with a proper judicial order, is guilty of a Class
16    A misdemeanor.
17        Nothing contained  in  this  Section  shall  prevent  the
18    Director  or  chief county assessment officer from publishing
19    or making  available  reasonable  statistics  concerning  the
20    operation of the exemption contained in this Section in which
21    the  contents of claims are grouped into aggregates in such a
22    way that information contained in any individual claim  shall
23    not be disclosed.
24    (Source:  P.A.  88-669,  eff. 11-29-94; 88-682, eff. 1-13-95;
25    89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 89-557, eff. 1-1-97;
26    89-581, eff. 1-1-97; 89-626, eff. 8-9-96; revised 9-3-96.)
27        Section 10.  The State Mandates Act is amended by  adding
28    Section 8.21 as follows:
29        (30 ILCS 805/8.21 new)
30        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
31    and 8 of this Act, no reimbursement by the State is  required
32    for  the  implementation  of  any  mandate  created  by  this
                            -8-                LRB9000004KRpk
 1    amendatory Act of 1997.
 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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