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90_SB0164eng 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 SB164 Engrossed 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. SB164 Engrossed -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 SB164 Engrossed -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. SB164 Engrossed -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 SB164 Engrossed -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 SB164 Engrossed -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 SB164 Engrossed -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 SB164 Engrossed -8- LRB9000004KRpk 1 amendatory Act of 1997. 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.
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