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91_SB0373eng SB373 Engrossed LRB9100580PTpk 1 AN ACT concerning senior citizens. 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. SB373 Engrossed -2- LRB9100580PTpk 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 SB373 Engrossed -3- LRB9100580PTpk 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, subject to adjustment, (iii) is 4 liable for paying real property taxes on the property, and 5 (iv) is an owner of record of the property or has a legal or 6 equitable interest in the property as evidenced by a written 7 instrument. This homestead exemption shall also apply to a 8 leasehold interest in a parcel of property improved with a 9 permanent structure that is a single family residence that is 10 occupied as a residence by a person who (i) is 65 years of 11 age or older during the taxable year, (ii) has a household 12 income of $35,000 or less, subject to adjustment, (iii) has a 13 legal or equitable ownership interest in the property as 14 lessee, and (iv) is liable for the payment of real property 15 taxes on that property. Beginning in taxable year 1999, the 16 household income limitation shall be adjusted annually by the 17 Department of Revenue to reflect increases in the Consumer 18 Price Index reported by the Bureau of Labor Statistics of 19 the federal Department of Labor or its successor agency. If 20 this Consumer Price Index ceases to be reported, then the 21 Department of Revenue shall designate a comparable substitute 22 index by rule. 23 The amount of this exemption shall be the equalized 24 assessed value of the residence in the taxable year for which 25 application is made minus the base amount. 26 When the applicant is a surviving spouse of an applicant 27 for a prior year for the same residence for which an 28 exemption under this Section has been granted, the base year 29 and base amount for that residence are the same as for the 30 applicant for the prior year. 31 Each year at the time the assessment books are certified 32 to the County Clerk, the Board of Review or Board of Appeals 33 shall give to the County Clerk a list of the assessed values 34 of improvements on each parcel qualifying for this exemption SB373 Engrossed -4- LRB9100580PTpk 1 that were added after the base year for this parcel and that 2 increased the assessed value of the property. 3 In the case of land improved with an apartment building 4 owned and operated as a cooperative or a building that is a 5 life care facility that qualifies as a cooperative, the 6 maximum reduction from the equalized assessed value of the 7 property is limited to the sum of the reductions calculated 8 for each unit occupied as a residence by a person or persons 9 65 years of age or older with a household income of $35,000 10 or less, subject to adjustment, who is liable, by contract 11 with the owner or owners of record, for paying real property 12 taxes on the property and who is an owner of record of a 13 legal or equitable interest in the cooperative apartment 14 building, other than a leasehold interest. Beginning in 15 taxable year 1999, the household income limitation shall be 16 adjusted annually by the Department of Revenue to reflect 17 increases in the Consumer Price Index reported by the Bureau 18 of Labor Statistics of the federal Department of Labor or 19 its successor agency. If this Consumer Price Index ceases to 20 be reported, then the Department of Revenue shall designate a 21 comparable substitute index by rule. In the instance of a 22 cooperative where a homestead exemption has been granted 23 under this Section, the cooperative association or its 24 management firm shall credit the savings resulting from that 25 exemption only to the apportioned tax liability of the owner 26 who qualified for the exemption. Any person who willfully 27 refuses to credit that savings to an owner who qualifies for 28 the exemption is guilty of a Class B misdemeanor. 29 When a homestead exemption has been granted under this 30 Section and an applicant then becomes a resident of a 31 facility licensed under the Nursing Home Care Act, the 32 exemption shall be granted in subsequent years so long as the 33 residence (i) continues to be occupied by the qualified 34 applicant's spouse or (ii) if remaining unoccupied, is still SB373 Engrossed -5- LRB9100580PTpk 1 owned by the qualified applicant for the homestead exemption. 2 Beginning January 1, 1997, when an individual dies who 3 would have qualified for an exemption under this Section, and 4 the surviving spouse does not independently qualify for this 5 exemption because of age, the exemption under this Section 6 shall be granted to the surviving spouse for the taxable year 7 preceding and the taxable year of the death, provided that, 8 except for age, the surviving spouse meets all other 9 qualifications for the granting of this exemption for those 10 years. 11 When married persons maintain separate residences, the 12 exemption provided for in this Section may be claimed by only 13 one of such persons and for only one residence. 14 For taxable year 1994 only, in counties having less than 15 3,000,000 inhabitants, to receive the exemption, a person 16 shall submit an application by February 15, 1995 to the Chief 17 County Assessment Officer of the county in which the property 18 is located. In counties having 3,000,000 or more 19 inhabitants, for taxable year 1994 and all subsequent taxable 20 years, to receive the exemption, a person may submit an 21 application to the Chief County Assessment Officer of the 22 county in which the property is located during such period as 23 may be specified by the Chief County Assessment Officer. The 24 Chief County Assessment Officer in counties of 3,000,000 or 25 more inhabitants shall annually give notice of the 26 application period by mail or by publication. In counties 27 having less than 3,000,000 inhabitants, beginning with 28 taxable year 1995 and thereafter, to receive the exemption, a 29 person shall submit an application by July 1 of each taxable 30 year to the Chief County Assessment Officer of the county in 31 which the property is located. A county may, by ordinance, 32 establish a date for submission of applications that is 33 different than July 1. The applicant shall submit with the 34 application an affidavit of the applicant's total household SB373 Engrossed -6- LRB9100580PTpk 1 income, age, marital status (and if married the name and 2 address of the applicant's spouse, if known), and principal 3 dwelling place of members of the household on January 1 of 4 the taxable year. The Department shall establish, by rule, a 5 method for verifying the accuracy of affidavits filed by 6 applicants under this Section. The applications shall be 7 clearly marked as applications for the Senior Citizens 8 Assessment Freeze Homestead Exemption. 9 Notwithstanding any other provision to the contrary, in 10 counties having fewer than 3,000,000 inhabitants, if an 11 applicant fails to file the application required by this 12 Section in a timely manner and this failure to file is due to 13 a mental or physical condition sufficiently severe so as to 14 render the applicant incapable of filing the application in a 15 timely manner, the Chief County Assessment Officer may extend 16 the filing deadline for a period of 30 days after the 17 applicant regains the capability to file the application, but 18 in no case may the filing deadline be extended beyond 3 19 months of the original filing deadline. In order to receive 20 the extension provided in this paragraph, the applicant shall 21 provide the Chief County Assessment Officer with a signed 22 statement from the applicant's physician stating the nature 23 and extent of the condition, that, in the physician's 24 opinion, the condition was so severe that it rendered the 25 applicant incapable of filing the application in a timely 26 manner, and the date on which the applicant regained the 27 capability to file the application. 28 Beginning January 1, 1998, notwithstanding any other 29 provision to the contrary, in counties having fewer than 30 3,000,000 inhabitants, if an applicant fails to file the 31 application required by this Section in a timely manner and 32 this failure to file is due to a mental or physical condition 33 sufficiently severe so as to render the applicant incapable 34 of filing the application in a timely manner, the Chief SB373 Engrossed -7- LRB9100580PTpk 1 County Assessment Officer may extend the filing deadline for 2 a period of 3 months. In order to receive the extension 3 provided in this paragraph, the applicant shall provide the 4 Chief County Assessment Officer with a signed statement from 5 the applicant's physician stating the nature and extent of 6 the condition, and that, in the physician's opinion, the 7 condition was so severe that it rendered the applicant 8 incapable of filing the application in a timely manner. 9 In counties having less than 3,000,000 inhabitants, if an 10 applicant was denied an exemption in taxable year 1994 and 11 the denial occurred due to an error on the part of an 12 assessment official, or his or her agent or employee, then 13 beginning in taxable year 1997 the applicant's base year, for 14 purposes of determining the amount of the exemption, shall be 15 1993 rather than 1994. In addition, in taxable year 1997, the 16 applicant's exemption shall also include an amount equal to 17 (i) the amount of any exemption denied to the applicant in 18 taxable year 1995 as a result of using 1994, rather than 19 1993, as the base year, (ii) the amount of any exemption 20 denied to the applicant in taxable year 1996 as a result of 21 using 1994, rather than 1993, as the base year, and (iii) the 22 amount of the exemption erroneously denied for taxable year 23 1994. 24 For purposes of this Section, a person who will be 65 25 years of age during the current taxable year shall be 26 eligible to apply for the homestead exemption during that 27 taxable year. Application shall be made during the 28 application period in effect for the county of his or her 29 residence. 30 The Chief County Assessment Officer may determine the 31 eligibility of a life care facility that qualifies as a 32 cooperative to receive the benefits provided by this Section 33 by use of an affidavit, application, visual inspection, 34 questionnaire, or other reasonable method in order to insure SB373 Engrossed -8- LRB9100580PTpk 1 that the tax savings resulting from the exemption are 2 credited by the management firm to the apportioned tax 3 liability of each qualifying resident. The Chief County 4 Assessment Officer may request reasonable proof that the 5 management firm has so credited that exemption. 6 Except as provided in this Section, all information 7 received by the chief county assessment officer or the 8 Department from applications filed under this Section, or 9 from any investigation conducted under the provisions of this 10 Section, shall be confidential, except for official purposes 11 or pursuant to official procedures for collection of any 12 State or local tax or enforcement of any civil or criminal 13 penalty or sanction imposed by this Act or by any statute or 14 ordinance imposing a State or local tax. Any person who 15 divulges any such information in any manner, except in 16 accordance with a proper judicial order, is guilty of a Class 17 A misdemeanor. 18 Nothing contained in this Section shall prevent the 19 Director or chief county assessment officer from publishing 20 or making available reasonable statistics concerning the 21 operation of the exemption contained in this Section in which 22 the contents of claims are grouped into aggregates in such a 23 way that information contained in any individual claim shall 24 not be disclosed. 25 (d) Each Chief County Assessment Officer shall annually 26 publish a notice of availability of the exemption provided 27 under this Section. The notice shall be published at least 28 60 days but no more than 75 days prior to the date on which 29 the application must be submitted to the Chief County 30 Assessment Officer of the county in which the property is 31 located. The notice shall appear in a newspaper of general 32 circulation in the county. 33 (Source: P.A. 89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 34 89-557, eff. 1-1-97; 89-581, eff. 1-1-97; 89-626, eff. SB373 Engrossed -9- LRB9100580PTpk 1 8-9-96; 90-14, eff. 7-1-97; 90-204, eff. 7-25-97; 90-523, 2 eff. 11-13-97; 90-524, eff. 1-1-98; 90-531, eff. 1-1-98; 3 90-655, eff. 7-30-98.) 4 Section 90. The State Mandates Act is amended by adding 5 Section 8.23 as follows: 6 (30 ILCS 805/8.23 new) 7 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6 8 and 8 of this Act, no reimbursement by the State is required 9 for the implementation of any mandate created by this 10 amendatory Act of 1999. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.