State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]

91_SB1307eng

 
SB1307 Engrossed                               LRB9101226SMdv

 1        AN ACT to amend the Property Tax Code by changing Section
 2    15-172.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Property Tax Code is amended by  changing
 6    Section 15-172 as follows:

 7        (35 ILCS 200/15-172)
 8        Sec.  15-172. Senior Citizens Assessment Freeze Homestead
 9    Exemption.
10        (a)  This Section may be cited  as  the  Senior  Citizens
11    Assessment Freeze Homestead Exemption.
12        (b)  As used in this Section:
13        "Applicant"   means   an  individual  who  has  filed  an
14    application under this Section.
15        "Base amount" means  the  base  year  equalized  assessed
16    value  of  the  residence  plus  the  first  year's equalized
17    assessed value of any added improvements which increased  the
18    assessed value of the residence after the base year.
19        "Base  year"  means the taxable year prior to the taxable
20    year for which the applicant first qualifies and applies  for
21    the  exemption  provided  that  in the prior taxable year the
22    property was improved with a  permanent  structure  that  was
23    occupied  as  a residence by the applicant who was liable for
24    paying real property taxes on the property and who was either
25    (i) an owner of record  of  the  property  or  had  legal  or
26    equitable  interest in the property as evidenced by a written
27    instrument or (ii) had a legal or  equitable  interest  as  a
28    lessee  in  the  parcel  of  property  that was single family
29    residence. If in any subsequent taxable year  for  which  the
30    applicant   applies  and  qualifies  for  the  exemption  the
31    equalized assessed value of the residence is  less  than  the
 
SB1307 Engrossed            -2-                LRB9101226SMdv
 1    equalized  assessed value in the existing base year (provided
 2    that such  equalized  assessed  value  is  not  based  on  an
 3    assessed  value that results from a temporary irregularity in
 4    the property that reduces the assessed value for one or  more
 5    taxable  years),  then  that  subsequent  taxable  year shall
 6    become the base year until a new  base  year  is  established
 7    under  the  terms  of  this paragraph.  For taxable year 1999
 8    only, the Chief County Assessment Officer  shall  review  (i)
 9    all  taxable  years  for  which  the  applicant  applied  and
10    qualified for the exemption and (ii) the existing base year.
11    The  assessment officer shall select as the new base year the
12    year with the lowest equalized assessed value.  An  equalized
13    assessed  value  that  is  based  on  an  assessed value that
14    results from a temporary irregularity in  the  property  that
15    reduces  the  assessed  value  for  one or more taxable years
16    shall not be considered the lowest equalized assessed  value.
17    The  selected  year  shall  be the base year for taxable year
18    1999 and thereafter until a  new  base  year  is  established
19    under the terms of this paragraph.
20        "Chief   County  Assessment  Officer"  means  the  County
21    Assessor or Supervisor of Assessments of the county in  which
22    the property is located.
23        "Equalized  assessed  value"  means the assessed value as
24    equalized by the Illinois Department of Revenue.
25        "Household"  means  the  applicant,  the  spouse  of  the
26    applicant,  and  all  persons  using  the  residence  of  the
27    applicant as their principal place of residence.
28        "Household income"  means  the  combined  income  of  the
29    members  of  a  household for the calendar year preceding the
30    taxable year.
31        "Income" has the same meaning as provided in Section 3.07
32    of the Senior Citizens  and  Disabled  Persons  Property  Tax
33    Relief   and  Pharmaceutical  Assistance  Act,  except  that,
34    beginning in assessment year 2000, "income" does not  include
 
SB1307 Engrossed            -3-                LRB9101226SMdv
 1    veteran's benefits.
 2        "Internal  Revenue  Code of 1986" means the United States
 3    Internal Revenue Code of 1986 or any successor  law  or  laws
 4    relating  to  federal  income  taxes  in  effect for the year
 5    preceding the taxable year.
 6        "Life care facility  that  qualifies  as  a  cooperative"
 7    means  a  facility  as  defined in Section 2 of the Life Care
 8    Facilities Act.
 9        "Residence"  means  the  principal  dwelling  place   and
10    appurtenant  structures used for residential purposes in this
11    State occupied  on  January  1  of  the  taxable  year  by  a
12    household  and  so much of the surrounding land, constituting
13    the parcel upon which the dwelling place is situated,  as  is
14    used for residential purposes. If the Chief County Assessment
15    Officer  has  established  a specific legal description for a
16    portion of property constituting  the  residence,  then  that
17    portion  of  property  shall  be deemed the residence for the
18    purposes of this Section.
19        "Taxable year" means the calendar year  during  which  ad
20    valorem  property  taxes  payable in the next succeeding year
21    are levied.
22        (c)  Beginning in taxable year 1994,  a  senior  citizens
23    assessment  freeze  homestead  exemption  is granted for real
24    property that is improved with a permanent structure that  is
25    occupied  as  a residence by an applicant who (i) is 65 years
26    of age or older during the taxable year, (ii) has a household
27    income of $35,000 or less  prior  to  taxable  year  1999  or
28    $40,000 or less in taxable year 1999 and thereafter, (iii) is
29    liable  for  paying  real property taxes on the property, and
30    (iv) is an owner of record of the property or has a legal  or
31    equitable  interest in the property as evidenced by a written
32    instrument. This homestead exemption shall also  apply  to  a
33    leasehold  interest  in  a parcel of property improved with a
34    permanent structure that is a single family residence that is
 
SB1307 Engrossed            -4-                LRB9101226SMdv
 1    occupied as a residence by a person who (i) is  65  years  of
 2    age  or  older  during the taxable year, (ii) has a household
 3    income of $35,000 or less  prior  to  taxable  year  1999  or
 4    $40,000  or  less  in taxable year 1999 and thereafter, (iii)
 5    has a legal or equitable ownership interest in  the  property
 6    as  lessee,  and  (iv)  is  liable  for  the  payment of real
 7    property taxes on that property.
 8        The amount of  this  exemption  shall  be  the  equalized
 9    assessed value of the residence in the taxable year for which
10    application is made minus the base amount.
11        When  the applicant is a surviving spouse of an applicant
12    for a  prior  year  for  the  same  residence  for  which  an
13    exemption  under this Section has been granted, the base year
14    and base amount for that residence are the same  as  for  the
15    applicant for the prior year.
16        Each  year at the time the assessment books are certified
17    to the County Clerk, the Board of Review or Board of  Appeals
18    shall  give to the County Clerk a list of the assessed values
19    of improvements on each parcel qualifying for this  exemption
20    that  were added after the base year for this parcel and that
21    increased the assessed value of the property.
22        In the case of land improved with an  apartment  building
23    owned  and  operated as a cooperative or a building that is a
24    life care facility  that  qualifies  as  a  cooperative,  the
25    maximum  reduction  from  the equalized assessed value of the
26    property is limited to the sum of the  reductions  calculated
27    for  each unit occupied as a residence by a person or persons
28    65 years of age or older with a household income  of  $35,000
29    or  less  prior  to  taxable  year 1999 or $40,000 or less in
30    taxable year 1999 and thereafter who is liable,  by  contract
31    with  the owner or owners of record, for paying real property
32    taxes on the property and who is an  owner  of  record  of  a
33    legal  or  equitable  interest  in  the cooperative apartment
34    building, other than a leasehold interest. In the instance of
 
SB1307 Engrossed            -5-                LRB9101226SMdv
 1    a cooperative where a homestead exemption  has  been  granted
 2    under  this  Section,  the  cooperative  association  or  its
 3    management  firm shall credit the savings resulting from that
 4    exemption only to the apportioned tax liability of the  owner
 5    who  qualified  for  the exemption.  Any person who willfully
 6    refuses to credit that savings to an owner who qualifies  for
 7    the exemption is guilty of a Class B misdemeanor.
 8        When  a  homestead  exemption has been granted under this
 9    Section and  an  applicant  then  becomes  a  resident  of  a
10    facility  licensed  under  the  Nursing  Home  Care  Act, the
11    exemption shall be granted in subsequent years so long as the
12    residence (i) continues  to  be  occupied  by  the  qualified
13    applicant's  spouse or (ii) if remaining unoccupied, is still
14    owned by the qualified applicant for the homestead exemption.
15        Beginning January 1, 1997, when an  individual  dies  who
16    would have qualified for an exemption under this Section, and
17    the  surviving spouse does not independently qualify for this
18    exemption because of age, the exemption  under  this  Section
19    shall be granted to the surviving spouse for the taxable year
20    preceding  and  the taxable year of the death, provided that,
21    except  for  age,  the  surviving  spouse  meets  all   other
22    qualifications  for  the granting of this exemption for those
23    years.
24        When married persons maintain  separate  residences,  the
25    exemption provided for in this Section may be claimed by only
26    one of such persons and for only one residence.
27        For  taxable year 1994 only, in counties having less than
28    3,000,000 inhabitants, to receive  the  exemption,  a  person
29    shall submit an application by February 15, 1995 to the Chief
30    County Assessment Officer of the county in which the property
31    is   located.    In   counties   having   3,000,000  or  more
32    inhabitants, for taxable year 1994 and all subsequent taxable
33    years, to receive the  exemption,  a  person  may  submit  an
34    application  to  the  Chief  County Assessment Officer of the
 
SB1307 Engrossed            -6-                LRB9101226SMdv
 1    county in which the property is located during such period as
 2    may be specified by the Chief County Assessment Officer.  The
 3    Chief County Assessment Officer in counties of  3,000,000  or
 4    more   inhabitants   shall   annually   give  notice  of  the
 5    application period by mail or by  publication.   In  counties
 6    having   less  than  3,000,000  inhabitants,  beginning  with
 7    taxable year 1995 and thereafter, to receive the exemption, a
 8    person shall submit an application by July 1 of each  taxable
 9    year  to the Chief County Assessment Officer of the county in
10    which the property is located.  A county may,  by  ordinance,
11    establish  a  date  for  submission  of  applications that is
12    different than July 1. The applicant shall  submit  with  the
13    application  an  affidavit of the applicant's total household
14    income, age, marital status (and  if  married  the  name  and
15    address  of  the applicant's spouse, if known), and principal
16    dwelling place of members of the household on  January  1  of
17    the  taxable year. The Department shall establish, by rule, a
18    method for verifying the  accuracy  of  affidavits  filed  by
19    applicants  under  this  Section.  The  applications shall be
20    clearly  marked  as  applications  for  the  Senior  Citizens
21    Assessment Freeze Homestead Exemption.
22        Notwithstanding any other provision to the  contrary,  in
23    counties  having  fewer  than  3,000,000  inhabitants,  if an
24    applicant fails to file  the  application  required  by  this
25    Section in a timely manner and this failure to file is due to
26    a  mental  or physical condition sufficiently severe so as to
27    render the applicant incapable of filing the application in a
28    timely manner, the Chief County Assessment Officer may extend
29    the filing deadline  for  a  period  of  30  days  after  the
30    applicant regains the capability to file the application, but
31    in  no  case  may  the  filing  deadline be extended beyond 3
32    months of the original filing deadline.  In order to  receive
33    the extension provided in this paragraph, the applicant shall
34    provide  the  Chief  County  Assessment Officer with a signed
 
SB1307 Engrossed            -7-                LRB9101226SMdv
 1    statement from the applicant's physician stating  the  nature
 2    and  extent  of  the  condition,  that,  in  the  physician's
 3    opinion,  the  condition  was  so severe that it rendered the
 4    applicant incapable of filing the  application  in  a  timely
 5    manner,  and  the  date  on  which the applicant regained the
 6    capability to file the application.
 7        Beginning January  1,  1998,  notwithstanding  any  other
 8    provision  to  the  contrary,  in  counties having fewer than
 9    3,000,000 inhabitants, if an  applicant  fails  to  file  the
10    application  required  by this Section in a timely manner and
11    this failure to file is due to a mental or physical condition
12    sufficiently severe so as to render the  applicant  incapable
13    of  filing  the  application  in  a  timely manner, the Chief
14    County Assessment Officer may extend the filing deadline  for
15    a  period  of  3  months.   In order to receive the extension
16    provided in this paragraph, the applicant shall  provide  the
17    Chief  County Assessment Officer with a signed statement from
18    the applicant's physician stating the nature  and  extent  of
19    the  condition,  and  that,  in  the physician's opinion, the
20    condition was  so  severe  that  it  rendered  the  applicant
21    incapable of filing the application in a timely manner.
22        In counties having less than 3,000,000 inhabitants, if an
23    applicant  was  denied  an exemption in taxable year 1994 and
24    the denial occurred due  to  an  error  on  the  part  of  an
25    assessment  official,  or  his or her agent or employee, then
26    beginning in taxable year 1997 the applicant's base year, for
27    purposes of determining the amount of the exemption, shall be
28    1993 rather than 1994. In addition, in taxable year 1997, the
29    applicant's exemption shall also include an amount  equal  to
30    (i)  the  amount  of any exemption denied to the applicant in
31    taxable year 1995 as a result  of  using  1994,  rather  than
32    1993,  as  the  base  year,  (ii) the amount of any exemption
33    denied to the applicant in taxable year 1996 as a  result  of
34    using 1994, rather than 1993, as the base year, and (iii) the
 
SB1307 Engrossed            -8-                LRB9101226SMdv
 1    amount  of  the exemption erroneously denied for taxable year
 2    1994.
 3        For purposes of this Section, a person  who  will  be  65
 4    years  of  age  during  the  current  taxable  year  shall be
 5    eligible to apply for the  homestead  exemption  during  that
 6    taxable   year.    Application   shall  be  made  during  the
 7    application period in effect for the county  of  his  or  her
 8    residence.
 9        The  Chief  County  Assessment  Officer may determine the
10    eligibility of a life  care  facility  that  qualifies  as  a
11    cooperative  to receive the benefits provided by this Section
12    by use  of  an  affidavit,  application,  visual  inspection,
13    questionnaire,  or other reasonable method in order to insure
14    that  the  tax  savings  resulting  from  the  exemption  are
15    credited by  the  management  firm  to  the  apportioned  tax
16    liability  of  each  qualifying  resident.   The Chief County
17    Assessment Officer may  request  reasonable  proof  that  the
18    management firm has so credited that exemption.
19        Except  as  provided  in  this  Section,  all information
20    received by  the  chief  county  assessment  officer  or  the
21    Department  from  applications  filed  under this Section, or
22    from any investigation conducted under the provisions of this
23    Section, shall be confidential, except for official  purposes
24    or  pursuant  to  official  procedures  for collection of any
25    State or local tax or enforcement of any  civil  or  criminal
26    penalty  or sanction imposed by this Act or by any statute or
27    ordinance imposing a State  or  local  tax.  Any  person  who
28    divulges  any  such  information  in  any  manner,  except in
29    accordance with a proper judicial order, is guilty of a Class
30    A misdemeanor.
31        Nothing contained  in  this  Section  shall  prevent  the
32    Director  or  chief county assessment officer from publishing
33    or making  available  reasonable  statistics  concerning  the
34    operation of the exemption contained in this Section in which
 
SB1307 Engrossed            -9-                LRB9101226SMdv
 1    the  contents of claims are grouped into aggregates in such a
 2    way that information contained in any individual claim  shall
 3    not be disclosed.
 4        (d)  Each  Chief County Assessment Officer shall annually
 5    publish a notice of availability of  the  exemption  provided
 6    under  this  Section.  The notice shall be published at least
 7    60 days but no more than 75 days prior to the date  on  which
 8    the  application  must  be  submitted  to  the  Chief  County
 9    Assessment  Officer  of  the  county in which the property is
10    located.  The notice shall appear in a newspaper  of  general
11    circulation in the county.
12    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
13    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
14    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
15    eff. 6-30-99; revised 9-27-99.)

16        Section 99.  Effective date.  This Act takes effect  upon
17    becoming law.

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