101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5487

 

Introduced , by Rep. Bradley Stephens

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-275
35 ILCS 200/15-10
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that the surviving spouse of a fallen police officer, soldier, or rescue worker who meets certain income limitations is eligible for an assessment freeze. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5487LRB101 18224 HLH 67666 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 9-275, 15-10, 15-172 as follows:
 
6    (35 ILCS 200/9-275)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) For purposes of this Section:
9    "Erroneous homestead exemption" means a homestead
10exemption that was granted for real property in a taxable year
11if the property was not eligible for that exemption in that
12taxable year. If the taxpayer receives an erroneous homestead
13exemption under a single Section of this Code for the same
14property in multiple years, that exemption is considered a
15single erroneous homestead exemption for purposes of this
16Section. However, if the taxpayer receives erroneous homestead
17exemptions under multiple Sections of this Code for the same
18property, or if the taxpayer receives erroneous homestead
19exemptions under the same Section of this Code for multiple
20properties, then each of those exemptions is considered a
21separate erroneous homestead exemption for purposes of this
22Section.
23    "Homestead exemption" means an exemption under Section

 

 

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115-165 (veterans with disabilities), 15-167 (returning
2veterans), 15-168 (persons with disabilities), 15-169
3(standard homestead for veterans with disabilities), 15-170
4(senior citizens), 15-172 (senior citizens assessment freeze),
515-175 (general homestead), 15-176 (alternative general
6homestead), or 15-177 (long-time occupant).
7    "Erroneous exemption principal amount" means the total
8difference between the property taxes actually billed to a
9property index number and the amount of property taxes that
10would have been billed but for the erroneous exemption or
11exemptions.
12    "Taxpayer" means the property owner or leasehold owner that
13erroneously received a homestead exemption upon property.
14    (b) Notwithstanding any other provision of law, in counties
15with 3,000,000 or more inhabitants, the chief county assessment
16officer shall include the following information with each
17assessment notice sent in a general assessment year: (1) a list
18of each homestead exemption available under Article 15 of this
19Code and a description of the eligibility criteria for that
20exemption, including the number of assessment years of
21automatic renewal remaining on a current senior citizens
22homestead exemption if such an exemption has been applied to
23the property; (2) a list of each homestead exemption applied to
24the property in the current assessment year; (3) information
25regarding penalties and interest that may be incurred under
26this Section if the taxpayer received an erroneous homestead

 

 

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1exemption in a previous taxable year; and (4) notice of the
260-day grace period available under this subsection. If, within
360 days after receiving his or her assessment notice, the
4taxpayer notifies the chief county assessment officer that he
5or she received an erroneous homestead exemption in a previous
6taxable year, and if the taxpayer pays the erroneous exemption
7principal amount, plus interest as provided in subsection (f),
8then the taxpayer shall not be liable for the penalties
9provided in subsection (f) with respect to that exemption.
10    (c) In counties with 3,000,000 or more inhabitants, when
11the chief county assessment officer determines that one or more
12erroneous homestead exemptions was applied to the property, the
13erroneous exemption principal amount, together with all
14applicable interest and penalties as provided in subsections
15(f) and (j), shall constitute a lien in the name of the People
16of Cook County on the property receiving the erroneous
17homestead exemption. Upon becoming aware of the existence of
18one or more erroneous homestead exemptions, the chief county
19assessment officer shall cause to be served, by both regular
20mail and certified mail, a notice of discovery as set forth in
21subsection (c-5). The chief county assessment officer in a
22county with 3,000,000 or more inhabitants may cause a lien to
23be recorded against property that (1) is located in the county
24and (2) received one or more erroneous homestead exemptions if,
25upon determination of the chief county assessment officer, the
26taxpayer received: (A) one or 2 erroneous homestead exemptions

 

 

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1for real property, including at least one erroneous homestead
2exemption granted for the property against which the lien is
3sought, during any of the 3 collection years immediately prior
4to the current collection year in which the notice of discovery
5is served; or (B) 3 or more erroneous homestead exemptions for
6real property, including at least one erroneous homestead
7exemption granted for the property against which the lien is
8sought, during any of the 6 collection years immediately prior
9to the current collection year in which the notice of discovery
10is served. Prior to recording the lien against the property,
11the chief county assessment officer shall cause to be served,
12by both regular mail and certified mail, return receipt
13requested, on the person to whom the most recent tax bill was
14mailed and the owner of record, a notice of intent to record a
15lien against the property. The chief county assessment officer
16shall cause the notice of intent to record a lien to be served
17within 3 years from the date on which the notice of discovery
18was served.
19    (c-5) The notice of discovery described in subsection (c)
20shall: (1) identify, by property index number, the property for
21which the chief county assessment officer has knowledge
22indicating the existence of an erroneous homestead exemption;
23(2) set forth the taxpayer's liability for principal, interest,
24penalties, and administrative costs including, but not limited
25to, recording fees described in subsection (f); (3) inform the
26taxpayer that he or she will be served with a notice of intent

 

 

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1to record a lien within 3 years from the date of service of the
2notice of discovery; (4) inform the taxpayer that he or she may
3pay the outstanding amount, plus interest, penalties, and
4administrative costs at any time prior to being served with the
5notice of intent to record a lien or within 30 days after the
6notice of intent to record a lien is served; and (5) inform the
7taxpayer that, if the taxpayer provided notice to the chief
8county assessment officer as provided in subsection (d-1) of
9Section 15-175 of this Code, upon submission by the taxpayer of
10evidence of timely notice and receipt thereof by the chief
11county assessment officer, the chief county assessment officer
12will withdraw the notice of discovery and reissue a notice of
13discovery in compliance with this Section in which the taxpayer
14is not liable for interest and penalties for the current tax
15year in which the notice was received.
16    For the purposes of this subsection (c-5):
17    "Collection year" means the year in which the first and
18second installment of the current tax year is billed.
19    "Current tax year" means the year prior to the collection
20year.
21    (d) The notice of intent to record a lien described in
22subsection (c) shall: (1) identify, by property index number,
23the property against which the lien is being sought; (2)
24identify each specific homestead exemption that was
25erroneously granted and the year or years in which each
26exemption was granted; (3) set forth the erroneous exemption

 

 

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1principal amount due and the interest amount and any penalty
2and administrative costs due; (4) inform the taxpayer that he
3or she may request a hearing within 30 days after service and
4may appeal the hearing officer's ruling to the circuit court;
5(5) inform the taxpayer that he or she may pay the erroneous
6exemption principal amount, plus interest and penalties,
7within 30 days after service; and (6) inform the taxpayer that,
8if the lien is recorded against the property, the amount of the
9lien will be adjusted to include the applicable recording fee
10and that fees for recording a release of the lien shall be
11incurred by the taxpayer. A lien shall not be filed pursuant to
12this Section if the taxpayer pays the erroneous exemption
13principal amount, plus penalties and interest, within 30 days
14of service of the notice of intent to record a lien.
15    (e) The notice of intent to record a lien shall also
16include a form that the taxpayer may return to the chief county
17assessment officer to request a hearing. The taxpayer may
18request a hearing by returning the form within 30 days after
19service. The hearing shall be held within 90 days after the
20taxpayer is served. The chief county assessment officer shall
21promulgate rules of service and procedure for the hearing. The
22chief county assessment officer must generally follow rules of
23evidence and practices that prevail in the county circuit
24courts, but, because of the nature of these proceedings, the
25chief county assessment officer is not bound by those rules in
26all particulars. The chief county assessment officer shall

 

 

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1appoint a hearing officer to oversee the hearing. The taxpayer
2shall be allowed to present evidence to the hearing officer at
3the hearing. After taking into consideration all the relevant
4testimony and evidence, the hearing officer shall make an
5administrative decision on whether the taxpayer was
6erroneously granted a homestead exemption for the taxable year
7in question. The taxpayer may appeal the hearing officer's
8ruling to the circuit court of the county where the property is
9located as a final administrative decision under the
10Administrative Review Law.
11    (f) A lien against the property imposed under this Section
12shall be filed with the county recorder of deeds, but may not
13be filed sooner than 60 days after the notice of intent to
14record a lien was delivered to the taxpayer if the taxpayer
15does not request a hearing, or until the conclusion of the
16hearing and all appeals if the taxpayer does request a hearing.
17If a lien is filed pursuant to this Section and the taxpayer
18received one or 2 erroneous homestead exemptions during any of
19the 3 collection years immediately prior to the current
20collection year in which the notice of discovery is served,
21then the erroneous exemption principal amount, plus 10%
22interest per annum or portion thereof from the date the
23erroneous exemption principal amount would have become due if
24properly included in the tax bill, shall be charged against the
25property by the chief county assessment officer. However, if a
26lien is filed pursuant to this Section and the taxpayer

 

 

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1received 3 or more erroneous homestead exemptions during any of
2the 6 collection years immediately prior to the current
3collection year in which the notice of discovery is served, the
4erroneous exemption principal amount, plus a penalty of 50% of
5the total amount of the erroneous exemption principal amount
6for that property and 10% interest per annum or portion thereof
7from the date the erroneous exemption principal amount would
8have become due if properly included in the tax bill, shall be
9charged against the property by the chief county assessment
10officer. If a lien is filed pursuant to this Section, the
11taxpayer shall not be liable for interest that accrues between
12the date the notice of discovery is served and the date the
13lien is filed. Before recording the lien with the county
14recorder of deeds, the chief county assessment officer shall
15adjust the amount of the lien to add administrative costs,
16including but not limited to the applicable recording fee, to
17the total lien amount.
18    (g) If a person received an erroneous homestead exemption
19under Section 15-170 and: (1) the person was the spouse, child,
20grandchild, brother, sister, niece, or nephew of the previous
21taxpayer; and (2) the person received the property by bequest
22or inheritance; then the person is not liable for the penalties
23imposed under this Section for any year or years during which
24the chief county assessment officer did not require an annual
25application for the exemption or, in a county with 3,000,000 or
26more inhabitants, an application for renewal of a multi-year

 

 

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1exemption pursuant to subsection (i) of Section 15-170, as the
2case may be. However, that person is responsible for any
3interest owed under subsection (f).
4    (h) If the erroneous homestead exemption was granted as a
5result of a clerical error or omission on the part of the chief
6county assessment officer, and if the taxpayer has paid the tax
7bills as received for the year in which the error occurred,
8then the interest and penalties authorized by this Section with
9respect to that homestead exemption shall not be chargeable to
10the taxpayer. However, nothing in this Section shall prevent
11the collection of the erroneous exemption principal amount due
12and owing.
13    (i) A lien under this Section is not valid as to (1) any
14bona fide purchaser for value without notice of the erroneous
15homestead exemption whose rights in and to the underlying
16parcel arose after the erroneous homestead exemption was
17granted but before the filing of the notice of lien; or (2) any
18mortgagee, judgment creditor, or other lienor whose rights in
19and to the underlying parcel arose before the filing of the
20notice of lien. A title insurance policy for the property that
21is issued by a title company licensed to do business in the
22State showing that the property is free and clear of any liens
23imposed under this Section shall be prima facie evidence that
24the taxpayer is without notice of the erroneous homestead
25exemption. Nothing in this Section shall be deemed to impair
26the rights of subsequent creditors and subsequent purchasers

 

 

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1under Section 30 of the Conveyances Act.
2    (j) When a lien is filed against the property pursuant to
3this Section, the chief county assessment officer shall mail a
4copy of the lien to the person to whom the most recent tax bill
5was mailed and to the owner of record, and the outstanding
6liability created by such a lien is due and payable within 30
7days after the mailing of the lien by the chief county
8assessment officer. This liability is deemed delinquent and
9shall bear interest beginning on the day after the due date at
10a rate of 1.5% per month or portion thereof. Payment shall be
11made to the county treasurer. Upon receipt of the full amount
12due, as determined by the chief county assessment officer, the
13county treasurer shall distribute the amount paid as provided
14in subsection (k). Upon presentment by the taxpayer to the
15chief county assessment officer of proof of payment of the
16total liability, the chief county assessment officer shall
17provide in reasonable form a release of the lien. The release
18of the lien provided shall clearly inform the taxpayer that it
19is the responsibility of the taxpayer to record the lien
20release form with the county recorder of deeds and to pay any
21applicable recording fees.
22    (k) The county treasurer shall pay collected erroneous
23exemption principal amounts, pro rata, to the taxing districts,
24or their legal successors, that levied upon the subject
25property in the taxable year or years for which the erroneous
26homestead exemptions were granted, except as set forth in this

 

 

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1Section. The county treasurer shall deposit collected
2penalties and interest into a special fund established by the
3county treasurer to offset the costs of administration of the
4provisions of this Section by the chief county assessment
5officer's office, as appropriated by the county board. If the
6costs of administration of this Section exceed the amount of
7interest and penalties collected in the special fund, the chief
8county assessor shall be reimbursed by each taxing district or
9their legal successors for those costs. Such costs shall be
10paid out of the funds collected by the county treasurer on
11behalf of each taxing district pursuant to this Section.
12    (l) The chief county assessment officer in a county with
133,000,000 or more inhabitants shall establish an amnesty period
14for all taxpayers owing any tax due to an erroneous homestead
15exemption granted in a tax year prior to the 2013 tax year. The
16amnesty period shall begin on the effective date of this
17amendatory Act of the 98th General Assembly and shall run
18through December 31, 2013. If, during the amnesty period, the
19taxpayer pays the entire arrearage of taxes due for tax years
20prior to 2013, the county clerk shall abate and not seek to
21collect any interest or penalties that may be applicable and
22shall not seek civil or criminal prosecution for any taxpayer
23for tax years prior to 2013. Failure to pay all such taxes due
24during the amnesty period established under this Section shall
25invalidate the amnesty period for that taxpayer.
26    The chief county assessment officer in a county with

 

 

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13,000,000 or more inhabitants shall (i) mail notice of the
2amnesty period with the tax bills for the second installment of
3taxes for the 2012 assessment year and (ii) as soon as possible
4after the effective date of this amendatory Act of the 98th
5General Assembly, publish notice of the amnesty period in a
6newspaper of general circulation in the county. Notices shall
7include information on the amnesty period, its purpose, and the
8method by which to make payment.
9    Taxpayers who are a party to any criminal investigation or
10to any civil or criminal litigation that is pending in any
11circuit court or appellate court, or in the Supreme Court of
12this State, for nonpayment, delinquency, or fraud in relation
13to any property tax imposed by any taxing district located in
14the State on the effective date of this amendatory Act of the
1598th General Assembly may not take advantage of the amnesty
16period.
17    A taxpayer who has claimed 3 or more homestead exemptions
18in error shall not be eligible for the amnesty period
19established under this subsection.
20    (m) Notwithstanding any other provision of law, for taxable
21years 2019 through 2023, in counties with 3,000,000 or more
22inhabitants, the chief county assessment officer shall, if he
23or she learns that a taxpayer who has been granted a senior
24citizens homestead exemption has died during the period to
25which the exemption applies, send a notice to the address on
26record for the owner of record of the property notifying the

 

 

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1owner that the exemption will be terminated unless, within 90
2days after the notice is sent, the chief county assessment
3officer is provided with a basis to continue the exemption. The
4notice shall be sent by first-class mail, in an envelope that
5bears on its front, in boldface red lettering that is at least
6one inch in size, the words "Notice of Exemption Termination";
7however, if the taxpayer elects to receive the notice by email
8and provides an email address, then the notice shall be sent by
9email.
10(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20.)
 
11    (35 ILCS 200/15-10)
12    Sec. 15-10. Exempt property; procedures for certification.
13    (a) All property granted an exemption by the Department
14pursuant to the requirements of Section 15-5 and described in
15the Sections following Section 15-30 and preceding Section
1616-5, to the extent therein limited, is exempt from taxation.
17In order to maintain that exempt status, the titleholder or the
18owner of the beneficial interest of any property that is exempt
19must file with the chief county assessment officer, on or
20before January 31 of each year (May 31 in the case of property
21exempted by Section 15-170), an affidavit stating whether there
22has been any change in the ownership or use of the property,
23the status of the owner-resident, the satisfaction by a
24relevant hospital entity of the condition for an exemption
25under Section 15-86, or that a veteran with a disability who

 

 

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1qualifies under Section 15-165 owned and used the property as
2of January 1 of that year. The nature of any change shall be
3stated in the affidavit. Failure to file an affidavit shall, in
4the discretion of the assessment officer, constitute cause to
5terminate the exemption of that property, notwithstanding any
6other provision of this Code. Owners of 5 or more such exempt
7parcels within a county may file a single annual affidavit in
8lieu of an affidavit for each parcel. The assessment officer,
9upon request, shall furnish an affidavit form to the owners, in
10which the owner may state whether there has been any change in
11the ownership or use of the property or status of the owner or
12resident as of January 1 of that year. The owner of 5 or more
13exempt parcels shall list all the properties giving the same
14information for each parcel as required of owners who file
15individual affidavits.
16    (b) However, titleholders or owners of the beneficial
17interest in any property exempted under any of the following
18provisions are not required to submit an annual filing under
19this Section:
20        (1) Section 15-45 (burial grounds) in counties of less
21    than 3,000,000 inhabitants and owned by a not-for-profit
22    organization.
23        (2) Section 15-40.
24        (3) Section 15-50 (United States property).
25    (c) If there is a change in use or ownership, however,
26notice must be filed pursuant to Section 15-20.

 

 

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1    (d) An application for homestead exemptions shall be filed
2as provided in Section 15-170 (senior citizens homestead
3exemption), Section 15-172 (senior citizens assessment freeze
4homestead exemption), and Sections 15-175 (general homestead
5exemption), 15-176 (general alternative homestead exemption),
6and 15-177 (long-time occupant homestead exemption),
7respectively.
8    (e) For purposes of determining satisfaction of the
9condition for an exemption under Section 15-86:
10        (1) The "year for which exemption is sought" is the
11    year prior to the year in which the affidavit is due.
12        (2) The "hospital year" is the fiscal year of the
13    relevant hospital entity, or the fiscal year of one of the
14    hospitals in the hospital system if the relevant hospital
15    entity is a hospital system with members with different
16    fiscal years, that ends in the year prior to the year in
17    which the affidavit is due. However, if that fiscal year
18    ends 3 months or less before the date on which the
19    affidavit is due, the relevant hospital entity shall file
20    an interim affidavit based on the currently available
21    information, and shall file a supplemental affidavit
22    within 90 days of date on which the application was due, if
23    the information in the relevant hospital entity's audited
24    financial statements changes the interim affidavit's
25    statement concerning the entity's compliance with the
26    calculation required by Section 15-86.

 

 

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1        (3) The affidavit shall be accompanied by an exhibit
2    prepared by the relevant hospital entity showing (A) the
3    value of the relevant hospital entity's services and
4    activities, if any, under items (1) through (7) of
5    subsection (e) of Section 15-86, stated separately for each
6    item, and (B) the value relating to the relevant hospital
7    entity's estimated property tax liability under paragraphs
8    (A), (B), and (C) of item (1) of subsection (g) of Section
9    15-86; under paragraphs (A), (B), and (C) of item (2) of
10    subsection (g) of Section 15-86; and under item (3) of
11    subsection (g) of Section 15-86.
12(Source: P.A. 99-143, eff. 7-27-15.)
 
13    (35 ILCS 200/15-172)
14    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
15Exemption.
16    (a) This Section may be cited as the Senior Citizens
17Assessment Freeze Homestead Exemption.
18    (b) As used in this Section:
19    "Applicant" means an individual who has filed an
20application under this Section.
21    "Base amount" means the base year equalized assessed value
22of the residence plus the first year's equalized assessed value
23of any added improvements which increased the assessed value of
24the residence after the base year.
25    "Base year" means the taxable year prior to the taxable

 

 

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1year for which the applicant first qualifies and applies for
2the exemption provided that in the prior taxable year the
3property was improved with a permanent structure that was
4occupied as a residence by the applicant who was liable for
5paying real property taxes on the property and who was either
6(i) an owner of record of the property or had legal or
7equitable interest in the property as evidenced by a written
8instrument or (ii) had a legal or equitable interest as a
9lessee in the parcel of property that was single family
10residence. If in any subsequent taxable year for which the
11applicant applies and qualifies for the exemption the equalized
12assessed value of the residence is less than the equalized
13assessed value in the existing base year (provided that such
14equalized assessed value is not based on an assessed value that
15results from a temporary irregularity in the property that
16reduces the assessed value for one or more taxable years), then
17that subsequent taxable year shall become the base year until a
18new base year is established under the terms of this paragraph.
19For taxable year 1999 only, the Chief County Assessment Officer
20shall review (i) all taxable years for which the applicant
21applied and qualified for the exemption and (ii) the existing
22base year. The assessment officer shall select as the new base
23year the year with the lowest equalized assessed value. An
24equalized assessed value that is based on an assessed value
25that results from a temporary irregularity in the property that
26reduces the assessed value for one or more taxable years shall

 

 

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1not be considered the lowest equalized assessed value. The
2selected year shall be the base year for taxable year 1999 and
3thereafter until a new base year is established under the terms
4of this paragraph.
5    "Chief County Assessment Officer" means the County
6Assessor or Supervisor of Assessments of the county in which
7the property is located.
8    "Equalized assessed value" means the assessed value as
9equalized by the Illinois Department of Revenue.
10    "Household" means the applicant, the spouse of the
11applicant, and all persons using the residence of the applicant
12as their principal place of residence.
13    "Household income" means the combined income of the members
14of a household for the calendar year preceding the taxable
15year.
16    "Income" has the same meaning as provided in Section 3.07
17of the Senior Citizens and Persons with Disabilities Property
18Tax Relief Act, except that, beginning in assessment year 2001,
19"income" does not include veteran's benefits.
20    "Internal Revenue Code of 1986" means the United States
21Internal Revenue Code of 1986 or any successor law or laws
22relating to federal income taxes in effect for the year
23preceding the taxable year.
24    "Life care facility that qualifies as a cooperative" means
25a facility as defined in Section 2 of the Life Care Facilities
26Act.

 

 

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1    "Maximum income limitation" means:
2        (1) $35,000 prior to taxable year 1999;
3        (2) $40,000 in taxable years 1999 through 2003;
4        (3) $45,000 in taxable years 2004 through 2005;
5        (4) $50,000 in taxable years 2006 and 2007;
6        (5) $55,000 in taxable years 2008 through 2016;
7        (6) for taxable year 2017, (i) $65,000 for qualified
8    property located in a county with 3,000,000 or more
9    inhabitants and (ii) $55,000 for qualified property
10    located in a county with fewer than 3,000,000 inhabitants;
11    and
12        (7) for taxable years 2018 and thereafter, $65,000 for
13    all qualified property.
14    "Residence" means the principal dwelling place and
15appurtenant structures used for residential purposes in this
16State occupied on January 1 of the taxable year by a household
17and so much of the surrounding land, constituting the parcel
18upon which the dwelling place is situated, as is used for
19residential purposes. If the Chief County Assessment Officer
20has established a specific legal description for a portion of
21property constituting the residence, then that portion of
22property shall be deemed the residence for the purposes of this
23Section.
24    "Taxable year" means the calendar year during which ad
25valorem property taxes payable in the next succeeding year are
26levied.

 

 

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1    (c) Beginning in taxable year 1994, a senior citizens
2assessment freeze homestead exemption is granted for real
3property that is improved with a permanent structure that is
4occupied as a residence by an applicant who (i) is 65 years of
5age or older during the taxable year, (ii) has a household
6income that does not exceed the maximum income limitation,
7(iii) is liable for paying real property taxes on the property,
8and (iv) is an owner of record of the property or has a legal or
9equitable interest in the property as evidenced by a written
10instrument. This homestead exemption shall also apply to a
11leasehold interest in a parcel of property improved with a
12permanent structure that is a single family residence that is
13occupied as a residence by a person who (i) is 65 years of age
14or older during the taxable year, (ii) has a household income
15that does not exceed the maximum income limitation, (iii) has a
16legal or equitable ownership interest in the property as
17lessee, and (iv) is liable for the payment of real property
18taxes on that property.
19    Beginning in taxable year 2020, an assessment freeze
20homestead exemption is granted for real property that is
21improved with a permanent structure that is occupied as a
22residence by an applicant who (i) is the surviving spouse of a
23fallen police officer, soldier, or rescue worker during the
24taxable year, (ii) has a household income that does not exceed
25the maximum income limitation, (iii) is liable for paying real
26property taxes on the property, and (iv) is an owner of record

 

 

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1of the property or has a legal or equitable interest in the
2property as evidenced by a written instrument. This homestead
3exemption shall also apply to a leasehold interest in a parcel
4of property improved with a permanent structure that is a
5single family residence that is occupied as a residence by a
6person who (i) is the surviving spouse of a fallen police
7officer, soldier, or rescue worker during the taxable year,
8(ii) has a household income that does not exceed the maximum
9income limitation, (iii) has a legal or equitable ownership
10interest in the property as lessee, and (iv) is liable for the
11payment of real property taxes on that property.
12    In counties of 3,000,000 or more inhabitants, the amount of
13the exemption for all taxable years is the equalized assessed
14value of the residence in the taxable year for which
15application is made minus the base amount. In all other
16counties, the amount of the exemption is as follows: (i)
17through taxable year 2005 and for taxable year 2007 and
18thereafter, the amount of this exemption shall be the equalized
19assessed value of the residence in the taxable year for which
20application is made minus the base amount; and (ii) for taxable
21year 2006, the amount of the exemption is as follows:
22        (1) For an applicant who has a household income of
23    $45,000 or less, the amount of the exemption is the
24    equalized assessed value of the residence in the taxable
25    year for which application is made minus the base amount.
26        (2) For an applicant who has a household income

 

 

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1    exceeding $45,000 but not exceeding $46,250, the amount of
2    the exemption is (i) the equalized assessed value of the
3    residence in the taxable year for which application is made
4    minus the base amount (ii) multiplied by 0.8.
5        (3) For an applicant who has a household income
6    exceeding $46,250 but not exceeding $47,500, the amount of
7    the exemption is (i) the equalized assessed value of the
8    residence in the taxable year for which application is made
9    minus the base amount (ii) multiplied by 0.6.
10        (4) For an applicant who has a household income
11    exceeding $47,500 but not exceeding $48,750, the amount of
12    the exemption is (i) the equalized assessed value of the
13    residence in the taxable year for which application is made
14    minus the base amount (ii) multiplied by 0.4.
15        (5) For an applicant who has a household income
16    exceeding $48,750 but not exceeding $50,000, the amount of
17    the exemption is (i) the equalized assessed value of the
18    residence in the taxable year for which application is made
19    minus the base amount (ii) multiplied by 0.2.
20    When the applicant is a surviving spouse of an applicant
21for a prior year for the same residence for which an exemption
22under this Section has been granted, the base year and base
23amount for that residence are the same as for the applicant for
24the prior year.
25    Each year at the time the assessment books are certified to
26the County Clerk, the Board of Review or Board of Appeals shall

 

 

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1give to the County Clerk a list of the assessed values of
2improvements on each parcel qualifying for this exemption that
3were added after the base year for this parcel and that
4increased the assessed value of the property.
5    In the case of land improved with an apartment building
6owned and operated as a cooperative or a building that is a
7life care facility that qualifies as a cooperative, the maximum
8reduction from the equalized assessed value of the property is
9limited to the sum of the reductions calculated for each unit
10occupied as a residence by a person or persons (i) 65 years of
11age or older, (ii) with a household income that does not exceed
12the maximum income limitation, (iii) who is liable, by contract
13with the owner or owners of record, for paying real property
14taxes on the property, and (iv) who is an owner of record of a
15legal or equitable interest in the cooperative apartment
16building, other than a leasehold interest. In the instance of a
17cooperative where a homestead exemption has been granted under
18this Section, the cooperative association or its management
19firm shall credit the savings resulting from that exemption
20only to the apportioned tax liability of the owner who
21qualified for the exemption. Any person who willfully refuses
22to credit that savings to an owner who qualifies for the
23exemption is guilty of a Class B misdemeanor.
24    When a homestead exemption has been granted under this
25Section and an applicant then becomes a resident of a facility
26licensed under the Assisted Living and Shared Housing Act, the

 

 

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1Nursing Home Care Act, the Specialized Mental Health
2Rehabilitation Act of 2013, the ID/DD Community Care Act, or
3the MC/DD Act, the exemption shall be granted in subsequent
4years so long as the residence (i) continues to be occupied by
5the qualified applicant's spouse or (ii) if remaining
6unoccupied, is still owned by the qualified applicant for the
7homestead exemption.
8    Beginning January 1, 1997, when an individual dies who
9would have qualified for an exemption under this Section, and
10the surviving spouse does not independently qualify for this
11exemption because of age, the exemption under this Section
12shall be granted to the surviving spouse for the taxable year
13preceding and the taxable year of the death, provided that,
14except for age, the surviving spouse meets all other
15qualifications for the granting of this exemption for those
16years.
17    When married persons maintain separate residences, the
18exemption provided for in this Section may be claimed by only
19one of such persons and for only one residence.
20    For taxable year 1994 only, in counties having less than
213,000,000 inhabitants, to receive the exemption, a person shall
22submit an application by February 15, 1995 to the Chief County
23Assessment Officer of the county in which the property is
24located. In counties having 3,000,000 or more inhabitants, for
25taxable year 1994 and all subsequent taxable years, to receive
26the exemption, a person may submit an application to the Chief

 

 

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1County Assessment Officer of the county in which the property
2is located during such period as may be specified by the Chief
3County Assessment Officer. The Chief County Assessment Officer
4in counties of 3,000,000 or more inhabitants shall annually
5give notice of the application period by mail or by
6publication. In counties having less than 3,000,000
7inhabitants, beginning with taxable year 1995 and thereafter,
8to receive the exemption, a person shall submit an application
9by July 1 of each taxable year to the Chief County Assessment
10Officer of the county in which the property is located. A
11county may, by ordinance, establish a date for submission of
12applications that is different than July 1. The applicant shall
13submit with the application an affidavit of the applicant's
14total household income, age, marital status (and if married the
15name and address of the applicant's spouse, if known), and
16principal dwelling place of members of the household on January
171 of the taxable year. The Department shall establish, by rule,
18a method for verifying the accuracy of affidavits filed by
19applicants under this Section, and the Chief County Assessment
20Officer may conduct audits of any taxpayer claiming an
21exemption under this Section to verify that the taxpayer is
22eligible to receive the exemption. Each application shall
23contain or be verified by a written declaration that it is made
24under the penalties of perjury. A taxpayer's signing a
25fraudulent application under this Act is perjury, as defined in
26Section 32-2 of the Criminal Code of 2012. The applications

 

 

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1shall be clearly marked as applications for the Senior Citizens
2Assessment Freeze Homestead Exemption and must contain a notice
3that any taxpayer who receives the exemption is subject to an
4audit by the Chief County Assessment Officer.
5    Notwithstanding any other provision to the contrary, in
6counties having fewer than 3,000,000 inhabitants, if an
7applicant fails to file the application required by this
8Section in a timely manner and this failure to file is due to a
9mental or physical condition sufficiently severe so as to
10render the applicant incapable of filing the application in a
11timely manner, the Chief County Assessment Officer may extend
12the filing deadline for a period of 30 days after the applicant
13regains the capability to file the application, but in no case
14may the filing deadline be extended beyond 3 months of the
15original filing deadline. In order to receive the extension
16provided in this paragraph, the applicant shall provide the
17Chief County Assessment Officer with a signed statement from
18the applicant's physician, advanced practice registered nurse,
19or physician assistant stating the nature and extent of the
20condition, that, in the physician's, advanced practice
21registered nurse's, or physician assistant's opinion, the
22condition was so severe that it rendered the applicant
23incapable of filing the application in a timely manner, and the
24date on which the applicant regained the capability to file the
25application.
26    Beginning January 1, 1998, notwithstanding any other

 

 

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1provision to the contrary, in counties having fewer than
23,000,000 inhabitants, if an applicant fails to file the
3application required by this Section in a timely manner and
4this failure to file is due to a mental or physical condition
5sufficiently severe so as to render the applicant incapable of
6filing the application in a timely manner, the Chief County
7Assessment Officer may extend the filing deadline for a period
8of 3 months. In order to receive the extension provided in this
9paragraph, the applicant shall provide the Chief County
10Assessment Officer with a signed statement from the applicant's
11physician, advanced practice registered nurse, or physician
12assistant stating the nature and extent of the condition, and
13that, in the physician's, advanced practice registered
14nurse's, or physician assistant's opinion, the condition was so
15severe that it rendered the applicant incapable of filing the
16application in a timely manner.
17    In counties having less than 3,000,000 inhabitants, if an
18applicant was denied an exemption in taxable year 1994 and the
19denial occurred due to an error on the part of an assessment
20official, or his or her agent or employee, then beginning in
21taxable year 1997 the applicant's base year, for purposes of
22determining the amount of the exemption, shall be 1993 rather
23than 1994. In addition, in taxable year 1997, the applicant's
24exemption shall also include an amount equal to (i) the amount
25of any exemption denied to the applicant in taxable year 1995
26as a result of using 1994, rather than 1993, as the base year,

 

 

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1(ii) the amount of any exemption denied to the applicant in
2taxable year 1996 as a result of using 1994, rather than 1993,
3as the base year, and (iii) the amount of the exemption
4erroneously denied for taxable year 1994.
5    For purposes of this Section, a person who will be 65 years
6of age during the current taxable year shall be eligible to
7apply for the homestead exemption during that taxable year.
8Application shall be made during the application period in
9effect for the county of his or her residence.
10    The Chief County Assessment Officer may determine the
11eligibility of a life care facility that qualifies as a
12cooperative to receive the benefits provided by this Section by
13use of an affidavit, application, visual inspection,
14questionnaire, or other reasonable method in order to insure
15that the tax savings resulting from the exemption are credited
16by the management firm to the apportioned tax liability of each
17qualifying resident. The Chief County Assessment Officer may
18request reasonable proof that the management firm has so
19credited that exemption.
20    Except as provided in this Section, all information
21received by the chief county assessment officer or the
22Department from applications filed under this Section, or from
23any investigation conducted under the provisions of this
24Section, shall be confidential, except for official purposes or
25pursuant to official procedures for collection of any State or
26local tax or enforcement of any civil or criminal penalty or

 

 

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1sanction imposed by this Act or by any statute or ordinance
2imposing a State or local tax. Any person who divulges any such
3information in any manner, except in accordance with a proper
4judicial order, is guilty of a Class A misdemeanor.
5    Nothing contained in this Section shall prevent the
6Director or chief county assessment officer from publishing or
7making available reasonable statistics concerning the
8operation of the exemption contained in this Section in which
9the contents of claims are grouped into aggregates in such a
10way that information contained in any individual claim shall
11not be disclosed.
12    Notwithstanding any other provision of law, for taxable
13year 2017 and thereafter, in counties of 3,000,000 or more
14inhabitants, the amount of the exemption shall be the greater
15of (i) the amount of the exemption otherwise calculated under
16this Section or (ii) $2,000.
17    (d) Each Chief County Assessment Officer shall annually
18publish a notice of availability of the exemption provided
19under this Section. The notice shall be published at least 60
20days but no more than 75 days prior to the date on which the
21application must be submitted to the Chief County Assessment
22Officer of the county in which the property is located. The
23notice shall appear in a newspaper of general circulation in
24the county.
25    Notwithstanding Sections 6 and 8 of the State Mandates Act,
26no reimbursement by the State is required for the

 

 

HB5487- 30 -LRB101 18224 HLH 67666 b

1implementation of any mandate created by this Section.
2(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
399-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
48-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.