101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3199

 

Introduced 2/11/2020, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for the purposes of the senior citizens assessment freeze homestead exemption, "income" does not include any required minimum distribution from an individual retirement annuity. Effective immediately.


LRB101 19861 HLH 69381 b

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

 

 

A BILL FOR

 

SB3199LRB101 19861 HLH 69381 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
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying real property taxes on the property and who was either

 

 

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

 

 

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1Assessor or Supervisor of Assessments of the county in which
2the property is located.
3    "Equalized assessed value" means the assessed value as
4equalized by the Illinois Department of Revenue.
5    "Household" means the applicant, the spouse of the
6applicant, and all persons using the residence of the applicant
7as their principal place of residence.
8    "Household income" means the combined income of the members
9of a household for the calendar year preceding the taxable
10year.
11    "Income" has the same meaning as provided in Section 3.07
12of the Senior Citizens and Persons with Disabilities Property
13Tax Relief Act, except that, beginning in assessment year 2001,
14"income" does not include veteran's benefits, and, beginning in
15assessment year 2021, "income" does not include any required
16minimum distribution from an individual retirement annuity, as
17defined under Section 408(b) of the Internal Revenue Code of
181986.
19    "Internal Revenue Code of 1986" means the United States
20Internal Revenue Code of 1986 or any successor law or laws
21relating to federal income taxes in effect for the year
22preceding the taxable year.
23    "Life care facility that qualifies as a cooperative" means
24a facility as defined in Section 2 of the Life Care Facilities
25Act.
26    "Maximum income limitation" means:

 

 

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1        (1) $35,000 prior to taxable year 1999;
2        (2) $40,000 in taxable years 1999 through 2003;
3        (3) $45,000 in taxable years 2004 through 2005;
4        (4) $50,000 in taxable years 2006 and 2007;
5        (5) $55,000 in taxable years 2008 through 2016;
6        (6) for taxable year 2017, (i) $65,000 for qualified
7    property located in a county with 3,000,000 or more
8    inhabitants and (ii) $55,000 for qualified property
9    located in a county with fewer than 3,000,000 inhabitants;
10    and
11        (7) for taxable years 2018 and thereafter, $65,000 for
12    all qualified property.
13    "Residence" means the principal dwelling place and
14appurtenant structures used for residential purposes in this
15State occupied on January 1 of the taxable year by a household
16and so much of the surrounding land, constituting the parcel
17upon which the dwelling place is situated, as is used for
18residential purposes. If the Chief County Assessment Officer
19has established a specific legal description for a portion of
20property constituting the residence, then that portion of
21property shall be deemed the residence for the purposes of this
22Section.
23    "Taxable year" means the calendar year during which ad
24valorem property taxes payable in the next succeeding year are
25levied.
26    (c) Beginning in taxable year 1994, a senior citizens

 

 

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1assessment freeze homestead exemption is granted for real
2property that is improved with a permanent structure that is
3occupied as a residence by an applicant who (i) is 65 years of
4age or older during the taxable year, (ii) has a household
5income that does not exceed the maximum income limitation,
6(iii) is liable for paying real property taxes on the property,
7and (iv) is an owner of record of the property or has a legal or
8equitable interest in the property as evidenced by a written
9instrument. This homestead exemption shall also apply to a
10leasehold interest in a parcel of property improved with a
11permanent structure that is a single family residence that is
12occupied as a residence by a person who (i) is 65 years of age
13or older during the taxable year, (ii) has a household income
14that does not exceed the maximum income limitation, (iii) has a
15legal or equitable ownership interest in the property as
16lessee, and (iv) is liable for the payment of real property
17taxes on that property.
18    In counties of 3,000,000 or more inhabitants, the amount of
19the exemption for all taxable years is the equalized assessed
20value of the residence in the taxable year for which
21application is made minus the base amount. In all other
22counties, the amount of the exemption is as follows: (i)
23through taxable year 2005 and for taxable year 2007 and
24thereafter, the amount of this exemption shall be the equalized
25assessed value of the residence in the taxable year for which
26application is made minus the base amount; and (ii) for taxable

 

 

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1year 2006, the amount of the exemption is as follows:
2        (1) For an applicant who has a household income of
3    $45,000 or less, the amount of the exemption is the
4    equalized assessed value of the residence in the taxable
5    year for which application is made minus the base amount.
6        (2) For an applicant who has a household income
7    exceeding $45,000 but not exceeding $46,250, the amount of
8    the exemption is (i) the equalized assessed value of the
9    residence in the taxable year for which application is made
10    minus the base amount (ii) multiplied by 0.8.
11        (3) For an applicant who has a household income
12    exceeding $46,250 but not exceeding $47,500, the amount of
13    the exemption is (i) the equalized assessed value of the
14    residence in the taxable year for which application is made
15    minus the base amount (ii) multiplied by 0.6.
16        (4) For an applicant who has a household income
17    exceeding $47,500 but not exceeding $48,750, the amount of
18    the exemption is (i) the equalized assessed value of the
19    residence in the taxable year for which application is made
20    minus the base amount (ii) multiplied by 0.4.
21        (5) For an applicant who has a household income
22    exceeding $48,750 but not exceeding $50,000, the amount of
23    the exemption is (i) the equalized assessed value of the
24    residence in the taxable year for which application is made
25    minus the base amount (ii) multiplied by 0.2.
26    When the applicant is a surviving spouse of an applicant

 

 

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

 

 

SB3199- 8 -LRB101 19861 HLH 69381 b

1qualified for the exemption. Any person who willfully refuses
2to credit that savings to an owner who qualifies for the
3exemption is guilty of a Class B misdemeanor.
4    When a homestead exemption has been granted under this
5Section and an applicant then becomes a resident of a facility
6licensed under the Assisted Living and Shared Housing Act, the
7Nursing Home Care Act, the Specialized Mental Health
8Rehabilitation Act of 2013, the ID/DD Community Care Act, or
9the MC/DD Act, the exemption shall be granted in subsequent
10years so long as the residence (i) continues to be occupied by
11the qualified applicant's spouse or (ii) if remaining
12unoccupied, is still owned by the qualified applicant for the
13homestead exemption.
14    Beginning January 1, 1997, when an individual dies who
15would have qualified for an exemption under this Section, and
16the surviving spouse does not independently qualify for this
17exemption because of age, the exemption under this Section
18shall be granted to the surviving spouse for the taxable year
19preceding and the taxable year of the death, provided that,
20except for age, the surviving spouse meets all other
21qualifications for the granting of this exemption for those
22years.
23    When married persons maintain separate residences, the
24exemption provided for in this Section may be claimed by only
25one of such persons and for only one residence.
26    For taxable year 1994 only, in counties having less than

 

 

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13,000,000 inhabitants, to receive the exemption, a person shall
2submit an application by February 15, 1995 to the Chief County
3Assessment Officer of the county in which the property is
4located. In counties having 3,000,000 or more inhabitants, for
5taxable year 1994 and all subsequent taxable years, to receive
6the exemption, a person may submit an application to the Chief
7County Assessment Officer of the county in which the property
8is located during such period as may be specified by the Chief
9County Assessment Officer. The Chief County Assessment Officer
10in counties of 3,000,000 or more inhabitants shall annually
11give notice of the application period by mail or by
12publication. In counties having less than 3,000,000
13inhabitants, beginning with taxable year 1995 and thereafter,
14to receive the exemption, a person shall submit an application
15by July 1 of each taxable year to the Chief County Assessment
16Officer of the county in which the property is located. A
17county may, by ordinance, establish a date for submission of
18applications that is different than July 1. The applicant shall
19submit with the application an affidavit of the applicant's
20total household income, age, marital status (and if married the
21name and address of the applicant's spouse, if known), and
22principal dwelling place of members of the household on January
231 of the taxable year. The Department shall establish, by rule,
24a method for verifying the accuracy of affidavits filed by
25applicants under this Section, and the Chief County Assessment
26Officer may conduct audits of any taxpayer claiming an

 

 

SB3199- 10 -LRB101 19861 HLH 69381 b

1exemption under this Section to verify that the taxpayer is
2eligible to receive the exemption. Each application shall
3contain or be verified by a written declaration that it is made
4under the penalties of perjury. A taxpayer's signing a
5fraudulent application under this Act is perjury, as defined in
6Section 32-2 of the Criminal Code of 2012. The applications
7shall be clearly marked as applications for the Senior Citizens
8Assessment Freeze Homestead Exemption and must contain a notice
9that any taxpayer who receives the exemption is subject to an
10audit by the Chief County Assessment Officer.
11    Notwithstanding any other provision to the contrary, in
12counties having fewer than 3,000,000 inhabitants, if an
13applicant fails to file the application required by this
14Section in a timely manner and this failure to file is due to a
15mental or physical condition sufficiently severe so as to
16render the applicant incapable of filing the application in a
17timely manner, the Chief County Assessment Officer may extend
18the filing deadline for a period of 30 days after the applicant
19regains the capability to file the application, but in no case
20may the filing deadline be extended beyond 3 months of the
21original filing deadline. In order to receive the extension
22provided in this paragraph, the applicant shall provide the
23Chief County Assessment Officer with a signed statement from
24the applicant's physician, advanced practice registered nurse,
25or physician assistant stating the nature and extent of the
26condition, that, in the physician's, advanced practice

 

 

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1registered nurse's, or physician assistant's opinion, the
2condition was so severe that it rendered the applicant
3incapable of filing the application in a timely manner, and the
4date on which the applicant regained the capability to file the
5application.
6    Beginning January 1, 1998, notwithstanding any other
7provision to the contrary, in counties having fewer than
83,000,000 inhabitants, if an applicant fails to file the
9application required by this Section in a timely manner and
10this failure to file is due to a mental or physical condition
11sufficiently severe so as to render the applicant incapable of
12filing the application in a timely manner, the Chief County
13Assessment Officer may extend the filing deadline for a period
14of 3 months. In order to receive the extension provided in this
15paragraph, the applicant shall provide the Chief County
16Assessment Officer with a signed statement from the applicant's
17physician, advanced practice registered nurse, or physician
18assistant stating the nature and extent of the condition, and
19that, in the physician's, advanced practice registered
20nurse's, or physician assistant's opinion, the condition was so
21severe that it rendered the applicant incapable of filing the
22application in a timely manner.
23    In counties having less than 3,000,000 inhabitants, if an
24applicant was denied an exemption in taxable year 1994 and the
25denial occurred due to an error on the part of an assessment
26official, or his or her agent or employee, then beginning in

 

 

SB3199- 12 -LRB101 19861 HLH 69381 b

1taxable year 1997 the applicant's base year, for purposes of
2determining the amount of the exemption, shall be 1993 rather
3than 1994. In addition, in taxable year 1997, the applicant's
4exemption shall also include an amount equal to (i) the amount
5of any exemption denied to the applicant in taxable year 1995
6as a result of using 1994, rather than 1993, as the base year,
7(ii) the amount of any exemption denied to the applicant in
8taxable year 1996 as a result of using 1994, rather than 1993,
9as the base year, and (iii) the amount of the exemption
10erroneously denied for taxable year 1994.
11    For purposes of this Section, a person who will be 65 years
12of age during the current taxable year shall be eligible to
13apply for the homestead exemption during that taxable year.
14Application shall be made during the application period in
15effect for the county of his or her residence.
16    The Chief County Assessment Officer may determine the
17eligibility of a life care facility that qualifies as a
18cooperative to receive the benefits provided by this Section by
19use of an affidavit, application, visual inspection,
20questionnaire, or other reasonable method in order to insure
21that the tax savings resulting from the exemption are credited
22by the management firm to the apportioned tax liability of each
23qualifying resident. The Chief County Assessment Officer may
24request reasonable proof that the management firm has so
25credited that exemption.
26    Except as provided in this Section, all information

 

 

SB3199- 13 -LRB101 19861 HLH 69381 b

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

 

 

SB3199- 14 -LRB101 19861 HLH 69381 b

1application must be submitted to the Chief County Assessment
2Officer of the county in which the property is located. The
3notice shall appear in a newspaper of general circulation in
4the county.
5    Notwithstanding Sections 6 and 8 of the State Mandates Act,
6no reimbursement by the State is required for the
7implementation of any mandate created by this Section.
8(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
999-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
108-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.