103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3399

 

Introduced 2/17/2023, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for taxable year 2024, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000). Provides that, beginning in taxable year 2025, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption shall be increased each year by the percentage increase, if any, in the Consumer Price Index. Effective immediately.


LRB103 30943 HLH 57501 b

 

 

A BILL FOR

 

HB3399LRB103 30943 HLH 57501 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. Low-Income Senior Citizens Assessment Freeze
8Homestead Exemption.
9    (a) This Section may be cited as the Low-Income Senior
10Citizens Assessment 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
16value of any added improvements which increased the assessed
17value of the 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
7equalized assessed value of the residence is less than the
8equalized assessed value in the existing base year (provided
9that such equalized assessed value is not based on an assessed
10value that results from a temporary irregularity in the
11property that reduces the assessed value for one or more
12taxable years), then that subsequent taxable year shall become
13the base year until a new base year is established under the
14terms of this paragraph. For taxable year 1999 only, the Chief
15County Assessment Officer shall review (i) all taxable years
16for which the applicant applied and qualified for the
17exemption and (ii) the existing base year. The assessment
18officer shall select as the new base year the year with the
19lowest equalized assessed value. An equalized assessed value
20that is based on an assessed value that results from a
21temporary irregularity in the property that reduces the
22assessed value for one or more taxable years shall not be
23considered the lowest equalized assessed value. The selected
24year shall be the base year for taxable year 1999 and
25thereafter until a new base year is established under the
26terms of this paragraph.

 

 

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1    "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4    "Consumer Price Index-u" means the index published by the
5Bureau of Labor Statistics of the United States Department of
6Labor that measures the average change in prices of goods and
7services purchased by all urban consumers, United States city
8average, all items, 1982-84=100.
9    "Equalized assessed value" means the assessed value as
10equalized by the Illinois Department of Revenue.
11    "Household" means the applicant, the spouse of the
12applicant, and all persons using the residence of the
13applicant as their principal place of residence.
14    "Household income" means the combined income of the
15members of a household for the calendar year preceding the
16taxable year.
17    "Income" has the same meaning as provided in Section 3.07
18of the Senior Citizens and Persons with Disabilities Property
19Tax Relief Act, except that, beginning in assessment year
202001, "income" does not include veteran's benefits.
21    "Internal Revenue Code of 1986" means the United States
22Internal Revenue Code of 1986 or any successor law or laws
23relating to federal income taxes in effect for the year
24preceding the taxable year.
25    "Life care facility that qualifies as a cooperative" means
26a facility as defined in Section 2 of the Life Care Facilities

 

 

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1Act.
2    "Maximum income limitation" means:
3        (1) $35,000 prior to taxable year 1999;
4        (2) $40,000 in taxable years 1999 through 2003;
5        (3) $45,000 in taxable years 2004 through 2005;
6        (4) $50,000 in taxable years 2006 and 2007;
7        (5) $55,000 in taxable years 2008 through 2016;
8        (6) for taxable year 2017, (i) $65,000 for qualified
9    property located in a county with 3,000,000 or more
10    inhabitants and (ii) $55,000 for qualified property
11    located in a county with fewer than 3,000,000 inhabitants;
12    and
13        (7) for taxable years 2018 through 2023 and
14    thereafter, $65,000 for all qualified property; .
15        (8) for taxable year 2024, $75,000; and
16        (9) for taxable years 2025 and thereafter, the maximum
17    income limitation for the immediately preceding taxable
18    year, multiplied by one plus the percentage increase, if
19    any, in the Consumer Price Index-u for the 12-month period
20    ending in September of the calendar year immediately
21    preceding the taxable year for which the limitation is
22    calculated.
23    As an alternative income valuation, a homeowner who is
24enrolled in any of the following programs may be presumed to
25have household income that does not exceed the maximum income
26limitation for that tax year as required by this Section: Aid

 

 

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1to the Aged, Blind or Disabled (AABD) Program or the
2Supplemental Nutrition Assistance Program (SNAP), both of
3which are administered by the Department of Human Services;
4the Low Income Home Energy Assistance Program (LIHEAP), which
5is administered by the Department of Commerce and Economic
6Opportunity; The Benefit Access program, which is administered
7by the Department on Aging; and the Senior Citizens Real
8Estate Tax Deferral Program.
9    A chief county assessment officer may indicate that he or
10she has verified an applicant's income eligibility for this
11exemption but may not report which program or programs, if
12any, enroll the applicant. Release of personal information
13submitted pursuant to this Section shall be deemed an
14unwarranted invasion of personal privacy under the Freedom of
15Information Act.
16    "Residence" means the principal dwelling place and
17appurtenant structures used for residential purposes in this
18State occupied on January 1 of the taxable year by a household
19and so much of the surrounding land, constituting the parcel
20upon which the dwelling place is situated, as is used for
21residential purposes. If the Chief County Assessment Officer
22has established a specific legal description for a portion of
23property constituting the residence, then that portion of
24property shall be deemed the residence for the purposes of
25this Section.
26    "Taxable year" means the calendar year during which ad

 

 

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1valorem property taxes payable in the next succeeding year are
2levied.
3    (c) Beginning in taxable year 1994, a low-income senior
4citizens assessment freeze homestead exemption is granted for
5real property that is improved with a permanent structure that
6is occupied as a residence by an applicant who (i) is 65 years
7of age or older during the taxable year, (ii) has a household
8income that does not exceed the maximum income limitation,
9(iii) is liable for paying real property taxes on the
10property, and (iv) is an owner of record of the property or has
11a legal or equitable interest in the property as evidenced by a
12written instrument. This homestead exemption shall also apply
13to a leasehold interest in a parcel of property improved with a
14permanent structure that is a single family residence that is
15occupied as a residence by a person who (i) is 65 years of age
16or older during the taxable year, (ii) has a household income
17that does not exceed the maximum income limitation, (iii) has
18a legal or equitable ownership interest in the property as
19lessee, and (iv) is liable for the payment of real property
20taxes on that property.
21    In counties of 3,000,000 or more inhabitants, the amount
22of the exemption for all taxable years is the equalized
23assessed value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

 

 

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

 

 

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1    the exemption is (i) the equalized assessed value of the
2    residence in the taxable year for which application is
3    made minus the base amount (ii) multiplied by 0.2.
4    When the applicant is a surviving spouse of an applicant
5for a prior year for the same residence for which an exemption
6under this Section has been granted, the base year and base
7amount for that residence are the same as for the applicant for
8the prior year.
9    Each year at the time the assessment books are certified
10to the County Clerk, the Board of Review or Board of Appeals
11shall give to the County Clerk a list of the assessed values of
12improvements on each parcel qualifying for this exemption that
13were added after the base year for this parcel and that
14increased the assessed value of the property.
15    In the case of land improved with an apartment building
16owned and operated as a cooperative or a building that is a
17life care facility that qualifies as a cooperative, the
18maximum reduction from the equalized assessed value of the
19property is limited to the sum of the reductions calculated
20for each unit occupied as a residence by a person or persons
21(i) 65 years of age or older, (ii) with a household income that
22does not exceed the maximum income limitation, (iii) who is
23liable, by contract with the owner or owners of record, for
24paying real property taxes on the property, and (iv) who is an
25owner of record of a legal or equitable interest in the
26cooperative apartment building, other than a leasehold

 

 

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

 

 

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1years.
2    When married persons maintain separate residences, the
3exemption provided for in this Section may be claimed by only
4one of such persons and for only one residence.
5    For taxable year 1994 only, in counties having less than
63,000,000 inhabitants, to receive the exemption, a person
7shall submit an application by February 15, 1995 to the Chief
8County Assessment Officer of the county in which the property
9is located. In counties having 3,000,000 or more inhabitants,
10for taxable year 1994 and all subsequent taxable years, to
11receive the exemption, a person may submit an application to
12the Chief County Assessment Officer of the county in which the
13property is located during such period as may be specified by
14the Chief County Assessment Officer. The Chief County
15Assessment Officer in counties of 3,000,000 or more
16inhabitants shall annually give notice of the application
17period by mail or by publication. In counties having less than
183,000,000 inhabitants, beginning with taxable year 1995 and
19thereafter, to receive the exemption, a person shall submit an
20application by July 1 of each taxable year to the Chief County
21Assessment Officer of the county in which the property is
22located. A county may, by ordinance, establish a date for
23submission of applications that is different than July 1. The
24applicant shall submit with the application an affidavit of
25the applicant's total household income, age, marital status
26(and if married the name and address of the applicant's

 

 

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1spouse, if known), and principal dwelling place of members of
2the household on January 1 of the taxable year. The Department
3shall establish, by rule, a method for verifying the accuracy
4of affidavits filed by applicants under this Section, and the
5Chief County Assessment Officer may conduct audits of any
6taxpayer claiming an exemption under this Section to verify
7that the taxpayer is eligible to receive the exemption. Each
8application shall contain or be verified by a written
9declaration that it is made under the penalties of perjury. A
10taxpayer's signing a fraudulent application under this Act is
11perjury, as defined in Section 32-2 of the Criminal Code of
122012. The applications shall be clearly marked as applications
13for the Low-Income Senior Citizens Assessment Freeze Homestead
14Exemption and must contain a notice that any taxpayer who
15receives the exemption is subject to an audit by the Chief
16County Assessment Officer.
17    Notwithstanding any other provision to the contrary, in
18counties having fewer than 3,000,000 inhabitants, if an
19applicant fails to file the application required by this
20Section in a timely manner and this failure to file is due to a
21mental or physical condition sufficiently severe so as to
22render the applicant incapable of filing the application in a
23timely manner, the Chief County Assessment Officer may extend
24the filing deadline for a period of 30 days after the applicant
25regains the capability to file the application, but in no case
26may the filing deadline be extended beyond 3 months of the

 

 

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1original filing deadline. In order to receive the extension
2provided in this paragraph, the applicant shall provide the
3Chief County Assessment Officer with a signed statement from
4the applicant's physician, advanced practice registered nurse,
5or physician assistant stating the nature and extent of the
6condition, that, in the physician's, advanced practice
7registered nurse's, or physician assistant's opinion, the
8condition was so severe that it rendered the applicant
9incapable of filing the application in a timely manner, and
10the date on which the applicant regained the capability to
11file the application.
12    Beginning January 1, 1998, notwithstanding any other
13provision to the contrary, in counties having fewer than
143,000,000 inhabitants, if an applicant fails to file the
15application required by this Section in a timely manner and
16this failure to file is due to a mental or physical condition
17sufficiently severe so as to render the applicant incapable of
18filing the application in a timely manner, the Chief County
19Assessment Officer may extend the filing deadline for a period
20of 3 months. In order to receive the extension provided in this
21paragraph, the applicant shall provide the Chief County
22Assessment Officer with a signed statement from the
23applicant's physician, advanced practice registered nurse, or
24physician assistant stating the nature and extent of the
25condition, and that, in the physician's, advanced practice
26registered nurse's, or physician assistant's opinion, the

 

 

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1condition was so severe that it rendered the applicant
2incapable of filing the application in a timely manner.
3    In counties having less than 3,000,000 inhabitants, if an
4applicant was denied an exemption in taxable year 1994 and the
5denial occurred due to an error on the part of an assessment
6official, or his or her agent or employee, then beginning in
7taxable year 1997 the applicant's base year, for purposes of
8determining the amount of the exemption, shall be 1993 rather
9than 1994. In addition, in taxable year 1997, the applicant's
10exemption shall also include an amount equal to (i) the amount
11of any exemption denied to the applicant in taxable year 1995
12as a result of using 1994, rather than 1993, as the base year,
13(ii) the amount of any exemption denied to the applicant in
14taxable year 1996 as a result of using 1994, rather than 1993,
15as the base year, and (iii) the amount of the exemption
16erroneously denied for taxable year 1994.
17    For purposes of this Section, a person who will be 65 years
18of age during the current taxable year shall be eligible to
19apply for the homestead exemption during that taxable year.
20Application shall be made during the application period in
21effect for the county of his or her residence.
22    The Chief County Assessment Officer may determine the
23eligibility of a life care facility that qualifies as a
24cooperative to receive the benefits provided by this Section
25by use of an affidavit, application, visual inspection,
26questionnaire, or other reasonable method in order to insure

 

 

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1that the tax savings resulting from the exemption are credited
2by the management firm to the apportioned tax liability of
3each qualifying resident. The Chief County Assessment Officer
4may request reasonable proof that the management firm has so
5credited that exemption.
6    Except as provided in this Section, all information
7received by the chief county assessment officer or the
8Department from applications filed under this Section, or from
9any investigation conducted under the provisions of this
10Section, shall be confidential, except for official purposes
11or pursuant to official procedures for collection of any State
12or local tax or enforcement of any civil or criminal penalty or
13sanction imposed by this Act or by any statute or ordinance
14imposing a State or local tax. Any person who divulges any such
15information in any manner, except in accordance with a proper
16judicial order, is guilty of a Class A misdemeanor.
17    Nothing contained in this Section shall prevent the
18Director or chief county assessment officer from publishing or
19making available reasonable statistics concerning the
20operation of the exemption contained in this Section in which
21the contents of claims are grouped into aggregates in such a
22way that information contained in any individual claim shall
23not be disclosed.
24    Notwithstanding any other provision of law, for taxable
25year 2017 and thereafter, in counties of 3,000,000 or more
26inhabitants, the amount of the exemption shall be the greater

 

 

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1of (i) the amount of the exemption otherwise calculated under
2this Section or (ii) $2,000.
3    (c-5) Notwithstanding any other provision of law, each
4chief county assessment officer may approve this exemption for
5the 2020 taxable year, without application, for any property
6that was approved for this exemption for the 2019 taxable
7year, provided that:
8        (1) the county board has declared a local disaster as
9    provided in the Illinois Emergency Management Agency Act
10    related to the COVID-19 public health emergency;
11        (2) the owner of record of the property as of January
12    1, 2020 is the same as the owner of record of the property
13    as of January 1, 2019;
14        (3) the exemption for the 2019 taxable year has not
15    been determined to be an erroneous exemption as defined by
16    this Code; and
17        (4) the applicant for the 2019 taxable year has not
18    asked for the exemption to be removed for the 2019 or 2020
19    taxable years.
20    Nothing in this subsection shall preclude or impair the
21authority of a chief county assessment officer to conduct
22audits of any taxpayer claiming an exemption under this
23Section to verify that the taxpayer is eligible to receive the
24exemption as provided elsewhere in this Section.
25    (c-10) Notwithstanding any other provision of law, each
26chief county assessment officer may approve this exemption for

 

 

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1the 2021 taxable year, without application, for any property
2that was approved for this exemption for the 2020 taxable
3year, if:
4        (1) the county board has declared a local disaster as
5    provided in the Illinois Emergency Management Agency Act
6    related to the COVID-19 public health emergency;
7        (2) the owner of record of the property as of January
8    1, 2021 is the same as the owner of record of the property
9    as of January 1, 2020;
10        (3) the exemption for the 2020 taxable year has not
11    been determined to be an erroneous exemption as defined by
12    this Code; and
13        (4) the taxpayer for the 2020 taxable year has not
14    asked for the exemption to be removed for the 2020 or 2021
15    taxable years.
16    Nothing in this subsection shall preclude or impair the
17authority of a chief county assessment officer to conduct
18audits of any taxpayer claiming an exemption under this
19Section to verify that the taxpayer is eligible to receive the
20exemption as provided elsewhere in this Section.
21    (d) Each Chief County Assessment Officer shall annually
22publish a notice of availability of the exemption provided
23under this Section. The notice shall be published at least 60
24days but no more than 75 days prior to the date on which the
25application must be submitted to the Chief County Assessment
26Officer of the county in which the property is located. The

 

 

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1notice shall appear in a newspaper of general circulation in
2the county.
3    Notwithstanding Sections 6 and 8 of the State Mandates
4Act, no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
7102-895, eff. 5-23-22.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.