093_HB2476

 
                                     LRB093 09907 RCE 10157 b

 1        AN ACT concerning taxes.

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

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Sections 14-20, 15-10, and 15-172 as follows:

 6        (35 ILCS 200/14-20)
 7        Sec.  14-20.  Certificate of error; counties of less than
 8    3,000,000.  In  any   county   with   less   than   3,000,000
 9    inhabitants, if, at any time before judgment or order of sale
10    is  entered  in  any  proceeding  to collect or to enjoin the
11    collection  of  taxes  based  upon  any  assessment  of   any
12    property,  the  chief  county assessment officer discovers an
13    error or mistake in the  assessment  (other  than  errors  of
14    judgment  as  to  the  valuation  of the property), he or she
15    shall issue to the person erroneously assessed a  certificate
16    setting forth the nature of the error and the cause or causes
17    of  the  error.  In  any  county  with  less  than  3,000,000
18    inhabitants, if an owner fails to file an application for the
19    Senior   Citizens  and  Disabled  Persons  Assessment  Freeze
20    Homestead Exemption provided in  Section  15-172  during  the
21    previous assessment year and qualifies for the exemption, the
22    Chief  County Assessment Officer pursuant to this Section, or
23    the Board of Review pursuant to Section 16-75, shall issue  a
24    certificate  of  error  setting  forth  the  correct  taxable
25    valuation  of  the  property.  The certificate, when properly
26    endorsed by the majority of  the  board  of  review,  showing
27    their concurrence, and not otherwise, may be used in evidence
28    in   any   court  of  competent  jurisdiction,  and  when  so
29    introduced in evidence, shall become  a  part  of  the  court
30    record  and  shall not be removed from the files except on an
31    order of the court.
 
                            -2-      LRB093 09907 RCE 10157 b
 1    (Source: P.A. 90-552, eff. 12-12-97; 91-377, eff. 7-30-99.)

 2        (35 ILCS 200/15-10)
 3        Sec.    15-10.  Exempt    property;    procedures     for
 4    certification.   All  property  granted  an  exemption by the
 5    Department pursuant to the requirements of Section  15-5  and
 6    described   in  the  Sections  following  Section  15-30  and
 7    preceding Section 16-5, to the  extent  therein  limited,  is
 8    exempt  from  taxation.  In  order  to  maintain  that exempt
 9    status, the  titleholder  or  the  owner  of  the  beneficial
10    interest  of  any  property that is exempt must file with the
11    chief county assessment officer, on or before January  31  of
12    each year (May 31 in the case of property exempted by Section
13    15-170),  an  affidavit  stating  whether  there has been any
14    change in the ownership or use of the property or the  status
15    of  the  owner-resident,  or  that  a  disabled  veteran  who
16    qualifies under Section 15-165 owned and used the property as
17    of January 1 of that year.  The nature of any change shall be
18    stated  in  the  affidavit.    Failure  to  file an affidavit
19    shall,  in  the  discretion  of   the   assessment   officer,
20    constitute cause to terminate the exemption of that property,
21    notwithstanding any other provision of this Code. Owners of 5
22    or more such exempt parcels within a county may file a single
23    annual  affidavit  in  lieu  of an affidavit for each parcel.
24    The  assessment  officer,  upon  request,  shall  furnish  an
25    affidavit form to the owners, in which the  owner  may  state
26    whether  there has been any change in the ownership or use of
27    the property or status of the owner or resident as of January
28    1 of that year. The owner of 5 or more exempt  parcels  shall
29    list  all the properties giving the same information for each
30    parcel as required of owners who file individual affidavits.
31        However,  titleholders  or  owners  of   the   beneficial
32    interest  in any property exempted under any of the following
33    provisions are not required to submit an annual filing  under
 
                            -3-      LRB093 09907 RCE 10157 b
 1    this Section:
 2             (1)  Section  15-45  (burial grounds) in counties of
 3        less  than  3,000,000  inhabitants   and   owned   by   a
 4        not-for-profit organization.
 5             (2)  Section 15-40.
 6             (3)  Section 15-50 (United States property).
 7        If there is a change in use or ownership, however, notice
 8    must be filed pursuant to Section 15-20.
 9        An application for homestead exemptions shall be filed as
10    provided   in   Section  15-170  (senior  citizens  homestead
11    exemption), Section  15-172  (senior  citizens  and  disabled
12    persons  assessment  freeze homestead exemption), and Section
13    15-175 (general homestead exemption), respectively.
14    (Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)

15        (35 ILCS 200/15-172)
16        Sec.  15-172.  Senior  Citizens  and   Disabled   Persons
17    Assessment Freeze Homestead Exemption.
18        (a)  This Section may be cited as the Senior Citizens and
19    Disabled Persons Assessment Freeze Homestead Exemption.
20        (b)  As used in this Section:
21        "Applicant"   means   an  individual  who  has  filed  an
22    application under this Section.
23        "Base amount" means  the  base  year  equalized  assessed
24    value  of  the  residence  plus  the  first  year's equalized
25    assessed value of any added improvements which increased  the
26    assessed value of the residence after the base year.
27        "Base  year"  means the taxable year prior to the taxable
28    year for which the applicant first qualifies and applies  for
29    the  exemption  provided  that  in the prior taxable year the
30    property was improved with a  permanent  structure  that  was
31    occupied  as  a residence by the applicant who was liable for
32    paying real property taxes on the property and who was either
33    (i) an owner of record  of  the  property  or  had  legal  or
 
                            -4-      LRB093 09907 RCE 10157 b
 1    equitable  interest in the property as evidenced by a written
 2    instrument or (ii) had a legal or  equitable  interest  as  a
 3    lessee  in  the  parcel  of  property  that was single family
 4    residence. If in any subsequent taxable year  for  which  the
 5    applicant   applies  and  qualifies  for  the  exemption  the
 6    equalized assessed value of the residence is  less  than  the
 7    equalized  assessed value in the existing base year (provided
 8    that such  equalized  assessed  value  is  not  based  on  an
 9    assessed  value that results from a temporary irregularity in
10    the property that reduces the assessed value for one or  more
11    taxable  years),  then  that  subsequent  taxable  year shall
12    become the base year until a new  base  year  is  established
13    under  the  terms  of  this paragraph.  For taxable year 1999
14    only, the Chief County Assessment Officer  shall  review  (i)
15    all  taxable  years  for  which  the  applicant  applied  and
16    qualified for the exemption and (ii) the existing base year.
17    The  assessment officer shall select as the new base year the
18    year with the lowest equalized assessed value.  An  equalized
19    assessed  value  that  is  based  on  an  assessed value that
20    results from a temporary irregularity in  the  property  that
21    reduces  the  assessed  value  for  one or more taxable years
22    shall not be considered the lowest equalized assessed  value.
23    The  selected  year  shall  be the base year for taxable year
24    1999 and thereafter until a  new  base  year  is  established
25    under the terms of this paragraph.
26        "Chief   County  Assessment  Officer"  means  the  County
27    Assessor or Supervisor of Assessments of the county in  which
28    the property is located.
29        "Disabled  person" means a person unable to engage in any
30    substantial  gainful  activity  by  reason  of  a   medically
31    determinable  physical  or  mental impairment that (i) can be
32    expected to result in death or (ii)  has  lasted  or  can  be
33    expected  to last for a continuous period of not less than 12
34    months.  Disabled persons applying for  the  exemption  under
 
                            -5-      LRB093 09907 RCE 10157 b
 1    this  Section  must  submit  proof  of  the disability in the
 2    manner prescribed by the  chief  county  assessment  officer.
 3    Proof  that  an  applicant  is eligible to receive disability
 4    benefits under the federal Social  Security  Act  constitutes
 5    proof  of  disability for purposes of this Section.  Issuance
 6    of an Illinois Disabled Person  Identification  Card  to  the
 7    applicant  stating  that  the  possessor  is  under a Class 2
 8    disability,  as  defined  in  Section  4A  of  the   Illinois
 9    Identification Card Act, constitutes proof that the person is
10    a  disabled  person for purposes of this Section.  A disabled
11    person not covered under the federal Social Security Act  and
12    not  presenting a Disabled Person Identification Card stating
13    that the claimant is under a  Class  2  disability  shall  be
14    examined  by  a  physician  designated  by  the  chief county
15    assessment officer, and the status as a disabled person shall
16    be determined using the  standards  of  the  Social  Security
17    Administration.  The  applicant  shall  pay  the costs of any
18    required examination.
19        "Equalized assessed value" means the  assessed  value  as
20    equalized by the Illinois Department of Revenue.
21        "Household"  means  the  applicant,  the  spouse  of  the
22    applicant,  and  all  persons  using  the  residence  of  the
23    applicant as their principal place of residence.
24        "Household  income"  means  the  combined  income  of the
25    members of a household for the calendar  year  preceding  the
26    taxable year.
27        "Income" has the same meaning as provided in Section 3.07
28    of  the  Senior  Citizens  and  Disabled Persons Property Tax
29    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
30    beginning  in assessment year 2001, "income" does not include
31    veteran's benefits.
32        "Internal Revenue Code of 1986" means the  United  States
33    Internal  Revenue  Code  of 1986 or any successor law or laws
34    relating to federal income  taxes  in  effect  for  the  year
 
                            -6-      LRB093 09907 RCE 10157 b
 1    preceding the taxable year.
 2        "Life  care  facility  that  qualifies  as a cooperative"
 3    means a facility as defined in Section 2  of  the  Life  Care
 4    Facilities Act.
 5        "Residence"   means  the  principal  dwelling  place  and
 6    appurtenant structures used for residential purposes in  this
 7    State  occupied  on  January  1  of  the  taxable  year  by a
 8    household and so much of the surrounding  land,  constituting
 9    the  parcel  upon which the dwelling place is situated, as is
10    used for residential purposes. If the Chief County Assessment
11    Officer has established a specific legal  description  for  a
12    portion  of  property  constituting  the residence, then that
13    portion of property shall be deemed  the  residence  for  the
14    purposes of this Section.
15        "Taxable  year"  means  the calendar year during which ad
16    valorem property taxes payable in the  next  succeeding  year
17    are levied.
18        (c)  Beginning  in  (1)  taxable  year 1994, for a senior
19    citizens and (2) taxable year 2004, for disabled persons,  an
20    assessment  freeze  homestead  exemption  is granted for real
21    property that is improved with a permanent structure that  is
22    occupied  as  a residence by an applicant who (i) is 65 years
23    of age or older, or disabled, during the taxable  year,  (ii)
24    has  a  household  income of $35,000 or less prior to taxable
25    year 1999 or  $40,000  or  less  in  taxable  year  1999  and
26    thereafter, (iii) is liable for paying real property taxes on
27    the  property, and (iv) is an owner of record of the property
28    or has a legal or  equitable  interest  in  the  property  as
29    evidenced  by  a written instrument. This homestead exemption
30    shall also apply to a  leasehold  interest  in  a  parcel  of
31    property improved with a permanent structure that is a single
32    family  residence that is occupied as a residence by a person
33    who (i) is 65 years of age or older, or disabled, during  the
34    taxable  year, (ii) has a household income of $35,000 or less
 
                            -7-      LRB093 09907 RCE 10157 b
 1    prior to taxable year 1999 or $40,000 or less in taxable year
 2    1999 and thereafter, (iii) has a legal or equitable ownership
 3    interest in the property as lessee, and (iv)  is  liable  for
 4    the payment of real property taxes on that property.
 5        The  amount  of  this  exemption  shall  be the equalized
 6    assessed value of the residence in the taxable year for which
 7    application is made minus the base amount.
 8        When the applicant is a surviving spouse of an  applicant
 9    for  a  prior  year  for  the  same  residence  for  which an
10    exemption under this Section has been granted, the base  year
11    and  base  amount  for that residence are the same as for the
12    applicant for the prior year.
13        Each year at the time the assessment books are  certified
14    to  the County Clerk, the Board of Review or Board of Appeals
15    shall give to the County Clerk a list of the assessed  values
16    of  improvements on each parcel qualifying for this exemption
17    that were added after the base year for this parcel and  that
18    increased the assessed value of the property.
19        In  the  case of land improved with an apartment building
20    owned and operated as a cooperative or a building that  is  a
21    life  care  facility  that  qualifies  as  a cooperative, the
22    maximum reduction from the equalized assessed  value  of  the
23    property  is  limited to the sum of the reductions calculated
24    for each unit occupied as a residence by a person or  persons
25    65  years  of  age  or  older,  or disabled, with a household
26    income of $35,000 or less  prior  to  taxable  year  1999  or
27    $40,000  or  less  in taxable year 1999 and thereafter who is
28    liable, by contract with the owner or owners of  record,  for
29    paying  real  property  taxes  on  the property and who is an
30    owner of record of a  legal  or  equitable  interest  in  the
31    cooperative   apartment  building,  other  than  a  leasehold
32    interest. In the instance of a cooperative where a  homestead
33    exemption   has   been   granted   under  this  Section,  the
34    cooperative association or its management firm  shall  credit
 
                            -8-      LRB093 09907 RCE 10157 b
 1    the  savings  resulting  from  that  exemption  only  to  the
 2    apportioned  tax liability of the owner who qualified for the
 3    exemption.  Any person who willfully refuses to  credit  that
 4    savings to an owner who qualifies for the exemption is guilty
 5    of a Class B misdemeanor.
 6        When  a  homestead  exemption has been granted under this
 7    Section and  an  applicant  then  becomes  a  resident  of  a
 8    facility  licensed  under  the  Nursing  Home  Care  Act, the
 9    exemption shall be granted in subsequent years so long as the
10    residence (i) continues  to  be  occupied  by  the  qualified
11    applicant's  spouse or (ii) if remaining unoccupied, is still
12    owned by the qualified applicant for the homestead exemption.
13        Beginning January 1, 1997 for senior citizens and January
14    1, 2004 for disabled persons, when  an  individual  dies  who
15    would have qualified for an exemption under this Section, and
16    the  surviving spouse does not independently qualify for this
17    exemption because he or she meets neither the of age nor  the
18    disability  requirement,  the  exemption  under  this Section
19    shall be granted to the surviving spouse for the taxable year
20    preceding and the taxable year of the death,  provided  that,
21    except  for  meeting  neither  the  age  nor  the  disability
22    requirement,   the   surviving   spouse   meets   all   other
23    qualifications  for  the granting of this exemption for those
24    years.
25        When married persons maintain  separate  residences,  the
26    exemption provided for in this Section may be claimed by only
27    one of such persons and for only one residence.
28        For  taxable year 1994 only, in counties having less than
29    3,000,000 inhabitants, to receive  the  exemption,  a  person
30    shall submit an application by February 15, 1995 to the Chief
31    County Assessment Officer of the county in which the property
32    is   located.    In   counties   having   3,000,000  or  more
33    inhabitants, for taxable year 1994 and all subsequent taxable
34    years, to receive the  exemption,  a  person  may  submit  an
 
                            -9-      LRB093 09907 RCE 10157 b
 1    application  to  the  Chief  County Assessment Officer of the
 2    county in which the property is located during such period as
 3    may be specified by the Chief County Assessment Officer.  The
 4    Chief County Assessment Officer in counties of  3,000,000  or
 5    more   inhabitants   shall   annually   give  notice  of  the
 6    application period by mail or by  publication.   In  counties
 7    having   less  than  3,000,000  inhabitants,  beginning  with
 8    taxable year 1995 and thereafter, to receive the exemption, a
 9    person shall submit an application by July 1 of each  taxable
10    year  to the Chief County Assessment Officer of the county in
11    which the property is located.  A county may,  by  ordinance,
12    establish  a  date  for  submission  of  applications that is
13    different than July 1. The applicant shall  submit  with  the
14    application  an  affidavit of the applicant's total household
15    income, age, marital status (and  if  married  the  name  and
16    address  of the applicant's spouse, if known), disability (if
17    applying  for  the  exemption  as  a  disabled  person),  and
18    principal dwelling place  of  members  of  the  household  on
19    January   1   of  the  taxable  year.  The  Department  shall
20    establish, by rule, a method for verifying  the  accuracy  of
21    affidavits  filed  by  applicants  under  this  Section.  The
22    applications  shall be clearly marked as applications for the
23    Senior  Citizens  and  Disabled  Persons  Assessment   Freeze
24    Homestead Exemption.
25        Notwithstanding  any  other provision to the contrary, in
26    counties having  fewer  than  3,000,000  inhabitants,  if  an
27    applicant  fails  to  file  the  application required by this
28    Section in a timely manner and this failure to file is due to
29    a mental or physical condition sufficiently severe so  as  to
30    render the applicant incapable of filing the application in a
31    timely manner, the Chief County Assessment Officer may extend
32    the  filing  deadline  for  a  period  of  30  days after the
33    applicant regains the capability to file the application, but
34    in no case may the  filing  deadline  be  extended  beyond  3
 
                            -10-     LRB093 09907 RCE 10157 b
 1    months  of the original filing deadline.  In order to receive
 2    the extension provided in this paragraph, the applicant shall
 3    provide the Chief County Assessment  Officer  with  a  signed
 4    statement  from  the applicant's physician stating the nature
 5    and  extent  of  the  condition,  that,  in  the  physician's
 6    opinion, the condition was so severe  that  it  rendered  the
 7    applicant  incapable  of  filing  the application in a timely
 8    manner, and the date on  which  the  applicant  regained  the
 9    capability to file the application.
10        Beginning  January  1,  1998,  notwithstanding  any other
11    provision to the contrary,  in  counties  having  fewer  than
12    3,000,000  inhabitants,  if  an  applicant  fails to file the
13    application required by this Section in a timely  manner  and
14    this failure to file is due to a mental or physical condition
15    sufficiently  severe  so as to render the applicant incapable
16    of filing the application  in  a  timely  manner,  the  Chief
17    County  Assessment Officer may extend the filing deadline for
18    a period of 3 months.  In  order  to  receive  the  extension
19    provided  in  this paragraph, the applicant shall provide the
20    Chief County Assessment Officer with a signed statement  from
21    the  applicant's  physician  stating the nature and extent of
22    the condition, and that,  in  the  physician's  opinion,  the
23    condition  was  so  severe  that  it  rendered  the applicant
24    incapable of filing the application in a timely manner.
25        In counties having less than 3,000,000 inhabitants, if an
26    applicant was denied an exemption in taxable  year  1994  and
27    the  denial  occurred  due  to  an  error  on  the part of an
28    assessment official, or his or her agent  or  employee,  then
29    beginning in taxable year 1997 the applicant's base year, for
30    purposes of determining the amount of the exemption, shall be
31    1993 rather than 1994. In addition, in taxable year 1997, the
32    applicant's  exemption  shall also include an amount equal to
33    (i) the amount of any exemption denied to  the  applicant  in
34    taxable  year  1995  as  a  result of using 1994, rather than
 
                            -11-     LRB093 09907 RCE 10157 b
 1    1993, as the base year, (ii)  the  amount  of  any  exemption
 2    denied  to  the applicant in taxable year 1996 as a result of
 3    using 1994, rather than 1993, as the base year, and (iii) the
 4    amount of the exemption erroneously denied for  taxable  year
 5    1994.
 6        For  purposes  of  this  Section, a person who will be 65
 7    years of age or is disabled during the current  taxable  year
 8    shall be eligible to apply for the homestead exemption during
 9    that  taxable  year.   Application  shall  be made during the
10    application period in effect for the county  of  his  or  her
11    residence.
12        The  Chief  County  Assessment  Officer may determine the
13    eligibility of a life  care  facility  that  qualifies  as  a
14    cooperative  to receive the benefits provided by this Section
15    by use  of  an  affidavit,  application,  visual  inspection,
16    questionnaire,  or other reasonable method in order to insure
17    that  the  tax  savings  resulting  from  the  exemption  are
18    credited by  the  management  firm  to  the  apportioned  tax
19    liability  of  each  qualifying  resident.   The Chief County
20    Assessment Officer may  request  reasonable  proof  that  the
21    management firm has so credited that exemption.
22        Except  as  provided  in  this  Section,  all information
23    received by  the  chief  county  assessment  officer  or  the
24    Department  from  applications  filed  under this Section, or
25    from any investigation conducted under the provisions of this
26    Section, shall be confidential, except for official  purposes
27    or  pursuant  to  official  procedures  for collection of any
28    State or local tax or enforcement of any  civil  or  criminal
29    penalty  or sanction imposed by this Act or by any statute or
30    ordinance imposing a State  or  local  tax.  Any  person  who
31    divulges  any  such  information  in  any  manner,  except in
32    accordance with a proper judicial order, is guilty of a Class
33    A misdemeanor.
34        Nothing contained  in  this  Section  shall  prevent  the
 
                            -12-     LRB093 09907 RCE 10157 b
 1    Director  or  chief county assessment officer from publishing
 2    or making  available  reasonable  statistics  concerning  the
 3    operation of the exemption contained in this Section in which
 4    the  contents of claims are grouped into aggregates in such a
 5    way that information contained in any individual claim  shall
 6    not be disclosed.
 7        (d)  Each  Chief County Assessment Officer shall annually
 8    publish a notice of availability of  the  exemption  provided
 9    under  this  Section.  The notice shall be published at least
10    60 days but no more than 75 days prior to the date  on  which
11    the  application  must  be  submitted  to  the  Chief  County
12    Assessment  Officer  of  the  county in which the property is
13    located.  The notice shall appear in a newspaper  of  general
14    circulation in the county.
15        Notwithstanding  Sections  6  and 8 of the State Mandates
16    Act, no reimbursement  by  the  State  is  required  for  the
17    implementation of any mandate created by this Section.
18    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
19    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
20    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
21    eff. 6-30-99; 91-819, eff. 6-13-00.)

22        Section 90.  The State Mandates Act is amended by  adding
23    Section 8.27 as follows:

24        (30 ILCS 805/8.27 new)
25        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
26    and 8 of this Act, no reimbursement by the State is  required
27    for  the  implementation of any mandate created by the Senior
28    Citizens and Disabled  Persons  Assessment  Freeze  Homestead
29    Exemption under Section 15-172 of the Property Tax Code.