95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0512

 

Introduced 2/1/2007, by Rep. Ed Sullivan, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code concerning the Senior Citizens Assessment Freeze Homestead Exemption. Sets forth provisions for calculating the base amount for a new residence if the taxpayer changes residences. Effective immediately.


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

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
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 Section 15-172 as follows:
 
6     (35 ILCS 200/15-172)
7     Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8 Exemption.
9     (a) This Section may be cited as the Senior Citizens
10 Assessment Freeze Homestead Exemption.
11     (b) As used in this Section:
12     "Applicant" means an individual who has filed an
13 application under this Section.
14     "Base amount" means the base year equalized assessed value
15 of the residence plus the first year's equalized assessed value
16 of any added improvements which increased the assessed value of
17 the residence after the base year.
18     Beginning with the 2007 taxable year, if a taxpayer who has
19 been granted an exemption under this Section transfers his or
20 her residence and acquires a new residence and the equalized
21 assessed value of the new residence is equal to or less than
22 the equalized assessed value of the taxpayer's prior residence,
23 then, beginning with the taxable year immediately following the

 

 

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1 year, the base amount for the new residence is the equalized
2 assessed value of the new residence at the time of acquisition
3 multiplied by a rate equal to: (i) the base amount of the
4 taxpayer's prior residence for the year in which the new
5 residence was acquired; divided by (ii) the equalized assessed
6 value of the taxpayer's prior residence for the year in which
7 the new residence was acquired.
8     "Base year" means the taxable year prior to the taxable
9 year for which the applicant first qualifies and applies for
10 the exemption provided that in the prior taxable year the
11 property was improved with a permanent structure that was
12 occupied as a residence by the applicant who was liable for
13 paying real property taxes on the property and who was either
14 (i) an owner of record of the property or had legal or
15 equitable interest in the property as evidenced by a written
16 instrument or (ii) had a legal or equitable interest as a
17 lessee in the parcel of property that was single family
18 residence. If in any subsequent taxable year for which the
19 applicant applies and qualifies for the exemption the equalized
20 assessed value of the residence is less than the equalized
21 assessed value in the existing base year (provided that such
22 equalized assessed value is not based on an assessed value that
23 results from a temporary irregularity in the property that
24 reduces the assessed value for one or more taxable years), then
25 that subsequent taxable year shall become the base year until a
26 new base year is established under the terms of this paragraph.

 

 

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1 For taxable year 1999 only, the Chief County Assessment Officer
2 shall review (i) all taxable years for which the applicant
3 applied and qualified for the exemption and (ii) the existing
4 base year. The assessment officer shall select as the new base
5 year the year with the lowest equalized assessed value. An
6 equalized assessed value that is based on an assessed value
7 that results from a temporary irregularity in the property that
8 reduces the assessed value for one or more taxable years shall
9 not be considered the lowest equalized assessed value. The
10 selected year shall be the base year for taxable year 1999 and
11 thereafter until a new base year is established under the terms
12 of this paragraph.
13     "Chief County Assessment Officer" means the County
14 Assessor or Supervisor of Assessments of the county in which
15 the property is located.
16     "Equalized assessed value" means the assessed value as
17 equalized by the Illinois Department of Revenue.
18     "Household" means the applicant, the spouse of the
19 applicant, and all persons using the residence of the applicant
20 as their principal place of residence.
21     "Household income" means the combined income of the members
22 of a household for the calendar year preceding the taxable
23 year.
24     "Income" has the same meaning as provided in Section 3.07
25 of the Senior Citizens and Disabled Persons Property Tax Relief
26 and Pharmaceutical Assistance Act, except that, beginning in

 

 

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1 assessment year 2001, "income" does not include veteran's
2 benefits.
3     "Internal Revenue Code of 1986" means the United States
4 Internal Revenue Code of 1986 or any successor law or laws
5 relating to federal income taxes in effect for the year
6 preceding the taxable year.
7     "Life care facility that qualifies as a cooperative" means
8 a facility as defined in Section 2 of the Life Care Facilities
9 Act.
10     "Residence" means the principal dwelling place and
11 appurtenant structures used for residential purposes in this
12 State occupied on January 1 of the taxable year by a household
13 and so much of the surrounding land, constituting the parcel
14 upon which the dwelling place is situated, as is used for
15 residential purposes. If the Chief County Assessment Officer
16 has established a specific legal description for a portion of
17 property constituting the residence, then that portion of
18 property shall be deemed the residence for the purposes of this
19 Section.
20     "Taxable year" means the calendar year during which ad
21 valorem property taxes payable in the next succeeding year are
22 levied.
23     (c) Beginning in taxable year 1994, a senior citizens
24 assessment freeze homestead exemption is granted for real
25 property that is improved with a permanent structure that is
26 occupied as a residence by an applicant who (i) is 65 years of

 

 

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1 age or older during the taxable year, (ii) has a household
2 income of $35,000 or less prior to taxable year 1999, $40,000
3 or less in taxable years 1999 through 2003, $45,000 or less in
4 taxable year 2004 and 2005, and $50,000 or less in taxable year
5 2006 and thereafter, (iii) is liable for paying real property
6 taxes on the property, and (iv) is an owner of record of the
7 property or has a legal or equitable interest in the property
8 as evidenced by a written instrument. This homestead exemption
9 shall also apply to a leasehold interest in a parcel of
10 property improved with a permanent structure that is a single
11 family residence that is occupied as a residence by a person
12 who (i) is 65 years of age or older during the taxable year,
13 (ii) has a household income of $35,000 or less prior to taxable
14 year 1999, $40,000 or less in taxable years 1999 through 2003,
15 $45,000 or less in taxable year 2004 and 2005, and $50,000 or
16 less in taxable year 2006 and thereafter, (iii) has a legal or
17 equitable ownership interest in the property as lessee, and
18 (iv) is liable for the payment of real property taxes on that
19 property.
20     Through taxable year 2005, the amount of this exemption
21 shall be the equalized assessed value of the residence in the
22 taxable year for which application is made minus the base
23 amount. For taxable year 2006 and thereafter, the amount of the
24 exemption is as follows:
25         (1) For an applicant who has a household income of
26     $45,000 or less, the amount of the exemption is the

 

 

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

 

 

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1 the prior year.
2     Each year at the time the assessment books are certified to
3 the County Clerk, the Board of Review or Board of Appeals shall
4 give to the County Clerk a list of the assessed values of
5 improvements on each parcel qualifying for this exemption that
6 were added after the base year for this parcel and that
7 increased the assessed value of the property.
8     In the case of land improved with an apartment building
9 owned and operated as a cooperative or a building that is a
10 life care facility that qualifies as a cooperative, the maximum
11 reduction from the equalized assessed value of the property is
12 limited to the sum of the reductions calculated for each unit
13 occupied as a residence by a person or persons (i) 65 years of
14 age or older, (ii) with a household income of $35,000 or less
15 prior to taxable year 1999, $40,000 or less in taxable years
16 1999 through 2003, $45,000 or less in taxable year 2004 and
17 2005, and $50,000 or less in taxable year 2006 and thereafter,
18 (iii) who is liable, by contract with the owner or owners of
19 record, for paying real property taxes on the property, and
20 (iv) who is an owner of record of a legal or equitable interest
21 in the cooperative apartment building, other than a leasehold
22 interest. In the instance of a cooperative where a homestead
23 exemption has been granted under this Section, the cooperative
24 association or its management firm shall credit the savings
25 resulting from that exemption only to the apportioned tax
26 liability of the owner who qualified for the exemption. Any

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1     (d) Each Chief County Assessment Officer shall annually
2 publish a notice of availability of the exemption provided
3 under this Section. The notice shall be published at least 60
4 days but no more than 75 days prior to the date on which the
5 application must be submitted to the Chief County Assessment
6 Officer of the county in which the property is located. The
7 notice shall appear in a newspaper of general circulation in
8 the county.
9     Notwithstanding Sections 6 and 8 of the State Mandates Act,
10 no reimbursement by the State is required for the
11 implementation of any mandate created by this Section.
12 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.