101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5793

 

Introduced , by Rep. Tom Weber

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, upon a resolution passed by the county board, if a person has been granted the homestead exemption for veterans with disabilities or the senior citizens assessment freeze homestead exemption, then the person qualifying need not reapply for the exemption. 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,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 15-169 and 15-172 as follows:
 
6    (35 ILCS 200/15-169)
7    Sec. 15-169. Homestead exemption for veterans with
8disabilities.
9    (a) Beginning with taxable year 2007, an annual homestead
10exemption, limited to the amounts set forth in subsections (b)
11and (b-3), is granted for property that is used as a qualified
12residence by a veteran with a disability.
13    (b) For taxable years prior to 2015, the amount of the
14exemption under this Section is as follows:
15        (1) for veterans with a service-connected disability
16    of at least (i) 75% for exemptions granted in taxable years
17    2007 through 2009 and (ii) 70% for exemptions granted in
18    taxable year 2010 and each taxable year thereafter, as
19    certified by the United States Department of Veterans
20    Affairs, the annual exemption is $5,000; and
21        (2) for veterans with a service-connected disability
22    of at least 50%, but less than (i) 75% for exemptions
23    granted in taxable years 2007 through 2009 and (ii) 70% for

 

 

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1    exemptions granted in taxable year 2010 and each taxable
2    year thereafter, as certified by the United States
3    Department of Veterans Affairs, the annual exemption is
4    $2,500.
5    (b-3) For taxable years 2015 and thereafter:
6        (1) if the veteran has a service connected disability
7    of 30% or more but less than 50%, as certified by the
8    United States Department of Veterans Affairs, then the
9    annual exemption is $2,500;
10        (2) if the veteran has a service connected disability
11    of 50% or more but less than 70%, as certified by the
12    United States Department of Veterans Affairs, then the
13    annual exemption is $5,000; and
14        (3) if the veteran has a service connected disability
15    of 70% or more, as certified by the United States
16    Department of Veterans Affairs, then the property is exempt
17    from taxation under this Code.
18    (b-5) If a homestead exemption is granted under this
19Section and the person awarded the exemption subsequently
20becomes a resident of a facility licensed under the Nursing
21Home Care Act or a facility operated by the United States
22Department of Veterans Affairs, then the exemption shall
23continue (i) so long as the residence continues to be occupied
24by the qualifying person's spouse or (ii) if the residence
25remains unoccupied but is still owned by the person who
26qualified for the homestead exemption.

 

 

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1    (c) The tax exemption under this Section carries over to
2the benefit of the veteran's surviving spouse as long as the
3spouse holds the legal or beneficial title to the homestead,
4permanently resides thereon, and does not remarry. If the
5surviving spouse sells the property, an exemption not to exceed
6the amount granted from the most recent ad valorem tax roll may
7be transferred to his or her new residence as long as it is
8used as his or her primary residence and he or she does not
9remarry.
10    (c-1) Beginning with taxable year 2015, nothing in this
11Section shall require the veteran to have qualified for or
12obtained the exemption before death if the veteran was killed
13in the line of duty.
14    (d) The exemption under this Section applies for taxable
15year 2007 and thereafter. A taxpayer who claims an exemption
16under Section 15-165 or 15-168 may not claim an exemption under
17this Section.
18    (e) Each taxpayer who has been granted an exemption under
19this Section must reapply on an annual basis. Application must
20be made during the application period in effect for the county
21of his or her residence. The assessor or chief county
22assessment officer may determine the eligibility of
23residential property to receive the homestead exemption
24provided by this Section by application, visual inspection,
25questionnaire, or other reasonable methods. The determination
26must be made in accordance with guidelines established by the

 

 

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1Department.
2    (e-1) If the person qualifying for the exemption does not
3occupy the qualified residence as of January 1 of the taxable
4year, the exemption granted under this Section shall be
5prorated on a monthly basis. The prorated exemption shall apply
6beginning with the first complete month in which the person
7occupies the qualified residence.
8    (e-5) In counties with less than 3,000,000 inhabitants,
9beginning in tax year 2020 and for each year thereafter, the
10county board may, by resolution, provide that if a person has
11been granted a homestead exemption under this Section, the
12person qualifying need not reapply for the exemption.
13    (f) For the purposes of this Section:
14    "Qualified residence" means real property, but less any
15portion of that property that is used for commercial purposes,
16with an equalized assessed value of less than $250,000 that is
17the primary residence of a veteran with a disability. Property
18rented for more than 6 months is presumed to be used for
19commercial purposes.
20    "Veteran" means an Illinois resident who has served as a
21member of the United States Armed Forces on active duty or
22State active duty, a member of the Illinois National Guard, or
23a member of the United States Reserve Forces and who has
24received an honorable discharge.
25(Source: P.A. 99-143, eff. 7-27-15; 99-375, eff. 8-17-15;
2699-642, eff. 7-28-16; 100-869, eff. 8-14-18.)
 

 

 

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1    (35 ILCS 200/15-172)
2    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
3Exemption.
4    (a) This Section may be cited as the Senior Citizens
5Assessment Freeze Homestead Exemption.
6    (b) As used in this Section:
7    "Applicant" means an individual who has filed an
8application under this Section.
9    "Base amount" means the base year equalized assessed value
10of the residence plus the first year's equalized assessed value
11of any added improvements which increased the assessed value of
12the residence after the base year.
13    "Base year" means the taxable year prior to the taxable
14year for which the applicant first qualifies and applies for
15the exemption provided that in the prior taxable year the
16property was improved with a permanent structure that was
17occupied as a residence by the applicant who was liable for
18paying real property taxes on the property and who was either
19(i) an owner of record of the property or had legal or
20equitable interest in the property as evidenced by a written
21instrument or (ii) had a legal or equitable interest as a
22lessee in the parcel of property that was single family
23residence. If in any subsequent taxable year for which the
24applicant applies and qualifies for the exemption the equalized
25assessed value of the residence is less than the equalized

 

 

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

 

 

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1    "Household income" means the combined income of the members
2of a household for the calendar year preceding the taxable
3year.
4    "Income" has the same meaning as provided in Section 3.07
5of the Senior Citizens and Persons with Disabilities Property
6Tax Relief Act, except that, beginning in assessment year 2001,
7"income" does not include veteran's benefits.
8    "Internal Revenue Code of 1986" means the United States
9Internal Revenue Code of 1986 or any successor law or laws
10relating to federal income taxes in effect for the year
11preceding the taxable year.
12    "Life care facility that qualifies as a cooperative" means
13a facility as defined in Section 2 of the Life Care Facilities
14Act.
15    "Maximum income limitation" means:
16        (1) $35,000 prior to taxable year 1999;
17        (2) $40,000 in taxable years 1999 through 2003;
18        (3) $45,000 in taxable years 2004 through 2005;
19        (4) $50,000 in taxable years 2006 and 2007;
20        (5) $55,000 in taxable years 2008 through 2016;
21        (6) for taxable year 2017, (i) $65,000 for qualified
22    property located in a county with 3,000,000 or more
23    inhabitants and (ii) $55,000 for qualified property
24    located in a county with fewer than 3,000,000 inhabitants;
25    and
26        (7) for taxable years 2018 and thereafter, $65,000 for

 

 

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1    all qualified property.
2    "Residence" means the principal dwelling place and
3appurtenant structures used for residential purposes in this
4State occupied on January 1 of the taxable year by a household
5and so much of the surrounding land, constituting the parcel
6upon which the dwelling place is situated, as is used for
7residential purposes. If the Chief County Assessment Officer
8has established a specific legal description for a portion of
9property constituting the residence, then that portion of
10property shall be deemed the residence for the purposes of this
11Section.
12    "Taxable year" means the calendar year during which ad
13valorem property taxes payable in the next succeeding year are
14levied.
15    (c) Beginning in taxable year 1994, a senior citizens
16assessment freeze homestead exemption is granted for real
17property that is improved with a permanent structure that is
18occupied as a residence by an applicant who (i) is 65 years of
19age or older during the taxable year, (ii) has a household
20income that does not exceed the maximum income limitation,
21(iii) is liable for paying real property taxes on the property,
22and (iv) is an owner of record of the property or has a legal or
23equitable interest in the property as evidenced by a written
24instrument. This homestead exemption shall also apply to a
25leasehold interest in a parcel of property improved with a
26permanent structure that is a single family residence that is

 

 

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1occupied as a residence by a person who (i) is 65 years of age
2or older during the taxable year, (ii) has a household income
3that does not exceed the maximum income limitation, (iii) has a
4legal or equitable ownership interest in the property as
5lessee, and (iv) is liable for the payment of real property
6taxes on that property.
7    In counties of 3,000,000 or more inhabitants, the amount of
8the exemption for all taxable years is the equalized assessed
9value of the residence in the taxable year for which
10application is made minus the base amount. In all other
11counties, the amount of the exemption is as follows: (i)
12through taxable year 2005 and for taxable year 2007 and
13thereafter, the amount of this exemption shall be the equalized
14assessed value of the residence in the taxable year for which
15application is made minus the base amount; and (ii) for taxable
16year 2006, the amount of the exemption is as follows:
17        (1) For an applicant who has a household income of
18    $45,000 or less, the amount of the exemption is the
19    equalized assessed value of the residence in the taxable
20    year for which application is made minus the base amount.
21        (2) For an applicant who has a household income
22    exceeding $45,000 but not exceeding $46,250, 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 0.8.
26        (3) For an applicant who has a household income

 

 

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

 

 

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1owned and operated as a cooperative or a building that is a
2life care facility that qualifies as a cooperative, the maximum
3reduction from the equalized assessed value of the property is
4limited to the sum of the reductions calculated for each unit
5occupied as a residence by a person or persons (i) 65 years of
6age or older, (ii) with a household income that does not exceed
7the maximum income limitation, (iii) who is liable, by contract
8with the owner or owners of record, for paying real property
9taxes on the property, and (iv) who is an owner of record of a
10legal or equitable interest in the cooperative apartment
11building, other than a leasehold interest. In the instance of a
12cooperative where a homestead exemption has been granted under
13this Section, the cooperative association or its management
14firm shall credit the savings resulting from that exemption
15only to the apportioned tax liability of the owner who
16qualified for the exemption. Any person who willfully refuses
17to credit that savings to an owner who qualifies for the
18exemption is guilty of a Class B misdemeanor.
19    When a homestead exemption has been granted under this
20Section and an applicant then becomes a resident of a facility
21licensed under the Assisted Living and Shared Housing Act, the
22Nursing Home Care Act, the Specialized Mental Health
23Rehabilitation Act of 2013, the ID/DD Community Care Act, or
24the MC/DD Act, the exemption shall be granted in subsequent
25years so long as the residence (i) continues to be occupied by
26the qualified applicant's spouse or (ii) if remaining

 

 

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1unoccupied, is still owned by the qualified applicant for the
2homestead exemption.
3    Beginning January 1, 1997, when an individual dies who
4would have qualified for an exemption under this Section, and
5the surviving spouse does not independently qualify for this
6exemption because of age, the exemption under this Section
7shall be granted to the surviving spouse for the taxable year
8preceding and the taxable year of the death, provided that,
9except for age, the surviving spouse meets all other
10qualifications for the granting of this exemption for those
11years.
12    When married persons maintain separate residences, the
13exemption provided for in this Section may be claimed by only
14one of such persons and for only one residence.
15    For taxable year 1994 only, in counties having less than
163,000,000 inhabitants, to receive the exemption, a person shall
17submit an application by February 15, 1995 to the Chief County
18Assessment Officer of the county in which the property is
19located. In counties having 3,000,000 or more inhabitants, for
20taxable year 1994 and all subsequent taxable years, to receive
21the exemption, a person may submit an application to the Chief
22County Assessment Officer of the county in which the property
23is located during such period as may be specified by the Chief
24County Assessment Officer. The Chief County Assessment Officer
25in counties of 3,000,000 or more inhabitants shall annually
26give notice of the application period by mail or by

 

 

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1publication. In counties having less than 3,000,000
2inhabitants, beginning with taxable year 1995 and thereafter,
3to receive the exemption, a person shall submit an application
4by July 1 of each taxable year to the Chief County Assessment
5Officer of the county in which the property is located. A
6county may, by ordinance, establish a date for submission of
7applications that is different than July 1. The applicant shall
8submit with the application an affidavit of the applicant's
9total household income, age, marital status (and if married the
10name and address of the applicant's spouse, if known), and
11principal dwelling place of members of the household on January
121 of the taxable year. The Department shall establish, by rule,
13a method for verifying the accuracy of affidavits filed by
14applicants under this Section, and the Chief County Assessment
15Officer may conduct audits of any taxpayer claiming an
16exemption under this Section to verify that the taxpayer is
17eligible to receive the exemption. Each application shall
18contain or be verified by a written declaration that it is made
19under the penalties of perjury. A taxpayer's signing a
20fraudulent application under this Act is perjury, as defined in
21Section 32-2 of the Criminal Code of 2012. The applications
22shall be clearly marked as applications for the Senior Citizens
23Assessment Freeze Homestead Exemption and must contain a notice
24that any taxpayer who receives the exemption is subject to an
25audit by the Chief County Assessment Officer.
26    Notwithstanding any other provision to the contrary, in

 

 

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1counties having fewer than 3,000,000 inhabitants, if an
2applicant fails to file the application required by this
3Section in a timely manner and this failure to file is due to a
4mental or physical condition sufficiently severe so as to
5render the applicant incapable of filing the application in a
6timely manner, the Chief County Assessment Officer may extend
7the filing deadline for a period of 30 days after the applicant
8regains the capability to file the application, but in no case
9may the filing deadline be extended beyond 3 months of the
10original filing deadline. In order to receive the extension
11provided in this paragraph, the applicant shall provide the
12Chief County Assessment Officer with a signed statement from
13the applicant's physician, advanced practice registered nurse,
14or physician assistant stating the nature and extent of the
15condition, that, in the physician's, advanced practice
16registered nurse's, or physician assistant's opinion, the
17condition was so severe that it rendered the applicant
18incapable of filing the application in a timely manner, and the
19date on which the applicant regained the capability to file the
20application.
21    Beginning January 1, 1998, notwithstanding any other
22provision to the contrary, in counties having fewer than
233,000,000 inhabitants, if an applicant fails to file the
24application required by this Section in a timely manner and
25this failure to file is due to a mental or physical condition
26sufficiently severe so as to render the applicant incapable of

 

 

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1filing the application in a timely manner, the Chief County
2Assessment Officer may extend the filing deadline for a period
3of 3 months. In order to receive the extension provided in this
4paragraph, the applicant shall provide the Chief County
5Assessment Officer with a signed statement from the applicant's
6physician, advanced practice registered nurse, or physician
7assistant stating the nature and extent of the condition, and
8that, in the physician's, advanced practice registered
9nurse's, or physician assistant's opinion, the condition was so
10severe that it rendered the applicant incapable of filing the
11application in a timely manner.
12    In counties having less than 3,000,000 inhabitants, if an
13applicant was denied an exemption in taxable year 1994 and the
14denial occurred due to an error on the part of an assessment
15official, or his or her agent or employee, then beginning in
16taxable year 1997 the applicant's base year, for purposes of
17determining the amount of the exemption, shall be 1993 rather
18than 1994. In addition, in taxable year 1997, the applicant's
19exemption shall also include an amount equal to (i) the amount
20of any exemption denied to the applicant in taxable year 1995
21as a result of using 1994, rather than 1993, as the base year,
22(ii) the amount of any exemption denied to the applicant in
23taxable year 1996 as a result of using 1994, rather than 1993,
24as the base year, and (iii) the amount of the exemption
25erroneously denied for taxable year 1994.
26    For purposes of this Section, a person who will be 65 years

 

 

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1of age during the current taxable year shall be eligible to
2apply for the homestead exemption during that taxable year.
3Application shall be made during the application period in
4effect for the county of his or her residence.
5    The Chief County Assessment Officer may determine the
6eligibility of a life care facility that qualifies as a
7cooperative to receive the benefits provided by this Section by
8use of an affidavit, application, visual inspection,
9questionnaire, or other reasonable method in order to insure
10that the tax savings resulting from the exemption are credited
11by the management firm to the apportioned tax liability of each
12qualifying resident. The Chief County Assessment Officer may
13request reasonable proof that the management firm has so
14credited that exemption.
15    Except as provided in this Section, all information
16received by the chief county assessment officer or the
17Department from applications filed under this Section, or from
18any investigation conducted under the provisions of this
19Section, shall be confidential, except for official purposes or
20pursuant to official procedures for collection of any State or
21local tax or enforcement of any civil or criminal penalty or
22sanction imposed by this Act or by any statute or ordinance
23imposing a State or local tax. Any person who divulges any such
24information in any manner, except in accordance with a proper
25judicial order, is guilty of a Class A misdemeanor.
26    Nothing contained in this Section shall prevent the

 

 

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1Director or chief county assessment officer from publishing or
2making available reasonable statistics concerning the
3operation of the exemption contained in this Section in which
4the contents of claims are grouped into aggregates in such a
5way that information contained in any individual claim shall
6not be disclosed.
7    Notwithstanding any other provision of law, for taxable
8year 2017 and thereafter, in counties of 3,000,000 or more
9inhabitants, the amount of the exemption shall be the greater
10of (i) the amount of the exemption otherwise calculated under
11this Section or (ii) $2,000.
12    (d) Each Chief County Assessment Officer shall annually
13publish a notice of availability of the exemption provided
14under this Section. The notice shall be published at least 60
15days but no more than 75 days prior to the date on which the
16application must be submitted to the Chief County Assessment
17Officer of the county in which the property is located. The
18notice shall appear in a newspaper of general circulation in
19the county.
20    (d-5) In counties with less than 3,000,000 inhabitants,
21beginning in tax year 2020 and for each year thereafter, the
22county board may, by resolution, provide that if a person has
23been granted a homestead exemption under this Section, the
24person qualifying need not reapply for the exemption.
25    (e) Notwithstanding Sections 6 and 8 of the State Mandates
26Act, no reimbursement by the State is required for the

 

 

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