102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2964

 

Introduced 12/15/2021, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

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


LRB102 22233 HLH 31429 b

 

 

A BILL FOR

 

SB2964LRB102 22233 HLH 31429 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed
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    "Equalized assessed value" means the assessed value as
5equalized by the Illinois Department of Revenue.
6    "Household" means the applicant, the spouse of the
7applicant, and all persons using the residence of the
8applicant as their principal place of residence.
9    "Household income" means the combined income of the
10members of a household for the calendar year preceding the
11taxable year.
12    "Income" has the same meaning as provided in Section 3.07
13of the Senior Citizens and Persons with Disabilities Property
14Tax Relief Act, except that, beginning in assessment year
152001, "income" does not include veteran's benefits, and,
16beginning in assessment year 2023, "income" does not include
17any required minimum distribution from an individual
18retirement annuity, as defined under Section 408(b) of the
19Internal Revenue Code of 1986.
20    "Internal Revenue Code of 1986" means the United States
21Internal Revenue Code of 1986 or any successor law or laws
22relating to federal income taxes in effect for the year
23preceding the taxable year.
24    "Life care facility that qualifies as a cooperative" means
25a facility as defined in Section 2 of the Life Care Facilities
26Act.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1exemption provided for in this Section may be claimed by only
2one of such persons and for only one residence.
3    For taxable year 1994 only, in counties having less than
43,000,000 inhabitants, to receive the exemption, a person
5shall submit an application by February 15, 1995 to the Chief
6County Assessment Officer of the county in which the property
7is located. In counties having 3,000,000 or more inhabitants,
8for taxable year 1994 and all subsequent taxable years, to
9receive the exemption, a person may submit an application to
10the Chief County Assessment Officer of the county in which the
11property is located during such period as may be specified by
12the Chief County Assessment Officer. The Chief County
13Assessment Officer in counties of 3,000,000 or more
14inhabitants shall annually give notice of the application
15period by mail or by publication. In counties having less than
163,000,000 inhabitants, beginning with taxable year 1995 and
17thereafter, to receive the exemption, a person shall submit an
18application by July 1 of each taxable year to the Chief County
19Assessment Officer of the county in which the property is
20located. A county may, by ordinance, establish a date for
21submission of applications that is different than July 1. The
22applicant shall submit with the application an affidavit of
23the applicant's total household income, age, marital status
24(and if married the name and address of the applicant's
25spouse, if known), and principal dwelling place of members of
26the household on January 1 of the taxable year. The Department

 

 

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1shall establish, by rule, a method for verifying the accuracy
2of affidavits filed by applicants under this Section, and the
3Chief County Assessment Officer may conduct audits of any
4taxpayer claiming an exemption under this Section to verify
5that the taxpayer is eligible to receive the exemption. Each
6application shall contain or be verified by a written
7declaration that it is made under the penalties of perjury. A
8taxpayer's signing a fraudulent application under this Act is
9perjury, as defined in Section 32-2 of the Criminal Code of
102012. The applications shall be clearly marked as applications
11for the Senior Citizens Assessment Freeze Homestead Exemption
12and must contain a notice that any taxpayer who receives the
13exemption is subject to an audit by the Chief County
14Assessment Officer.
15    Notwithstanding any other provision to the contrary, in
16counties having fewer than 3,000,000 inhabitants, if an
17applicant fails to file the application required by this
18Section in a timely manner and this failure to file is due to a
19mental or physical condition sufficiently severe so as to
20render the applicant incapable of filing the application in a
21timely manner, the Chief County Assessment Officer may extend
22the filing deadline for a period of 30 days after the applicant
23regains the capability to file the application, but in no case
24may the filing deadline be extended beyond 3 months of the
25original filing deadline. In order to receive the extension
26provided in this paragraph, the applicant shall provide the

 

 

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1Chief County Assessment Officer with a signed statement from
2the applicant's physician, advanced practice registered nurse,
3or physician assistant stating the nature and extent of the
4condition, that, in the physician's, advanced practice
5registered nurse's, or physician assistant's opinion, the
6condition was so severe that it rendered the applicant
7incapable of filing the application in a timely manner, and
8the date on which the applicant regained the capability to
9file the application.
10    Beginning January 1, 1998, notwithstanding any other
11provision to the contrary, in counties having fewer than
123,000,000 inhabitants, if an applicant fails to file the
13application required by this Section in a timely manner and
14this failure to file is due to a mental or physical condition
15sufficiently severe so as to render the applicant incapable of
16filing the application in a timely manner, the Chief County
17Assessment Officer may extend the filing deadline for a period
18of 3 months. In order to receive the extension provided in this
19paragraph, the applicant shall provide the Chief County
20Assessment Officer with a signed statement from the
21applicant's physician, advanced practice registered nurse, or
22physician assistant stating the nature and extent of the
23condition, and that, in the physician's, advanced practice
24registered nurse's, or physician assistant's opinion, the
25condition was so severe that it rendered the applicant
26incapable of filing the application in a timely manner.

 

 

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

 

 

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

 

 

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1    (c-5) Notwithstanding any other provision of law, each
2chief county assessment officer may approve this exemption for
3the 2020 taxable year, without application, for any property
4that was approved for this exemption for the 2019 taxable
5year, provided that:
6        (1) the county board has declared a local disaster as
7    provided in the Illinois Emergency Management Agency Act
8    related to the COVID-19 public health emergency;
9        (2) the owner of record of the property as of January
10    1, 2020 is the same as the owner of record of the property
11    as of January 1, 2019;
12        (3) the exemption for the 2019 taxable year has not
13    been determined to be an erroneous exemption as defined by
14    this Code; and
15        (4) the applicant for the 2019 taxable year has not
16    asked for the exemption to be removed for the 2019 or 2020
17    taxable years.
18    Nothing in this subsection shall preclude or impair the
19authority of a chief county assessment officer to conduct
20audits of any taxpayer claiming an exemption under this
21Section to verify that the taxpayer is eligible to receive the
22exemption as provided elsewhere in this Section.
23    (c-10) Notwithstanding any other provision of law, each
24chief county assessment officer may approve this exemption for
25the 2021 taxable year, without application, for any property
26that was approved for this exemption for the 2020 taxable

 

 

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1year, if:
2        (1) the county board has declared a local disaster as
3    provided in the Illinois Emergency Management Agency Act
4    related to the COVID-19 public health emergency;
5        (2) the owner of record of the property as of January
6    1, 2021 is the same as the owner of record of the property
7    as of January 1, 2020;
8        (3) the exemption for the 2020 taxable year has not
9    been determined to be an erroneous exemption as defined by
10    this Code; and
11        (4) the taxpayer for the 2020 taxable year has not
12    asked for the exemption to be removed for the 2020 or 2021
13    taxable years.
14    Nothing in this subsection shall preclude or impair the
15authority of a chief county assessment officer to conduct
16audits of any taxpayer claiming an exemption under this
17Section to verify that the taxpayer is eligible to receive the
18exemption as provided elsewhere in this Section.
19    (d) Each Chief County Assessment Officer shall annually
20publish a notice of availability of the exemption provided
21under this Section. The notice shall be published at least 60
22days but no more than 75 days prior to the date on which the
23application must be submitted to the Chief County Assessment
24Officer of the county in which the property is located. The
25notice shall appear in a newspaper of general circulation in
26the county.

 

 

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