103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1060

 

Introduced 1/12/2023, by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that the tax due for property that has been granted a senior citizens assessment freeze homestead exemption shall not exceed the tax liability for the property in the base year. Provides that the tax collected from that property shall be distributed to the individual taxing districts on a pro rata basis in accordance with each taxing district's proportionate share of the property's total tax liability. Effective immediately.


LRB103 00060 SPS 45060 b

 

 

A BILL FOR

 

HB1060LRB103 00060 SPS 45060 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Low-Income Senior Citizens Assessment Freeze
8Homestead Exemption.
9    (a) This Section may be cited as the Low-Income Senior
10Citizens Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed
16value of any added improvements which increased the assessed
17value of the residence after the base year.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying real property taxes on the property and who was either

 

 

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1(i) an owner of record of the property or had legal or
2equitable interest in the property as evidenced by a written
3instrument or (ii) had a legal or equitable interest as a
4lessee in the parcel of property that was single family
5residence. If in any subsequent taxable year for which the
6applicant applies and qualifies for the exemption the
7equalized assessed value of the residence is less than the
8equalized assessed value in the existing base year (provided
9that such equalized assessed value is not based on an assessed
10value that results from a temporary irregularity in the
11property that reduces the assessed value for one or more
12taxable years), then that subsequent taxable year shall become
13the base year until a new base year is established under the
14terms of this paragraph. For taxable year 1999 only, the Chief
15County Assessment Officer shall review (i) all taxable years
16for which the applicant applied and qualified for the
17exemption and (ii) the existing base year. The assessment
18officer shall select as the new base year the year with the
19lowest equalized assessed value. An equalized assessed value
20that is based on an assessed value that results from a
21temporary irregularity in the property that reduces the
22assessed value for one or more taxable years shall not be
23considered the lowest equalized assessed value. The selected
24year shall be the base year for taxable year 1999 and
25thereafter until a new base year is established under the
26terms of this paragraph.

 

 

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1    "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4    "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.
16    "Internal Revenue Code of 1986" means the United States
17Internal Revenue Code of 1986 or any successor law or laws
18relating to federal income taxes in effect for the year
19preceding the taxable year.
20    "Life care facility that qualifies as a cooperative" means
21a facility as defined in Section 2 of the Life Care Facilities
22Act.
23    "Maximum income limitation" means:
24        (1) $35,000 prior to taxable year 1999;
25        (2) $40,000 in taxable years 1999 through 2003;
26        (3) $45,000 in taxable years 2004 through 2005;

 

 

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1        (4) $50,000 in taxable years 2006 and 2007;
2        (5) $55,000 in taxable years 2008 through 2016;
3        (6) for taxable year 2017, (i) $65,000 for qualified
4    property located in a county with 3,000,000 or more
5    inhabitants and (ii) $55,000 for qualified property
6    located in a county with fewer than 3,000,000 inhabitants;
7    and
8        (7) for taxable years 2018 and thereafter, $65,000 for
9    all qualified property.
10    As an alternative income valuation, a homeowner who is
11enrolled in any of the following programs may be presumed to
12have household income that does not exceed the maximum income
13limitation for that tax year as required by this Section: Aid
14to the Aged, Blind or Disabled (AABD) Program or the
15Supplemental Nutrition Assistance Program (SNAP), both of
16which are administered by the Department of Human Services;
17the Low Income Home Energy Assistance Program (LIHEAP), which
18is administered by the Department of Commerce and Economic
19Opportunity; The Benefit Access program, which is administered
20by the Department on Aging; and the Senior Citizens Real
21Estate Tax Deferral Program.
22    A chief county assessment officer may indicate that he or
23she has verified an applicant's income eligibility for this
24exemption but may not report which program or programs, if
25any, enroll the applicant. Release of personal information
26submitted pursuant to this Section shall be deemed an

 

 

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

 

 

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1permanent structure that is a single family residence that is
2occupied as a residence by a person who (i) is 65 years of age
3or older during the taxable year, (ii) has a household income
4that does not exceed the maximum income limitation, (iii) has
5a legal or equitable ownership interest in the property as
6lessee, and (iv) is liable for the payment of real property
7taxes on that property.
8    In counties of 3,000,000 or more inhabitants, the amount
9of the exemption for all taxable years is the equalized
10assessed value of the residence in the taxable year for which
11application is made minus the base amount. In all other
12counties, the amount of the exemption is as follows: (i)
13through taxable year 2005 and for taxable year 2007 through
142023 and thereafter, the amount of this exemption shall be the
15equalized assessed value of the residence in the taxable year
16for which application is made minus the base amount; and (ii)
17for taxable year 2006, the amount of the exemption is as
18follows:
19        (1) For an applicant who has a household income of
20    $45,000 or less, the amount of the exemption is the
21    equalized assessed value of the residence in the taxable
22    year for which application is made minus the base amount.
23        (2) For an applicant who has a household income
24    exceeding $45,000 but not exceeding $46,250, 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 0.8.
2        (3) For an applicant who has a household income
3    exceeding $46,250 but not exceeding $47,500, the amount of
4    the exemption is (i) the equalized assessed value of the
5    residence in the taxable year for which application is
6    made minus the base amount (ii) multiplied by 0.6.
7        (4) For an applicant who has a household income
8    exceeding $47,500 but not exceeding $48,750, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is
11    made minus the base amount (ii) multiplied by 0.4.
12        (5) For an applicant who has a household income
13    exceeding $48,750 but not exceeding $50,000, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is
16    made minus the base amount (ii) multiplied by 0.2.
17    Beginning in taxable year 2024, the amount of tax due
18under this Code for property that has been granted an
19exemption under this Section shall not exceed the tax
20liability for the property in the base year. The tax collected
21from property receiving an exemption under this Section shall
22be distributed to the individual taxing districts on a pro
23rata basis in accordance with each taxing district's
24proportionate share of the property's total tax liability.
25    When the applicant is a surviving spouse of an applicant
26for a prior year for the same residence for which an exemption

 

 

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

 

 

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1person who willfully refuses to credit that savings to an
2owner who qualifies for the exemption is guilty of a Class B
3misdemeanor.
4    When a homestead exemption has been granted under this
5Section and an applicant then becomes a resident of a facility
6licensed under the Assisted Living and Shared Housing Act, the
7Nursing Home Care Act, the Specialized Mental Health
8Rehabilitation Act of 2013, the ID/DD Community Care Act, or
9the MC/DD Act, the exemption shall be granted in subsequent
10years so long as the residence (i) continues to be occupied by
11the qualified applicant's spouse or (ii) if remaining
12unoccupied, is still owned by the qualified applicant for the
13homestead exemption.
14    Beginning January 1, 1997, when an individual dies who
15would have qualified for an exemption under this Section, and
16the surviving spouse does not independently qualify for this
17exemption because of age, the exemption under this Section
18shall be granted to the surviving spouse for the taxable year
19preceding and the taxable year of the death, provided that,
20except for age, the surviving spouse meets all other
21qualifications for the granting of this exemption for those
22years.
23    When married persons maintain separate residences, the
24exemption provided for in this Section may be claimed by only
25one of such persons and for only one residence.
26    For taxable year 1994 only, in counties having less than

 

 

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13,000,000 inhabitants, to receive the exemption, a person
2shall submit an application by February 15, 1995 to the Chief
3County Assessment Officer of the county in which the property
4is located. In counties having 3,000,000 or more inhabitants,
5for taxable year 1994 and all subsequent taxable years, to
6receive the exemption, a person may submit an application to
7the Chief County Assessment Officer of the county in which the
8property is located during such period as may be specified by
9the Chief County Assessment Officer. The Chief County
10Assessment Officer in counties of 3,000,000 or more
11inhabitants shall annually give notice of the application
12period by mail or by publication. In counties having less than
133,000,000 inhabitants, beginning with taxable year 1995 and
14thereafter, to receive the exemption, a person shall submit an
15application by July 1 of each taxable year to the Chief County
16Assessment Officer of the county in which the property is
17located. A county may, by ordinance, establish a date for
18submission of applications that is different than July 1. The
19applicant shall submit with the application an affidavit of
20the applicant's total household income, age, marital status
21(and if married the name and address of the applicant's
22spouse, if known), and principal dwelling place of members of
23the household on January 1 of the taxable year. The Department
24shall establish, by rule, a method for verifying the accuracy
25of affidavits filed by applicants under this Section, and the
26Chief County Assessment Officer may conduct audits of any

 

 

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1taxpayer claiming an exemption under this Section to verify
2that the taxpayer is eligible to receive the exemption. Each
3application shall contain or be verified by a written
4declaration that it is made under the penalties of perjury. A
5taxpayer's signing a fraudulent application under this Act is
6perjury, as defined in Section 32-2 of the Criminal Code of
72012. The applications shall be clearly marked as applications
8for the Low-Income Senior Citizens Assessment Freeze Homestead
9Exemption and must contain a notice that any taxpayer who
10receives the exemption is subject to an audit by the Chief
11County Assessment Officer.
12    Notwithstanding any other provision to the contrary, in
13counties having fewer than 3,000,000 inhabitants, if an
14applicant fails to file the application required by this
15Section in a timely manner and this failure to file is due to a
16mental or physical condition sufficiently severe so as to
17render the applicant incapable of filing the application in a
18timely manner, the Chief County Assessment Officer may extend
19the filing deadline for a period of 30 days after the applicant
20regains the capability to file the application, but in no case
21may the filing deadline be extended beyond 3 months of the
22original filing deadline. In order to receive the extension
23provided in this paragraph, the applicant shall provide the
24Chief County Assessment Officer with a signed statement from
25the applicant's physician, advanced practice registered nurse,
26or physician assistant stating the nature and extent of the

 

 

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1condition, that, in the physician's, advanced practice
2registered nurse's, or physician assistant's opinion, the
3condition was so severe that it rendered the applicant
4incapable of filing the application in a timely manner, and
5the date on which the applicant regained the capability to
6file the application.
7    Beginning January 1, 1998, notwithstanding any other
8provision to the contrary, in counties having fewer than
93,000,000 inhabitants, if an applicant fails to file the
10application required by this Section in a timely manner and
11this failure to file is due to a mental or physical condition
12sufficiently severe so as to render the applicant incapable of
13filing the application in a timely manner, the Chief County
14Assessment Officer may extend the filing deadline for a period
15of 3 months. In order to receive the extension provided in this
16paragraph, the applicant shall provide the Chief County
17Assessment Officer with a signed statement from the
18applicant's physician, advanced practice registered nurse, or
19physician assistant stating the nature and extent of the
20condition, and that, in the physician's, advanced practice
21registered nurse's, or physician assistant's opinion, the
22condition was so severe that it rendered the applicant
23incapable of filing the application in a timely manner.
24    In counties having less than 3,000,000 inhabitants, if an
25applicant was denied an exemption in taxable year 1994 and the
26denial occurred due to an error on the part of an assessment

 

 

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

 

 

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1    Except as provided in this Section, all information
2received by the chief county assessment officer or the
3Department from applications filed under this Section, or from
4any investigation conducted under the provisions of this
5Section, shall be confidential, except for official purposes
6or pursuant to official procedures for collection of any State
7or local tax or enforcement of any civil or criminal penalty or
8sanction imposed by this Act or by any statute or ordinance
9imposing a State or local tax. Any person who divulges any such
10information in any manner, except in accordance with a proper
11judicial order, is guilty of a Class A misdemeanor.
12    Nothing contained in this Section shall prevent the
13Director or chief county assessment officer from publishing or
14making available reasonable statistics concerning the
15operation of the exemption contained in this Section in which
16the contents of claims are grouped into aggregates in such a
17way that information contained in any individual claim shall
18not be disclosed.
19    Notwithstanding any other provision of law, for taxable
20year 2017 and thereafter, in counties of 3,000,000 or more
21inhabitants, the amount of the exemption shall be the greater
22of (i) the amount of the exemption otherwise calculated under
23this Section or (ii) $2,000.
24    (c-5) Notwithstanding any other provision of law, each
25chief county assessment officer may approve this exemption for
26the 2020 taxable year, without application, for any property

 

 

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

 

 

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

 

 

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1(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
2102-895, eff. 5-23-22.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.