103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3535

 

Introduced 2/17/2023, by Rep. Jed Davis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for the purposes of the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, the maximum income limitation does not include any required minimum distributions from an individual retirement account or other retirement account. Effective immediately.


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A BILL FOR

 

HB3535LRB103 29691 HLH 56095 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, and,
16beginning in assessment year 2024, "income" does not include
17any required minimum distributions from an individual
18retirement account or other retirement account..
19    "Internal Revenue Code of 1986" means the United States
20Internal Revenue Code of 1986 or any successor law or laws
21relating to federal income taxes in effect for the year
22preceding the taxable year.
23    "Life care facility that qualifies as a cooperative" means
24a facility as defined in Section 2 of the Life Care Facilities
25Act.
26    "Maximum income limitation" means:

 

 

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1        (1) $35,000 prior to taxable year 1999;
2        (2) $40,000 in taxable years 1999 through 2003;
3        (3) $45,000 in taxable years 2004 through 2005;
4        (4) $50,000 in taxable years 2006 and 2007;
5        (5) $55,000 in taxable years 2008 through 2016;
6        (6) for taxable year 2017, (i) $65,000 for qualified
7    property located in a county with 3,000,000 or more
8    inhabitants and (ii) $55,000 for qualified property
9    located in a county with fewer than 3,000,000 inhabitants;
10    and
11        (7) for taxable years 2018 and thereafter, $65,000 for
12    all qualified property.
13    As an alternative income valuation, a homeowner who is
14enrolled in any of the following programs may be presumed to
15have household income that does not exceed the maximum income
16limitation for that tax year as required by this Section: Aid
17to the Aged, Blind or Disabled (AABD) Program or the
18Supplemental Nutrition Assistance Program (SNAP), both of
19which are administered by the Department of Human Services;
20the Low Income Home Energy Assistance Program (LIHEAP), which
21is administered by the Department of Commerce and Economic
22Opportunity; The Benefit Access program, which is administered
23by the Department on Aging; and the Senior Citizens Real
24Estate Tax Deferral Program.
25    A chief county assessment officer may indicate that he or
26she has verified an applicant's income eligibility for this

 

 

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

 

 

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1a legal or equitable interest in the property as evidenced by a
2written instrument. This homestead exemption shall also apply
3to a leasehold interest in a parcel of property improved with a
4permanent structure that is a single family residence that is
5occupied as a residence by a person who (i) is 65 years of age
6or older during the taxable year, (ii) has a household income
7that does not exceed the maximum income limitation, (iii) has
8a legal or equitable ownership interest in the property as
9lessee, and (iv) is liable for the payment of real property
10taxes on that property.
11    In counties of 3,000,000 or more inhabitants, the amount
12of the exemption for all taxable years is the equalized
13assessed value of the residence in the taxable year for which
14application is made minus the base amount. In all other
15counties, the amount of the exemption is as follows: (i)
16through taxable year 2005 and for taxable year 2007 and
17thereafter, the amount of this exemption shall be the
18equalized assessed value of the residence in the taxable year
19for which application is made minus the base amount; and (ii)
20for taxable year 2006, the amount of the exemption is as
21follows:
22        (1) For an applicant who has a household income of
23    $45,000 or less, the amount of the exemption is the
24    equalized assessed value of the residence in the taxable
25    year for which application is made minus the base amount.
26        (2) For an applicant who has a household income

 

 

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

 

 

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

 

 

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1licensed under the Assisted Living and Shared Housing Act, the
2Nursing Home Care Act, the Specialized Mental Health
3Rehabilitation Act of 2013, the ID/DD Community Care Act, or
4the MC/DD Act, the exemption shall be granted in subsequent
5years so long as the residence (i) continues to be occupied by
6the qualified applicant's spouse or (ii) if remaining
7unoccupied, is still owned by the qualified applicant for the
8homestead exemption.
9    Beginning January 1, 1997, when an individual dies who
10would have qualified for an exemption under this Section, and
11the surviving spouse does not independently qualify for this
12exemption because of age, the exemption under this Section
13shall be granted to the surviving spouse for the taxable year
14preceding and the taxable year of the death, provided that,
15except for age, the surviving spouse meets all other
16qualifications for the granting of this exemption for those
17years.
18    When married persons maintain separate residences, the
19exemption provided for in this Section may be claimed by only
20one of such persons and for only one residence.
21    For taxable year 1994 only, in counties having less than
223,000,000 inhabitants, to receive the exemption, a person
23shall submit an application by February 15, 1995 to the Chief
24County Assessment Officer of the county in which the property
25is located. In counties having 3,000,000 or more inhabitants,
26for taxable year 1994 and all subsequent taxable years, to

 

 

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1receive the exemption, a person may submit an application to
2the Chief County Assessment Officer of the county in which the
3property is located during such period as may be specified by
4the Chief County Assessment Officer. The Chief County
5Assessment Officer in counties of 3,000,000 or more
6inhabitants shall annually give notice of the application
7period by mail or by publication. In counties having less than
83,000,000 inhabitants, beginning with taxable year 1995 and
9thereafter, to receive the exemption, a person shall submit an
10application by July 1 of each taxable year to the Chief County
11Assessment Officer of the county in which the property is
12located. A county may, by ordinance, establish a date for
13submission of applications that is different than July 1. The
14applicant shall submit with the application an affidavit of
15the applicant's total household income, age, marital status
16(and if married the name and address of the applicant's
17spouse, if known), and principal dwelling place of members of
18the household on January 1 of the taxable year. The Department
19shall establish, by rule, a method for verifying the accuracy
20of affidavits filed by applicants under this Section, and the
21Chief County Assessment Officer may conduct audits of any
22taxpayer claiming an exemption under this Section to verify
23that the taxpayer is eligible to receive the exemption. Each
24application shall contain or be verified by a written
25declaration that it is made under the penalties of perjury. A
26taxpayer's signing a fraudulent application under this Act is

 

 

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1perjury, as defined in Section 32-2 of the Criminal Code of
22012. The applications shall be clearly marked as applications
3for the Low-Income Senior Citizens Assessment Freeze Homestead
4Exemption and must contain a notice that any taxpayer who
5receives the exemption is subject to an audit by the Chief
6County Assessment Officer.
7    Notwithstanding any other provision to the contrary, in
8counties having fewer than 3,000,000 inhabitants, if an
9applicant fails to file the application required by this
10Section in a timely manner and this failure to file is due to a
11mental or physical condition sufficiently severe so as to
12render the applicant incapable of filing the application in a
13timely manner, the Chief County Assessment Officer may extend
14the filing deadline for a period of 30 days after the applicant
15regains the capability to file the application, but in no case
16may the filing deadline be extended beyond 3 months of the
17original filing deadline. In order to receive the extension
18provided in this paragraph, the applicant shall provide the
19Chief County Assessment Officer with a signed statement from
20the applicant's physician, advanced practice registered nurse,
21or physician assistant stating the nature and extent of the
22condition, that, in the physician's, advanced practice
23registered nurse's, or physician assistant's opinion, the
24condition was so severe that it rendered the applicant
25incapable of filing the application in a timely manner, and
26the date on which the applicant regained the capability to

 

 

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1file the application.
2    Beginning January 1, 1998, notwithstanding any other
3provision to the contrary, in counties having fewer than
43,000,000 inhabitants, if an applicant fails to file the
5application required by this Section in a timely manner and
6this failure to file is due to a mental or physical condition
7sufficiently severe so as to render the applicant incapable of
8filing the application in a timely manner, the Chief County
9Assessment Officer may extend the filing deadline for a period
10of 3 months. In order to receive the extension provided in this
11paragraph, the applicant shall provide the Chief County
12Assessment Officer with a signed statement from the
13applicant's physician, advanced practice registered nurse, or
14physician assistant stating the nature and extent of the
15condition, and 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.
19    In counties having less than 3,000,000 inhabitants, if an
20applicant was denied an exemption in taxable year 1994 and the
21denial occurred due to an error on the part of an assessment
22official, or his or her agent or employee, then beginning in
23taxable year 1997 the applicant's base year, for purposes of
24determining the amount of the exemption, shall be 1993 rather
25than 1994. In addition, in taxable year 1997, the applicant's
26exemption shall also include an amount equal to (i) the amount

 

 

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

 

 

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1or pursuant to official procedures for collection of any State
2or local tax or enforcement of any civil or criminal penalty or
3sanction imposed by this Act or by any statute or ordinance
4imposing a State or local tax. Any person who divulges any such
5information in any manner, except in accordance with a proper
6judicial order, is guilty of a Class A misdemeanor.
7    Nothing contained in this Section shall prevent the
8Director or chief county assessment officer from publishing or
9making available reasonable statistics concerning the
10operation of the exemption contained in this Section in which
11the contents of claims are grouped into aggregates in such a
12way that information contained in any individual claim shall
13not be disclosed.
14    Notwithstanding any other provision of law, for taxable
15year 2017 and thereafter, in counties of 3,000,000 or more
16inhabitants, the amount of the exemption shall be the greater
17of (i) the amount of the exemption otherwise calculated under
18this Section or (ii) $2,000.
19    (c-5) Notwithstanding any other provision of law, each
20chief county assessment officer may approve this exemption for
21the 2020 taxable year, without application, for any property
22that was approved for this exemption for the 2019 taxable
23year, provided that:
24        (1) the county board has declared a local disaster as
25    provided in the Illinois Emergency Management Agency Act
26    related to the COVID-19 public health emergency;

 

 

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

 

 

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1    been determined to be an erroneous exemption as defined by
2    this Code; and
3        (4) the taxpayer for the 2020 taxable year has not
4    asked for the exemption to be removed for the 2020 or 2021
5    taxable years.
6    Nothing in this subsection shall preclude or impair the
7authority of a chief county assessment officer to conduct
8audits of any taxpayer claiming an exemption under this
9Section to verify that the taxpayer is eligible to receive the
10exemption as provided elsewhere in this Section.
11    (d) Each Chief County Assessment Officer shall annually
12publish a notice of availability of the exemption provided
13under this Section. The notice shall be published at least 60
14days but no more than 75 days prior to the date on which the
15application must be submitted to the Chief County Assessment
16Officer of the county in which the property is located. The
17notice shall appear in a newspaper of general circulation in
18the county.
19    Notwithstanding Sections 6 and 8 of the State Mandates
20Act, no reimbursement by the State is required for the
21implementation of any mandate created by this Section.
22(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
23102-895, eff. 5-23-22.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.