103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0185

 

Introduced 1/31/2023, 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.


LRB103 26385 HLH 52748 b

 

 

A BILL FOR

 

SB0185LRB103 26385 HLH 52748 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

 

 

SB0185- 2 -LRB103 26385 HLH 52748 b

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.

 

 

SB0185- 3 -LRB103 26385 HLH 52748 b

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 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.

 

 

SB0185- 4 -LRB103 26385 HLH 52748 b

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    As an alternative income valuation, a homeowner who is
15enrolled in any of the following programs may be presumed to
16have household income that does not exceed the maximum income
17limitation for that tax year as required by this Section: Aid
18to the Aged, Blind or Disabled (AABD) Program or the
19Supplemental Nutrition Assistance Program (SNAP), both of
20which are administered by the Department of Human Services;
21the Low Income Home Energy Assistance Program (LIHEAP), which
22is administered by the Department of Commerce and Economic
23Opportunity; The Benefit Access program, which is administered
24by the Department on Aging; and the Senior Citizens Real
25Estate Tax Deferral Program.
26    A chief county assessment officer may indicate that he or

 

 

SB0185- 5 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 6 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 7 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 8 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 9 -LRB103 26385 HLH 52748 b

1Section and an applicant then becomes a resident of a facility
2licensed under the Assisted Living and Shared Housing Act, the
3Nursing Home Care Act, the Specialized Mental Health
4Rehabilitation Act of 2013, the ID/DD Community Care Act, or
5the MC/DD Act, the exemption shall be granted in subsequent
6years so long as the residence (i) continues to be occupied by
7the qualified applicant's spouse or (ii) if remaining
8unoccupied, is still owned by the qualified applicant for the
9homestead exemption.
10    Beginning January 1, 1997, when an individual dies who
11would have qualified for an exemption under this Section, and
12the surviving spouse does not independently qualify for this
13exemption because of age, the exemption under this Section
14shall be granted to the surviving spouse for the taxable year
15preceding and the taxable year of the death, provided that,
16except for age, the surviving spouse meets all other
17qualifications for the granting of this exemption for those
18years.
19    When married persons maintain separate residences, the
20exemption provided for in this Section may be claimed by only
21one of such persons and for only one residence.
22    For taxable year 1994 only, in counties having less than
233,000,000 inhabitants, to receive the exemption, a person
24shall submit an application by February 15, 1995 to the Chief
25County Assessment Officer of the county in which the property
26is located. In counties having 3,000,000 or more inhabitants,

 

 

SB0185- 10 -LRB103 26385 HLH 52748 b

1for taxable year 1994 and all subsequent taxable years, to
2receive the exemption, a person may submit an application to
3the Chief County Assessment Officer of the county in which the
4property is located during such period as may be specified by
5the Chief County Assessment Officer. The Chief County
6Assessment Officer in counties of 3,000,000 or more
7inhabitants shall annually give notice of the application
8period by mail or by publication. In counties having less than
93,000,000 inhabitants, beginning with taxable year 1995 and
10thereafter, to receive the exemption, a person shall submit an
11application by July 1 of each taxable year to the Chief County
12Assessment Officer of the county in which the property is
13located. A county may, by ordinance, establish a date for
14submission of applications that is different than July 1. The
15applicant shall submit with the application an affidavit of
16the applicant's total household income, age, marital status
17(and if married the name and address of the applicant's
18spouse, if known), and principal dwelling place of members of
19the household on January 1 of the taxable year. The Department
20shall establish, by rule, a method for verifying the accuracy
21of affidavits filed by applicants under this Section, and the
22Chief County Assessment Officer may conduct audits of any
23taxpayer claiming an exemption under this Section to verify
24that the taxpayer is eligible to receive the exemption. Each
25application shall contain or be verified by a written
26declaration that it is made under the penalties of perjury. A

 

 

SB0185- 11 -LRB103 26385 HLH 52748 b

1taxpayer's signing a fraudulent application under this Act is
2perjury, as defined in Section 32-2 of the Criminal Code of
32012. The applications shall be clearly marked as applications
4for the Low-Income Senior Citizens Assessment Freeze Homestead
5Exemption and must contain a notice that any taxpayer who
6receives the exemption is subject to an audit by the Chief
7County Assessment Officer.
8    Notwithstanding any other provision to the contrary, in
9counties having fewer than 3,000,000 inhabitants, if an
10applicant fails to file the application required by this
11Section in a timely manner and this failure to file is due to a
12mental or physical condition sufficiently severe so as to
13render the applicant incapable of filing the application in a
14timely manner, the Chief County Assessment Officer may extend
15the filing deadline for a period of 30 days after the applicant
16regains the capability to file the application, but in no case
17may the filing deadline be extended beyond 3 months of the
18original filing deadline. In order to receive the extension
19provided in this paragraph, the applicant shall provide the
20Chief County Assessment Officer with a signed statement from
21the applicant's physician, advanced practice registered nurse,
22or physician assistant stating the nature and extent of the
23condition, 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, and

 

 

SB0185- 12 -LRB103 26385 HLH 52748 b

1the date on which the applicant regained the capability to
2file the application.
3    Beginning January 1, 1998, notwithstanding any other
4provision to the contrary, in counties having fewer than
53,000,000 inhabitants, if an applicant fails to file the
6application required by this Section in a timely manner and
7this failure to file is due to a mental or physical condition
8sufficiently severe so as to render the applicant incapable of
9filing the application in a timely manner, the Chief County
10Assessment Officer may extend the filing deadline for a period
11of 3 months. In order to receive the extension provided in this
12paragraph, the applicant shall provide the Chief County
13Assessment Officer with a signed statement from the
14applicant's physician, advanced practice registered nurse, or
15physician assistant stating the nature and extent of the
16condition, and that, in the physician's, advanced practice
17registered nurse's, or physician assistant's opinion, the
18condition was so severe that it rendered the applicant
19incapable of filing the application in a timely manner.
20    In counties having less than 3,000,000 inhabitants, if an
21applicant was denied an exemption in taxable year 1994 and the
22denial occurred due to an error on the part of an assessment
23official, or his or her agent or employee, then beginning in
24taxable year 1997 the applicant's base year, for purposes of
25determining the amount of the exemption, shall be 1993 rather
26than 1994. In addition, in taxable year 1997, the applicant's

 

 

SB0185- 13 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 14 -LRB103 26385 HLH 52748 b

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

 

 

SB0185- 15 -LRB103 26385 HLH 52748 b

1    related to the COVID-19 public health emergency;
2        (2) the owner of record of the property as of January
3    1, 2020 is the same as the owner of record of the property
4    as of January 1, 2019;
5        (3) the exemption for the 2019 taxable year has not
6    been determined to be an erroneous exemption as defined by
7    this Code; and
8        (4) the applicant for the 2019 taxable year has not
9    asked for the exemption to be removed for the 2019 or 2020
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    (c-10) Notwithstanding any other provision of law, each
17chief county assessment officer may approve this exemption for
18the 2021 taxable year, without application, for any property
19that was approved for this exemption for the 2020 taxable
20year, if:
21        (1) the county board has declared a local disaster as
22    provided in the Illinois Emergency Management Agency Act
23    related to the COVID-19 public health emergency;
24        (2) the owner of record of the property as of January
25    1, 2021 is the same as the owner of record of the property
26    as of January 1, 2020;

 

 

SB0185- 16 -LRB103 26385 HLH 52748 b

1        (3) the exemption for the 2020 taxable year has not
2    been determined to be an erroneous exemption as defined by
3    this Code; and
4        (4) the taxpayer for the 2020 taxable year has not
5    asked for the exemption to be removed for the 2020 or 2021
6    taxable years.
7    Nothing in this subsection shall preclude or impair the
8authority of a chief county assessment officer to conduct
9audits of any taxpayer claiming an exemption under this
10Section to verify that the taxpayer is eligible to receive the
11exemption as provided elsewhere in this Section.
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    Notwithstanding Sections 6 and 8 of the State Mandates
21Act, no reimbursement by the State is required for the
22implementation of any mandate created by this Section.
23(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
24102-895, eff. 5-23-22.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.