103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2318

 

Introduced 2/10/2023, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, beginning in taxable year 2024, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption shall be increased each year by the percentage increase, if any, in the Consumer Price Index. Effective immediately.


LRB103 27689 HLH 54066 b

 

 

A BILL FOR

 

SB2318LRB103 27689 HLH 54066 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    "Consumer Price Index-u" means means the index published
5by the Bureau of Labor Statistics of the United States
6Department of Labor that measures the average change in prices
7of goods and services purchased by all urban consumers, United
8States city average, all items, 1982-84=100.
9    "Equalized assessed value" means the assessed value as
10equalized by the Illinois Department of Revenue.
11    "Household" means the applicant, the spouse of the
12applicant, and all persons using the residence of the
13applicant as their principal place of residence.
14    "Household income" means the combined income of the
15members of a household for the calendar year preceding the
16taxable year.
17    "Income" has the same meaning as provided in Section 3.07
18of the Senior Citizens and Persons with Disabilities Property
19Tax Relief Act, except that, beginning in assessment year
202001, "income" does not include veteran's benefits.
21    "Internal Revenue Code of 1986" means the United States
22Internal Revenue Code of 1986 or any successor law or laws
23relating to federal income taxes in effect for the year
24preceding the taxable year.
25    "Life care facility that qualifies as a cooperative" means
26a facility as defined in Section 2 of the Life Care Facilities

 

 

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1Act.
2    "Maximum income limitation" means:
3        (1) $35,000 prior to taxable year 1999;
4        (2) $40,000 in taxable years 1999 through 2003;
5        (3) $45,000 in taxable years 2004 through 2005;
6        (4) $50,000 in taxable years 2006 and 2007;
7        (5) $55,000 in taxable years 2008 through 2016;
8        (6) for taxable year 2017, (i) $65,000 for qualified
9    property located in a county with 3,000,000 or more
10    inhabitants and (ii) $55,000 for qualified property
11    located in a county with fewer than 3,000,000 inhabitants;
12    and
13        (7) for taxable years 2018 through 2023 and
14    thereafter, $65,000 for all qualified property; and .
15        (8) for taxable years 2024 and thereafter, the maximum
16    income limitation for the immediately preceding taxable
17    year, multiplied by one plus the percentage increase, if
18    any, in the Consumer Price Index-u for the 12-month period
19    ending in September of the calendar year immediately
20    preceding the taxable year for which the limitation is
21    calculated.
22    As an alternative income valuation, a homeowner who is
23enrolled in any of the following programs may be presumed to
24have household income that does not exceed the maximum income
25limitation for that tax year as required by this Section: Aid
26to the Aged, Blind or Disabled (AABD) Program or the

 

 

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1Supplemental Nutrition Assistance Program (SNAP), both of
2which are administered by the Department of Human Services;
3the Low Income Home Energy Assistance Program (LIHEAP), which
4is administered by the Department of Commerce and Economic
5Opportunity; The Benefit Access program, which is administered
6by the Department on Aging; and the Senior Citizens Real
7Estate Tax Deferral Program.
8    A chief county assessment officer may indicate that he or
9she has verified an applicant's income eligibility for this
10exemption but may not report which program or programs, if
11any, enroll the applicant. Release of personal information
12submitted pursuant to this Section shall be deemed an
13unwarranted invasion of personal privacy under the Freedom of
14Information Act.
15    "Residence" means the principal dwelling place and
16appurtenant structures used for residential purposes in this
17State occupied on January 1 of the taxable year by a household
18and so much of the surrounding land, constituting the parcel
19upon which the dwelling place is situated, as is used for
20residential purposes. If the Chief County Assessment Officer
21has established a specific legal description for a portion of
22property constituting the residence, then that portion of
23property shall be deemed the residence for the purposes of
24this Section.
25    "Taxable year" means the calendar year during which ad
26valorem property taxes payable in the next succeeding year are

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    When married persons maintain separate residences, the
2exemption provided for in this Section may be claimed by only
3one of such persons and for only one residence.
4    For taxable year 1994 only, in counties having less than
53,000,000 inhabitants, to receive the exemption, a person
6shall submit an application by February 15, 1995 to the Chief
7County Assessment Officer of the county in which the property
8is located. In counties having 3,000,000 or more inhabitants,
9for taxable year 1994 and all subsequent taxable years, to
10receive the exemption, a person may submit an application to
11the Chief County Assessment Officer of the county in which the
12property is located during such period as may be specified by
13the Chief County Assessment Officer. The Chief County
14Assessment Officer in counties of 3,000,000 or more
15inhabitants shall annually give notice of the application
16period by mail or by publication. In counties having less than
173,000,000 inhabitants, beginning with taxable year 1995 and
18thereafter, to receive the exemption, a person shall submit an
19application by July 1 of each taxable year to the Chief County
20Assessment Officer of the county in which the property is
21located. A county may, by ordinance, establish a date for
22submission of applications that is different than July 1. The
23applicant shall submit with the application an affidavit of
24the applicant's total household income, age, marital status
25(and if married the name and address of the applicant's
26spouse, if known), and principal dwelling place of members of

 

 

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1the household on January 1 of the taxable year. The Department
2shall establish, by rule, a method for verifying the accuracy
3of affidavits filed by applicants under this Section, and the
4Chief County Assessment Officer may conduct audits of any
5taxpayer claiming an exemption under this Section to verify
6that the taxpayer is eligible to receive the exemption. Each
7application shall contain or be verified by a written
8declaration that it is made under the penalties of perjury. A
9taxpayer's signing a fraudulent application under this Act is
10perjury, as defined in Section 32-2 of the Criminal Code of
112012. The applications shall be clearly marked as applications
12for the Low-Income Senior Citizens Assessment Freeze Homestead
13Exemption and must contain a notice that any taxpayer who
14receives the exemption is subject to an audit by the Chief
15County Assessment Officer.
16    Notwithstanding any other provision to the contrary, in
17counties having fewer than 3,000,000 inhabitants, if an
18applicant fails to file the application required by this
19Section in a timely manner and this failure to file is due to a
20mental or physical condition sufficiently severe so as to
21render the applicant incapable of filing the application in a
22timely manner, the Chief County Assessment Officer may extend
23the filing deadline for a period of 30 days after the applicant
24regains the capability to file the application, but in no case
25may the filing deadline be extended beyond 3 months of the
26original filing deadline. In order to receive the extension

 

 

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1provided in this paragraph, the applicant shall provide the
2Chief County Assessment Officer with a signed statement from
3the applicant's physician, advanced practice registered nurse,
4or physician assistant stating the nature and extent of the
5condition, that, in the physician's, advanced practice
6registered nurse's, or physician assistant's opinion, the
7condition was so severe that it rendered the applicant
8incapable of filing the application in a timely manner, and
9the date on which the applicant regained the capability to
10file the application.
11    Beginning January 1, 1998, notwithstanding any other
12provision to the contrary, in counties having fewer than
133,000,000 inhabitants, if an applicant fails to file the
14application required by this Section in a timely manner and
15this failure to file is due to a mental or physical condition
16sufficiently severe so as to render the applicant incapable of
17filing the application in a timely manner, the Chief County
18Assessment Officer may extend the filing deadline for a period
19of 3 months. In order to receive the extension provided in this
20paragraph, the applicant shall provide the Chief County
21Assessment Officer with a signed statement from the
22applicant's physician, advanced practice registered nurse, or
23physician assistant stating the nature and extent of the
24condition, and that, in the physician's, advanced practice
25registered nurse's, or physician assistant's opinion, the
26condition was so severe that it rendered the applicant

 

 

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

 

 

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

 

 

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1this Section or (ii) $2,000.
2    (c-5) Notwithstanding any other provision of law, each
3chief county assessment officer may approve this exemption for
4the 2020 taxable year, without application, for any property
5that was approved for this exemption for the 2019 taxable
6year, provided that:
7        (1) the county board has declared a local disaster as
8    provided in the Illinois Emergency Management Agency Act
9    related to the COVID-19 public health emergency;
10        (2) the owner of record of the property as of January
11    1, 2020 is the same as the owner of record of the property
12    as of January 1, 2019;
13        (3) the exemption for the 2019 taxable year has not
14    been determined to be an erroneous exemption as defined by
15    this Code; and
16        (4) the applicant for the 2019 taxable year has not
17    asked for the exemption to be removed for the 2019 or 2020
18    taxable years.
19    Nothing in this subsection shall preclude or impair the
20authority of a chief county assessment officer to conduct
21audits of any taxpayer claiming an exemption under this
22Section to verify that the taxpayer is eligible to receive the
23exemption as provided elsewhere in this Section.
24    (c-10) Notwithstanding any other provision of law, each
25chief county assessment officer may approve this exemption for
26the 2021 taxable year, without application, for any property

 

 

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1that was approved for this exemption for the 2020 taxable
2year, if:
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, 2021 is the same as the owner of record of the property
8    as of January 1, 2020;
9        (3) the exemption for the 2020 taxable year has not
10    been determined to be an erroneous exemption as defined by
11    this Code; and
12        (4) the taxpayer for the 2020 taxable year has not
13    asked for the exemption to be removed for the 2020 or 2021
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    (d) Each Chief County Assessment Officer shall annually
21publish a notice of availability of the exemption provided
22under this Section. The notice shall be published at least 60
23days but no more than 75 days prior to the date on which the
24application must be submitted to the Chief County Assessment
25Officer of the county in which the property is located. The
26notice shall appear in a newspaper of general circulation in

 

 

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1the county.
2    Notwithstanding Sections 6 and 8 of the State Mandates
3Act, no reimbursement by the State is required for the
4implementation of any mandate created by this Section.
5(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
6102-895, eff. 5-23-22.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.