95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1549

 

Introduced 2/22/2007, by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code concerning the Senior Citizens Assessment Freeze Homestead Exemption. In the definition of "residence", deletes the requirement that a taxpayer must have occupied the property on January 1 of the taxable year. Sets forth provisions for calculating the base amount for a new residence if the taxpayer changes residences. Authorizes counties to provide that if a person has been granted a Senior Citizens Assessment Freeze Homestead Exemption, then the person qualifying need not reapply for the exemption. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Property Tax Code is amended by changing
5 Section 15-172 as follows:
 
6     (35 ILCS 200/15-172)
7     Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8 Exemption.
9     (a) This Section may be cited as the Senior Citizens
10 Assessment Freeze Homestead Exemption.
11     (b) As used in this Section:
12     "Applicant" means an individual who has filed an
13 application under this Section.
14     "Base amount" means the base year equalized assessed value
15 of the residence plus the first year's equalized assessed value
16 of any added improvements which increased the assessed value of
17 the residence after the base year.
18     Beginning with the 2007 taxable year, if a taxpayer who has
19 been granted an exemption under this Section transfers his or
20 her residence and acquires a new residence and the equalized
21 assessed value of the new residence is equal to or less than
22 the base amount of the taxpayer's prior residence, then,
23 beginning with the taxable year immediately following the year

 

 

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1 in which the new residence is acquired, the base amount for the
2 new residence is the equalized assessed value of the new
3 residence for the year in which the residence is acquired. If,
4 however, the equalized assessed value of the new residence is
5 greater than the base amount of the taxpayer's prior residence,
6 then, beginning with the taxable year immediately following the
7 year in which the new residence is acquired, the base amount
8 for the new residence is the greater of:
9         (1) the base amount of the taxpayer's prior residence
10     for the year in which the new residence was acquired; or
11         (2) the equalized assessed value of the new residence
12     at the time of acquisition multiplied by a rate equal to:
13     (i) the base amount of the taxpayer's prior residence for
14     the year in which the new residence was acquired; divided
15     by (ii) the equalized assessed value of the taxpayer's
16     prior residence for the year in which the new residence was
17     acquired.
18     "Base year" means the taxable year prior to the taxable
19 year for which the applicant first qualifies and applies for
20 the exemption provided that in the prior taxable year the
21 property was improved with a permanent structure that was
22 occupied as a residence by the applicant who was liable for
23 paying real property taxes on the property and who was either
24 (i) an owner of record of the property or had legal or
25 equitable interest in the property as evidenced by a written
26 instrument or (ii) had a legal or equitable interest as a

 

 

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

 

 

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1 equalized by the Illinois Department of Revenue.
2     "Household" means the applicant, the spouse of the
3 applicant, and all persons using the residence of the applicant
4 as their principal place of residence.
5     "Household income" means the combined income of the members
6 of a household for the calendar year preceding the taxable
7 year.
8     "Income" has the same meaning as provided in Section 3.07
9 of the Senior Citizens and Disabled Persons Property Tax Relief
10 and Pharmaceutical Assistance Act, except that, beginning in
11 assessment year 2001, "income" does not include veteran's
12 benefits.
13     "Internal Revenue Code of 1986" means the United States
14 Internal Revenue Code of 1986 or any successor law or laws
15 relating to federal income taxes in effect for the year
16 preceding the taxable year.
17     "Life care facility that qualifies as a cooperative" means
18 a facility as defined in Section 2 of the Life Care Facilities
19 Act.
20     "Residence" means the principal dwelling place and
21 appurtenant structures used for residential purposes in this
22 State occupied during on January 1 of the taxable year by a
23 household and so much of the surrounding land, constituting the
24 parcel upon which the dwelling place is situated, as is used
25 for residential purposes. If the Chief County Assessment
26 Officer has established a specific legal description for a

 

 

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1 portion of property constituting the residence, then that
2 portion of property shall be deemed the residence for the
3 purposes of this Section.
4     "Taxable year" means the calendar year during which ad
5 valorem property taxes payable in the next succeeding year are
6 levied.
7     (c) Beginning in taxable year 1994, a senior citizens
8 assessment freeze homestead exemption is granted for real
9 property that is improved with a permanent structure that is
10 occupied as a residence by an applicant who (i) is 65 years of
11 age or older during the taxable year, (ii) has a household
12 income of $35,000 or less prior to taxable year 1999, $40,000
13 or less in taxable years 1999 through 2003, $45,000 or less in
14 taxable year 2004 and 2005, and $50,000 or less in taxable year
15 2006 and thereafter, (iii) is liable for paying real property
16 taxes on the property, and (iv) is an owner of record of the
17 property or has a legal or equitable interest in the property
18 as evidenced by a written instrument. This homestead exemption
19 shall also apply to a leasehold interest in a parcel of
20 property improved with a permanent structure that is a single
21 family residence that is occupied as a residence by a person
22 who (i) is 65 years of age or older during the taxable year,
23 (ii) has a household income of $35,000 or less prior to taxable
24 year 1999, $40,000 or less in taxable years 1999 through 2003,
25 $45,000 or less in taxable year 2004 and 2005, and $50,000 or
26 less in taxable year 2006 and thereafter, (iii) has a legal or

 

 

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1 equitable ownership interest in the property as lessee, and
2 (iv) is liable for the payment of real property taxes on that
3 property.
4     Through taxable year 2005, the amount of this exemption
5 shall be the equalized assessed value of the residence in the
6 taxable year for which application is made minus the base
7 amount. For taxable year 2006 and thereafter, the amount of the
8 exemption is as follows:
9         (1) For an applicant who has a household income of
10     $45,000 or less, the amount of the exemption is the
11     equalized assessed value of the residence in the taxable
12     year for which application is made minus the base amount.
13         (2) For an applicant who has a household income
14     exceeding $45,000 but not exceeding $46,250, the amount of
15     the exemption is (i) the equalized assessed value of the
16     residence in the taxable year for which application is made
17     minus the base amount (ii) multiplied by 0.8.
18         (3) For an applicant who has a household income
19     exceeding $46,250 but not exceeding $47,500, the amount of
20     the exemption is (i) the equalized assessed value of the
21     residence in the taxable year for which application is made
22     minus the base amount (ii) multiplied by 0.6.
23         (4) For an applicant who has a household income
24     exceeding $47,500 but not exceeding $48,750, the amount of
25     the exemption is (i) the equalized assessed value of the
26     residence in the taxable year for which application is made

 

 

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1     minus the base amount (ii) multiplied by 0.4.
2         (5) For an applicant who has a household income
3     exceeding $48,750 but not exceeding $50,000, the amount of
4     the exemption is (i) the equalized assessed value of the
5     residence in the taxable year for which application is made
6     minus the base amount (ii) multiplied by 0.2.
7     When the applicant is a surviving spouse of an applicant
8 for a prior year for the same residence for which an exemption
9 under this Section has been granted, the base year and base
10 amount for that residence are the same as for the applicant for
11 the prior year.
12     Each year at the time the assessment books are certified to
13 the County Clerk, the Board of Review or Board of Appeals shall
14 give to the County Clerk a list of the assessed values of
15 improvements on each parcel qualifying for this exemption that
16 were added after the base year for this parcel and that
17 increased the assessed value of the property.
18     In the case of land improved with an apartment building
19 owned and operated as a cooperative or a building that is a
20 life care facility that qualifies as a cooperative, the maximum
21 reduction from the equalized assessed value of the property is
22 limited to the sum of the reductions calculated for each unit
23 occupied as a residence by a person or persons (i) 65 years of
24 age or older, (ii) with a household income of $35,000 or less
25 prior to taxable year 1999, $40,000 or less in taxable years
26 1999 through 2003, $45,000 or less in taxable year 2004 and

 

 

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1 2005, and $50,000 or less in taxable year 2006 and thereafter,
2 (iii) who is liable, by contract with the owner or owners of
3 record, for paying real property taxes on the property, and
4 (iv) who is an owner of record of a legal or equitable interest
5 in the cooperative apartment building, other than a leasehold
6 interest. In the instance of a cooperative where a homestead
7 exemption has been granted under this Section, the cooperative
8 association or its management firm shall credit the savings
9 resulting from that exemption only to the apportioned tax
10 liability of the owner who qualified for the exemption. Any
11 person who willfully refuses to credit that savings to an owner
12 who qualifies for the exemption is guilty of a Class B
13 misdemeanor.
14     When a homestead exemption has been granted under this
15 Section and an applicant then becomes a resident of a facility
16 licensed under the Nursing Home Care Act, the exemption shall
17 be granted in subsequent years so long as the residence (i)
18 continues to be occupied by the qualified applicant's spouse or
19 (ii) if remaining unoccupied, is still owned by the qualified
20 applicant for the homestead exemption.
21     Beginning January 1, 1997, when an individual dies who
22 would have qualified for an exemption under this Section, and
23 the surviving spouse does not independently qualify for this
24 exemption because of age, the exemption under this Section
25 shall be granted to the surviving spouse for the taxable year
26 preceding and the taxable year of the death, provided that,

 

 

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

 

 

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1 total household income, age, marital status (and if married the
2 name and address of the applicant's spouse, if known), and
3 principal dwelling place of members of the household on January
4 1 of the taxable year. The Department shall establish, by rule,
5 a method for verifying the accuracy of affidavits filed by
6 applicants under this Section. The applications shall be
7 clearly marked as applications for the Senior Citizens
8 Assessment Freeze Homestead Exemption.
9     Notwithstanding any other provision to the contrary, in
10 counties having fewer than 3,000,000 inhabitants, if an
11 applicant fails to file the application required by this
12 Section in a timely manner and this failure to file is due to a
13 mental or physical condition sufficiently severe so as to
14 render the applicant incapable of filing the application in a
15 timely manner, the Chief County Assessment Officer may extend
16 the filing deadline for a period of 30 days after the applicant
17 regains the capability to file the application, but in no case
18 may the filing deadline be extended beyond 3 months of the
19 original filing deadline. In order to receive the extension
20 provided in this paragraph, the applicant shall provide the
21 Chief County Assessment Officer with a signed statement from
22 the applicant's physician stating the nature and extent of the
23 condition, that, in the physician's opinion, the condition was
24 so severe that it rendered the applicant incapable of filing
25 the application in a timely manner, and the date on which the
26 applicant regained the capability to file the application.

 

 

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1     Beginning January 1, 1998, notwithstanding any other
2 provision to the contrary, in counties having fewer than
3 3,000,000 inhabitants, if an applicant fails to file the
4 application required by this Section in a timely manner and
5 this failure to file is due to a mental or physical condition
6 sufficiently severe so as to render the applicant incapable of
7 filing the application in a timely manner, the Chief County
8 Assessment Officer may extend the filing deadline for a period
9 of 3 months. In order to receive the extension provided in this
10 paragraph, the applicant shall provide the Chief County
11 Assessment Officer with a signed statement from the applicant's
12 physician stating the nature and extent of the condition, and
13 that, in the physician's opinion, the condition was so severe
14 that it rendered the applicant incapable of filing the
15 application in a timely manner.
16     In counties having less than 3,000,000 inhabitants, if an
17 applicant was denied an exemption in taxable year 1994 and the
18 denial occurred due to an error on the part of an assessment
19 official, or his or her agent or employee, then beginning in
20 taxable year 1997 the applicant's base year, for purposes of
21 determining the amount of the exemption, shall be 1993 rather
22 than 1994. In addition, in taxable year 1997, the applicant's
23 exemption shall also include an amount equal to (i) the amount
24 of any exemption denied to the applicant in taxable year 1995
25 as a result of using 1994, rather than 1993, as the base year,
26 (ii) the amount of any exemption denied to the applicant in

 

 

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1 taxable year 1996 as a result of using 1994, rather than 1993,
2 as the base year, and (iii) the amount of the exemption
3 erroneously denied for taxable year 1994.
4     For purposes of this Section, a person who will be 65 years
5 of age during the current taxable year shall be eligible to
6 apply for the homestead exemption during that taxable year.
7 Application shall be made during the application period in
8 effect for the county of his or her residence. The county board
9 may by resolution provide that if a person has been granted a
10 homestead exemption under this Section, the person qualifying
11 need not reapply for the exemption.
12     The Chief County Assessment Officer may determine the
13 eligibility of a life care facility that qualifies as a
14 cooperative to receive the benefits provided by this Section by
15 use of an affidavit, application, visual inspection,
16 questionnaire, or other reasonable method in order to insure
17 that the tax savings resulting from the exemption are credited
18 by the management firm to the apportioned tax liability of each
19 qualifying resident. The Chief County Assessment Officer may
20 request reasonable proof that the management firm has so
21 credited that exemption.
22     Except as provided in this Section, all information
23 received by the chief county assessment officer or the
24 Department from applications filed under this Section, or from
25 any investigation conducted under the provisions of this
26 Section, shall be confidential, except for official purposes or

 

 

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1 pursuant to official procedures for collection of any State or
2 local tax or enforcement of any civil or criminal penalty or
3 sanction imposed by this Act or by any statute or ordinance
4 imposing a State or local tax. Any person who divulges any such
5 information in any manner, except in accordance with a proper
6 judicial order, is guilty of a Class A misdemeanor.
7     Nothing contained in this Section shall prevent the
8 Director or chief county assessment officer from publishing or
9 making available reasonable statistics concerning the
10 operation of the exemption contained in this Section in which
11 the contents of claims are grouped into aggregates in such a
12 way that information contained in any individual claim shall
13 not be disclosed.
14     (d) Each Chief County Assessment Officer shall annually
15 publish a notice of availability of the exemption provided
16 under this Section. The notice shall be published at least 60
17 days but no more than 75 days prior to the date on which the
18 application must be submitted to the Chief County Assessment
19 Officer of the county in which the property is located. The
20 notice shall appear in a newspaper of general circulation in
21 the county.
22     Notwithstanding Sections 6 and 8 of the State Mandates Act,
23 no reimbursement by the State is required for the
24 implementation of any mandate created by this Section.
25 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
26     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.