95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB2794

 

Introduced 2/26/2007, by Rep. Joe Dunn

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. In a Section concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that applicants are eligible for the exemption if, regardless of their household income, if the maximum base amount of the property does not exceed $166,670. Makes technical changes. 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     "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

 

 

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

 

 

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1 Assessor or Supervisor of Assessments of the county in which
2 the property is located.
3     "Equalized assessed value" means the assessed value as
4 equalized by the Illinois Department of Revenue.
5     "Household" means the applicant, the spouse of the
6 applicant, and all persons using the residence of the applicant
7 as their principal place of residence.
8     "Household income" means the combined income of the members
9 of a household for the calendar year preceding the taxable
10 year.
11     "Income" has the same meaning as provided in Section 3.07
12 of the Senior Citizens and Disabled Persons Property Tax Relief
13 and Pharmaceutical Assistance Act, except that, beginning in
14 assessment year 2001, "income" does not include veteran's
15 benefits.
16     "Internal Revenue Code of 1986" means the United States
17 Internal Revenue Code of 1986 or any successor law or laws
18 relating to federal income taxes in effect for the year
19 preceding the taxable year.
20     "Life care facility that qualifies as a cooperative" means
21 a facility as defined in Section 2 of the Life Care Facilities
22 Act.
23     "Maximum base amount" means a base year equalized assessed
24 value of the residence that does not exceed $166,670. The
25 maximum base amount does not include the first year's equalized
26 assessed value of any added improvements which increased the

 

 

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1 assessed value of the residence after the base year.
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 year, 2004 and 2005;
6         (4) $50,000 in taxable year 2006 and thereafter.
7     "Residence" means the principal dwelling place and
8 appurtenant structures used for residential purposes in this
9 State occupied on January 1 of the taxable year by a household
10 and so much of the surrounding land, constituting the parcel
11 upon which the dwelling place is situated, as is used for
12 residential purposes. If the Chief County Assessment Officer
13 has established a specific legal description for a portion of
14 property constituting the residence, then that portion of
15 property shall be deemed the residence for the purposes of this
16 Section.
17     "Taxable year" means the calendar year during which ad
18 valorem property taxes payable in the next succeeding year are
19 levied.
20     (c) Beginning in taxable year 1994, a senior citizens
21 assessment freeze homestead exemption is granted for real
22 property that is improved with a permanent structure that is
23 occupied as a residence by an applicant who (i) is 65 years of
24 age or older during the taxable year, (ii) has a household
25 income that does not exceed the maximum income limitation or
26 occupies a homestead of a value that did not exceed the maximum

 

 

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1 valuation limitation in the base year of $35,000 or less prior
2 to taxable year 1999, $40,000 or less in taxable years 1999
3 through 2003, $45,000 or less in taxable year 2004 and 2005,
4 and $50,000 or less in taxable year 2006 and thereafter, (iii)
5 is liable for paying real property taxes on the property, and
6 (iv) is an owner of record of the property or has a legal or
7 equitable interest in the property as evidenced by a written
8 instrument. This homestead exemption shall also apply to a
9 leasehold interest in a parcel of property improved with a
10 permanent structure that is a single family residence that is
11 occupied as a residence by a person who (i) is 65 years of age
12 or older during the taxable year, (ii) has a household income
13 that does not exceed the maximum income limitation or occupies
14 a homestead of a value that did not exceed the maximum
15 valuation limitation in the base year of $35,000 or less prior
16 to taxable year 1999, $40,000 or less in taxable years 1999
17 through 2003, $45,000 or less in taxable year 2004 and 2005,
18 and $50,000 or less in taxable year 2006 and thereafter, (iii)
19 has a legal or equitable ownership interest in the property as
20 lessee, and (iv) is liable for the payment of real property
21 taxes on that property.
22     Through taxable year 2005, the amount of this exemption
23 shall be the equalized assessed value of the residence in the
24 taxable year for which application is made minus the base
25 amount. For taxable year 2006 and thereafter, the amount of the
26 exemption is as follows:

 

 

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

 

 

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1 under this Section has been granted, the base year and base
2 amount for that residence are the same as for the applicant for
3 the prior year.
4     Each year at the time the assessment books are certified to
5 the County Clerk, the Board of Review or Board of Appeals shall
6 give to the County Clerk a list of the assessed values of
7 improvements on each parcel qualifying for this exemption that
8 were added after the base year for this parcel and that
9 increased the assessed value of the property.
10     In the case of land improved with an apartment building
11 owned and operated as a cooperative or a building that is a
12 life care facility that qualifies as a cooperative, the maximum
13 reduction from the equalized assessed value of the property is
14 limited to the sum of the reductions calculated for each unit
15 occupied as a residence by a person or persons (i) 65 years of
16 age or older, (ii) with a household income that does not exceed
17 the maximum income limitation or occupies a homestead of a
18 value that did not exceed the maximum valuation limitation in
19 the base year of $35,000 or less prior to taxable year 1999,
20 $40,000 or less in taxable years 1999 through 2003, $45,000 or
21 less in taxable year 2004 and 2005, and $50,000 or less in
22 taxable year 2006 and thereafter, (iii) who is liable, by
23 contract with the owner or owners of record, for paying real
24 property taxes on the property, and (iv) who is an owner of
25 record of a legal or equitable interest in the cooperative
26 apartment building, other than a leasehold interest. In the

 

 

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

 

 

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

 

 

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1 clearly marked as applications for the Senior Citizens
2 Assessment Freeze Homestead Exemption.
3     Notwithstanding any other provision to the contrary, in
4 counties having fewer than 3,000,000 inhabitants, if an
5 applicant fails to file the application required by this
6 Section in a timely manner and this failure to file is due to a
7 mental or physical condition sufficiently severe so as to
8 render the applicant incapable of filing the application in a
9 timely manner, the Chief County Assessment Officer may extend
10 the filing deadline for a period of 30 days after the applicant
11 regains the capability to file the application, but in no case
12 may the filing deadline be extended beyond 3 months of the
13 original filing deadline. In order to receive the extension
14 provided in this paragraph, the applicant shall provide the
15 Chief County Assessment Officer with a signed statement from
16 the applicant's physician stating the nature and extent of the
17 condition, that, in the physician's opinion, the condition was
18 so severe that it rendered the applicant incapable of filing
19 the application in a timely manner, and the date on which the
20 applicant regained the capability to file the application.
21     Beginning January 1, 1998, notwithstanding any other
22 provision to the contrary, in counties having fewer than
23 3,000,000 inhabitants, if an applicant fails to file the
24 application required by this Section in a timely manner and
25 this failure to file is due to a mental or physical condition
26 sufficiently severe so as to render the applicant incapable of

 

 

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1 filing the application in a timely manner, the Chief County
2 Assessment Officer may extend the filing deadline for a period
3 of 3 months. In order to receive the extension provided in this
4 paragraph, the applicant shall provide the Chief County
5 Assessment Officer with a signed statement from the applicant's
6 physician stating the nature and extent of the condition, and
7 that, in the physician's opinion, the condition was so severe
8 that it rendered the applicant incapable of filing the
9 application in a timely manner.
10     In counties having less than 3,000,000 inhabitants, if an
11 applicant was denied an exemption in taxable year 1994 and the
12 denial occurred due to an error on the part of an assessment
13 official, or his or her agent or employee, then beginning in
14 taxable year 1997 the applicant's base year, for purposes of
15 determining the amount of the exemption, shall be 1993 rather
16 than 1994. In addition, in taxable year 1997, the applicant's
17 exemption shall also include an amount equal to (i) the amount
18 of any exemption denied to the applicant in taxable year 1995
19 as a result of using 1994, rather than 1993, as the base year,
20 (ii) the amount of any exemption denied to the applicant in
21 taxable year 1996 as a result of using 1994, rather than 1993,
22 as the base year, and (iii) the amount of the exemption
23 erroneously denied for taxable year 1994.
24     For purposes of this Section, a person who will be 65 years
25 of age during the current taxable year shall be eligible to
26 apply for the homestead exemption during that taxable year.

 

 

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1 Application shall be made during the application period in
2 effect for the county of his or her residence.
3     The Chief County Assessment Officer may determine the
4 eligibility of a life care facility that qualifies as a
5 cooperative to receive the benefits provided by this Section by
6 use of an affidavit, application, visual inspection,
7 questionnaire, or other reasonable method in order to insure
8 that the tax savings resulting from the exemption are credited
9 by the management firm to the apportioned tax liability of each
10 qualifying resident. The Chief County Assessment Officer may
11 request reasonable proof that the management firm has so
12 credited that exemption.
13     Except as provided in this Section, all information
14 received by the chief county assessment officer or the
15 Department from applications filed under this Section, or from
16 any investigation conducted under the provisions of this
17 Section, shall be confidential, except for official purposes or
18 pursuant to official procedures for collection of any State or
19 local tax or enforcement of any civil or criminal penalty or
20 sanction imposed by this Act or by any statute or ordinance
21 imposing a State or local tax. Any person who divulges any such
22 information in any manner, except in accordance with a proper
23 judicial order, is guilty of a Class A misdemeanor.
24     Nothing contained in this Section shall prevent the
25 Director or chief county assessment officer from publishing or
26 making available reasonable statistics concerning the

 

 

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1 operation of the exemption contained in this Section in which
2 the contents of claims are grouped into aggregates in such a
3 way that information contained in any individual claim shall
4 not be disclosed.
5     (d) Each Chief County Assessment Officer shall annually
6 publish a notice of availability of the exemption provided
7 under this Section. The notice shall be published at least 60
8 days but no more than 75 days prior to the date on which the
9 application must be submitted to the Chief County Assessment
10 Officer of the county in which the property is located. The
11 notice shall appear in a newspaper of general circulation in
12 the county.
13     Notwithstanding Sections 6 and 8 of the State Mandates Act,
14 no reimbursement by the State is required for the
15 implementation of any mandate created by this Section.
16 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
17     Section 99. Effective date. This Act takes effect upon
18 becoming law.