Illinois General Assembly - Full Text of HB0403
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Full Text of HB0403  102nd General Assembly

HB0403 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0403

 

Introduced 2/8/2021, by Rep. LaToya Greenwood

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. With respect to the Senior Citizens Assessment Freeze Homestead Exemption, provides that, beginning in assessment year 2021, the taxpayer's household income shall be reduced by any amounts paid as Medicare premiums. Effective immediately.


LRB102 10054 HLH 15374 b

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

 

 

A BILL FOR

 

HB0403LRB102 10054 HLH 15374 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. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed
16value of any added improvements which increased the assessed
17value of the residence after the base year.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying real property taxes on the property and who was either

 

 

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

 

 

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1    "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4    "Equalized assessed value" means the assessed value as
5equalized by the Illinois Department of Revenue.
6    "Household" means the applicant, the spouse of the
7applicant, and all persons using the residence of the
8applicant as their principal place of residence.
9    "Household income" means the combined income of the
10members of a household for the calendar year preceding the
11taxable year. Beginning in taxable year 2021, the taxpayer's
12household income shall be reduced by the amount of Medicare
13premiums paid by the taxpayer during that calendar year.
14    "Income" has the same meaning as provided in Section 3.07
15of the Senior Citizens and Persons with Disabilities Property
16Tax Relief Act, except that, beginning in assessment year
172001, "income" does not include veteran's benefits.
18    "Internal Revenue Code of 1986" means the United States
19Internal Revenue Code of 1986 or any successor law or laws
20relating to federal income taxes in effect for the year
21preceding the taxable year.
22    "Life care facility that qualifies as a cooperative" means
23a facility as defined in Section 2 of the Life Care Facilities
24Act.
25    "Maximum income limitation" means:
26        (1) $35,000 prior to taxable year 1999;

 

 

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1        (2) $40,000 in taxable years 1999 through 2003;
2        (3) $45,000 in taxable years 2004 through 2005;
3        (4) $50,000 in taxable years 2006 and 2007;
4        (5) $55,000 in taxable years 2008 through 2016;
5        (6) for taxable year 2017, (i) $65,000 for qualified
6    property located in a county with 3,000,000 or more
7    inhabitants and (ii) $55,000 for qualified property
8    located in a county with fewer than 3,000,000 inhabitants;
9    and
10        (7) for taxable years 2018 and thereafter, $65,000 for
11    all qualified property.
12    "Residence" means the principal dwelling place and
13appurtenant structures used for residential purposes in this
14State occupied on January 1 of the taxable year by a household
15and so much of the surrounding land, constituting the parcel
16upon which the dwelling place is situated, as is used for
17residential purposes. If the Chief County Assessment Officer
18has established a specific legal description for a portion of
19property constituting the residence, then that portion of
20property shall be deemed the residence for the purposes of
21this Section.
22    "Taxable year" means the calendar year during which ad
23valorem property taxes payable in the next succeeding year are
24levied.
25    (c) Beginning in taxable year 1994, a senior citizens
26assessment freeze homestead exemption is granted for real

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    For taxable year 1994 only, in counties having less than
23,000,000 inhabitants, to receive the exemption, a person
3shall submit an application by February 15, 1995 to the Chief
4County Assessment Officer of the county in which the property
5is located. In counties having 3,000,000 or more inhabitants,
6for taxable year 1994 and all subsequent taxable years, to
7receive the exemption, a person may submit an application to
8the Chief County Assessment Officer of the county in which the
9property is located during such period as may be specified by
10the Chief County Assessment Officer. The Chief County
11Assessment Officer in counties of 3,000,000 or more
12inhabitants shall annually give notice of the application
13period by mail or by publication. In counties having less than
143,000,000 inhabitants, beginning with taxable year 1995 and
15thereafter, to receive the exemption, a person shall submit an
16application by July 1 of each taxable year to the Chief County
17Assessment Officer of the county in which the property is
18located. A county may, by ordinance, establish a date for
19submission of applications that is different than July 1. The
20applicant shall submit with the application an affidavit of
21the applicant's total household income, age, marital status
22(and if married the name and address of the applicant's
23spouse, if known), and principal dwelling place of members of
24the household on January 1 of the taxable year. The Department
25shall establish, by rule, a method for verifying the accuracy
26of affidavits filed by applicants under this Section, and the

 

 

HB0403- 10 -LRB102 10054 HLH 15374 b

1Chief County Assessment Officer may conduct audits of any
2taxpayer claiming an exemption under this Section to verify
3that the taxpayer is eligible to receive the exemption. Each
4application shall contain or be verified by a written
5declaration that it is made under the penalties of perjury. A
6taxpayer's signing a fraudulent application under this Act is
7perjury, as defined in Section 32-2 of the Criminal Code of
82012. The applications shall be clearly marked as applications
9for the Senior Citizens Assessment Freeze Homestead Exemption
10and must contain a notice that any taxpayer who receives the
11exemption is subject to an audit by the Chief County
12Assessment Officer.
13    Notwithstanding any other provision to the contrary, in
14counties having fewer than 3,000,000 inhabitants, if an
15applicant fails to file the application required by this
16Section in a timely manner and this failure to file is due to a
17mental or physical condition sufficiently severe so as to
18render the applicant incapable of filing the application in a
19timely manner, the Chief County Assessment Officer may extend
20the filing deadline for a period of 30 days after the applicant
21regains the capability to file the application, but in no case
22may the filing deadline be extended beyond 3 months of the
23original filing deadline. In order to receive the extension
24provided in this paragraph, the applicant shall provide the
25Chief County Assessment Officer with a signed statement from
26the applicant's physician, advanced practice registered nurse,

 

 

HB0403- 11 -LRB102 10054 HLH 15374 b

1or physician assistant stating the nature and extent of the
2condition, that, in the physician's, advanced practice
3registered nurse's, or physician assistant's opinion, the
4condition was so severe that it rendered the applicant
5incapable of filing the application in a timely manner, and
6the date on which the applicant regained the capability to
7file the application.
8    Beginning January 1, 1998, notwithstanding any other
9provision to the contrary, in counties having fewer than
103,000,000 inhabitants, if an applicant fails to file the
11application required by this Section in a timely manner and
12this failure to file is due to a mental or physical condition
13sufficiently severe so as to render the applicant incapable of
14filing the application in a timely manner, the Chief County
15Assessment Officer may extend the filing deadline for a period
16of 3 months. In order to receive the extension provided in this
17paragraph, the applicant shall provide the Chief County
18Assessment Officer with a signed statement from the
19applicant's physician, advanced practice registered nurse, or
20physician assistant stating the nature and extent of the
21condition, and that, in the physician's, advanced practice
22registered nurse's, or physician assistant's opinion, the
23condition was so severe that it rendered the applicant
24incapable of filing the application in a timely manner.
25    In counties having less than 3,000,000 inhabitants, if an
26applicant was denied an exemption in taxable year 1994 and the

 

 

HB0403- 12 -LRB102 10054 HLH 15374 b

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

 

 

HB0403- 13 -LRB102 10054 HLH 15374 b

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

 

 

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1the 2020 taxable year, without application, for any property
2that was approved for this exemption for the 2019 taxable
3year, provided that:
4        (1) the county board has declared a local disaster as
5    provided in the Illinois Emergency Management Agency Act
6    related to the COVID-19 public health emergency;
7        (2) the owner of record of the property as of January
8    1, 2020 is the same as the owner of record of the property
9    as of January 1, 2019;
10        (3) the exemption for the 2019 taxable year has not
11    been determined to be an erroneous exemption as defined by
12    this Code; and
13        (4) the applicant for the 2019 taxable year has not
14    asked for the exemption to be removed for the 2019 or 2020
15    taxable years.
16    Nothing in this subsection shall preclude or impair the
17authority of a chief county assessment officer to conduct
18audits of any taxpayer claiming an exemption under this
19Section to verify that the taxpayer is eligible to receive the
20exemption as provided elsewhere in this Section.
21    (d) Each Chief County Assessment Officer shall annually
22publish a notice of availability of the exemption provided
23under this Section. The notice shall be published at least 60
24days but no more than 75 days prior to the date on which the
25application must be submitted to the Chief County Assessment
26Officer of the county in which the property is located. The

 

 

HB0403- 15 -LRB102 10054 HLH 15374 b

1notice shall appear in a newspaper of general circulation in
2the county.
3    Notwithstanding Sections 6 and 8 of the State Mandates
4Act, no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 100-401, eff. 8-25-17; 100-513, eff. 1-1-18;
7100-863, eff. 8-14-18; 101-635, eff. 6-5-20.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.