State of Illinois
90th General Assembly
Legislation

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90_HB2545

      35 ILCS 200/15-172
          Amends the Senior Citizens  Assessment  Freeze  Homestead
      Exemption in the Property Tax Code.  Provides that in taxable
      year 1998 and thereafter the qualifying individual shall have
      an income of $40,000 or less (now $35,000 or less).  Provides
      that   beginning   January   1,  1999  the  household  income
      limitation for the  exemption  shall  be  subject  to  annual
      adjustments  equal  to  the  percentage  of  increase  in the
      previous year for the Consumer  Price  Index  for  All  Urban
      Consumers  for  all  items  published  by  the  United States
      Department of Labor.
                                                    LRB9008353KDksA
                                              LRB9008353KDksA
 1        AN ACT to amend the Property Tax Code by changing Section
 2    15-172.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Property Tax Code is amended by changing
 6    Section 15-172 as follows:
 7        (35 ILCS 200/15-172)
 8        Sec.  15-172. Senior Citizens Assessment Freeze Homestead
 9    Exemption.
10        (a)  This Section may be cited  as  the  Senior  Citizens
11    Assessment Freeze Homestead Exemption.
12        (b)  As used in this Section:
13        "Applicant"   means   an  individual  who  has  filed  an
14    application under this Section.
15        "Base amount" means  the  base  year  equalized  assessed
16    value  of  the  residence  plus  the  first  year's equalized
17    assessed value of any added improvements which increased  the
18    assessed value of the residence after the base year.
19        "Base  year"  means the taxable year prior to the taxable
20    year for which the applicant first qualifies and applies  for
21    the  exemption  provided  that  in the prior taxable year the
22    property was improved with a  permanent  structure  that  was
23    occupied  as  a residence by the applicant who was liable for
24    paying real property taxes on the property and who was either
25    (i) an owner of record  of  the  property  or  had  legal  or
26    equitable  interest in the property as evidenced by a written
27    instrument or (ii) had a legal or  equitable  interest  as  a
28    lessee  in  the  parcel  of  property  that was single family
29    residence.
30        "Chief  County  Assessment  Officer"  means  the   County
31    Assessor  or Supervisor of Assessments of the county in which
                            -2-               LRB9008353KDksA
 1    the property is located.
 2        "Equalized assessed value" means the  assessed  value  as
 3    equalized by the Illinois Department of Revenue.
 4        "Household"  means  the  applicant,  the  spouse  of  the
 5    applicant,  and  all  persons  using  the  residence  of  the
 6    applicant as their principal place of residence.
 7        "Household  income"  means  the  combined  income  of the
 8    members of a household for the calendar  year  preceding  the
 9    taxable year.
10        "Income" has the same meaning as provided in Section 3.07
11    of  the  Senior  Citizens  and  Disabled Persons Property Tax
12    Relief and Pharmaceutical Assistance Act.
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"
18    means a facility as defined in Section 2  of  the  Life  Care
19    Facilities Act.
20        "Residence"   means  the  principal  dwelling  place  and
21    appurtenant structures used for residential purposes in  this
22    State  occupied  on  January  1  of  the  taxable  year  by a
23    household and so much of the surrounding  land,  constituting
24    the  parcel  upon which the dwelling place is situated, as is
25    used for residential purposes. If the Chief County Assessment
26    Officer has established a specific legal  description  for  a
27    portion  of  property  constituting  the residence, then that
28    portion of property shall be deemed  the  residence  for  the
29    purposes of this Section.
30        "Taxable  year"  means  the calendar year during which ad
31    valorem property taxes payable in the  next  succeeding  year
32    are levied.
33        (c)  Beginning  in  taxable  year 1994, a senior citizens
34    assessment freeze homestead exemption  is  granted  for  real
                            -3-               LRB9008353KDksA
 1    property  that is improved with a permanent structure that is
 2    occupied as a residence by an applicant who (i) is  65  years
 3    of age or older during the taxable year, (ii) has a household
 4    income  of  $35,000  or  less  prior  to taxable year 1998 or
 5    $40,000 or less in taxable year 1998 and thereafter, (iii) is
 6    liable for paying real property taxes on  the  property,  and
 7    (iv)  is an owner of record of the property or has a legal or
 8    equitable interest in the property as evidenced by a  written
 9    instrument.  This  homestead  exemption shall also apply to a
10    leasehold interest in a parcel of property  improved  with  a
11    permanent structure that is a single family residence that is
12    occupied  as  a  residence by a person who (i) is 65 years of
13    age or older during the taxable year, (ii)  has  a  household
14    income  of  $35,000  or  less  prior  to taxable year 1998 or
15    $40,000 or less in taxable year 1998  and  thereafter,  (iii)
16    has  a  legal or equitable ownership interest in the property
17    as lessee, and  (iv)  is  liable  for  the  payment  of  real
18    property  taxes  on that property.  Beginning January 1, 1999
19    the amount of the household income of the applicant shall  be
20    subject  to  annual  adjustments  equal  to the percentage of
21    increase in the previous calendar year in the Consumer  Price
22    Index  for All Urban Consumers for all items published by the
23    United States Department of Labor.
24        The amount of  this  exemption  shall  be  the  equalized
25    assessed value of the residence in the taxable year for which
26    application is made minus the base amount.
27        When  the applicant is a surviving spouse of an applicant
28    for a  prior  year  for  the  same  residence  for  which  an
29    exemption  under this Section has been granted, the base year
30    and base amount for that residence are the same  as  for  the
31    applicant for the prior year.
32        Each  year at the time the assessment books are certified
33    to the County Clerk, the Board of Review or Board of  Appeals
34    shall  give to the County Clerk a list of the assessed values
                            -4-               LRB9008353KDksA
 1    of improvements on each parcel qualifying for this  exemption
 2    that  were added after the base year for this parcel and that
 3    increased the assessed value of the property.
 4        In the case of land improved with an  apartment  building
 5    owned  and  operated as a cooperative or a building that is a
 6    life care facility  that  qualifies  as  a  cooperative,  the
 7    maximum  reduction  from  the equalized assessed value of the
 8    property is limited to the sum of the  reductions  calculated
 9    for  each unit occupied as a residence by a person or persons
10    65 years of age or older with a household income  of  $35,000
11    or  less  who is liable, by contract with the owner or owners
12    of record, for paying real property taxes on the property and
13    who is an owner of record of a legal or equitable interest in
14    the cooperative apartment building, other  than  a  leasehold
15    interest.  In the instance of a cooperative where a homestead
16    exemption  has  been  granted   under   this   Section,   the
17    cooperative  association  or its management firm shall credit
18    the  savings  resulting  from  that  exemption  only  to  the
19    apportioned tax liability of the owner who qualified for  the
20    exemption.   Any  person who willfully refuses to credit that
21    savings to an owner who qualifies for the exemption is guilty
22    of a Class B misdemeanor.
23        When a homestead exemption has been  granted  under  this
24    Section  and  an  applicant  then  becomes  a  resident  of a
25    facility licensed  under  the  Nursing  Home  Care  Act,  the
26    exemption shall be granted in subsequent years so long as the
27    residence  (i)  continues  to  be  occupied  by the qualified
28    applicant's spouse or (ii) if remaining unoccupied, is  still
29    owned by the qualified applicant for the homestead exemption.
30        Beginning  January  1,  1997, when an individual dies who
31    would have qualified for an exemption under this Section, and
32    the surviving spouse does not independently qualify for  this
33    exemption  because  of  age, the exemption under this Section
34    shall be granted to the surviving spouse for the taxable year
                            -5-               LRB9008353KDksA
 1    preceding and the taxable year of the death,  provided  that,
 2    except   for  age,  the  surviving  spouse  meets  all  other
 3    qualifications for the granting of this exemption  for  those
 4    years.
 5        When  married  persons  maintain separate residences, the
 6    exemption provided for in this Section may be claimed by only
 7    one of such persons and for only one residence.
 8        For taxable year 1994 only, in counties having less  than
 9    3,000,000  inhabitants,  to  receive  the exemption, a person
10    shall submit an application by February 15, 1995 to the Chief
11    County Assessment Officer of the county in which the property
12    is  located.   In   counties   having   3,000,000   or   more
13    inhabitants, for taxable year 1994 and all subsequent taxable
14    years,  to  receive  the  exemption,  a  person may submit an
15    application to the Chief County  Assessment  Officer  of  the
16    county in which the property is located during such period as
17    may be specified by the Chief County Assessment Officer.  The
18    Chief  County  Assessment Officer in counties of 3,000,000 or
19    more  inhabitants  shall  annually   give   notice   of   the
20    application  period  by  mail or by publication.  In counties
21    having  less  than  3,000,000  inhabitants,  beginning   with
22    taxable year 1995 and thereafter, to receive the exemption, a
23    person  shall submit an application by July 1 of each taxable
24    year to the Chief County Assessment Officer of the county  in
25    which  the  property is located.  A county may, by ordinance,
26    establish a date  for  submission  of  applications  that  is
27    different  than  July  1. The applicant shall submit with the
28    application an affidavit of the applicant's  total  household
29    income,  age,  marital  status  (and  if married the name and
30    address of the applicant's spouse, if known),  and  principal
31    dwelling  place  of  members of the household on January 1 of
32    the taxable year. The Department shall establish, by rule,  a
33    method  for  verifying  the  accuracy  of affidavits filed by
34    applicants under this  Section.  The  applications  shall  be
                            -6-               LRB9008353KDksA
 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
 7    a 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
11    applicant regains the capability to file the application, but
12    in no case may the  filing  deadline  be  extended  beyond  3
13    months  of the original filing deadline.  In order to receive
14    the extension provided in this paragraph, the applicant shall
15    provide the Chief County Assessment  Officer  with  a  signed
16    statement  from  the applicant's physician stating the nature
17    and  extent  of  the  condition,  that,  in  the  physician's
18    opinion, the condition was so severe  that  it  rendered  the
19    applicant  incapable  of  filing  the application in a timely
20    manner, and the date on  which  the  applicant  regained  the
21    capability to file the application.
22        Beginning  January  1,  1998,  notwithstanding  any other
23    provision to the contrary,  in  counties  having  fewer  than
24    3,000,000  inhabitants,  if  an  applicant  fails to file the
25    application required by this Section in a timely  manner  and
26    this failure to file is due to a mental or physical condition
27    sufficiently  severe  so as to render the applicant incapable
28    of filing the application  in  a  timely  manner,  the  Chief
29    County  Assessment Officer may extend the filing deadline for
30    a period of 3 months.  In  order  to  receive  the  extension
31    provided  in  this paragraph, the applicant shall provide the
32    Chief County Assessment Officer with a signed statement  from
33    the  applicant's  physician  stating the nature and extent of
34    the condition, and that,  in  the  physician's  opinion,  the
                            -7-               LRB9008353KDksA
 1    condition  was  so  severe  that  it  rendered  the applicant
 2    incapable of filing the application in a timely manner.
 3        In counties having less than 3,000,000 inhabitants, if an
 4    applicant was denied an exemption in taxable  year  1994  and
 5    the  denial  occurred  due  to  an  error  on  the part of an
 6    assessment official, or his or her agent  or  employee,  then
 7    beginning in taxable year 1997 the applicant's base year, for
 8    purposes of determining the amount of the exemption, shall be
 9    1993 rather than 1994. In addition, in taxable year 1997, the
10    applicant's  exemption  shall also include an amount equal to
11    (i) the amount of any exemption denied to  the  applicant  in
12    taxable  year  1995  as  a  result of using 1994, rather than
13    1993, as the base year, (ii)  the  amount  of  any  exemption
14    denied  to  the applicant in taxable year 1996 as a result of
15    using 1994, rather than 1993, as the base year, and (iii) the
16    amount of the exemption erroneously denied for  taxable  year
17    1994.
18        For  purposes  of  this  Section, a person who will be 65
19    years of  age  during  the  current  taxable  year  shall  be
20    eligible  to  apply  for  the homestead exemption during that
21    taxable  year.   Application  shall  be   made   during   the
22    application  period  in  effect  for the county of his or her
23    residence.
24        The Chief County Assessment  Officer  may  determine  the
25    eligibility  of  a  life  care  facility  that qualifies as a
26    cooperative to receive the benefits provided by this  Section
27    by  use  of  an  affidavit,  application,  visual inspection,
28    questionnaire, or other reasonable method in order to  insure
29    that  the  tax  savings  resulting  from  the  exemption  are
30    credited  by  the  management  firm  to  the  apportioned tax
31    liability of each  qualifying  resident.   The  Chief  County
32    Assessment  Officer  may  request  reasonable  proof that the
33    management firm has so credited that exemption.
34        Except as  provided  in  this  Section,  all  information
                            -8-               LRB9008353KDksA
 1    received  by  the  chief  county  assessment  officer  or the
 2    Department from applications filed  under  this  Section,  or
 3    from any investigation conducted under the provisions of this
 4    Section,  shall be confidential, except for official purposes
 5    or pursuant to official  procedures  for  collection  of  any
 6    State  or  local  tax or enforcement of any civil or criminal
 7    penalty or sanction imposed by this Act or by any statute  or
 8    ordinance  imposing  a  State  or  local  tax. Any person who
 9    divulges any  such  information  in  any  manner,  except  in
10    accordance with a proper judicial order, is guilty of a Class
11    A misdemeanor.
12        Nothing  contained  in  this  Section  shall  prevent the
13    Director or chief county assessment officer  from  publishing
14    or  making  available  reasonable  statistics  concerning the
15    operation of the exemption contained in this Section in which
16    the contents of claims are grouped into aggregates in such  a
17    way  that information contained in any individual claim shall
18    not be disclosed.
19        (d)  Each Chief County Assessment Officer shall  annually
20    publish  a  notice  of availability of the exemption provided
21    under this Section.  The notice shall be published  at  least
22    60  days  but no more than 75 days prior to the date on which
23    the  application  must  be  submitted  to  the  Chief  County
24    Assessment Officer of the county in  which  the  property  is
25    located.   The  notice shall appear in a newspaper of general
26    circulation in the county.
27    (Source:  P.A.  89-62,  eff.  1-1-96;  89-426,  eff.  6-1-96;
28    89-557,  eff.  1-1-97;  89-581,  eff.  1-1-97;  89-626,  eff.
29    8-9-96; 90-14, eff. 7-1-97;  90-204,  eff.  7-25-97;  90-523,
30    eff.  11-13-97;  90-524,  eff.  1-1-98;  90-531, eff. 1-1-98;
31    revised 12-23-97.)

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