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90_SB0164
35 ILCS 200/15-172
30 ILCS 805/8.21 new
Amends the Senior Citizens Assessment Freeze Homestead
Exemption in the Property Tax Code. Provides that the
household income limitation for the senior citizens
assessment freeze homestead exemption shall be subject to
annual adjustments equal to the percentage of increase or
decrease in the previous year in the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor. Exempt from reimbursement under
the State Mandates Act. Effective immediately.
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1 AN ACT in relation to taxes, amending named Acts.
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
15 value of the residence plus the first year's equalized
16 assessed value of any added improvements which increased the
17 assessed value of 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
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
27 lessee in the parcel of property that was single family
28 residence.
29 "Chief County Assessment Officer" means the County
30 Assessor or Supervisor of Assessments of the county in which
31 the property is located.
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1 "Equalized assessed value" means the assessed value as
2 equalized by the Illinois Department of Revenue.
3 "Household" means the applicant, the spouse of the
4 applicant, and all persons using the residence of the
5 applicant as their principal place of residence.
6 "Household income" means the combined income of the
7 members of a household for the calendar year preceding the
8 taxable year.
9 "Income" has the same meaning as provided in Section 3.07
10 of the Senior Citizens and Disabled Persons Property Tax
11 Relief and Pharmaceutical Assistance Act.
12 "Internal Revenue Code of 1986" means the United States
13 Internal Revenue Code of 1986 or any successor law or laws
14 relating to federal income taxes in effect for the year
15 preceding the taxable year.
16 "Life care facility that qualifies as a cooperative"
17 means a facility as defined in Section 2 of the Life Care
18 Facilities Act.
19 "Residence" means the principal dwelling place and
20 appurtenant structures used for residential purposes in this
21 State occupied on January 1 of the taxable year by a
22 household and so much of the surrounding land, constituting
23 the parcel upon which the dwelling place is situated, as is
24 used for residential purposes. If the Chief County Assessment
25 Officer has established a specific legal description for a
26 portion of property constituting the residence, then that
27 portion of property shall be deemed the residence for the
28 purposes of this Section.
29 "Taxable year" means the calendar year during which ad
30 valorem property taxes payable in the next succeeding year
31 are levied.
32 (c) Beginning in taxable year 1994, a senior citizens
33 assessment freeze homestead exemption is granted for real
34 property that is improved with a permanent structure that is
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1 occupied as a residence by an applicant who (i) is 65 years
2 of age or older during the taxable year, (ii) has a household
3 income of $35,000 or less, (iii) is liable for paying real
4 property taxes on the property, and (iv) is an owner of
5 record of the property or has a legal or equitable interest
6 in the property as evidenced by a written instrument.
7 Beginning with taxable year 1998, the limitation on the
8 amount of the household income of the applicant shall be
9 subject to annual adjustments equal to the percentage of
10 increase or decrease in the previous calendar year in the
11 Consumer Price Index for All Urban Consumers for all items
12 published by the United States Department of Labor. This
13 homestead exemption shall also apply to a leasehold interest
14 in a parcel of property improved with a permanent structure
15 that is a single family residence that is occupied as a
16 residence by a person who (i) is 65 years of age or older
17 during the taxable year, (ii) has a household income of
18 $35,000 or less, (iii) has a legal or equitable ownership
19 interest in the property as lessee, and (iv) is liable for
20 the payment of real property taxes on that property.
21 Beginning with taxable year 1998, the limitation on the
22 amount of the household income of the applicant shall be
23 subject to annual adjustments equal to the percentage of
24 increase or decrease in the previous calendar year in the
25 Consumer Price Index for All Urban Consumers for all items
26 published by the United States Department of Labor.
27 The amount of this exemption shall be the equalized
28 assessed value of the residence in the taxable year for which
29 application is made minus the base amount.
30 When the applicant is a surviving spouse of an applicant
31 for a prior year for the same residence for which an
32 exemption under this Section has been granted, the base year
33 and base amount for that residence are the same as for the
34 applicant for the prior year.
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1 Each year at the time the assessment books are certified
2 to the County Clerk, the Board of Review or Board of Appeals
3 shall give to the County Clerk a list of the assessed values
4 of improvements on each parcel qualifying for this exemption
5 that were added after the base year for this parcel and that
6 increased the assessed value of the property.
7 In the case of land improved with an apartment building
8 owned and operated as a cooperative or a building that is a
9 life care facility that qualifies as a cooperative, the
10 maximum reduction from the equalized assessed value of the
11 property is limited to the sum of the reductions calculated
12 for each unit occupied as a residence by a person or persons
13 65 years of age or older with a household income of $35,000
14 or less who is liable, by contract with the owner or owners
15 of record, for paying real property taxes on the property and
16 who is an owner of record of a legal or equitable interest in
17 the cooperative apartment building, other than a leasehold
18 interest. In the instance of a cooperative where a homestead
19 exemption has been granted under this Section, the
20 cooperative association or its management firm shall credit
21 the savings resulting from that exemption only to the
22 apportioned tax liability of the owner who qualified for the
23 exemption. Any person who willfully refuses to credit that
24 savings to an owner who qualifies for the exemption is guilty
25 of a Class B misdemeanor.
26 When a homestead exemption has been granted under this
27 Section and an applicant then becomes a resident of a
28 facility licensed under the Nursing Home Care Act, the
29 exemption shall be granted in subsequent years so long as the
30 residence (i) continues to be occupied by the qualified
31 applicant's spouse or (ii) if remaining unoccupied, is still
32 owned by the qualified applicant for the homestead exemption.
33 Beginning January 1, 1997, when an individual dies who
34 would have qualified for an exemption under this Section, and
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1 the surviving spouse does not independently qualify for this
2 exemption because of age, the exemption under this Section
3 shall be granted to the surviving spouse for the taxable year
4 preceding and the taxable year of the death, provided that,
5 except for age, the surviving spouse meets all other
6 qualifications for the granting of this exemption for those
7 years.
8 When married persons maintain separate residences, the
9 exemption provided for in this Section may be claimed by only
10 one of such persons and for only one residence.
11 For taxable year 1994 only, in counties having less than
12 3,000,000 inhabitants, to receive the exemption, a person
13 shall submit an application by February 15, 1995 to the Chief
14 County Assessment Officer of the county in which the property
15 is located. In counties having 3,000,000 or more
16 inhabitants, for taxable year 1994 and all subsequent taxable
17 years, to receive the exemption, a person may submit an
18 application to the Chief County Assessment Officer of the
19 county in which the property is located during such period as
20 may be specified by the Chief County Assessment Officer. The
21 Chief County Assessment Officer in counties of 3,000,000 or
22 more inhabitants shall annually give notice of the
23 application period by mail or by publication. In counties
24 having less than 3,000,000 inhabitants, beginning with
25 taxable year 1995 and thereafter, to receive the exemption, a
26 person shall submit an application by July 1 of each taxable
27 year to the Chief County Assessment Officer of the county in
28 which the property is located. A county may, by ordinance,
29 establish a date for submission of applications that is
30 earlier than July 1, but in no event shall a county establish
31 a date for submission of applications that is later than July
32 1. The applicant shall submit with the application an
33 affidavit of the applicant's total household income, age,
34 marital status (and if married the name and address of the
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1 applicant's spouse, if known), and principal dwelling place
2 of members of the household on January 1 of the taxable year.
3 The Department shall establish, by rule, a method for
4 verifying the accuracy of affidavits filed by applicants
5 under this Section. The applications shall be clearly marked
6 as applications for the Senior Citizens Assessment Freeze
7 Homestead Exemption.
8 In counties having less than 3,000,000 inhabitants, if an
9 applicant was denied an exemption in taxable year 1994 and
10 the denial occurred due to an error on the part of an
11 assessment official, or his or her agent or employee, then
12 beginning in taxable year 1997 the applicant's base year, for
13 purposes of determining the amount of the exemption, shall be
14 1993 rather than 1994. In addition, in taxable year 1997, the
15 applicant's exemption shall also include an amount equal to
16 (i) the amount of any exemption denied to the applicant in
17 taxable year 1995 as a result of using 1994, rather than
18 1993, as the base year, (ii) the amount of any exemption
19 denied to the applicant in taxable year 1996 as a result of
20 using 1994, rather than 1993, as the base year, and (iii) the
21 amount of the exemption erroneously denied for taxable year
22 1994.
23 For purposes of this Section, a person who will be 65
24 years of age during the current taxable year shall be
25 eligible to apply for the homestead exemption during that
26 taxable year. Application shall be made during the
27 application period in effect for the county of his or her
28 residence.
29 The Chief County Assessment Officer may determine the
30 eligibility of a life care facility that qualifies as a
31 cooperative to receive the benefits provided by this Section
32 by use of an affidavit, application, visual inspection,
33 questionnaire, or other reasonable method in order to insure
34 that the tax savings resulting from the exemption are
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1 credited by the management firm to the apportioned tax
2 liability of each qualifying resident. The Chief County
3 Assessment Officer may request reasonable proof that the
4 management firm has so credited that exemption.
5 Except as provided in this Section, all information
6 received by the chief county assessment officer or the
7 Department from applications filed under this Section, or
8 from any investigation conducted under the provisions of this
9 Section, shall be confidential, except for official purposes
10 or pursuant to official procedures for collection of any
11 State or local tax or enforcement of any civil or criminal
12 penalty or sanction imposed by this Act or by any statute or
13 ordinance imposing a State or local tax. Any person who
14 divulges any such information in any manner, except in
15 accordance with a proper judicial order, is guilty of a Class
16 A misdemeanor.
17 Nothing contained in this Section shall prevent the
18 Director or chief county assessment officer from publishing
19 or making available reasonable statistics concerning the
20 operation of the exemption contained in this Section in which
21 the contents of claims are grouped into aggregates in such a
22 way that information contained in any individual claim shall
23 not be disclosed.
24 (Source: P.A. 88-669, eff. 11-29-94; 88-682, eff. 1-13-95;
25 89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 89-557, eff. 1-1-97;
26 89-581, eff. 1-1-97; 89-626, eff. 8-9-96; revised 9-3-96.)
27 Section 10. The State Mandates Act is amended by adding
28 Section 8.21 as follows:
29 (30 ILCS 805/8.21 new)
30 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
31 and 8 of this Act, no reimbursement by the State is required
32 for the implementation of any mandate created by this
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1 amendatory Act of 1997.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.