State of Illinois
92nd General Assembly
Legislation

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92_HB4109

 
                                               LRB9211878SMdv

 1        AN ACT in relation to taxes.

 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.  If  in  any subsequent taxable year for which the
29    applicant  applies  and  qualifies  for  the  exemption   the
30    equalized  assessed  value  of the residence is less than the
31    equalized assessed value in the existing base year  (provided
 
                            -2-                LRB9211878SMdv
 1    that  such  equalized  assessed  value  is  not  based  on an
 2    assessed value that results from a temporary irregularity  in
 3    the  property that reduces the assessed value for one or more
 4    taxable years),  then  that  subsequent  taxable  year  shall
 5    become  the  base  year  until a new base year is established
 6    under the terms of this paragraph.   For  taxable  year  1999
 7    only,  the  Chief  County Assessment Officer shall review (i)
 8    all  taxable  years  for  which  the  applicant  applied  and
 9    qualified for the exemption and (ii) the existing base year.
10    The assessment officer shall select as the new base year  the
11    year  with  the lowest equalized assessed value. An equalized
12    assessed value that  is  based  on  an  assessed  value  that
13    results  from  a  temporary irregularity in the property that
14    reduces the assessed value for  one  or  more  taxable  years
15    shall  not be considered the lowest equalized assessed value.
16    The selected year shall be the base  year  for  taxable  year
17    1999  and  thereafter  until  a  new base year is established
18    under the terms of this paragraph.
19        "Chief  County  Assessment  Officer"  means  the   County
20    Assessor  or Supervisor of Assessments of the county in which
21    the property is located.
22        "Equalized assessed value" means the  assessed  value  as
23    equalized by the Illinois Department of Revenue.
24        "Household"  means  the  applicant,  the  spouse  of  the
25    applicant,  and  all  persons  using  the  residence  of  the
26    applicant as their principal place of residence.
27        "Household  income"  means  the  combined  income  of the
28    members of a household for the calendar  year  preceding  the
29    taxable year.
30        "Income" has the same meaning as provided in Section 3.07
31    of  the  Senior  Citizens  and  Disabled Persons Property Tax
32    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
33    beginning  in assessment year 2001, "income" does not include
34    veteran's benefits.
 
                            -3-                LRB9211878SMdv
 1        "Internal Revenue Code of 1986" means the  United  States
 2    Internal  Revenue  Code  of 1986 or any successor law or laws
 3    relating to federal income  taxes  in  effect  for  the  year
 4    preceding the taxable year.
 5        "Life  care  facility  that  qualifies  as a cooperative"
 6    means a facility as defined in Section 2  of  the  Life  Care
 7    Facilities Act.
 8        "Residence"   means  the  principal  dwelling  place  and
 9    appurtenant structures used for residential purposes in  this
10    State  occupied  on  January  1  of  the  taxable  year  by a
11    household and so much of the surrounding  land,  constituting
12    the  parcel  upon which the dwelling place is situated, as is
13    used for residential purposes. If the Chief County Assessment
14    Officer has established a specific legal  description  for  a
15    portion  of  property  constituting  the residence, then that
16    portion of property shall be deemed  the  residence  for  the
17    purposes of this Section.
18        "Taxable  year"  means  the calendar year during which ad
19    valorem property taxes payable in the  next  succeeding  year
20    are levied.
21        (c)  Beginning  in  taxable  year 1994, a senior citizens
22    assessment freeze homestead exemption  is  granted  for  real
23    property  that is improved with a permanent structure that is
24    occupied as a residence by an applicant who (i) is  65  years
25    of age or older during the taxable year, (ii) has a household
26    income  of  $35,000  or  less  prior to taxable year 1999, or
27    $40,000 or less in taxable years year 1999 through 2002,  and
28    $70,000 or less in taxable year 2003 and thereafter, (iii) is
29    liable  for  paying  real property taxes on the property, and
30    (iv) is an owner of record of the property or has a legal  or
31    equitable  interest in the property as evidenced by a written
32    instrument. This homestead exemption shall also  apply  to  a
33    leasehold  interest  in  a parcel of property improved with a
34    permanent structure that is a single family residence that is
 
                            -4-                LRB9211878SMdv
 1    occupied as a residence by a person who (i) is  65  years  of
 2    age  or  older  during the taxable year, (ii) has a household
 3    income of $35,000 or less prior  to  taxable  year  1999,  or
 4    $40,000  or less in taxable years year 1999 through 2002, and
 5    $70,000 or less in taxable year 2003  and  thereafter,  (iii)
 6    has  a  legal or equitable ownership interest in the property
 7    as lessee, and  (iv)  is  liable  for  the  payment  of  real
 8    property taxes on that property.
 9        The  amount  of  this  exemption  shall  be the equalized
10    assessed value of the residence in the taxable year for which
11    application is made minus the base amount.
12        When the applicant is a surviving spouse of an  applicant
13    for  a  prior  year  for  the  same  residence  for  which an
14    exemption under this Section has been granted, the base  year
15    and  base  amount  for that residence are the same as for the
16    applicant for the prior year.
17        Each year at the time the assessment books are  certified
18    to  the County Clerk, the Board of Review or Board of Appeals
19    shall give to the County Clerk a list of the assessed  values
20    of  improvements on each parcel qualifying for this exemption
21    that were added after the base year for this parcel and  that
22    increased the assessed value of the property.
23        In  the  case of land improved with an apartment building
24    owned and operated as a cooperative or a building that  is  a
25    life  care  facility  that  qualifies  as  a cooperative, the
26    maximum reduction from the equalized assessed  value  of  the
27    property  is  limited to the sum of the reductions calculated
28    for each unit occupied as a residence by a person or  persons
29    65  years  of age or older with a household income of $35,000
30    or less prior to taxable year 1999, or  $40,000  or  less  in
31    taxable  years year 1999 through 2002, and $70,000 or less in
32    taxable year 2003 and thereafter who is liable,  by  contract
33    with  the owner or owners of record, for paying real property
34    taxes on the property and who is an  owner  of  record  of  a
 
                            -5-                LRB9211878SMdv
 1    legal  or  equitable  interest  in  the cooperative apartment
 2    building, other than a leasehold interest. In the instance of
 3    a cooperative where a homestead exemption  has  been  granted
 4    under  this  Section,  the  cooperative  association  or  its
 5    management  firm shall credit the savings resulting from that
 6    exemption only to the apportioned tax liability of the  owner
 7    who  qualified  for  the exemption.  Any person who willfully
 8    refuses to credit that savings to an owner who qualifies  for
 9    the exemption is guilty of a Class B misdemeanor.
10        When  a  homestead  exemption has been granted under this
11    Section and  an  applicant  then  becomes  a  resident  of  a
12    facility  licensed  under  the  Nursing  Home  Care  Act, the
13    exemption shall be granted in subsequent years so long as the
14    residence (i) continues  to  be  occupied  by  the  qualified
15    applicant's  spouse or (ii) if remaining unoccupied, is still
16    owned by the qualified applicant for the homestead exemption.
17        Beginning January 1, 1997, when an  individual  dies  who
18    would have qualified for an exemption under this Section, and
19    the  surviving spouse does not independently qualify for this
20    exemption because of age, the exemption  under  this  Section
21    shall be granted to the surviving spouse for the taxable year
22    preceding  and  the taxable year of the death, provided that,
23    except  for  age,  the  surviving  spouse  meets  all   other
24    qualifications  for  the granting of this exemption for those
25    years.
26        When married persons maintain  separate  residences,  the
27    exemption provided for in this Section may be claimed by only
28    one of such persons and for only one residence.
29        For  taxable year 1994 only, in counties having less than
30    3,000,000 inhabitants, to receive  the  exemption,  a  person
31    shall submit an application by February 15, 1995 to the Chief
32    County Assessment Officer of the county in which the property
33    is   located.    In   counties   having   3,000,000  or  more
34    inhabitants, for taxable year 1994 and all subsequent taxable
 
                            -6-                LRB9211878SMdv
 1    years, to receive the  exemption,  a  person  may  submit  an
 2    application  to  the  Chief  County Assessment Officer of the
 3    county in which the property is located during such period as
 4    may be specified by the Chief County Assessment Officer.  The
 5    Chief County Assessment Officer in counties of  3,000,000  or
 6    more   inhabitants   shall   annually   give  notice  of  the
 7    application period by mail or by  publication.   In  counties
 8    having   less  than  3,000,000  inhabitants,  beginning  with
 9    taxable year 1995 and thereafter, to receive the exemption, a
10    person shall submit an application by July 1 of each  taxable
11    year  to the Chief County Assessment Officer of the county in
12    which the property is located.  A county may,  by  ordinance,
13    establish  a  date  for  submission  of  applications that is
14    different than July 1. The applicant shall  submit  with  the
15    application  an  affidavit of the applicant's total household
16    income, age, marital status (and  if  married  the  name  and
17    address  of  the applicant's spouse, if known), and principal
18    dwelling place of members of the household on  January  1  of
19    the  taxable year. The Department shall establish, by rule, a
20    method for verifying the  accuracy  of  affidavits  filed  by
21    applicants  under  this  Section.  The  applications shall be
22    clearly  marked  as  applications  for  the  Senior  Citizens
23    Assessment Freeze Homestead Exemption.
24        Notwithstanding any other provision to the  contrary,  in
25    counties  having  fewer  than  3,000,000  inhabitants,  if an
26    applicant fails to file  the  application  required  by  this
27    Section in a timely manner and this failure to file is due to
28    a  mental  or physical condition sufficiently severe so as to
29    render the applicant incapable of filing the application in a
30    timely manner, the Chief County Assessment Officer may extend
31    the filing deadline  for  a  period  of  30  days  after  the
32    applicant regains the capability to file the application, but
33    in  no  case  may  the  filing  deadline be extended beyond 3
34    months of the original filing deadline.  In order to  receive
 
                            -7-                LRB9211878SMdv
 1    the extension provided in this paragraph, the applicant shall
 2    provide  the  Chief  County  Assessment Officer with a signed
 3    statement from the applicant's physician stating  the  nature
 4    and  extent  of  the  condition,  that,  in  the  physician's
 5    opinion,  the  condition  was  so severe that it rendered the
 6    applicant incapable of filing the  application  in  a  timely
 7    manner,  and  the  date  on  which the applicant regained the
 8    capability to file the application.
 9        Beginning January  1,  1998,  notwithstanding  any  other
10    provision  to  the  contrary,  in  counties having fewer than
11    3,000,000 inhabitants, if an  applicant  fails  to  file  the
12    application  required  by this Section in a timely manner and
13    this failure to file is due to a mental or physical condition
14    sufficiently severe so as to render the  applicant  incapable
15    of  filing  the  application  in  a  timely manner, the Chief
16    County Assessment Officer may extend the filing deadline  for
17    a  period  of  3  months.   In order to receive the extension
18    provided in this paragraph, the applicant shall  provide  the
19    Chief  County Assessment Officer with a signed statement from
20    the applicant's physician stating the nature  and  extent  of
21    the  condition,  and  that,  in  the physician's opinion, the
22    condition was  so  severe  that  it  rendered  the  applicant
23    incapable of filing the application in a timely manner.
24        In counties having less than 3,000,000 inhabitants, if an
25    applicant  was  denied  an exemption in taxable year 1994 and
26    the denial occurred due  to  an  error  on  the  part  of  an
27    assessment  official,  or  his or her agent or employee, then
28    beginning in taxable year 1997 the applicant's base year, for
29    purposes of determining the amount of the exemption, shall be
30    1993 rather than 1994. In addition, in taxable year 1997, the
31    applicant's exemption shall also include an amount  equal  to
32    (i)  the  amount  of any exemption denied to the applicant in
33    taxable year 1995 as a result  of  using  1994,  rather  than
34    1993,  as  the  base  year,  (ii) the amount of any exemption
 
                            -8-                LRB9211878SMdv
 1    denied to the applicant in taxable year 1996 as a  result  of
 2    using 1994, rather than 1993, as the base year, and (iii) the
 3    amount  of  the exemption erroneously denied for taxable year
 4    1994.
 5        For purposes of this Section, a person  who  will  be  65
 6    years  of  age  during  the  current  taxable  year  shall be
 7    eligible to apply for the  homestead  exemption  during  that
 8    taxable   year.    Application   shall  be  made  during  the
 9    application period in effect for the county  of  his  or  her
10    residence.
11        The  Chief  County  Assessment  Officer may determine the
12    eligibility of a life  care  facility  that  qualifies  as  a
13    cooperative  to receive the benefits provided by this Section
14    by use  of  an  affidavit,  application,  visual  inspection,
15    questionnaire,  or other reasonable method in order to insure
16    that  the  tax  savings  resulting  from  the  exemption  are
17    credited by  the  management  firm  to  the  apportioned  tax
18    liability  of  each  qualifying  resident.   The Chief County
19    Assessment Officer may  request  reasonable  proof  that  the
20    management firm has so credited that exemption.
21        Except  as  provided  in  this  Section,  all information
22    received by  the  chief  county  assessment  officer  or  the
23    Department  from  applications  filed  under this Section, or
24    from any investigation conducted under the provisions of this
25    Section, shall be confidential, except for official  purposes
26    or  pursuant  to  official  procedures  for collection of any
27    State or local tax or enforcement of any  civil  or  criminal
28    penalty  or sanction imposed by this Act or by any statute or
29    ordinance imposing a State  or  local  tax.  Any  person  who
30    divulges  any  such  information  in  any  manner,  except in
31    accordance with a proper judicial order, is guilty of a Class
32    A misdemeanor.
33        Nothing contained  in  this  Section  shall  prevent  the
34    Director  or  chief county assessment officer from publishing
 
                            -9-                LRB9211878SMdv
 1    or making  available  reasonable  statistics  concerning  the
 2    operation of the exemption contained in this Section in which
 3    the  contents of claims are grouped into aggregates in such a
 4    way that information contained in any individual claim  shall
 5    not be disclosed.
 6        (d)  Each  Chief County Assessment Officer shall annually
 7    publish a notice of availability of  the  exemption  provided
 8    under  this  Section.  The notice shall be published at least
 9    60 days but no more than 75 days prior to the date  on  which
10    the  application  must  be  submitted  to  the  Chief  County
11    Assessment  Officer  of  the  county in which the property is
12    located.  The notice shall appear in a newspaper  of  general
13    circulation in the county.
14    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
15    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
16    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
17    eff. 6-30-99; 91-819, eff. 6-13-00.)

18        Section 90.  The State Mandates Act is amended by  adding
19    Section 8.26 as follows:

20        (30 ILCS 805/8.26 new)
21        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
22    and 8 of this Act, no reimbursement by the State is  required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 92nd General Assembly.

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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