Illinois General Assembly - Full Text of Public Act 094-0794
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Public Act 094-0794


 

Public Act 0794 94TH GENERAL ASSEMBLY



 


 
Public Act 094-0794
 
HB4789 Enrolled LRB094 18913 BDD 54359 b

    AN ACT concerning property tax.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Findings; purpose; validation.
    (a) The General Assembly finds and declares that:
        (1) Public Act 88-669, effective November 29, 1994,
    created Section 15-172 of the Property Tax Code, then known
    as the Senior Citizens Tax Freeze Homestead Exemption.
    Public Act 88-669 also contained other provisions.
        (2) The Senior Citizens Tax Freeze Homestead Exemption
    has been renamed the Senior Citizens Assessment Freeze
    Homestead Exemption.
        (3) The Illinois Supreme Court declared Public Act
    88-669 to be unconstitutional as a violation of the single
    subject clause of the Illinois Constitution in People v.
    Olender, Docket No. 98932, opinion filed December 15, 2005.
    (b) Among the purposes of this Act is the re-enactment of
the provisions of Section 15-172 of the Property Tax Code and
to minimize or prevent any problems concerning those provisions
that may arise from the unconstitutionality of Public Act
88-669. This re-enactment is intended to remove any question as
to the validity and content of those provisions; it is not
intended to supersede any other Public Act that amends the
provisions re-enacted in this Act. The re-enacted material is
shown in this Act as existing text (i.e., without underscoring)
and includes changes made by subsequent amendments. We are also
making substantive changes to the Section; these changes are
shown with striking and underscoring.
    (c) The re-enactment of the provisions of Section 15-172 of
the Property Tax Code by this Act is not intended, and shall
not be construed, to impair any legal argument concerning
whether those provisions were substantially re-enacted by any
other Public Act.
    (d) All otherwise lawful actions taken before the effective
date of this Act in reliance on or pursuant to the provisions
re-enacted by this Act, as those provisions were set forth in
Public Act 88-669 or as subsequently amended, by any officer,
employee, or agency of State government or by any other person
or entity, are hereby validated, except to the extent
prohibited under the Illinois or United States Constitution.
    (e) This Act applies, without limitation, to actions
pending on or after the effective date of this Act, except to
the extent prohibited under the Illinois or United States
Constitution.
 
    Section 5. The Property Tax Code is amended by changing
Section 15-170 and by re-enacting and changing Section 15-172
as follows:
 
    (35 ILCS 200/15-170)
    Sec. 15-170. Senior Citizens Homestead Exemption. An
annual homestead exemption limited, except as described here
with relation to cooperatives or life care facilities, to a
maximum reduction set forth below from the property's value, as
equalized or assessed by the Department, is granted for
property that is occupied as a residence by a person 65 years
of age or older who is liable for paying real estate taxes on
the property and is an owner of record of the property or has a
legal or equitable interest therein as evidenced by a written
instrument, except for a leasehold interest, other than a
leasehold interest of land on which a single family residence
is located, which is occupied as a residence by a person 65
years or older who has an ownership interest therein, legal,
equitable or as a lessee, and on which he or she is liable for
the payment of property taxes. Before taxable year 2004, the
maximum reduction shall be $2,500 in counties with 3,000,000 or
more inhabitants and $2,000 in all other counties. For taxable
years 2004 through 2005 and thereafter, the maximum reduction
shall be $3,000 in all counties. For taxable years 2006 and
thereafter, the maximum reduction shall be $3,500 in all
counties.
    For land improved with an apartment building owned and
operated as a cooperative, the maximum reduction from the value
of the property, as equalized by the Department, shall be
multiplied by the number of apartments or units occupied by a
person 65 years of age or older who is liable, by contract with
the owner or owners of record, for paying property taxes on the
property and is an owner of record of a legal or equitable
interest in the cooperative apartment building, other than a
leasehold interest. For land improved with a life care
facility, the maximum reduction from the value of the property,
as equalized by the Department, shall be multiplied by the
number of apartments or units occupied by persons 65 years of
age or older, irrespective of any legal, equitable, or
leasehold interest in the facility, who are liable, under a
contract with the owner or owners of record of the facility,
for paying property taxes on the property. In a cooperative or
a life care facility where a homestead exemption has been
granted, the cooperative association or the management firm of
the cooperative or facility shall credit the savings resulting
from that exemption only to the apportioned tax liability of
the owner or resident who qualified for the exemption. Any
person who willfully refuses to so credit the savings shall be
guilty of a Class B misdemeanor. Under this Section and
Sections 15-175 and 15-176, "life care facility" means a
facility as defined in Section 2 of the Life Care Facilities
Act, with which the applicant for the homestead exemption has a
life care contract as defined in that Act.
    When a homestead exemption has been granted under this
Section and the person qualifying subsequently becomes a
resident of a facility licensed under the Nursing Home Care
Act, the exemption shall continue so long as the residence
continues to be occupied by the qualifying person's spouse if
the spouse is 65 years of age or older, or if the residence
remains unoccupied but is still owned by the person qualified
for the homestead exemption.
    A person who will be 65 years of age during the current
assessment year shall be eligible to apply for the homestead
exemption during that assessment year. Application shall be
made during the application period in effect for the county of
his residence.
    Beginning with assessment year 2003, for taxes payable in
2004, property that is first occupied as a residence after
January 1 of any assessment year by a person who is eligible
for the senior citizens homestead exemption under this Section
must be granted a pro-rata exemption for the assessment year.
The amount of the pro-rata exemption is the exemption allowed
in the county under this Section divided by 365 and multiplied
by the number of days during the assessment year the property
is occupied as a residence by a person eligible for the
exemption under this Section. The chief county assessment
officer must adopt reasonable procedures to establish
eligibility for this pro-rata exemption.
    The assessor or chief county assessment officer may
determine the eligibility of a life care facility to receive
the benefits provided by this Section, by affidavit,
application, visual inspection, questionnaire or other
reasonable methods in order to insure that the tax savings
resulting from the exemption are credited by the management
firm to the apportioned tax liability of each qualifying
resident. The assessor may request reasonable proof that the
management firm has so credited the exemption.
    The chief county assessment officer of each county with
less than 3,000,000 inhabitants shall provide to each person
allowed a homestead exemption under this Section a form to
designate any other person to receive a duplicate of any notice
of delinquency in the payment of taxes assessed and levied
under this Code on the property of the person receiving the
exemption. The duplicate notice shall be in addition to the
notice required to be provided to the person receiving the
exemption, and shall be given in the manner required by this
Code. The person filing the request for the duplicate notice
shall pay a fee of $5 to cover administrative costs to the
supervisor of assessments, who shall then file the executed
designation with the county collector. Notwithstanding any
other provision of this Code to the contrary, the filing of
such an executed designation requires the county collector to
provide duplicate notices as indicated by the designation. A
designation may be rescinded by the person who executed such
designation at any time, in the manner and form required by the
chief county assessment officer.
    The assessor or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption provided by this Section by
application, visual inspection, questionnaire or other
reasonable methods. The determination shall be made in
accordance with guidelines established by the Department.
    In counties with less than 3,000,000 inhabitants, the
county board may by resolution provide that if a person has
been granted a homestead exemption under this Section, the
person qualifying need not reapply for the exemption.
    In counties with less than 3,000,000 inhabitants, if the
assessor or chief county assessment officer requires annual
application for verification of eligibility for an exemption
once granted under this Section, the application shall be
mailed to the taxpayer.
    The assessor or chief county assessment officer shall
notify each person who qualifies for an exemption under this
Section that the person may also qualify for deferral of real
estate taxes under the Senior Citizens Real Estate Tax Deferral
Act. The notice shall set forth the qualifications needed for
deferral of real estate taxes, the address and telephone number
of county collector, and a statement that applications for
deferral of real estate taxes may be obtained from the county
collector.
    Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03;
93-715, eff. 7-12-04.)
 
    (35 ILCS 200/15-172)
    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
Exemption.
    (a) This Section may be cited as the Senior Citizens
Assessment Freeze Homestead Exemption.
    (b) As used in this Section:
    "Applicant" means an individual who has filed an
application under this Section.
    "Base amount" means the base year equalized assessed value
of the residence plus the first year's equalized assessed value
of any added improvements which increased the assessed value of
the residence after the base year.
    "Base year" means the taxable year prior to the taxable
year for which the applicant first qualifies and applies for
the exemption provided that in the prior taxable year the
property was improved with a permanent structure that was
occupied as a residence by the applicant who was liable for
paying real property taxes on the property and who was either
(i) an owner of record of the property or had legal or
equitable interest in the property as evidenced by a written
instrument or (ii) had a legal or equitable interest as a
lessee in the parcel of property that was single family
residence. If in any subsequent taxable year for which the
applicant applies and qualifies for the exemption the equalized
assessed value of the residence is less than the equalized
assessed value in the existing base year (provided that such
equalized assessed value is not based on an assessed value that
results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years), then
that subsequent taxable year shall become the base year until a
new base year is established under the terms of this paragraph.
For taxable year 1999 only, the Chief County Assessment Officer
shall review (i) all taxable years for which the applicant
applied and qualified for the exemption and (ii) the existing
base year. The assessment officer shall select as the new base
year the year with the lowest equalized assessed value. An
equalized assessed value that is based on an assessed value
that results from a temporary irregularity in the property that
reduces the assessed value for one or more taxable years shall
not be considered the lowest equalized assessed value. The
selected year shall be the base year for taxable year 1999 and
thereafter until a new base year is established under the terms
of this paragraph.
    "Chief County Assessment Officer" means the County
Assessor or Supervisor of Assessments of the county in which
the property is located.
    "Equalized assessed value" means the assessed value as
equalized by the Illinois Department of Revenue.
    "Household" means the applicant, the spouse of the
applicant, and all persons using the residence of the applicant
as their principal place of residence.
    "Household income" means the combined income of the members
of a household for the calendar year preceding the taxable
year.
    "Income" has the same meaning as provided in Section 3.07
of the Senior Citizens and Disabled Persons Property Tax Relief
and Pharmaceutical Assistance Act, except that, beginning in
assessment year 2001, "income" does not include veteran's
benefits.
    "Internal Revenue Code of 1986" means the United States
Internal Revenue Code of 1986 or any successor law or laws
relating to federal income taxes in effect for the year
preceding the taxable year.
    "Life care facility that qualifies as a cooperative" means
a facility as defined in Section 2 of the Life Care Facilities
Act.
    "Residence" means the principal dwelling place and
appurtenant structures used for residential purposes in this
State occupied on January 1 of the taxable year by a household
and so much of the surrounding land, constituting the parcel
upon which the dwelling place is situated, as is used for
residential purposes. If the Chief County Assessment Officer
has established a specific legal description for a portion of
property constituting the residence, then that portion of
property shall be deemed the residence for the purposes of this
Section.
    "Taxable year" means the calendar year during which ad
valorem property taxes payable in the next succeeding year are
levied.
    (c) Beginning in taxable year 1994, a senior citizens
assessment freeze homestead exemption is granted for real
property that is improved with a permanent structure that is
occupied as a residence by an applicant who (i) is 65 years of
age or older during the taxable year, (ii) has a household
income of $35,000 or less prior to taxable year 1999, $40,000
or less in taxable years 1999 through 2003, and $45,000 or less
in taxable year 2004 and 2005, and $50,000 or less in taxable
year 2006 and thereafter, (iii) is liable for paying real
property taxes on the property, and (iv) is an owner of record
of the property or has a legal or equitable interest in the
property as evidenced by a written instrument. This homestead
exemption shall also apply to a leasehold interest in a parcel
of property improved with a permanent structure that is a
single family residence that is occupied as a residence by a
person who (i) is 65 years of age or older during the taxable
year, (ii) has a household income of $35,000 or less prior to
taxable year 1999, $40,000 or less in taxable years 1999
through 2003, and $45,000 or less in taxable year 2004 and
2005, and $50,000 or less in taxable year 2006 and thereafter,
(iii) has a legal or equitable ownership interest in the
property as lessee, and (iv) is liable for the payment of real
property taxes on that property.
    Through taxable year 2005, the The amount of this exemption
shall be the equalized assessed value of the residence in the
taxable year for which application is made minus the base
amount. For taxable year 2006 and thereafter, the amount of the
exemption is as follows:
        (1) For an applicant who has a household income of
    $45,000 or less, the amount of the exemption is the
    equalized assessed value of the residence in the taxable
    year for which application is made minus the base amount.
        (2) For an applicant who has a household income
    exceeding $45,000 but not exceeding $46,250, the amount of
    the exemption is (i) the equalized assessed value of the
    residence in the taxable year for which application is made
    minus the base amount (ii) multiplied by 0.8.
        (3) For an applicant who has a household income
    exceeding $46,250 but not exceeding $47,500, the amount of
    the exemption is (i) the equalized assessed value of the
    residence in the taxable year for which application is made
    minus the base amount (ii) multiplied by 0.6.
        (4) For an applicant who has a household income
    exceeding $47,500 but not exceeding $48,750, the amount of
    the exemption is (i) the equalized assessed value of the
    residence in the taxable year for which application is made
    minus the base amount (ii) multiplied by 0.4.
        (5) For an applicant who has a household income
    exceeding $48,750 but not exceeding $50,000, the amount of
    the exemption is (i) the equalized assessed value of the
    residence in the taxable year for which application is made
    minus the base amount (ii) multiplied by 0.2.
    When the applicant is a surviving spouse of an applicant
for a prior year for the same residence for which an exemption
under this Section has been granted, the base year and base
amount for that residence are the same as for the applicant for
the prior year.
    Each year at the time the assessment books are certified to
the County Clerk, the Board of Review or Board of Appeals shall
give to the County Clerk a list of the assessed values of
improvements on each parcel qualifying for this exemption that
were added after the base year for this parcel and that
increased the assessed value of the property.
    In the case of land improved with an apartment building
owned and operated as a cooperative or a building that is a
life care facility that qualifies as a cooperative, the maximum
reduction from the equalized assessed value of the property is
limited to the sum of the reductions calculated for each unit
occupied as a residence by a person or persons (i) 65 years of
age or older, (ii) with a household income of $35,000 or less
prior to taxable year 1999, $40,000 or less in taxable years
1999 through 2003, and $45,000 or less in taxable year 2004 and
2005, and $50,000 or less in taxable year 2006 and thereafter,
(iii) who is liable, by contract with the owner or owners of
record, for paying real property taxes on the property, and
(iv) who is an owner of record of a legal or equitable interest
in the cooperative apartment building, other than a leasehold
interest. In the instance of a cooperative where a homestead
exemption has been granted under this Section, the cooperative
association or its management firm shall credit the savings
resulting from that exemption only to the apportioned tax
liability of the owner who qualified for the exemption. Any
person who willfully refuses to credit that savings to an owner
who qualifies for the exemption is guilty of a Class B
misdemeanor.
    When a homestead exemption has been granted under this
Section and an applicant then becomes a resident of a facility
licensed under the Nursing Home Care Act, the exemption shall
be granted in subsequent years so long as the residence (i)
continues to be occupied by the qualified applicant's spouse or
(ii) if remaining unoccupied, is still owned by the qualified
applicant for the homestead exemption.
    Beginning January 1, 1997, when an individual dies who
would have qualified for an exemption under this Section, and
the surviving spouse does not independently qualify for this
exemption because of age, the exemption under this Section
shall be granted to the surviving spouse for the taxable year
preceding and the taxable year of the death, provided that,
except for age, the surviving spouse meets all other
qualifications for the granting of this exemption for those
years.
    When married persons maintain separate residences, the
exemption provided for in this Section may be claimed by only
one of such persons and for only one residence.
    For taxable year 1994 only, in counties having less than
3,000,000 inhabitants, to receive the exemption, a person shall
submit an application by February 15, 1995 to the Chief County
Assessment Officer of the county in which the property is
located. In counties having 3,000,000 or more inhabitants, for
taxable year 1994 and all subsequent taxable years, to receive
the exemption, a person may submit an application to the Chief
County Assessment Officer of the county in which the property
is located during such period as may be specified by the Chief
County Assessment Officer. The Chief County Assessment Officer
in counties of 3,000,000 or more inhabitants shall annually
give notice of the application period by mail or by
publication. In counties having less than 3,000,000
inhabitants, beginning with taxable year 1995 and thereafter,
to receive the exemption, a person shall submit an application
by July 1 of each taxable year to the Chief County Assessment
Officer of the county in which the property is located. A
county may, by ordinance, establish a date for submission of
applications that is different than July 1. The applicant shall
submit with the application an affidavit of the applicant's
total household income, age, marital status (and if married the
name and address of the applicant's spouse, if known), and
principal dwelling place of members of the household on January
1 of the taxable year. The Department shall establish, by rule,
a method for verifying the accuracy of affidavits filed by
applicants under this Section. The applications shall be
clearly marked as applications for the Senior Citizens
Assessment Freeze Homestead Exemption.
    Notwithstanding any other provision to the contrary, in
counties having fewer than 3,000,000 inhabitants, if an
applicant fails to file the application required by this
Section in a timely manner and this failure to file is due to a
mental or physical condition sufficiently severe so as to
render the applicant incapable of filing the application in a
timely manner, the Chief County Assessment Officer may extend
the filing deadline for a period of 30 days after the applicant
regains the capability to file the application, but in no case
may the filing deadline be extended beyond 3 months of the
original filing deadline. In order to receive the extension
provided in this paragraph, the applicant shall provide the
Chief County Assessment Officer with a signed statement from
the applicant's physician stating the nature and extent of the
condition, that, in the physician's opinion, the condition was
so severe that it rendered the applicant incapable of filing
the application in a timely manner, and the date on which the
applicant regained the capability to file the application.
    Beginning January 1, 1998, notwithstanding any other
provision to the contrary, in counties having fewer than
3,000,000 inhabitants, if an applicant fails to file the
application required by this Section in a timely manner and
this failure to file is due to a mental or physical condition
sufficiently severe so as to render the applicant incapable of
filing the application in a timely manner, the Chief County
Assessment Officer may extend the filing deadline for a period
of 3 months. In order to receive the extension provided in this
paragraph, the applicant shall provide the Chief County
Assessment Officer with a signed statement from the applicant's
physician stating the nature and extent of the condition, and
that, in the physician's opinion, the condition was so severe
that it rendered the applicant incapable of filing the
application in a timely manner.
    In counties having less than 3,000,000 inhabitants, if an
applicant was denied an exemption in taxable year 1994 and the
denial occurred due to an error on the part of an assessment
official, or his or her agent or employee, then beginning in
taxable year 1997 the applicant's base year, for purposes of
determining the amount of the exemption, shall be 1993 rather
than 1994. In addition, in taxable year 1997, the applicant's
exemption shall also include an amount equal to (i) the amount
of any exemption denied to the applicant in taxable year 1995
as a result of using 1994, rather than 1993, as the base year,
(ii) the amount of any exemption denied to the applicant in
taxable year 1996 as a result of using 1994, rather than 1993,
as the base year, and (iii) the amount of the exemption
erroneously denied for taxable year 1994.
    For purposes of this Section, a person who will be 65 years
of age during the current taxable year shall be eligible to
apply for the homestead exemption during that taxable year.
Application shall be made during the application period in
effect for the county of his or her residence.
    The Chief County Assessment Officer may determine the
eligibility of a life care facility that qualifies as a
cooperative to receive the benefits provided by this Section by
use of an affidavit, application, visual inspection,
questionnaire, or other reasonable method in order to insure
that the tax savings resulting from the exemption are credited
by the management firm to the apportioned tax liability of each
qualifying resident. The Chief County Assessment Officer may
request reasonable proof that the management firm has so
credited that exemption.
    Except as provided in this Section, all information
received by the chief county assessment officer or the
Department from applications filed under this Section, or from
any investigation conducted under the provisions of this
Section, shall be confidential, except for official purposes or
pursuant to official procedures for collection of any State or
local tax or enforcement of any civil or criminal penalty or
sanction imposed by this Act or by any statute or ordinance
imposing a State or local tax. Any person who divulges any such
information in any manner, except in accordance with a proper
judicial order, is guilty of a Class A misdemeanor.
    Nothing contained in this Section shall prevent the
Director or chief county assessment officer from publishing or
making available reasonable statistics concerning the
operation of the exemption contained in this Section in which
the contents of claims are grouped into aggregates in such a
way that information contained in any individual claim shall
not be disclosed.
    (d) Each Chief County Assessment Officer shall annually
publish a notice of availability of the exemption provided
under this Section. The notice shall be published at least 60
days but no more than 75 days prior to the date on which the
application must be submitted to the Chief County Assessment
Officer of the county in which the property is located. The
notice shall appear in a newspaper of general circulation in
the county.
    Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 93-715, eff. 7-12-04.)
 
    Section 10. The Senior Citizens Real Estate Tax Deferral
Act is amended by changing Section 2 as follows:
 
    (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
    Sec. 2. Definitions. As used in this Act:
    (a) "Taxpayer" means an individual whose household income
for the year is no greater than: (i) $40,000 through tax year
2005; and (ii) $50,000 for tax year 2006 and thereafter.
    (b) "Tax deferred property" means the property upon which
real estate taxes are deferred under this Act.
    (c) "Homestead" means the land and buildings thereon,
including a condominium or a dwelling unit in a multidwelling
building that is owned and operated as a cooperative, occupied
by the taxpayer as his residence or which are temporarily
unoccupied by the taxpayer because such taxpayer is temporarily
residing, for not more than 1 year, in a licensed facility as
defined in Section 1-113 of the Nursing Home Care Act.
    (d) "Real estate taxes" or "taxes" means the taxes on real
property for which the taxpayer would be liable under the
Property Tax Code, including special service area taxes, and
special assessments on benefited real property for which the
taxpayer would be liable to a unit of local government.
    (e) "Department" means the Department of Revenue.
    (f) "Qualifying property" means a homestead which (a) the
taxpayer or the taxpayer and his spouse own in fee simple or
are purchasing in fee simple under a recorded instrument of
sale, (b) is not income-producing property, (c) is not subject
to a lien for unpaid real estate taxes when a claim under this
Act is filed.
    (g) "Equity interest" means the current assessed valuation
of the qualified property times the fraction necessary to
convert that figure to full market value minus any outstanding
debts or liens on that property. In the case of qualifying
property not having a separate assessed valuation, the
appraised value as determined by a qualified real estate
appraiser shall be used instead of the current assessed
valuation.
    (h) "Household income" has the meaning ascribed to that
term in the Senior Citizens and Disabled Persons Property Tax
Relief and Pharmaceutical Assistance Act.
    (i) "Collector" means the county collector or, if the taxes
to be deferred are special assessments, an official designated
by a unit of local government to collect special assessments.
(Source: P.A. 92-639, eff. 1-1-03.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.30 as follows:
 
    (30 ILCS 805/8.30 new)
    Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 94th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 5/22/2006