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Full Text of SB2305  100th General Assembly

SB2305 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2305

 

Introduced 1/10/2018, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, for taxable year 2018 and thereafter, the maximum income limitation under the senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000). Effective immediately.


LRB100 15971 HLH 31089 b

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

 

 

A BILL FOR

 

SB2305LRB100 15971 HLH 31089 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 value
16of any added improvements which increased the assessed value of
17the 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 equalized
7assessed value of the residence is less than the equalized
8assessed value in the existing base year (provided that such
9equalized assessed value is not based on an assessed value that
10results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years), then
12that subsequent taxable year shall become the base year until a
13new base year is established under the terms of this paragraph.
14For taxable year 1999 only, the Chief County Assessment Officer
15shall review (i) all taxable years for which the applicant
16applied and qualified for the exemption and (ii) the existing
17base year. The assessment officer shall select as the new base
18year the year with the lowest equalized assessed value. An
19equalized assessed value that is based on an assessed value
20that results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years shall
22not be considered the lowest equalized assessed value. The
23selected year shall be the base year for taxable year 1999 and
24thereafter until a new base year is established under the terms
25of this paragraph.
26    "Chief County Assessment Officer" means the County

 

 

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1Assessor or Supervisor of Assessments of the county in which
2the property is located.
3    "Equalized assessed value" means the assessed value as
4equalized by the Illinois Department of Revenue.
5    "Household" means the applicant, the spouse of the
6applicant, and all persons using the residence of the applicant
7as their principal place of residence.
8    "Household income" means the combined income of the members
9of a household for the calendar year preceding the taxable
10year.
11    "Income" has the same meaning as provided in Section 3.07
12of the Senior Citizens and Persons with Disabilities Property
13Tax Relief Act, except that, beginning in assessment year 2001,
14"income" does not include veteran's benefits.
15    "Internal Revenue Code of 1986" means the United States
16Internal Revenue Code of 1986 or any successor law or laws
17relating to federal income taxes in effect for the year
18preceding the taxable year.
19    "Life care facility that qualifies as a cooperative" means
20a facility as defined in Section 2 of the Life Care Facilities
21Act.
22    "Maximum income limitation" means:
23        (1) $35,000 prior to taxable year 1999;
24        (2) $40,000 in taxable years 1999 through 2003;
25        (3) $45,000 in taxable years 2004 through 2005;
26        (4) $50,000 in taxable years 2006 and 2007;

 

 

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1        (5) $55,000 in taxable years 2008 through 2016;
2        (6) for taxable year 2017, (i) $65,000 for qualified
3    property located in a county with 3,000,000 or more
4    inhabitants and (ii) $55,000 for qualified property
5    located in a county with fewer than 3,000,000 inhabitants;
6    and
7        (7) for taxable years 2018 and thereafter, $75,000
8    $65,000 for all qualified property.
9    "Residence" means the principal dwelling place and
10appurtenant structures used for residential purposes in this
11State occupied on January 1 of the taxable year by a household
12and so much of the surrounding land, constituting the parcel
13upon which the dwelling place is situated, as is used for
14residential purposes. If the Chief County Assessment Officer
15has established a specific legal description for a portion of
16property constituting the residence, then that portion of
17property shall be deemed the residence for the purposes of this
18Section.
19    "Taxable year" means the calendar year during which ad
20valorem property taxes payable in the next succeeding year are
21levied.
22    (c) Beginning in taxable year 1994, a senior citizens
23assessment freeze homestead exemption is granted for real
24property that is improved with a permanent structure that is
25occupied as a residence by an applicant who (i) is 65 years of
26age or older during the taxable year, (ii) has a household

 

 

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1income that does not exceed the maximum income limitation,
2(iii) is liable for paying real property taxes on the property,
3and (iv) is an owner of record of the property or has a legal or
4equitable interest in the property as evidenced by a written
5instrument. This homestead exemption shall also apply to a
6leasehold interest in a parcel of property improved with a
7permanent structure that is a single family residence that is
8occupied as a residence by a person who (i) is 65 years of age
9or older during the taxable year, (ii) has a household income
10that does not exceed the maximum income limitation, (iii) has a
11legal or equitable ownership interest in the property as
12lessee, and (iv) is liable for the payment of real property
13taxes on that property.
14    In counties of 3,000,000 or more inhabitants, the amount of
15the exemption for all taxable years is the equalized assessed
16value of the residence in the taxable year for which
17application is made minus the base amount. In all other
18counties, the amount of the exemption is as follows: (i)
19through taxable year 2005 and for taxable year 2007 and
20thereafter, the amount of this exemption shall be the equalized
21assessed value of the residence in the taxable year for which
22application is made minus the base amount; and (ii) for taxable
23year 2006, the amount of the exemption is as follows:
24        (1) For an applicant who has a household income of
25    $45,000 or less, the amount of the exemption is the
26    equalized assessed value of the residence in the taxable

 

 

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1    year for which application is made minus the base amount.
2        (2) For an applicant who has a household income
3    exceeding $45,000 but not exceeding $46,250, the amount of
4    the exemption is (i) the equalized assessed value of the
5    residence in the taxable year for which application is made
6    minus the base amount (ii) multiplied by 0.8.
7        (3) For an applicant who has a household income
8    exceeding $46,250 but not exceeding $47,500, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.6.
12        (4) For an applicant who has a household income
13    exceeding $47,500 but not exceeding $48,750, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is made
16    minus the base amount (ii) multiplied by 0.4.
17        (5) For an applicant who has a household income
18    exceeding $48,750 but not exceeding $50,000, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is made
21    minus the base amount (ii) multiplied by 0.2.
22    When the applicant is a surviving spouse of an applicant
23for a prior year for the same residence for which an exemption
24under this Section has been granted, the base year and base
25amount for that residence are the same as for the applicant for
26the prior year.

 

 

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

 

 

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1Section and an applicant then becomes a resident of a facility
2licensed under the Assisted Living and Shared Housing Act, the
3Nursing Home Care Act, the Specialized Mental Health
4Rehabilitation Act of 2013, the ID/DD Community Care Act, or
5the MC/DD Act, the exemption shall be granted in subsequent
6years so long as the residence (i) continues to be occupied by
7the qualified applicant's spouse or (ii) if remaining
8unoccupied, is still owned by the qualified applicant for the
9homestead exemption.
10    Beginning January 1, 1997, when an individual dies who
11would have qualified for an exemption under this Section, and
12the surviving spouse does not independently qualify for this
13exemption because of age, the exemption under this Section
14shall be granted to the surviving spouse for the taxable year
15preceding and the taxable year of the death, provided that,
16except for age, the surviving spouse meets all other
17qualifications for the granting of this exemption for those
18years.
19    When married persons maintain separate residences, the
20exemption provided for in this Section may be claimed by only
21one of such persons and for only one residence.
22    For taxable year 1994 only, in counties having less than
233,000,000 inhabitants, to receive the exemption, a person shall
24submit an application by February 15, 1995 to the Chief County
25Assessment Officer of the county in which the property is
26located. In counties having 3,000,000 or more inhabitants, for

 

 

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1taxable year 1994 and all subsequent taxable years, to receive
2the exemption, a person may submit an application to the Chief
3County Assessment Officer of the county in which the property
4is located during such period as may be specified by the Chief
5County Assessment Officer. The Chief County Assessment Officer
6in counties of 3,000,000 or more inhabitants shall annually
7give notice of the application period by mail or by
8publication. In counties having less than 3,000,000
9inhabitants, beginning with taxable year 1995 and thereafter,
10to receive the exemption, a person shall submit an application
11by July 1 of each taxable year to the Chief County Assessment
12Officer of the county in which the property is located. A
13county may, by ordinance, establish a date for submission of
14applications that is different than July 1. The applicant shall
15submit with the application an affidavit of the applicant's
16total household income, age, marital status (and if married the
17name and address of the applicant's spouse, if known), and
18principal dwelling place of members of the household on January
191 of the taxable year. The Department shall establish, by rule,
20a method for verifying the accuracy of affidavits filed by
21applicants under this Section, and the Chief County Assessment
22Officer may conduct audits of any taxpayer claiming an
23exemption under this Section to verify that the taxpayer is
24eligible to receive the exemption. Each application shall
25contain or be verified by a written declaration that it is made
26under the penalties of perjury. A taxpayer's signing a

 

 

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1fraudulent application under this Act is perjury, as defined in
2Section 32-2 of the Criminal Code of 2012. The applications
3shall be clearly marked as applications for the Senior Citizens
4Assessment Freeze Homestead Exemption and must contain a notice
5that any taxpayer who receives the exemption is subject to an
6audit by the Chief County Assessment Officer.
7    Notwithstanding any other provision to the contrary, in
8counties having fewer than 3,000,000 inhabitants, if an
9applicant fails to file the application required by this
10Section in a timely manner and this failure to file is due to a
11mental or physical condition sufficiently severe so as to
12render the applicant incapable of filing the application in a
13timely manner, the Chief County Assessment Officer may extend
14the filing deadline for a period of 30 days after the applicant
15regains the capability to file the application, but in no case
16may the filing deadline be extended beyond 3 months of the
17original filing deadline. In order to receive the extension
18provided in this paragraph, the applicant shall provide the
19Chief County Assessment Officer with a signed statement from
20the applicant's physician, advanced practice registered nurse,
21or physician assistant stating the nature and extent of the
22condition, that, in the physician's, advanced practice
23registered nurse's, or physician assistant's opinion, the
24condition was so severe that it rendered the applicant
25incapable of filing the application in a timely manner, and the
26date on which the applicant regained the capability to file the

 

 

SB2305- 11 -LRB100 15971 HLH 31089 b

1application.
2    Beginning January 1, 1998, notwithstanding any other
3provision to the contrary, in counties having fewer than
43,000,000 inhabitants, if an applicant fails to file the
5application required by this Section in a timely manner and
6this failure to file is due to a mental or physical condition
7sufficiently severe so as to render the applicant incapable of
8filing the application in a timely manner, the Chief County
9Assessment Officer may extend the filing deadline for a period
10of 3 months. In order to receive the extension provided in this
11paragraph, the applicant shall provide the Chief County
12Assessment Officer with a signed statement from the applicant's
13physician, advanced practice registered nurse, or physician
14assistant stating the nature and extent of the condition, and
15that, in the physician's, advanced practice registered
16nurse's, or physician assistant's opinion, the condition was so
17severe that it rendered the applicant incapable of filing the
18application in a timely manner.
19    In counties having less than 3,000,000 inhabitants, if an
20applicant was denied an exemption in taxable year 1994 and the
21denial occurred due to an error on the part of an assessment
22official, or his or her agent or employee, then beginning in
23taxable year 1997 the applicant's base year, for purposes of
24determining the amount of the exemption, shall be 1993 rather
25than 1994. In addition, in taxable year 1997, the applicant's
26exemption shall also include an amount equal to (i) the amount

 

 

SB2305- 12 -LRB100 15971 HLH 31089 b

1of any exemption denied to the applicant in taxable year 1995
2as a result of using 1994, rather than 1993, as the base year,
3(ii) the amount of any exemption denied to the applicant in
4taxable year 1996 as a result of using 1994, rather than 1993,
5as the base year, and (iii) the amount of the exemption
6erroneously denied for taxable year 1994.
7    For purposes of this Section, a person who will be 65 years
8of age during the current taxable year shall be eligible to
9apply for the homestead exemption during that taxable year.
10Application shall be made during the application period in
11effect for the county of his or her residence.
12    The Chief County Assessment Officer may determine the
13eligibility of a life care facility that qualifies as a
14cooperative to receive the benefits provided by this Section by
15use of an affidavit, application, visual inspection,
16questionnaire, or other reasonable method in order to insure
17that the tax savings resulting from the exemption are credited
18by the management firm to the apportioned tax liability of each
19qualifying resident. The Chief County Assessment Officer may
20request reasonable proof that the management firm has so
21credited that exemption.
22    Except as provided in this Section, all information
23received by the chief county assessment officer or the
24Department from applications filed under this Section, or from
25any investigation conducted under the provisions of this
26Section, shall be confidential, except for official purposes or

 

 

SB2305- 13 -LRB100 15971 HLH 31089 b

1pursuant to official procedures for collection of any State or
2local tax or enforcement of any civil or criminal penalty or
3sanction imposed by this Act or by any statute or ordinance
4imposing a State or local tax. Any person who divulges any such
5information in any manner, except in accordance with a proper
6judicial order, is guilty of a Class A misdemeanor.
7    Nothing contained in this Section shall prevent the
8Director or chief county assessment officer from publishing or
9making available reasonable statistics concerning the
10operation of the exemption contained in this Section in which
11the contents of claims are grouped into aggregates in such a
12way that information contained in any individual claim shall
13not be disclosed.
14    Notwithstanding any other provision of law, for taxable
15year 2017 and thereafter, in counties of 3,000,000 or more
16inhabitants, the amount of the exemption shall be the greater
17of (i) the amount of the exemption otherwise calculated under
18this Section or (ii) $2,000.
19    (d) Each Chief County Assessment Officer shall annually
20publish a notice of availability of the exemption provided
21under this Section. The notice shall be published at least 60
22days but no more than 75 days prior to the date on which the
23application must be submitted to the Chief County Assessment
24Officer of the county in which the property is located. The
25notice shall appear in a newspaper of general circulation in
26the county.

 

 

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1    Notwithstanding Sections 6 and 8 of the State Mandates Act,
2no reimbursement by the State is required for the
3implementation of any mandate created by this Section.
4(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
599-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
68-25-17; 100-513, eff. 1-1-18; revised 9-25-17.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.