99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2433

 

Introduced 2/17/2015, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Includes disabled persons within the provisions granting an assessment freeze homestead exemption to senior citizens and changes the title of the exemption to the Senior Citizens and Disabled Persons Assessment Freeze Homestead Exemption. Effective immediately.


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

 

 

A BILL FOR

 

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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 and Disabled Persons
8Assessment Freeze Homestead Exemption.
9    (a) This Section may be cited as the Senior Citizens and
10Disabled Persons Assessment 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    "Disabled person" means a person who is unable to engage in
4any substantial gainful activity by reason of a medically
5determinable physical or mental impairment that (i) can be
6expected to result in death or (ii) has lasted or can be
7expected to last for a continuous period of not less than 12
8months. Disabled persons applying for the exemption under this
9Section must submit proof of the disability in the manner
10prescribed by the chief county assessment officer. Proof that
11an applicant is eligible to receive disability benefits under
12the federal Social Security Act constitutes proof of disability
13for purposes of this Section. Issuance of an Illinois Disabled
14Person Identification Card to the applicant stating that the
15possessor is under a Class 2 disability, as defined in Section
164A of the Illinois Identification Card Act, constitutes proof
17that the person is a disabled person for purposes of this
18Section.
19    "Equalized assessed value" means the assessed value as
20equalized by the Illinois Department of Revenue.
21    "Household" means the applicant, the spouse of the
22applicant, and all persons using the residence of the applicant
23as their principal place of residence.
24    "Household income" means the combined income of the members
25of a household for the calendar year preceding the taxable
26year.

 

 

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1    "Income" has the same meaning as provided in Section 3.07
2of the Senior Citizens and Disabled Persons Property Tax Relief
3Act, except that, beginning in assessment year 2001, "income"
4does not include veteran's benefits.
5    "Internal Revenue Code of 1986" means the United States
6Internal Revenue Code of 1986 or any successor law or laws
7relating to federal income taxes in effect for the year
8preceding the taxable year.
9    "Life care facility that qualifies as a cooperative" means
10a facility as defined in Section 2 of the Life Care Facilities
11Act.
12    "Maximum income limitation" means:
13        (1) $35,000 prior to taxable year 1999;
14        (2) $40,000 in taxable years 1999 through 2003;
15        (3) $45,000 in taxable years 2004 through 2005;
16        (4) $50,000 in taxable years 2006 and 2007; and
17        (5) $55,000 in taxable year 2008 and thereafter.
18    "Residence" means the principal dwelling place and
19appurtenant structures used for residential purposes in this
20State occupied on January 1 of the taxable year by a household
21and so much of the surrounding land, constituting the parcel
22upon which the dwelling place is situated, as is used for
23residential purposes. If the Chief County Assessment Officer
24has established a specific legal description for a portion of
25property constituting the residence, then that portion of
26property shall be deemed the residence for the purposes of this

 

 

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1Section.
2    "Taxable year" means the calendar year during which ad
3valorem property taxes payable in the next succeeding year are
4levied.
5    (c) Beginning in (1) taxable year 1994 for , a senior
6citizens and (2) taxable year 2015 for disabled persons, an
7assessment freeze homestead exemption is granted for real
8property that is improved with a permanent structure that is
9occupied as a residence by an applicant who (i) is 65 years of
10age or older or is a disabled person during the taxable year,
11(ii) has a household income that does not exceed the maximum
12income limitation, (iii) is liable for paying real property
13taxes on the property, and (iv) is an owner of record of the
14property or has a legal or equitable interest in the property
15as evidenced by a written instrument. This homestead exemption
16shall also apply to a leasehold interest in a parcel of
17property improved with a permanent structure that is a single
18family residence that is occupied as a residence by a person
19who (i) is 65 years of age or older or is a disabled person
20during the taxable year, (ii) has a household income that does
21not exceed the maximum income limitation, (iii) has a legal or
22equitable ownership interest in the property as lessee, and
23(iv) is liable for the payment of real property taxes on that
24property.
25    In counties of 3,000,000 or more inhabitants, the amount of
26the exemption for all taxable years is the equalized assessed

 

 

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1value of the residence in the taxable year for which
2application is made minus the base amount. In all other
3counties, the amount of the exemption is as follows: (i)
4through taxable year 2005 and for taxable year 2007 and
5thereafter, the amount of this exemption shall be the equalized
6assessed value of the residence in the taxable year for which
7application is made minus the base amount; and (ii) for taxable
8year 2006, the amount of the exemption is as follows:
9        (1) For an applicant who has a household income of
10    $45,000 or less, the amount of the exemption is the
11    equalized assessed value of the residence in the taxable
12    year for which application is made minus the base amount.
13        (2) For an applicant who has a household income
14    exceeding $45,000 but not exceeding $46,250, the amount of
15    the exemption is (i) the equalized assessed value of the
16    residence in the taxable year for which application is made
17    minus the base amount (ii) multiplied by 0.8.
18        (3) For an applicant who has a household income
19    exceeding $46,250 but not exceeding $47,500, the amount of
20    the exemption is (i) the equalized assessed value of the
21    residence in the taxable year for which application is made
22    minus the base amount (ii) multiplied by 0.6.
23        (4) For an applicant who has a household income
24    exceeding $47,500 but not exceeding $48,750, the amount of
25    the exemption is (i) the equalized assessed value of the
26    residence in the taxable year for which application is made

 

 

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1    minus the base amount (ii) multiplied by 0.4.
2        (5) For an applicant who has a household income
3    exceeding $48,750 but not exceeding $50,000, 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 0.2.
7    When the applicant is a surviving spouse of an applicant
8for a prior year for the same residence for which an exemption
9under this Section has been granted, the base year and base
10amount for that residence are the same as for the applicant for
11the prior year.
12    Each year at the time the assessment books are certified to
13the County Clerk, the Board of Review or Board of Appeals shall
14give to the County Clerk a list of the assessed values of
15improvements on each parcel qualifying for this exemption that
16were added after the base year for this parcel and that
17increased the assessed value of the property.
18    In the case of land improved with an apartment building
19owned and operated as a cooperative or a building that is a
20life care facility that qualifies as a cooperative, the maximum
21reduction from the equalized assessed value of the property is
22limited to the sum of the reductions calculated for each unit
23occupied as a residence by at least one person a person or
24persons (i) who is 65 years of age or older or a disabled
25person, (ii) with a household income that does not exceed the
26maximum income limitation, (iii) who is liable, by contract

 

 

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1with the owner or owners of record, for paying real property
2taxes on the property, and (iv) who is an owner of record of a
3legal or equitable interest in the cooperative apartment
4building, other than a leasehold interest. In the instance of a
5cooperative where a homestead exemption has been granted under
6this Section, the cooperative association or its management
7firm shall credit the savings resulting from that exemption
8only to the apportioned tax liability of the owner who
9qualified for the exemption. Any person who willfully refuses
10to credit that savings to an owner who qualifies for the
11exemption is guilty of a Class B misdemeanor.
12    When a homestead exemption has been granted under this
13Section and an applicant then becomes a resident of a facility
14licensed under the Assisted Living and Shared Housing Act, the
15Nursing Home Care Act, the Specialized Mental Health
16Rehabilitation Act of 2013, or the ID/DD Community Care Act,
17the exemption shall be granted in subsequent years so long as
18the residence (i) continues to be occupied by the qualified
19applicant's spouse or (ii) if remaining unoccupied, is still
20owned by the qualified applicant for the homestead exemption.
21    Beginning January 1, 1997 for senior citizens and January
221, 2015 for disabled persons, when an individual dies who would
23have qualified for an exemption under this Section, and the
24surviving spouse does not independently qualify for this
25exemption because of age or nondisability, the exemption under
26this Section shall be granted to the surviving spouse for the

 

 

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1taxable year preceding and the taxable year of the death,
2provided that, except for age or nondisability, the surviving
3spouse meets all other qualifications for the granting of this
4exemption for those years.
5    When married persons maintain separate residences, the
6exemption provided for in this Section may be claimed by only
7one of such persons and for only one residence.
8    For taxable year 1994 only, in counties having less than
93,000,000 inhabitants, to receive the exemption, a person shall
10submit an application by February 15, 1995 to the Chief County
11Assessment Officer of the county in which the property is
12located. In counties having 3,000,000 or more inhabitants, for
13taxable year 1994 and all subsequent taxable years, to receive
14the exemption, a person may submit an application to the Chief
15County Assessment Officer of the county in which the property
16is located during such period as may be specified by the Chief
17County Assessment Officer. The Chief County Assessment Officer
18in counties of 3,000,000 or more inhabitants shall annually
19give notice of the application period by mail or by
20publication. In counties having less than 3,000,000
21inhabitants, beginning with taxable year 1995 and thereafter,
22to receive the exemption, a person shall submit an application
23by July 1 of each taxable year to the Chief County Assessment
24Officer of the county in which the property is located. A
25county may, by ordinance, establish a date for submission of
26applications that is different than July 1. The applicant shall

 

 

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1submit with the application an affidavit of the applicant's
2total household income, age, marital status (and if married the
3name and address of the applicant's spouse, if known),
4disability (if applying for the exemption as a disabled
5person), and principal dwelling place of members of the
6household on January 1 of the taxable year. The Department
7shall establish, by rule, a method for verifying the accuracy
8of affidavits filed by applicants under this Section, and the
9Chief County Assessment Officer may conduct audits of any
10taxpayer claiming an exemption under this Section to verify
11that the taxpayer is eligible to receive the exemption. Each
12application shall contain or be verified by a written
13declaration that it is made under the penalties of perjury. A
14taxpayer's signing a fraudulent application under this Act is
15perjury, as defined in Section 32-2 of the Criminal Code of
162012. The applications shall be clearly marked as applications
17for the Senior Citizens and Disabled Persons Assessment Freeze
18Homestead Exemption and must contain a notice that any taxpayer
19who receives the exemption is subject to an audit by the Chief
20County Assessment Officer.
21    Notwithstanding any other provision to the contrary, in
22counties having fewer than 3,000,000 inhabitants, if an
23applicant fails to file the application required by this
24Section in a timely manner and this failure to file is due to a
25mental or physical condition sufficiently severe so as to
26render the applicant incapable of filing the application in a

 

 

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1timely manner, the Chief County Assessment Officer may extend
2the filing deadline for a period of 30 days after the applicant
3regains the capability to file the application, but in no case
4may the filing deadline be extended beyond 3 months of the
5original filing deadline. In order to receive the extension
6provided in this paragraph, the applicant shall provide the
7Chief County Assessment Officer with a signed statement from
8the applicant's physician stating the nature and extent of the
9condition, that, in the physician's opinion, the condition was
10so severe that it rendered the applicant incapable of filing
11the application in a timely manner, and the date on which the
12applicant regained the capability to file the application.
13    Beginning January 1, 1998, notwithstanding any other
14provision to the contrary, in counties having fewer than
153,000,000 inhabitants, if an applicant fails to file the
16application required by this Section in a timely manner and
17this failure to file is due to a mental or physical condition
18sufficiently severe so as to render the applicant incapable of
19filing the application in a timely manner, the Chief County
20Assessment Officer may extend the filing deadline for a period
21of 3 months. In order to receive the extension provided in this
22paragraph, the applicant shall provide the Chief County
23Assessment Officer with a signed statement from the applicant's
24physician stating the nature and extent of the condition, and
25that, in the physician's opinion, the condition was so severe
26that it rendered the applicant incapable of filing the

 

 

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1application in a timely manner.
2    In counties having less than 3,000,000 inhabitants, if an
3applicant was denied an exemption in taxable year 1994 and the
4denial occurred due to an error on the part of an assessment
5official, or his or her agent or employee, then beginning in
6taxable year 1997 the applicant's base year, for purposes of
7determining the amount of the exemption, shall be 1993 rather
8than 1994. In addition, in taxable year 1997, the applicant's
9exemption shall also include an amount equal to (i) the amount
10of any exemption denied to the applicant in taxable year 1995
11as a result of using 1994, rather than 1993, as the base year,
12(ii) the amount of any exemption denied to the applicant in
13taxable year 1996 as a result of using 1994, rather than 1993,
14as the base year, and (iii) the amount of the exemption
15erroneously denied for taxable year 1994.
16    For purposes of this Section, a person who will be 65 years
17of age or is a disabled person during the current taxable year
18shall be eligible to apply for the homestead exemption during
19that taxable year. Application shall be made during the
20application period in effect for the county of his or her
21residence.
22    The Chief County Assessment Officer may determine the
23eligibility of a life care facility that qualifies as a
24cooperative to receive the benefits provided by this Section by
25use of an affidavit, application, visual inspection,
26questionnaire, or other reasonable method in order to insure

 

 

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1that the tax savings resulting from the exemption are credited
2by the management firm to the apportioned tax liability of each
3qualifying resident. The Chief County Assessment Officer may
4request reasonable proof that the management firm has so
5credited that exemption.
6    Except as provided in this Section, all information
7received by the chief county assessment officer or the
8Department from applications filed under this Section, or from
9any investigation conducted under the provisions of this
10Section, shall be confidential, except for official purposes or
11pursuant to official procedures for collection of any State or
12local tax or enforcement of any civil or criminal penalty or
13sanction imposed by this Act or by any statute or ordinance
14imposing a State or local tax. Any person who divulges any such
15information in any manner, except in accordance with a proper
16judicial order, is guilty of a Class A misdemeanor.
17    Nothing contained in this Section shall prevent the
18Director or chief county assessment officer from publishing or
19making available reasonable statistics concerning the
20operation of the exemption contained in this Section in which
21the contents of claims are grouped into aggregates in such a
22way that information contained in any individual claim shall
23not be disclosed.
24    (d) Each Chief County Assessment Officer shall annually
25publish a notice of availability of the exemption provided
26under this Section. The notice shall be published at least 60

 

 

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1days but no more than 75 days prior to the date on which the
2application must be submitted to the Chief County Assessment
3Officer of the county in which the property is located. The
4notice shall appear in a newspaper of general circulation in
5the county.
6    Notwithstanding Sections 6 and 8 of the State Mandates Act,
7no reimbursement by the State is required for the
8implementation of any mandate created by this Section.
9(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
10eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
1198-104, eff. 7-22-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.