101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5293

 

Introduced , by Rep. Deanne M. Mazzochi

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172.1 new

    Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (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, if no individual residing at the real property is or will be enrolled in a public school. 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 adding
5Section 15-172.1 as follows:
 
6    (35 ILCS 200/15-172.1 new)
7    Sec. 15-172.1. Senior Citizens Homestead Exemption School
8Levy Cap.
9    (a) This Section may be cited as the Senior Citizens
10Homestead Exemption School Levy Cap.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base year" means the taxable year for which the applicant
15first qualifies and applies for the exemption, provided that,
16in the prior taxable year, the property was improved with a
17permanent structure that was occupied as as the primary
18residence by an applicant who was liable for paying real
19property taxes on the property and who was either (i) an owner
20of record of the property or had legal or equitable interest in
21the property as evidenced by a written instrument or (ii) had a
22legal or equitable interest as a lessee in the parcel of
23property that was an single-family residence and that lease

 

 

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1obligates the lessee to pay property taxes on the parcel.
2    "Base year applicable K-12 school salary levy" means the
3aggregate tax levy share applied to the property in the base
4year pursuant to Section 17-2 of the School Code that derives
5from: (i) faculty salaries and benefits; (ii) administrator
6salaries and benefits; and (iii) classified staff salaries and
7benefits.
8    "Retirement age base amount" means the base year equalized
9assessed value of a residence as of the year the first
10homeowner of the residence, who has resided in the residence as
11a primary residence for a period of at least 5 years, turns age
1265.
13    "Chief county assessment officer" means the County
14Assessor or Supervisor of Assessments of the county in which
15the property is located.
16    "Equalized assessed value" means the assessed value as
17equalized by the Department of Revenue.
18    "Household" means the applicant, the spouse of the
19applicant, and all persons using the residence of the applicant
20as their principal place of residence.
21    "Household income" means the combined income of the members
22of a household for the calendar year preceding the taxable
23year.
24    "Income" has the same meaning as provided in Section 3.07
25of the Senior Citizens and Persons with Disabilities Property
26Tax Relief Act, except that "income" does not include veteran's

 

 

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1benefits.
2    "Incremental K-12 school salary levy" means for any year
3subsequent to the base year, the aggregate tax levy share
4applied to the property pursuant to Section 17-2 that derives
5from: (i) faculty salaries and benefits; (ii) administrator
6salaries and benefits; and (iii) classified staff salaries and
7benefits, which exceeds the base year applicable K-12 school
8salary levy.
9    "Incremental K-12 school salary levy exemption amount"
10means the incremental K-12 school salary levy exemption
11calculated for that tax year.
12    "Internal Revenue Code of 1986" means the United States
13Internal Revenue Code of 1986 or any successor law or laws
14relating to federal income taxes in effect for the year
15preceding the taxable year.
16    "Life care facility that qualifies as a cooperative" means
17a facility as defined in Section 2 of the Life Care Facilities
18Act.
19    "Maximum income limitation" means for taxable years 2021
20and thereafter, $100,000 per year, indexed to annual inflation
21rates, or 2%, whichever is less per year.
22    "Residence" means the principal dwelling place and
23appurtenant structures used for residential purposes in this
24State occupied on January 1 of the taxable year by a household
25and so much of the surrounding land, constituting the parcel
26upon which the dwelling place is situated, as is used for

 

 

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1residential purposes. If the chief county assessment officer
2has established a specific legal description for a portion of
3property constituting the residence, then that portion of
4property shall be deemed the residence for the purposes of this
5Section.
6    "Taxable year" means the calendar year during which ad
7valorem property taxes payable in the next succeeding year are
8levied.
9    (c) Beginning in taxable year 2021, a senior citizens
10homestead school levy exemption is granted for real property
11that is improved with a permanent structure that is occupied as
12the primary residence by an applicant who (i) is 65 years of
13age or older during the taxable year, (ii) has a household
14income that does not exceed the maximum income limitation,
15(iii) is liable for paying real property taxes on the property,
16(iv) is an owner of record of the property or has a legal or
17equitable interest in the property as evidenced by a written
18instrument, if no individual residing at the real property is
19or will be enrolled in a tax levying body eligible to place a
20levy on the property pursuant to Section 17-2 of the School
21Code. This homestead school levy exemption shall also apply to
22a leasehold interest in a parcel of property improved with a
23permanent structure that is a single family residence that is
24occupied as a residence by a person who: (i) is 65 years of age
25or older during the taxable year; (ii) has a household income
26that does not exceed the maximum income limitation; (iii) has a

 

 

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1legal or equitable ownership interest in the property as
2lessee; and (iv) is liable for the payment of real property
3taxes on that property.
4    (d) In counties of 3,000,000 or more inhabitants, the
5amount of the exemption for all taxable years for qualifying
6residents is the incremental K-12 school salary levy exemption
7amount, which may be reduced by an amount not to exceed the
8percentage change in the Consumer Price Index for All Urban
9Consumers for that year. In all other counties, the amount of
10the exemption for qualifying residents is the Incremental K-12
11school salary levy exemption amount, provided that the
12Incremental K-12 school salary levy exemption amount may be
13reduced by 1% per year, provided that the total Incremental
14K-12 school salary levy does not exceed 2% of the fair market
15value of the property.
16    When the applicant is a surviving spouse of an applicant
17for a prior year for the same residence for which an exemption
18under this Section has been granted, the exemption shall still
19apply provided that no individual residing at the real property
20is or will be enrolled in a tax levying body eligible to place
21a levy on the property pursuant to Section 17-2 of the School
22Code.
23    Each year at the time the assessment books are certified to
24the county clerk, the board of review shall give to the county
25clerk a list of the assessed values of improvements on each
26parcel qualifying for this exemption that were added after the

 

 

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1base year for this parcel and that increased the assessed value
2of the property. In the case of land improved with an apartment
3building owned and operated as a cooperative or a building that
4is a life care facility that qualifies as a cooperative, the
5maximum reduction from the equalized assessed value of the
6property is limited to the sum of the reductions calculated for
7each unit occupied as a residence by a person or persons (i) 65
8years of age or older, (ii) with a household income that does
9not exceed the maximum income limitation, (iii) who is liable,
10by contract with the owner or owners of record, for paying real
11property taxes on the property, and (iv) who is an owner of
12record of a legal or equitable interest in the cooperative
13apartment building, other than a leasehold interest, provided
14that no individual residing at the real property is or will be
15enrolled in a tax levying body eligible to place a levy on the
16property pursuant to Section 17-2 of the School Code. In the
17instance of a cooperative where a homestead exemption has been
18granted under this Section, the cooperative association or its
19management firm shall credit the savings resulting from that
20exemption only to the apportioned tax liability of the owner
21who qualified for the exemption. Any person who willfully
22refuses to credit that savings to an owner who qualifies for
23the exemption is guilty of a Class B misdemeanor. When a
24homestead exemption has been granted under this Section and an
25applicant then becomes a resident of a facility licensed under
26the Assisted Living and Shared Housing Act, the Nursing Home

 

 

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1Care Act, the Specialized Mental Health Rehabilitation Act of
22013, the ID/DD Community Care Act, or the MC/DD Act, the
3exemption shall be granted in subsequent years so long as the
4residence (i) continues to be occupied by the qualified
5applicant's spouse or (ii) if remaining unoccupied, is still
6owned by the qualified applicant for the homestead exemption,
7and no individual residing at the real property is or will be
8enrolled in a tax levying body eligible to place a levy on the
9property pursuant to Section 17-2 of the School Code.
10    When married persons maintain separate residences, the
11exemption provided for in this Section may be claimed by only
12one of such persons and for only one residence, and provided
13that no individual residing at the real property is or will be
14enrolled in a tax levying body eligible to place a levy on the
15property pursuant to Section 17-2 of the School Code. For
16taxable year 2022, in counties having less than 3,000,000
17inhabitants, to receive the exemption, a person shall submit an
18application by February 15, 2022 to the chief county assessment
19officer of the county in which the property is located. In
20counties having 3,000,000 or more inhabitants, for taxable year
212022 and all subsequent taxable years, to receive the
22exemption, a person may submit an application to the Chief
23County Assessment Officer of the county in which the property
24is located during such period as may be specified by the Chief
25County Assessment officer. The Chief County Assessment Officer
26in counties of 3,000,000 or more inhabitants shall annually

 

 

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1give notice of the application period by mail or by
2publication. In counties having less than 3,000,000
3inhabitants, beginning with taxable year 2022 and thereafter, a
4county may, by ordinance, establish a date for submission of
5applications that is different than February 15. The applicant
6shall submit with the application an affidavit of the
7applicant's total household income, age, marital status (and if
8married the name and address of the applicant's spouse, if
9known), confirmation that no individual residing at the real
10property is or will be enrolled in a tax levying body eligible
11to place a levy on the property pursuant to Section 17-2 of the
12School Code for the full taxable year, and principal dwelling
13place of members of the household on January 1 of the taxable
14year. The Department shall establish, by rule, a method for
15verifying the accuracy of affidavits filed by applicants under
16this Section, and the chief county assessment officer may
17conduct audits of any taxpayer claiming an exemption under this
18Section to verify that the taxpayer is eligible to receive the
19exemption. Each application shall contain or be verified by a
20written declaration that it is made under the penalties of
21perjury. A taxpayer's signing a fraudulent application under
22this Act is perjury, as defined in Section 32-2 of the Criminal
23Code of 2012. The applications shall be clearly marked as
24applications for the Senior Citizens Homestead Exemption
25School Levy Cap and must contain a notice that any taxpayer who
26receives the exemption is subject to an audit by the Chief

 

 

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1County Assessment Officer.
2    Beginning January 1, 2022, 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    For purposes of this Section, a person who will be 65 years
20of age during the current taxable year shall be eligible to
21apply for the Senior Citizens Homestead Exemption School Levy
22Cap during that taxable year. Application shall be made during
23the application period in effect for the county of his or her
24residence.
25    The chief county assessment officer may determine the
26eligibility of a life care facility that qualifies as a

 

 

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

 

 

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1publish a notice of availability of the exemption provided
2under this Section. The notice shall be published at least 60
3days but no more than 75 days prior to the date on which the
4application must be submitted to the chief county assessment
5officer of the county in which the property is located. The
6notice shall appear in a newspaper of general circulation in
7the county.
8    Notwithstanding Sections 6 and 8 of the State Mandates Act,
9no reimbursement by the State is required for the
10implementation of any mandate created by this Section.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.