093_HB0067

 
                                     LRB093 02647 SJM 02657 b

 1        AN ACT concerning 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-      LRB093 02647 SJM 02657 b
 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" means adjusted gross income, properly reportable
31    for federal income tax purposes under the provisions  of  the
32    Internal  Revenue  Code  of  1986.  has  the  same meaning as
33    provided in Section 3.07 of the Senior Citizens and  Disabled
34    Persons  Property  Tax  Relief  and Pharmaceutical Assistance
 
                            -3-      LRB093 02647 SJM 02657 b
 1    Act, except that, beginning in assessment year 2001, "income"
 2    does not include veteran's benefits.
 3        "Internal Revenue Code of 1986" means the  United  States
 4    Internal  Revenue  Code  of 1986 or any successor law or laws
 5    relating to federal income  taxes  in  effect  for  the  year
 6    preceding the taxable year.
 7        "Life  care  facility  that  qualifies  as a cooperative"
 8    means a facility as defined in Section 2  of  the  Life  Care
 9    Facilities Act.
10        "Residence"   means  the  principal  dwelling  place  and
11    appurtenant structures used for residential purposes in  this
12    State  occupied  on  January  1  of  the  taxable  year  by a
13    household and so much of the surrounding  land,  constituting
14    the  parcel  upon which the dwelling place is situated, as is
15    used for residential purposes. If the Chief County Assessment
16    Officer has established a specific legal  description  for  a
17    portion  of  property  constituting  the residence, then that
18    portion of property shall be deemed  the  residence  for  the
19    purposes of this Section.
20        "Taxable  year"  means  the calendar year during which ad
21    valorem property taxes payable in the  next  succeeding  year
22    are levied.
23        (c)  Beginning  in  taxable  year 1994, a senior citizens
24    assessment freeze homestead exemption  is  granted  for  real
25    property  that is improved with a permanent structure that is
26    occupied as a residence by an applicant who (i) is  65  years
27    of age or older during the taxable year, (ii) has a household
28    income  of  $35,000  or  less  prior  to taxable year 1999 or
29    $40,000 or less in taxable year 1999 and thereafter, (iii) is
30    liable for paying real property taxes on  the  property,  and
31    (iv)  is an owner of record of the property or has a legal or
32    equitable interest in the property as evidenced by a  written
33    instrument.  This  homestead  exemption shall also apply to a
34    leasehold interest in a parcel of property  improved  with  a
 
                            -4-      LRB093 02647 SJM 02657 b
 1    permanent structure that is a single family residence that is
 2    occupied  as  a  residence by a person who (i) is 65 years of
 3    age or older during the taxable year, (ii)  has  a  household
 4    income  of  $35,000  or  less  prior  to taxable year 1999 or
 5    $40,000 or less in taxable year 1999  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  year  1999 and thereafter who is liable, by contract
32    with the owner or owners of record, for paying real  property
33    taxes  on  the  property  and  who is an owner of record of a
34    legal or equitable  interest  in  the  cooperative  apartment
 
                            -5-      LRB093 02647 SJM 02657 b
 1    building, other than a leasehold interest. In the instance of
 2    a  cooperative  where  a homestead exemption has been granted
 3    under  this  Section,  the  cooperative  association  or  its
 4    management firm shall credit the savings resulting from  that
 5    exemption  only to the apportioned tax liability of the owner
 6    who qualified for the exemption.  Any  person  who  willfully
 7    refuses  to credit that savings to an owner who qualifies for
 8    the exemption is guilty of a Class B misdemeanor.
 9        When a homestead exemption has been  granted  under  this
10    Section  and  an  applicant  then  becomes  a  resident  of a
11    facility licensed  under  the  Nursing  Home  Care  Act,  the
12    exemption shall be granted in subsequent years so long as the
13    residence  (i)  continues  to  be  occupied  by the qualified
14    applicant's spouse or (ii) if remaining unoccupied, is  still
15    owned by the qualified applicant for the homestead exemption.
16        Beginning  January  1,  1997, when an individual dies who
17    would have qualified for an exemption under this Section, and
18    the surviving spouse does not independently qualify for  this
19    exemption  because  of  age, the exemption under this Section
20    shall be granted to the surviving spouse for the taxable year
21    preceding and the taxable year of the death,  provided  that,
22    except   for  age,  the  surviving  spouse  meets  all  other
23    qualifications for the granting of this exemption  for  those
24    years.
25        When  married  persons  maintain separate residences, the
26    exemption provided for in this Section may be claimed by only
27    one of such persons and for only one residence.
28        For taxable year 1994 only, in counties having less  than
29    3,000,000  inhabitants,  to  receive  the exemption, a person
30    shall submit an application by February 15, 1995 to the Chief
31    County Assessment Officer of the county in which the property
32    is  located.   In   counties   having   3,000,000   or   more
33    inhabitants, for taxable year 1994 and all subsequent taxable
34    years,  to  receive  the  exemption,  a  person may submit an
 
                            -6-      LRB093 02647 SJM 02657 b
 1    application to the Chief County  Assessment  Officer  of  the
 2    county in which the property is located during such period as
 3    may be specified by the Chief County Assessment Officer.  The
 4    Chief  County  Assessment Officer in counties of 3,000,000 or
 5    more  inhabitants  shall  annually   give   notice   of   the
 6    application  period  by  mail or by publication.  In counties
 7    having  less  than  3,000,000  inhabitants,  beginning   with
 8    taxable year 1995 and thereafter, to receive the exemption, a
 9    person  shall submit an application by July 1 of each taxable
10    year to the Chief County Assessment Officer of the county  in
11    which  the  property is located.  A county may, by ordinance,
12    establish a date  for  submission  of  applications  that  is
13    different  than  July  1. The applicant shall submit with the
14    application an affidavit of the applicant's  total  household
15    income,  age,  marital  status  (and  if married the name and
16    address of the applicant's spouse, if known),  and  principal
17    dwelling  place  of  members of the household on January 1 of
18    the taxable year. The Department shall establish, by rule,  a
19    method  for  verifying  the  accuracy  of affidavits filed by
20    applicants under this  Section.  The  applications  shall  be
21    clearly  marked  as  applications  for  the  Senior  Citizens
22    Assessment Freeze Homestead Exemption.
23        Notwithstanding  any  other provision to the contrary, in
24    counties having  fewer  than  3,000,000  inhabitants,  if  an
25    applicant  fails  to  file  the  application required by this
26    Section in a timely manner and this failure to file is due to
27    a mental or physical condition sufficiently severe so  as  to
28    render the applicant incapable of filing the application in a
29    timely manner, the Chief County Assessment Officer may extend
30    the  filing  deadline  for  a  period  of  30  days after the
31    applicant regains the capability to file the application, but
32    in no case may the  filing  deadline  be  extended  beyond  3
33    months  of the original filing deadline.  In order to receive
34    the extension provided in this paragraph, the applicant shall
 
                            -7-      LRB093 02647 SJM 02657 b
 1    provide the Chief County Assessment  Officer  with  a  signed
 2    statement  from  the applicant's physician stating the nature
 3    and  extent  of  the  condition,  that,  in  the  physician's
 4    opinion, the condition was so severe  that  it  rendered  the
 5    applicant  incapable  of  filing  the application in a timely
 6    manner, and the date on  which  the  applicant  regained  the
 7    capability to file the application.
 8        Beginning  January  1,  1998,  notwithstanding  any other
 9    provision to the contrary,  in  counties  having  fewer  than
10    3,000,000  inhabitants,  if  an  applicant  fails to file the
11    application required by this Section in a timely  manner  and
12    this failure to file is due to a mental or physical condition
13    sufficiently  severe  so as to render the applicant incapable
14    of filing the application  in  a  timely  manner,  the  Chief
15    County  Assessment Officer may extend the filing deadline for
16    a period of 3 months.  In  order  to  receive  the  extension
17    provided  in  this paragraph, the applicant shall provide the
18    Chief County Assessment Officer with a signed statement  from
19    the  applicant's  physician  stating the nature and extent of
20    the condition, and that,  in  the  physician's  opinion,  the
21    condition  was  so  severe  that  it  rendered  the applicant
22    incapable of filing the application in a timely manner.
23        In counties having less than 3,000,000 inhabitants, if an
24    applicant was denied an exemption in taxable  year  1994  and
25    the  denial  occurred  due  to  an  error  on  the part of an
26    assessment official, or his or her agent  or  employee,  then
27    beginning in taxable year 1997 the applicant's base year, for
28    purposes of determining the amount of the exemption, shall be
29    1993 rather than 1994. In addition, in taxable year 1997, the
30    applicant's  exemption  shall also include an amount equal to
31    (i) the amount of any exemption denied to  the  applicant  in
32    taxable  year  1995  as  a  result of using 1994, rather than
33    1993, as the base year, (ii)  the  amount  of  any  exemption
34    denied  to  the applicant in taxable year 1996 as a result of
 
                            -8-      LRB093 02647 SJM 02657 b
 1    using 1994, rather than 1993, as the base year, and (iii) the
 2    amount of the exemption erroneously denied for  taxable  year
 3    1994.
 4        For  purposes  of  this  Section, a person who will be 65
 5    years of  age  during  the  current  taxable  year  shall  be
 6    eligible  to  apply  for  the homestead exemption during that
 7    taxable  year.   Application  shall  be   made   during   the
 8    application  period  in  effect  for the county of his or her
 9    residence.
10        The Chief County Assessment  Officer  may  determine  the
11    eligibility  of  a  life  care  facility  that qualifies as a
12    cooperative to receive the benefits provided by this  Section
13    by  use  of  an  affidavit,  application,  visual inspection,
14    questionnaire, or other reasonable method in order to  insure
15    that  the  tax  savings  resulting  from  the  exemption  are
16    credited  by  the  management  firm  to  the  apportioned tax
17    liability of each  qualifying  resident.   The  Chief  County
18    Assessment  Officer  may  request  reasonable  proof that the
19    management firm has so credited that exemption.
20        Except as  provided  in  this  Section,  all  information
21    received  by  the  chief  county  assessment  officer  or the
22    Department from applications filed  under  this  Section,  or
23    from any investigation conducted under the provisions of this
24    Section,  shall be confidential, except for official purposes
25    or pursuant to official  procedures  for  collection  of  any
26    State  or  local  tax or enforcement of any civil or criminal
27    penalty or sanction imposed by this Act or by any statute  or
28    ordinance  imposing  a  State  or  local  tax. Any person who
29    divulges any  such  information  in  any  manner,  except  in
30    accordance with a proper judicial order, is guilty of a Class
31    A misdemeanor.
32        Nothing  contained  in  this  Section  shall  prevent the
33    Director or chief county assessment officer  from  publishing
34    or  making  available  reasonable  statistics  concerning the
 
                            -9-      LRB093 02647 SJM 02657 b
 1    operation of the exemption contained in this Section in which
 2    the contents of claims are grouped into aggregates in such  a
 3    way  that information contained in any individual claim shall
 4    not be disclosed.
 5        (d)  Each Chief County Assessment Officer shall  annually
 6    publish  a  notice  of availability of the exemption provided
 7    under this Section.  The notice shall be published  at  least
 8    60  days  but no more than 75 days prior to the date on which
 9    the  application  must  be  submitted  to  the  Chief  County
10    Assessment Officer of the county in  which  the  property  is
11    located.   The  notice shall appear in a newspaper of general
12    circulation in the county.
13        (e)  Notwithstanding  Sections  6  and  8  of  the  State
14    Mandates Act, no reimbursement by the State is  required  for
15    the implementation of any mandate created by this Section.
16    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
17    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
18    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
19    eff. 6-30-99; 91-819, eff. 6-13-00.)

20        Section 90.  The State Mandates Act is amended by  adding
21    Section 8.27 as follows:

22        (30 ILCS 805/8.27 new)
23        Sec.  8.27.   Exempt mandate.  Notwithstanding Sections 6
24    and 8 of this Act, no reimbursement by the State is  required
25    for  the  implementation  of  any  mandate created by Section
26    15-172 of the Property Tax Code.

27        Section 99.  Effective date.  This Act takes effect  upon
28    becoming law.