94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3859

 

Introduced 2/25/2005, by Rep. James H. Meyer - Dave Winters - Randall M. Hultgren - Rosemary Mulligan - Sandra M. Pihos, et al.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172
30 ILCS 805/8.29 new

    Amends the Senior Citizens Assessment Freeze Homestead Exemption provisions in the Property Tax Code. Increases the ceiling for household income eligibility (i) for taxable year 2006, from $45,000 per year to $50,000 per year and (ii) for taxable years after 2006, the amount must be increased in an amount equal to the annual rate of increase of the Consumer Price Index for the previous calendar year. Amends the Senior Citizens Assessment Freeze Homestead Exemption provisions and the State Mandates Act to require implementation without reimbursement from the State. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 value
15 of the residence plus the first year's equalized assessed value
16 of any added improvements which increased the assessed value of
17 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 equalized
30 assessed value of the residence is less than the equalized
31 assessed value in the existing base year (provided that such
32 equalized assessed value is not based on an assessed value that

 

 

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1 results from a temporary irregularity in the property that
2 reduces the assessed value for one or more taxable years), then
3 that subsequent taxable year shall become the base year until a
4 new base year is established under the terms of this paragraph.
5 For taxable year 1999 only, the Chief County Assessment Officer
6 shall review (i) all taxable years for which the applicant
7 applied and qualified for the exemption and (ii) the existing
8 base year. The assessment officer shall select as the new base
9 year the year with the lowest equalized assessed value. An
10 equalized assessed value that is based on an assessed value
11 that results from a temporary irregularity in the property that
12 reduces the assessed value for one or more taxable years shall
13 not be considered the lowest equalized assessed value. The
14 selected year shall be the base year for taxable year 1999 and
15 thereafter until a new base year is established under the terms
16 of this paragraph.
17     "Chief County Assessment Officer" means the County
18 Assessor or Supervisor of Assessments of the county in which
19 the property is located.
20     "Equalized assessed value" means the assessed value as
21 equalized by the Illinois Department of Revenue.
22     "Household" means the applicant, the spouse of the
23 applicant, and all persons using the residence of the applicant
24 as their principal place of residence.
25     "Household income" means the combined income of the members
26 of a household for the calendar year preceding the taxable
27 year.
28     "Income" has the same meaning as provided in Section 3.07
29 of the Senior Citizens and Disabled Persons Property Tax Relief
30 and Pharmaceutical Assistance Act, except that, beginning in
31 assessment year 2001, "income" does not include veteran's
32 benefits.
33     "Internal Revenue Code of 1986" means the United States
34 Internal Revenue Code of 1986 or any successor law or laws
35 relating to federal income taxes in effect for the year
36 preceding the taxable year.

 

 

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1     "Life care facility that qualifies as a cooperative" means
2 a facility as defined in Section 2 of the Life Care Facilities
3 Act.
4     "Residence" means the principal dwelling place and
5 appurtenant structures used for residential purposes in this
6 State occupied on January 1 of the taxable year by a household
7 and so much of the surrounding land, constituting the parcel
8 upon which the dwelling place is situated, as is used for
9 residential purposes. If the Chief County Assessment Officer
10 has established a specific legal description for a portion of
11 property constituting the residence, then that portion of
12 property shall be deemed the residence for the purposes of this
13 Section.
14     "Taxable year" means the calendar year during which ad
15 valorem property taxes payable in the next succeeding year are
16 levied.
17     (c) Beginning in taxable year 1994, a senior citizens
18 assessment freeze homestead exemption is granted for real
19 property that is improved with a permanent structure that is
20 occupied as a residence by an applicant who (i) is 65 years of
21 age or older during the taxable year, (ii) has a household
22 income of $35,000 or less prior to taxable year 1999, $40,000
23 or less in taxable years 1999 through 2003, and $45,000 or less
24 in taxable years year 2004 through 2005, $50,000 or less in
25 taxable year 2006, and, in taxable year 2007 and thereafter,
26 the amount must be increased in an amount equal to the annual
27 rate of increase of the Consumer Price Index for All Urban
28 Consumers for all items published by the United States
29 Department of Labor Bureau of Labor Statistics for the previous
30 calendar year and thereafter, (iii) is liable for paying real
31 property taxes on the property, and (iv) is an owner of record
32 of the property or has a legal or equitable interest in the
33 property as evidenced by a written instrument. This homestead
34 exemption shall also apply to a leasehold interest in a parcel
35 of property improved with a permanent structure that is a
36 single family residence that is occupied as a residence by a

 

 

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1 person who (i) is 65 years of age or older during the taxable
2 year, (ii) has a household income of $35,000 or less prior to
3 taxable year 1999, $40,000 or less in taxable years 1999
4 through 2003, and $45,000 or less in taxable years year 2004
5 through 2005, $50,000 or less in taxable year 2006, and, in
6 taxable year 2007 and thereafter, the amount must be increased
7 in an amount equal to the annual rate of increase of the
8 Consumer Price Index for All Urban Consumers for all items
9 published by the United States Department of Labor Bureau of
10 Labor Statistics for the previous calendar year and thereafter,
11 (iii) has a legal or equitable ownership interest in the
12 property as lessee, and (iv) is liable for the payment of real
13 property taxes on that property.
14      The amount of this exemption shall be the equalized
15 assessed value of the residence in the taxable year for which
16 application is made minus the base amount.
17     When the applicant is a surviving spouse of an applicant
18 for a prior year for the same residence for which an exemption
19 under this Section has been granted, the base year and base
20 amount for that residence are the same as for the applicant for
21 the prior year.
22     Each year at the time the assessment books are certified to
23 the County Clerk, the Board of Review or Board of Appeals shall
24 give to the County Clerk a list of the assessed values of
25 improvements on each parcel qualifying for this exemption that
26 were added after the base year for this parcel and that
27 increased the assessed value of the property.
28     In the case of land improved with an apartment building
29 owned and operated as a cooperative or a building that is a
30 life care facility that qualifies as a cooperative, the maximum
31 reduction from the equalized assessed value of the property is
32 limited to the sum of the reductions calculated for each unit
33 occupied as a residence by a person or persons (i) 65 years of
34 age or older, (ii) with a household income of $35,000 or less
35 prior to taxable year 1999, $40,000 or less in taxable years
36 1999 through 2003, and $45,000 or less in taxable years year

 

 

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1 2004 through 2005, $50,000 or less in taxable year 2006, and,
2 in taxable year 2007 and thereafter, the amount must be
3 increased in an amount equal to the annual rate of increase of
4 the Consumer Price Index for All Urban Consumers for all items
5 published by the United States Department of Labor Bureau of
6 Labor Statistics for the previous calendar year and thereafter,
7 (iii) who is liable, by contract with the owner or owners of
8 record, for paying real property taxes on the property, and
9 (iv) who is an owner of record of a legal or equitable interest
10 in the cooperative apartment building, other than a leasehold
11 interest. In the instance of a cooperative where a homestead
12 exemption has been granted under this Section, the cooperative
13 association or its management firm shall credit the savings
14 resulting from that exemption only to the apportioned tax
15 liability of the owner who qualified for the exemption. Any
16 person who willfully refuses to credit that savings to an owner
17 who qualifies for the exemption is guilty of a Class B
18 misdemeanor.
19     When a homestead exemption has been granted under this
20 Section and an applicant then becomes a resident of a facility
21 licensed under the Nursing Home Care Act, the exemption shall
22 be granted in subsequent years so long as the residence (i)
23 continues to be occupied by the qualified applicant's spouse or
24 (ii) if remaining unoccupied, is still owned by the qualified
25 applicant for the homestead exemption.
26     Beginning January 1, 1997, when an individual dies who
27 would have qualified for an exemption under this Section, and
28 the surviving spouse does not independently qualify for this
29 exemption because of age, the exemption under this Section
30 shall be granted to the surviving spouse for the taxable year
31 preceding and the taxable year of the death, provided that,
32 except for age, the surviving spouse meets all other
33 qualifications for the granting of this exemption for those
34 years.
35     When married persons maintain separate residences, the
36 exemption provided for in this Section may be claimed by only

 

 

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1 one of such persons and for only one residence.
2     For taxable year 1994 only, in counties having less than
3 3,000,000 inhabitants, to receive the exemption, a person shall
4 submit an application by February 15, 1995 to the Chief County
5 Assessment Officer of the county in which the property is
6 located. In counties having 3,000,000 or more inhabitants, for
7 taxable year 1994 and all subsequent taxable years, to receive
8 the exemption, a person may submit an application to the Chief
9 County Assessment Officer of the county in which the property
10 is located during such period as may be specified by the Chief
11 County Assessment Officer. The Chief County Assessment Officer
12 in counties of 3,000,000 or more inhabitants shall annually
13 give notice of the application period by mail or by
14 publication. In counties having less than 3,000,000
15 inhabitants, beginning with taxable year 1995 and thereafter,
16 to receive the exemption, a person shall submit an application
17 by July 1 of each taxable year to the Chief County Assessment
18 Officer of the county in which the property is located. A
19 county may, by ordinance, establish a date for submission of
20 applications that is different than July 1. The applicant shall
21 submit with the application an affidavit of the applicant's
22 total household income, age, marital status (and if married the
23 name and address of the applicant's spouse, if known), and
24 principal dwelling place of members of the household on January
25 1 of the taxable year. The Department shall establish, by rule,
26 a method for verifying the accuracy of affidavits filed by
27 applicants under this Section. The applications shall be
28 clearly marked as applications for the Senior Citizens
29 Assessment Freeze Homestead Exemption.
30     Notwithstanding any other provision to the contrary, in
31 counties having fewer than 3,000,000 inhabitants, if an
32 applicant fails to file the application required by this
33 Section in a timely manner and this failure to file is due to a
34 mental or physical condition sufficiently severe so as to
35 render the applicant incapable of filing the application in a
36 timely manner, the Chief County Assessment Officer may extend

 

 

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1 the filing deadline for a period of 30 days after the applicant
2 regains the capability to file the application, but in no case
3 may the filing deadline be extended beyond 3 months of the
4 original filing deadline. In order to receive the extension
5 provided in this paragraph, the applicant shall provide the
6 Chief County Assessment Officer with a signed statement from
7 the applicant's physician stating the nature and extent of the
8 condition, that, in the physician's opinion, the condition was
9 so severe that it rendered the applicant incapable of filing
10 the application in a timely manner, and the date on which the
11 applicant regained the capability to file the application.
12     Beginning January 1, 1998, notwithstanding any other
13 provision to the contrary, in counties having fewer than
14 3,000,000 inhabitants, if an applicant fails to file the
15 application required by this Section in a timely manner and
16 this failure to file is due to a mental or physical condition
17 sufficiently severe so as to render the applicant incapable of
18 filing the application in a timely manner, the Chief County
19 Assessment Officer may extend the filing deadline for a period
20 of 3 months. In order to receive the extension provided in this
21 paragraph, the applicant shall provide the Chief County
22 Assessment Officer with a signed statement from the applicant's
23 physician stating the nature and extent of the condition, and
24 that, in the physician's opinion, the condition was so severe
25 that it rendered the applicant incapable of filing the
26 application in a timely manner.
27     In counties having less than 3,000,000 inhabitants, if an
28 applicant was denied an exemption in taxable year 1994 and the
29 denial occurred due to an error on the part of an assessment
30 official, or his or her agent or employee, then beginning in
31 taxable year 1997 the applicant's base year, for purposes of
32 determining the amount of the exemption, shall be 1993 rather
33 than 1994. In addition, in taxable year 1997, the applicant's
34 exemption shall also include an amount equal to (i) the amount
35 of any exemption denied to the applicant in taxable year 1995
36 as a result of using 1994, rather than 1993, as the base year,

 

 

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1 (ii) the amount of any exemption denied to the applicant in
2 taxable year 1996 as a result of using 1994, rather than 1993,
3 as the base year, and (iii) the amount of the exemption
4 erroneously denied for taxable year 1994.
5     For purposes of this Section, a person who will be 65 years
6 of age during the current taxable year shall be eligible to
7 apply for the homestead exemption during that taxable year.
8 Application shall be made during the application period in
9 effect for the county of his or her 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 by
13 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 credited
16 by the management firm to the apportioned tax liability of each
17 qualifying resident. The Chief County Assessment Officer may
18 request reasonable proof that the management firm has so
19 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 from
23 any investigation conducted under the provisions of this
24 Section, shall be confidential, except for official purposes or
25 pursuant to official procedures for collection of any State or
26 local tax or enforcement of any civil or criminal penalty or
27 sanction imposed by this Act or by any statute or ordinance
28 imposing a State or local tax. Any person who divulges any such
29 information in any manner, except in accordance with a proper
30 judicial order, is guilty of a Class A misdemeanor.
31     Nothing contained in this Section shall prevent the
32 Director or chief county assessment officer from publishing or
33 making available reasonable statistics concerning the
34 operation of the exemption contained in this Section in which
35 the contents of claims are grouped into aggregates in such a
36 way that information contained in any individual claim shall

 

 

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1 not be disclosed.
2     (d) Each Chief County Assessment Officer shall annually
3 publish a notice of availability of the exemption provided
4 under this Section. The notice shall be published at least 60
5 days but no more than 75 days prior to the date on which the
6 application must be submitted to the Chief County Assessment
7 Officer of the county in which the property is located. The
8 notice shall appear in a newspaper of general circulation in
9 the county.
10     (e) Notwithstanding Sections 6 and 8 of the State Mandates
11 Act, no reimbursement by the State is required for the
12 implementation of any mandate created by this Section.
13 (Source: P.A. 93-715, eff. 7-12-04.)
 
14     Section 90. The State Mandates Act is amended by adding
15 Section 8.29 as follows:
 
16     (30 ILCS 805/8.29 new)
17     Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8
18 of this Act, no reimbursement by the State is required for the
19 implementation of any mandate created by this amendatory Act of
20 the 94th General Assembly.
 
21     Section 99. Effective date. This Act takes effect upon
22 becoming law.