95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0144

 

Introduced 1/19/2007, by Rep. Brent Hassert

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. In a Section concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that, for taxable year 2007 and thereafter, the amount of the exemption is the equalized assessed value of the residence in the taxable year for which application is made minus the base amount (now, the amount of the exemption is based upon the applicant's household income). Provides that, in taxable year 2007 and thereafter, the maximum income limitation must be increased each year by the lesser of (i) 2% or (ii) an amount equal to the annual rate of increase of the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor Bureau of Labor Statistics. Makes technical changes. Effective immediately.


LRB095 03741 BDD 23770 b

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

 

 

A BILL FOR

 

HB0144 LRB095 03741 BDD 23770 b

1     AN ACT concerning revenue.
 
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

 

 

HB0144 - 2 - LRB095 03741 BDD 23770 b

1 (i) an owner of record of the property or had legal or
2 equitable interest in the property as evidenced by a written
3 instrument or (ii) had a legal or equitable interest as a
4 lessee in the parcel of property that was single family
5 residence. If in any subsequent taxable year for which the
6 applicant applies and qualifies for the exemption the equalized
7 assessed value of the residence is less than the equalized
8 assessed value in the existing base year (provided that such
9 equalized assessed value is not based on an assessed value that
10 results from a temporary irregularity in the property that
11 reduces the assessed value for one or more taxable years), then
12 that subsequent taxable year shall become the base year until a
13 new base year is established under the terms of this paragraph.
14 For taxable year 1999 only, the Chief County Assessment Officer
15 shall review (i) all taxable years for which the applicant
16 applied and qualified for the exemption and (ii) the existing
17 base year. The assessment officer shall select as the new base
18 year the year with the lowest equalized assessed value. An
19 equalized assessed value that is based on an assessed value
20 that results from a temporary irregularity in the property that
21 reduces the assessed value for one or more taxable years shall
22 not be considered the lowest equalized assessed value. The
23 selected year shall be the base year for taxable year 1999 and
24 thereafter until a new base year is established under the terms
25 of this paragraph.
26     "Chief County Assessment Officer" means the County

 

 

HB0144 - 3 - LRB095 03741 BDD 23770 b

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

 

 

HB0144 - 4 - LRB095 03741 BDD 23770 b

1         (4) $50,000 in taxable year 2006; and
2         (5) in taxable year 2007 and thereafter, an amount
3     equal to the maximum income limitation for the immediately
4     prior taxable year increased by the lesser of (i) 2% or
5     (ii) the percentage increase during the immediately prior
6     taxable year in the Consumer Price Index for All Urban
7     Consumers for all items published by the United States
8     Department of Labor Bureau of Labor Statistics.
9     "Residence" means the principal dwelling place and
10 appurtenant structures used for residential purposes in this
11 State occupied on January 1 of the taxable year by a household
12 and so much of the surrounding land, constituting the parcel
13 upon which the dwelling place is situated, as is used for
14 residential purposes. If the Chief County Assessment Officer
15 has established a specific legal description for a portion of
16 property constituting the residence, then that portion of
17 property shall be deemed the residence for the purposes of this
18 Section.
19     "Taxable year" means the calendar year during which ad
20 valorem property taxes payable in the next succeeding year are
21 levied.
22     (c) Beginning in taxable year 1994, a senior citizens
23 assessment freeze homestead exemption is granted for real
24 property that is improved with a permanent structure that is
25 occupied as a residence by an applicant who (i) is 65 years of
26 age or older during the taxable year, (ii) has a household

 

 

HB0144 - 5 - LRB095 03741 BDD 23770 b

1 income that does not exceed the maximum income limitation of
2 $35,000 or less prior to taxable year 1999, $40,000 or less in
3 taxable years 1999 through 2003, $45,000 or less in taxable
4 year 2004 and 2005, and $50,000 or less in taxable year 2006
5 and thereafter, (iii) is liable for paying real property taxes
6 on the property, and (iv) is an owner of record of the property
7 or has a legal or equitable interest in the property as
8 evidenced by a written instrument. This homestead exemption
9 shall also apply to a leasehold interest in a parcel of
10 property improved with a permanent structure that is a single
11 family residence that is occupied as a residence by a person
12 who (i) is 65 years of age or older during the taxable year,
13 (ii) has a household income that does not exceed the maximum
14 income limitation of $35,000 or less prior to taxable year
15 1999, $40,000 or less in taxable years 1999 through 2003,
16 $45,000 or less in taxable year 2004 and 2005, and $50,000 or
17 less in taxable year 2006 and thereafter, (iii) has a legal or
18 equitable ownership interest in the property as lessee, and
19 (iv) is liable for the payment of real property taxes on that
20 property.
21     Through taxable year 2005 and for taxable year 2007 and
22 thereafter, the amount of this exemption shall be the equalized
23 assessed value of the residence in the taxable year for which
24 application is made minus the base amount. For taxable year
25 2006 and thereafter, the amount of the exemption is as follows:
26         (1) For an applicant who has a household income of

 

 

HB0144 - 6 - LRB095 03741 BDD 23770 b

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

 

 

HB0144 - 7 - LRB095 03741 BDD 23770 b

1 amount for that residence are the same as for the applicant for
2 the prior year.
3     Each year at the time the assessment books are certified to
4 the County Clerk, the Board of Review or Board of Appeals shall
5 give to the County Clerk a list of the assessed values of
6 improvements on each parcel qualifying for this exemption that
7 were added after the base year for this parcel and that
8 increased the assessed value of the property.
9     In the case of land improved with an apartment building
10 owned and operated as a cooperative or a building that is a
11 life care facility that qualifies as a cooperative, the maximum
12 reduction from the equalized assessed value of the property is
13 limited to the sum of the reductions calculated for each unit
14 occupied as a residence by a person or persons (i) 65 years of
15 age or older, (ii) with a household income that does not exceed
16 the maximum income limitation of $35,000 or less prior to
17 taxable year 1999, $40,000 or less in taxable years 1999
18 through 2003, $45,000 or less in taxable year 2004 and 2005,
19 and $50,000 or less in taxable year 2006 and thereafter, (iii)
20 who is liable, by contract with the owner or owners of record,
21 for paying real property taxes on the property, and (iv) who is
22 an owner of record of a legal or equitable interest in the
23 cooperative apartment building, other than a leasehold
24 interest. In the instance of a cooperative where a homestead
25 exemption has been granted under this Section, the cooperative
26 association or its management firm shall credit the savings

 

 

HB0144 - 8 - LRB095 03741 BDD 23770 b

1 resulting from that exemption only to the apportioned tax
2 liability of the owner who qualified for the exemption. Any
3 person who willfully refuses to credit that savings to an owner
4 who qualifies for the exemption is guilty of a Class B
5 misdemeanor.
6     When a homestead exemption has been granted under this
7 Section and an applicant then becomes a resident of a facility
8 licensed under the Nursing Home Care Act, the exemption shall
9 be granted in subsequent years so long as the residence (i)
10 continues to be occupied by the qualified applicant's spouse or
11 (ii) if remaining unoccupied, is still owned by the qualified
12 applicant for the homestead exemption.
13     Beginning January 1, 1997, when an individual dies who
14 would have qualified for an exemption under this Section, and
15 the surviving spouse does not independently qualify for this
16 exemption because of age, the exemption under this Section
17 shall be granted to the surviving spouse for the taxable year
18 preceding and the taxable year of the death, provided that,
19 except for age, the surviving spouse meets all other
20 qualifications for the granting of this exemption for those
21 years.
22     When married persons maintain separate residences, the
23 exemption provided for in this Section may be claimed by only
24 one of such persons and for only one residence.
25     For taxable year 1994 only, in counties having less than
26 3,000,000 inhabitants, to receive the exemption, a person shall

 

 

HB0144 - 9 - LRB095 03741 BDD 23770 b

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

 

 

HB0144 - 10 - LRB095 03741 BDD 23770 b

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

 

 

HB0144 - 11 - LRB095 03741 BDD 23770 b

1 of 3 months. In order to receive the extension provided in this
2 paragraph, the applicant shall provide the Chief County
3 Assessment Officer with a signed statement from the applicant's
4 physician stating the nature and extent of the condition, and
5 that, in the physician's opinion, the condition was so severe
6 that it rendered the applicant incapable of filing the
7 application in a timely manner.
8     In counties having less than 3,000,000 inhabitants, if an
9 applicant was denied an exemption in taxable year 1994 and the
10 denial occurred due to an error on the part of an assessment
11 official, or his or her agent or employee, then beginning in
12 taxable year 1997 the applicant's base year, for purposes of
13 determining the amount of the exemption, shall be 1993 rather
14 than 1994. In addition, in taxable year 1997, the applicant's
15 exemption shall also include an amount equal to (i) the amount
16 of any exemption denied to the applicant in taxable year 1995
17 as a result of using 1994, rather than 1993, as the base year,
18 (ii) the amount of any exemption denied to the applicant in
19 taxable year 1996 as a result of using 1994, rather than 1993,
20 as the base year, and (iii) the amount of the exemption
21 erroneously denied for taxable year 1994.
22     For purposes of this Section, a person who will be 65 years
23 of age during the current taxable year shall be eligible to
24 apply for the homestead exemption during that taxable year.
25 Application shall be made during the application period in
26 effect for the county of his or her residence.

 

 

HB0144 - 12 - LRB095 03741 BDD 23770 b

1     The Chief County Assessment Officer may determine the
2 eligibility of a life care facility that qualifies as a
3 cooperative to receive the benefits provided by this Section by
4 use of an affidavit, application, visual inspection,
5 questionnaire, or other reasonable method in order to insure
6 that the tax savings resulting from the exemption are credited
7 by the management firm to the apportioned tax liability of each
8 qualifying resident. The Chief County Assessment Officer may
9 request reasonable proof that the management firm has so
10 credited that exemption.
11     Except as provided in this Section, all information
12 received by the chief county assessment officer or the
13 Department from applications filed under this Section, or from
14 any investigation conducted under the provisions of this
15 Section, shall be confidential, except for official purposes or
16 pursuant to official procedures for collection of any State or
17 local tax or enforcement of any civil or criminal penalty or
18 sanction imposed by this Act or by any statute or ordinance
19 imposing a State or local tax. Any person who divulges any such
20 information in any manner, except in accordance with a proper
21 judicial order, is guilty of a Class A misdemeanor.
22     Nothing contained in this Section shall prevent the
23 Director or chief county assessment officer from publishing or
24 making available reasonable statistics concerning the
25 operation of the exemption contained in this Section in which
26 the contents of claims are grouped into aggregates in such a

 

 

HB0144 - 13 - LRB095 03741 BDD 23770 b

1 way that information contained in any individual claim shall
2 not be disclosed.
3     (d) Each Chief County Assessment Officer shall annually
4 publish a notice of availability of the exemption provided
5 under this Section. The notice shall be published at least 60
6 days but no more than 75 days prior to the date on which the
7 application must be submitted to the Chief County Assessment
8 Officer of the county in which the property is located. The
9 notice shall appear in a newspaper of general circulation in
10 the county.
11     Notwithstanding Sections 6 and 8 of the State Mandates Act,
12 no reimbursement by the State is required for the
13 implementation of any mandate created by this Section.
14 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.