95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3609

 

Introduced 2/28/2007, by Rep. Chapin Rose

 

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 the definition of "base amount" does not include the value of any improvement after the base year that is necessary due to destruction of the property by an act of God. Effective immediately.


LRB095 07390 BDD 27532 b

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

 

 

A BILL FOR

 

HB3609 LRB095 07390 BDD 27532 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. The base amount does not
18 include the value of any improvement after the base year that
19 is necessary due to destruction of the property by an act of
20 God. For the purpose of this definition, "act of God" means any
21 incident caused by the operation of an extraordinary force that
22 cannot be foreseen, that cannot be avoided by the exercise of
23 due care, and for which no person can be held liable.

 

 

HB3609 - 2 - LRB095 07390 BDD 27532 b

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

 

 

HB3609 - 3 - LRB095 07390 BDD 27532 b

1 reduces the assessed value for one or more taxable years shall
2 not be considered the lowest equalized assessed value. The
3 selected year shall be the base year for taxable year 1999 and
4 thereafter until a new base year is established under the terms
5 of this paragraph.
6     "Chief County Assessment Officer" means the County
7 Assessor or Supervisor of Assessments of the county in which
8 the property is located.
9     "Equalized assessed value" means the assessed value as
10 equalized by the Illinois Department of Revenue.
11     "Household" means the applicant, the spouse of the
12 applicant, and all persons using the residence of the applicant
13 as their principal place of residence.
14     "Household income" means the combined income of the members
15 of a household for the calendar year preceding the taxable
16 year.
17     "Income" has the same meaning as provided in Section 3.07
18 of the Senior Citizens and Disabled Persons Property Tax Relief
19 and Pharmaceutical Assistance Act, except that, beginning in
20 assessment year 2001, "income" does not include veteran's
21 benefits.
22     "Internal Revenue Code of 1986" means the United States
23 Internal Revenue Code of 1986 or any successor law or laws
24 relating to federal income taxes in effect for the year
25 preceding the taxable year.
26     "Life care facility that qualifies as a cooperative" means

 

 

HB3609 - 4 - LRB095 07390 BDD 27532 b

1 a facility as defined in Section 2 of the Life Care Facilities
2 Act.
3     "Residence" means the principal dwelling place and
4 appurtenant structures used for residential purposes in this
5 State occupied on January 1 of the taxable year by a household
6 and so much of the surrounding land, constituting the parcel
7 upon which the dwelling place is situated, as is used for
8 residential purposes. If the Chief County Assessment Officer
9 has established a specific legal description for a portion of
10 property constituting the residence, then that portion of
11 property shall be deemed the residence for the purposes of this
12 Section.
13     "Taxable year" means the calendar year during which ad
14 valorem property taxes payable in the next succeeding year are
15 levied.
16     (c) Beginning in taxable year 1994, a senior citizens
17 assessment freeze homestead exemption is granted for real
18 property that is improved with a permanent structure that is
19 occupied as a residence by an applicant who (i) is 65 years of
20 age or older during the taxable year, (ii) has a household
21 income of $35,000 or less prior to taxable year 1999, $40,000
22 or less in taxable years 1999 through 2003, $45,000 or less in
23 taxable year 2004 and 2005, and $50,000 or less in taxable year
24 2006 and thereafter, (iii) is liable for paying real property
25 taxes on the property, and (iv) is an owner of record of the
26 property or has a legal or equitable interest in the property

 

 

HB3609 - 5 - LRB095 07390 BDD 27532 b

1 as evidenced by a written instrument. This homestead exemption
2 shall also apply to a leasehold interest in a parcel of
3 property improved with a permanent structure that is a single
4 family residence that is occupied as a residence by a person
5 who (i) is 65 years of age or older during the taxable year,
6 (ii) has a household income of $35,000 or less prior to taxable
7 year 1999, $40,000 or less in taxable years 1999 through 2003,
8 $45,000 or less in taxable year 2004 and 2005, and $50,000 or
9 less in taxable year 2006 and thereafter, (iii) has a legal or
10 equitable ownership interest in the property as lessee, and
11 (iv) is liable for the payment of real property taxes on that
12 property.
13     Through taxable year 2005, the amount of this exemption
14 shall be the equalized assessed value of the residence in the
15 taxable year for which application is made minus the base
16 amount. For taxable year 2006 and thereafter, the amount of the
17 exemption is as follows:
18         (1) For an applicant who has a household income of
19     $45,000 or less, the amount of the exemption is the
20     equalized assessed value of the residence in the taxable
21     year for which application is made minus the base amount.
22         (2) For an applicant who has a household income
23     exceeding $45,000 but not exceeding $46,250, the amount of
24     the exemption is (i) the equalized assessed value of the
25     residence in the taxable year for which application is made
26     minus the base amount (ii) multiplied by 0.8.

 

 

HB3609 - 6 - LRB095 07390 BDD 27532 b

1         (3) For an applicant who has a household income
2     exceeding $46,250 but not exceeding $47,500, the amount of
3     the exemption is (i) the equalized assessed value of the
4     residence in the taxable year for which application is made
5     minus the base amount (ii) multiplied by 0.6.
6         (4) For an applicant who has a household income
7     exceeding $47,500 but not exceeding $48,750, the amount of
8     the exemption is (i) the equalized assessed value of the
9     residence in the taxable year for which application is made
10     minus the base amount (ii) multiplied by 0.4.
11         (5) For an applicant who has a household income
12     exceeding $48,750 but not exceeding $50,000, the amount of
13     the exemption is (i) the equalized assessed value of the
14     residence in the taxable year for which application is made
15     minus the base amount (ii) multiplied by 0.2.
16     When the applicant is a surviving spouse of an applicant
17 for a prior year for the same residence for which an exemption
18 under this Section has been granted, the base year and base
19 amount for that residence are the same as for the applicant for
20 the prior year.
21     Each year at the time the assessment books are certified to
22 the County Clerk, the Board of Review or Board of Appeals shall
23 give to the County Clerk a list of the assessed values of
24 improvements on each parcel qualifying for this exemption that
25 were added after the base year for this parcel and that
26 increased the assessed value of the property.

 

 

HB3609 - 7 - LRB095 07390 BDD 27532 b

1     In the case of land improved with an apartment building
2 owned and operated as a cooperative or a building that is a
3 life care facility that qualifies as a cooperative, the maximum
4 reduction from the equalized assessed value of the property is
5 limited to the sum of the reductions calculated for each unit
6 occupied as a residence by a person or persons (i) 65 years of
7 age or older, (ii) with a household income of $35,000 or less
8 prior to taxable year 1999, $40,000 or less in taxable years
9 1999 through 2003, $45,000 or less in taxable year 2004 and
10 2005, and $50,000 or less in taxable year 2006 and thereafter,
11 (iii) who is liable, by contract with the owner or owners of
12 record, for paying real property taxes on the property, and
13 (iv) who is an owner of record of a legal or equitable interest
14 in the cooperative apartment building, other than a leasehold
15 interest. In the instance of a cooperative where a homestead
16 exemption has been granted under this Section, the cooperative
17 association or its management firm shall credit the savings
18 resulting from that exemption only to the apportioned tax
19 liability of the owner who qualified for the exemption. Any
20 person who willfully refuses to credit that savings to an owner
21 who qualifies for the exemption is guilty of a Class B
22 misdemeanor.
23     When a homestead exemption has been granted under this
24 Section and an applicant then becomes a resident of a facility
25 licensed under the Nursing Home Care Act, the exemption shall
26 be granted in subsequent years so long as the residence (i)

 

 

HB3609 - 8 - LRB095 07390 BDD 27532 b

1 continues to be occupied by the qualified applicant's spouse or
2 (ii) if remaining unoccupied, is still owned by the qualified
3 applicant for the homestead exemption.
4     Beginning January 1, 1997, when an individual dies who
5 would have qualified for an exemption under this Section, and
6 the surviving spouse does not independently qualify for this
7 exemption because of age, the exemption under this Section
8 shall be granted to the surviving spouse for the taxable year
9 preceding and the taxable year of the death, provided that,
10 except for age, the surviving spouse meets all other
11 qualifications for the granting of this exemption for those
12 years.
13     When married persons maintain separate residences, the
14 exemption provided for in this Section may be claimed by only
15 one of such persons and for only one residence.
16     For taxable year 1994 only, in counties having less than
17 3,000,000 inhabitants, to receive the exemption, a person shall
18 submit an application by February 15, 1995 to the Chief County
19 Assessment Officer of the county in which the property is
20 located. In counties having 3,000,000 or more inhabitants, for
21 taxable year 1994 and all subsequent taxable years, to receive
22 the exemption, a person may submit an application to the Chief
23 County Assessment Officer of the county in which the property
24 is located during such period as may be specified by the Chief
25 County Assessment Officer. The Chief County Assessment Officer
26 in counties of 3,000,000 or more inhabitants shall annually

 

 

HB3609 - 9 - LRB095 07390 BDD 27532 b

1 give notice of the application period by mail or by
2 publication. In counties having less than 3,000,000
3 inhabitants, beginning with taxable year 1995 and thereafter,
4 to receive the exemption, a person shall submit an application
5 by July 1 of each taxable year to the Chief County Assessment
6 Officer of the county in which the property is located. A
7 county may, by ordinance, establish a date for submission of
8 applications that is different than July 1. The applicant shall
9 submit with the application an affidavit of the applicant's
10 total household income, age, marital status (and if married the
11 name and address of the applicant's spouse, if known), and
12 principal dwelling place of members of the household on January
13 1 of the taxable year. The Department shall establish, by rule,
14 a method for verifying the accuracy of affidavits filed by
15 applicants under this Section. The applications shall be
16 clearly marked as applications for the Senior Citizens
17 Assessment Freeze Homestead Exemption.
18     Notwithstanding any other provision to the contrary, in
19 counties having fewer than 3,000,000 inhabitants, if an
20 applicant fails to file the application required by this
21 Section in a timely manner and this failure to file is due to a
22 mental or physical condition sufficiently severe so as to
23 render the applicant incapable of filing the application in a
24 timely manner, the Chief County Assessment Officer may extend
25 the filing deadline for a period of 30 days after the applicant
26 regains the capability to file the application, but in no case

 

 

HB3609 - 10 - LRB095 07390 BDD 27532 b

1 may the filing deadline be extended beyond 3 months of the
2 original filing deadline. In order to receive the extension
3 provided in this paragraph, the applicant shall provide the
4 Chief County Assessment Officer with a signed statement from
5 the applicant's physician stating the nature and extent of the
6 condition, that, in the physician's opinion, the condition was
7 so severe that it rendered the applicant incapable of filing
8 the application in a timely manner, and the date on which the
9 applicant regained the capability to file the application.
10     Beginning January 1, 1998, notwithstanding any other
11 provision to the contrary, in counties having fewer than
12 3,000,000 inhabitants, if an applicant fails to file the
13 application required by this Section in a timely manner and
14 this failure to file is due to a mental or physical condition
15 sufficiently severe so as to render the applicant incapable of
16 filing the application in a timely manner, the Chief County
17 Assessment Officer may extend the filing deadline for a period
18 of 3 months. In order to receive the extension provided in this
19 paragraph, the applicant shall provide the Chief County
20 Assessment Officer with a signed statement from the applicant's
21 physician stating the nature and extent of the condition, and
22 that, in the physician's opinion, the condition was so severe
23 that it rendered the applicant incapable of filing the
24 application in a timely manner.
25     In counties having less than 3,000,000 inhabitants, if an
26 applicant was denied an exemption in taxable year 1994 and the

 

 

HB3609 - 11 - LRB095 07390 BDD 27532 b

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

 

 

HB3609 - 12 - LRB095 07390 BDD 27532 b

1 credited that exemption.
2     Except as provided in this Section, all information
3 received by the chief county assessment officer or the
4 Department from applications filed under this Section, or from
5 any investigation conducted under the provisions of this
6 Section, shall be confidential, except for official purposes or
7 pursuant to official procedures for collection of any State or
8 local tax or enforcement of any civil or criminal penalty or
9 sanction imposed by this Act or by any statute or ordinance
10 imposing a State or local tax. Any person who divulges any such
11 information in any manner, except in accordance with a proper
12 judicial order, is guilty of a Class A misdemeanor.
13     Nothing contained in this Section shall prevent the
14 Director or chief county assessment officer from publishing or
15 making available reasonable statistics concerning the
16 operation of the exemption contained in this Section in which
17 the contents of claims are grouped into aggregates in such a
18 way that information contained in any individual claim shall
19 not be disclosed.
20     (d) Each Chief County Assessment Officer shall annually
21 publish a notice of availability of the exemption provided
22 under this Section. The notice shall be published at least 60
23 days but no more than 75 days prior to the date on which the
24 application must be submitted to the Chief County Assessment
25 Officer of the county in which the property is located. The
26 notice shall appear in a newspaper of general circulation in

 

 

HB3609 - 13 - LRB095 07390 BDD 27532 b

1 the county.
2     Notwithstanding Sections 6 and 8 of the State Mandates Act,
3 no reimbursement by the State is required for the
4 implementation of any mandate created by this Section.
5 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.