97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3461

 

Introduced 2/24/2011, by Rep. JoAnn D. Osmond

 

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, if an equalization factor of less than 1 is applied to the property for any taxable year, then the base amount shall be adjusted according to that equalization factor. Effective immediately.


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FISCAL 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 changing
5Section 15-172 as follows:
 
6    (35 ILCS 200/15-172)
7    Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9    (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year. Beginning in taxable year
182012, if an equalization factor of less than 1 is applied to
19the property for any taxable year, then, for purposes of
20calculating the exemption under this Section for that taxable
21year, the base amount shall be the sum of the base year
22equalized assessed value of the residence and the first year's
23equalized assessed value of any added improvements that

 

 

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

 

 

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

 

 

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1preceding the taxable year.
2    "Life care facility that qualifies as a cooperative" means
3a facility as defined in Section 2 of the Life Care Facilities
4Act.
5    "Maximum income limitation" means:
6        (1) $35,000 prior to taxable year 1999;
7        (2) $40,000 in taxable years 1999 through 2003;
8        (3) $45,000 in taxable years 2004 through 2005;
9        (4) $50,000 in taxable years 2006 and 2007; and
10        (5) $55,000 in taxable year 2008 and thereafter.
11    "Residence" means the principal dwelling place and
12appurtenant structures used for residential purposes in this
13State occupied on January 1 of the taxable year by a household
14and so much of the surrounding land, constituting the parcel
15upon which the dwelling place is situated, as is used for
16residential purposes. If the Chief County Assessment Officer
17has established a specific legal description for a portion of
18property constituting the residence, then that portion of
19property shall be deemed the residence for the purposes of this
20Section.
21    "Taxable year" means the calendar year during which ad
22valorem property taxes payable in the next succeeding year are
23levied.
24    (c) Beginning in taxable year 1994, a senior citizens
25assessment freeze homestead exemption is granted for real
26property that is improved with a permanent structure that is

 

 

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

 

 

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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
25for a prior year for the same residence for which an exemption
26under this Section has been granted, the base year and base

 

 

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

 

 

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1exemption is guilty of a Class B misdemeanor.
2    When a homestead exemption has been granted under this
3Section and an applicant then becomes a resident of a facility
4licensed under the Assisted Living and Shared Housing Act, the
5Nursing Home Care Act, or the MR/DD Community Care Act, the
6exemption shall be granted in subsequent years so long as the
7residence (i) continues to be occupied by the qualified
8applicant's spouse or (ii) if remaining unoccupied, is still
9owned by the qualified applicant for the homestead exemption.
10    Beginning January 1, 1997, when an individual dies who
11would have qualified for an exemption under this Section, and
12the surviving spouse does not independently qualify for this
13exemption because of age, the exemption under this Section
14shall be granted to the surviving spouse for the taxable year
15preceding and the taxable year of the death, provided that,
16except for age, the surviving spouse meets all other
17qualifications for the granting of this exemption for those
18years.
19    When married persons maintain separate residences, the
20exemption provided for in this Section may be claimed by only
21one of such persons and for only one residence.
22    For taxable year 1994 only, in counties having less than
233,000,000 inhabitants, to receive the exemption, a person shall
24submit an application by February 15, 1995 to the Chief County
25Assessment Officer of the county in which the property is
26located. In counties having 3,000,000 or more inhabitants, for

 

 

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

 

 

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1fraudulent application under this Act is perjury, as defined in
2Section 32-2 of the Criminal Code of 1961. The applications
3shall be clearly marked as applications for the Senior Citizens
4Assessment Freeze Homestead Exemption and must contain a notice
5that any taxpayer who receives the exemption is subject to an
6audit by the Chief County Assessment Officer.
7    Notwithstanding any other provision to the contrary, in
8counties having fewer than 3,000,000 inhabitants, if an
9applicant fails to file the application required by this
10Section in a timely manner and this failure to file is due to a
11mental or physical condition sufficiently severe so as to
12render the applicant incapable of filing the application in a
13timely manner, the Chief County Assessment Officer may extend
14the filing deadline for a period of 30 days after the applicant
15regains the capability to file the application, but in no case
16may the filing deadline be extended beyond 3 months of the
17original filing deadline. In order to receive the extension
18provided in this paragraph, the applicant shall provide the
19Chief County Assessment Officer with a signed statement from
20the applicant's physician stating the nature and extent of the
21condition, that, in the physician's opinion, the condition was
22so severe that it rendered the applicant incapable of filing
23the application in a timely manner, and the date on which the
24applicant regained the capability to file the application.
25    Beginning January 1, 1998, notwithstanding any other
26provision to the contrary, in counties having fewer than

 

 

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13,000,000 inhabitants, if an applicant fails to file the
2application required by this Section in a timely manner and
3this failure to file is due to a mental or physical condition
4sufficiently severe so as to render the applicant incapable of
5filing the application in a timely manner, the Chief County
6Assessment Officer may extend the filing deadline for a period
7of 3 months. In order to receive the extension provided in this
8paragraph, the applicant shall provide the Chief County
9Assessment Officer with a signed statement from the applicant's
10physician stating the nature and extent of the condition, and
11that, in the physician's opinion, the condition was so severe
12that it rendered the applicant incapable of filing the
13application in a timely manner.
14    In counties having less than 3,000,000 inhabitants, if an
15applicant was denied an exemption in taxable year 1994 and the
16denial occurred due to an error on the part of an assessment
17official, or his or her agent or employee, then beginning in
18taxable year 1997 the applicant's base year, for purposes of
19determining the amount of the exemption, shall be 1993 rather
20than 1994. In addition, in taxable year 1997, the applicant's
21exemption shall also include an amount equal to (i) the amount
22of any exemption denied to the applicant in taxable year 1995
23as a result of using 1994, rather than 1993, as the base year,
24(ii) the amount of any exemption denied to the applicant in
25taxable year 1996 as a result of using 1994, rather than 1993,
26as the base year, and (iii) the amount of the exemption

 

 

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1erroneously denied for taxable year 1994.
2    For purposes of this Section, a person who will be 65 years
3of age during the current taxable year shall be eligible to
4apply for the homestead exemption during that taxable year.
5Application shall be made during the application period in
6effect for the county of his or her residence.
7    The Chief County Assessment Officer may determine the
8eligibility of a life care facility that qualifies as a
9cooperative to receive the benefits provided by this Section by
10use of an affidavit, application, visual inspection,
11questionnaire, or other reasonable method in order to insure
12that the tax savings resulting from the exemption are credited
13by the management firm to the apportioned tax liability of each
14qualifying resident. The Chief County Assessment Officer may
15request reasonable proof that the management firm has so
16credited that exemption.
17    Except as provided in this Section, all information
18received by the chief county assessment officer or the
19Department from applications filed under this Section, or from
20any investigation conducted under the provisions of this
21Section, shall be confidential, except for official purposes or
22pursuant to official procedures for collection of any State or
23local tax or enforcement of any civil or criminal penalty or
24sanction imposed by this Act or by any statute or ordinance
25imposing a State or local tax. Any person who divulges any such
26information in any manner, except in accordance with a proper

 

 

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1judicial order, is guilty of a Class A misdemeanor.
2    Nothing contained in this Section shall prevent the
3Director or chief county assessment officer from publishing or
4making available reasonable statistics concerning the
5operation of the exemption contained in this Section in which
6the contents of claims are grouped into aggregates in such a
7way that information contained in any individual claim shall
8not be disclosed.
9    (d) Each Chief County Assessment Officer shall annually
10publish a notice of availability of the exemption provided
11under this Section. The notice shall be published at least 60
12days but no more than 75 days prior to the date on which the
13application must be submitted to the Chief County Assessment
14Officer of the county in which the property is located. The
15notice shall appear in a newspaper of general circulation in
16the county.
17    Notwithstanding Sections 6 and 8 of the State Mandates Act,
18no reimbursement by the State is required for the
19implementation of any mandate created by this Section.
20(Source: P.A. 95-644, eff. 10-12-07; 96-339, eff. 7-1-10;
2196-355, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.