97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5136

 

Introduced 2/8/2012, by Rep. Chad Hays

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-170
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that, if a person turns 70 years of age or older during the taxable year and he or she qualified for a Senior Citizens Assessment Freeze Homestead Exemption or a Senior Citizens Homestead Exemption in the previous taxable year, then the person qualifying need not reapply for the exemption. Effective immediately.


LRB097 17667 HLH 62878 b

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

 

 

A BILL FOR

 

HB5136LRB097 17667 HLH 62878 b

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
5Sections 15-170 and 15-172 as follows:
 
6    (35 ILCS 200/15-170)
7    Sec. 15-170. Senior Citizens Homestead Exemption. An
8annual homestead exemption limited, except as described here
9with relation to cooperatives or life care facilities, to a
10maximum reduction set forth below from the property's value, as
11equalized or assessed by the Department, is granted for
12property that is occupied as a residence by a person 65 years
13of age or older who is liable for paying real estate taxes on
14the property and is an owner of record of the property or has a
15legal or equitable interest therein as evidenced by a written
16instrument, except for a leasehold interest, other than a
17leasehold interest of land on which a single family residence
18is located, which is occupied as a residence by a person 65
19years or older who has an ownership interest therein, legal,
20equitable or as a lessee, and on which he or she is liable for
21the payment of property taxes. Before taxable year 2004, the
22maximum reduction shall be $2,500 in counties with 3,000,000 or
23more inhabitants and $2,000 in all other counties. For taxable

 

 

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1years 2004 through 2005, the maximum reduction shall be $3,000
2in all counties. For taxable years 2006 and 2007, the maximum
3reduction shall be $3,500 and, for taxable years 2008 and
4thereafter, the maximum reduction is $4,000 in all counties.
5    For land improved with an apartment building owned and
6operated as a cooperative, the maximum reduction from the value
7of the property, as equalized by the Department, shall be
8multiplied by the number of apartments or units occupied by a
9person 65 years of age or older who is liable, by contract with
10the owner or owners of record, for paying property taxes on the
11property and is an owner of record of a legal or equitable
12interest in the cooperative apartment building, other than a
13leasehold interest. For land improved with a life care
14facility, the maximum reduction from the value of the property,
15as equalized by the Department, shall be multiplied by the
16number of apartments or units occupied by persons 65 years of
17age or older, irrespective of any legal, equitable, or
18leasehold interest in the facility, who are liable, under a
19contract with the owner or owners of record of the facility,
20for paying property taxes on the property. In a cooperative or
21a life care facility where a homestead exemption has been
22granted, the cooperative association or the management firm of
23the cooperative or facility shall credit the savings resulting
24from that exemption only to the apportioned tax liability of
25the owner or resident who qualified for the exemption. Any
26person who willfully refuses to so credit the savings shall be

 

 

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1guilty of a Class B misdemeanor. Under this Section and
2Sections 15-175, 15-176, and 15-177, "life care facility" means
3a facility, as defined in Section 2 of the Life Care Facilities
4Act, with which the applicant for the homestead exemption has a
5life care contract as defined in that Act.
6    When a homestead exemption has been granted under this
7Section and the person qualifying subsequently becomes a
8resident of a facility licensed under the Assisted Living and
9Shared Housing Act, the Nursing Home Care Act, the Specialized
10Mental Health Rehabilitation Act, or the ID/DD Community Care
11Act, the exemption shall continue so long as the residence
12continues to be occupied by the qualifying person's spouse if
13the spouse is 65 years of age or older, or if the residence
14remains unoccupied but is still owned by the person qualified
15for the homestead exemption.
16    A person who will be 65 years of age during the current
17assessment year shall be eligible to apply for the homestead
18exemption during that assessment year. Application shall be
19made during the application period in effect for the county of
20his residence.
21    Beginning with assessment year 2003, for taxes payable in
222004, property that is first occupied as a residence after
23January 1 of any assessment year by a person who is eligible
24for the senior citizens homestead exemption under this Section
25must be granted a pro-rata exemption for the assessment year.
26The amount of the pro-rata exemption is the exemption allowed

 

 

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1in the county under this Section divided by 365 and multiplied
2by the number of days during the assessment year the property
3is occupied as a residence by a person eligible for the
4exemption under this Section. The chief county assessment
5officer must adopt reasonable procedures to establish
6eligibility for this pro-rata exemption.
7    The assessor or chief county assessment officer may
8determine the eligibility of a life care facility to receive
9the benefits provided by this Section, by affidavit,
10application, visual inspection, questionnaire or other
11reasonable methods in order to insure that the tax savings
12resulting from the exemption are credited by the management
13firm to the apportioned tax liability of each qualifying
14resident. The assessor may request reasonable proof that the
15management firm has so credited the exemption.
16    The chief county assessment officer of each county with
17less than 3,000,000 inhabitants shall provide to each person
18allowed a homestead exemption under this Section a form to
19designate any other person to receive a duplicate of any notice
20of delinquency in the payment of taxes assessed and levied
21under this Code on the property of the person receiving the
22exemption. The duplicate notice shall be in addition to the
23notice required to be provided to the person receiving the
24exemption, and shall be given in the manner required by this
25Code. The person filing the request for the duplicate notice
26shall pay a fee of $5 to cover administrative costs to the

 

 

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1supervisor of assessments, who shall then file the executed
2designation with the county collector. Notwithstanding any
3other provision of this Code to the contrary, the filing of
4such an executed designation requires the county collector to
5provide duplicate notices as indicated by the designation. A
6designation may be rescinded by the person who executed such
7designation at any time, in the manner and form required by the
8chief county assessment officer.
9    The assessor or chief county assessment officer may
10determine the eligibility of residential property to receive
11the homestead exemption provided by this Section by
12application, visual inspection, questionnaire or other
13reasonable methods. The determination shall be made in
14accordance with guidelines established by the Department.
15    In counties with 3,000,000 or more inhabitants, beginning
16in taxable year 2010, each taxpayer who has been granted an
17exemption under this Section, other than a taxpayer who turns
1870 years of age or older during the taxable year, must reapply
19on an annual basis. The chief county assessment officer shall
20mail the application to the taxpayer. In counties with less
21than 3,000,000 inhabitants, the county board may by resolution
22provide that if a person has been granted a homestead exemption
23under this Section, the person qualifying need not reapply for
24the exemption.
25    Notwithstanding any other provision of law, if a person
26turns 70 years of age or older during the taxable year, and he

 

 

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1or she qualified for an exemption under this Section in the
2previous taxable year, then the person qualifying need not
3reapply for the exemption.
4    In counties with less than 3,000,000 inhabitants, if the
5assessor or chief county assessment officer requires annual
6application for verification of eligibility for an exemption
7once granted under this Section, the application shall be
8mailed to the taxpayer.
9    The assessor or chief county assessment officer shall
10notify each person who qualifies for an exemption under this
11Section that the person may also qualify for deferral of real
12estate taxes under the Senior Citizens Real Estate Tax Deferral
13Act. The notice shall set forth the qualifications needed for
14deferral of real estate taxes, the address and telephone number
15of county collector, and a statement that applications for
16deferral of real estate taxes may be obtained from the county
17collector.
18    Notwithstanding Sections 6 and 8 of the State Mandates Act,
19no reimbursement by the State is required for the
20implementation of any mandate created by this Section.
21(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
2296-1000, eff. 7-2-10; 96-1418, eff. 8-2-10; 97-38, eff.
236-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
 
24    (35 ILCS 200/15-172)
25    Sec. 15-172. Senior Citizens Assessment Freeze Homestead

 

 

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1Exemption.
2    (a) This Section may be cited as the Senior Citizens
3Assessment Freeze Homestead Exemption.
4    (b) As used in this Section:
5    "Applicant" means an individual who has filed an
6application under this Section.
7    "Base amount" means the base year equalized assessed value
8of the residence plus the first year's equalized assessed value
9of any added improvements which increased the assessed value of
10the residence after the base year.
11    "Base year" means the taxable year prior to the taxable
12year for which the applicant first qualifies and applies for
13the exemption provided that in the prior taxable year the
14property was improved with a permanent structure that was
15occupied as a residence by the applicant who was liable for
16paying real property taxes on the property and who was either
17(i) an owner of record of the property or had legal or
18equitable interest in the property as evidenced by a written
19instrument or (ii) had a legal or equitable interest as a
20lessee in the parcel of property that was single family
21residence. If in any subsequent taxable year for which the
22applicant applies and qualifies for the exemption the equalized
23assessed value of the residence is less than the equalized
24assessed value in the existing base year (provided that such
25equalized assessed value is not based on an assessed value that
26results from a temporary irregularity in the property that

 

 

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1reduces the assessed value for one or more taxable years), then
2that subsequent taxable year shall become the base year until a
3new base year is established under the terms of this paragraph.
4For taxable year 1999 only, the Chief County Assessment Officer
5shall review (i) all taxable years for which the applicant
6applied and qualified for the exemption and (ii) the existing
7base year. The assessment officer shall select as the new base
8year the year with the lowest equalized assessed value. An
9equalized assessed value that is based on an assessed value
10that results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years shall
12not be considered the lowest equalized assessed value. The
13selected year shall be the base year for taxable year 1999 and
14thereafter until a new base year is established under the terms
15of this paragraph.
16    "Chief County Assessment Officer" means the County
17Assessor or Supervisor of Assessments of the county in which
18the property is located.
19    "Equalized assessed value" means the assessed value as
20equalized by the Illinois Department of Revenue.
21    "Household" means the applicant, the spouse of the
22applicant, and all persons using the residence of the applicant
23as their principal place of residence.
24    "Household income" means the combined income of the members
25of a household for the calendar year preceding the taxable
26year.

 

 

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1    "Income" has the same meaning as provided in Section 3.07
2of the Senior Citizens and Disabled Persons Property Tax Relief
3and Pharmaceutical Assistance Act, except that, beginning in
4assessment year 2001, "income" does not include veteran's
5benefits.
6    "Internal Revenue Code of 1986" means the United States
7Internal Revenue Code of 1986 or any successor law or laws
8relating to federal income taxes in effect for the year
9preceding the taxable year.
10    "Life care facility that qualifies as a cooperative" means
11a facility as defined in Section 2 of the Life Care Facilities
12Act.
13    "Maximum income limitation" means:
14        (1) $35,000 prior to taxable year 1999;
15        (2) $40,000 in taxable years 1999 through 2003;
16        (3) $45,000 in taxable years 2004 through 2005;
17        (4) $50,000 in taxable years 2006 and 2007; and
18        (5) $55,000 in taxable year 2008 and thereafter.
19    "Residence" means the principal dwelling place and
20appurtenant structures used for residential purposes in this
21State occupied on January 1 of the taxable year by a household
22and so much of the surrounding land, constituting the parcel
23upon which the dwelling place is situated, as is used for
24residential purposes. If the Chief County Assessment Officer
25has established a specific legal description for a portion of
26property constituting the residence, then that portion of

 

 

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1property shall be deemed the residence for the purposes of this
2Section.
3    "Taxable year" means the calendar year during which ad
4valorem property taxes payable in the next succeeding year are
5levied.
6    (c) Beginning in taxable year 1994, a senior citizens
7assessment freeze homestead exemption is granted for real
8property that is improved with a permanent structure that is
9occupied as a residence by an applicant who (i) is 65 years of
10age or older during the taxable year, (ii) has a household
11income that does not exceed the maximum income limitation,
12(iii) is liable for paying real property taxes on the property,
13and (iv) is an owner of record of the property or has a legal or
14equitable interest in the property as evidenced by a written
15instrument. This homestead exemption shall also apply to a
16leasehold interest in a parcel of property improved with a
17permanent structure that is a single family residence that is
18occupied as a residence by a person who (i) is 65 years of age
19or older during the taxable year, (ii) has a household income
20that does not exceed the maximum income limitation, (iii) has a
21legal or equitable ownership interest in the property as
22lessee, and (iv) is liable for the payment of real property
23taxes on that property.
24    In counties of 3,000,000 or more inhabitants, the amount of
25the exemption for all taxable years is the equalized assessed
26value of the residence in the taxable year for which

 

 

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1application is made minus the base amount. In all other
2counties, the amount of the exemption is as follows: (i)
3through taxable year 2005 and for taxable year 2007 and
4thereafter, the amount of this exemption shall be the equalized
5assessed value of the residence in the taxable year for which
6application is made minus the base amount; and (ii) for taxable
7year 2006, the amount of the exemption is as follows:
8        (1) For an applicant who has a household income of
9    $45,000 or less, the amount of the exemption is the
10    equalized assessed value of the residence in the taxable
11    year for which application is made minus the base amount.
12        (2) For an applicant who has a household income
13    exceeding $45,000 but not exceeding $46,250, the amount of
14    the exemption is (i) the equalized assessed value of the
15    residence in the taxable year for which application is made
16    minus the base amount (ii) multiplied by 0.8.
17        (3) For an applicant who has a household income
18    exceeding $46,250 but not exceeding $47,500, the amount of
19    the exemption is (i) the equalized assessed value of the
20    residence in the taxable year for which application is made
21    minus the base amount (ii) multiplied by 0.6.
22        (4) For an applicant who has a household income
23    exceeding $47,500 but not exceeding $48,750, 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 0.4.

 

 

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1        (5) For an applicant who has a household income
2    exceeding $48,750 but not exceeding $50,000, 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 0.2.
6    When the applicant is a surviving spouse of an applicant
7for a prior year for the same residence for which an exemption
8under this Section has been granted, the base year and base
9amount for that residence are the same as for the applicant for
10the prior year.
11    Each year at the time the assessment books are certified to
12the County Clerk, the Board of Review or Board of Appeals shall
13give to the County Clerk a list of the assessed values of
14improvements on each parcel qualifying for this exemption that
15were added after the base year for this parcel and that
16increased the assessed value of the property.
17    In the case of land improved with an apartment building
18owned and operated as a cooperative or a building that is a
19life care facility that qualifies as a cooperative, the maximum
20reduction from the equalized assessed value of the property is
21limited to the sum of the reductions calculated for each unit
22occupied as a residence by a person or persons (i) 65 years of
23age or older, (ii) with a household income that does not exceed
24the maximum income limitation, (iii) who is liable, by contract
25with the owner or owners of record, for paying real property
26taxes on the property, and (iv) who is an owner of record of a

 

 

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1legal or equitable interest in the cooperative apartment
2building, other than a leasehold interest. In the instance of a
3cooperative where a homestead exemption has been granted under
4this Section, the cooperative association or its management
5firm shall credit the savings resulting from that exemption
6only to the apportioned tax liability of the owner who
7qualified for the exemption. Any person who willfully refuses
8to credit that savings to an owner who qualifies for the
9exemption is guilty of a Class B misdemeanor.
10    When a homestead exemption has been granted under this
11Section and an applicant then becomes a resident of a facility
12licensed under the Assisted Living and Shared Housing Act, the
13Nursing Home Care Act, the Specialized Mental Health
14Rehabilitation Act, or the ID/DD Community Care Act, the
15exemption shall be granted in subsequent years so long as the
16residence (i) continues to be occupied by the qualified
17applicant's spouse or (ii) if remaining unoccupied, is still
18owned by the qualified applicant for the homestead exemption.
19    Beginning January 1, 1997, when an individual dies who
20would have qualified for an exemption under this Section, and
21the surviving spouse does not independently qualify for this
22exemption because of age, the exemption under this Section
23shall be granted to the surviving spouse for the taxable year
24preceding and the taxable year of the death, provided that,
25except for age, the surviving spouse meets all other
26qualifications for the granting of this exemption for those

 

 

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1years.
2    When married persons maintain separate residences, the
3exemption provided for in this Section may be claimed by only
4one of such persons and for only one residence.
5    For taxable year 1994 only, in counties having less than
63,000,000 inhabitants, to receive the exemption, a person shall
7submit an application by February 15, 1995 to the Chief County
8Assessment Officer of the county in which the property is
9located. In counties having 3,000,000 or more inhabitants, for
10taxable year 1994 and all subsequent taxable years, to receive
11the exemption, a person may submit an application to the Chief
12County Assessment Officer of the county in which the property
13is located during such period as may be specified by the Chief
14County Assessment Officer. The Chief County Assessment Officer
15in counties of 3,000,000 or more inhabitants shall annually
16give notice of the application period by mail or by
17publication. In counties having less than 3,000,000
18inhabitants, beginning with taxable year 1995 and thereafter,
19to receive the exemption, a person shall submit an application
20by July 1 of each taxable year to the Chief County Assessment
21Officer of the county in which the property is located. A
22county may, by ordinance, establish a date for submission of
23applications that is different than July 1. The applicant shall
24submit with the application an affidavit of the applicant's
25total household income, age, marital status (and if married the
26name and address of the applicant's spouse, if known), and

 

 

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1principal dwelling place of members of the household on January
21 of the taxable year. The Department shall establish, by rule,
3a method for verifying the accuracy of affidavits filed by
4applicants under this Section, and the Chief County Assessment
5Officer may conduct audits of any taxpayer claiming an
6exemption under this Section to verify that the taxpayer is
7eligible to receive the exemption. Each application shall
8contain or be verified by a written declaration that it is made
9under the penalties of perjury. A taxpayer's signing a
10fraudulent application under this Act is perjury, as defined in
11Section 32-2 of the Criminal Code of 1961. The applications
12shall be clearly marked as applications for the Senior Citizens
13Assessment Freeze Homestead Exemption and must contain a notice
14that any taxpayer who receives the exemption is subject to an
15audit by the Chief County Assessment Officer.
16    Notwithstanding any other provision to the contrary, in
17counties having fewer than 3,000,000 inhabitants, if an
18applicant fails to file the application required by this
19Section in a timely manner and this failure to file is due to a
20mental or physical condition sufficiently severe so as to
21render the applicant incapable of filing the application in a
22timely manner, the Chief County Assessment Officer may extend
23the filing deadline for a period of 30 days after the applicant
24regains the capability to file the application, but in no case
25may the filing deadline be extended beyond 3 months of the
26original filing deadline. In order to receive the extension

 

 

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1provided in this paragraph, the applicant shall provide the
2Chief County Assessment Officer with a signed statement from
3the applicant's physician stating the nature and extent of the
4condition, that, in the physician's opinion, the condition was
5so severe that it rendered the applicant incapable of filing
6the application in a timely manner, and the date on which the
7applicant regained the capability to file the application.
8    Beginning January 1, 1998, notwithstanding any other
9provision to the contrary, in counties having fewer than
103,000,000 inhabitants, if an applicant fails to file the
11application required by this Section in a timely manner and
12this failure to file is due to a mental or physical condition
13sufficiently severe so as to render the applicant incapable of
14filing the application in a timely manner, the Chief County
15Assessment Officer may extend the filing deadline for a period
16of 3 months. In order to receive the extension provided in this
17paragraph, the applicant shall provide the Chief County
18Assessment Officer with a signed statement from the applicant's
19physician stating the nature and extent of the condition, and
20that, in the physician's opinion, the condition was so severe
21that it rendered the applicant incapable of filing the
22application in a timely manner.
23    In counties having less than 3,000,000 inhabitants, if an
24applicant was denied an exemption in taxable year 1994 and the
25denial occurred due to an error on the part of an assessment
26official, or his or her agent or employee, then beginning in

 

 

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1taxable year 1997 the applicant's base year, for purposes of
2determining the amount of the exemption, shall be 1993 rather
3than 1994. In addition, in taxable year 1997, the applicant's
4exemption shall also include an amount equal to (i) the amount
5of any exemption denied to the applicant in taxable year 1995
6as a result of using 1994, rather than 1993, as the base year,
7(ii) the amount of any exemption denied to the applicant in
8taxable year 1996 as a result of using 1994, rather than 1993,
9as the base year, and (iii) the amount of the exemption
10erroneously denied for taxable year 1994.
11    For purposes of this Section, a person who will be 65 years
12of age during the current taxable year shall be eligible to
13apply for the homestead exemption during that taxable year.
14Application shall be made during the application period in
15effect for the county of his or her residence.
16    Notwithstanding any other provision of law, if a person
17turns 70 years of age or older during the taxable year, and he
18or she qualified for an exemption under this Section in the
19previous taxable year, then the person qualifying need not
20reapply for the exemption.
21    The Chief County Assessment Officer may determine the
22eligibility of a life care facility that qualifies as a
23cooperative to receive the benefits provided by this Section by
24use of an affidavit, application, visual inspection,
25questionnaire, or other reasonable method in order to insure
26that the tax savings resulting from the exemption are credited

 

 

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

 

 

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1application must be submitted to the Chief County Assessment
2Officer of the county in which the property is located. The
3notice shall appear in a newspaper of general circulation in
4the county.
5    Notwithstanding Sections 6 and 8 of the State Mandates Act,
6no reimbursement by the State is required for the
7implementation of any mandate created by this Section.
8(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
996-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
10revised 9-12-11.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.