97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5767

 

Introduced 2/16/2012, by Rep. Paul Evans

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Beginning in taxable year 2012, increases the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption from $55,000 to $75,000 for applicants who have occupied the residence for 5 years or more. Indexes the maximum income limitation to the Consumer Price Index. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT 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.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying real property taxes on the property and who was either

 

 

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

 

 

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

 

 

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1        (4) $50,000 in taxable years 2006 and 2007; and
2        (5) $55,000 in taxable years year 2008 through 2010;
3    and thereafter.
4        (6) in taxable year 2012, (A) $55,000 for applicants
5    who have occupied the residence for less than 5 years and
6    (B) $75,000 for applicants who have occupied the residence
7    for 5 or more years; and
8        (7) in taxable year 2013 and thereafter, (A) for
9    applicants who have occupied the residence for less than 5
10    years, an amount equal to the maximum income limitation for
11    the immediately prior taxable year for applicants who have
12    occupied the residence for less than 5 years increased by
13    the lesser of (i) 2% or (ii) the percentage increase during
14    the immediately prior taxable year in the Consumer Price
15    Index for All Urban Consumers for all items published by
16    the United States Department of Labor Bureau of Labor
17    Statistics and (B) for applicants who have occupied the
18    residence for 5 or more years, an amount equal to the
19    maximum income limitation for the immediately prior
20    taxable year for applicants who have occupied the residence
21    for 5 or more years increased by the lesser of (i) 2% or
22    (ii) the percentage increase during the immediately prior
23    taxable year in the Consumer Price Index for All Urban
24    Consumers for all items published by the United States
25    Department of Labor Bureau of Labor Statistics.
26    "Residence" means the principal dwelling place and

 

 

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1appurtenant structures used for residential purposes in this
2State occupied on January 1 of the taxable year by a household
3and so much of the surrounding land, constituting the parcel
4upon which the dwelling place is situated, as is used for
5residential purposes. If the Chief County Assessment Officer
6has established a specific legal description for a portion of
7property constituting the residence, then that portion of
8property shall be deemed the residence for the purposes of this
9Section.
10    "Taxable year" means the calendar year during which ad
11valorem property taxes payable in the next succeeding year are
12levied.
13    (c) Beginning in taxable year 1994, a senior citizens
14assessment freeze homestead exemption is granted for real
15property that is improved with a permanent structure that is
16occupied as a residence by an applicant who (i) is 65 years of
17age or older during the taxable year, (ii) has a household
18income that does not exceed the maximum income limitation,
19(iii) is liable for paying real property taxes on the property,
20and (iv) is an owner of record of the property or has a legal or
21equitable interest in the property as evidenced by a written
22instrument. This homestead exemption shall also apply to a
23leasehold interest in a parcel of property improved with a
24permanent structure that is a single family residence that is
25occupied as a residence by a person who (i) is 65 years of age
26or older during the taxable year, (ii) has a household income

 

 

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1that does not exceed the maximum income limitation, (iii) has a
2legal or equitable ownership interest in the property as
3lessee, and (iv) is liable for the payment of real property
4taxes on that property.
5    In counties of 3,000,000 or more inhabitants, the amount of
6the exemption for all taxable years is the equalized assessed
7value of the residence in the taxable year for which
8application is made minus the base amount. In all other
9counties, the amount of the exemption is as follows: (i)
10through taxable year 2005 and for taxable year 2007 and
11thereafter, the amount of this exemption shall be the equalized
12assessed value of the residence in the taxable year for which
13application is made minus the base amount; and (ii) for taxable
14year 2006, the amount of the exemption is as follows:
15        (1) For an applicant who has a household income of
16    $45,000 or less, the amount of the exemption is the
17    equalized assessed value of the residence in the taxable
18    year for which application is made minus the base amount.
19        (2) For an applicant who has a household income
20    exceeding $45,000 but not exceeding $46,250, 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 0.8.
24        (3) For an applicant who has a household income
25    exceeding $46,250 but not exceeding $47,500, the amount of
26    the exemption is (i) the equalized assessed value of the

 

 

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

 

 

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1reduction from the equalized assessed value of the property is
2limited to the sum of the reductions calculated for each unit
3occupied as a residence by a person or persons (i) 65 years of
4age or older, (ii) with a household income that does not exceed
5the maximum income limitation, (iii) who is liable, by contract
6with the owner or owners of record, for paying real property
7taxes on the property, and (iv) who is an owner of record of a
8legal or equitable interest in the cooperative apartment
9building, other than a leasehold interest. In the instance of a
10cooperative where a homestead exemption has been granted under
11this Section, the cooperative association or its management
12firm shall credit the savings resulting from that exemption
13only to the apportioned tax liability of the owner who
14qualified for the exemption. Any person who willfully refuses
15to credit that savings to an owner who qualifies for the
16exemption is guilty of a Class B misdemeanor.
17    When a homestead exemption has been granted under this
18Section and an applicant then becomes a resident of a facility
19licensed under the Assisted Living and Shared Housing Act, the
20Nursing Home Care Act, the Specialized Mental Health
21Rehabilitation Act, or the ID/DD Community Care Act, the
22exemption shall be granted in subsequent years so long as the
23residence (i) continues to be occupied by the qualified
24applicant's spouse or (ii) if remaining unoccupied, is still
25owned by the qualified applicant for the homestead exemption.
26    Beginning January 1, 1997, when an individual dies who

 

 

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1would have qualified for an exemption under this Section, and
2the surviving spouse does not independently qualify for this
3exemption because of age, the exemption under this Section
4shall be granted to the surviving spouse for the taxable year
5preceding and the taxable year of the death, provided that,
6except for age, the surviving spouse meets all other
7qualifications for the granting of this exemption for those
8years.
9    When married persons maintain separate residences, the
10exemption provided for in this Section may be claimed by only
11one of such persons and for only one residence.
12    For taxable year 1994 only, in counties having less than
133,000,000 inhabitants, to receive the exemption, a person shall
14submit an application by February 15, 1995 to the Chief County
15Assessment Officer of the county in which the property is
16located. In counties having 3,000,000 or more inhabitants, for
17taxable year 1994 and all subsequent taxable years, to receive
18the exemption, a person may submit an application to the Chief
19County Assessment Officer of the county in which the property
20is located during such period as may be specified by the Chief
21County Assessment Officer. The Chief County Assessment Officer
22in counties of 3,000,000 or more inhabitants shall annually
23give notice of the application period by mail or by
24publication. In counties having less than 3,000,000
25inhabitants, beginning with taxable year 1995 and thereafter,
26to receive the exemption, a person shall submit an application

 

 

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1by July 1 of each taxable year to the Chief County Assessment
2Officer of the county in which the property is located. A
3county may, by ordinance, establish a date for submission of
4applications that is different than July 1. The applicant shall
5submit with the application an affidavit of the applicant's
6total household income, age, marital status (and if married the
7name and address of the applicant's spouse, if known), and
8principal dwelling place of members of the household on January
91 of the taxable year. The Department shall establish, by rule,
10a method for verifying the accuracy of affidavits filed by
11applicants under this Section, and the Chief County Assessment
12Officer may conduct audits of any taxpayer claiming an
13exemption under this Section to verify that the taxpayer is
14eligible to receive the exemption. Each application shall
15contain or be verified by a written declaration that it is made
16under the penalties of perjury. A taxpayer's signing a
17fraudulent application under this Act is perjury, as defined in
18Section 32-2 of the Criminal Code of 1961. The applications
19shall be clearly marked as applications for the Senior Citizens
20Assessment Freeze Homestead Exemption and must contain a notice
21that any taxpayer who receives the exemption is subject to an
22audit by the Chief County Assessment Officer.
23    Notwithstanding any other provision to the contrary, in
24counties having fewer than 3,000,000 inhabitants, if an
25applicant fails to file the application required by this
26Section in a timely manner and this failure to file is due to a

 

 

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1mental or physical condition sufficiently severe so as to
2render the applicant incapable of filing the application in a
3timely manner, the Chief County Assessment Officer may extend
4the filing deadline for a period of 30 days after the applicant
5regains the capability to file the application, but in no case
6may the filing deadline be extended beyond 3 months of the
7original filing deadline. In order to receive the extension
8provided in this paragraph, the applicant shall provide the
9Chief County Assessment Officer with a signed statement from
10the applicant's physician stating the nature and extent of the
11condition, that, in the physician's opinion, the condition was
12so severe that it rendered the applicant incapable of filing
13the application in a timely manner, and the date on which the
14applicant regained the capability to file the application.
15    Beginning January 1, 1998, notwithstanding any other
16provision to the contrary, in counties having fewer than
173,000,000 inhabitants, if an applicant fails to file the
18application required by this Section in a timely manner and
19this failure to file is due to a mental or physical condition
20sufficiently severe so as to render the applicant incapable of
21filing the application in a timely manner, the Chief County
22Assessment Officer may extend the filing deadline for a period
23of 3 months. In order to receive the extension provided in this
24paragraph, the applicant shall provide the Chief County
25Assessment Officer with a signed statement from the applicant's
26physician stating the nature and extent of the condition, and

 

 

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

 

 

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1questionnaire, or other reasonable method in order to insure
2that the tax savings resulting from the exemption are credited
3by the management firm to the apportioned tax liability of each
4qualifying resident. The Chief County Assessment Officer may
5request reasonable proof that the management firm has so
6credited that exemption.
7    Except as provided in this Section, all information
8received by the chief county assessment officer or the
9Department from applications filed under this Section, or from
10any investigation conducted under the provisions of this
11Section, shall be confidential, except for official purposes or
12pursuant to official procedures for collection of any State or
13local tax or enforcement of any civil or criminal penalty or
14sanction imposed by this Act or by any statute or ordinance
15imposing a State or local tax. Any person who divulges any such
16information in any manner, except in accordance with a proper
17judicial order, is guilty of a Class A misdemeanor.
18    Nothing contained in this Section shall prevent the
19Director or chief county assessment officer from publishing or
20making available reasonable statistics concerning the
21operation of the exemption contained in this Section in which
22the contents of claims are grouped into aggregates in such a
23way that information contained in any individual claim shall
24not be disclosed.
25    (d) Each Chief County Assessment Officer shall annually
26publish a notice of availability of the exemption provided

 

 

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1under this Section. The notice shall be published at least 60
2days but no more than 75 days prior to the date on which the
3application must be submitted to the Chief County Assessment
4Officer of the county in which the property is located. The
5notice shall appear in a newspaper of general circulation in
6the county.
7    Notwithstanding Sections 6 and 8 of the State Mandates Act,
8no reimbursement by the State is required for the
9implementation of any mandate created by this Section.
10(Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10;
1196-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
12revised 9-12-11.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.