98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4209

 

Introduced , by Rep. Kathleen Willis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172
320 ILCS 30/2  from Ch. 67 1/2, par. 452

    Amends the Property Tax Code and the Senior Citizens Real Estate Tax Deferral Act. Increases the maximum income limitation for the Senior Citizens Assessment Freeze Homestead Exemption and the Senior Citizens Real Estate Tax Deferral Program to $60,000 (instead of $55,000). Effective immediately.


LRB098 15208 HLH 50196 b

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

 

 

A BILL FOR

 

HB4209LRB098 15208 HLH 50196 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
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
13Act, except that, beginning in assessment year 2001, "income"
14does not include veteran's benefits.
15    "Internal Revenue Code of 1986" means the United States
16Internal Revenue Code of 1986 or any successor law or laws
17relating to federal income taxes in effect for the year
18preceding the taxable year.
19    "Life care facility that qualifies as a cooperative" means
20a facility as defined in Section 2 of the Life Care Facilities
21Act.
22    "Maximum income limitation" means:
23        (1) $35,000 prior to taxable year 1999;
24        (2) $40,000 in taxable years 1999 through 2003;
25        (3) $45,000 in taxable years 2004 through 2005;
26        (4) $50,000 in taxable years 2006 and 2007; and

 

 

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1        (5) $55,000 in taxable years year 2008 through 2013;
2    and and thereafter.
3        (6) $60,000 in taxable year 2014 and thereafter.
4    "Residence" means the principal dwelling place and
5appurtenant structures used for residential purposes in this
6State occupied on January 1 of the taxable year by a household
7and so much of the surrounding land, constituting the parcel
8upon which the dwelling place is situated, as is used for
9residential purposes. If the Chief County Assessment Officer
10has established a specific legal description for a portion of
11property constituting the residence, then that portion of
12property shall be deemed the residence for the purposes of this
13Section.
14    "Taxable year" means the calendar year during which ad
15valorem property taxes payable in the next succeeding year are
16levied.
17    (c) Beginning in taxable year 1994, a senior citizens
18assessment freeze homestead exemption is granted for real
19property that is improved with a permanent structure that is
20occupied as a residence by an applicant who (i) is 65 years of
21age or older during the taxable year, (ii) has a household
22income that does not exceed the maximum income limitation,
23(iii) is liable for paying real property taxes on the property,
24and (iv) is an owner of record of the property or has a legal or
25equitable interest in the property as evidenced by a written
26instrument. This homestead exemption shall also apply to a

 

 

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1leasehold interest in a parcel of property improved with a
2permanent structure that is a single family residence that is
3occupied as a residence by a person who (i) is 65 years of age
4or older during the taxable year, (ii) has a household income
5that does not exceed the maximum income limitation, (iii) has a
6legal or equitable ownership interest in the property as
7lessee, and (iv) is liable for the payment of real property
8taxes on that property.
9    In counties of 3,000,000 or more inhabitants, the amount of
10the exemption for all taxable years is the equalized assessed
11value of the residence in the taxable year for which
12application is made minus the base amount. In all other
13counties, the amount of the exemption is as follows: (i)
14through taxable year 2005 and for taxable year 2007 and
15thereafter, the amount of this exemption shall be the equalized
16assessed value of the residence in the taxable year for which
17application is made minus the base amount; and (ii) for taxable
18year 2006, the amount of the exemption is as follows:
19        (1) For an applicant who has a household income of
20    $45,000 or less, the amount of the exemption is the
21    equalized assessed value of the residence in the taxable
22    year for which application is made minus the base amount.
23        (2) For an applicant who has a household income
24    exceeding $45,000 but not exceeding $46,250, the amount of
25    the exemption is (i) the equalized assessed value of the
26    residence in the taxable year for which application is made

 

 

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1    minus the base amount (ii) multiplied by 0.8.
2        (3) For an applicant who has a household income
3    exceeding $46,250 but not exceeding $47,500, the amount of
4    the exemption is (i) the equalized assessed value of the
5    residence in the taxable year for which application is made
6    minus the base amount (ii) multiplied by 0.6.
7        (4) For an applicant who has a household income
8    exceeding $47,500 but not exceeding $48,750, the amount of
9    the exemption is (i) the equalized assessed value of the
10    residence in the taxable year for which application is made
11    minus the base amount (ii) multiplied by 0.4.
12        (5) For an applicant who has a household income
13    exceeding $48,750 but not exceeding $50,000, 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 0.2.
17    When the applicant is a surviving spouse of an applicant
18for a prior year for the same residence for which an exemption
19under this Section has been granted, the base year and base
20amount for that residence are the same as for the applicant for
21the prior year.
22    Each year at the time the assessment books are certified to
23the County Clerk, the Board of Review or Board of Appeals shall
24give to the County Clerk a list of the assessed values of
25improvements on each parcel qualifying for this exemption that
26were added after the base year for this parcel and that

 

 

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1increased the assessed value of the property.
2    In the case of land improved with an apartment building
3owned and operated as a cooperative or a building that is a
4life care facility that qualifies as a cooperative, the maximum
5reduction from the equalized assessed value of the property is
6limited to the sum of the reductions calculated for each unit
7occupied as a residence by a person or persons (i) 65 years of
8age or older, (ii) with a household income that does not exceed
9the maximum income limitation, (iii) who is liable, by contract
10with the owner or owners of record, for paying real property
11taxes on the property, and (iv) who is an owner of record of a
12legal or equitable interest in the cooperative apartment
13building, other than a leasehold interest. In the instance of a
14cooperative where a homestead exemption has been granted under
15this Section, the cooperative association or its management
16firm shall credit the savings resulting from that exemption
17only to the apportioned tax liability of the owner who
18qualified for the exemption. Any person who willfully refuses
19to credit that savings to an owner who qualifies for the
20exemption is guilty of a Class B misdemeanor.
21    When a homestead exemption has been granted under this
22Section and an applicant then becomes a resident of a facility
23licensed under the Assisted Living and Shared Housing Act, the
24Nursing Home Care Act, the Specialized Mental Health
25Rehabilitation Act of 2013, or the ID/DD Community Care Act,
26the exemption shall be granted in subsequent years so long as

 

 

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1the residence (i) continues to be occupied by the qualified
2applicant's spouse or (ii) if remaining unoccupied, is still
3owned by the qualified applicant for the homestead exemption.
4    Beginning January 1, 1997, when an individual dies who
5would have qualified for an exemption under this Section, and
6the surviving spouse does not independently qualify for this
7exemption because of age, the exemption under this Section
8shall be granted to the surviving spouse for the taxable year
9preceding and the taxable year of the death, provided that,
10except for age, the surviving spouse meets all other
11qualifications for the granting of this exemption for those
12years.
13    When married persons maintain separate residences, the
14exemption provided for in this Section may be claimed by only
15one of such persons and for only one residence.
16    For taxable year 1994 only, in counties having less than
173,000,000 inhabitants, to receive the exemption, a person shall
18submit an application by February 15, 1995 to the Chief County
19Assessment Officer of the county in which the property is
20located. In counties having 3,000,000 or more inhabitants, for
21taxable year 1994 and all subsequent taxable years, to receive
22the exemption, a person may submit an application to the Chief
23County Assessment Officer of the county in which the property
24is located during such period as may be specified by the Chief
25County Assessment Officer. The Chief County Assessment Officer
26in counties of 3,000,000 or more inhabitants shall annually

 

 

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1give notice of the application period by mail or by
2publication. In counties having less than 3,000,000
3inhabitants, beginning with taxable year 1995 and thereafter,
4to receive the exemption, a person shall submit an application
5by July 1 of each taxable year to the Chief County Assessment
6Officer of the county in which the property is located. A
7county may, by ordinance, establish a date for submission of
8applications that is different than July 1. The applicant shall
9submit with the application an affidavit of the applicant's
10total household income, age, marital status (and if married the
11name and address of the applicant's spouse, if known), and
12principal dwelling place of members of the household on January
131 of the taxable year. The Department shall establish, by rule,
14a method for verifying the accuracy of affidavits filed by
15applicants under this Section, and the Chief County Assessment
16Officer may conduct audits of any taxpayer claiming an
17exemption under this Section to verify that the taxpayer is
18eligible to receive the exemption. Each application shall
19contain or be verified by a written declaration that it is made
20under the penalties of perjury. A taxpayer's signing a
21fraudulent application under this Act is perjury, as defined in
22Section 32-2 of the Criminal Code of 2012. The applications
23shall be clearly marked as applications for the Senior Citizens
24Assessment Freeze Homestead Exemption and must contain a notice
25that any taxpayer who receives the exemption is subject to an
26audit by the Chief County Assessment Officer.

 

 

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1    Notwithstanding any other provision to the contrary, in
2counties having fewer than 3,000,000 inhabitants, if an
3applicant fails to file the application required by this
4Section in a timely manner and this failure to file is due to a
5mental or physical condition sufficiently severe so as to
6render the applicant incapable of filing the application in a
7timely manner, the Chief County Assessment Officer may extend
8the filing deadline for a period of 30 days after the applicant
9regains the capability to file the application, but in no case
10may the filing deadline be extended beyond 3 months of the
11original filing deadline. In order to receive the extension
12provided in this paragraph, the applicant shall provide the
13Chief County Assessment Officer with a signed statement from
14the applicant's physician stating the nature and extent of the
15condition, that, in the physician's opinion, the condition was
16so severe that it rendered the applicant incapable of filing
17the application in a timely manner, and the date on which the
18applicant regained the capability to file the application.
19    Beginning January 1, 1998, notwithstanding any other
20provision to the contrary, in counties having fewer than
213,000,000 inhabitants, if an applicant fails to file the
22application required by this Section in a timely manner and
23this failure to file is due to a mental or physical condition
24sufficiently severe so as to render the applicant incapable of
25filing the application in a timely manner, the Chief County
26Assessment Officer may extend the filing deadline for a period

 

 

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

 

 

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

 

 

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1way that information contained in any individual claim shall
2not be disclosed.
3    (d) Each Chief County Assessment Officer shall annually
4publish a notice of availability of the exemption provided
5under this Section. The notice shall be published at least 60
6days but no more than 75 days prior to the date on which the
7application must be submitted to the Chief County Assessment
8Officer of the county in which the property is located. The
9notice shall appear in a newspaper of general circulation in
10the county.
11    Notwithstanding Sections 6 and 8 of the State Mandates Act,
12no reimbursement by the State is required for the
13implementation of any mandate created by this Section.
14(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-689,
15eff. 6-14-12; 97-813, eff. 7-13-12; 97-1150, eff. 1-25-13;
1698-104, eff. 7-22-13.)
 
17    Section 10. The Senior Citizens Real Estate Tax Deferral
18Act is amended by changing Section 2 as follows:
 
19    (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
20    Sec. 2. Definitions. As used in this Act:
21    (a) "Taxpayer" means an individual whose household income
22for the year is no greater than: (i) $40,000 through tax year
232005; (ii) $50,000 for tax years 2006 through 2011; and (iii)
24$55,000 for tax years year 2012 and 2013; and (iv) $60,000 for

 

 

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1tax year 2014 and thereafter.
2    (b) "Tax deferred property" means the property upon which
3real estate taxes are deferred under this Act.
4    (c) "Homestead" means the land and buildings thereon,
5including a condominium or a dwelling unit in a multidwelling
6building that is owned and operated as a cooperative, occupied
7by the taxpayer as his residence or which are temporarily
8unoccupied by the taxpayer because such taxpayer is temporarily
9residing, for not more than 1 year, in a licensed facility as
10defined in Section 1-113 of the Nursing Home Care Act.
11    (d) "Real estate taxes" or "taxes" means the taxes on real
12property for which the taxpayer would be liable under the
13Property Tax Code, including special service area taxes, and
14special assessments on benefited real property for which the
15taxpayer would be liable to a unit of local government.
16    (e) "Department" means the Department of Revenue.
17    (f) "Qualifying property" means a homestead which (a) the
18taxpayer or the taxpayer and his spouse own in fee simple or
19are purchasing in fee simple under a recorded instrument of
20sale, (b) is not income-producing property, (c) is not subject
21to a lien for unpaid real estate taxes when a claim under this
22Act is filed, and (d) is not held in trust, other than an
23Illinois land trust with the taxpayer identified as the sole
24beneficiary, if the taxpayer is filing for the program for the
25first time effective as of the January 1, 2011 assessment year
26or tax year 2012 and thereafter.

 

 

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1    (g) "Equity interest" means the current assessed valuation
2of the qualified property times the fraction necessary to
3convert that figure to full market value minus any outstanding
4debts or liens on that property. In the case of qualifying
5property not having a separate assessed valuation, the
6appraised value as determined by a qualified real estate
7appraiser shall be used instead of the current assessed
8valuation.
9    (h) "Household income" has the meaning ascribed to that
10term in the Senior Citizens and Disabled Persons Property Tax
11Relief Act.
12    (i) "Collector" means the county collector or, if the taxes
13to be deferred are special assessments, an official designated
14by a unit of local government to collect special assessments.
15(Source: P.A. 97-481, eff. 8-22-11; 97-689, eff. 6-14-12.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.