Full Text of HB1596 101st General Assembly
HB1596 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB1596 Introduced , by Rep. Monica Bristow SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. In the Senior Citizens Assessment Freeze Homestead Exemption provisions of the Code, provides that "household income" does not include wages paid to a member of the household who is a person with a disability. 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-172 as follows:
| 6 | | (35 ILCS 200/15-172)
| 7 | | Sec. 15-172. Senior Citizens Assessment Freeze Homestead | 8 | | Exemption.
| 9 | | (a) This Section may be cited as the Senior Citizens | 10 | | Assessment
Freeze Homestead Exemption.
| 11 | | (b) As used in this Section:
| 12 | | "Applicant" means an individual who has filed an | 13 | | application under this
Section.
| 14 | | "Base amount" means the base year equalized assessed value | 15 | | of the residence
plus the first year's equalized assessed value | 16 | | of any added improvements which
increased the assessed value of | 17 | | the residence after the base year.
| 18 | | "Base year" means the taxable year prior to the taxable | 19 | | year for which the
applicant first qualifies and applies for | 20 | | the exemption provided that in the
prior taxable year the | 21 | | property was improved with a permanent structure that
was | 22 | | occupied as a residence by the applicant who was liable for | 23 | | paying 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 | 2 | | equitable interest in the property as evidenced by a
written | 3 | | instrument or (ii) had a legal or equitable interest as a | 4 | | lessee in the
parcel of property that was single family | 5 | | residence.
If in any subsequent taxable year for which the | 6 | | applicant applies and
qualifies for the exemption the equalized | 7 | | assessed value of the residence is
less than the equalized | 8 | | assessed value in the existing base year
(provided that such | 9 | | equalized assessed value is not
based
on an
assessed value that | 10 | | results from a temporary irregularity in the property that
| 11 | | reduces the
assessed value for one or more taxable years), then | 12 | | that
subsequent taxable year shall become the base year until a | 13 | | new base year is
established under the terms of this paragraph. | 14 | | For taxable year 1999 only, the
Chief County Assessment Officer | 15 | | shall review (i) all taxable years for which
the
applicant | 16 | | applied and qualified for the exemption and (ii) the existing | 17 | | base
year.
The assessment officer shall select as the new base | 18 | | year the year with the
lowest equalized assessed value.
An | 19 | | equalized assessed value that is based on an assessed value | 20 | | that results
from a
temporary irregularity in the property that | 21 | | reduces the assessed value for one
or more
taxable years shall | 22 | | not be considered the lowest equalized assessed value.
The | 23 | | selected year shall be the base year for
taxable year 1999 and | 24 | | thereafter until a new base year is established under the
terms | 25 | | of this paragraph.
| 26 | | "Chief County Assessment Officer" means the County |
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| 1 | | Assessor or Supervisor of
Assessments of the county in which | 2 | | the property is located.
| 3 | | "Equalized assessed value" means the assessed value as | 4 | | equalized by the
Illinois Department of Revenue.
| 5 | | "Household" means the applicant, the spouse of the | 6 | | applicant, and all persons
using the residence of the applicant | 7 | | as their principal place of residence.
| 8 | | "Household income" means the combined income of the members | 9 | | of a household
for the calendar year preceding the taxable | 10 | | year. Notwithstanding any other provision of law, "household | 11 | | income" does not include wages paid to a member of the | 12 | | household who is a person with a disability.
| 13 | | "Income" has the same meaning as provided in Section 3.07 | 14 | | of the Senior
Citizens and Persons with Disabilities Property | 15 | | Tax Relief
Act, except that, beginning in assessment year 2001, | 16 | | "income" does not
include veteran's benefits.
| 17 | | "Internal Revenue Code of 1986" means the United States | 18 | | Internal Revenue Code
of 1986 or any successor law or laws | 19 | | relating to federal income taxes in effect
for the year | 20 | | preceding the taxable year.
| 21 | | "Life care facility that qualifies as a cooperative" means | 22 | | a facility as
defined in Section 2 of the Life Care Facilities | 23 | | Act.
| 24 | | "Maximum income limitation" means: | 25 | | (1) $35,000 prior
to taxable year 1999; | 26 | | (2) $40,000 in taxable years 1999 through 2003; |
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| 1 | | (3) $45,000 in taxable years 2004 through 2005; | 2 | | (4) $50,000 in taxable years 2006 and 2007; | 3 | | (5) $55,000 in taxable years 2008 through 2016;
| 4 | | (6) for taxable year 2017, (i) $65,000 for qualified | 5 | | property located in a county with 3,000,000 or more | 6 | | inhabitants and (ii) $55,000 for qualified property | 7 | | located in a county with fewer than 3,000,000 inhabitants; | 8 | | and | 9 | | (7) for taxable years 2018 and thereafter, $65,000 for | 10 | | all qualified property. | 11 | | "Person with a disability" means a person who suffers from | 12 | | a
permanent physical or mental impairment resulting from | 13 | | disease, an injury,
a functional disorder, or a congenital | 14 | | condition that renders the person
incapable of
adequately | 15 | | providing for his or her own health or personal care. | 16 | | "Residence" means the principal dwelling place and | 17 | | appurtenant structures
used for residential purposes in this | 18 | | State occupied on January 1 of the
taxable year by a household | 19 | | and so much of the surrounding land, constituting
the parcel | 20 | | upon which the dwelling place is situated, as is used for
| 21 | | residential purposes. If the Chief County Assessment Officer | 22 | | has established a
specific legal description for a portion of | 23 | | property constituting the
residence, then that portion of | 24 | | property shall be deemed the residence for the
purposes of this | 25 | | Section.
| 26 | | "Taxable year" means the calendar year during which ad |
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| 1 | | valorem property taxes
payable in the next succeeding year are | 2 | | levied.
| 3 | | (c) Beginning in taxable year 1994, a senior citizens | 4 | | assessment freeze
homestead exemption is granted for real | 5 | | property that is improved with a
permanent structure that is | 6 | | occupied as a residence by an applicant who (i) is
65 years of | 7 | | age or older during the taxable year, (ii) has a household | 8 | | income that does not exceed the maximum income limitation, | 9 | | (iii) is liable for paying real property taxes on
the
property, | 10 | | and (iv) is an owner of record of the property or has a legal or
| 11 | | equitable interest in the property as evidenced by a written | 12 | | instrument. This
homestead exemption shall also apply to a | 13 | | leasehold interest in a parcel of
property improved with a | 14 | | permanent structure that is a single family residence
that is | 15 | | occupied as a residence by a person who (i) is 65 years of age | 16 | | or older
during the taxable year, (ii) has a household income | 17 | | that does not exceed the maximum income limitation,
(iii)
has a | 18 | | legal or equitable ownership interest in the property as | 19 | | lessee, and (iv)
is liable for the payment of real property | 20 | | taxes on that property.
| 21 | | In counties of 3,000,000 or more inhabitants, the amount of | 22 | | the exemption for all taxable years is the equalized assessed | 23 | | value of the
residence in the taxable year for which | 24 | | application is made minus the base
amount. In all other | 25 | | counties, the amount of the exemption is as follows: (i) | 26 | | through taxable year 2005 and for taxable year 2007 and |
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| 1 | | thereafter, the amount of this exemption shall be the equalized | 2 | | assessed value of the
residence in the taxable year for which | 3 | | application is made minus the base
amount; and (ii) for
taxable | 4 | | year 2006, the amount of the exemption is as follows:
| 5 | | (1) For an applicant who has a household income of | 6 | | $45,000 or less, the amount of the exemption is the | 7 | | equalized assessed value of the
residence in the taxable | 8 | | year for which application is made minus the base
amount. | 9 | | (2) For an applicant who has a household income | 10 | | exceeding $45,000 but not exceeding $46,250, 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 0.8. | 14 | | (3) For an applicant who has a household income | 15 | | exceeding $46,250 but not exceeding $47,500, 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 0.6. | 19 | | (4) For an applicant who has a household income | 20 | | exceeding $47,500 but not exceeding $48,750, 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 0.4. | 24 | | (5) For an applicant who has a household income | 25 | | exceeding $48,750 but not exceeding $50,000, 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 0.2.
| 3 | | When the applicant is a surviving spouse of an applicant | 4 | | for a prior year for
the same residence for which an exemption | 5 | | under this Section has been granted,
the base year and base | 6 | | amount for that residence are the same as for the
applicant for | 7 | | the prior year.
| 8 | | Each year at the time the assessment books are certified to | 9 | | the County Clerk,
the Board of Review or Board of Appeals shall | 10 | | give to the County Clerk a list
of the assessed values of | 11 | | improvements on each parcel qualifying for this
exemption that | 12 | | were added after the base year for this parcel and that
| 13 | | increased the assessed value of the property.
| 14 | | In the case of land improved with an apartment building | 15 | | owned and operated as
a cooperative or a building that is a | 16 | | life care facility that qualifies as a
cooperative, the maximum | 17 | | reduction from the equalized assessed value of the
property is | 18 | | limited to the sum of the reductions calculated for each unit
| 19 | | occupied as a residence by a person or persons (i) 65 years of | 20 | | age or older, (ii) with a
household income that does not exceed | 21 | | the maximum income limitation, (iii) who is liable, by contract | 22 | | with the
owner
or owners of record, for paying real property | 23 | | taxes on the property, and (iv) who is
an owner of record of a | 24 | | legal or equitable interest in the cooperative
apartment | 25 | | building, other than a leasehold interest. In the instance of a
| 26 | | cooperative where a homestead exemption has been granted under |
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| 1 | | this Section,
the cooperative association or its management | 2 | | firm shall credit the savings
resulting from that exemption | 3 | | only to the apportioned tax liability of the
owner who | 4 | | qualified for the exemption. Any person who willfully refuses | 5 | | to
credit that savings to an owner who qualifies for the | 6 | | exemption is guilty of a
Class B misdemeanor.
| 7 | | When a homestead exemption has been granted under this | 8 | | Section and an
applicant then becomes a resident of a facility | 9 | | licensed under the Assisted Living and Shared Housing Act, the | 10 | | Nursing Home
Care Act, the Specialized Mental Health | 11 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 12 | | the MC/DD Act, the exemption shall be granted in subsequent | 13 | | years so long as the
residence (i) continues to be occupied by | 14 | | the qualified applicant's spouse or
(ii) if remaining | 15 | | unoccupied, is still owned by the qualified applicant for the
| 16 | | homestead exemption.
| 17 | | Beginning January 1, 1997, when an individual dies who | 18 | | would have qualified
for an exemption under this Section, and | 19 | | the surviving spouse does not
independently qualify for this | 20 | | exemption because of age, the exemption under
this Section | 21 | | shall be granted to the surviving spouse for the taxable year
| 22 | | preceding and the taxable
year of the death, provided that, | 23 | | except for age, the surviving spouse meets
all
other | 24 | | qualifications for the granting of this exemption for those | 25 | | years.
| 26 | | When married persons maintain separate residences, the |
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| 1 | | exemption provided for
in this Section may be claimed by only | 2 | | one of such persons and for only one
residence.
| 3 | | For taxable year 1994 only, in counties having less than | 4 | | 3,000,000
inhabitants, to receive the exemption, a person shall | 5 | | submit an application by
February 15, 1995 to the Chief County | 6 | | Assessment Officer
of the county in which the property is | 7 | | located. In counties having 3,000,000
or more inhabitants, for | 8 | | taxable year 1994 and all subsequent taxable years, to
receive | 9 | | the exemption, a person
may submit an application to the Chief | 10 | | County
Assessment Officer of the county in which the property | 11 | | is located during such
period as may be specified by the Chief | 12 | | County Assessment Officer. The Chief
County Assessment Officer | 13 | | in counties of 3,000,000 or more inhabitants shall
annually | 14 | | give notice of the application period by mail or by | 15 | | publication. In
counties having less than 3,000,000 | 16 | | inhabitants, beginning with taxable year
1995 and thereafter, | 17 | | to receive the exemption, a person
shall
submit an
application | 18 | | by July 1 of each taxable year to the Chief County Assessment
| 19 | | Officer of the county in which the property is located. A | 20 | | county may, by
ordinance, establish a date for submission of | 21 | | applications that is
different than
July 1.
The applicant shall | 22 | | submit with the
application an affidavit of the applicant's | 23 | | total household income, age,
marital status (and if married the | 24 | | name and address of the applicant's spouse,
if known), and | 25 | | principal dwelling place of members of the household on January
| 26 | | 1 of the taxable year. The Department shall establish, by rule, |
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| 1 | | a method for
verifying the accuracy of affidavits filed by | 2 | | applicants under this Section, and the Chief County Assessment | 3 | | Officer may conduct audits of any taxpayer claiming an | 4 | | exemption under this Section to verify that the taxpayer is | 5 | | eligible to receive the exemption. Each application shall | 6 | | contain or be verified by a written declaration that it is made | 7 | | under the penalties of perjury. A taxpayer's signing a | 8 | | fraudulent application under this Act is perjury, as defined in | 9 | | Section 32-2 of the Criminal Code of 2012.
The applications | 10 | | shall be clearly marked as applications for the Senior
Citizens | 11 | | Assessment Freeze Homestead Exemption and must contain a notice | 12 | | that any taxpayer who receives the exemption is subject to an | 13 | | audit by the Chief County Assessment Officer.
| 14 | | Notwithstanding any other provision to the contrary, in | 15 | | counties having fewer
than 3,000,000 inhabitants, if an | 16 | | applicant fails
to file the application required by this | 17 | | Section in a timely manner and this
failure to file is due to a | 18 | | mental or physical condition sufficiently severe so
as to | 19 | | render the applicant incapable of filing the application in a | 20 | | timely
manner, the Chief County Assessment Officer may extend | 21 | | the filing deadline for
a period of 30 days after the applicant | 22 | | regains the capability to file the
application, but in no case | 23 | | may the filing deadline be extended beyond 3
months of the | 24 | | original filing deadline. In order to receive the extension
| 25 | | provided in this paragraph, the applicant shall provide the | 26 | | Chief County
Assessment Officer with a signed statement from |
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| 1 | | the applicant's physician, advanced practice registered nurse, | 2 | | or physician assistant
stating the nature and extent of the | 3 | | condition, that, in the
physician's, advanced practice | 4 | | registered nurse's, or physician assistant's opinion, the | 5 | | condition was so severe that it rendered the applicant
| 6 | | incapable of filing the application in a timely manner, and the | 7 | | date on which
the applicant regained the capability to file the | 8 | | application.
| 9 | | Beginning January 1, 1998, notwithstanding any other | 10 | | provision to the
contrary, in counties having fewer than | 11 | | 3,000,000 inhabitants, if an applicant
fails to file the | 12 | | application required by this Section in a timely manner and
| 13 | | this failure to file is due to a mental or physical condition | 14 | | sufficiently
severe so as to render the applicant incapable of | 15 | | filing the application in a
timely manner, the Chief County | 16 | | Assessment Officer may extend the filing
deadline for a period | 17 | | of 3 months. In order to receive the extension provided
in this | 18 | | paragraph, the applicant shall provide the Chief County | 19 | | Assessment
Officer with a signed statement from the applicant's | 20 | | physician, advanced practice registered nurse, or physician | 21 | | assistant stating the
nature and extent of the condition, and | 22 | | that, in the physician's, advanced practice registered | 23 | | nurse's, or physician assistant's opinion, the
condition was so | 24 | | severe that it rendered the applicant incapable of filing the
| 25 | | application in a timely manner.
| 26 | | In counties having less than 3,000,000 inhabitants, if an |
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| 1 | | applicant was
denied an exemption in taxable year 1994 and the | 2 | | denial occurred due to an
error on the part of an assessment
| 3 | | official, or his or her agent or employee, then beginning in | 4 | | taxable year 1997
the
applicant's base year, for purposes of | 5 | | determining the amount of the exemption,
shall be 1993 rather | 6 | | than 1994. In addition, in taxable year 1997, the
applicant's | 7 | | exemption shall also include an amount equal to (i) the amount | 8 | | of
any exemption denied to the applicant in taxable year 1995 | 9 | | as a result of using
1994, rather than 1993, as the base year, | 10 | | (ii) the amount of any exemption
denied to the applicant in | 11 | | taxable year 1996 as a result of using 1994, rather
than 1993, | 12 | | as the base year, and (iii) the amount of the exemption | 13 | | erroneously
denied for taxable year 1994.
| 14 | | For purposes of this Section, a person who will be 65 years | 15 | | of age during the
current taxable year shall be eligible to | 16 | | apply for the homestead exemption
during that taxable year. | 17 | | Application shall be made during the application
period in | 18 | | effect for the county of his or her residence.
| 19 | | The Chief County Assessment Officer may determine the | 20 | | eligibility of a life
care facility that qualifies as a | 21 | | cooperative to receive the benefits
provided by this Section by | 22 | | use of an affidavit, application, visual
inspection, | 23 | | questionnaire, or other reasonable method in order to insure | 24 | | that
the tax savings resulting from the exemption are credited | 25 | | by the management
firm to the apportioned tax liability of each | 26 | | qualifying resident. The Chief
County Assessment Officer may |
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| 1 | | request reasonable proof that the management firm
has so | 2 | | credited that exemption.
| 3 | | Except as provided in this Section, all information | 4 | | received by the chief
county assessment officer or the | 5 | | Department from applications filed under this
Section, or from | 6 | | any investigation conducted under the provisions of this
| 7 | | Section, shall be confidential, except for official purposes or
| 8 | | pursuant to official procedures for collection of any State or | 9 | | local tax or
enforcement of any civil or criminal penalty or | 10 | | sanction imposed by this Act or
by any statute or ordinance | 11 | | imposing a State or local tax. Any person who
divulges any such | 12 | | information in any manner, except in accordance with a proper
| 13 | | judicial order, is guilty of a Class A misdemeanor.
| 14 | | Nothing contained in this Section shall prevent the | 15 | | Director or chief county
assessment officer from publishing or | 16 | | making available reasonable statistics
concerning the | 17 | | operation of the exemption contained in this Section in which
| 18 | | the contents of claims are grouped into aggregates in such a | 19 | | way that
information contained in any individual claim shall | 20 | | not be disclosed. | 21 | | Notwithstanding any other provision of law, for taxable | 22 | | year 2017 and thereafter, in counties of 3,000,000 or more | 23 | | inhabitants, the amount of the exemption shall be the greater | 24 | | of (i) the amount of the exemption otherwise calculated under | 25 | | this Section or (ii) $2,000.
| 26 | | (d) Each Chief County Assessment Officer shall annually |
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| 1 | | publish a notice
of availability of the exemption provided | 2 | | under this Section. The notice
shall be published at least 60 | 3 | | days but no more than 75 days prior to the date
on which the | 4 | | application must be submitted to the Chief County Assessment
| 5 | | Officer of the county in which the property is located. The | 6 | | notice shall
appear in a newspaper of general circulation in | 7 | | the county.
| 8 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 9 | | no reimbursement by the State is required for the | 10 | | implementation of any mandate created by this Section.
| 11 | | (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15; | 12 | | 99-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff. | 13 | | 8-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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