Illinois General Assembly - Full Text of HB2479
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Full Text of HB2479  102nd General Assembly

HB2479 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2479

 

Introduced 2/19/2021, by Rep. Deanne M. Mazzochi

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172.1 new

    Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately.


LRB102 13576 HLH 18924 b

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

 

 

A BILL FOR

 

HB2479LRB102 13576 HLH 18924 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 adding
5Section 15-172.1 as follows:
 
6    (35 ILCS 200/15-172.1 new)
7    Sec. 15-172.1. Senior Citizens Homestead Exemption School
8Levy Cap.
9    (a) This Section may be cited as the Senior Citizens
10Homestead Exemption School Levy Cap.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base year" means the taxable year for which the applicant
15first qualifies and applies for the exemption, provided that,
16in the prior taxable year, the property was improved with a
17permanent structure that was occupied as as the primary
18residence by an applicant who was liable for paying real
19property taxes on the property and who was either (i) an owner
20of record of the property or had legal or equitable interest in
21the property as evidenced by a written instrument or (ii) had a
22legal or equitable interest as a lessee in the parcel of
23property that was an single-family residence and that lease

 

 

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1obligates the lessee to pay property taxes on the parcel.
2    "Base year applicable K-12 school salary levy" means the
3aggregate tax levy share applied to the property in the base
4year pursuant to Section 17-2 of the School Code that derives
5from: (i) faculty salaries and benefits; (ii) administrator
6salaries and benefits; and (iii) classified staff salaries and
7benefits.
8    "Retirement age base amount" means the base year equalized
9assessed value of a residence as of the year the first
10homeowner of the residence, who has resided in the residence
11as a primary residence for a period of at least 5 years, turns
12age 65.
13    "Chief county assessment officer" means the County
14Assessor or Supervisor of Assessments of the county in which
15the property is located.
16    "Equalized assessed value" means the assessed value as
17equalized by the Department of Revenue.
18    "Household" means the applicant, the spouse of the
19applicant, and all persons using the residence of the
20applicant as their principal place of residence.
21    "Household income" means the combined income of the
22members of a household for the calendar year preceding the
23taxable year.
24    "Income" has the same meaning as provided in Section 3.07
25of the Senior Citizens and Persons with Disabilities Property
26Tax Relief Act, except that "income" does not include

 

 

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1veteran's benefits.
2    "Incremental K-12 school salary levy" means for any year
3subsequent to the base year, the aggregate tax levy share
4applied to the property pursuant to Section 17-2 that derives
5from: (i) faculty salaries and benefits; (ii) administrator
6salaries and benefits; and (iii) classified staff salaries and
7benefits, which exceeds the base year applicable K-12 school
8salary levy.
9    "Incremental K-12 school salary levy exemption amount"
10means the incremental K-12 school salary levy exemption
11calculated for that tax year.
12    "Internal Revenue Code of 1986" means the United States
13Internal Revenue Code of 1986 or any successor law or laws
14relating to federal income taxes in effect for the year
15preceding the taxable year.
16    "Life care facility that qualifies as a cooperative" means
17a facility as defined in Section 2 of the Life Care Facilities
18Act.
19    "Maximum income limitation" means for taxable years 2022
20and thereafter, $100,000 per year, indexed to annual inflation
21rates, or 2%, whichever is less per year.
22    "Residence" means the principal dwelling place and
23appurtenant structures used for residential purposes in this
24State occupied on January 1 of the taxable year by a household
25and so much of the surrounding land, constituting the parcel
26upon which the dwelling place is situated, as is used for

 

 

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1residential purposes. If the chief county assessment officer
2has established a specific legal description for a portion of
3property constituting the residence, then that portion of
4property shall be deemed the residence for the purposes of
5this Section.
6    "Taxable year" means the calendar year during which ad
7valorem property taxes payable in the next succeeding year are
8levied.
9    (c) Beginning in taxable year 2022, a senior citizens
10homestead school levy exemption is granted for real property
11that is improved with a permanent structure that is occupied
12as the primary residence by an applicant who (i) is 65 years of
13age or older during the taxable year, (ii) has a household
14income that does not exceed the maximum income limitation,
15(iii) is liable for paying real property taxes on the
16property, (iv) is an owner of record of the property or has a
17legal or equitable interest in the property as evidenced by a
18written instrument, if no individual residing at the real
19property is or will be enrolled in a tax levying body eligible
20to place a levy on the property pursuant to Section 17-2 of the
21School Code. This homestead school levy exemption shall also
22apply to a leasehold interest in a parcel of property improved
23with a permanent structure that is a single family residence
24that is occupied as a residence by a person who: (i) is 65
25years of age or older during the taxable year; (ii) has a
26household income that does not exceed the maximum income

 

 

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1limitation; (iii) has a legal or equitable ownership interest
2in the property as lessee; and (iv) is liable for the payment
3of real property taxes on that property.
4    (d) In counties of 3,000,000 or more inhabitants, the
5amount of the exemption for all taxable years for qualifying
6residents is the incremental K-12 school salary levy exemption
7amount, which may be reduced by an amount not to exceed the
8percentage change in the Consumer Price Index for All Urban
9Consumers for that year. In all other counties, the amount of
10the exemption for qualifying residents is the Incremental K-12
11school salary levy exemption amount, provided that the
12Incremental K-12 school salary levy exemption amount may be
13reduced by 1% per year, provided that the total Incremental
14K-12 school salary levy does not exceed 2% of the fair market
15value of the property.
16    When the applicant is a surviving spouse of an applicant
17for a prior year for the same residence for which an exemption
18under this Section has been granted, the exemption shall still
19apply provided that no individual residing at the real
20property is or will be enrolled in a tax levying body eligible
21to place a levy on the property pursuant to Section 17-2 of the
22School Code.
23    Each year at the time the assessment books are certified
24to the county clerk, the board of review shall give to the
25county clerk a list of the assessed values of improvements on
26each parcel qualifying for this exemption that were added

 

 

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1after the base year for this parcel and that increased the
2assessed value of the property. In the case of land improved
3with an apartment building owned and operated as a cooperative
4or a building that is a life care facility that qualifies as a
5cooperative, the maximum reduction from the equalized assessed
6value of the property is limited to the sum of the reductions
7calculated for each unit occupied as a residence by a person or
8persons (i) 65 years of age or older, (ii) with a household
9income that does not exceed the maximum income limitation,
10(iii) who is liable, by contract with the owner or owners of
11record, for paying real property taxes on the property, and
12(iv) who is an owner of record of a legal or equitable interest
13in the cooperative apartment building, other than a leasehold
14interest, provided that no individual residing at the real
15property is or will be enrolled in a tax levying body eligible
16to place a levy on the property pursuant to Section 17-2 of the
17School Code. In the instance of a cooperative where a
18homestead exemption has been granted under this Section, the
19cooperative association or its management firm shall credit
20the savings resulting from that exemption only to the
21apportioned tax liability of the owner who qualified for the
22exemption. Any person who willfully refuses to credit that
23savings to an owner who qualifies for the exemption is guilty
24of a Class B misdemeanor. When a homestead exemption has been
25granted under this Section and an applicant then becomes a
26resident of a facility licensed under the Assisted Living and

 

 

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1Shared Housing Act, the Nursing Home Care Act, the Specialized
2Mental Health Rehabilitation Act of 2013, the ID/DD Community
3Care Act, or the MC/DD Act, the exemption shall be granted in
4subsequent years so long as the residence (i) continues to be
5occupied by the qualified applicant's spouse or (ii) if
6remaining unoccupied, is still owned by the qualified
7applicant for the homestead exemption, and no individual
8residing at the real property is or will be enrolled in a tax
9levying body eligible to place a levy on the property pursuant
10to Section 17-2 of the School Code.
11    When married persons maintain separate residences, the
12exemption provided for in this Section may be claimed by only
13one of such persons and for only one residence, and provided
14that no individual residing at the real property is or will be
15enrolled in a tax levying body eligible to place a levy on the
16property pursuant to Section 17-2 of the School Code. For
17taxable year 2023, in counties having less than 3,000,000
18inhabitants, to receive the exemption, a person shall submit
19an application by February 15, 2023 to the chief county
20assessment officer of the county in which the property is
21located. In counties having 3,000,000 or more inhabitants, for
22taxable year 2023 and all subsequent taxable years, to receive
23the exemption, a person may submit an application to the Chief
24County Assessment Officer of the county in which the property
25is located during such period as may be specified by the Chief
26County Assessment officer. The Chief County Assessment Officer

 

 

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1in counties of 3,000,000 or more inhabitants shall annually
2give notice of the application period by mail or by
3publication. In counties having less than 3,000,000
4inhabitants, beginning with taxable year 2023 and thereafter,
5a county may, by ordinance, establish a date for submission of
6applications that is different than February 15. The applicant
7shall submit with the application an affidavit of the
8applicant's total household income, age, marital status (and
9if married the name and address of the applicant's spouse, if
10known), confirmation that no individual residing at the real
11property is or will be enrolled in a tax levying body eligible
12to place a levy on the property pursuant to Section 17-2 of the
13School Code for the full taxable year, and principal dwelling
14place of members of the household on January 1 of the taxable
15year. The Department shall establish, by rule, a method for
16verifying the accuracy of affidavits filed by applicants under
17this Section, and the chief county assessment officer may
18conduct audits of any taxpayer claiming an exemption under
19this Section to verify that the taxpayer is eligible to
20receive the exemption. Each application shall contain or be
21verified by a written declaration that it is made under the
22penalties of perjury. A taxpayer's signing a fraudulent
23application under this Act is perjury, as defined in Section
2432-2 of the Criminal Code of 2012. The applications shall be
25clearly marked as applications for the Senior Citizens
26Homestead Exemption School Levy Cap and must contain a notice

 

 

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1that any taxpayer who receives the exemption is subject to an
2audit by the Chief County Assessment Officer.
3    Beginning January 1, 2023, notwithstanding any other
4provision to the contrary, in counties having fewer than
53,000,000 inhabitants, if an applicant fails to file the
6application required by this Section in a timely manner and
7this failure to file is due to a mental or physical condition
8sufficiently severe so as to render the applicant incapable of
9filing the application in a timely manner, the chief county
10assessment officer may extend the filing deadline for a period
11of 3 months. In order to receive the extension provided in this
12paragraph, the applicant shall provide the chief county
13assessment officer with a signed statement from the
14applicant's physician, advanced practice registered nurse, or
15physician assistant stating the nature and extent of the
16condition, and that, in the physician's, advanced practice
17registered nurse's, or physician assistant's opinion, the
18condition was so severe that it rendered the applicant
19incapable of filing the application in a timely manner.
20    For purposes of this Section, a person who will be 65 years
21of age during the current taxable year shall be eligible to
22apply for the Senior Citizens Homestead Exemption School Levy
23Cap during that taxable year. Application shall be made during
24the application period in effect for the county of his or her
25residence.
26    The chief county assessment officer may determine the

 

 

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

 

 

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1    (e) Each chief county assessment officer shall annually
2publish a notice of availability of the exemption provided
3under this Section. The notice shall be published at least 60
4days but no more than 75 days prior to the date on which the
5application must be submitted to the chief county assessment
6officer of the county in which the property is located. The
7notice shall appear in a newspaper of general circulation in
8the county.
9    Notwithstanding Sections 6 and 8 of the State Mandates
10Act, no reimbursement by the State is required for the
11implementation of any mandate created by this Section.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.