Illinois General Assembly - Full Text of HB4770
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Full Text of HB4770  102nd General Assembly

HB4770 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4770

 

Introduced 1/27/2022, by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-172

    Amends the Property Tax Code. Provides that the tax due for property that has been granted a senior citizens assessment freeze homestead exemption shall not exceed the tax liability for the property in the base year. Provides that the tax collected from that property shall be distributed to the individual taxing districts on a pro rata basis in accordance with each taxing district's proportionate share of the property's total tax liability. Effective immediately.


LRB102 25471 HLH 34758 b

 

 

A BILL FOR

 

HB4770LRB102 25471 HLH 34758 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
16value of any added improvements which increased the assessed
17value of the 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
7equalized assessed value of the residence is less than the
8equalized assessed value in the existing base year (provided
9that such equalized assessed value is not based on an assessed
10value that results from a temporary irregularity in the
11property that reduces the assessed value for one or more
12taxable years), then that subsequent taxable year shall become
13the base year until a new base year is established under the
14terms of this paragraph. For taxable year 1999 only, the Chief
15County Assessment Officer shall review (i) all taxable years
16for which the applicant applied and qualified for the
17exemption and (ii) the existing base year. The assessment
18officer shall select as the new base year the year with the
19lowest equalized assessed value. An equalized assessed value
20that is based on an assessed value that results from a
21temporary irregularity in the property that reduces the
22assessed value for one or more taxable years shall not be
23considered the lowest equalized assessed value. The selected
24year shall be the base year for taxable year 1999 and
25thereafter until a new base year is established under the
26terms of this paragraph.

 

 

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1    "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4    "Equalized assessed value" means the assessed value as
5equalized by the Illinois Department of Revenue.
6    "Household" means the applicant, the spouse of the
7applicant, and all persons using the residence of the
8applicant as their principal place of residence.
9    "Household income" means the combined income of the
10members of a household for the calendar year preceding the
11taxable year.
12    "Income" has the same meaning as provided in Section 3.07
13of the Senior Citizens and Persons with Disabilities Property
14Tax Relief Act, except that, beginning in assessment year
152001, "income" does not include veteran's benefits.
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;
2        (5) $55,000 in taxable years 2008 through 2016;
3        (6) for taxable year 2017, (i) $65,000 for qualified
4    property located in a county with 3,000,000 or more
5    inhabitants and (ii) $55,000 for qualified property
6    located in a county with fewer than 3,000,000 inhabitants;
7    and
8        (7) for taxable years 2018 and thereafter, $65,000 for
9    all qualified property.
10    "Residence" means the principal dwelling place and
11appurtenant structures used for residential purposes in this
12State occupied on January 1 of the taxable year by a household
13and so much of the surrounding land, constituting the parcel
14upon which the dwelling place is situated, as is used for
15residential purposes. If the Chief County Assessment Officer
16has established a specific legal description for a portion of
17property constituting the residence, then that portion of
18property shall be deemed the residence for the purposes of
19this Section.
20    "Taxable year" means the calendar year during which ad
21valorem property taxes payable in the next succeeding year are
22levied.
23    (c) Beginning in taxable year 1994, a senior citizens
24assessment freeze homestead exemption is granted for real
25property that is improved with a permanent structure that is
26occupied as a residence by an applicant who (i) is 65 years of

 

 

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1age or older during the taxable year, (ii) has a household
2income that does not exceed the maximum income limitation,
3(iii) is liable for paying real property taxes on the
4property, and (iv) is an owner of record of the property or has
5a legal or equitable interest in the property as evidenced by a
6written instrument. This homestead exemption shall also apply
7to a leasehold interest in a parcel of property improved with a
8permanent structure that is a single family residence that is
9occupied as a residence by a person who (i) is 65 years of age
10or older during the taxable year, (ii) has a household income
11that does not exceed the maximum income limitation, (iii) has
12a legal or equitable ownership interest in the property as
13lessee, and (iv) is liable for the payment of real property
14taxes on that property.
15    In counties of 3,000,000 or more inhabitants, the amount
16of the exemption for all taxable years is the equalized
17assessed value of the residence in the taxable year for which
18application is made minus the base amount. In all other
19counties, the amount of the exemption is as follows: (i)
20through taxable year 2005 and for taxable year 2007 through
212022 and thereafter, the amount of this exemption shall be the
22equalized assessed value of the residence in the taxable year
23for which application is made minus the base amount; and (ii)
24for taxable year 2006, the amount of the exemption is as
25follows:
26        (1) For an applicant who has a household income of

 

 

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1    $45,000 or less, the amount of the exemption is the
2    equalized assessed value of the residence in the taxable
3    year for which application is made minus the base amount.
4        (2) For an applicant who has a household income
5    exceeding $45,000 but not exceeding $46,250, the amount of
6    the exemption is (i) the equalized assessed value of the
7    residence in the taxable year for which application is
8    made minus the base amount (ii) multiplied by 0.8.
9        (3) For an applicant who has a household income
10    exceeding $46,250 but not exceeding $47,500, the amount of
11    the exemption is (i) the equalized assessed value of the
12    residence in the taxable year for which application is
13    made minus the base amount (ii) multiplied by 0.6.
14        (4) For an applicant who has a household income
15    exceeding $47,500 but not exceeding $48,750, the amount of
16    the exemption is (i) the equalized assessed value of the
17    residence in the taxable year for which application is
18    made minus the base amount (ii) multiplied by 0.4.
19        (5) For an applicant who has a household income
20    exceeding $48,750 but not exceeding $50,000, the amount of
21    the exemption is (i) the equalized assessed value of the
22    residence in the taxable year for which application is
23    made minus the base amount (ii) multiplied by 0.2.
24    Beginning in taxable year 2023, the amount of tax due
25under this Code for property that has been granted an
26exemption under this Section shall not exceed the tax

 

 

HB4770- 7 -LRB102 25471 HLH 34758 b

1liability for the property in the base year. The tax collected
2from property receiving an exemption under this Section shall
3be distributed to the individual taxing districts on a pro
4rata basis in accordance with each taxing district's
5proportionate share of the property's total tax liability.
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
12to the County Clerk, the Board of Review or Board of Appeals
13shall give 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
20maximum reduction from the equalized assessed value of the
21property is limited to the sum of the reductions calculated
22for each unit occupied as a residence by a person or persons
23(i) 65 years of age or older, (ii) with a household income that
24does not exceed the maximum income limitation, (iii) who is
25liable, by contract with the owner or owners of record, for
26paying real property taxes on the property, and (iv) who is an

 

 

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1owner of record of a legal or equitable interest in the
2cooperative apartment building, other than a leasehold
3interest. In the instance of a cooperative where a homestead
4exemption has been granted under this Section, the cooperative
5association or its management firm shall credit the savings
6resulting from that exemption only to the apportioned tax
7liability of the owner who qualified for the exemption. Any
8person who willfully refuses to credit that savings to an
9owner who qualifies for the exemption is guilty of a Class B
10misdemeanor.
11    When a homestead exemption has been granted under this
12Section and an applicant then becomes a resident of a facility
13licensed under the Assisted Living and Shared Housing Act, the
14Nursing Home Care Act, the Specialized Mental Health
15Rehabilitation Act of 2013, the ID/DD Community Care Act, or
16the MC/DD Act, the exemption shall be granted in subsequent
17years so long as the residence (i) continues to be occupied by
18the qualified applicant's spouse or (ii) if remaining
19unoccupied, is still owned by the qualified applicant for the
20homestead exemption.
21    Beginning January 1, 1997, when an individual dies who
22would have qualified for an exemption under this Section, and
23the surviving spouse does not independently qualify for this
24exemption because of age, the exemption under this Section
25shall be granted to the surviving spouse for the taxable year
26preceding and the taxable year of the death, provided that,

 

 

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1except for age, the surviving spouse meets all other
2qualifications for the granting of this exemption for those
3years.
4    When married persons maintain separate residences, the
5exemption provided for in this Section may be claimed by only
6one of such persons and for only one residence.
7    For taxable year 1994 only, in counties having less than
83,000,000 inhabitants, to receive the exemption, a person
9shall submit an application by February 15, 1995 to the Chief
10County Assessment Officer of the county in which the property
11is located. In counties having 3,000,000 or more inhabitants,
12for taxable year 1994 and all subsequent taxable years, to
13receive the exemption, a person may submit an application to
14the Chief County Assessment Officer of the county in which the
15property is located during such period as may be specified by
16the Chief County Assessment Officer. The Chief County
17Assessment Officer in counties of 3,000,000 or more
18inhabitants shall annually give notice of the application
19period by mail or by publication. In counties having less than
203,000,000 inhabitants, beginning with taxable year 1995 and
21thereafter, to receive the exemption, a person shall submit an
22application by July 1 of each taxable year to the Chief County
23Assessment Officer of the county in which the property is
24located. A county may, by ordinance, establish a date for
25submission of applications that is different than July 1. The
26applicant shall submit with the application an affidavit of

 

 

HB4770- 10 -LRB102 25471 HLH 34758 b

1the applicant's total household income, age, marital status
2(and if married the name and address of the applicant's
3spouse, if known), and principal dwelling place of members of
4the household on January 1 of the taxable year. The Department
5shall establish, by rule, a method for verifying the accuracy
6of affidavits filed by applicants under this Section, and the
7Chief County Assessment Officer may conduct audits of any
8taxpayer claiming an exemption under this Section to verify
9that the taxpayer is eligible to receive the exemption. Each
10application shall contain or be verified by a written
11declaration that it is made under the penalties of perjury. A
12taxpayer's signing a fraudulent application under this Act is
13perjury, as defined in Section 32-2 of the Criminal Code of
142012. The applications shall be clearly marked as applications
15for the Senior Citizens Assessment Freeze Homestead Exemption
16and must contain a notice that any taxpayer who receives the
17exemption is subject to an audit by the Chief County
18Assessment Officer.
19    Notwithstanding any other provision to the contrary, in
20counties having fewer than 3,000,000 inhabitants, if an
21applicant fails to file the application required by this
22Section in a timely manner and this failure to file is due to a
23mental or physical condition sufficiently severe so as to
24render the applicant incapable of filing the application in a
25timely manner, the Chief County Assessment Officer may extend
26the filing deadline for a period of 30 days after the applicant

 

 

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1regains the capability to file the application, but in no case
2may the filing deadline be extended beyond 3 months of the
3original filing deadline. In order to receive the extension
4provided in this paragraph, the applicant shall provide the
5Chief County Assessment Officer with a signed statement from
6the applicant's physician, advanced practice registered nurse,
7or physician assistant stating the nature and extent of the
8condition, that, in the physician's, advanced practice
9registered nurse's, or physician assistant's opinion, the
10condition was so severe that it rendered the applicant
11incapable of filing the application in a timely manner, and
12the date on which the applicant regained the capability to
13file the application.
14    Beginning January 1, 1998, notwithstanding any other
15provision to the contrary, in counties having fewer than
163,000,000 inhabitants, if an applicant fails to file the
17application required by this Section in a timely manner and
18this failure to file is due to a mental or physical condition
19sufficiently severe so as to render the applicant incapable of
20filing the application in a timely manner, the Chief County
21Assessment Officer may extend the filing deadline for a period
22of 3 months. In order to receive the extension provided in this
23paragraph, the applicant shall provide the Chief County
24Assessment Officer with a signed statement from the
25applicant's physician, advanced practice registered nurse, or
26physician assistant stating the nature and extent of the

 

 

HB4770- 12 -LRB102 25471 HLH 34758 b

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

 

 

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

 

 

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1year 2017 and thereafter, in counties of 3,000,000 or more
2inhabitants, the amount of the exemption shall be the greater
3of (i) the amount of the exemption otherwise calculated under
4this Section or (ii) $2,000.
5    (c-5) Notwithstanding any other provision of law, each
6chief county assessment officer may approve this exemption for
7the 2020 taxable year, without application, for any property
8that was approved for this exemption for the 2019 taxable
9year, provided that:
10        (1) the county board has declared a local disaster as
11    provided in the Illinois Emergency Management Agency Act
12    related to the COVID-19 public health emergency;
13        (2) the owner of record of the property as of January
14    1, 2020 is the same as the owner of record of the property
15    as of January 1, 2019;
16        (3) the exemption for the 2019 taxable year has not
17    been determined to be an erroneous exemption as defined by
18    this Code; and
19        (4) the applicant for the 2019 taxable year has not
20    asked for the exemption to be removed for the 2019 or 2020
21    taxable years.
22    Nothing in this subsection shall preclude or impair the
23authority of a chief county assessment officer to conduct
24audits of any taxpayer claiming an exemption under this
25Section to verify that the taxpayer is eligible to receive the
26exemption as provided elsewhere in this Section.

 

 

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1    (c-10) Notwithstanding any other provision of law, each
2chief county assessment officer may approve this exemption for
3the 2021 taxable year, without application, for any property
4that was approved for this exemption for the 2020 taxable
5year, if:
6        (1) the county board has declared a local disaster as
7    provided in the Illinois Emergency Management Agency Act
8    related to the COVID-19 public health emergency;
9        (2) the owner of record of the property as of January
10    1, 2021 is the same as the owner of record of the property
11    as of January 1, 2020;
12        (3) the exemption for the 2020 taxable year has not
13    been determined to be an erroneous exemption as defined by
14    this Code; and
15        (4) the taxpayer for the 2020 taxable year has not
16    asked for the exemption to be removed for the 2020 or 2021
17    taxable years.
18    Nothing in this subsection shall preclude or impair the
19authority of a chief county assessment officer to conduct
20audits of any taxpayer claiming an exemption under this
21Section to verify that the taxpayer is eligible to receive the
22exemption as provided elsewhere in this Section.
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

 

 

HB4770- 16 -LRB102 25471 HLH 34758 b

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
6Act, no reimbursement by the State is required for the
7implementation of any mandate created by this Section.
8(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.