Full Text of HB5524 103rd General Assembly
HB5524 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5524 Introduced 2/9/2024, by Rep. Lilian Jiménez SYNOPSIS AS INTRODUCED: | | | Amends the Property Tax Code. Makes a technical change in a Section concerning the senior citizens assessment freeze homestead exemption. |
| |
| | A BILL FOR |
| | | | HB5524 | | LRB103 38628 HLH 68765 b |
|
| 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. Low-Income Senior Citizens Assessment Freeze | 8 | | Homestead Exemption. | 9 | | (a) This Section may be cited as the the Low-Income Senior | 10 | | Citizens 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 | 16 | | value of any added improvements which increased the assessed | 17 | | value of 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 |
| | | HB5524 | - 2 - | LRB103 38628 HLH 68765 b |
|
| 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 | 7 | | equalized assessed value of the residence is less than the | 8 | | equalized assessed value in the existing base year (provided | 9 | | that such equalized assessed value is not based on an assessed | 10 | | value that results from a temporary irregularity in the | 11 | | property that reduces the assessed value for one or more | 12 | | taxable years), then that subsequent taxable year shall become | 13 | | the base year until a new base year is established under the | 14 | | terms of this paragraph. For taxable year 1999 only, the Chief | 15 | | County Assessment Officer shall review (i) all taxable years | 16 | | for which the applicant applied and qualified for the | 17 | | exemption and (ii) the existing base year. The assessment | 18 | | officer shall select as the new base year the year with the | 19 | | lowest equalized assessed value. An equalized assessed value | 20 | | that is based on an assessed value that results from a | 21 | | temporary irregularity in the property that reduces the | 22 | | assessed value for one or more taxable years shall not be | 23 | | considered the lowest equalized assessed value. The selected | 24 | | year shall be the base year for taxable year 1999 and | 25 | | thereafter until a new base year is established under the | 26 | | terms of this paragraph. |
| | | HB5524 | - 3 - | LRB103 38628 HLH 68765 b |
|
| 1 | | "Chief County Assessment Officer" means the County | 2 | | Assessor or Supervisor of Assessments of the county in which | 3 | | the property is located. | 4 | | "Equalized assessed value" means the assessed value as | 5 | | equalized by the Illinois Department of Revenue. | 6 | | "Household" means the applicant, the spouse of the | 7 | | applicant, and all persons using the residence of the | 8 | | applicant as their principal place of residence. | 9 | | "Household income" means the combined income of the | 10 | | members of a household for the calendar year preceding the | 11 | | taxable year. | 12 | | "Income" has the same meaning as provided in Section 3.07 | 13 | | of the Senior Citizens and Persons with Disabilities Property | 14 | | Tax Relief Act, except that, beginning in assessment year | 15 | | 2001, "income" does not include veteran's benefits. | 16 | | "Internal Revenue Code of 1986" means the United States | 17 | | Internal Revenue Code of 1986 or any successor law or laws | 18 | | relating to federal income taxes in effect for the year | 19 | | preceding the taxable year. | 20 | | "Life care facility that qualifies as a cooperative" means | 21 | | a facility as defined in Section 2 of the Life Care Facilities | 22 | | Act. | 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; |
| | | HB5524 | - 4 - | LRB103 38628 HLH 68765 b |
|
| 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 | | As an alternative income valuation, a homeowner who is | 11 | | enrolled in any of the following programs may be presumed to | 12 | | have household income that does not exceed the maximum income | 13 | | limitation for that tax year as required by this Section: Aid | 14 | | to the Aged, Blind or Disabled (AABD) Program or the | 15 | | Supplemental Nutrition Assistance Program (SNAP), both of | 16 | | which are administered by the Department of Human Services; | 17 | | the Low Income Home Energy Assistance Program (LIHEAP), which | 18 | | is administered by the Department of Commerce and Economic | 19 | | Opportunity; The Benefit Access program, which is administered | 20 | | by the Department on Aging; and the Senior Citizens Real | 21 | | Estate Tax Deferral Program. | 22 | | A chief county assessment officer may indicate that he or | 23 | | she has verified an applicant's income eligibility for this | 24 | | exemption but may not report which program or programs, if | 25 | | any, enroll the applicant. Release of personal information | 26 | | submitted pursuant to this Section shall be deemed an |
| | | HB5524 | - 5 - | LRB103 38628 HLH 68765 b |
|
| 1 | | unwarranted invasion of personal privacy under the Freedom of | 2 | | Information Act. | 3 | | "Residence" means the principal dwelling place and | 4 | | appurtenant structures used for residential purposes in this | 5 | | State occupied on January 1 of the taxable year by a household | 6 | | and so much of the surrounding land, constituting the parcel | 7 | | upon which the dwelling place is situated, as is used for | 8 | | residential purposes. If the Chief County Assessment Officer | 9 | | has established a specific legal description for a portion of | 10 | | property constituting the residence, then that portion of | 11 | | property shall be deemed the residence for the purposes of | 12 | | this Section. | 13 | | "Taxable year" means the calendar year during which ad | 14 | | valorem property taxes payable in the next succeeding year are | 15 | | levied. | 16 | | (c) Beginning in taxable year 1994, a low-income senior | 17 | | citizens assessment freeze homestead exemption is granted for | 18 | | real property that is improved with a permanent structure that | 19 | | is occupied as a residence by an applicant who (i) is 65 years | 20 | | of age or older during the taxable year, (ii) has a household | 21 | | income that does not exceed the maximum income limitation, | 22 | | (iii) is liable for paying real property taxes on the | 23 | | property, and (iv) is an owner of record of the property or has | 24 | | a legal or equitable interest in the property as evidenced by a | 25 | | written instrument. This homestead exemption shall also apply | 26 | | to a leasehold interest in a parcel of property improved with a |
| | | HB5524 | - 6 - | LRB103 38628 HLH 68765 b |
|
| 1 | | permanent structure that is a single family residence that is | 2 | | occupied as a residence by a person who (i) is 65 years of age | 3 | | or older during the taxable year, (ii) has a household income | 4 | | that does not exceed the maximum income limitation, (iii) has | 5 | | a legal or equitable ownership interest in the property as | 6 | | lessee, and (iv) is liable for the payment of real property | 7 | | taxes on that property. | 8 | | In counties of 3,000,000 or more inhabitants, the amount | 9 | | of the exemption for all taxable years is the equalized | 10 | | assessed value of the residence in the taxable year for which | 11 | | application is made minus the base amount. In all other | 12 | | counties, the amount of the exemption is as follows: (i) | 13 | | through taxable year 2005 and for taxable year 2007 and | 14 | | thereafter, the amount of this exemption shall be the | 15 | | equalized assessed value of the residence in the taxable year | 16 | | for which application is made minus the base amount; and (ii) | 17 | | for taxable year 2006, the amount of the exemption is as | 18 | | 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 |
| | | HB5524 | - 7 - | LRB103 38628 HLH 68765 b |
|
| 1 | | made 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 | 6 | | made 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 | 11 | | made 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 | 16 | | made minus the base amount (ii) multiplied by 0.2. | 17 | | When the applicant is a surviving spouse of an applicant | 18 | | for a prior year for the same residence for which an exemption | 19 | | under this Section has been granted, the base year and base | 20 | | amount for that residence are the same as for the applicant for | 21 | | the prior year. | 22 | | Each year at the time the assessment books are certified | 23 | | to the County Clerk, the Board of Review or Board of Appeals | 24 | | shall give to the County Clerk a list of the assessed values of | 25 | | improvements on each parcel qualifying for this exemption that | 26 | | were added after the base year for this parcel and that |
| | | HB5524 | - 8 - | LRB103 38628 HLH 68765 b |
|
| 1 | | increased the assessed value of the property. | 2 | | In the case of land improved with an apartment building | 3 | | owned and operated as a cooperative or a building that is a | 4 | | life care facility that qualifies as a cooperative, the | 5 | | maximum reduction from the equalized assessed value of the | 6 | | property is limited to the sum of the reductions calculated | 7 | | for each unit occupied as a residence by a person or persons | 8 | | (i) 65 years of age or older, (ii) with a household income that | 9 | | does not exceed the maximum income limitation, (iii) who is | 10 | | liable, by contract with the owner or owners of record, for | 11 | | paying real property taxes on the property, and (iv) who is an | 12 | | owner of record of a legal or equitable interest in the | 13 | | cooperative apartment building, other than a leasehold | 14 | | interest. In the instance of a cooperative where a homestead | 15 | | exemption has been granted under this Section, the cooperative | 16 | | association or its management firm shall credit the savings | 17 | | resulting from that exemption only to the apportioned tax | 18 | | liability of the owner who qualified for the exemption. Any | 19 | | person who willfully refuses to credit that savings to an | 20 | | owner who qualifies for the exemption is guilty of a Class B | 21 | | misdemeanor. | 22 | | When a homestead exemption has been granted under this | 23 | | Section and an applicant then becomes a resident of a facility | 24 | | licensed under the Assisted Living and Shared Housing Act, the | 25 | | Nursing Home Care Act, the Specialized Mental Health | 26 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or |
| | | HB5524 | - 9 - | LRB103 38628 HLH 68765 b |
|
| 1 | | the MC/DD Act, the exemption shall be granted in subsequent | 2 | | years so long as the residence (i) continues to be occupied by | 3 | | the qualified applicant's spouse or (ii) if remaining | 4 | | unoccupied, is still owned by the qualified applicant for the | 5 | | homestead exemption. | 6 | | Beginning January 1, 1997, when an individual dies who | 7 | | would have qualified for an exemption under this Section, and | 8 | | the surviving spouse does not independently qualify for this | 9 | | exemption because of age, the exemption under this Section | 10 | | shall be granted to the surviving spouse for the taxable year | 11 | | preceding and the taxable year of the death, provided that, | 12 | | except for age, the surviving spouse meets all other | 13 | | qualifications for the granting of this exemption for those | 14 | | years. | 15 | | When married persons maintain separate residences, the | 16 | | exemption provided for in this Section may be claimed by only | 17 | | one of such persons and for only one residence. | 18 | | For taxable year 1994 only, in counties having less than | 19 | | 3,000,000 inhabitants, to receive the exemption, a person | 20 | | shall submit an application by February 15, 1995 to the Chief | 21 | | County Assessment Officer of the county in which the property | 22 | | is located. In counties having 3,000,000 or more inhabitants, | 23 | | for taxable year 1994 and all subsequent taxable years, to | 24 | | receive the exemption, a person may submit an application to | 25 | | the Chief County Assessment Officer of the county in which the | 26 | | property is located during such period as may be specified by |
| | | HB5524 | - 10 - | LRB103 38628 HLH 68765 b |
|
| 1 | | the Chief County Assessment Officer. The Chief County | 2 | | Assessment Officer in counties of 3,000,000 or more | 3 | | inhabitants shall annually give notice of the application | 4 | | period by mail or by publication. In counties having less than | 5 | | 3,000,000 inhabitants, beginning with taxable year 1995 and | 6 | | thereafter, to receive the exemption, a person shall submit an | 7 | | application by July 1 of each taxable year to the Chief County | 8 | | Assessment Officer of the county in which the property is | 9 | | located. A county may, by ordinance, establish a date for | 10 | | submission of applications that is different than July 1. The | 11 | | applicant shall submit with the application an affidavit of | 12 | | the applicant's total household income, age, marital status | 13 | | (and if married the name and address of the applicant's | 14 | | spouse, if known), and principal dwelling place of members of | 15 | | the household on January 1 of the taxable year. The Department | 16 | | shall establish, by rule, a method for verifying the accuracy | 17 | | of affidavits filed by applicants under this Section, and the | 18 | | Chief County Assessment Officer may conduct audits of any | 19 | | taxpayer claiming an exemption under this Section to verify | 20 | | that the taxpayer is eligible to receive the exemption. Each | 21 | | application shall contain or be verified by a written | 22 | | declaration that it is made under the penalties of perjury. A | 23 | | taxpayer's signing a fraudulent application under this Act is | 24 | | perjury, as defined in Section 32-2 of the Criminal Code of | 25 | | 2012. The applications shall be clearly marked as applications | 26 | | for the Low-Income Senior Citizens Assessment Freeze Homestead |
| | | HB5524 | - 11 - | LRB103 38628 HLH 68765 b |
|
| 1 | | Exemption and must contain a notice that any taxpayer who | 2 | | receives the exemption is subject to an audit by the Chief | 3 | | County Assessment Officer. | 4 | | Notwithstanding any other provision to the contrary, in | 5 | | counties having fewer than 3,000,000 inhabitants, if an | 6 | | applicant fails to file the application required by this | 7 | | Section in a timely manner and this failure to file is due to a | 8 | | mental or physical condition sufficiently severe so as to | 9 | | render the applicant incapable of filing the application in a | 10 | | timely manner, the Chief County Assessment Officer may extend | 11 | | the filing deadline for a period of 30 days after the applicant | 12 | | regains the capability to file the application, but in no case | 13 | | may the filing deadline be extended beyond 3 months of the | 14 | | original filing deadline. In order to receive the extension | 15 | | provided in this paragraph, the applicant shall provide the | 16 | | Chief County Assessment Officer with a signed statement from | 17 | | the applicant's physician, advanced practice registered nurse, | 18 | | or physician assistant stating the nature and extent of the | 19 | | condition, that, in the physician's, advanced practice | 20 | | registered nurse's, or physician assistant's opinion, the | 21 | | condition was so severe that it rendered the applicant | 22 | | incapable of filing the application in a timely manner, and | 23 | | the date on which the applicant regained the capability to | 24 | | file the application. | 25 | | Beginning January 1, 1998, notwithstanding any other | 26 | | provision to the contrary, in counties having fewer than |
| | | HB5524 | - 12 - | LRB103 38628 HLH 68765 b |
|
| 1 | | 3,000,000 inhabitants, if an applicant fails to file the | 2 | | application required by this Section in a timely manner and | 3 | | this failure to file is due to a mental or physical condition | 4 | | sufficiently severe so as to render the applicant incapable of | 5 | | filing the application in a timely manner, the Chief County | 6 | | Assessment Officer may extend the filing deadline for a period | 7 | | of 3 months. In order to receive the extension provided in this | 8 | | paragraph, the applicant shall provide the Chief County | 9 | | Assessment Officer with a signed statement from the | 10 | | applicant's physician, advanced practice registered nurse, or | 11 | | physician assistant stating the nature and extent of the | 12 | | condition, and that, in the physician's, advanced practice | 13 | | registered nurse's, or physician assistant's opinion, the | 14 | | condition was so severe that it rendered the applicant | 15 | | incapable of filing the application in a timely manner. | 16 | | In counties having less than 3,000,000 inhabitants, if an | 17 | | applicant was denied an exemption in taxable year 1994 and the | 18 | | denial occurred due to an error on the part of an assessment | 19 | | official, or his or her agent or employee, then beginning in | 20 | | taxable year 1997 the applicant's base year, for purposes of | 21 | | determining the amount of the exemption, shall be 1993 rather | 22 | | than 1994. In addition, in taxable year 1997, the applicant's | 23 | | exemption shall also include an amount equal to (i) the amount | 24 | | of any exemption denied to the applicant in taxable year 1995 | 25 | | as a result of using 1994, rather than 1993, as the base year, | 26 | | (ii) the amount of any exemption denied to the applicant in |
| | | HB5524 | - 13 - | LRB103 38628 HLH 68765 b |
|
| 1 | | taxable year 1996 as a result of using 1994, rather than 1993, | 2 | | as the base year, and (iii) the amount of the exemption | 3 | | erroneously denied for taxable year 1994. | 4 | | For purposes of this Section, a person who will be 65 years | 5 | | of age during the current taxable year shall be eligible to | 6 | | apply for the homestead exemption during that taxable year. | 7 | | Application shall be made during the application period in | 8 | | effect for the county of his or her residence. | 9 | | The Chief County Assessment Officer may determine the | 10 | | eligibility of a life care facility that qualifies as a | 11 | | cooperative to receive the benefits provided by this Section | 12 | | by use of an affidavit, application, visual inspection, | 13 | | questionnaire, or other reasonable method in order to insure | 14 | | that the tax savings resulting from the exemption are credited | 15 | | by the management firm to the apportioned tax liability of | 16 | | each qualifying resident. The Chief County Assessment Officer | 17 | | may request reasonable proof that the management firm has so | 18 | | credited that exemption. | 19 | | Except as provided in this Section, all information | 20 | | received by the chief county assessment officer or the | 21 | | Department from applications filed under this Section, or from | 22 | | any investigation conducted under the provisions of this | 23 | | Section, shall be confidential, except for official purposes | 24 | | or pursuant to official procedures for collection of any State | 25 | | or local tax or enforcement of any civil or criminal penalty or | 26 | | sanction imposed by this Act or by any statute or ordinance |
| | | HB5524 | - 14 - | LRB103 38628 HLH 68765 b |
|
| 1 | | imposing a State or local tax. Any person who divulges any such | 2 | | information in any manner, except in accordance with a proper | 3 | | judicial order, is guilty of a Class A misdemeanor. | 4 | | Nothing contained in this Section shall prevent the | 5 | | Director or chief county assessment officer from publishing or | 6 | | making available reasonable statistics concerning the | 7 | | operation of the exemption contained in this Section in which | 8 | | the contents of claims are grouped into aggregates in such a | 9 | | way that information contained in any individual claim shall | 10 | | not be disclosed. | 11 | | Notwithstanding any other provision of law, for taxable | 12 | | year 2017 and thereafter, in counties of 3,000,000 or more | 13 | | inhabitants, the amount of the exemption shall be the greater | 14 | | of (i) the amount of the exemption otherwise calculated under | 15 | | this Section or (ii) $2,000. | 16 | | (c-5) Notwithstanding any other provision of law, each | 17 | | chief county assessment officer may approve this exemption for | 18 | | the 2020 taxable year, without application, for any property | 19 | | that was approved for this exemption for the 2019 taxable | 20 | | year, provided that: | 21 | | (1) the county board has declared a local disaster as | 22 | | provided in the Illinois Emergency Management Agency Act | 23 | | related to the COVID-19 public health emergency; | 24 | | (2) the owner of record of the property as of January | 25 | | 1, 2020 is the same as the owner of record of the property | 26 | | as of January 1, 2019; |
| | | HB5524 | - 15 - | LRB103 38628 HLH 68765 b |
|
| 1 | | (3) the exemption for the 2019 taxable year has not | 2 | | been determined to be an erroneous exemption as defined by | 3 | | this Code; and | 4 | | (4) the applicant for the 2019 taxable year has not | 5 | | asked for the exemption to be removed for the 2019 or 2020 | 6 | | taxable years. | 7 | | Nothing in this subsection shall preclude or impair the | 8 | | authority of a chief county assessment officer to conduct | 9 | | audits of any taxpayer claiming an exemption under this | 10 | | Section to verify that the taxpayer is eligible to receive the | 11 | | exemption as provided elsewhere in this Section. | 12 | | (c-10) Notwithstanding any other provision of law, each | 13 | | chief county assessment officer may approve this exemption for | 14 | | the 2021 taxable year, without application, for any property | 15 | | that was approved for this exemption for the 2020 taxable | 16 | | year, if: | 17 | | (1) the county board has declared a local disaster as | 18 | | provided in the Illinois Emergency Management Agency Act | 19 | | related to the COVID-19 public health emergency; | 20 | | (2) the owner of record of the property as of January | 21 | | 1, 2021 is the same as the owner of record of the property | 22 | | as of January 1, 2020; | 23 | | (3) the exemption for the 2020 taxable year has not | 24 | | been determined to be an erroneous exemption as defined by | 25 | | this Code; and | 26 | | (4) the taxpayer for the 2020 taxable year has not |
| | | HB5524 | - 16 - | LRB103 38628 HLH 68765 b |
|
| 1 | | asked for the exemption to be removed for the 2020 or 2021 | 2 | | taxable years. | 3 | | Nothing in this subsection shall preclude or impair the | 4 | | authority of a chief county assessment officer to conduct | 5 | | audits of any taxpayer claiming an exemption under this | 6 | | Section to verify that the taxpayer is eligible to receive the | 7 | | exemption as provided elsewhere in this Section. | 8 | | (d) Each Chief County Assessment Officer shall annually | 9 | | publish a notice of availability of the exemption provided | 10 | | under this Section. The notice shall be published at least 60 | 11 | | days but no more than 75 days prior to the date on which the | 12 | | application must be submitted to the Chief County Assessment | 13 | | Officer of the county in which the property is located. The | 14 | | notice shall appear in a newspaper of general circulation in | 15 | | the county. | 16 | | Notwithstanding Sections 6 and 8 of the State Mandates | 17 | | Act, no reimbursement by the State is required for the | 18 | | implementation of any mandate created by this Section. | 19 | | (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21; | 20 | | 102-895, eff. 5-23-22.) |
|