093_HB2881

 
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 1        AN ACT concerning taxes.

 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
15    value of  the  residence  plus  the  first  year's  equalized
16    assessed  value of any added improvements which increased the
17    assessed 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
24    (i)  an  owner  of  record  of  the  property or had legal or
25    equitable interest in the property as evidenced by a  written
26    instrument  or  (ii)  had  a legal or equitable interest as a
27    lessee in the parcel  of  property  that  was  single  family
28    residence.  If  in  any subsequent taxable year for which the
29    applicant  applies  and  qualifies  for  the  exemption   the
30    equalized  assessed  value  of the residence is less than the
31    equalized assessed value in the existing base year  (provided
 
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 1    that  such  equalized  assessed  value  is  not  based  on an
 2    assessed value that results from a temporary irregularity  in
 3    the  property that reduces the assessed value for one or more
 4    taxable years),  then  that  subsequent  taxable  year  shall
 5    become  the  base  year  until a new base year is established
 6    under the terms of this paragraph.   For  taxable  year  1999
 7    only,  the  Chief  County Assessment Officer shall review (i)
 8    all  taxable  years  for  which  the  applicant  applied  and
 9    qualified for the exemption and (ii) the existing base year.
10    The assessment officer shall select as the new base year  the
11    year  with  the lowest equalized assessed value. An equalized
12    assessed value that  is  based  on  an  assessed  value  that
13    results  from  a  temporary irregularity in the property that
14    reduces the assessed value for  one  or  more  taxable  years
15    shall  not be considered the lowest equalized assessed value.
16    The selected year shall be the base  year  for  taxable  year
17    1999  and  thereafter  until  a  new base year is established
18    under the terms of this paragraph.
19        "Chief  County  Assessment  Officer"  means  the   County
20    Assessor  or Supervisor of Assessments of the county in which
21    the property is located.
22        "Equalized assessed value" means the  assessed  value  as
23    equalized by the Illinois Department of Revenue.
24        "Household"  means  the  applicant,  the  spouse  of  the
25    applicant,  and  all  persons  using  the  residence  of  the
26    applicant as their principal place of residence.
27        "Household  income"  means  the  combined  income  of the
28    members of a household for the calendar  year  preceding  the
29    taxable year.
30        "Income" has the same meaning as provided in Section 3.07
31    of  the  Senior  Citizens  and  Disabled Persons Property Tax
32    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
33    beginning  in assessment year 2001, "income" does not include
34    veteran's benefits.
 
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 1        "Internal Revenue Code of 1986" means the  United  States
 2    Internal  Revenue  Code  of 1986 or any successor law or laws
 3    relating to federal income  taxes  in  effect  for  the  year
 4    preceding the taxable year.
 5        "Life  care  facility  that  qualifies  as a cooperative"
 6    means a facility as defined in Section 2  of  the  Life  Care
 7    Facilities Act.
 8        "Residence"   means  the  principal  dwelling  place  and
 9    appurtenant structures used for residential purposes in  this
10    State  occupied  on  January  1  of  the  taxable  year  by a
11    household and so much of the surrounding  land,  constituting
12    the  parcel  upon which the dwelling place is situated, as is
13    used for residential purposes. If the Chief County Assessment
14    Officer has established a specific legal  description  for  a
15    portion  of  property  constituting  the residence, then that
16    portion of property shall be deemed  the  residence  for  the
17    purposes of this Section.
18        "Taxable  year"  means  the calendar year during which ad
19    valorem property taxes payable in the  next  succeeding  year
20    are levied.
21        (c)  Beginning  in  taxable  year 1994, a senior citizens
22    assessment freeze homestead exemption  is  granted  for  real
23    property  that is improved with a permanent structure that is
24    occupied as a residence by an applicant who (i) is  65  years
25    of age or older during the taxable year, (ii) has a household
26    income  of  $35,000  or  less  prior to taxable year 1999, or
27    $40,000 or less in taxable years year 1999 through 2002,  and
28    $50,000  or less in taxable year 2003 and thereafter, subject
29    to adjustment, (iii) is liable for paying real property taxes
30    on the property, and (iv)  is  an  owner  of  record  of  the
31    property or has a legal or equitable interest in the property
32    as   evidenced   by  a  written  instrument.  This  homestead
33    exemption shall also apply  to  a  leasehold  interest  in  a
34    parcel  of  property improved with a permanent structure that
 
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 1    is a single family residence that is occupied as a  residence
 2    by  a  person  who (i) is 65 years of age or older during the
 3    taxable year, (ii) has a household income of $35,000 or  less
 4    prior  to  taxable  year  1999, or $40,000 or less in taxable
 5    years year 1999 through 2002, and $50,000 or less in  taxable
 6    year  2003 and thereafter, subject to adjustment, (iii) has a
 7    legal or equitable ownership  interest  in  the  property  as
 8    lessee,  and  (iv) is liable for the payment of real property
 9    taxes on that property. Beginning in taxable year  2004,  the
10    amount  of  the  household  income  of the applicant shall be
11    subject to annual adjustments  equal  to  the  percentage  of
12    increase  in the previous calendar year in the Consumer Price
13    Index for All Urban Consumers for all items published by  the
14    federal Department of Labor or its successor agency.  If this
15    index ceases to be published, the Department of Revenue shall
16    use a comparable substitute index.
17        The  amount  of  this  exemption  shall  be the equalized
18    assessed value of the residence in the taxable year for which
19    application is made minus the base amount.
20        When the applicant is a surviving spouse of an  applicant
21    for  a  prior  year  for  the  same  residence  for  which an
22    exemption under this Section has been granted, the base  year
23    and  base  amount  for that residence are the same as for the
24    applicant for the prior year.
25        Each year at the time the assessment books are  certified
26    to  the County Clerk, the Board of Review or Board of Appeals
27    shall give to the County Clerk a list of the assessed  values
28    of  improvements on each parcel qualifying for this exemption
29    that were added after the base year for this parcel and  that
30    increased the assessed value of the property.
31        In  the  case of land improved with an apartment building
32    owned and operated as a cooperative or a building that  is  a
33    life  care  facility  that  qualifies  as  a cooperative, the
34    maximum reduction from the equalized assessed  value  of  the
 
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 1    property  is  limited to the sum of the reductions calculated
 2    for each unit occupied as a residence by a person or  persons
 3    (i)  65 years of age or older (ii) with a household income of
 4    $35,000 or less prior to taxable year  1999,  or  $40,000  or
 5    less  in taxable years year 1999 through 2002, and $50,000 or
 6    less  in  taxable  year  2003  and  thereafter,  subject   to
 7    adjustment,  (iii)  who is liable, by contract with the owner
 8    or owners of record, for paying real property  taxes  on  the
 9    property,  and  (iv)  who is an owner of record of a legal or
10    equitable interest in  the  cooperative  apartment  building,
11    other  than  a  leasehold interest. Beginning in taxable year
12    2004, the amount of the household  income  of  the  applicant
13    shall   be   subject  to  annual  adjustments  equal  to  the
14    percentage of increase in the previous calendar year  in  the
15    Consumer  Price  Index  for All Urban Consumers for all items
16    published by the federal Department of Labor or its successor
17    agency.  If this index ceases to be published, the Department
18    of Revenue shall use a comparable substitute index.   In  the
19    instance  of  a  cooperative  where a homestead exemption has
20    been granted under this Section, the cooperative  association
21    or  its  management  firm  shall credit the savings resulting
22    from that exemption only to the apportioned tax liability  of
23    the  owner  who  qualified for the exemption.  Any person who
24    willfully refuses to credit that  savings  to  an  owner  who
25    qualifies   for   the  exemption  is  guilty  of  a  Class  B
26    misdemeanor.
27        When a homestead exemption has been  granted  under  this
28    Section  and  an  applicant  then  becomes  a  resident  of a
29    facility licensed  under  the  Nursing  Home  Care  Act,  the
30    exemption shall be granted in subsequent years so long as the
31    residence  (i)  continues  to  be  occupied  by the qualified
32    applicant's spouse or (ii) if remaining unoccupied, is  still
33    owned by the qualified applicant for the homestead exemption.
34        Beginning  January  1,  1997, when an individual dies who
 
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 1    would have qualified for an exemption under this Section, and
 2    the surviving spouse does not independently qualify for  this
 3    exemption  because  of  age, the exemption under this Section
 4    shall be granted to the surviving spouse for the taxable year
 5    preceding and the taxable year of the death,  provided  that,
 6    except   for  age,  the  surviving  spouse  meets  all  other
 7    qualifications for the granting of this exemption  for  those
 8    years.
 9        When  married  persons  maintain separate residences, the
10    exemption provided for in this Section may be claimed by only
11    one of such persons and for only one residence.
12        For taxable year 1994 only, in counties having less  than
13    3,000,000  inhabitants,  to  receive  the exemption, a person
14    shall submit an application by February 15, 1995 to the Chief
15    County Assessment Officer of the county in which the property
16    is  located.   In   counties   having   3,000,000   or   more
17    inhabitants, for taxable year 1994 and all subsequent taxable
18    years,  to  receive  the  exemption,  a  person may submit an
19    application to the Chief County  Assessment  Officer  of  the
20    county in which the property is located during such period as
21    may be specified by the Chief County Assessment Officer.  The
22    Chief  County  Assessment Officer in counties of 3,000,000 or
23    more  inhabitants  shall  annually   give   notice   of   the
24    application  period  by  mail or by publication.  In counties
25    having  less  than  3,000,000  inhabitants,  beginning   with
26    taxable year 1995 and thereafter, to receive the exemption, a
27    person  shall submit an application by July 1 of each taxable
28    year to the Chief County Assessment Officer of the county  in
29    which  the  property is located.  A county may, by ordinance,
30    establish a date  for  submission  of  applications  that  is
31    different  than  July  1. The applicant shall submit with the
32    application an affidavit of the applicant's  total  household
33    income,  age,  marital  status  (and  if married the name and
34    address of the applicant's spouse, if known),  and  principal
 
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 1    dwelling  place  of  members of the household on January 1 of
 2    the taxable year. The Department shall establish, by rule,  a
 3    method  for  verifying  the  accuracy  of affidavits filed by
 4    applicants under this  Section.  The  applications  shall  be
 5    clearly  marked  as  applications  for  the  Senior  Citizens
 6    Assessment Freeze Homestead Exemption.
 7        Notwithstanding  any  other provision to the contrary, in
 8    counties having  fewer  than  3,000,000  inhabitants,  if  an
 9    applicant  fails  to  file  the  application required by this
10    Section in a timely manner and this failure to file is due to
11    a mental or physical condition sufficiently severe so  as  to
12    render the applicant incapable of filing the application in a
13    timely manner, the Chief County Assessment Officer may extend
14    the  filing  deadline  for  a  period  of  30  days after the
15    applicant regains the capability to file the application, but
16    in no case may the  filing  deadline  be  extended  beyond  3
17    months  of the original filing deadline.  In order to receive
18    the extension provided in this paragraph, the applicant shall
19    provide the Chief County Assessment  Officer  with  a  signed
20    statement  from  the applicant's physician stating the nature
21    and  extent  of  the  condition,  that,  in  the  physician's
22    opinion, the condition was so severe  that  it  rendered  the
23    applicant  incapable  of  filing  the application in a timely
24    manner, and the date on  which  the  applicant  regained  the
25    capability to file the application.
26        Beginning  January  1,  1998,  notwithstanding  any other
27    provision to the contrary,  in  counties  having  fewer  than
28    3,000,000  inhabitants,  if  an  applicant  fails to file the
29    application required by this Section in a timely  manner  and
30    this failure to file is due to a mental or physical condition
31    sufficiently  severe  so as to render the applicant incapable
32    of filing the application  in  a  timely  manner,  the  Chief
33    County  Assessment Officer may extend the filing deadline for
34    a period of 3 months.  In  order  to  receive  the  extension
 
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 1    provided  in  this paragraph, the applicant shall provide the
 2    Chief County Assessment Officer with a signed statement  from
 3    the  applicant's  physician  stating the nature and extent of
 4    the condition, and that,  in  the  physician's  opinion,  the
 5    condition  was  so  severe  that  it  rendered  the applicant
 6    incapable of filing the application in a timely manner.
 7        In counties having less than 3,000,000 inhabitants, if an
 8    applicant was denied an exemption in taxable  year  1994  and
 9    the  denial  occurred  due  to  an  error  on  the part of an
10    assessment official, or his or her agent  or  employee,  then
11    beginning in taxable year 1997 the applicant's base year, for
12    purposes of determining the amount of the exemption, shall be
13    1993 rather than 1994. In addition, in taxable year 1997, the
14    applicant's  exemption  shall also include an amount equal to
15    (i) the amount of any exemption denied to  the  applicant  in
16    taxable  year  1995  as  a  result of using 1994, rather than
17    1993, as the base year, (ii)  the  amount  of  any  exemption
18    denied  to  the applicant in taxable year 1996 as a result of
19    using 1994, rather than 1993, as the base year, and (iii) the
20    amount of the exemption erroneously denied for  taxable  year
21    1994.
22        For  purposes  of  this  Section, a person who will be 65
23    years of  age  during  the  current  taxable  year  shall  be
24    eligible  to  apply  for  the homestead exemption during that
25    taxable  year.   Application  shall  be   made   during   the
26    application  period  in  effect  for the county of his or her
27    residence.
28        The Chief County Assessment  Officer  may  determine  the
29    eligibility  of  a  life  care  facility  that qualifies as a
30    cooperative to receive the benefits provided by this  Section
31    by  use  of  an  affidavit,  application,  visual inspection,
32    questionnaire, or other reasonable method in order to  insure
33    that  the  tax  savings  resulting  from  the  exemption  are
34    credited  by  the  management  firm  to  the  apportioned tax
 
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 1    liability of each  qualifying  resident.   The  Chief  County
 2    Assessment  Officer  may  request  reasonable  proof that the
 3    management firm has so credited that exemption.
 4        Except as  provided  in  this  Section,  all  information
 5    received  by  the  chief  county  assessment  officer  or the
 6    Department from applications filed  under  this  Section,  or
 7    from any investigation conducted under the provisions of this
 8    Section,  shall be confidential, except for official purposes
 9    or pursuant to official  procedures  for  collection  of  any
10    State  or  local  tax or enforcement of any civil or criminal
11    penalty or sanction imposed by this Act or by any statute  or
12    ordinance  imposing  a  State  or  local  tax. Any person who
13    divulges any  such  information  in  any  manner,  except  in
14    accordance with a proper judicial order, is guilty of a Class
15    A misdemeanor.
16        Nothing  contained  in  this  Section  shall  prevent the
17    Director or chief county assessment officer  from  publishing
18    or  making  available  reasonable  statistics  concerning the
19    operation of the exemption contained in this Section in which
20    the contents of claims are grouped into aggregates in such  a
21    way  that information contained in any individual claim shall
22    not be disclosed.
23        (d)  Each Chief County Assessment Officer shall  annually
24    publish  a  notice  of availability of the exemption provided
25    under this Section.  The notice shall be published  at  least
26    60  days  but no more than 75 days prior to the date on which
27    the  application  must  be  submitted  to  the  Chief  County
28    Assessment Officer of the county in  which  the  property  is
29    located.   The  notice shall appear in a newspaper of general
30    circulation in the county.
31        (e)  Notwithstanding  Sections  6  and  8  of  the  State
32    Mandates Act, no reimbursement by the State is  required  for
33    the implementation of any mandate created by this Section.
34    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
 
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 1    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
 2    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
 3    eff. 6-30-99; 91-819, eff. 6-13-00.)

 4        Section 90.  The State Mandates Act is amended by  adding
 5    Section 8.27 as follows:

 6        (30 ILCS 805/8.27 new)
 7        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
 8    and  8 of this Act, no reimbursement by the State is required
 9    for the implementation of any mandate created by  the  Senior
10    Citizens  Assessment Freeze Homestead Exemption under Section
11    15-172 of the Property Tax Code.

12        Section 99.  Effective date.  This Act takes effect  upon
13    becoming law.