093_HB3885

                                     LRB093 13596 SJM 18971 b

 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
 
                            -2-      LRB093 13596 SJM 18971 b
 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.
 
                            -3-      LRB093 13596 SJM 18971 b
 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, (iii) is
29    liable for paying real property taxes on  the  property,  and
30    (iv)  is an owner of record of the property or has a legal or
31    equitable interest in the property as evidenced by a  written
32    instrument.  This  homestead  exemption shall also apply to a
33    leasehold interest in a parcel of property  improved  with  a
34    permanent structure that is a single family residence that is
 
                            -4-      LRB093 13596 SJM 18971 b
 1    occupied  as  a  residence by a person who (i) is 65 years of
 2    age or older during the taxable year, (ii)  has  a  household
 3    income  of  $35,000  or  less  prior to taxable year 1999, or
 4    $40,000 or less in taxable years year 1999 through 2002,  and
 5    $50,000  or  less  in taxable year 2003 and thereafter, (iii)
 6    has a legal or equitable ownership interest in  the  property
 7    as  lessee,  and  (iv)  is  liable  for  the  payment of real
 8    property taxes on that property.
 9        The amount of  this  exemption  shall  be  the  equalized
10    assessed value of the residence in the taxable year for which
11    application is made minus the base amount.
12        When  the applicant is a surviving spouse of an applicant
13    for a  prior  year  for  the  same  residence  for  which  an
14    exemption  under this Section has been granted, the base year
15    and base amount for that residence are the same  as  for  the
16    applicant for the prior year.
17        Each  year at the time the assessment books are certified
18    to the County Clerk, the Board of Review or Board of  Appeals
19    shall  give to the County Clerk a list of the assessed values
20    of improvements on each parcel qualifying for this  exemption
21    that  were added after the base year for this parcel and that
22    increased the assessed value of the property.
23        In the case of land improved with an  apartment  building
24    owned  and  operated as a cooperative or a building that is a
25    life care facility  that  qualifies  as  a  cooperative,  the
26    maximum  reduction  from  the equalized assessed value of the
27    property is limited to the sum of the  reductions  calculated
28    for  each unit occupied as a residence by a person or persons
29    (i) 65 years of age or older, (ii) with a household income of
30    $35,000 or less prior to taxable year  1999,  or  $40,000  or
31    less  in taxable years year 1999 through 2002, and $50,000 or
32    less in taxable  year  2003  and  thereafter,  (iii)  who  is
33    liable,  by  contract with the owner or owners of record, for
34    paying real property taxes on the property, and (iv)  who  is
 
                            -5-      LRB093 13596 SJM 18971 b
 1    an  owner  of  record of a legal or equitable interest in the
 2    cooperative  apartment  building,  other  than  a   leasehold
 3    interest.  In the instance of a cooperative where a homestead
 4    exemption  has  been  granted   under   this   Section,   the
 5    cooperative  association  or its management firm shall credit
 6    the  savings  resulting  from  that  exemption  only  to  the
 7    apportioned tax liability of the owner who qualified for  the
 8    exemption.   Any  person who willfully refuses to credit that
 9    savings to an owner who qualifies for the exemption is guilty
10    of a Class B misdemeanor.
11        When a homestead exemption has been  granted  under  this
12    Section  and  an  applicant  then  becomes  a  resident  of a
13    facility licensed  under  the  Nursing  Home  Care  Act,  the
14    exemption shall be granted in subsequent years so long as the
15    residence  (i)  continues  to  be  occupied  by the qualified
16    applicant's spouse or (ii) if remaining unoccupied, is  still
17    owned by the qualified applicant for the homestead exemption.
18        Beginning  January  1,  1997, when an individual dies who
19    would have qualified for an exemption under this Section, and
20    the surviving spouse does not independently qualify for  this
21    exemption  because  of  age, the exemption under this Section
22    shall be granted to the surviving spouse for the taxable year
23    preceding and the taxable year of the death,  provided  that,
24    except   for  age,  the  surviving  spouse  meets  all  other
25    qualifications for the granting of this exemption  for  those
26    years.
27        When  married  persons  maintain separate residences, the
28    exemption provided for in this Section may be claimed by only
29    one of such persons and for only one residence.
30        For taxable year 1994 only, in counties having less  than
31    3,000,000  inhabitants,  to  receive  the exemption, a person
32    shall submit an application by February 15, 1995 to the Chief
33    County Assessment Officer of the county in which the property
34    is  located.   In   counties   having   3,000,000   or   more
 
                            -6-      LRB093 13596 SJM 18971 b
 1    inhabitants, for taxable year 1994 and all subsequent taxable
 2    years,  to  receive  the  exemption,  a  person may submit an
 3    application to the Chief County  Assessment  Officer  of  the
 4    county in which the property is located during such period as
 5    may be specified by the Chief County Assessment Officer.  The
 6    Chief  County  Assessment Officer in counties of 3,000,000 or
 7    more  inhabitants  shall  annually   give   notice   of   the
 8    application  period  by  mail or by publication.  In counties
 9    having  less  than  3,000,000  inhabitants,  beginning   with
10    taxable year 1995 and thereafter, to receive the exemption, a
11    person  shall submit an application by July 1 of each taxable
12    year to the Chief County Assessment Officer of the county  in
13    which  the  property is located.  A county may, by ordinance,
14    establish a date  for  submission  of  applications  that  is
15    different  than  July  1. The applicant shall submit with the
16    application an affidavit of the applicant's  total  household
17    income,  age,  marital  status  (and  if married the name and
18    address of the applicant's spouse, if known),  and  principal
19    dwelling  place  of  members of the household on January 1 of
20    the taxable year. The Department shall establish, by rule,  a
21    method  for  verifying  the  accuracy  of affidavits filed by
22    applicants under this  Section.  The  applications  shall  be
23    clearly  marked  as  applications  for  the  Senior  Citizens
24    Assessment Freeze Homestead Exemption.
25        Notwithstanding  any  other provision to the contrary, in
26    counties having  fewer  than  3,000,000  inhabitants,  if  an
27    applicant  fails  to  file  the  application required by this
28    Section in a timely manner and this failure to file is due to
29    a mental or physical condition sufficiently severe so  as  to
30    render the applicant incapable of filing the application in a
31    timely manner, the Chief County Assessment Officer may extend
32    the  filing  deadline  for  a  period  of  30  days after the
33    applicant regains the capability to file the application, but
34    in no case may the  filing  deadline  be  extended  beyond  3
 
                            -7-      LRB093 13596 SJM 18971 b
 1    months  of the original filing deadline.  In order to receive
 2    the extension provided in this paragraph, the applicant shall
 3    provide the Chief County Assessment  Officer  with  a  signed
 4    statement  from  the applicant's physician stating the nature
 5    and  extent  of  the  condition,  that,  in  the  physician's
 6    opinion, the condition was so severe  that  it  rendered  the
 7    applicant  incapable  of  filing  the application in a timely
 8    manner, and the date on  which  the  applicant  regained  the
 9    capability to file the application.
10        Beginning  January  1,  1998,  notwithstanding  any other
11    provision to the contrary,  in  counties  having  fewer  than
12    3,000,000  inhabitants,  if  an  applicant  fails to file the
13    application required by this Section in a timely  manner  and
14    this failure to file is due to a mental or physical condition
15    sufficiently  severe  so as to render the applicant incapable
16    of filing the application  in  a  timely  manner,  the  Chief
17    County  Assessment Officer may extend the filing deadline for
18    a period of 3 months.  In  order  to  receive  the  extension
19    provided  in  this paragraph, the applicant shall provide the
20    Chief County Assessment Officer with a signed statement  from
21    the  applicant's  physician  stating the nature and extent of
22    the condition, and that,  in  the  physician's  opinion,  the
23    condition  was  so  severe  that  it  rendered  the applicant
24    incapable of filing the application in a timely manner.
25        In counties having less than 3,000,000 inhabitants, if an
26    applicant was denied an exemption in taxable  year  1994  and
27    the  denial  occurred  due  to  an  error  on  the part of an
28    assessment official, or his or her agent  or  employee,  then
29    beginning in taxable year 1997 the applicant's base year, for
30    purposes of determining the amount of the exemption, shall be
31    1993 rather than 1994. In addition, in taxable year 1997, the
32    applicant's  exemption  shall also include an amount equal to
33    (i) the amount of any exemption denied to  the  applicant  in
34    taxable  year  1995  as  a  result of using 1994, rather than
 
                            -8-      LRB093 13596 SJM 18971 b
 1    1993, as the base year, (ii)  the  amount  of  any  exemption
 2    denied  to  the applicant in taxable year 1996 as a result of
 3    using 1994, rather than 1993, as the base year, and (iii) the
 4    amount of the exemption erroneously denied for  taxable  year
 5    1994.
 6        For  purposes  of  this  Section, a person who will be 65
 7    years of  age  during  the  current  taxable  year  shall  be
 8    eligible  to  apply  for  the homestead exemption during that
 9    taxable  year.   Application  shall  be   made   during   the
10    application  period  in  effect  for the county of his or her
11    residence.
12        The Chief County Assessment  Officer  may  determine  the
13    eligibility  of  a  life  care  facility  that qualifies as a
14    cooperative to receive the benefits provided by this  Section
15    by  use  of  an  affidavit,  application,  visual inspection,
16    questionnaire, or other reasonable method in order to  insure
17    that  the  tax  savings  resulting  from  the  exemption  are
18    credited  by  the  management  firm  to  the  apportioned tax
19    liability of each  qualifying  resident.   The  Chief  County
20    Assessment  Officer  may  request  reasonable  proof that the
21    management firm has so credited that exemption.
22        Except as  provided  in  this  Section,  all  information
23    received  by  the  chief  county  assessment  officer  or the
24    Department from applications filed  under  this  Section,  or
25    from any investigation conducted under the provisions of this
26    Section,  shall be confidential, except for official purposes
27    or pursuant to official  procedures  for  collection  of  any
28    State  or  local  tax or enforcement of any civil or criminal
29    penalty or sanction imposed by this Act or by any statute  or
30    ordinance  imposing  a  State  or  local  tax. Any person who
31    divulges any  such  information  in  any  manner,  except  in
32    accordance with a proper judicial order, is guilty of a Class
33    A misdemeanor.
34        Nothing  contained  in  this  Section  shall  prevent the
 
                            -9-      LRB093 13596 SJM 18971 b
 1    Director or chief county assessment officer  from  publishing
 2    or  making  available  reasonable  statistics  concerning the
 3    operation of the exemption contained in this Section in which
 4    the contents of claims are grouped into aggregates in such  a
 5    way  that information contained in any individual claim shall
 6    not be disclosed.
 7        (d)  Each Chief County Assessment Officer shall  annually
 8    publish  a  notice  of availability of the exemption provided
 9    under this Section.  The notice shall be published  at  least
10    60  days  but no more than 75 days prior to the date on which
11    the  application  must  be  submitted  to  the  Chief  County
12    Assessment Officer of the county in  which  the  property  is
13    located.   The  notice shall appear in a newspaper of general
14    circulation in the county.
15        (e)  Notwithstanding  Sections  6  and  8  of  the  State
16    Mandates Act, no reimbursement by the State is  required  for
17    the implementation of any mandate created by this Section.
18    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
19    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
20    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
21    eff. 6-30-99; 91-819, eff. 6-13-00.)

22        Section 90.  The State Mandates Act is amended by  adding
23    Section 8.28 as follows:

24        (30 ILCS 805/8.28 new)
25        Sec.  8.28.  Exempt  mandate.  Notwithstanding Sections 6
26    and 8 of this Act, no reimbursement by the State is  required
27    for  the  implementation of any mandate created by the Senior
28    Citizens Assessment Freeze Homestead Exemption under  Section
29    15-172 of the Property Tax Code.

30        Section  99.  Effective date.  This Act takes effect upon
31    becoming law.