SB0794eng 95TH GENERAL ASSEMBLY



 


 
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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. 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:
15         (1) the base year equalized assessed value of the
16     residence plus the first year's equalized assessed value of
17     any added improvements which increased the assessed value
18     of the residence after the base year; or
19         (2) if a taxpayer, who has been granted an exemption
20     under this Section, transfers his or her residence, then an
21     amount equal to the base amount of the taxpayer's prior
22     residence if the new residence:
23             (A) has a current equalized assessed value that is

 

 

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1         equal to or less than the current equalized assessed
2         value of the taxpayer's prior residence;
3             (B) is located in the same county as the prior
4         residence; and
5             (C) is acquired and used for residential purposes
6         within 30 days before or after the transfer of the
7         prior residence.
8     "Base year" means the taxable year prior to the taxable
9 year for which the applicant first qualifies and applies for
10 the exemption provided that in the prior taxable year the
11 property was improved with a permanent structure that was
12 occupied as a residence by the applicant who was liable for
13 paying real property taxes on the property and who was either
14 (i) an owner of record of the property or had legal or
15 equitable interest in the property as evidenced by a written
16 instrument or (ii) had a legal or equitable interest as a
17 lessee in the parcel of property that was single family
18 residence. If in any subsequent taxable year for which the
19 applicant applies and qualifies for the exemption the equalized
20 assessed value of the residence is less than the equalized
21 assessed value in the existing base year (provided that such
22 equalized assessed value is not based on an assessed value that
23 results from a temporary irregularity in the property that
24 reduces the assessed value for one or more taxable years), then
25 that subsequent taxable year shall become the base year until a
26 new base year is established under the terms of this paragraph.

 

 

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1 For taxable year 1999 only, the Chief County Assessment Officer
2 shall review (i) all taxable years for which the applicant
3 applied and qualified for the exemption and (ii) the existing
4 base year. The assessment officer shall select as the new base
5 year the year with the lowest equalized assessed value. An
6 equalized assessed value that is based on an assessed value
7 that results from a temporary irregularity in the property that
8 reduces the assessed value for one or more taxable years shall
9 not be considered the lowest equalized assessed value. The
10 selected year shall be the base year for taxable year 1999 and
11 thereafter until a new base year is established under the terms
12 of this paragraph.
13     "Chief County Assessment Officer" means the County
14 Assessor or Supervisor of Assessments of the county in which
15 the property is located.
16     "Equalized assessed value" means the assessed value as
17 equalized by the Illinois Department of Revenue.
18     "Household" means the applicant, the spouse of the
19 applicant, and all persons using the residence of the applicant
20 as their principal place of residence.
21     "Household income" means the combined income of the members
22 of a household for the calendar year preceding the taxable
23 year.
24     "Income" has the same meaning as provided in Section 3.07
25 of the Senior Citizens and Disabled Persons Property Tax Relief
26 and Pharmaceutical Assistance Act, except that, beginning in

 

 

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1 assessment year 2001, "income" does not include veteran's
2 benefits.
3     "Internal Revenue Code of 1986" means the United States
4 Internal Revenue Code of 1986 or any successor law or laws
5 relating to federal income taxes in effect for the year
6 preceding the taxable year.
7     "Life care facility that qualifies as a cooperative" means
8 a facility as defined in Section 2 of the Life Care Facilities
9 Act.
10     "Residence" means the principal dwelling place and
11 appurtenant structures used for residential purposes in this
12 State occupied, except with respect to transfers under item (2)
13 of the definition of "base amount", on January 1 of the taxable
14 year by a household and so much of the surrounding land,
15 constituting the parcel upon which the dwelling place is
16 situated, as is used for residential purposes. If the Chief
17 County Assessment Officer has established a specific legal
18 description for a portion of property constituting the
19 residence, then that portion of property shall be deemed the
20 residence for the purposes of this Section.
21     "Taxable year" means the calendar year during which ad
22 valorem property taxes payable in the next succeeding year are
23 levied.
24     (c) Beginning in taxable year 1994, a senior citizens
25 assessment freeze homestead exemption is granted for real
26 property that is improved with a permanent structure that is

 

 

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1 occupied as a residence by an applicant 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, $40,000
4 or less in taxable years 1999 through 2003, $45,000 or less in
5 taxable year 2004 and 2005, and $50,000 or less in taxable year
6 2006 and thereafter, (iii) is liable for paying real property
7 taxes on the property, and (iv) is an owner of record of the
8 property or has a legal or equitable interest in the property
9 as evidenced by a written instrument. This homestead exemption
10 shall also apply to a leasehold interest in a parcel of
11 property improved with a permanent structure that is a single
12 family residence that is occupied as a residence by a person
13 who (i) is 65 years of age or older during the taxable year,
14 (ii) has a household income of $35,000 or less prior to taxable
15 year 1999, $40,000 or less in taxable years 1999 through 2003,
16 $45,000 or less in taxable year 2004 and 2005, and $50,000 or
17 less in taxable year 2006 and thereafter, (iii) has a legal or
18 equitable ownership interest in the property as lessee, and
19 (iv) is liable for the payment of real property taxes on that
20 property.
21     Through taxable year 2005, the amount of this exemption
22 shall be the equalized assessed value of the residence in the
23 taxable year for which application is made minus the base
24 amount. For taxable year 2006 and thereafter, the amount of the
25 exemption is as follows:
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 made
8     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 made
13     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 made
18     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 made
23     minus the base amount (ii) multiplied by 0.2.
24     When the applicant is a surviving spouse of an applicant
25 for a prior year for the same residence for which an exemption
26 under this Section has been granted, the base year and base

 

 

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1 amount for that residence are the same as for the applicant for
2 the prior year.
3     Each year at the time the assessment books are certified to
4 the County Clerk, the Board of Review or Board of Appeals shall
5 give to the County Clerk a list of the assessed values of
6 improvements on each parcel qualifying for this exemption that
7 were added after the base year for this parcel and that
8 increased the assessed value of the property.
9     In the case of land improved with an apartment building
10 owned and operated as a cooperative or a building that is a
11 life care facility that qualifies as a cooperative, the maximum
12 reduction from the equalized assessed value of the property is
13 limited to the sum of the reductions calculated for each unit
14 occupied as a residence by a person or persons (i) 65 years of
15 age or older, (ii) with a household income of $35,000 or less
16 prior to taxable year 1999, $40,000 or less in taxable years
17 1999 through 2003, $45,000 or less in taxable year 2004 and
18 2005, and $50,000 or less in taxable year 2006 and thereafter,
19 (iii) who is liable, by contract with the owner or owners of
20 record, for paying real property taxes on the property, and
21 (iv) who is an owner of record of a legal or equitable interest
22 in the cooperative apartment building, other than a leasehold
23 interest. In the instance of a cooperative where a homestead
24 exemption has been granted under this Section, the cooperative
25 association or its management firm shall credit the savings
26 resulting from that exemption only to the apportioned tax

 

 

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1 liability of the owner who qualified for the exemption. Any
2 person who willfully refuses to credit that savings to an owner
3 who qualifies for the exemption is guilty of a Class B
4 misdemeanor.
5     When a homestead exemption has been granted under this
6 Section and an applicant then becomes a resident of a facility
7 licensed under the Nursing Home Care Act, the exemption shall
8 be granted in subsequent years so long as the residence (i)
9 continues to be occupied by the qualified applicant's spouse or
10 (ii) if remaining unoccupied, is still owned by the qualified
11 applicant for the homestead exemption.
12     Beginning January 1, 1997, when an individual dies who
13 would have qualified for an exemption under this Section, and
14 the surviving spouse does not independently qualify for this
15 exemption because of age, the exemption under this Section
16 shall be granted to the surviving spouse for the taxable year
17 preceding and the taxable year of the death, provided that,
18 except for age, the surviving spouse meets all other
19 qualifications for the granting of this exemption for those
20 years.
21     When married persons maintain separate residences, the
22 exemption provided for in this Section may be claimed by only
23 one of such persons and for only one residence.
24     For taxable year 1994 only, in counties having less than
25 3,000,000 inhabitants, to receive the exemption, a person shall
26 submit an application by February 15, 1995 to the Chief County

 

 

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1 Assessment Officer of the county in which the property is
2 located. In counties having 3,000,000 or more inhabitants, for
3 taxable year 1994 and all subsequent taxable years, to receive
4 the exemption, a person may submit an application to the Chief
5 County Assessment Officer of the county in which the property
6 is located during such period as may be specified by the Chief
7 County Assessment Officer. The Chief County Assessment Officer
8 in counties of 3,000,000 or more inhabitants shall annually
9 give notice of the application period by mail or by
10 publication. In counties having less than 3,000,000
11 inhabitants, beginning with taxable year 1995 and thereafter,
12 to receive the exemption, a person shall submit an application
13 by July 1 of each taxable year to the Chief County Assessment
14 Officer of the county in which the property is located. A
15 county may, by ordinance, establish a date for submission of
16 applications that is different than July 1. The applicant shall
17 submit with the application an affidavit of the applicant's
18 total household income, age, marital status (and if married the
19 name and address of the applicant's spouse, if known), and
20 principal dwelling place of members of the household on January
21 1 of the taxable year. The Department shall establish, by rule,
22 a method for verifying the accuracy of affidavits filed by
23 applicants under this Section. The applications shall be
24 clearly marked as applications for the Senior Citizens
25 Assessment Freeze Homestead Exemption.
26     Notwithstanding any other provision to the contrary, in

 

 

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1 counties having fewer than 3,000,000 inhabitants, if an
2 applicant fails to file the application required by this
3 Section in a timely manner and this failure to file is due to a
4 mental or physical condition sufficiently severe so as to
5 render the applicant incapable of filing the application in a
6 timely manner, the Chief County Assessment Officer may extend
7 the filing deadline for a period of 30 days after the applicant
8 regains the capability to file the application, but in no case
9 may the filing deadline be extended beyond 3 months of the
10 original filing deadline. In order to receive the extension
11 provided in this paragraph, the applicant shall provide the
12 Chief County Assessment Officer with a signed statement from
13 the applicant's physician stating the nature and extent of the
14 condition, that, in the physician's opinion, the condition was
15 so severe that it rendered the applicant incapable of filing
16 the application in a timely manner, and the date on which the
17 applicant regained the capability to file the application.
18     Beginning January 1, 1998, notwithstanding any other
19 provision to the contrary, in counties having fewer than
20 3,000,000 inhabitants, if an applicant fails to file the
21 application required by this Section in a timely manner and
22 this failure to file is due to a mental or physical condition
23 sufficiently severe so as to render the applicant incapable of
24 filing the application in a timely manner, the Chief County
25 Assessment Officer may extend the filing deadline for a period
26 of 3 months. In order to receive the extension provided in this

 

 

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1 paragraph, the applicant shall provide the Chief County
2 Assessment Officer with a signed statement from the applicant's
3 physician stating the nature and extent of the condition, and
4 that, in the physician's opinion, the condition was so severe
5 that it rendered the applicant incapable of filing the
6 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 the
9 denial occurred due to an error on the part of an assessment
10 official, or his or her agent or employee, then beginning in
11 taxable year 1997 the applicant's base year, for purposes of
12 determining the amount of the exemption, shall be 1993 rather
13 than 1994. In addition, in taxable year 1997, the applicant's
14 exemption shall also include an amount equal to (i) the amount
15 of any exemption denied to the applicant in taxable year 1995
16 as a result of using 1994, rather than 1993, as the base year,
17 (ii) the amount of any exemption denied to the applicant in
18 taxable year 1996 as a result of using 1994, rather than 1993,
19 as the base year, and (iii) the amount of the exemption
20 erroneously denied for taxable year 1994.
21     For purposes of this Section, a person who will be 65 years
22 of age during the current taxable year shall be eligible to
23 apply for the homestead exemption during that taxable year.
24 Application shall be made during the application period in
25 effect for the county of his or her residence.
26     The Chief County Assessment Officer may determine the

 

 

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1 eligibility of a life care facility that qualifies as a
2 cooperative to receive the benefits provided by this Section by
3 use of an affidavit, application, visual inspection,
4 questionnaire, or other reasonable method in order to insure
5 that the tax savings resulting from the exemption are credited
6 by the management firm to the apportioned tax liability of each
7 qualifying resident. The Chief County Assessment Officer may
8 request reasonable proof that the management firm has so
9 credited that exemption.
10     Except as provided in this Section, all information
11 received by the chief county assessment officer or the
12 Department from applications filed under this Section, or from
13 any investigation conducted under the provisions of this
14 Section, shall be confidential, except for official purposes or
15 pursuant to official procedures for collection of any State or
16 local tax or enforcement of any civil or criminal penalty or
17 sanction imposed by this Act or by any statute or ordinance
18 imposing a State or local tax. Any person who divulges any such
19 information in any manner, except in accordance with a proper
20 judicial order, is guilty of a Class A misdemeanor.
21     Nothing contained in this Section shall prevent the
22 Director or chief county assessment officer from publishing or
23 making available reasonable statistics concerning the
24 operation of the exemption contained in this Section in which
25 the contents of claims are grouped into aggregates in such a
26 way that information contained in any individual claim shall

 

 

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1 not be disclosed.
2     (d) Each Chief County Assessment Officer shall annually
3 publish a notice of availability of the exemption provided
4 under this Section. The notice shall be published at least 60
5 days but no more than 75 days prior to the date on which the
6 application must be submitted to the Chief County Assessment
7 Officer of the county in which the property is located. The
8 notice shall appear in a newspaper of general circulation in
9 the county.
10     Notwithstanding Sections 6 and 8 of the State Mandates Act,
11 no reimbursement by the State is required for the
12 implementation of any mandate created by this Section.
13 (Source: P.A. 93-715, eff. 7-12-04; 94-794, eff. 5-22-06.)
 
14     Section 99. Effective date. This Act takes effect upon
15 becoming law.