Full Text of HB1492 098th General Assembly
HB1492 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB1492 Introduced , by Rep. Dwight Kay SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Beginning in taxable year 2013, increases the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption from $55,000 to $75,000 for applicants who have occupied the residence for 5 years or more. Indexes the maximum income limitation to the Consumer Price Index. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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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 the base year equalized assessed value | 15 | | of the residence
plus the first year's equalized assessed value | 16 | | of any added improvements which
increased the assessed value of | 17 | | 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 |
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| 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 equalized | 7 | | assessed value of the residence is
less than the equalized | 8 | | assessed value in the existing base year
(provided that such | 9 | | equalized assessed value is not
based
on an
assessed value that | 10 | | results from a temporary irregularity in the property that
| 11 | | reduces the
assessed value for one or more taxable years), then | 12 | | that
subsequent taxable year shall become the base year until a | 13 | | new base year is
established under the terms of this paragraph. | 14 | | For taxable year 1999 only, the
Chief County Assessment Officer | 15 | | shall review (i) all taxable years for which
the
applicant | 16 | | applied and qualified for the exemption and (ii) the existing | 17 | | base
year.
The assessment officer shall select as the new base | 18 | | year the year with the
lowest equalized assessed value.
An | 19 | | equalized assessed value that is based on an assessed value | 20 | | that results
from a
temporary irregularity in the property that | 21 | | reduces the assessed value for one
or more
taxable years shall | 22 | | not be considered the lowest equalized assessed value.
The | 23 | | selected year shall be the base year for
taxable year 1999 and | 24 | | thereafter until a new base year is established under the
terms | 25 | | of this paragraph.
| 26 | | "Chief County Assessment Officer" means the County |
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| 1 | | Assessor or Supervisor of
Assessments of the county in which | 2 | | the property is located.
| 3 | | "Equalized assessed value" means the assessed value as | 4 | | equalized by the
Illinois Department of Revenue.
| 5 | | "Household" means the applicant, the spouse of the | 6 | | applicant, and all persons
using the residence of the applicant | 7 | | as their principal place of residence.
| 8 | | "Household income" means the combined income of the members | 9 | | of a household
for the calendar year preceding the taxable | 10 | | year.
| 11 | | "Income" has the same meaning as provided in Section 3.07 | 12 | | of the Senior
Citizens and Disabled Persons Property Tax Relief
| 13 | | Act, except that, beginning in assessment year 2001, "income" | 14 | | does not
include veteran's benefits.
| 15 | | "Internal Revenue Code of 1986" means the United States | 16 | | Internal Revenue Code
of 1986 or any successor law or laws | 17 | | relating to federal income taxes in effect
for the year | 18 | | preceding the taxable year.
| 19 | | "Life care facility that qualifies as a cooperative" means | 20 | | a facility as
defined in Section 2 of the Life Care Facilities | 21 | | Act.
| 22 | | "Maximum income limitation" means: | 23 | | (1) $35,000 prior
to taxable year 1999; | 24 | | (2) $40,000 in taxable years 1999 through 2003; | 25 | | (3) $45,000 in taxable years 2004 through 2005; | 26 | | (4) $50,000 in taxable years 2006 and 2007; and |
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| 1 | | (5) $55,000 in taxable years year 2008 through 2012; | 2 | | and thereafter.
| 3 | | (6) in taxable year 2013: (A) $55,000 for applicants | 4 | | who have occupied the residence for less than 5 years and | 5 | | (B) $75,000 for applicants who have occupied the residence | 6 | | for 5 or more years; and | 7 | | (7) in taxable year 2014 and thereafter: (A) for | 8 | | applicants who have occupied the residence for less than 5 | 9 | | years, an amount equal to the maximum income limitation for | 10 | | the immediately prior taxable year for applicants who have | 11 | | occupied the residence for less than 5 years, increased by | 12 | | the lesser of (i) 2% or (ii) the percentage increase during | 13 | | the immediately prior taxable year in the Consumer Price | 14 | | Index for All Urban
Consumers for all items published by | 15 | | the United States Department of Labor Bureau of Labor | 16 | | Statistics; and (B) for applicants who have occupied the | 17 | | residence for 5 or more years, an amount equal to the | 18 | | maximum income limitation for the immediately prior | 19 | | taxable year for applicants who have occupied the residence | 20 | | for 5 or more years, increased by the lesser of (i) 2% or | 21 | | (ii) the percentage increase during the immediately prior | 22 | | taxable year in the Consumer Price Index for All Urban
| 23 | | Consumers for all items published by the United States | 24 | | Department of Labor Bureau of Labor Statistics. | 25 | | "Residence" means the principal dwelling place and | 26 | | appurtenant structures
used for residential purposes in this |
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| 1 | | State occupied on January 1 of the
taxable year by a household | 2 | | and so much of the surrounding land, constituting
the parcel | 3 | | upon which the dwelling place is situated, as is used for
| 4 | | residential purposes. If the Chief County Assessment Officer | 5 | | has established a
specific legal description for a portion of | 6 | | property constituting the
residence, then that portion of | 7 | | property shall be deemed the residence for the
purposes of this | 8 | | Section.
| 9 | | "Taxable year" means the calendar year during which ad | 10 | | valorem property taxes
payable in the next succeeding year are | 11 | | levied.
| 12 | | (c) Beginning in taxable year 1994, a senior citizens | 13 | | assessment freeze
homestead exemption is granted for real | 14 | | property that is improved with a
permanent structure that is | 15 | | occupied as a residence by an applicant who (i) is
65 years of | 16 | | age or older during the taxable year, (ii) has a household | 17 | | income that does not exceed the maximum income limitation, | 18 | | (iii) is liable for paying real property taxes on
the
property, | 19 | | and (iv) is an owner of record of the property or has a legal or
| 20 | | equitable interest in the property as evidenced by a written | 21 | | instrument. This
homestead exemption shall also apply to a | 22 | | leasehold interest in a parcel of
property improved with a | 23 | | permanent structure that is a single family residence
that is | 24 | | occupied as a residence by a person who (i) is 65 years of age | 25 | | or older
during the taxable year, (ii) has a household income | 26 | | that does not exceed the maximum income limitation,
(iii)
has a |
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| 1 | | legal or equitable ownership interest in the property as | 2 | | lessee, and (iv)
is liable for the payment of real property | 3 | | taxes on that property.
| 4 | | In counties of 3,000,000 or more inhabitants, the amount of | 5 | | the exemption for all taxable years is the equalized assessed | 6 | | value of the
residence in the taxable year for which | 7 | | application is made minus the base
amount. In all other | 8 | | counties, the amount of the exemption is as follows: (i) | 9 | | through taxable year 2005 and for taxable year 2007 and | 10 | | thereafter, the amount of this exemption shall be the equalized | 11 | | assessed value of the
residence in the taxable year for which | 12 | | application is made minus the base
amount; and (ii) for
taxable | 13 | | year 2006, the amount of the exemption is as follows:
| 14 | | (1) For an applicant who has a household income of | 15 | | $45,000 or less, the amount of the exemption is the | 16 | | equalized assessed value of the
residence in the taxable | 17 | | year for which application is made minus the base
amount. | 18 | | (2) For an applicant who has a household income | 19 | | exceeding $45,000 but not exceeding $46,250, the amount of | 20 | | the exemption is (i) the equalized assessed value of the
| 21 | | residence in the taxable year for which application is made | 22 | | minus the base
amount (ii) multiplied by 0.8. | 23 | | (3) For an applicant who has a household income | 24 | | exceeding $46,250 but not exceeding $47,500, the amount of | 25 | | the exemption is (i) the equalized assessed value of the
| 26 | | residence in the taxable year for which application is made |
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| 1 | | minus the base
amount (ii) multiplied by 0.6. | 2 | | (4) For an applicant who has a household income | 3 | | exceeding $47,500 but not exceeding $48,750, the amount of | 4 | | the exemption is (i) the equalized assessed value of the
| 5 | | residence in the taxable year for which application is made | 6 | | minus the base
amount (ii) multiplied by 0.4. | 7 | | (5) For an applicant who has a household income | 8 | | exceeding $48,750 but not exceeding $50,000, the amount of | 9 | | the exemption is (i) the equalized assessed value of the
| 10 | | residence in the taxable year for which application is made | 11 | | minus the base
amount (ii) multiplied by 0.2.
| 12 | | When the applicant is a surviving spouse of an applicant | 13 | | for a prior year for
the same residence for which an exemption | 14 | | under this Section has been granted,
the base year and base | 15 | | amount for that residence are the same as for the
applicant for | 16 | | the prior year.
| 17 | | Each year at the time the assessment books are certified to | 18 | | the County Clerk,
the Board of Review or Board of Appeals shall | 19 | | give to the County Clerk a list
of the assessed values of | 20 | | improvements on each parcel qualifying for this
exemption that | 21 | | 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 maximum | 26 | | reduction from the equalized assessed value of the
property is |
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| 1 | | limited to the sum of the reductions calculated for each unit
| 2 | | occupied as a residence by a person or persons (i) 65 years of | 3 | | age or older, (ii) with a
household income that does not exceed | 4 | | the maximum income limitation, (iii) who is liable, by contract | 5 | | with the
owner
or owners of record, for paying real property | 6 | | taxes on the property, and (iv) who is
an owner of record of a | 7 | | legal or equitable interest in the cooperative
apartment | 8 | | building, other than a leasehold interest. In the instance of a
| 9 | | cooperative where a homestead exemption has been granted under | 10 | | this Section,
the cooperative association or its management | 11 | | firm shall credit the savings
resulting from that exemption | 12 | | only to the apportioned tax liability of the
owner who | 13 | | qualified for the exemption. Any person who willfully refuses | 14 | | to
credit that savings to an owner who qualifies for the | 15 | | exemption is guilty of a
Class B misdemeanor.
| 16 | | When a homestead exemption has been granted under this | 17 | | Section and an
applicant then becomes a resident of a facility | 18 | | licensed under the Assisted Living and Shared Housing Act, the | 19 | | Nursing Home
Care Act, the Specialized Mental Health | 20 | | Rehabilitation Act, or the ID/DD Community Care Act, the | 21 | | exemption shall be granted in subsequent years so long as the
| 22 | | residence (i) continues to be occupied by the qualified | 23 | | applicant's spouse or
(ii) if remaining unoccupied, is still | 24 | | owned by the qualified applicant for the
homestead exemption.
| 25 | | Beginning January 1, 1997, when an individual dies who | 26 | | would have qualified
for an exemption under this Section, and |
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| 1 | | the surviving spouse does not
independently qualify for this | 2 | | exemption because of age, the exemption under
this Section | 3 | | shall be granted to the surviving spouse for the taxable year
| 4 | | preceding and the taxable
year of the death, provided that, | 5 | | except for age, the surviving spouse meets
all
other | 6 | | qualifications for the granting of this exemption for those | 7 | | years.
| 8 | | When married persons maintain separate residences, the | 9 | | exemption provided for
in this Section may be claimed by only | 10 | | one of such persons and for only one
residence.
| 11 | | For taxable year 1994 only, in counties having less than | 12 | | 3,000,000
inhabitants, to receive the exemption, a person shall | 13 | | submit an application by
February 15, 1995 to the Chief County | 14 | | Assessment Officer
of the county in which the property is | 15 | | located. In counties having 3,000,000
or more inhabitants, for | 16 | | taxable year 1994 and all subsequent taxable years, to
receive | 17 | | the exemption, a person
may submit an application to the Chief | 18 | | County
Assessment Officer of the county in which the property | 19 | | is located during such
period as may be specified by the Chief | 20 | | County Assessment Officer. The Chief
County Assessment Officer | 21 | | in counties of 3,000,000 or more inhabitants shall
annually | 22 | | give notice of the application period by mail or by | 23 | | publication. In
counties having less than 3,000,000 | 24 | | inhabitants, beginning with taxable year
1995 and thereafter, | 25 | | to receive the exemption, a person
shall
submit an
application | 26 | | by July 1 of each taxable year to the Chief County Assessment
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| 1 | | Officer of the county in which the property is located. A | 2 | | county may, by
ordinance, establish a date for submission of | 3 | | applications that is
different than
July 1.
The applicant shall | 4 | | submit with the
application an affidavit of the applicant's | 5 | | total household income, age,
marital status (and if married the | 6 | | name and address of the applicant's spouse,
if known), and | 7 | | principal dwelling place of members of the household on January
| 8 | | 1 of the taxable year. The Department shall establish, by rule, | 9 | | a method for
verifying the accuracy of affidavits filed by | 10 | | applicants under this Section, and the Chief County Assessment | 11 | | Officer may conduct audits of any taxpayer claiming an | 12 | | exemption under this Section to verify that the taxpayer is | 13 | | eligible to receive the exemption. Each application shall | 14 | | contain or be verified by a written declaration that it is made | 15 | | under the penalties of perjury. A taxpayer's signing a | 16 | | fraudulent application under this Act is perjury, as defined in | 17 | | Section 32-2 of the Criminal Code of 1961.
The applications | 18 | | shall be clearly marked as applications for the Senior
Citizens | 19 | | Assessment Freeze Homestead Exemption and must contain a notice | 20 | | that any taxpayer who receives the exemption is subject to an | 21 | | audit by the Chief County Assessment Officer.
| 22 | | Notwithstanding any other provision to the contrary, in | 23 | | counties having fewer
than 3,000,000 inhabitants, if an | 24 | | applicant fails
to file the application required by this | 25 | | Section in a timely manner and this
failure to file is due to a | 26 | | mental or physical condition sufficiently severe so
as to |
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| 1 | | render the applicant incapable of filing the application in a | 2 | | timely
manner, the Chief County Assessment Officer may extend | 3 | | the filing deadline for
a period of 30 days after the applicant | 4 | | regains the capability to file the
application, but in no case | 5 | | may the filing deadline be extended beyond 3
months of the | 6 | | original filing deadline. In order to receive the extension
| 7 | | provided in this paragraph, the applicant shall provide the | 8 | | Chief County
Assessment Officer with a signed statement from | 9 | | the applicant's physician
stating the nature and extent of the | 10 | | condition, that, in the
physician's opinion, the condition was | 11 | | so severe that it rendered the applicant
incapable of filing | 12 | | the application in a timely manner, and the date on which
the | 13 | | applicant regained the capability to file the application.
| 14 | | Beginning January 1, 1998, notwithstanding any other | 15 | | provision to the
contrary, in counties having fewer than | 16 | | 3,000,000 inhabitants, if an applicant
fails to file the | 17 | | application required by this Section in a timely manner and
| 18 | | this failure to file is due to a mental or physical condition | 19 | | sufficiently
severe so as to render the applicant incapable of | 20 | | filing the application in a
timely manner, the Chief County | 21 | | Assessment Officer may extend the filing
deadline for a period | 22 | | of 3 months. In order to receive the extension provided
in this | 23 | | paragraph, the applicant shall provide the Chief County | 24 | | Assessment
Officer with a signed statement from the applicant's | 25 | | physician stating the
nature and extent of the condition, and | 26 | | that, in the physician's opinion, the
condition was so severe |
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| 1 | | that it rendered the applicant incapable of filing the
| 2 | | application in a timely manner.
| 3 | | In counties having less than 3,000,000 inhabitants, if an | 4 | | applicant was
denied an exemption in taxable year 1994 and the | 5 | | denial occurred due to an
error on the part of an assessment
| 6 | | official, or his or her agent or employee, then beginning in | 7 | | taxable year 1997
the
applicant's base year, for purposes of | 8 | | determining the amount of the exemption,
shall be 1993 rather | 9 | | than 1994. In addition, in taxable year 1997, the
applicant's | 10 | | exemption shall also include an amount equal to (i) the amount | 11 | | of
any exemption denied to the applicant in taxable year 1995 | 12 | | as a result of using
1994, rather than 1993, as the base year, | 13 | | (ii) the amount of any exemption
denied to the applicant in | 14 | | taxable year 1996 as a result of using 1994, rather
than 1993, | 15 | | as the base year, and (iii) the amount of the exemption | 16 | | erroneously
denied for taxable year 1994.
| 17 | | For purposes of this Section, a person who will be 65 years | 18 | | of age during the
current taxable year shall be eligible to | 19 | | apply for the homestead exemption
during that taxable year. | 20 | | Application shall be made during the application
period in | 21 | | effect for the county of his or her residence.
| 22 | | The Chief County Assessment Officer may determine the | 23 | | eligibility of a life
care facility that qualifies as a | 24 | | cooperative to receive the benefits
provided by this Section by | 25 | | use of an affidavit, application, visual
inspection, | 26 | | questionnaire, or other reasonable method in order to insure |
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| 1 | | that
the tax savings resulting from the exemption are credited | 2 | | by the management
firm to the apportioned tax liability of each | 3 | | qualifying resident. The Chief
County Assessment Officer may | 4 | | request reasonable proof that the management firm
has so | 5 | | credited that exemption.
| 6 | | Except as provided in this Section, all information | 7 | | received by the chief
county assessment officer or the | 8 | | Department from applications filed under this
Section, or from | 9 | | any investigation conducted under the provisions of this
| 10 | | Section, shall be confidential, except for official purposes or
| 11 | | pursuant to official procedures for collection of any State or | 12 | | local tax or
enforcement of any civil or criminal penalty or | 13 | | sanction imposed by this Act or
by any statute or ordinance | 14 | | imposing a State or local tax. Any person who
divulges any such | 15 | | information in any manner, except in accordance with a proper
| 16 | | judicial order, is guilty of a Class A misdemeanor.
| 17 | | Nothing contained in this Section shall prevent the | 18 | | Director or chief county
assessment officer from publishing or | 19 | | making available reasonable statistics
concerning the | 20 | | operation of the exemption contained in this Section in which
| 21 | | the contents of claims are grouped into aggregates in such a | 22 | | way that
information contained in any individual claim shall | 23 | | not be disclosed.
| 24 | | (d) Each Chief County Assessment Officer shall annually | 25 | | publish a notice
of availability of the exemption provided | 26 | | under this Section. The notice
shall be published at least 60 |
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| 1 | | days but no more than 75 days prior to the date
on which the | 2 | | application must be submitted to the Chief County Assessment
| 3 | | Officer of the county in which the property is located. The | 4 | | notice shall
appear in a newspaper of general circulation in | 5 | | the county.
| 6 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 7 | | no reimbursement by the State is required for the | 8 | | implementation of any mandate created by this Section.
| 9 | | (Source: P.A. 96-339, eff. 7-1-10; 96-355, eff. 1-1-10; | 10 | | 96-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; | 11 | | 97-689, eff. 6-14-12; 97-813, eff. 7-13-12.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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