Full Text of HB3797 102nd General Assembly
HB3797 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3797 Introduced 2/22/2021, by Rep. Bradley Stephens SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/9-275 | | 35 ILCS 200/15-10 | | 35 ILCS 200/15-172 | |
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Amends the Property Tax Code. Provides that the surviving spouse of a fallen police officer, soldier, or rescue worker who meets certain income limitations is eligible for an assessment freeze. 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 | | Sections 9-275, 15-10, 15-172 as follows: | 6 | | (35 ILCS 200/9-275) | 7 | | Sec. 9-275. Erroneous homestead exemptions. | 8 | | (a) For purposes of this Section: | 9 | | "Erroneous homestead exemption" means a homestead | 10 | | exemption that was granted for real property in a taxable year | 11 | | if the property was not eligible for that exemption in that | 12 | | taxable year. If the taxpayer receives an erroneous homestead | 13 | | exemption under a single Section of this Code for the same | 14 | | property in multiple years, that exemption is considered a | 15 | | single erroneous homestead exemption for purposes of this | 16 | | Section. However, if the taxpayer receives erroneous homestead | 17 | | exemptions under multiple Sections of this Code for the same | 18 | | property, or if the taxpayer receives erroneous homestead | 19 | | exemptions under the same Section of this Code for multiple | 20 | | properties, then each of those exemptions is considered a | 21 | | separate erroneous homestead exemption for purposes of this | 22 | | Section. | 23 | | "Homestead exemption" means an exemption under Section |
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| 1 | | 15-165 (veterans with disabilities), 15-167 (returning | 2 | | veterans), 15-168 (persons with disabilities), 15-169 | 3 | | (standard homestead for veterans with disabilities), 15-170 | 4 | | (senior citizens), 15-172 ( senior citizens assessment freeze), | 5 | | 15-175 (general homestead), 15-176 (alternative general | 6 | | homestead), or 15-177 (long-time occupant). | 7 | | "Erroneous exemption principal amount" means the total | 8 | | difference between the property taxes actually billed to a | 9 | | property index number and the amount of property taxes that | 10 | | would have been billed but for the erroneous exemption or | 11 | | exemptions. | 12 | | "Taxpayer" means the property owner or leasehold owner | 13 | | that erroneously received a homestead exemption upon property. | 14 | | (b) Notwithstanding any other provision of law, in | 15 | | counties with 3,000,000 or more inhabitants, the chief county | 16 | | assessment officer shall include the following information | 17 | | with each assessment notice sent in a general assessment year: | 18 | | (1) a list of each homestead exemption available under Article | 19 | | 15 of this Code and a description of the eligibility criteria | 20 | | for that exemption, including the number of assessment years | 21 | | of automatic renewal remaining on a current senior citizens | 22 | | homestead exemption if such an exemption has been applied to | 23 | | the property; (2) a list of each homestead exemption applied | 24 | | to the property in the current assessment year; (3) | 25 | | information regarding penalties and interest that may be | 26 | | incurred under this Section if the taxpayer received an |
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| 1 | | erroneous homestead exemption in a previous taxable year; and | 2 | | (4) notice of the 60-day grace period available under this | 3 | | subsection. If, within 60 days after receiving his or her | 4 | | assessment notice, the taxpayer notifies the chief county | 5 | | assessment officer that he or she received an erroneous | 6 | | homestead exemption in a previous taxable year, and if the | 7 | | taxpayer pays the erroneous exemption principal amount, plus | 8 | | interest as provided in subsection (f), then the taxpayer | 9 | | shall not be liable for the penalties provided in subsection | 10 | | (f) with respect to that exemption. | 11 | | (c) In counties with 3,000,000 or more inhabitants, when | 12 | | the chief county assessment officer determines that one or | 13 | | more erroneous homestead exemptions was applied to the | 14 | | property, the erroneous exemption principal amount, together | 15 | | with all applicable interest and penalties as provided in | 16 | | subsections (f) and (j), shall constitute a lien in the name of | 17 | | the People of Cook County on the property receiving the | 18 | | erroneous homestead exemption. Upon becoming aware of the | 19 | | existence of one or more erroneous homestead exemptions, the | 20 | | chief county assessment officer shall cause to be served, by | 21 | | both regular mail and certified mail, a notice of discovery as | 22 | | set forth in subsection (c-5). The chief county assessment | 23 | | officer in a county with 3,000,000 or more inhabitants may | 24 | | cause a lien to be recorded against property that (1) is | 25 | | located in the county and (2) received one or more erroneous | 26 | | homestead exemptions if, upon determination of the chief |
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| 1 | | county assessment officer, the taxpayer received: (A) one or 2 | 2 | | erroneous homestead exemptions for real property, including at | 3 | | least one erroneous homestead exemption granted for the | 4 | | property against which the lien is sought, during any of the 3 | 5 | | collection years immediately prior to the current collection | 6 | | year in which the notice of discovery is served; or (B) 3 or | 7 | | more erroneous homestead exemptions for real property, | 8 | | including at least one erroneous homestead exemption granted | 9 | | for the property against which the lien is sought, during any | 10 | | of the 6 collection years immediately prior to the current | 11 | | collection year in which the notice of discovery is served. | 12 | | Prior to recording the lien against the property, the chief | 13 | | county assessment officer shall cause to be served, by both | 14 | | regular mail and certified mail, return receipt requested, on | 15 | | the person to whom the most recent tax bill was mailed and the | 16 | | owner of record, a notice of intent to record a lien against | 17 | | the property. The chief county assessment officer shall cause | 18 | | the notice of intent to record a lien to be served within 3 | 19 | | years from the date on which the notice of discovery was | 20 | | served. | 21 | | (c-5) The notice of discovery described in subsection (c) | 22 | | shall: (1) identify, by property index number, the property | 23 | | for which the chief county assessment officer has knowledge | 24 | | indicating the existence of an erroneous homestead exemption; | 25 | | (2) set forth the taxpayer's liability for principal, | 26 | | interest, penalties, and administrative costs including, but |
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| 1 | | not limited to, recording fees described in subsection (f); | 2 | | (3) inform the taxpayer that he or she will be served with a | 3 | | notice of intent to record a lien within 3 years from the date | 4 | | of service of the notice of discovery; (4) inform the taxpayer | 5 | | that he or she may pay the outstanding amount, plus interest, | 6 | | penalties, and administrative costs at any time prior to being | 7 | | served with the notice of intent to record a lien or within 30 | 8 | | days after the notice of intent to record a lien is served; and | 9 | | (5) inform the taxpayer that, if the taxpayer provided notice | 10 | | to the chief county assessment officer as provided in | 11 | | subsection (d-1) of Section 15-175 of this Code, upon | 12 | | submission by the taxpayer of evidence of timely notice and | 13 | | receipt thereof by the chief county assessment officer, the | 14 | | chief county assessment officer will withdraw the notice of | 15 | | discovery and reissue a notice of discovery in compliance with | 16 | | this Section in which the taxpayer is not liable for interest | 17 | | and penalties for the current tax year in which the notice was | 18 | | received. | 19 | | For the purposes of this subsection (c-5): | 20 | | "Collection year" means the year in which the first and | 21 | | second installment of the current tax year is billed. | 22 | | "Current tax year" means the year prior to the collection | 23 | | year. | 24 | | (d) The notice of intent to record a lien described in | 25 | | subsection (c) shall: (1) identify, by property index number, | 26 | | the property against which the lien is being sought; (2) |
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| 1 | | identify each specific homestead exemption that was | 2 | | erroneously granted and the year or years in which each | 3 | | exemption was granted; (3) set forth the erroneous exemption | 4 | | principal amount due and the interest amount and any penalty | 5 | | and administrative costs due; (4) inform the taxpayer that he | 6 | | or she may request a hearing within 30 days after service and | 7 | | may appeal the hearing officer's ruling to the circuit court; | 8 | | (5) inform the taxpayer that he or she may pay the erroneous | 9 | | exemption principal amount, plus interest and penalties, | 10 | | within 30 days after service; and (6) inform the taxpayer | 11 | | that, if the lien is recorded against the property, the amount | 12 | | of the lien will be adjusted to include the applicable | 13 | | recording fee and that fees for recording a release of the lien | 14 | | shall be incurred by the taxpayer. A lien shall not be filed | 15 | | pursuant to this Section if the taxpayer pays the erroneous | 16 | | exemption principal amount, plus penalties and interest, | 17 | | within 30 days of service of the notice of intent to record a | 18 | | lien. | 19 | | (e) The notice of intent to record a lien shall also | 20 | | include a form that the taxpayer may return to the chief county | 21 | | assessment officer to request a hearing. The taxpayer may | 22 | | request a hearing by returning the form within 30 days after | 23 | | service. The hearing shall be held within 90 days after the | 24 | | taxpayer is served. The chief county assessment officer shall | 25 | | promulgate rules of service and procedure for the hearing. The | 26 | | chief county assessment officer must generally follow rules of |
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| 1 | | evidence and practices that prevail in the county circuit | 2 | | courts, but, because of the nature of these proceedings, the | 3 | | chief county assessment officer is not bound by those rules in | 4 | | all particulars. The chief county assessment officer shall | 5 | | appoint a hearing officer to oversee the hearing. The taxpayer | 6 | | shall be allowed to present evidence to the hearing officer at | 7 | | the hearing. After taking into consideration all the relevant | 8 | | testimony and evidence, the hearing officer shall make an | 9 | | administrative decision on whether the taxpayer was | 10 | | erroneously granted a homestead exemption for the taxable year | 11 | | in question. The taxpayer may appeal the hearing officer's | 12 | | ruling to the circuit court of the county where the property is | 13 | | located as a final administrative decision under the | 14 | | Administrative Review Law. | 15 | | (f) A lien against the property imposed under this Section | 16 | | shall be filed with the county recorder of deeds, but may not | 17 | | be filed sooner than 60 days after the notice of intent to | 18 | | record a lien was delivered to the taxpayer if the taxpayer | 19 | | does not request a hearing, or until the conclusion of the | 20 | | hearing and all appeals if the taxpayer does request a | 21 | | hearing. If a lien is filed pursuant to this Section and the | 22 | | taxpayer received one or 2 erroneous homestead exemptions | 23 | | during any of the 3 collection years immediately prior to the | 24 | | current collection year in which the notice of discovery is | 25 | | served, then the erroneous exemption principal amount, plus | 26 | | 10% interest per annum or portion thereof from the date the |
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| 1 | | erroneous exemption principal amount would have become due if | 2 | | properly included in the tax bill, shall be charged against | 3 | | the property by the chief county assessment officer. However, | 4 | | if a lien is filed pursuant to this Section and the taxpayer | 5 | | received 3 or more erroneous homestead exemptions during any | 6 | | of the 6 collection years immediately prior to the current | 7 | | collection year in which the notice of discovery is served, | 8 | | the erroneous exemption principal amount, plus a penalty of | 9 | | 50% of the total amount of the erroneous exemption principal | 10 | | amount for that property and 10% interest per annum or portion | 11 | | thereof from the date the erroneous exemption principal amount | 12 | | would have become due if properly included in the tax bill, | 13 | | shall be charged against the property by the chief county | 14 | | assessment officer. If a lien is filed pursuant to this | 15 | | Section, the taxpayer shall not be liable for interest that | 16 | | accrues between the date the notice of discovery is served and | 17 | | the date the lien is filed. Before recording the lien with the | 18 | | county recorder of deeds, the chief county assessment officer | 19 | | shall adjust the amount of the lien to add administrative | 20 | | costs, including but not limited to the applicable recording | 21 | | fee, to the total lien amount. | 22 | | (g) If a person received an erroneous homestead exemption | 23 | | under Section 15-170 and: (1) the person was the spouse, | 24 | | child, grandchild, brother, sister, niece, or nephew of the | 25 | | previous taxpayer; and (2) the person received the property by | 26 | | bequest or inheritance; then the person is not liable for the |
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| 1 | | penalties imposed under this Section for any year or years | 2 | | during which the chief county assessment officer did not | 3 | | require an annual application for the exemption or, in a | 4 | | county with 3,000,000 or more inhabitants, an application for | 5 | | renewal of a multi-year exemption pursuant to subsection (i) | 6 | | of Section 15-170, as the case may be. However, that person is | 7 | | responsible for any interest owed under subsection (f). | 8 | | (h) If the erroneous homestead exemption was granted as a | 9 | | result of a clerical error or omission on the part of the chief | 10 | | county assessment officer, and if the taxpayer has paid the | 11 | | tax bills as received for the year in which the error occurred, | 12 | | then the interest and penalties authorized by this Section | 13 | | with respect to that homestead exemption shall not be | 14 | | chargeable to the taxpayer. However, nothing in this Section | 15 | | shall prevent the collection of the erroneous exemption | 16 | | principal amount due and owing. | 17 | | (i) A lien under this Section is not valid as to (1) any | 18 | | bona fide purchaser for value without notice of the erroneous | 19 | | homestead exemption whose rights in and to the underlying | 20 | | parcel arose after the erroneous homestead exemption was | 21 | | granted but before the filing of the notice of lien; or (2) any | 22 | | mortgagee, judgment creditor, or other lienor whose rights in | 23 | | and to the underlying parcel arose before the filing of the | 24 | | notice of lien. A title insurance policy for the property that | 25 | | is issued by a title company licensed to do business in the | 26 | | State showing that the property is free and clear of any liens |
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| 1 | | imposed under this Section shall be prima facie evidence that | 2 | | the taxpayer is without notice of the erroneous homestead | 3 | | exemption. Nothing in this Section shall be deemed to impair | 4 | | the rights of subsequent creditors and subsequent purchasers | 5 | | under Section 30 of the Conveyances Act. | 6 | | (j) When a lien is filed against the property pursuant to | 7 | | this Section, the chief county assessment officer shall mail a | 8 | | copy of the lien to the person to whom the most recent tax bill | 9 | | was mailed and to the owner of record, and the outstanding | 10 | | liability created by such a lien is due and payable within 30 | 11 | | days after the mailing of the lien by the chief county | 12 | | assessment officer. This liability is deemed delinquent and | 13 | | shall bear interest beginning on the day after the due date at | 14 | | a rate of 1.5% per month or portion thereof. Payment shall be | 15 | | made to the county treasurer. Upon receipt of the full amount | 16 | | due, as determined by the chief county assessment officer, the | 17 | | county treasurer shall distribute the amount paid as provided | 18 | | in subsection (k). Upon presentment by the taxpayer to the | 19 | | chief county assessment officer of proof of payment of the | 20 | | total liability, the chief county assessment officer shall | 21 | | provide in reasonable form a release of the lien. The release | 22 | | of the lien provided shall clearly inform the taxpayer that it | 23 | | is the responsibility of the taxpayer to record the lien | 24 | | release form with the county recorder of deeds and to pay any | 25 | | applicable recording fees. | 26 | | (k) The county treasurer shall pay collected erroneous |
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| 1 | | exemption principal amounts, pro rata, to the taxing | 2 | | districts, or their legal successors, that levied upon the | 3 | | subject property in the taxable year or years for which the | 4 | | erroneous homestead exemptions were granted, except as set | 5 | | forth in this Section. The county treasurer shall deposit | 6 | | collected penalties and interest into a special fund | 7 | | established by the county treasurer to offset the costs of | 8 | | administration of the provisions of this Section by the chief | 9 | | county assessment officer's office, as appropriated by the | 10 | | county board. If the costs of administration of this Section | 11 | | exceed the amount of interest and penalties collected in the | 12 | | special fund, the chief county assessor shall be reimbursed by | 13 | | each taxing district or their legal successors for those | 14 | | costs. Such costs shall be paid out of the funds collected by | 15 | | the county treasurer on behalf of each taxing district | 16 | | pursuant to this Section. | 17 | | (l) The chief county assessment officer in a county with | 18 | | 3,000,000 or more inhabitants shall establish an amnesty | 19 | | period for all taxpayers owing any tax due to an erroneous | 20 | | homestead exemption granted in a tax year prior to the 2013 tax | 21 | | year. The amnesty period shall begin on the effective date of | 22 | | this amendatory Act of the 98th General Assembly and shall run | 23 | | through December 31, 2013. If, during the amnesty period, the | 24 | | taxpayer pays the entire arrearage of taxes due for tax years | 25 | | prior to 2013, the county clerk shall abate and not seek to | 26 | | collect any interest or penalties that may be applicable and |
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| 1 | | shall not seek civil or criminal prosecution for any taxpayer | 2 | | for tax years prior to 2013. Failure to pay all such taxes due | 3 | | during the amnesty period established under this Section shall | 4 | | invalidate the amnesty period for that taxpayer. | 5 | | The chief county assessment officer in a county with | 6 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 7 | | amnesty period with the tax bills for the second installment | 8 | | of taxes for the 2012 assessment year and (ii) as soon as | 9 | | possible after the effective date of this amendatory Act of | 10 | | the 98th General Assembly, publish notice of the amnesty | 11 | | period in a newspaper of general circulation in the county. | 12 | | Notices shall include information on the amnesty period, its | 13 | | purpose, and the method by which to make payment. | 14 | | Taxpayers who are a party to any criminal investigation or | 15 | | to any civil or criminal litigation that is pending in any | 16 | | circuit court or appellate court, or in the Supreme Court of | 17 | | this State, for nonpayment, delinquency, or fraud in relation | 18 | | to any property tax imposed by any taxing district located in | 19 | | the State on the effective date of this amendatory Act of the | 20 | | 98th General Assembly may not take advantage of the amnesty | 21 | | period. | 22 | | A taxpayer who has claimed 3 or more homestead exemptions | 23 | | in error shall not be eligible for the amnesty period | 24 | | established under this subsection.
| 25 | | (m) Notwithstanding any other provision of law, for | 26 | | taxable years 2019 through 2023, in counties with 3,000,000 or |
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| 1 | | more inhabitants, the chief county assessment officer shall, | 2 | | if he or she learns that a taxpayer who has been granted a | 3 | | senior citizens homestead exemption has died during the period | 4 | | to which the exemption applies, send a notice to the address on | 5 | | record for the owner of record of the property notifying the | 6 | | owner that the exemption will be terminated unless, within 90 | 7 | | days after the notice is sent, the chief county assessment | 8 | | officer is provided with a basis to continue the exemption. | 9 | | The notice shall be sent by first-class mail, in an envelope | 10 | | that bears on its front, in boldface red lettering that is at | 11 | | least one inch in size, the words "Notice of Exemption | 12 | | Termination"; however, if the taxpayer elects to receive the | 13 | | notice by email and provides an email address, then the notice | 14 | | shall be sent by email. | 15 | | (Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20.)
| 16 | | (35 ILCS 200/15-10)
| 17 | | Sec. 15-10. Exempt property; procedures for certification. | 18 | | (a) All property
granted an exemption by the Department | 19 | | pursuant to the requirements of
Section 15-5 and
described in | 20 | | the Sections following Section 15-30 and preceding Section | 21 | | 16-5,
to the extent therein limited, is exempt from taxation.
| 22 | | In order to maintain that exempt status, the titleholder or | 23 | | the owner of the
beneficial interest of any property
that
is | 24 | | exempt must file with the chief county assessment
officer, on | 25 | | or before January 31 of each year (May 31 in the case of |
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| 1 | | property
exempted by Section 15-170), an affidavit stating | 2 | | whether there has been any
change in the ownership or use of | 3 | | the property, the status of the
owner-resident, the | 4 | | satisfaction by a relevant hospital entity of the condition | 5 | | for an exemption under Section 15-86, or that a veteran with a | 6 | | disability who qualifies under Section 15-165
owned and used | 7 | | the property as of January 1 of that year.
The nature of any
| 8 | | change shall be stated in the affidavit. Failure to file an | 9 | | affidavit shall,
in the discretion of the assessment officer, | 10 | | constitute cause to terminate the
exemption of that property, | 11 | | notwithstanding any other provision of this Code.
Owners of 5 | 12 | | or more such exempt parcels within a county may file a single
| 13 | | annual affidavit in lieu of an affidavit for each parcel. The | 14 | | assessment
officer, upon request, shall furnish an affidavit | 15 | | form to the owners, in which
the owner may state whether there | 16 | | has been any change in the ownership or use
of the property or | 17 | | status of the owner or resident as of January 1 of that
year. | 18 | | The owner of 5 or more exempt parcels shall list all the | 19 | | properties
giving the same information for each parcel as | 20 | | required of owners who file
individual affidavits.
| 21 | | (b) However, titleholders or owners of the beneficial | 22 | | interest in any property
exempted under any of the following | 23 | | provisions are not required to
submit an annual filing under | 24 | | this Section:
| 25 | | (1) Section 15-45 (burial grounds) in counties of less | 26 | | than 3,000,000
inhabitants and owned by a not-for-profit
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| 1 | | organization.
| 2 | | (2) Section 15-40.
| 3 | | (3) Section 15-50 (United States property).
| 4 | | (c) If there is a change in use or ownership, however, | 5 | | notice must be filed
pursuant to Section 15-20.
| 6 | | (d) An application for homestead exemptions shall be filed | 7 | | as provided in
Section 15-170 (senior citizens homestead | 8 | | exemption), Section 15-172 ( senior
citizens assessment freeze | 9 | | homestead exemption), and Sections
15-175 (general homestead | 10 | | exemption), 15-176
(general alternative
homestead exemption), | 11 | | and 15-177 (long-time occupant homestead exemption), | 12 | | respectively.
| 13 | | (e) For purposes of determining satisfaction of the | 14 | | condition for an exemption under Section 15-86: | 15 | | (1) The "year for which exemption is sought" is the | 16 | | year prior to the year in which the affidavit is due. | 17 | | (2) The "hospital year" is the fiscal year of the | 18 | | relevant hospital entity, or the fiscal year of one of the | 19 | | hospitals in the hospital system if the relevant hospital | 20 | | entity is a hospital system with members with different | 21 | | fiscal years, that ends in the year prior to the year in | 22 | | which the affidavit is due. However, if that fiscal year | 23 | | ends 3 months or less before the date on which the | 24 | | affidavit is due, the relevant hospital entity shall file | 25 | | an interim affidavit based on the currently available | 26 | | information, and shall file a supplemental affidavit |
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| 1 | | within 90 days of date on which the application was due, if | 2 | | the information in the relevant hospital entity's audited | 3 | | financial statements changes the interim affidavit's | 4 | | statement concerning the entity's compliance with the | 5 | | calculation required by Section 15-86. | 6 | | (3) The affidavit shall be accompanied by an exhibit | 7 | | prepared by the relevant hospital entity showing (A) the | 8 | | value of the relevant hospital entity's services and | 9 | | activities, if any, under items (1) through (7) of | 10 | | subsection (e) of Section 15-86, stated separately for | 11 | | each item, and (B) the value relating to the relevant | 12 | | hospital entity's estimated property tax liability under | 13 | | paragraphs (A), (B), and (C) of item (1) of subsection (g) | 14 | | of Section 15-86; under paragraphs (A), (B), and (C) of | 15 | | item (2) of subsection (g) of Section 15-86; and under | 16 | | item (3) of subsection (g) of Section 15-86. | 17 | | (Source: P.A. 99-143, eff. 7-27-15.)
| 18 | | (35 ILCS 200/15-172)
| 19 | | Sec. 15-172. Senior Citizens Assessment Freeze Homestead | 20 | | Exemption.
| 21 | | (a) This Section may be cited as the Senior Citizens | 22 | | Assessment
Freeze Homestead Exemption.
| 23 | | (b) As used in this Section:
| 24 | | "Applicant" means an individual who has filed an | 25 | | application under this
Section.
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| 1 | | "Base amount" means the base year equalized assessed value | 2 | | of the residence
plus the first year's equalized assessed | 3 | | value of any added improvements which
increased the assessed | 4 | | value of the residence after the base year.
| 5 | | "Base year" means the taxable year prior to the taxable | 6 | | year for which the
applicant first qualifies and applies for | 7 | | the exemption provided that in the
prior taxable year the | 8 | | property was improved with a permanent structure that
was | 9 | | occupied as a residence by the applicant who was liable for | 10 | | paying real
property taxes on the property and who was either | 11 | | (i) an owner of record of the
property or had legal or | 12 | | equitable interest in the property as evidenced by a
written | 13 | | instrument or (ii) had a legal or equitable interest as a | 14 | | lessee in the
parcel of property that was single family | 15 | | residence.
If in any subsequent taxable year for which the | 16 | | applicant applies and
qualifies for the exemption the | 17 | | equalized assessed value of the residence is
less than the | 18 | | equalized assessed value in the existing base year
(provided | 19 | | that such equalized assessed value is not
based
on an
assessed | 20 | | value that results from a temporary irregularity in the | 21 | | property that
reduces the
assessed value for one or more | 22 | | taxable years), then that
subsequent taxable year shall become | 23 | | the base year until a new base year is
established under the | 24 | | terms of this paragraph. For taxable year 1999 only, the
Chief | 25 | | County Assessment Officer shall review (i) all taxable years | 26 | | for which
the
applicant applied and qualified for the |
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| 1 | | exemption and (ii) the existing base
year.
The assessment | 2 | | officer shall select as the new base year the year with the
| 3 | | lowest equalized assessed value.
An equalized assessed value | 4 | | that is based on an assessed value that results
from a
| 5 | | temporary irregularity in the property that reduces the | 6 | | assessed value for one
or more
taxable years shall not be | 7 | | considered the lowest equalized assessed value.
The selected | 8 | | year shall be the base year for
taxable year 1999 and | 9 | | thereafter until a new base year is established under the
| 10 | | terms of this paragraph.
| 11 | | "Chief County Assessment Officer" means the County | 12 | | Assessor or Supervisor of
Assessments of the county in which | 13 | | the property is located.
| 14 | | "Equalized assessed value" means the assessed value as | 15 | | equalized by the
Illinois Department of Revenue.
| 16 | | "Household" means the applicant, the spouse of the | 17 | | applicant, and all persons
using the residence of the | 18 | | applicant as their principal place of residence.
| 19 | | "Household income" means the combined income of the | 20 | | members of a household
for the calendar year preceding the | 21 | | taxable year.
| 22 | | "Income" has the same meaning as provided in Section 3.07 | 23 | | of the Senior
Citizens and Persons with Disabilities Property | 24 | | Tax Relief
Act, except that, beginning in assessment year | 25 | | 2001, "income" does not
include veteran's benefits.
| 26 | | "Internal Revenue Code of 1986" means the United States |
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| 1 | | Internal Revenue Code
of 1986 or any successor law or laws | 2 | | relating to federal income taxes in effect
for the year | 3 | | preceding the taxable year.
| 4 | | "Life care facility that qualifies as a cooperative" means | 5 | | a facility as
defined in Section 2 of the Life Care Facilities | 6 | | Act.
| 7 | | "Maximum income limitation" means: | 8 | | (1) $35,000 prior
to taxable year 1999; | 9 | | (2) $40,000 in taxable years 1999 through 2003; | 10 | | (3) $45,000 in taxable years 2004 through 2005; | 11 | | (4) $50,000 in taxable years 2006 and 2007; | 12 | | (5) $55,000 in taxable years 2008 through 2016;
| 13 | | (6) for taxable year 2017, (i) $65,000 for qualified | 14 | | property located in a county with 3,000,000 or more | 15 | | inhabitants and (ii) $55,000 for qualified property | 16 | | located in a county with fewer than 3,000,000 inhabitants; | 17 | | and | 18 | | (7) for taxable years 2018 and thereafter, $65,000 for | 19 | | all qualified property. | 20 | | "Residence" means the principal dwelling place and | 21 | | appurtenant structures
used for residential purposes in this | 22 | | State occupied on January 1 of the
taxable year by a household | 23 | | and so much of the surrounding land, constituting
the parcel | 24 | | upon which the dwelling place is situated, as is used for
| 25 | | residential purposes. If the Chief County Assessment Officer | 26 | | has established a
specific legal description for a portion of |
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| 1 | | property constituting the
residence, then that portion of | 2 | | property shall be deemed the residence for the
purposes of | 3 | | this Section.
| 4 | | "Taxable year" means the calendar year during which ad | 5 | | valorem property taxes
payable in the next succeeding year are | 6 | | levied.
| 7 | | (c) Beginning in taxable year 1994, a senior citizens | 8 | | assessment freeze
homestead exemption is granted for real | 9 | | property that is improved with a
permanent structure that is | 10 | | occupied as a residence by an applicant who (i) is
65 years of | 11 | | age or older during the taxable year, (ii) has a household | 12 | | income that does not exceed the maximum income limitation, | 13 | | (iii) is liable for paying real property taxes on
the
| 14 | | property, and (iv) is an owner of record of the property or has | 15 | | a legal or
equitable interest in the property as evidenced by a | 16 | | written instrument. This
homestead exemption shall also apply | 17 | | to a leasehold interest in a parcel of
property improved with a | 18 | | permanent structure that is a single family residence
that is | 19 | | occupied as a residence by a person who (i) is 65 years of age | 20 | | or older
during the taxable year, (ii) has a household income | 21 | | that does not exceed the maximum income limitation,
(iii)
has | 22 | | a legal or equitable ownership interest in the property as | 23 | | lessee, and (iv)
is liable for the payment of real property | 24 | | taxes on that property.
| 25 | | Beginning in taxable year 2021, an assessment freeze | 26 | | homestead exemption is granted for real property that is |
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| 1 | | improved with a
permanent structure that is occupied as a | 2 | | residence by an applicant who (i) is
the surviving spouse of a | 3 | | fallen police officer, soldier, or rescue worker during the | 4 | | taxable year, (ii) has a household income that does not exceed | 5 | | the maximum income limitation, (iii) is liable for paying real | 6 | | property taxes on
the
property, and (iv) is an owner of record | 7 | | of the property or has a legal or
equitable interest in the | 8 | | property as evidenced by a written instrument. This
homestead | 9 | | exemption shall also apply to a leasehold interest in a parcel | 10 | | of
property improved with a permanent structure that is a | 11 | | single family residence
that is occupied as a residence by a | 12 | | person who (i) is the surviving spouse of a fallen police | 13 | | officer, soldier, or rescue worker
during the taxable year, | 14 | | (ii) has a household income that does not exceed the maximum | 15 | | income limitation,
(iii)
has a legal or equitable ownership | 16 | | interest in the property as lessee, and (iv)
is liable for the | 17 | | payment of real property taxes on that property.
| 18 | | In counties of 3,000,000 or more inhabitants, the amount | 19 | | of the exemption for all taxable years is the equalized | 20 | | assessed value of the
residence in the taxable year for which | 21 | | application is made minus the base
amount. In all other | 22 | | counties, the amount of the exemption is as follows: (i) | 23 | | through taxable year 2005 and for taxable year 2007 and | 24 | | thereafter, the amount of this exemption shall be the | 25 | | equalized assessed value of the
residence in the taxable year | 26 | | for which application is made minus the base
amount; and (ii) |
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| 1 | | for
taxable year 2006, the amount of the exemption is as | 2 | | follows:
| 3 | | (1) For an applicant who has a household income of | 4 | | $45,000 or less, the amount of the exemption is the | 5 | | equalized assessed value of the
residence in the taxable | 6 | | year for which application is made minus the base
amount. | 7 | | (2) For an applicant who has a household income | 8 | | exceeding $45,000 but not exceeding $46,250, 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 0.8. | 12 | | (3) For an applicant who has a household income | 13 | | exceeding $46,250 but not exceeding $47,500, 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 0.6. | 17 | | (4) For an applicant who has a household income | 18 | | exceeding $47,500 but not exceeding $48,750, the amount of | 19 | | the exemption is (i) the equalized assessed value of the
| 20 | | residence in the taxable year for which application is | 21 | | made minus the base
amount (ii) multiplied by 0.4. | 22 | | (5) For an applicant who has a household income | 23 | | exceeding $48,750 but not exceeding $50,000, the amount of | 24 | | the exemption is (i) the equalized assessed value of the
| 25 | | residence in the taxable year for which application is | 26 | | made minus the base
amount (ii) multiplied by 0.2.
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| 1 | | When the applicant is a surviving spouse of an applicant | 2 | | for a prior year for
the same residence for which an exemption | 3 | | under this Section has been granted,
the base year and base | 4 | | amount for that residence are the same as for the
applicant for | 5 | | the prior year.
| 6 | | Each year at the time the assessment books are certified | 7 | | to the County Clerk,
the Board of Review or Board of Appeals | 8 | | shall give to the County Clerk a list
of the assessed values of | 9 | | improvements on each parcel qualifying for this
exemption that | 10 | | were added after the base year for this parcel and that
| 11 | | increased the assessed value of the property.
| 12 | | In the case of land improved with an apartment building | 13 | | owned and operated as
a cooperative or a building that is a | 14 | | life care facility that qualifies as a
cooperative, the | 15 | | maximum reduction from the equalized assessed value of the
| 16 | | property is limited to the sum of the reductions calculated | 17 | | for each unit
occupied as a residence by a person or persons | 18 | | (i) 65 years of age or older, (ii) with a
household income that | 19 | | does not exceed the maximum income limitation, (iii) who is | 20 | | liable, by contract with the
owner
or owners of record, for | 21 | | paying real property taxes on the property, and (iv) who is
an | 22 | | owner of record of a legal or equitable interest in the | 23 | | cooperative
apartment building, other than a leasehold | 24 | | interest. In the instance of a
cooperative where a homestead | 25 | | exemption has been granted under this Section,
the cooperative | 26 | | association or its management firm shall credit the savings
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| 1 | | resulting from that exemption only to the apportioned tax | 2 | | liability of the
owner who qualified for the exemption. Any | 3 | | person who willfully refuses to
credit that savings to an | 4 | | owner who qualifies for the exemption is guilty of a
Class B | 5 | | misdemeanor.
| 6 | | When a homestead exemption has been granted under this | 7 | | Section and an
applicant then becomes a resident of a facility | 8 | | licensed under the Assisted Living and Shared Housing Act, the | 9 | | Nursing Home
Care Act, the Specialized Mental Health | 10 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 11 | | the MC/DD Act, the exemption shall be granted in subsequent | 12 | | years so long as the
residence (i) continues to be occupied by | 13 | | the qualified applicant's spouse or
(ii) if remaining | 14 | | unoccupied, is still owned by the qualified applicant for the
| 15 | | homestead exemption.
| 16 | | Beginning January 1, 1997, when an individual dies who | 17 | | would have qualified
for an exemption under this Section, and | 18 | | the surviving spouse does not
independently qualify for this | 19 | | exemption because of age, the exemption under
this Section | 20 | | shall be granted to the surviving spouse for the taxable year
| 21 | | preceding and the taxable
year of the death, provided that, | 22 | | except for age, the surviving spouse meets
all
other | 23 | | qualifications for the granting of this exemption for those | 24 | | years.
| 25 | | When married persons maintain separate residences, the | 26 | | exemption provided for
in this Section may be claimed by only |
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| 1 | | one of such persons and for only one
residence.
| 2 | | For taxable year 1994 only, in counties having less than | 3 | | 3,000,000
inhabitants, to receive the exemption, a person | 4 | | shall submit an application by
February 15, 1995 to the Chief | 5 | | County Assessment Officer
of the county in which the property | 6 | | is located. In counties having 3,000,000
or more inhabitants, | 7 | | for taxable year 1994 and all subsequent taxable years, to
| 8 | | receive the exemption, a person
may submit an application to | 9 | | the Chief County
Assessment Officer of the county in which the | 10 | | property is located during such
period as may be specified by | 11 | | the Chief County Assessment Officer. The Chief
County | 12 | | Assessment Officer in counties of 3,000,000 or more | 13 | | inhabitants shall
annually give notice of the application | 14 | | period by mail or by publication. In
counties having less than | 15 | | 3,000,000 inhabitants, beginning with taxable year
1995 and | 16 | | thereafter, to receive the exemption, a person
shall
submit an
| 17 | | application by July 1 of each taxable year to the Chief County | 18 | | Assessment
Officer of the county in which the property is | 19 | | located. A county may, by
ordinance, establish a date for | 20 | | submission of applications that is
different than
July 1.
The | 21 | | applicant shall submit with the
application an affidavit of | 22 | | the applicant's total household income, age,
marital status | 23 | | (and if married the name and address of the applicant's | 24 | | spouse,
if known), and principal dwelling place of members of | 25 | | the household on January
1 of the taxable year. The Department | 26 | | shall establish, by rule, a method for
verifying the accuracy |
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| 1 | | of affidavits filed by applicants under this Section, and the | 2 | | Chief County Assessment Officer may conduct audits of any | 3 | | taxpayer claiming an exemption under this Section to verify | 4 | | that the taxpayer is eligible to receive the exemption. Each | 5 | | application shall contain or be verified by a written | 6 | | declaration that it is made under the penalties of perjury. A | 7 | | taxpayer's signing a fraudulent application under this Act is | 8 | | perjury, as defined in Section 32-2 of the Criminal Code of | 9 | | 2012.
The applications shall be clearly marked as applications | 10 | | for the Senior
Citizens Assessment Freeze Homestead Exemption | 11 | | and must contain a notice that any taxpayer who receives the | 12 | | exemption is subject to an audit by the Chief County | 13 | | Assessment Officer.
| 14 | | Notwithstanding any other provision to the contrary, in | 15 | | counties having fewer
than 3,000,000 inhabitants, if an | 16 | | applicant fails
to file the application required by this | 17 | | Section in a timely manner and this
failure to file is due to a | 18 | | mental or physical condition sufficiently severe so
as to | 19 | | render the applicant incapable of filing the application in a | 20 | | timely
manner, the Chief County Assessment Officer may extend | 21 | | the filing deadline for
a period of 30 days after the applicant | 22 | | regains the capability to file the
application, but in no case | 23 | | may the filing deadline be extended beyond 3
months of the | 24 | | original filing deadline. In order to receive the extension
| 25 | | provided in this paragraph, the applicant shall provide the | 26 | | Chief County
Assessment Officer with a signed statement from |
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| 1 | | the applicant's physician, advanced practice registered nurse, | 2 | | or physician assistant
stating the nature and extent of the | 3 | | condition, that, in the
physician's, advanced practice | 4 | | registered nurse's, or physician assistant's opinion, the | 5 | | condition was so severe that it rendered the applicant
| 6 | | incapable of filing the application in a timely manner, and | 7 | | the date on which
the applicant regained the capability to | 8 | | file the application.
| 9 | | Beginning January 1, 1998, notwithstanding any other | 10 | | provision to the
contrary, in counties having fewer than | 11 | | 3,000,000 inhabitants, if an applicant
fails to file the | 12 | | application required by this Section in a timely manner and
| 13 | | this failure to file is due to a mental or physical condition | 14 | | sufficiently
severe so as to render the applicant incapable of | 15 | | filing the application in a
timely manner, the Chief County | 16 | | Assessment Officer may extend the filing
deadline for a period | 17 | | of 3 months. In order to receive the extension provided
in this | 18 | | paragraph, the applicant shall provide the Chief County | 19 | | Assessment
Officer with a signed statement from the | 20 | | applicant's physician, advanced practice registered nurse, or | 21 | | physician assistant stating the
nature and extent of the | 22 | | condition, and that, in the physician's, advanced practice | 23 | | registered nurse's, or physician assistant's opinion, the
| 24 | | condition was so severe that it rendered the applicant | 25 | | incapable of filing the
application in a timely manner.
| 26 | | In counties having less than 3,000,000 inhabitants, if an |
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| 1 | | applicant was
denied an exemption in taxable year 1994 and the | 2 | | denial occurred due to an
error on the part of an assessment
| 3 | | official, or his or her agent or employee, then beginning in | 4 | | taxable year 1997
the
applicant's base year, for purposes of | 5 | | determining the amount of the exemption,
shall be 1993 rather | 6 | | than 1994. In addition, in taxable year 1997, the
applicant's | 7 | | exemption shall also include an amount equal to (i) the amount | 8 | | of
any exemption denied to the applicant in taxable year 1995 | 9 | | as a result of using
1994, rather than 1993, as the base year, | 10 | | (ii) the amount of any exemption
denied to the applicant in | 11 | | taxable year 1996 as a result of using 1994, rather
than 1993, | 12 | | as the base year, and (iii) the amount of the exemption | 13 | | erroneously
denied for taxable year 1994.
| 14 | | For purposes of this Section, a person who will be 65 years | 15 | | of age during the
current taxable year shall be eligible to | 16 | | apply for the homestead exemption
during that taxable year. | 17 | | Application shall be made during the application
period in | 18 | | effect for the county of his or her residence.
| 19 | | The Chief County Assessment Officer may determine the | 20 | | eligibility of a life
care facility that qualifies as a | 21 | | cooperative to receive the benefits
provided by this Section | 22 | | by use of an affidavit, application, visual
inspection, | 23 | | questionnaire, or other reasonable method in order to insure | 24 | | that
the tax savings resulting from the exemption are credited | 25 | | by the management
firm to the apportioned tax liability of | 26 | | each qualifying resident. The Chief
County Assessment Officer |
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| 1 | | may request reasonable proof that the management firm
has so | 2 | | credited that exemption.
| 3 | | Except as provided in this Section, all information | 4 | | received by the chief
county assessment officer or the | 5 | | Department from applications filed under this
Section, or from | 6 | | any investigation conducted under the provisions of this
| 7 | | Section, shall be confidential, except for official purposes | 8 | | or
pursuant to official procedures for collection of any State | 9 | | or local tax or
enforcement of any civil or criminal penalty or | 10 | | sanction imposed by this Act or
by any statute or ordinance | 11 | | imposing a State or local tax. Any person who
divulges any such | 12 | | information in any manner, except in accordance with a proper
| 13 | | judicial order, is guilty of a Class A misdemeanor.
| 14 | | Nothing contained in this Section shall prevent the | 15 | | Director or chief county
assessment officer from publishing or | 16 | | making available reasonable statistics
concerning the | 17 | | operation of the exemption contained in this Section in which
| 18 | | the contents of claims are grouped into aggregates in such a | 19 | | way that
information contained in any individual claim shall | 20 | | not be disclosed. | 21 | | Notwithstanding any other provision of law, for taxable | 22 | | year 2017 and thereafter, in counties of 3,000,000 or more | 23 | | inhabitants, the amount of the exemption shall be the greater | 24 | | of (i) the amount of the exemption otherwise calculated under | 25 | | this Section or (ii) $2,000.
| 26 | | (c-5) Notwithstanding any other provision of law, each |
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| 1 | | chief county assessment officer may approve this exemption for | 2 | | the 2020 taxable year, without application, for any property | 3 | | that was approved for this exemption for the 2019 taxable | 4 | | year, provided that: | 5 | | (1) the county board has declared a local disaster as | 6 | | provided in the Illinois Emergency Management Agency Act | 7 | | related to the COVID-19 public health emergency; | 8 | | (2) the owner of record of the property as of January | 9 | | 1, 2020 is the same as the owner of record of the property | 10 | | as of January 1, 2019; | 11 | | (3) the exemption for the 2019 taxable year has not | 12 | | been determined to be an erroneous exemption as defined by | 13 | | this Code; and | 14 | | (4) the applicant for the 2019 taxable year has not | 15 | | asked for the exemption to be removed for the 2019 or 2020 | 16 | | taxable years. | 17 | | Nothing in this subsection shall preclude or impair the | 18 | | authority of a chief county assessment officer to conduct | 19 | | audits of any taxpayer claiming an exemption under this | 20 | | Section to verify that the taxpayer is eligible to receive the | 21 | | exemption as provided elsewhere in this Section. | 22 | | (d) Each Chief County Assessment Officer shall annually | 23 | | publish a notice
of availability of the exemption provided | 24 | | under this Section. The notice
shall be published at least 60 | 25 | | days but no more than 75 days prior to the date
on which the | 26 | | application must be submitted to the Chief County Assessment
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| 1 | | Officer of the county in which the property is located. The | 2 | | notice shall
appear in a newspaper of general circulation in | 3 | | the county.
| 4 | | Notwithstanding Sections 6 and 8 of the State Mandates | 5 | | Act, no reimbursement by the State is required for the | 6 | | implementation of any mandate created by this Section.
| 7 | | (Source: P.A. 100-401, eff. 8-25-17; 100-513, eff. 1-1-18; | 8 | | 100-863, eff. 8-14-18; 101-635, eff. 6-5-20.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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