Full Text of HB5487 101st General Assembly
HB5487 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5487 Introduced , 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 that | 13 | | erroneously received a homestead exemption upon property. | 14 | | (b) Notwithstanding any other provision of law, in counties | 15 | | with 3,000,000 or more inhabitants, the chief county assessment | 16 | | officer shall include the following information with each | 17 | | assessment notice sent in a general assessment year: (1) a list | 18 | | of each homestead exemption available under Article 15 of this | 19 | | Code and a description of the eligibility criteria for that | 20 | | exemption, including the number of assessment years of | 21 | | 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 to | 24 | | the property in the current assessment year; (3) information | 25 | | regarding penalties and interest that may be incurred under | 26 | | this Section if the taxpayer received an erroneous homestead |
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| 1 | | exemption in a previous taxable year; and (4) notice of the | 2 | | 60-day grace period available under this subsection. If, within | 3 | | 60 days after receiving his or her assessment notice, the | 4 | | taxpayer notifies the chief county assessment officer that he | 5 | | or she received an erroneous homestead exemption in a previous | 6 | | taxable year, and if the taxpayer pays the erroneous exemption | 7 | | principal amount, plus interest as provided in subsection (f), | 8 | | then the taxpayer shall not be liable for the penalties | 9 | | provided in subsection (f) with respect to that exemption. | 10 | | (c) In counties with 3,000,000 or more inhabitants, when | 11 | | the chief county assessment officer determines that one or more | 12 | | erroneous homestead exemptions was applied to the property, the | 13 | | erroneous exemption principal amount, together with all | 14 | | applicable interest and penalties as provided in subsections | 15 | | (f) and (j), shall constitute a lien in the name of the People | 16 | | of Cook County on the property receiving the erroneous | 17 | | homestead exemption. Upon becoming aware of the existence of | 18 | | one or more erroneous homestead exemptions, the chief county | 19 | | assessment officer shall cause to be served, by both regular | 20 | | mail and certified mail, a notice of discovery as set forth in | 21 | | subsection (c-5). The chief county assessment officer in a | 22 | | county with 3,000,000 or more inhabitants may cause a lien to | 23 | | be recorded against property that (1) is located in the county | 24 | | and (2) received one or more erroneous homestead exemptions if, | 25 | | upon determination of the chief county assessment officer, the | 26 | | taxpayer received: (A) one or 2 erroneous homestead exemptions |
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| 1 | | for real property, including at least one erroneous homestead | 2 | | exemption granted for the property against which the lien is | 3 | | sought, during any of the 3 collection years immediately prior | 4 | | to the current collection year in which the notice of discovery | 5 | | is served; or (B) 3 or more erroneous homestead exemptions for | 6 | | real property, including at least one erroneous homestead | 7 | | exemption granted for the property against which the lien is | 8 | | sought, during any of the 6 collection years immediately prior | 9 | | to the current collection year in which the notice of discovery | 10 | | is served. Prior to recording the lien against the property, | 11 | | the chief county assessment officer shall cause to be served, | 12 | | by both regular mail and certified mail, return receipt | 13 | | requested, on the person to whom the most recent tax bill was | 14 | | mailed and the owner of record, a notice of intent to record a | 15 | | lien against the property. The chief county assessment officer | 16 | | shall cause the notice of intent to record a lien to be served | 17 | | within 3 years from the date on which the notice of discovery | 18 | | was served. | 19 | | (c-5) The notice of discovery described in subsection (c) | 20 | | shall: (1) identify, by property index number, the property for | 21 | | which the chief county assessment officer has knowledge | 22 | | indicating the existence of an erroneous homestead exemption; | 23 | | (2) set forth the taxpayer's liability for principal, interest, | 24 | | penalties, and administrative costs including, but not limited | 25 | | to, recording fees described in subsection (f); (3) inform the | 26 | | taxpayer that he or she will be served with a notice of intent |
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| 1 | | to record a lien within 3 years from the date of service of the | 2 | | notice of discovery; (4) inform the taxpayer that he or she may | 3 | | pay the outstanding amount, plus interest, penalties, and | 4 | | administrative costs at any time prior to being served with the | 5 | | notice of intent to record a lien or within 30 days after the | 6 | | notice of intent to record a lien is served; and (5) inform the | 7 | | taxpayer that, if the taxpayer provided notice to the chief | 8 | | county assessment officer as provided in subsection (d-1) of | 9 | | Section 15-175 of this Code, upon submission by the taxpayer of | 10 | | evidence of timely notice and receipt thereof by the chief | 11 | | county assessment officer, the chief county assessment officer | 12 | | will withdraw the notice of discovery and reissue a notice of | 13 | | discovery in compliance with this Section in which the taxpayer | 14 | | is not liable for interest and penalties for the current tax | 15 | | year in which the notice was received. | 16 | | For the purposes of this subsection (c-5): | 17 | | "Collection year" means the year in which the first and | 18 | | second installment of the current tax year is billed. | 19 | | "Current tax year" means the year prior to the collection | 20 | | year. | 21 | | (d) The notice of intent to record a lien described in | 22 | | subsection (c) shall: (1) identify, by property index number, | 23 | | the property against which the lien is being sought; (2) | 24 | | identify each specific homestead exemption that was | 25 | | erroneously granted and the year or years in which each | 26 | | exemption was granted; (3) set forth the erroneous exemption |
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| 1 | | principal amount due and the interest amount and any penalty | 2 | | and administrative costs due; (4) inform the taxpayer that he | 3 | | or she may request a hearing within 30 days after service and | 4 | | may appeal the hearing officer's ruling to the circuit court; | 5 | | (5) inform the taxpayer that he or she may pay the erroneous | 6 | | exemption principal amount, plus interest and penalties, | 7 | | within 30 days after service; and (6) inform the taxpayer that, | 8 | | if the lien is recorded against the property, the amount of the | 9 | | lien will be adjusted to include the applicable recording fee | 10 | | and that fees for recording a release of the lien shall be | 11 | | incurred by the taxpayer. A lien shall not be filed pursuant to | 12 | | this Section if the taxpayer pays the erroneous exemption | 13 | | principal amount, plus penalties and interest, within 30 days | 14 | | of service of the notice of intent to record a lien. | 15 | | (e) The notice of intent to record a lien shall also | 16 | | include a form that the taxpayer may return to the chief county | 17 | | assessment officer to request a hearing. The taxpayer may | 18 | | request a hearing by returning the form within 30 days after | 19 | | service. The hearing shall be held within 90 days after the | 20 | | taxpayer is served. The chief county assessment officer shall | 21 | | promulgate rules of service and procedure for the hearing. The | 22 | | chief county assessment officer must generally follow rules of | 23 | | evidence and practices that prevail in the county circuit | 24 | | courts, but, because of the nature of these proceedings, the | 25 | | chief county assessment officer is not bound by those rules in | 26 | | all particulars. The chief county assessment officer shall |
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| 1 | | appoint a hearing officer to oversee the hearing. The taxpayer | 2 | | shall be allowed to present evidence to the hearing officer at | 3 | | the hearing. After taking into consideration all the relevant | 4 | | testimony and evidence, the hearing officer shall make an | 5 | | administrative decision on whether the taxpayer was | 6 | | erroneously granted a homestead exemption for the taxable year | 7 | | in question. The taxpayer may appeal the hearing officer's | 8 | | ruling to the circuit court of the county where the property is | 9 | | located as a final administrative decision under the | 10 | | Administrative Review Law. | 11 | | (f) A lien against the property imposed under this Section | 12 | | shall be filed with the county recorder of deeds, but may not | 13 | | be filed sooner than 60 days after the notice of intent to | 14 | | record a lien was delivered to the taxpayer if the taxpayer | 15 | | does not request a hearing, or until the conclusion of the | 16 | | hearing and all appeals if the taxpayer does request a hearing. | 17 | | If a lien is filed pursuant to this Section and the taxpayer | 18 | | received one or 2 erroneous homestead exemptions during any of | 19 | | the 3 collection years immediately prior to the current | 20 | | collection year in which the notice of discovery is served, | 21 | | then the erroneous exemption principal amount, plus 10% | 22 | | interest per annum or portion thereof from the date the | 23 | | erroneous exemption principal amount would have become due if | 24 | | properly included in the tax bill, shall be charged against the | 25 | | property by the chief county assessment officer. However, if a | 26 | | lien is filed pursuant to this Section and the taxpayer |
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| 1 | | received 3 or more erroneous homestead exemptions during any of | 2 | | the 6 collection years immediately prior to the current | 3 | | collection year in which the notice of discovery is served, the | 4 | | erroneous exemption principal amount, plus a penalty of 50% of | 5 | | the total amount of the erroneous exemption principal amount | 6 | | for that property and 10% interest per annum or portion thereof | 7 | | from the date the erroneous exemption principal amount would | 8 | | have become due if properly included in the tax bill, shall be | 9 | | charged against the property by the chief county assessment | 10 | | officer. If a lien is filed pursuant to this Section, the | 11 | | taxpayer shall not be liable for interest that accrues between | 12 | | the date the notice of discovery is served and the date the | 13 | | lien is filed. Before recording the lien with the county | 14 | | recorder of deeds, the chief county assessment officer shall | 15 | | adjust the amount of the lien to add administrative costs, | 16 | | including but not limited to the applicable recording fee, to | 17 | | the total lien amount. | 18 | | (g) If a person received an erroneous homestead exemption | 19 | | under Section 15-170 and: (1) the person was the spouse, child, | 20 | | grandchild, brother, sister, niece, or nephew of the previous | 21 | | taxpayer; and (2) the person received the property by bequest | 22 | | or inheritance; then the person is not liable for the penalties | 23 | | imposed under this Section for any year or years during which | 24 | | the chief county assessment officer did not require an annual | 25 | | application for the exemption or, in a county with 3,000,000 or | 26 | | more inhabitants, an application for renewal of a multi-year |
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| 1 | | exemption pursuant to subsection (i) of Section 15-170, as the | 2 | | case may be. However, that person is responsible for any | 3 | | interest owed under subsection (f). | 4 | | (h) If the erroneous homestead exemption was granted as a | 5 | | result of a clerical error or omission on the part of the chief | 6 | | county assessment officer, and if the taxpayer has paid the tax | 7 | | bills as received for the year in which the error occurred, | 8 | | then the interest and penalties authorized by this Section with | 9 | | respect to that homestead exemption shall not be chargeable to | 10 | | the taxpayer. However, nothing in this Section shall prevent | 11 | | the collection of the erroneous exemption principal amount due | 12 | | and owing. | 13 | | (i) A lien under this Section is not valid as to (1) any | 14 | | bona fide purchaser for value without notice of the erroneous | 15 | | homestead exemption whose rights in and to the underlying | 16 | | parcel arose after the erroneous homestead exemption was | 17 | | granted but before the filing of the notice of lien; or (2) any | 18 | | mortgagee, judgment creditor, or other lienor whose rights in | 19 | | and to the underlying parcel arose before the filing of the | 20 | | notice of lien. A title insurance policy for the property that | 21 | | is issued by a title company licensed to do business in the | 22 | | State showing that the property is free and clear of any liens | 23 | | imposed under this Section shall be prima facie evidence that | 24 | | the taxpayer is without notice of the erroneous homestead | 25 | | exemption. Nothing in this Section shall be deemed to impair | 26 | | the rights of subsequent creditors and subsequent purchasers |
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| 1 | | under Section 30 of the Conveyances Act. | 2 | | (j) When a lien is filed against the property pursuant to | 3 | | this Section, the chief county assessment officer shall mail a | 4 | | copy of the lien to the person to whom the most recent tax bill | 5 | | was mailed and to the owner of record, and the outstanding | 6 | | liability created by such a lien is due and payable within 30 | 7 | | days after the mailing of the lien by the chief county | 8 | | assessment officer. This liability is deemed delinquent and | 9 | | shall bear interest beginning on the day after the due date at | 10 | | a rate of 1.5% per month or portion thereof. Payment shall be | 11 | | made to the county treasurer. Upon receipt of the full amount | 12 | | due, as determined by the chief county assessment officer, the | 13 | | county treasurer shall distribute the amount paid as provided | 14 | | in subsection (k). Upon presentment by the taxpayer to the | 15 | | chief county assessment officer of proof of payment of the | 16 | | total liability, the chief county assessment officer shall | 17 | | provide in reasonable form a release of the lien. The release | 18 | | of the lien provided shall clearly inform the taxpayer that it | 19 | | is the responsibility of the taxpayer to record the lien | 20 | | release form with the county recorder of deeds and to pay any | 21 | | applicable recording fees. | 22 | | (k) The county treasurer shall pay collected erroneous | 23 | | exemption principal amounts, pro rata, to the taxing districts, | 24 | | or their legal successors, that levied upon the subject | 25 | | property in the taxable year or years for which the erroneous | 26 | | homestead exemptions were granted, except as set forth in this |
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| 1 | | Section. The county treasurer shall deposit collected | 2 | | penalties and interest into a special fund established by the | 3 | | county treasurer to offset the costs of administration of the | 4 | | provisions of this Section by the chief county assessment | 5 | | officer's office, as appropriated by the county board. If the | 6 | | costs of administration of this Section exceed the amount of | 7 | | interest and penalties collected in the special fund, the chief | 8 | | county assessor shall be reimbursed by each taxing district or | 9 | | their legal successors for those costs. Such costs shall be | 10 | | paid out of the funds collected by the county treasurer on | 11 | | behalf of each taxing district pursuant to this Section. | 12 | | (l) The chief county assessment officer in a county with | 13 | | 3,000,000 or more inhabitants shall establish an amnesty period | 14 | | for all taxpayers owing any tax due to an erroneous homestead | 15 | | exemption granted in a tax year prior to the 2013 tax year. The | 16 | | amnesty period shall begin on the effective date of this | 17 | | amendatory Act of the 98th General Assembly and shall run | 18 | | through December 31, 2013. If, during the amnesty period, the | 19 | | taxpayer pays the entire arrearage of taxes due for tax years | 20 | | prior to 2013, the county clerk shall abate and not seek to | 21 | | collect any interest or penalties that may be applicable and | 22 | | shall not seek civil or criminal prosecution for any taxpayer | 23 | | for tax years prior to 2013. Failure to pay all such taxes due | 24 | | during the amnesty period established under this Section shall | 25 | | invalidate the amnesty period for that taxpayer. | 26 | | The chief county assessment officer in a county with |
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| 1 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 2 | | amnesty period with the tax bills for the second installment of | 3 | | taxes for the 2012 assessment year and (ii) as soon as possible | 4 | | after the effective date of this amendatory Act of the 98th | 5 | | General Assembly, publish notice of the amnesty period in a | 6 | | newspaper of general circulation in the county. Notices shall | 7 | | include information on the amnesty period, its purpose, and the | 8 | | method by which to make payment. | 9 | | Taxpayers who are a party to any criminal investigation or | 10 | | to any civil or criminal litigation that is pending in any | 11 | | circuit court or appellate court, or in the Supreme Court of | 12 | | this State, for nonpayment, delinquency, or fraud in relation | 13 | | to any property tax imposed by any taxing district located in | 14 | | the State on the effective date of this amendatory Act of the | 15 | | 98th General Assembly may not take advantage of the amnesty | 16 | | period. | 17 | | A taxpayer who has claimed 3 or more homestead exemptions | 18 | | in error shall not be eligible for the amnesty period | 19 | | established under this subsection.
| 20 | | (m) Notwithstanding any other provision of law, for taxable | 21 | | years 2019 through 2023, in counties with 3,000,000 or more | 22 | | inhabitants, the chief county assessment officer shall, if he | 23 | | or she learns that a taxpayer who has been granted a senior | 24 | | citizens homestead exemption has died during the period to | 25 | | which the exemption applies, send a notice to the address on | 26 | | record for the owner of record of the property notifying the |
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| 1 | | owner that the exemption will be terminated unless, within 90 | 2 | | days after the notice is sent, the chief county assessment | 3 | | officer is provided with a basis to continue the exemption. The | 4 | | notice shall be sent by first-class mail, in an envelope that | 5 | | bears on its front, in boldface red lettering that is at least | 6 | | one inch in size, the words "Notice of Exemption Termination"; | 7 | | however, if the taxpayer elects to receive the notice by email | 8 | | and provides an email address, then the notice shall be sent by | 9 | | email. | 10 | | (Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20.)
| 11 | | (35 ILCS 200/15-10)
| 12 | | Sec. 15-10. Exempt property; procedures for certification. | 13 | | (a) All property
granted an exemption by the Department | 14 | | pursuant to the requirements of
Section 15-5 and
described in | 15 | | the Sections following Section 15-30 and preceding Section | 16 | | 16-5,
to the extent therein limited, is exempt from taxation.
| 17 | | In order to maintain that exempt status, the titleholder or the | 18 | | owner of the
beneficial interest of any property
that
is exempt | 19 | | must file with the chief county assessment
officer, on or | 20 | | before January 31 of each year (May 31 in the case of property
| 21 | | exempted by Section 15-170), an affidavit stating whether there | 22 | | has been any
change in the ownership or use of the property, | 23 | | the status of the
owner-resident, the satisfaction by a | 24 | | relevant hospital entity of the condition for an exemption | 25 | | under Section 15-86, or that a veteran with a disability who |
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| 1 | | qualifies under Section 15-165
owned and used the property as | 2 | | of January 1 of that year.
The nature of any
change shall be | 3 | | stated in the affidavit. Failure to file an affidavit shall,
in | 4 | | the discretion of the assessment officer, constitute cause to | 5 | | terminate the
exemption of that property, notwithstanding any | 6 | | other provision of this Code.
Owners of 5 or more such exempt | 7 | | parcels within a county may file a single
annual affidavit in | 8 | | lieu of an affidavit for each parcel. The assessment
officer, | 9 | | upon request, shall furnish an affidavit form to the owners, in | 10 | | which
the owner may state whether there has been any change in | 11 | | the ownership or use
of the property or status of the owner or | 12 | | resident as of January 1 of that
year. The owner of 5 or more | 13 | | exempt parcels shall list all the properties
giving the same | 14 | | information for each parcel as required of owners who file
| 15 | | individual affidavits.
| 16 | | (b) However, titleholders or owners of the beneficial | 17 | | interest in any property
exempted under any of the following | 18 | | provisions are not required to
submit an annual filing under | 19 | | this Section:
| 20 | | (1) Section 15-45 (burial grounds) in counties of less | 21 | | than 3,000,000
inhabitants and owned by a not-for-profit
| 22 | | organization.
| 23 | | (2) Section 15-40.
| 24 | | (3) Section 15-50 (United States property).
| 25 | | (c) If there is a change in use or ownership, however, | 26 | | notice must be filed
pursuant to Section 15-20.
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| 1 | | (d) An application for homestead exemptions shall be filed | 2 | | as provided in
Section 15-170 (senior citizens homestead | 3 | | exemption), Section 15-172 ( senior
citizens assessment freeze | 4 | | homestead exemption), and Sections
15-175 (general homestead | 5 | | exemption), 15-176
(general alternative
homestead exemption), | 6 | | and 15-177 (long-time occupant homestead exemption), | 7 | | respectively.
| 8 | | (e) For purposes of determining satisfaction of the | 9 | | condition for an exemption under Section 15-86: | 10 | | (1) The "year for which exemption is sought" is the | 11 | | year prior to the year in which the affidavit is due. | 12 | | (2) The "hospital year" is the fiscal year of the | 13 | | relevant hospital entity, or the fiscal year of one of the | 14 | | hospitals in the hospital system if the relevant hospital | 15 | | entity is a hospital system with members with different | 16 | | fiscal years, that ends in the year prior to the year in | 17 | | which the affidavit is due. However, if that fiscal year | 18 | | ends 3 months or less before the date on which the | 19 | | affidavit is due, the relevant hospital entity shall file | 20 | | an interim affidavit based on the currently available | 21 | | information, and shall file a supplemental affidavit | 22 | | within 90 days of date on which the application was due, if | 23 | | the information in the relevant hospital entity's audited | 24 | | financial statements changes the interim affidavit's | 25 | | statement concerning the entity's compliance with the | 26 | | calculation required by Section 15-86. |
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| 1 | | (3) The affidavit shall be accompanied by an exhibit | 2 | | prepared by the relevant hospital entity showing (A) the | 3 | | value of the relevant hospital entity's services and | 4 | | activities, if any, under items (1) through (7) of | 5 | | subsection (e) of Section 15-86, stated separately for each | 6 | | item, and (B) the value relating to the relevant hospital | 7 | | entity's estimated property tax liability under paragraphs | 8 | | (A), (B), and (C) of item (1) of subsection (g) of Section | 9 | | 15-86; under paragraphs (A), (B), and (C) of item (2) of | 10 | | subsection (g) of Section 15-86; and under item (3) of | 11 | | subsection (g) of Section 15-86. | 12 | | (Source: P.A. 99-143, eff. 7-27-15.)
| 13 | | (35 ILCS 200/15-172)
| 14 | | Sec. 15-172. Senior Citizens Assessment Freeze Homestead | 15 | | Exemption.
| 16 | | (a) This Section may be cited as the Senior Citizens | 17 | | Assessment
Freeze Homestead Exemption.
| 18 | | (b) As used in this Section:
| 19 | | "Applicant" means an individual who has filed an | 20 | | application under this
Section.
| 21 | | "Base amount" means the base year equalized assessed value | 22 | | of the residence
plus the first year's equalized assessed value | 23 | | of any added improvements which
increased the assessed value of | 24 | | the residence after the base year.
| 25 | | "Base year" means the taxable year prior to the taxable |
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| 1 | | year for which the
applicant first qualifies and applies for | 2 | | the exemption provided that in the
prior taxable year the | 3 | | property was improved with a permanent structure that
was | 4 | | occupied as a residence by the applicant who was liable for | 5 | | paying real
property taxes on the property and who was either | 6 | | (i) an owner of record of the
property or had legal or | 7 | | equitable interest in the property as evidenced by a
written | 8 | | instrument or (ii) had a legal or equitable interest as a | 9 | | lessee in the
parcel of property that was single family | 10 | | residence.
If in any subsequent taxable year for which the | 11 | | applicant applies and
qualifies for the exemption the equalized | 12 | | assessed value of the residence is
less than the equalized | 13 | | assessed value in the existing base year
(provided that such | 14 | | equalized assessed value is not
based
on an
assessed value that | 15 | | results from a temporary irregularity in the property that
| 16 | | reduces the
assessed value for one or more taxable years), then | 17 | | that
subsequent taxable year shall become the base year until a | 18 | | new base year is
established under the terms of this paragraph. | 19 | | For taxable year 1999 only, the
Chief County Assessment Officer | 20 | | shall review (i) all taxable years for which
the
applicant | 21 | | applied and qualified for the exemption and (ii) the existing | 22 | | base
year.
The assessment officer shall select as the new base | 23 | | year the year with the
lowest equalized assessed value.
An | 24 | | equalized assessed value that is based on an assessed value | 25 | | that results
from a
temporary irregularity in the property that | 26 | | reduces the assessed value for one
or more
taxable years shall |
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| 1 | | not be considered the lowest equalized assessed value.
The | 2 | | selected year shall be the base year for
taxable year 1999 and | 3 | | thereafter until a new base year is established under the
terms | 4 | | of this paragraph.
| 5 | | "Chief County Assessment Officer" means the County | 6 | | Assessor or Supervisor of
Assessments of the county in which | 7 | | the property is located.
| 8 | | "Equalized assessed value" means the assessed value as | 9 | | equalized by the
Illinois Department of Revenue.
| 10 | | "Household" means the applicant, the spouse of the | 11 | | applicant, and all persons
using the residence of the applicant | 12 | | as their principal place of residence.
| 13 | | "Household income" means the combined income of the members | 14 | | of a household
for the calendar year preceding the taxable | 15 | | year.
| 16 | | "Income" has the same meaning as provided in Section 3.07 | 17 | | of the Senior
Citizens and Persons with Disabilities Property | 18 | | Tax Relief
Act, except that, beginning in assessment year 2001, | 19 | | "income" does not
include veteran's benefits.
| 20 | | "Internal Revenue Code of 1986" means the United States | 21 | | Internal Revenue Code
of 1986 or any successor law or laws | 22 | | relating to federal income taxes in effect
for the year | 23 | | preceding the taxable year.
| 24 | | "Life care facility that qualifies as a cooperative" means | 25 | | a facility as
defined in Section 2 of the Life Care Facilities | 26 | | Act.
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| 1 | | "Maximum income limitation" means: | 2 | | (1) $35,000 prior
to taxable year 1999; | 3 | | (2) $40,000 in taxable years 1999 through 2003; | 4 | | (3) $45,000 in taxable years 2004 through 2005; | 5 | | (4) $50,000 in taxable years 2006 and 2007; | 6 | | (5) $55,000 in taxable years 2008 through 2016;
| 7 | | (6) for taxable year 2017, (i) $65,000 for qualified | 8 | | property located in a county with 3,000,000 or more | 9 | | inhabitants and (ii) $55,000 for qualified property | 10 | | located in a county with fewer than 3,000,000 inhabitants; | 11 | | and | 12 | | (7) for taxable years 2018 and thereafter, $65,000 for | 13 | | all qualified property. | 14 | | "Residence" means the principal dwelling place and | 15 | | appurtenant structures
used for residential purposes in this | 16 | | State occupied on January 1 of the
taxable year by a household | 17 | | and so much of the surrounding land, constituting
the parcel | 18 | | upon which the dwelling place is situated, as is used for
| 19 | | residential purposes. If the Chief County Assessment Officer | 20 | | has established a
specific legal description for a portion of | 21 | | property constituting the
residence, then that portion of | 22 | | property shall be deemed the residence for the
purposes of this | 23 | | Section.
| 24 | | "Taxable year" means the calendar year during which ad | 25 | | valorem property taxes
payable in the next succeeding year are | 26 | | levied.
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| 1 | | (c) Beginning in taxable year 1994, a senior citizens | 2 | | assessment freeze
homestead exemption is granted for real | 3 | | property that is improved with a
permanent structure that is | 4 | | occupied as a residence by an applicant who (i) is
65 years of | 5 | | age or older during the taxable year, (ii) has a household | 6 | | income that does not exceed the maximum income limitation, | 7 | | (iii) is liable for paying real property taxes on
the
property, | 8 | | and (iv) is an owner of record of the property or has a legal or
| 9 | | equitable interest in the property as evidenced by a written | 10 | | instrument. This
homestead exemption shall also apply to a | 11 | | leasehold interest in a parcel of
property improved with a | 12 | | permanent structure that is a single family residence
that is | 13 | | occupied as a residence by a person who (i) is 65 years of age | 14 | | or older
during the taxable year, (ii) has a household income | 15 | | that does not exceed the maximum income limitation,
(iii)
has a | 16 | | legal or equitable ownership interest in the property as | 17 | | lessee, and (iv)
is liable for the payment of real property | 18 | | taxes on that property.
| 19 | | Beginning in taxable year 2020, an assessment freeze | 20 | | homestead exemption is granted for real property that is | 21 | | improved with a
permanent structure that is occupied as a | 22 | | residence by an applicant who (i) is
the surviving spouse of a | 23 | | fallen police officer, soldier, or rescue worker during the | 24 | | taxable year, (ii) has a household income that does not exceed | 25 | | the maximum income limitation, (iii) is liable for paying real | 26 | | property taxes on
the
property, and (iv) is an owner of record |
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| 1 | | of the property or has a legal or
equitable interest in the | 2 | | property as evidenced by a written instrument. This
homestead | 3 | | exemption shall also apply to a leasehold interest in a parcel | 4 | | of
property improved with a permanent structure that is a | 5 | | single family residence
that is occupied as a residence by a | 6 | | person who (i) is the surviving spouse of a fallen police | 7 | | officer, soldier, or rescue worker
during the taxable year, | 8 | | (ii) has a household income that does not exceed the maximum | 9 | | income limitation,
(iii)
has a legal or equitable ownership | 10 | | interest in the property as lessee, and (iv)
is liable for the | 11 | | payment of real property taxes on that property.
| 12 | | In counties of 3,000,000 or more inhabitants, the amount of | 13 | | the exemption for all taxable years is the equalized assessed | 14 | | value of the
residence in the taxable year for which | 15 | | application is made minus the base
amount. In all other | 16 | | counties, the amount of the exemption is as follows: (i) | 17 | | through taxable year 2005 and for taxable year 2007 and | 18 | | thereafter, the amount of this exemption shall be the equalized | 19 | | assessed value of the
residence in the taxable year for which | 20 | | application is made minus the base
amount; and (ii) for
taxable | 21 | | year 2006, the amount of the exemption is as follows:
| 22 | | (1) For an applicant who has a household income of | 23 | | $45,000 or less, the amount of the exemption is the | 24 | | equalized assessed value of the
residence in the taxable | 25 | | year for which application is made minus the base
amount. | 26 | | (2) For an applicant who has a household income |
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| 1 | | exceeding $45,000 but not exceeding $46,250, the amount of | 2 | | the exemption is (i) the equalized assessed value of the
| 3 | | residence in the taxable year for which application is made | 4 | | minus the base
amount (ii) multiplied by 0.8. | 5 | | (3) For an applicant who has a household income | 6 | | exceeding $46,250 but not exceeding $47,500, the amount of | 7 | | the exemption is (i) the equalized assessed value of the
| 8 | | residence in the taxable year for which application is made | 9 | | minus the base
amount (ii) multiplied by 0.6. | 10 | | (4) For an applicant who has a household income | 11 | | exceeding $47,500 but not exceeding $48,750, the amount of | 12 | | the exemption is (i) the equalized assessed value of the
| 13 | | residence in the taxable year for which application is made | 14 | | minus the base
amount (ii) multiplied by 0.4. | 15 | | (5) For an applicant who has a household income | 16 | | exceeding $48,750 but not exceeding $50,000, the amount of | 17 | | the exemption is (i) the equalized assessed value of the
| 18 | | residence in the taxable year for which application is made | 19 | | minus the base
amount (ii) multiplied by 0.2.
| 20 | | When the applicant is a surviving spouse of an applicant | 21 | | for a prior year for
the same residence for which an exemption | 22 | | under this Section has been granted,
the base year and base | 23 | | amount for that residence are the same as for the
applicant for | 24 | | the prior year.
| 25 | | Each year at the time the assessment books are certified to | 26 | | the County Clerk,
the Board of Review or Board of Appeals shall |
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| 1 | | give to the County Clerk a list
of the assessed values of | 2 | | improvements on each parcel qualifying for this
exemption that | 3 | | were added after the base year for this parcel and that
| 4 | | increased the assessed value of the property.
| 5 | | In the case of land improved with an apartment building | 6 | | owned and operated as
a cooperative or a building that is a | 7 | | life care facility that qualifies as a
cooperative, the maximum | 8 | | reduction from the equalized assessed value of the
property is | 9 | | limited to the sum of the reductions calculated for each unit
| 10 | | occupied as a residence by a person or persons (i) 65 years of | 11 | | age or older, (ii) with a
household income that does not exceed | 12 | | the maximum income limitation, (iii) who is liable, by contract | 13 | | with the
owner
or owners of record, for paying real property | 14 | | taxes on the property, and (iv) who is
an owner of record of a | 15 | | legal or equitable interest in the cooperative
apartment | 16 | | building, other than a leasehold interest. In the instance of a
| 17 | | cooperative where a homestead exemption has been granted under | 18 | | this Section,
the cooperative association or its management | 19 | | firm shall credit the savings
resulting from that exemption | 20 | | only to the apportioned tax liability of the
owner who | 21 | | qualified for the exemption. Any person who willfully refuses | 22 | | to
credit that savings to an owner who qualifies for the | 23 | | exemption is guilty of a
Class B misdemeanor.
| 24 | | When a homestead exemption has been granted under this | 25 | | Section and an
applicant then becomes a resident of a facility | 26 | | licensed under the Assisted Living and Shared Housing Act, the |
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| 1 | | Nursing Home
Care Act, the Specialized Mental Health | 2 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 3 | | the MC/DD Act, the exemption shall be granted in subsequent | 4 | | years so long as the
residence (i) continues to be occupied by | 5 | | the qualified applicant's spouse or
(ii) if remaining | 6 | | unoccupied, is still owned by the qualified applicant for the
| 7 | | homestead exemption.
| 8 | | Beginning January 1, 1997, when an individual dies who | 9 | | would have qualified
for an exemption under this Section, and | 10 | | the surviving spouse does not
independently qualify for this | 11 | | exemption because of age, the exemption under
this Section | 12 | | shall be granted to the surviving spouse for the taxable year
| 13 | | preceding and the taxable
year of the death, provided that, | 14 | | except for age, the surviving spouse meets
all
other | 15 | | qualifications for the granting of this exemption for those | 16 | | years.
| 17 | | When married persons maintain separate residences, the | 18 | | exemption provided for
in this Section may be claimed by only | 19 | | one of such persons and for only one
residence.
| 20 | | For taxable year 1994 only, in counties having less than | 21 | | 3,000,000
inhabitants, to receive the exemption, a person shall | 22 | | submit an application by
February 15, 1995 to the Chief County | 23 | | Assessment Officer
of the county in which the property is | 24 | | located. In counties having 3,000,000
or more inhabitants, for | 25 | | taxable year 1994 and all subsequent taxable years, to
receive | 26 | | the exemption, a person
may submit an application to the Chief |
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| 1 | | County
Assessment Officer of the county in which the property | 2 | | is located during such
period as may be specified by the Chief | 3 | | County Assessment Officer. The Chief
County Assessment Officer | 4 | | in counties of 3,000,000 or more inhabitants shall
annually | 5 | | give notice of the application period by mail or by | 6 | | publication. In
counties having less than 3,000,000 | 7 | | inhabitants, beginning with taxable year
1995 and thereafter, | 8 | | to receive the exemption, a person
shall
submit an
application | 9 | | by July 1 of each taxable year to the Chief County Assessment
| 10 | | Officer of the county in which the property is located. A | 11 | | county may, by
ordinance, establish a date for submission of | 12 | | applications that is
different than
July 1.
The applicant shall | 13 | | submit with the
application an affidavit of the applicant's | 14 | | total household income, age,
marital status (and if married the | 15 | | name and address of the applicant's spouse,
if known), and | 16 | | principal dwelling place of members of the household on January
| 17 | | 1 of the taxable year. The Department shall establish, by rule, | 18 | | a method for
verifying the accuracy of affidavits filed by | 19 | | applicants under this Section, and the Chief County Assessment | 20 | | Officer may conduct audits of any taxpayer claiming an | 21 | | exemption under this Section to verify that the taxpayer is | 22 | | eligible to receive the exemption. Each application shall | 23 | | contain or be verified by a written declaration that it is made | 24 | | under the penalties of perjury. A taxpayer's signing a | 25 | | fraudulent application under this Act is perjury, as defined in | 26 | | Section 32-2 of the Criminal Code of 2012.
The applications |
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| 1 | | shall be clearly marked as applications for the Senior
Citizens | 2 | | Assessment Freeze Homestead Exemption and must contain a notice | 3 | | that any taxpayer who receives the exemption is subject to an | 4 | | audit by the Chief County Assessment Officer.
| 5 | | Notwithstanding any other provision to the contrary, in | 6 | | counties having fewer
than 3,000,000 inhabitants, if an | 7 | | applicant fails
to file the application required by this | 8 | | Section in a timely manner and this
failure to file is due to a | 9 | | mental or physical condition sufficiently severe so
as to | 10 | | render the applicant incapable of filing the application in a | 11 | | timely
manner, the Chief County Assessment Officer may extend | 12 | | the filing deadline for
a period of 30 days after the applicant | 13 | | regains the capability to file the
application, but in no case | 14 | | may the filing deadline be extended beyond 3
months of the | 15 | | original filing deadline. In order to receive the extension
| 16 | | provided in this paragraph, the applicant shall provide the | 17 | | Chief County
Assessment Officer with a signed statement from | 18 | | the applicant's physician, advanced practice registered nurse, | 19 | | or physician assistant
stating the nature and extent of the | 20 | | condition, that, in the
physician's, advanced practice | 21 | | registered nurse's, or physician assistant's opinion, the | 22 | | condition was so severe that it rendered the applicant
| 23 | | incapable of filing the application in a timely manner, and the | 24 | | date on which
the applicant regained the capability to file the | 25 | | application.
| 26 | | Beginning January 1, 1998, notwithstanding any other |
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| 1 | | provision to the
contrary, in counties having fewer than | 2 | | 3,000,000 inhabitants, if an applicant
fails to file the | 3 | | application required by this Section in a timely manner and
| 4 | | this failure to file is due to a mental or physical condition | 5 | | sufficiently
severe so as to render the applicant incapable of | 6 | | filing the application in a
timely manner, the Chief County | 7 | | Assessment Officer may extend the filing
deadline for a period | 8 | | of 3 months. In order to receive the extension provided
in this | 9 | | paragraph, the applicant shall provide the Chief County | 10 | | Assessment
Officer with a signed statement from the applicant's | 11 | | physician, advanced practice registered nurse, or physician | 12 | | assistant stating the
nature and extent of the condition, and | 13 | | that, in the physician's, advanced practice registered | 14 | | nurse's, or physician assistant's opinion, the
condition was so | 15 | | severe that it rendered the applicant incapable of filing the
| 16 | | application in a timely manner.
| 17 | | In counties having less than 3,000,000 inhabitants, if an | 18 | | applicant was
denied an exemption in taxable year 1994 and the | 19 | | denial occurred due to an
error on the part of an assessment
| 20 | | official, or his or her agent or employee, then beginning in | 21 | | taxable year 1997
the
applicant's base year, for purposes of | 22 | | determining the amount of the exemption,
shall be 1993 rather | 23 | | than 1994. In addition, in taxable year 1997, the
applicant's | 24 | | exemption shall also include an amount equal to (i) the amount | 25 | | of
any exemption denied to the applicant in taxable year 1995 | 26 | | as a result of using
1994, rather than 1993, as the base year, |
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| 1 | | (ii) the amount of any exemption
denied to the applicant in | 2 | | taxable year 1996 as a result of using 1994, rather
than 1993, | 3 | | as the base year, and (iii) the amount of the exemption | 4 | | erroneously
denied for taxable year 1994.
| 5 | | For purposes of this Section, a person who will be 65 years | 6 | | of age during the
current taxable year shall be eligible to | 7 | | apply for the homestead exemption
during that taxable year. | 8 | | Application shall be made during the application
period in | 9 | | effect for the county of his or her residence.
| 10 | | The Chief County Assessment Officer may determine the | 11 | | eligibility of a life
care facility that qualifies as a | 12 | | cooperative to receive the benefits
provided by this Section by | 13 | | use of an affidavit, application, visual
inspection, | 14 | | questionnaire, or other reasonable method in order to insure | 15 | | that
the tax savings resulting from the exemption are credited | 16 | | by the management
firm to the apportioned tax liability of each | 17 | | qualifying resident. The Chief
County Assessment Officer may | 18 | | request reasonable proof that the management firm
has so | 19 | | credited that exemption.
| 20 | | Except as provided in this Section, all information | 21 | | received by the chief
county assessment officer or the | 22 | | Department from applications filed under this
Section, or from | 23 | | any investigation conducted under the provisions of this
| 24 | | Section, shall be confidential, except for official purposes or
| 25 | | pursuant to official procedures for collection of any State or | 26 | | local tax or
enforcement of any civil or criminal penalty or |
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| 1 | | sanction imposed by this Act or
by any statute or ordinance | 2 | | imposing a State or local tax. Any person who
divulges any such | 3 | | information in any manner, except in accordance with a proper
| 4 | | judicial order, is guilty of a Class A misdemeanor.
| 5 | | Nothing contained in this Section shall prevent the | 6 | | Director or chief county
assessment officer from publishing or | 7 | | making available reasonable statistics
concerning the | 8 | | operation of the exemption contained in this Section in which
| 9 | | the contents of claims are grouped into aggregates in such a | 10 | | way that
information contained in any individual claim shall | 11 | | not be disclosed. | 12 | | Notwithstanding any other provision of law, for taxable | 13 | | year 2017 and thereafter, in counties of 3,000,000 or more | 14 | | inhabitants, the amount of the exemption shall be the greater | 15 | | of (i) the amount of the exemption otherwise calculated under | 16 | | this Section or (ii) $2,000.
| 17 | | (d) Each Chief County Assessment Officer shall annually | 18 | | publish a notice
of availability of the exemption provided | 19 | | under this Section. The notice
shall be published at least 60 | 20 | | days but no more than 75 days prior to the date
on which the | 21 | | application must be submitted to the Chief County Assessment
| 22 | | Officer of the county in which the property is located. The | 23 | | notice shall
appear in a newspaper of general circulation in | 24 | | the county.
| 25 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 26 | | no reimbursement by the State is required for the |
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| 1 | | implementation of any mandate created by this Section.
| 2 | | (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15; | 3 | | 99-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff. | 4 | | 8-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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