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Full Text of SB0011  93rd General Assembly

SB0011 93rd General Assembly


093_SB0011

 
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 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Property Tax Code is amended by changing
 5    Section 15-172 as follows:

 6        (35 ILCS 200/15-172)
 7        Sec. 15-172. Senior Citizens Assessment Freeze  Homestead
 8    Exemption.
 9        (a)  This  Section  may  be  cited as the Senior Citizens
10    Assessment Freeze Homestead Exemption.
11        (b)  As used in this Section:
12        "Applicant"  means  an  individual  who  has   filed   an
13    application under this Section.
14        "Base  amount"  means  the  base  year equalized assessed
15    value of  the  residence  plus  the  first  year's  equalized
16    assessed  value of any added improvements which increased the
17    assessed value of the residence after the base year.
18        "Base year" means the taxable year prior to  the  taxable
19    year  for which the applicant first qualifies and applies for
20    the exemption provided that in the  prior  taxable  year  the
21    property  was  improved  with  a permanent structure that was
22    occupied as a residence by the applicant who was  liable  for
23    paying real property taxes on the property and who was either
24    (i)  an  owner  of  record  of  the  property or had legal or
25    equitable interest in the property as evidenced by a  written
26    instrument  or  (ii)  had  a legal or equitable interest as a
27    lessee in the parcel  of  property  that  was  single  family
28    residence.  If  in  any subsequent taxable year for which the
29    applicant  applies  and  qualifies  for  the  exemption   the
30    equalized  assessed  value  of the residence is less than the
31    equalized assessed value in the existing base year  (provided
 
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 1    that  such  equalized  assessed  value  is  not  based  on an
 2    assessed value that results from a temporary irregularity  in
 3    the  property that reduces the assessed value for one or more
 4    taxable years),  then  that  subsequent  taxable  year  shall
 5    become  the  base  year  until a new base year is established
 6    under the terms of this paragraph.   For  taxable  year  1999
 7    only,  the  Chief  County Assessment Officer shall review (i)
 8    all  taxable  years  for  which  the  applicant  applied  and
 9    qualified for the exemption and (ii) the existing base year.
10    The assessment officer shall select as the new base year  the
11    year  with  the lowest equalized assessed value. An equalized
12    assessed value that  is  based  on  an  assessed  value  that
13    results  from  a  temporary irregularity in the property that
14    reduces the assessed value for  one  or  more  taxable  years
15    shall  not be considered the lowest equalized assessed value.
16    The selected year shall be the base  year  for  taxable  year
17    1999  and  thereafter  until  a  new base year is established
18    under the terms of this paragraph.
19        "Chief  County  Assessment  Officer"  means  the   County
20    Assessor  or Supervisor of Assessments of the county in which
21    the property is located.
22        "Equalized assessed value" means the  assessed  value  as
23    equalized by the Illinois Department of Revenue.
24        "Household"  means  the  applicant,  the  spouse  of  the
25    applicant,  and  all  persons  using  the  residence  of  the
26    applicant as their principal place of residence.
27        "Household  income"  means  the  combined  income  of the
28    members of a household for the calendar  year  preceding  the
29    taxable year.
30        "Income" has the same meaning as provided in Section 3.07
31    of  the  Senior  Citizens  and  Disabled Persons Property Tax
32    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
33    beginning  in assessment year 2001, "income" does not include
34    veteran's benefits  and,  beginning  in  taxable  year  2003,
 
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 1    "income" does not include Social Security benefits.
 2        "Internal  Revenue  Code of 1986" means the United States
 3    Internal Revenue Code of 1986 or any successor  law  or  laws
 4    relating  to  federal  income  taxes  in  effect for the year
 5    preceding the taxable year.
 6        "Life care facility  that  qualifies  as  a  cooperative"
 7    means  a  facility  as  defined in Section 2 of the Life Care
 8    Facilities Act.
 9        "Residence"  means  the  principal  dwelling  place   and
10    appurtenant  structures used for residential purposes in this
11    State occupied  on  January  1  of  the  taxable  year  by  a
12    household  and  so much of the surrounding land, constituting
13    the parcel upon which the dwelling place is situated,  as  is
14    used for residential purposes. If the Chief County Assessment
15    Officer  has  established  a specific legal description for a
16    portion of property constituting  the  residence,  then  that
17    portion  of  property  shall  be deemed the residence for the
18    purposes of this Section.
19        "Taxable year" means the calendar year  during  which  ad
20    valorem  property  taxes  payable in the next succeeding year
21    are levied.
22        (c)  Beginning in taxable year 1994,  a  senior  citizens
23    assessment  freeze  homestead  exemption  is granted for real
24    property that is improved with a permanent structure that  is
25    occupied  as  a residence by an applicant who (i) is 65 years
26    of age or older during the taxable year, (ii) has a household
27    income of $35,000 or less prior  to  taxable  year  1999,  or
28    $40,000  or less in taxable years year 1999 through 2002, and
29    $45,000 or less in taxable year 2003 and thereafter, (iii) is
30    liable for paying real property taxes on  the  property,  and
31    (iv)  is an owner of record of the property or has a legal or
32    equitable interest in the property as evidenced by a  written
33    instrument.  This  homestead  exemption shall also apply to a
34    leasehold interest in a parcel of property  improved  with  a
 
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 1    permanent structure that is a single family residence that is
 2    occupied  as  a  residence by a person who (i) is 65 years of
 3    age or older during the taxable year, (ii)  has  a  household
 4    income  of  $35,000  or  less  prior to taxable year 1999, or
 5    $40,000 or less in taxable years year 1999 through 2002,  and
 6    $45,000  or  less  in taxable year 2003 and thereafter, (iii)
 7    has a legal or equitable ownership interest in  the  property
 8    as  lessee,  and  (iv)  is  liable  for  the  payment of real
 9    property taxes on that property.
10        The amount of  this  exemption  shall  be  the  equalized
11    assessed value of the residence in the taxable year for which
12    application is made minus the base amount.
13        When  the applicant is a surviving spouse of an applicant
14    for a  prior  year  for  the  same  residence  for  which  an
15    exemption  under this Section has been granted, the base year
16    and base amount for that residence are the same  as  for  the
17    applicant for the prior year.
18        Each  year at the time the assessment books are certified
19    to the County Clerk, the Board of Review or Board of  Appeals
20    shall  give to the County Clerk a list of the assessed values
21    of improvements on each parcel qualifying for this  exemption
22    that  were added after the base year for this parcel and that
23    increased the assessed value of the property.
24        In the case of land improved with an  apartment  building
25    owned  and  operated as a cooperative or a building that is a
26    life care facility  that  qualifies  as  a  cooperative,  the
27    maximum  reduction  from  the equalized assessed value of the
28    property is limited to the sum of the  reductions  calculated
29    for  each unit occupied as a residence by a person or persons
30    (i) 65 years of age or older, (ii) with a household income of
31    $35,000 or less prior to taxable year 1999,or $40,000 or less
32    in taxable years year 1999 through 2002, and $45,000 or  less
33    in  taxable year 2003 and thereafter, (iii) who is liable, by
34    contract with the owner or owners of record, for paying  real
 
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 1    property  taxes  on the property, and (iv) who is an owner of
 2    record of a legal or equitable interest  in  the  cooperative
 3    apartment  building,  other than a leasehold interest. In the
 4    instance of a cooperative where  a  homestead  exemption  has
 5    been  granted under this Section, the cooperative association
 6    or its management firm shall  credit  the  savings  resulting
 7    from  that exemption only to the apportioned tax liability of
 8    the owner who qualified for the exemption.   Any  person  who
 9    willfully  refuses  to  credit  that  savings to an owner who
10    qualifies  for  the  exemption  is  guilty  of  a   Class   B
11    misdemeanor.
12        When  a  homestead  exemption has been granted under this
13    Section and  an  applicant  then  becomes  a  resident  of  a
14    facility  licensed  under  the  Nursing  Home  Care  Act, the
15    exemption shall be granted in subsequent years so long as the
16    residence (i) continues  to  be  occupied  by  the  qualified
17    applicant's  spouse or (ii) if remaining unoccupied, is still
18    owned by the qualified applicant for the homestead exemption.
19        Beginning January 1, 1997, when an  individual  dies  who
20    would have qualified for an exemption under this Section, and
21    the  surviving spouse does not independently qualify for this
22    exemption because of age, the exemption  under  this  Section
23    shall be granted to the surviving spouse for the taxable year
24    preceding  and  the taxable year of the death, provided that,
25    except  for  age,  the  surviving  spouse  meets  all   other
26    qualifications  for  the granting of this exemption for those
27    years.
28        When married persons maintain  separate  residences,  the
29    exemption provided for in this Section may be claimed by only
30    one of such persons and for only one residence.
31        For  taxable year 1994 only, in counties having less than
32    3,000,000 inhabitants, to receive  the  exemption,  a  person
33    shall submit an application by February 15, 1995 to the Chief
34    County Assessment Officer of the county in which the property
 
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 1    is   located.    In   counties   having   3,000,000  or  more
 2    inhabitants, for taxable year 1994 and all subsequent taxable
 3    years, to receive the  exemption,  a  person  may  submit  an
 4    application  to  the  Chief  County Assessment Officer of the
 5    county in which the property is located during such period as
 6    may be specified by the Chief County Assessment Officer.  The
 7    Chief County Assessment Officer in counties of  3,000,000  or
 8    more   inhabitants   shall   annually   give  notice  of  the
 9    application period by mail or by  publication.   In  counties
10    having   less  than  3,000,000  inhabitants,  beginning  with
11    taxable year 1995 and thereafter, to receive the exemption, a
12    person shall submit an application by July 1 of each  taxable
13    year  to the Chief County Assessment Officer of the county in
14    which the property is located.  A county may,  by  ordinance,
15    establish  a  date  for  submission  of  applications that is
16    different than July 1. The applicant shall  submit  with  the
17    application  an  affidavit of the applicant's total household
18    income, age, marital status (and  if  married  the  name  and
19    address  of  the applicant's spouse, if known), and principal
20    dwelling place of members of the household on  January  1  of
21    the  taxable year. The Department shall establish, by rule, a
22    method for verifying the  accuracy  of  affidavits  filed  by
23    applicants  under  this  Section.  The  applications shall be
24    clearly  marked  as  applications  for  the  Senior  Citizens
25    Assessment Freeze Homestead Exemption.
26        Notwithstanding any other provision to the  contrary,  in
27    counties  having  fewer  than  3,000,000  inhabitants,  if an
28    applicant fails to file  the  application  required  by  this
29    Section in a timely manner and this failure to file is due to
30    a  mental  or physical condition sufficiently severe so as to
31    render the applicant incapable of filing the application in a
32    timely manner, the Chief County Assessment Officer may extend
33    the filing deadline  for  a  period  of  30  days  after  the
34    applicant regains the capability to file the application, but
 
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 1    in  no  case  may  the  filing  deadline be extended beyond 3
 2    months of the original filing deadline.  In order to  receive
 3    the extension provided in this paragraph, the applicant shall
 4    provide  the  Chief  County  Assessment Officer with a signed
 5    statement from the applicant's physician stating  the  nature
 6    and  extent  of  the  condition,  that,  in  the  physician's
 7    opinion,  the  condition  was  so severe that it rendered the
 8    applicant incapable of filing the  application  in  a  timely
 9    manner,  and  the  date  on  which the applicant regained the
10    capability to file the application.
11        Beginning January  1,  1998,  notwithstanding  any  other
12    provision  to  the  contrary,  in  counties having fewer than
13    3,000,000 inhabitants, if an  applicant  fails  to  file  the
14    application  required  by this Section in a timely manner and
15    this failure to file is due to a mental or physical condition
16    sufficiently severe so as to render the  applicant  incapable
17    of  filing  the  application  in  a  timely manner, the Chief
18    County Assessment Officer may extend the filing deadline  for
19    a  period  of  3  months.   In order to receive the extension
20    provided in this paragraph, the applicant shall  provide  the
21    Chief  County Assessment Officer with a signed statement from
22    the applicant's physician stating the nature  and  extent  of
23    the  condition,  and  that,  in  the physician'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
27    applicant  was  denied  an exemption in taxable year 1994 and
28    the denial occurred due  to  an  error  on  the  part  of  an
29    assessment  official,  or  his or her agent or employee, then
30    beginning in taxable year 1997 the applicant's base year, for
31    purposes of determining the amount of the exemption, shall be
32    1993 rather than 1994. In addition, in taxable year 1997, the
33    applicant's exemption shall also include an amount  equal  to
34    (i)  the  amount  of any exemption denied to the applicant in
 
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 1    taxable year 1995 as a result  of  using  1994,  rather  than
 2    1993,  as  the  base  year,  (ii) the amount of any exemption
 3    denied to the applicant in taxable year 1996 as a  result  of
 4    using 1994, rather than 1993, as the base year, and (iii) the
 5    amount  of  the exemption erroneously denied for taxable year
 6    1994.
 7        For purposes of this Section, a person  who  will  be  65
 8    years  of  age  during  the  current  taxable  year  shall be
 9    eligible to apply for the  homestead  exemption  during  that
10    taxable   year.    Application   shall  be  made  during  the
11    application period in effect for the county  of  his  or  her
12    residence.
13        The  Chief  County  Assessment  Officer may determine the
14    eligibility of a life  care  facility  that  qualifies  as  a
15    cooperative  to receive the benefits provided by this Section
16    by use  of  an  affidavit,  application,  visual  inspection,
17    questionnaire,  or other reasonable method in order to insure
18    that  the  tax  savings  resulting  from  the  exemption  are
19    credited by  the  management  firm  to  the  apportioned  tax
20    liability  of  each  qualifying  resident.   The Chief County
21    Assessment Officer may  request  reasonable  proof  that  the
22    management firm has so credited that exemption.
23        Except  as  provided  in  this  Section,  all information
24    received by  the  chief  county  assessment  officer  or  the
25    Department  from  applications  filed  under this Section, or
26    from any investigation conducted under the provisions of this
27    Section, shall be confidential, except for official  purposes
28    or  pursuant  to  official  procedures  for collection of any
29    State or local tax or enforcement of any  civil  or  criminal
30    penalty  or sanction imposed by this Act or by any statute or
31    ordinance imposing a State  or  local  tax.  Any  person  who
32    divulges  any  such  information  in  any  manner,  except in
33    accordance with a proper judicial order, is guilty of a Class
34    A misdemeanor.
 
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 1        Nothing contained  in  this  Section  shall  prevent  the
 2    Director  or  chief county assessment officer from publishing
 3    or making  available  reasonable  statistics  concerning  the
 4    operation of the exemption contained in this Section in which
 5    the  contents of claims are grouped into aggregates in such a
 6    way that information contained in any individual claim  shall
 7    not be disclosed.
 8        (d)  Each  Chief County Assessment Officer shall annually
 9    publish a notice of availability of  the  exemption  provided
10    under  this  Section.  The notice shall be published at least
11    60 days but no more than 75 days prior to the date  on  which
12    the  application  must  be  submitted  to  the  Chief  County
13    Assessment  Officer  of  the  county in which the property is
14    located.  The notice shall appear in a newspaper  of  general
15    circulation in the county.
16        (e)  Notwithstanding  Sections  6  and  8  of  the  State
17    Mandates  Act,  no reimbursement by the State is required for
18    the implementation of any mandate created by this Section.
19    (Source: P.A.  90-14,  eff.  7-1-97;  90-204,  eff.  7-25-97;
20    90-523,  eff.  11-13-97;  90-524,  eff.  1-1-98; 90-531, eff.
21    1-1-98; 90-655, eff. 7-30-98;  91-45,  eff.  6-30-99;  91-56,
22    eff. 6-30-99; 91-819, eff. 6-13-00.)

23        Section  90.  The State Mandates Act is amended by adding
24    Section 8.27 as follows:

25        (30 ILCS 805/8.27 new)
26        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
27    and  8 of this Act, no reimbursement by the State is required
28    for  the  implementation  of  any  mandate  created  by  this
29    amendatory Act of the 93rd General Assembly.

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