State of Illinois
92nd General Assembly
Legislation

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92_SB1541

 
                                               LRB9211062SMdv

 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    Sections 14-20 and 15-172 as follows:

 6        (35 ILCS 200/14-20)
 7        Sec.  14-20.  Certificate of error; counties of less than
 8    3,000,000.  In  any   county   with   less   than   3,000,000
 9    inhabitants, if, at any time before judgment or order of sale
10    is  entered  in  any  proceeding  to collect or to enjoin the
11    collection  of  taxes  based  upon  any  assessment  of   any
12    property,  the  chief  county assessment officer discovers an
13    error or mistake in the  assessment  (other  than  errors  of
14    judgment  as  to  the  valuation  of the property), he or she
15    shall issue to the person erroneously assessed a  certificate
16    setting forth the nature of the error and the cause or causes
17    of  the  error.  In  any  county  with  less  than  3,000,000
18    inhabitants, if an owner fails to file an application for the
19    Senior   Citizens  and  Disabled  Persons  Assessment  Freeze
20    Homestead Exemption provided in  Section  15-172  during  the
21    previous assessment year and qualifies for the exemption, the
22    Chief  County Assessment Officer pursuant to this Section, or
23    the Board of Review pursuant to Section 16-75, shall issue  a
24    certificate  of  error  setting  forth  the  correct  taxable
25    valuation  of  the  property.  The certificate, when properly
26    endorsed by the majority of  the  board  of  review,  showing
27    their concurrence, and not otherwise, may be used in evidence
28    in   any   court  of  competent  jurisdiction,  and  when  so
29    introduced in evidence, shall become  a  part  of  the  court
30    record  and  shall not be removed from the files except on an
31    order of the court.
 
                            -2-                LRB9211062SMdv
 1    (Source: P.A. 90-552, eff. 12-12-97; 91-377, eff. 7-30-99.)

 2        (35 ILCS 200/15-172)
 3        Sec.  15-172.  Senior  Citizens  and   Disabled   Persons
 4    Assessment Freeze Homestead Exemption.
 5        (a)  This Section may be cited as the Senior Citizens and
 6    Disabled Persons Assessment Freeze Homestead Exemption.
 7        (b)  As used in this Section:
 8        "Applicant"   means   an  individual  who  has  filed  an
 9    application under this Section.
10        "Base amount" means  the  base  year  equalized  assessed
11    value  of  the  residence  plus  the  first  year's equalized
12    assessed value of any added improvements which increased  the
13    assessed value of the residence after the base year.
14        "Base  year"  means the taxable year prior to the taxable
15    year for which the applicant first qualifies and applies  for
16    the  exemption  provided  that  in the prior taxable year the
17    property was improved with a  permanent  structure  that  was
18    occupied  as  a residence by the applicant who was liable for
19    paying real property taxes on the property and who was either
20    (i) an owner of record  of  the  property  or  had  legal  or
21    equitable  interest in the property as evidenced by a written
22    instrument or (ii) had a legal or  equitable  interest  as  a
23    lessee  in  the  parcel  of  property  that was single family
24    residence. If in any subsequent taxable year  for  which  the
25    applicant   applies  and  qualifies  for  the  exemption  the
26    equalized assessed value of the residence is  less  than  the
27    equalized  assessed value in the existing base year (provided
28    that such  equalized  assessed  value  is  not  based  on  an
29    assessed  value that results from a temporary irregularity in
30    the property that reduces the assessed value for one or  more
31    taxable  years),  then  that  subsequent  taxable  year shall
32    become the base year until a new  base  year  is  established
33    under  the  terms  of  this paragraph.  For taxable year 1999
 
                            -3-                LRB9211062SMdv
 1    only, the Chief County Assessment Officer  shall  review  (i)
 2    all  taxable  years  for  which  the  applicant  applied  and
 3    qualified for the exemption and (ii) the existing base year.
 4    The  assessment officer shall select as the new base year the
 5    year with the lowest equalized assessed value.  An  equalized
 6    assessed  value  that  is  based  on  an  assessed value that
 7    results from a temporary irregularity in  the  property  that
 8    reduces  the  assessed  value  for  one or more taxable years
 9    shall not be considered the lowest equalized assessed  value.
10    The  selected  year  shall  be the base year for taxable year
11    1999 and thereafter until a  new  base  year  is  established
12    under the terms of this paragraph.
13        "Chief   County  Assessment  Officer"  means  the  County
14    Assessor or Supervisor of Assessments of the county in  which
15    the property is located.
16        "Disabled  person" means a person unable to engage in any
17    substantial  gainful  activity  by  reason  of  a   medically
18    determinable  physical  or  mental impairment that (i) can be
19    expected to result in death or (ii)  has  lasted  or  can  be
20    expected  to last for a continuous period of not less than 12
21    months.  Disabled persons applying for  the  exemption  under
22    this  Section  must  submit  proof  of  the disability in the
23    manner prescribed by the  chief  county  assessment  officer.
24    Proof  that  an  applicant  is eligible to receive disability
25    benefits under the federal Social  Security  Act  constitutes
26    proof  of  disability for purposes of this Section.  Issuance
27    of an Illinois Disabled Person  Identification  Card  to  the
28    applicant  stating  that  the  possessor  is  under a Class 2
29    disability,  as  defined  in  Section  4A  of  the   Illinois
30    Identification Card Act, constitutes proof that the person is
31    a  disabled  person for purposes of this Section.  A disabled
32    person not covered under the federal Social Security Act  and
33    not  presenting a Disabled Person Identification Card stating
34    that the claimant is under a  Class  2  disability  shall  be
 
                            -4-                LRB9211062SMdv
 1    examined  by  a  physician  designated  by  the  chief county
 2    assessment officer, and the status as a disabled person shall
 3    be determined using the  standards  of  the  Social  Security
 4    Administration.  The  applicant  shall  pay  the costs of any
 5    required examination.
 6        "Equalized assessed value" means the  assessed  value  as
 7    equalized by the Illinois Department of Revenue.
 8        "Household"  means  the  applicant,  the  spouse  of  the
 9    applicant,  and  all  persons  using  the  residence  of  the
10    applicant as their principal place of residence.
11        "Household  income"  means  the  combined  income  of the
12    members of a household for the calendar  year  preceding  the
13    taxable year.
14        "Income" has the same meaning as provided in Section 3.07
15    of  the  Senior  Citizens  and  Disabled Persons Property Tax
16    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
17    beginning  in assessment year 2001, "income" does not include
18    veteran's benefits.
19        "Internal Revenue Code of 1986" means the  United  States
20    Internal  Revenue  Code  of 1986 or any successor law or laws
21    relating to federal income  taxes  in  effect  for  the  year
22    preceding the taxable year.
23        "Life  care  facility  that  qualifies  as a cooperative"
24    means a facility as defined in Section 2  of  the  Life  Care
25    Facilities Act.
26        "Residence"   means  the  principal  dwelling  place  and
27    appurtenant structures used for residential purposes in  this
28    State  occupied  on  January  1  of  the  taxable  year  by a
29    household and so much of the surrounding  land,  constituting
30    the  parcel  upon which the dwelling place is situated, as is
31    used for residential purposes. If the Chief County Assessment
32    Officer has established a specific legal  description  for  a
33    portion  of  property  constituting  the residence, then that
34    portion of property shall be deemed  the  residence  for  the
 
                            -5-                LRB9211062SMdv
 1    purposes of this Section.
 2        "Taxable  year"  means  the calendar year during which ad
 3    valorem property taxes payable in the  next  succeeding  year
 4    are levied.
 5        (c)  Beginning  in  (1)  taxable  year 1994, for a senior
 6    citizens and (2) taxable year 2003, for disabled persons,  an
 7    assessment  freeze  homestead  exemption  is granted for real
 8    property that is improved with a permanent structure that  is
 9    occupied  as  a residence by an applicant who (i) is 65 years
10    of age or older, or disabled, during the taxable  year,  (ii)
11    has  a  household  income of $35,000 or less prior to taxable
12    year 1999 or  $40,000  or  less  in  taxable  year  1999  and
13    thereafter, (iii) is liable for paying real property taxes on
14    the  property, and (iv) is an owner of record of the property
15    or has a legal or  equitable  interest  in  the  property  as
16    evidenced  by  a written instrument. This homestead exemption
17    shall also apply to a  leasehold  interest  in  a  parcel  of
18    property improved with a permanent structure that is a single
19    family  residence that is occupied as a residence by a person
20    who (i) is 65 years of age or older, or disabled, during  the
21    taxable  year, (ii) has a household income of $35,000 or less
22    prior to taxable year 1999 or $40,000 or less in taxable year
23    1999 and thereafter, (iii) has a legal or equitable ownership
24    interest in the property as lessee, and (iv)  is  liable  for
25    the payment of real property taxes on that property.
26        The  amount  of  this  exemption  shall  be the equalized
27    assessed value of the residence in the taxable year for which
28    application is made minus the base amount.
29        When the applicant is a surviving spouse of an  applicant
30    for  a  prior  year  for  the  same  residence  for  which an
31    exemption under this Section has been granted, the base  year
32    and  base  amount  for that residence are the same as for the
33    applicant for the prior year.
34        Each year at the time the assessment books are  certified
 
                            -6-                LRB9211062SMdv
 1    to  the County Clerk, the Board of Review or Board of Appeals
 2    shall give to the County Clerk a list of the assessed  values
 3    of  improvements on each parcel qualifying for this exemption
 4    that were added after the base year for this parcel and  that
 5    increased the assessed value of the property.
 6        In  the  case of land improved with an apartment building
 7    owned and operated as a cooperative or a building that  is  a
 8    life  care  facility  that  qualifies  as  a cooperative, the
 9    maximum reduction from the equalized assessed  value  of  the
10    property  is  limited to the sum of the reductions calculated
11    for each unit occupied as a residence by a person or  persons
12    65  years  of  age  or  older,  or disabled, with a household
13    income of $35,000 or less  prior  to  taxable  year  1999  or
14    $40,000  or  less  in taxable year 1999 and thereafter who is
15    liable, by contract with the owner or owners of  record,  for
16    paying  real  property  taxes  on  the property and who is an
17    owner of record of a  legal  or  equitable  interest  in  the
18    cooperative   apartment  building,  other  than  a  leasehold
19    interest. In the instance of a cooperative where a  homestead
20    exemption   has   been   granted   under  this  Section,  the
21    cooperative association or its management firm  shall  credit
22    the  savings  resulting  from  that  exemption  only  to  the
23    apportioned  tax liability of the owner who qualified for the
24    exemption.  Any person who willfully refuses to  credit  that
25    savings to an owner who qualifies for the exemption is guilty
26    of a Class B misdemeanor.
27        When  a  homestead  exemption has been granted under this
28    Section and  an  applicant  then  becomes  a  resident  of  a
29    facility  licensed  under  the  Nursing  Home  Care  Act, the
30    exemption shall be granted in subsequent years so long as the
31    residence (i) continues  to  be  occupied  by  the  qualified
32    applicant's  spouse or (ii) if remaining unoccupied, is still
33    owned by the qualified applicant for the homestead exemption.
34        Beginning January 1, 1997 for senior citizens and January
 
                            -7-                LRB9211062SMdv
 1    1, 2004 for disabled persons, when  an  individual  dies  who
 2    would have qualified for an exemption under this Section, and
 3    the  surviving spouse does not independently qualify for this
 4    exemption because he or she meets neither the of age nor  the
 5    disability  requirement,  the  exemption  under  this Section
 6    shall be granted to the surviving spouse for the taxable year
 7    preceding and the taxable year of the death,  provided  that,
 8    except  for  meeting  neither  the  age  nor  the  disability
 9    requirement,   the   surviving   spouse   meets   all   other
10    qualifications  for  the granting of this exemption for those
11    years.
12        When married persons maintain  separate  residences,  the
13    exemption provided for in this Section may be claimed by only
14    one of such persons and for only one residence.
15        For  taxable year 1994 only, in counties having less than
16    3,000,000 inhabitants, to receive  the  exemption,  a  person
17    shall submit an application by February 15, 1995 to the Chief
18    County Assessment Officer of the county in which the property
19    is   located.    In   counties   having   3,000,000  or  more
20    inhabitants, for taxable year 1994 and all subsequent taxable
21    years, to receive the  exemption,  a  person  may  submit  an
22    application  to  the  Chief  County Assessment Officer of the
23    county in which the property is located during such period as
24    may be specified by the Chief County Assessment Officer.  The
25    Chief County Assessment Officer in counties of  3,000,000  or
26    more   inhabitants   shall   annually   give  notice  of  the
27    application period by mail or by  publication.   In  counties
28    having   less  than  3,000,000  inhabitants,  beginning  with
29    taxable year 1995 and thereafter, to receive the exemption, a
30    person shall submit an application by July 1 of each  taxable
31    year  to the Chief County Assessment Officer of the county in
32    which the property is located.  A county may,  by  ordinance,
33    establish  a  date  for  submission  of  applications that is
34    different than July 1. The applicant shall  submit  with  the
 
                            -8-                LRB9211062SMdv
 1    application  an  affidavit of the applicant's total household
 2    income, age, marital status (and  if  married  the  name  and
 3    address  of the applicant's spouse, if known), disability (if
 4    applying  for  the  exemption  as  a  disabled  person),  and
 5    principal dwelling place  of  members  of  the  household  on
 6    January   1   of  the  taxable  year.  The  Department  shall
 7    establish, by rule, a method for verifying  the  accuracy  of
 8    affidavits  filed  by  applicants  under  this  Section.  The
 9    applications  shall be clearly marked as applications for the
10    Senior  Citizens  and  Disabled  Persons  Assessment   Freeze
11    Homestead Exemption.
12        Notwithstanding  any  other provision to the contrary, in
13    counties having  fewer  than  3,000,000  inhabitants,  if  an
14    applicant  fails  to  file  the  application required by this
15    Section in a timely manner and this failure to file is due to
16    a mental or physical condition sufficiently severe so  as  to
17    render the applicant incapable of filing the application in a
18    timely manner, the Chief County Assessment Officer may extend
19    the  filing  deadline  for  a  period  of  30  days after the
20    applicant regains the capability to file the application, but
21    in no case may the  filing  deadline  be  extended  beyond  3
22    months  of the original filing deadline.  In order to receive
23    the extension provided in this paragraph, the applicant shall
24    provide the Chief County Assessment  Officer  with  a  signed
25    statement  from  the applicant's physician stating the nature
26    and  extent  of  the  condition,  that,  in  the  physician's
27    opinion, the condition was so severe  that  it  rendered  the
28    applicant  incapable  of  filing  the application in a timely
29    manner, and the date on  which  the  applicant  regained  the
30    capability to file the application.
31        Beginning  January  1,  1998,  notwithstanding  any other
32    provision to the contrary,  in  counties  having  fewer  than
33    3,000,000  inhabitants,  if  an  applicant  fails to file the
34    application required by this Section in a timely  manner  and
 
                            -9-                LRB9211062SMdv
 1    this failure to file is due to a mental or physical condition
 2    sufficiently  severe  so as to render the applicant incapable
 3    of filing the application  in  a  timely  manner,  the  Chief
 4    County  Assessment Officer may extend the filing deadline for
 5    a period of 3 months.  In  order  to  receive  the  extension
 6    provided  in  this paragraph, the applicant shall provide the
 7    Chief County Assessment Officer with a signed statement  from
 8    the  applicant's  physician  stating the nature and extent of
 9    the condition, and that,  in  the  physician's  opinion,  the
10    condition  was  so  severe  that  it  rendered  the applicant
11    incapable of filing the application in a timely manner.
12        In counties having less than 3,000,000 inhabitants, if an
13    applicant was denied an exemption in taxable  year  1994  and
14    the  denial  occurred  due  to  an  error  on  the part of an
15    assessment official, or his or her agent  or  employee,  then
16    beginning in taxable year 1997 the applicant's base year, for
17    purposes of determining the amount of the exemption, shall be
18    1993 rather than 1994. In addition, in taxable year 1997, the
19    applicant's  exemption  shall also include an amount equal to
20    (i) the amount of any exemption denied to  the  applicant  in
21    taxable  year  1995  as  a  result of using 1994, rather than
22    1993, as the base year, (ii)  the  amount  of  any  exemption
23    denied  to  the applicant in taxable year 1996 as a result of
24    using 1994, rather than 1993, as the base year, and (iii) the
25    amount of the exemption erroneously denied for  taxable  year
26    1994.
27        For  purposes  of  this  Section, a person who will be 65
28    years of age or is disabled during the current  taxable  year
29    shall be eligible to apply for the homestead exemption during
30    that  taxable  year.   Application  shall  be made during the
31    application period in effect for the county  of  his  or  her
32    residence.
33        The  Chief  County  Assessment  Officer may determine the
34    eligibility of a life  care  facility  that  qualifies  as  a
 
                            -10-               LRB9211062SMdv
 1    cooperative  to receive the benefits provided by this Section
 2    by use  of  an  affidavit,  application,  visual  inspection,
 3    questionnaire,  or other reasonable method in order to insure
 4    that  the  tax  savings  resulting  from  the  exemption  are
 5    credited by  the  management  firm  to  the  apportioned  tax
 6    liability  of  each  qualifying  resident.   The Chief County
 7    Assessment Officer may  request  reasonable  proof  that  the
 8    management firm has so credited that exemption.
 9        Except  as  provided  in  this  Section,  all information
10    received by  the  chief  county  assessment  officer  or  the
11    Department  from  applications  filed  under this Section, or
12    from any investigation conducted under the provisions of this
13    Section, shall be confidential, except for official  purposes
14    or  pursuant  to  official  procedures  for collection of any
15    State or local tax or enforcement of any  civil  or  criminal
16    penalty  or sanction imposed by this Act or by any statute or
17    ordinance imposing a State  or  local  tax.  Any  person  who
18    divulges  any  such  information  in  any  manner,  except in
19    accordance with a proper judicial order, is guilty of a Class
20    A misdemeanor.
21        Nothing contained  in  this  Section  shall  prevent  the
22    Director  or  chief county assessment officer from publishing
23    or making  available  reasonable  statistics  concerning  the
24    operation of the exemption contained in this Section in which
25    the  contents of claims are grouped into aggregates in such a
26    way that information contained in any individual claim  shall
27    not be disclosed.
28        (d)  Each  Chief County Assessment Officer shall annually
29    publish a notice of availability of  the  exemption  provided
30    under  this  Section.  The notice shall be published at least
31    60 days but no more than 75 days prior to the date  on  which
32    the  application  must  be  submitted  to  the  Chief  County
33    Assessment  Officer  of  the  county in which the property is
34    located.  The notice shall appear in a newspaper  of  general
 
                            -11-               LRB9211062SMdv
 1    circulation in the county.
 2    (Source:  P.A.  90-14,  eff.  7-1-97;  90-204,  eff. 7-25-97;
 3    90-523, eff. 11-13-97;  90-524,  eff.  1-1-98;  90-531,  eff.
 4    1-1-98;  90-655,  eff.  7-30-98;  91-45, eff. 6-30-99; 91-56,
 5    eff. 6-30-99; 91-819, eff. 6-13-00.)

 6        Section 90.  The State Mandates Act is amended by  adding
 7    Section 8.26 as follows:

 8        (30 ILCS 805/8.26 new)
 9        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
10    and 8 of this Act, no reimbursement by the State is  required
11    for  the  implementation  of  any  mandate  created  by  this
12    amendatory Act of the 92nd General Assembly.

13        Section  99.  Effective date.  This Act takes effect upon
14    becoming law.

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