Bill Text: IL HB1596 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Property Tax Code. In the Senior Citizens Assessment Freeze Homestead Exemption provisions of the Code, provides that "household income" does not include wages paid to a member of the household who is a person with a disability. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-03-19 - House Committee Amendment No. 1 Rules Refers to Revenue & Finance Committee [HB1596 Detail]

Download: Illinois-2019-HB1596-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1596

Introduced , by Rep. Monica Bristow

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172

Amends the Property Tax Code. In the Senior Citizens Assessment Freeze Homestead Exemption provisions of the Code, provides that "household income" does not include wages paid to a member of the household who is a person with a disability. 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,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Section 15-172 as follows:
6 (35 ILCS 200/15-172)
7 Sec. 15-172. Senior Citizens Assessment Freeze Homestead
8Exemption.
9 (a) This Section may be cited as the Senior Citizens
10Assessment Freeze Homestead Exemption.
11 (b) As used in this Section:
12 "Applicant" means an individual who has filed an
13application under this Section.
14 "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year.
18 "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption provided that in the prior taxable year the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying real property taxes on the property and who was either

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1(i) an owner of record of the property or had legal or
2equitable interest in the property as evidenced by a written
3instrument or (ii) had a legal or equitable interest as a
4lessee in the parcel of property that was single family
5residence. If in any subsequent taxable year for which the
6applicant applies and qualifies for the exemption the equalized
7assessed value of the residence is less than the equalized
8assessed value in the existing base year (provided that such
9equalized assessed value is not based on an assessed value that
10results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years), then
12that subsequent taxable year shall become the base year until a
13new base year is established under the terms of this paragraph.
14For taxable year 1999 only, the Chief County Assessment Officer
15shall review (i) all taxable years for which the applicant
16applied and qualified for the exemption and (ii) the existing
17base year. The assessment officer shall select as the new base
18year the year with the lowest equalized assessed value. An
19equalized assessed value that is based on an assessed value
20that results from a temporary irregularity in the property that
21reduces the assessed value for one or more taxable years shall
22not be considered the lowest equalized assessed value. The
23selected year shall be the base year for taxable year 1999 and
24thereafter until a new base year is established under the terms
25of this paragraph.
26 "Chief County Assessment Officer" means the County

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1Assessor or Supervisor of Assessments of the county in which
2the property is located.
3 "Equalized assessed value" means the assessed value as
4equalized by the Illinois Department of Revenue.
5 "Household" means the applicant, the spouse of the
6applicant, and all persons using the residence of the applicant
7as their principal place of residence.
8 "Household income" means the combined income of the members
9of a household for the calendar year preceding the taxable
10year. Notwithstanding any other provision of law, "household
11income" does not include wages paid to a member of the
12household who is a person with a disability.
13 "Income" has the same meaning as provided in Section 3.07
14of the Senior Citizens and Persons with Disabilities Property
15Tax Relief Act, except that, beginning in assessment year 2001,
16"income" does not include veteran's benefits.
17 "Internal Revenue Code of 1986" means the United States
18Internal Revenue Code of 1986 or any successor law or laws
19relating to federal income taxes in effect for the year
20preceding the taxable year.
21 "Life care facility that qualifies as a cooperative" means
22a facility as defined in Section 2 of the Life Care Facilities
23Act.
24 "Maximum income limitation" means:
25 (1) $35,000 prior to taxable year 1999;
26 (2) $40,000 in taxable years 1999 through 2003;

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1 (3) $45,000 in taxable years 2004 through 2005;
2 (4) $50,000 in taxable years 2006 and 2007;
3 (5) $55,000 in taxable years 2008 through 2016;
4 (6) for taxable year 2017, (i) $65,000 for qualified
5 property located in a county with 3,000,000 or more
6 inhabitants and (ii) $55,000 for qualified property
7 located in a county with fewer than 3,000,000 inhabitants;
8 and
9 (7) for taxable years 2018 and thereafter, $65,000 for
10 all qualified property.
11 "Person with a disability" means a person who suffers from
12a permanent physical or mental impairment resulting from
13disease, an injury, a functional disorder, or a congenital
14condition that renders the person incapable of adequately
15providing for his or her own health or personal care.
16 "Residence" means the principal dwelling place and
17appurtenant structures used for residential purposes in this
18State occupied on January 1 of the taxable year by a household
19and so much of the surrounding land, constituting the parcel
20upon which the dwelling place is situated, as is used for
21residential purposes. If the Chief County Assessment Officer
22has established a specific legal description for a portion of
23property constituting the residence, then that portion of
24property shall be deemed the residence for the purposes of this
25Section.
26 "Taxable year" means the calendar year during which ad

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1valorem property taxes payable in the next succeeding year are
2levied.
3 (c) Beginning in taxable year 1994, a senior citizens
4assessment freeze homestead exemption is granted for real
5property that is improved with a permanent structure that is
6occupied as a residence by an applicant who (i) is 65 years of
7age or older during the taxable year, (ii) has a household
8income that does not exceed the maximum income limitation,
9(iii) is liable for paying real property taxes on the property,
10and (iv) is an owner of record of the property or has a legal or
11equitable interest in the property as evidenced by a written
12instrument. This homestead exemption shall also apply to a
13leasehold interest in a parcel of property improved with a
14permanent structure that is a single family residence that is
15occupied as a residence by a person who (i) is 65 years of age
16or older during the taxable year, (ii) has a household income
17that does not exceed the maximum income limitation, (iii) has a
18legal or equitable ownership interest in the property as
19lessee, and (iv) is liable for the payment of real property
20taxes on that property.
21 In counties of 3,000,000 or more inhabitants, the amount of
22the exemption for all taxable years is the equalized assessed
23value of the residence in the taxable year for which
24application is made minus the base amount. In all other
25counties, the amount of the exemption is as follows: (i)
26through taxable year 2005 and for taxable year 2007 and

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1thereafter, the amount of this exemption shall be the equalized
2assessed value of the residence in the taxable year for which
3application is made minus the base amount; and (ii) for taxable
4year 2006, the amount of the exemption is as follows:
5 (1) For an applicant who has a household income of
6 $45,000 or less, the amount of the exemption is the
7 equalized assessed value of the residence in the taxable
8 year for which application is made minus the base amount.
9 (2) For an applicant who has a household income
10 exceeding $45,000 but not exceeding $46,250, the amount of
11 the exemption is (i) the equalized assessed value of the
12 residence in the taxable year for which application is made
13 minus the base amount (ii) multiplied by 0.8.
14 (3) For an applicant who has a household income
15 exceeding $46,250 but not exceeding $47,500, the amount of
16 the exemption is (i) the equalized assessed value of the
17 residence in the taxable year for which application is made
18 minus the base amount (ii) multiplied by 0.6.
19 (4) For an applicant who has a household income
20 exceeding $47,500 but not exceeding $48,750, the amount of
21 the exemption is (i) the equalized assessed value of the
22 residence in the taxable year for which application is made
23 minus the base amount (ii) multiplied by 0.4.
24 (5) For an applicant who has a household income
25 exceeding $48,750 but not exceeding $50,000, the amount of
26 the exemption is (i) the equalized assessed value of the

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1 residence in the taxable year for which application is made
2 minus the base amount (ii) multiplied by 0.2.
3 When the applicant is a surviving spouse of an applicant
4for a prior year for the same residence for which an exemption
5under this Section has been granted, the base year and base
6amount for that residence are the same as for the applicant for
7the prior year.
8 Each year at the time the assessment books are certified to
9the County Clerk, the Board of Review or Board of Appeals shall
10give to the County Clerk a list of the assessed values of
11improvements on each parcel qualifying for this exemption that
12were added after the base year for this parcel and that
13increased the assessed value of the property.
14 In the case of land improved with an apartment building
15owned and operated as a cooperative or a building that is a
16life care facility that qualifies as a cooperative, the maximum
17reduction from the equalized assessed value of the property is
18limited to the sum of the reductions calculated for each unit
19occupied as a residence by a person or persons (i) 65 years of
20age or older, (ii) with a household income that does not exceed
21the maximum income limitation, (iii) who is liable, by contract
22with the owner or owners of record, for paying real property
23taxes on the property, and (iv) who is an owner of record of a
24legal or equitable interest in the cooperative apartment
25building, other than a leasehold interest. In the instance of a
26cooperative where a homestead exemption has been granted under

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1this Section, the cooperative association or its management
2firm shall credit the savings resulting from that exemption
3only to the apportioned tax liability of the owner who
4qualified for the exemption. Any person who willfully refuses
5to credit that savings to an owner who qualifies for the
6exemption is guilty of a Class B misdemeanor.
7 When a homestead exemption has been granted under this
8Section and an applicant then becomes a resident of a facility
9licensed under the Assisted Living and Shared Housing Act, the
10Nursing Home Care Act, the Specialized Mental Health
11Rehabilitation Act of 2013, the ID/DD Community Care Act, or
12the MC/DD Act, the exemption shall be granted in subsequent
13years so long as the residence (i) continues to be occupied by
14the qualified applicant's spouse or (ii) if remaining
15unoccupied, is still owned by the qualified applicant for the
16homestead exemption.
17 Beginning January 1, 1997, when an individual dies who
18would have qualified for an exemption under this Section, and
19the surviving spouse does not independently qualify for this
20exemption because of age, the exemption under this Section
21shall be granted to the surviving spouse for the taxable year
22preceding and the taxable year of the death, provided that,
23except for age, the surviving spouse meets all other
24qualifications for the granting of this exemption for those
25years.
26 When married persons maintain separate residences, the

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1exemption provided for in this Section may be claimed by only
2one of such persons and for only one residence.
3 For taxable year 1994 only, in counties having less than
43,000,000 inhabitants, to receive the exemption, a person shall
5submit an application by February 15, 1995 to the Chief County
6Assessment Officer of the county in which the property is
7located. In counties having 3,000,000 or more inhabitants, for
8taxable year 1994 and all subsequent taxable years, to receive
9the exemption, a person may submit an application to the Chief
10County Assessment Officer of the county in which the property
11is located during such period as may be specified by the Chief
12County Assessment Officer. The Chief County Assessment Officer
13in counties of 3,000,000 or more inhabitants shall annually
14give notice of the application period by mail or by
15publication. In counties having less than 3,000,000
16inhabitants, beginning with taxable year 1995 and thereafter,
17to receive the exemption, a person shall submit an application
18by July 1 of each taxable year to the Chief County Assessment
19Officer of the county in which the property is located. A
20county may, by ordinance, establish a date for submission of
21applications that is different than July 1. The applicant shall
22submit with the application an affidavit of the applicant's
23total household income, age, marital status (and if married the
24name and address of the applicant's spouse, if known), and
25principal dwelling place of members of the household on January
261 of the taxable year. The Department shall establish, by rule,

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1a method for verifying the accuracy of affidavits filed by
2applicants under this Section, and the Chief County Assessment
3Officer may conduct audits of any taxpayer claiming an
4exemption under this Section to verify that the taxpayer is
5eligible to receive the exemption. Each application shall
6contain or be verified by a written declaration that it is made
7under the penalties of perjury. A taxpayer's signing a
8fraudulent application under this Act is perjury, as defined in
9Section 32-2 of the Criminal Code of 2012. The applications
10shall be clearly marked as applications for the Senior Citizens
11Assessment Freeze Homestead Exemption and must contain a notice
12that any taxpayer who receives the exemption is subject to an
13audit by the Chief County Assessment Officer.
14 Notwithstanding any other provision to the contrary, in
15counties having fewer than 3,000,000 inhabitants, if an
16applicant fails to file the application required by this
17Section in a timely manner and this failure to file is due to a
18mental or physical condition sufficiently severe so as to
19render the applicant incapable of filing the application in a
20timely manner, the Chief County Assessment Officer may extend
21the filing deadline for a period of 30 days after the applicant
22regains the capability to file the application, but in no case
23may the filing deadline be extended beyond 3 months of the
24original filing deadline. In order to receive the extension
25provided in this paragraph, the applicant shall provide the
26Chief County Assessment Officer with a signed statement from

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1the applicant's physician, advanced practice registered nurse,
2or physician assistant stating the nature and extent of the
3condition, that, in the physician's, advanced practice
4registered nurse's, or physician assistant's opinion, the
5condition was so severe that it rendered the applicant
6incapable of filing the application in a timely manner, and the
7date on which the applicant regained the capability to file the
8application.
9 Beginning January 1, 1998, notwithstanding any other
10provision to the contrary, in counties having fewer than
113,000,000 inhabitants, if an applicant fails to file the
12application required by this Section in a timely manner and
13this failure to file is due to a mental or physical condition
14sufficiently severe so as to render the applicant incapable of
15filing the application in a timely manner, the Chief County
16Assessment Officer may extend the filing deadline for a period
17of 3 months. In order to receive the extension provided in this
18paragraph, the applicant shall provide the Chief County
19Assessment Officer with a signed statement from the applicant's
20physician, advanced practice registered nurse, or physician
21assistant stating the nature and extent of the condition, and
22that, in the physician's, advanced practice registered
23nurse's, or physician assistant's opinion, the condition was so
24severe that it rendered the applicant incapable of filing the
25application in a timely manner.
26 In counties having less than 3,000,000 inhabitants, if an

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1applicant was denied an exemption in taxable year 1994 and the
2denial occurred due to an error on the part of an assessment
3official, or his or her agent or employee, then beginning in
4taxable year 1997 the applicant's base year, for purposes of
5determining the amount of the exemption, shall be 1993 rather
6than 1994. In addition, in taxable year 1997, the applicant's
7exemption shall also include an amount equal to (i) the amount
8of any exemption denied to the applicant in taxable year 1995
9as a result of using 1994, rather than 1993, as the base year,
10(ii) the amount of any exemption denied to the applicant in
11taxable year 1996 as a result of using 1994, rather than 1993,
12as the base year, and (iii) the amount of the exemption
13erroneously denied for taxable year 1994.
14 For purposes of this Section, a person who will be 65 years
15of age during the current taxable year shall be eligible to
16apply for the homestead exemption during that taxable year.
17Application shall be made during the application period in
18effect for the county of his or her residence.
19 The Chief County Assessment Officer may determine the
20eligibility of a life care facility that qualifies as a
21cooperative to receive the benefits provided by this Section by
22use of an affidavit, application, visual inspection,
23questionnaire, or other reasonable method in order to insure
24that the tax savings resulting from the exemption are credited
25by the management firm to the apportioned tax liability of each
26qualifying resident. The Chief County Assessment Officer may

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1request reasonable proof that the management firm has so
2credited that exemption.
3 Except as provided in this Section, all information
4received by the chief county assessment officer or the
5Department from applications filed under this Section, or from
6any investigation conducted under the provisions of this
7Section, shall be confidential, except for official purposes or
8pursuant to official procedures for collection of any State or
9local tax or enforcement of any civil or criminal penalty or
10sanction imposed by this Act or by any statute or ordinance
11imposing a State or local tax. Any person who divulges any such
12information in any manner, except in accordance with a proper
13judicial order, is guilty of a Class A misdemeanor.
14 Nothing contained in this Section shall prevent the
15Director or chief county assessment officer from publishing or
16making available reasonable statistics concerning the
17operation of the exemption contained in this Section in which
18the contents of claims are grouped into aggregates in such a
19way that information contained in any individual claim shall
20not be disclosed.
21 Notwithstanding any other provision of law, for taxable
22year 2017 and thereafter, in counties of 3,000,000 or more
23inhabitants, the amount of the exemption shall be the greater
24of (i) the amount of the exemption otherwise calculated under
25this Section or (ii) $2,000.
26 (d) Each Chief County Assessment Officer shall annually

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1publish a notice of availability of the exemption provided
2under this Section. The notice shall be published at least 60
3days but no more than 75 days prior to the date on which the
4application must be submitted to the Chief County Assessment
5Officer of the county in which the property is located. The
6notice shall appear in a newspaper of general circulation in
7the county.
8 Notwithstanding Sections 6 and 8 of the State Mandates Act,
9no reimbursement by the State is required for the
10implementation of any mandate created by this Section.
11(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1299-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
138-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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