Bill Text: IL HB3506 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Property Tax Code. With respect to the Senior Citizens Assessment Freeze Homestead Exemption, provides that, beginning in assessment year 2017, the taxpayer's household income shall be reduced by any amounts paid as Medicare premiums. Effective immediately.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2017-04-07 - Added Co-Sponsor Rep. Katie Stuart [HB3506 Detail]

Download: Illinois-2017-HB3506-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3506

Introduced , by Rep. Natalie A. Manley

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172

Amends the Property Tax Code. With respect to the Senior Citizens Assessment Freeze Homestead Exemption, provides that, beginning in assessment year 2017, the taxpayer's household income shall be reduced by any amounts paid as Medicare premiums. 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. Beginning in taxable year 2017, the taxpayer's household
11income shall be reduced by the amount of Medicare premiums paid
12by the taxpayer during that calendar year.
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; and
3 (5) $55,000 in taxable year 2008 and thereafter.
4 "Residence" means the principal dwelling place and
5appurtenant structures used for residential purposes in this
6State occupied on January 1 of the taxable year by a household
7and so much of the surrounding land, constituting the parcel
8upon which the dwelling place is situated, as is used for
9residential purposes. If the Chief County Assessment Officer
10has established a specific legal description for a portion of
11property constituting the residence, then that portion of
12property shall be deemed the residence for the purposes of this
13Section.
14 "Taxable year" means the calendar year during which ad
15valorem property taxes payable in the next succeeding year are
16levied.
17 (c) Beginning in taxable year 1994, a senior citizens
18assessment freeze homestead exemption is granted for real
19property that is improved with a permanent structure that is
20occupied as a residence by an applicant who (i) is 65 years of
21age or older during the taxable year, (ii) has a household
22income that does not exceed the maximum income limitation,
23(iii) is liable for paying real property taxes on the property,
24and (iv) is an owner of record of the property or has a legal or
25equitable interest in the property as evidenced by a written
26instrument. This homestead exemption shall also apply to a

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1leasehold interest in a parcel of property improved with a
2permanent structure that is a single family residence that is
3occupied as a residence by a person who (i) is 65 years of age
4or older during the taxable year, (ii) has a household income
5that does not exceed the maximum income limitation, (iii) has a
6legal or equitable ownership interest in the property as
7lessee, and (iv) is liable for the payment of real property
8taxes on that property.
9 In counties of 3,000,000 or more inhabitants, the amount of
10the exemption for all taxable years is the equalized assessed
11value of the residence in the taxable year for which
12application is made minus the base amount. In all other
13counties, the amount of the exemption is as follows: (i)
14through taxable year 2005 and for taxable year 2007 and
15thereafter, the amount of this exemption shall be the equalized
16assessed value of the residence in the taxable year for which
17application is made minus the base amount; and (ii) for taxable
18year 2006, the amount of the exemption is as follows:
19 (1) For an applicant who has a household income of
20 $45,000 or less, the amount of the exemption is the
21 equalized assessed value of the residence in the taxable
22 year for which application is made minus the base amount.
23 (2) For an applicant who has a household income
24 exceeding $45,000 but not exceeding $46,250, the amount of
25 the exemption is (i) the equalized assessed value of the
26 residence in the taxable year for which application is made

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1 minus the base amount (ii) multiplied by 0.8.
2 (3) For an applicant who has a household income
3 exceeding $46,250 but not exceeding $47,500, the amount of
4 the exemption is (i) the equalized assessed value of the
5 residence in the taxable year for which application is made
6 minus the base amount (ii) multiplied by 0.6.
7 (4) For an applicant who has a household income
8 exceeding $47,500 but not exceeding $48,750, the amount of
9 the exemption is (i) the equalized assessed value of the
10 residence in the taxable year for which application is made
11 minus the base amount (ii) multiplied by 0.4.
12 (5) For an applicant who has a household income
13 exceeding $48,750 but not exceeding $50,000, the amount of
14 the exemption is (i) the equalized assessed value of the
15 residence in the taxable year for which application is made
16 minus the base amount (ii) multiplied by 0.2.
17 When the applicant is a surviving spouse of an applicant
18for a prior year for the same residence for which an exemption
19under this Section has been granted, the base year and base
20amount for that residence are the same as for the applicant for
21the prior year.
22 Each year at the time the assessment books are certified to
23the County Clerk, the Board of Review or Board of Appeals shall
24give to the County Clerk a list of the assessed values of
25improvements on each parcel qualifying for this exemption that
26were added after the base year for this parcel and that

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1increased the assessed value of the property.
2 In the case of land improved with an apartment building
3owned and operated as a cooperative or a building that is a
4life care facility that qualifies as a cooperative, the maximum
5reduction from the equalized assessed value of the property is
6limited to the sum of the reductions calculated for each unit
7occupied as a residence by a person or persons (i) 65 years of
8age or older, (ii) with a household income that does not exceed
9the maximum income limitation, (iii) who is liable, by contract
10with the owner or owners of record, for paying real property
11taxes on the property, and (iv) who is an owner of record of a
12legal or equitable interest in the cooperative apartment
13building, other than a leasehold interest. In the instance of a
14cooperative where a homestead exemption has been granted under
15this Section, the cooperative association or its management
16firm shall credit the savings resulting from that exemption
17only to the apportioned tax liability of the owner who
18qualified for the exemption. Any person who willfully refuses
19to credit that savings to an owner who qualifies for the
20exemption is guilty of a Class B misdemeanor.
21 When a homestead exemption has been granted under this
22Section and an applicant then becomes a resident of a facility
23licensed under the Assisted Living and Shared Housing Act, the
24Nursing Home Care Act, the Specialized Mental Health
25Rehabilitation Act of 2013, the ID/DD Community Care Act, or
26the MC/DD Act, the exemption shall be granted in subsequent

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1years so long as the residence (i) continues to be occupied by
2the qualified applicant's spouse or (ii) if remaining
3unoccupied, is still owned by the qualified applicant for the
4homestead exemption.
5 Beginning January 1, 1997, when an individual dies who
6would have qualified for an exemption under this Section, and
7the surviving spouse does not independently qualify for this
8exemption because of age, the exemption under this Section
9shall be granted to the surviving spouse for the taxable year
10preceding and the taxable year of the death, provided that,
11except for age, the surviving spouse meets all other
12qualifications for the granting of this exemption for those
13years.
14 When married persons maintain separate residences, the
15exemption provided for in this Section may be claimed by only
16one of such persons and for only one residence.
17 For taxable year 1994 only, in counties having less than
183,000,000 inhabitants, to receive the exemption, a person shall
19submit an application by February 15, 1995 to the Chief County
20Assessment Officer of the county in which the property is
21located. In counties having 3,000,000 or more inhabitants, for
22taxable year 1994 and all subsequent taxable years, to receive
23the exemption, a person may submit an application to the Chief
24County Assessment Officer of the county in which the property
25is located during such period as may be specified by the Chief
26County Assessment Officer. The Chief County Assessment Officer

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1in counties of 3,000,000 or more inhabitants shall annually
2give notice of the application period by mail or by
3publication. In counties having less than 3,000,000
4inhabitants, beginning with taxable year 1995 and thereafter,
5to receive the exemption, a person shall submit an application
6by July 1 of each taxable year to the Chief County Assessment
7Officer of the county in which the property is located. A
8county may, by ordinance, establish a date for submission of
9applications that is different than July 1. The applicant shall
10submit with the application an affidavit of the applicant's
11total household income, age, marital status (and if married the
12name and address of the applicant's spouse, if known), and
13principal dwelling place of members of the household on January
141 of the taxable year. The Department shall establish, by rule,
15a method for verifying the accuracy of affidavits filed by
16applicants under this Section, and the Chief County Assessment
17Officer may conduct audits of any taxpayer claiming an
18exemption under this Section to verify that the taxpayer is
19eligible to receive the exemption. Each application shall
20contain or be verified by a written declaration that it is made
21under the penalties of perjury. A taxpayer's signing a
22fraudulent application under this Act is perjury, as defined in
23Section 32-2 of the Criminal Code of 2012. The applications
24shall be clearly marked as applications for the Senior Citizens
25Assessment Freeze Homestead Exemption and must contain a notice
26that any taxpayer who receives the exemption is subject to an

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1audit by the Chief County Assessment Officer.
2 Notwithstanding any other provision to the contrary, in
3counties having fewer than 3,000,000 inhabitants, if an
4applicant fails to file the application required by this
5Section in a timely manner and this failure to file is due to a
6mental or physical condition sufficiently severe so as to
7render the applicant incapable of filing the application in a
8timely manner, the Chief County Assessment Officer may extend
9the filing deadline for a period of 30 days after the applicant
10regains the capability to file the application, but in no case
11may the filing deadline be extended beyond 3 months of the
12original filing deadline. In order to receive the extension
13provided in this paragraph, the applicant shall provide the
14Chief County Assessment Officer with a signed statement from
15the applicant's physician, advanced practice nurse, or
16physician assistant stating the nature and extent of the
17condition, that, in the physician's, advanced practice
18nurse's, or physician assistant's opinion, the condition was so
19severe that it rendered the applicant incapable of filing the
20application in a timely manner, and the date on which the
21applicant regained the capability to file the application.
22 Beginning January 1, 1998, notwithstanding any other
23provision to the contrary, in counties having fewer than
243,000,000 inhabitants, if an applicant fails to file the
25application required by this Section in a timely manner and
26this failure to file is due to a mental or physical condition

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1sufficiently severe so as to render the applicant incapable of
2filing the application in a timely manner, the Chief County
3Assessment Officer may extend the filing deadline for a period
4of 3 months. In order to receive the extension provided in this
5paragraph, the applicant shall provide the Chief County
6Assessment Officer with a signed statement from the applicant's
7physician, advanced practice nurse, or physician assistant
8stating the nature and extent of the condition, and that, in
9the physician's, advanced practice nurse's, or physician
10assistant's opinion, the condition was so severe that it
11rendered the applicant incapable of filing the application in a
12timely manner.
13 In counties having less than 3,000,000 inhabitants, if an
14applicant was denied an exemption in taxable year 1994 and the
15denial occurred due to an error on the part of an assessment
16official, or his or her agent or employee, then beginning in
17taxable year 1997 the applicant's base year, for purposes of
18determining the amount of the exemption, shall be 1993 rather
19than 1994. In addition, in taxable year 1997, the applicant's
20exemption shall also include an amount equal to (i) the amount
21of any exemption denied to the applicant in taxable year 1995
22as a result of using 1994, rather than 1993, as the base year,
23(ii) the amount of any exemption denied to the applicant in
24taxable year 1996 as a result of using 1994, rather than 1993,
25as the base year, and (iii) the amount of the exemption
26erroneously denied for taxable year 1994.

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1 For purposes of this Section, a person who will be 65 years
2of age during the current taxable year shall be eligible to
3apply for the homestead exemption during that taxable year.
4Application shall be made during the application period in
5effect for the county of his or her residence.
6 The Chief County Assessment Officer may determine the
7eligibility of a life care facility that qualifies as a
8cooperative to receive the benefits provided by this Section by
9use of an affidavit, application, visual inspection,
10questionnaire, or other reasonable method in order to insure
11that the tax savings resulting from the exemption are credited
12by the management firm to the apportioned tax liability of each
13qualifying resident. The Chief County Assessment Officer may
14request reasonable proof that the management firm has so
15credited that exemption.
16 Except as provided in this Section, all information
17received by the chief county assessment officer or the
18Department from applications filed under this Section, or from
19any investigation conducted under the provisions of this
20Section, shall be confidential, except for official purposes or
21pursuant to official procedures for collection of any State or
22local tax or enforcement of any civil or criminal penalty or
23sanction imposed by this Act or by any statute or ordinance
24imposing a State or local tax. Any person who divulges any such
25information in any manner, except in accordance with a proper
26judicial order, is guilty of a Class A misdemeanor.

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1 Nothing contained in this Section shall prevent the
2Director or chief county assessment officer from publishing or
3making available reasonable statistics concerning the
4operation of the exemption contained in this Section in which
5the contents of claims are grouped into aggregates in such a
6way that information contained in any individual claim shall
7not be disclosed.
8 (d) Each Chief County Assessment Officer shall annually
9publish a notice of availability of the exemption provided
10under this Section. The notice shall be published at least 60
11days but no more than 75 days prior to the date on which the
12application must be submitted to the Chief County Assessment
13Officer of the county in which the property is located. The
14notice shall appear in a newspaper of general circulation in
15the county.
16 Notwithstanding Sections 6 and 8 of the State Mandates Act,
17no reimbursement by the State is required for the
18implementation of any mandate created by this Section.
19(Source: P.A. 98-104, eff. 7-22-13; 99-143, eff. 7-27-15;
2099-180, eff. 7-29-15; 99-581, eff. 1-1-17; 99-642, eff.
217-28-16.)
22 Section 99. Effective date. This Act takes effect upon
23becoming law.
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