Bill Text: IL HB3535 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, for the purposes of the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, the maximum income limitation does not include any required minimum distributions from an individual retirement account or other retirement account. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2023-03-16 - Added Co-Sponsor Rep. Chris Miller [HB3535 Detail]

Download: Illinois-2023-HB3535-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3535 Introduced 2/17/2023, by Rep. Jed Davis SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172
Amends the Property Tax Code. Provides that, for the purposes of the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, the maximum income limitation does not include any required minimum distributions from an individual retirement account or other retirement account. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 15-172 as follows:
(35 ILCS 200/15-172)
Sec. 15-172. Low-Income Senior Citizens Assessment Freeze
Homestead Exemption.
(a) This Section may be cited as the Low-Income Senior
Citizens Assessment Freeze Homestead Exemption.
(b) As used in this Section:
"Applicant" means an individual who has filed an
application under this Section.
"Base amount" means the base year equalized assessed value
of the residence plus the first year's equalized assessed
value of any added improvements which increased the assessed
value of the residence after the base year.
"Base year" means the taxable year prior to the taxable
year for which the applicant first qualifies and applies for
the exemption provided that in the prior taxable year the
property was improved with a permanent structure that was
occupied as a residence by the applicant who was liable for
paying real property taxes on the property and who was either

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(i) an owner of record of the property or had legal or
equitable interest in the property as evidenced by a written
instrument or (ii) had a legal or equitable interest as a
lessee in the parcel of property that was single family
residence. If in any subsequent taxable year for which the
applicant applies and qualifies for the exemption the
equalized assessed value of the residence is less than the
equalized assessed value in the existing base year (provided
that such equalized assessed value is not based on an assessed
value that results from a temporary irregularity in the
property that reduces the assessed value for one or more
taxable years), then that subsequent taxable year shall become
the base year until a new base year is established under the
terms of this paragraph. For taxable year 1999 only, the Chief
County Assessment Officer shall review (i) all taxable years
for which the applicant applied and qualified for the
exemption and (ii) the existing base year. The assessment
officer shall select as the new base year the year with the
lowest equalized assessed value. An equalized assessed value
that is based on an assessed value that results from a
temporary irregularity in the property that reduces the
assessed value for one or more taxable years shall not be
considered the lowest equalized assessed value. The selected
year shall be the base year for taxable year 1999 and
thereafter until a new base year is established under the
terms of this paragraph.

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"Chief County Assessment Officer" means the County
Assessor or Supervisor of Assessments of the county in which
the property is located.
"Equalized assessed value" means the assessed value as
equalized by the Illinois Department of Revenue.
"Household" means the applicant, the spouse of the
applicant, and all persons using the residence of the
applicant as their principal place of residence.
"Household income" means the combined income of the
members of a household for the calendar year preceding the
taxable year.
"Income" has the same meaning as provided in Section 3.07
of the Senior Citizens and Persons with Disabilities Property
Tax Relief Act, except that, beginning in assessment year
2001, "income" does not include veteran's benefits, and,
beginning in assessment year 2024, "income" does not include
any required minimum distributions from an individual
retirement account or other retirement account..
"Internal Revenue Code of 1986" means the United States
Internal Revenue Code of 1986 or any successor law or laws
relating to federal income taxes in effect for the year
preceding the taxable year.
"Life care facility that qualifies as a cooperative" means
a facility as defined in Section 2 of the Life Care Facilities
Act.
"Maximum income limitation" means:

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(1) $35,000 prior to taxable year 1999;
(2) $40,000 in taxable years 1999 through 2003;
(3) $45,000 in taxable years 2004 through 2005;
(4) $50,000 in taxable years 2006 and 2007;
(5) $55,000 in taxable years 2008 through 2016;
(6) for taxable year 2017, (i) $65,000 for qualified
property located in a county with 3,000,000 or more
inhabitants and (ii) $55,000 for qualified property
located in a county with fewer than 3,000,000 inhabitants;
and
(7) for taxable years 2018 and thereafter, $65,000 for
all qualified property.
As an alternative income valuation, a homeowner who is
enrolled in any of the following programs may be presumed to
have household income that does not exceed the maximum income
limitation for that tax year as required by this Section: Aid
to the Aged, Blind or Disabled (AABD) Program or the
Supplemental Nutrition Assistance Program (SNAP), both of
which are administered by the Department of Human Services;
the Low Income Home Energy Assistance Program (LIHEAP), which
is administered by the Department of Commerce and Economic
Opportunity; The Benefit Access program, which is administered
by the Department on Aging; and the Senior Citizens Real
Estate Tax Deferral Program.
A chief county assessment officer may indicate that he or
she has verified an applicant's income eligibility for this

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exemption but may not report which program or programs, if
any, enroll the applicant. Release of personal information
submitted pursuant to this Section shall be deemed an
unwarranted invasion of personal privacy under the Freedom of
Information Act.
"Residence" means the principal dwelling place and
appurtenant structures used for residential purposes in this
State occupied on January 1 of the taxable year by a household
and so much of the surrounding land, constituting the parcel
upon which the dwelling place is situated, as is used for
residential purposes. If the Chief County Assessment Officer
has established a specific legal description for a portion of
property constituting the residence, then that portion of
property shall be deemed the residence for the purposes of
this Section.
"Taxable year" means the calendar year during which ad
valorem property taxes payable in the next succeeding year are
levied.
(c) Beginning in taxable year 1994, a low-income senior
citizens assessment freeze homestead exemption is granted for
real property that is improved with a permanent structure that
is occupied as a residence by an applicant who (i) is 65 years
of age or older during the taxable year, (ii) has a household
income that does not exceed the maximum income limitation,
(iii) is liable for paying real property taxes on the
property, and (iv) is an owner of record of the property or has

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a legal or equitable interest in the property as evidenced by a
written instrument. This homestead exemption shall also apply
to a leasehold interest in a parcel of property improved with a
permanent structure that is a single family residence that is
occupied as a residence by a person who (i) is 65 years of age
or older during the taxable year, (ii) has a household income
that does not exceed the maximum income limitation, (iii) has
a legal or equitable ownership interest in the property as
lessee, and (iv) is liable for the payment of real property
taxes on that property.
In counties of 3,000,000 or more inhabitants, the amount
of the exemption for all taxable years is the equalized
assessed value of the residence in the taxable year for which
application is made minus the base amount. In all other
counties, the amount of the exemption is as follows: (i)
through taxable year 2005 and for taxable year 2007 and
thereafter, the amount of this exemption shall be the
equalized assessed value of the residence in the taxable year
for which application is made minus the base amount; and (ii)
for taxable year 2006, the amount of the exemption is as
follows:
(1) For an applicant who has a household income of
$45,000 or less, the amount of the exemption is the
equalized assessed value of the residence in the taxable
year for which application is made minus the base amount.
(2) For an applicant who has a household income

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exceeding $45,000 but not exceeding $46,250, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is
made minus the base amount (ii) multiplied by 0.8.
(3) For an applicant who has a household income
exceeding $46,250 but not exceeding $47,500, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is
made minus the base amount (ii) multiplied by 0.6.
(4) For an applicant who has a household income
exceeding $47,500 but not exceeding $48,750, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is
made minus the base amount (ii) multiplied by 0.4.
(5) For an applicant who has a household income
exceeding $48,750 but not exceeding $50,000, the amount of
the exemption is (i) the equalized assessed value of the
residence in the taxable year for which application is
made minus the base amount (ii) multiplied by 0.2.
When the applicant is a surviving spouse of an applicant
for a prior year for the same residence for which an exemption
under this Section has been granted, the base year and base
amount for that residence are the same as for the applicant for
the prior year.
Each year at the time the assessment books are certified
to the County Clerk, the Board of Review or Board of Appeals

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shall give to the County Clerk a list of the assessed values of
improvements on each parcel qualifying for this exemption that
were added after the base year for this parcel and that
increased the assessed value of the property.
In the case of land improved with an apartment building
owned and operated as a cooperative or a building that is a
life care facility that qualifies as a cooperative, the
maximum reduction from the equalized assessed value of the
property is limited to the sum of the reductions calculated
for each unit occupied as a residence by a person or persons
(i) 65 years of age or older, (ii) with a household income that
does not exceed the maximum income limitation, (iii) who is
liable, by contract with the owner or owners of record, for
paying real property taxes on the property, and (iv) who is an
owner of record of a legal or equitable interest in the
cooperative apartment building, other than a leasehold
interest. In the instance of a cooperative where a homestead
exemption has been granted under this Section, the cooperative
association or its management firm shall credit the savings
resulting from that exemption only to the apportioned tax
liability of the owner who qualified for the exemption. Any
person who willfully refuses to credit that savings to an
owner who qualifies for the exemption is guilty of a Class B
misdemeanor.
When a homestead exemption has been granted under this
Section and an applicant then becomes a resident of a facility

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licensed under the Assisted Living and Shared Housing Act, the
Nursing Home Care Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, or
the MC/DD Act, the exemption shall be granted in subsequent
years so long as the residence (i) continues to be occupied by
the qualified applicant's spouse or (ii) if remaining
unoccupied, is still owned by the qualified applicant for the
homestead exemption.
Beginning January 1, 1997, when an individual dies who
would have qualified for an exemption under this Section, and
the surviving spouse does not independently qualify for this
exemption because of age, the exemption under this Section
shall be granted to the surviving spouse for the taxable year
preceding and the taxable year of the death, provided that,
except for age, the surviving spouse meets all other
qualifications for the granting of this exemption for those
years.
When married persons maintain separate residences, the
exemption provided for in this Section may be claimed by only
one of such persons and for only one residence.
For taxable year 1994 only, in counties having less than
3,000,000 inhabitants, to receive the exemption, a person
shall submit an application by February 15, 1995 to the Chief
County Assessment Officer of the county in which the property
is located. In counties having 3,000,000 or more inhabitants,
for taxable year 1994 and all subsequent taxable years, to

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receive the exemption, a person may submit an application to
the Chief County Assessment Officer of the county in which the
property is located during such period as may be specified by
the Chief County Assessment Officer. The Chief County
Assessment Officer in counties of 3,000,000 or more
inhabitants shall annually give notice of the application
period by mail or by publication. In counties having less than
3,000,000 inhabitants, beginning with taxable year 1995 and
thereafter, to receive the exemption, a person shall submit an
application by July 1 of each taxable year to the Chief County
Assessment Officer of the county in which the property is
located. A county may, by ordinance, establish a date for
submission of applications that is different than July 1. The
applicant shall submit with the application an affidavit of
the applicant's total household income, age, marital status
(and if married the name and address of the applicant's
spouse, if known), and principal dwelling place of members of
the household on January 1 of the taxable year. The Department
shall establish, by rule, a method for verifying the accuracy
of affidavits filed by applicants under this Section, and the
Chief County Assessment Officer may conduct audits of any
taxpayer claiming an exemption under this Section to verify
that the taxpayer is eligible to receive the exemption. Each
application shall contain or be verified by a written
declaration that it is made under the penalties of perjury. A
taxpayer's signing a fraudulent application under this Act is

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perjury, as defined in Section 32-2 of the Criminal Code of
2012. The applications shall be clearly marked as applications
for the Low-Income Senior Citizens Assessment Freeze Homestead
Exemption and must contain a notice that any taxpayer who
receives the exemption is subject to an audit by the Chief
County Assessment Officer.
Notwithstanding any other provision to the contrary, in
counties having fewer than 3,000,000 inhabitants, if an
applicant fails to file the application required by this
Section in a timely manner and this failure to file is due to a
mental or physical condition sufficiently severe so as to
render the applicant incapable of filing the application in a
timely manner, the Chief County Assessment Officer may extend
the filing deadline for a period of 30 days after the applicant
regains the capability to file the application, but in no case
may the filing deadline be extended beyond 3 months of the
original filing deadline. In order to receive the extension
provided in this paragraph, the applicant shall provide the
Chief County Assessment Officer with a signed statement from
the applicant's physician, advanced practice registered nurse,
or physician assistant stating the nature and extent of the
condition, that, in the physician's, advanced practice
registered nurse's, or physician assistant's opinion, the
condition was so severe that it rendered the applicant
incapable of filing the application in a timely manner, and
the date on which the applicant regained the capability to

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file the application.
Beginning January 1, 1998, notwithstanding any other
provision to the contrary, in counties having fewer than
3,000,000 inhabitants, if an applicant fails to file the
application required by this Section in a timely manner and
this failure to file is due to a mental or physical condition
sufficiently severe so as to render the applicant incapable of
filing the application in a timely manner, the Chief County
Assessment Officer may extend the filing deadline for a period
of 3 months. In order to receive the extension provided in this
paragraph, the applicant shall provide the Chief County
Assessment Officer with a signed statement from the
applicant's physician, advanced practice registered nurse, or
physician assistant stating the nature and extent of the
condition, and that, in the physician's, advanced practice
registered nurse's, or physician assistant's opinion, the
condition was so severe that it rendered the applicant
incapable of filing the application in a timely manner.
In counties having less than 3,000,000 inhabitants, if an
applicant was denied an exemption in taxable year 1994 and the
denial occurred due to an error on the part of an assessment
official, or his or her agent or employee, then beginning in
taxable year 1997 the applicant's base year, for purposes of
determining the amount of the exemption, shall be 1993 rather
than 1994. In addition, in taxable year 1997, the applicant's
exemption shall also include an amount equal to (i) the amount

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of any exemption denied to the applicant in taxable year 1995
as a result of using 1994, rather than 1993, as the base year,
(ii) the amount of any exemption denied to the applicant in
taxable year 1996 as a result of using 1994, rather than 1993,
as the base year, and (iii) the amount of the exemption
erroneously denied for taxable year 1994.
For purposes of this Section, a person who will be 65 years
of age during the current taxable year shall be eligible to
apply for the homestead exemption during that taxable year.
Application shall be made during the application period in
effect for the county of his or her residence.
The Chief County Assessment Officer may determine the
eligibility of a life care facility that qualifies as a
cooperative to receive the benefits provided by this Section
by use of an affidavit, application, visual inspection,
questionnaire, or other reasonable method in order to insure
that the tax savings resulting from the exemption are credited
by the management firm to the apportioned tax liability of
each qualifying resident. The Chief County Assessment Officer
may request reasonable proof that the management firm has so
credited that exemption.
Except as provided in this Section, all information
received by the chief county assessment officer or the
Department from applications filed under this Section, or from
any investigation conducted under the provisions of this
Section, shall be confidential, except for official purposes

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or pursuant to official procedures for collection of any State
or local tax or enforcement of any civil or criminal penalty or
sanction imposed by this Act or by any statute or ordinance
imposing a State or local tax. Any person who divulges any such
information in any manner, except in accordance with a proper
judicial order, is guilty of a Class A misdemeanor.
Nothing contained in this Section shall prevent the
Director or chief county assessment officer from publishing or
making available reasonable statistics concerning the
operation of the exemption contained in this Section in which
the contents of claims are grouped into aggregates in such a
way that information contained in any individual claim shall
not be disclosed.
Notwithstanding any other provision of law, for taxable
year 2017 and thereafter, in counties of 3,000,000 or more
inhabitants, the amount of the exemption shall be the greater
of (i) the amount of the exemption otherwise calculated under
this Section or (ii) $2,000.
(c-5) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2020 taxable year, without application, for any property
that was approved for this exemption for the 2019 taxable
year, provided that:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;

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(2) the owner of record of the property as of January
1, 2020 is the same as the owner of record of the property
as of January 1, 2019;
(3) the exemption for the 2019 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the applicant for the 2019 taxable year has not
asked for the exemption to be removed for the 2019 or 2020
taxable years.
Nothing in this subsection shall preclude or impair the
authority of a chief county assessment officer to conduct
audits of any taxpayer claiming an exemption under this
Section to verify that the taxpayer is eligible to receive the
exemption as provided elsewhere in this Section.
(c-10) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2021 taxable year, without application, for any property
that was approved for this exemption for the 2020 taxable
year, if:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;
(2) the owner of record of the property as of January
1, 2021 is the same as the owner of record of the property
as of January 1, 2020;
(3) the exemption for the 2020 taxable year has not

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been determined to be an erroneous exemption as defined by
this Code; and
(4) the taxpayer for the 2020 taxable year has not
asked for the exemption to be removed for the 2020 or 2021
taxable years.
Nothing in this subsection shall preclude or impair the
authority of a chief county assessment officer to conduct
audits of any taxpayer claiming an exemption under this
Section to verify that the taxpayer is eligible to receive the
exemption as provided elsewhere in this Section.
(d) Each Chief County Assessment Officer shall annually
publish a notice of availability of the exemption provided
under this Section. The notice shall be published at least 60
days but no more than 75 days prior to the date on which the
application must be submitted to the Chief County Assessment
Officer of the county in which the property is located. The
notice shall appear in a newspaper of general circulation in
the county.
Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
102-895, eff. 5-23-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.