Bill Text: IL HB3541 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary 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, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3541 Detail]

Download: Illinois-2023-HB3541-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3541 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172.1 new
Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary 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, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. 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 adding
Section 15-172.1 as follows:
(35 ILCS 200/15-172.1 new)
Sec. 15-172.1. Senior Citizens Homestead Exemption School
Levy Cap.
(a) This Section may be cited as the Senior Citizens
Homestead Exemption School Levy Cap.
(b) As used in this Section:
"Applicant" means an individual who has filed an
application under this Section.
"Base year" means 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 the primary residence
by an applicant who was liable for paying real property taxes
on the property and who was either (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 an single-family residence and that lease

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obligates the lessee to pay property taxes on the parcel.
"Base year applicable K-12 school salary levy" means the
aggregate tax levy share applied to the property in the base
year pursuant to Section 17-2 of the School Code that derives
from: (i) faculty salaries and benefits; (ii) administrator
salaries and benefits; and (iii) classified staff salaries and
benefits.
"Retirement age base amount" means the base year equalized
assessed value of a residence as of the year the first
homeowner of the residence, who has resided in the residence
as a primary residence for a period of at least 5 years, turns
age 65.
"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 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 "income" does not include

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veteran's benefits.
"Incremental K-12 school salary levy" means for any year
subsequent to the base year, the aggregate tax levy share
applied to the property pursuant to Section 17-2 that derives
from: (i) faculty salaries and benefits; (ii) administrator
salaries and benefits; and (iii) classified staff salaries and
benefits, which exceeds the base year applicable K-12 school
salary levy.
"Incremental K-12 school salary levy exemption amount"
means the incremental K-12 school salary levy exemption
calculated for that tax year.
"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 for taxable years 2023
and thereafter, $100,000 per year, indexed to annual inflation
rates, or 2%, whichever is less per year.
"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

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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 2023, a senior citizens
homestead school levy exemption is granted for real property
that is improved with a permanent structure that is occupied
as the primary 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, (iv) is an owner of record of the property or has a
legal or equitable interest in the property as evidenced by a
written instrument, if no individual residing at the real
property is or will be enrolled in a tax levying body eligible
to place a levy on the property pursuant to Section 17-2 of the
School Code. This homestead school levy 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

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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.
(d) In counties of 3,000,000 or more inhabitants, the
amount of the exemption for all taxable years for qualifying
residents is the incremental K-12 school salary levy exemption
amount, which may be reduced by an amount not to exceed the
percentage change in the Consumer Price Index for All Urban
Consumers for that year. In all other counties, the amount of
the exemption for qualifying residents is the Incremental K-12
school salary levy exemption amount, provided that the
Incremental K-12 school salary levy exemption amount may be
reduced by 1% per year, provided that the total Incremental
K-12 school salary levy does not exceed 2% of the fair market
value of the property.
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 exemption shall still
apply provided that no individual residing at the real
property is or will be enrolled in a tax levying body eligible
to place a levy on the property pursuant to Section 17-2 of the
School Code.
Each year at the time the assessment books are certified
to the county clerk, the board of review shall give to the
county clerk a list of the assessed values of improvements on
each parcel qualifying for this exemption that were added

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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, provided that no individual residing at the real
property is or will be enrolled in a tax levying body eligible
to place a levy on the property pursuant to Section 17-2 of the
School Code. 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 licensed under the Assisted Living and

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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, and no individual
residing at the real property is or will be enrolled in a tax
levying body eligible to place a levy on the property pursuant
to Section 17-2 of the School Code.
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, and provided
that no individual residing at the real property is or will be
enrolled in a tax levying body eligible to place a levy on the
property pursuant to Section 17-2 of the School Code. For
taxable year 2024, in counties having less than 3,000,000
inhabitants, to receive the exemption, a person shall submit
an application by February 15, 2024 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 2024 and all subsequent taxable years, to 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

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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 2024 and thereafter,
a county may, by ordinance, establish a date for submission of
applications that is different than February 15. 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), confirmation that no individual residing at the real
property is or will be enrolled in a tax levying body eligible
to place a levy on the property pursuant to Section 17-2 of the
School Code for the full taxable year, 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 perjury, as defined in Section
32-2 of the Criminal Code of 2012. The applications shall be
clearly marked as applications for the Senior Citizens
Homestead Exemption School Levy Cap and must contain a notice

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that any taxpayer who receives the exemption is subject to an
audit by the Chief County Assessment Officer.
Beginning January 1, 2024, 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.
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 Senior Citizens Homestead Exemption School Levy
Cap 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

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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 ensure
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 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.

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(e) 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.
Section 99. Effective date. This Act takes effect upon
becoming law.