Bill Text: IL SB1346 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Property Tax Code. With respect to the Senior Citizens Assessment Freeze Homestead Exemption, provides that, beginning in assessment year 2019, the taxpayer's household income shall be reduced by any amounts paid as Medicare premiums. Effective immediately.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Engrossed) 2019-05-10 - Rule 19(a) / Re-referred to Rules Committee [SB1346 Detail]

Download: Illinois-2019-SB1346-Engrossed.html



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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 2020, the taxpayer's household
11income shall be reduced by the amount of Medicare premiums paid
12by the taxpayer during that calendar year. The reduction for
13Medicare premiums shall be made only upon proof of payment of
14Medicare premiums by the taxpayer; that proof shall include
15dates and amounts and may take the form of bill payment stubs
16such as the CMS-500 form.
17 "Income" has the same meaning as provided in Section 3.07
18of the Senior Citizens and Persons with Disabilities Property
19Tax Relief Act, except that, beginning in assessment year 2001,
20"income" does not include veteran's benefits.
21 "Internal Revenue Code of 1986" means the United States
22Internal Revenue Code of 1986 or any successor law or laws
23relating to federal income taxes in effect for the year
24preceding the taxable year.
25 "Life care facility that qualifies as a cooperative" means
26a facility as defined in Section 2 of the Life Care Facilities

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1Act.
2 "Maximum income limitation" means:
3 (1) $35,000 prior to taxable year 1999;
4 (2) $40,000 in taxable years 1999 through 2003;
5 (3) $45,000 in taxable years 2004 through 2005;
6 (4) $50,000 in taxable years 2006 and 2007;
7 (5) $55,000 in taxable years 2008 through 2016;
8 (6) for taxable year 2017, (i) $65,000 for qualified
9 property located in a county with 3,000,000 or more
10 inhabitants and (ii) $55,000 for qualified property
11 located in a county with fewer than 3,000,000 inhabitants;
12 and
13 (7) for taxable years 2018 and thereafter, $65,000 for
14 all qualified property.
15 "Residence" means the principal dwelling place and
16appurtenant structures used for residential purposes in this
17State occupied on January 1 of the taxable year by a household
18and so much of the surrounding land, constituting the parcel
19upon which the dwelling place is situated, as is used for
20residential purposes. If the Chief County Assessment Officer
21has established a specific legal description for a portion of
22property constituting the residence, then that portion of
23property shall be deemed the residence for the purposes of this
24Section.
25 "Taxable year" means the calendar year during which ad
26valorem property taxes payable in the next succeeding year are

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

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1assessed value of the residence in the taxable year for which
2application is made minus the base amount; and (ii) for taxable
3year 2006, the amount of the exemption is as follows:
4 (1) For an applicant who has a household income of
5 $45,000 or less, the amount of the exemption is the
6 equalized assessed value of the residence in the taxable
7 year for which application is made minus the base amount.
8 (2) For an applicant who has a household income
9 exceeding $45,000 but not exceeding $46,250, the amount of
10 the exemption is (i) the equalized assessed value of the
11 residence in the taxable year for which application is made
12 minus the base amount (ii) multiplied by 0.8.
13 (3) For an applicant who has a household income
14 exceeding $46,250 but not exceeding $47,500, the amount of
15 the exemption is (i) the equalized assessed value of the
16 residence in the taxable year for which application is made
17 minus the base amount (ii) multiplied by 0.6.
18 (4) For an applicant who has a household income
19 exceeding $47,500 but not exceeding $48,750, the amount of
20 the exemption is (i) the equalized assessed value of the
21 residence in the taxable year for which application is made
22 minus the base amount (ii) multiplied by 0.4.
23 (5) For an applicant who has a household income
24 exceeding $48,750 but not exceeding $50,000, 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 0.2.
2 When the applicant is a surviving spouse of an applicant
3for a prior year for the same residence for which an exemption
4under this Section has been granted, the base year and base
5amount for that residence are the same as for the applicant for
6the prior year.
7 Each year at the time the assessment books are certified to
8the County Clerk, the Board of Review or Board of Appeals shall
9give to the County Clerk a list of the assessed values of
10improvements on each parcel qualifying for this exemption that
11were added after the base year for this parcel and that
12increased the assessed value of the property.
13 In the case of land improved with an apartment building
14owned and operated as a cooperative or a building that is a
15life care facility that qualifies as a cooperative, the maximum
16reduction from the equalized assessed value of the property is
17limited to the sum of the reductions calculated for each unit
18occupied as a residence by a person or persons (i) 65 years of
19age or older, (ii) with a household income that does not exceed
20the maximum income limitation, (iii) who is liable, by contract
21with the owner or owners of record, for paying real property
22taxes on the property, and (iv) who is an owner of record of a
23legal or equitable interest in the cooperative apartment
24building, other than a leasehold interest. In the instance of a
25cooperative where a homestead exemption has been granted under
26this Section, the cooperative association or its management

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

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1one of such persons and for only one residence.
2 For taxable year 1994 only, in counties having less than
33,000,000 inhabitants, to receive the exemption, a person shall
4submit an application by February 15, 1995 to the Chief County
5Assessment Officer of the county in which the property is
6located. In counties having 3,000,000 or more inhabitants, for
7taxable year 1994 and all subsequent taxable years, to receive
8the exemption, a person may submit an application to the Chief
9County Assessment Officer of the county in which the property
10is located during such period as may be specified by the Chief
11County Assessment Officer. The Chief County Assessment Officer
12in counties of 3,000,000 or more inhabitants shall annually
13give notice of the application period by mail or by
14publication. In counties having less than 3,000,000
15inhabitants, beginning with taxable year 1995 and thereafter,
16to receive the exemption, a person shall submit an application
17by July 1 of each taxable year to the Chief County Assessment
18Officer of the county in which the property is located. A
19county may, by ordinance, establish a date for submission of
20applications that is different than July 1. The applicant shall
21submit with the application an affidavit of the applicant's
22total household income, age, marital status (and if married the
23name and address of the applicant's spouse, if known), and
24principal dwelling place of members of the household on January
251 of the taxable year. The Department shall establish, by rule,
26a method for verifying the accuracy of affidavits filed by

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

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1or physician assistant stating the nature and extent of the
2condition, that, in the physician's, advanced practice
3registered nurse's, or physician assistant's opinion, the
4condition was so severe that it rendered the applicant
5incapable of filing the application in a timely manner, and the
6date on which the applicant regained the capability to file the
7application.
8 Beginning January 1, 1998, notwithstanding any other
9provision to the contrary, in counties having fewer than
103,000,000 inhabitants, if an applicant fails to file the
11application required by this Section in a timely manner and
12this failure to file is due to a mental or physical condition
13sufficiently severe so as to render the applicant incapable of
14filing the application in a timely manner, the Chief County
15Assessment Officer may extend the filing deadline for a period
16of 3 months. In order to receive the extension provided in this
17paragraph, the applicant shall provide the Chief County
18Assessment Officer with a signed statement from the applicant's
19physician, advanced practice registered nurse, or physician
20assistant stating the nature and extent of the condition, and
21that, in the physician's, advanced practice registered
22nurse's, or physician assistant's opinion, the condition was so
23severe that it rendered the applicant incapable of filing the
24application in a timely manner.
25 In counties having less than 3,000,000 inhabitants, if an
26applicant was denied an exemption in taxable year 1994 and the

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

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

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1under this Section. The notice shall be published at least 60
2days but no more than 75 days prior to the date on which the
3application must be submitted to the Chief County Assessment
4Officer of the county in which the property is located. The
5notice shall appear in a newspaper of general circulation in
6the county.
7 Notwithstanding Sections 6 and 8 of the State Mandates Act,
8no reimbursement by the State is required for the
9implementation of any mandate created by this Section.
10(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1199-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
128-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
13 Section 99. Effective date. This Act takes effect January
141, 2020.
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