Bill Text: IL SB1744 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that, if an applicant who qualifies for the senior citizens assessment freeze homestead exemption moves to a different residence in the State and continues to qualify for the exemption, then the new residence shall qualify for the exemption beginning with the taxable year in which the qualified applicant takes ownership of the new residence. Provides that the base year shall be the year prior to the year in which the qualified applicant takes ownership of the new residence. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 7-1)

Status: (Introduced) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB1744 Detail]

Download: Illinois-2021-SB1744-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1744

Introduced 2/26/2021, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172

Amends the Property Tax Code. Provides that, if an applicant who qualifies for the senior citizens assessment freeze homestead exemption moves to a different residence in the State and continues to qualify for the exemption, then the new residence shall qualify for the exemption beginning with the taxable year in which the qualified applicant takes ownership of the new residence. Provides that the base year shall be the year prior to the year in which the qualified applicant takes ownership of the new residence. Effective immediately.
LRB102 16116 HLH 21491 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

SB1744LRB102 16116 HLH 21491 b
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
16value of any added improvements which increased the assessed
17value of the 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

SB1744- 2 -LRB102 16116 HLH 21491 b
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
7equalized assessed value of the residence is less than the
8equalized assessed value in the existing base year (provided
9that such equalized assessed value is not based on an assessed
10value that results from a temporary irregularity in the
11property that reduces the assessed value for one or more
12taxable years), then that subsequent taxable year shall become
13the base year until a new base year is established under the
14terms of this paragraph. For taxable year 1999 only, the Chief
15County Assessment Officer shall review (i) all taxable years
16for which the applicant applied and qualified for the
17exemption and (ii) the existing base year. The assessment
18officer shall select as the new base year the year with the
19lowest equalized assessed value. An equalized assessed value
20that is based on an assessed value that results from a
21temporary irregularity in the property that reduces the
22assessed value for one or more taxable years shall not be
23considered the lowest equalized assessed value. The selected
24year shall be the base year for taxable year 1999 and
25thereafter until a new base year is established under the
26terms of this paragraph.

SB1744- 3 -LRB102 16116 HLH 21491 b
1 "Chief County Assessment Officer" means the County
2Assessor or Supervisor of Assessments of the county in which
3the property is located.
4 "Equalized assessed value" means the assessed value as
5equalized by the Illinois Department of Revenue.
6 "Household" means the applicant, the spouse of the
7applicant, and all persons using the residence of the
8applicant as their principal place of residence.
9 "Household income" means the combined income of the
10members of a household for the calendar year preceding the
11taxable year.
12 "Income" has the same meaning as provided in Section 3.07
13of the Senior Citizens and Persons with Disabilities Property
14Tax Relief Act, except that, beginning in assessment year
152001, "income" does not include veteran's benefits.
16 "Internal Revenue Code of 1986" means the United States
17Internal Revenue Code of 1986 or any successor law or laws
18relating to federal income taxes in effect for the year
19preceding the taxable year.
20 "Life care facility that qualifies as a cooperative" means
21a facility as defined in Section 2 of the Life Care Facilities
22Act.
23 "Maximum income limitation" means:
24 (1) $35,000 prior to taxable year 1999;
25 (2) $40,000 in taxable years 1999 through 2003;
26 (3) $45,000 in taxable years 2004 through 2005;

SB1744- 4 -LRB102 16116 HLH 21491 b
1 (4) $50,000 in taxable years 2006 and 2007;
2 (5) $55,000 in taxable years 2008 through 2016;
3 (6) for taxable year 2017, (i) $65,000 for qualified
4 property located in a county with 3,000,000 or more
5 inhabitants and (ii) $55,000 for qualified property
6 located in a county with fewer than 3,000,000 inhabitants;
7 and
8 (7) for taxable years 2018 and thereafter, $65,000 for
9 all qualified property.
10 "Residence" means the principal dwelling place and
11appurtenant structures used for residential purposes in this
12State occupied on January 1 of the taxable year by a household
13and so much of the surrounding land, constituting the parcel
14upon which the dwelling place is situated, as is used for
15residential purposes. If the Chief County Assessment Officer
16has established a specific legal description for a portion of
17property constituting the residence, then that portion of
18property shall be deemed the residence for the purposes of
19this Section.
20 "Taxable year" means the calendar year during which ad
21valorem property taxes payable in the next succeeding year are
22levied.
23 (c) Beginning in taxable year 1994, a senior citizens
24assessment freeze homestead exemption is granted for real
25property that is improved with a permanent structure that is
26occupied as a residence by an applicant who (i) is 65 years of

SB1744- 5 -LRB102 16116 HLH 21491 b
1age or older during the taxable year, (ii) has a household
2income that does not exceed the maximum income limitation,
3(iii) is liable for paying real property taxes on the
4property, and (iv) is an owner of record of the property or has
5a legal or equitable interest in the property as evidenced by a
6written instrument. This homestead exemption shall also apply
7to a leasehold interest in a parcel of property improved with a
8permanent structure that is a single family residence that is
9occupied as a residence by a person who (i) is 65 years of age
10or older during the taxable year, (ii) has a household income
11that does not exceed the maximum income limitation, (iii) has
12a legal or equitable ownership interest in the property as
13lessee, and (iv) is liable for the payment of real property
14taxes on that property.
15 In counties of 3,000,000 or more inhabitants, the amount
16of the exemption for all taxable years is the equalized
17assessed value of the residence in the taxable year for which
18application is made minus the base amount. In all other
19counties, the amount of the exemption is as follows: (i)
20through taxable year 2005 and for taxable year 2007 and
21thereafter, the amount of this exemption shall be the
22equalized assessed value of the residence in the taxable year
23for which application is made minus the base amount; and (ii)
24for taxable year 2006, the amount of the exemption is as
25follows:
26 (1) For an applicant who has a household income of

SB1744- 6 -LRB102 16116 HLH 21491 b
1 $45,000 or less, the amount of the exemption is the
2 equalized assessed value of the residence in the taxable
3 year for which application is made minus the base amount.
4 (2) For an applicant who has a household income
5 exceeding $45,000 but not exceeding $46,250, the amount of
6 the exemption is (i) the equalized assessed value of the
7 residence in the taxable year for which application is
8 made minus the base amount (ii) multiplied by 0.8.
9 (3) For an applicant who has a household income
10 exceeding $46,250 but not exceeding $47,500, the amount of
11 the exemption is (i) the equalized assessed value of the
12 residence in the taxable year for which application is
13 made minus the base amount (ii) multiplied by 0.6.
14 (4) For an applicant who has a household income
15 exceeding $47,500 but not exceeding $48,750, the amount of
16 the exemption is (i) the equalized assessed value of the
17 residence in the taxable year for which application is
18 made minus the base amount (ii) multiplied by 0.4.
19 (5) For an applicant who has a household income
20 exceeding $48,750 but not exceeding $50,000, the amount of
21 the exemption is (i) the equalized assessed value of the
22 residence in the taxable year for which application is
23 made minus the base amount (ii) multiplied by 0.2.
24 When the applicant is a surviving spouse of an applicant
25for a prior year for the same residence for which an exemption
26under this Section has been granted, the base year and base

SB1744- 7 -LRB102 16116 HLH 21491 b
1amount for that residence are the same as for the applicant for
2the prior year.
3 Beginning January 1, 2022, if an applicant who qualifies
4for the exemption under this Section moves to a different
5residence in the State and continues to qualify for the
6exemption, then the new residence shall qualify for the
7exemption under this Section beginning with the taxable year
8in which the qualified applicant takes ownership of the new
9residence; in that case, the base year shall be the year prior
10to the year in which the qualified applicant takes ownership
11of the new residence.
12 Each year at the time the assessment books are certified
13to the County Clerk, the Board of Review or Board of Appeals
14shall give to the County Clerk a list of the assessed values of
15improvements on each parcel qualifying for this exemption that
16were added after the base year for this parcel and that
17increased the assessed value of the property.
18 In the case of land improved with an apartment building
19owned and operated as a cooperative or a building that is a
20life care facility that qualifies as a cooperative, the
21maximum reduction from the equalized assessed value of the
22property is limited to the sum of the reductions calculated
23for each unit occupied as a residence by a person or persons
24(i) 65 years of age or older, (ii) with a household income that
25does not exceed the maximum income limitation, (iii) who is
26liable, by contract with the owner or owners of record, for

SB1744- 8 -LRB102 16116 HLH 21491 b
1paying real property taxes on the property, and (iv) who is an
2owner of record of a legal or equitable interest in the
3cooperative apartment building, other than a leasehold
4interest. In the instance of a cooperative where a homestead
5exemption has been granted under this Section, the cooperative
6association or its management firm shall credit the savings
7resulting from that exemption only to the apportioned tax
8liability of the owner who qualified for the exemption. Any
9person who willfully refuses to credit that savings to an
10owner who qualifies for the exemption is guilty of a Class B
11misdemeanor.
12 When a homestead exemption has been granted under this
13Section and an applicant then becomes a resident of a facility
14licensed under the Assisted Living and Shared Housing Act, the
15Nursing Home Care Act, the Specialized Mental Health
16Rehabilitation Act of 2013, the ID/DD Community Care Act, or
17the MC/DD Act, the exemption shall be granted in subsequent
18years so long as the residence (i) continues to be occupied by
19the qualified applicant's spouse or (ii) if remaining
20unoccupied, is still owned by the qualified applicant for the
21homestead exemption.
22 Beginning January 1, 1997, when an individual dies who
23would have qualified for an exemption under this Section, and
24the surviving spouse does not independently qualify for this
25exemption because of age, the exemption under this Section
26shall be granted to the surviving spouse for the taxable year

SB1744- 9 -LRB102 16116 HLH 21491 b
1preceding and the taxable year of the death, provided that,
2except for age, the surviving spouse meets all other
3qualifications for the granting of this exemption for those
4years.
5 When married persons maintain separate residences, the
6exemption provided for in this Section may be claimed by only
7one of such persons and for only one residence.
8 For taxable year 1994 only, in counties having less than
93,000,000 inhabitants, to receive the exemption, a person
10shall submit an application by February 15, 1995 to the Chief
11County Assessment Officer of the county in which the property
12is located. In counties having 3,000,000 or more inhabitants,
13for taxable year 1994 and all subsequent taxable years, to
14receive the exemption, a person may submit an application to
15the Chief County Assessment Officer of the county in which the
16property is located during such period as may be specified by
17the Chief County Assessment Officer. The Chief County
18Assessment Officer in counties of 3,000,000 or more
19inhabitants shall annually give notice of the application
20period by mail or by publication. In counties having less than
213,000,000 inhabitants, beginning with taxable year 1995 and
22thereafter, to receive the exemption, a person shall submit an
23application by July 1 of each taxable year to the Chief County
24Assessment Officer of the county in which the property is
25located. A county may, by ordinance, establish a date for
26submission of applications that is different than July 1. The

SB1744- 10 -LRB102 16116 HLH 21491 b
1applicant shall submit with the application an affidavit of
2the applicant's total household income, age, marital status
3(and if married the name and address of the applicant's
4spouse, if known), and principal dwelling place of members of
5the household on January 1 of the taxable year. The Department
6shall establish, by rule, a method for verifying the accuracy
7of affidavits filed by applicants under this Section, and the
8Chief County Assessment Officer may conduct audits of any
9taxpayer claiming an exemption under this Section to verify
10that the taxpayer is eligible to receive the exemption. Each
11application shall contain or be verified by a written
12declaration that it is made under the penalties of perjury. A
13taxpayer's signing a fraudulent application under this Act is
14perjury, as defined in Section 32-2 of the Criminal Code of
152012. The applications shall be clearly marked as applications
16for the Senior Citizens Assessment Freeze Homestead Exemption
17and must contain a notice that any taxpayer who receives the
18exemption is subject to an audit by the Chief County
19Assessment Officer.
20 Notwithstanding any other provision to the contrary, in
21counties having fewer than 3,000,000 inhabitants, if an
22applicant fails to file the application required by this
23Section in a timely manner and this failure to file is due to a
24mental or physical condition sufficiently severe so as to
25render the applicant incapable of filing the application in a
26timely manner, the Chief County Assessment Officer may extend

SB1744- 11 -LRB102 16116 HLH 21491 b
1the filing deadline for a period of 30 days after the applicant
2regains the capability to file the application, but in no case
3may the filing deadline be extended beyond 3 months of the
4original filing deadline. In order to receive the extension
5provided in this paragraph, the applicant shall provide the
6Chief County Assessment Officer with a signed statement from
7the applicant's physician, advanced practice registered nurse,
8or physician assistant stating the nature and extent of the
9condition, that, in the physician's, advanced practice
10registered nurse's, or physician assistant's opinion, the
11condition was so severe that it rendered the applicant
12incapable of filing the application in a timely manner, and
13the date on which the applicant regained the capability to
14file the application.
15 Beginning January 1, 1998, notwithstanding any other
16provision to the contrary, in counties having fewer than
173,000,000 inhabitants, if an applicant fails to file the
18application required by this Section in a timely manner and
19this failure to file is due to a mental or physical condition
20sufficiently severe so as to render the applicant incapable of
21filing the application in a timely manner, the Chief County
22Assessment Officer may extend the filing deadline for a period
23of 3 months. In order to receive the extension provided in this
24paragraph, the applicant shall provide the Chief County
25Assessment Officer with a signed statement from the
26applicant's physician, advanced practice registered nurse, or

SB1744- 12 -LRB102 16116 HLH 21491 b
1physician assistant stating the nature and extent of the
2condition, and 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.
6 In counties having less than 3,000,000 inhabitants, if an
7applicant was denied an exemption in taxable year 1994 and the
8denial occurred due to an error on the part of an assessment
9official, or his or her agent or employee, then beginning in
10taxable year 1997 the applicant's base year, for purposes of
11determining the amount of the exemption, shall be 1993 rather
12than 1994. In addition, in taxable year 1997, the applicant's
13exemption shall also include an amount equal to (i) the amount
14of any exemption denied to the applicant in taxable year 1995
15as a result of using 1994, rather than 1993, as the base year,
16(ii) the amount of any exemption denied to the applicant in
17taxable year 1996 as a result of using 1994, rather than 1993,
18as the base year, and (iii) the amount of the exemption
19erroneously denied for taxable year 1994.
20 For purposes of this Section, a person who will be 65 years
21of age during the current taxable year shall be eligible to
22apply for the homestead exemption during that taxable year.
23Application shall be made during the application period in
24effect for the county of his or her residence.
25 The Chief County Assessment Officer may determine the
26eligibility of a life care facility that qualifies as a

SB1744- 13 -LRB102 16116 HLH 21491 b
1cooperative to receive the benefits provided by this Section
2by use of an affidavit, application, visual inspection,
3questionnaire, or other reasonable method in order to insure
4that the tax savings resulting from the exemption are credited
5by the management firm to the apportioned tax liability of
6each qualifying resident. The Chief County Assessment Officer
7may request reasonable proof that the management firm has so
8credited that exemption.
9 Except as provided in this Section, all information
10received by the chief county assessment officer or the
11Department from applications filed under this Section, or from
12any investigation conducted under the provisions of this
13Section, shall be confidential, except for official purposes
14or pursuant to official procedures for collection of any State
15or local tax or enforcement of any civil or criminal penalty or
16sanction imposed by this Act or by any statute or ordinance
17imposing a State or local tax. Any person who divulges any such
18information in any manner, except in accordance with a proper
19judicial order, is guilty of a Class A misdemeanor.
20 Nothing contained in this Section shall prevent the
21Director or chief county assessment officer from publishing or
22making available reasonable statistics concerning the
23operation of the exemption contained in this Section in which
24the contents of claims are grouped into aggregates in such a
25way that information contained in any individual claim shall
26not be disclosed.

SB1744- 14 -LRB102 16116 HLH 21491 b
1 Notwithstanding any other provision of law, for taxable
2year 2017 and thereafter, in counties of 3,000,000 or more
3inhabitants, the amount of the exemption shall be the greater
4of (i) the amount of the exemption otherwise calculated under
5this Section or (ii) $2,000.
6 (c-5) Notwithstanding any other provision of law, each
7chief county assessment officer may approve this exemption for
8the 2020 taxable year, without application, for any property
9that was approved for this exemption for the 2019 taxable
10year, provided that:
11 (1) the county board has declared a local disaster as
12 provided in the Illinois Emergency Management Agency Act
13 related to the COVID-19 public health emergency;
14 (2) the owner of record of the property as of January
15 1, 2020 is the same as the owner of record of the property
16 as of January 1, 2019;
17 (3) the exemption for the 2019 taxable year has not
18 been determined to be an erroneous exemption as defined by
19 this Code; and
20 (4) the applicant for the 2019 taxable year has not
21 asked for the exemption to be removed for the 2019 or 2020
22 taxable years.
23 Nothing in this subsection shall preclude or impair the
24authority of a chief county assessment officer to conduct
25audits of any taxpayer claiming an exemption under this
26Section to verify that the taxpayer is eligible to receive the

SB1744- 15 -LRB102 16116 HLH 21491 b
1exemption as provided elsewhere in this Section.
2 (d) Each Chief County Assessment Officer shall annually
3publish a notice of availability of the exemption provided
4under this Section. The notice shall be published at least 60
5days but no more than 75 days prior to the date on which the
6application must be submitted to the Chief County Assessment
7Officer of the county in which the property is located. The
8notice shall appear in a newspaper of general circulation in
9the county.
10 Notwithstanding Sections 6 and 8 of the State Mandates
11Act, no reimbursement by the State is required for the
12implementation of any mandate created by this Section.
13(Source: P.A. 100-401, eff. 8-25-17; 100-513, eff. 1-1-18;
14100-863, eff. 8-14-18; 101-635, eff. 6-5-20.)
15 Section 99. Effective date. This Act takes effect upon
16becoming law.
feedback