Illinois-2021-SB1744-Introduced

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.

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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,

3 represented in the General Assembly:

4 Section 5. The Property Tax Code is amended by changing

5 Section 15-172 as follows:

6 (35 ILCS 200/15-172)

7 Sec. 15-172. Senior Citizens Assessment Freeze Homestead

8 Exemption.

9 (a) This Section may be cited as the Senior Citizens

10 Assessment Freeze Homestead Exemption.

11 (b) As used in this Section:

12 "Applicant" means an individual who has filed an

13 application under this Section.

14 "Base amount" means the base year equalized assessed value

15 of the residence plus the first year's equalized assessed

16 value of any added improvements which increased the assessed

17 value of the residence after the base year.

18 "Base year" means the taxable year prior to the taxable

19 year for which the applicant first qualifies and applies for

20 the exemption provided that in the prior taxable year the

21 property was improved with a permanent structure that was

22 occupied as a residence by the applicant who was liable for

23 paying 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

2 equitable interest in the property as evidenced by a written

3 instrument or (ii) had a legal or equitable interest as a

4 lessee in the parcel of property that was single family

5 residence. If in any subsequent taxable year for which the

6 applicant applies and qualifies for the exemption the

7 equalized assessed value of the residence is less than the

8 equalized assessed value in the existing base year (provided

9 that such equalized assessed value is not based on an assessed

10 value that results from a temporary irregularity in the

11 property that reduces the assessed value for one or more

12 taxable years), then that subsequent taxable year shall become

13 the base year until a new base year is established under the

14 terms of this paragraph. For taxable year 1999 only, the Chief

15 County Assessment Officer shall review (i) all taxable years

16 for which the applicant applied and qualified for the

17 exemption and (ii) the existing base year. The assessment

18 officer shall select as the new base year the year with the

19 lowest equalized assessed value. An equalized assessed value

20 that is based on an assessed value that results from a

21 temporary irregularity in the property that reduces the

22 assessed value for one or more taxable years shall not be

23 considered the lowest equalized assessed value. The selected

24 year shall be the base year for taxable year 1999 and

25 thereafter until a new base year is established under the

26 terms of this paragraph.

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1 "Chief County Assessment Officer" means the County

2 Assessor or Supervisor of Assessments of the county in which

3 the property is located.

4 "Equalized assessed value" means the assessed value as

5 equalized by the Illinois Department of Revenue.

6 "Household" means the applicant, the spouse of the

7 applicant, and all persons using the residence of the

8 applicant as their principal place of residence.

9 "Household income" means the combined income of the

10 members of a household for the calendar year preceding the

11 taxable year.

12 "Income" has the same meaning as provided in Section 3.07

13 of the Senior Citizens and Persons with Disabilities Property

14 Tax Relief Act, except that, beginning in assessment year

15 2001, "income" does not include veteran's benefits.

16 "Internal Revenue Code of 1986" means the United States

17 Internal Revenue Code of 1986 or any successor law or laws

18 relating to federal income taxes in effect for the year

19 preceding the taxable year.

20 "Life care facility that qualifies as a cooperative" means

21 a facility as defined in Section 2 of the Life Care Facilities

22 Act.

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;

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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

11 appurtenant structures used for residential purposes in this

12 State occupied on January 1 of the taxable year by a household

13 and so much of the surrounding land, constituting the parcel

14 upon which the dwelling place is situated, as is used for

15 residential purposes. If the Chief County Assessment Officer

16 has established a specific legal description for a portion of

17 property constituting the residence, then that portion of

18 property shall be deemed the residence for the purposes of

19 this Section.

20 "Taxable year" means the calendar year during which ad

21 valorem property taxes payable in the next succeeding year are

22 levied.

23 (c) Beginning in taxable year 1994, a senior citizens

24 assessment freeze homestead exemption is granted for real

25 property that is improved with a permanent structure that is

26 occupied as a residence by an applicant who (i) is 65 years of

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1 age or older during the taxable year, (ii) has a household

2 income that does not exceed the maximum income limitation,

3 (iii) is liable for paying real property taxes on the

4 property, and (iv) is an owner of record of the property or has

5 a legal or equitable interest in the property as evidenced by a

6 written instrument. This homestead exemption shall also apply

7 to a leasehold interest in a parcel of property improved with a

8 permanent structure that is a single family residence that is

9 occupied as a residence by a person who (i) is 65 years of age

10 or older during the taxable year, (ii) has a household income

11 that does not exceed the maximum income limitation, (iii) has

12 a legal or equitable ownership interest in the property as

13 lessee, and (iv) is liable for the payment of real property

14 taxes on that property.

15 In counties of 3,000,000 or more inhabitants, the amount

16 of the exemption for all taxable years is the equalized

17 assessed value of the residence in the taxable year for which

18 application is made minus the base amount. In all other

19 counties, the amount of the exemption is as follows: (i)

20 through taxable year 2005 and for taxable year 2007 and

21 thereafter, the amount of this exemption shall be the

22 equalized assessed value of the residence in the taxable year

23 for which application is made minus the base amount; and (ii)

24 for taxable year 2006, the amount of the exemption is as

25 follows:

26 (1) For an applicant who has a household income of

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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

25 for a prior year for the same residence for which an exemption

26 under this Section has been granted, the base year and base

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1 amount for that residence are the same as for the applicant for

2 the prior year.

3 Beginning January 1, 2022, if an applicant who qualifies

4 for the exemption under this Section moves to a different

5 residence in the State and continues to qualify for the

6 exemption, then the new residence shall qualify for the

7 exemption under this Section beginning with the taxable year

8 in which the qualified applicant takes ownership of the new

9 residence; in that case, the base year shall be the year prior

10 to the year in which the qualified applicant takes ownership

11 of the new residence.

12 Each year at the time the assessment books are certified

13 to the County Clerk, the Board of Review or Board of Appeals

14 shall give to the County Clerk a list of the assessed values of

15 improvements on each parcel qualifying for this exemption that

16 were added after the base year for this parcel and that

17 increased the assessed value of the property.

18 In the case of land improved with an apartment building

19 owned and operated as a cooperative or a building that is a

20 life care facility that qualifies as a cooperative, the

21 maximum reduction from the equalized assessed value of the

22 property is limited to the sum of the reductions calculated

23 for 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

25 does not exceed the maximum income limitation, (iii) who is

26 liable, by contract with the owner or owners of record, for

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1 paying real property taxes on the property, and (iv) who is an

2 owner of record of a legal or equitable interest in the

3 cooperative apartment building, other than a leasehold

4 interest. In the instance of a cooperative where a homestead

5 exemption has been granted under this Section, the cooperative

6 association or its management firm shall credit the savings

7 resulting from that exemption only to the apportioned tax

8 liability of the owner who qualified for the exemption. Any

9 person who willfully refuses to credit that savings to an

10 owner who qualifies for the exemption is guilty of a Class B

11 misdemeanor.

12 When a homestead exemption has been granted under this

13 Section and an applicant then becomes a resident of a facility

14 licensed under the Assisted Living and Shared Housing Act, the

15 Nursing Home Care Act, the Specialized Mental Health

16 Rehabilitation Act of 2013, the ID/DD Community Care Act, or

17 the MC/DD Act, the exemption shall be granted in subsequent

18 years so long as the residence (i) continues to be occupied by

19 the qualified applicant's spouse or (ii) if remaining

20 unoccupied, is still owned by the qualified applicant for the

21 homestead exemption.

22 Beginning January 1, 1997, when an individual dies who

23 would have qualified for an exemption under this Section, and

24 the surviving spouse does not independently qualify for this

25 exemption because of age, the exemption under this Section

26 shall be granted to the surviving spouse for the taxable year

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1 preceding and the taxable year of the death, provided that,

2 except for age, the surviving spouse meets all other

3 qualifications for the granting of this exemption for those

4 years.

5 When married persons maintain separate residences, the

6 exemption provided for in this Section may be claimed by only

7 one of such persons and for only one residence.

8 For taxable year 1994 only, in counties having less than

9 3,000,000 inhabitants, to receive the exemption, a person

10 shall submit an application by February 15, 1995 to the Chief

11 County Assessment Officer of the county in which the property

12 is located. In counties having 3,000,000 or more inhabitants,

13 for taxable year 1994 and all subsequent taxable years, to

14 receive the exemption, a person may submit an application to

15 the Chief County Assessment Officer of the county in which the

16 property is located during such period as may be specified by

17 the Chief County Assessment Officer. The Chief County

18 Assessment Officer in counties of 3,000,000 or more

19 inhabitants shall annually give notice of the application

20 period by mail or by publication. In counties having less than

21 3,000,000 inhabitants, beginning with taxable year 1995 and

22 thereafter, to receive the exemption, a person shall submit an

23 application by July 1 of each taxable year to the Chief County

24 Assessment Officer of the county in which the property is

25 located. A county may, by ordinance, establish a date for

26 submission of applications that is different than July 1. The

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1 applicant shall submit with the application an affidavit of

2 the applicant's total household income, age, marital status

3 (and if married the name and address of the applicant's

4 spouse, if known), and principal dwelling place of members of

5 the household on January 1 of the taxable year. The Department

6 shall establish, by rule, a method for verifying the accuracy

7 of affidavits filed by applicants under this Section, and the

8 Chief County Assessment Officer may conduct audits of any

9 taxpayer claiming an exemption under this Section to verify

10 that the taxpayer is eligible to receive the exemption. Each

11 application shall contain or be verified by a written

12 declaration that it is made under the penalties of perjury. A

13 taxpayer's signing a fraudulent application under this Act is

14 perjury, as defined in Section 32-2 of the Criminal Code of

15 2012. The applications shall be clearly marked as applications

16 for the Senior Citizens Assessment Freeze Homestead Exemption

17 and must contain a notice that any taxpayer who receives the

18 exemption is subject to an audit by the Chief County

19 Assessment Officer.

20 Notwithstanding any other provision to the contrary, in

21 counties having fewer than 3,000,000 inhabitants, if an

22 applicant fails to file the application required by this

23 Section in a timely manner and this failure to file is due to a

24 mental or physical condition sufficiently severe so as to

25 render the applicant incapable of filing the application in a

26 timely manner, the Chief County Assessment Officer may extend

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1 the filing deadline for a period of 30 days after the applicant

2 regains the capability to file the application, but in no case

3 may the filing deadline be extended beyond 3 months of the

4 original filing deadline. In order to receive the extension

5 provided in this paragraph, the applicant shall provide the

6 Chief County Assessment Officer with a signed statement from

7 the applicant's physician, advanced practice registered nurse,

8 or physician assistant stating the nature and extent of the

9 condition, that, in the physician's, advanced practice

10 registered nurse's, or physician assistant's opinion, the

11 condition was so severe that it rendered the applicant

12 incapable of filing the application in a timely manner, and

13 the date on which the applicant regained the capability to

14 file the application.

15 Beginning January 1, 1998, notwithstanding any other

16 provision to the contrary, in counties having fewer than

17 3,000,000 inhabitants, if an applicant fails to file the

18 application required by this Section in a timely manner and

19 this failure to file is due to a mental or physical condition

20 sufficiently severe so as to render the applicant incapable of

21 filing the application in a timely manner, the Chief County

22 Assessment Officer may extend the filing deadline for a period

23 of 3 months. In order to receive the extension provided in this

24 paragraph, the applicant shall provide the Chief County

25 Assessment Officer with a signed statement from the

26 applicant's physician, advanced practice registered nurse, or

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1 physician assistant stating the nature and extent of the

2 condition, and that, in the physician's, advanced practice

3 registered nurse's, or physician assistant's opinion, the

4 condition was so severe that it rendered the applicant

5 incapable of filing the application in a timely manner.

6 In counties having less than 3,000,000 inhabitants, if an

7 applicant was denied an exemption in taxable year 1994 and the

8 denial occurred due to an error on the part of an assessment

9 official, or his or her agent or employee, then beginning in

10 taxable year 1997 the applicant's base year, for purposes of

11 determining the amount of the exemption, shall be 1993 rather

12 than 1994. In addition, in taxable year 1997, the applicant's

13 exemption shall also include an amount equal to (i) the amount

14 of any exemption denied to the applicant in taxable year 1995

15 as a result of using 1994, rather than 1993, as the base year,

16 (ii) the amount of any exemption denied to the applicant in

17 taxable year 1996 as a result of using 1994, rather than 1993,

18 as the base year, and (iii) the amount of the exemption

19 erroneously denied for taxable year 1994.

20 For purposes of this Section, a person who will be 65 years

21 of age during the current taxable year shall be eligible to

22 apply for the homestead exemption during that taxable year.

23 Application shall be made during the application period in

24 effect for the county of his or her residence.

25 The Chief County Assessment Officer may determine the

26 eligibility of a life care facility that qualifies as a

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1 cooperative to receive the benefits provided by this Section

2 by use of an affidavit, application, visual inspection,

3 questionnaire, or other reasonable method in order to insure

4 that the tax savings resulting from the exemption are credited

5 by the management firm to the apportioned tax liability of

6 each qualifying resident. The Chief County Assessment Officer

7 may request reasonable proof that the management firm has so

8 credited that exemption.

9 Except as provided in this Section, all information

10 received by the chief county assessment officer or the

11 Department from applications filed under this Section, or from

12 any investigation conducted under the provisions of this

13 Section, shall be confidential, except for official purposes

14 or pursuant to official procedures for collection of any State

15 or local tax or enforcement of any civil or criminal penalty or

16 sanction imposed by this Act or by any statute or ordinance

17 imposing a State or local tax. Any person who divulges any such

18 information in any manner, except in accordance with a proper

19 judicial order, is guilty of a Class A misdemeanor.

20 Nothing contained in this Section shall prevent the

21 Director or chief county assessment officer from publishing or

22 making available reasonable statistics concerning the

23 operation of the exemption contained in this Section in which

24 the contents of claims are grouped into aggregates in such a

25 way that information contained in any individual claim shall

26 not be disclosed.

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1 Notwithstanding any other provision of law, for taxable

2 year 2017 and thereafter, in counties of 3,000,000 or more

3 inhabitants, the amount of the exemption shall be the greater

4 of (i) the amount of the exemption otherwise calculated under

5 this Section or (ii) $2,000.

6 (c-5) Notwithstanding any other provision of law, each

7 chief county assessment officer may approve this exemption for

8 the 2020 taxable year, without application, for any property

9 that was approved for this exemption for the 2019 taxable

10 year, 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

24 authority of a chief county assessment officer to conduct

25 audits of any taxpayer claiming an exemption under this

26 Section to verify that the taxpayer is eligible to receive the

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1 exemption as provided elsewhere in this Section.

2 (d) Each Chief County Assessment Officer shall annually

3 publish a notice of availability of the exemption provided

4 under this Section. The notice shall be published at least 60

5 days but no more than 75 days prior to the date on which the

6 application must be submitted to the Chief County Assessment

7 Officer of the county in which the property is located. The

8 notice shall appear in a newspaper of general circulation in

9 the county.

10 Notwithstanding Sections 6 and 8 of the State Mandates

11 Act, no reimbursement by the State is required for the

12 implementation of any mandate created by this Section.

13 (Source: P.A. 100-401, eff. 8-25-17; 100-513, eff. 1-1-18;

14 100-863, eff. 8-14-18; 101-635, eff. 6-5-20.)

15 Section 99. Effective date. This Act takes effect upon

16 becoming law.