Bill Text: IL HB3406 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Property Tax Code. In provisions concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that, for taxable years 2019 and thereafter, the maximum income limitation is $85,000 (currently, $65,000). Effective immediately.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced) 2019-08-16 - Added Co-Sponsor Rep. Anthony DeLuca [HB3406 Detail]

Download: Illinois-2019-HB3406-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3406

Introduced , by Rep. Karina Villa

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-172

Amends the Property Tax Code. In provisions concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that, for taxable years 2019 and thereafter, the maximum income limitation is $85,000 (currently, $65,000). Effective immediately.
LRB101 06938 HLH 51971 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB3406LRB101 06938 HLH 51971 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 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.
11 "Income" has the same meaning as provided in Section 3.07
12of the Senior Citizens and Persons with Disabilities Property
13Tax Relief Act, except that, beginning in assessment year 2001,
14"income" does not include veteran's benefits.
15 "Internal Revenue Code of 1986" means the United States
16Internal Revenue Code of 1986 or any successor law or laws
17relating to federal income taxes in effect for the year
18preceding the taxable year.
19 "Life care facility that qualifies as a cooperative" means
20a facility as defined in Section 2 of the Life Care Facilities
21Act.
22 "Maximum income limitation" means:
23 (1) $35,000 prior to taxable year 1999;
24 (2) $40,000 in taxable years 1999 through 2003;
25 (3) $45,000 in taxable years 2004 through 2005;
26 (4) $50,000 in taxable years 2006 and 2007;

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1 (5) $55,000 in taxable years 2008 through 2016;
2 (6) for taxable year 2017, (i) $65,000 for qualified
3 property located in a county with 3,000,000 or more
4 inhabitants and (ii) $55,000 for qualified property
5 located in a county with fewer than 3,000,000 inhabitants;
6 and
7 (7) for taxable year years 2018 and thereafter, $65,000
8 for all qualified property; and .
9 (8) for taxable years 2019 and thereafter, $85,000 for
10 all qualified property.
11 "Residence" means the principal dwelling place and
12appurtenant structures used for residential purposes in this
13State occupied on January 1 of the taxable year by a household
14and so much of the surrounding land, constituting the parcel
15upon which the dwelling place is situated, as is used for
16residential purposes. If the Chief County Assessment Officer
17has established a specific legal description for a portion of
18property constituting the residence, then that portion of
19property shall be deemed the residence for the purposes of this
20Section.
21 "Taxable year" means the calendar year during which ad
22valorem property taxes payable in the next succeeding year are
23levied.
24 (c) Beginning in taxable year 1994, a senior citizens
25assessment freeze homestead exemption is granted for real
26property that is improved with a permanent structure that is

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

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1amount for that residence are the same as for the applicant for
2the prior year.
3 Each year at the time the assessment books are certified to
4the County Clerk, the Board of Review or Board of Appeals shall
5give to the County Clerk a list of the assessed values of
6improvements on each parcel qualifying for this exemption that
7were added after the base year for this parcel and that
8increased the assessed value of the property.
9 In the case of land improved with an apartment building
10owned and operated as a cooperative or a building that is a
11life care facility that qualifies as a cooperative, the maximum
12reduction from the equalized assessed value of the property is
13limited to the sum of the reductions calculated for each unit
14occupied as a residence by a person or persons (i) 65 years of
15age or older, (ii) with a household income that does not exceed
16the maximum income limitation, (iii) who is liable, by contract
17with the owner or owners of record, for paying real property
18taxes on the property, and (iv) who is an owner of record of a
19legal or equitable interest in the cooperative apartment
20building, other than a leasehold interest. In the instance of a
21cooperative where a homestead exemption has been granted under
22this Section, the cooperative association or its management
23firm shall credit the savings resulting from that exemption
24only to the apportioned tax liability of the owner who
25qualified for the exemption. Any person who willfully refuses
26to credit that savings to an owner who qualifies for the

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1exemption is guilty of a Class B misdemeanor.
2 When a homestead exemption has been granted under this
3Section and an applicant then becomes a resident of a facility
4licensed under the Assisted Living and Shared Housing Act, the
5Nursing Home Care Act, the Specialized Mental Health
6Rehabilitation Act of 2013, the ID/DD Community Care Act, or
7the MC/DD Act, the exemption shall be granted in subsequent
8years so long as the residence (i) continues to be occupied by
9the qualified applicant's spouse or (ii) if remaining
10unoccupied, is still owned by the qualified applicant for the
11homestead exemption.
12 Beginning January 1, 1997, when an individual dies who
13would have qualified for an exemption under this Section, and
14the surviving spouse does not independently qualify for this
15exemption because of age, the exemption under this Section
16shall be granted to the surviving spouse for the taxable year
17preceding and the taxable year of the death, provided that,
18except for age, the surviving spouse meets all other
19qualifications for the granting of this exemption for those
20years.
21 When married persons maintain separate residences, the
22exemption provided for in this Section may be claimed by only
23one of such persons and for only one residence.
24 For taxable year 1994 only, in counties having less than
253,000,000 inhabitants, to receive the exemption, a person shall
26submit an application by February 15, 1995 to the Chief County

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1Assessment Officer of the county in which the property is
2located. In counties having 3,000,000 or more inhabitants, for
3taxable year 1994 and all subsequent taxable years, to receive
4the exemption, a person may submit an application to the Chief
5County Assessment Officer of the county in which the property
6is located during such period as may be specified by the Chief
7County Assessment Officer. The Chief County Assessment Officer
8in counties of 3,000,000 or more inhabitants shall annually
9give notice of the application period by mail or by
10publication. In counties having less than 3,000,000
11inhabitants, beginning with taxable year 1995 and thereafter,
12to receive the exemption, a person shall submit an application
13by July 1 of each taxable year to the Chief County Assessment
14Officer of the county in which the property is located. A
15county may, by ordinance, establish a date for submission of
16applications that is different than July 1. The applicant shall
17submit with the application an affidavit of the applicant's
18total household income, age, marital status (and if married the
19name and address of the applicant's spouse, if known), and
20principal dwelling place of members of the household on January
211 of the taxable year. The Department shall establish, by rule,
22a method for verifying the accuracy of affidavits filed by
23applicants under this Section, and the Chief County Assessment
24Officer may conduct audits of any taxpayer claiming an
25exemption under this Section to verify that the taxpayer is
26eligible to receive the exemption. Each application shall

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

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1incapable of filing the application in a timely manner, and the
2date on which the applicant regained the capability to file the
3application.
4 Beginning January 1, 1998, notwithstanding any other
5provision to the contrary, in counties having fewer than
63,000,000 inhabitants, if an applicant fails to file the
7application required by this Section in a timely manner and
8this failure to file is due to a mental or physical condition
9sufficiently severe so as to render the applicant incapable of
10filing the application in a timely manner, the Chief County
11Assessment Officer may extend the filing deadline for a period
12of 3 months. In order to receive the extension provided in this
13paragraph, the applicant shall provide the Chief County
14Assessment Officer with a signed statement from the applicant's
15physician, advanced practice registered nurse, or physician
16assistant stating the nature and extent of the condition, and
17that, in the physician's, advanced practice registered
18nurse's, or physician assistant's opinion, the condition was so
19severe that it rendered the applicant incapable of filing the
20application in a timely manner.
21 In counties having less than 3,000,000 inhabitants, if an
22applicant was denied an exemption in taxable year 1994 and the
23denial occurred due to an error on the part of an assessment
24official, or his or her agent or employee, then beginning in
25taxable year 1997 the applicant's base year, for purposes of
26determining the amount of the exemption, shall be 1993 rather

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

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1any investigation conducted under the provisions of this
2Section, shall be confidential, except for official purposes or
3pursuant to official procedures for collection of any State or
4local tax or enforcement of any civil or criminal penalty or
5sanction imposed by this Act or by any statute or ordinance
6imposing a State or local tax. Any person who divulges any such
7information in any manner, except in accordance with a proper
8judicial order, is guilty of a Class A misdemeanor.
9 Nothing contained in this Section shall prevent the
10Director or chief county assessment officer from publishing or
11making available reasonable statistics concerning the
12operation of the exemption contained in this Section in which
13the contents of claims are grouped into aggregates in such a
14way that information contained in any individual claim shall
15not be disclosed.
16 Notwithstanding any other provision of law, for taxable
17year 2017 and thereafter, in counties of 3,000,000 or more
18inhabitants, the amount of the exemption shall be the greater
19of (i) the amount of the exemption otherwise calculated under
20this Section or (ii) $2,000.
21 (d) Each Chief County Assessment Officer shall annually
22publish a notice of availability of the exemption provided
23under this Section. The notice shall be published at least 60
24days but no more than 75 days prior to the date on which the
25application must be submitted to the Chief County Assessment
26Officer of the county in which the property is located. The

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1notice shall appear in a newspaper of general circulation in
2the county.
3 Notwithstanding Sections 6 and 8 of the State Mandates Act,
4no reimbursement by the State is required for the
5implementation of any mandate created by this Section.
6(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
799-581, eff. 1-1-17; 99-642, eff. 7-28-16; 100-401, eff.
88-25-17; 100-513, eff. 1-1-18; 100-863, eff. 8-14-18.)
9 Section 99. Effective date. This Act takes effect upon
10becoming law.
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