96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1331


 
Introduced 2/18/2009, by Rep. Mike Boland
 
SYNOPSIS AS INTRODUCED:








      




35 ILCS 200/14-20




35 ILCS 200/15-10



35 ILCS 200/15-172










 Amends the Property Tax Code. Includes disabled persons within the
provisions awarding an assessment freeze homestead exemption to senior
citizens. Changes the name to the Senior Citizens and Disabled Persons
Assessment Freeze Homestead Exemption (now Senior Citizens Assessment Freeze
Homestead Exemption). Makes corresponding changes to a cross-reference to the
exemption. Effective July 1, 2009.















LRB096 07648 RCE 17747 b

















FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB1331

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1
 AN ACT concerning taxes. 


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
Sections 14-20,
15-10, and
15-172 as follows:



6
 (35 ILCS 200/14-20)

7
 Sec. 14-20. Certificate of error; counties of less than 
8
3,000,000. In any
county with less than 3,000,000 inhabitants, 
9
if, at any time before judgment or
order of sale is entered in 
10
any proceeding to collect or to enjoin the
collection of taxes 
11
based upon any assessment of any property, the chief county

12
assessment officer discovers an error or mistake in the 
13
assessment (other than
errors of judgment as to the valuation 
14
of the property), he or she shall issue
to the person 
15
erroneously assessed a certificate setting forth the nature of

16
the error and the cause or causes of the error.
In any county 
17
with less than 3,000,000 inhabitants, if an owner fails to
file

18
an application for the Senior Citizens and Disabled Persons

19
Assessment
Freeze Homestead Exemption
provided in Section 
20
15-172 during the previous assessment year and qualifies
for 
21
the exemption, the Chief County Assessment Officer pursuant to 
22
this
Section,
or the Board of Review pursuant to Section 16-75, 
23
shall issue a
certificate of error setting forth the correct 
 


 






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taxable valuation of the
property.
The certificate, when 
2
properly
endorsed by the majority of the board of review, 
3
showing their concurrence, and
not otherwise, may be used in 
4
evidence in any court of competent jurisdiction,
and when so 
5
introduced in evidence, shall become a part of the court record 
6
and
shall not be removed from the files except on an order of 
7
the court.


8
(Source: P.A. 90-552, eff. 12-12-97; 91-377, eff. 7-30-99.)





9
 (35 ILCS 200/15-10)



10
 Sec. 15-10. Exempt property; procedures for certification. 
11
All property
granted an exemption by the Department pursuant to 
12
the requirements of
Section 15-5 and
described in the Sections 
13
following Section 15-30 and preceding Section 16-5,
to the 
14
extent therein limited, is exempt from taxation.
In order to 
15
maintain that exempt status, the titleholder or the owner of 
16
the
beneficial interest of any property
that
is exempt must 
17
file with the chief county assessment
officer, on or before 
18
January 31 of each year (May 31 in the case of property

19
exempted by Section 15-170), an affidavit stating whether there 
20
has been any
change in the ownership or use of the property or 
21
the status of the
owner-resident, or that a disabled veteran 
22
who qualifies under Section 15-165
owned and used the property 
23
as of January 1 of that year.
The nature of any
change shall be 
24
stated in the affidavit. Failure to file an affidavit shall,
in 
25
the discretion of the assessment officer, constitute cause to 
 


 






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1
terminate the
exemption of that property, notwithstanding any 
2
other provision of this Code.
Owners of 5 or more such exempt 
3
parcels within a county may file a single
annual affidavit in 
4
lieu of an affidavit for each parcel. The assessment
officer, 
5
upon request, shall furnish an affidavit form to the owners, in 
6
which
the owner may state whether there has been any change in 
7
the ownership or use
of the property or status of the owner or 
8
resident as of January 1 of that
year. The owner of 5 or more 
9
exempt parcels shall list all the properties
giving the same 
10
information for each parcel as required of owners who file

11
individual affidavits.

12
 However, titleholders or owners of the beneficial interest 
13
in any property
exempted under any of the following provisions 
14
are not required to
submit an annual filing under this Section:


15
  (1) Section 15-45 (burial grounds) in counties of less 
16
 than 3,000,000
inhabitants and owned by a not-for-profit

17
 organization.


18
  (2) Section 15-40.


19
  (3) Section 15-50 (United States property).

20
 If there is a change in use or ownership, however, notice 
21
must be filed
pursuant to Section 15-20.

22
 An application for homestead exemptions shall be filed as 
23
provided in
Section 15-170 (senior citizens homestead 
24
exemption), Section 15-172 (senior
citizens and disabled 
25
persons assessment freeze homestead exemption), and Sections

26
15-175 (general homestead exemption), 15-176
(general 
 


 






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1
alternative
homestead exemption), and 15-177 (long-time 
2
occupant homestead exemption), respectively.

3
(Source: P.A. 95-644, eff. 10-12-07.)





4
 (35 ILCS 200/15-172)


5
 Sec. 15-172. Senior Citizens and Disabled Persons 
6
Assessment Freeze Homestead Exemption. 

7
 (a) This Section may be cited as the Senior Citizens and 
8
Disabled Persons Assessment
Freeze Homestead Exemption.

9
 (b) As used in this Section:

10
 "Applicant" means an individual who has filed an 
11
application under this
Section.

12
 "Base amount" means the base year equalized assessed value 
13
of the residence
plus the first year's equalized assessed value 
14
of any added improvements which
increased the assessed value of 
15
the residence after the base year.

16
 "Base year" means the taxable year prior to the taxable 
17
year for which the
applicant first qualifies and applies for 
18
the exemption provided that in the
prior taxable year the 
19
property was improved with a permanent structure that
was 
20
occupied as a residence by the applicant who was liable for 
21
paying real
property taxes on the property and who was either 
22
(i) an owner of record of the
property or had legal or 
23
equitable interest in the property as evidenced by a
written 
24
instrument or (ii) had a legal or equitable interest as a 
25
lessee in the
parcel of property that was single family 
 


 






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residence.
If in any subsequent taxable year for which the 
2
applicant applies and
qualifies for the exemption the equalized 
3
assessed value of the residence is
less than the equalized 
4
assessed value in the existing base year
(provided that such 
5
equalized assessed value is not
based
on an
assessed value that 
6
results from a temporary irregularity in the property that

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

22
 "Chief County Assessment Officer" means the County 
23
Assessor or Supervisor of
Assessments of the county in which 
24
the property is located.

25
 "Disabled person" means a person unable to engage in any 
26
substantial gainful activity by reason of a medically 
 


 






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determinable physical or mental impairment that (i) can be 
2
expected to result in death or (ii) has
lasted or can be 
3
expected to last for a continuous period of not less than 12 
4
months. Disabled
persons applying for the exemption under this 
5
Section must submit proof of the
disability in the manner 
6
prescribed by the chief county assessment officer. Proof that 
7
an
applicant is eligible to receive disability benefits under 
8
the federal Social Security Act
constitutes proof of disability 
9
for purposes of this Section. Issuance of an Illinois
Disabled 
10
Person Identification Card to the applicant stating that the 
11
possessor is under a
Class 2 disability, as defined in Section 
12
4A of the Illinois Identification Card Act, constitutes
proof 
13
that the person is a disabled person for purposes of this 
14
Section. A disabled person
not covered under the federal Social 
15
Security Act and not presenting a Disabled Person

16
Identification Card stating that the claimant is under a Class 
17
2 disability shall be examined
by a physician designated by the 
18
chief county assessment officer, and the status as
a disabled 
19
person shall be determined using the standards of the Social 
20
Security
Administration. The applicant shall pay the costs of 
21
any required examination. 
22
 "Equalized assessed value" means the assessed value as 
23
equalized by the
Illinois Department of Revenue.

24
 "Household" means the applicant, the spouse of the 
25
applicant, and all persons
using the residence of the applicant 
26
as their principal place of residence.

 


 






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1
 "Household income" means the combined income of the members 
2
of a household
for the calendar year preceding the taxable 
3
year.

4
 "Income" has the same meaning as provided in Section 3.07 
5
of the Senior
Citizens and Disabled Persons Property Tax Relief 
6
and Pharmaceutical Assistance
Act, except that, beginning in 
7
assessment year 2001, "income" does not
include veteran's 
8
benefits.

9
 "Internal Revenue Code of 1986" means the United States 
10
Internal Revenue Code
of 1986 or any successor law or laws 
11
relating to federal income taxes in effect
for the year 
12
preceding the taxable year.

13
 "Life care facility that qualifies as a cooperative" means 
14
a facility as
defined in Section 2 of the Life Care Facilities 
15
Act.

16
 "Maximum income limitation" means:
17
  (1) $35,000 prior
to taxable year 1999;
18
  (2) $40,000 in taxable years 1999 through 2003;
19
  (3) $45,000 in taxable years 2004 through 2005;
20
  (4) $50,000 in taxable years 2006 and 2007; and
21
  (5) $55,000 in taxable year 2008 and thereafter.

22
 "Residence" means the principal dwelling place and 
23
appurtenant structures
used for residential purposes in this 
24
State occupied on January 1 of the
taxable year by a household 
25
and so much of the surrounding land, constituting
the parcel 
26
upon which the dwelling place is situated, as is used for

 


 






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1
residential purposes. If the Chief County Assessment Officer 
2
has established a
specific legal description for a portion of 
3
property constituting the
residence, then that portion of 
4
property shall be deemed the residence for the
purposes of this 
5
Section.

6
 "Taxable year" means the calendar year during which ad 
7
valorem property taxes
payable in the next succeeding year are 
8
levied.

9
 (c) Beginning in (1) taxable year 1994, for a senior 
10
citizens and (2) taxable year 2009, for disabled persons, an 
11
assessment freeze
homestead exemption is granted for real 
12
property that is improved with a
permanent structure that is 
13
occupied as a residence by an applicant who (i) is
65 years of 
14
age or older, or disabled, during the taxable year, (ii) has a 
15
household income that does not exceed the maximum income 
16
limitation, (iii) is liable for paying real property taxes on

17
the
property, and (iv) is an owner of record of the property or 
18
has a legal or
equitable interest in the property as evidenced 
19
by a written instrument. This
homestead exemption shall also 
20
apply to a leasehold interest in a parcel of
property improved 
21
with a permanent structure that is a single family residence

22
that is occupied as a residence by a person who (i) is 65 years 
23
of age or older, or disabled,
during the taxable year, (ii) has 
24
a household income that does not exceed the maximum income 
25
limitation,
(iii)
has a legal or equitable ownership interest 
26
in the property as lessee, and (iv)
is liable for the payment 
 


 






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1
of real property taxes on that property.


2
 In counties of 3,000,000 or more inhabitants, the amount of 
3
the exemption for all taxable years is the equalized assessed 
4
value of the
residence in the taxable year for which 
5
application is made minus the base
amount. In all other 
6
counties, the amount of the exemption is as follows: (i) 
7
through taxable year 2005 and for taxable year 2007 and 
8
thereafter, the amount of this exemption shall be the equalized 
9
assessed value of the
residence in the taxable year for which 
10
application is made minus the base
amount; and (ii) for
taxable 
11
year 2006, the amount of the exemption is as follows:

12
  (1) For an applicant who has a household income of 
13
 $45,000 or less, the amount of the exemption is the 
14
 equalized assessed value of the
residence in the taxable 
15
 year for which application is made minus the base
amount.
16
  (2) For an applicant who has a household income 
17
 exceeding $45,000 but not exceeding $46,250, the amount of 
18
 the exemption is (i) the equalized assessed value of the

19
 residence in the taxable year for which application is made 
20
 minus the base
amount (ii) multiplied by 0.8.
21
  (3) For an applicant who has a household income 
22
 exceeding $46,250 but not exceeding $47,500, the amount of 
23
 the exemption is (i) the equalized assessed value of the

24
 residence in the taxable year for which application is made 
25
 minus the base
amount (ii) multiplied by 0.6.
26
  (4) For an applicant who has a household income 
 


 






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1
 exceeding $47,500 but not exceeding $48,750, the amount of 
2
 the exemption is (i) the equalized assessed value of the

3
 residence in the taxable year for which application is made 
4
 minus the base
amount (ii) multiplied by 0.4.
5
  (5) For an applicant who has a household income 
6
 exceeding $48,750 but not exceeding $50,000, the amount of 
7
 the exemption is (i) the equalized assessed value of the

8
 residence in the taxable year for which application is made 
9
 minus the base
amount (ii) multiplied by 0.2.

10
 When the applicant is a surviving spouse of an applicant 
11
for a prior year for
the same residence for which an exemption 
12
under this Section has been granted,
the base year and base 
13
amount for that residence are the same as for the
applicant for 
14
the prior year.

15
 Each year at the time the assessment books are certified to 
16
the County Clerk,
the Board of Review or Board of Appeals shall 
17
give to the County Clerk a list
of the assessed values of 
18
improvements on each parcel qualifying for this
exemption that 
19
were added after the base year for this parcel and that

20
increased the assessed value of the property.

21
 In the case of land improved with an apartment building 
22
owned and operated as
a cooperative or a building that is a 
23
life care facility that qualifies as a
cooperative, the maximum 
24
reduction from the equalized assessed value of the
property is 
25
limited to the sum of the reductions calculated for each unit

26
occupied as a residence by a person or persons (i) 65 years of 
 


 






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1
age or older, or disabled, (ii) with a
household income that 
2
does not exceed the maximum income limitation, (iii) who is 
3
liable, by contract with the
owner
or owners of record, for 
4
paying real property taxes on the property, and (iv) who is
an 
5
owner of record of a legal or equitable interest in the 
6
cooperative
apartment building, other than a leasehold 
7
interest. In the instance of a
cooperative where a homestead 
8
exemption has been granted under this Section,
the cooperative 
9
association or its management firm shall credit the savings

10
resulting from that exemption only to the apportioned tax 
11
liability of the
owner who qualified for the exemption. Any 
12
person who willfully refuses to
credit that savings to an owner 
13
who qualifies for the exemption is guilty of a
Class B 
14
misdemeanor.

15
 When a homestead exemption has been granted under this 
16
Section and an
applicant then becomes a resident of a facility 
17
licensed under the Nursing Home
Care Act, the exemption shall 
18
be granted in subsequent years so long as the
residence (i) 
19
continues to be occupied by the qualified applicant's spouse or

20
(ii) if remaining unoccupied, is still owned by the qualified 
21
applicant for the
homestead exemption.

22
 Beginning January 1, 1997 for senior citizens and January 
23
1, 2009 for disabled persons, when an individual dies who would 
24
have qualified
for an exemption under this Section, and the 
25
surviving spouse does not
independently qualify for this 
26
exemption because he or she meets neither the of age nor the 
 


 






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disability requirement, the exemption under
this Section shall 
2
be granted to the surviving spouse for the taxable year

3
preceding and the taxable
year of the death, provided that, 
4
except for meeting neither the age nor the disability 
5
requirement, the surviving spouse meets
all
other 
6
qualifications for the granting of this exemption for those 
7
years.

8
 When married persons maintain separate residences, the 
9
exemption provided for
in this Section may be claimed by only 
10
one of such persons and for only one
residence.

11
 For taxable year 1994 only, in counties having less than 
12
3,000,000
inhabitants, to receive the exemption, a person shall 
13
submit an application by
February 15, 1995 to the Chief County 
14
Assessment Officer
of the county in which the property is 
15
located. In counties having 3,000,000
or more inhabitants, for 
16
taxable year 1994 and all subsequent taxable years, to
receive 
17
the exemption, a person
may submit an application to the Chief 
18
County
Assessment Officer of the county in which the property 
19
is located during such
period as may be specified by the Chief 
20
County Assessment Officer. The Chief
County Assessment Officer 
21
in counties of 3,000,000 or more inhabitants shall
annually 
22
give notice of the application period by mail or by 
23
publication. In
counties having less than 3,000,000 
24
inhabitants, beginning with taxable year
1995 and thereafter, 
25
to receive the exemption, a person
shall
submit an
application 
26
by July 1 of each taxable year to the Chief County Assessment

 


 






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1
Officer of the county in which the property is located. A 
2
county may, by
ordinance, establish a date for submission of 
3
applications that is
different than
July 1.
The applicant shall 
4
submit with the
application an affidavit of the applicant's 
5
total household income, age,
marital status (and if married the 
6
name and address of the applicant's spouse,
if known), 
7
disability (if applying for the exemption as a disabled 
8
person), and principal dwelling place of members of the 
9
household on January
1 of the taxable year. The Department 
10
shall establish, by rule, a method for
verifying the accuracy 
11
of affidavits filed by applicants under this Section, and the 
12
Chief County Assessment Officer may conduct audits of any 
13
taxpayer claiming an exemption under this Section to verify 
14
that the taxpayer is eligible to receive the exemption. Each 
15
application shall contain or be verified by a written 
16
declaration that it is made under the penalties of perjury. A 
17
taxpayer's signing a fraudulent application under this Act is 
18
perjury, as defined in Section 32-2 of the Criminal Code of 
19
1961.
The applications shall be clearly marked as applications 
20
for the Senior
Citizens and Disabled Persons Assessment Freeze 
21
Homestead Exemption and must contain a notice that any taxpayer 
22
who receives the exemption is subject to an audit by the Chief 
23
County Assessment Officer.

24
 Notwithstanding any other provision to the contrary, in 
25
counties having fewer
than 3,000,000 inhabitants, if an 
26
applicant fails
to file the application required by this 
 


 






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Section in a timely manner and this
failure to file is due to a 
2
mental or physical condition sufficiently severe so
as to 
3
render the applicant incapable of filing the application in a 
4
timely
manner, the Chief County Assessment Officer may extend 
5
the filing deadline for
a period of 30 days after the applicant 
6
regains the capability to file the
application, but in no case 
7
may the filing deadline be extended beyond 3
months of the 
8
original filing deadline. In order to receive the extension

9
provided in this paragraph, the applicant shall provide the 
10
Chief County
Assessment Officer with a signed statement from 
11
the applicant's physician
stating the nature and extent of the 
12
condition, that, in the
physician's opinion, the condition was 
13
so severe that it rendered the applicant
incapable of filing 
14
the application in a timely manner, and the date on which
the 
15
applicant regained the capability to file the application.

16
 Beginning January 1, 1998, notwithstanding any other 
17
provision to the
contrary, in counties having fewer than 
18
3,000,000 inhabitants, if an applicant
fails to file the 
19
application required by this Section in a timely manner and

20
this failure to file is due to a mental or physical condition 
21
sufficiently
severe so as to render the applicant incapable of 
22
filing the application in a
timely manner, the Chief County 
23
Assessment Officer may extend the filing
deadline for a period 
24
of 3 months. In order to receive the extension provided
in this 
25
paragraph, the applicant shall provide the Chief County 
26
Assessment
Officer with a signed statement from the applicant's 
 


 






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1
physician stating the
nature and extent of the condition, and 
2
that, in the physician's opinion, the
condition was so severe 
3
that it rendered the applicant incapable of filing the

4
application in a timely manner.

5
 In counties having less than 3,000,000 inhabitants, if an 
6
applicant was
denied an exemption in taxable year 1994 and the 
7
denial occurred due to an
error on the part of an assessment

8
official, or his or her agent or employee, then beginning in 
9
taxable year 1997
the
applicant's base year, for purposes of 
10
determining the amount of the exemption,
shall be 1993 rather 
11
than 1994. In addition, in taxable year 1997, the
applicant's 
12
exemption shall also include an amount equal to (i) the amount 
13
of
any exemption denied to the applicant in taxable year 1995 
14
as a result of using
1994, rather than 1993, as the base year, 
15
(ii) the amount of any exemption
denied to the applicant in 
16
taxable year 1996 as a result of using 1994, rather
than 1993, 
17
as the base year, and (iii) the amount of the exemption 
18
erroneously
denied for taxable year 1994.

19
 For purposes of this Section, a person who will be 65 years 
20
of age or is disabled during the
current taxable year shall be 
21
eligible to apply for the homestead exemption
during that 
22
taxable year. Application shall be made during the application

23
period in effect for the county of his or her residence. 

24
 The Chief County Assessment Officer may determine the 
25
eligibility of a life
care facility that qualifies as a 
26
cooperative to receive the benefits
provided by this Section by 
 


 






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1
use of an affidavit, application, visual
inspection, 
2
questionnaire, or other reasonable method in order to insure 
3
that
the tax savings resulting from the exemption are credited 
4
by the management
firm to the apportioned tax liability of each 
5
qualifying resident. The Chief
County Assessment Officer may 
6
request reasonable proof that the management firm
has so 
7
credited that exemption.

8
 Except as provided in this Section, all information 
9
received by the chief
county assessment officer or the 
10
Department from applications filed under this
Section, or from 
11
any investigation conducted under the provisions of this

12
Section, shall be confidential, except for official purposes or

13
pursuant to official procedures for collection of any State or 
14
local tax or
enforcement of any civil or criminal penalty or 
15
sanction imposed by this Act or
by any statute or ordinance 
16
imposing a State or local tax. Any person who
divulges any such 
17
information in any manner, except in accordance with a proper

18
judicial order, is guilty of a Class A misdemeanor.

19
 Nothing contained in this Section shall prevent the 
20
Director or chief county
assessment officer from publishing or 
21
making available reasonable statistics
concerning the 
22
operation of the exemption contained in this Section in which

23
the contents of claims are grouped into aggregates in such a 
24
way that
information contained in any individual claim shall 
25
not be disclosed.

26
 (d) Each Chief County Assessment Officer shall annually 
 


 






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1
publish a notice
of availability of the exemption provided 
2
under this Section. The notice
shall be published at least 60 
3
days but no more than 75 days prior to the date
on which the 
4
application must be submitted to the Chief County Assessment

5
Officer of the county in which the property is located. The 
6
notice shall
appear in a newspaper of general circulation in 
7
the county.

8
 Notwithstanding Sections 6 and 8 of the State Mandates Act, 
9
no reimbursement by the State is required for the 
10
implementation of any mandate created by this Section.

11
(Source: P.A. 94-794, eff. 5-22-06; 95-644, eff. 10-12-07.)




12
 Section 99. Effective date. This Act takes effect July 1, 
13