Bill Text: IL HB4639 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that taxpayers must reapply for the disabled persons' homestead exemption and the disabled veterans standard homestead exemption only if the chief county assessment officer requires an annual verification. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB4639 Detail]

Download: Illinois-2013-HB4639-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB4639 Introduced , by Rep. Joe Sosnowski SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-10
35 ILCS 200/15-168
35 ILCS 200/15-169
Amends the Property Tax Code. Provides that taxpayers must reapply for the disabled persons' homestead exemption and the disabled veterans standard homestead exemption only if the chief county assessment officer requires an annual verification. 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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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-10, 15-168, and 15-169 as follows:
(35 ILCS 200/15-10)
Sec. 15-10. Exempt property; procedures for certification.
(a) All property granted an exemption by the Department
pursuant to the requirements of Section 15-5 and described in
the Sections following Section 15-30 and preceding Section
16-5, to the extent therein limited, is exempt from taxation.
In order to maintain that exempt status, the titleholder or the
owner of the beneficial interest of any property that is exempt
must file with the chief county assessment officer, on or
before January 31 of each year (May 31 in the case of property
exempted by Section 15-170), an affidavit stating whether there
has been any change in the ownership or use of the property,
the status of the owner-resident, the satisfaction by a
relevant hospital entity of the condition for an exemption
under Section 15-86, or that a disabled veteran who qualifies
under Section 15-165 owned and used the property as of January
1 of that year. The nature of any change shall be stated in the
affidavit. Failure to file an affidavit shall, in the

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discretion of the assessment officer, constitute cause to
terminate the exemption of that property, notwithstanding any
other provision of this Code. Owners of 5 or more such exempt
parcels within a county may file a single annual affidavit in
lieu of an affidavit for each parcel. The assessment officer,
upon request, shall furnish an affidavit form to the owners, in
which the owner may state whether there has been any change in
the ownership or use of the property or status of the owner or
resident as of January 1 of that year. The owner of 5 or more
exempt parcels shall list all the properties giving the same
information for each parcel as required of owners who file
individual affidavits.
(b) However, titleholders or owners of the beneficial
interest in any property exempted under any of the following
provisions are not required to submit an annual filing under
this Section:
(1) Section 15-45 (burial grounds) in counties of less
than 3,000,000 inhabitants and owned by a not-for-profit
organization.
(2) Section 15-40.
(3) Section 15-50 (United States property).
(c) If there is a change in use or ownership, however,
notice must be filed pursuant to Section 15-20.
(d) An application for homestead exemptions shall be filed
as provided in Section 15-167 (returning veterans' homestead
exemption), Section 15-168 (disabled persons' homestead

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exemption), Section 15-169 (disabled veterans standard
homestead exemption), Section 15-170 (senior citizens
homestead exemption), Section 15-172 (senior citizens
assessment freeze homestead exemption), and Sections 15-175
(general homestead exemption), 15-176 (general alternative
homestead exemption), and 15-177 (long-time occupant homestead
exemption), respectively.
(e) For purposes of determining satisfaction of the
condition for an exemption under Section 15-86:
(1) The "year for which exemption is sought" is the
year prior to the year in which the affidavit is due.
(2) The "hospital year" is the fiscal year of the
relevant hospital entity, or the fiscal year of one of the
hospitals in the hospital system if the relevant hospital
entity is a hospital system with members with different
fiscal years, that ends in the year prior to the year in
which the affidavit is due. However, if that fiscal year
ends 3 months or less before the date on which the
affidavit is due, the relevant hospital entity shall file
an interim affidavit based on the currently available
information, and shall file a supplemental affidavit
within 90 days of date on which the application was due, if
the information in the relevant hospital entity's audited
financial statements changes the interim affidavit's
statement concerning the entity's compliance with the
calculation required by Section 15-86.

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(3) The affidavit shall be accompanied by an exhibit
prepared by the relevant hospital entity showing (A) the
value of the relevant hospital entity's services and
activities, if any, under items (1) through (7) of
subsection (e) of Section 15-86, stated separately for each
item, and (B) the value relating to the relevant hospital
entity's estimated property tax liability under paragraphs
(A), (B), and (C) of item (1) of subsection (g) of Section
15-86; under paragraphs (A), (B), and (C) of item (2) of
subsection (g) of Section 15-86; and under item (3) of
subsection (g) of Section 15-86.
(Source: P.A. 97-688, eff. 6-14-12.)
(35 ILCS 200/15-168)
Sec. 15-168. Disabled persons' homestead exemption.
(a) Beginning with taxable year 2007, an annual homestead
exemption is granted to disabled persons in the amount of
$2,000, except as provided in subsection (c), to be deducted
from the property's value as equalized or assessed by the
Department of Revenue. The disabled person shall receive the
homestead exemption upon meeting the following requirements:
(1) The property must be occupied as the primary
residence by the disabled person.
(2) The disabled person must be liable for paying the
real estate taxes on the property.
(3) The disabled person must be an owner of record of

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the property or have a legal or equitable interest in the
property as evidenced by a written instrument. In the case
of a leasehold interest in property, the lease must be for
a single family residence.
A person who is disabled during the taxable year is
eligible to apply for this homestead exemption during that
taxable year. Application must be made during the application
period in effect for the county of residence. If a homestead
exemption has been granted under this Section and the person
awarded the exemption subsequently becomes a resident of a
facility licensed under the Nursing Home Care Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
ID/DD Community Care Act, then the exemption shall continue (i)
so long as the residence continues to be occupied by the
qualifying person's spouse or (ii) if the residence remains
unoccupied but is still owned by the person qualified for the
homestead exemption.
(b) For the purposes of this Section, "disabled person"
means a person unable to engage in any substantial gainful
activity by reason of a medically determinable physical or
mental impairment which can be expected to result in death or
has lasted or can be expected to last for a continuous period
of not less than 12 months. Disabled persons filing claims
under this Act shall submit proof of disability in such form
and manner as the Department shall by rule and regulation
prescribe. Proof that a claimant is eligible to receive

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disability benefits under the Federal Social Security Act shall
constitute proof of disability for purposes of this Act.
Issuance of an Illinois Person with a Disability Identification
Card stating that the claimant is under a Class 2 disability,
as defined in Section 4A of the Illinois Identification Card
Act, shall constitute proof that the person named thereon is a
disabled person for purposes of this Act. A disabled person not
covered under the Federal Social Security Act and not
presenting an Illinois Person with a Disability Identification
Card stating that the claimant is under a Class 2 disability
shall be examined by a physician designated by the Department,
and his status as a disabled person determined using the same
standards as used by the Social Security Administration. The
costs of any required examination shall be borne by the
claimant.
(c) For land improved with (i) an apartment building owned
and operated as a cooperative or (ii) a life care facility as
defined under Section 2 of the Life Care Facilities Act that is
considered to be a cooperative, the maximum reduction from the
value of the property, as equalized or assessed by the
Department, shall be multiplied by the number of apartments or
units occupied by a disabled person. The disabled person shall
receive the homestead exemption upon meeting the following
requirements:
(1) The property must be occupied as the primary
residence by the disabled person.

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(2) The disabled person must be liable by contract with
the owner or owners of record for paying the apportioned
property taxes on the property of the cooperative or life
care facility. In the case of a life care facility, the
disabled person must be liable for paying the apportioned
property taxes under a life care contract as defined in
Section 2 of the Life Care Facilities Act.
(3) The disabled person must be an owner of record of a
legal or equitable interest in the cooperative apartment
building. A leasehold interest does not meet this
requirement.
If a homestead exemption is granted under this subsection, the
cooperative association or management firm shall credit the
savings resulting from the exemption to the apportioned tax
liability of the qualifying disabled person. The chief county
assessment officer may request reasonable proof that the
association or firm has properly credited the exemption. A
person who willfully refuses to credit an exemption to the
qualified disabled person is guilty of a Class B misdemeanor.
(d) The chief county assessment officer shall determine the
eligibility of property to receive the homestead exemption
according to guidelines established by the Department. If the
chief county assessment officer requires annual verification
of continued eligibility to receive the exemption After a
person has received an exemption under this Section, an annual
verification of eligibility for the exemption shall be mailed

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to the taxpayer.
In counties with fewer than 3,000,000 inhabitants, the
chief county assessment officer shall provide to each person
granted a homestead exemption under this Section a form to
designate any other person to receive a duplicate of any notice
of delinquency in the payment of taxes assessed and levied
under this Code on the person's qualifying property. The
duplicate notice shall be in addition to the notice required to
be provided to the person receiving the exemption and shall be
given in the manner required by this Code. The person filing
the request for the duplicate notice shall pay an
administrative fee of $5 to the chief county assessment
officer. The assessment officer shall then file the executed
designation with the county collector, who shall issue the
duplicate notices as indicated by the designation. A
designation may be rescinded by the disabled person in the
manner required by the chief county assessment officer.
(e) A taxpayer who claims an exemption under Section 15-165
or 15-169 may not claim an exemption under this Section.
(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
eff. 7-13-12; 97-1064, eff. 1-1-13; 98-104, eff. 7-22-13.)
(35 ILCS 200/15-169)
Sec. 15-169. Disabled veterans standard homestead
exemption.
(a) Beginning with taxable year 2007, an annual homestead

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exemption, limited to the amounts set forth in subsection (b),
is granted for property that is used as a qualified residence
by a disabled veteran.
(b) The amount of the exemption under this Section is as
follows:
(1) for veterans with a service-connected disability
of at least (i) 75% for exemptions granted in taxable years
2007 through 2009 and (ii) 70% for exemptions granted in
taxable year 2010 and each taxable year thereafter, as
certified by the United States Department of Veterans
Affairs, the annual exemption is $5,000; and
(2) for veterans with a service-connected disability
of at least 50%, but less than (i) 75% for exemptions
granted in taxable years 2007 through 2009 and (ii) 70% for
exemptions granted in taxable year 2010 and each taxable
year thereafter, as certified by the United States
Department of Veterans Affairs, the annual exemption is
$2,500.
(b-5) If a homestead exemption is granted under this
Section and the person awarded the exemption subsequently
becomes a resident of a facility licensed under the Nursing
Home Care Act or a facility operated by the United States
Department of Veterans Affairs, then the exemption shall
continue (i) so long as the residence continues to be occupied
by the qualifying person's spouse or (ii) if the residence
remains unoccupied but is still owned by the person who

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qualified for the homestead exemption.
(c) The tax exemption under this Section carries over to
the benefit of the veteran's surviving spouse as long as the
spouse holds the legal or beneficial title to the homestead,
permanently resides thereon, and does not remarry. If the
surviving spouse sells the property, an exemption not to exceed
the amount granted from the most recent ad valorem tax roll may
be transferred to his or her new residence as long as it is
used as his or her primary residence and he or she does not
remarry.
(d) The exemption under this Section applies for taxable
year 2007 and thereafter. A taxpayer who claims an exemption
under Section 15-165 or 15-168 may not claim an exemption under
this Section.
(e) Each taxpayer who has been granted an exemption under
this Section must reapply on an annual basis. Application must
be made during the application period in effect for the county
of his or her residence. The assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption
provided by this Section by application, visual inspection,
questionnaire, or other reasonable methods. The determination
must be made in accordance with guidelines established by the
Department. If the chief county assessment officer requires
annual verification of continued eligibility to receive the
exemption, an annual verification of eligibility for the

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exemption shall be mailed to the taxpayer.
(f) For the purposes of this Section:
"Qualified residence" means real property, but less any
portion of that property that is used for commercial purposes,
with an equalized assessed value of less than $250,000 that is
the disabled veteran's primary residence. Property rented for
more than 6 months is presumed to be used for commercial
purposes.
"Veteran" means an Illinois resident who has served as a
member of the United States Armed Forces on active duty or
State active duty, a member of the Illinois National Guard, or
a member of the United States Reserve Forces and who has
received an honorable discharge.
(Source: P.A. 96-1298, eff. 1-1-11; 96-1418, eff. 8-2-10;
97-333, eff. 8-12-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.