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


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


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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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
5Sections 15-10, 15-168, and 15-169 as follows:
6 (35 ILCS 200/15-10)
7 Sec. 15-10. Exempt property; procedures for certification.
8 (a) All property granted an exemption by the Department
9pursuant to the requirements of Section 15-5 and described in
10the Sections following Section 15-30 and preceding Section
1116-5, to the extent therein limited, is exempt from taxation.
12In order to maintain that exempt status, the titleholder or the
13owner of the beneficial interest of any property that is exempt
14must file with the chief county assessment officer, on or
15before January 31 of each year (May 31 in the case of property
16exempted by Section 15-170), an affidavit stating whether there
17has been any change in the ownership or use of the property,
18the status of the owner-resident, the satisfaction by a
19relevant hospital entity of the condition for an exemption
20under Section 15-86, or that a disabled veteran who qualifies
21under Section 15-165 owned and used the property as of January
221 of that year. The nature of any change shall be stated in the
23affidavit. Failure to file an affidavit shall, in the

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1discretion of the assessment officer, constitute cause to
2terminate the exemption of that property, notwithstanding any
3other provision of this Code. Owners of 5 or more such exempt
4parcels within a county may file a single annual affidavit in
5lieu of an affidavit for each parcel. The assessment officer,
6upon request, shall furnish an affidavit form to the owners, in
7which the owner may state whether there has been any change in
8the ownership or use of the property or status of the owner or
9resident as of January 1 of that year. The owner of 5 or more
10exempt parcels shall list all the properties giving the same
11information for each parcel as required of owners who file
12individual affidavits.
13 (b) However, titleholders or owners of the beneficial
14interest in any property exempted under any of the following
15provisions are not required to submit an annual filing under
16this Section:
17 (1) Section 15-45 (burial grounds) in counties of less
18 than 3,000,000 inhabitants and owned by a not-for-profit
19 organization.
20 (2) Section 15-40.
21 (3) Section 15-50 (United States property).
22 (c) If there is a change in use or ownership, however,
23notice must be filed pursuant to Section 15-20.
24 (d) An application for homestead exemptions shall be filed
25as provided in Section 15-167 (returning veterans' homestead
26exemption), Section 15-168 (disabled persons' homestead

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1exemption), Section 15-169 (disabled veterans standard
2homestead exemption), Section 15-170 (senior citizens
3homestead exemption), Section 15-172 (senior citizens
4assessment freeze homestead exemption), and Sections 15-175
5(general homestead exemption), 15-176 (general alternative
6homestead exemption), and 15-177 (long-time occupant homestead
7exemption), respectively.
8 (e) For purposes of determining satisfaction of the
9condition for an exemption under Section 15-86:
10 (1) The "year for which exemption is sought" is the
11 year prior to the year in which the affidavit is due.
12 (2) The "hospital year" is the fiscal year of the
13 relevant hospital entity, or the fiscal year of one of the
14 hospitals in the hospital system if the relevant hospital
15 entity is a hospital system with members with different
16 fiscal years, that ends in the year prior to the year in
17 which the affidavit is due. However, if that fiscal year
18 ends 3 months or less before the date on which the
19 affidavit is due, the relevant hospital entity shall file
20 an interim affidavit based on the currently available
21 information, and shall file a supplemental affidavit
22 within 90 days of date on which the application was due, if
23 the information in the relevant hospital entity's audited
24 financial statements changes the interim affidavit's
25 statement concerning the entity's compliance with the
26 calculation required by Section 15-86.

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1 (3) The affidavit shall be accompanied by an exhibit
2 prepared by the relevant hospital entity showing (A) the
3 value of the relevant hospital entity's services and
4 activities, if any, under items (1) through (7) of
5 subsection (e) of Section 15-86, stated separately for each
6 item, and (B) the value relating to the relevant hospital
7 entity's estimated property tax liability under paragraphs
8 (A), (B), and (C) of item (1) of subsection (g) of Section
9 15-86; under paragraphs (A), (B), and (C) of item (2) of
10 subsection (g) of Section 15-86; and under item (3) of
11 subsection (g) of Section 15-86.
12(Source: P.A. 97-688, eff. 6-14-12.)
13 (35 ILCS 200/15-168)
14 Sec. 15-168. Disabled persons' homestead exemption.
15 (a) Beginning with taxable year 2007, an annual homestead
16exemption is granted to disabled persons in the amount of
17$2,000, except as provided in subsection (c), to be deducted
18from the property's value as equalized or assessed by the
19Department of Revenue. The disabled person shall receive the
20homestead exemption upon meeting the following requirements:
21 (1) The property must be occupied as the primary
22 residence by the disabled person.
23 (2) The disabled person must be liable for paying the
24 real estate taxes on the property.
25 (3) The disabled person must be an owner of record of

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1 the property or have a legal or equitable interest in the
2 property as evidenced by a written instrument. In the case
3 of a leasehold interest in property, the lease must be for
4 a single family residence.
5 A person who is disabled during the taxable year is
6eligible to apply for this homestead exemption during that
7taxable year. Application must be made during the application
8period in effect for the county of residence. If a homestead
9exemption has been granted under this Section and the person
10awarded the exemption subsequently becomes a resident of a
11facility licensed under the Nursing Home Care Act, the
12Specialized Mental Health Rehabilitation Act of 2013, or the
13ID/DD Community Care Act, then the exemption shall continue (i)
14so long as the residence continues to be occupied by the
15qualifying person's spouse or (ii) if the residence remains
16unoccupied but is still owned by the person qualified for the
17homestead exemption.
18 (b) For the purposes of this Section, "disabled person"
19means a person unable to engage in any substantial gainful
20activity by reason of a medically determinable physical or
21mental impairment which can be expected to result in death or
22has lasted or can be expected to last for a continuous period
23of not less than 12 months. Disabled persons filing claims
24under this Act shall submit proof of disability in such form
25and manner as the Department shall by rule and regulation
26prescribe. Proof that a claimant is eligible to receive

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1disability benefits under the Federal Social Security Act shall
2constitute proof of disability for purposes of this Act.
3Issuance of an Illinois Person with a Disability Identification
4Card stating that the claimant is under a Class 2 disability,
5as defined in Section 4A of the Illinois Identification Card
6Act, shall constitute proof that the person named thereon is a
7disabled person for purposes of this Act. A disabled person not
8covered under the Federal Social Security Act and not
9presenting an Illinois Person with a Disability Identification
10Card stating that the claimant is under a Class 2 disability
11shall be examined by a physician designated by the Department,
12and his status as a disabled person determined using the same
13standards as used by the Social Security Administration. The
14costs of any required examination shall be borne by the
15claimant.
16 (c) For land improved with (i) an apartment building owned
17and operated as a cooperative or (ii) a life care facility as
18defined under Section 2 of the Life Care Facilities Act that is
19considered to be a cooperative, the maximum reduction from the
20value of the property, as equalized or assessed by the
21Department, shall be multiplied by the number of apartments or
22units occupied by a disabled person. The disabled person shall
23receive the homestead exemption upon meeting the following
24requirements:
25 (1) The property must be occupied as the primary
26 residence by the disabled person.

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1 (2) The disabled person must be liable by contract with
2 the owner or owners of record for paying the apportioned
3 property taxes on the property of the cooperative or life
4 care facility. In the case of a life care facility, the
5 disabled person must be liable for paying the apportioned
6 property taxes under a life care contract as defined in
7 Section 2 of the Life Care Facilities Act.
8 (3) The disabled person must be an owner of record of a
9 legal or equitable interest in the cooperative apartment
10 building. A leasehold interest does not meet this
11 requirement.
12If a homestead exemption is granted under this subsection, the
13cooperative association or management firm shall credit the
14savings resulting from the exemption to the apportioned tax
15liability of the qualifying disabled person. The chief county
16assessment officer may request reasonable proof that the
17association or firm has properly credited the exemption. A
18person who willfully refuses to credit an exemption to the
19qualified disabled person is guilty of a Class B misdemeanor.
20 (d) The chief county assessment officer shall determine the
21eligibility of property to receive the homestead exemption
22according to guidelines established by the Department. If the
23chief county assessment officer requires annual verification
24of continued eligibility to receive the exemption After a
25person has received an exemption under this Section, an annual
26verification of eligibility for the exemption shall be mailed

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1to the taxpayer.
2 In counties with fewer than 3,000,000 inhabitants, the
3chief county assessment officer shall provide to each person
4granted a homestead exemption under this Section a form to
5designate any other person to receive a duplicate of any notice
6of delinquency in the payment of taxes assessed and levied
7under this Code on the person's qualifying property. The
8duplicate notice shall be in addition to the notice required to
9be provided to the person receiving the exemption and shall be
10given in the manner required by this Code. The person filing
11the request for the duplicate notice shall pay an
12administrative fee of $5 to the chief county assessment
13officer. The assessment officer shall then file the executed
14designation with the county collector, who shall issue the
15duplicate notices as indicated by the designation. A
16designation may be rescinded by the disabled person in the
17manner required by the chief county assessment officer.
18 (e) A taxpayer who claims an exemption under Section 15-165
19or 15-169 may not claim an exemption under this Section.
20(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
21eff. 7-13-12; 97-1064, eff. 1-1-13; 98-104, eff. 7-22-13.)
22 (35 ILCS 200/15-169)
23 Sec. 15-169. Disabled veterans standard homestead
24exemption.
25 (a) Beginning with taxable year 2007, an annual homestead

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1exemption, limited to the amounts set forth in subsection (b),
2is granted for property that is used as a qualified residence
3by a disabled veteran.
4 (b) The amount of the exemption under this Section is as
5follows:
6 (1) for veterans with a service-connected disability
7 of at least (i) 75% for exemptions granted in taxable years
8 2007 through 2009 and (ii) 70% for exemptions granted in
9 taxable year 2010 and each taxable year thereafter, as
10 certified by the United States Department of Veterans
11 Affairs, the annual exemption is $5,000; and
12 (2) for veterans with a service-connected disability
13 of at least 50%, but less than (i) 75% for exemptions
14 granted in taxable years 2007 through 2009 and (ii) 70% for
15 exemptions granted in taxable year 2010 and each taxable
16 year thereafter, as certified by the United States
17 Department of Veterans Affairs, the annual exemption is
18 $2,500.
19 (b-5) If a homestead exemption is granted under this
20Section and the person awarded the exemption subsequently
21becomes a resident of a facility licensed under the Nursing
22Home Care Act or a facility operated by the United States
23Department of Veterans Affairs, then the exemption shall
24continue (i) so long as the residence continues to be occupied
25by the qualifying person's spouse or (ii) if the residence
26remains unoccupied but is still owned by the person who

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1qualified for the homestead exemption.
2 (c) The tax exemption under this Section carries over to
3the benefit of the veteran's surviving spouse as long as the
4spouse holds the legal or beneficial title to the homestead,
5permanently resides thereon, and does not remarry. If the
6surviving spouse sells the property, an exemption not to exceed
7the amount granted from the most recent ad valorem tax roll may
8be transferred to his or her new residence as long as it is
9used as his or her primary residence and he or she does not
10remarry.
11 (d) The exemption under this Section applies for taxable
12year 2007 and thereafter. A taxpayer who claims an exemption
13under Section 15-165 or 15-168 may not claim an exemption under
14this Section.
15 (e) Each taxpayer who has been granted an exemption under
16this Section must reapply on an annual basis. Application must
17be made during the application period in effect for the county
18of his or her residence. The assessor or chief county
19assessment officer may determine the eligibility of
20residential property to receive the homestead exemption
21provided by this Section by application, visual inspection,
22questionnaire, or other reasonable methods. The determination
23must be made in accordance with guidelines established by the
24Department. If the chief county assessment officer requires
25annual verification of continued eligibility to receive the
26exemption, an annual verification of eligibility for the

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1exemption shall be mailed to the taxpayer.
2 (f) For the purposes of this Section:
3 "Qualified residence" means real property, but less any
4portion of that property that is used for commercial purposes,
5with an equalized assessed value of less than $250,000 that is
6the disabled veteran's primary residence. Property rented for
7more than 6 months is presumed to be used for commercial
8purposes.
9 "Veteran" means an Illinois resident who has served as a
10member of the United States Armed Forces on active duty or
11State active duty, a member of the Illinois National Guard, or
12a member of the United States Reserve Forces and who has
13received an honorable discharge.
14(Source: P.A. 96-1298, eff. 1-1-11; 96-1418, eff. 8-2-10;
1597-333, eff. 8-12-11.)
16 Section 99. Effective date. This Act takes effect upon
17becoming law.
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