Illinois 2023-2024 Regular Session

Illinois House Bill HB3541 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3541 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-172.1 new Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately. LRB103 29742 HLH 56148 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3541 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-172.1 new 35 ILCS 200/15-172.1 new Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately. LRB103 29742 HLH 56148 b LRB103 29742 HLH 56148 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3541 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/15-172.1 new 35 ILCS 200/15-172.1 new
4	4	35 ILCS 200/15-172.1 new
5	5	Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately.
6	6	LRB103 29742 HLH 56148 b LRB103 29742 HLH 56148 b
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8	8	A BILL FOR
9	9	HB3541LRB103 29742 HLH 56148 b HB3541 LRB103 29742 HLH 56148 b
10	10	HB3541 LRB103 29742 HLH 56148 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Property Tax Code is amended by adding
15	15	5 Section 15-172.1 as follows:
16	16	6 (35 ILCS 200/15-172.1 new)
17	17	7 Sec. 15-172.1. Senior Citizens Homestead Exemption School
18	18	8 Levy Cap.
19	19	9 (a) This Section may be cited as the Senior Citizens
20	20	10 Homestead Exemption School Levy Cap.
21	21	11 (b) As used in this Section:
22	22	12 "Applicant" means an individual who has filed an
23	23	13 application under this Section.
24	24	14 "Base year" means the taxable year for which the applicant
25	25	15 first qualifies and applies for the exemption, provided that,
26	26	16 in the prior taxable year, the property was improved with a
27	27	17 permanent structure that was occupied as the primary residence
28	28	18 by an applicant who was liable for paying real property taxes
29	29	19 on the property and who was either (i) an owner of record of
30	30	20 the property or had legal or equitable interest in the
31	31	21 property as evidenced by a written instrument or (ii) had a
32	32	22 legal or equitable interest as a lessee in the parcel of
33	33	23 property that was an single-family residence and that lease
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3541 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 200/15-172.1 new 35 ILCS 200/15-172.1 new
39	39	35 ILCS 200/15-172.1 new
40	40	Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately.
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43	43	A BILL FOR
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68	68	1 obligates the lessee to pay property taxes on the parcel.
69	69	2 "Base year applicable K-12 school salary levy" means the
70	70	3 aggregate tax levy share applied to the property in the base
71	71	4 year pursuant to Section 17-2 of the School Code that derives
72	72	5 from: (i) faculty salaries and benefits; (ii) administrator
73	73	6 salaries and benefits; and (iii) classified staff salaries and
74	74	7 benefits.
75	75	8 "Retirement age base amount" means the base year equalized
76	76	9 assessed value of a residence as of the year the first
77	77	10 homeowner of the residence, who has resided in the residence
78	78	11 as a primary residence for a period of at least 5 years, turns
79	79	12 age 65.
80	80	13 "Chief county assessment officer" means the County
81	81	14 Assessor or Supervisor of Assessments of the county in which
82	82	15 the property is located.
83	83	16 "Equalized assessed value" means the assessed value as
84	84	17 equalized by the Department of Revenue.
85	85	18 "Household" means the applicant, the spouse of the
86	86	19 applicant, and all persons using the residence of the
87	87	20 applicant as their principal place of residence.
88	88	21 "Household income" means the combined income of the
89	89	22 members of a household for the calendar year preceding the
90	90	23 taxable year.
91	91	24 "Income" has the same meaning as provided in Section 3.07
92	92	25 of the Senior Citizens and Persons with Disabilities Property
93	93	26 Tax Relief Act, except that "income" does not include
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104	104	1 veteran's benefits.
105	105	2 "Incremental K-12 school salary levy" means for any year
106	106	3 subsequent to the base year, the aggregate tax levy share
107	107	4 applied to the property pursuant to Section 17-2 that derives
108	108	5 from: (i) faculty salaries and benefits; (ii) administrator
109	109	6 salaries and benefits; and (iii) classified staff salaries and
110	110	7 benefits, which exceeds the base year applicable K-12 school
111	111	8 salary levy.
112	112	9 "Incremental K-12 school salary levy exemption amount"
113	113	10 means the incremental K-12 school salary levy exemption
114	114	11 calculated for that tax year.
115	115	12 "Internal Revenue Code of 1986" means the United States
116	116	13 Internal Revenue Code of 1986 or any successor law or laws
117	117	14 relating to federal income taxes in effect for the year
118	118	15 preceding the taxable year.
119	119	16 "Life care facility that qualifies as a cooperative" means
120	120	17 a facility as defined in Section 2 of the Life Care Facilities
121	121	18 Act.
122	122	19 "Maximum income limitation" means for taxable years 2023
123	123	20 and thereafter, $100,000 per year, indexed to annual inflation
124	124	21 rates, or 2%, whichever is less per year.
125	125	22 "Residence" means the principal dwelling place and
126	126	23 appurtenant structures used for residential purposes in this
127	127	24 State occupied on January 1 of the taxable year by a household
128	128	25 and so much of the surrounding land, constituting the parcel
129	129	26 upon which the dwelling place is situated, as is used for
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140	140	1 residential purposes. If the chief county assessment officer
141	141	2 has established a specific legal description for a portion of
142	142	3 property constituting the residence, then that portion of
143	143	4 property shall be deemed the residence for the purposes of
144	144	5 this Section.
145	145	6 "Taxable year" means the calendar year during which ad
146	146	7 valorem property taxes payable in the next succeeding year are
147	147	8 levied.
148	148	9 (c) Beginning in taxable year 2023, a senior citizens
149	149	10 homestead school levy exemption is granted for real property
150	150	11 that is improved with a permanent structure that is occupied
151	151	12 as the primary residence by an applicant who (i) is 65 years of
152	152	13 age or older during the taxable year, (ii) has a household
153	153	14 income that does not exceed the maximum income limitation,
154	154	15 (iii) is liable for paying real property taxes on the
155	155	16 property, (iv) is an owner of record of the property or has a
156	156	17 legal or equitable interest in the property as evidenced by a
157	157	18 written instrument, if no individual residing at the real
158	158	19 property is or will be enrolled in a tax levying body eligible
159	159	20 to place a levy on the property pursuant to Section 17-2 of the
160	160	21 School Code. This homestead school levy exemption shall also
161	161	22 apply to a leasehold interest in a parcel of property improved
162	162	23 with a permanent structure that is a single family residence
163	163	24 that is occupied as a residence by a person who: (i) is 65
164	164	25 years of age or older during the taxable year; (ii) has a
165	165	26 household income that does not exceed the maximum income
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176	176	1 limitation; (iii) has a legal or equitable ownership interest
177	177	2 in the property as lessee; and (iv) is liable for the payment
178	178	3 of real property taxes on that property.
179	179	4 (d) In counties of 3,000,000 or more inhabitants, the
180	180	5 amount of the exemption for all taxable years for qualifying
181	181	6 residents is the incremental K-12 school salary levy exemption
182	182	7 amount, which may be reduced by an amount not to exceed the
183	183	8 percentage change in the Consumer Price Index for All Urban
184	184	9 Consumers for that year. In all other counties, the amount of
185	185	10 the exemption for qualifying residents is the Incremental K-12
186	186	11 school salary levy exemption amount, provided that the
187	187	12 Incremental K-12 school salary levy exemption amount may be
188	188	13 reduced by 1% per year, provided that the total Incremental
189	189	14 K-12 school salary levy does not exceed 2% of the fair market
190	190	15 value of the property.
191	191	16 When the applicant is a surviving spouse of an applicant
192	192	17 for a prior year for the same residence for which an exemption
193	193	18 under this Section has been granted, the exemption shall still
194	194	19 apply provided that no individual residing at the real
195	195	20 property is or will be enrolled in a tax levying body eligible
196	196	21 to place a levy on the property pursuant to Section 17-2 of the
197	197	22 School Code.
198	198	23 Each year at the time the assessment books are certified
199	199	24 to the county clerk, the board of review shall give to the
200	200	25 county clerk a list of the assessed values of improvements on
201	201	26 each parcel qualifying for this exemption that were added
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212	212	1 after the base year for this parcel and that increased the
213	213	2 assessed value of the property. In the case of land improved
214	214	3 with an apartment building owned and operated as a cooperative
215	215	4 or a building that is a life care facility that qualifies as a
216	216	5 cooperative, the maximum reduction from the equalized assessed
217	217	6 value of the property is limited to the sum of the reductions
218	218	7 calculated for each unit occupied as a residence by a person or
219	219	8 persons (i) 65 years of age or older, (ii) with a household
220	220	9 income that does not exceed the maximum income limitation,
221	221	10 (iii) who is liable, by contract with the owner or owners of
222	222	11 record, for paying real property taxes on the property, and
223	223	12 (iv) who is an owner of record of a legal or equitable interest
224	224	13 in the cooperative apartment building, other than a leasehold
225	225	14 interest, provided that no individual residing at the real
226	226	15 property is or will be enrolled in a tax levying body eligible
227	227	16 to place a levy on the property pursuant to Section 17-2 of the
228	228	17 School Code. In the instance of a cooperative where a
229	229	18 homestead exemption has been granted under this Section, the
230	230	19 cooperative association or its management firm shall credit
231	231	20 the savings resulting from that exemption only to the
232	232	21 apportioned tax liability of the owner who qualified for the
233	233	22 exemption. Any person who willfully refuses to credit that
234	234	23 savings to an owner who qualifies for the exemption is guilty
235	235	24 of a Class B misdemeanor. When a homestead exemption has been
236	236	25 granted under this Section and an applicant then becomes a
237	237	26 resident of a facility licensed under the Assisted Living and
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248	248	1 Shared Housing Act, the Nursing Home Care Act, the Specialized
249	249	2 Mental Health Rehabilitation Act of 2013, the ID/DD Community
250	250	3 Care Act, or the MC/DD Act, the exemption shall be granted in
251	251	4 subsequent years so long as the residence (i) continues to be
252	252	5 occupied by the qualified applicant's spouse or (ii) if
253	253	6 remaining unoccupied, is still owned by the qualified
254	254	7 applicant for the homestead exemption, and no individual
255	255	8 residing at the real property is or will be enrolled in a tax
256	256	9 levying body eligible to place a levy on the property pursuant
257	257	10 to Section 17-2 of the School Code.
258	258	11 When married persons maintain separate residences, the
259	259	12 exemption provided for in this Section may be claimed by only
260	260	13 one of such persons and for only one residence, and provided
261	261	14 that no individual residing at the real property is or will be
262	262	15 enrolled in a tax levying body eligible to place a levy on the
263	263	16 property pursuant to Section 17-2 of the School Code. For
264	264	17 taxable year 2024, in counties having less than 3,000,000
265	265	18 inhabitants, to receive the exemption, a person shall submit
266	266	19 an application by February 15, 2024 to the chief county
267	267	20 assessment officer of the county in which the property is
268	268	21 located. In counties having 3,000,000 or more inhabitants, for
269	269	22 taxable year 2024 and all subsequent taxable years, to receive
270	270	23 the exemption, a person may submit an application to the Chief
271	271	24 County Assessment Officer of the county in which the property
272	272	25 is located during such period as may be specified by the Chief
273	273	26 County Assessment officer. The Chief County Assessment Officer
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284	284	1 in counties of 3,000,000 or more inhabitants shall annually
285	285	2 give notice of the application period by mail or by
286	286	3 publication. In counties having less than 3,000,000
287	287	4 inhabitants, beginning with taxable year 2024 and thereafter,
288	288	5 a county may, by ordinance, establish a date for submission of
289	289	6 applications that is different than February 15. The applicant
290	290	7 shall submit with the application an affidavit of the
291	291	8 applicant's total household income, age, marital status (and
292	292	9 if married the name and address of the applicant's spouse, if
293	293	10 known), confirmation that no individual residing at the real
294	294	11 property is or will be enrolled in a tax levying body eligible
295	295	12 to place a levy on the property pursuant to Section 17-2 of the
296	296	13 School Code for the full taxable year, and principal dwelling
297	297	14 place of members of the household on January 1 of the taxable
298	298	15 year. The Department shall establish, by rule, a method for
299	299	16 verifying the accuracy of affidavits filed by applicants under
300	300	17 this Section, and the chief county assessment officer may
301	301	18 conduct audits of any taxpayer claiming an exemption under
302	302	19 this Section to verify that the taxpayer is eligible to
303	303	20 receive the exemption. Each application shall contain or be
304	304	21 verified by a written declaration that it is made under the
305	305	22 penalties of perjury. A taxpayer's signing a fraudulent
306	306	23 application under this Act is perjury, as defined in Section
307	307	24 32-2 of the Criminal Code of 2012. The applications shall be
308	308	25 clearly marked as applications for the Senior Citizens
309	309	26 Homestead Exemption School Levy Cap and must contain a notice
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320	320	1 that any taxpayer who receives the exemption is subject to an
321	321	2 audit by the Chief County Assessment Officer.
322	322	3 Beginning January 1, 2024, notwithstanding any other
323	323	4 provision to the contrary, in counties having fewer than
324	324	5 3,000,000 inhabitants, if an applicant fails to file the
325	325	6 application required by this Section in a timely manner and
326	326	7 this failure to file is due to a mental or physical condition
327	327	8 sufficiently severe so as to render the applicant incapable of
328	328	9 filing the application in a timely manner, the chief county
329	329	10 assessment officer may extend the filing deadline for a period
330	330	11 of 3 months. In order to receive the extension provided in this
331	331	12 paragraph, the applicant shall provide the chief county
332	332	13 assessment officer with a signed statement from the
333	333	14 applicant's physician, advanced practice registered nurse, or
334	334	15 physician assistant stating the nature and extent of the
335	335	16 condition, and that, in the physician's, advanced practice
336	336	17 registered nurse's, or physician assistant's opinion, the
337	337	18 condition was so severe that it rendered the applicant
338	338	19 incapable of filing the application in a timely manner.
339	339	20 For purposes of this Section, a person who will be 65 years
340	340	21 of age during the current taxable year shall be eligible to
341	341	22 apply for the Senior Citizens Homestead Exemption School Levy
342	342	23 Cap during that taxable year. Application shall be made during
343	343	24 the application period in effect for the county of his or her
344	344	25 residence.
345	345	26 The chief county assessment officer may determine the
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356	356	1 eligibility of a life care facility that qualifies as a
357	357	2 cooperative to receive the benefits provided by this Section
358	358	3 by use of an affidavit, application, visual inspection,
359	359	4 questionnaire, or other reasonable method in order to ensure
360	360	5 that the tax savings resulting from the exemption are credited
361	361	6 by the management firm to the apportioned tax liability of
362	362	7 each qualifying resident. The chief county assessment officer
363	363	8 may request reasonable proof that the management firm has so
364	364	9 credited that exemption. Except as provided in this Section,
365	365	10 all information received by the chief county assessment
366	366	11 officer or the Department from applications filed under this
367	367	12 Section, or from any investigation conducted under the
368	368	13 provisions of this Section, shall be confidential, except for
369	369	14 official purposes or pursuant to official procedures for
370	370	15 collection of any State or local tax or enforcement of any
371	371	16 civil or criminal penalty or sanction imposed by this Act or by
372	372	17 any statute or ordinance imposing a State or local tax. Any
373	373	18 person who divulges any such information in any manner, except
374	374	19 in accordance with a proper judicial order, is guilty of a
375	375	20 class A misdemeanor. Nothing contained in this Section shall
376	376	21 prevent the Director or chief county assessment officer from
377	377	22 publishing or making available reasonable statistics
378	378	23 concerning the operation of the exemption contained in this
379	379	24 Section in which the contents of claims are grouped into
380	380	25 aggregates in such a way that information contained in any
381	381	26 individual claim shall not be disclosed.
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392	392	1 (e) Each chief county assessment officer shall annually
393	393	2 publish a notice of availability of the exemption provided
394	394	3 under this Section. The notice shall be published at least 60
395	395	4 days but no more than 75 days prior to the date on which the
396	396	5 application must be submitted to the chief county assessment
397	397	6 officer of the county in which the property is located. The
398	398	7 notice shall appear in a newspaper of general circulation in
399	399	8 the county.
400	400	9 Notwithstanding Sections 6 and 8 of the State Mandates
401	401	10 Act, no reimbursement by the State is required for the
402	402	11 implementation of any mandate created by this Section.
403	403	12 Section 99. Effective date. This Act takes effect upon
404	404	13 becoming law.
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