Bill
SB 3217
Implements an income-based property tax freeze for low‑income seniors, using base-year value rules to cap or offset taxes on their residence.
SB 3217 (104th General Assembly) — Illinois
Title: PROP TX-SENIOR FREEZE
Summary purpose
- Create and codify a Low-Income Senior Citizens Assessment Freeze Homestead Exemption in the Property Tax Code, replacing the prior framework with detailed eligibility rules, base-year mechanics, and income limits. The measure aims to freeze the assessed value (and thus property tax burden) for eligible low-income seniors, subject to annual income tests and base-year calculations.
Key provisions and changes
- Section name and scope
- Establishes the Low-Income Senior Citizens Assessment Freeze Homestead Exemption (Section 15-172 of the Property Tax Code).
- Definitions (core concepts)
- Applicant, Base amount, Base year, Chief County Assessment Officer, Consumer Price Index-u (CPI-u), Equalized assessed value, Household, Household income, Income (with an exclusion for veteran’s benefits beginning in 2001), Internal Revenue Code references, Life care facility that qualifies as a cooperative, Maximum income limitation, Residence, Taxable year.
- Eligibility and base-year rules
- Applicants must be 65+ during the taxable year, have household income within defined maximums, be liable for real property taxes, and hold a qualifying ownership or leasehold interest in the residence.
- Base year is the year prior to qualification, with special rules to adjust base year if property value changes or to select the lowest base year in certain years (notably 1999 rules to pick the lowest equalized value). These rules are highly technical and meant to ensure the base year reflects the lowest qualifying value under specified circumstances.
- For 1997 and later, the exemption can apply to a single-family residence and certain leasehold interests in cooperatives or life care facilities.
- Maximum income limitation and annual updates
- A tiered, year-by-year maximum income limitation governs eligibility. Examples:
- 1999: $35,000 (general)
- 1999–2003: $40,000
- 2004–2005: $45,000
- 2006–2007: $50,000
- 2008–2016: $55,000
- 2017: $65,000 (in counties with 3+ million people) or $55,000 (in other counties)
- 2018–2025: $65,000
- 2026: $75,000
- 2027: $77,000
- 2028 onward: $79,000, adjusted for CPI-u beginning in 2029.
- An alternative income test allows certain programs (AABD, SNAP, LIHEAP, Benefit Access, Senior Citizens Real Estate Tax Deferral) to presume income does not exceed the limit.
- Calculation of the exemption (how much tax relief)
- In counties with 3,000,000+ inhabitants: the exemption equals the equalized assessed value (EAV) of the residence for the year of application minus the base amount.
- In counties with fewer than 3,000,000 inhabitants:
- Through 2005 and for 2007 onward: same formula as above (EAV minus base amount).
- 2006: graduated reductions based on income bands (0–4 steps from full minus base, down to multiplying by 0.2 for the highest band).
- For surviving spouses or certain life-care cooperatives, the base year mechanics and crediting rules apply similarly, with protections to ensure proper crediting to the qualifying owner.
- For 2017+ in large counties (3M+), the exemption is the greater of the calculated amount or $2,000.
- Cooperative and life-care facility adjustments
- For cooperative-apartment land, the maximum reduction is limited to the sum of per-unit reductions for qualifying residents.
- Cooperative management must credit the savings to the owner’s apportioned tax liability, with penalties for non-compliance (Class B misdemeanor).
- Post-qualification continuity
- If a qualifying resident moves to certain licensed facilities, exemption can continue so long as the residence remains eligible (spouse occupancy or ownership continues).
- Application and confidentiality
- Annual notice of exemption availability must be published 60–75 days before the application window.
- Specifics of the application: disclosure of total household income, age, marital status, spouse information, and principal dwelling.
- Eligible applicants may be audited; affidavits must be sworn under perjury.
- Some income-eligibility data may be treated as confidential; reports may be aggregated to protect privacy.
- Administrative and transition provisions
- The Chief County Assessment Officer may extend filing deadlines in certain disability situations (with physician verification), with caps on extension duration.
- For disaster-related periods (COVID-19 context in c-5 and c-10 amendments), automatic approvals without new application may be allowed for 2020 and 2021 under specific conditions.
- Section requires publication by the Department and CCAs of rules and verification methods.
- Effective date
- The act becomes law upon enactment.
Who is affected
- Eligible seniors (65+), their households, and their property tax bills, particularly those in residence and meeting income limits.
- Counties (CCAs and Assessors), who administer base-year determinations, income verifications, and exemption processing.
- Cooperative apartment buildings and life-care facilities with qualifying residents, including management firms responsible for crediting tax savings.
- Local and state agencies involved in tax administration and information privacy (due to confidentiality requirements).
Procedural/timeline notes
- The bill specifies annual application periods (notice 60–75 days prior, with county-specific submission windows, e.g., July 1 in some counties).
- Rules and verification methods to be established by the Department and Chief County Assessment Officers.
- Several transitional provisions address extensions and disaster-related exemptions (c-5, c-10) for pandemic-related conditions 2020–2021.
- Effective date: immediate upon becoming law.
Overall impact
- Intended to provide targeted, income-based property tax relief to low-income seniors via a freeze/offset mechanism, with a mix of fixed and income-adjusted reductions, dynamic base-year rules, and programmatic safeguards to ensure proper administration and privacy.
Compiled from official sources — confirm details with the bill’s official record.
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