Full Text of HB0779 100th General Assembly
HB0779 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB0779 Introduced , by Rep. Michelle Mussman SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Creates an assessment freeze homestead exemption for persons receiving federal Supplemental Security Income. 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by adding | 5 | | Section 15-172.5 as follows: | 6 | | (35 ILCS 200/15-172.5 new) | 7 | | Sec. 15-172.5. Assessment Freeze Homestead Exemption for | 8 | | persons receiving Supplemental Security Income. | 9 | | (a) This Section may be cited as the Assessment Freeze | 10 | | Homestead Exemption for persons receiving Supplemental | 11 | | Security Income. | 12 | | (b) As used in this Section: | 13 | | "Applicant" means an individual who has filed an | 14 | | application under this Section. | 15 | | "Base amount" means the base year equalized assessed value | 16 | | of the residence plus the first year's equalized assessed value | 17 | | of any added improvements which increased the assessed value of | 18 | | the residence after the base year. | 19 | | "Base year" means the taxable year prior to the taxable | 20 | | year for which the applicant first qualifies and applies for | 21 | | the exemption, provided that, in the prior taxable year, the | 22 | | property was improved with a permanent structure that was | 23 | | occupied as a residence by the applicant who was liable for |
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| 1 | | paying real property taxes on the property and who was either | 2 | | (i) an owner of record of the property or had legal or | 3 | | equitable interest in the property as evidenced by a written | 4 | | instrument or (ii) had a legal or equitable interest as a | 5 | | lessee in the parcel of property that was single family | 6 | | residence. | 7 | | "Chief County Assessment Officer" means the County | 8 | | Assessor or Supervisor of Assessments of the county in which | 9 | | the property is located. | 10 | | "Equalized assessed value" means the assessed value of the | 11 | | property as equalized by the Department of Revenue. | 12 | | "Household" means the applicant, the spouse of the | 13 | | applicant, and all persons using the residence of the applicant | 14 | | as their principal place of residence. | 15 | | "Household income" means the combined income of the members | 16 | | of a household for the calendar year preceding the taxable | 17 | | year. | 18 | | "Income" has the same meaning as provided in Section 3.07 | 19 | | of the Senior Citizens and Persons with Disabilities Property | 20 | | Tax Relief Act, but does not include veteran's benefits. | 21 | | "Internal Revenue Code of 1986" means the United States | 22 | | Internal Revenue Code of 1986 or any successor law or laws | 23 | | relating to federal income taxes in effect for the year | 24 | | preceding the taxable year. | 25 | | "Life care facility that qualifies as a cooperative" means | 26 | | a facility as defined in Section 2 of the Life Care Facilities |
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| 1 | | Act. | 2 | | "Maximum income limitation" means $55,000. | 3 | | "Residence" means the principal dwelling place and | 4 | | appurtenant structures used for residential purposes in this | 5 | | State occupied on January 1 of the taxable year by a household | 6 | | and so much of the surrounding land, constituting the parcel | 7 | | upon which the dwelling place is situated, as is used for | 8 | | residential purposes. If the chief county assessment officer | 9 | | has established a specific legal description for a portion of | 10 | | property constituting the residence, then that portion of | 11 | | property shall be deemed the residence for the purposes of this | 12 | | Section. | 13 | | "Taxable year" means the calendar year during which ad | 14 | | valorem property taxes payable in the next succeeding year are | 15 | | levied. | 16 | | (c) Beginning in taxable year 2017, an assessment freeze | 17 | | homestead exemption is granted for real property that is | 18 | | improved with a permanent structure that is occupied as a | 19 | | residence by an applicant who (i) receives federal Supplemental | 20 | | Security Income during the taxable year, (ii) has a household | 21 | | income that does not exceed the maximum income limitation, | 22 | | (iii) is liable for paying real property taxes on the property, | 23 | | and (iv) is an owner of record of the property or has a legal or | 24 | | equitable interest in the property as evidenced by a written | 25 | | instrument. This homestead exemption shall also apply to a | 26 | | leasehold interest in a parcel of property improved with a |
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| 1 | | permanent structure that is a single family residence that is | 2 | | occupied as a residence by a person who (i) receives federal | 3 | | Supplemental Security Income during the taxable year, (ii) has | 4 | | a household income that does not exceed the maximum income | 5 | | limitation, (iii) has a legal or equitable ownership interest | 6 | | in the property as lessee, and (iv) is liable for the payment | 7 | | of real property taxes on that property. | 8 | | The amount of the exemption is the equalized assessed value | 9 | | of the residence in the taxable year for which application is | 10 | | made minus the base amount. | 11 | | When the applicant is a surviving spouse of an applicant | 12 | | for a prior year for the same residence for which an exemption | 13 | | under this Section has been granted, the base year and base | 14 | | amount for that residence are the same as for the applicant for | 15 | | the prior year. | 16 | | Each year at the time the assessment books are certified to | 17 | | the County Clerk, the Board of Review or Board of Appeals shall | 18 | | give to the County Clerk a list of the assessed values of | 19 | | improvements on each parcel qualifying for this exemption that | 20 | | were added after the base year for this parcel and that | 21 | | increased the assessed value of the property. | 22 | | In the case of land improved with an apartment building | 23 | | owned and operated as a cooperative or a building that is a | 24 | | life care facility that qualifies as a cooperative, the maximum | 25 | | reduction from the equalized assessed value of the property is | 26 | | limited to the sum of the reductions calculated for each unit |
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| 1 | | occupied as a residence by a person or persons (i) who receive | 2 | | federal Supplemental Security Income during the taxable year, | 3 | | (ii) with a household income that does not exceed the maximum | 4 | | income limitation, (iii) who are liable, by contract with the | 5 | | owner or owners of record, for paying real property taxes on | 6 | | the property, and (iv) who is an owner of record of a legal or | 7 | | equitable interest in the cooperative apartment building, | 8 | | other than a leasehold interest. In the instance of a | 9 | | cooperative where a homestead exemption has been granted under | 10 | | this Section, the cooperative association or its management | 11 | | firm shall credit the savings resulting from that exemption | 12 | | only to the apportioned tax liability of the owner who | 13 | | qualified for the exemption. Any person who willfully refuses | 14 | | to credit that savings to an owner who qualifies for the | 15 | | exemption is guilty of a Class B misdemeanor. | 16 | | When a homestead exemption has been granted under this | 17 | | Section and an applicant then becomes a resident of a facility | 18 | | licensed under the Assisted Living and Shared Housing Act, the | 19 | | Nursing Home Care Act, the Specialized Mental Health | 20 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 21 | | the MC/DD Act, the exemption shall be granted in subsequent | 22 | | years so long as the residence (i) continues to be occupied by | 23 | | the qualified applicant's spouse or (ii) if remaining | 24 | | unoccupied, is still owned by the qualified applicant for the | 25 | | homestead exemption. | 26 | | When an individual dies who would have qualified for an |
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| 1 | | exemption under this Section, and the surviving spouse does not | 2 | | independently qualify for this exemption because he or she does | 3 | | not receive Supplemental Security Income, the exemption under | 4 | | this Section shall be granted to the surviving spouse for the | 5 | | taxable year preceding and the taxable year of the death, | 6 | | provided that the surviving spouse meets all other | 7 | | qualifications for the granting of this exemption for those | 8 | | years. | 9 | | When married persons maintain separate residences, the | 10 | | exemption provided for in this Section may be claimed by only | 11 | | one of such persons and for only one residence. | 12 | | In counties having 3,000,000 or more inhabitants, to | 13 | | receive the exemption, a person may submit an application to | 14 | | the chief county assessment officer of the county in which the | 15 | | property is located during such period as may be specified by | 16 | | the chief county assessment officer. The chief county | 17 | | assessment officer in counties of 3,000,000 or more inhabitants | 18 | | shall annually give notice of the application period by mail or | 19 | | by publication. In counties having less than 3,000,000 | 20 | | inhabitants, to receive the exemption, a person shall submit an | 21 | | application by July 1 of each taxable year to the chief county | 22 | | assessment officer of the county in which the property is | 23 | | located. A county having less than 3,000,000 inhabitants may, | 24 | | by ordinance, establish a date for submission of applications | 25 | | that is different than July 1. The applicant shall submit with | 26 | | the application an affidavit verifying the applicant's |
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| 1 | | qualifications for the exemption under this Section. The | 2 | | Department shall establish, by rule, a method for verifying the | 3 | | accuracy of such affidavits, and the chief county assessment | 4 | | officer may conduct audits of any taxpayer claiming an | 5 | | exemption under this Section to verify that the taxpayer is | 6 | | eligible to receive the exemption. Each application shall | 7 | | contain or be verified by a written declaration that it is made | 8 | | under the penalties of perjury. A taxpayer's signing a | 9 | | fraudulent application under this Act is perjury, as defined in | 10 | | Section 32-2 of the Criminal Code of 2012. The applications | 11 | | shall be clearly marked as applications for the Assessment | 12 | | Freeze Homestead Exemption for Persons Receiving Supplemental | 13 | | Security Income and must contain a notice that any taxpayer who | 14 | | receives the exemption is subject to an audit by the chief | 15 | | county assessment officer. | 16 | | If an applicant fails to file the application required by | 17 | | this Section in a timely manner and this failure to file is due | 18 | | to a mental or physical condition sufficiently severe so as to | 19 | | render the applicant incapable of filing the application in a | 20 | | timely manner, the chief county assessment officer may extend | 21 | | the filing deadline for a period of 30 days after the applicant | 22 | | regains the capability to file the application, but in no case | 23 | | may the filing deadline be extended beyond 3 months of the | 24 | | original filing deadline. In order to receive the extension | 25 | | provided in this paragraph, the applicant shall provide the | 26 | | chief county assessment officer with a signed statement from |
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| 1 | | the applicant's physician, advanced practice nurse, or | 2 | | physician assistant stating the nature and extent of the | 3 | | condition, that, in the physician's, advanced practice | 4 | | nurse's, or physician assistant's opinion, the condition was so | 5 | | severe that it rendered the applicant incapable of filing the | 6 | | application in a timely manner, and the date on which the | 7 | | applicant regained the capability to file the application. | 8 | | The chief county assessment officer may determine the | 9 | | eligibility of a life care facility that qualifies as a | 10 | | cooperative to receive the benefits provided by this Section by | 11 | | use of an affidavit, application, visual inspection, | 12 | | questionnaire, or other reasonable method in order to insure | 13 | | that the tax savings resulting from the exemption are credited | 14 | | by the management firm to the apportioned tax liability of each | 15 | | qualifying resident. The chief county assessment officer may | 16 | | request reasonable proof that the management firm has so | 17 | | credited that exemption. | 18 | | Except as provided in this Section, all information | 19 | | received by the chief county assessment officer or the | 20 | | Department from applications filed under this Section, or from | 21 | | any investigation conducted under the provisions of this | 22 | | Section, shall be confidential, except for official purposes or | 23 | | pursuant to official procedures for collection of any State or | 24 | | local tax or enforcement of any civil or criminal penalty or | 25 | | sanction imposed by this Act or by any statute or ordinance | 26 | | imposing a State or local tax. Any person who divulges any such |
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| 1 | | information in any manner, except in accordance with a proper | 2 | | judicial order, is guilty of a Class A misdemeanor. | 3 | | Nothing contained in this Section shall prevent the | 4 | | Director or chief county assessment officer from publishing or | 5 | | making available reasonable statistics concerning the | 6 | | operation of the exemption contained in this Section in which | 7 | | the contents of claims are grouped into aggregates in such a | 8 | | way that information contained in any individual claim shall | 9 | | not be disclosed. | 10 | | (d) Each Chief County Assessment Officer shall annually | 11 | | publish a notice of availability of the exemption provided | 12 | | under this Section. The notice shall be published at least 60 | 13 | | days but no more than 75 days prior to the date on which the | 14 | | application must be submitted to the Chief County Assessment | 15 | | Officer of the county in which the property is located. The | 16 | | notice shall appear in a newspaper of general circulation in | 17 | | the county. | 18 | | Notwithstanding Sections 6 and 8 of the State Mandates Act, | 19 | | no reimbursement by the State is required for the | 20 | | implementation of any mandate created by this Section.
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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