Full Text of HB0864 102nd General Assembly
HB0864 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0864 Introduced 2/10/2021, by Rep. Joyce Mason SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Creates an assessment freeze homestead exemption for persons with a disability. Sets forth the amount of the exemption. Provides that applicants must reapply on an annual basis. Effective immediately.
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| | 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 15-168.1 as follows: | 6 | | (35 ILCS 200/15-168.1 new) | 7 | | Sec. 15-168.1. Assessment Freeze Homestead Exemption for | 8 | | Persons with Disabilities. | 9 | | (a) This Section may be cited as the Assessment Freeze | 10 | | Homestead Exemption for Persons with Disabilities. | 11 | | (b) As used in this Section: | 12 | | "Applicant" means an individual who has filed an | 13 | | application under this Section. | 14 | | "Base amount" means the base year equalized assessed value | 15 | | of the residence plus the first year's equalized assessed | 16 | | value of any added improvements which increased the assessed | 17 | | value of the residence after the base year. | 18 | | "Base year" means the taxable year prior to the taxable | 19 | | year for which the applicant first qualifies and applies for | 20 | | the exemption, provided that, in the prior taxable year, the | 21 | | property was improved with a permanent structure that was | 22 | | occupied as a residence by the applicant who was liable for | 23 | | paying real property taxes on the property and who was either |
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| 1 | | (i) an owner of record of the property or had legal or | 2 | | equitable interest in the property as evidenced by a written | 3 | | instrument or (ii) had a legal or equitable interest as a | 4 | | lessee in the parcel of property that was single family | 5 | | residence. If in any subsequent taxable year for which the | 6 | | applicant applies and qualifies for the exemption the | 7 | | equalized assessed value of the residence is less than the | 8 | | equalized assessed value in the existing base year (provided | 9 | | that such equalized assessed value is not based on an assessed | 10 | | value that results from a temporary irregularity in the | 11 | | property that reduces the assessed value for one or more | 12 | | taxable years), then that subsequent taxable year shall become | 13 | | the base year until a new base year is established under the | 14 | | terms of this paragraph. An equalized assessed value that is | 15 | | based on an assessed value that results from a temporary | 16 | | irregularity in the property that reduces the assessed value | 17 | | for one or more taxable years shall not be considered the | 18 | | lowest equalized assessed value. | 19 | | "Chief County Assessment Officer" means the County | 20 | | Assessor or Supervisor of Assessments of the county in which | 21 | | the property is located. | 22 | | "Equalized assessed value" means the assessed value as | 23 | | equalized by the Illinois Department of Revenue. | 24 | | "Household" means the applicant, the spouse of the | 25 | | applicant, and all persons using the residence of the | 26 | | applicant as their principal place of residence. |
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| 1 | | "Household income" means the combined income of the | 2 | | members of a household for the calendar year preceding the | 3 | | taxable year. | 4 | | "Income" has the same meaning as provided in Section 3.07 | 5 | | of the Senior Citizens and Persons with Disabilities Property | 6 | | Tax Relief Act, except that "income" does not include | 7 | | veteran's benefits. | 8 | | "Life care facility that qualifies as a cooperative" means | 9 | | a facility as defined in Section 2 of the Life Care Facilities | 10 | | Act. | 11 | | "Maximum income limitation" means $55,000. | 12 | | "Person with a disability" has the meaning ascribed to | 13 | | that term in Section 15-168 of this Act. | 14 | | "Residence" means the principal dwelling place and | 15 | | appurtenant structures used for residential purposes in this | 16 | | State occupied on January 1 of the taxable year by a household | 17 | | and so much of the surrounding land, constituting the parcel | 18 | | upon which the dwelling place is situated, as is used for | 19 | | residential purposes. If the Chief County Assessment Officer | 20 | | has established a specific legal description for a portion of | 21 | | property constituting the residence, then that portion of | 22 | | property shall be deemed the residence for the purposes of | 23 | | this Section. | 24 | | "Taxable year" means the calendar year during which ad | 25 | | valorem property taxes payable in the next succeeding year are | 26 | | levied. |
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| 1 | | (c) Beginning in taxable year 2021, an assessment freeze | 2 | | homestead exemption is granted for real property that is | 3 | | improved with a permanent structure that is occupied as a | 4 | | residence by an applicant who (i) is a person with a disability | 5 | | at any point during the taxable year, (ii) has a household | 6 | | income that does not exceed the maximum income limitation, | 7 | | (iii) is liable for paying real property taxes on the | 8 | | property, and (iv) is an owner of record of the property or has | 9 | | a legal or equitable interest in the property as evidenced by a | 10 | | written instrument. This homestead exemption shall also apply | 11 | | to a leasehold interest in a parcel of property improved with a | 12 | | permanent structure that is a single family residence that is | 13 | | occupied as a residence by a person who (i) is a person with a | 14 | | disability during the taxable year, (ii) has a household | 15 | | income that does not exceed the maximum income limitation, | 16 | | (iii) has a legal or equitable ownership interest in the | 17 | | property as lessee, and (iv) is liable for the payment of real | 18 | | property taxes on that property. | 19 | | In counties of 3,000,000 or more inhabitants, the amount | 20 | | of the exemption for all taxable years is the equalized | 21 | | assessed value of the residence in the taxable year for which | 22 | | application is made minus the base amount. In all other | 23 | | counties, the amount of the exemption is as follows: | 24 | | (1) For an applicant who has a household income of
| 25 | | $45,000 or less, the amount of the exemption is the | 26 | | equalized assessed value of the residence in the taxable |
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| 1 | | year for which application is made minus the base amount. | 2 | | (2) For an applicant who has a household income
| 3 | | exceeding $45,000 but not exceeding $46,250, the amount of | 4 | | the exemption is (i) the equalized assessed value of the | 5 | | residence in the taxable year for which application is | 6 | | made minus the base amount (ii) multiplied by 0.8. | 7 | | (3) For an applicant who has a household income
| 8 | | exceeding $46,250 but not exceeding $47,500, the amount of | 9 | | the exemption is (i) the equalized assessed value of the | 10 | | residence in the taxable year for which application is | 11 | | made minus the base amount (ii) multiplied by 0.6. | 12 | | (4) For an applicant who has a household income
| 13 | | exceeding $47,500 but not exceeding $48,750, the amount of | 14 | | the exemption is (i) the equalized assessed value of the | 15 | | residence in the taxable year for which application is | 16 | | made minus the base amount (ii) multiplied by 0.4. | 17 | | (5) For an applicant who has a household income
| 18 | | exceeding $48,750 but not exceeding $55,000, the amount of | 19 | | the exemption is (i) the equalized assessed value of the | 20 | | residence in the taxable year for which application is | 21 | | made minus the base amount (ii) multiplied by 0.2. | 22 | | When the applicant is a surviving spouse of an applicant | 23 | | for a prior year for the same residence for which an exemption | 24 | | under this Section has been granted, the base year and base | 25 | | amount for that residence are the same as for the applicant for | 26 | | the prior year. |
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| 1 | | Each year at the time the assessment books are certified | 2 | | to the County Clerk, the Board of Review or Board of Appeals | 3 | | shall give to the County Clerk a list of the assessed values of | 4 | | improvements on each parcel qualifying for this exemption that | 5 | | were added after the base year for this parcel and increased | 6 | | the assessed value of the property. | 7 | | In the case of land improved with an apartment building | 8 | | owned and operated as a cooperative or a building that is a | 9 | | life care facility that qualifies as a cooperative, the | 10 | | maximum reduction from the equalized assessed value of the | 11 | | property is limited to the sum of the reductions calculated | 12 | | for each unit occupied as a residence by a person or persons | 13 | | (i) with a disability, (ii) with a household income that does | 14 | | not exceed the maximum income limitation, (iii) who is liable, | 15 | | by contract with the owner or owners of record, for paying real | 16 | | property taxes on the property, and (iv) who is an owner of | 17 | | record of a legal or equitable interest in the cooperative | 18 | | apartment building, other than a leasehold interest. In the | 19 | | instance of a cooperative where a homestead exemption has been | 20 | | granted under this Section, the cooperative association or its | 21 | | management firm shall credit the savings resulting from that | 22 | | exemption only to the apportioned tax liability of the owner | 23 | | who qualified for the exemption. Any person who willfully | 24 | | refuses to credit that savings to an owner who qualifies for | 25 | | the exemption is guilty of a Class B misdemeanor. | 26 | | When a homestead exemption has been granted under this |
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| 1 | | Section and an applicant then becomes a resident of a facility | 2 | | licensed under the Assisted Living and Shared Housing Act, the | 3 | | Nursing Home Care Act, the Specialized Mental Health | 4 | | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | 5 | | the MC/DD Act, the exemption shall be granted in subsequent | 6 | | years so long as the residence (i) continues to be occupied by | 7 | | the qualified applicant's spouse or (ii) if remaining | 8 | | unoccupied, is still owned by the qualified applicant for the | 9 | | homestead exemption. | 10 | | When an individual dies who would have qualified for an | 11 | | exemption under this Section, and the surviving spouse does | 12 | | not independently qualify for this exemption because of he or | 13 | | she is not a person with a disability, the exemption under this | 14 | | Section shall be granted to the surviving spouse for the | 15 | | taxable year preceding and the taxable year of the death, | 16 | | provided that the surviving spouse meets all other | 17 | | qualifications for the granting of this exemption for those | 18 | | years. | 19 | | When married persons maintain separate residences, the | 20 | | exemption provided for in this Section may be claimed by only | 21 | | one of such persons and for only one residence. | 22 | | To receive the exemption, a person shall submit an | 23 | | application by July 1 of each taxable year to the Chief County | 24 | | Assessment Officer of the county in which the property is | 25 | | located. A county may, by ordinance, establish a date for | 26 | | submission of applications that is different than July 1. The |
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| 1 | | applicant shall submit with the application an affidavit of | 2 | | the applicant's total household income, marital status (and if | 3 | | married the name and address of the applicant's spouse, if | 4 | | known), disability, and principal dwelling place of members of | 5 | | the household on January 1 of the taxable year. The Department | 6 | | shall establish, by rule, a method for verifying the accuracy | 7 | | of affidavits filed by applicants under this Section, and the | 8 | | Chief County Assessment Officer may conduct audits of any | 9 | | taxpayer claiming an exemption under this Section to verify | 10 | | that the taxpayer is eligible to receive the exemption. Each | 11 | | application shall contain or be verified by a written | 12 | | declaration that it is made under the penalties of perjury. A | 13 | | taxpayer's signing a fraudulent application under this Act is | 14 | | perjury, as defined in Section 32-2 of the Criminal Code of | 15 | | 2012. The applications shall be clearly marked as applications | 16 | | for the Assessment Freeze Homestead Exemption for Persons with | 17 | | a Disability and must contain a notice that any taxpayer who | 18 | | receives the exemption is subject to an audit by the Chief | 19 | | County Assessment Officer. | 20 | | Notwithstanding any other provision to the contrary, if an | 21 | | applicant fails to file the application required by this | 22 | | Section in a timely manner and this failure to file is due to a | 23 | | mental or physical condition sufficiently severe so as to | 24 | | render the applicant incapable of filing the application in a | 25 | | timely manner, the Chief County Assessment Officer may extend | 26 | | the filing deadline for a period of 30 days after the applicant |
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| 1 | | regains the capability to file the application, but in no case | 2 | | may the filing deadline be extended beyond 3 months of the | 3 | | original filing deadline. In order to receive the extension | 4 | | provided in this paragraph, the applicant shall provide the | 5 | | Chief County Assessment Officer with a signed statement from | 6 | | the applicant's physician, advanced practice nurse, or | 7 | | physician assistant stating the nature and extent of the | 8 | | condition, that, in the physician's, advanced practice | 9 | | nurse's, or physician assistant's opinion, the condition was | 10 | | so severe that it rendered the applicant incapable of filing | 11 | | the application in a timely manner, and the date on which the | 12 | | applicant regained the capability to file the application. | 13 | | Application shall be made during the application period in | 14 | | effect for the county of his or her residence. | 15 | | The Chief County Assessment Officer may determine the | 16 | | eligibility of a life care facility that qualifies as a | 17 | | cooperative to receive the benefits provided by this Section | 18 | | by use of an affidavit, application, visual inspection, | 19 | | questionnaire, or other reasonable method in order to insure | 20 | | that the tax savings resulting from the exemption are credited | 21 | | by the management firm to the apportioned tax liability of | 22 | | each qualifying resident. The Chief County Assessment Officer | 23 | | may request reasonable proof that the management firm has so | 24 | | credited that exemption. | 25 | | Except as provided in this Section, all information | 26 | | received by the chief county assessment officer or the |
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| 1 | | Department from applications filed under this Section, or from | 2 | | any investigation conducted under the provisions of this | 3 | | Section, shall be confidential, except for official purposes | 4 | | or pursuant to official procedures for collection of any State | 5 | | or local tax or enforcement of any civil or criminal penalty or | 6 | | sanction imposed by this Act or by any statute or ordinance | 7 | | imposing a State or local tax. Any person who divulges any such | 8 | | information in any manner, except in accordance with a proper | 9 | | judicial order, is guilty of a Class A misdemeanor. | 10 | | Nothing contained in this Section shall prevent the | 11 | | Director or chief county assessment officer from publishing or | 12 | | making available reasonable statistics concerning the | 13 | | operation of the exemption contained in this Section in which | 14 | | the contents of claims are grouped into aggregates in such a | 15 | | way that information contained in any individual claim shall | 16 | | not be disclosed. | 17 | | (d) Each Chief County Assessment Officer shall annually | 18 | | publish a notice of availability of the exemption provided | 19 | | under this Section. The notice shall be published at least 60 | 20 | | days but no more than 75 days prior to the date on which the | 21 | | application must be submitted to the Chief County Assessment | 22 | | Officer of the county in which the property is located. The | 23 | | notice shall appear in a newspaper of general circulation in | 24 | | the county. | 25 | | Notwithstanding Sections 6 and 8 of the State Mandates | 26 | | Act, no reimbursement by the State is required for the |
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| 1 | | implementation of any mandate created by this Section.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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