Full Text of HB1807 102nd General Assembly
HB1807 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB1807 Introduced 2/17/2021, by Rep. Dave Vella 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 | 17 | | value of any added improvements which increased the assessed | 18 | | value of 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 | 14 | | applicant as their principal place of residence. | 15 | | "Household income" means the combined income of the | 16 | | members of a household for the calendar year preceding the | 17 | | taxable 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 | 12 | | this 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 2021, 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 | 20 | | Supplemental Security Income during the taxable year, (ii) has | 21 | | a household income that does not exceed the maximum income | 22 | | limitation, (iii) is liable for paying real property taxes on | 23 | | the property, and (iv) is an owner of record of the property or | 24 | | has a legal or equitable interest in the property as evidenced | 25 | | by a written instrument. This homestead exemption shall also | 26 | | apply to a leasehold interest in a parcel of property improved |
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| 1 | | with a permanent structure that is a single family residence | 2 | | that is occupied as a residence by a person who (i) receives | 3 | | federal Supplemental Security Income during the taxable year, | 4 | | (ii) has a household income that does not exceed the maximum | 5 | | income limitation, (iii) has a legal or equitable ownership | 6 | | interest in the property as lessee, and (iv) is liable for the | 7 | | payment of real property taxes on that property. | 8 | | The amount of the exemption is the equalized assessed | 9 | | value of the residence in the taxable year for which | 10 | | application is 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 | 17 | | to the County Clerk, the Board of Review or Board of Appeals | 18 | | shall 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 | 25 | | maximum reduction from the equalized assessed value of the | 26 | | property is limited to the sum of the reductions calculated |
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| 1 | | for each unit occupied as a residence by a person or persons | 2 | | (i) who receive federal Supplemental Security Income during | 3 | | the taxable year, (ii) with a household income that does not | 4 | | exceed the maximum income limitation, (iii) who are liable, by | 5 | | contract with the owner or owners of record, for paying real | 6 | | property taxes on the property, and (iv) who is an owner of | 7 | | record of a legal or equitable interest in the cooperative | 8 | | apartment building, other than a leasehold interest. In the | 9 | | instance of a cooperative where a homestead exemption has been | 10 | | granted under this Section, the cooperative association or its | 11 | | management firm shall credit the savings resulting from that | 12 | | exemption only to the apportioned tax liability of the owner | 13 | | who qualified for the exemption. Any person who willfully | 14 | | refuses to credit that savings to an owner who qualifies for | 15 | | the 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 | 2 | | not independently qualify for this exemption because he or she | 3 | | does not receive Supplemental Security Income, the exemption | 4 | | under this Section shall be granted to the surviving spouse | 5 | | for the taxable year preceding and the taxable year of the | 6 | | death, 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 | 18 | | inhabitants shall annually give notice of the application | 19 | | period by mail or by publication. In counties having less than | 20 | | 3,000,000 inhabitants, to receive the exemption, a person | 21 | | shall submit an application by July 1 of each taxable year to | 22 | | the chief county assessment officer of the county in which the | 23 | | property is located. A county having less than 3,000,000 | 24 | | inhabitants may, by ordinance, establish a date for submission | 25 | | of applications that is different than July 1. The applicant | 26 | | shall submit with the application an affidavit verifying the |
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| 1 | | applicant's qualifications for the exemption under this | 2 | | Section. The Department shall establish, by rule, a method for | 3 | | verifying the accuracy of such affidavits, and the chief | 4 | | county assessment officer may conduct audits of any taxpayer | 5 | | claiming an exemption under this Section to verify that the | 6 | | taxpayer is eligible to receive the exemption. Each | 7 | | application shall contain or be verified by a written | 8 | | declaration that it is made under the penalties of perjury. A | 9 | | taxpayer's signing a fraudulent application under this Act is | 10 | | perjury, as defined in Section 32-2 of the Criminal Code of | 11 | | 2012. The applications shall be clearly marked as applications | 12 | | for the Assessment Freeze Homestead Exemption for Persons | 13 | | Receiving Supplemental Security Income and must contain a | 14 | | notice that any taxpayer who receives the exemption is subject | 15 | | to an audit by the chief 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 | 5 | | so severe that it rendered the applicant incapable of filing | 6 | | the 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 | 11 | | by 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 | 15 | | each qualifying resident. The chief county assessment officer | 16 | | may 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 | 23 | | or pursuant to official procedures for collection of any State | 24 | | or 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 | 19 | | Act, 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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