Bill Text: IL HB3401 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB3401 Detail]
Download: Illinois-2019-HB3401-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by adding | ||||||||||||||||||||||||
5 | Section 15-168.1 as follows:
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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 value | ||||||||||||||||||||||||
16 | of any added improvements which increased the assessed value of | ||||||||||||||||||||||||
17 | 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 equalized | ||||||
7 | assessed value of the residence is less than the equalized | ||||||
8 | assessed value in the existing base year (provided that such | ||||||
9 | equalized assessed value is not based on an assessed value that | ||||||
10 | results from a temporary irregularity in the property that | ||||||
11 | reduces the assessed value for one or more taxable years), then | ||||||
12 | that subsequent taxable year shall become the base year until a | ||||||
13 | new base year is established under the terms of this paragraph. | ||||||
14 | An equalized assessed value that is based on an assessed value | ||||||
15 | that results from a temporary irregularity in the property that | ||||||
16 | reduces the assessed value for one or more taxable years shall | ||||||
17 | not be considered the lowest equalized assessed value. | ||||||
18 | "Chief County Assessment Officer" means the County | ||||||
19 | Assessor or Supervisor of Assessments of the county in which | ||||||
20 | the property is located. | ||||||
21 | "Equalized assessed value" means the assessed value as | ||||||
22 | equalized by the Illinois Department of Revenue. | ||||||
23 | "Household" means the applicant, the spouse of the | ||||||
24 | applicant, and all persons using the residence of the applicant | ||||||
25 | as their principal place of residence. | ||||||
26 | "Household income" means the combined income of the members |
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1 | of a household for the calendar year preceding the taxable | ||||||
2 | year. | ||||||
3 | "Income" has the same meaning as provided in Section 3.07 | ||||||
4 | of the Senior Citizens and Persons with Disabilities Property | ||||||
5 | Tax Relief Act, except that "income" does not include veteran's | ||||||
6 | benefits. | ||||||
7 | "Life care facility that qualifies as a cooperative" means | ||||||
8 | a facility as defined in Section 2 of the Life Care Facilities | ||||||
9 | Act. | ||||||
10 | "Maximum income limitation" means $55,000. | ||||||
11 | "Person with a disability" has the meaning ascribed to that | ||||||
12 | term in Section 15-168 of this Act. | ||||||
13 | "Residence" means the principal dwelling place and | ||||||
14 | appurtenant structures used for residential purposes in this | ||||||
15 | State occupied on January 1 of the taxable year by a household | ||||||
16 | and so much of the surrounding land, constituting the parcel | ||||||
17 | upon which the dwelling place is situated, as is used for | ||||||
18 | residential purposes. If the Chief County Assessment Officer | ||||||
19 | has established a specific legal description for a portion of | ||||||
20 | property constituting the residence, then that portion of | ||||||
21 | property shall be deemed the residence for the purposes of this | ||||||
22 | Section. | ||||||
23 | "Taxable year" means the calendar year during which ad | ||||||
24 | valorem property taxes payable in the next succeeding year are | ||||||
25 | levied. | ||||||
26 | (c) Beginning in taxable year 2019, an assessment freeze |
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1 | homestead exemption is granted for real property that is | ||||||
2 | improved with a permanent structure that is occupied as a | ||||||
3 | residence by an applicant who (i) is a person with a disability | ||||||
4 | at any point during the taxable year, (ii) has a household | ||||||
5 | income that does not exceed the maximum income limitation, | ||||||
6 | (iii) is liable for paying real property taxes on the property, | ||||||
7 | and (iv) is an owner of record of the property or has a legal or | ||||||
8 | equitable interest in the property as evidenced by a written | ||||||
9 | instrument. This homestead exemption shall also apply to a | ||||||
10 | leasehold interest in a parcel of property improved with a | ||||||
11 | permanent structure that is a single family residence that is | ||||||
12 | occupied as a residence by a person who (i) is a person with a | ||||||
13 | disability during the taxable year, (ii) has a household income | ||||||
14 | that does not exceed the maximum income limitation, (iii) has a | ||||||
15 | legal or equitable ownership interest in the property as | ||||||
16 | lessee, and (iv) is liable for the payment of real property | ||||||
17 | taxes on that property. | ||||||
18 | In counties of 3,000,000 or more inhabitants, the amount of | ||||||
19 | the exemption for all taxable years is the equalized assessed | ||||||
20 | value of the residence in the taxable year for which | ||||||
21 | application is made minus the base amount. In all other | ||||||
22 | counties, the amount of the exemption is as follows: | ||||||
23 | (1) For an applicant who has a household income of
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24 | $45,000 or less, the amount of the exemption is the | ||||||
25 | equalized assessed value of the residence in the taxable | ||||||
26 | year for which application is made minus the base amount. |
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1 | (2) For an applicant who has a household income
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2 | exceeding $45,000 but not exceeding $46,250, the amount of | ||||||
3 | the exemption is (i) the equalized assessed value of the | ||||||
4 | residence in the taxable year for which application is made | ||||||
5 | minus the base amount (ii) multiplied by 0.8. | ||||||
6 | (3) For an applicant who has a household income
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7 | exceeding $46,250 but not exceeding $47,500, the amount of | ||||||
8 | the exemption is (i) the equalized assessed value of the | ||||||
9 | residence in the taxable year for which application is made | ||||||
10 | minus the base amount (ii) multiplied by 0.6. | ||||||
11 | (4) For an applicant who has a household income
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12 | exceeding $47,500 but not exceeding $48,750, the amount of | ||||||
13 | the exemption is (i) the equalized assessed value of the | ||||||
14 | residence in the taxable year for which application is made | ||||||
15 | minus the base amount (ii) multiplied by 0.4. | ||||||
16 | (5) For an applicant who has a household income
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17 | exceeding $48,750 but not exceeding $55,000, the amount of | ||||||
18 | the exemption is (i) the equalized assessed value of the | ||||||
19 | residence in the taxable year for which application is made | ||||||
20 | minus the base amount (ii) multiplied by 0.2. | ||||||
21 | When the applicant is a surviving spouse of an applicant | ||||||
22 | for a prior year for the same residence for which an exemption | ||||||
23 | under this Section has been granted, the base year and base | ||||||
24 | amount for that residence are the same as for the applicant for | ||||||
25 | the prior year. | ||||||
26 | Each year at the time the assessment books are certified to |
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1 | the County Clerk, the Board of Review or Board of Appeals shall | ||||||
2 | give to the County Clerk a list of the assessed values of | ||||||
3 | improvements on each parcel qualifying for this exemption that | ||||||
4 | were added after the base year for this parcel and increased | ||||||
5 | the assessed value of the property. | ||||||
6 | In the case of land improved with an apartment building | ||||||
7 | owned and operated as a cooperative or a building that is a | ||||||
8 | life care facility that qualifies as a cooperative, the maximum | ||||||
9 | reduction from the equalized assessed value of the property is | ||||||
10 | limited to the sum of the reductions calculated for each unit | ||||||
11 | occupied as a residence by a person or persons (i) with a | ||||||
12 | disability, (ii) with a household income that does not exceed | ||||||
13 | the maximum income limitation, (iii) who is liable, by contract | ||||||
14 | with the owner or owners of record, for paying real property | ||||||
15 | taxes on the property, and (iv) who is an owner of record of a | ||||||
16 | legal or equitable interest in the cooperative apartment | ||||||
17 | building, other than a leasehold interest. In the instance of a | ||||||
18 | cooperative where a homestead exemption has been granted under | ||||||
19 | this Section, the cooperative association or its management | ||||||
20 | firm shall credit the savings resulting from that exemption | ||||||
21 | only to the apportioned tax liability of the owner who | ||||||
22 | qualified for the exemption. Any person who willfully refuses | ||||||
23 | to credit that savings to an owner who qualifies for the | ||||||
24 | exemption is guilty of a Class B misdemeanor. | ||||||
25 | When a homestead exemption has been granted under this | ||||||
26 | Section and an applicant then becomes a resident of a facility |
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1 | licensed under the Assisted Living and Shared Housing Act, the | ||||||
2 | Nursing Home Care Act, the Specialized Mental Health | ||||||
3 | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | ||||||
4 | the MC/DD Act, the exemption shall be granted in subsequent | ||||||
5 | years so long as the residence (i) continues to be occupied by | ||||||
6 | the qualified applicant's spouse or (ii) if remaining | ||||||
7 | unoccupied, is still owned by the qualified applicant for the | ||||||
8 | homestead exemption. | ||||||
9 | When an individual dies who would have qualified for an | ||||||
10 | exemption under this Section, and the surviving spouse does not | ||||||
11 | independently qualify for this exemption because of he or she | ||||||
12 | is not a person with a disability, the exemption under this | ||||||
13 | Section shall be granted to the surviving spouse for the | ||||||
14 | taxable year preceding and the taxable year of the death, | ||||||
15 | provided that the surviving spouse meets all other | ||||||
16 | qualifications for the granting of this exemption for those | ||||||
17 | years. | ||||||
18 | When married persons maintain separate residences, the | ||||||
19 | exemption provided for in this Section may be claimed by only | ||||||
20 | one of such persons and for only one residence. | ||||||
21 | To receive the exemption, a person shall submit an | ||||||
22 | application by July 1 of each taxable year to the Chief County | ||||||
23 | Assessment Officer of the county in which the property is | ||||||
24 | located. A county may, by ordinance, establish a date for | ||||||
25 | submission of applications that is different than July 1. The | ||||||
26 | applicant shall submit with the application an affidavit of the |
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1 | applicant's total household income, marital status (and if | ||||||
2 | married the name and address of the applicant's spouse, if | ||||||
3 | known), disability, and principal dwelling place of members of | ||||||
4 | the household on January 1 of the taxable year. The Department | ||||||
5 | shall establish, by rule, a method for verifying the accuracy | ||||||
6 | of affidavits filed by applicants under this Section, and the | ||||||
7 | Chief County Assessment Officer may conduct audits of any | ||||||
8 | taxpayer claiming an exemption under this Section to verify | ||||||
9 | that the taxpayer is eligible to receive the exemption. Each | ||||||
10 | application shall contain or be verified by a written | ||||||
11 | declaration that it is made under the penalties of perjury. A | ||||||
12 | taxpayer's signing a fraudulent application under this Act is | ||||||
13 | perjury, as defined in Section 32-2 of the Criminal Code of | ||||||
14 | 2012. The applications shall be clearly marked as applications | ||||||
15 | for the Assessment Freeze Homestead Exemption for Persons with | ||||||
16 | a Disability and must contain a notice that any taxpayer who | ||||||
17 | receives the exemption is subject to an audit by the Chief | ||||||
18 | County Assessment Officer. | ||||||
19 | Notwithstanding any other provision to the contrary, if an | ||||||
20 | applicant fails to file the application required by this | ||||||
21 | Section in a timely manner and this failure to file is due to a | ||||||
22 | mental or physical condition sufficiently severe so as to | ||||||
23 | render the applicant incapable of filing the application in a | ||||||
24 | timely manner, the Chief County Assessment Officer may extend | ||||||
25 | the filing deadline for a period of 30 days after the applicant | ||||||
26 | regains the capability to file the application, but in no case |
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1 | may the filing deadline be extended beyond 3 months of the | ||||||
2 | original filing deadline. In order to receive the extension | ||||||
3 | provided in this paragraph, the applicant shall provide the | ||||||
4 | Chief County Assessment Officer with a signed statement from | ||||||
5 | the applicant's physician, advanced practice nurse, or | ||||||
6 | physician assistant stating the nature and extent of the | ||||||
7 | condition, that, in the physician's, advanced practice | ||||||
8 | nurse's, or physician assistant's opinion, the condition was so | ||||||
9 | severe that it rendered the applicant incapable of filing the | ||||||
10 | application in a timely manner, and the date on which the | ||||||
11 | applicant regained the capability to file the application. | ||||||
12 | Application shall be made during the application period in | ||||||
13 | effect for the county of his or her residence. | ||||||
14 | The Chief County Assessment Officer may determine the | ||||||
15 | eligibility of a life care facility that qualifies as a | ||||||
16 | cooperative to receive the benefits provided by this Section by | ||||||
17 | use of an affidavit, application, visual inspection, | ||||||
18 | questionnaire, or other reasonable method in order to insure | ||||||
19 | that the tax savings resulting from the exemption are credited | ||||||
20 | by the management firm to the apportioned tax liability of each | ||||||
21 | qualifying resident. The Chief County Assessment Officer may | ||||||
22 | request reasonable proof that the management firm has so | ||||||
23 | credited that exemption. | ||||||
24 | Except as provided in this Section, all information | ||||||
25 | received by the chief county assessment officer or the | ||||||
26 | Department from applications filed under this Section, or from |
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1 | any investigation conducted under the provisions of this | ||||||
2 | Section, shall be confidential, except for official purposes or | ||||||
3 | pursuant to official procedures for collection of any State or | ||||||
4 | local tax or enforcement of any civil or criminal penalty or | ||||||
5 | sanction imposed by this Act or by any statute or ordinance | ||||||
6 | imposing a State or local tax. Any person who divulges any such | ||||||
7 | information in any manner, except in accordance with a proper | ||||||
8 | judicial order, is guilty of a Class A misdemeanor. | ||||||
9 | Nothing contained in this Section shall prevent the | ||||||
10 | Director or chief county assessment officer from publishing or | ||||||
11 | making available reasonable statistics concerning the | ||||||
12 | operation of the exemption contained in this Section in which | ||||||
13 | the contents of claims are grouped into aggregates in such a | ||||||
14 | way that information contained in any individual claim shall | ||||||
15 | not be disclosed. | ||||||
16 | (d) Each Chief County Assessment Officer shall annually | ||||||
17 | publish a notice of availability of the exemption provided | ||||||
18 | under this Section. The notice shall be published at least 60 | ||||||
19 | days but no more than 75 days prior to the date on which the | ||||||
20 | application must be submitted to the Chief County Assessment | ||||||
21 | Officer of the county in which the property is located. The | ||||||
22 | notice shall appear in a newspaper of general circulation in | ||||||
23 | the county. | ||||||
24 | Notwithstanding Sections 6 and 8 of the State Mandates Act, | ||||||
25 | no reimbursement by the State is required for the | ||||||
26 | implementation of any mandate created by this Section.
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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