Bill Text: IL HB1807 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Creates an assessment freeze homestead exemption for persons receiving federal Supplemental Security Income. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB1807 Detail]
Download: Illinois-2021-HB1807-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 15-172.5 as follows:
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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.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.
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