Bill Text: IL HB2609 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Creates a resident low-income assessment freeze homestead exemption. Provides that the maximum income limitation is $75,000 for applicants who have occupied the residence in a low-income area 5 years or more. Indexes the maximum limitation to the Consumer Price Index. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB2609 Detail]
Download: Illinois-2017-HB2609-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. Resident Low-Income Assessment Freeze | ||||||||||||||||||||||||
8 | Homestead Exemption. | ||||||||||||||||||||||||
9 | (a) This Section may be cited as the Resident Low-Income | ||||||||||||||||||||||||
10 | Assessment Freeze Homestead Exemption. | ||||||||||||||||||||||||
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. | ||||||
6 | "Chief County Assessment Officer" means the County | ||||||
7 | Assessor or Supervisor of Assessments of the county in which | ||||||
8 | the property is located. | ||||||
9 | "Equalized assessed value" means the assessed value of the | ||||||
10 | property as equalized by the Department of Revenue. | ||||||
11 | "Household" means the applicant, the spouse of the | ||||||
12 | applicant, and all persons using the residence of the applicant | ||||||
13 | as their principal place of residence. | ||||||
14 | "Household income" means the combined income of the members | ||||||
15 | of a household for the calendar year preceding the taxable | ||||||
16 | year. | ||||||
17 | "Income" has the same meaning as provided in Section 3.07 | ||||||
18 | of the Senior Citizens and Persons with Disabilities Property | ||||||
19 | Tax Relief Act, but does not include veteran's benefits. | ||||||
20 | "Internal Revenue Code of 1986" means the United States | ||||||
21 | Internal Revenue Code of 1986 or any successor law or laws | ||||||
22 | relating to federal income taxes in effect for the year | ||||||
23 | preceding the taxable year. | ||||||
24 | "Life care facility that qualifies as a cooperative" means | ||||||
25 | a facility as defined in Section 2 of the Life Care Facilities | ||||||
26 | Act. |
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1 | "Low-income area" means a census tract with a median income | ||||||
2 | at or below the Federal Poverty Level, issued by the United | ||||||
3 | States Department of Health and Human Services. | ||||||
4 | "Maximum income limitation" means: | ||||||
5 | (1) in taxable year 2017, (A) $50,000 for applicants | ||||||
6 | who have occupied the residence for less than 5 years and | ||||||
7 | (B) $75,000 for applicants who have occupied the residence | ||||||
8 | for 5 or more years; and | ||||||
9 | (2) in taxable year 2018 and thereafter, (A) for | ||||||
10 | applicants who have occupied the residence for less than 5 | ||||||
11 | years, an amount equal to the maximum income limitation for | ||||||
12 | the immediately prior taxable year for applicants who have | ||||||
13 | occupied the residence for less than 5 years increased by | ||||||
14 | the lesser of (i) 2% or (ii) the percentage increase during | ||||||
15 | the immediately prior taxable year in the Consumer Price | ||||||
16 | Index for All Urban
Consumers for all items published by | ||||||
17 | the United States Department of Labor Bureau of Labor | ||||||
18 | Statistics and (B) for applicants who have occupied the | ||||||
19 | residence for 5 or more years, an amount equal to the | ||||||
20 | maximum income limitation for the immediately prior | ||||||
21 | taxable year for applicants who have occupied the residence | ||||||
22 | for 5 or more years increased by the lesser of (i) 2% or | ||||||
23 | (ii) the percentage increase during the immediately prior | ||||||
24 | taxable year in the Consumer Price Index for All Urban
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25 | Consumers for all items published by the United States | ||||||
26 | Department of Labor Bureau of Labor Statistics. |
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1 | "Residence" means the principal dwelling place and | ||||||
2 | appurtenant structures used for residential purposes in this | ||||||
3 | State occupied on January 1 of the taxable year by a household | ||||||
4 | and so much of the surrounding land, constituting the parcel | ||||||
5 | upon which the dwelling place is situated, as is used for | ||||||
6 | residential purposes. If the chief county assessment officer | ||||||
7 | has established a specific legal description for a portion of | ||||||
8 | property constituting the residence, then that portion of | ||||||
9 | property shall be deemed the residence for the purposes of this | ||||||
10 | Section. | ||||||
11 | "Taxable year" means the calendar year during which ad | ||||||
12 | valorem property taxes payable in the next succeeding year are | ||||||
13 | levied. | ||||||
14 | (c) Beginning in taxable year 2017, an assessment freeze | ||||||
15 | homestead exemption is granted for real property that is | ||||||
16 | improved with a permanent structure that is occupied as a | ||||||
17 | residence by an applicant who (i) resides in a low-income area, | ||||||
18 | (ii) has a household income that does not exceed the maximum | ||||||
19 | income limitation, (iii) is liable for paying real property | ||||||
20 | taxes on the property, (iv) is an owner of record of the | ||||||
21 | property or has a legal or equitable interest in the property | ||||||
22 | as evidenced by a written instrument, and (v) who has occupied | ||||||
23 | the residence for 5 years or more. This homestead exemption | ||||||
24 | shall also apply to a leasehold interest in a parcel of | ||||||
25 | property improved with a permanent structure that is a single | ||||||
26 | family residence that is occupied as a residence by a person |
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1 | who (i) resides in a low-income area, (ii) has a household | ||||||
2 | income that does not exceed the maximum income limitation, | ||||||
3 | (iii) has a legal or equitable ownership interest in the | ||||||
4 | property as lessee, (iv) is liable for the payment of real | ||||||
5 | property taxes on that property, and (v) who has occupied this | ||||||
6 | residence for 5 years or more. | ||||||
7 | The amount of the exemption is the equalized assessed value | ||||||
8 | of the residence in the taxable year for which application is | ||||||
9 | made minus the base amount. | ||||||
10 | When the applicant is a surviving spouse of an applicant | ||||||
11 | for a prior year for the same residence for which an exemption | ||||||
12 | under this Section has been granted, the base year and base | ||||||
13 | amount for that residence are the same as for the applicant for | ||||||
14 | the prior year. | ||||||
15 | Each year at the time the assessment books are certified to | ||||||
16 | the County Clerk, the Board of Review or Board of Appeals shall | ||||||
17 | give to the County Clerk a list of the assessed values of | ||||||
18 | improvements on each parcel qualifying for this exemption that | ||||||
19 | were added after the base year for this parcel and that | ||||||
20 | increased the assessed value of the property. | ||||||
21 | In the case of land improved with an apartment building | ||||||
22 | owned and operated as a cooperative or a building that is a | ||||||
23 | life care facility that qualifies as a cooperative, the maximum | ||||||
24 | reduction from the equalized assessed value of the property is | ||||||
25 | limited to the sum of the reductions calculated for each unit | ||||||
26 | occupied as a residence by a person or persons (i) residing in |
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1 | a low-income area, (ii) with a household income that does not | ||||||
2 | exceed the maximum income limitation, (iii) who are liable, by | ||||||
3 | contract with the owner or owners of record, for paying real | ||||||
4 | property taxes on the property, (iv) who is an owner of record | ||||||
5 | of a legal or equitable interest in the cooperative apartment | ||||||
6 | building, other than a leasehold interest, and (v) who have | ||||||
7 | occupied the residence for 5 years or more. In the instance of | ||||||
8 | a cooperative where a homestead exemption has been granted | ||||||
9 | under this Section, the cooperative association or its | ||||||
10 | management firm shall credit the savings resulting from that | ||||||
11 | exemption only to the apportioned tax liability of the owner | ||||||
12 | who qualified for the exemption. Any person who willfully | ||||||
13 | refuses to credit that savings to an owner who qualifies for | ||||||
14 | the exemption is guilty of a Class B misdemeanor. | ||||||
15 | When a homestead exemption has been granted under this | ||||||
16 | Section and an applicant then becomes a resident of a facility | ||||||
17 | licensed under the Assisted Living and Shared Housing Act, the | ||||||
18 | Nursing Home Care Act, the Specialized Mental Health | ||||||
19 | Rehabilitation Act of 2013, the ID/DD Community Care Act, or | ||||||
20 | the MC/DD Act, the exemption shall be granted in subsequent | ||||||
21 | years so long as the residence (i) continues to be occupied by | ||||||
22 | the qualified applicant's spouse or (ii) if remaining | ||||||
23 | unoccupied, is still owned by the qualified applicant for the | ||||||
24 | homestead exemption. | ||||||
25 | When married persons maintain separate residences, the | ||||||
26 | exemption provided for in this Section may be claimed by only |
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1 | one of such persons and for only one residence. | ||||||
2 | In counties having 3,000,000 or more inhabitants, to | ||||||
3 | receive the exemption, a person may submit an application to | ||||||
4 | the chief county assessment officer of the county in which the | ||||||
5 | property is located during such period as may be specified by | ||||||
6 | the chief county assessment officer. The chief county | ||||||
7 | assessment officer in counties of 3,000,000 or more inhabitants | ||||||
8 | shall annually give notice of the application period by mail or | ||||||
9 | by publication. In counties having less than 3,000,000 | ||||||
10 | inhabitants, to receive the exemption, a person shall submit an | ||||||
11 | application by July 1 of each taxable year to the chief county | ||||||
12 | assessment officer of the county in which the property is | ||||||
13 | located. A county having less than 3,000,000 inhabitants may, | ||||||
14 | by ordinance, establish a date for submission of applications | ||||||
15 | that is different than July 1. The applicant shall submit with | ||||||
16 | the application an affidavit verifying the applicant's | ||||||
17 | qualifications for the exemption under this Section. The | ||||||
18 | Department shall establish, by rule, a method for verifying the | ||||||
19 | accuracy of such affidavits, and the chief county assessment | ||||||
20 | officer may conduct audits of any taxpayer claiming an | ||||||
21 | exemption under this Section to verify that the taxpayer is | ||||||
22 | eligible to receive the exemption. Each application shall | ||||||
23 | contain or be verified by a written declaration that it is made | ||||||
24 | under the penalties of perjury. A taxpayer's signing a | ||||||
25 | fraudulent application under this Act is perjury, as defined in | ||||||
26 | Section 32-2 of the Criminal Code of 2012. The applications |
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1 | shall be clearly marked as applications for the Resident | ||||||
2 | Low-Income Assessment Freeze Homestead Exemption and must | ||||||
3 | contain a notice that any taxpayer who receives the exemption | ||||||
4 | is subject to an audit by the chief county assessment officer. | ||||||
5 | If an applicant fails to file the application required by | ||||||
6 | this Section in a timely manner and this failure to file is due | ||||||
7 | to a mental or physical condition sufficiently severe so as to | ||||||
8 | render the applicant incapable of filing the application in a | ||||||
9 | timely manner, the chief county assessment officer may extend | ||||||
10 | the filing deadline for a period of 30 days after the applicant | ||||||
11 | regains the capability to file the application, but in no case | ||||||
12 | may the filing deadline be extended beyond 3 months of the | ||||||
13 | original filing deadline. In order to receive the extension | ||||||
14 | provided in this paragraph, the applicant shall provide the | ||||||
15 | chief county assessment officer with a signed statement from | ||||||
16 | the applicant's physician, advanced practice nurse, or | ||||||
17 | physician assistant stating the nature and extent of the | ||||||
18 | condition, that, in the physician's, advanced practice | ||||||
19 | nurse's, or physician assistant's opinion, the condition was so | ||||||
20 | severe that it rendered the applicant incapable of filing the | ||||||
21 | application in a timely manner, and the date on which the | ||||||
22 | applicant regained the capability to file the application. | ||||||
23 | The chief county assessment officer may determine the | ||||||
24 | eligibility of a life care facility that qualifies as a | ||||||
25 | cooperative to receive the benefits provided by this Section by | ||||||
26 | use of an affidavit, application, visual inspection, |
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1 | questionnaire, or other reasonable method in order to insure | ||||||
2 | that the tax savings resulting from the exemption are credited | ||||||
3 | by the management firm to the apportioned tax liability of each | ||||||
4 | qualifying resident. The chief county assessment officer may | ||||||
5 | request reasonable proof that the management firm has so | ||||||
6 | credited that exemption. | ||||||
7 | Except as provided in this Section, all information | ||||||
8 | received by the chief county assessment officer or the | ||||||
9 | Department from applications filed under this Section, or from | ||||||
10 | any investigation conducted under the provisions of this | ||||||
11 | Section, shall be confidential, except for official purposes or | ||||||
12 | pursuant to official procedures for collection of any State or | ||||||
13 | local tax or enforcement of any civil or criminal penalty or | ||||||
14 | sanction imposed by this Act or by any statute or ordinance | ||||||
15 | imposing a State or local tax. Any person who divulges any such | ||||||
16 | information in any manner, except in accordance with a proper | ||||||
17 | judicial order, is guilty of a Class A misdemeanor. | ||||||
18 | Nothing contained in this Section shall prevent the | ||||||
19 | Director or chief county assessment officer from publishing or | ||||||
20 | making available reasonable statistics concerning the | ||||||
21 | operation of the exemption contained in this Section in which | ||||||
22 | the contents of claims are grouped into aggregates in such a | ||||||
23 | way that information contained in any individual claim shall | ||||||
24 | not be disclosed. | ||||||
25 | (d) Each Chief County Assessment Officer shall annually | ||||||
26 | publish a notice of availability of the exemption provided |
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1 | under this Section. The notice shall be published at least 60 | ||||||
2 | days but no more than 75 days prior to the date on which the | ||||||
3 | application must be submitted to the Chief County Assessment | ||||||
4 | Officer of the county in which the property is located. The | ||||||
5 | notice shall appear in a newspaper of general circulation in | ||||||
6 | the county. | ||||||
7 | Notwithstanding Sections 6 and 8 of the State Mandates Act, | ||||||
8 | no reimbursement by the State is required for the | ||||||
9 | implementation of any mandate created by this Section.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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