Full Text of HB2609 100th General Assembly
HB2609 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2609 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: |
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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.
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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. 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
| 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.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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