Illinois General Assembly - Full Text of HB3808

LRB104 11442 HLH 21530 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3808

Introduced 2/18/2025, by Rep. Justin Slaughter - Anthony DeLuca, Michael Crawford, Yolonda Morris, Michelle Mussman, et al.

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1030 new

Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Circuit Breaker Property Tax Relief Act.

Section 5. Purpose. The purpose of this Act is to assist homeowners in this State to retain private housing of their choice, to relieve those residents from the burdens of extraordinary property tax spikes, and to preserve the character and unique qualities of the neighborhoods in which they live.

Section 10. Definitions. As used in this Act, unless the context otherwise requires, words and phrases have the following meanings.

"Claimant" means a homeowner who has filed a claim for a circuit breaker property tax relief grant under this Act.

"Claim year" means the calendar year prior to the period of time during which a claimant may file an application for benefits under this Act.

"Department" means the Department of Revenue.

"Federal poverty level" means the federal poverty income guidelines as determined annually by the United States Department of Health and Human Services and updated periodically in the Federal Register by that Department under the authority of 42 U.S.C. 9902(2).

"Household" means a claimant or a claimant and his or her spouse, if any, living together in the same residence. An additional resident may be counted in determining household size.

"Household income" means the combined income of the members of a household.

"Income" means adjusted gross income, properly reportable for federal income tax purposes under the provisions of the Internal Revenue Code, modified by adding thereto the sum of the following amounts to the extent deducted or excluded from gross income in the computation of adjusted gross income:

(1) An amount equal to all amounts paid or accrued as interest or dividends during the taxable year;

(2) An amount equal to the amount of tax imposed by the Illinois Income Tax Act paid for the taxable year;

(3) An amount equal to all amounts received during the taxable year as an annuity under an annuity, endowment or life insurance contract or under any other contract or agreement;

(4) An amount equal to the amount of benefits paid under the Federal Social Security Act during the taxable year;

(5) An amount equal to the amount of benefits paid under the Railroad Retirement Act during the taxable year;

(6) An amount equal to the total amount of cash public assistance payments received from any governmental agency during the taxable year other than benefits received pursuant to this Act;

(7) An amount equal to any net operating loss carryover deduction or capital loss carryover deduction during the taxable year; and

(8) An amount equal to any benefits received under the Workers' Compensation Act or the Workers' Occupational Diseases Act during the taxable year.

"Income" does not include any distributions or items of income described under subparagraph (X) of paragraph (2) of subsection (a) of Section 203 of the Illinois Income Tax Act.

"Income eligibility limitation" means a household income not to exceed 4 times the federal poverty level for the household size. As an alternative income valuation, a homeowner who is enrolled in any of the following programs may be presumed to have household income that does not exceed the maximum income limitation for that tax year as required by this Section: Aid to the Aged, Blind or Disabled (AABD) Program or the Supplemental Nutrition Assistance Program (SNAP), both of which are administered by the Department of Human Services; the Low Income Home Energy Assistance Program (LIHEAP), which is administered by the Department of Commerce and Economic Opportunity; The Benefit Access program, which is administered by the Department on Aging; and the Senior Citizens Real Estate Tax Deferral Program.

"Internal Revenue Code" means the United States Internal Revenue Code of 1986 or any successor law or laws relating to federal income taxes in effect for the year.

"Property taxes accrued" means the ad valorem property taxes levied against a residence, but does not include special assessments, interest, or charges for service. In the case of real estate improved with a multi-dwelling or multipurpose building, "property taxes accrued" means property taxes levied against a residence within such a building in an amount equal to the same percentage of the total property taxes levied against that real estate as improved as the value of the residence is to the total value of the building. If the building is a condominium, the percentage shall be that set forth for each residence in the condominium declaration. If the multi-dwelling building is owned and operated as a cooperative, the value of an individual residence is the value of the interest in the cooperative held by the owner of record of the legal or equitable interest, other than a leasehold interest, in the cooperative which confers the right to occupy that residence. In determining the amount of grant under Section 20, the applicable "property taxes accrued", as determined under this Section, are those due and owing for the last preceding taxable year.

In addition, if the residence is a mobile home as defined in and subject to the tax imposed by the Mobile Home Local Services Tax Act, "property taxes accrued" includes the amount of privilege tax paid during the calendar year for which benefits are claimed under that Act on that mobile home. If (i) the residence is a mobile home, (ii) the resident is the record owner of the property upon which the mobile home is located, and (iii) the resident is liable for the taxes imposed under the Property Tax Code for both the mobile home and the property, then "property taxes accrued" includes the amount of property taxes paid on both the mobile home and the property upon which the mobile home is located.

"Property tax bill spike" means that the home has not been improved other than by routine maintenance, has been classed the same way since the year prior to the last reassessment prior to 2022, has had the same owner since the year prior to the last reassessment prior to 2022 or was inherited from the same owner, and that the property taxes accrued for the property have grown at least 25% year over year in any single year since the year prior to the last reassessment prior to 2022, provided that a tax bill increase of $500 or less shall not constitute a bill spike.

"Residence" means the principal dwelling place occupied in this State by a household and so much of the surrounding land as is reasonably necessary for use of the dwelling as a home, and includes rental residential property owned by the occupant within a multipurpose building. If the assessor has established a specific legal description for a portion of property constituting the residence, then that portion of property shall be deemed "residence" for the purposes of this Act.

"Taxable year" means the calendar year during which ad valorem property taxes payable in the next succeeding calendar year were levied.

Section 15. Circuit Breaker Property Tax Relief Fund.

(a) There is created in the State treasury a Circuit Breaker Property Tax Relief Fund.

(b) The Circuit Breaker Property Tax Relief Fund may accept funds from the State and from other entities. Once grants have been paid, any remaining funds shall be returned first to the State and then to other entities that may have contributed funds. Other entities that contribute funds may elect to leave funds in the Circuit Breaker Property Tax Relief Fund for payments related to subsequent tax years.

(c) Payments from the Circuit Breaker Property Tax Relief Fund on behalf of or for the benefit of claimants shall be made to coincide as closely as possible with the final installment of property tax bills and may be issued directly to local taxing bodies on behalf of the claimant, provided that the property tax bill for claimants is reduced by the amount of their claim, whether through an abatement or other means.

Section 20. Amount of grant.

(a) Any individual who: (i) is domiciled in this State; (ii) is eligible for and receives either a general homestead exemption under Section 15-175 of the Property Tax Code or a general alternative homestead exemption under Section 15-176 of the Property Tax Code; (iii) has experienced property tax bill spikes; and (iv) has an income that meets the income eligibility limitation is eligible for a grant of a portion of their bill spike.

(b) Except as otherwise provided in this Act, the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike.

(c) If title to the residence is held jointly by the claimant with a person who is not a member of his or her household, the amount of property taxes accrued used in computing the amount of grant to which he or she is entitled shall be the same percentage of property taxes accrued as is the percentage of ownership held by the claimant in the residence.

Section 25. Application.

(a) The Chief County Assessment Officer shall establish the content, required eligibility and identification information, use of social security numbers, and manner of applying for benefits in a simplified format under this Act.

(b) Applications for grants under this Act shall be filed online.

(c) Applications must be filed during the time period prescribed by the Chief County Assessment Officer.

Section 30. Procedure.

(a) Claims must be filed after January 1 on forms prescribed by the Chief County Assessment Officer. No claim may be filed more than one year after December 31 of the tax year for which the claim is filed.

(b) The right to file a claim under this Act shall be personal to the claimant and shall not survive his death, but such right may be exercised on behalf of a claimant by his legal guardian or attorney-in-fact. If a claimant dies after having filed a timely claim, the amount thereof shall be disbursed on behalf of a person who inherited title to the house, provided that such person resided with the claimant at the time he or she filed the claim.

(c) Only one member of a household may file a claim under this Act in any calendar year. If both members of a household are otherwise entitled to claim a grant under this Act, they must agree as to which of them will file a claim for that year.

(d) A person may not under any circumstances charge a fee to a claimant under this Act for assistance in completing an application form for a property tax relief grant under this Act.

Section 35. Administration.

(a) Upon receipt of a timely filed claim, the Chief County Assessment Officer shall determine whether the claimant is a person entitled to a grant under this Act and the amount of grant to which he is entitled under this Act. The Chief County Assessment Officer may require the claimant to furnish reasonable proof of the statements of domicile, household income, property taxes accrued and other matters on which entitlement is based, and may withhold approval of a grant until such additional proof is furnished. If the Chief County Assessment Officer provides such information from other records available to them, the claimant may rebut or augment such information.

(b) The Chief County Assessment Officer shall deny claims which have been fraudulently prepared or when he or she finds that the claimant has acquired title to his residence or has paid rent for his residence primarily for the purpose of receiving a grant under this Act.

Section 40. Payment and denial of claims.

(a) In general. The Fund shall make payments, from appropriations made for that purpose of grants to claimants under this Act and from other entities, in the amounts to which the Chief County Assessment Officer has determined they are entitled, respectively. If a claim is denied, the Chief County Assessment Officer shall cause written notice of that denial and the reasons for that denial to be sent to the claimant.

(b) Payment of claims one dollar and under. Where the amount of the grant computed under Section 20 is less than one dollar, the claimant shall receive one dollar.

(c) Right to appeal. Any person aggrieved by an action or determination arising under this Act may request in writing reconsideration of that action or determination, setting out the facts upon which the request is based.

Section 45. Fraud; error.

(a) Any person who files a fraudulent claim for a grant under this Act, or who for compensation prepares a claim for a grant and knowingly enters false information on an application for any claimant under this Act, or who fraudulently files multiple applications, files a fraudulent request for payment, is guilty of a Class 4 felony for the first offense and is guilty of a Class 3 felony for each subsequent offense.

(b) The Department may recover from a claimant any amount paid to that claimant under this Act on account of an erroneous or fraudulent claim, together with 6% interest per year. Amounts recoverable from a claimant by the Department under this Act may, but need not, be recovered by offsetting the amount owed against any future grant payable to the person under this Act.

(c) A prosecution for a violation of this Section may be commenced at any time within 3 years of the commission of that violation.

Section 50. Arrangements. No inference, implication, or presumption of legislative construction shall be drawn or made by reason of the location or grouping of any particular Section or provision of this Act.

Section 55. Severability. If any clause, sentence, Section, provision or part of this Act or the application thereof to any person or circumstance shall be adjudged to be unconstitutional, the remainder of this Act or its application to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.

Section 60. Rules.

(a) Notwithstanding any other provision to the contrary, the Chief County Assessment Officer may adopt rules regarding applications, proof of eligibility, required identification information, use of social security numbers, and counting of income.

(b) The Chief County Assessment Officer may, subject to appropriations made for that purpose:

(1) attempt to secure the cooperation of appropriate federal, State and local agencies in securing the names and addresses of persons to whom this Act pertains;

(2) prepare a mailing list of persons eligible for grants under this Act; and

(3) secure the cooperation of the Department of Revenue, other State agencies, local business establishments, and interest groups to educate the public about the application process under this Act to those eligible to file claims.

Section 900. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Circuit Breaker Property Tax Relief Fund.

Section 999. Effective date. This Act takes effect upon becoming law.