101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3401

 

Introduced , by Rep. Joyce Mason

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-168.1 new

    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.


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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,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by adding
5Section 15-168.1 as follows:
 
6    (35 ILCS 200/15-168.1 new)
7    Sec. 15-168.1. Assessment Freeze Homestead Exemption for
8Persons with Disabilities.
9    (a) This Section may be cited as the Assessment Freeze
10Homestead Exemption for Persons with Disabilities.
11    (b) As used in this Section:
12    "Applicant" means an individual who has filed an
13application under this Section.
14    "Base amount" means the base year equalized assessed value
15of the residence plus the first year's equalized assessed value
16of any added improvements which increased the assessed value of
17the residence after the base year.
18    "Base year" means the taxable year prior to the taxable
19year for which the applicant first qualifies and applies for
20the exemption, provided that, in the prior taxable year, the
21property was improved with a permanent structure that was
22occupied as a residence by the applicant who was liable for
23paying 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
2equitable interest in the property as evidenced by a written
3instrument or (ii) had a legal or equitable interest as a
4lessee in the parcel of property that was single family
5residence. If in any subsequent taxable year for which the
6applicant applies and qualifies for the exemption the equalized
7assessed value of the residence is less than the equalized
8assessed value in the existing base year (provided that such
9equalized assessed value is not based on an assessed value that
10results from a temporary irregularity in the property that
11reduces the assessed value for one or more taxable years), then
12that subsequent taxable year shall become the base year until a
13new base year is established under the terms of this paragraph.
14An equalized assessed value that is based on an assessed value
15that results from a temporary irregularity in the property that
16reduces the assessed value for one or more taxable years shall
17not be considered the lowest equalized assessed value.
18    "Chief County Assessment Officer" means the County
19Assessor or Supervisor of Assessments of the county in which
20the property is located.
21    "Equalized assessed value" means the assessed value as
22equalized by the Illinois Department of Revenue.
23    "Household" means the applicant, the spouse of the
24applicant, and all persons using the residence of the applicant
25as their principal place of residence.
26    "Household income" means the combined income of the members

 

 

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1of a household for the calendar year preceding the taxable
2year.
3    "Income" has the same meaning as provided in Section 3.07
4of the Senior Citizens and Persons with Disabilities Property
5Tax Relief Act, except that "income" does not include veteran's
6benefits.
7    "Life care facility that qualifies as a cooperative" means
8a facility as defined in Section 2 of the Life Care Facilities
9Act.
10    "Maximum income limitation" means $55,000.
11    "Person with a disability" has the meaning ascribed to that
12term in Section 15-168 of this Act.
13    "Residence" means the principal dwelling place and
14appurtenant structures used for residential purposes in this
15State occupied on January 1 of the taxable year by a household
16and so much of the surrounding land, constituting the parcel
17upon which the dwelling place is situated, as is used for
18residential purposes. If the Chief County Assessment Officer
19has established a specific legal description for a portion of
20property constituting the residence, then that portion of
21property shall be deemed the residence for the purposes of this
22Section.
23    "Taxable year" means the calendar year during which ad
24valorem property taxes payable in the next succeeding year are
25levied.
26    (c) Beginning in taxable year 2019, an assessment freeze

 

 

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1homestead exemption is granted for real property that is
2improved with a permanent structure that is occupied as a
3residence by an applicant who (i) is a person with a disability
4at any point during the taxable year, (ii) has a household
5income that does not exceed the maximum income limitation,
6(iii) is liable for paying real property taxes on the property,
7and (iv) is an owner of record of the property or has a legal or
8equitable interest in the property as evidenced by a written
9instrument. This homestead exemption shall also apply to a
10leasehold interest in a parcel of property improved with a
11permanent structure that is a single family residence that is
12occupied as a residence by a person who (i) is a person with a
13disability during the taxable year, (ii) has a household income
14that does not exceed the maximum income limitation, (iii) has a
15legal or equitable ownership interest in the property as
16lessee, and (iv) is liable for the payment of real property
17taxes on that property.
18    In counties of 3,000,000 or more inhabitants, the amount of
19the exemption for all taxable years is the equalized assessed
20value of the residence in the taxable year for which
21application is made minus the base amount. In all other
22counties, the amount of the exemption is as follows:
23        (1) For an applicant who has a household income of
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
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
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
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
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
22for a prior year for the same residence for which an exemption
23under this Section has been granted, the base year and base
24amount for that residence are the same as for the applicant for
25the prior year.
26    Each year at the time the assessment books are certified to

 

 

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1the County Clerk, the Board of Review or Board of Appeals shall
2give to the County Clerk a list of the assessed values of
3improvements on each parcel qualifying for this exemption that
4were added after the base year for this parcel and increased
5the assessed value of the property.
6    In the case of land improved with an apartment building
7owned and operated as a cooperative or a building that is a
8life care facility that qualifies as a cooperative, the maximum
9reduction from the equalized assessed value of the property is
10limited to the sum of the reductions calculated for each unit
11occupied as a residence by a person or persons (i) with a
12disability, (ii) with a household income that does not exceed
13the maximum income limitation, (iii) who is liable, by contract
14with the owner or owners of record, for paying real property
15taxes on the property, and (iv) who is an owner of record of a
16legal or equitable interest in the cooperative apartment
17building, other than a leasehold interest. In the instance of a
18cooperative where a homestead exemption has been granted under
19this Section, the cooperative association or its management
20firm shall credit the savings resulting from that exemption
21only to the apportioned tax liability of the owner who
22qualified for the exemption. Any person who willfully refuses
23to credit that savings to an owner who qualifies for the
24exemption is guilty of a Class B misdemeanor.
25    When a homestead exemption has been granted under this
26Section and an applicant then becomes a resident of a facility

 

 

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1licensed under the Assisted Living and Shared Housing Act, the
2Nursing Home Care Act, the Specialized Mental Health
3Rehabilitation Act of 2013, the ID/DD Community Care Act, or
4the MC/DD Act, the exemption shall be granted in subsequent
5years so long as the residence (i) continues to be occupied by
6the qualified applicant's spouse or (ii) if remaining
7unoccupied, is still owned by the qualified applicant for the
8homestead exemption.
9    When an individual dies who would have qualified for an
10exemption under this Section, and the surviving spouse does not
11independently qualify for this exemption because of he or she
12is not a person with a disability, the exemption under this
13Section shall be granted to the surviving spouse for the
14taxable year preceding and the taxable year of the death,
15provided that the surviving spouse meets all other
16qualifications for the granting of this exemption for those
17years.
18    When married persons maintain separate residences, the
19exemption provided for in this Section may be claimed by only
20one of such persons and for only one residence.
21    To receive the exemption, a person shall submit an
22application by July 1 of each taxable year to the Chief County
23Assessment Officer of the county in which the property is
24located. A county may, by ordinance, establish a date for
25submission of applications that is different than July 1. The
26applicant shall submit with the application an affidavit of the

 

 

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1applicant's total household income, marital status (and if
2married the name and address of the applicant's spouse, if
3known), disability, and principal dwelling place of members of
4the household on January 1 of the taxable year. The Department
5shall establish, by rule, a method for verifying the accuracy
6of affidavits filed by applicants under this Section, and the
7Chief County Assessment Officer may conduct audits of any
8taxpayer claiming an exemption under this Section to verify
9that the taxpayer is eligible to receive the exemption. Each
10application shall contain or be verified by a written
11declaration that it is made under the penalties of perjury. A
12taxpayer's signing a fraudulent application under this Act is
13perjury, as defined in Section 32-2 of the Criminal Code of
142012. The applications shall be clearly marked as applications
15for the Assessment Freeze Homestead Exemption for Persons with
16a Disability and must contain a notice that any taxpayer who
17receives the exemption is subject to an audit by the Chief
18County Assessment Officer.
19    Notwithstanding any other provision to the contrary, if an
20applicant fails to file the application required by this
21Section in a timely manner and this failure to file is due to a
22mental or physical condition sufficiently severe so as to
23render the applicant incapable of filing the application in a
24timely manner, the Chief County Assessment Officer may extend
25the filing deadline for a period of 30 days after the applicant
26regains the capability to file the application, but in no case

 

 

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1may the filing deadline be extended beyond 3 months of the
2original filing deadline. In order to receive the extension
3provided in this paragraph, the applicant shall provide the
4Chief County Assessment Officer with a signed statement from
5the applicant's physician, advanced practice nurse, or
6physician assistant stating the nature and extent of the
7condition, that, in the physician's, advanced practice
8nurse's, or physician assistant's opinion, the condition was so
9severe that it rendered the applicant incapable of filing the
10application in a timely manner, and the date on which the
11applicant regained the capability to file the application.
12    Application shall be made during the application period in
13effect for the county of his or her residence.
14    The Chief County Assessment Officer may determine the
15eligibility of a life care facility that qualifies as a
16cooperative to receive the benefits provided by this Section by
17use of an affidavit, application, visual inspection,
18questionnaire, or other reasonable method in order to insure
19that the tax savings resulting from the exemption are credited
20by the management firm to the apportioned tax liability of each
21qualifying resident. The Chief County Assessment Officer may
22request reasonable proof that the management firm has so
23credited that exemption.
24    Except as provided in this Section, all information
25received by the chief county assessment officer or the
26Department from applications filed under this Section, or from

 

 

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1any investigation conducted under the provisions of this
2Section, shall be confidential, except for official purposes or
3pursuant to official procedures for collection of any State or
4local tax or enforcement of any civil or criminal penalty or
5sanction imposed by this Act or by any statute or ordinance
6imposing a State or local tax. Any person who divulges any such
7information in any manner, except in accordance with a proper
8judicial order, is guilty of a Class A misdemeanor.
9    Nothing contained in this Section shall prevent the
10Director or chief county assessment officer from publishing or
11making available reasonable statistics concerning the
12operation of the exemption contained in this Section in which
13the contents of claims are grouped into aggregates in such a
14way that information contained in any individual claim shall
15not be disclosed.
16    (d) Each Chief County Assessment Officer shall annually
17publish a notice of availability of the exemption provided
18under this Section. The notice shall be published at least 60
19days but no more than 75 days prior to the date on which the
20application must be submitted to the Chief County Assessment
21Officer of the county in which the property is located. The
22notice shall appear in a newspaper of general circulation in
23the county.
24    Notwithstanding Sections 6 and 8 of the State Mandates Act,
25no reimbursement by the State is required for the
26implementation of any mandate created by this Section.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.