101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5430

 

Introduced , by Rep. Grant Wehrli - Deanne M. Mazzochi - Amy Grant, Lindsay Parkhurst and Tom Weber

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates a credit for individual taxpayers whose income does not exceed the maximum income limitation and who are (i) 65 years of age or older during the taxable year or (ii) 100% disabled during the taxable year. Provides that the amount of the credit shall be based upon the amount by which the total residential property taxes paid by the taxpayer during the taxable year exceeds a stated percent of income. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5430LRB101 18949 HLH 68408 b

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 Illinois Income Tax Act is amended by adding
5Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Supplemental property tax credit.
8    (a) In addition to any other credit allowed under this Act,
9for taxable years ending on or after December 31, 2021, an
10individual taxpayer whose income does not exceed the maximum
11income limitation and who is (i) 65 years of age or older
12during the taxable year or (ii) 100% disabled during the
13taxable year is entitled to a credit against the taxes imposed
14by subsections (a) and (b) of Section 201 as provided in this
15Section.
16    (b) The amount of the credit shall be determined from a
17table of credits to be prepared by the Department based upon
18the amount by which the total residential property taxes paid
19by the taxpayer during the taxable year exceeds the percent of
20income in the following list:
21        (1) if the taxpayer's adjusted gross income is not more
22    than the base amount, then the percent is zero percent; and
23        (2) if the taxpayer's adjusted gross income is more

 

 

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1    than the base amount, then the percent is 1/16%
2    accumulative per $300 from 0% to 4%.
3    Each credit calculated under this subsection (b) shall be
4rounded to the nearest whole dollar. In no event may the credit
5exceed $750 in rent constituting property taxes actually paid
6or $1,100 in actual property tax paid. If a claimant occupies 2
7or more different homesteads in the same calendar year, and one
8homestead is calculated by rent constituting property taxes and
9the other homestead is calculated by actual property taxes
10paid, then the maximum credit shall be: (i) $750 multiplied by
11a fraction the numerator of which is the number of days during
12the taxable year in which the claimant occupied a homestead
13calculated by rent constituting property taxes and the
14denominator of which is 365; plus (ii) $1,100 multiplied by a
15fraction the numerator of which is the number of days during
16the taxable year in which the claimant occupied a homestead
17calculated by actual property taxes paid and the denominator of
18which is 365.
19    (c) As used in this Section:
20    "Accumulative" means an increase by continuous or repeated
21application of the percent to the income increment at each $300
22level.
23    "Base amount" means $14,300.
24    "Gross rent" means the amount paid by a claimant to a
25landlord for the rental, at arm's length, of a homestead during
26the calendar year, exclusive of charges for health and personal

 

 

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1care services and food furnished as part of the rental
2agreement, whether or not expressly set out in the rental
3agreement. If the Department determines that the landlord and
4tenant have not dealt at arm's length, and that the gross rent
5is excessive, then he shall determine the gross rent based upon
6a reasonable amount of rent. Gross rent shall be deemed to be
7paid only if actually paid prior to the date a return is filed.
8The Department may adopt rules requiring a return of
9information by a landlord receiving rent, certifying for a
10calendar year the amount of gross rent received from a tenant
11claiming a property tax credit and shall, by rule, provide a
12method for certification by the claimant of the amount of gross
13rent paid for any calendar year for which a claim is made. The
14Department may require a landlord or a tenant or both to
15provide data relating to health and personal care services and
16to food. Neither a landlord nor a tenant may be required to
17provide data relating to utilities, furniture, home
18furnishings or appliances.
19    "Maximum income limitation" means $30,000.
20    "Rent constituting property taxes accrued" means 20% of the
21gross rent paid by a claimant and spouse in the calendar year.
22    "Total residential property taxes" means property taxes
23paid, exclusive of special assessments, penalties, interest,
24and charges for service levied on a claimant's homestead in any
25calendar year. Property taxes shall qualify for the credit only
26if actually paid prior to the date a return is filed. The

 

 

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1Department shall require a tax receipt or other proof of
2property tax payment. If a homestead is owned only partially by
3claimant, then "property taxes accrued" is that part of
4property taxes levied on the homestead which was actually paid
5by the claimant. If a claimant owns and occupies 2 or more
6different homesteads in the same calendar year, property taxes
7accrued shall be the sum of taxes paid by the claimant and
8allocable to those several properties occupied by the claimant
9as a homestead for the year.
10    (d) In no event shall a credit under this Section reduce a
11taxpayer's liability to less than zero. If the amount of credit
12exceeds the tax liability for the year, the excess may be
13carried forward and applied to the tax liability for the 5
14taxable years following the excess credit year. The tax credit
15shall be applied to the earliest year for which there is a tax
16liability. If there are credits for more than one year that are
17available to offset liability, the earlier credit shall be
18applied first.
19    (e) This Section is exempt from Section 250.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.