97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0226

 

Introduced 01/21/11, by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
320 ILCS 30/3  from Ch. 67 1/2, par. 453

    Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that interest charged for taxes deferred under the Act shall be at the rate of 3% per year (instead of 6% per year) beginning in taxable year 2011. 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 Senior Citizens Real Estate Tax Deferral Act
5is amended by changing Section 3 as follows:
 
6    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
7    Sec. 3. A taxpayer may, on or before March 1 of each year,
8apply to the county collector of the county where his
9qualifying property is located, or to the official designated
10by a unit of local government to collect special assessments on
11the qualifying property, as the case may be, for a deferral of
12all or a part of real estate taxes payable during that year for
13the preceding year in the case of real estate taxes other than
14special assessments, or for a deferral of any installments
15payable during that year in the case of special assessments, on
16all or part of his qualifying property. The application shall
17be on a form prescribed by the Department and furnished by the
18collector, (a) showing that the applicant will be 65 years of
19age or older by June 1 of the year for which a tax deferral is
20claimed, (b) describing the property and verifying that the
21property is qualifying property as defined in Section 2, (c)
22certifying that the taxpayer has owned and occupied as his
23residence such property or other qualifying property in the

 

 

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1State for at least the last 3 years except for any periods
2during which the taxpayer may have temporarily resided in a
3nursing or sheltered care home, and (d) specifying whether the
4deferral is for all or a part of the taxes, and, if for a part,
5the amount of deferral applied for. As to qualifying property
6not having a separate assessed valuation, the taxpayer shall
7also file with the county collector a written appraisal of the
8property prepared by a qualified real estate appraiser together
9with a certificate signed by the appraiser stating that he has
10personally examined the property and setting forth the value of
11the land and the value of the buildings thereon occupied by the
12taxpayer as his residence.
13    The collector shall grant the tax deferral provided such
14deferral does not exceed funds available in the Senior Citizens
15Real Estate Deferred Tax Revolving Fund and provided that the
16owner or owners of such real property have entered into a tax
17deferral and recovery agreement with the collector on behalf of
18the county or other unit of local government, which agreement
19expressly states:
20    (1) That the total amount of taxes deferred under this Act,
21plus interest, for the year for which a tax deferral is claimed
22as well as for those previous years for which taxes are not
23delinquent and for which such deferral has been claimed may not
24exceed 80% of the taxpayer's equity interest in the property
25for which taxes are to be deferred and that, if the total
26deferred taxes plus interest equals 80% of the taxpayer's

 

 

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1equity interest in the property, the taxpayer shall thereafter
2pay the annual interest due on such deferred taxes plus
3interest so that total deferred taxes plus interest will not
4exceed such 80% of the taxpayer's equity interest in the
5property.
6    (2) That any real estate taxes deferred under this Act and
7any interest accrued thereon at the rate of 6% per year through
8taxable year 2010 and 3% per year beginning in taxable year
92011 are a lien on the real estate and improvements thereon
10until paid. No sale or transfer of such real property may be
11legally closed and recorded until the taxes which would
12otherwise have been due on the property, plus accrued interest,
13have been paid unless the collector certifies in writing that
14an arrangement for prompt payment of the amount due has been
15made with his office. The same shall apply if the property is
16to be made the subject of a contract of sale.
17    (3) That upon the death of the taxpayer claiming the
18deferral the heirs-at-law, assignees or legatees shall have
19first priority to the real property upon which taxes have been
20deferred by paying in full the total taxes which would
21otherwise have been due, plus interest. However, if such
22heir-at-law, assignee, or legatee is a surviving spouse, the
23tax deferred status of the property shall be continued during
24the life of that surviving spouse if the spouse is 55 years of
25age or older within 6 months of the date of death of the
26taxpayer and enters into a tax deferral and recovery agreement

 

 

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1before the time when deferred taxes become due under this
2Section. Any additional taxes deferred, plus interest, on the
3real property under a tax deferral and recovery agreement
4signed by a surviving spouse shall be added to the taxes and
5interest which would otherwise have been due, and the payment
6of which has been postponed during the life of such surviving
7spouse, in determining the 80% equity requirement provided by
8this Section.
9    (4) That if the taxes due, plus interest, are not paid by
10the heir-at-law, assignee or legatee or if payment is not
11postponed during the life of a surviving spouse, the deferred
12taxes and interest shall be recovered from the estate of the
13taxpayer within one year of the date of his death. In addition,
14deferred real estate taxes and any interest accrued thereon are
15due within 90 days after any tax deferred property ceases to be
16qualifying property as defined in Section 2.
17    If payment is not made when required by this Section,
18foreclosure proceedings may be instituted under the Property
19Tax Code.
20    (5) That any joint owner has given written prior approval
21for such agreement, which written approval shall be made a part
22of such agreement.
23    (6) That a guardian for a person under legal disability
24appointed for a taxpayer who otherwise qualifies under this Act
25may act for the taxpayer in complying with this Act.
26    (7) That a taxpayer or his agent has provided to the

 

 

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1satisfaction of the collector, sufficient evidence that the
2qualifying property on which the taxes are to be deferred is
3insured against fire or casualty loss for at least the total
4amount of taxes which have been deferred.
5    If the taxes to be deferred are special assessments, the
6unit of local government making the assessments shall forward a
7copy of the agreement entered into pursuant to this Section and
8the bills for such assessments to the county collector of the
9county in which the qualifying property is located.
10(Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.