HB1518 EngrossedLRB097 06549 HLH 46633 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 Senior Citizens Real Estate Tax Deferral Act
5is amended by changing Sections 2 and 3 as follows:
 
6    (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
7    Sec. 2. Definitions. As used in this Act:
8    (a) "Taxpayer" means an individual whose household income
9for the year is no greater than: (i) $40,000 through tax year
102005; and (ii) $50,000 for tax years year 2006 through 2011;
11and (iii) $55,000 for tax year 2012 and thereafter.
12    (b) "Tax deferred property" means the property upon which
13real estate taxes are deferred under this Act.
14    (c) "Homestead" means the land and buildings thereon,
15including a condominium or a dwelling unit in a multidwelling
16building that is owned and operated as a cooperative, occupied
17by the taxpayer as his residence or which are temporarily
18unoccupied by the taxpayer because such taxpayer is temporarily
19residing, for not more than 1 year, in a licensed facility as
20defined in Section 1-113 of the Nursing Home Care Act.
21    (d) "Real estate taxes" or "taxes" means the taxes on real
22property for which the taxpayer would be liable under the
23Property Tax Code, including special service area taxes, and

 

 

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1special assessments on benefited real property for which the
2taxpayer would be liable to a unit of local government.
3    (e) "Department" means the Department of Revenue.
4    (f) "Qualifying property" means a homestead which (a) the
5taxpayer or the taxpayer and his spouse own in fee simple or
6are purchasing in fee simple under a recorded instrument of
7sale, (b) is not income-producing property, (c) is not subject
8to a lien for unpaid real estate taxes when a claim under this
9Act is filed, and (d) is not held in trust, other than an
10Illinois land trust with the taxpayer identified as the sole
11beneficiary, if the taxpayer is filing for the program for the
12first time effective as of the January 1, 2011 assessment year
13or tax year 2012 and thereafter.
14    (g) "Equity interest" means the current assessed valuation
15of the qualified property times the fraction necessary to
16convert that figure to full market value minus any outstanding
17debts or liens on that property. In the case of qualifying
18property not having a separate assessed valuation, the
19appraised value as determined by a qualified real estate
20appraiser shall be used instead of the current assessed
21valuation.
22    (h) "Household income" has the meaning ascribed to that
23term in the Senior Citizens and Disabled Persons Property Tax
24Relief and Pharmaceutical Assistance Act.
25    (i) "Collector" means the county collector or, if the taxes
26to be deferred are special assessments, an official designated

 

 

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1by a unit of local government to collect special assessments.
2(Source: P.A. 94-794, eff. 5-22-06.)
 
3    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
4    Sec. 3. A taxpayer may, on or before March 1 of each year,
5apply to the county collector of the county where his
6qualifying property is located, or to the official designated
7by a unit of local government to collect special assessments on
8the qualifying property, as the case may be, for a deferral of
9all or a part of real estate taxes payable during that year for
10the preceding year in the case of real estate taxes other than
11special assessments, or for a deferral of any installments
12payable during that year in the case of special assessments, on
13all or part of his qualifying property. The application shall
14be on a form prescribed by the Department and furnished by the
15collector, (a) showing that the applicant will be 65 years of
16age or older by June 1 of the year for which a tax deferral is
17claimed, (b) describing the property and verifying that the
18property is qualifying property as defined in Section 2, (c)
19certifying that the taxpayer has owned and occupied as his
20residence such property or other qualifying property in the
21State for at least the last 3 years except for any periods
22during which the taxpayer may have temporarily resided in a
23nursing or sheltered care home, and (d) specifying whether the
24deferral is for all or a part of the taxes, and, if for a part,
25the amount of deferral applied for. As to qualifying property

 

 

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1not having a separate assessed valuation, the taxpayer shall
2also file with the county collector a written appraisal of the
3property prepared by a qualified real estate appraiser together
4with a certificate signed by the appraiser stating that he has
5personally examined the property and setting forth the value of
6the land and the value of the buildings thereon occupied by the
7taxpayer as his residence.
8    The collector shall grant the tax deferral provided such
9deferral does not exceed funds available in the Senior Citizens
10Real Estate Deferred Tax Revolving Fund and provided that the
11owner or owners of such real property have entered into a tax
12deferral and recovery agreement with the collector on behalf of
13the county or other unit of local government, which agreement
14expressly states:
15    (1) That the total amount of taxes deferred under this Act,
16plus interest, for the year for which a tax deferral is claimed
17as well as for those previous years for which taxes are not
18delinquent and for which such deferral has been claimed may not
19exceed 80% of the taxpayer's equity interest in the property
20for which taxes are to be deferred and that, if the total
21deferred taxes plus interest equals 80% of the taxpayer's
22equity interest in the property, the taxpayer shall thereafter
23pay the annual interest due on such deferred taxes plus
24interest so that total deferred taxes plus interest will not
25exceed such 80% of the taxpayer's equity interest in the
26property. Effective as of the January 1, 2011 assessment year

 

 

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1or tax year 2012 and thereafter, the total amount of any such
2deferral shall not exceed $5,000 per taxpayer in each tax year.
3    (2) That any real estate taxes deferred under this Act and
4any interest accrued thereon at the rate of 6% per year are a
5lien on the real estate and improvements thereon until paid. No
6sale or transfer of such real property may be legally closed
7and recorded until the taxes which would otherwise have been
8due on the property, plus accrued interest, have been paid
9unless the collector certifies in writing that an arrangement
10for prompt payment of the amount due has been made with his
11office. The same shall apply if the property is to be made the
12subject of a contract of sale.
13    (3) That upon the death of the taxpayer claiming the
14deferral the heirs-at-law, assignees or legatees shall have
15first priority to the real property upon which taxes have been
16deferred by paying in full the total taxes which would
17otherwise have been due, plus interest. However, if such
18heir-at-law, assignee, or legatee is a surviving spouse, the
19tax deferred status of the property shall be continued during
20the life of that surviving spouse if the spouse is 55 years of
21age or older within 6 months of the date of death of the
22taxpayer and enters into a tax deferral and recovery agreement
23before the time when deferred taxes become due under this
24Section. Any additional taxes deferred, plus interest, on the
25real property under a tax deferral and recovery agreement
26signed by a surviving spouse shall be added to the taxes and

 

 

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

 

 

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1    If the taxes to be deferred are special assessments, the
2unit of local government making the assessments shall forward a
3copy of the agreement entered into pursuant to this Section and
4the bills for such assessments to the county collector of the
5county in which the qualifying property is located.
6(Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.