Full Text of HB0143 102nd General Assembly
HB0143 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0143 Introduced 1/14/2021, by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: |
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320 ILCS 30/2 | from Ch. 67 1/2, par. 452 |
320 ILCS 30/3 | from Ch. 67 1/2, par. 453 |
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Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the income limitation under the Act is $65,000 beginning tax year 2021 (currently, $55,000). Provides that, beginning with the 2021 tax year, the total amount of any such deferral shall not exceed $12,000 per taxpayer in each tax year and the interest shall accrue at the rate of 2% (currently, 6%). Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Senior Citizens Real Estate Tax Deferral | 5 | | Act is 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 | 9 | | for the year
is no greater than: (i) $40,000 through tax year | 10 | | 2005; (ii) $50,000 for tax years 2006 through 2011; and (iii) | 11 | | $55,000 for tax years year 2012 through 2020; and (iv) $65,000 | 12 | | for tax year 2021 and thereafter.
| 13 | | (b) "Tax deferred property" means the property upon which | 14 | | real
estate taxes are deferred under this Act.
| 15 | | (c) "Homestead" means the land and buildings thereon, | 16 | | including a
condominium or a dwelling unit in a multidwelling | 17 | | building that is owned and
operated as a cooperative, occupied | 18 | | by the taxpayer as his residence or which
are temporarily | 19 | | unoccupied by the taxpayer because such taxpayer is | 20 | | temporarily
residing, for not more than 1 year, in a licensed | 21 | | facility as defined in
Section 1-113 of the Nursing Home Care | 22 | | Act.
| 23 | | (d) "Real estate taxes" or "taxes" means the taxes on real |
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| 1 | | property for
which the taxpayer would be liable under the | 2 | | Property Tax Code, including special service area taxes, and | 3 | | special assessments on
benefited real property for which the | 4 | | taxpayer would be liable to a unit of
local government.
| 5 | | (e) "Department" means the Department of Revenue.
| 6 | | (f) "Qualifying property" means a homestead which (a) the | 7 | | taxpayer or the
taxpayer and his spouse own in fee simple or | 8 | | are purchasing in fee simple under
a recorded instrument of | 9 | | sale, (b) is not income-producing property, (c) is not
subject | 10 | | to a lien for unpaid real estate taxes when a claim under this | 11 | | Act is
filed, and (d) is not held in trust, other than an | 12 | | Illinois land trust with the taxpayer identified as the sole | 13 | | beneficiary, if the taxpayer is filing for the program for the | 14 | | first time effective as of the January 1, 2011 assessment year | 15 | | or tax year 2012 and thereafter.
| 16 | | (g) "Equity interest" means the current assessed valuation | 17 | | of the qualified
property times the fraction necessary to | 18 | | convert that figure to full market
value minus any outstanding | 19 | | debts or liens on that property. In the case of
qualifying | 20 | | property not having a separate assessed valuation, the | 21 | | appraised
value as determined by a qualified real estate | 22 | | appraiser shall be used instead
of the current assessed | 23 | | valuation.
| 24 | | (h) "Household income" has the meaning ascribed to that | 25 | | term in the Senior
Citizens and Persons with Disabilities | 26 | | Property Tax Relief
Act.
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| 1 | | (i) "Collector" means the county collector or, if the | 2 | | taxes to be deferred
are special assessments, an official | 3 | | designated by a unit of local government
to collect special | 4 | | assessments.
| 5 | | (Source: P.A. 99-143, eff. 7-27-15.)
| 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,
| 8 | | apply to the county collector of the county where his | 9 | | qualifying
property is located, or to the official designated | 10 | | by a unit of local
government to collect special assessments | 11 | | on the qualifying property, as the
case may be, for a deferral | 12 | | of all or a part of real estate taxes payable
during that year | 13 | | for the preceding year in the case of real estate taxes
other | 14 | | than special assessments, or for a deferral of any | 15 | | installments payable
during that year in the case of special | 16 | | assessments, on all or part of his
qualifying property. The | 17 | | application shall be on a form prescribed by the
Department | 18 | | and furnished by the collector,
(a) showing that the applicant
| 19 | | will be 65 years of age or older by June 1 of the year for | 20 | | which a tax
deferral is claimed, (b) describing the property | 21 | | and verifying that the
property is qualifying property as | 22 | | defined in Section 2, (c) certifying
that the taxpayer has | 23 | | owned and occupied as his residence such
property or other | 24 | | qualifying property in the State for at least the last 3
years | 25 | | except for any periods during which the taxpayer may have |
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| 1 | | temporarily
resided in a nursing or sheltered care home, and | 2 | | (d) specifying whether
the deferral is for all or a part of the | 3 | | taxes, and, if for a part, the amount
of deferral applied for. | 4 | | As to qualifying property not having a separate
assessed | 5 | | valuation, the taxpayer shall also file with the county | 6 | | collector a
written appraisal of the property prepared by a | 7 | | qualified real estate appraiser
together with a certificate | 8 | | signed by the appraiser stating that he has
personally | 9 | | examined the property and setting forth the value of the land | 10 | | and
the value of the buildings thereon occupied by the | 11 | | taxpayer as his residence.
| 12 | | The collector shall grant the tax deferral provided such | 13 | | deferral does not
exceed funds available in the Senior | 14 | | Citizens Real Estate Deferred Tax
Revolving Fund and provided | 15 | | that the owner or owners of such real property have
entered | 16 | | into a tax deferral and recovery agreement with the collector | 17 | | on behalf
of the county or other unit of local government, | 18 | | which agreement expressly
states:
| 19 | | (1) That the total amount of taxes deferred under this | 20 | | Act, plus
interest, for the year for which a tax deferral is | 21 | | claimed as well
as for those previous years for which taxes are | 22 | | not delinquent and
for which such deferral has been claimed | 23 | | may not exceed 80%
of the taxpayer's equity interest in the | 24 | | property for which taxes are
to be deferred and that, if the | 25 | | total deferred taxes plus interest equals
80% of the | 26 | | taxpayer's equity interest in the property, the taxpayer shall
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| 1 | | thereafter pay the annual interest due on such deferred taxes | 2 | | plus interest
so that total deferred taxes plus interest will | 3 | | not exceed such 80% of the
taxpayer's equity interest in the | 4 | | property. Effective as of the January 1, 2011 assessment year | 5 | | or tax year 2012 and through the 2020 tax year thereafter , the | 6 | | total amount of any such deferral shall not exceed $5,000 per | 7 | | taxpayer in each tax year. Beginning with the 2021 tax year and | 8 | | thereafter, the total amount of any such deferral shall not | 9 | | exceed $12,000 per taxpayer in each tax year.
| 10 | | (2) That any real estate taxes deferred under this Act and | 11 | | any
interest accrued thereon at the rate of 2% 6% per year are | 12 | | a lien on the real
estate and improvements thereon until paid. | 13 | | No sale or transfer of such
real property may be legally closed | 14 | | and recorded until the taxes
which would otherwise have been | 15 | | due on the property, plus accrued
interest, have been paid | 16 | | unless the collector certifies in
writing that an arrangement | 17 | | for prompt payment of the amount due
has been made with his | 18 | | office. The same shall apply if the
property is to be made the | 19 | | subject of a contract of sale.
| 20 | | (3) That upon the death of the taxpayer claiming the | 21 | | deferral
the heirs-at-law, assignees or legatees shall have | 22 | | first
priority to the real property upon which taxes have been | 23 | | deferred
by paying in full the total taxes which would | 24 | | otherwise have been due,
plus interest. However, if such | 25 | | heir-at-law, assignee, or legatee
is a surviving spouse, the | 26 | | tax deferred status of the
property shall be continued during |
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| 1 | | the life of that surviving spouse
if the spouse is 55 years of | 2 | | age or older within 6 months of the
date of death of the | 3 | | taxpayer and enters into a tax deferral and
recovery agreement | 4 | | before the time when deferred taxes become due
under this | 5 | | Section. Any additional taxes deferred, plus interest,
on the | 6 | | real property under a tax deferral and recovery agreement
| 7 | | signed by a surviving spouse shall be added to the taxes and | 8 | | interest
which would otherwise have been due, and the payment | 9 | | of which has been
postponed during the life of such surviving | 10 | | spouse, in determining
the 80% equity requirement provided by | 11 | | this Section.
| 12 | | (4) That if the taxes due, plus interest, are not paid by | 13 | | the heir-at-law,
assignee or legatee or if payment is not | 14 | | postponed during the life of a
surviving spouse, the deferred | 15 | | taxes and interest shall be recovered from the
estate of the | 16 | | taxpayer within one year of the date of his death. In addition,
| 17 | | deferred real estate taxes and any interest accrued thereon | 18 | | are due within 90
days after any tax deferred property ceases | 19 | | to be qualifying property as
defined in Section 2.
| 20 | | If payment is not made when required by this Section, | 21 | | foreclosure proceedings
may be instituted under the Property | 22 | | Tax Code.
| 23 | | (5) That any joint owner has given written prior approval | 24 | | for such
agreement,
which written approval shall be made a | 25 | | part of such agreement.
| 26 | | (6) That a guardian for a person under legal disability |
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| 1 | | appointed for a
taxpayer who otherwise qualifies under this | 2 | | Act may act for the taxpayer in
complying with this Act.
| 3 | | (7) That a taxpayer or his agent has provided to the | 4 | | satisfaction of the
collector, sufficient evidence that the | 5 | | qualifying property on which the taxes
are to be deferred is | 6 | | insured against fire or casualty loss for at least the
total | 7 | | amount of taxes which have been deferred.
| 8 | | If the taxes to be deferred are special assessments, the | 9 | | unit of local
government making the assessments shall forward | 10 | | a copy of the agreement
entered into pursuant to this Section | 11 | | and the bills for such assessments to
the county collector of | 12 | | the county in which the qualifying property is located.
| 13 | | (Source: P.A. 97-481, eff. 8-22-11.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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