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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Senior Citizens Real Estate Tax Deferral |
5 | | Act is amended by changing Sections 2 and 3 as follows:
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6 | | (320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
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7 | | Sec. 2. Definitions. As used in this Act:
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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 2021; (iv) $65,000 for |
12 | | tax years 2022 through 2025; and (v) $55,000 for tax year 2026 |
13 | | and thereafter.
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14 | | (b) "Tax deferred property" means the property upon which |
15 | | real
estate taxes are deferred under this Act.
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16 | | (c) "Homestead" means the land and buildings thereon, |
17 | | including a
condominium or a dwelling unit in a multidwelling |
18 | | building that is owned and
operated as a cooperative, occupied |
19 | | by the taxpayer as his residence or which
are temporarily |
20 | | unoccupied by the taxpayer because such taxpayer is |
21 | | temporarily
residing, for not more than 1 year, in a licensed |
22 | | facility as defined in
Section 1-113 of the Nursing Home Care |
23 | | Act.
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1 | | (d) "Real estate taxes" or "taxes" means the taxes on real |
2 | | property for
which the taxpayer would be liable under the |
3 | | Property Tax Code, including special service area taxes, and |
4 | | special assessments on
benefited real property for which the |
5 | | taxpayer would be liable to a unit of
local government.
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6 | | (e) "Department" means the Department of Revenue.
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7 | | (f) "Qualifying property" means a homestead which (a) the |
8 | | taxpayer or the
taxpayer and his spouse own in fee simple or |
9 | | are purchasing in fee simple under
a recorded instrument of |
10 | | sale, (b) is not income-producing property, (c) is not
subject |
11 | | to a lien for unpaid real estate taxes when a claim under this |
12 | | Act is
filed, and (d) is not held in trust, other than an |
13 | | Illinois land trust with the taxpayer identified as the sole |
14 | | beneficiary, if the taxpayer is filing for the program for the |
15 | | first time effective as of the January 1, 2011 assessment year |
16 | | or tax year 2012 and thereafter.
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17 | | (g) "Equity interest" means the current assessed valuation |
18 | | of the qualified
property times the fraction necessary to |
19 | | convert that figure to full market
value minus any outstanding |
20 | | debts or liens on that property. In the case of
qualifying |
21 | | property not having a separate assessed valuation, the |
22 | | appraised
value as determined by a qualified real estate |
23 | | appraiser shall be used instead
of the current assessed |
24 | | valuation.
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25 | | (h) "Household income" has the meaning ascribed to that |
26 | | term in the Senior
Citizens and Persons with Disabilities |
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1 | | Property Tax Relief
Act.
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2 | | (i) "Collector" means the county collector or, if the |
3 | | taxes to be deferred
are special assessments, an official |
4 | | designated by a unit of local government
to collect special |
5 | | assessments.
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6 | | (Source: P.A. 99-143, eff. 7-27-15.)
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7 | | (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
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8 | | Sec. 3.
A taxpayer may, on or before March 1 of each year,
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9 | | apply to the county collector of the county where his |
10 | | qualifying
property is located, or to the official designated |
11 | | by a unit of local
government to collect special assessments |
12 | | on the qualifying property, as the
case may be, for a deferral |
13 | | of all or a part of real estate taxes payable
during that year |
14 | | for the preceding year in the case of real estate taxes
other |
15 | | than special assessments, or for a deferral of any |
16 | | installments payable
during that year in the case of special |
17 | | assessments, on all or part of his
qualifying property. The |
18 | | application shall be on a form prescribed by the
Department |
19 | | and furnished by the collector,
(a) showing that the applicant
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20 | | will be 65 years of age or older by June 1 of the year for |
21 | | which a tax
deferral is claimed, (b) describing the property |
22 | | and verifying that the
property is qualifying property as |
23 | | defined in Section 2, (c) certifying
that the taxpayer has |
24 | | owned and occupied as his residence such
property or other |
25 | | qualifying property in the State for at least the last 3
years |
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1 | | except for any periods during which the taxpayer may have |
2 | | temporarily
resided in a nursing or sheltered care home, and |
3 | | (d) specifying whether
the deferral is for all or a part of the |
4 | | taxes, and, if for a part, the amount
of deferral applied for. |
5 | | As to qualifying property not having a separate
assessed |
6 | | valuation, the taxpayer shall also file with the county |
7 | | collector a
written appraisal of the property prepared by a |
8 | | qualified real estate appraiser
together with a certificate |
9 | | signed by the appraiser stating that he has
personally |
10 | | examined the property and setting forth the value of the land |
11 | | and
the value of the buildings thereon occupied by the |
12 | | taxpayer as his residence.
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13 | | The collector shall grant the tax deferral provided such |
14 | | deferral does not
exceed funds available in the Senior |
15 | | Citizens Real Estate Deferred Tax
Revolving Fund and provided |
16 | | that the owner or owners of such real property have
entered |
17 | | into a tax deferral and recovery agreement with the collector |
18 | | on behalf
of the county or other unit of local government, |
19 | | which agreement expressly
states:
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20 | | (1) That the total amount of taxes deferred under this |
21 | | Act, plus
interest, for the year for which a tax deferral is |
22 | | claimed as well
as for those previous years for which taxes are |
23 | | not delinquent and
for which such deferral has been claimed |
24 | | may not exceed 80%
of the taxpayer's equity interest in the |
25 | | property for which taxes are
to be deferred and that, if the |
26 | | total deferred taxes plus interest equals
80% of the |
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1 | | taxpayer's equity interest in the property, the taxpayer shall
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2 | | thereafter pay the annual interest due on such deferred taxes |
3 | | plus interest
so that total deferred taxes plus interest will |
4 | | not exceed such 80% of the
taxpayer's equity interest in the |
5 | | property. Effective as of the January 1, 2011 assessment year |
6 | | or tax year 2012 and through the 2021 tax year, and beginning |
7 | | again with the 2026 tax year thereafter , the total amount of |
8 | | any such deferral shall not exceed $5,000 per taxpayer in each |
9 | | tax year. For the 2022 tax year through the 2025 tax year, the |
10 | | total amount of any such deferral shall not exceed $7,500 per |
11 | | taxpayer in each tax year.
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12 | | (2) That any real estate taxes deferred under this Act and |
13 | | any
interest accrued thereon at the rate of 6% per year are a |
14 | | lien on the real
estate and improvements thereon until paid. |
15 | | No sale or transfer of such
real property may be legally closed |
16 | | and recorded until the taxes
which would otherwise have been |
17 | | due on the property, plus accrued
interest, have been paid |
18 | | unless the collector certifies in
writing that an arrangement |
19 | | for prompt payment of the amount due
has been made with his |
20 | | office. The same shall apply if the
property is to be made the |
21 | | subject of a contract of sale.
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22 | | (3) That upon the death of the taxpayer claiming the |
23 | | deferral
the heirs-at-law, assignees or legatees shall have |
24 | | first
priority to the real property upon which taxes have been |
25 | | deferred
by paying in full the total taxes which would |
26 | | otherwise have been due,
plus interest. However, if such |
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1 | | heir-at-law, assignee, or legatee
is a surviving spouse, the |
2 | | tax deferred status of the
property shall be continued during |
3 | | the life of that surviving spouse
if the spouse is 55 years of |
4 | | age or older within 6 months of the
date of death of the |
5 | | taxpayer and enters into a tax deferral and
recovery agreement |
6 | | before the time when deferred taxes become due
under this |
7 | | Section. Any additional taxes deferred, plus interest,
on the |
8 | | real property under a tax deferral and recovery agreement
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9 | | signed by a surviving spouse shall be added to the taxes and |
10 | | interest
which would otherwise have been due, and the payment |
11 | | of which has been
postponed during the life of such surviving |
12 | | spouse, in determining
the 80% equity requirement provided by |
13 | | this Section.
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14 | | (4) That if the taxes due, plus interest, are not paid by |
15 | | the heir-at-law,
assignee or legatee or if payment is not |
16 | | postponed during the life of a
surviving spouse, the deferred |
17 | | taxes and interest shall be recovered from the
estate of the |
18 | | taxpayer within one year of the date of his death. In addition,
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19 | | deferred real estate taxes and any interest accrued thereon |
20 | | are due within 90
days after any tax deferred property ceases |
21 | | to be qualifying property as
defined in Section 2.
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22 | | If payment is not made when required by this Section, |
23 | | foreclosure proceedings
may be instituted under the Property |
24 | | Tax Code.
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25 | | (5) That any joint owner has given written prior approval |
26 | | for such
agreement,
which written approval shall be made a |
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1 | | part of such agreement.
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2 | | (6) That a guardian for a person under legal disability |
3 | | appointed for a
taxpayer who otherwise qualifies under this |
4 | | Act may act for the taxpayer in
complying with this Act.
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5 | | (7) That a taxpayer or his agent has provided to the |
6 | | satisfaction of the
collector, sufficient evidence that the |
7 | | qualifying property on which the taxes
are to be deferred is |
8 | | insured against fire or casualty loss for at least the
total |
9 | | amount of taxes which have been deferred.
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10 | | If the taxes to be deferred are special assessments, the |
11 | | unit of local
government making the assessments shall forward |
12 | | a copy of the agreement
entered into pursuant to this Section |
13 | | and the bills for such assessments to
the county collector of |
14 | | the county in which the qualifying property is located.
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15 | | (Source: P.A. 97-481, eff. 8-22-11.)
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16 | | Section 99. Effective date. This Act takes effect upon |
17 | | becoming law.
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