State of Illinois
92nd General Assembly

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 1        AN ACT concerning senior citizens.

 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 the title of the Act and  Sections
 6    2 and 3 as follows:

 7        (320 ILCS 30/Act title)
 8        An  Act  in  relation  to the deferral of payment of real
 9    estate taxes by senior citizens persons 65 years of  age  and
10    over.

11        (320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
12        Sec. 2. Definitions. As used in this Act:
13        (a)  "Taxpayer"   means  an  individual  whose  household
14    income for the year is no greater than $25,000  before  2001,
15    and $35,000 in 2001 or thereafter.
16        (b)  "Tax  deferred  property"  means  the  property upon
17    which real estate taxes are deferred under this Act.
18        (c)  "Homestead" means the land  and  buildings  thereon,
19    including a condominium or a dwelling unit in a multidwelling
20    building  that  is  owned  and  operated  as  a  cooperative,
21    occupied  by  the  taxpayer  as  his  residence  or which are
22    temporarily unoccupied by the taxpayer because such  taxpayer
23    is  temporarily  residing,  for  not  more  than 1 year, in a
24    licensed facility as defined in Section 1-113 of the  Nursing
25    Home Care Act.
26        (d)  "Real  estate  taxes"  or "taxes" means the taxes on
27    real property for which the taxpayer would  be  liable  under
28    the  Property Tax Code, including special service area taxes,
29    and special assessments on benefited real property for  which
30    the taxpayer would be liable to a unit of local government.
                            -2-                LRB9205141SMdv
 1        (e)  "Department" means the Department of Revenue.
 2        (f)  "Qualifying  property"  means  a homestead which (a)
 3    the taxpayer or the taxpayer and his spouse own in fee simple
 4    or are purchasing in fee simple under a  recorded  instrument
 5    of  sale,  (b)  is  not income-producing property, (c) is not
 6    subject to a lien for unpaid real estate taxes when  a  claim
 7    under this Act is filed.
 8        (g)  "Equity   interest"   means   the  current  assessed
 9    valuation  of  the  qualified  property  times  the  fraction
10    necessary to convert that figure to full market  value  minus
11    any outstanding debts or liens on that property.  In the case
12    of   qualifying  property  not  having  a  separate  assessed
13    valuation, the appraised value as determined by  a  qualified
14    real  estate  appraiser  shall be used instead of the current
15    assessed valuation.
16        (h)  "Household income" has the meaning ascribed to  that
17    term in the Senior Citizens and Disabled Persons Property Tax
18    Relief and Pharmaceutical Assistance Act.
19        (i)  "Collector"  means  the  county collector or, if the
20    taxes to be deferred are  special  assessments,  an  official
21    designated  by  a unit of local government to collect special
22    assessments.
23    (Source: P.A. 88-268; 88-509; 88-670, eff. 12-2-94.)

24        (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
25        Sec. 3.  A taxpayer may, on or before  March  1  of  each
26    year,  apply  to the county collector of the county where his
27    qualifying property is located, or to the official designated
28    by a unit of local government to collect special  assessments
29    on  the  qualifying  property,  as  the  case  may  be, for a
30    deferral of all or a part of real estate taxes payable during
31    that year for the preceding year in the case of  real  estate
32    taxes  other  than  special assessments, or for a deferral of
33    any installments payable during that  year  in  the  case  of
                            -3-                LRB9205141SMdv
 1    special  assessments,  on  all  or  part  of  his  qualifying
 2    property.   The  application shall be on a form prescribed by
 3    the Department and furnished by the  collector,  (a)  showing
 4    that the applicant will be 65 years of age or older by June 1
 5    of  the year in which the taxes are payable for taxes payable
 6    in or before 2001 and 62 years of age or older by June  1  of
 7    the  year in which the taxes are payable for taxes payable in
 8    2002 and thereafter for which a tax deferral is claimed,  (b)
 9    describing  the  property  and verifying that the property is
10    qualifying property as defined in Section 2,  (c)  certifying
11    that  the  taxpayer  has  owned and occupied as his residence
12    such property or other qualifying property in the  State  for
13    at least the last 3 years except for any periods during which
14    the  taxpayer  may  have  temporarily resided in a nursing or
15    sheltered care home, and (d) specifying whether the  deferral
16    is  for  all  or a part of the taxes, and, if for a part, the
17    amount of deferral applied for. As to qualifying property not
18    having a separate assessed valuation, the taxpayer shall also
19    file with the county collector a  written  appraisal  of  the
20    property  prepared  by  a  qualified  real  estate  appraiser
21    together  with  a certificate signed by the appraiser stating
22    that he has personally  examined  the  property  and  setting
23    forth  the  value  of the land and the value of the buildings
24    thereon occupied by the taxpayer as his residence.
25        The collector shall grant the tax deferral provided  such
26    deferral  does  not  exceed  funds  available  in  the Senior
27    Citizens Real Estate Deferred Tax Revolving Fund and provided
28    that the owner or owners of such real property  have  entered
29    into a tax deferral and recovery agreement with the collector
30    on  behalf  of  the county or other unit of local government,
31    which agreement expressly states:
32        (1)  That the total amount of taxes deferred  under  this
33    Act,  plus interest, for the year for which a tax deferral is
34    claimed as well as for those previous years for  which  taxes
                            -4-                LRB9205141SMdv
 1    are  not  delinquent  and  for  which  such deferral has been
 2    claimed may not exceed 80% of the taxpayer's equity  interest
 3    in  the property for which taxes are to be deferred and that,
 4    if the total deferred taxes plus interest equals 80%  of  the
 5    taxpayer's  equity  interest  in  the  property, the taxpayer
 6    shall thereafter pay the annual interest due on such deferred
 7    taxes  plus  interest  so  that  total  deferred  taxes  plus
 8    interest will not exceed such 80% of  the  taxpayer's  equity
 9    interest in the property.
10        (2)  That  any  real estate taxes deferred under this Act
11    and any interest accrued thereon at the rate of 6%  per  year
12    are  a lien on the real estate and improvements thereon until
13    paid.  No sale or transfer  of  such  real  property  may  be
14    legally  closed  and  recorded  until  the  taxes which would
15    otherwise  have  been  due  on  the  property,  plus  accrued
16    interest, have been paid unless the  collector  certifies  in
17    writing  that an arrangement for prompt payment of the amount
18    due has been made with his office.  The same shall  apply  if
19    the property is to be made the 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
23    been 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
27    the  life  of that surviving spouse if the spouse is 55 years
28    of age or older within 6 months of the date of death  of  the
29    taxpayer   and  enters  into  a  tax  deferral  and  recovery
30    agreement before the time  when  deferred  taxes  become  due
31    under  this  Section.   Any  additional  taxes deferred, plus
32    interest, on the real  property  under  a  tax  deferral  and
33    recovery  agreement  signed  by  a  surviving spouse shall be
34    added to the taxes and interest which  would  otherwise  have
                            -5-                LRB9205141SMdv
 1    been  due, and the payment of which has been postponed during
 2    the life of such surviving spouse,  in  determining  the  80%
 3    equity requirement provided by this Section.
 4        (4)  That  if  the taxes due, plus interest, are not paid
 5    by the heir-at-law, assignee or legatee or if payment is  not
 6    postponed during the life of a surviving spouse, the deferred
 7    taxes  and interest shall be recovered from the estate of the
 8    taxpayer within one year  of  the  date  of  his  death.   In
 9    addition, deferred real estate taxes and any interest accrued
10    thereon  are  due  within  90  days  after  any  tax deferred
11    property ceases to  be  qualifying  property  as  defined  in
12    Section 2.
13        If  payment  is  not  made when required by this Section,
14    foreclosure proceedings may be instituted under the  Property
15    Tax Code.
16        (5)  That   any  joint  owner  has  given  written  prior
17    approval for such agreement, which written approval shall  be
18    made a part of such agreement.
19        (6)  That  a guardian for a person under legal disability
20    appointed for a taxpayer who otherwise qualifies  under  this
21    Act may act for the taxpayer in complying with this Act.
22        (7)  That  a  taxpayer  or  his agent has provided to the
23    satisfaction of the collector, sufficient evidence  that  the
24    qualifying  property on which the taxes are to be deferred is
25    insured against fire or casualty loss for at least the  total
26    amount of taxes which have been deferred.
27        If  the taxes to be deferred are special assessments, the
28    unit of local government making the assessments shall forward
29    a copy of the agreement entered into pursuant to this Section
30    and the bills for such assessments to the county collector of
31    the county in which the qualifying property is located.
32    (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)

33        Section 99.  Effective date.  This Act takes effect  upon
                            -6-                LRB9205141SMdv
 1    becoming law.

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