102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0143

 

Introduced 1/14/2021, by Rep. Debbie Meyers-Martin

 

SYNOPSIS AS INTRODUCED:
 
320 ILCS 30/2  from Ch. 67 1/2, par. 452
320 ILCS 30/3  from Ch. 67 1/2, par. 453

    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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FISCAL 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
5Act 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
9for the year is no greater than: (i) $40,000 through tax year
102005; (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
12for tax year 2021 and thereafter.
13    (b) "Tax deferred property" means the property upon which
14real estate taxes are deferred under this Act.
15    (c) "Homestead" means the land and buildings thereon,
16including a condominium or a dwelling unit in a multidwelling
17building that is owned and operated as a cooperative, occupied
18by the taxpayer as his residence or which are temporarily
19unoccupied by the taxpayer because such taxpayer is
20temporarily residing, for not more than 1 year, in a licensed
21facility as defined in Section 1-113 of the Nursing Home Care
22Act.
23    (d) "Real estate taxes" or "taxes" means the taxes on real

 

 

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

 

 

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1    (i) "Collector" means the county collector or, if the
2taxes to be deferred are special assessments, an official
3designated by a unit of local government to collect special
4assessments.
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,
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
11on the qualifying property, as the case may be, for a deferral
12of all or a part of real estate taxes payable during that year
13for the preceding year in the case of real estate taxes other
14than special assessments, or for a deferral of any
15installments payable during that year in the case of special
16assessments, on all or part of his qualifying property. The
17application shall be on a form prescribed by the Department
18and furnished by the collector, (a) showing that the applicant
19will be 65 years of age or older by June 1 of the year for
20which a tax deferral is claimed, (b) describing the property
21and verifying that the property is qualifying property as
22defined in Section 2, (c) certifying that the taxpayer has
23owned and occupied as his residence such property or other
24qualifying property in the State for at least the last 3 years
25except for any periods during which the taxpayer may have

 

 

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

 

 

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1thereafter pay the annual interest due on such deferred taxes
2plus interest so that total deferred taxes plus interest will
3not exceed such 80% of the taxpayer's equity interest in the
4property. Effective as of the January 1, 2011 assessment year
5or tax year 2012 and through the 2020 tax year thereafter, the
6total amount of any such deferral shall not exceed $5,000 per
7taxpayer in each tax year. Beginning with the 2021 tax year and
8thereafter, the total amount of any such deferral shall not
9exceed $12,000 per taxpayer in each tax year.
10    (2) That any real estate taxes deferred under this Act and
11any interest accrued thereon at the rate of 2% 6% per year are
12a lien on the real estate and improvements thereon until paid.
13No sale or transfer of such real property may be legally closed
14and recorded until the taxes which would otherwise have been
15due on the property, plus accrued interest, have been paid
16unless the collector certifies in writing that an arrangement
17for prompt payment of the amount due has been made with his
18office. The same shall apply if the property is to be made the
19subject of a contract of sale.
20    (3) That upon the death of the taxpayer claiming the
21deferral the heirs-at-law, assignees or legatees shall have
22first priority to the real property upon which taxes have been
23deferred by paying in full the total taxes which would
24otherwise have been due, plus interest. However, if such
25heir-at-law, assignee, or legatee is a surviving spouse, the
26tax deferred status of the property shall be continued during

 

 

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1the life of that surviving spouse if the spouse is 55 years of
2age or older within 6 months of the date of death of the
3taxpayer and enters into a tax deferral and recovery agreement
4before the time when deferred taxes become due under this
5Section. Any additional taxes deferred, plus interest, on the
6real property under a tax deferral and recovery agreement
7signed by a surviving spouse shall be added to the taxes and
8interest which would otherwise have been due, and the payment
9of which has been postponed during the life of such surviving
10spouse, in determining the 80% equity requirement provided by
11this Section.
12    (4) That if the taxes due, plus interest, are not paid by
13the heir-at-law, assignee or legatee or if payment is not
14postponed during the life of a surviving spouse, the deferred
15taxes and interest shall be recovered from the estate of the
16taxpayer within one year of the date of his death. In addition,
17deferred real estate taxes and any interest accrued thereon
18are due within 90 days after any tax deferred property ceases
19to be qualifying property as defined in Section 2.
20    If payment is not made when required by this Section,
21foreclosure proceedings may be instituted under the Property
22Tax Code.
23    (5) That any joint owner has given written prior approval
24for such agreement, which written approval shall be made a
25part of such agreement.
26    (6) That a guardian for a person under legal disability

 

 

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1appointed for a taxpayer who otherwise qualifies under this
2Act may act for the taxpayer in complying with this Act.
3    (7) That a taxpayer or his agent has provided to the
4satisfaction of the collector, sufficient evidence that the
5qualifying property on which the taxes are to be deferred is
6insured against fire or casualty loss for at least the total
7amount of taxes which have been deferred.
8    If the taxes to be deferred are special assessments, the
9unit of local government making the assessments shall forward
10a copy of the agreement entered into pursuant to this Section
11and the bills for such assessments to the county collector of
12the 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
15becoming law.