93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6561

 

Introduced 2/6/2004, by Joe Dunn

 

SYNOPSIS AS INTRODUCED:
 
320 ILCS 30/Act title
320 ILCS 30/1   from Ch. 67 1/2, par. 451
320 ILCS 30/2   from Ch. 67 1/2, par. 452
320 ILCS 30/3   from Ch. 67 1/2, par. 453
320 ILCS 30/4   from Ch. 67 1/2, par. 454
320 ILCS 30/5   from Ch. 67 1/2, par. 455
320 ILCS 30/6   from Ch. 67 1/2, par. 456
320 ILCS 30/7   from Ch. 67 1/2, par. 457
320 ILCS 30/8   from Ch. 67 1/2, par. 458
320 ILCS 30/8.1 new

    Amends the Senior Citizens Real Estate Tax Deferral Act. Changes the name of the Act to the Real Estate Tax Deferral Act. Removes all age and income requirements.


LRB093 19891 SJM 45634 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6561 LRB093 19891 SJM 45634 b

1     AN ACT concerning tax deferral.
 
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 Act
5 is amended by changing the title of the Act and Sections 1, 2,
6 3, 4, 5, 6, 7, and 8 and by adding Section 8.1 as follows:
 
7     (320 ILCS 30/Act title)
8 An Act in relation to the deferral of payment of real
9 estate taxes by persons 65 years of age and over.
 
10     (320 ILCS 30/1)  (from Ch. 67 1/2, par. 451)
11     Sec. 1. Short title. This Act shall be known and may be
12 cited as the "Senior Citizens Real Estate Tax Deferral Act".
13 (Source: P.A. 83-895.)
 
14     (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
15     Sec. 2. Definitions. As used in this Act:
16     (a) "Taxpayer" means an individual whose household income
17 for the year is no greater than $40,000.
18     (b) "Tax deferred property" means the property upon which
19 real estate taxes are deferred under this Act.
20     (c) "Homestead" means the land and buildings thereon,
21 including a condominium or a dwelling unit in a multidwelling
22 building that is owned and operated as a cooperative, occupied
23 by the taxpayer as his or her residence or that which are
24 temporarily unoccupied by the taxpayer because that such
25 taxpayer is temporarily residing, for not more than one 1 year,
26 in a licensed facility as defined in Section 1-113 of the
27 Nursing Home Care Act.
28     (d) "Real estate taxes" or "taxes" means the taxes on real
29 property for which the taxpayer would be liable under the
30 Property Tax Code, including special service area taxes, and

 

 

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1 special assessments on benefited real property for which the
2 taxpayer would be liable to a unit of local government.
3     (e) "Department" means the Department of Revenue.
4     (f) "Qualifying property" means a homestead that which (a)
5 the taxpayer or the taxpayer and his or her spouse own in fee
6 simple or are purchasing in fee simple under a recorded
7 instrument of sale, (b) is not income-producing property, (c)
8 is not subject to a lien for unpaid real estate taxes when a
9 claim under this Act is filed.
10     (g) "Equity interest" means the current assessed valuation
11 of the qualified property times the fraction necessary to
12 convert that figure to full market value minus any outstanding
13 debts or liens on that property. In the case of qualifying
14 property not having a separate assessed valuation, the
15 appraised value as determined by a qualified real estate
16 appraiser shall be used instead of the current assessed
17 valuation.
18     (h) "Household income" has the meaning ascribed to that
19 term in the Senior Citizens and Disabled Persons Property Tax
20 Relief and Pharmaceutical Assistance Act.
21     (i) "Collector" means the county collector or, if the taxes
22 to be deferred are special assessments, an official designated
23 by a unit of local government to collect special assessments.
24 (Source: P.A. 92-639, eff. 1-1-03.)
 
25     (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
26     Sec. 3. Deferral. A taxpayer may, on or before March 1 of
27 each year, apply to the county collector of the county where
28 his or her qualifying property is located, or to the official
29 designated by a unit of local government to collect special
30 assessments on the qualifying property, as the case may be, for
31 a deferral of all or a part of real estate taxes payable during
32 that year for the preceding year in the case of real estate
33 taxes other than special assessments, or for a deferral of any
34 installments payable during that year in the case of special
35 assessments, on all or part of his qualifying property. The

 

 

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1 application shall be on a form prescribed by the Department and
2 furnished by the collector, (a) showing that the applicant will
3 be 65 years of age or older by June 1 of the year for which a
4 tax deferral is claimed, (b) describing the property and
5 verifying that the property is qualifying property as defined
6 in Section 2, (b) (c) certifying that the taxpayer has owned
7 and occupied as his or her residence such property or other
8 qualifying property in the State for at least the last 3 years
9 except for any periods during which the taxpayer may have
10 temporarily resided in a nursing or sheltered care home, and
11 (c) (d) specifying whether the deferral is for all or a part of
12 the taxes, and, if for a part, the amount of deferral applied
13 for. As to qualifying property not having a separate assessed
14 valuation, the taxpayer shall also file with the county
15 collector a written appraisal of the property prepared by a
16 qualified real estate appraiser together with a certificate
17 signed by the appraiser stating that he has personally examined
18 the property and setting forth the value of the land and the
19 value of the buildings thereon occupied by the taxpayer as his
20 or her residence.
21     The collector shall grant the tax deferral provided the
22 such deferral does not exceed funds available in the Senior
23 Citizens Real Estate Deferred Tax Revolving Fund and provided
24 that the owner or owners of the such real property have entered
25 into a tax deferral and recovery agreement with the collector
26 on behalf of the county or other unit of local government,
27 which agreement expressly states:
28     (1) That the total amount of taxes deferred under this Act,
29 plus interest, for the year for which a tax deferral is claimed
30 as well as for those previous years for which taxes are not
31 delinquent and for which the such deferral has been claimed may
32 not exceed 80% of the taxpayer's equity interest in the
33 property for which taxes are to be deferred and that, if the
34 total deferred taxes plus interest equals 80% of the taxpayer's
35 equity interest in the property, the taxpayer shall thereafter
36 pay the annual interest due on the such deferred taxes plus

 

 

HB6561 - 4 - LRB093 19891 SJM 45634 b

1 interest so that total deferred taxes plus interest will not
2 exceed such 80% of the taxpayer's equity interest in the
3 property.
4     (2) That any real estate taxes deferred under this Act and
5 any interest accrued thereon at the rate of 6% per year are a
6 lien on the real estate and improvements thereon until paid. No
7 sale or transfer of the such real property may be legally
8 closed and recorded until the taxes that which would otherwise
9 have been due on the property, plus accrued interest, have been
10 paid unless the collector certifies in writing that an
11 arrangement for prompt payment of the amount due has been made
12 with his or her office. The same shall apply if the property is
13 to be made the subject of a contract of sale.
14     (3) That upon the death of the taxpayer claiming the
15 deferral, the heirs-at-law, assignees, or legatees shall have
16 first priority to the real property upon which taxes have been
17 deferred by paying in full the total taxes that which would
18 otherwise have been due, plus interest. However, if the such
19 heir-at-law, assignee, or legatee is a surviving spouse, the
20 tax deferred status of the property shall be continued during
21 the life of that surviving spouse if the spouse is 55 years of
22 age or older within 6 months of the date of death of the
23 taxpayer and enters into a tax deferral and recovery agreement
24 before the time when deferred taxes become due under this
25 Section. Any additional taxes deferred, plus interest, on the
26 real property under a tax deferral and recovery agreement
27 signed by a surviving spouse shall be added to the taxes and
28 interest that which would otherwise have been due, and the
29 payment of which has been postponed during the life of the such
30 surviving spouse, in determining the 80% equity requirement
31 provided by this Section.
32     (4) That if the taxes due, plus interest, are not paid by
33 the heir-at-law, assignee, or legatee or if payment is not
34 postponed during the life of a surviving spouse, the deferred
35 taxes and interest shall be recovered from the estate of the
36 taxpayer within one year after of the date of his or her death.

 

 

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1 In addition, deferred real estate taxes and any interest
2 accrued thereon are due within 90 days after any tax deferred
3 property ceases to be qualifying property as defined in Section
4 2.
5     If payment is not made when required by this Section,
6 foreclosure proceedings may be instituted under the Property
7 Tax Code.
8     (5) That any joint owner has given written prior approval
9 for such agreement, which written approval shall be made a part
10 of the such agreement.
11     (6) That a guardian for a person under legal disability
12 appointed for a taxpayer who otherwise qualifies under this Act
13 may act for the taxpayer in complying with this Act.
14     (7) That a taxpayer or his or her agent has provided to the
15 satisfaction of the collector, sufficient evidence that the
16 qualifying property on which the taxes are to be deferred is
17 insured against fire or casualty loss for at least the total
18 amount of taxes that which have been deferred.
19     If the taxes to be deferred are special assessments, the
20 unit of local government making the assessments shall forward a
21 copy of the agreement entered into pursuant to this Section and
22 the bills for those such assessments to the county collector of
23 the county in which the qualifying property is located.
24 (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
 
25     (320 ILCS 30/4)  (from Ch. 67 1/2, par. 454)
26     Sec. 4. Recording of statement. In the case of each tax
27 deferral and recovery agreement entered into between the
28 collector and the owner or owners of qualifying property, the
29 collector shall forthwith cause to be recorded with the
30 recorder of the county in which the qualifying property is
31 located a statement of their action, which shall constitute a
32 lien upon the real estate and improvements thereon covered by
33 the such agreement for those such taxes as have been deferred
34 under the provisions of this Act, plus accrued interest as
35 provided for by Section 3. In the case of a dwelling unit in a

 

 

HB6561 - 6 - LRB093 19891 SJM 45634 b

1 multidwelling building that is owned and operated as a
2 cooperative, the lien shall be upon only that portion of the
3 real estate that constitutes a homestead exemption occupied by
4 the taxpayer. The statement shall name the owner or owners and
5 shall include a description of the real estate adequate for
6 identification. The filing fee for the such statement shall be
7 paid by the county or other unit of local government and shall
8 be added to and become a part of the deferred taxes due.
9 (Source: P.A. 88-268.)
 
10     (320 ILCS 30/5)  (from Ch. 67 1/2, par. 455)
11     Sec. 5. The county collector shall note on his or her books
12 each claim for deferral of real estate taxes that which meets
13 the requirements of Section 3 and, when taxes are extended,
14 shall send to the Department the tax bills, including special
15 assessment bills forwarded to the county collector under
16 Section 3, on all tax deferred property in that collector's
17 county. The Department shall then pay by June 1 or within 30
18 days after of the receipt of these tax bills, whichever is
19 later, to the county collector, for distribution to the taxing
20 bodies in his county, the total amount of taxes so deferred.
21 The Department shall make these payments from the Senior
22 Citizens Real Estate Deferred Tax Revolving Fund.
23 (Source: P.A. 84-807.)
 
24     (320 ILCS 30/6)  (from Ch. 67 1/2, par. 456)
25     Sec. 6. Advance payment. All or any part of taxes deferred
26 under this Act and the accrued interest thereon, which are not
27 due under a valid deferral and recovery agreement, may be paid
28 to the collector at any time by the taxpayer or his or her
29 spouse, or, if no objection is made by the taxpayer within 10
30 days after the collector mails him or her a written notice of
31 the tender of such a payment, by a child, heir, or next of kin
32 of the taxpayer or other person claiming a legal or equitable
33 interest in the property. In the absence of a valid agreement
34 to the contrary and except as otherwise provided by law, such a

 

 

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1 payment by a person other than the taxpayer or his or her
2 spouse confers no interest in the property nor claim against
3 the estate. Payments made under this Section shall be applied
4 first against accrued interest and any remainder against the
5 deferred taxes and do not affect the deferred tax status of the
6 property.
7 (Source: P.A. 84-807.)
 
8     (320 ILCS 30/7)  (from Ch. 67 1/2, par. 457)
9     Sec. 7. Collection and deposit. When any deferred taxes,
10 including interest, are collected, the moneys shall be credited
11 to a special account in the treasury of the unit of local
12 government and the collector shall notify the treasurer of the
13 unit of local government of the properties for which the taxes
14 were collected by setting forth a description of the property
15 and the amount of taxes and interest collected for each
16 property. The treasurer shall remit by the 10th day of each
17 month the amount of deferred taxes and accrued interest paid
18 during the preceding month, minus $50 or the total amount of
19 deferred taxes and accrued interest collected, whichever is
20 less, to the Department. The remittance shall be accompanied by
21 a statement giving a description for each property for which
22 the taxes were collected and setting out the amount of the
23 taxes and interest collected for each property.
24     If the tax deferred property is sold by foreclosure under
25 the Property Tax Code, the proceeds of the sale which may be
26 applied under that Act to the payment of real estate taxes and
27 interest shall be remitted by the county treasurer to the
28 Department along with a description of the property and the
29 amount of taxes and interest collected thereon.
30     When any deferred taxes and accrued interest are received
31 by the Department, it shall enter the amounts received against
32 the accounts that which have been set up for the tax deferred
33 properties and shall within 5 days remit those such moneys to
34 the State Treasurer for deposit into in the Senior Citizens
35 Real Estate Deferred Tax Revolving Fund.

 

 

HB6561 - 8 - LRB093 19891 SJM 45634 b

1 (Source: P.A. 88-670, eff. 12-2-94.)
 
2     (320 ILCS 30/8)  (from Ch. 67 1/2, par. 458)
3     Sec. 8. Mortgages; grants. Nothing in this Act (a) affects
4 any provision of any mortgage or other instrument relating to
5 land requiring a person to pay real estate taxes or (b) affects
6 the eligibility of any person to receive any grant pursuant to
7 the "Senior Citizens and Disabled Persons Property Tax Relief
8 and Pharmaceutical Assistance Act".
9 (Source: P.A. 84-807; 84-832.)
 
10     (320 ILCS 30/8.1 new)
11     Sec. 8.1. Cross-references. Any reference in any other law,
12 rule, form, or other document (i) to the Senior Citizens Real
13 Estate Tax Deferral Act is deemed to be a reference to the Real
14 Estate Tax Deferral Act and (ii) to the Senior Citizens Real
15 Estate Deferral Tax Revolving Fund is deemed to be a reference
16 to the Real Estate Deferral Tax Revolving Fund.