Sen. Don Harmon

Filed: 4/19/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 402

2    AMENDMENT NO. ______. Amend Senate Bill 402 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Senior Citizens Real Estate Tax Deferral
5Act is amended by changing Section 3 as follows:
 
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 on
11the qualifying property, as the case may be, for a deferral of
12all or a part of real estate taxes payable during that year for
13the preceding year in the case of real estate taxes other than
14special assessments, or for a deferral of any installments
15payable during that year in the case of special assessments, on
16all or part of his qualifying property. The application shall

 

 

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

 

 

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1    (1) That the total amount of taxes deferred under this Act,
2plus interest, for the year for which a tax deferral is claimed
3as well as for those previous years for which taxes are not
4delinquent and for which such deferral has been claimed may not
5exceed 80% of the taxpayer's equity interest in the property
6for which taxes are to be deferred and that, if the total
7deferred taxes plus interest equals 80% of the taxpayer's
8equity interest in the property, the taxpayer shall thereafter
9pay the annual interest due on such deferred taxes plus
10interest so that total deferred taxes plus interest will not
11exceed such 80% of the taxpayer's equity interest in the
12property. For the 2011 Effective as of the January 1, 2011
13assessment year or tax year 2012 and thereafter, the total
14amount of any such deferral shall not exceed $5,000 per
15taxpayer in each tax year. For the 2012 assessment year and
16thereafter, the total amount of any such deferral shall not
17exceed $15,000 per taxpayer in each tax year.
18    (2) That any real estate taxes deferred under this Act and
19any interest accrued thereon at the rate of 6% per year are a
20lien on the real estate and improvements thereon until paid. No
21sale or transfer of such real property may be legally closed
22and recorded until the taxes which would otherwise have been
23due on the property, plus accrued interest, have been paid
24unless the collector certifies in writing that an arrangement
25for prompt payment of the amount due has been made with his
26office. The same shall apply if the property is to be made the

 

 

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1subject of a contract of sale.
2    (3) That upon the death of the taxpayer claiming the
3deferral the heirs-at-law, assignees or legatees shall have
4first priority to the real property upon which taxes have been
5deferred by paying in full the total taxes which would
6otherwise have been due, plus interest. However, if such
7heir-at-law, assignee, or legatee is a surviving spouse, the
8tax deferred status of the property shall be continued during
9the life of that surviving spouse if the spouse is 55 years of
10age or older within 6 months of the date of death of the
11taxpayer and enters into a tax deferral and recovery agreement
12before the time when deferred taxes become due under this
13Section. Any additional taxes deferred, plus interest, on the
14real property under a tax deferral and recovery agreement
15signed by a surviving spouse shall be added to the taxes and
16interest which would otherwise have been due, and the payment
17of which has been postponed during the life of such surviving
18spouse, in determining the 80% equity requirement provided by
19this Section.
20    (4) That if the taxes due, plus interest, are not paid by
21the heir-at-law, assignee or legatee or if payment is not
22postponed during the life of a surviving spouse, the deferred
23taxes and interest shall be recovered from the estate of the
24taxpayer within one year of the date of his death. In addition,
25deferred real estate taxes and any interest accrued thereon are
26due within 90 days after any tax deferred property ceases to be

 

 

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1qualifying property as defined in Section 2.
2    If payment is not made when required by this Section,
3foreclosure proceedings may be instituted under the Property
4Tax Code.
5    (5) That any joint owner has given written prior approval
6for such agreement, which written approval shall be made a part
7of such agreement.
8    (6) That a guardian for a person under legal disability
9appointed for a taxpayer who otherwise qualifies under this Act
10may act for the taxpayer in complying with this Act.
11    (7) That a taxpayer or his agent has provided to the
12satisfaction of the collector, sufficient evidence that the
13qualifying property on which the taxes are to be deferred is
14insured against fire or casualty loss for at least the total
15amount of taxes which have been deferred.
16    If the taxes to be deferred are special assessments, the
17unit of local government making the assessments shall forward a
18copy of the agreement entered into pursuant to this Section and
19the bills for such assessments to the county collector of the
20county in which the qualifying property is located.
21(Source: P.A. 97-481, eff. 8-22-11.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".