Full Text of SB2193 94th General Assembly
SB2193 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2193
Introduced 1/11/2006, by Sen. William E. Peterson SYNOPSIS AS INTRODUCED: |
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320 ILCS 30/2 |
from Ch. 67 1/2, par. 452 |
320 ILCS 30/3 |
from Ch. 67 1/2, par. 453 |
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Amends the Senior Citizens Real Estate Tax Deferral Act. In the definition of "taxpayer", increases the income limitation, beginning with the 2006 tax year, from $40,000 to $45,000 per year. Requires that applications for the tax deferral must be made by May 1 (now, March 1) of each year. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2193 |
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| AN ACT concerning aging.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Senior Citizens Real Estate Tax Deferral Act | 5 |
| is amended by changing Sections 2 and 3 as follows:
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| (320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
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| Sec. 2. Definitions. As used in this Act:
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| (a) "Taxpayer" means an individual whose household income | 9 |
| for the year
is no greater than : (i) $40,000 through tax year | 10 |
| 2005; and (ii) $45,000 for tax year 2006 and thereafter .
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| (b) "Tax deferred property" means the property upon which | 12 |
| real
estate taxes are deferred under this Act.
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| (c) "Homestead" means the land and buildings thereon, | 14 |
| including a
condominium or a dwelling unit in a multidwelling | 15 |
| building that is owned and
operated as a cooperative, occupied | 16 |
| by the taxpayer as his residence or which
are temporarily | 17 |
| unoccupied by the taxpayer because such taxpayer is temporarily
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| residing, for not more than 1 year, in a licensed facility as | 19 |
| defined in
Section 1-113 of the Nursing Home Care Act.
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| (d) "Real estate taxes" or "taxes" means the taxes on real | 21 |
| property for
which the taxpayer would be liable under the | 22 |
| Property Tax Code, including special service area taxes, and | 23 |
| special assessments on
benefited real property for which the | 24 |
| taxpayer would be liable to a unit of
local government.
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| (e) "Department" means the Department of Revenue.
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| (f) "Qualifying property" means a homestead which (a) the | 27 |
| taxpayer or the
taxpayer and his spouse own in fee simple or | 28 |
| are purchasing in fee simple under
a recorded instrument of | 29 |
| sale, (b) is not income-producing property, (c) is not
subject | 30 |
| to a lien for unpaid real estate taxes when a claim under this | 31 |
| Act is
filed.
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| (g) "Equity interest" means the current assessed valuation |
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| of the qualified
property times the fraction necessary to | 2 |
| convert that figure to full market
value minus any outstanding | 3 |
| debts or liens on that property. In the case of
qualifying | 4 |
| property not having a separate assessed valuation, the | 5 |
| appraised
value as determined by a qualified real estate | 6 |
| appraiser shall be used instead
of the current assessed | 7 |
| valuation.
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| (h) "Household income" has the meaning ascribed to that | 9 |
| term in the Senior
Citizens and Disabled Persons Property Tax | 10 |
| Relief and Pharmaceutical Assistance
Act.
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| (i) "Collector" means the county collector or, if the taxes | 12 |
| to be deferred
are special assessments, an official designated | 13 |
| by a unit of local government
to collect special assessments.
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| (Source: P.A. 92-639, eff. 1-1-03.)
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| (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
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| Sec. 3. A taxpayer may, on or before May 1
March 1 of each | 17 |
| year,
apply to the county collector of the county where his | 18 |
| qualifying
property is located, or to the official designated | 19 |
| by a unit of local
government to collect special assessments on | 20 |
| the qualifying property, as the
case may be, for a deferral of | 21 |
| all or a part of real estate taxes payable
during that year for | 22 |
| the preceding year in the case of real estate taxes
other than | 23 |
| special assessments, or for a deferral of any installments | 24 |
| payable
during that year in the case of special assessments, on | 25 |
| all or part of his
qualifying property. The application shall | 26 |
| be on a form prescribed by the
Department and furnished by the | 27 |
| collector,
(a) showing that the applicant
will be 65 years of | 28 |
| age or older by June 1 of the year for which a tax
deferral is | 29 |
| claimed, (b) describing the property and verifying that the
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| property is qualifying property as defined in Section 2, (c) | 31 |
| certifying
that the taxpayer has owned and occupied as his | 32 |
| residence such
property or other qualifying property in the | 33 |
| State for at least the last 3
years except for any periods | 34 |
| during which the taxpayer may have temporarily
resided in a | 35 |
| nursing or sheltered care home, and (d) specifying whether
the |
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| deferral is for all or a part of the taxes, and, if for a part, | 2 |
| the amount
of deferral applied for. As to qualifying property | 3 |
| not having a separate
assessed valuation, the taxpayer shall | 4 |
| also file with the county collector a
written appraisal of the | 5 |
| property prepared by a qualified real estate appraiser
together | 6 |
| with a certificate signed by the appraiser stating that he has
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| personally examined the property and setting forth the value of | 8 |
| the land and
the value of the buildings thereon occupied by the | 9 |
| taxpayer as his residence.
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| The collector shall grant the tax deferral provided such | 11 |
| deferral does not
exceed funds available in the Senior Citizens | 12 |
| Real Estate Deferred Tax
Revolving Fund and provided that the | 13 |
| owner or owners of such real property have
entered into a tax | 14 |
| deferral and recovery agreement with the collector on behalf
of | 15 |
| the county or other unit of local government, which agreement | 16 |
| expressly
states:
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| (1) That the total amount of taxes deferred under this Act, | 18 |
| plus
interest, for the year for which a tax deferral is claimed | 19 |
| as well
as for those previous years for which taxes are not | 20 |
| delinquent and
for which such deferral has been claimed may not | 21 |
| exceed 80%
of the taxpayer's equity interest in the property | 22 |
| for which taxes are
to be deferred and that, if the total | 23 |
| deferred taxes plus interest equals
80% of the taxpayer's | 24 |
| equity interest in the property, the taxpayer shall
thereafter | 25 |
| pay the annual interest due on such deferred taxes plus | 26 |
| interest
so that total deferred taxes plus interest will not | 27 |
| exceed such 80% of the
taxpayer's equity interest in the | 28 |
| property.
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| (2) That any real estate taxes deferred under this Act and | 30 |
| any
interest accrued thereon at the rate of 6% per year are a | 31 |
| lien on the real
estate and improvements thereon until paid. No | 32 |
| sale or transfer of such
real property may be legally closed | 33 |
| and recorded until the taxes
which would otherwise have been | 34 |
| due on the property, plus accrued
interest, have been paid | 35 |
| unless the collector certifies in
writing that an arrangement | 36 |
| for prompt payment of the amount due
has been made with his |
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| office. The same shall apply if the
property is to be made the | 2 |
| subject of a contract of sale.
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| (3) That upon the death of the taxpayer claiming the | 4 |
| deferral
the heirs-at-law, assignees or legatees shall have | 5 |
| first
priority to the real property upon which taxes have been | 6 |
| deferred
by paying in full the total taxes which would | 7 |
| otherwise have been due,
plus interest. However, if such | 8 |
| heir-at-law, assignee, or legatee
is a surviving spouse, the | 9 |
| tax deferred status of the
property shall be continued during | 10 |
| the life of that surviving spouse
if the spouse is 55 years of | 11 |
| age or older within 6 months of the
date of death of the | 12 |
| taxpayer and enters into a tax deferral and
recovery agreement | 13 |
| before the time when deferred taxes become due
under this | 14 |
| Section. Any additional taxes deferred, plus interest,
on the | 15 |
| real property under a tax deferral and recovery agreement
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| signed by a surviving spouse shall be added to the taxes and | 17 |
| interest
which would otherwise have been due, and the payment | 18 |
| of which has been
postponed during the life of such surviving | 19 |
| spouse, in determining
the 80% equity requirement provided by | 20 |
| this Section.
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| (4) That if the taxes due, plus interest, are not paid by | 22 |
| the heir-at-law,
assignee or legatee or if payment is not | 23 |
| postponed during the life of a
surviving spouse, the deferred | 24 |
| taxes and interest shall be recovered from the
estate of the | 25 |
| taxpayer within one year of the date of his death. In addition,
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| deferred real estate taxes and any interest accrued thereon are | 27 |
| due within 90
days after any tax deferred property ceases to be | 28 |
| qualifying property as
defined in Section 2.
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| If payment is not made when required by this Section, | 30 |
| foreclosure proceedings
may be instituted under the Property | 31 |
| Tax Code.
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| (5) That any joint owner has given written prior approval | 33 |
| for such
agreement,
which written approval shall be made a part | 34 |
| of such agreement.
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| (6) That a guardian for a person under legal disability | 36 |
| appointed for a
taxpayer who otherwise qualifies under this Act |
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| may act for the taxpayer in
complying with this Act.
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| (7) That a taxpayer or his agent has provided to the | 3 |
| satisfaction of the
collector, sufficient evidence that the | 4 |
| qualifying property on which the taxes
are to be deferred is | 5 |
| insured against fire or casualty loss for at least the
total | 6 |
| amount of taxes which have been deferred.
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| If the taxes to be deferred are special assessments, the | 8 |
| unit of local
government making the assessments shall forward a | 9 |
| copy of the agreement
entered into pursuant to this Section and | 10 |
| the bills for such assessments to
the county collector of the | 11 |
| county in which the qualifying property is located.
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| (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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