Full Text of HB1518 97th General Assembly
HB1518eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 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 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 | 9 | | for the year
is no greater than: (i) $40,000 through tax year | 10 | | 2005; and (ii) $50,000 for tax years year 2006 through 2011; | 11 | | and (iii) $55,000 for tax year 2012 and thereafter.
| 12 | | (b) "Tax deferred property" means the property upon which | 13 | | real
estate taxes are deferred under this Act.
| 14 | | (c) "Homestead" means the land and buildings thereon, | 15 | | including a
condominium or a dwelling unit in a multidwelling | 16 | | building that is owned and
operated as a cooperative, occupied | 17 | | by the taxpayer as his residence or which
are temporarily | 18 | | unoccupied by the taxpayer because such taxpayer is temporarily
| 19 | | residing, for not more than 1 year, in a licensed facility as | 20 | | defined in
Section 1-113 of the Nursing Home Care Act.
| 21 | | (d) "Real estate taxes" or "taxes" means the taxes on real | 22 | | property for
which the taxpayer would be liable under the | 23 | | 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 which (a) the | 5 | | taxpayer or the
taxpayer and his spouse own in fee simple or | 6 | | are purchasing in fee simple under
a recorded instrument of | 7 | | sale, (b) is not income-producing property, (c) is not
subject | 8 | | to a lien for unpaid real estate taxes when a claim under this | 9 | | Act is
filed , and (d) is not held in trust, other than an | 10 | | Illinois land trust with the taxpayer identified as the sole | 11 | | beneficiary, if the taxpayer is filing for the program for the | 12 | | first time effective as of the January 1, 2011 assessment year | 13 | | or tax year 2012 and thereafter .
| 14 | | (g) "Equity interest" means the current assessed valuation | 15 | | of the qualified
property times the fraction necessary to | 16 | | convert that figure to full market
value minus any outstanding | 17 | | debts or liens on that property. In the case of
qualifying | 18 | | property not having a separate assessed valuation, the | 19 | | appraised
value as determined by a qualified real estate | 20 | | appraiser shall be used instead
of the current assessed | 21 | | valuation.
| 22 | | (h) "Household income" has the meaning ascribed to that | 23 | | term in the Senior
Citizens and Disabled Persons Property Tax | 24 | | Relief and Pharmaceutical Assistance
Act.
| 25 | | (i) "Collector" means the county collector or, if the taxes | 26 | | to be deferred
are special assessments, an official designated |
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| 1 | | by a unit of local government
to collect special assessments.
| 2 | | (Source: P.A. 94-794, eff. 5-22-06.)
| 3 | | (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
| 4 | | Sec. 3.
A taxpayer may, on or before March 1 of each year,
| 5 | | apply to the county collector of the county where his | 6 | | qualifying
property is located, or to the official designated | 7 | | by a unit of local
government to collect special assessments on | 8 | | the qualifying property, as the
case may be, for a deferral of | 9 | | all or a part of real estate taxes payable
during that year for | 10 | | the preceding year in the case of real estate taxes
other than | 11 | | special assessments, or for a deferral of any installments | 12 | | payable
during that year in the case of special assessments, on | 13 | | all or part of his
qualifying property. The application shall | 14 | | be on a form prescribed by the
Department and furnished by the | 15 | | collector,
(a) showing that the applicant
will be 65 years of | 16 | | age or older by June 1 of the year for which a tax
deferral is | 17 | | claimed, (b) describing the property and verifying that the
| 18 | | property is qualifying property as defined in Section 2, (c) | 19 | | certifying
that the taxpayer has owned and occupied as his | 20 | | residence such
property or other qualifying property in the | 21 | | State for at least the last 3
years except for any periods | 22 | | during which the taxpayer may have temporarily
resided in a | 23 | | nursing or sheltered care home, and (d) specifying whether
the | 24 | | deferral is for all or a part of the taxes, and, if for a part, | 25 | | the amount
of deferral applied for. As to qualifying property |
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| 1 | | not having a separate
assessed valuation, the taxpayer shall | 2 | | also file with the county collector a
written appraisal of the | 3 | | property prepared by a qualified real estate appraiser
together | 4 | | with a certificate signed by the appraiser stating that he has
| 5 | | personally examined the property and setting forth the value of | 6 | | the land and
the value of the buildings thereon occupied by the | 7 | | taxpayer as his residence.
| 8 | | The collector shall grant the tax deferral provided such | 9 | | deferral does not
exceed funds available in the Senior Citizens | 10 | | Real Estate Deferred Tax
Revolving Fund and provided that the | 11 | | owner or owners of such real property have
entered into a tax | 12 | | deferral and recovery agreement with the collector on behalf
of | 13 | | the county or other unit of local government, which agreement | 14 | | expressly
states:
| 15 | | (1) That the total amount of taxes deferred under this Act, | 16 | | plus
interest, for the year for which a tax deferral is claimed | 17 | | as well
as for those previous years for which taxes are not | 18 | | delinquent and
for which such deferral has been claimed may not | 19 | | exceed 80%
of the taxpayer's equity interest in the property | 20 | | for which taxes are
to be deferred and that, if the total | 21 | | deferred taxes plus interest equals
80% of the taxpayer's | 22 | | equity interest in the property, the taxpayer shall
thereafter | 23 | | pay the annual interest due on such deferred taxes plus | 24 | | interest
so that total deferred taxes plus interest will not | 25 | | exceed such 80% of the
taxpayer's equity interest in the | 26 | | property. Effective as of the January 1, 2011 assessment year |
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| 1 | | or tax year 2012 and thereafter, the total amount of any such | 2 | | deferral shall not exceed $5,000 per taxpayer in each tax year.
| 3 | | (2) That any real estate taxes deferred under this Act and | 4 | | any
interest accrued thereon at the rate of 6% per year are a | 5 | | lien on the real
estate and improvements thereon until paid. No | 6 | | sale or transfer of such
real property may be legally closed | 7 | | and recorded until the taxes
which would otherwise have been | 8 | | due on the property, plus accrued
interest, have been paid | 9 | | unless the collector certifies in
writing that an arrangement | 10 | | for prompt payment of the amount due
has been made with his | 11 | | office. The same shall apply if the
property is to be made the | 12 | | subject of a contract of sale.
| 13 | | (3) That upon the death of the taxpayer claiming the | 14 | | deferral
the heirs-at-law, assignees or legatees shall have | 15 | | first
priority to the real property upon which taxes have been | 16 | | deferred
by paying in full the total taxes which would | 17 | | otherwise have been due,
plus interest. However, if such | 18 | | heir-at-law, assignee, or legatee
is a surviving spouse, the | 19 | | tax deferred status of the
property shall be continued during | 20 | | the life of that surviving spouse
if the spouse is 55 years of | 21 | | age or older within 6 months of the
date of death of the | 22 | | taxpayer and enters into a tax deferral and
recovery agreement | 23 | | before the time when deferred taxes become due
under this | 24 | | Section. Any additional taxes deferred, plus interest,
on the | 25 | | real property under a tax deferral and recovery agreement
| 26 | | signed by a surviving spouse shall be added to the taxes and |
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| 1 | | interest
which would otherwise have been due, and the payment | 2 | | of which has been
postponed during the life of such surviving | 3 | | spouse, in determining
the 80% equity requirement provided by | 4 | | this Section.
| 5 | | (4) That if the taxes due, plus interest, are not paid by | 6 | | the heir-at-law,
assignee or legatee or if payment is not | 7 | | postponed during the life of a
surviving spouse, the deferred | 8 | | taxes and interest shall be recovered from the
estate of the | 9 | | taxpayer within one year of the date of his death. In addition,
| 10 | | deferred real estate taxes and any interest accrued thereon are | 11 | | due within 90
days after any tax deferred property ceases to be | 12 | | qualifying property as
defined in 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 approval | 17 | | for such
agreement,
which written approval shall be made a part | 18 | | of such agreement.
| 19 | | (6) That a guardian for a person under legal disability | 20 | | appointed for a
taxpayer who otherwise qualifies under this Act | 21 | | 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.
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| 1 | | If the taxes to be deferred are special assessments, the | 2 | | unit of local
government making the assessments shall forward a | 3 | | copy of the agreement
entered into pursuant to this Section and | 4 | | the bills for such assessments to
the county collector of the | 5 | | county in which the qualifying property is located.
| 6 | | (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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