Illinois General Assembly - Full Text of SB2244
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Full Text of SB2244  102nd General Assembly




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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 2021; (iv) $65,000 for
12tax years 2022 through 2025; and (v) $55,000 for tax year 2026
13and thereafter.
14    (b) "Tax deferred property" means the property upon which
15real estate taxes are deferred under this Act.
16    (c) "Homestead" means the land and buildings thereon,
17including a condominium or a dwelling unit in a multidwelling
18building that is owned and operated as a cooperative, occupied
19by the taxpayer as his residence or which are temporarily
20unoccupied by the taxpayer because such taxpayer is
21temporarily residing, for not more than 1 year, in a licensed
22facility as defined in Section 1-113 of the Nursing Home Care



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1    (d) "Real estate taxes" or "taxes" means the taxes on real
2property for which the taxpayer would be liable under the
3Property Tax Code, including special service area taxes, and
4special assessments on benefited real property for which the
5taxpayer would be liable to a unit of local government.
6    (e) "Department" means the Department of Revenue.
7    (f) "Qualifying property" means a homestead which (a) the
8taxpayer or the taxpayer and his spouse own in fee simple or
9are purchasing in fee simple under a recorded instrument of
10sale, (b) is not income-producing property, (c) is not subject
11to a lien for unpaid real estate taxes when a claim under this
12Act is filed, and (d) is not held in trust, other than an
13Illinois land trust with the taxpayer identified as the sole
14beneficiary, if the taxpayer is filing for the program for the
15first time effective as of the January 1, 2011 assessment year
16or tax year 2012 and thereafter.
17    (g) "Equity interest" means the current assessed valuation
18of the qualified property times the fraction necessary to
19convert that figure to full market value minus any outstanding
20debts or liens on that property. In the case of qualifying
21property not having a separate assessed valuation, the
22appraised value as determined by a qualified real estate
23appraiser shall be used instead of the current assessed
25    (h) "Household income" has the meaning ascribed to that
26term in the Senior Citizens and Persons with Disabilities



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1Property Tax Relief Act.
2    (i) "Collector" means the county collector or, if the
3taxes to be deferred are special assessments, an official
4designated by a unit of local government to collect special
6(Source: P.A. 99-143, eff. 7-27-15.)
7    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
8    Sec. 3. A taxpayer may, on or before March 1 of each year,
9apply to the county collector of the county where his
10qualifying property is located, or to the official designated
11by a unit of local government to collect special assessments
12on the qualifying property, as the case may be, for a deferral
13of all or a part of real estate taxes payable during that year
14for the preceding year in the case of real estate taxes other
15than special assessments, or for a deferral of any
16installments payable during that year in the case of special
17assessments, on all or part of his qualifying property. The
18application shall be on a form prescribed by the Department
19and furnished by the collector, (a) showing that the applicant
20will be 65 years of age or older by June 1 of the year for
21which a tax deferral is claimed, (b) describing the property
22and verifying that the property is qualifying property as
23defined in Section 2, (c) certifying that the taxpayer has
24owned and occupied as his residence such property or other
25qualifying property in the State for at least the last 3 years



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



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1taxpayer's equity interest in the property, the taxpayer shall
2thereafter pay the annual interest due on such deferred taxes
3plus interest so that total deferred taxes plus interest will
4not exceed such 80% of the taxpayer's equity interest in the
5property. Effective as of the January 1, 2011 assessment year
6or tax year 2012 and through the 2021 tax year, and beginning
7again with the 2026 tax year thereafter, the total amount of
8any such deferral shall not exceed $5,000 per taxpayer in each
9tax year. For the 2022 tax year through the 2025 tax year, the
10total amount of any such deferral shall not exceed $7,500 per
11taxpayer in each tax year.
12    (2) That any real estate taxes deferred under this Act and
13any interest accrued thereon at the rate of 6% per year are a
14lien on the real estate and improvements thereon until paid.
15No sale or transfer of such real property may be legally closed
16and recorded until the taxes which would otherwise have been
17due on the property, plus accrued interest, have been paid
18unless the collector certifies in writing that an arrangement
19for prompt payment of the amount due has been made with his
20office. The same shall apply if the property is to be made the
21subject of a contract of sale.
22    (3) That upon the death of the taxpayer claiming the
23deferral the heirs-at-law, assignees or legatees shall have
24first priority to the real property upon which taxes have been
25deferred by paying in full the total taxes which would
26otherwise have been due, plus interest. However, if such



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



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1part of such agreement.
2    (6) That a guardian for a person under legal disability
3appointed for a taxpayer who otherwise qualifies under this
4Act may act for the taxpayer in complying with this Act.
5    (7) That a taxpayer or his agent has provided to the
6satisfaction of the collector, sufficient evidence that the
7qualifying property on which the taxes are to be deferred is
8insured against fire or casualty loss for at least the total
9amount of taxes which have been deferred.
10    If the taxes to be deferred are special assessments, the
11unit of local government making the assessments shall forward
12a copy of the agreement entered into pursuant to this Section
13and the bills for such assessments to the county collector of
14the county in which the qualifying property is located.
15(Source: P.A. 97-481, eff. 8-22-11.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.