Full Text of HB5813 096th General Assembly
HB5813enr 96TH GENERAL ASSEMBLY
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HB5813 Enrolled |
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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) $50,000 for tax years year 2006 through 2010; | 11 |
| and (iii) $55,000 for tax year 2011 and thereafter.
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| (b) "Tax deferred property" means the property upon which | 13 |
| real
estate taxes are deferred under this Act.
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| (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
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| residing, for not more than 1 year, in a licensed facility as | 20 |
| 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 | 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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| special assessments on
benefited real property for which the | 2 |
| 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 | 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, 2010 assessment year | 13 |
| or tax year 2011 and thereafter .
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| (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.
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| (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.
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| (i) "Collector" means the county collector or, if the taxes | 26 |
| to be deferred
are special assessments, an official designated |
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| by a unit of local government
to collect special assessments.
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| (Source: P.A. 94-794, eff. 5-22-06.)
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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 March 1 of each year,
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| 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
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| 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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| 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
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| 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.
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| 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:
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| (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, 2010 assessment year |
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| or tax year 2011 and thereafter, the total amount of any such | 2 |
| deferral shall not exceed $5,000 per taxpayer in each tax year.
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| (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. If the county collector and | 13 |
| recorder allow such a transfer to occur in violation of this | 14 |
| provision, then at the time of such a finding, the Department | 15 |
| shall withhold, from future deferral payments to the county, | 16 |
| the amount necessary to pay off the deferral account. Interest | 17 |
| on the account shall continue to accrue until such time that | 18 |
| the Department is able to withhold the amount or until such | 19 |
| time that the county pays the total amount due.
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| (3) That upon the death of the taxpayer claiming the | 21 |
| deferral
the heirs-at-law, assignees or legatees shall have | 22 |
| first
priority to the real property upon which taxes have been | 23 |
| deferred
by paying in full the total taxes which would | 24 |
| otherwise have been due,
plus interest. However, if such | 25 |
| heir-at-law, assignee, or legatee
is a surviving spouse, the | 26 |
| tax deferred status of the
property shall be continued during |
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| the life of that surviving spouse
if the spouse is 55 years of | 2 |
| age or older within 6 months of the
date of death of the | 3 |
| taxpayer and enters into a tax deferral and
recovery agreement | 4 |
| before the time when deferred taxes become due
under this | 5 |
| Section. Any additional taxes deferred, plus interest,
on the | 6 |
| 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 | 8 |
| interest
which would otherwise have been due, and the payment | 9 |
| of which has been
postponed during the life of such surviving | 10 |
| spouse, in determining
the 80% equity requirement provided by | 11 |
| this Section.
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| (4) That if the taxes due, plus interest, are not paid by | 13 |
| the heir-at-law,
assignee or legatee or if payment is not | 14 |
| postponed during the life of a
surviving spouse, the deferred | 15 |
| taxes and interest shall be recovered from the
estate of the | 16 |
| 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 | 18 |
| due within 90
days after any tax deferred property ceases to be | 19 |
| qualifying property as
defined in Section 2.
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| If payment is not made when required by this Section, | 21 |
| foreclosure proceedings
may be instituted under the Property | 22 |
| Tax Code.
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| (5) That any joint owner has given written prior approval | 24 |
| for such
agreement,
which written approval shall be made a part | 25 |
| of such agreement.
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| (6) That a guardian for a person under legal disability |
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| appointed for a
taxpayer who otherwise qualifies under this Act | 2 |
| 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 | 4 |
| satisfaction of the
collector, sufficient evidence that the | 5 |
| qualifying property on which the taxes
are to be deferred is | 6 |
| insured against fire or casualty loss for at least the
total | 7 |
| amount of taxes which have been deferred.
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| If the taxes to be deferred are special assessments, the | 9 |
| unit of local
government making the assessments shall forward a | 10 |
| copy of the agreement
entered into pursuant to this Section and | 11 |
| the bills for such assessments to
the county collector of the | 12 |
| 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 | 15 |
| becoming law.
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