State of Illinois
90th General Assembly
Legislation

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90_HB1533

      30 ILCS 105/5.122         from Ch. 127, par. 141.122
      30 ILCS 105/6p-4          from Ch. 127, par. 142p4
      35 ILCS 200/15-170
      320 ILCS 30/Act title
      320 ILCS 30/1             from Ch. 67 1/2, par. 451
      320 ILCS 30/2             from Ch. 67 1/2, par. 452
      320 ILCS 30/3             from Ch. 67 1/2, par. 453
      320 ILCS 30/5             from Ch. 67 1/2, par. 455
      320 ILCS 30/7             from Ch. 67 1/2, par. 457
          Amends the Senior Citizens Real Estate Tax Deferral  Act.
      Changes  the  short title to the Senior Citizens and Disabled
      Persons Real Estate Tax Deferral Act. Changes the name of the
      Senior Citizens Real Estate Deferred Tax  Revolving  Fund  to
      the Senior Citizens and Disabled Persons Real Estate Deferred
      Tax  Revolving  Fund.  Provides  that  disabled  persons  are
      eligible  to receive real estate tax deferrals under the Act.
      Amends the State Finance Act and the  Property  Tax  Code  to
      change cross references.  Effective January 1, 1998.
                                                     LRB9004638DNmb
                                               LRB9004638DNmb
 1        AN ACT concerning property tax deferrment.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The State Finance Act is amended by  changing
 5    Sections 5.122 and 6p-4 as follows:
 6        (30 ILCS 105/5.122) (from Ch. 127, par. 141.122)
 7        Sec.  5.122.   The  Senior  Citizens and Disabled Persons
 8    Real Estate Deferred Tax Revolving Fund.
 9    (Source: P.A. 83-1362.)
10        (30 ILCS 105/6p-4) (from Ch. 127, par. 142p4)
11        Sec. 6p-4.  Senior Citizens  and  Disabled  Persons  Real
12    Estate  Deferral  Tax  Revolving  Fund.   As soon as possible
13    after the effective date of the Senior Citizens  Real  Estate
14    Tax  Deferral  Act,  the sum of $330,000 shall be transferred
15    from the State Lottery  Fund  to  the  Senior  Citizens  Real
16    Estate Deferred Tax Revolving Fund by the Comptroller and the
17    State  Treasurer.  Additional funds, as may be necessary, may
18    be appropriated from the General  Revenue  Fund.   Thereafter
19    All  moneys  received by the Department of Revenue in payment
20    of deferred taxes and accrued interest, under  Section  7  of
21    the  Senior  Citizens  and  Disabled  Persons Real Estate Tax
22    Deferral Act, shall be paid  into  the  Senior  Citizens  and
23    Disabled  Persons  Real  Estate  Deferred Tax Revolving Fund.
24    Appropriations from the Senior Citizens and Disabled  Persons
25    Real Estate Deferred Tax Revolving Fund shall only be made to
26    the  Department  of  Revenue  for  making  payments to county
27    collectors as provided in the Senior  Citizens  and  Disabled
28    Persons Real Estate Tax Deferral Act.
29    (Source: P.A. 83-1362.)
                            -2-                LRB9004638DNmb
 1        Section 10.  The Property Tax Code is amended by changing
 2    Section 15-170 as follows:
 3        (35 ILCS 200/15-170)
 4        Sec.  15-170.   Senior  Citizens Homestead Exemption.  An
 5    annual homestead exemption limited, except as described  here
 6    with  relation  to  cooperatives,  to a maximum reduction set
 7    forth below from  the  property's  value,  as   equalized  or
 8    assessed  by  the Department, is granted for property that is
 9    occupied as a residence by a person 65 years of age or  older
10    who  is  liable  for paying real estate taxes on the property
11    and is an owner of record of the property or has a  legal  or
12    equitable   interest   therein  as  evidenced  by  a  written
13    instrument, except for a leasehold  interest,  other  than  a
14    leasehold interest of land on which a single family residence
15    is  located,  which is occupied as a residence by a person 65
16    years or older who has an ownership interest therein,  legal,
17    equitable  or  as  a lessee, and on which he or she is liable
18    for the payment of  property  taxes.  The  maximum  reduction
19    shall   be   $2,500   in  counties  with  3,000,000  or  more
20    inhabitants and $2,000  in  all  other  counties.   For  land
21    improved  with  an apartment building owned and operated as a
22    cooperative or a building which is a life care facility which
23    shall  be  considered  to  be  a  cooperative,  the   maximum
24    reduction from the value of the property, as equalized by the
25    Department,  shall  be multiplied by the number of apartments
26    or units occupied by a person 65 years of age or older who is
27    liable, by contract with the owner or owners of  record,  for
28    paying  property  taxes  on  the  property and is an owner of
29    record of a legal or equitable interest  in  the  cooperative
30    apartment  building,  other  than  a leasehold interest. In a
31    cooperative where a homestead  exemption  has  been  granted,
32    the  cooperative  association  or  its  management firm shall
33    credit the savings resulting from that exemption only to  the
                            -3-                LRB9004638DNmb
 1    apportioned  tax liability of the owner who qualified for the
 2    exemption.  Any person who willfully refuses to so credit the
 3    savings shall be guilty of a Class B misdemeanor. Under  this
 4    Section  and  Section  15-175,  "life  care facility" means a
 5    facility as defined in Section 2 of the Life Care  Facilities
 6    Act, with which the applicant for the homestead exemption has
 7    a  life  care contract as defined in that Act, which requires
 8    the applicant to pay property taxes.
 9        When a homestead exemption has been  granted  under  this
10    Section  and  the  person  qualifying  subsequently becomes a
11    resident of a facility licensed under the Nursing  Home  Care
12    Act,  the  exemption  shall continue so long as the residence
13    continues to be occupied by the qualifying person's spouse if
14    the spouse is 65 years of age or older, or if  the  residence
15    remains unoccupied but is still owned by the person qualified
16    for the homestead exemption.
17        A  person  who will be 65 years of age during the current
18    assessment year shall be eligible to apply for the  homestead
19    exemption  during that assessment year.  Application shall be
20    made during the application period in effect for  the  county
21    of his residence.
22        The  assessor  or  chief  county  assessment  officer may
23    determine the eligibility of a life care facility to  receive
24    the   benefits   provided  by  this  Section,  by  affidavit,
25    application,  visual  inspection,  questionnaire   or   other
26    reasonable  methods  in  order to insure that the tax savings
27    resulting from the exemption are credited by  the  management
28    firm  to  the  apportioned  tax  liability of each qualifying
29    resident.  The assessor may request reasonable proof that the
30    management firm has so credited the exemption.
31        The chief county assessment officer of each  county  with
32    less  than 3,000,000 inhabitants shall provide to each person
33    allowed a homestead exemption under this Section  a  form  to
34    designate  any  other  person  to  receive a duplicate of any
                            -4-                LRB9004638DNmb
 1    notice of delinquency in the payment of  taxes  assessed  and
 2    levied  under  this  Code  on  the  property  of  the  person
 3    receiving  the  exemption.  The duplicate notice  shall be in
 4    addition to the notice required to be provided to the  person
 5    receiving  the  exemption,  and  shall be given in the manner
 6    required by this Code.  The person filing the request for the
 7    duplicate  notice  shall  pay  a   fee   of   $5   to   cover
 8    administrative  costs  to  the supervisor of assessments, who
 9    shall then file the  executed  designation  with  the  county
10    collector.   Notwithstanding any other provision of this Code
11    to the contrary, the filing of such an  executed  designation
12    requires the county collector to provide duplicate notices as
13    indicated by the designation.  A designation may be rescinded
14    by  the  person who executed such designation at any time, in
15    the manner and form required by the chief  county  assessment
16    officer.
17        The  assessor  or  chief  county  assessment  officer may
18    determine the eligibility of residential property to  receive
19    the   homestead   exemption   provided  by  this  Section  by
20    application,  visual  inspection,  questionnaire   or   other
21    reasonable  methods.   The  determination  shall  be  made in
22    accordance with guidelines established by the Department.
23        In counties with less than 3,000,000 inhabitants, if  the
24    assessor  or  chief county assessment officer requires annual
25    application for verification of eligibility for an  exemption
26    once  granted  under  this  Section, the application shall be
27    mailed to the taxpayer.
28        The assessor or chief  county  assessment  officer  shall
29    notify  each person who qualifies for an exemption under this
30    Section that the person may also qualify for deferral of real
31    estate taxes under the Senior Citizens and  Disabled  Persons
32    Real Estate Tax Deferral Act.  The notice shall set forth the
33    qualifications  needed for deferral of real estate taxes, the
34    address and telephone  number  of  county  collector,  and  a
                            -5-                LRB9004638DNmb
 1    statement that applications for deferral of real estate taxes
 2    may be obtained from the county collector.
 3    (Source: P.A. 88-455; 89-412, eff. 11-17-95.)
 4        Section 15.  The Senior Citizens Real Estate Tax Deferral
 5    Act is amended by changing Sections 1, 2, 3, 5, and 7 and the
 6    title of the Act as follows:
 7        (320 ILCS 30/Act title)
 8        An  Act  in  relation  to the deferral of payment of real
 9    estate taxes by persons 65 years of age and over and disabled
10    persons.
11        (Source: P.A. 83-895.)
12        (320 ILCS 30/1) (from Ch. 67 1/2, par. 451)
13        Sec. 1.  Short title. This Act shall be known and may  be
14    cited  as  the  "Senior  Citizens  and  Disabled Persons Real
15    Estate Tax Deferral Act".
16    (Source: P.A. 83-895.)
17        (320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
18        Sec. 2. Definitions. As used in this Act:
19        (a)  "Taxpayer"  means  an  individual  whose   household
20    income for the year is no greater than $25,000.
21        (b)  "Tax  deferred  property"  means  the  property upon
22    which real estate taxes are deferred under this Act.
23        (c)  "Homestead" means the land  and  buildings  thereon,
24    including a condominium or a dwelling unit in a multidwelling
25    building  that  is  owned  and  operated  as  a  cooperative,
26    occupied  by  the  taxpayer  as  his  residence  or which are
27    temporarily unoccupied by the taxpayer because such  taxpayer
28    is  temporarily  residing,  for  not  more  than 1 year, in a
29    licensed facility as defined in Section 1-113 of the  Nursing
30    Home Care Act.
                            -6-                LRB9004638DNmb
 1        (d)  "Real  estate  taxes"  or "taxes" means the taxes on
 2    real property for which the taxpayer would  be  liable  under
 3    the  Property Tax Code, including special service area taxes,
 4    and special assessments on benefited real property for  which
 5    the taxpayer 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)
 8    the taxpayer or the taxpayer and his spouse own in fee simple
 9    or are purchasing in fee simple under a  recorded  instrument
10    of  sale,  (b)  is  not income-producing property, (c) is not
11    subject to a lien for unpaid real estate taxes when  a  claim
12    under this Act is filed.
13        (g)  "Equity   interest"   means   the  current  assessed
14    valuation  of  the  qualified  property  times  the  fraction
15    necessary to convert that figure to full market  value  minus
16    any outstanding debts or liens on that property.  In the case
17    of   qualifying  property  not  having  a  separate  assessed
18    valuation, the appraised value as determined by  a  qualified
19    real  estate  appraiser  shall be used instead of the current
20    assessed valuation.
21        (h)  "Household income" has the meaning ascribed to  that
22    term in the Senior Citizens and Disabled Persons Property Tax
23    Relief and Pharmaceutical Assistance Act.
24        (i)  "Collector"  means  the  county collector or, if the
25    taxes to be deferred are  special  assessments,  an  official
26    designated  by  a unit of local government to collect special
27    assessments.
28        (j)  "Disabled person" has the same meaning as in Section
29    3.14 of the Senior Citizens and Disabled Persons Property Tax
30    Relief and Pharmaceutical Assistance Act.
31    (Source: P.A. 88-268; 88-509; 88-670, eff. 12-2-94.)
32        (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
33        Sec. 3.  Application and requirements.  A  taxpayer  may,
                            -7-                LRB9004638DNmb
 1    on  or  before  March  1  of  each  year, apply to the county
 2    collector of the county where his or her qualifying  property
 3    is  located, or to the official designated by a unit of local
 4    government to collect special assessments on  the  qualifying
 5    property, as the case may be, for a deferral of all or a part
 6    of  real  estate  taxes  payable  during  that  year  for the
 7    preceding year in the case of real estate  taxes  other  than
 8    special  assessments,  or  for a deferral of any installments
 9    payable during that year in the case of special  assessments,
10    on  all  or  part  of  his  or  her qualifying property.  The
11    application shall be on a form prescribed by  the  Department
12    and   furnished  by  the  collector,  showing  that  (a)  the
13    applicant will be 65 years of age or older by June 1  of  the
14    year  for which a tax deferral is claimed or the applicant is
15    a disabled person as defined by Section 3.14  of  the  Senior
16    Citizens   and  Disabled  Persons  Property  Tax  Relief  and
17    Pharmaceutical Assistance Act, (b)  describing  the  property
18    and  verifying  that  the  property is qualifying property as
19    defined in Section 2, (c) certifying that  the  taxpayer  has
20    owned  and  occupied as his or her residence such property or
21    other qualifying property in the State for at least the  last
22    3  years except for any periods during which the taxpayer may
23    have temporarily resided in a nursing or sheltered care home,
24    and (d) specifying whether the deferral is for all or a  part
25    of  the  taxes,  and,  if  for a part, the amount of deferral
26    applied for. As to qualifying property not having a  separate
27    assessed  valuation,  the  taxpayer  shall also file with the
28    county collector a written appraisal of the property prepared
29    by  a  qualified  real  estate  appraiser  together  with   a
30    certificate  signed  by  the appraiser stating that he or she
31    has personally examined the property and  setting  forth  the
32    value  of  the  land  and  the value of the buildings thereon
33    occupied by the taxpayer  as  his  or  her  residence.    The
34    collector shall grant the tax deferral provided such deferral
                            -8-                LRB9004638DNmb
 1    does  not  exceed  funds available in the Senior Citizens and
 2    Disabled Persons Real Estate Deferred Tax Revolving Fund  and
 3    provided  that the owner or owners of such real property have
 4    entered into a tax deferral and recovery agreement  with  the
 5    collector  on  behalf  of  the  county or other unit of local
 6    government, which agreement expressly states:
 7        (1)  that the total amount of taxes deferred  under  this
 8    Act,  plus interest, for the year for which a tax deferral is
 9    claimed as well as for those previous years for  which  taxes
10    are  not  delinquent  and  for  which  such deferral has been
11    claimed may not exceed 80% of the taxpayer's equity  interest
12    in  the property for which taxes are to be deferred and that,
13    if the total deferred taxes plus interest equals 80%  of  the
14    taxpayer's  equity  interest  in  the  property, the taxpayer
15    shall thereafter pay the annual interest due on such deferred
16    taxes  plus  interest  so  that  total  deferred  taxes  plus
17    interest will not exceed such 80% of  the  taxpayer's  equity
18    interest in the property;
19        (2)  that  any  real estate taxes deferred under this Act
20    and any interest accrued thereon at the rate of 6%  per  year
21    are  a lien on the real estate and improvements thereon until
22    paid.  No sale or transfer  of  such  real  property  may  be
23    legally  closed  and  recorded  until  the  taxes which would
24    otherwise  have  been  due  on  the  property,  plus  accrued
25    interest, have been paid unless the  collector  certifies  in
26    writing  that an arrangement for prompt payment of the amount
27    due has been made with his or her  office.   The  same  shall
28    apply if the property is to be made the subject of a contract
29    of sale.
30        (3)  that  upon  the  death  of the taxpayer claiming the
31    deferral the heirs-at-law, assignees or legatees  shall  have
32    first  priority  to  the  real property upon which taxes have
33    been deferred by paying in full the total taxes  which  would
34    otherwise  have  been  due,  plus interest.  However, if such
                            -9-                LRB9004638DNmb
 1    heir-at-law, assignee, or legatee is a surviving spouse,  the
 2    tax deferred status of the property shall be continued during
 3    the  life  of that surviving spouse if the spouse is 55 years
 4    of age or older within 6 months of the date of death  of  the
 5    taxpayer   and  enters  into  a  tax  deferral  and  recovery
 6    agreement before the time  when  deferred  taxes  become  due
 7    under  this  Section.   Any  additional  taxes deferred, plus
 8    interest, on the real  property  under  a  tax  deferral  and
 9    recovery  agreement  signed  by  a  surviving spouse shall be
10    added to the taxes and interest which  would  otherwise  have
11    been  due, and the payment of which has been postponed during
12    the life of such surviving spouse,  in  determining  the  80%
13    equity requirement provided by this Section.
14        (4)  that  if  the taxes due, plus interest, are not paid
15    by the heir-at-law, assignee or legatee or if payment is  not
16    postponed during the life of a surviving spouse, the deferred
17    taxes  and interest shall be recovered from the estate of the
18    taxpayer within one year of the date of his or her death.  In
19    addition, deferred real estate taxes and any interest accrued
20    thereon are  due  within  90  days  after  any  tax  deferred
21    property  ceases  to  be  qualifying  property  as defined in
22    Section 2.
23        If payment is not made when  required  by  this  Section,
24    foreclosure  proceedings may be instituted under the Property
25    Tax Code.
26        (5)  that any joint owner or mortgagee holding a mortgage
27    on such property has given written prior  approval  for  such
28    agreement,  which  written  approval  shall be made a part of
29    such agreement.
30        (6)  that a guardian for a person under legal  disability
31    appointed  for  a taxpayer who otherwise qualifies under this
32    Act may act for the taxpayer in complying with this Act.
33        (7)  that a taxpayer or his or her agent has provided  to
34    the  satisfaction  of the collector, sufficient evidence that
                            -10-               LRB9004638DNmb
 1    the qualifying property on which the taxes are to be deferred
 2    is insured against fire or casualty loss  for  at  least  the
 3    total amount of taxes which have been deferred.
 4        If  the taxes to be deferred are special assessments, the
 5    unit of local government making the assessments shall forward
 6    a copy of the agreement entered into pursuant to this Section
 7    and the bills for such assessments to the county collector of
 8    the county in which the qualifying property is located.
 9    (Source: P.A. 88-670, eff. 12-2-94.)
10        (320 ILCS 30/5) (from Ch. 67 1/2, par. 455)
11        Sec. 5.  Tax bills; payment. The county  collector  shall
12    note  on  his  or  her  books each claim for deferral of real
13    estate taxes which meets the requirements of Section  3  and,
14    when taxes are extended, shall send to the Department the tax
15    bills,  including  special  assessment bills forwarded to the
16    county  collector  under  Section  3,  on  all  tax  deferred
17    property in that collector's county.   The  Department  shall
18    then  pay by June 1 or within 30 days of the receipt of these
19    tax bills, whichever is later, to the county  collector,  for
20    distribution  to  the taxing bodies in his or her county, the
21    total amount of taxes so deferred.  The Department shall make
22    these payments from the Senior Citizens and Disabled  Persons
23    Real Estate Deferred Tax Revolving Fund.
24    (Source: P.A. 84-807.)
25        (320 ILCS 30/7) (from Ch. 67 1/2, par. 457)
26        Sec.  7.  Collection.  When any deferred taxes, including
27    interest, are collected, the moneys shall be  credited  to  a
28    special  account  in  the  treasury  of  the  unit  of  local
29    government  and  the  collector shall notify the treasurer of
30    the unit of local government of the properties for which  the
31    taxes  were  collected  by setting forth a description of the
32    property and the amount of taxes and interest  collected  for
                            -11-               LRB9004638DNmb
 1    each  property.  The treasurer shall remit by the 10th day of
 2    each month the amount of deferred taxes and accrued  interest
 3    paid  during  the  preceding  month,  minus  $50 or the total
 4    amount of deferred  taxes  and  accrued  interest  collected,
 5    whichever  is  less, to the Department.  The remittance shall
 6    be accompanied by a statement giving a description  for  each
 7    property  for  which the taxes were collected and setting out
 8    the amount of the  taxes  and  interest  collected  for  each
 9    property.
10        If the tax deferred property is sold by foreclosure under
11    the  Property Tax Code, the proceeds of the sale which may be
12    applied under that Act to the payment of  real  estate  taxes
13    and interest shall be remitted by the county treasurer to the
14    Department  along  with a description of the property and the
15    amount of taxes and interest collected thereon.
16        When any deferred taxes and accrued interest are received
17    by the  Department,  it  shall  enter  the  amounts  received
18    against  the  accounts  which  have  been  set up for the tax
19    deferred properties and shall within 5 days remit such moneys
20    to the State Treasurer for deposit in the Senior Citizens and
21    Disabled Persons Real Estate Deferred Tax Revolving Fund.
22    (Source: P.A. 88-670, eff. 12-2-94.)
23        Section 99.   Effective  date.   This  Act  takes  effect
24    January 1, 1998.

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