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Public Act 102-0644


 

Public Act 0644 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0644
 
SB2244 EnrolledLRB102 16094 HLH 21468 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Senior Citizens Real Estate Tax Deferral
Act is amended by changing Sections 2 and 3 as follows:
 
    (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
    Sec. 2. Definitions. As used in this Act:
    (a) "Taxpayer" means an individual whose household income
for the year is no greater than: (i) $40,000 through tax year
2005; (ii) $50,000 for tax years 2006 through 2011; and (iii)
$55,000 for tax years year 2012 through 2021; (iv) $65,000 for
tax years 2022 through 2025; and (v) $55,000 for tax year 2026
and thereafter.
    (b) "Tax deferred property" means the property upon which
real estate taxes are deferred under this Act.
    (c) "Homestead" means the land and buildings thereon,
including a condominium or a dwelling unit in a multidwelling
building that is owned and operated as a cooperative, occupied
by the taxpayer as his residence or which are temporarily
unoccupied by the taxpayer because such taxpayer is
temporarily residing, for not more than 1 year, in a licensed
facility as defined in Section 1-113 of the Nursing Home Care
Act.
    (d) "Real estate taxes" or "taxes" means the taxes on real
property for which the taxpayer would be liable under the
Property Tax Code, including special service area taxes, and
special assessments on benefited real property for which the
taxpayer would be liable to a unit of local government.
    (e) "Department" means the Department of Revenue.
    (f) "Qualifying property" means a homestead which (a) the
taxpayer or the taxpayer and his spouse own in fee simple or
are purchasing in fee simple under a recorded instrument of
sale, (b) is not income-producing property, (c) is not subject
to a lien for unpaid real estate taxes when a claim under this
Act is filed, and (d) is not held in trust, other than an
Illinois land trust with the taxpayer identified as the sole
beneficiary, if the taxpayer is filing for the program for the
first time effective as of the January 1, 2011 assessment year
or tax year 2012 and thereafter.
    (g) "Equity interest" means the current assessed valuation
of the qualified property times the fraction necessary to
convert that figure to full market value minus any outstanding
debts or liens on that property. In the case of qualifying
property not having a separate assessed valuation, the
appraised value as determined by a qualified real estate
appraiser shall be used instead of the current assessed
valuation.
    (h) "Household income" has the meaning ascribed to that
term in the Senior Citizens and Persons with Disabilities
Property Tax Relief Act.
    (i) "Collector" means the county collector or, if the
taxes to be deferred are special assessments, an official
designated by a unit of local government to collect special
assessments.
(Source: P.A. 99-143, eff. 7-27-15.)
 
    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
    Sec. 3. A taxpayer may, on or before March 1 of each year,
apply to the county collector of the county where his
qualifying property is located, or to the official designated
by a unit of local government to collect special assessments
on the qualifying property, as the case may be, for a deferral
of all or a part of real estate taxes payable during that year
for the preceding year in the case of real estate taxes other
than special assessments, or for a deferral of any
installments payable during that year in the case of special
assessments, on all or part of his qualifying property. The
application shall be on a form prescribed by the Department
and furnished by the collector, (a) showing that the applicant
will be 65 years of age or older by June 1 of the year for
which a tax deferral is claimed, (b) describing the property
and verifying that the property is qualifying property as
defined in Section 2, (c) certifying that the taxpayer has
owned and occupied as his residence such property or other
qualifying property in the State for at least the last 3 years
except for any periods during which the taxpayer may have
temporarily resided in a nursing or sheltered care home, and
(d) specifying whether the deferral is for all or a part of the
taxes, and, if for a part, the amount of deferral applied for.
As to qualifying property not having a separate assessed
valuation, the taxpayer shall also file with the county
collector a written appraisal of the property prepared by a
qualified real estate appraiser together with a certificate
signed by the appraiser stating that he has personally
examined the property and setting forth the value of the land
and the value of the buildings thereon occupied by the
taxpayer as his residence.
    The collector shall grant the tax deferral provided such
deferral does not exceed funds available in the Senior
Citizens Real Estate Deferred Tax Revolving Fund and provided
that the owner or owners of such real property have entered
into a tax deferral and recovery agreement with the collector
on behalf of the county or other unit of local government,
which agreement expressly states:
    (1) That the total amount of taxes deferred under this
Act, plus interest, for the year for which a tax deferral is
claimed as well as for those previous years for which taxes are
not delinquent and for which such deferral has been claimed
may not exceed 80% of the taxpayer's equity interest in the
property for which taxes are to be deferred and that, if the
total deferred taxes plus interest equals 80% of the
taxpayer's equity interest in the property, the taxpayer shall
thereafter pay the annual interest due on such deferred taxes
plus interest so that total deferred taxes plus interest will
not exceed such 80% of the taxpayer's equity interest in the
property. Effective as of the January 1, 2011 assessment year
or tax year 2012 and through the 2021 tax year, and beginning
again with the 2026 tax year thereafter, the total amount of
any such deferral shall not exceed $5,000 per taxpayer in each
tax year. For the 2022 tax year through the 2025 tax year, the
total amount of any such deferral shall not exceed $7,500 per
taxpayer in each tax year.
    (2) That any real estate taxes deferred under this Act and
any interest accrued thereon at the rate of 6% per year are a
lien on the real estate and improvements thereon until paid.
No sale or transfer of such real property may be legally closed
and recorded until the taxes which would otherwise have been
due on the property, plus accrued interest, have been paid
unless the collector certifies in writing that an arrangement
for prompt payment of the amount due has been made with his
office. The same shall apply if the property is to be made the
subject of a contract of sale.
    (3) That upon the death of the taxpayer claiming the
deferral the heirs-at-law, assignees or legatees shall have
first priority to the real property upon which taxes have been
deferred by paying in full the total taxes which would
otherwise have been due, plus interest. However, if such
heir-at-law, assignee, or legatee is a surviving spouse, the
tax deferred status of the property shall be continued during
the life of that surviving spouse if the spouse is 55 years of
age or older within 6 months of the date of death of the
taxpayer and enters into a tax deferral and recovery agreement
before the time when deferred taxes become due under this
Section. Any additional taxes deferred, plus interest, on the
real property under a tax deferral and recovery agreement
signed by a surviving spouse shall be added to the taxes and
interest which would otherwise have been due, and the payment
of which has been postponed during the life of such surviving
spouse, in determining the 80% equity requirement provided by
this Section.
    (4) That if the taxes due, plus interest, are not paid by
the heir-at-law, assignee or legatee or if payment is not
postponed during the life of a surviving spouse, the deferred
taxes and interest shall be recovered from the estate of the
taxpayer within one year of the date of his death. In addition,
deferred real estate taxes and any interest accrued thereon
are due within 90 days after any tax deferred property ceases
to be qualifying property as defined in Section 2.
    If payment is not made when required by this Section,
foreclosure proceedings may be instituted under the Property
Tax Code.
    (5) That any joint owner has given written prior approval
for such agreement, which written approval shall be made a
part of such agreement.
    (6) That a guardian for a person under legal disability
appointed for a taxpayer who otherwise qualifies under this
Act may act for the taxpayer in complying with this Act.
    (7) That a taxpayer or his agent has provided to the
satisfaction of the collector, sufficient evidence that the
qualifying property on which the taxes are to be deferred is
insured against fire or casualty loss for at least the total
amount of taxes which have been deferred.
    If the taxes to be deferred are special assessments, the
unit of local government making the assessments shall forward
a copy of the agreement entered into pursuant to this Section
and the bills for such assessments to the county collector of
the county in which the qualifying property is located.
(Source: P.A. 97-481, eff. 8-22-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/27/2021