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| Public Act 102-0644 | ||||
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AN ACT concerning revenue.
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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 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 | ||||
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.
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(b) "Tax deferred property" means the property upon which | ||||
real
estate taxes are deferred under this Act.
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(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.
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(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.
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(e) "Department" means the Department of Revenue.
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(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.
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(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.
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(h) "Household income" has the meaning ascribed to that | ||
term in the Senior
Citizens and Persons with Disabilities | ||
Property Tax Relief
Act.
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(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.
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(Source: P.A. 99-143, eff. 7-27-15.)
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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 | ||
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
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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.
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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:
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(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
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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.
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(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.
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(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
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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.
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(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,
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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.
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If payment is not made when required by this Section, | ||
foreclosure proceedings
may be instituted under the Property | ||
Tax Code.
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(5) That any joint owner has given written prior approval | ||
for such
agreement,
which written approval shall be made a | ||
part of such agreement.
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(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.
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(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.
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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.
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(Source: P.A. 97-481, eff. 8-22-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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