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1 | AN ACT concerning tax deferral.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Senior Citizens Real Estate Tax Deferral Act | ||||||||||||||||||||||||||||||||||||||||||
5 | is amended by changing the title of the Act and Sections 1, 2, | ||||||||||||||||||||||||||||||||||||||||||
6 | 3, 4, 5, 6, 7, and 8 and by adding Section 8.1 as follows:
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7 | (320 ILCS 30/Act title)
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8 | An Act in relation to the deferral of payment of real | ||||||||||||||||||||||||||||||||||||||||||
9 | estate taxes by persons
65 years of age and over .
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10 | (320 ILCS 30/1) (from Ch. 67 1/2, par. 451)
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11 | Sec. 1. Short title.
This Act shall be known and may be | ||||||||||||||||||||||||||||||||||||||||||
12 | cited as the
"Senior Citizens Real Estate Tax Deferral Act " .
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13 | (Source: P.A. 83-895.)
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14 | (320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
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15 | Sec. 2. Definitions. As used in this Act:
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16 | (a) "Taxpayer" means an individual whose household income | ||||||||||||||||||||||||||||||||||||||||||
17 | for the year
is no greater than $40,000.
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18 | (b) "Tax deferred property" means the property upon which | ||||||||||||||||||||||||||||||||||||||||||
19 | real
estate taxes are deferred under this Act.
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20 | (c) "Homestead" means the land and buildings thereon, | ||||||||||||||||||||||||||||||||||||||||||
21 | including a
condominium or a dwelling unit in a multidwelling | ||||||||||||||||||||||||||||||||||||||||||
22 | building that is owned and
operated as a cooperative, occupied | ||||||||||||||||||||||||||||||||||||||||||
23 | by the taxpayer as his or her residence or that
which
are | ||||||||||||||||||||||||||||||||||||||||||
24 | temporarily unoccupied by the taxpayer because that
such
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25 | taxpayer is temporarily
residing, for not more than one
1 year, | ||||||||||||||||||||||||||||||||||||||||||
26 | in a licensed facility as defined in
Section 1-113 of the | ||||||||||||||||||||||||||||||||||||||||||
27 | Nursing Home Care Act.
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28 | (d) "Real estate taxes" or "taxes" means the taxes on real | ||||||||||||||||||||||||||||||||||||||||||
29 | property for
which the taxpayer would be liable under the | ||||||||||||||||||||||||||||||||||||||||||
30 | Property Tax Code, including special service area taxes, and |
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1 | special assessments on
benefited real property for which the | ||||||
2 | taxpayer would be liable to a unit of
local government.
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3 | (e) "Department" means the Department of Revenue.
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4 | (f) "Qualifying property" means a homestead that
which (a) | ||||||
5 | the taxpayer or the
taxpayer and his or her spouse own in fee | ||||||
6 | simple or are purchasing in fee simple under
a recorded | ||||||
7 | instrument of sale, (b) is not income-producing property, (c) | ||||||
8 | is not
subject to a lien for unpaid real estate taxes when a | ||||||
9 | claim under this Act is
filed.
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10 | (g) "Equity interest" means the current assessed valuation | ||||||
11 | of the qualified
property times the fraction necessary to | ||||||
12 | convert that figure to full market
value minus any outstanding | ||||||
13 | debts or liens on that property. In the case of
qualifying | ||||||
14 | property not having a separate assessed valuation, the | ||||||
15 | appraised
value as determined by a qualified real estate | ||||||
16 | appraiser shall be used instead
of the current assessed | ||||||
17 | valuation.
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18 | (h) "Household income" has the meaning ascribed to that | ||||||
19 | term in the Senior
Citizens and Disabled Persons Property Tax | ||||||
20 | Relief and Pharmaceutical Assistance
Act.
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21 | (i) "Collector" means the county collector or, if the taxes | ||||||
22 | to be deferred
are special assessments, an official designated | ||||||
23 | by a unit of local government
to collect special assessments.
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24 | (Source: P.A. 92-639, eff. 1-1-03.)
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25 | (320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
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26 | Sec. 3. Deferral.
A taxpayer may, on or before March 1 of | ||||||
27 | each year,
apply to the county collector of the county where | ||||||
28 | his or her qualifying
property is located, or to the official | ||||||
29 | designated by a unit of local
government to collect special | ||||||
30 | assessments on the qualifying property, as the
case may be, for | ||||||
31 | a deferral of all or a part of real estate taxes payable
during | ||||||
32 | that year for the preceding year in the case of real estate | ||||||
33 | taxes
other than special assessments, or for a deferral of any | ||||||
34 | installments payable
during that year in the case of special | ||||||
35 | assessments, on all or part of his
qualifying property. The |
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1 | application shall be on a form prescribed by the
Department and | ||||||
2 | furnished by the collector,
(a) showing that the applicant
will | ||||||
3 | be 65 years of age or older by June 1 of the year for which a | ||||||
4 | tax
deferral is claimed, (b) describing the property and | ||||||
5 | verifying that the
property is qualifying property as defined | ||||||
6 | in Section 2, (b)
(c) certifying
that the taxpayer has owned | ||||||
7 | and occupied as his or her residence such
property or other | ||||||
8 | qualifying property in the State for at least the last 3
years | ||||||
9 | except for any periods during which the taxpayer may have | ||||||
10 | temporarily
resided in a nursing or sheltered care home, and | ||||||
11 | (c)
(d) specifying whether
the deferral is for all or a part of | ||||||
12 | the taxes, and, if for a part, the amount
of deferral applied | ||||||
13 | for. As to qualifying property not having a separate
assessed | ||||||
14 | valuation, the taxpayer shall also file with the county | ||||||
15 | collector a
written appraisal of the property prepared by a | ||||||
16 | qualified real estate appraiser
together with a certificate | ||||||
17 | signed by the appraiser stating that he has
personally examined | ||||||
18 | the property and setting forth the value of the land and
the | ||||||
19 | value of the buildings thereon occupied by the taxpayer as his | ||||||
20 | or her residence.
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21 | The collector shall grant the tax deferral provided the
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22 | such deferral does not
exceed funds available in the Senior | ||||||
23 | Citizens Real Estate Deferred Tax
Revolving Fund and provided | ||||||
24 | that the owner or owners of the
such real property have
entered | ||||||
25 | into a tax deferral and recovery agreement with the collector | ||||||
26 | on behalf
of the county or other unit of local government, | ||||||
27 | which agreement expressly
states:
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28 | (1) That the total amount of taxes deferred under this Act, | ||||||
29 | plus
interest, for the year for which a tax deferral is claimed | ||||||
30 | as well
as for those previous years for which taxes are not | ||||||
31 | delinquent and
for which the
such deferral has been claimed may | ||||||
32 | not exceed 80%
of the taxpayer's equity interest in the | ||||||
33 | property for which taxes are
to be deferred and that, if the | ||||||
34 | total deferred taxes plus interest equals
80% of the taxpayer's | ||||||
35 | equity interest in the property, the taxpayer shall
thereafter | ||||||
36 | pay the annual interest due on the
such deferred taxes plus |
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1 | interest
so that total deferred taxes plus interest will not | ||||||
2 | exceed such 80% of the
taxpayer's equity interest in the | ||||||
3 | property.
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4 | (2) That any real estate taxes deferred under this Act and | ||||||
5 | any
interest accrued thereon at the rate of 6% per year are a | ||||||
6 | lien on the real
estate and improvements thereon until paid. No | ||||||
7 | sale or transfer of the
such
real property may be legally | ||||||
8 | closed and recorded until the taxes
that
which would otherwise | ||||||
9 | have been due on the property, plus accrued
interest, have been | ||||||
10 | paid unless the collector certifies in
writing that an | ||||||
11 | arrangement for prompt payment of the amount due
has been made | ||||||
12 | with his or her office. The same shall apply if the
property is | ||||||
13 | to be made the subject of a contract of sale.
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14 | (3) That upon the death of the taxpayer claiming the | ||||||
15 | deferral ,
the heirs-at-law, assignees , or legatees shall have | ||||||
16 | first
priority to the real property upon which taxes have been | ||||||
17 | deferred
by paying in full the total taxes that
which would | ||||||
18 | otherwise have been due,
plus interest. However, if the
such
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19 | heir-at-law, assignee, or legatee
is a surviving spouse, the | ||||||
20 | tax deferred status of the
property shall be continued during | ||||||
21 | the life of that surviving spouse
if the spouse is 55 years of | ||||||
22 | age or older within 6 months of the
date of death of the | ||||||
23 | taxpayer and enters into a tax deferral and
recovery agreement | ||||||
24 | before the time when deferred taxes become due
under this | ||||||
25 | Section. Any additional taxes deferred, plus interest,
on the | ||||||
26 | real property under a tax deferral and recovery agreement
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27 | signed by a surviving spouse shall be added to the taxes and | ||||||
28 | interest
that
which would otherwise have been due, and the | ||||||
29 | payment of which has been
postponed during the life of the
such
| ||||||
30 | surviving spouse, in determining
the 80% equity requirement | ||||||
31 | provided by this Section.
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32 | (4) That if the taxes due, plus interest, are not paid by | ||||||
33 | the heir-at-law,
assignee , or legatee or if payment is not | ||||||
34 | postponed during the life of a
surviving spouse, the deferred | ||||||
35 | taxes and interest shall be recovered from the
estate of the | ||||||
36 | taxpayer within one year after
of the date of his or her death. |
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1 | In addition,
deferred real estate taxes and any interest | ||||||
2 | accrued thereon are due within 90
days after any tax deferred | ||||||
3 | property ceases to be qualifying property as
defined in Section | ||||||
4 | 2.
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5 | If payment is not made when required by this Section, | ||||||
6 | foreclosure proceedings
may be instituted under the Property | ||||||
7 | Tax Code.
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8 | (5) That any joint owner has given written prior approval | ||||||
9 | for such
agreement,
which written approval shall be made a part | ||||||
10 | of the
such agreement.
| ||||||
11 | (6) That a guardian for a person under legal disability | ||||||
12 | appointed for a
taxpayer who otherwise qualifies under this Act | ||||||
13 | may act for the taxpayer in
complying with this Act.
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14 | (7) That a taxpayer or his or her agent has provided to the | ||||||
15 | satisfaction of the
collector, sufficient evidence that the | ||||||
16 | qualifying property on which the taxes
are to be deferred is | ||||||
17 | insured against fire or casualty loss for at least the
total | ||||||
18 | amount of taxes that
which have been deferred.
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19 | If the taxes to be deferred are special assessments, the | ||||||
20 | unit of local
government making the assessments shall forward a | ||||||
21 | copy of the agreement
entered into pursuant to this Section and | ||||||
22 | the bills for those
such assessments to
the county collector of | ||||||
23 | the county in which the qualifying property is located.
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24 | (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
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25 | (320 ILCS 30/4) (from Ch. 67 1/2, par. 454)
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26 | Sec. 4. Recording of statement.
In the case of each tax | ||||||
27 | deferral and recovery agreement
entered into between the | ||||||
28 | collector and the owner or owners of
qualifying property, the | ||||||
29 | collector shall forthwith cause to
be recorded with the | ||||||
30 | recorder of the county in
which the qualifying property is | ||||||
31 | located a statement of their
action , which shall constitute a | ||||||
32 | lien upon the real estate and improvements
thereon covered by | ||||||
33 | the
such agreement for those
such taxes as have been deferred
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34 | under the provisions of this Act, plus accrued interest as | ||||||
35 | provided for by
Section 3.
In the case of a dwelling unit in a |
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1 | multidwelling building that is owned and
operated as a | ||||||
2 | cooperative, the lien shall be upon only that portion of the | ||||||
3 | real
estate that constitutes a homestead exemption occupied by | ||||||
4 | the taxpayer.
The statement shall name the owner or owners and | ||||||
5 | shall include a
description of the real estate adequate for | ||||||
6 | identification. The filing fee
for the
such statement shall be | ||||||
7 | paid by the county or other unit of local
government and shall | ||||||
8 | be added to and become a part of the deferred taxes due.
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9 | (Source: P.A. 88-268.)
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10 | (320 ILCS 30/5) (from Ch. 67 1/2, par. 455)
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11 | Sec. 5. The county collector shall note on his or her books | ||||||
12 | each
claim for deferral of real estate taxes that
which meets | ||||||
13 | the requirements
of Section 3 and, when taxes are extended, | ||||||
14 | shall send to the
Department the tax bills, including special | ||||||
15 | assessment bills forwarded to
the county collector under | ||||||
16 | Section 3, on all tax deferred property in that
collector's | ||||||
17 | county. The Department shall then pay by June 1 or within 30 | ||||||
18 | days
after
of the receipt of these tax bills, whichever is | ||||||
19 | later, to the county
collector, for distribution to the taxing | ||||||
20 | bodies in his county, the
total amount of taxes so deferred. | ||||||
21 | The Department shall make these
payments from the Senior | ||||||
22 | Citizens Real Estate Deferred Tax Revolving Fund.
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23 | (Source: P.A. 84-807.)
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24 | (320 ILCS 30/6) (from Ch. 67 1/2, par. 456)
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25 | Sec. 6. Advance payment.
All or any part of taxes deferred | ||||||
26 | under this Act and
the accrued interest thereon, which are not | ||||||
27 | due under a valid
deferral and recovery agreement, may be paid | ||||||
28 | to the collector
at any time by the taxpayer or his or her
| ||||||
29 | spouse, or, if no objection is
made by the taxpayer within 10 | ||||||
30 | days after the collector mails him
or her a written notice of | ||||||
31 | the tender of such a payment, by a child, heir ,
or next of kin | ||||||
32 | of the taxpayer or other person claiming a legal or
equitable | ||||||
33 | interest in the property. In the absence of a valid
agreement | ||||||
34 | to the contrary and except as otherwise provided by law,
such a |
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1 | payment by a person other than the taxpayer or his or her
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2 | spouse
confers no interest in the property nor claim against | ||||||
3 | the estate.
Payments made under this Section shall be applied | ||||||
4 | first against
accrued interest and any remainder against the | ||||||
5 | deferred taxes
and do not affect the deferred tax status of the | ||||||
6 | property.
| ||||||
7 | (Source: P.A. 84-807.)
| ||||||
8 | (320 ILCS 30/7) (from Ch. 67 1/2, par. 457)
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9 | Sec. 7. Collection and deposit.
When any deferred taxes, | ||||||
10 | including interest, are collected, the
moneys shall be credited | ||||||
11 | to a special account in the treasury of the unit of
local | ||||||
12 | government and the collector shall notify the treasurer of the | ||||||
13 | unit of
local government of the properties for which the taxes | ||||||
14 | were collected by
setting forth a description of the property | ||||||
15 | and the amount of taxes and
interest collected for each | ||||||
16 | property. The treasurer shall remit by the 10th day
of each | ||||||
17 | month the amount of deferred taxes and accrued interest paid | ||||||
18 | during the
preceding month, minus $50 or the total amount of | ||||||
19 | deferred taxes and accrued
interest collected, whichever is | ||||||
20 | less, to the Department. The remittance shall
be accompanied by | ||||||
21 | a statement giving a description for each property for which
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22 | the taxes were collected and setting out the amount of the | ||||||
23 | taxes and interest
collected for each property.
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24 | If the tax deferred property is sold by foreclosure under | ||||||
25 | the Property Tax
Code, the proceeds of the sale which may be | ||||||
26 | applied
under that Act to the payment of real estate taxes and | ||||||
27 | interest shall be
remitted by the county treasurer to the | ||||||
28 | Department along with a description of
the property and the | ||||||
29 | amount of taxes and interest collected thereon.
| ||||||
30 | When any deferred taxes and accrued interest are received | ||||||
31 | by the Department,
it shall enter the amounts received against | ||||||
32 | the accounts that
which have been set up
for the tax deferred | ||||||
33 | properties and shall within 5 days remit those
such moneys to
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34 | the State Treasurer for deposit into
in the Senior Citizens
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35 | Real Estate Deferred Tax
Revolving Fund.
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1 | (Source: P.A. 88-670, eff. 12-2-94.)
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2 | (320 ILCS 30/8) (from Ch. 67 1/2, par. 458)
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3 | Sec. 8. Mortgages; grants.
Nothing in this Act (a) affects | ||||||
4 | any provision of
any mortgage or other instrument relating to | ||||||
5 | land requiring a
person to pay real estate taxes or (b) affects | ||||||
6 | the eligibility of any
person to receive any grant pursuant to | ||||||
7 | the " Senior Citizens and Disabled
Persons Property Tax Relief | ||||||
8 | and Pharmaceutical Assistance Act " .
| ||||||
9 | (Source: P.A. 84-807; 84-832.)
| ||||||
10 | (320 ILCS 30/8.1 new)
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11 | Sec. 8.1. Cross-references. Any reference in any other law, | ||||||
12 | rule, form, or other document (i) to the Senior Citizens Real | ||||||
13 | Estate Tax Deferral Act is deemed to be a reference to the Real | ||||||
14 | Estate Tax Deferral Act and (ii) to the Senior Citizens Real | ||||||
15 | Estate Deferral Tax Revolving Fund is deemed to be a reference | ||||||
16 | to the Real Estate Deferral Tax Revolving Fund.
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