94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2193

 

Introduced 1/11/2006, by Sen. William E. Peterson

 

SYNOPSIS AS INTRODUCED:
 
320 ILCS 30/2   from Ch. 67 1/2, par. 452
320 ILCS 30/3   from Ch. 67 1/2, par. 453

    Amends the Senior Citizens Real Estate Tax Deferral Act. In the definition of "taxpayer", increases the income limitation, beginning with the 2006 tax year, from $40,000 to $45,000 per year. Requires that applications for the tax deferral must be made by May 1 (now, March 1) of each year. Effective immediately.


LRB094 13135 BDD 47985 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2193 LRB094 13135 BDD 47985 b

1     AN ACT concerning aging.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Senior Citizens Real Estate Tax Deferral Act
5 is amended by changing Sections 2 and 3 as follows:
 
6     (320 ILCS 30/2)  (from Ch. 67 1/2, par. 452)
7     Sec. 2. Definitions. As used in this Act:
8     (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) $45,000 for tax year 2006 and thereafter.
11     (b) "Tax deferred property" means the property upon which
12 real estate taxes are deferred under this Act.
13     (c) "Homestead" means the land and buildings thereon,
14 including a condominium or a dwelling unit in a multidwelling
15 building that is owned and operated as a cooperative, occupied
16 by the taxpayer as his residence or which are temporarily
17 unoccupied by the taxpayer because such taxpayer is temporarily
18 residing, for not more than 1 year, in a licensed facility as
19 defined in Section 1-113 of the Nursing Home Care Act.
20     (d) "Real estate taxes" or "taxes" means the taxes on real
21 property for which the taxpayer would be liable under the
22 Property Tax Code, including special service area taxes, and
23 special assessments on benefited real property for which the
24 taxpayer would be liable to a unit of local government.
25     (e) "Department" means the Department of Revenue.
26     (f) "Qualifying property" means a homestead which (a) the
27 taxpayer or the taxpayer and his spouse own in fee simple or
28 are purchasing in fee simple under a recorded instrument of
29 sale, (b) is not income-producing property, (c) is not subject
30 to a lien for unpaid real estate taxes when a claim under this
31 Act is filed.
32     (g) "Equity interest" means the current assessed valuation

 

 

SB2193 - 2 - LRB094 13135 BDD 47985 b

1 of the qualified property times the fraction necessary to
2 convert that figure to full market value minus any outstanding
3 debts or liens on that property. In the case of qualifying
4 property not having a separate assessed valuation, the
5 appraised value as determined by a qualified real estate
6 appraiser shall be used instead of the current assessed
7 valuation.
8     (h) "Household income" has the meaning ascribed to that
9 term in the Senior Citizens and Disabled Persons Property Tax
10 Relief and Pharmaceutical Assistance Act.
11     (i) "Collector" means the county collector or, if the taxes
12 to be deferred are special assessments, an official designated
13 by a unit of local government to collect special assessments.
14 (Source: P.A. 92-639, eff. 1-1-03.)
 
15     (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
16     Sec. 3. A taxpayer may, on or before May 1 March 1 of each
17 year, apply to the county collector of the county where his
18 qualifying property is located, or to the official designated
19 by a unit of local government to collect special assessments on
20 the qualifying property, as the case may be, for a deferral of
21 all or a part of real estate taxes payable during that year for
22 the preceding year in the case of real estate taxes other than
23 special assessments, or for a deferral of any installments
24 payable during that year in the case of special assessments, on
25 all or part of his qualifying property. The application shall
26 be on a form prescribed by the Department and furnished by the
27 collector, (a) showing that the applicant will be 65 years of
28 age or older by June 1 of the year for which a tax deferral is
29 claimed, (b) describing the property and verifying that the
30 property is qualifying property as defined in Section 2, (c)
31 certifying that the taxpayer has owned and occupied as his
32 residence such property or other qualifying property in the
33 State for at least the last 3 years except for any periods
34 during which the taxpayer may have temporarily resided in a
35 nursing or sheltered care home, and (d) specifying whether the

 

 

SB2193 - 3 - LRB094 13135 BDD 47985 b

1 deferral is for all or a part of the taxes, and, if for a part,
2 the amount of deferral applied for. As to qualifying property
3 not having a separate assessed valuation, the taxpayer shall
4 also file with the county collector a written appraisal of the
5 property prepared by a qualified real estate appraiser together
6 with a certificate signed by the appraiser stating that he has
7 personally examined the property and setting forth the value of
8 the land and the value of the buildings thereon occupied by the
9 taxpayer as his residence.
10     The collector shall grant the tax deferral provided such
11 deferral does not exceed funds available in the Senior Citizens
12 Real Estate Deferred Tax Revolving Fund and provided that the
13 owner or owners of such real property have entered into a tax
14 deferral and recovery agreement with the collector on behalf of
15 the county or other unit of local government, which agreement
16 expressly states:
17     (1) That the total amount of taxes deferred under this Act,
18 plus interest, for the year for which a tax deferral is claimed
19 as well as for those previous years for which taxes are not
20 delinquent and for which such deferral has been claimed may not
21 exceed 80% of the taxpayer's equity interest in the property
22 for which taxes are to be deferred and that, if the total
23 deferred taxes plus interest equals 80% of the taxpayer's
24 equity interest in the property, the taxpayer shall thereafter
25 pay the annual interest due on such deferred taxes plus
26 interest so that total deferred taxes plus interest will not
27 exceed such 80% of the taxpayer's equity interest in the
28 property.
29     (2) That any real estate taxes deferred under this Act and
30 any interest accrued thereon at the rate of 6% per year are a
31 lien on the real estate and improvements thereon until paid. No
32 sale or transfer of such real property may be legally closed
33 and recorded until the taxes which would otherwise have been
34 due on the property, plus accrued interest, have been paid
35 unless the collector certifies in writing that an arrangement
36 for prompt payment of the amount due has been made with his

 

 

SB2193 - 4 - LRB094 13135 BDD 47985 b

1 office. The same shall apply if the property is to be made the
2 subject of a contract of sale.
3     (3) That upon the death of the taxpayer claiming the
4 deferral the heirs-at-law, assignees or legatees shall have
5 first priority to the real property upon which taxes have been
6 deferred by paying in full the total taxes which would
7 otherwise have been due, plus interest. However, if such
8 heir-at-law, assignee, or legatee is a surviving spouse, the
9 tax deferred status of the property shall be continued during
10 the life of that surviving spouse if the spouse is 55 years of
11 age or older within 6 months of the date of death of the
12 taxpayer and enters into a tax deferral and recovery agreement
13 before the time when deferred taxes become due under this
14 Section. Any additional taxes deferred, plus interest, on the
15 real property under a tax deferral and recovery agreement
16 signed by a surviving spouse shall be added to the taxes and
17 interest which would otherwise have been due, and the payment
18 of which has been postponed during the life of such surviving
19 spouse, in determining the 80% equity requirement provided by
20 this Section.
21     (4) That if the taxes due, plus interest, are not paid by
22 the heir-at-law, assignee or legatee or if payment is not
23 postponed during the life of a surviving spouse, the deferred
24 taxes and interest shall be recovered from the estate of the
25 taxpayer within one year of the date of his death. In addition,
26 deferred real estate taxes and any interest accrued thereon are
27 due within 90 days after any tax deferred property ceases to be
28 qualifying property as defined in Section 2.
29     If payment is not made when required by this Section,
30 foreclosure proceedings may be instituted under the Property
31 Tax Code.
32     (5) That any joint owner has given written prior approval
33 for such agreement, which written approval shall be made a part
34 of such agreement.
35     (6) That a guardian for a person under legal disability
36 appointed for a taxpayer who otherwise qualifies under this Act

 

 

SB2193 - 5 - LRB094 13135 BDD 47985 b

1 may act for the taxpayer in complying with this Act.
2     (7) That a taxpayer or his agent has provided to the
3 satisfaction of the collector, sufficient evidence that the
4 qualifying property on which the taxes are to be deferred is
5 insured against fire or casualty loss for at least the total
6 amount of taxes which have been deferred.
7     If the taxes to be deferred are special assessments, the
8 unit of local government making the assessments shall forward a
9 copy of the agreement entered into pursuant to this Section and
10 the bills for such assessments to the county collector of the
11 county in which the qualifying property is located.
12 (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.