State of Illinois
2015 and 2016


Introduced , by Rep. Jack D. Franks


320 ILCS 30/3  from Ch. 67 1/2, par. 453

    Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the rate of interest for taxes deferred on or after the effective date is equal to the most recent yield on a 30-year treasury bond as of the date the taxes were deferred, but not to exceed 6% per year (currently, the rate is 6% per year). Effective immediately.

LRB099 04175 HLH 24196 b






HB1439LRB099 04175 HLH 24196 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Senior Citizens Real Estate Tax Deferral Act
5is amended by changing Section 3 as follows:
6    (320 ILCS 30/3)  (from Ch. 67 1/2, par. 453)
7    Sec. 3. A taxpayer may, on or before March 1 of each year,
8apply to the county collector of the county where his
9qualifying property is located, or to the official designated
10by a unit of local government to collect special assessments on
11the qualifying property, as the case may be, for a deferral of
12all or a part of real estate taxes payable during that year for
13the preceding year in the case of real estate taxes other than
14special assessments, or for a deferral of any installments
15payable during that year in the case of special assessments, on
16all or part of his qualifying property. The application shall
17be on a form prescribed by the Department and furnished by the
18collector, (a) showing that the applicant will be 65 years of
19age or older by June 1 of the year for which a tax deferral is
20claimed, (b) describing the property and verifying that the
21property is qualifying property as defined in Section 2, (c)
22certifying that the taxpayer has owned and occupied as his
23residence such property or other qualifying property in the



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1State for at least the last 3 years except for any periods
2during which the taxpayer may have temporarily resided in a
3nursing or sheltered care home, and (d) specifying whether the
4deferral is for all or a part of the taxes, and, if for a part,
5the amount of deferral applied for. As to qualifying property
6not having a separate assessed valuation, the taxpayer shall
7also file with the county collector a written appraisal of the
8property prepared by a qualified real estate appraiser together
9with a certificate signed by the appraiser stating that he has
10personally examined the property and setting forth the value of
11the land and the value of the buildings thereon occupied by the
12taxpayer as his residence.
13    The collector shall grant the tax deferral provided such
14deferral does not exceed funds available in the Senior Citizens
15Real Estate Deferred Tax Revolving Fund and provided that the
16owner or owners of such real property have entered into a tax
17deferral and recovery agreement with the collector on behalf of
18the county or other unit of local government, which agreement
19expressly states:
20    (1) That the total amount of taxes deferred under this Act,
21plus interest, for the year for which a tax deferral is claimed
22as well as for those previous years for which taxes are not
23delinquent and for which such deferral has been claimed may not
24exceed 80% of the taxpayer's equity interest in the property
25for which taxes are to be deferred and that, if the total
26deferred taxes plus interest equals 80% of the taxpayer's



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1equity interest in the property, the taxpayer shall thereafter
2pay the annual interest due on such deferred taxes plus
3interest so that total deferred taxes plus interest will not
4exceed such 80% of the taxpayer's equity interest in the
5property. Effective as of the January 1, 2011 assessment year
6or tax year 2012 and thereafter, the total amount of any such
7deferral shall not exceed $5,000 per taxpayer in each tax year.
8    (2) That any real estate taxes deferred under this Act and
9any interest accrued thereon at the rate of 6% per year are a
10lien on the real estate and improvements thereon until paid. No
11sale or transfer of such real property may be legally closed
12and recorded until the taxes which would otherwise have been
13due on the property, plus accrued interest, have been paid
14unless the collector certifies in writing that an arrangement
15for prompt payment of the amount due has been made with his
16office. The same shall apply if the property is to be made the
17subject of a contract of sale. Notwithstanding any other
18provision of law, interest shall accrue at the rate of (i) 6%
19per year for taxes deferred prior to the effective date of this
20amendatory Act of the 99th General Assembly and (ii) a rate per
21year equal to the most recent yield on a 30-year treasury bond
22issued by the United States Government as of the date the taxes
23were deferred, but not to exceed 6% per year, for taxes
24deferred on or after the effective date of this amendatory Act
25of the 99th General Assembly.
26    (3) That upon the death of the taxpayer claiming the



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1deferral the heirs-at-law, assignees or legatees shall have
2first priority to the real property upon which taxes have been
3deferred by paying in full the total taxes which would
4otherwise have been due, plus interest. However, if such
5heir-at-law, assignee, or legatee is a surviving spouse, the
6tax deferred status of the property shall be continued during
7the life of that surviving spouse if the spouse is 55 years of
8age or older within 6 months of the date of death of the
9taxpayer and enters into a tax deferral and recovery agreement
10before the time when deferred taxes become due under this
11Section. Any additional taxes deferred, plus interest, on the
12real property under a tax deferral and recovery agreement
13signed by a surviving spouse shall be added to the taxes and
14interest which would otherwise have been due, and the payment
15of which has been postponed during the life of such surviving
16spouse, in determining the 80% equity requirement provided by
17this Section.
18    (4) That if the taxes due, plus interest, are not paid by
19the heir-at-law, assignee or legatee or if payment is not
20postponed during the life of a surviving spouse, the deferred
21taxes and interest shall be recovered from the estate of the
22taxpayer within one year of the date of his death. In addition,
23deferred real estate taxes and any interest accrued thereon are
24due within 90 days after any tax deferred property ceases to be
25qualifying property as defined in Section 2.
26    If payment is not made when required by this Section,



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1foreclosure proceedings may be instituted under the Property
2Tax Code.
3    (5) That any joint owner has given written prior approval
4for such agreement, which written approval shall be made a part
5of such agreement.
6    (6) That a guardian for a person under legal disability
7appointed for a taxpayer who otherwise qualifies under this Act
8may act for the taxpayer in complying with this Act.
9    (7) That a taxpayer or his agent has provided to the
10satisfaction of the collector, sufficient evidence that the
11qualifying property on which the taxes are to be deferred is
12insured against fire or casualty loss for at least the total
13amount of taxes which have been deferred.
14    If the taxes to be deferred are special assessments, the
15unit of local government making the assessments shall forward a
16copy of the agreement entered into pursuant to this Section and
17the bills for such assessments to the county collector of the
18county in which the qualifying property is located.
19(Source: P.A. 97-481, eff. 8-22-11.)
20    Section 99. Effective date. This Act takes effect upon
21becoming law.