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92_HB4083eng HB4083 Engrossed LRB9214494SMpc 1 AN ACT concerning senior citizens. 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 5 Act is amended by changing the title of the Act and Sections 6 2 and 3 as follows: 7 (320 ILCS 30/Act title) 8 An Act in relation to the deferral of payment of real 9 estate taxes by senior citizenspersons 65 years of age and10over. 11 (320 ILCS 30/2) (from Ch. 67 1/2, par. 452) 12 Sec. 2. Definitions. As used in this Act: 13 (a) "Taxpayer" means an individual whose household 14 income for the year is no greater than $25,000 before 2002, 15 and $35,000 in 2002 or thereafter. 16 (b) "Tax deferred property" means the property upon 17 which real estate taxes are deferred under this Act. 18 (c) "Homestead" means the land and buildings thereon, 19 including a condominium or a dwelling unit in a multidwelling 20 building that is owned and operated as a cooperative, 21 occupied by the taxpayer as his residence or which are 22 temporarily unoccupied by the taxpayer because such taxpayer 23 is temporarily residing, for not more than 1 year, in a 24 licensed facility as defined in Section 1-113 of the Nursing 25 Home Care Act. 26 (d) "Real estate taxes" or "taxes" means the taxes on 27 real property for which the taxpayer would be liable under 28 the Property Tax Code, including special service area taxes, 29 and special assessments on benefited real property for which 30 the taxpayer would be liable to a unit of local government. HB4083 Engrossed -2- LRB9214494SMpc 1 (e) "Department" means the Department of Revenue. 2 (f) "Qualifying property" means a homestead which (a) 3 the taxpayer or the taxpayer and his spouse own in fee simple 4 or are purchasing in fee simple under a recorded instrument 5 of sale, (b) is not income-producing property, (c) is not 6 subject to a lien for unpaid real estate taxes when a claim 7 under this Act is filed. 8 (g) "Equity interest" means the current assessed 9 valuation of the qualified property times the fraction 10 necessary to convert that figure to full market value minus 11 any outstanding debts or liens on that property. In the case 12 of qualifying property not having a separate assessed 13 valuation, the appraised value as determined by a qualified 14 real estate appraiser shall be used instead of the current 15 assessed valuation. 16 (h) "Household income" has the meaning ascribed to that 17 term in the Senior Citizens and Disabled Persons Property Tax 18 Relief and Pharmaceutical Assistance Act. 19 (i) "Collector" means the county collector or, if the 20 taxes to be deferred are special assessments, an official 21 designated by a unit of local government to collect special 22 assessments. 23 (Source: P.A. 88-268; 88-509; 88-670, eff. 12-2-94.) 24 (320 ILCS 30/3) (from Ch. 67 1/2, par. 453) 25 Sec. 3. A taxpayer may, on or before March 1 of each 26 year, apply to the county collector of the county where his 27 qualifying property is located, or to the official designated 28 by a unit of local government to collect special assessments 29 on the qualifying property, as the case may be, for a 30 deferral of all or a part of real estate taxes payable during 31 that year for the preceding year in the case of real estate 32 taxes other than special assessments, or for a deferral of 33 any installments payable during that year in the case of HB4083 Engrossed -3- LRB9214494SMpc 1 special assessments, on all or part of his qualifying 2 property. The application shall be on a form prescribed by 3 the Department and furnished by the collector, (a) showing 4 that the applicant will be 65 years of age or older by June 1 5 of the year in which the taxes are payable for taxes payable 6 in or before 2002 and 62 years of age or older by June 1 of 7 the year in which the taxes are payable for taxes payable in 8 2003 and thereafterfor which a tax deferral is claimed, (b) 9 describing the property and verifying that the property is 10 qualifying property as defined in Section 2, (c) certifying 11 that the taxpayer has owned and occupied as his residence 12 such property or other qualifying property in the State for 13 at least the last 3 years except for any periods during which 14 the taxpayer may have temporarily resided in a nursing or 15 sheltered care home, and (d) specifying whether the deferral 16 is for all or a part of the taxes, and, if for a part, the 17 amount of deferral applied for. As to qualifying property not 18 having a separate assessed valuation, the taxpayer shall also 19 file with the county collector a written appraisal of the 20 property prepared by a qualified real estate appraiser 21 together with a certificate signed by the appraiser stating 22 that he has personally examined the property and setting 23 forth the value of the land and the value of the buildings 24 thereon occupied by the taxpayer as his residence. 25 The collector shall grant the tax deferral provided such 26 deferral does not exceed funds available in the Senior 27 Citizens Real Estate Deferred Tax Revolving Fund and provided 28 that the owner or owners of such real property have entered 29 into a tax deferral and recovery agreement with the collector 30 on behalf of the county or other unit of local government, 31 which agreement expressly states: 32 (1) That the total amount of taxes deferred under this 33 Act, plus interest, for the year for which a tax deferral is 34 claimed as well as for those previous years for which taxes HB4083 Engrossed -4- LRB9214494SMpc 1 are not delinquent and for which such deferral has been 2 claimed may not exceed 80% of the taxpayer's equity interest 3 in the property for which taxes are to be deferred and that, 4 if the total deferred taxes plus interest equals 80% of the 5 taxpayer's equity interest in the property, the taxpayer 6 shall thereafter pay the annual interest due on such deferred 7 taxes plus interest so that total deferred taxes plus 8 interest will not exceed such 80% of the taxpayer's equity 9 interest in the property. 10 (2) That any real estate taxes deferred under this Act 11 and any interest accrued thereon at the rate of 6% per year 12 are a lien on the real estate and improvements thereon until 13 paid. No sale or transfer of such real property may be 14 legally closed and recorded until the taxes which would 15 otherwise have been due on the property, plus accrued 16 interest, have been paid unless the collector certifies in 17 writing that an arrangement for prompt payment of the amount 18 due has been made with his office. The same shall apply if 19 the property is to be made the subject of a contract of sale. 20 (3) That upon the death of the taxpayer claiming the 21 deferral the heirs-at-law, assignees or legatees shall have 22 first priority to the real property upon which taxes have 23 been deferred by paying in full the total taxes which would 24 otherwise have been due, plus interest. However, if such 25 heir-at-law, assignee, or legatee is a surviving spouse, the 26 tax deferred status of the property shall be continued during 27 the life of that surviving spouse if the spouse is 55 years 28 of age or older within 6 months of the date of death of the 29 taxpayer and enters into a tax deferral and recovery 30 agreement before the time when deferred taxes become due 31 under this Section. Any additional taxes deferred, plus 32 interest, on the real property under a tax deferral and 33 recovery agreement signed by a surviving spouse shall be 34 added to the taxes and interest which would otherwise have HB4083 Engrossed -5- LRB9214494SMpc 1 been due, and the payment of which has been postponed during 2 the life of such surviving spouse, in determining the 80% 3 equity requirement provided by this Section. 4 (4) That if the taxes due, plus interest, are not paid 5 by the heir-at-law, assignee or legatee or if payment is not 6 postponed during the life of a surviving spouse, the deferred 7 taxes and interest shall be recovered from the estate of the 8 taxpayer within one year of the date of his death. In 9 addition, deferred real estate taxes and any interest accrued 10 thereon are due within 90 days after any tax deferred 11 property ceases to be qualifying property as defined in 12 Section 2. 13 If payment is not made when required by this Section, 14 foreclosure proceedings may be instituted under the Property 15 Tax Code. 16 (5) That any joint owner has given written prior 17 approval for such agreement, which written approval shall be 18 made a part of such agreement. 19 (6) That a guardian for a person under legal disability 20 appointed for a taxpayer who otherwise qualifies under this 21 Act may act for the taxpayer in complying with this Act. 22 (7) That a taxpayer or his agent has provided to the 23 satisfaction of the collector, sufficient evidence that the 24 qualifying property on which the taxes are to be deferred is 25 insured against fire or casualty loss for at least the total 26 amount of taxes which have been deferred. 27 If the taxes to be deferred are special assessments, the 28 unit of local government making the assessments shall forward 29 a copy of the agreement entered into pursuant to this Section 30 and the bills for such assessments to the county collector of 31 the county in which the qualifying property is located. 32 (Source: P.A. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.) 33 Section 99. Effective date. This Act takes effect upon HB4083 Engrossed -6- LRB9214494SMpc 1 becoming law.