2023 Illinois Compiled Statutes › Chapter 320 - AGING › 320 ILCS 30/ - Senior Citizens Real Estate Tax Deferral Act.

(320 ILCS 30/1) (from Ch. 67 1/2, par. 451)
Sec. 1. 
		
		This Act shall be known and may be cited as the
"Senior Citizens Real Estate Tax Deferral Act".
(Source: P.A. 83-895.)
(320 ILCS 30/2) (from Ch. 67 1/2, par. 452)
Sec. 2. Definitions. As used in this Act:
(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; (iii) $55,000 for tax years 2012 through 2021; (iv) $65,000 for tax years 2022 through 2025; and (v) $55,000 for tax year 2026 and thereafter.
(b) "Tax deferred property" means the property upon which real
estate taxes are deferred under this Act.
(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.
(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.
(e) "Department" means the Department of Revenue.
(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.
(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.
(h) "Household income" has the meaning ascribed to that term in the Senior
Citizens and Persons with Disabilities Property Tax Relief
Act.
(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.
(Source: P.A. 102-644, eff. 8-27-21.)
(320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
Sec. 3. 
A taxpayer may, on or before March 1 of each year,
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
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.
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:
(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
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, 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.
(2) That any real estate taxes deferred under this Act and any
interest accrued thereon are a lien on the real
estate and improvements thereon until paid.  If the taxes deferred are for a tax year prior to 2023, then interest shall accrue at the rate of 6% per year. If the taxes deferred are for the 2023 tax year or any tax year thereafter, then interest shall accrue at the rate of 3% per year. 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.
(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
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.
(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,
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.
If payment is not made when required by this Section, foreclosure proceedings
may be instituted under the Property Tax Code.
(5) That any joint owner has given written prior approval for such
agreement,
which written approval shall be made a part of such agreement.
(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.
(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.
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.
(Source: P.A. 102-644, eff. 8-27-21; 102-895, eff. 5-23-22.)
(320 ILCS 30/4) (from Ch. 67 1/2, par. 454)
Sec. 4. 
		
		In the case of each tax deferral and recovery agreement
entered into between the collector and the owner or owners of
qualifying property, the collector shall forthwith cause to
be recorded with the recorder of the county in
which the qualifying property is located a statement of their
action which shall constitute a lien upon the real estate and improvements
thereon covered by such agreement for such taxes as have been deferred
under the provisions of this Act, plus accrued interest as provided for by
Section 3.
In the case of a dwelling unit in a multidwelling building that is owned and
operated as a cooperative, the lien shall be upon only that portion of the real
estate that constitutes a homestead exemption occupied by the taxpayer.
 The statement shall name the owner or owners and shall include a
description of the real estate adequate for identification.  The filing fee
for such statement shall be paid by the county or other unit of local
government and shall be added to and become a part of the deferred taxes due.
(Source: P.A. 88-268.)
(320 ILCS 30/5) (from Ch. 67 1/2, par. 455)
Sec. 5. 
The county collector shall note on his books each
claim for deferral of real estate taxes which meets the requirements
of Section 3 and, when taxes are extended, shall send to the
Department the tax bills, including special assessment bills forwarded to
the county collector under Section 3, on all tax deferred property in that
collector's county.  Unless there is a shortfall in the appropriation or the Senior Citizens Real Estate Tax Revolving Fund balance, at which time the payments shall be made within 14 days of there being sufficient appropriation authority or sufficient fund balance, the Department shall then pay by June 1 or within 30 days
of the receipt of these tax bills, whichever is later, to the county
collector, for distribution to the taxing bodies in his county, the
total amount of taxes so deferred.  The Department shall make these
payments from the Senior Citizens Real Estate Deferred Tax Revolving Fund.
(Source: P.A. 98-298, eff. 8-9-13.)
(320 ILCS 30/6) (from Ch. 67 1/2, par. 456)
Sec. 6. 
		
		All or any part of taxes deferred under this Act and
the accrued interest thereon, which are not due under a valid
deferral and recovery agreement, may be paid to the collector
at any time by the taxpayer or his spouse, or, if no objection is
made by the taxpayer within 10 days after the collector mails him
a written notice of the tender of such a payment, by a child, heir
or next of kin of the taxpayer or other person claiming a legal or
equitable interest in the property.  In the absence of a valid
agreement to the contrary and except as otherwise provided by law,
such a payment by a person other than the taxpayer or his spouse
confers no interest in the property nor claim against the estate.
Payments made under this Section shall be applied first against
accrued interest and any remainder against the deferred taxes
and do not affect the deferred tax status of the property.
(Source: P.A. 84-807.)
(320 ILCS 30/7) (from Ch. 67 1/2, par. 457)
Sec. 7. 
		
		When any deferred taxes, including interest, are collected, the
moneys shall be credited to a special account in the treasury of the unit of
local government and the collector shall notify the treasurer of the unit of
local government of the properties for which the taxes were collected by
setting forth a description of the property and the amount of taxes and
interest collected for each property. The treasurer shall remit by the 10th day
of each month the amount of deferred taxes and accrued interest paid during the
preceding month, minus $50 or the total amount of deferred taxes and accrued
interest collected, whichever is less, to the Department.  The remittance shall
be accompanied by a statement giving a description for each property for which
the taxes were collected and setting out the amount of the taxes and interest
collected for each property.
If the tax deferred property is sold by foreclosure under the Property Tax
Code, the proceeds of the sale which may be applied
under that Act to the payment of real estate taxes and interest shall be
remitted by the county treasurer to the Department along with a description of
the property and the amount of taxes and interest collected thereon.
When any deferred taxes and accrued interest are received by the Department,
it shall enter the amounts received against the accounts which have been set up
for the tax deferred properties and shall within 5 days remit such moneys to
the State Treasurer for deposit in the Senior Citizens Real Estate Deferred Tax
Revolving Fund.
(Source: P.A. 88-670, eff. 12-2-94.)
(320 ILCS 30/8) (from Ch. 67 1/2, par. 458)
Sec. 8. 
Nothing in this Act (a) affects any provision of
any mortgage or other instrument relating to land requiring a
person to pay real estate taxes or (b) affects the eligibility of any
person to receive any grant pursuant to the "Senior Citizens and Persons with Disabilities Property Tax Relief Act".
(Source: P.A. 99-143, eff. 7-27-15.)