Public Act 097-0481

HB1518 Enrolled LRB097 06549 HLH 46633 b

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 3. The Property Tax Code is amended by changing

Sections 11-85 and 11-90 and by adding Section 11-80.1 as

follows:

(35 ILCS 200/11-80.1 new)

Sec. 11-80.1. High-speed passenger rail project. Due to the

importance of developing high-speed or faster rail service, the

General Assembly finds that it should encourage freight

railroad owners to participate in State and federal government

programs, including cooperative agreements designed to

increase the speed of passenger rail service, that

participation in those programs should not result in increased

property taxes, and that such an increase in property taxes

could negatively impact the participation in those programs.

Therefore, the Department shall take into consideration any

potential increase in a property's overall valuation that is

directly attributable to the investment, improvement,

replacement, or expansion of railroad operating property on or

after January 1, 2010, through State or federal government

programs, including cooperative agreements, necessary for

higher speed passenger rail transportation. Any such increase

in the property's overall valuation that is directly

attributable to the investment, improvement, replacement, or

expansion of railroad operating property on or after January 1,

2010, through State or federal government programs necessary

for higher speed passenger rail transportation, including

cooperative agreements, shall be excluded from the valuation of

its real property improvements under Section 11-80. This

Section applies on and after the effective date of this

amendatory Act of the 97th General Assembly and through

December 31, 2019.

(35 ILCS 200/11-85)

Sec. 11-85. Property schedules. Every railroad company

shall, on or before June 1 of each year, when required, make

out and file with the Department a statement or schedule

showing the property held for right of way, whether owned,

leased, or operated under trackage right agreement, and the

length of the first, second, third and other main and all side

tracks and turnouts, and the number of acres of right of way in

each county of this State and in each taxing district of this

State, through or into which the road may run. It shall

describe all improvements and stations located on the right of

way, giving the quantity, quality, character and original cost

of each. It shall also report all non-operating personalty

owned or controlled by the company on January 1, giving the

quantity, quality, character and location of the same. The

report shall also include any potential increase in the

property's overall valuation that is directly attributable to

the investment, improvement, replacement, or expansion of

railroad operating property on or after January 1, 2010,

through State or federal governmental programs, including

cooperative agreements, necessary for higher speed passenger

rail transportation through December 31, 2019. New companies

shall make the statement on or before the June 1 after the

location of their road.

When the statement has once been made, it is not necessary

to report the description as required above unless directed to

do so by the Department, but the company shall, on or before

June 1, annually, report all additions or changes in its

property in this State as have occurred.

The return required by this Section should be made by the

using company, but all property which is operated under one

control shall be returned as provided in this Section.

(Source: P.A. 86-905; 88-455.)

(35 ILCS 200/11-90)

Sec. 11-90. Information schedules. Each year every

railroad company in this State shall return to the Department,

in addition to any other information required by this Code,

sworn statements or schedules as follows:

(a) The amount of capital stock authorized and the

total number of shares of capital stock.

(b) The amount of capital stock issued and outstanding.

(c) The market value, or if no market value then the

estimated value, of the shares of stock outstanding.

(d) The total amount of all bonds outstanding and all

other indebtedness.

(e) The market value, or if no market value then the

estimated value, of all bonds outstanding and all other

indebtedness.

(f) A statement in detail of the entire gross receipts

and net earnings of the company during the 5 calendar years

preceding the assessment date within this State, and of the

entire system from all sources.

(g) The length of the first, second, third and other

main tracks and all side tracks and turnouts showing the

proportions within this State and elsewhere.

(h) The reproduction cost of the property within

Illinois and the total reproduction cost of all property of

the company. The reproduction cost, so far as applicable,

shall be as last determined by the United States Interstate

Commerce Commission, or other competent authority, plus

additions and betterments, less retirements and

depreciation to the December 31 preceding the assessment

date.

(i) An enumeration and classification of all rolling

stock and car equipment owned or leased by the company. The

classification shall show type of equipment and

circumstances of ownership and use. The enumeration shall

include rolling stock used over the track of other

companies under any trackage right agreement. All other

property used in connection with a trackage right agreement

shall be listed.

(j) Any other information the Department may require to

determine the fair cash value of the property of any

railroad company, or necessary to carry out the provisions

of this Code, including information pertaining to any

potential increases in the property's overall valuation

that is directly attributable to the investment,

improvement, replacement, or expansion of railroad

operating property on or after January 1, 2010, through

State or federal governmental programs, including

cooperative agreements, necessary for higher speed

passenger rail transportation through December 31, 2019.

Such statements or schedules shall conform to the

instructions and forms prescribed by the Department.

In cases where a railroad company uses property owned by

another, the return shall be made by the using company and all

property operated under one control shall be returned as

provided above.

(Source: P.A. 86-905; 88-455.)

Section 5. The Senior Citizens Real Estate Tax Deferral Act

is amended by changing Sections 2 and 3 as follows:

(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; and (ii) $50,000 for tax years year 2006 through 2011;

and (iii) $55,000 for tax year 2012 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 Disabled Persons Property Tax

Relief and Pharmaceutical Assistance 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. 94-794, eff. 5-22-06.)

(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 thereafter, the total amount of any such

deferral shall not exceed $5,000 per taxpayer in each tax year.

(2) That any real estate taxes deferred under this Act and

any interest accrued thereon at the rate of 6% per year are a

lien on the real estate and improvements thereon until paid. 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. 90-170, eff. 7-23-97; 91-357, eff. 7-29-99.)

Section 99. Effective date. This Act takes effect upon

becoming law.