HB5960 100TH GENERAL ASSEMBLY

LRB100 23746 HLH 42797 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5960

Introduced , by Rep. Jim Durkin - Grant Wehrli

SYNOPSIS AS INTRODUCED:

New Act

Creates the Vacancy Fraud and Penalties Act. Allows a taxing body or representative of a taxing body to file a vacancy fraud complaint with the chief county assessment officer or the county board of review if property receives vacancy relief and the property owner is not actively attempting to lease, sell, or alter the property. Sets forth factors for determining whether or not vacancy fraud has occurred. Sets forth penalties. Provides that a person commits property tax vacancy fraud when he or she knowingly owns vacant property and, for 2 or more consecutive years in which vacancy relief is granted, has not actively attempted to sell, lease, or alter the vacant property. Provides that property tax vacancy fraud is a Class A misdemeanor. Provides that a person commits aggravated property tax vacancy fraud when he or she commits property tax vacancy fraud that leads to the assessment of more than $100,000 in back taxes. Provides that aggravated property tax vacancy fraud is a Class 4 felony. Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning property.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Vacancy Fraud and Penalties Act.

Section 5. Definitions. As used in this Act:

"Vacancy relief" means a decrease in assessed value, a decrease in market value, or an abatement of taxes by a chief county assessment officer, a board of review, or a taxing district under any county or taxing district ordinance, resolution, or policy, which is granted because the property is unoccupied.

"Vacant property" means property that is receiving vacancy relief. A property that receives vacancy relief on only a portion of the property is still considered vacant property.

Section 10. Vacancy fraud complaints; chief county assessment officer.

(a) The chief county assessment officer of the county in which the property is located shall have the power to review complaints of vacancy fraud for vacant properties that have received vacancy relief for 2 consecutive tax years if the first of those tax years is no more than 5 years prior to the current tax year.

(b) Any taxing body or representative of any taxing body alleging that a property owner is not actively attempting to lease, sell, or alter the vacant property shall file a written complaint prescribed by the chief county assessment officer within the appropriate filing period.

(c) The party alleging vacancy fraud shall file on the titleholder of record a Notice of Intent to File a Vacancy Fraud Complaint. The notice shall disclose the common name and address of the property as well as its property classification code and permanent index number and shall provide a short written statement of the nature of the evidence which will be submitted in support of the allegation of vacancy fraud. Notice shall be provided by first class mail, postage prepaid, and shall be mailed to the same address that the vacant property's property tax bill is mailed.

(d) If a complaint is filed by an attorney on behalf of a taxpayer, all notices and correspondence from the chief county assessment officer shall be directed to the attorney. The chief county assessment officer may require proof of the attorney's authority to represent the taxpayer. If the attorney fails to provide proof of authority within the compliance period granted by the chief county assessment officer pursuant to subsection (e), the chief county assessment officer may dismiss the complaint. The chief county assessment officer shall send, electronically or by mail, notice of the dismissal to the attorney and taxpayer.

(e) Upon receipt of a written complaint that is timely filed, the chief county assessment officer shall docket the complaint. If the complaint does not comply with rules adopted by the chief county assessment officer entitling the complainant to a hearing, the chief county assessment officer shall send, electronically or by mail, notification acknowledging receipt of the complaint. The notification must identify which rules have not been complied with and provide the complainant with not less than 10 business days to bring the complaint into compliance with those rules. If the complainant complies with the rules, either upon the initial filing of a complaint or within the time as extended by the chief county assessment officer for compliance, then the chief county assessment officer shall send, electronically or by mail, a notice of hearing and the chief county assessment officer shall hear the complaint and shall issue and send, electronically or by mail, a decision upon resolution. Except as otherwise provided, if the complainant has not complied with the rules within the time as extended by the chief county assessment officer, the chief county assessment officer shall nonetheless issue and send a decision. The chief county assessment officer may adopt rules allowing any party to attend and participate in a hearing by telephone or electronically. The party alleging vacancy fraud shall cause a duplicate notice of the hearing date to be provided to the titleholder of record.

Section 15. Vacancy fraud complaints; board of review.

(a) The board of review of the county in which the property is located shall have the power to review complaints of vacancy fraud for vacant properties that have received vacancy relief for 2 consecutive tax years if the first of those tax years is no more than 5 years prior to the current tax year.

(b) Any taxing body or representative of any taxing body alleging that a property owner is not actively attempting to lease, sell, or alter the vacant property shall file a written complaint prescribed by the board of review within the appropriate filing period.

(c) The party alleging vacancy fraud shall file on the titleholder of record a Notice of Intent to File a Vacancy Fraud Complaint. The notice shall disclose the common name and address of the property as well as its property classification code and permanent index number and shall provide a short written statement of the nature of the evidence which will be submitted in support of the allegation of vacancy fraud. Notice shall be provided by first class mail, postage prepaid, and shall be mailed to the same address that the vacant property's property tax bill is mailed.

(d) If a complaint is filed by an attorney on behalf of a taxpayer, all notices and correspondence from the board shall be directed to the attorney. The board may require proof of the attorney's authority to represent the taxpayer. If the attorney fails to provide proof of authority within the compliance period granted by the board pursuant to subsection (e), the board may dismiss the complaint. The Board shall send, electronically or by mail, notice of the dismissal to the attorney and taxpayer.

(e) Upon receipt of a written complaint that is timely filed, the board of review shall docket the complaint. If the complaint does not comply with the board of review rules entitling the complainant to a hearing, the board shall send, electronically or by mail, notification acknowledging receipt of the complaint. The notification must identify which rules have not been complied with and provide the complainant with not less than 10 business days to bring the complaint into compliance with those rules. If the complainant complies with the board of review rules either upon the initial filing of a complaint or within the time as extended by the board of review for compliance, then the board of review shall send, electronically or by mail, a notice of hearing and the board shall hear the complaint and shall issue and send, electronically or by mail, a decision upon resolution. Except as otherwise provided, if the complainant has not complied with the rules within the time as extended by the board of review, the board shall nonetheless issue and send a decision. The board of review may adopt rules allowing any party to attend and participate in a hearing by telephone or electronically. The party alleging vacancy fraud shall cause a duplicate notice of the hearing date to be provided to the titleholder of record.

Section 20. Factors in determining vacancy fraud; action by assessor or board of review.

(a) In determining whether the owner of vacant property is actively attempting to sell, lease, or alter the vacant property, the board may consider the following factors:

(1) whether there is a sign on the vacant property advertising that it is for sale or for lease;

(2) whether the vacant property is advertised for sale or for lease in a newspaper of general circulation where the vacant property is located;

(3) whether the vacant property is advertised for sale or for lease on the internet, and whether potential buyers or tenants are reasonably able to access the internet listing;

(4) whether the owner of the vacant property has contracted for the services of an Illinois licensed real estate professional for the purpose of selling or leasing the vacant property;

(5) whether any advertised sale price or advertised rental price is at a reasonable market level;

(6) whether a contract for sale or lease is pending;

(7) whether the vacant property is subsequently sold or leased, and the amount of time that passed from the original vacancy to the sale or lease date;

(8) whether the owner has applied for and received demolition or construction permits for the vacant property;

(9) whether the owner has responded to inquiries to lease or sell the property, and

(10) any other factors the board deems necessary to determine if the owner of any vacant property is actively attempting to lease, sell, or alter the vacant property.

(b) For purposes of paragraphs (1), (2), and (3) of subsection (a), any signs, newspaper advertisements, or internet advertisements shall contain a phone number. If the phone number does not connect to a person who can facilitate the purchase or lease of the vacant property, the board of review may disregard that the sign, newspaper advertisement, or internet advertisement.

Section 25. Penalties.

(a) Upon determination that an owner of vacant property is not actively attempting to sell, lease, or alter the vacant property, the board of review or the chief county assessment officer, as applicable, shall refer the case to the State's Attorney for the county in which the property is located. In addition, the board of review may do any of the following:

(1) prohibit the vacant property from receiving any vacancy relief until it is subsequently sold or leased;

(2) require the payment of 3 times the amount of back taxes owed for any vacancy relief the vacant property received while the owner of the vacant property was not actively attempting to sell, lease, or alter the vacant property;

(3) require the payment of interest on any back taxes sought under paragraph (2); any interest imposed shall not exceed 10% per annum; and

(4) in the case of a property owner who has been penalized under this Section 2 times or more within a 5-year period, impose a penalty not to exceed 25% of the amount of back taxes sought under paragraph (2).

(b) Before referring a case of property tax vacancy fraud to the State's Attorney with jurisdiction over the property, the chief county assessment officer or board of review, as applicable, shall give notice to the assessor or chief county assessment officer who certified the vacancy relief and give the assessor or chief county assessment officer an opportunity to be heard thereon.

(c) The unpaid taxes shall be paid to the appropriate taxing districts. Interest and penalties shall be paid to the chief county assessment officer's office to cover the costs associated with educating the public on the provisions of this Act.

(d) No penalties shall be assessed until the person to be affected has been notified and given an opportunity to be heard.

Section 30. Vacancy fraud; criminal.

(a) A person commits property tax vacancy fraud when he or she knowingly owns vacant property and, for 2 or more consecutive years in which vacancy relief is granted, has not actively attempted to sell, lease, or alter the vacant property, as demonstrated by the factors set forth in Section 20. A person who commits property tax vacancy fraud is guilty of a Class A misdemeanor.

(b) A person commits aggravated property tax vacancy fraud when he or she commits property tax vacancy fraud that leads to the assessment of more than $100,000 in back taxes. A person who commits aggravated property tax vacancy fraud is guilty of a Class 4 felony.

Section 99. Effective date. This Act takes effect upon becoming law.