97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3814

 

Introduced 10/5/2011, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-275 new

    Amends the Property Tax Code. Provides that, if any property that was not eligible to receive a homestead exemption was granted a homestead exemption, then a tax lien may be placed against the property and the arrearages of taxes that might have been assessed, plus specified penalties and interest, shall be charged against the property by the county clerk. Contains provisions concerning notice and hearings. Provides that, if the erroneous homestead exemption is granted as a result of a clerical error or omission on the part of the chief county assessment officer, and if the owner has paid its tax bills as received for the year or years in which the error occurred, then the penalties shall not be chargeable to the owner.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Property Tax Code is amended adding Section
59-275 as follows:
 
6    (35 ILCS 200/9-275 new)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) If, upon determination by the chief county assessment
9officer, any person or entity that was not eligible to receive
10a homestead exemption under Article 15 of this Code was granted
11one homestead exemption in error for real property in any year
12or years not to exceed the 3 assessment years prior to the
13assessment year in which the determination is made, then the
14chief county assessment officer may cause to be served on the
15person to whom the most recent tax bill was mailed a notice of
16intent to record a tax lien against the property with respect
17to which the erroneous homestead exemption was granted.
18    (b) If, upon determination by the chief county assessment
19officer, any person or entity that was not eligible to receive
20a homestead exemption under Article 15 of this Code was granted
212 homestead exemptions in error for real property in any year
22or years not to exceed the 3 assessment years prior to the
23assessment year in which the determination is made, then the

 

 

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1chief county assessment officer may cause to be served on the
2person to whom the most recent tax bill was mailed a notice of
3intent to record a tax lien against the property with respect
4to which the erroneous homestead exemption was granted.
5    (c) If, upon determination by the chief county assessment
6officer, any person or entity that was not eligible to receive
7a homestead exemption under Article 15 of this Code was granted
83 or more homestead exemptions in error for real property in
9any year or years not to exceed the 6 assessment years prior to
10the assessment year in which the determination is made, then
11the chief county assessment officer may cause to be served on
12the person to whom the most recent tax bill was mailed a notice
13of intent to record a tax lien against the property with
14respect to which the erroneous homestead exemption was granted.
15    (d) The notice of intent to record a tax lien described in
16subsections (a), (b), and (c) of this Section shall identify
17the property against which the lien is being sought and shall
18identify the assessment years in which the erroneous homestead
19exemption was granted.
20    In counties with 3,000,000 or more inhabitants, the notice
21must also include a form that the property owner may return to
22the chief county assessment officer to request a hearing. The
23property owner may request a hearing by returning the form
24within 30 days after service. The hearing shall be held within
2590 days after the property owner is served. The chief county
26assessment officer shall promulgate rules of service and

 

 

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1procedure for the hearing. The chief county assessment officer
2must generally follow rules of evidence and practices that
3prevail in the county circuit courts, but, because of the
4nature of these proceedings, the chief county assessment
5officer is not bound by those rules in all particulars. The
6chief county assessment officer shall appoint a hearing officer
7to oversee the hearing. The property owner shall be allowed to
8present evidence to the hearing officer at the hearing. After
9taking into consideration all the relevant testimony and
10evidence, the hearing officer shall make an administrative
11decision on whether the property owner was erroneously granted
12a homestead exemption for the assessment year or years in
13question. The property owner may appeal the hearing officer's
14ruling to the circuit court of the county where the property is
15located under the Administrative Review Law.
16    In counties with less than 3,000,000 million inhabitants,
17the notice must also include a form that the property owner may
18return to the board of review to request a hearing. The
19property owner may request a hearing by returning the form
20within 30 days after service. The hearing shall be held within
2190 days after the property owner is served. The board of review
22shall follow its normal practices and procedures in conducting
23the hearing. The property owner shall be allowed to present
24evidence to board of review. After taking into consideration
25all of the relevant testimony and evidence, the board of review
26shall issue a decision on whether the property owner was

 

 

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1erroneously granted a homestead exemption for the assessment
2year or years in question. The property owner may appeal the
3board of review's ruling to the circuit court of the county
4where the property is located under the Administrative Review
5Law.
6    (e) A lien imposed under this Section shall be filed with
7the county clerk and the county recorder of deeds, but may not
8be filed sooner than 45 days after the notice was delivered to
9the property owner if the property owner does not request a
10hearing, or, until the conclusion of the hearing and all
11appeals if the property owner does request a hearing.
12        (1) When a lien is filed pursuant to subsection (a) of
13    this Section, the arrearages of taxes that might have been
14    assessed, plus 5% interest per annum, shall be charged
15    against the property by the county clerk.
16        (2) When a lien is filed pursuant to subsection (b) of
17    this Section, the arrearages of taxes that might have been
18    assessed, plus a penalty of 25% of the total amount of
19    unpaid taxes for each year and 10% interest per annum,
20    shall be charged against the property by the county clerk.
21        (3) When a lien is filed pursuant to subsection (c) of
22    this Section, the arrearages of taxes that might have been
23    assessed, plus a penalty of 40% of the total amount of
24    unpaid taxes for each year and 15% interest per annum,
25    shall be charged against the property by the county clerk.
26    (f) If the erroneous homestead exemption was granted as a

 

 

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1result of a clerical error or omission on the part of the chief
2county assessment officer, and if the owner has paid its tax
3bills as received for the year or years in which the error
4occurred, then the interest and penalties authorized by this
5Section shall not be chargeable to the owner. However, nothing
6in this Section shall prevent the collection of the principal
7amount of back taxes due and owing.
8    (g) If, at the hearing, the property owner establishes that
9it is a bona fide purchaser of the property for value, and
10without notice of the erroneous homestead exemption, the
11property owner shall not be liable for any unpaid back taxes,
12interest, or penalties for the period of time prior to the date
13that the property owner purchased the property. A certified
14title to the property that is issued by the county clerk or
15county recorder of deeds and is free and clear of any liens
16imposed under subsections (a), (b), or (c) of this Section,
17shall be prima facie evidence that the property owner is
18without notice of the erroneous homestead exemption.
19    (h) When a lien is filed pursuant to subsection (e) of this
20Section, the chief county assessment officer shall mail a copy
21of the lien to the person to whom the most recent tax bill was
22mailed and the outstanding liability created by such a lien is
23due and payable within 30 days after the mailing of the lien by
24the chief county assessment officer. This liability is deemed
25delinquent and shall bear interest beginning on the day after
26the due date. Any such liability deemed delinquent after that

 

 

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1due date shall bear interest at the rate of 1.5% per month or
2portion thereof until paid.
3    (i) The unpaid taxes shall be paid to the appropriate
4taxing districts. Interest shall be paid to the county where
5the property is located. The penalty shall be paid to the chief
6county assessment officer's office for the administration of
7the provisions of this amendatory Act of the 97th General
8Assembly.
9    (j) For purposes of this Section, "homestead exemption"
10means an exemption under Section 15-165 (disabled veterans),
1115-167 (returning veterans), 15-169 (disabled veterans
12standard homestead), 15-170 (senior citizens), 15-172 (senior
13citizens assessment freeze), 15-175 (general homestead),
1415-176 (alternative general homestead), or 15-177 (long-time
15occupant).