Rep. Michael J. Zalewski

Filed: 5/23/2011

 

 


 

 


 
09700SB0395ham004LRB097 04207 HLH 56079 a

1
AMENDMENT TO SENATE BILL 395

2    AMENDMENT NO. ______. Amend Senate Bill 395 on page 1, line
35, after "10-380", by inserting "and by adding Section 9-275";
4and
 
5on page 1, immediately below line 5, by inserting the
6following:
 
7    "(35 ILCS 200/9-275 new)
8    Sec. 9-275. Erroneous homestead exemptions.
9    (a) If, upon determination by the chief county assessment
10officer, any person or entity that was not eligible to receive
11a homestead exemption under Article 15 of this Code was granted
12one homestead exemption in error for real property in any year
13or years not to exceed the assessment year in which the
14determination is made and 3 assessment years prior to that
15year, then the chief county assessment officer may cause to be
16served on the person to whom the most recent tax bill was

 

 

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1mailed a notice of intent to record a tax lien against the
2property with respect to which the erroneous homestead
3exemption was granted.
4    (b) If, upon determination by the chief county assessment
5officer, any person or entity that was not eligible to receive
6a homestead exemption under Article 15 of this Code was granted
72 homestead exemptions in error for real property in any year
8or years not to exceed the assessment year in which the
9determination is made and 3 assessment years prior to that
10year, then the chief county assessment officer may cause to be
11served on the person to whom the most recent tax bill was
12mailed a notice of intent to record a tax lien against the
13property with respect to which the erroneous homestead
14exemption was granted.
15    (c) If, upon determination by the chief county assessment
16officer, any person or entity that was not eligible to receive
17a homestead exemption under Article 15 of this Code was granted
183 or more homestead exemptions in error for real property in
19any year or years not to exceed the assessment year in which
20the determination is made and 6 assessment years prior to that
21year, then the chief county assessment officer may cause to be
22served on the person to whom the most recent tax bill was
23mailed a notice of intent to record a tax lien against the
24property with respect to which the erroneous homestead
25exemption was granted.
26    (d) The notice of intent to record a tax lien described in

 

 

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1subsections (a), (b), and (c) of this Section shall identify
2the property against which the lien is being sought and shall
3identify the assessment years in which the erroneous homestead
4exemption was granted.
5    In counties with 3,000,000 or more inhabitants, the notice
6must also include a form that the property owner may return to
7the chief county assessment officer to request a hearing. The
8property owner may request a hearing by returning the form
9within 30 days after service. The hearing shall be held within
1090 days after the property owner is served. The chief county
11assessment officer shall promulgate rules of service and
12procedure for the hearing. The chief county assessment officer
13must generally follow rules of evidence and practices that
14prevail in the county circuit courts, but, because of the
15nature of these proceedings, the chief county assessment
16officer is not bound by those rules in all particulars. The
17chief county assessment officer shall appoint a hearing officer
18to oversee the hearing. The property owner shall be allowed to
19present evidence to the hearing officer at the hearing. After
20taking into consideration all the relevant testimony and
21evidence, the hearing officer shall make an administrative
22decision on whether the property owner was erroneously granted
23a homestead exemption for the assessment year or years in
24question. The property owner may appeal the hearing officer's
25ruling to the circuit court of the county where the property is
26located under the Administrative Review Law.

 

 

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1    In counties with less than 3,000,000 million inhabitants,
2the notice must also include a form that the property owner may
3return to the board of review to request a hearing. The
4property owner may request a hearing by returning the form
5within 30 days after service. The hearing shall be held within
690 days after the property owner is served. The board of review
7shall follow its normal practices and procedures in conducting
8the hearing. The property owner shall be allowed to present
9evidence to board of review. After taking into consideration
10all of the relevant testimony and evidence, the board of review
11shall issue a decision on whether the property owner was
12erroneously granted a homestead exemption for the assessment
13year or years in question. The property owner may appeal the
14board of review's ruling to the circuit court of the county
15where the property is located under the Administrative Review
16Law.
17    (e) A lien imposed under this Section shall be filed with
18the county clerk and the county recorder of deeds, but may not
19be filed sooner than 45 days after the notice was delivered to
20the property owner if the property owner does not request a
21hearing, or, until the conclusion of the hearing and all
22appeals if the property owner does request a hearing.
23        (1) When a lien is filed pursuant to subsection (a) of
24    this Section, the arrearages of taxes that might have been
25    assessed, plus 5% interest per annum, shall be charged
26    against the property by the county clerk.

 

 

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1        (2) When a lien is filed pursuant to subsection (b) of
2    this Section, the arrearages of taxes that might have been
3    assessed, plus a penalty of 25% of the total amount of
4    unpaid taxes for each year and 10% interest per annum,
5    shall be charged against the property by the county clerk.
6        (3) When a lien is filed pursuant to subsection (c) of
7    this Section, the arrearages of taxes that might have been
8    assessed, plus a penalty of 40% of the total amount of
9    unpaid taxes for each year and 15% interest per annum,
10    shall be charged against the property by the county clerk.
11    (f) If the erroneous homestead exemption was granted as a
12result of a clerical error or omission on the part of the chief
13county assessment officer, and if the owner has paid its tax
14bills as received for the year or years in which the error
15occurred, then the interest and penalties authorized by this
16Section shall not be chargeable to the owner. However, nothing
17in this Section shall prevent the collection of the principal
18amount of back taxes due and owing.
19    (g) If, at the hearing, the property owner establishes that
20it is a bona fide purchaser of the property for value, and
21without notice of the erroneous homestead exemption, the
22property owner shall not be liable for any unpaid back taxes,
23interest, or penalties for the period of time prior to the date
24that the property owner purchased the property. A certified
25title to the property that is issued by the county clerk or
26county recorder of deeds and is free and clear of any liens

 

 

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1imposed under subsections (a), (b), or (c) of this Section,
2shall be prima facie evidence that the property owner is
3without notice of the erroneous homestead exemption.
4    (h) When a lien is filed pursuant to subsection (e) of this
5Section, the chief county assessment officer shall mail a copy
6of the lien to the person to whom the most recent tax was
7mailed and the outstanding liability created by such a lien is
8due and payable within 30 days after the mailing of the lien by
9the chief county assessment officer. This liability is deemed
10delinquent and shall bear interest beginning on the day after
11the due date. Any such liability deemed delinquent after that
12due date shall bear interest at the rate of 1.5% per month or
13portion thereof until paid.
14    (i) The unpaid taxes shall be paid to the appropriate
15taxing districts. Interest shall be paid to the county where
16the property is located. The penalty shall be paid to the chief
17county assessment officer's office for the administration of
18the provisions of this amendatory Act of the 97th General
19Assembly.
20    (j) For purposes of this Section, "homestead exemption"
21means an exemption under Section 15-165 (disabled veterans),
2215-167 (returning veterans), 15-169 (disabled veterans
23standard homestead), 15-170 (senior citizens), 15-172 (senior
24citizens assessment freeze), 15-175 (general homestead),
2515-176 (alternative general homestead), or 15-177 (long-time
26occupant).".