98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB0041

 

Introduced 1/16/2013, by Sen. Antonio Muņoz

 

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

    Amends the Property Tax Code. Allows the chief county assessment officer to record a tax lien against property that was granted one or more erroneous homestead exemptions. Contains provisions concerning notice, hearings, and penalties. Effective June 1, 2013.


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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 by adding
5Section 9-275 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, by both
15regular mail and certified mail, return receipt requested, on
16the person to whom the most recent tax bill was mailed and the
17owner of record, a notice of intent to record a tax lien
18against the property with respect to which the erroneous
19homestead exemption was granted.
20    (b) If, upon determination by the chief county assessment
21officer, any person or entity that was not eligible to receive
22a homestead exemption under Article 15 of this Code was granted
232 homestead exemptions in error for real property in any year

 

 

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1or years not to exceed the 3 assessment years prior to the
2assessment year in which the determination is made, then the
3chief county assessment officer may cause to be served, by both
4regular mail and certified mail, return receipt requested, on
5the person to whom the most recent tax bill was mailed and the
6owner of record, a notice of intent to record a tax lien
7against the property with respect to which the erroneous
8homestead exemption was granted.
9    (c) 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
123 or more homestead exemptions in error for real property in
13any year or years not to exceed the 6 assessment years prior to
14the assessment year in which the determination is made, then
15the chief county assessment officer may cause to be served, by
16both regular mail and certified mail, return receipt requested,
17on the person to whom the most recent tax bill was mailed and
18the owner of record, a notice of intent to record a tax lien
19against the property with respect to which the erroneous
20homestead exemption was granted.
21    (d) The notice of intent to record a tax lien described in
22subsections (a), (b), and (c) of this Section shall identify
23the property against which the lien is being sought and shall
24identify the assessment years in which the erroneous homestead
25exemption was granted.
26    In counties with 3,000,000 or more inhabitants, the notice

 

 

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1must also include a form that the property owner may return to
2the chief county assessment officer to request a hearing. The
3property owner may request a hearing by returning the form
4within 30 days after service. The hearing shall be held within
590 days after the property owner is served. The chief county
6assessment officer shall promulgate rules of service and
7procedure for the hearing. The chief county assessment officer
8must generally follow rules of evidence and practices that
9prevail in the county circuit courts, but, because of the
10nature of these proceedings, the chief county assessment
11officer is not bound by those rules in all particulars. The
12chief county assessment officer shall appoint a hearing officer
13to oversee the hearing. The property owner shall be allowed to
14present evidence to the hearing officer at the hearing. After
15taking into consideration all the relevant testimony and
16evidence, the hearing officer shall make an administrative
17decision on whether the property owner was erroneously granted
18a homestead exemption for the assessment year or years in
19question. The property owner may appeal the hearing officer's
20ruling to the circuit court of the county where the property is
21located under the Administrative Review Law.
22    In counties with less than 3,000,000 inhabitants, the
23notice must also include a form that the property owner may
24return to the board of review to request a hearing. The
25property owner may request a hearing by returning the form
26within 30 days after service. The hearing shall be held within

 

 

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190 days after the property owner is served. The board of review
2shall follow its normal practices and procedures in conducting
3the hearing. The property owner shall be allowed to present
4evidence to the board of review. After taking into
5consideration all of the relevant testimony and evidence, the
6board of review shall issue a decision on whether the property
7owner was erroneously granted a homestead exemption for the
8assessment year or years in question. The property owner may
9appeal the board of review's ruling to the circuit court of the
10county where the property is located under the Administrative
11Review Law.
12    (e) A lien against the property imposed under this Section
13shall be filed with the county clerk and the county recorder of
14deeds, but may not be filed sooner than 60 days after the
15notice was delivered to the property owner if the property
16owner does not request a hearing, or, until the conclusion of
17the hearing and all appeals if the property owner does request
18a hearing.
19        (1) When a lien is filed pursuant to subsection (a) of
20    this Section, the arrearages of taxes that might have been
21    assessed, plus 5% interest per annum, shall be charged
22    against the property by the county clerk.
23        (2) When a lien is filed pursuant to subsection (b) of
24    this Section, the arrearages of taxes that might have been
25    assessed, plus a penalty of 25% of the total amount of
26    unpaid taxes for each year and 10% interest per annum,

 

 

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1    shall be charged against the property by the county clerk.
2        (3) When a lien is filed pursuant to subsection (c) of
3    this Section, the arrearages of taxes that might have been
4    assessed, plus a penalty of 40% of the total amount of
5    unpaid taxes for each year and 15% interest per annum,
6    shall be charged against the property by the county clerk.
7    A person who received an erroneous homestead exemption
8under Section 15-170 in a county that did not require an annual
9application for that exemption at the time the erroneous
10homestead exemption was granted is not liable for the penalties
11and interest imposed under this subsection (e) for those
12assessment years if: (i) the person was the spouse, child,
13grandchild, brother, sister, niece, or nephew of the previous
14owner; and (ii) the person received the property by bequest or
15inheritance. However, that person is responsible for any
16interest owed under subsection (h) of this Section.
17    (f) If the erroneous homestead exemption was granted as a
18result of a clerical error or omission on the part of the chief
19county assessment officer, and if the owner has paid its tax
20bills as received for the year or years in which the error
21occurred, then the interest and penalties authorized by this
22Section shall not be chargeable to the owner. However, nothing
23in this Section shall prevent the collection of the principal
24amount of back taxes due and owing.
25    (g) If, at the hearing, the property owner establishes that
26it is a bona fide purchaser of the property for value, and

 

 

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1without notice of the erroneous homestead exemption, the
2property owner shall not be liable for any unpaid back taxes,
3interest, or penalties for the period of time prior to the date
4that the property owner purchased the property. A certified
5title to the property that is issued by a title company
6licensed to do business in the State and is free and clear of
7any liens imposed under subsections (a), (b), or (c) of this
8Section, shall be prima facie evidence that the property owner
9is without notice of the erroneous homestead exemption.
10    (h) When a lien is filed against the property pursuant to
11subsection (e) of this Section, the chief county assessment
12officer shall mail a copy of the lien to the person to whom the
13most recent tax bill was mailed and to the owner of record, and
14the outstanding liability created by such a lien is due and
15payable within 30 days after the mailing of the lien by the
16chief county assessment officer. Payment shall be made to the
17chief county assessment officer who shall, upon receipt of the
18full amount due, provide in reasonable form a release of the
19lien and shall transmit the funds received to the county
20treasurer for distribution as provided in subsection (i) of
21this Section. This liability is deemed delinquent and shall
22bear interest beginning on the day after the due date. Any such
23liability deemed delinquent after that due date shall bear
24interest at the rate of 1.5% per month or portion thereof until
25paid.
26    (i) The unpaid taxes shall be paid to the appropriate

 

 

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1taxing districts. Interest shall be paid to the county where
2the property is located. The penalty shall be paid to the chief
3county assessment officer's office for the administration of
4the provisions of this amendatory Act of the 98th General
5Assembly.
6    (j) For purposes of this Section, "homestead exemption"
7means an exemption under Section 15-165 (disabled veterans),
815-167 (returning veterans), 15-168 (disabled persons), 15-169
9(disabled veterans standard homestead), 15-170 (senior
10citizens), 15-172 (senior citizens assessment freeze), 15-175
11(general homestead), 15-176 (alternative general homestead),
12or 15-177 (long-time occupant).
 
13    Section 99. Effective date. This Act takes effect June 1,
142013.