SB0041 EngrossedLRB098 04285 HLH 35244 b

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 changing
5Section 20-15 and by adding Section 9-275 as follows:
 
6    (35 ILCS 200/9-275 new)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) For purposes of this Section:
9    "Erroneous homestead exemption" means a homestead
10exemption that was granted for real property in a taxable year
11if the property was not eligible for that exemption in that
12taxable year. If the taxpayer receives an erroneous homestead
13exemption under a single Section of this Code for the same
14property in multiple years, that exemption is considered a
15single erroneous homestead exemption for purposes of this
16Section. However, if the taxpayer receives erroneous homestead
17exemptions under multiple Sections of this Code for the same
18property, or if the taxpayer receives erroneous homestead
19exemptions under the same Section of this Code for multiple
20properties, then each of those exemptions is considered a
21separate erroneous homestead exemption for purposes of this
22Section.
23    "Homestead exemption" means an exemption under Section

 

 

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115-165 (disabled veterans), 15-167 (returning veterans),
215-168 (disabled persons), 15-169 (disabled veterans standard
3homestead), 15-170 (senior citizens), 15-172 (senior citizens
4assessment freeze), 15-175 (general homestead), 15-176
5(alternative general homestead), or 15-177 (long-time
6occupant).
7    (b) Notwithstanding any other provision of law, in counties
8with 3,000,000 or more inhabitants, the chief county assessment
9officer shall include the following information with each
10assessment notice sent in a general assessment year: (1) a list
11of each homestead exemption available under Article 15 of this
12Code and a description of the eligibility criteria for that
13exemption; (2) a list of each homestead exemption applied to
14the property in the current assessment year; (3) information
15regarding penalties and interest that may be incurred under
16this Section if the property owner received an erroneous
17homestead exemption in a previous taxable year; and (4) notice
18of the 60-day grace period available under this subsection. If,
19within 60 days after receiving his or her assessment notice,
20the property owner notifies the chief county assessment officer
21that he or she received an erroneous homestead exemption in a
22previous assessment year, and if the property owner pays the
23principal amount of back taxes due and owing with respect to
24that exemption, plus interest as provided in subsection (f),
25then the property owner shall not be liable for the penalties
26provided in subsection (f) with respect to that exemption.

 

 

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1    (c) The chief county assessment officer in a county with
23,000,000 or more inhabitants may cause a lien to be recorded
3against property that (1) is located in the county and (2)
4received one or more erroneous homestead exemptions if, upon
5determination of the chief county assessment officer, the
6property owner received: (A) one or 2 erroneous homestead
7exemptions for real property, including at least one erroneous
8homestead exemption granted for the property against which the
9lien is sought, during any of the 3 assessment years
10immediately prior to the assessment year in which the notice of
11intent to record at tax lien is served; or (2) 3 or more
12erroneous homestead exemptions for real property, including at
13least one erroneous homestead exemption granted for the
14property against which the lien is sought, during any of the 6
15assessment years immediately prior to the assessment year in
16which the notice of intent to record at tax lien is served.
17Prior to recording the lien against the property, the chief
18county assessment officer shall cause to be served, by both
19regular mail and certified mail, return receipt requested, on
20the person to whom the most recent tax bill was mailed and the
21owner of record, a notice of intent to record a tax lien
22against the property.
23    (d) The notice of intent to record a tax lien described in
24subsection (c) shall: (1) identify, by property index number,
25the property against which the lien is being sought; (2)
26identify each specific homestead exemption that was

 

 

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1erroneously granted and the year or years in which each
2exemption was granted; (3) set forth the arrearage of taxes
3that would have been due if not for the erroneous homestead
4exemptions; (4) inform the property owner that he or she may
5request a hearing within 30 days after service and may appeal
6the hearing officer's ruling to the circuit court; and (5)
7inform the property owner that he or she may pay the amount
8due, plus interest and penalties, within 30 days after service.
9    (e) The notice must also include a form that the property
10owner may return to the chief county assessment officer to
11request a hearing. The property owner may request a hearing by
12returning the form within 30 days after service. The hearing
13shall be held within 90 days after the property owner is
14served. The chief county assessment officer shall promulgate
15rules of service and procedure for the hearing. The chief
16county assessment officer must generally follow rules of
17evidence and practices that prevail in the county circuit
18courts, but, because of the nature of these proceedings, the
19chief county assessment officer is not bound by those rules in
20all particulars. The chief county assessment officer shall
21appoint a hearing officer to oversee the hearing. The property
22owner shall be allowed to present evidence to the hearing
23officer at the hearing. After taking into consideration all the
24relevant testimony and evidence, the hearing officer shall make
25an administrative decision on whether the property owner was
26erroneously granted a homestead exemption for the assessment

 

 

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1year in question. The property owner may appeal the hearing
2officer's ruling to the circuit court of the county where the
3property is located as a final administrative decision under
4the Administrative Review Law.
5    (f) A lien against the property imposed under this Section
6shall be filed with the county recorder of deeds, but may not
7be filed sooner than 60 days after the notice was delivered to
8the property owner if the property owner does not request a
9hearing, or until the conclusion of the hearing and all appeals
10if the property owner does request a hearing. If a lien is
11filed pursuant to this Section and the property owner received
12one or 2 erroneous homestead exemptions during any of the 3
13assessment years immediately prior to the assessment year in
14which the notice of intent to record at tax lien is served,
15then the arrearages of taxes that might have been assessed for
16that property, plus 10% interest per annum, shall be charged
17against the property by the county treasurer. However, if a
18lien is filed pursuant to this Section and the property owner
19received 3 or more erroneous homestead exemptions during any of
20the 6 assessment years immediately prior to the assessment year
21in which the notice of intent to record at tax lien is served,
22the arrearages of taxes that might have been assessed for that
23property, plus a penalty of 50% of the total amount of unpaid
24taxes for each year for that property and 10% interest per
25annum, shall be charged against the property by the county
26treasurer.

 

 

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1    (g) If a person received an erroneous homestead exemption
2under Section 15-170 and: (1) the person was the spouse, child,
3grandchild, brother, sister, niece, or nephew of the previous
4owner; and (2) the person received the property by bequest or
5inheritance; then the person is not liable for the penalties
6imposed under this subsection for any year or years during
7which the county did not require an annual application for the
8exemption. However, that person is responsible for any interest
9owed under subsection (f).
10    (h) If the erroneous homestead exemption was granted as a
11result of a clerical error or omission on the part of the chief
12county assessment officer, and if the owner has paid its tax
13bills as received for the year in which the error occurred,
14then the interest and penalties authorized by this Section with
15respect to that homestead exemption shall not be chargeable to
16the owner. However, nothing in this Section shall prevent the
17collection of the principal amount of back taxes due and owing.
18    (i) A lien under this Section is not valid as to (1) any
19bona fide purchaser for value without notice of the erroneous
20homestead exemption whose rights in and to the underlying
21parcel arose after the erroneous homestead exemption was
22granted but before the filing of the notice of lien; or (2) any
23mortgagee, judgment creditor, or other lienor whose rights in
24and to the underlying parcel arose before the filing of the
25notice of lien. A title insurance policy for the property that
26is issued by a title company licensed to do business in the

 

 

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1State showing that the property is free and clear of any liens
2imposed under this Section shall be prima facie evidence that
3the property owner is without notice of the erroneous homestead
4exemption. Nothing in this Section shall be deemed to impair
5the rights of subsequent creditors and subsequent purchasers
6under Section 30 of the Conveyances Act.
7    (j) When a lien is filed against the property pursuant to
8this Section, the chief county assessment officer shall mail a
9copy of the lien to the person to whom the most recent tax bill
10was mailed and to the owner of record, and the outstanding
11liability created by such a lien is due and payable within 30
12days after the mailing of the lien by the chief county
13assessment officer. Payment shall be made to the chief county
14assessment officer who shall, upon receipt of the full amount
15due, provide in reasonable form a release of the lien and shall
16transmit the funds received to the county treasurer for
17distribution as provided in subsection (i) of this Section.
18This liability is deemed delinquent and shall bear interest
19beginning on the day after the due date.
20    (k) The unpaid taxes shall be paid to the appropriate
21taxing districts. Interest shall be paid to the county where
22the property is located. The penalty shall be paid to the chief
23county assessment officer's office for the administration of
24the provisions of this amendatory Act of the 98th General
25Assembly.
26    (l) The chief county assessment officer in a county with

 

 

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13,000,000 or more inhabitants shall establish an amnesty period
2for all taxpayers owing any tax due to an erroneous homestead
3exemption granted in a tax year prior to the 2013 tax year. The
4amnesty period shall begin on the effective date of this
5amendatory Act of the 98th General Assembly and shall run
6through December 31, 2013. If, during the amnesty period, the
7taxpayer pays the entire arrearage of taxes due for tax years
8prior to 2013, the county clerk shall abate and not seek to
9collect any interest or penalties that may be applicable and
10shall not seek civil or criminal prosecution for any taxpayer
11for tax years prior to 2013. Failure to pay all such taxes due
12during the amnesty period established under this Section shall
13invalidate the amnesty period for that taxpayer.
14    The chief county assessment officer in a county with
153,000,000 or more inhabitants shall (i) mail notice of the
16amnesty period with the tax bills for the second installment of
17taxes for the 2012 assessment year and (ii) as soon as possible
18after the effective date of this amendatory Act of the 98th
19General Assembly, publish notice of the amnesty period in a
20newspaper of general circulation in the county. Notices shall
21include information on the amnesty period, its purpose, and the
22method in which to make payment.
23    Taxpayers who are a party to any criminal investigation or
24to any civil or criminal litigation that is pending in any
25circuit court or appellate court, or in the Supreme Court of
26this State, for nonpayment, delinquency, or fraud in relation

 

 

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1to any property tax imposed by any taxing district located in
2the State on the effective date of this amendatory Act of the
398th General Assembly may not take advantage of the amnesty
4period.
5    A taxpayer who has claimed 3 or more homestead exemptions
6in error shall not be eligible for the amnesty period
7established under this subsection.
 
8    (35 ILCS 200/20-15)
9    Sec. 20-15. Information on bill or separate statement.
10There shall be printed on each bill, or on a separate slip
11which shall be mailed with the bill:
12        (a) a statement itemizing the rate at which taxes have
13    been extended for each of the taxing districts in the
14    county in whose district the property is located, and in
15    those counties utilizing electronic data processing
16    equipment the dollar amount of tax due from the person
17    assessed allocable to each of those taxing districts,
18    including a separate statement of the dollar amount of tax
19    due which is allocable to a tax levied under the Illinois
20    Local Library Act or to any other tax levied by a
21    municipality or township for public library purposes,
22        (b) a separate statement for each of the taxing
23    districts of the dollar amount of tax due which is
24    allocable to a tax levied under the Illinois Pension Code
25    or to any other tax levied by a municipality or township

 

 

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1    for public pension or retirement purposes,
2        (c) the total tax rate,
3        (d) the total amount of tax due, and
4        (e) the amount by which the total tax and the tax
5    allocable to each taxing district differs from the
6    taxpayer's last prior tax bill.
7    The county treasurer shall ensure that only those taxing
8districts in which a parcel of property is located shall be
9listed on the bill for that property.
10    In all counties the statement shall also provide:
11        (1) the property index number or other suitable
12    description,
13        (2) the assessment of the property,
14        (3) the statutory amount of each homestead exemption
15    applied to the property,
16        (4) the assessed value of the property after
17    application of all homestead exemptions,
18        (5) (3) the equalization factors imposed by the county
19    and by the Department, and
20        (6) (4) the equalized assessment resulting from the
21    application of the equalization factors to the basic
22    assessment.
23    In all counties which do not classify property for purposes
24of taxation, for property on which a single family residence is
25situated the statement shall also include a statement to
26reflect the fair cash value determined for the property. In all

 

 

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1counties which classify property for purposes of taxation in
2accordance with Section 4 of Article IX of the Illinois
3Constitution, for parcels of residential property in the lowest
4assessment classification the statement shall also include a
5statement to reflect the fair cash value determined for the
6property.
7    In all counties, the statement must include information
8that certain taxpayers may be eligible for tax exemptions,
9abatements, and other assistance programs and that, for more
10information, taxpayers should consult with the office of their
11township or county assessor and with the Illinois Department of
12Revenue.
13    In all counties, the statement shall include information
14that certain taxpayers may be eligible for the Senior Citizens
15and Disabled Persons Property Tax Relief Act and that
16applications are available from the Illinois Department on
17Aging.
18    In counties which use the estimated or accelerated billing
19methods, these statements shall only be provided with the final
20installment of taxes due. The provisions of this Section create
21a mandatory statutory duty. They are not merely directory or
22discretionary. The failure or neglect of the collector to mail
23the bill, or the failure of the taxpayer to receive the bill,
24shall not affect the validity of any tax, or the liability for
25the payment of any tax.
26(Source: P.A. 97-689, eff. 6-14-12.)
 

 

 

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1    Section 99. Effective date. This Act takes effect June 1,
22013.