Sen. Antonio Muņoz

Filed: 5/15/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 41

2    AMENDMENT NO. ______. Amend Senate Bill 41, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Property Tax Code is amended by changing
6Section 20-15 and by adding Section 9-275 as follows:
 
7    (35 ILCS 200/9-275 new)
8    Sec. 9-275. Erroneous homestead exemptions.
9    (a) For purposes of this Section:
10    "Erroneous homestead exemption" means a homestead
11exemption that was granted for real property in a taxable year
12if the property was not eligible for that exemption in that
13taxable year. If the taxpayer receives an erroneous homestead
14exemption under a single Section of this Code for the same
15property in multiple years, that exemption is considered a
16single erroneous homestead exemption for purposes of this

 

 

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1Section. However, if the taxpayer receives erroneous homestead
2exemptions under multiple Sections of this Code for the same
3property, or if the taxpayer receives erroneous homestead
4exemptions under the same Section of this Code for multiple
5properties, then each of those exemptions is considered
6separate erroneous homestead exemption for purposes of this
7Section.
8    "Homestead exemption" means an exemption under Section
915-165 (disabled veterans), 15-167 (returning veterans),
1015-168 (disabled persons), 15-169 (disabled veterans standard
11homestead), 15-170 (senior citizens), 15-172 (senior citizens
12assessment freeze), 15-175 (general homestead), 15-176
13(alternative general homestead), or 15-177 (long-time
14occupant).
15    (b) Notwithstanding any other provision of law, in counties
16with 3,000,000 or more inhabitants, the chief county assessment
17officer shall include the following information with each
18assessment notice sent in a general assessment year: (1) a list
19of each homestead exemption available under Article 15 of this
20Code and a description of the eligibility criteria for that
21exemption; (2) a list of each homestead exemption applied to
22the property in the current assessment year; (3) information
23regarding penalties and interest that may be incurred under
24this Section if the property owner received an erroneous
25homestead exemption in a previous taxable year; and (4) notice
26of the 60-day grace period available under this subsection. If,

 

 

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1within 60 days after receiving his or her assessment notice,
2the property owner notifies the chief county assessment officer
3that he or she received an erroneous homestead exemption in a
4previous assessment year, and if the property owner pays the
5principal amount of back taxes due and owing with respect to
6that exemption, plus interest as provided in subsection (f),
7then the property owner shall not be liable for the penalties
8provided in subsection (f) with respect to that exemption.
9    (c) The chief county assessment officer in a county with
103,000,000 or more inhabitants may cause a lien to be recorded
11against property that (1) is located in the county and (2)
12received one or more erroneous homestead exemptions if, upon
13determination of the chief county assessment officer, the
14property owner received: (A) one or 2 erroneous homestead
15exemptions for real property, including at least one erroneous
16homestead exemption granted for the property against which the
17lien is sought, during any of the 3 assessment years
18immediately prior to the assessment year in which the notice of
19intent to record at tax lien is served; or (2) 3 or more
20erroneous homestead exemptions for real property, including at
21least one erroneous homestead exemption granted for the
22property against which the lien is sought, during any of the 6
23assessment years immediately prior to the assessment year in
24which the notice of intent to record at tax lien is served.
25Prior to recording the lien against the property, the chief
26county assessment officer shall cause to be served, by both

 

 

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1regular mail and certified mail, return receipt requested, on
2the person to whom the most recent tax bill was mailed and the
3owner of record, a notice of intent to record a tax lien
4against the property.
5    (d) The notice of intent to record a tax lien described in
6subsection (c) shall: (1) identify, by property index number,
7the property against which the lien is being sought; (2)
8identify each specific homestead exemption that was
9erroneously granted and the year or years in which each
10exemption was granted; (3) set forth the arrearage of taxes
11that would have been due if not for the erroneous homestead
12exemptions; (4) inform the property owner that he or she may
13request a hearing within 30 days after service and may appeal
14the hearing officer's ruling to the circuit court; and (5)
15inform the property owner that he or she may pay the amount
16due, plus interest and penalties, within 30 days after service.
17    (e) The notice must also include a form that the property
18owner may return to the chief county assessment officer to
19request a hearing. The property owner may request a hearing by
20returning the form within 30 days after service. The hearing
21shall be held within 90 days after the property owner is
22served. The chief county assessment officer shall promulgate
23rules of service and procedure for the hearing. The chief
24county assessment officer must generally follow rules of
25evidence and practices that prevail in the county circuit
26courts, but, because of the nature of these proceedings, the

 

 

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

 

 

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1received 3 or more erroneous homestead exemptions during any of
2the 6 assessment years immediately prior to the assessment year
3in which the notice of intent to record at tax lien is served,
4the arrearages of taxes that might have been assessed for that
5property, plus a penalty of 50% of the total amount of unpaid
6taxes for each year for that property and 10% interest per
7annum, shall be charged against the property by the county
8treasurer.
9    (g) If a person received an erroneous homestead exemption
10under Section 15-170 and: (1) the person was the spouse, child,
11grandchild, brother, sister, niece, or nephew of the previous
12owner; and (2) the person received the property by bequest or
13inheritance; then the person is not liable for the penalties
14imposed under this subsection for any year or years during
15which the county did not require an annual application for the
16exemption. However, that person is responsible for any interest
17owed under subsection (f).
18    (h) If the erroneous homestead exemption was granted as a
19result of a clerical error or omission on the part of the chief
20county assessment officer, and if the owner has paid its tax
21bills as received for the year in which the error occurred,
22then the interest and penalties authorized by this Section with
23respect to that homestead exemption shall not be chargeable to
24the owner. However, nothing in this Section shall prevent the
25collection of the principal amount of back taxes due and owing.
26    (i) A lien under this Section is not valid as to (1) any

 

 

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1bona fide purchaser for value without notice of the erroneous
2homestead exemption whose rights in and to the underlying
3parcel arose after the erroneous homestead exemption was
4granted but before the filing of the notice of lien; or (2) any
5mortgagee, judgment creditor, or other lienor whose rights in
6and to the underlying parcel arose before the filing of the
7notice of lien. A title insurance policy for the property that
8is issued by a title company licensed to do business in the
9State showing that the property is free and clear of any liens
10imposed under this Section shall be prima facie evidence that
11the property owner is without notice of the erroneous homestead
12exemption. Nothing in this Section shall be deemed to impair
13the rights of subsequent creditors and subsequent purchasers
14under Section 30 of the Conveyances Act.
15    (j) When a lien is filed against the property pursuant to
16this Section, the chief county assessment officer shall mail a
17copy of the lien to the person to whom the most recent tax bill
18was mailed and to the owner of record, and the outstanding
19liability created by such a lien is due and payable within 30
20days after the mailing of the lien by the chief county
21assessment officer. Payment shall be made to the chief county
22assessment officer who shall, upon receipt of the full amount
23due, provide in reasonable form a release of the lien and shall
24transmit the funds received to the county treasurer for
25distribution as provided in subsection (i) of this Section.
26This liability is deemed delinquent and shall bear interest

 

 

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1beginning on the day after the due date.
2    (k) The unpaid taxes shall be paid to the appropriate
3taxing districts. Interest shall be paid to the county where
4the property is located. The penalty shall be paid to the chief
5county assessment officer's office for the administration of
6the provisions of this amendatory Act of the 98th General
7Assembly.
8    (l) The chief county assessment officer in a county with
93,000,000 or more inhabitants shall establish an amnesty period
10for all taxpayers owing any tax due to an erroneous homestead
11exemption granted in a tax year prior to the 2013 tax year. The
12amnesty period shall begin on the effective date of this
13amendatory Act of the 98th General Assembly and shall run
14through December 31, 2013. If, during the amnesty period, the
15taxpayer pays the entire arrearage of taxes due for tax years
16prior to 2013, the county clerk shall abate and not seek to
17collect any interest or penalties that may be applicable and
18shall not seek civil or criminal prosecution for any taxpayer
19for tax years prior to 2013. Failure to pay all such taxes due
20during the amnesty period established under this Section shall
21invalidate the amnesty period for that taxpayer.
22    The chief county assessment officer in a county with
233,000,000 or more inhabitants shall (i) mail notice of the
24amnesty period with the tax bills for the second installment of
25taxes for the 2012 assessment year and (ii) as soon as possible
26after the effective date of this amendatory Act of the 98th

 

 

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1General Assembly, publish notice of the amnesty period in a
2newspaper of general circulation in the county. Notices shall
3include information on the amnesty period, its purpose, and the
4method in which to make payment.
5    Taxpayers who are a party to any criminal investigation or
6to any civil or criminal litigation that is pending in any
7circuit court or appellate court, or in the Supreme Court of
8this State, for nonpayment, delinquency, or fraud in relation
9to any property tax imposed by any taxing district located in
10the State on the effective date of this amendatory Act of the
1198th General Assembly may not take advantage of the amnesty
12period.
13    A taxpayer who has claimed 3 or more homestead exemptions
14in error shall not be eligible for the amnesty period
15established under this subsection.
 
16    (35 ILCS 200/20-15)
17    Sec. 20-15. Information on bill or separate statement.
18There shall be printed on each bill, or on a separate slip
19which shall be mailed with the bill:
20        (a) a statement itemizing the rate at which taxes have
21    been extended for each of the taxing districts in the
22    county in whose district the property is located, and in
23    those counties utilizing electronic data processing
24    equipment the dollar amount of tax due from the person
25    assessed allocable to each of those taxing districts,

 

 

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1    including a separate statement of the dollar amount of tax
2    due which is allocable to a tax levied under the Illinois
3    Local Library Act or to any other tax levied by a
4    municipality or township for public library purposes,
5        (b) a separate statement for each of the taxing
6    districts of the dollar amount of tax due which is
7    allocable to a tax levied under the Illinois Pension Code
8    or to any other tax levied by a municipality or township
9    for public pension or retirement purposes,
10        (c) the total tax rate,
11        (d) the total amount of tax due, and
12        (e) the amount by which the total tax and the tax
13    allocable to each taxing district differs from the
14    taxpayer's last prior tax bill.
15    The county treasurer shall ensure that only those taxing
16districts in which a parcel of property is located shall be
17listed on the bill for that property.
18    In all counties the statement shall also provide:
19        (1) the property index number or other suitable
20    description,
21        (2) the assessment of the property,
22        (3) the statutory amount of each homestead exemption
23    applied to the property,
24        (4) the assessed value of the property after
25    application of all homestead exemptions,
26        (5) (3) the equalization factors imposed by the county

 

 

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1    and by the Department, and
2        (6) (4) the equalized assessment resulting from the
3    application of the equalization factors to the basic
4    assessment.
5    In all counties which do not classify property for purposes
6of taxation, for property on which a single family residence is
7situated the statement shall also include a statement to
8reflect the fair cash value determined for the property. In all
9counties which classify property for purposes of taxation in
10accordance with Section 4 of Article IX of the Illinois
11Constitution, for parcels of residential property in the lowest
12assessment classification the statement shall also include a
13statement to reflect the fair cash value determined for the
14property.
15    In all counties, the statement must include information
16that certain taxpayers may be eligible for tax exemptions,
17abatements, and other assistance programs and that, for more
18information, taxpayers should consult with the office of their
19township or county assessor and with the Illinois Department of
20Revenue.
21    In all counties, the statement shall include information
22that certain taxpayers may be eligible for the Senior Citizens
23and Disabled Persons Property Tax Relief Act and that
24applications are available from the Illinois Department on
25Aging.
26    In counties which use the estimated or accelerated billing

 

 

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1methods, these statements shall only be provided with the final
2installment of taxes due. The provisions of this Section create
3a mandatory statutory duty. They are not merely directory or
4discretionary. The failure or neglect of the collector to mail
5the bill, or the failure of the taxpayer to receive the bill,
6shall not affect the validity of any tax, or the liability for
7the payment of any tax.
8(Source: P.A. 97-689, eff. 6-14-12.)
 
9    Section 99. Effective date. This Act takes effect June 1,
102013.".