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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 changing
5Section 9-275 as follows:
 
6    (35 ILCS 200/9-275)
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    "Erroneous exemption principal amount" means the total
8amount of property tax principal that would have been billed to
9a property index number but for the erroneous homestead
10exemption or exemptions a taxpayer received.
11    "Taxpayer" means the property owner or leasehold owner that
12erroneously received a homestead exemption upon property.
13    (b) Notwithstanding any other provision of law, in counties
14with 3,000,000 or more inhabitants, the chief county assessment
15officer shall include the following information with each
16assessment notice sent in a general assessment year: (1) a list
17of each homestead exemption available under Article 15 of this
18Code and a description of the eligibility criteria for that
19exemption; (2) a list of each homestead exemption applied to
20the property in the current assessment year; (3) information
21regarding penalties and interest that may be incurred under
22this Section if the property owner received an erroneous
23homestead exemption in a previous taxable year; and (4) notice
24of the 60-day grace period available under this subsection. If,
25within 60 days after receiving his or her assessment notice,
26the property owner notifies the chief county assessment officer

 

 

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1that he or she received an erroneous homestead exemption in a
2previous assessment year, and if the property owner pays the
3erroneous exemption principal amount of back taxes due and
4owing with respect to that exemption, plus interest as provided
5in subsection (f), then the property owner shall not be liable
6for the penalties provided in subsection (f) with respect to
7that exemption.
8    (c) In counties with 3,000,000 or more inhabitants, when
9the chief county assessment officer determines that one or more
10erroneous homestead exemptions was applied to the property, the
11erroneous exemption principal amount, together with all
12applicable interest and penalties as provided in subsections
13(f) and (j), shall constitute a lien in the name of the People
14of Cook County on the property receiving the erroneous
15homestead exemption. The chief county assessment officer in a
16county with 3,000,000 or more inhabitants may cause a lien to
17be recorded against property that (1) is located in the county
18and (2) received one or more erroneous homestead exemptions if,
19upon determination of the chief county assessment officer, the
20property owner received: (A) one or 2 erroneous homestead
21exemptions for real property, including at least one erroneous
22homestead exemption granted for the property against which the
23lien is sought, during any of the 3 assessment years
24immediately prior to the assessment year in which the notice of
25intent to record a at tax lien is served; or (B) (2) 3 or more
26erroneous homestead exemptions for real property, including at

 

 

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1least one erroneous homestead exemption granted for the
2property against which the lien is sought, during any of the 6
3assessment years immediately prior to the assessment year in
4which the notice of intent to record a at tax lien is served.
5Prior to recording the lien against the property, the chief
6county assessment officer shall cause to be served, by both
7regular mail and certified mail, return receipt requested, on
8the person to whom the most recent tax bill was mailed and the
9owner of record, a notice of intent to record a tax lien
10against the property.
11    (d) The notice of intent to record a tax lien described in
12subsection (c) shall: (1) identify, by property index number,
13the property against which the lien is being sought; (2)
14identify each specific homestead exemption that was
15erroneously granted and the year or years in which each
16exemption was granted; (3) set forth the erroneous exemption
17principal amount due and the interest amount and any penalty
18due the arrearage of taxes that would have been due if not for
19the erroneous homestead exemptions; (4) inform the taxpayer
20property owner that he or she may request a hearing within 30
21days after service and may appeal the hearing officer's ruling
22to the circuit court; and (5) inform the taxpayer property
23owner that he or she may pay the erroneous exemption principal
24amount due, plus interest and penalties, within 30 days after
25service. A lien shall not be filed pursuant to this Section if
26the property owner pays the erroneous exemption principal

 

 

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1amount, plus penalties and interest, within 30 days of service
2of the notice of intent to record a lien.
3    (e) The notice shall must also include a form that the
4property owner may return to the chief county assessment
5officer to request a hearing. The property owner may request a
6hearing by returning the form within 30 days after service. The
7hearing shall be held within 90 days after the property owner
8is served. The chief county assessment officer shall promulgate
9rules of service and procedure for the hearing. The chief
10county assessment officer must generally follow rules of
11evidence and practices that prevail in the county circuit
12courts, but, because of the nature of these proceedings, the
13chief county assessment officer is not bound by those rules in
14all particulars. The chief county assessment officer shall
15appoint a hearing officer to oversee the hearing. The property
16owner shall be allowed to present evidence to the hearing
17officer at the hearing. After taking into consideration all the
18relevant testimony and evidence, the hearing officer shall make
19an administrative decision on whether the property owner was
20erroneously granted a homestead exemption for the assessment
21year in question. The property owner may appeal the hearing
22officer's ruling to the circuit court of the county where the
23property is located as a final administrative decision under
24the Administrative Review Law.
25    (f) A lien against the property imposed under this Section
26shall be filed with the county recorder of deeds, but may not

 

 

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1be filed sooner than 60 days after the notice was delivered to
2the property owner if the property owner does not request a
3hearing, or until the conclusion of the hearing and all appeals
4if the property owner does request a hearing. If a lien is
5filed pursuant to this Section and the property owner received
6one or 2 erroneous homestead exemptions during any of the 3
7assessment years immediately prior to the assessment year in
8which the notice of intent to record a at tax lien is served,
9then the erroneous exemption principal amount arrearages of
10taxes that might have been assessed for that property, plus 10%
11interest per annum or portion thereof from the date the
12erroneous exemption principal amount would have become due if
13properly included in the tax bill, shall be charged against the
14property by the chief county assessment officer treasurer.
15However, if a lien is filed pursuant to this Section and the
16property owner received 3 or more erroneous homestead
17exemptions during any of the 6 assessment years immediately
18prior to the assessment year in which the notice of intent to
19record a at tax lien is served, the erroneous exemption
20principal amount arrearages of taxes that might have been
21assessed for that property, plus a penalty of 50% of the total
22amount of the erroneous exemption principal amount unpaid taxes
23for each year for that property and 10% interest per annum or
24portion thereof from the date the erroneous exemption principal
25amount would have become due if properly included in the tax
26bill, shall be charged against the property by the chief county

 

 

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

 

 

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

 

 

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1bear interest beginning on the day after the due date at a rate
2of 1.5% per month or portion thereof.
3    (k) The county treasurer shall pay collected erroneous
4exemption principal amounts, pro rata, unpaid taxes shall be
5paid to the appropriate taxing districts, or their legal
6successors, that levied upon the subject property in the
7assessment year or years for which the erroneous homestead
8exemptions were granted. The county treasurer shall pay
9collected interest . Interest shall be paid to the county where
10the property is located. The county treasurer shall deposit
11collected penalties into a special fund established by the
12county treasurer to offset The penalty shall be paid to the
13chief county assessment officer's office for the costs of
14administration of the provisions of this amendatory Act of the
1598th General Assembly by the chief county assessment officer's
16office, as appropriated by the county board.
17    (l) The chief county assessment officer in a county with
183,000,000 or more inhabitants shall establish an amnesty period
19for all taxpayers owing any tax due to an erroneous homestead
20exemption granted in a tax year prior to the 2013 tax year. The
21amnesty period shall begin on the effective date of this
22amendatory Act of the 98th General Assembly and shall run
23through December 31, 2013. If, during the amnesty period, the
24taxpayer pays the entire arrearage of taxes due for tax years
25prior to 2013, the county clerk shall abate and not seek to
26collect any interest or penalties that may be applicable and

 

 

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1shall not seek civil or criminal prosecution for any taxpayer
2for tax years prior to 2013. Failure to pay all such taxes due
3during the amnesty period established under this Section shall
4invalidate the amnesty period for that taxpayer.
5    The chief county assessment officer in a county with
63,000,000 or more inhabitants shall (i) mail notice of the
7amnesty period with the tax bills for the second installment of
8taxes for the 2012 assessment year and (ii) as soon as possible
9after the effective date of this amendatory Act of the 98th
10General Assembly, publish notice of the amnesty period in a
11newspaper of general circulation in the county. Notices shall
12include information on the amnesty period, its purpose, and the
13method by in which to make payment.
14    Taxpayers who are a party to any criminal investigation or
15to any civil or criminal litigation that is pending in any
16circuit court or appellate court, or in the Supreme Court of
17this State, for nonpayment, delinquency, or fraud in relation
18to any property tax imposed by any taxing district located in
19the State on the effective date of this amendatory Act of the
2098th General Assembly may not take advantage of the amnesty
21period.
22    A taxpayer who has claimed 3 or more homestead exemptions
23in error shall not be eligible for the amnesty period
24established under this subsection.
25(Source: P.A. 98-93, eff. 7-16-13; revised 9-11-13.)