98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1737

 

Introduced 2/15/2013, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/14-41
35 ILCS 200/21-15
35 ILCS 200/21-20
35 ILCS 200/21-25

    Amends the Property Tax Code. Provides that, if the taxpayer is notified on or before October 1 of any year that he or she owes an arrearage of taxes due to an administrative error, then the county collector may send a separate bill for the arrearages of taxes, which may be due no sooner than 30 days after the due date for the next installment of taxes.


LRB098 06651 HLH 40661 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1737LRB098 06651 HLH 40661 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
5Sections 14-41, 21-15, 21-20, and 21-25 as follows:
 
6    (35 ILCS 200/14-41)
7    Sec. 14-41. Notice and collection of arrearages of property
8taxes. If a taxpayer owes arrearages of taxes due to an
9administrative error, the county may not bill, collect, claim a
10lien for, or sell the arrearages of taxes for tax years earlier
11than the 2 most recent tax years, including the current tax
12year. If a taxpayer owes arrearages of taxes due to an
13administrative error, the county collector shall send the
14taxpayer, by certified mail, a notice that the arrearages of
15taxes are owed by the taxpayer. If the notice is mailed to the
16taxpayer on or before October 1 in any year, then (i) the
17county collector may send a separate bill for the arrearages of
18taxes, which may be due no sooner than 30 days after the due
19date for the next installment of taxes or (ii) the arrearages
20of taxes may are to be added to the tax bill for the following
21year, in which case the taxes and are due in 2 equal
22installments on June 1 and September 1 in the following year
23unless the county has adopted an accelerated method of billing

 

 

SB1737- 2 -LRB098 06651 HLH 40661 b

1in which case the arrearages of taxes may be billed separately
2and shall be due in equal installments on the dates on which
3each installment of taxes is due in the following year. If the
4notice is mailed after October 1 in any year, then the
5arrearages of taxes are to be added to the tax bill for the
6second year after the notice and are due in 2 equal
7installments on June 1 and September 1 in the second year after
8the notice unless the county has adopted an accelerated method
9of billing in which case the arrearages of taxes may be billed
10separately and shall be due in equal installments on the dates
11on which each installment of taxes is due in the second year
12after the notice. In no event shall the due dates on the
13arrearages of taxes be in more than one tax year. The
14arrearages of taxes added to a tax bill under this Section are
15to be listed separately on the tax bill. "Administrative error"
16includes but is not limited to failure to include an extension
17for a taxing district on the tax bill, an error in the
18calculations of tax rates or extensions or any other
19mathematical error by the county clerk, or a defective coding
20by the county, but does not include a failure by the county to
21send a tax bill to the taxpayer, the failure by the taxpayer to
22notify the assessor of a change in the tax-exempt status of
23property, or any error concerning the assessment of the
24property.
25(Source: P.A. 89-617, eff. 9-1-96.)
 

 

 

SB1737- 3 -LRB098 06651 HLH 40661 b

1    (35 ILCS 200/21-15)
2    Sec. 21-15. General tax due dates; default by mortgage
3lender. Except as otherwise provided in this Section or Section
421-40, all property upon which the first installment of taxes
5remains unpaid on the later of (i) June 1 or (ii) the day after
6the date specified on the real estate tax bill as the first
7installment due date annually shall be deemed delinquent and
8shall bear interest after that date at the rate of 1 1/2% per
9month or portion thereof. Except as otherwise provided in this
10Section or Section 21-40, all property upon which the second
11installment of taxes remains due and unpaid on the later of (i)
12September 1 or (ii) the day after the date specified on the
13real estate tax bill as the second installment due date,
14annually, shall be deemed delinquent and shall bear interest
15after that date at the same interest rate. Notwithstanding any
16other provision of law, if a taxpayer owes an arrearage of
17taxes due to an administrative error, and if the county
18collector sends a separate bill for that arrearage as provided
19in Section 14-41, then any part of the arrearage of taxes that
20remains unpaid on the day after the due date specified on that
21tax bill shall be deemed delinquent and shall bear interest
22after that date at the rate of 1 1/2% per month or portion
23thereof. All interest collected shall be paid into the general
24fund of the county. Payment received by mail and postmarked on
25or before the required due date is not delinquent.
26    Property not subject to the interest charge in Section

 

 

SB1737- 4 -LRB098 06651 HLH 40661 b

19-260 or Section 9-265 shall also not be subject to the
2interest charge imposed by this Section until such time as the
3owner of the property receives actual notice of and is billed
4for the principal amount of back taxes due and owing.
5    If an Illinois resident who is a member of the Illinois
6National Guard or a reserve component of the armed forces of
7the United States and who has an ownership interest in property
8taxed under this Act is called to active duty for deployment
9outside the continental United States and is on active duty on
10the due date of any installment of taxes due under this Act, he
11or she shall not be deemed delinquent in the payment of the
12installment and no interest shall accrue or be charged as a
13penalty on the installment until 180 days after that member
14returns from active duty. To be deemed not delinquent in the
15payment of an installment of taxes and any interest on that
16installment, the reservist or guardsperson must make a
17reasonable effort to notify the county clerk and the county
18collector of his or her activation to active duty and must
19notify the county clerk and the county collector within 180
20days after his or her deactivation and provide verification of
21the date of his or her deactivation. An installment of property
22taxes on the property of any reservist or guardsperson who
23fails to provide timely notice and verification of deactivation
24to the county clerk is subject to interest and penalties as
25delinquent taxes under this Code from the date of deactivation.
26    Notwithstanding any other provision of law, when any unpaid

 

 

SB1737- 5 -LRB098 06651 HLH 40661 b

1taxes become delinquent under this Section through the fault of
2the mortgage lender, (i) the interest assessed under this
3Section for delinquent taxes shall be charged against the
4mortgage lender and not the mortgagor and (ii) the mortgage
5lender shall pay the taxes, redeem the property and take all
6necessary steps to remove any liens accruing against the
7property because of the delinquency. In the event that more
8than one entity meets the definition of mortgage lender with
9respect to any mortgage, the interest shall be assessed against
10the mortgage lender responsible for servicing the mortgage.
11Unpaid taxes shall be deemed delinquent through the fault of
12the mortgage lender only if: (a) the mortgage lender has
13received all payments due the mortgage lender for the property
14being taxed under the written terms of the mortgage or
15promissory note secured by the mortgage, (b) the mortgage
16lender holds funds in escrow to pay the taxes, and (c) the
17funds are sufficient to pay the taxes after deducting all
18amounts reasonably anticipated to become due for all hazard
19insurance premiums and mortgage insurance premiums and any
20other assessments to be paid from the escrow under the terms of
21the mortgage. For purposes of this Section, an amount is
22reasonably anticipated to become due if it is payable within 12
23months from the time of determining the sufficiency of funds
24held in escrow. Unpaid taxes shall not be deemed delinquent
25through the fault of the mortgage lender if the mortgage lender
26was directed in writing by the mortgagor not to pay the

 

 

SB1737- 6 -LRB098 06651 HLH 40661 b

1property taxes, or if the failure to pay the taxes when due
2resulted from inadequate or inaccurate parcel information
3provided by the mortgagor, a title or abstract company, or by
4the agency or unit of government assessing the tax.
5(Source: P.A. 97-944, eff. 8-10-12.)
 
6    (35 ILCS 200/21-20)
7    Sec. 21-20. Due dates; accelerated billing in counties of
8less than 3,000,000. Except as otherwise provided in Section
921-40, in counties with less than 3,000,000 inhabitants in
10which the accelerated method of billing and paying taxes
11provided for in Section 21-30 is in effect, the estimated first
12installment of unpaid taxes shall be deemed delinquent and
13shall bear interest after a date not later than June 1 annually
14as provided for in the ordinance or resolution of the county
15board adopting the accelerated method, at the rate of 1 1/2%
16per month or portion thereof until paid or forfeited. The
17second installment of unpaid taxes shall be deemed delinquent
18and shall bear interest after August 1 annually at the same
19interest rate until paid or forfeited. Payment received by mail
20and postmarked on or before the required due date is not
21delinquent. Notwithstanding any other provision of law, if a
22taxpayer owes an arrearage of taxes due to an administrative
23error, and if the county collector sends a separate bill for
24that arrearage as provided in Section 14-41, then any part of
25the arrearage of taxes that remains unpaid on the day after the

 

 

SB1737- 7 -LRB098 06651 HLH 40661 b

1due date specified on that tax bill shall be deemed delinquent
2and shall bear interest after that date at the rate of 1 1/2%
3per month or portion thereof.
4    If an Illinois resident who is a member of the Illinois
5National Guard or a reserve component of the armed forces of
6the United States and who has an ownership interest in property
7taxed under this Act is called to active duty for deployment
8outside the continental United States and is on active duty on
9the due date of any installment of taxes due under this Act, he
10or she shall not be deemed delinquent in the payment of the
11installment and no interest shall accrue or be charged as a
12penalty on the installment until 180 days after that member
13returns from active duty. To be deemed not delinquent in the
14payment of an installment of taxes and any interest on that
15installment, the reservist or guardsperson must make a
16reasonable effort to notify the county clerk and the county
17collector of his or her activation to active duty and must
18notify the county clerk and the county collector within 180
19days after his or her deactivation and provide verification of
20the date of his or her deactivation. An installment of property
21taxes on the property of any reservist or guardsperson who
22fails to provide timely notice and verification of deactivation
23to the county clerk is subject to interest and penalties as
24delinquent taxes under this Code from the date of deactivation.
25(Source: P.A. 94-312, eff. 7-25-05.)
 

 

 

SB1737- 8 -LRB098 06651 HLH 40661 b

1    (35 ILCS 200/21-25)
2    Sec. 21-25. Due dates; accelerated billing in counties of
33,000,000 or more. Except as hereinafter provided and as
4provided in Section 21-40, in counties with 3,000,000 or more
5inhabitants in which the accelerated method of billing and
6paying taxes provided for in Section 21-30 is in effect, the
7estimated first installment of unpaid taxes shall be deemed
8delinquent and shall bear interest after March 1 at the rate of
91 1/2% per month or portion thereof until paid or forfeited.
10For tax year 2010, the estimated first installment of unpaid
11taxes shall be deemed delinquent and shall bear interest after
12April 1 at the rate of 1.5% per month or portion thereof until
13paid or forfeited. For all tax years, the second installment of
14unpaid taxes shall be deemed delinquent and shall bear interest
15after August 1 annually at the same interest rate until paid or
16forfeited. Notwithstanding any other provision of law, if a
17taxpayer owes an arrearage of taxes due to an administrative
18error, and if the county collector sends a separate bill for
19that arrearage as provided in Section 14-41, then any part of
20the arrearage of taxes that remains unpaid on the day after the
21due date specified on that tax bill shall be deemed delinquent
22and shall bear interest after that date at the rate of 1 1/2%
23per month or portion thereof.
24    If the county board elects by ordinance adopted prior to
25July 1 of a levy year to provide for taxes to be paid in 4
26installments, each installment for that levy year and each

 

 

SB1737- 9 -LRB098 06651 HLH 40661 b

1subsequent year shall be deemed delinquent and shall begin to
2bear interest 30 days after the date specified by the ordinance
3for mailing bills, at the rate of 1 1/2% per month or portion
4thereof, until paid or forfeited.
5    Payment received by mail and postmarked on or before the
6required due date is not delinquent.
7    Taxes levied on homestead property in which a member of the
8National Guard or reserves of the armed forces of the United
9States who was called to active duty on or after August 1,
101990, and who has an ownership interest, shall not be deemed
11delinquent and no interest shall accrue or be charged as a
12penalty on such taxes due and payable in 1991 or 1992 until one
13year after that member returns to civilian status.
14    If an Illinois resident who is a member of the Illinois
15National Guard or a reserve component of the armed forces of
16the United States and who has an ownership interest in property
17taxed under this Act is called to active duty for deployment
18outside the continental United States and is on active duty on
19the due date of any installment of taxes due under this Act, he
20or she shall not be deemed delinquent in the payment of the
21installment and no interest shall accrue or be charged as a
22penalty on the installment until 180 days after that member
23returns to civilian status. To be deemed not delinquent in the
24payment of an installment of taxes and any interest on that
25installment, the reservist or guardsperson must make a
26reasonable effort to notify the county clerk and the county

 

 

SB1737- 10 -LRB098 06651 HLH 40661 b

1collector of his or her activation to active duty and must
2notify the county clerk and the county collector within 180
3days after his or her deactivation and provide verification of
4the date of his or her deactivation. An installment of property
5taxes on the property of any reservist or guardsperson who
6fails to provide timely notice and verification of deactivation
7to the county clerk is subject to interest and penalties as
8delinquent taxes under this Code from the date of deactivation.
9(Source: P.A. 96-1297, eff. 7-26-10.)