093_HB2905eng

 
HB2905 Engrossed                     LRB093 07191 SJM 07346 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Sections 21-15, 21-20, and 21-25 as follows:

 6        (35 ILCS 200/21-15)
 7        Sec.  21-15.   General tax due dates; default by mortgage
 8    lender. Except as  otherwise  provided  in  this  Section  or
 9    Section  21-40, all property upon which the first installment
10    of taxes remains unpaid on June 1 annually  shall  be  deemed
11    delinquent  and  shall bear interest after June 1 at the rate
12    of 1 1/2% per month or portion thereof.  Except as  otherwise
13    provided  in this Section or Section 21-40, all property upon
14    which the second installment of taxes remains due and  unpaid
15    on  September  1,  annually,  shall  be deemed delinquent and
16    shall bear interest after September 1 at  the  same  interest
17    rate.  All  interest collected shall be paid into the general
18    fund of the county.  Payment received by mail and  postmarked
19    on or before the required due date is not delinquent.
20        Property  not  subject  to the interest charge in Section
21    9-265 shall also  not  be  subject  to  the  interest  charge
22    imposed  by  this Section until such time as the owner of the
23    property receives actual notice of  and  is  billed  for  the
24    principal amount of back taxes due and owing.
25        If  an  Illinois resident who is a member of the Illinois
26    National Guard or a reserve component of the armed forces  of
27    the  United  States  and  who  has  an  ownership interest in
28    property taxed under this Act is called to  active  duty  for
29    deployment  outside  the  continental United States and is on
30    active duty on the due date of any installment of  taxes  due
31    under  this  Act, he or she shall not be deemed delinquent in
 
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 1    the payment of the installment and no interest  shall  accrue
 2    or  be charged as a penalty on the installment until one year
 3    30 days after that member returns from  active  duty.  To  be
 4    deemed  not  delinquent  in  the payment of an installment of
 5    taxes and any interest on that installment, the reservist  or
 6    guardsperson  must  notify  the  county  clerk within 30 days
 7    after his or her deactivation and provide verification of the
 8    date of his or her deactivation. An installment  of  property
 9    taxes  on  the  property of any reservist or guardsperson who
10    fails  to  provide  timely   notice   and   verification   of
11    deactivation  to  the county clerk is subject to interest and
12    penalties as delinquent taxes under this Code from  the  date
13    of deactivation.
14        Notwithstanding  any  other  provision  of  law, when any
15    unpaid taxes become delinquent under this Section through the
16    fault of the mortgage lender, (i) the interest assessed under
17    this Section for delinquent taxes shall  be  charged  against
18    the  mortgage  lender  and  not  the  mortgagor  and (ii) the
19    mortgage lender shall pay the taxes, redeem the property  and
20    take all necessary steps to remove any liens accruing against
21    the  property  because  of the delinquency. In the event that
22    more than one entity meets the definition of mortgage  lender
23    with  respect to any mortgage, the interest shall be assessed
24    against the mortgage lender  responsible  for  servicing  the
25    mortgage.   Unpaid  taxes  shall be deemed delinquent through
26    the fault of the mortgage lender only if:  (a)  the  mortgage
27    lender  has received all payments due the mortgage lender for
28    the property being taxed  under  the  written  terms  of  the
29    mortgage  or promissory note secured by the mortgage, (b) the
30    mortgage lender holds funds in escrow to pay the  taxes,  and
31    (c) the funds are sufficient to pay the taxes after deducting
32    all  amounts  reasonably  anticipated  to  become due for all
33    hazard insurance premiums and mortgage insurance premiums and
34    any other assessments to be paid from the  escrow  under  the
 
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 1    terms  of  the  mortgage.  For  purposes  of this Section, an
 2    amount is reasonably anticipated  to  become  due  if  it  is
 3    payable  within  12  months  from the time of determining the
 4    sufficiency of funds held in escrow.  Unpaid taxes shall  not
 5    be deemed delinquent through the fault of the mortgage lender
 6    if  the  mortgage  lender  was  directed  in  writing  by the
 7    mortgagor not to pay the property taxes, or if the failure to
 8    pay the taxes when due resulted from inadequate or inaccurate
 9    parcel information provided by  the  mortgagor,  a  title  or
10    abstract  company,  or  by  the  agency or unit of government
11    assessing the tax.
12    (Source: P.A. 90-336,  eff.  1-1-98;  90-575,  eff.  3-20-98;
13    91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

14        (35 ILCS 200/21-20)
15        Sec.  21-20.   Due dates; accelerated billing in counties
16    of less than  3,000,000.  Except  as  otherwise  provided  in
17    Section   21-40,   in   counties  with  less  than  3,000,000
18    inhabitants in which the accelerated method  of  billing  and
19    paying  taxes provided for in Section 21-30 is in effect, the
20    estimated first installment of unpaid taxes shall  be  deemed
21    delinquent  and  shall  bear  interest after a date not later
22    than June 1 annually as provided  for  in  the  ordinance  or
23    resolution  of  the  county  board  adopting  the accelerated
24    method, at the rate of 1 1/2% per month  or  portion  thereof
25    until  paid  or  forfeited.  The second installment of unpaid
26    taxes shall be deemed  delinquent  and  shall  bear  interest
27    after  August 1 annually at the same interest rate until paid
28    or forfeited.  Payment received by mail and postmarked on  or
29    before the required due date is not delinquent.
30        If  an  Illinois resident who is a member of the Illinois
31    National Guard or a reserve component of the armed forces  of
32    the  United  States  and  who  has  an  ownership interest in
33    property taxed under this Act is called to  active  duty  for
 
HB2905 Engrossed            -4-      LRB093 07191 SJM 07346 b
 1    deployment  outside  the  continental United States and is on
 2    active duty on the due date of any installment of  taxes  due
 3    under  this  Act, he or she shall not be deemed delinquent in
 4    the payment of the installment and no interest  shall  accrue
 5    or  be charged as a penalty on the installment until one year
 6    30 days after that member returns from  active  duty.  To  be
 7    deemed  not  delinquent  in  the payment of an installment of
 8    taxes and any interest on that installment, the reservist  or
 9    guardsperson  must  notify  the  county  clerk within 30 days
10    after his or her deactivation and provide verification of the
11    date of his or her deactivation. An installment  of  property
12    taxes  on  the  property of any reservist or guardsperson who
13    fails  to  provide  timely   notice   and   verification   of
14    deactivation  to  the county clerk is subject to interest and
15    penalties as delinquent taxes under this Code from  the  date
16    of deactivation.
17    (Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

18        (35 ILCS 200/21-25)
19        Sec.  21-25.   Due dates; accelerated billing in counties
20    of 3,000,000 or more.  Except as hereinafter provided and  as
21    provided in Section 21-40, in counties with 3,000,000 or more
22    inhabitants  in  which  the accelerated method of billing and
23    paying taxes provided for in Section 21-30 is in effect,  the
24    estimated  first  installment of unpaid taxes shall be deemed
25    delinquent and shall bear interest after March 1 at the  rate
26    of  1  1/2%  per  month  or  portion  thereof  until  paid or
27    forfeited. The second installment of unpaid  taxes  shall  be
28    deemed  delinquent  and  shall  bear  interest after August 1
29    annually at the same interest rate until paid or forfeited.
30        If the county board elects by ordinance adopted prior  to
31    July  1  of  a levy year to provide for taxes to be paid in 4
32    installments, each installment for that levy  year  and  each
33    subsequent year shall be deemed delinquent and shall begin to
 
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 1    bear  interest  30  days  after  the  date  specified  by the
 2    ordinance for mailing bills, at the rate of 1 1/2% per  month
 3    or portion thereof, until paid or forfeited.
 4        Payment  received by mail and postmarked on or before the
 5    required due date is not delinquent.
 6        Taxes levied on homestead property in which a  member  of
 7    the  National  Guard  or  reserves of the armed forces of the
 8    United States who was called  to  active  duty  on  or  after
 9    August  1, 1990, and who has an ownership interest, shall not
10    be deemed delinquent and  no  interest  shall  accrue  or  be
11    charged as a penalty on such taxes due and payable in 1991 or
12    1992  until  one  year  after that member returns to civilian
13    status.
14        If an Illinois resident who is a member of  the  Illinois
15    National  Guard or a reserve component of the armed forces of
16    the United States  and  who  has  an  ownership  interest  in
17    property  taxed  under  this Act is called to active duty for
18    deployment outside the continental United States  and  is  on
19    active  duty  on the due date of any installment of taxes due
20    under this Act, he or she shall not be deemed  delinquent  in
21    the  payment  of the installment and no interest shall accrue
22    or be charged as a penalty on the installment until one  year
23    30  days  after that member returns to civilian status. To be
24    deemed not delinquent in the payment  of  an  installment  of
25    taxes  and any interest on that installment, the reservist or
26    guardsperson must notify the  county  clerk  within  30  days
27    after his or her deactivation and provide verification of the
28    date  of  his or her deactivation. An installment of property
29    taxes on the property of any reservist  or  guardsperson  who
30    fails   to   provide   timely   notice  and  verification  of
31    deactivation to the county clerk is subject to  interest  and
32    penalties  as  delinquent taxes under this Code from the date
33    of deactivation.
34    (Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
 
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 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.