093_SB0813eng

 
SB813 Engrossed                      LRB093 10070 SJM 10321 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 9-265 and 21-15 as follows:

 6        (35 ILCS 200/9-265)
 7        Sec. 9-265.  Omitted property; interest; change in exempt
 8    use  or  ownership.    If  any  property  is  omitted  in the
 9    assessment of any year or years, so that the taxes, for which
10    the property was liable, have not been paid, or if by  reason
11    of defective description or assessment, taxes on any property
12    for any year or years have not been paid, or if any taxes are
13    refunded  under  subsection  (b)  of Section 14-5 because the
14    taxes were assessed in the wrong person's name, the property,
15    when discovered, shall be listed and assessed by the board of
16    review or, in counties with 3,000,000 or more inhabitants, by
17    the county assessor either on his or her  own  initiative  or
18    when  so directed by the board of appeals or board of review.
19    For purposes  of  this  Section,  "defective  description  or
20    assessment"  includes a description or assessment which omits
21    all the improvements thereon as a result of which part of the
22    taxes on the total value of the property as  improved  remain
23    unpaid.  In the case of property subject to assessment by the
24    Department, the property shall be listed and assessed by  the
25    Department.   All  such  property  shall  be  placed  on  the
26    assessment and tax books. The arrearages of taxes which might
27    have been assessed, with 10% interest thereon for  each  year
28    or  portion  thereof  from  2  years after the time the first
29    correct tax bill  ought  to  have  been  received,  shall  be
30    charged against the property by the county clerk.
31        When  property  or  acreage  omitted  by either incorrect
32    survey or other ministerial assessor error is discovered  and
 
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 1    the  owner has paid its tax bills as received for the year or
 2    years of omission of the parcel, then the interest authorized
 3    by this  Section  shall  not  be  chargeable  to  the  owner.
 4    However, nothing in this Section shall prevent the collection
 5    of  the  principal  amount  of  back  taxes  due  and  owing.
 6    Notwithstanding any other provision of Sections 9-260 through
 7    9-270,  if a taxpayer receives a tax bill for any property or
 8    portion of property that was omitted for 2 or more years from
 9    assessment as a result of a ministerial error, the  tax  bill
10    for  the omitted property must be paid within 16 months after
11    the date the taxpayer receives the tax bill. No interest  may
12    be  imposed  on  the tax bill for the omitted property during
13    that 16-month period. Any arrearage that remains unpaid after
14    the 16-month period ends, with 10% interest on the  arrearage
15    for each year or portion of a year from the date the taxpayer
16    received  the tax bill, shall be charged against the property
17    by the county clerk. After the 16-month period ends, interest
18    shall accrue on any remaining arrearage and interest owed  on
19    that arrearage as with all other delinquent tax bills.
20        If  any  property  listed  as  exempt by the chief county
21    assessment officer has a change in use, a change in leasehold
22    estate, or a change in titleholder  of  record  by  purchase,
23    grant,  taking or transfer, it shall be the obligation of the
24    transferee to notify the chief county assessment  officer  in
25    writing  within  30  days  of the change. The notice shall be
26    sent by certified mail, return receipt requested,  and  shall
27    include  the  name  and  address  of  the taxpayer, the legal
28    description of the property, and the property index number of
29    the property when an index number exists. If the  failure  to
30    give  the  notification  results  in  the  assessing official
31    continuing to list  the  property  as  exempt  in  subsequent
32    years,  the property shall be considered omitted property for
33    purposes of this Code.
34    (Source: P.A. 88-455;  89-126,  eff.  7-11-95;  89-671,  eff.
 
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 1    8-14-96.)

 2        (35 ILCS 200/21-15)
 3        Sec.  21-15.   General tax due dates; default by mortgage
 4    lender. Except as  otherwise  provided  in  this  Section  or
 5    Section  21-40, all property upon which the first installment
 6    of taxes remains unpaid on June 1 annually  shall  be  deemed
 7    delinquent  and  shall bear interest after June 1 at the rate
 8    of 1 1/2% per month or portion thereof.  Except as  otherwise
 9    provided  in this Section or Section 21-40, all property upon
10    which the second installment of taxes remains due and  unpaid
11    on  September  1,  annually,  shall  be deemed delinquent and
12    shall bear interest after September 1 at  the  same  interest
13    rate.  All  interest collected shall be paid into the general
14    fund of the county.  Payment received by mail and  postmarked
15    on or before the required due date is not delinquent.
16        Property  not  subject  to the interest charge in Section
17    9-265 shall also  not  be  subject  to  the  interest  charge
18    imposed by this Section until the 16-month period has expired
19    under  Section  9-265  such time as the owner of the property
20    receives actual notice of and is  billed  for  the  principal
21    amount of back taxes due and owing.
22        If a member of a reserve component of the armed forces of
23    the  United  States who has an ownership interest in property
24    taxed under this Act is called to active duty for  deployment
25    outside  the  continental United States and is on active duty
26    on the due date of any installment of taxes  due  under  this
27    Act,  he or she shall not be deemed delinquent in the payment
28    of the installment and no interest shall accrue or be charged
29    as a penalty on the installment  until  30  days  after  that
30    member returns from active duty.
31        Notwithstanding  any  other  provision  of  law, when any
32    unpaid taxes become delinquent under this Section through the
33    fault of the mortgage lender, (i) the interest assessed under
 
SB813 Engrossed             -4-      LRB093 10070 SJM 10321 b
 1    this Section for delinquent taxes shall  be  charged  against
 2    the  mortgage  lender  and  not  the  mortgagor  and (ii) the
 3    mortgage lender shall pay the taxes, redeem the property  and
 4    take all necessary steps to remove any liens accruing against
 5    the  property  because  of the delinquency. In the event that
 6    more than one entity meets the definition of mortgage  lender
 7    with  respect to any mortgage, the interest shall be assessed
 8    against the mortgage lender  responsible  for  servicing  the
 9    mortgage.   Unpaid  taxes  shall be deemed delinquent through
10    the fault of the mortgage lender only if:  (a)  the  mortgage
11    lender  has received all payments due the mortgage lender for
12    the property being taxed  under  the  written  terms  of  the
13    mortgage  or promissory note secured by the mortgage, (b) the
14    mortgage lender holds funds in escrow to pay the  taxes,  and
15    (c) the funds are sufficient to pay the taxes after deducting
16    all  amounts  reasonably  anticipated  to  become due for all
17    hazard insurance premiums and mortgage insurance premiums and
18    any other assessments to be paid from the  escrow  under  the
19    terms  of  the  mortgage.  For  purposes  of this Section, an
20    amount is reasonably anticipated  to  become  due  if  it  is
21    payable  within  12  months  from the time of determining the
22    sufficiency of funds held in escrow.  Unpaid taxes shall  not
23    be deemed delinquent through the fault of the mortgage lender
24    if  the  mortgage  lender  was  directed  in  writing  by the
25    mortgagor not to pay the property taxes, or if the failure to
26    pay the taxes when due resulted from inadequate or inaccurate
27    parcel information provided by  the  mortgagor,  a  title  or
28    abstract  company,  or  by  the  agency or unit of government
29    assessing the tax.
30    (Source: P.A. 90-336,  eff.  1-1-98;  90-575,  eff.  3-20-98;
31    91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

32        Section  99.  Effective date.  This Act takes effect upon
33    becoming law.