Full Text of SB0041 98th General Assembly
SB0041sam003 98TH GENERAL ASSEMBLY | Sen. Antonio Muñoz Filed: 5/15/2013
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| 1 | | AMENDMENT TO SENATE BILL 41
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 41, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Property Tax Code is amended by changing | 6 | | Section 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 | 11 | | exemption that was granted for real property in a taxable year | 12 | | if the property was not eligible for that exemption in that | 13 | | taxable year. If the taxpayer receives an erroneous homestead | 14 | | exemption under a single Section of this Code for the same | 15 | | property in multiple years, that exemption is considered a | 16 | | single erroneous homestead exemption for purposes of this |
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| 1 | | Section. However, if the taxpayer receives erroneous homestead | 2 | | exemptions under multiple Sections of this Code for the same | 3 | | property, or if the taxpayer receives erroneous homestead | 4 | | exemptions under the same Section of this Code for multiple | 5 | | properties, then each of those exemptions is considered | 6 | | separate erroneous homestead exemption for purposes of this | 7 | | Section. | 8 | | "Homestead exemption" means an exemption under Section | 9 | | 15-165 (disabled veterans), 15-167 (returning veterans), | 10 | | 15-168 (disabled persons), 15-169 (disabled veterans standard | 11 | | homestead), 15-170 (senior citizens), 15-172 (senior citizens | 12 | | assessment freeze), 15-175 (general homestead), 15-176 | 13 | | (alternative general homestead), or 15-177 (long-time | 14 | | occupant). | 15 | | (b) Notwithstanding any other provision of law, in counties | 16 | | with 3,000,000 or more inhabitants, the chief county assessment | 17 | | officer shall include the following information with each | 18 | | assessment notice sent in a general assessment year: (1) a list | 19 | | of each homestead exemption available under Article 15 of this | 20 | | Code and a description of the eligibility criteria for that | 21 | | exemption; (2) a list of each homestead exemption applied to | 22 | | the property in the current assessment year; (3) information | 23 | | regarding penalties and interest that may be incurred under | 24 | | this Section if the property owner received an erroneous | 25 | | homestead exemption in a previous taxable year; and (4) notice | 26 | | of the 60-day grace period available under this subsection. If, |
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| 1 | | within 60 days after receiving his or her assessment notice, | 2 | | the property owner notifies the chief county assessment officer | 3 | | that he or she received an erroneous homestead exemption in a | 4 | | previous assessment year, and if the property owner pays the | 5 | | principal amount of back taxes due and owing with respect to | 6 | | that exemption, plus interest as provided in subsection (f), | 7 | | then the property owner shall not be liable for the penalties | 8 | | provided in subsection (f) with respect to that exemption. | 9 | | (c) The chief county assessment officer in a county with | 10 | | 3,000,000 or more inhabitants may cause a lien to be recorded | 11 | | against property that (1) is located in the county and (2) | 12 | | received one or more erroneous homestead exemptions if, upon | 13 | | determination of the chief county assessment officer, the | 14 | | property owner received: (A) one or 2 erroneous homestead | 15 | | exemptions for real property, including at least one erroneous | 16 | | homestead exemption granted for the property against which the | 17 | | lien is sought, during any of the 3 assessment years | 18 | | immediately prior to the assessment year in which the notice of | 19 | | intent to record at tax lien is served; or (2) 3 or more | 20 | | erroneous homestead exemptions for real property, including at | 21 | | least one erroneous homestead exemption granted for the | 22 | | property against which the lien is sought, during any of the 6 | 23 | | assessment years immediately prior to the assessment year in | 24 | | which the notice of intent to record at tax lien is served. | 25 | | Prior to recording the lien against the property, the chief | 26 | | county assessment officer shall cause to be served, by both |
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| 1 | | regular mail and certified mail, return receipt requested, on | 2 | | the person to whom the most recent tax bill was mailed and the | 3 | | owner of record, a notice of intent to record a tax lien | 4 | | against the property. | 5 | | (d) The notice of intent to record a tax lien described in | 6 | | subsection (c) shall: (1) identify, by property index number, | 7 | | the property against which the lien is being sought; (2) | 8 | | identify each specific homestead exemption that was | 9 | | erroneously granted and the year or years in which each | 10 | | exemption was granted; (3) set forth the arrearage of taxes | 11 | | that would have been due if not for the erroneous homestead | 12 | | exemptions; (4) inform the property owner that he or she may | 13 | | request a hearing within 30 days after service and may appeal | 14 | | the hearing officer's ruling to the circuit court; and (5) | 15 | | inform the property owner that he or she may pay the amount | 16 | | due, plus interest and penalties, within 30 days after service. | 17 | | (e) The notice must also include a form that the property | 18 | | owner may return to the chief county assessment officer to | 19 | | request a hearing. The property owner may request a hearing by | 20 | | returning the form within 30 days after service. The hearing | 21 | | shall be held within 90 days after the property owner is | 22 | | served. The chief county assessment officer shall promulgate | 23 | | rules of service and procedure for the hearing. The chief | 24 | | county assessment officer must generally follow rules of | 25 | | evidence and practices that prevail in the county circuit | 26 | | courts, but, because of the nature of these proceedings, the |
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| 1 | | chief county assessment officer is not bound by those rules in | 2 | | all particulars. The chief county assessment officer shall | 3 | | appoint a hearing officer to oversee the hearing. The property | 4 | | owner shall be allowed to present evidence to the hearing | 5 | | officer at the hearing. After taking into consideration all the | 6 | | relevant testimony and evidence, the hearing officer shall make | 7 | | an administrative decision on whether the property owner was | 8 | | erroneously granted a homestead exemption for the assessment | 9 | | year in question. The property owner may appeal the hearing | 10 | | officer's ruling to the circuit court of the county where the | 11 | | property is located as a final administrative decision under | 12 | | the Administrative Review Law. | 13 | | (f) A lien against the property imposed under this Section | 14 | | shall be filed with the county recorder of deeds, but may not | 15 | | be filed sooner than 60 days after the notice was delivered to | 16 | | the property owner if the property owner does not request a | 17 | | hearing, or until the conclusion of the hearing and all appeals | 18 | | if the property owner does request a hearing. If a lien is | 19 | | filed pursuant to this Section and the property owner received | 20 | | one or 2 erroneous homestead exemptions during any of the 3 | 21 | | assessment years immediately prior to the assessment year in | 22 | | which the notice of intent to record at tax lien is served, | 23 | | then the arrearages of taxes that might have been assessed for | 24 | | that property, plus 10% interest per annum, shall be charged | 25 | | against the property by the county treasurer. However, if a | 26 | | lien is filed pursuant to this Section and the property owner |
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| 1 | | received 3 or more erroneous homestead exemptions during any of | 2 | | the 6 assessment years immediately prior to the assessment year | 3 | | in which the notice of intent to record at tax lien is served, | 4 | | the arrearages of taxes that might have been assessed for that | 5 | | property, plus a penalty of 50% of the total amount of unpaid | 6 | | taxes for each year for that property and 10% interest per | 7 | | annum, shall be charged against the property by the county | 8 | | treasurer. | 9 | | (g) If a person received an erroneous homestead exemption | 10 | | under Section 15-170 and: (1) the person was the spouse, child, | 11 | | grandchild, brother, sister, niece, or nephew of the previous | 12 | | owner; and (2) the person received the property by bequest or | 13 | | inheritance; then the person is not liable for the penalties | 14 | | imposed under this subsection for any year or years during | 15 | | which the county did not require an annual application for the | 16 | | exemption. However, that person is responsible for any interest | 17 | | owed under subsection (f). | 18 | | (h) If the erroneous homestead exemption was granted as a | 19 | | result of a clerical error or omission on the part of the chief | 20 | | county assessment officer, and if the owner has paid its tax | 21 | | bills as received for the year in which the error occurred, | 22 | | then the interest and penalties authorized by this Section with | 23 | | respect to that homestead exemption shall not be chargeable to | 24 | | the owner. However, nothing in this Section shall prevent the | 25 | | collection 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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| 1 | | bona fide purchaser for value without notice of the erroneous | 2 | | homestead exemption whose rights in and to the underlying | 3 | | parcel arose after the erroneous homestead exemption was | 4 | | granted but before the filing of the notice of lien; or (2) any | 5 | | mortgagee, judgment creditor, or other lienor whose rights in | 6 | | and to the underlying parcel arose before the filing of the | 7 | | notice of lien. A title insurance policy for the property that | 8 | | is issued by a title company licensed to do business in the | 9 | | State showing that the property is free and clear of any liens | 10 | | imposed under this Section shall be prima facie evidence that | 11 | | the property owner is without notice of the erroneous homestead | 12 | | exemption. Nothing in this Section shall be deemed to impair | 13 | | the rights of subsequent creditors and subsequent purchasers | 14 | | under Section 30 of the Conveyances Act. | 15 | | (j) When a lien is filed against the property pursuant to | 16 | | this Section, the chief county assessment officer shall mail a | 17 | | copy of the lien to the person to whom the most recent tax bill | 18 | | was mailed and to the owner of record, and the outstanding | 19 | | liability created by such a lien is due and payable within 30 | 20 | | days after the mailing of the lien by the chief county | 21 | | assessment officer. Payment shall be made to the chief county | 22 | | assessment officer who shall, upon receipt of the full amount | 23 | | due, provide in reasonable form a release of the lien and shall | 24 | | transmit the funds received to the county treasurer for | 25 | | distribution as provided in subsection (i) of this Section. | 26 | | This liability is deemed delinquent and shall bear interest |
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| 1 | | beginning on the day after the due date. | 2 | | (k) The unpaid taxes shall be paid to the appropriate | 3 | | taxing districts. Interest shall be paid to the county where | 4 | | the property is located. The penalty shall be paid to the chief | 5 | | county assessment officer's office for the administration of | 6 | | the provisions of this amendatory Act of the 98th General | 7 | | Assembly. | 8 | | (l) The chief county assessment officer in a county with | 9 | | 3,000,000 or more inhabitants shall establish an amnesty period | 10 | | for all taxpayers owing any tax due to an erroneous homestead | 11 | | exemption granted in a tax year prior to the 2013 tax year. The | 12 | | amnesty period shall begin on the effective date of this | 13 | | amendatory Act of the 98th General Assembly and shall run | 14 | | through December 31, 2013. If, during the amnesty period, the | 15 | | taxpayer pays the entire arrearage of taxes due for tax years | 16 | | prior to 2013, the county clerk shall abate and not seek to | 17 | | collect any interest or penalties that may be applicable and | 18 | | shall not seek civil or criminal prosecution for any taxpayer | 19 | | for tax years prior to 2013. Failure to pay all such taxes due | 20 | | during the amnesty period established under this Section shall | 21 | | invalidate the amnesty period for that taxpayer. | 22 | | The chief county assessment officer in a county with | 23 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 24 | | amnesty period with the tax bills for the second installment of | 25 | | taxes for the 2012 assessment year and (ii) as soon as possible | 26 | | after the effective date of this amendatory Act of the 98th |
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| 1 | | General Assembly, publish notice of the amnesty period in a | 2 | | newspaper of general circulation in the county. Notices shall | 3 | | include information on the amnesty period, its purpose, and the | 4 | | method in which to make payment. | 5 | | Taxpayers who are a party to any criminal investigation or | 6 | | to any civil or criminal litigation that is pending in any | 7 | | circuit court or appellate court, or in the Supreme Court of | 8 | | this State, for nonpayment, delinquency, or fraud in relation | 9 | | to any property tax imposed by any taxing district located in | 10 | | the State on the effective date of this amendatory Act of the | 11 | | 98th General Assembly may not take advantage of the amnesty | 12 | | period. | 13 | | A taxpayer who has claimed 3 or more homestead exemptions | 14 | | in error shall not be eligible for the amnesty period | 15 | | established under this subsection.
| 16 | | (35 ILCS 200/20-15)
| 17 | | Sec. 20-15. Information on bill or separate statement. | 18 | | There shall be
printed on each bill, or on a separate slip | 19 | | which 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 | 16 | | districts in
which a parcel of property is located shall be | 17 | | listed 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 | 6 | | of taxation, for
property on which a single family residence is | 7 | | situated the statement shall
also include a statement to | 8 | | reflect the fair cash value determined for the
property. In all | 9 | | counties which classify property for purposes of taxation in
| 10 | | accordance with Section 4 of Article IX of the Illinois | 11 | | Constitution, for
parcels of residential property in the lowest | 12 | | assessment classification the
statement shall also include a | 13 | | statement to reflect the fair cash value
determined for the | 14 | | property.
| 15 | | In all counties, the statement must include information | 16 | | that certain
taxpayers may be eligible for tax exemptions, | 17 | | abatements, and other assistance programs and that, for more | 18 | | information, taxpayers should consult with the office of their | 19 | | township or county assessor and with the Illinois Department of | 20 | | Revenue.
| 21 | | In all counties, the statement shall include information | 22 | | that certain
taxpayers may be eligible for the Senior Citizens | 23 | | and Disabled Persons Property
Tax Relief Act and that | 24 | | applications are
available from the Illinois Department on | 25 | | Aging.
| 26 | | In counties which use the estimated or accelerated billing |
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| 1 | | methods, these
statements shall only be provided with the final | 2 | | installment of taxes due. The
provisions of this Section create | 3 | | a mandatory statutory duty. They are not
merely directory or | 4 | | discretionary. The failure or neglect of the collector to
mail | 5 | | the bill, or the failure of the taxpayer to receive the bill, | 6 | | shall not
affect the validity of any tax, or the liability for | 7 | | the 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, | 10 | | 2013.".
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