Illinois General Assembly - Full Text of HB5455
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Full Text of HB5455  101st General Assembly




State of Illinois
2019 and 2020


Introduced , by Rep. Joe Sosnowski


35 ILCS 200/9-265

    Amends the Property Tax Code. Provides that, in the case of an erroneous homestead exemption, the chief county assessment officer in a county with fewer than 3,000,000 inhabitants may consider the erroneously exempt portion of the property as omitted property for that taxable year and any of the 3 taxable years immediately prior to the taxable year in which the notice of that discovery is served. Effective immediately.

LRB101 16157 HLH 65525 b






HB5455LRB101 16157 HLH 65525 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
5Section 9-265 as follows:
6    (35 ILCS 200/9-265)
7    Sec. 9-265. Omitted property; interest; change in exempt
8use or ownership.
9    (a) If any property is omitted in the assessment of any
10year or years, not to exceed the current assessment year and 3
11prior years, so that the taxes, for which the property was
12liable, have not been paid, or if by reason of defective
13description or assessment, taxes on any property for any year
14or years have not been paid, or if any taxes are refunded under
15subsection (b) of Section 14-5 because the taxes were assessed
16in the wrong person's name, the property, when discovered,
17shall be listed and assessed by the board of review or, in
18counties with 3,000,000 or more inhabitants, by the county
19assessor either on his or her own initiative or when so
20directed by the board of appeals or board of review.
21    (b) The board of review in counties with less than
223,000,000 inhabitants or the county assessor in counties with
233,000,000 or more inhabitants may develop reasonable



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1procedures for contesting the listing of omitted property under
2this Division. With respect to counties with fewer than
33,000,000 inhabitants, the board of review may also develop
4procedures relating to the recovery of taxes that were unpaid
5because of an erroneously granted homestead exemption, as
6provided in subsection (g).
7    (c) For purposes of this Section, "defective description or
8assessment" includes a description or assessment which omits
9all the improvements thereon as a result of which part of the
10taxes on the total value of the property as improved remain
11unpaid. In the case of property subject to assessment by the
12Department, the property shall be listed and assessed by the
13Department. All such property shall be placed on the assessment
14and tax books.
15    (d) The arrearages of taxes which might have been assessed,
16with 10% interest thereon for each year or portion thereof from
172 years after the time the first correct tax bill ought to have
18been received, shall be charged against the property by the
19county clerk.
20    (e) When property or acreage omitted by either incorrect
21survey or other ministerial assessor error is discovered and
22the owner has paid its tax bills as received for the year or
23years of omission of the parcel, then the interest authorized
24by this Section shall not be chargeable to the owner. However,
25nothing in this Section shall prevent the collection of the
26principal amount of back taxes due and owing.



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1    (f) If any property listed as exempt by the chief county
2assessment officer has a change in use, a change in leasehold
3estate, or a change in titleholder of record by purchase,
4grant, taking or transfer, it shall be the obligation of the
5transferee to notify the chief county assessment officer in
6writing within 90 days of the change. If mailed, the notice
7shall be sent by certified mail, return receipt requested, and
8shall include the name and address of the taxpayer, the legal
9description of the property, and the property index number of
10the property when an index number exists. If notice is provided
11in person, it shall be provided on a form prescribed by the
12chief county assessment officer, and the chief county
13assessment officer shall provide a date stamped copy of the
14notice. Except as provided in item (6) of subsection (a) of
15Section 9-260, item (6) of Section 16-135, and item (6) of
16Section 16-140 of this Code, if the failure to give the
17notification results in the assessing official continuing to
18list the property as exempt in subsequent years, the property
19shall be considered omitted property for purposes of this Code.
20    (g) In counties with fewer than 3,000,000 inhabitants, if a
21chief county assessment officer discovers at any time before
22judgment that a property has been granted a homestead exemption
23under Article 15 of this Code to which it was not entitled for
24that taxable year or any of the 3 taxable years immediately
25prior to the year in which the discovery is made, the chief
26county assessment officer may consider the erroneously exempt



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1portion of the property as omitted property under this Section
2for that taxable year and any of the 3 taxable years
3immediately prior to the taxable year in which the notice of
4that discovery is served. The county, or its agent, may utilize
5any remedy allowed by law to collect any taxes that were unpaid
6because of the erroneous exemption, plus interest in the amount
7of 10% per annum on such amounts, as well as any additional
8penalties that may be provided in the rules and procedures
9established by the local board of review in each of those
10counties pursuant to subsection (b) only.
11(Source: P.A. 98-615, eff. 6-1-14.)
12    Section 99. Effective date. This Act takes effect upon
13becoming law.