Public Act 098-0093
 
SB0041 EnrolledLRB098 04285 HLH 35244 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Section 20-15 and by adding Section 9-275 as follows:
 
    (35 ILCS 200/9-275 new)
    Sec. 9-275. Erroneous homestead exemptions.
    (a) For purposes of this Section:
    "Erroneous homestead exemption" means a homestead
exemption that was granted for real property in a taxable year
if the property was not eligible for that exemption in that
taxable year. If the taxpayer receives an erroneous homestead
exemption under a single Section of this Code for the same
property in multiple years, that exemption is considered a
single erroneous homestead exemption for purposes of this
Section. However, if the taxpayer receives erroneous homestead
exemptions under multiple Sections of this Code for the same
property, or if the taxpayer receives erroneous homestead
exemptions under the same Section of this Code for multiple
properties, then each of those exemptions is considered a
separate erroneous homestead exemption for purposes of this
Section.
    "Homestead exemption" means an exemption under Section
15-165 (disabled veterans), 15-167 (returning veterans),
15-168 (disabled persons), 15-169 (disabled veterans standard
homestead), 15-170 (senior citizens), 15-172 (senior citizens
assessment freeze), 15-175 (general homestead), 15-176
(alternative general homestead), or 15-177 (long-time
occupant).
    (b) Notwithstanding any other provision of law, in counties
with 3,000,000 or more inhabitants, the chief county assessment
officer shall include the following information with each
assessment notice sent in a general assessment year: (1) a list
of each homestead exemption available under Article 15 of this
Code and a description of the eligibility criteria for that
exemption; (2) a list of each homestead exemption applied to
the property in the current assessment year; (3) information
regarding penalties and interest that may be incurred under
this Section if the property owner received an erroneous
homestead exemption in a previous taxable year; and (4) notice
of the 60-day grace period available under this subsection. If,
within 60 days after receiving his or her assessment notice,
the property owner notifies the chief county assessment officer
that he or she received an erroneous homestead exemption in a
previous assessment year, and if the property owner pays the
principal amount of back taxes due and owing with respect to
that exemption, plus interest as provided in subsection (f),
then the property owner shall not be liable for the penalties
provided in subsection (f) with respect to that exemption.
    (c) The chief county assessment officer in a county with
3,000,000 or more inhabitants may cause a lien to be recorded
against property that (1) is located in the county and (2)
received one or more erroneous homestead exemptions if, upon
determination of the chief county assessment officer, the
property owner received: (A) one or 2 erroneous homestead
exemptions for real property, including at least one erroneous
homestead exemption granted for the property against which the
lien is sought, during any of the 3 assessment years
immediately prior to the assessment year in which the notice of
intent to record at tax lien is served; or (2) 3 or more
erroneous homestead exemptions for real property, including at
least one erroneous homestead exemption granted for the
property against which the lien is sought, during any of the 6
assessment years immediately prior to the assessment year in
which the notice of intent to record at tax lien is served.
Prior to recording the lien against the property, the chief
county assessment officer shall cause to be served, by both
regular mail and certified mail, return receipt requested, on
the person to whom the most recent tax bill was mailed and the
owner of record, a notice of intent to record a tax lien
against the property.
    (d) The notice of intent to record a tax lien described in
subsection (c) shall: (1) identify, by property index number,
the property against which the lien is being sought; (2)
identify each specific homestead exemption that was
erroneously granted and the year or years in which each
exemption was granted; (3) set forth the arrearage of taxes
that would have been due if not for the erroneous homestead
exemptions; (4) inform the property owner that he or she may
request a hearing within 30 days after service and may appeal
the hearing officer's ruling to the circuit court; and (5)
inform the property owner that he or she may pay the amount
due, plus interest and penalties, within 30 days after service.
    (e) The notice must also include a form that the property
owner may return to the chief county assessment officer to
request a hearing. The property owner may request a hearing by
returning the form within 30 days after service. The hearing
shall be held within 90 days after the property owner is
served. The chief county assessment officer shall promulgate
rules of service and procedure for the hearing. The chief
county assessment officer must generally follow rules of
evidence and practices that prevail in the county circuit
courts, but, because of the nature of these proceedings, the
chief county assessment officer is not bound by those rules in
all particulars. The chief county assessment officer shall
appoint a hearing officer to oversee the hearing. The property
owner shall be allowed to present evidence to the hearing
officer at the hearing. After taking into consideration all the
relevant testimony and evidence, the hearing officer shall make
an administrative decision on whether the property owner was
erroneously granted a homestead exemption for the assessment
year in question. The property owner may appeal the hearing
officer's ruling to the circuit court of the county where the
property is located as a final administrative decision under
the Administrative Review Law.
    (f) A lien against the property imposed under this Section
shall be filed with the county recorder of deeds, but may not
be filed sooner than 60 days after the notice was delivered to
the property owner if the property owner does not request a
hearing, or until the conclusion of the hearing and all appeals
if the property owner does request a hearing. If a lien is
filed pursuant to this Section and the property owner received
one or 2 erroneous homestead exemptions during any of the 3
assessment years immediately prior to the assessment year in
which the notice of intent to record at tax lien is served,
then the arrearages of taxes that might have been assessed for
that property, plus 10% interest per annum, shall be charged
against the property by the county treasurer. However, if a
lien is filed pursuant to this Section and the property owner
received 3 or more erroneous homestead exemptions during any of
the 6 assessment years immediately prior to the assessment year
in which the notice of intent to record at tax lien is served,
the arrearages of taxes that might have been assessed for that
property, plus a penalty of 50% of the total amount of unpaid
taxes for each year for that property and 10% interest per
annum, shall be charged against the property by the county
treasurer.
    (g) If a person received an erroneous homestead exemption
under Section 15-170 and: (1) the person was the spouse, child,
grandchild, brother, sister, niece, or nephew of the previous
owner; and (2) the person received the property by bequest or
inheritance; then the person is not liable for the penalties
imposed under this subsection for any year or years during
which the county did not require an annual application for the
exemption. However, that person is responsible for any interest
owed under subsection (f).
    (h) If the erroneous homestead exemption was granted as a
result of a clerical error or omission on the part of the chief
county assessment officer, and if the owner has paid its tax
bills as received for the year in which the error occurred,
then the interest and penalties authorized by this Section with
respect to that homestead exemption shall not be chargeable to
the owner. However, nothing in this Section shall prevent the
collection of the principal amount of back taxes due and owing.
    (i) A lien under this Section is not valid as to (1) any
bona fide purchaser for value without notice of the erroneous
homestead exemption whose rights in and to the underlying
parcel arose after the erroneous homestead exemption was
granted but before the filing of the notice of lien; or (2) any
mortgagee, judgment creditor, or other lienor whose rights in
and to the underlying parcel arose before the filing of the
notice of lien. A title insurance policy for the property that
is issued by a title company licensed to do business in the
State showing that the property is free and clear of any liens
imposed under this Section shall be prima facie evidence that
the property owner is without notice of the erroneous homestead
exemption. Nothing in this Section shall be deemed to impair
the rights of subsequent creditors and subsequent purchasers
under Section 30 of the Conveyances Act.
    (j) When a lien is filed against the property pursuant to
this Section, the chief county assessment officer shall mail a
copy of the lien to the person to whom the most recent tax bill
was mailed and to the owner of record, and the outstanding
liability created by such a lien is due and payable within 30
days after the mailing of the lien by the chief county
assessment officer. Payment shall be made to the chief county
assessment officer who shall, upon receipt of the full amount
due, provide in reasonable form a release of the lien and shall
transmit the funds received to the county treasurer for
distribution as provided in subsection (i) of this Section.
This liability is deemed delinquent and shall bear interest
beginning on the day after the due date.
    (k) The unpaid taxes shall be paid to the appropriate
taxing districts. Interest shall be paid to the county where
the property is located. The penalty shall be paid to the chief
county assessment officer's office for the administration of
the provisions of this amendatory Act of the 98th General
Assembly.
    (l) The chief county assessment officer in a county with
3,000,000 or more inhabitants shall establish an amnesty period
for all taxpayers owing any tax due to an erroneous homestead
exemption granted in a tax year prior to the 2013 tax year. The
amnesty period shall begin on the effective date of this
amendatory Act of the 98th General Assembly and shall run
through December 31, 2013. If, during the amnesty period, the
taxpayer pays the entire arrearage of taxes due for tax years
prior to 2013, the county clerk shall abate and not seek to
collect any interest or penalties that may be applicable and
shall not seek civil or criminal prosecution for any taxpayer
for tax years prior to 2013. Failure to pay all such taxes due
during the amnesty period established under this Section shall
invalidate the amnesty period for that taxpayer.
    The chief county assessment officer in a county with
3,000,000 or more inhabitants shall (i) mail notice of the
amnesty period with the tax bills for the second installment of
taxes for the 2012 assessment year and (ii) as soon as possible
after the effective date of this amendatory Act of the 98th
General Assembly, publish notice of the amnesty period in a
newspaper of general circulation in the county. Notices shall
include information on the amnesty period, its purpose, and the
method in which to make payment.
    Taxpayers who are a party to any criminal investigation or
to any civil or criminal litigation that is pending in any
circuit court or appellate court, or in the Supreme Court of
this State, for nonpayment, delinquency, or fraud in relation
to any property tax imposed by any taxing district located in
the State on the effective date of this amendatory Act of the
98th General Assembly may not take advantage of the amnesty
period.
    A taxpayer who has claimed 3 or more homestead exemptions
in error shall not be eligible for the amnesty period
established under this subsection.
 
    (35 ILCS 200/20-15)
    Sec. 20-15. Information on bill or separate statement.
There shall be printed on each bill, or on a separate slip
which shall be mailed with the bill:
        (a) a statement itemizing the rate at which taxes have
    been extended for each of the taxing districts in the
    county in whose district the property is located, and in
    those counties utilizing electronic data processing
    equipment the dollar amount of tax due from the person
    assessed allocable to each of those taxing districts,
    including a separate statement of the dollar amount of tax
    due which is allocable to a tax levied under the Illinois
    Local Library Act or to any other tax levied by a
    municipality or township for public library purposes,
        (b) a separate statement for each of the taxing
    districts of the dollar amount of tax due which is
    allocable to a tax levied under the Illinois Pension Code
    or to any other tax levied by a municipality or township
    for public pension or retirement purposes,
        (c) the total tax rate,
        (d) the total amount of tax due, and
        (e) the amount by which the total tax and the tax
    allocable to each taxing district differs from the
    taxpayer's last prior tax bill.
    The county treasurer shall ensure that only those taxing
districts in which a parcel of property is located shall be
listed on the bill for that property.
    In all counties the statement shall also provide:
        (1) the property index number or other suitable
    description,
        (2) the assessment of the property,
        (3) the statutory amount of each homestead exemption
    applied to the property,
        (4) the assessed value of the property after
    application of all homestead exemptions,
        (5) (3) the equalization factors imposed by the county
    and by the Department, and
        (6) (4) the equalized assessment resulting from the
    application of the equalization factors to the basic
    assessment.
    In all counties which do not classify property for purposes
of taxation, for property on which a single family residence is
situated the statement shall also include a statement to
reflect the fair cash value determined for the property. In all
counties which classify property for purposes of taxation in
accordance with Section 4 of Article IX of the Illinois
Constitution, for parcels of residential property in the lowest
assessment classification the statement shall also include a
statement to reflect the fair cash value determined for the
property.
    In all counties, the statement must include information
that certain taxpayers may be eligible for tax exemptions,
abatements, and other assistance programs and that, for more
information, taxpayers should consult with the office of their
township or county assessor and with the Illinois Department of
Revenue.
    In all counties, the statement shall include information
that certain taxpayers may be eligible for the Senior Citizens
and Disabled Persons Property Tax Relief Act and that
applications are available from the Illinois Department on
Aging.
    In counties which use the estimated or accelerated billing
methods, these statements shall only be provided with the final
installment of taxes due. The provisions of this Section create
a mandatory statutory duty. They are not merely directory or
discretionary. The failure or neglect of the collector to mail
the bill, or the failure of the taxpayer to receive the bill,
shall not affect the validity of any tax, or the liability for
the payment of any tax.
(Source: P.A. 97-689, eff. 6-14-12.)
 
    Section 99. Effective date. This Act takes effect June 1,
2013.