Illinois General Assembly - Full Text of HB0158
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Full Text of HB0158  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Jack D. Franks


35 ILCS 200/21-295
35 ILCS 200/21-300
35 ILCS 200/21-308 new

    Amends the Property Tax Code. Authorizes counties to establish and operate a homestead protection program under which the county treasurer may make payments from the indemnity fund to pay the delinquent taxes, along with all associated fees and interest, on the primary residence of eligible taxpayers. Provides that the county treasurer shall have a lien on the property in the amount of the assistance provided. Sets forth requirements for the program. Effective immediately.

LRB099 04174 HLH 24195 b






HB0158LRB099 04174 HLH 24195 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
5Sections 21-295 and 21-300 and by adding Section 21-308 as
7    (35 ILCS 200/21-295)
8    Sec. 21-295. Creation of indemnity fund.
9    (a) In counties of less than 3,000,000 inhabitants, each
10person purchasing any property at a sale under this Code shall
11pay to the County Collector, prior to the issuance of any
12certificate of purchase, a fee of $20 for each item purchased.
13A like sum shall be paid for each year that all or a portion of
14subsequent taxes are paid by the tax purchaser and posted to
15the tax judgment, sale, redemption and forfeiture record where
16the underlying certificate of purchase is recorded.
17    (a-5) In counties of 3,000,000 or more inhabitants, each
18person purchasing property at a sale under this Code shall pay
19to the County Collector a fee of $80 for each item purchased
20plus an additional sum equal to 5% of taxes, interest, and
21penalties paid by the purchaser, including the taxes, interest,
22and penalties paid under Section 21-240. In these counties, the
23certificate holder shall also pay to the County Collector a fee



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1of $80 for each year that all or a portion of subsequent taxes
2are paid by the tax purchaser and posted to the tax judgment,
3sale, redemption, and forfeiture record, plus an additional sum
4equal to 5% of all subsequent taxes, interest, and penalties.
5The additional 5% fees are not required after December 31,
62006. The changes to this subsection made by this amendatory
7Act of the 91st General Assembly are not a new enactment, but
8declaratory of existing law.
9    (b) The amount paid prior to issuance of the certificate of
10purchase pursuant to subsection (a) or (a-5) shall be included
11in the purchase price of the property in the certificate of
12purchase and all amounts paid under this Section shall be
13included in the amount required to redeem under Section 21-355.
14Except as otherwise provided in subsection (b) of Section
1521-300, all money received under subsection (a) or (a-5) shall
16be paid by the Collector to the County Treasurer of the County
17in which the land is situated, for the purpose of an indemnity
18fund. The County Treasurer, as trustee of that fund, shall
19invest all of that fund, principal and income, in his or her
20hands from time to time, if not immediately required for
21payments of indemnities under subsection (a) of Section 21-305
22or payments made pursuant to a homestead protection program
23established under Section 21-308, in investments permitted by
24the Illinois State Board of Investment under Article 22A of the
25Illinois Pension Code. The county collector shall report
26annually to the county clerk on the condition and income of the



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1fund. The indemnity fund shall be held to satisfy judgments
2obtained against the County Treasurer, as trustee of the fund
3and may be used to operate a homestead protection program under
4Section 21-308. No payment shall be made from the fund, except
5upon a judgment of the court which ordered the issuance of a
6tax deed or under a homestead protection program under Section
8(Source: P.A. 94-412, eff. 8-2-05.)
9    (35 ILCS 200/21-300)
10    Sec. 21-300. Amount to be retained in indemnity fund.
11    (a) The county board in each county shall determine the
12amount of the fund to be maintained in that county, which
13amount shall not be less than 0.03% of the total assessed
14valuation, as equalized by the Department, of property within
15the County, or $50,000, whichever is greater, and shall not be
16greater than $1,000,000 in counties with less than 3,000,000
17inhabitants that do not operate a homestead protection program
18under Section 21-308, and not greater than $2,000,000 in
19counties with 3,000,000 or more inhabitants that do not operate
20a homestead protection program under Section 21-308. Any moneys
21accumulated by the County Treasurer in excess of the amount so
22established, as trustee of the fund, shall be paid by him or
23her annually to the general fund of the County.
24    (b) In counties in which a Tort Liability Fund is
25established, all sums of money received under subsection (a) of



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1Section 21-295 may be deposited in the general fund of the
2county for general county governmental purposes, if the county
3board provides by ordinance that the indemnity required by this
4Section shall be provided by the Tort Liability Fund.
5(Source: P.A. 86-1028; 86-1431; 88-455.)
6    (35 ILCS 200/21-308 new)
7    Sec. 21-308. County homestead protection program.
8    (a) Each county may establish and operate a homestead
9protection program under which the county treasurer may make
10payments from the indemnity fund to pay the delinquent taxes,
11along with all associated fees and interest, on the primary
12residence of eligible taxpayers.
13    (b) To be eligible to receive assistance under a county
14homestead protection program, a taxpayer must satisfy all of
15the following criteria:
16        (1) the taxpayer's primary residence is located within
17    the county operating the homestead protection program;
18        (2) but for the failure to submit an application or
19    certification, for the taxpayer's primary residence and in
20    the taxable year for which the taxes are delinquent, the
21    taxpayer would have been eligible to receive:
22            (A) an exemption under Section 15-165, 15-168,
23        15-169, 15-170, or 15-172 of this Act;
24            (B) a deferral or exemption under the Longtime
25        Owner-Occupant Property Tax Relief Act;



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1            (C) property tax assistance under the Senior
2        Citizens and Disabled Persons Property Tax Relief Act;
3        or
4            (D) a deferral under the Senior Citizens Real
5        Estate Tax Deferral Act; and
6        (3) the taxpayer has not received assistance under the
7    homestead protection program on a previous occasion.
8    (c) If a taxpayer receives assistance under a county
9homestead protection program, then the county treasurer of the
10county in which the primary residence is located has a lien on
11the residence for the amount of the assistance. The treasurer
12must notify the taxpayer, in writing, of the existence of the
13lien. Such liens have the same force, effect, and priority as a
14judgment lien and continue from the date of the recording until
15the lien is released or otherwise discharged. The county
16treasurer may, at any time, release all or any portion of the
17property subject to a lien under this Section or subordinate
18the lien to other liens if he or she determines that the
19release or subordination of the lien will not endanger or
20jeopardize the collection of the amount of assistance.
21    (d) In no event may the operation of a homestead protection
22program reduce the amount of the indemnity fund that is
23available to make payments under Section 21-305 to less than
240.03% of the total assessed valuation, as equalized by the
25Department, of property within the county, or $50,000,
26whichever is greater.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.