Full Text of SB0041 98th General Assembly
SB0041enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 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 | | Section 20-15 and by adding Section 9-275 as follows: | 6 | | (35 ILCS 200/9-275 new) | 7 | | Sec. 9-275. Erroneous homestead exemptions. | 8 | | (a) For purposes of this Section: | 9 | | "Erroneous homestead exemption" means a homestead | 10 | | exemption that was granted for real property in a taxable year | 11 | | if the property was not eligible for that exemption in that | 12 | | taxable year. If the taxpayer receives an erroneous homestead | 13 | | exemption under a single Section of this Code for the same | 14 | | property in multiple years, that exemption is considered a | 15 | | single erroneous homestead exemption for purposes of this | 16 | | Section. However, if the taxpayer receives erroneous homestead | 17 | | exemptions under multiple Sections of this Code for the same | 18 | | property, or if the taxpayer receives erroneous homestead | 19 | | exemptions under the same Section of this Code for multiple | 20 | | properties, then each of those exemptions is considered a | 21 | | separate erroneous homestead exemption for purposes of this | 22 | | Section. | 23 | | "Homestead exemption" means an exemption under Section |
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| 1 | | 15-165 (disabled veterans), 15-167 (returning veterans), | 2 | | 15-168 (disabled persons), 15-169 (disabled veterans standard | 3 | | homestead), 15-170 (senior citizens), 15-172 (senior citizens | 4 | | assessment freeze), 15-175 (general homestead), 15-176 | 5 | | (alternative general homestead), or 15-177 (long-time | 6 | | occupant). | 7 | | (b) Notwithstanding any other provision of law, in counties | 8 | | with 3,000,000 or more inhabitants, the chief county assessment | 9 | | officer shall include the following information with each | 10 | | assessment notice sent in a general assessment year: (1) a list | 11 | | of each homestead exemption available under Article 15 of this | 12 | | Code and a description of the eligibility criteria for that | 13 | | exemption; (2) a list of each homestead exemption applied to | 14 | | the property in the current assessment year; (3) information | 15 | | regarding penalties and interest that may be incurred under | 16 | | this Section if the property owner received an erroneous | 17 | | homestead exemption in a previous taxable year; and (4) notice | 18 | | of the 60-day grace period available under this subsection. If, | 19 | | within 60 days after receiving his or her assessment notice, | 20 | | the property owner notifies the chief county assessment officer | 21 | | that he or she received an erroneous homestead exemption in a | 22 | | previous assessment year, and if the property owner pays the | 23 | | principal amount of back taxes due and owing with respect to | 24 | | that exemption, plus interest as provided in subsection (f), | 25 | | then the property owner shall not be liable for the penalties | 26 | | provided in subsection (f) with respect to that exemption. |
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| 1 | | (c) The chief county assessment officer in a county with | 2 | | 3,000,000 or more inhabitants may cause a lien to be recorded | 3 | | against property that (1) is located in the county and (2) | 4 | | received one or more erroneous homestead exemptions if, upon | 5 | | determination of the chief county assessment officer, the | 6 | | property owner received: (A) one or 2 erroneous homestead | 7 | | exemptions for real property, including at least one erroneous | 8 | | homestead exemption granted for the property against which the | 9 | | lien is sought, during any of the 3 assessment years | 10 | | immediately prior to the assessment year in which the notice of | 11 | | intent to record at tax lien is served; or (2) 3 or more | 12 | | erroneous homestead exemptions for real property, including at | 13 | | least one erroneous homestead exemption granted for the | 14 | | property against which the lien is sought, during any of the 6 | 15 | | assessment years immediately prior to the assessment year in | 16 | | which the notice of intent to record at tax lien is served. | 17 | | Prior to recording the lien against the property, the chief | 18 | | county assessment officer shall cause to be served, by both | 19 | | regular mail and certified mail, return receipt requested, on | 20 | | the person to whom the most recent tax bill was mailed and the | 21 | | owner of record, a notice of intent to record a tax lien | 22 | | against the property. | 23 | | (d) The notice of intent to record a tax lien described in | 24 | | subsection (c) shall: (1) identify, by property index number, | 25 | | the property against which the lien is being sought; (2) | 26 | | identify each specific homestead exemption that was |
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| 1 | | erroneously granted and the year or years in which each | 2 | | exemption was granted; (3) set forth the arrearage of taxes | 3 | | that would have been due if not for the erroneous homestead | 4 | | exemptions; (4) inform the property owner that he or she may | 5 | | request a hearing within 30 days after service and may appeal | 6 | | the hearing officer's ruling to the circuit court; and (5) | 7 | | inform the property owner that he or she may pay the amount | 8 | | due, plus interest and penalties, within 30 days after service. | 9 | | (e) The notice must also include a form that the property | 10 | | owner may return to the chief county assessment officer to | 11 | | request a hearing. The property owner may request a hearing by | 12 | | returning the form within 30 days after service. The hearing | 13 | | shall be held within 90 days after the property owner is | 14 | | served. The chief county assessment officer shall promulgate | 15 | | rules of service and procedure for the hearing. The chief | 16 | | county assessment officer must generally follow rules of | 17 | | evidence and practices that prevail in the county circuit | 18 | | courts, but, because of the nature of these proceedings, the | 19 | | chief county assessment officer is not bound by those rules in | 20 | | all particulars. The chief county assessment officer shall | 21 | | appoint a hearing officer to oversee the hearing. The property | 22 | | owner shall be allowed to present evidence to the hearing | 23 | | officer at the hearing. After taking into consideration all the | 24 | | relevant testimony and evidence, the hearing officer shall make | 25 | | an administrative decision on whether the property owner was | 26 | | erroneously granted a homestead exemption for the assessment |
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| 1 | | year in question. The property owner may appeal the hearing | 2 | | officer's ruling to the circuit court of the county where the | 3 | | property is located as a final administrative decision under | 4 | | the Administrative Review Law. | 5 | | (f) A lien against the property imposed under this Section | 6 | | shall be filed with the county recorder of deeds, but may not | 7 | | be filed sooner than 60 days after the notice was delivered to | 8 | | the property owner if the property owner does not request a | 9 | | hearing, or until the conclusion of the hearing and all appeals | 10 | | if the property owner does request a hearing. If a lien is | 11 | | filed pursuant to this Section and the property owner received | 12 | | one or 2 erroneous homestead exemptions during any of the 3 | 13 | | assessment years immediately prior to the assessment year in | 14 | | which the notice of intent to record at tax lien is served, | 15 | | then the arrearages of taxes that might have been assessed for | 16 | | that property, plus 10% interest per annum, shall be charged | 17 | | against the property by the county treasurer. However, if a | 18 | | lien is filed pursuant to this Section and the property owner | 19 | | received 3 or more erroneous homestead exemptions during any of | 20 | | the 6 assessment years immediately prior to the assessment year | 21 | | in which the notice of intent to record at tax lien is served, | 22 | | the arrearages of taxes that might have been assessed for that | 23 | | property, plus a penalty of 50% of the total amount of unpaid | 24 | | taxes for each year for that property and 10% interest per | 25 | | annum, shall be charged against the property by the county | 26 | | treasurer. |
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| 1 | | (g) If a person received an erroneous homestead exemption | 2 | | under Section 15-170 and: (1) the person was the spouse, child, | 3 | | grandchild, brother, sister, niece, or nephew of the previous | 4 | | owner; and (2) the person received the property by bequest or | 5 | | inheritance; then the person is not liable for the penalties | 6 | | imposed under this subsection for any year or years during | 7 | | which the county did not require an annual application for the | 8 | | exemption. However, that person is responsible for any interest | 9 | | owed under subsection (f). | 10 | | (h) If the erroneous homestead exemption was granted as a | 11 | | result of a clerical error or omission on the part of the chief | 12 | | county assessment officer, and if the owner has paid its tax | 13 | | bills as received for the year in which the error occurred, | 14 | | then the interest and penalties authorized by this Section with | 15 | | respect to that homestead exemption shall not be chargeable to | 16 | | the owner. However, nothing in this Section shall prevent the | 17 | | collection of the principal amount of back taxes due and owing. | 18 | | (i) A lien under this Section is not valid as to (1) any | 19 | | bona fide purchaser for value without notice of the erroneous | 20 | | homestead exemption whose rights in and to the underlying | 21 | | parcel arose after the erroneous homestead exemption was | 22 | | granted but before the filing of the notice of lien; or (2) any | 23 | | mortgagee, judgment creditor, or other lienor whose rights in | 24 | | and to the underlying parcel arose before the filing of the | 25 | | notice of lien. A title insurance policy for the property that | 26 | | is issued by a title company licensed to do business in the |
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| 1 | | State showing that the property is free and clear of any liens | 2 | | imposed under this Section shall be prima facie evidence that | 3 | | the property owner is without notice of the erroneous homestead | 4 | | exemption. Nothing in this Section shall be deemed to impair | 5 | | the rights of subsequent creditors and subsequent purchasers | 6 | | under Section 30 of the Conveyances Act. | 7 | | (j) When a lien is filed against the property pursuant to | 8 | | this Section, the chief county assessment officer shall mail a | 9 | | copy of the lien to the person to whom the most recent tax bill | 10 | | was mailed and to the owner of record, and the outstanding | 11 | | liability created by such a lien is due and payable within 30 | 12 | | days after the mailing of the lien by the chief county | 13 | | assessment officer. Payment shall be made to the chief county | 14 | | assessment officer who shall, upon receipt of the full amount | 15 | | due, provide in reasonable form a release of the lien and shall | 16 | | transmit the funds received to the county treasurer for | 17 | | distribution as provided in subsection (i) of this Section. | 18 | | This liability is deemed delinquent and shall bear interest | 19 | | beginning on the day after the due date. | 20 | | (k) The unpaid taxes shall be paid to the appropriate | 21 | | taxing districts. Interest shall be paid to the county where | 22 | | the property is located. The penalty shall be paid to the chief | 23 | | county assessment officer's office for the administration of | 24 | | the provisions of this amendatory Act of the 98th General | 25 | | Assembly. | 26 | | (l) The chief county assessment officer in a county with |
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| 1 | | 3,000,000 or more inhabitants shall establish an amnesty period | 2 | | for all taxpayers owing any tax due to an erroneous homestead | 3 | | exemption granted in a tax year prior to the 2013 tax year. The | 4 | | amnesty period shall begin on the effective date of this | 5 | | amendatory Act of the 98th General Assembly and shall run | 6 | | through December 31, 2013. If, during the amnesty period, the | 7 | | taxpayer pays the entire arrearage of taxes due for tax years | 8 | | prior to 2013, the county clerk shall abate and not seek to | 9 | | collect any interest or penalties that may be applicable and | 10 | | shall not seek civil or criminal prosecution for any taxpayer | 11 | | for tax years prior to 2013. Failure to pay all such taxes due | 12 | | during the amnesty period established under this Section shall | 13 | | invalidate the amnesty period for that taxpayer. | 14 | | The chief county assessment officer in a county with | 15 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 16 | | amnesty period with the tax bills for the second installment of | 17 | | taxes for the 2012 assessment year and (ii) as soon as possible | 18 | | after the effective date of this amendatory Act of the 98th | 19 | | General Assembly, publish notice of the amnesty period in a | 20 | | newspaper of general circulation in the county. Notices shall | 21 | | include information on the amnesty period, its purpose, and the | 22 | | method in which to make payment. | 23 | | Taxpayers who are a party to any criminal investigation or | 24 | | to any civil or criminal litigation that is pending in any | 25 | | circuit court or appellate court, or in the Supreme Court of | 26 | | this State, for nonpayment, delinquency, or fraud in relation |
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| 1 | | to any property tax imposed by any taxing district located in | 2 | | the State on the effective date of this amendatory Act of the | 3 | | 98th General Assembly may not take advantage of the amnesty | 4 | | period. | 5 | | A taxpayer who has claimed 3 or more homestead exemptions | 6 | | in error shall not be eligible for the amnesty period | 7 | | established under this subsection.
| 8 | | (35 ILCS 200/20-15)
| 9 | | Sec. 20-15. Information on bill or separate statement. | 10 | | There shall be
printed on each bill, or on a separate slip | 11 | | which shall be mailed with the
bill:
| 12 | | (a) a statement itemizing the rate at which taxes have | 13 | | been extended for
each of the taxing districts in the | 14 | | county in whose district the property is
located, and in | 15 | | those counties utilizing
electronic data processing | 16 | | equipment the dollar amount of tax due from the
person | 17 | | assessed allocable to each of those taxing districts, | 18 | | including a
separate statement of the dollar amount of tax | 19 | | due which is allocable to a tax
levied under the Illinois | 20 | | Local Library Act or to any other tax levied by a
| 21 | | municipality or township for public library purposes,
| 22 | | (b) a separate statement for each of the taxing | 23 | | districts of the dollar
amount of tax due which is | 24 | | allocable to a tax levied under the Illinois Pension
Code | 25 | | or to any other tax levied by a municipality or township |
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| 1 | | for public
pension or retirement purposes,
| 2 | | (c) the total tax rate,
| 3 | | (d) the total amount of tax due, and
| 4 | | (e) the amount by which the total tax and the tax | 5 | | allocable to each taxing
district differs from the | 6 | | taxpayer's last prior tax bill.
| 7 | | The county treasurer shall ensure that only those taxing | 8 | | districts in
which a parcel of property is located shall be | 9 | | listed on the bill for that
property.
| 10 | | In all counties the statement shall also provide:
| 11 | | (1) the property index number or other suitable | 12 | | description,
| 13 | | (2) the assessment of the property,
| 14 | | (3) the statutory amount of each homestead exemption | 15 | | applied to the property, | 16 | | (4) the assessed value of the property after | 17 | | application of all homestead exemptions,
| 18 | | (5) (3) the equalization factors imposed by the county | 19 | | and by the Department,
and
| 20 | | (6) (4) the equalized assessment resulting from the | 21 | | application of the
equalization factors to the basic | 22 | | assessment.
| 23 | | In all counties which do not classify property for purposes | 24 | | of taxation, for
property on which a single family residence is | 25 | | situated the statement shall
also include a statement to | 26 | | reflect the fair cash value determined for the
property. In all |
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| 1 | | counties which classify property for purposes of taxation in
| 2 | | accordance with Section 4 of Article IX of the Illinois | 3 | | Constitution, for
parcels of residential property in the lowest | 4 | | assessment classification the
statement shall also include a | 5 | | statement to reflect the fair cash value
determined for the | 6 | | property.
| 7 | | In all counties, the statement must include information | 8 | | that certain
taxpayers may be eligible for tax exemptions, | 9 | | abatements, and other assistance programs and that, for more | 10 | | information, taxpayers should consult with the office of their | 11 | | township or county assessor and with the Illinois Department of | 12 | | Revenue.
| 13 | | In all counties, the statement shall include information | 14 | | that certain
taxpayers may be eligible for the Senior Citizens | 15 | | and Disabled Persons Property
Tax Relief Act and that | 16 | | applications are
available from the Illinois Department on | 17 | | Aging.
| 18 | | In counties which use the estimated or accelerated billing | 19 | | methods, these
statements shall only be provided with the final | 20 | | installment of taxes due. The
provisions of this Section create | 21 | | a mandatory statutory duty. They are not
merely directory or | 22 | | discretionary. The failure or neglect of the collector to
mail | 23 | | the bill, or the failure of the taxpayer to receive the bill, | 24 | | shall not
affect the validity of any tax, or the liability for | 25 | | the payment of any tax.
| 26 | | (Source: P.A. 97-689, eff. 6-14-12.)
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| 1 | | Section 99. Effective date. This Act takes effect June 1, | 2 | | 2013. |
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