Rep. Ryan Spain

Filed: 4/27/2017

 

 


 

 


 
10000HB2428ham002LRB100 09290 AXK 25684 a

1
AMENDMENT TO HOUSE BILL 2428

2    AMENDMENT NO. ______. Amend House Bill 2428 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 9-275 as follows:
 
6    (35 ILCS 200/9-275)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) For purposes of this Section:
9    "Erroneous homestead exemption" means a homestead
10exemption that was granted for real property in a taxable year
11if the property was not eligible for that exemption in that
12taxable year. If the taxpayer receives an erroneous homestead
13exemption under a single Section of this Code for the same
14property in multiple years, that exemption is considered a
15single erroneous homestead exemption for purposes of this
16Section. However, if the taxpayer receives erroneous homestead

 

 

10000HB2428ham002- 2 -LRB100 09290 AXK 25684 a

1exemptions under multiple Sections of this Code for the same
2property, or if the taxpayer receives erroneous homestead
3exemptions under the same Section of this Code for multiple
4properties, then each of those exemptions is considered a
5separate erroneous homestead exemption for purposes of this
6Section.
7    "Homestead exemption" means an exemption under Section
815-165 (veterans with disabilities), 15-167 (returning
9veterans), 15-168 (persons with disabilities), 15-169
10(standard homestead for veterans with disabilities), 15-170
11(senior citizens), 15-172 (senior citizens assessment freeze),
1215-175 (general homestead), 15-176 (alternative general
13homestead), or 15-177 (long-time occupant).
14    "Erroneous exemption principal amount" means the total
15difference between the property taxes actually billed to a
16property index number and the amount of property taxes that
17would have been billed but for the erroneous exemption or
18exemptions.
19    "Qualified county" means a county with 3,000,000 or more
20inhabitants and each county with fewer than 3,000,000
21inhabitants for which an ordinance was passed in accordance
22with subsection (k-5) of this Section.
23    "Taxpayer" means the property owner or leasehold owner that
24erroneously received a homestead exemption upon property.
25    (b) Notwithstanding any other provision of law, in
26qualified counties with 3,000,000 or more inhabitants, the

 

 

10000HB2428ham002- 3 -LRB100 09290 AXK 25684 a

1chief county assessment officer shall include the following
2information with each assessment notice sent in a general
3assessment year: (1) a list of each homestead exemption
4available under Article 15 of this Code and a description of
5the eligibility criteria for that exemption; (2) a list of each
6homestead exemption applied to the property in the current
7assessment year; (3) information regarding penalties and
8interest that may be incurred under this Section if the
9taxpayer received an erroneous homestead exemption in a
10previous taxable year; and (4) notice of the 60-day grace
11period available under this subsection. If, within 60 days
12after receiving his or her assessment notice, the taxpayer
13notifies the chief county assessment officer that he or she
14received an erroneous homestead exemption in a previous taxable
15year, and if the taxpayer pays the erroneous exemption
16principal amount, plus interest as provided in subsection (f),
17then the taxpayer shall not be liable for the penalties
18provided in subsection (f) with respect to that exemption.
19    (c) In qualified counties with 3,000,000 or more
20inhabitants, when the chief county assessment officer
21determines that one or more erroneous homestead exemptions was
22applied to the property, the erroneous exemption principal
23amount, together with all applicable interest and penalties as
24provided in subsections (f) and (j), shall constitute a lien in
25the name of the people of the county People of Cook County on
26the property receiving the erroneous homestead exemption. Upon

 

 

10000HB2428ham002- 4 -LRB100 09290 AXK 25684 a

1becoming aware of the existence of one or more erroneous
2homestead exemptions, the chief county assessment officer
3shall cause to be served, by both regular mail and certified
4mail, a notice of discovery as set forth in subsection (c-5).
5The chief county assessment officer in a county with 3,000,000
6or more inhabitants may cause a lien to be recorded against
7property that (1) is located in the county and (2) received one
8or more erroneous homestead exemptions if, upon determination
9of the chief county assessment officer, the taxpayer received:
10(A) one or 2 erroneous homestead exemptions for real property,
11including at least one erroneous homestead exemption granted
12for the property against which the lien is sought, during any
13of the 3 collection years immediately prior to the current
14collection year in which the notice of discovery is served; or
15(B) 3 or more erroneous homestead exemptions for real property,
16including at least one erroneous homestead exemption granted
17for the property against which the lien is sought, during any
18of the 6 collection years immediately prior to the current
19collection year in which the notice of discovery is served.
20Prior to recording the lien against the property, the chief
21county assessment officer shall cause to be served, by both
22regular mail and certified mail, return receipt requested, on
23the person to whom the most recent tax bill was mailed and the
24owner of record, a notice of intent to record a lien against
25the property. The chief county assessment officer shall cause
26the notice of intent to record a lien to be served within 3

 

 

10000HB2428ham002- 5 -LRB100 09290 AXK 25684 a

1years from the date on which the notice of discovery was
2served.
3    (c-5) The notice of discovery described in subsection (c)
4shall: (1) identify, by property index number, the property for
5which the chief county assessment officer has knowledge
6indicating the existence of an erroneous homestead exemption;
7(2) set forth the taxpayer's liability for principal, interest,
8penalties, and administrative costs including, but not limited
9to, recording fees described in subsection (f); (3) inform the
10taxpayer that he or she will be served with a notice of intent
11to record a lien within 3 years from the date of service of the
12notice of discovery; (4) inform the taxpayer that he or she may
13pay the outstanding amount, plus interest, penalties, and
14administrative costs at any time prior to being served with the
15notice of intent to record a lien or within 30 days after the
16notice of intent to record a lien is served; and (5) inform the
17taxpayer that, if the taxpayer provided notice to the chief
18county assessment officer as provided in subsection (d-1) of
19Section 15-175 of this Code, upon submission by the taxpayer of
20evidence of timely notice and receipt thereof by the chief
21county assessment officer, the chief county assessment officer
22will withdraw the notice of discovery and reissue a notice of
23discovery in compliance with this Section in which the taxpayer
24is not liable for interest and penalties for the current tax
25year in which the notice was received.
26    For the purposes of this subsection (c-5):

 

 

10000HB2428ham002- 6 -LRB100 09290 AXK 25684 a

1    "Collection year" means the year in which the first and
2second installment of the current tax year is billed.
3    "Current tax year" means the year prior to the collection
4year.
5    (d) The notice of intent to record a lien described in
6subsection (c) shall: (1) identify, by property index number,
7the property against which the lien is being sought; (2)
8identify each specific homestead exemption that was
9erroneously granted and the year or years in which each
10exemption was granted; (3) set forth the erroneous exemption
11principal amount due and the interest amount and any penalty
12and administrative costs due; (4) inform the taxpayer that he
13or she may request a hearing within 30 days after service and
14may appeal the hearing officer's ruling to the circuit court;
15(5) inform the taxpayer that he or she may pay the erroneous
16exemption principal amount, plus interest and penalties,
17within 30 days after service; and (6) inform the taxpayer that,
18if the lien is recorded against the property, the amount of the
19lien will be adjusted to include the applicable recording fee
20and that fees for recording a release of the lien shall be
21incurred by the taxpayer. A lien shall not be filed pursuant to
22this Section if the taxpayer pays the erroneous exemption
23principal amount, plus penalties and interest, within 30 days
24of service of the notice of intent to record a lien.
25    (e) The notice of intent to record a lien shall also
26include a form that the taxpayer may return to the chief county

 

 

10000HB2428ham002- 7 -LRB100 09290 AXK 25684 a

1assessment officer to request a hearing. The taxpayer may
2request a hearing by returning the form within 30 days after
3service. The hearing shall be held within 90 days after the
4taxpayer is served. The chief county assessment officer shall
5promulgate rules of service and procedure for the hearing. The
6chief county assessment officer must generally follow rules of
7evidence and practices that prevail in the county circuit
8courts, but, because of the nature of these proceedings, the
9chief county assessment officer is not bound by those rules in
10all particulars. The chief county assessment officer shall
11appoint a hearing officer to oversee the hearing. The taxpayer
12shall be allowed to present evidence to the hearing officer at
13the hearing. After taking into consideration all the relevant
14testimony and evidence, the hearing officer shall make an
15administrative decision on whether the taxpayer was
16erroneously granted a homestead exemption for the taxable year
17in question. The taxpayer may appeal the hearing officer's
18ruling to the circuit court of the county where the property is
19located as a final administrative decision under the
20Administrative Review Law.
21    (f) A lien against the property imposed under this Section
22shall be filed with the county recorder of deeds, but may not
23be filed sooner than 60 days after the notice of intent to
24record a lien was delivered to the taxpayer if the taxpayer
25does not request a hearing, or until the conclusion of the
26hearing and all appeals if the taxpayer does request a hearing.

 

 

10000HB2428ham002- 8 -LRB100 09290 AXK 25684 a

1If a lien is filed pursuant to this Section and the taxpayer
2received one or 2 erroneous homestead exemptions during any of
3the 3 collection years immediately prior to the current
4collection year in which the notice of discovery is served,
5then the erroneous exemption principal amount, plus 10%
6interest per annum or portion thereof from the date the
7erroneous exemption principal amount would have become due if
8properly included in the tax bill, shall be charged against the
9property by the chief county assessment officer. However, if a
10lien is filed pursuant to this Section and the taxpayer
11received 3 or more erroneous homestead exemptions during any of
12the 6 collection years immediately prior to the current
13collection year in which the notice of discovery is served, the
14erroneous exemption principal amount, plus a penalty of 50% of
15the total amount of the erroneous exemption principal amount
16for that property and 10% interest per annum or portion thereof
17from the date the erroneous exemption principal amount would
18have become due if properly included in the tax bill, shall be
19charged against the property by the chief county assessment
20officer. If a lien is filed pursuant to this Section, the
21taxpayer shall not be liable for interest that accrues between
22the date the notice of discovery is served and the date the
23lien is filed. Before recording the lien with the county
24recorder of deeds, the chief county assessment officer shall
25adjust the amount of the lien to add administrative costs,
26including but not limited to the applicable recording fee, to

 

 

10000HB2428ham002- 9 -LRB100 09290 AXK 25684 a

1the total lien amount.
2    (g) If a person received an erroneous homestead exemption
3under Section 15-170 and: (1) the person was the spouse, child,
4grandchild, brother, sister, niece, or nephew of the previous
5taxpayer; and (2) the person received the property by bequest
6or inheritance; then the person is not liable for the penalties
7imposed under this Section for any year or years during which
8the chief county assessment officer did not require an annual
9application for the exemption. However, that person is
10responsible for any interest owed under subsection (f).
11    (h) If the erroneous homestead exemption was granted as a
12result of a clerical error or omission on the part of the chief
13county assessment officer, and if the taxpayer has paid the tax
14bills as received for the year in which the error occurred,
15then the interest and penalties authorized by this Section with
16respect to that homestead exemption shall not be chargeable to
17the taxpayer. However, nothing in this Section shall prevent
18the collection of the erroneous exemption principal amount due
19and owing.
20    (i) A lien under this Section is not valid as to (1) any
21bona fide purchaser for value without notice of the erroneous
22homestead exemption whose rights in and to the underlying
23parcel arose after the erroneous homestead exemption was
24granted but before the filing of the notice of lien; or (2) any
25mortgagee, judgment creditor, or other lienor whose rights in
26and to the underlying parcel arose before the filing of the

 

 

10000HB2428ham002- 10 -LRB100 09290 AXK 25684 a

1notice of lien. A title insurance policy for the property that
2is issued by a title company licensed to do business in the
3State showing that the property is free and clear of any liens
4imposed under this Section shall be prima facie evidence that
5the taxpayer is without notice of the erroneous homestead
6exemption. Nothing in this Section shall be deemed to impair
7the rights of subsequent creditors and subsequent purchasers
8under Section 30 of the Conveyances Act.
9    (j) When a lien is filed against the property pursuant to
10this Section, the chief county assessment officer shall mail a
11copy of the lien to the person to whom the most recent tax bill
12was mailed and to the owner of record, and the outstanding
13liability created by such a lien is due and payable within 30
14days after the mailing of the lien by the chief county
15assessment officer. This liability is deemed delinquent and
16shall bear interest beginning on the day after the due date at
17a rate of 1.5% per month or portion thereof. Payment shall be
18made to the county treasurer. Upon receipt of the full amount
19due, as determined by the chief county assessment officer, the
20county treasurer shall distribute the amount paid as provided
21in subsection (k). Upon presentment by the taxpayer to the
22chief county assessment officer of proof of payment of the
23total liability, the chief county assessment officer shall
24provide in reasonable form a release of the lien. The release
25of the lien provided shall clearly inform the taxpayer that it
26is the responsibility of the taxpayer to record the lien

 

 

10000HB2428ham002- 11 -LRB100 09290 AXK 25684 a

1release form with the county recorder of deeds and to pay any
2applicable recording fees.
3    (k) The county treasurer shall pay collected erroneous
4exemption principal amounts, pro rata, to the taxing districts,
5or their legal successors, that levied upon the subject
6property in the taxable year or years for which the erroneous
7homestead exemptions were granted, except as set forth in this
8Section. The county treasurer shall deposit collected
9penalties and interest into a special fund established by the
10county treasurer to offset the costs of administration of the
11provisions of this Section by the chief county assessment
12officer's office, as appropriated by the county board. If the
13costs of administration of this Section exceed the amount of
14interest and penalties collected in the special fund, the chief
15county assessor shall be reimbursed by each taxing district or
16their legal successors for those costs. Such costs shall be
17paid out of the funds collected by the county treasurer on
18behalf of each taxing district pursuant to this Section.
19    (k-5) If the county board of a county with fewer than
203,000,000 inhabitants passes an ordinance providing that the
21provisions of this Section shall apply in that county, then
22this Section shall apply in that county beginning in the first
23tax year to occur after the effective date of the ordinance.
24    (l) The chief county assessment officer in a county with
253,000,000 or more inhabitants shall establish an amnesty period
26for all taxpayers owing any tax due to an erroneous homestead

 

 

10000HB2428ham002- 12 -LRB100 09290 AXK 25684 a

1exemption granted in a tax year prior to the 2013 tax year. The
2amnesty period shall begin on the effective date of this
3amendatory Act of the 98th General Assembly and shall run
4through December 31, 2013. If, during the amnesty period, the
5taxpayer pays the entire arrearage of taxes due for tax years
6prior to 2013, the county clerk shall abate and not seek to
7collect any interest or penalties that may be applicable and
8shall not seek civil or criminal prosecution for any taxpayer
9for tax years prior to 2013. Failure to pay all such taxes due
10during the amnesty period established under this Section shall
11invalidate the amnesty period for that taxpayer.
12    The chief county assessment officer in a county that passes
13an ordinance under subsection (k-5) shall establish an amnesty
14period for all taxpayers owing any tax due to an erroneous
15homestead exemption granted in a tax year prior to the first
16tax year in which this Section applies in that county. The
17amnesty period shall begin on January 1 of the first tax year
18for which this Section applies to the county and shall run
19through December 31 of that tax year. If, during the amnesty
20period, the taxpayer pays the entire arrearage of taxes, the
21county clerk shall abate and not seek to collect any interest
22or penalties that may be applicable and shall not seek civil or
23criminal prosecution for any taxpayer for those tax years.
24Failure to pay all such taxes due during the amnesty period
25established under this Section shall invalidate the amnesty
26period for that taxpayer.

 

 

10000HB2428ham002- 13 -LRB100 09290 AXK 25684 a

1    The chief county assessment officer in a county with
23,000,000 or more inhabitants shall (i) mail notice of the
3amnesty period with the tax bills for the second installment of
4taxes for the 2012 assessment year and (ii) as soon as possible
5after the effective date of this amendatory Act of the 98th
6General Assembly, publish notice of the amnesty period in a
7newspaper of general circulation in the county. Notices shall
8include information on the amnesty period, its purpose, and the
9method by which to make payment.
10    The chief county assessment officer in a county that passes
11an ordinance under subsection (k-5) shall (i) mail notice of
12the amnesty period with the tax bills for the next installment
13of taxes due after the ordinance is passed and (ii) as soon as
14possible after the effective date of the ordinance, publish
15notice of the amnesty period in a newspaper of general
16circulation in the county. Notices shall include information on
17the amnesty period, its purpose, and the method by which to
18make payment.
19    Taxpayers who are a party to any criminal investigation or
20to any civil or criminal litigation that is pending in any
21circuit court or appellate court, or in the Supreme Court of
22this State, for nonpayment, delinquency, or fraud in relation
23to any property tax imposed by any taxing district located in
24the State on the effective date of this amendatory Act of the
2598th General Assembly (if the property is located in a county
26with 3,000,000 or more inhabitants) or on the effective date of

 

 

10000HB2428ham002- 14 -LRB100 09290 AXK 25684 a

1the ordinance (if the property is subject to this Section by
2operation of subsection (k-5)) may not take advantage of the
3amnesty period.
4    A taxpayer who has claimed 3 or more homestead exemptions
5in error shall not be eligible for the amnesty period
6established under this subsection.
7(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
898-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
97-27-15; 99-851, eff. 8-19-16.)".