101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5768

 

Introduced , by Rep. Allen Skillicorn

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-15
35 ILCS 200/21-40

    Amends the Property Tax Code. Provides that, if a disaster is declared by proclamation of the Governor for all counties in the State due to a public health emergency, then the due date for the first installment of property taxes due in that calendar year shall be delayed by 90 days, and no penalties or interest shall accrue during that extension. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 21-15 and 21-40 as follows:
 
6    (35 ILCS 200/21-15)
7    Sec. 21-15. General tax due dates; default by mortgage
8lender. Except as otherwise provided in this Section or Section
921-40, all property upon which the first installment of taxes
10remains unpaid on the later of (i) June 1 or (ii) the day after
11the date specified on the real estate tax bill as the first
12installment due date annually shall be deemed delinquent and
13shall bear interest after that date at the rate of 1 1/2% per
14month or portion thereof. Except as otherwise provided in this
15Section or Section 21-40, all property upon which the second
16installment of taxes remains due and unpaid on the later of (i)
17September 1 or (ii) the day after the date specified on the
18real estate tax bill as the second installment due date,
19annually, shall be deemed delinquent and shall bear interest
20after that date at the same interest rate. Notwithstanding any
21other provision of law, if a taxpayer owes an arrearage of
22taxes due to an administrative error, and if the county
23collector sends a separate bill for that arrearage as provided

 

 

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1in Section 14-41, then any part of the arrearage of taxes that
2remains unpaid on the day after the due date specified on that
3tax bill shall be deemed delinquent and shall bear interest
4after that date at the rate of 1 1/2% per month or portion
5thereof. All interest collected shall be paid into the general
6fund of the county. Payment received by mail and postmarked on
7or before the required due date is not delinquent.
8    If a disaster is declared by proclamation of the Governor
9for all counties in the State due to a public health emergency,
10then the first installment of taxes due in that calendar year
11and remaining unpaid shall not be declared delinquent and shall
12not accrue any interest as otherwise required under this
13Section for up to 90 days after the later of (i) June 1 or (ii)
14the day after the date specified on the real estate tax bill as
15the first installment due date annually.
16    Property not subject to the interest charge in Section
179-260 or Section 9-265 shall also not be subject to the
18interest charge imposed by this Section until such time as the
19owner of the property receives actual notice of and is billed
20for the principal amount of back taxes due and owing.
21    If an Illinois resident who is a member of the Illinois
22National Guard or a reserve component of the armed forces of
23the United States and who has an ownership interest in property
24taxed under this Act is called to active duty for deployment
25outside the continental United States and is on active duty on
26the due date of any installment of taxes due under this Act, he

 

 

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1or she shall not be deemed delinquent in the payment of the
2installment and no interest shall accrue or be charged as a
3penalty on the installment until 180 days after that member
4returns from active duty. To be deemed not delinquent in the
5payment of an installment of taxes and any interest on that
6installment, the reservist or guardsperson must make a
7reasonable effort to notify the county clerk and the county
8collector of his or her activation to active duty and must
9notify the county clerk and the county collector within 180
10days after his or her deactivation and provide verification of
11the date of his or her deactivation. An installment of property
12taxes on the property of any reservist or guardsperson who
13fails to provide timely notice and verification of deactivation
14to the county clerk is subject to interest and penalties as
15delinquent taxes under this Code from the date of deactivation.
16    Notwithstanding any other provision of law, when any unpaid
17taxes become delinquent under this Section through the fault of
18the mortgage lender, (i) the interest assessed under this
19Section for delinquent taxes shall be charged against the
20mortgage lender and not the mortgagor and (ii) the mortgage
21lender shall pay the taxes, redeem the property and take all
22necessary steps to remove any liens accruing against the
23property because of the delinquency. In the event that more
24than one entity meets the definition of mortgage lender with
25respect to any mortgage, the interest shall be assessed against
26the mortgage lender responsible for servicing the mortgage.

 

 

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1Unpaid taxes shall be deemed delinquent through the fault of
2the mortgage lender only if: (a) the mortgage lender has
3received all payments due the mortgage lender for the property
4being taxed under the written terms of the mortgage or
5promissory note secured by the mortgage, (b) the mortgage
6lender holds funds in escrow to pay the taxes, and (c) the
7funds are sufficient to pay the taxes after deducting all
8amounts reasonably anticipated to become due for all hazard
9insurance premiums and mortgage insurance premiums and any
10other assessments to be paid from the escrow under the terms of
11the mortgage. For purposes of this Section, an amount is
12reasonably anticipated to become due if it is payable within 12
13months from the time of determining the sufficiency of funds
14held in escrow. Unpaid taxes shall not be deemed delinquent
15through the fault of the mortgage lender if the mortgage lender
16was directed in writing by the mortgagor not to pay the
17property taxes, or if the failure to pay the taxes when due
18resulted from inadequate or inaccurate parcel information
19provided by the mortgagor, a title or abstract company, or by
20the agency or unit of government assessing the tax.
21(Source: P.A. 97-944, eff. 8-10-12; 98-286, eff. 1-1-14.)
 
22    (35 ILCS 200/21-40)
23    Sec. 21-40. Ordinance for delayed due date; accrual of
24interest.
25    (a) In any county with less than 3,000,000 inhabitants, the

 

 

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1county board may adopt an ordinance under which 50% of each
2installment of taxes shall not become delinquent until 60 days
3after each installment would otherwise become delinquent under
4Sections 21-15, 21-20, 21-25 or 21-30.
5    (a-5) If a disaster is declared by proclamation of the
6Governor for all counties in the State due to a public health
7emergency, then the due date of the first installment of tax
8due ordinarily on June 1 shall be delayed by 90 days.
9    (b) Beginning with installments of taxes and special
10assessments payable in 1994, in any county that has been
11designated, in whole or in part, as a disaster area by the
12President of the United States or the Governor of the State of
13Illinois due to a disaster that occurred during the calendar
14year in which the taxes are payable or in the preceding
15calendar year, the county board may adopt an ordinance or
16resolution under which interest allowed to be assessed on
17special assessments or allowed to be assessed under Sections
1821-15, 21-20, and 21-25 on delinquent installments of taxes for
19real property within one or more townships (or congressional
20townships if the assessor's books are organized by
21congressional townships) designated by the county board, that
22have been affected by the disaster does not accrue until the
23court enters the order for sale of the property. The ordinance
24or resolution shall provide that a person may pay a delinquent
25installment of taxes or special assessment without interest
26being assessed until the last working day before the court

 

 

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1enters the order for sale of the property. If adopted, the
2ordinance or resolution must establish a procedure for affected
3property owners to make application to a designated county
4official who shall determine, according to the guidelines in
5the ordinance or resolution, whether the property is
6substantially damaged or adversely affected and shall approve
7damaged or adversely affected property for the delay in accrual
8of interest specified in the ordinance or resolution. The
9designated county official shall notify the county collector of
10the parcel number and the name of the owner of property
11approved for relief.
12    (c) (1) The governing authority of any county that has been
13designated, in whole or in part, as a disaster area by the
14President of the United States or the Governor of the State of
15Illinois may adopt an ordinance or resolution modifying the
16provisions of this Act relating to any specified installment or
17installments of real property tax or special assessment on real
18property that is situated within the designated disaster area
19and that is determined, in the manner provided in the ordinance
20or resolution, to be substantially damaged or adversely
21affected as a result of that disaster.
22    The ordinance or resolution may:
23        (A) postpone the date on which any specified
24    installment or installments of tax due on that real
25    property in the current year becomes or became delinquent
26    under Section 21-15, 21-20, or 21-25;

 

 

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1        (B) exempt any specified installment or installments
2    of tax due on that real property from the interest penalty
3    provided under Section 21-15, 21-20, or 21-25 until the
4    postponed delinquency date established by the ordinance or
5    resolution;
6        (C) postpone the date on which a special assessment due
7    on that real property in the current year becomes or became
8    delinquent; and exempt a special assessment due on that
9    real property from any interest penalty until the postponed
10    delinquency date established by the ordinance or
11    resolution; and
12        (D) order the county collector not to give notice of
13    application for judgment for sale under Section 21-110 or
14    21-120 and not to apply for judgment and order of sale
15    under Section 21-150, until after the postponed
16    delinquency date for the final installment of tax or
17    special assessment due on that real property as established
18    in the ordinance or resolution.
19    (2) The ordinance or resolution shall establish a procedure
20for owners of real property situated in the designated disaster
21area to make application to a designated county official, who
22shall determine, within the guidelines established by the
23ordinance or resolution, if the property is substantially
24damaged or adversely affected and approve the property for
25relief as specified in the ordinance or resolution adopted
26under this subsection (c). The designated county official shall

 

 

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1notify the county collector of the parcel number and name of
2the property owner of property approved for relief.
3    (3) The ordinance or resolution may also direct the county
4collector to give a credit against a special assessment or the
5extension of the general corporate levy of the county for the
6year following the year in which the disaster is declared to
7the owner of property approved for relief in an amount equal to
8any interest penalty paid by that owner on any specified
9installment or installments of tax due on that property in the
10year the disaster is declared, if that interest penalty was
11paid before the ordinance or resolution was adopted or before
12the postponed delinquency dates.
13    (4) The ordinance or resolution may also direct the county
14collector to refund any installment or installments, and any
15special assessment or interest penalties thereon, of tax due,
16in the year the disaster is declared, on property approved for
17relief, that have been paid by the holder of a certificate of
18purchase for a prior year on that property.
19(Source: P.A. 88-455; 88-518; 88-660, eff. 9-16-94; 89-89, eff.
206-30-95.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.