103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3258

 

Introduced 2/17/2023, by Rep. Kam Buckner

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-260
35 ILCS 200/18-250
35 ILCS 200/21-15
35 ILCS 200/21-25
35 ILCS 200/21-45

    Amends the Property Tax Code. Makes changes concerning interest penalties for omitted property, forfeited taxes, and delinquent and unpaid taxes. Effective immediately.


LRB103 26864 HLH 53228 b

 

 

A BILL FOR

 

HB3258LRB103 26864 HLH 53228 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 9-260, 18-250, 21-15, 21-25, and 21-45 as follows:
 
6    (35 ILCS 200/9-260)
7    Sec. 9-260. Assessment of omitted property; counties of
83,000,000 or more.
9    (a) After signing the affidavit, the county assessor shall
10have power, when directed by the board of appeals (until the
11first Monday in December 1998 and the board of review
12beginning the first Monday in December 1998 and thereafter),
13or on his or her own initiative, subject to the limitations of
14Sections 9-265 and 9-270, to assess properties which may have
15been omitted from assessments for the current year and not
16more than 3 years prior to the current year for which the
17property was liable to be taxed, and for which the tax has not
18been paid, but only on notice and an opportunity to be heard in
19the manner and form required by law, and shall enter the
20assessments upon the assessment books. Any notice shall
21include (i) a request that a person receiving the notice who is
22not the current taxpayer contact the office of the county
23assessor and explain that the person is not the current

 

 

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1taxpayer, which contact may be made on the telephone, in
2writing, or in person upon receipt of the notice, and (ii) the
3name, address, and telephone number of the appropriate
4personnel in the office of the county assessor to whom the
5response should be made. Any time period for the review of an
6omitted assessment included in the notice shall be consistent
7with the time period established by the assessor in accordance
8with subsection (a) of Section 12-55. No charge for tax of
9previous years shall be made against any property if (1) the
10assessor failed to notify the board of review of the omitted
11assessment in accordance with subsection (a-1) of this
12Section; (2) the property was last assessed as unimproved, the
13owner of such property gave notice of subsequent improvements
14and requested a reassessment as required by Section 9-180, and
15reassessment of the property was not made within the 16 month
16period immediately following the receipt of that notice; (3)
17the owner of the property gave notice as required by Section
189-265; (4) the assessor received a building permit for the
19property evidencing that new construction had occurred or was
20occurring on the property but failed to list the improvement
21on the tax rolls; (5) the assessor received a plat map, plat of
22survey, ALTA survey, mortgage survey, or other similar
23document containing the omitted property but failed to list
24the improvement on the tax rolls; (6) the assessor received a
25real estate transfer declaration indicating a sale from an
26exempt property owner to a non-exempt property owner but

 

 

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1failed to list the property on the tax rolls; or (7) the
2property was the subject of an assessment appeal before the
3assessor or the board of review that had included the intended
4omitted property as part of the assessment appeal and provided
5evidence of its market value.
6    (a-1) After providing notice and an opportunity to be
7heard as required by subsection (a) of this Section, the
8assessor shall render a decision on the omitted assessment,
9whether or not the omitted assessment was contested, and shall
10mail a notice of the decision to the taxpayer of record or to
11the party that contested the omitted assessment. The notice of
12decision shall contain a statement that the decision may be
13appealed to the board of review. The decision and all evidence
14used in the decision shall be transmitted by the assessor to
15the board of review on or before the dates specified in
16accordance with Section 16-110.
17    (b) Any taxes based on the omitted assessment of a
18property pursuant to Sections 9-260 through 9-270 and Sections
1916-135 and 16-140 shall be prepared and mailed at the same time
20as the estimated first installment property tax bill for the
21preceding year (as described in Section 21-30) is prepared and
22mailed. The omitted assessment tax bill is not due until the
23date on which the second installment property tax bill for the
24preceding year becomes due. The omitted assessment tax bill
25shall be deemed delinquent and shall bear interest beginning
26on the day after the due date of the second installment (as

 

 

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1described in Section 21-25). Any taxes for omitted assessments
2deemed delinquent after the due date of the second installment
3tax bill shall bear interest, until paid or forfeited (as
4described in Section 21-25), at the rate of 1.5% per month or
5portion thereof for tax years prior to 2023 and at the rate of
60.75% per month or portion thereof for tax years 2023 and
7thereafter until paid or forfeited (as described in Section
821-25).
9    (c) The assessor shall have no power to change the
10assessment or alter the assessment books in any other manner
11or for any other purpose so as to change or affect the taxes in
12that year, except as ordered by the board of appeals (until the
13first Monday in December 1998 and the board of review
14beginning the first Monday in December 1998 and thereafter).
15The county assessor shall make all changes and corrections
16ordered by the board of appeals (until the first Monday in
17December 1998 and the board of review beginning the first
18Monday in December 1998 and thereafter). The county assessor
19may for the purpose of revision by the board of appeals (until
20the first Monday in December 1998 and the board of review
21beginning the first Monday in December 1998 and thereafter)
22certify the assessment books for any town or taxing district
23after or when such books are completed.
24(Source: P.A. 96-1553, eff. 3-10-11.)
 
25    (35 ILCS 200/18-250)

 

 

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1    Sec. 18-250. Additions to forfeited taxes and unpaid
2special assessments; fee for estimate.
3    (a) When any property has been forfeited for taxes or
4special assessments, the clerk shall compute the amount of
5back taxes and special assessments, interest, statutory costs,
6and printer's fees remaining due, with one year's interest on
7all taxes forfeited, and enter them upon the collector's books
8as separate items. Except as otherwise provided in Section
921-375, the aggregate so computed shall be collected in the
10same manner as the taxes on other property for that year. The
11county clerk shall examine the forfeitures, and strike all
12errors and make corrections as necessary. In counties with
13less than 3,000,000 inhabitants, interest Interest added to
14forfeitures under this Section shall be at the rate of 12% per
15year. In counties with 3,000,000 or more inhabitants, interest
16shall accrue at the rate of 12% per year for tax years prior to
172023 and at the rate of 0.75% per month or portion thereof for
18tax years 2023 and thereafter.
19    (b) In counties with 3,000,000 or more inhabitants, taxes
20first extended for prior years, or previously extended for
21prior years for which application for judgment and order of
22sale is not already pending, shall be added to the tax of the
23current year, with interest and costs as provided by law.
24Forfeitures shall not be so added, but they shall remain a lien
25on the property upon which they were charged until paid or sold
26as provided by law. There shall be added to such forfeitures

 

 

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1annually the same interest as would be added if forfeited
2annually, until paid or sold, and the addition of each year's
3interest shall be considered a separate forfeiture.
4Forfeitures may be redeemed in the manner provided in Section
521-370 or 21-375. Taxes and special assessments for which
6application for judgment and order of sale is pending, or
7entered but not enforced for any reason, shall not be added to
8the tax for the current year. However, if the taxes and special
9assessments remain unpaid, the property, shall be advertised
10and sold under judgments and orders of sale to be entered in
11pending applications, or already entered in prior
12applications, including judgments and orders of sale under
13which the purchaser fails to complete his or her purchase.
14    (c) In counties with 3,000,000 or more inhabitants, on or
15before January 1, 2001 and during each year thereafter, the
16county clerk shall compute the amount of taxes on each
17property that remain due or forfeited for any year prior to the
18current year and have not become subject to Sections 20-180
19through 20-190, and the clerk shall enter the same upon the
20collector's warrant books of the current and all following
21years as separate items in a suitable column. The county clerk
22shall examine the collector's warrant books and the Tax
23Judgment, Sale, Redemption and Forfeiture records for the
24appropriate years and may take any other actions as the clerk
25finds to be necessary or convenient in order to comply with
26this subsection. On and after January 1, 2001, any taxes for

 

 

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1any year remaining due or forfeited against real property in
2such county not entered on the current collector's warrant
3books shall be deemed uncollectible and void, but shall not be
4subject to the posting or other requirements of Sections
520-180 through 20-190.
6    (d) In counties with 100,000 or more inhabitants, the
7county clerk shall, when making the annual collector's books,
8in a suitable column, insert and designate previous
9forfeitures of general taxes by the word "forfeiture", to be
10stamped opposite each property forfeited at the last previous
11tax sale for general taxes and not redeemed or purchased
12previous to the completion of the collector's books. The
13collectors of general taxes shall stamp upon all bills
14rendered and receipts given the information on the collector's
15books regarding forfeiture of general taxes, and the stamped
16notation shall also refer the recipient to the county clerk
17for full information. The county clerk shall be allowed to
18collect from the person requesting an estimate of costs of
19redemption of a forfeited property, the fee provided by law.
20(Source: P.A. 91-668, eff. 12-22-99.)
 
21    (35 ILCS 200/21-15)
22    Sec. 21-15. General tax due dates; default by mortgage
23lender. Except as otherwise provided in this Section or
24Section 21-40, all property upon which the first installment
25of taxes remains unpaid on the later of (i) June 1 or (ii) the

 

 

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1day after the date specified on the real estate tax bill as the
2first installment due date annually shall be deemed delinquent
3and shall bear interest after that date at the rate of 1.5% 1
41/2% per month or portion thereof in counties with less than
53,000,000 inhabitants. In counties with 3,000,000 or more
6inhabitants, interest shall accrue on unpaid taxes at the rate
7of 1.5% per month or portion thereof for tax years prior to
82023 and at the rate of 0.75% per month or portion thereof for
9tax years 2023 and thereafter. Except as otherwise provided in
10this Section or Section 21-40, all property upon which the
11second installment of taxes remains due and unpaid on the
12later of (i) September 1 or (ii) the day after the date
13specified on the real estate tax bill as the second
14installment due date, annually, shall be deemed delinquent and
15shall bear interest after that date at the same interest rate.
16Notwithstanding any other provision of law, if a taxpayer owes
17an arrearage of taxes due to an administrative error, and if
18the county collector sends a separate bill for that arrearage
19as provided in Section 14-41, then any part of the arrearage of
20taxes that remains unpaid on the day after the due date
21specified on that tax bill shall be deemed delinquent and
22shall bear interest after that date at the rate of 1 1/2% per
23month or portion thereof. All interest collected shall be paid
24into the general fund of the county. Payment received by mail
25and postmarked on or before the required due date is not
26delinquent.

 

 

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1    Property not subject to the interest charge in Section
29-260 or Section 9-265 shall also not be subject to the
3interest charge imposed by this Section until such time as the
4owner of the property receives actual notice of and is billed
5for the principal amount of back taxes due and owing.
6    If an Illinois resident who is a member of the Illinois
7National Guard or a reserve component of the armed forces of
8the United States and who has an ownership interest in
9property taxed under this Act is called to active duty for
10deployment outside the continental United States and is on
11active duty on the due date of any installment of taxes due
12under this Act, he or she shall not be deemed delinquent in the
13payment of the installment and no interest shall accrue or be
14charged as a penalty on the installment until 180 days after
15that member returns from active duty. To be deemed not
16delinquent in the payment of an installment of taxes and any
17interest on that installment, the reservist or guardsperson
18must make a reasonable effort to notify the county clerk and
19the county collector of his or her activation to active duty
20and must notify the county clerk and the county collector
21within 180 days after his or her deactivation and provide
22verification of the date of his or her deactivation. An
23installment of property taxes on the property of any reservist
24or guardsperson who fails to provide timely notice and
25verification of deactivation to the county clerk is subject to
26interest and penalties as delinquent taxes under this Code

 

 

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1from the date of deactivation.
2    Notwithstanding any other provision of law, when any
3unpaid taxes become delinquent under this Section through the
4fault of the mortgage lender, (i) the interest assessed under
5this Section for delinquent taxes shall be charged against the
6mortgage lender and not the mortgagor and (ii) the mortgage
7lender shall pay the taxes, redeem the property and take all
8necessary steps to remove any liens accruing against the
9property because of the delinquency. In the event that more
10than one entity meets the definition of mortgage lender with
11respect to any mortgage, the interest shall be assessed
12against the mortgage lender responsible for servicing the
13mortgage. Unpaid taxes shall be deemed delinquent through the
14fault of the mortgage lender only if: (a) the mortgage lender
15has received all payments due the mortgage lender for the
16property being taxed under the written terms of the mortgage
17or promissory note secured by the mortgage, (b) the mortgage
18lender holds funds in escrow to pay the taxes, and (c) the
19funds are sufficient to pay the taxes after deducting all
20amounts reasonably anticipated to become due for all hazard
21insurance premiums and mortgage insurance premiums and any
22other assessments to be paid from the escrow under the terms of
23the mortgage. For purposes of this Section, an amount is
24reasonably anticipated to become due if it is payable within
2512 months from the time of determining the sufficiency of
26funds held in escrow. Unpaid taxes shall not be deemed

 

 

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1delinquent through the fault of the mortgage lender if the
2mortgage lender was directed in writing by the mortgagor not
3to pay the property taxes, or if the failure to pay the taxes
4when due resulted from inadequate or inaccurate parcel
5information provided by the mortgagor, a title or abstract
6company, or by the agency or unit of government assessing the
7tax.
8(Source: P.A. 97-944, eff. 8-10-12; 98-286, eff. 1-1-14.)
 
9    (35 ILCS 200/21-25)
10    Sec. 21-25. Due dates; accelerated billing in counties of
113,000,000 or more. Except as hereinafter provided and as
12provided in Section 21-40, in counties with 3,000,000 or more
13inhabitants in which the accelerated method of billing and
14paying taxes provided for in Section 21-30 is in effect, the
15estimated first installment of unpaid taxes shall be deemed
16delinquent and shall bear interest after March 1 and until
17paid or forfeited, at the rate of 1.5% 1 1/2% per month or
18portion thereof for tax years prior to 2023 and at the rate of
190.75% per month or portion thereof for tax years 2023 and
20thereafter until paid or forfeited. For tax year 2010, the
21estimated first installment of unpaid taxes shall be deemed
22delinquent and shall bear interest after April 1 at the rate of
231.5% per month or portion thereof until paid or forfeited. For
24tax year 2022, the estimated first installment of unpaid taxes
25shall be deemed delinquent and shall bear interest after April

 

 

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11, 2023 at the rate of 1.5% per month or portion thereof until
2paid or forfeited. For all tax years, the second installment
3of unpaid taxes shall be deemed delinquent and shall bear
4interest after August 1 annually at the same interest rate
5until paid or forfeited. Notwithstanding any other provision
6of law, if a taxpayer owes an arrearage of taxes due to an
7administrative error, and if the county collector sends a
8separate bill for that arrearage as provided in Section 14-41,
9then any part of the arrearage of taxes that remains unpaid on
10the day after the due date specified on that tax bill shall be
11deemed delinquent and shall bear interest after that date at
12the rate of 1.5% 1 1/2% per month or portion thereof for tax
13years prior to 2023 and at the rate of 0.75% per month or
14portion thereof for tax year 2023 and thereafter.
15    If the county board elects by ordinance adopted prior to
16July 1 of a levy year to provide for taxes to be paid in 4
17installments, each installment for that levy year and each
18subsequent year shall be deemed delinquent and shall begin to
19bear interest 30 days after the date specified by the
20ordinance for mailing bills and until paid of forfeited , at
21the rate of 1.5% 1 1/2% per month or portion thereof for tax
22years prior to 2023 and at the rate of 0.75% per month or
23portion thereof for tax years 2023 and thereafter , until paid
24or forfeited.
25    Payment received by mail and postmarked on or before the
26required due date is not delinquent.

 

 

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1    Taxes levied on homestead property in which a member of
2the National Guard or reserves of the armed forces of the
3United States who was called to active duty on or after August
41, 1990, and who has an ownership interest, shall not be deemed
5delinquent and no interest shall accrue or be charged as a
6penalty on such taxes due and payable in 1991 or 1992 until one
7year after that member returns to civilian status.
8    If an Illinois resident who is a member of the Illinois
9National Guard or a reserve component of the armed forces of
10the United States and who has an ownership interest in
11property taxed under this Act is called to active duty for
12deployment outside the continental United States and is on
13active duty on the due date of any installment of taxes due
14under this Act, he or she shall not be deemed delinquent in the
15payment of the installment and no interest shall accrue or be
16charged as a penalty on the installment until 180 days after
17that member returns to civilian status. To be deemed not
18delinquent in the payment of an installment of taxes and any
19interest on that installment, the reservist or guardsperson
20must make a reasonable effort to notify the county clerk and
21the county collector of his or her activation to active duty
22and must notify the county clerk and the county collector
23within 180 days after his or her deactivation and provide
24verification of the date of his or her deactivation. An
25installment of property taxes on the property of any reservist
26or guardsperson who fails to provide timely notice and

 

 

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1verification of deactivation to the county clerk is subject to
2interest and penalties as delinquent taxes under this Code
3from the date of deactivation.
4(Source: P.A. 102-1112, eff. 12-21-22.)
 
5    (35 ILCS 200/21-45)
6    Sec. 21-45. Failure to issue tax bill in prior year. In the
7event no tax bill was issued as provided in Section 21-30, on
8any property in any previous year for any reason, one tax bill
9shall be prepared and mailed by July 1 of the year subsequent
10to the year in which no tax bill was issued, and taxes on that
11property for that year only shall bear interest after the
12first day of August of that year and until paid or forfeited at
13the rate of 1.5% 1 1/2% per month or portion thereof for tax
14years prior to 2023 and at the rate of 0.75% per month or
15portion thereof for tax years 2023 and thereafter until paid
16or forfeited.
17(Source: P.A. 87-17; 88-455.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.