Sen. Antonio Muņoz

Filed: 5/9/2012

 

 


 

 


 
09700HB0506sam002LRB097 03334 HLH 69262 a

1
AMENDMENT TO HOUSE BILL 506

2    AMENDMENT NO. ______. Amend House Bill 506 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by adding
5Section 9-275 as follows:
 
6    (35 ILCS 200/9-275 new)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) If, upon determination by the chief county assessment
9officer, any person or entity that was not eligible to receive
10a homestead exemption under Article 15 of this Code was granted
11one homestead exemption in error for real property in any year
12or years not to exceed the 3 assessment years prior to the
13assessment year in which the determination is made, then the
14chief county assessment officer may cause to be served, by both
15regular mail and certified mail, return receipt requested, on
16the person to whom the most recent tax bill was mailed and the

 

 

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1owner of record, a notice of intent to record a tax lien
2against the property with respect to which the erroneous
3homestead exemption was granted.
4    (b) If, upon determination by the chief county assessment
5officer, any person or entity that was not eligible to receive
6a homestead exemption under Article 15 of this Code was granted
72 homestead exemptions in error for real property in any year
8or years not to exceed the 3 assessment years prior to the
9assessment year in which the determination is made, then the
10chief county assessment officer may cause to be served, by both
11regular mail and certified mail, return receipt requested, on
12the person to whom the most recent tax bill was mailed and the
13owner of record, a notice of intent to record a tax lien
14against the property with respect to which the erroneous
15homestead exemption was granted.
16    (c) If, upon determination by the chief county assessment
17officer, any person or entity that was not eligible to receive
18a homestead exemption under Article 15 of this Code was granted
193 or more homestead exemptions in error for real property in
20any year or years not to exceed the 6 assessment years prior to
21the assessment year in which the determination is made, then
22the chief county assessment officer may cause to be served, by
23both regular mail and certified mail, return receipt requested,
24on the person to whom the most recent tax bill was mailed and
25the owner of record, a notice of intent to record a tax lien
26against the property with respect to which the erroneous

 

 

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1homestead exemption was granted.
2    (d) The notice of intent to record a tax lien described in
3subsections (a), (b), and (c) of this Section shall identify
4the property against which the lien is being sought and shall
5identify the assessment years in which the erroneous homestead
6exemption was granted.
7    In counties with 3,000,000 or more inhabitants, the notice
8must also include a form that the property owner may return to
9the chief county assessment officer to request a hearing. The
10property owner may request a hearing by returning the form
11within 30 days after service. The hearing shall be held within
1290 days after the property owner is served. The chief county
13assessment officer shall promulgate rules of service and
14procedure for the hearing. The chief county assessment officer
15must generally follow rules of evidence and practices that
16prevail in the county circuit courts, but, because of the
17nature of these proceedings, the chief county assessment
18officer is not bound by those rules in all particulars. The
19chief county assessment officer shall appoint a hearing officer
20to oversee the hearing. The property owner shall be allowed to
21present evidence to the hearing officer at the hearing. After
22taking into consideration all the relevant testimony and
23evidence, the hearing officer shall make an administrative
24decision on whether the property owner was erroneously granted
25a homestead exemption for the assessment year or years in
26question. The property owner may appeal the hearing officer's

 

 

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1ruling to the circuit court of the county where the property is
2located under the Administrative Review Law.
3    In counties with less than 3,000,000 inhabitants, the
4notice must also include a form that the property owner may
5return to the board of review to request a hearing. The
6property owner may request a hearing by returning the form
7within 30 days after service. The hearing shall be held within
890 days after the property owner is served. The board of review
9shall follow its normal practices and procedures in conducting
10the hearing. The property owner shall be allowed to present
11evidence to the board of review. After taking into
12consideration all of the relevant testimony and evidence, the
13board of review shall issue a decision on whether the property
14owner was erroneously granted a homestead exemption for the
15assessment year or years in question. The property owner may
16appeal the board of review's ruling to the circuit court of the
17county where the property is located under the Administrative
18Review Law.
19    (e) A lien against the property imposed under this Section
20shall be filed with the county clerk and the county recorder of
21deeds, but may not be filed sooner than 60 days after the
22notice was delivered to the property owner if the property
23owner does not request a hearing, or, until the conclusion of
24the hearing and all appeals if the property owner does request
25a hearing.
26        (1) When a lien is filed pursuant to subsection (a) of

 

 

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1    this Section, the arrearages of taxes that might have been
2    assessed, plus 5% interest per annum, shall be charged
3    against the property by the county clerk.
4        (2) When a lien is filed pursuant to subsection (b) of
5    this Section, the arrearages of taxes that might have been
6    assessed, plus a penalty of 25% of the total amount of
7    unpaid taxes for each year and 10% interest per annum,
8    shall be charged against the property by the county clerk.
9        (3) When a lien is filed pursuant to subsection (c) of
10    this Section, the arrearages of taxes that might have been
11    assessed, plus a penalty of 40% of the total amount of
12    unpaid taxes for each year and 15% interest per annum,
13    shall be charged against the property by the county clerk.
14    A person who received an erroneous homestead exemption
15under Section 15-170 in assessment years 2006 through 2009 is
16not liable for the penalties imposed under this subsection (e)
17for those assessment years if: (i) the person was the spouse,
18child, grandchild, brother, sister, niece, or nephew of the
19previous owner; and (ii) the person received the property by
20bequest or inheritance. However, that person is responsible for
21any interest owed under subsection (h) of this Section.
22    (f) If the erroneous homestead exemption was granted as a
23result of a clerical error or omission on the part of the chief
24county assessment officer, and if the owner has paid its tax
25bills as received for the year or years in which the error
26occurred, then the interest and penalties authorized by this

 

 

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1Section shall not be chargeable to the owner. However, nothing
2in this Section shall prevent the collection of the principal
3amount of back taxes due and owing.
4    (g) If, at the hearing, the property owner establishes that
5it is a bona fide purchaser of the property for value, and
6without notice of the erroneous homestead exemption, the
7property owner shall not be liable for any unpaid back taxes,
8interest, or penalties for the period of time prior to the date
9that the property owner purchased the property. A certified
10title to the property that is issued by a title company
11licensed to do business in the State and is free and clear of
12any liens imposed under subsections (a), (b), or (c) of this
13Section, shall be prima facie evidence that the property owner
14is without notice of the erroneous homestead exemption.
15    (h) When a lien is filed against the property pursuant to
16subsection (e) of this Section, the chief county assessment
17officer shall mail a copy of the lien to the person to whom the
18most recent tax bill was mailed and to the owner of record, and
19the outstanding liability created by such a lien is due and
20payable within 30 days after the mailing of the lien by the
21chief county assessment officer. Payment shall be made to the
22chief county assessment officer who shall, upon receipt of the
23full amount due, provide in reasonable form a release of the
24lien and shall transmit the funds received to the county
25treasurer for distribution as provided in subsection (i) of
26this Section. This liability is deemed delinquent and shall

 

 

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1bear interest beginning on the day after the due date. Any such
2liability deemed delinquent after that due date shall bear
3interest at the rate of 1.5% per month or portion thereof until
4paid.
5    (i) The unpaid taxes shall be paid to the appropriate
6taxing districts. Interest shall be paid to the county where
7the property is located. The penalty shall be paid to the chief
8county assessment officer's office for the administration of
9the provisions of this amendatory Act of the 97th General
10Assembly.
11    (j) For purposes of this Section, "homestead exemption"
12means an exemption under Section 15-165 (disabled veterans),
1315-167 (returning veterans), 15-168 (disabled persons), 15-169
14(disabled veterans standard homestead), 15-170 (senior
15citizens), 15-172 (senior citizens assessment freeze), 15-175
16(general homestead), 15-176 (alternative general homestead),
17or 15-177 (long-time occupant).
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".