97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3063

 

Introduced 2/23/2011, by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-15

    Amends the Property Tax Code. Provides that all property upon which the first installment of taxes remains unpaid on the first installment date (now, June 1) shall be deemed delinquent and shall bear interest after the first installment date (now, June 1). Provides that all property upon which the second installment of taxes remains due and unpaid on the second installment date (now, September 1) shall be deemed delinquent and shall bear interest after the second installment date (now, September 1). Effective immediately.


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HOME RULE 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
5Section 21-15 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 first installment date June 1 annually
11shall be deemed delinquent and shall bear interest after the
12first installment date June 1 at the rate of 1 1/2% per month
13or portion thereof. Except as otherwise provided in this
14Section or Section 21-40, all property upon which the second
15installment of taxes remains due and unpaid on the second
16installment date September 1, annually, shall be deemed
17delinquent and shall bear interest after the second installment
18date September 1 at the same interest rate. All interest
19collected shall be paid into the general fund of the county.
20Payment received by mail and postmarked on or before the
21required due date is not delinquent.
22    Property not subject to the interest charge in Section
239-260 or Section 9-265 shall also not be subject to the

 

 

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1interest charge imposed by this Section until such time as the
2owner of the property receives actual notice of and is billed
3for the principal amount of back taxes due and owing.
4    If an Illinois resident who is a member of the Illinois
5National Guard or a reserve component of the armed forces of
6the United States and who has an ownership interest in property
7taxed under this Act is called to active duty for deployment
8outside the continental United States and is on active duty on
9the due date of any installment of taxes due under this Act, he
10or she shall not be deemed delinquent in the payment of the
11installment and no interest shall accrue or be charged as a
12penalty on the installment until 180 days after that member
13returns from active duty. To be deemed not delinquent in the
14payment of an installment of taxes and any interest on that
15installment, the reservist or guardsperson must make a
16reasonable effort to notify the county clerk and the county
17collector of his or her activation to active duty and must
18notify the county clerk and the county collector within 180
19days after his or her deactivation and provide verification of
20the date of his or her deactivation. An installment of property
21taxes on the property of any reservist or guardsperson who
22fails to provide timely notice and verification of deactivation
23to the county clerk is subject to interest and penalties as
24delinquent taxes under this Code from the date of deactivation.
25    Notwithstanding any other provision of law, when any unpaid
26taxes become delinquent under this Section through the fault of

 

 

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1the mortgage lender, (i) the interest assessed under this
2Section for delinquent taxes shall be charged against the
3mortgage lender and not the mortgagor and (ii) the mortgage
4lender shall pay the taxes, redeem the property and take all
5necessary steps to remove any liens accruing against the
6property because of the delinquency. In the event that more
7than one entity meets the definition of mortgage lender with
8respect to any mortgage, the interest shall be assessed against
9the mortgage lender responsible for servicing the mortgage.
10Unpaid taxes shall be deemed delinquent through the fault of
11the mortgage lender only if: (a) the mortgage lender has
12received all payments due the mortgage lender for the property
13being taxed under the written terms of the mortgage or
14promissory note secured by the mortgage, (b) the mortgage
15lender holds funds in escrow to pay the taxes, and (c) the
16funds are sufficient to pay the taxes after deducting all
17amounts reasonably anticipated to become due for all hazard
18insurance premiums and mortgage insurance premiums and any
19other assessments to be paid from the escrow under the terms of
20the mortgage. For purposes of this Section, an amount is
21reasonably anticipated to become due if it is payable within 12
22months from the time of determining the sufficiency of funds
23held in escrow. Unpaid taxes shall not be deemed delinquent
24through the fault of the mortgage lender if the mortgage lender
25was directed in writing by the mortgagor not to pay the
26property taxes, or if the failure to pay the taxes when due

 

 

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1resulted from inadequate or inaccurate parcel information
2provided by the mortgagor, a title or abstract company, or by
3the agency or unit of government assessing the tax.
4(Source: P.A. 93-560, eff. 8-20-03; 94-312, eff. 7-25-05.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.