093_HB1477

 
                                     LRB093 09157 SJM 09389 b

 1        AN ACT concerning property taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Property Tax Code is amended by changing
 5    Sections 21-15, 21-20, and 21-25 as follows:

 6        (35 ILCS 200/21-15)
 7        Sec. 21-15.  General tax due dates; default  by  mortgage
 8    lender.  Except  as  otherwise  provided  in  this Section or
 9    Section 21-40, all property upon which the first  installment
10    of  taxes  remains  unpaid on June 1 annually shall be deemed
11    delinquent and shall bear interest after June 1 at  the  rate
12    of  1  1/2% per month or portion thereof. Except as otherwise
13    provided in  Section  21-40  and  notwithstanding  any  other
14    provision,  for  taxable  years  2003  and  thereafter,  farm
15    property  assessed  under Sections 10-110 through 10-140 upon
16    which the first installment of taxes remains unpaid on June 1
17    annually shall be deemed delinquent and shall  bear  interest
18    after June 1 at the rate of 1/2% per month or portion thereof
19    for  a  period  of  5  years,  after  which  time the rate of
20    interest shall be 1 1/2% per month or portion thereof. Except
21    as otherwise provided in this Section or Section  21-40,  all
22    property  upon  which the second installment of taxes remains
23    due and unpaid on September  1,  annually,  shall  be  deemed
24    delinquent  and  shall bear interest after September 1 at the
25    same interest rate as the  first  installment.  All  interest
26    collected shall be paid into the general fund of the county.
27    Payment  received  by  mail  and  postmarked on or before the
28    required due date is not delinquent.
29        Property not subject to the interest  charge  in  Section
30    9-265  shall  also  not  be  subject  to  the interest charge
31    imposed by this Section until such time as the owner  of  the
 
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 1    property  receives  actual  notice  of  and is billed for the
 2    principal amount of back taxes due and owing.
 3        If a member of a reserve component of the armed forces of
 4    the United States who has an ownership interest  in  property
 5    taxed  under this Act is called to active duty for deployment
 6    outside the continental United States and is on  active  duty
 7    on  the  due  date of any installment of taxes due under this
 8    Act, he or she shall not be deemed delinquent in the  payment
 9    of the installment and no interest shall accrue or be charged
10    as  a  penalty  on  the  installment until 30 days after that
11    member returns from active duty.
12        Notwithstanding any other  provision  of  law,  when  any
13    unpaid taxes become delinquent under this Section through the
14    fault of the mortgage lender, (i) the interest assessed under
15    this  Section  for  delinquent taxes shall be charged against
16    the mortgage lender  and  not  the  mortgagor  and  (ii)  the
17    mortgage  lender shall pay the taxes, redeem the property and
18    take all necessary steps to remove any liens accruing against
19    the property because of the delinquency. In  the  event  that
20    more  than one entity meets the definition of mortgage lender
21    with respect to any mortgage, the interest shall be  assessed
22    against  the  mortgage  lender  responsible for servicing the
23    mortgage.  Unpaid taxes shall be  deemed  delinquent  through
24    the  fault  of  the mortgage lender only if: (a) the mortgage
25    lender has received all payments due the mortgage lender  for
26    the  property  being  taxed  under  the  written terms of the
27    mortgage or promissory note secured by the mortgage, (b)  the
28    mortgage  lender  holds funds in escrow to pay the taxes, and
29    (c) the funds are sufficient to pay the taxes after deducting
30    all amounts reasonably anticipated  to  become  due  for  all
31    hazard insurance premiums and mortgage insurance premiums and
32    any  other  assessments  to be paid from the escrow under the
33    terms of the mortgage.  For  purposes  of  this  Section,  an
34    amount  is  reasonably  anticipated  to  become  due if it is
 
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 1    payable within 12 months from the  time  of  determining  the
 2    sufficiency  of funds held in escrow.  Unpaid taxes shall not
 3    be deemed delinquent through the fault of the mortgage lender
 4    if the  mortgage  lender  was  directed  in  writing  by  the
 5    mortgagor not to pay the property taxes, or if the failure to
 6    pay the taxes when due resulted from inadequate or inaccurate
 7    parcel  information  provided  by  the  mortgagor, a title or
 8    abstract company, or by the  agency  or  unit  of  government
 9    assessing the tax.
10    (Source:  P.A.  90-336,  eff.  1-1-98;  90-575, eff. 3-20-98;
11    91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

12        (35 ILCS 200/21-20)
13        Sec. 21-20.  Due dates; accelerated billing  in  counties
14    of  less  than  3,000,000.  Except  as  otherwise provided in
15    Section  21-40,  in  counties  with   less   than   3,000,000
16    inhabitants  in  which  the accelerated method of billing and
17    paying taxes provided for in Section 21-30 is in effect,  the
18    estimated  first  installment of unpaid taxes shall be deemed
19    delinquent and shall bear interest after  a  date  not  later
20    than  June  1  annually  as  provided for in the ordinance or
21    resolution of  the  county  board  adopting  the  accelerated
22    method,  at  the  rate of 1 1/2% per month or portion thereof
23    until paid or forfeited.  Except  as  otherwise  provided  in
24    Section  21-40  and  notwithstanding any other provision, for
25    taxable years 2003 and thereafter, in counties with less than
26    3,000,000 inhabitants in  which  the  accelerated  method  of
27    billing  and paying taxes provided for in Section 21-30 is in
28    effect, the estimated first installment of  unpaid  taxes  on
29    farm  property  assessed under Sections 10-110 through 10-140
30    shall be deemed delinquent and shall bear interest,  after  a
31    date  not  later  than June 1 annually as provided for in the
32    ordinance or resolution of  the  county  board  adopting  the
33    accelerated  method, at the rate of 1/2% per month or portion
 
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 1    thereof for a period of 5 years, after which time the rate of
 2    interest shall be 1 1/2% per month or portion  thereof  until
 3    paid  or  forfeited.  The  second installment of unpaid taxes
 4    shall be deemed delinquent  and  shall  bear  interest  after
 5    August  1  annually  at  the  same interest rate as the first
 6    installment until paid or  forfeited.   Payment  received  by
 7    mail and postmarked on or before the required due date is not
 8    delinquent.
 9        If a member of a reserve component of the armed forces of
10    the  United  States who has an ownership interest in property
11    taxed under this Act is called to active duty for  deployment
12    outside  the  continental United States and is on active duty
13    on the due date of any installment of taxes  due  under  this
14    Act,  he or she shall not be deemed delinquent in the payment
15    of the installment and no interest shall accrue or be charged
16    as a penalty on the installment  until  30  days  after  that
17    member returns from active duty.
18    (Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

19        (35 ILCS 200/21-25)
20        Sec.  21-25.   Due dates; accelerated billing in counties
21    of 3,000,000 or more.  Except as hereinafter provided and  as
22    provided in Section 21-40, in counties with 3,000,000 or more
23    inhabitants  in  which  the accelerated method of billing and
24    paying taxes provided for in Section 21-30 is in effect,  the
25    estimated  first  installment of unpaid taxes shall be deemed
26    delinquent and shall bear interest after March 1 at the  rate
27    of  1  1/2%  per  month  or  portion  thereof  until  paid or
28    forfeited. Except as otherwise provided in this Section or in
29    Section 21-40 and notwithstanding any  other  provision,  for
30    taxable years 2003 and thereafter, in counties with 3,000,000
31    or  more  inhabitants  in  which  the  accelerated  method of
32    billing and paying taxes provided for in Section 21-30 is  in
33    effect,  the  estimated  first installment of unpaid taxes on
 
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 1    farm property assessed under Sections 10-110  through  10-140
 2    shall  be  deemed  delinquent  and  shall bear interest after
 3    March 1 at the rate of 1/2% per month or portion thereof  for
 4    a  period  of  5 years, after which time the rate of interest
 5    shall be 1 1/2% per month or portion thereof  until  paid  or
 6    forfeited.  The  second  installment of unpaid taxes shall be
 7    deemed delinquent and shall  bear  interest  after  August  1
 8    annually  at  the same interest rate as the first installment
 9    until paid or forfeited.
10        If the county board elects by ordinance adopted prior  to
11    July  1  of  a levy year to provide for taxes to be paid in 4
12    installments, each installment for that levy  year  and  each
13    subsequent year shall be deemed delinquent and shall begin to
14    bear  interest  30  days  after  the  date  specified  by the
15    ordinance for mailing bills, at the rate of 1 1/2% per  month
16    or   portion   thereof   (or,  for  taxable  years  2003  and
17    thereafter, for farm property assessed under Sections  10-110
18    through  10-140,  at  the  rate  of 1/2% per month or portion
19    thereof for a period of 5 years, after which time the rate of
20    interest shall be 1 1/2% per month or portion thereof)  until
21    paid or forfeited.
22        Payment  received by mail and postmarked on or before the
23    required due date is not delinquent.
24        Taxes levied on homestead property in which a  member  of
25    the  National  Guard  or  reserves of the armed forces of the
26    United States who was called  to  active  duty  on  or  after
27    August  1, 1990, and who has an ownership interest, shall not
28    be deemed delinquent and  no  interest  shall  accrue  or  be
29    charged as a penalty on such taxes due and payable in 1991 or
30    1992  until  one  year  after that member returns to civilian
31    status.
32        If a member of a reserve component of the armed forces of
33    the United States who has an ownership interest  in  property
34    taxed  under this Act is called to active duty for deployment
 
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 1    outside the continental United States and is on  active  duty
 2    on  the  due  date of any installment of taxes due under this
 3    Act, he or she shall not be deemed delinquent in the  payment
 4    of the installment and no interest shall accrue or be charged
 5    as  a  penalty  on  the  installment until 30 days after that
 6    member returns to civilian status.
 7    (Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)

 8        Section 99.  Effective date.  This Act takes effect  upon
 9    becoming law.