Full Text of HB2428 100th General Assembly
HB2428 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2428 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that the provisions of a section relating to erroneous homestead exemptions applies to all counties (currently, only counties with 3,000,000 or more inhabitants).
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 9-275 as follows: | 6 | | (35 ILCS 200/9-275) | 7 | | Sec. 9-275. Erroneous homestead exemptions. | 8 | | (a) For purposes of this Section: | 9 | | "Erroneous homestead exemption" means a homestead | 10 | | exemption that was granted for real property in a taxable year | 11 | | if the property was not eligible for that exemption in that | 12 | | taxable year. If the taxpayer receives an erroneous homestead | 13 | | exemption under a single Section of this Code for the same | 14 | | property in multiple years, that exemption is considered a | 15 | | single erroneous homestead exemption for purposes of this | 16 | | Section. However, if the taxpayer receives erroneous homestead | 17 | | exemptions under multiple Sections of this Code for the same | 18 | | property, or if the taxpayer receives erroneous homestead | 19 | | exemptions under the same Section of this Code for multiple | 20 | | properties, then each of those exemptions is considered a | 21 | | separate erroneous homestead exemption for purposes of this | 22 | | Section. | 23 | | "Homestead exemption" means an exemption under Section |
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| 1 | | 15-165 (veterans with disabilities), 15-167 (returning | 2 | | veterans), 15-168 (persons with disabilities), 15-169 | 3 | | (standard homestead for veterans with disabilities), 15-170 | 4 | | (senior citizens), 15-172 (senior citizens assessment freeze), | 5 | | 15-175 (general homestead), 15-176 (alternative general | 6 | | homestead), or 15-177 (long-time occupant). | 7 | | "Erroneous exemption principal amount" means the total | 8 | | difference between the property taxes actually billed to a | 9 | | property index number and the amount of property taxes that | 10 | | would have been billed but for the erroneous exemption or | 11 | | exemptions. | 12 | | "Taxpayer" means the property owner or leasehold owner that | 13 | | erroneously received a homestead exemption upon property. | 14 | | (b) Notwithstanding any other provision of law, in counties | 15 | | with 3,000,000 or more inhabitants, the chief county assessment | 16 | | officer shall include the following information with each | 17 | | assessment notice sent in a general assessment year: (1) a list | 18 | | of each homestead exemption available under Article 15 of this | 19 | | Code and a description of the eligibility criteria for that | 20 | | exemption; (2) a list of each homestead exemption applied to | 21 | | the property in the current assessment year; (3) information | 22 | | regarding penalties and interest that may be incurred under | 23 | | this Section if the taxpayer received an erroneous homestead | 24 | | exemption in a previous taxable year; and (4) notice of the | 25 | | 60-day grace period available under this subsection. If, within | 26 | | 60 days after receiving his or her assessment notice, the |
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| 1 | | taxpayer notifies the chief county assessment officer that he | 2 | | or she received an erroneous homestead exemption in a previous | 3 | | taxable year, and if the taxpayer pays the erroneous exemption | 4 | | principal amount, plus interest as provided in subsection (f), | 5 | | then the taxpayer shall not be liable for the penalties | 6 | | provided in subsection (f) with respect to that exemption. | 7 | | (c) When In counties with 3,000,000 or more inhabitants, | 8 | | when the chief county assessment officer determines that one or | 9 | | more erroneous homestead exemptions was applied to the | 10 | | property, the erroneous exemption principal amount, together | 11 | | with all applicable interest and penalties as provided in | 12 | | subsections (f) and (j), shall constitute a lien in the name of | 13 | | the people of that county People of Cook County on the property | 14 | | receiving the erroneous homestead exemption. Upon becoming | 15 | | aware of the existence of one or more erroneous homestead | 16 | | exemptions, the chief county assessment officer shall cause to | 17 | | be served, by both regular mail and certified mail, a notice of | 18 | | discovery as set forth in subsection (c-5). The chief county | 19 | | assessment officer in a county with 3,000,000 or more | 20 | | inhabitants may cause a lien to be recorded against property | 21 | | that (1) is located in the county and (2) received one or more | 22 | | erroneous homestead exemptions if, upon determination of the | 23 | | chief county assessment officer, the taxpayer received: (A) one | 24 | | or 2 erroneous homestead exemptions for real property, | 25 | | including at least one erroneous homestead exemption granted | 26 | | for the property against which the lien is sought, during any |
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| 1 | | of the 3 collection years immediately prior to the current | 2 | | collection year in which the notice of discovery is served; or | 3 | | (B) 3 or more erroneous homestead exemptions for real property, | 4 | | including at least one erroneous homestead exemption granted | 5 | | for the property against which the lien is sought, during any | 6 | | of the 6 collection years immediately prior to the current | 7 | | collection year in which the notice of discovery is served. | 8 | | Prior to recording the lien against the property, the chief | 9 | | county assessment officer shall cause to be served, by both | 10 | | regular mail and certified mail, return receipt requested, on | 11 | | the person to whom the most recent tax bill was mailed and the | 12 | | owner of record, a notice of intent to record a lien against | 13 | | the property. The chief county assessment officer shall cause | 14 | | the notice of intent to record a lien to be served within 3 | 15 | | years from the date on which the notice of discovery was | 16 | | served. | 17 | | (c-5) The notice of discovery described in subsection (c) | 18 | | shall: (1) identify, by property index number, the property for | 19 | | which the chief county assessment officer has knowledge | 20 | | indicating the existence of an erroneous homestead exemption; | 21 | | (2) set forth the taxpayer's liability for principal, interest, | 22 | | penalties, and administrative costs including, but not limited | 23 | | to, recording fees described in subsection (f); (3) inform the | 24 | | taxpayer that he or she will be served with a notice of intent | 25 | | to record a lien within 3 years from the date of service of the | 26 | | notice of discovery; (4) inform the taxpayer that he or she may |
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| 1 | | pay the outstanding amount, plus interest, penalties, and | 2 | | administrative costs at any time prior to being served with the | 3 | | notice of intent to record a lien or within 30 days after the | 4 | | notice of intent to record a lien is served; and (5) inform the | 5 | | taxpayer that, if the taxpayer provided notice to the chief | 6 | | county assessment officer as provided in subsection (d-1) of | 7 | | Section 15-175 of this Code, upon submission by the taxpayer of | 8 | | evidence of timely notice and receipt thereof by the chief | 9 | | county assessment officer, the chief county assessment officer | 10 | | will withdraw the notice of discovery and reissue a notice of | 11 | | discovery in compliance with this Section in which the taxpayer | 12 | | is not liable for interest and penalties for the current tax | 13 | | year in which the notice was received. | 14 | | For the purposes of this subsection (c-5): | 15 | | "Collection year" means the year in which the first and | 16 | | second installment of the current tax year is billed. | 17 | | "Current tax year" means the year prior to the collection | 18 | | year. | 19 | | (d) The notice of intent to record a lien described in | 20 | | subsection (c) shall: (1) identify, by property index number, | 21 | | the property against which the lien is being sought; (2) | 22 | | identify each specific homestead exemption that was | 23 | | erroneously granted and the year or years in which each | 24 | | exemption was granted; (3) set forth the erroneous exemption | 25 | | principal amount due and the interest amount and any penalty | 26 | | and administrative costs due; (4) inform the taxpayer that he |
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| 1 | | or she may request a hearing within 30 days after service and | 2 | | may appeal the hearing officer's ruling to the circuit court; | 3 | | (5) inform the taxpayer that he or she may pay the erroneous | 4 | | exemption principal amount, plus interest and penalties, | 5 | | within 30 days after service; and (6) inform the taxpayer that, | 6 | | if the lien is recorded against the property, the amount of the | 7 | | lien will be adjusted to include the applicable recording fee | 8 | | and that fees for recording a release of the lien shall be | 9 | | incurred by the taxpayer. A lien shall not be filed pursuant to | 10 | | this Section if the taxpayer pays the erroneous exemption | 11 | | principal amount, plus penalties and interest, within 30 days | 12 | | of service of the notice of intent to record a lien. | 13 | | (e) The notice of intent to record a lien shall also | 14 | | include a form that the taxpayer may return to the chief county | 15 | | assessment officer to request a hearing. The taxpayer may | 16 | | request a hearing by returning the form within 30 days after | 17 | | service. The hearing shall be held within 90 days after the | 18 | | taxpayer is served. The chief county assessment officer shall | 19 | | promulgate rules of service and procedure for the hearing. The | 20 | | chief county assessment officer must generally follow rules of | 21 | | evidence and practices that prevail in the county circuit | 22 | | courts, but, because of the nature of these proceedings, the | 23 | | chief county assessment officer is not bound by those rules in | 24 | | all particulars. The chief county assessment officer shall | 25 | | appoint a hearing officer to oversee the hearing. The taxpayer | 26 | | shall be allowed to present evidence to the hearing officer at |
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| 1 | | the hearing. After taking into consideration all the relevant | 2 | | testimony and evidence, the hearing officer shall make an | 3 | | administrative decision on whether the taxpayer was | 4 | | erroneously granted a homestead exemption for the taxable year | 5 | | in question. The taxpayer may appeal the hearing officer's | 6 | | ruling to the circuit court of the county where the property is | 7 | | located as a final administrative decision under the | 8 | | Administrative Review Law. | 9 | | (f) A lien against the property imposed under this Section | 10 | | shall be filed with the county recorder of deeds, but may not | 11 | | be filed sooner than 60 days after the notice of intent to | 12 | | record a lien was delivered to the taxpayer if the taxpayer | 13 | | does not request a hearing, or until the conclusion of the | 14 | | hearing and all appeals if the taxpayer does request a hearing. | 15 | | If a lien is filed pursuant to this Section and the taxpayer | 16 | | received one or 2 erroneous homestead exemptions during any of | 17 | | the 3 collection years immediately prior to the current | 18 | | collection year in which the notice of discovery is served, | 19 | | then the erroneous exemption principal amount, plus 10% | 20 | | interest per annum or portion thereof from the date the | 21 | | erroneous exemption principal amount would have become due if | 22 | | properly included in the tax bill, shall be charged against the | 23 | | property by the chief county assessment officer. However, if a | 24 | | lien is filed pursuant to this Section and the taxpayer | 25 | | received 3 or more erroneous homestead exemptions during any of | 26 | | the 6 collection years immediately prior to the current |
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| 1 | | collection year in which the notice of discovery is served, the | 2 | | erroneous exemption principal amount, plus a penalty of 50% of | 3 | | the total amount of the erroneous exemption principal amount | 4 | | for that property and 10% interest per annum or portion thereof | 5 | | from the date the erroneous exemption principal amount would | 6 | | have become due if properly included in the tax bill, shall be | 7 | | charged against the property by the chief county assessment | 8 | | officer. If a lien is filed pursuant to this Section, the | 9 | | taxpayer shall not be liable for interest that accrues between | 10 | | the date the notice of discovery is served and the date the | 11 | | lien is filed. Before recording the lien with the county | 12 | | recorder of deeds, the chief county assessment officer shall | 13 | | adjust the amount of the lien to add administrative costs, | 14 | | including but not limited to the applicable recording fee, to | 15 | | the total lien amount. | 16 | | (g) If a person received an erroneous homestead exemption | 17 | | under Section 15-170 and: (1) the person was the spouse, child, | 18 | | grandchild, brother, sister, niece, or nephew of the previous | 19 | | taxpayer; and (2) the person received the property by bequest | 20 | | or inheritance; then the person is not liable for the penalties | 21 | | imposed under this Section for any year or years during which | 22 | | the chief county assessment officer did not require an annual | 23 | | application for the exemption. However, that person is | 24 | | responsible for any interest owed under subsection (f). | 25 | | (h) If the erroneous homestead exemption was granted as a | 26 | | result of a clerical error or omission on the part of the chief |
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| 1 | | county assessment officer, and if the taxpayer has paid the tax | 2 | | bills as received for the year in which the error occurred, | 3 | | then the interest and penalties authorized by this Section with | 4 | | respect to that homestead exemption shall not be chargeable to | 5 | | the taxpayer. However, nothing in this Section shall prevent | 6 | | the collection of the erroneous exemption principal amount due | 7 | | and owing. | 8 | | (i) A lien under this Section is not valid as to (1) any | 9 | | bona fide purchaser for value without notice of the erroneous | 10 | | homestead exemption whose rights in and to the underlying | 11 | | parcel arose after the erroneous homestead exemption was | 12 | | granted but before the filing of the notice of lien; or (2) any | 13 | | mortgagee, judgment creditor, or other lienor whose rights in | 14 | | and to the underlying parcel arose before the filing of the | 15 | | notice of lien. A title insurance policy for the property that | 16 | | is issued by a title company licensed to do business in the | 17 | | State showing that the property is free and clear of any liens | 18 | | imposed under this Section shall be prima facie evidence that | 19 | | the taxpayer is without notice of the erroneous homestead | 20 | | exemption. Nothing in this Section shall be deemed to impair | 21 | | the rights of subsequent creditors and subsequent purchasers | 22 | | under Section 30 of the Conveyances Act. | 23 | | (j) When a lien is filed against the property pursuant to | 24 | | this Section, the chief county assessment officer shall mail a | 25 | | copy of the lien to the person to whom the most recent tax bill | 26 | | was mailed and to the owner of record, and the outstanding |
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| 1 | | liability created by such a lien is due and payable within 30 | 2 | | days after the mailing of the lien by the chief county | 3 | | assessment officer. This liability is deemed delinquent and | 4 | | shall bear interest beginning on the day after the due date at | 5 | | a rate of 1.5% per month or portion thereof. Payment shall be | 6 | | made to the county treasurer. Upon receipt of the full amount | 7 | | due, as determined by the chief county assessment officer, the | 8 | | county treasurer shall distribute the amount paid as provided | 9 | | in subsection (k). Upon presentment by the taxpayer to the | 10 | | chief county assessment officer of proof of payment of the | 11 | | total liability, the chief county assessment officer shall | 12 | | provide in reasonable form a release of the lien. The release | 13 | | of the lien provided shall clearly inform the taxpayer that it | 14 | | is the responsibility of the taxpayer to record the lien | 15 | | release form with the county recorder of deeds and to pay any | 16 | | applicable recording fees. | 17 | | (k) The county treasurer shall pay collected erroneous | 18 | | exemption principal amounts, pro rata, to the taxing districts, | 19 | | or their legal successors, that levied upon the subject | 20 | | property in the taxable year or years for which the erroneous | 21 | | homestead exemptions were granted, except as set forth in this | 22 | | Section. The county treasurer shall deposit collected | 23 | | penalties and interest into a special fund established by the | 24 | | county treasurer to offset the costs of administration of the | 25 | | provisions of this Section by the chief county assessment | 26 | | officer's office, as appropriated by the county board. If the |
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| 1 | | costs of administration of this Section exceed the amount of | 2 | | interest and penalties collected in the special fund, the chief | 3 | | county assessor shall be reimbursed by each taxing district or | 4 | | their legal successors for those costs. Such costs shall be | 5 | | paid out of the funds collected by the county treasurer on | 6 | | behalf of each taxing district pursuant to this Section. | 7 | | (l) The chief county assessment officer in a county with | 8 | | 3,000,000 or more inhabitants shall establish an amnesty period | 9 | | for all taxpayers owing any tax due to an erroneous homestead | 10 | | exemption granted in a tax year prior to the 2013 tax year. The | 11 | | amnesty period shall begin on the effective date of this | 12 | | amendatory Act of the 98th General Assembly and shall run | 13 | | through December 31, 2013. If, during the amnesty period, the | 14 | | taxpayer pays the entire arrearage of taxes due for tax years | 15 | | prior to 2013, the county clerk shall abate and not seek to | 16 | | collect any interest or penalties that may be applicable and | 17 | | shall not seek civil or criminal prosecution for any taxpayer | 18 | | for tax years prior to 2013. Failure to pay all such taxes due | 19 | | during the amnesty period established under this Section shall | 20 | | invalidate the amnesty period for that taxpayer. | 21 | | The chief county assessment officer in a county with less | 22 | | than 3,000,000 inhabitants shall establish an amnesty period | 23 | | for all taxpayers owing any tax due to an erroneous homestead | 24 | | exemption granted in a tax year prior to the 2017 tax year. The | 25 | | amnesty period shall begin on the effective date of this | 26 | | amendatory Act of the 100th General Assembly and shall run |
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| 1 | | through December 31, 2017. If, during the amnesty period, the | 2 | | taxpayer pays the entire arrearage of taxes due for tax years | 3 | | prior to 2017, the county clerk shall abate and not seek to | 4 | | collect any interest or penalties that may be applicable and | 5 | | shall not seek civil or criminal prosecution for any taxpayer | 6 | | for tax years prior to 2017. Failure to pay all such taxes due | 7 | | during the amnesty period established under this Section shall | 8 | | invalidate the amnesty period for that taxpayer. | 9 | | The chief county assessment officer in a county with | 10 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 11 | | amnesty period with the tax bills for the second installment of | 12 | | taxes for the 2012 assessment year and (ii) as soon as possible | 13 | | after the effective date of this amendatory Act of the 98th | 14 | | General Assembly, publish notice of the amnesty period in a | 15 | | newspaper of general circulation in the county. Notices shall | 16 | | include information on the amnesty period, its purpose, and the | 17 | | method by which to make payment. | 18 | | The chief county assessment officer in a county with less | 19 | | than 3,000,000 inhabitants shall (i) mail notice of the amnesty | 20 | | period with the tax bills for the second installment of taxes | 21 | | for the 2016 assessment year and (ii) as soon as possible after | 22 | | the effective date of this amendatory Act of the 100th General | 23 | | Assembly, publish notice of the amnesty period in a newspaper | 24 | | of general circulation in the county. Notices shall include | 25 | | information on the amnesty period, its purpose, and the method | 26 | | by which to make payment. |
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| 1 | | Taxpayers who are a party to any criminal investigation or | 2 | | to any civil or criminal litigation that is pending in any | 3 | | circuit court or appellate court, or in the Supreme Court of | 4 | | this State, for nonpayment, delinquency, or fraud in relation | 5 | | to any property tax imposed by any taxing district located in | 6 | | the State on the effective date of this amendatory Act of the | 7 | | 98th General Assembly (if the property is located in a county | 8 | | with 3,000,000 or more inhabitants) or on the effective date of | 9 | | this amendatory Act of the 100th General Assembly (if the | 10 | | property is located in a county with less than 3,000,000 | 11 | | inhabitants) may not take advantage of the amnesty period. | 12 | | A taxpayer who has claimed 3 or more homestead exemptions | 13 | | in error shall not be eligible for the amnesty period | 14 | | established under this subsection.
| 15 | | (Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14; | 16 | | 98-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff. | 17 | | 7-27-15; 99-851, eff. 8-19-16.)
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