Full Text of SB0041 98th General Assembly
SB0041sam002 98TH GENERAL ASSEMBLY | Sen. Antonio Muñoz Filed: 5/1/2013
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| 1 | | AMENDMENT TO SENATE BILL 41
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 41, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Property Tax Code is amended by adding | 6 | | Section 9-275 as follows: | 7 | | (35 ILCS 200/9-275 new) | 8 | | Sec. 9-275. Erroneous homestead exemptions. | 9 | | (a) If, in a county with 3,000,000 or more inhabitants, | 10 | | upon determination by the chief county assessment officer, any | 11 | | person or entity that was not eligible to receive a homestead | 12 | | exemption under Article 15 of this Code was granted one | 13 | | homestead exemption in error for real property located in that | 14 | | county in any year or years not to exceed the 4 assessment | 15 | | years prior to the assessment year in which the determination | 16 | | is made, then the chief county assessment officer may cause to |
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| 1 | | be served, by both regular mail and certified mail, return | 2 | | receipt requested, on the person to whom the most recent tax | 3 | | bill was mailed and the owner of record, a notice of intent to | 4 | | record a tax lien against the property with respect to which | 5 | | the erroneous homestead exemption was granted. | 6 | | (b) If, in a county with 3,000,000 or more inhabitants, | 7 | | upon determination by the chief county assessment officer, any | 8 | | person or entity that was not eligible to receive a homestead | 9 | | exemption under Article 15 of this Code was granted 2 homestead | 10 | | exemptions in error for real property located in that county in | 11 | | any year or years not to exceed the 4 assessment years prior to | 12 | | the assessment year in which the determination is made, then | 13 | | the chief county assessment officer may cause to be served, by | 14 | | both regular mail and certified mail, return receipt requested, | 15 | | on the person to whom the most recent tax bill was mailed and | 16 | | the owner of record, a notice of intent to record a tax lien | 17 | | against the property with respect to which the erroneous | 18 | | homestead exemption was granted. | 19 | | (c) If, in a county with 3,000,000 or more inhabitants, | 20 | | upon determination by the chief county assessment officer, any | 21 | | person or entity that was not eligible to receive a homestead | 22 | | exemption under Article 15 of this Code was granted 3 or more | 23 | | homestead exemptions in error for real property located in that | 24 | | county in any year or years not to exceed the 8 assessment | 25 | | years prior to the assessment year in which the determination | 26 | | is made, then the chief county assessment officer may cause to |
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| 1 | | be served, by both regular mail and certified mail, return | 2 | | receipt requested, on the person to whom the most recent tax | 3 | | bill was mailed and the owner of record, a notice of intent to | 4 | | record a tax lien against the property with respect to which | 5 | | the erroneous homestead exemption was granted. | 6 | | (d) The notice of intent to record a tax lien described in | 7 | | subsections (a), (b), and (c) of this Section shall identify | 8 | | the property against which the lien is being sought and shall | 9 | | identify the assessment years in which the erroneous homestead | 10 | | exemption was granted. | 11 | | The notice must also include a form that the property owner | 12 | | may return to the chief county assessment officer to request a | 13 | | hearing. The property owner may request a hearing by returning | 14 | | the form within 30 days after service. The hearing shall be | 15 | | held within 90 days after the property owner is served. The | 16 | | chief county assessment officer shall promulgate rules of | 17 | | service and procedure for the hearing. The chief county | 18 | | assessment officer must generally follow rules of evidence and | 19 | | practices that prevail in the county circuit courts, but, | 20 | | because of the nature of these proceedings, the chief county | 21 | | assessment officer is not bound by those rules in all | 22 | | particulars. The chief county assessment officer shall appoint | 23 | | a hearing officer to oversee the hearing. The property owner | 24 | | shall be allowed to present evidence to the hearing officer at | 25 | | the hearing. After taking into consideration all the relevant | 26 | | testimony and evidence, the hearing officer shall make an |
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| 1 | | administrative decision on whether the property owner was | 2 | | erroneously granted a homestead exemption for the assessment | 3 | | year or years in question. The property owner may appeal the | 4 | | hearing officer's ruling to the circuit court of the county | 5 | | where the property is located under the Administrative Review | 6 | | Law. | 7 | | (e) A lien against the property imposed under this Section | 8 | | shall be filed with the county clerk and the county recorder of | 9 | | deeds, but may not be filed sooner than 60 days after the | 10 | | notice was delivered to the property owner if the property | 11 | | owner does not request a hearing, or, until the conclusion of | 12 | | the hearing and all appeals if the property owner does request | 13 | | a hearing. | 14 | | (1) When a lien is filed pursuant to subsection (a) of | 15 | | this Section, the arrearages of taxes that might have been | 16 | | assessed, plus 5% interest per annum, shall be charged | 17 | | against the property by the county clerk. | 18 | | (2) When a lien is filed pursuant to subsection (b) of | 19 | | this Section, the arrearages of taxes that might have been | 20 | | assessed, plus a penalty of 25% of the total amount of | 21 | | unpaid taxes for each year and 10% interest per annum, | 22 | | shall be charged against the property by the county clerk. | 23 | | (3) When a lien is filed pursuant to subsection (c) of | 24 | | this Section, the arrearages of taxes that might have been | 25 | | assessed, plus a penalty of 40% of the total amount of | 26 | | unpaid taxes for each year and 15% interest per annum, |
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| 1 | | shall be charged against the property by the county clerk. | 2 | | If the person received an erroneous homestead exemption | 3 | | under Section 15-170 in any year with respect to which an | 4 | | annual application was not required for that exemption, then | 5 | | that person or entity is not liable for the penalties and | 6 | | interest imposed under this subsection (e) for that assessment | 7 | | year if: (i) the person was the spouse, child, grandchild, | 8 | | brother, sister, niece, or nephew of the previous owner; and | 9 | | (ii) the person received the property by bequest or | 10 | | inheritance. However, that person is responsible for any | 11 | | interest owed under subsection (h) of this Section. | 12 | | (f) If the erroneous homestead exemption was granted as a | 13 | | result of a clerical error or omission on the part of the chief | 14 | | county assessment officer, and if the owner has paid its tax | 15 | | bills as received for the year or years in which the error | 16 | | occurred, then the interest and penalties authorized by this | 17 | | Section shall not be chargeable to the owner. However, nothing | 18 | | in this Section shall prevent the collection of the principal | 19 | | amount of back taxes due and owing. | 20 | | (g) If, at the hearing, the property owner establishes that | 21 | | it is a bona fide purchaser of the property for value, and | 22 | | without notice of the erroneous homestead exemption, the | 23 | | property owner shall not be liable for any unpaid back taxes, | 24 | | interest, or penalties for the period of time prior to the date | 25 | | that the property owner purchased the property. A certified | 26 | | title to the property that is issued by a title company |
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| 1 | | licensed to do business in the State and is free and clear of | 2 | | any liens imposed under subsections (a), (b), or (c) of this | 3 | | Section, shall be prima facie evidence that the property owner | 4 | | is without notice of the erroneous homestead exemption. | 5 | | (h) When a lien is filed against the property pursuant to | 6 | | subsection (e) of this Section, the chief county assessment | 7 | | officer shall mail a copy of the lien to the person to whom the | 8 | | most recent tax bill was mailed and to the owner of record, and | 9 | | the outstanding liability created by such a lien is due and | 10 | | payable within 30 days after the mailing of the lien by the | 11 | | chief county assessment officer. Payment shall be made to the | 12 | | chief county assessment officer who shall, upon receipt of the | 13 | | full amount due, provide in reasonable form a release of the | 14 | | lien and shall transmit the funds received to the county | 15 | | treasurer for distribution as provided in subsection (i) of | 16 | | this Section. This liability is deemed delinquent and shall | 17 | | bear interest beginning on the day after the due date. Any such | 18 | | liability deemed delinquent after that due date shall bear | 19 | | interest at the rate of 1.5% per month or portion thereof until | 20 | | paid. | 21 | | (i) The unpaid taxes shall be paid to the appropriate | 22 | | taxing districts. Interest shall be paid to the county where | 23 | | the property is located. The penalty shall be paid to the chief | 24 | | county assessment officer's office for the administration of | 25 | | the provisions of this amendatory Act of the 98th General | 26 | | Assembly. |
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| 1 | | (j) For purposes of this Section, "homestead exemption" | 2 | | means an exemption under Section 15-165 (disabled veterans), | 3 | | 15-167 (returning veterans), 15-168 (disabled persons), 15-169 | 4 | | (disabled veterans standard homestead), 15-170 (senior | 5 | | citizens), 15-172 (senior citizens assessment freeze), 15-175 | 6 | | (general homestead), 15-176 (alternative general homestead), | 7 | | or 15-177 (long-time occupant). | 8 | | (k) The chief county assessment officer shall establish a | 9 | | grace period for all taxpayers owing any tax due to a homestead | 10 | | exemption being claimed erroneously in a tax year prior to the | 11 | | 2013 tax year. The grace period shall begin on the effective | 12 | | date of this amendatory Act of the 98th General Assembly and | 13 | | shall run through December 31, 2013. If, during the grace | 14 | | period, the taxpayer pays the entire arrearage of taxes due for | 15 | | tax years prior to 2013, the county clerk shall abate and not | 16 | | seek to collect any interest or penalties that may be | 17 | | applicable and shall not seek civil or criminal prosecution for | 18 | | any taxpayer for tax years prior to 2013. Failure to pay all | 19 | | such taxes due during the grace period established under this | 20 | | Section shall invalidate the grace period for that taxpayer. | 21 | | The chief county assessment officer in a county with | 22 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 23 | | grace period with the tax bills for the second installment of | 24 | | taxes for the 2012 assessment year and (ii) as soon as possible | 25 | | after the effective date of this amendatory Act of the 98th | 26 | | General Assembly, publish notice of the grace period in a |
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| 1 | | newspaper of general circulation in the county. Notices shall | 2 | | include information on the grace period, its purpose, and the | 3 | | method in which to make payment. | 4 | | Taxpayers who are a party to any criminal investigation or | 5 | | to any civil or criminal litigation that is pending in any | 6 | | circuit court or appellate court, or in the Supreme Court of | 7 | | this State, for nonpayment, delinquency, or fraud in relation | 8 | | to any property tax imposed by any taxing district located in | 9 | | the State on the effective date of this amendatory Act of the | 10 | | 98th General Assembly may not take advantage of the grace | 11 | | period. | 12 | | A taxpayer who has claimed three or more homestead | 13 | | exemptions in error shall not be eligible for the grace period.
| 14 | | Section 99. Effective date. This Act takes effect June 1, | 15 | | 2013.".
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