Full Text of SB0333 98th General Assembly
SB0333enr 98TH GENERAL ASSEMBLY |
| | SB0333 Enrolled | | LRB098 04618 HLH 34646 b |
|
| 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 |
| | | SB0333 Enrolled | - 2 - | LRB098 04618 HLH 34646 b |
|
| 1 | | 15-165 (disabled veterans), 15-167 (returning veterans), | 2 | | 15-168 (disabled persons), 15-169 (disabled veterans standard | 3 | | homestead), 15-170 (senior citizens), 15-172 (senior citizens | 4 | | assessment freeze), 15-175 (general homestead), 15-176 | 5 | | (alternative general homestead), or 15-177 (long-time | 6 | | occupant). | 7 | | "Erroneous exemption principal amount" means the total | 8 | | amount of property tax principal that would have been billed to | 9 | | a property index number but for the erroneous homestead | 10 | | exemption or exemptions a taxpayer received. | 11 | | "Taxpayer" means the property owner or leasehold owner that | 12 | | erroneously received a homestead exemption upon property. | 13 | | (b) Notwithstanding any other provision of law, in counties | 14 | | with 3,000,000 or more inhabitants, the chief county assessment | 15 | | officer shall include the following information with each | 16 | | assessment notice sent in a general assessment year: (1) a list | 17 | | of each homestead exemption available under Article 15 of this | 18 | | Code and a description of the eligibility criteria for that | 19 | | exemption; (2) a list of each homestead exemption applied to | 20 | | the property in the current assessment year; (3) information | 21 | | regarding penalties and interest that may be incurred under | 22 | | this Section if the property owner received an erroneous | 23 | | homestead exemption in a previous taxable year; and (4) notice | 24 | | of the 60-day grace period available under this subsection. If, | 25 | | within 60 days after receiving his or her assessment notice, | 26 | | the property owner notifies the chief county assessment officer |
| | | SB0333 Enrolled | - 3 - | LRB098 04618 HLH 34646 b |
|
| 1 | | that he or she received an erroneous homestead exemption in a | 2 | | previous assessment year, and if the property owner pays the | 3 | | erroneous exemption principal amount of back taxes due and | 4 | | owing with respect to that exemption , plus interest as provided | 5 | | in subsection (f), then the property owner shall not be liable | 6 | | for the penalties provided in subsection (f) with respect to | 7 | | that exemption. | 8 | | (c) In counties with 3,000,000 or more inhabitants, when | 9 | | the chief county assessment officer determines that one or more | 10 | | erroneous homestead exemptions was applied to the property, the | 11 | | erroneous exemption principal amount, together with all | 12 | | applicable interest and penalties as provided in subsections | 13 | | (f) and (j), shall constitute a lien in the name of the People | 14 | | of Cook County on the property receiving the erroneous | 15 | | homestead exemption. The chief county assessment officer in a | 16 | | county with 3,000,000 or more inhabitants may cause a lien to | 17 | | be recorded against property that (1) is located in the county | 18 | | and (2) received one or more erroneous homestead exemptions if, | 19 | | upon determination of the chief county assessment officer, the | 20 | | property owner received: (A) one or 2 erroneous homestead | 21 | | exemptions for real property, including at least one erroneous | 22 | | homestead exemption granted for the property against which the | 23 | | lien is sought, during any of the 3 assessment years | 24 | | immediately prior to the assessment year in which the notice of | 25 | | intent to record a at tax lien is served; or (B) (2) 3 or more | 26 | | erroneous homestead exemptions for real property, including at |
| | | SB0333 Enrolled | - 4 - | LRB098 04618 HLH 34646 b |
|
| 1 | | least one erroneous homestead exemption granted for the | 2 | | property against which the lien is sought, during any of the 6 | 3 | | assessment years immediately prior to the assessment year in | 4 | | which the notice of intent to record a at tax lien is served. | 5 | | Prior to recording the lien against the property, the chief | 6 | | county assessment officer shall cause to be served, by both | 7 | | regular mail and certified mail, return receipt requested, on | 8 | | the person to whom the most recent tax bill was mailed and the | 9 | | owner of record, a notice of intent to record a tax lien | 10 | | against the property. | 11 | | (d) The notice of intent to record a tax lien described in | 12 | | subsection (c) shall: (1) identify, by property index number, | 13 | | the property against which the lien is being sought; (2) | 14 | | identify each specific homestead exemption that was | 15 | | erroneously granted and the year or years in which each | 16 | | exemption was granted; (3) set forth the erroneous exemption | 17 | | principal amount due and the interest amount and any penalty | 18 | | due the arrearage of taxes that would have been due if not for | 19 | | the erroneous homestead exemptions ; (4) inform the taxpayer | 20 | | property owner that he or she may request a hearing within 30 | 21 | | days after service and may appeal the hearing officer's ruling | 22 | | to the circuit court; and (5) inform the taxpayer property | 23 | | owner that he or she may pay the erroneous exemption principal | 24 | | amount due , plus interest and penalties, within 30 days after | 25 | | service. A lien shall not be filed pursuant to this Section if | 26 | | the property owner pays the erroneous exemption principal |
| | | SB0333 Enrolled | - 5 - | LRB098 04618 HLH 34646 b |
|
| 1 | | amount, plus penalties and interest, within 30 days of service | 2 | | of the notice of intent to record a lien. | 3 | | (e) The notice shall must also include a form that the | 4 | | property owner may return to the chief county assessment | 5 | | officer to request a hearing. The property owner may request a | 6 | | hearing by returning the form within 30 days after service. The | 7 | | hearing shall be held within 90 days after the property owner | 8 | | is served. The chief county assessment officer shall promulgate | 9 | | rules of service and procedure for the hearing. The chief | 10 | | county assessment officer must generally follow rules of | 11 | | evidence and practices that prevail in the county circuit | 12 | | courts, but, because of the nature of these proceedings, the | 13 | | chief county assessment officer is not bound by those rules in | 14 | | all particulars. The chief county assessment officer shall | 15 | | appoint a hearing officer to oversee the hearing. The property | 16 | | owner shall be allowed to present evidence to the hearing | 17 | | officer at the hearing. After taking into consideration all the | 18 | | relevant testimony and evidence, the hearing officer shall make | 19 | | an administrative decision on whether the property owner was | 20 | | erroneously granted a homestead exemption for the assessment | 21 | | year in question. The property owner may appeal the hearing | 22 | | officer's ruling to the circuit court of the county where the | 23 | | property is located as a final administrative decision under | 24 | | the Administrative Review Law. | 25 | | (f) A lien against the property imposed under this Section | 26 | | shall be filed with the county recorder of deeds, but may not |
| | | SB0333 Enrolled | - 6 - | LRB098 04618 HLH 34646 b |
|
| 1 | | be filed sooner than 60 days after the notice was delivered to | 2 | | the property owner if the property owner does not request a | 3 | | hearing, or until the conclusion of the hearing and all appeals | 4 | | if the property owner does request a hearing. If a lien is | 5 | | filed pursuant to this Section and the property owner received | 6 | | one or 2 erroneous homestead exemptions during any of the 3 | 7 | | assessment years immediately prior to the assessment year in | 8 | | which the notice of intent to record a at tax lien is served, | 9 | | then the erroneous exemption principal amount arrearages of | 10 | | taxes that might have been assessed for that property , plus 10% | 11 | | interest per annum or portion thereof from the date the | 12 | | erroneous exemption principal amount would have become due if | 13 | | properly included in the tax bill , shall be charged against the | 14 | | property by the chief county assessment officer treasurer . | 15 | | However, if a lien is filed pursuant to this Section and the | 16 | | property owner received 3 or more erroneous homestead | 17 | | exemptions during any of the 6 assessment years immediately | 18 | | prior to the assessment year in which the notice of intent to | 19 | | record a at tax lien is served, the erroneous exemption | 20 | | principal amount arrearages of taxes that might have been | 21 | | assessed for that property , plus a penalty of 50% of the total | 22 | | amount of the erroneous exemption principal amount unpaid taxes | 23 | | for each year for that property and 10% interest per annum or | 24 | | portion thereof from the date the erroneous exemption principal | 25 | | amount would have become due if properly included in the tax | 26 | | bill , shall be charged against the property by the chief county |
| | | SB0333 Enrolled | - 7 - | LRB098 04618 HLH 34646 b |
|
| 1 | | assessment officer treasurer . | 2 | | (g) If a person received an erroneous homestead exemption | 3 | | under Section 15-170 and: (1) the person was the spouse, child, | 4 | | grandchild, brother, sister, niece, or nephew of the previous | 5 | | property owner; and (2) the person received the property by | 6 | | bequest or inheritance; then the person is not liable for the | 7 | | penalties imposed under this Section subsection for any year or | 8 | | years during which the chief county assessment officer did not | 9 | | require an annual application for the exemption. However, that | 10 | | person is responsible for any interest owed under subsection | 11 | | (f). | 12 | | (h) 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 property owner has paid | 15 | | the its tax bills as received for the year in which the error | 16 | | occurred, then the interest and penalties authorized by this | 17 | | Section with respect to that homestead exemption shall not be | 18 | | chargeable to the property owner. However, nothing in this | 19 | | Section shall prevent the collection of the erroneous exemption | 20 | | principal amount of back taxes due and owing. | 21 | | (i) A lien under this Section is not valid as to (1) any | 22 | | bona fide purchaser for value without notice of the erroneous | 23 | | homestead exemption whose rights in and to the underlying | 24 | | parcel arose after the erroneous homestead exemption was | 25 | | granted but before the filing of the notice of lien; or (2) any | 26 | | mortgagee, judgment creditor, or other lienor whose rights in |
| | | SB0333 Enrolled | - 8 - | LRB098 04618 HLH 34646 b |
|
| 1 | | and to the underlying parcel arose before the filing of the | 2 | | notice of lien. A title insurance policy for the property that | 3 | | is issued by a title company licensed to do business in the | 4 | | State showing that the property is free and clear of any liens | 5 | | imposed under this Section shall be prima facie evidence that | 6 | | the property owner is without notice of the erroneous homestead | 7 | | exemption. Nothing in this Section shall be deemed to impair | 8 | | the rights of subsequent creditors and subsequent purchasers | 9 | | under Section 30 of the Conveyances Act. | 10 | | (j) When a lien is filed against the property pursuant to | 11 | | this Section, the chief county assessment officer shall mail a | 12 | | copy of the lien to the person to whom the most recent tax bill | 13 | | was mailed and to the owner of record, and the outstanding | 14 | | liability created by such a lien is due and payable within 30 | 15 | | days after the mailing of the lien by the chief county | 16 | | assessment officer. Payment shall be made to the chief county | 17 | | treasurer. Upon assessment officer who shall, upon receipt of | 18 | | the full amount due, as determined by the chief county | 19 | | assessment officer, the county treasurer shall distribute the | 20 | | amount paid as provided in subsection (k). Upon presentment by | 21 | | the property owner to the chief county assessment officer of | 22 | | proof of payment of the total liability, the chief county | 23 | | assessment officer shall provide in reasonable form a release | 24 | | of the lien and shall transmit the funds received to the county | 25 | | treasurer for distribution as provided in subsection (i) of | 26 | | this Section . This liability is deemed delinquent and shall |
| | | SB0333 Enrolled | - 9 - | LRB098 04618 HLH 34646 b |
|
| 1 | | bear interest beginning on the day after the due date at a rate | 2 | | of 1.5% per month or portion thereof . | 3 | | (k) The county treasurer shall pay collected erroneous | 4 | | exemption principal amounts, pro rata, unpaid taxes shall be | 5 | | paid to the appropriate taxing districts , or their legal | 6 | | successors, that levied upon the subject property in the | 7 | | assessment year or years for which the erroneous homestead | 8 | | exemptions were granted. The county treasurer shall pay | 9 | | collected interest . Interest shall be paid to the county where | 10 | | the property is located. The county treasurer shall deposit | 11 | | collected penalties into a special fund established by the | 12 | | county treasurer to offset The penalty shall be paid to the | 13 | | chief county assessment officer's office for the costs of | 14 | | administration of the provisions of this amendatory Act of the | 15 | | 98th General Assembly by the chief county assessment officer's | 16 | | office, as appropriated by the county board . | 17 | | (l) The chief county assessment officer in a county with | 18 | | 3,000,000 or more inhabitants shall establish an amnesty period | 19 | | for all taxpayers owing any tax due to an erroneous homestead | 20 | | exemption granted in a tax year prior to the 2013 tax year. The | 21 | | amnesty period shall begin on the effective date of this | 22 | | amendatory Act of the 98th General Assembly and shall run | 23 | | through December 31, 2013. If, during the amnesty period, the | 24 | | taxpayer pays the entire arrearage of taxes due for tax years | 25 | | prior to 2013, the county clerk shall abate and not seek to | 26 | | collect any interest or penalties that may be applicable and |
| | | SB0333 Enrolled | - 10 - | LRB098 04618 HLH 34646 b |
|
| 1 | | shall not seek civil or criminal prosecution for any taxpayer | 2 | | for tax years prior to 2013. Failure to pay all such taxes due | 3 | | during the amnesty period established under this Section shall | 4 | | invalidate the amnesty period for that taxpayer. | 5 | | The chief county assessment officer in a county with | 6 | | 3,000,000 or more inhabitants shall (i) mail notice of the | 7 | | amnesty period with the tax bills for the second installment of | 8 | | taxes for the 2012 assessment year and (ii) as soon as possible | 9 | | after the effective date of this amendatory Act of the 98th | 10 | | General Assembly, publish notice of the amnesty period in a | 11 | | newspaper of general circulation in the county. Notices shall | 12 | | include information on the amnesty period, its purpose, and the | 13 | | method by in which to make payment. | 14 | | Taxpayers who are a party to any criminal investigation or | 15 | | to any civil or criminal litigation that is pending in any | 16 | | circuit court or appellate court, or in the Supreme Court of | 17 | | this State, for nonpayment, delinquency, or fraud in relation | 18 | | to any property tax imposed by any taxing district located in | 19 | | the State on the effective date of this amendatory Act of the | 20 | | 98th General Assembly may not take advantage of the amnesty | 21 | | period. | 22 | | A taxpayer who has claimed 3 or more homestead exemptions | 23 | | in error shall not be eligible for the amnesty period | 24 | | established under this subsection.
| 25 | | (Source: P.A. 98-93, eff. 7-16-13; revised 9-11-13.) |
|