Bill Text: IL HB3258 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Makes changes concerning interest penalties for omitted property, forfeited taxes, and delinquent and unpaid taxes. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2025-01-07 - Session Sine Die [HB3258 Detail]

Download: Illinois-2023-HB3258-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3258 Introduced , by Rep. Kam Buckner SYNOPSIS AS INTRODUCED:
35 ILCS 200/9-260
35 ILCS 200/18-250
35 ILCS 200/21-15
35 ILCS 200/21-25
35 ILCS 200/21-45
Amends the Property Tax Code. Makes changes concerning interest penalties for omitted property, forfeited taxes, and delinquent and unpaid taxes. Effective immediately.
LRB103 26864 HLH 53228 b
A BILL FOR
HB3258 LRB103 26864 HLH 53228 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 9-260, 18-250, 21-15, 21-25, and 21-45 as follows:
(35 ILCS 200/9-260)
Sec. 9-260. Assessment of omitted property; counties of
3,000,000 or more.
(a) After signing the affidavit, the county assessor shall
have power, when directed by the board of appeals (until the
first Monday in December 1998 and the board of review
beginning the first Monday in December 1998 and thereafter),
or on his or her own initiative, subject to the limitations of
Sections 9-265 and 9-270, to assess properties which may have
been omitted from assessments for the current year and not
more than 3 years prior to the current year for which the
property was liable to be taxed, and for which the tax has not
been paid, but only on notice and an opportunity to be heard in
the manner and form required by law, and shall enter the
assessments upon the assessment books. Any notice shall
include (i) a request that a person receiving the notice who is
not the current taxpayer contact the office of the county
assessor and explain that the person is not the current

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taxpayer, which contact may be made on the telephone, in
writing, or in person upon receipt of the notice, and (ii) the
name, address, and telephone number of the appropriate
personnel in the office of the county assessor to whom the
response should be made. Any time period for the review of an
omitted assessment included in the notice shall be consistent
with the time period established by the assessor in accordance
with subsection (a) of Section 12-55. No charge for tax of
previous years shall be made against any property if (1) the
assessor failed to notify the board of review of the omitted
assessment in accordance with subsection (a-1) of this
Section; (2) the property was last assessed as unimproved, the
owner of such property gave notice of subsequent improvements
and requested a reassessment as required by Section 9-180, and
reassessment of the property was not made within the 16 month
period immediately following the receipt of that notice; (3)
the owner of the property gave notice as required by Section
9-265; (4) the assessor received a building permit for the
property evidencing that new construction had occurred or was
occurring on the property but failed to list the improvement
on the tax rolls; (5) the assessor received a plat map, plat of
survey, ALTA survey, mortgage survey, or other similar
document containing the omitted property but failed to list
the improvement on the tax rolls; (6) the assessor received a
real estate transfer declaration indicating a sale from an
exempt property owner to a non-exempt property owner but

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failed to list the property on the tax rolls; or (7) the
property was the subject of an assessment appeal before the
assessor or the board of review that had included the intended
omitted property as part of the assessment appeal and provided
evidence of its market value.
(a-1) After providing notice and an opportunity to be
heard as required by subsection (a) of this Section, the
assessor shall render a decision on the omitted assessment,
whether or not the omitted assessment was contested, and shall
mail a notice of the decision to the taxpayer of record or to
the party that contested the omitted assessment. The notice of
decision shall contain a statement that the decision may be
appealed to the board of review. The decision and all evidence
used in the decision shall be transmitted by the assessor to
the board of review on or before the dates specified in
accordance with Section 16-110.
(b) Any taxes based on the omitted assessment of a
property pursuant to Sections 9-260 through 9-270 and Sections
16-135 and 16-140 shall be prepared and mailed at the same time
as the estimated first installment property tax bill for the
preceding year (as described in Section 21-30) is prepared and
mailed. The omitted assessment tax bill is not due until the
date on which the second installment property tax bill for the
preceding year becomes due. The omitted assessment tax bill
shall be deemed delinquent and shall bear interest beginning
on the day after the due date of the second installment (as

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described in Section 21-25). Any taxes for omitted assessments
deemed delinquent after the due date of the second installment
tax bill shall bear interest, until paid or forfeited (as
described in Section 21-25), at the rate of 1.5% per month or
portion thereof for tax years prior to 2023 and at the rate of
0.75% per month or portion thereof for tax years 2023 and
thereafter until paid or forfeited (as described in Section
21-25).
(c) The assessor shall have no power to change the
assessment or alter the assessment books in any other manner
or for any other purpose so as to change or affect the taxes in
that year, except as ordered by the board of appeals (until the
first Monday in December 1998 and the board of review
beginning the first Monday in December 1998 and thereafter).
The county assessor shall make all changes and corrections
ordered by the board of appeals (until the first Monday in
December 1998 and the board of review beginning the first
Monday in December 1998 and thereafter). The county assessor
may for the purpose of revision by the board of appeals (until
the first Monday in December 1998 and the board of review
beginning the first Monday in December 1998 and thereafter)
certify the assessment books for any town or taxing district
after or when such books are completed.
(Source: P.A. 96-1553, eff. 3-10-11.)
(35 ILCS 200/18-250)

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Sec. 18-250. Additions to forfeited taxes and unpaid
special assessments; fee for estimate.
(a) When any property has been forfeited for taxes or
special assessments, the clerk shall compute the amount of
back taxes and special assessments, interest, statutory costs,
and printer's fees remaining due, with one year's interest on
all taxes forfeited, and enter them upon the collector's books
as separate items. Except as otherwise provided in Section
21-375, the aggregate so computed shall be collected in the
same manner as the taxes on other property for that year. The
county clerk shall examine the forfeitures, and strike all
errors and make corrections as necessary. In counties with
less than 3,000,000 inhabitants, interest Interest added to
forfeitures under this Section shall be at the rate of 12% per
year. In counties with 3,000,000 or more inhabitants, interest
shall accrue at the rate of 12% per year for tax years prior to
2023 and at the rate of 0.75% per month or portion thereof for
tax years 2023 and thereafter.
(b) In counties with 3,000,000 or more inhabitants, taxes
first extended for prior years, or previously extended for
prior years for which application for judgment and order of
sale is not already pending, shall be added to the tax of the
current year, with interest and costs as provided by law.
Forfeitures shall not be so added, but they shall remain a lien
on the property upon which they were charged until paid or sold
as provided by law. There shall be added to such forfeitures

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annually the same interest as would be added if forfeited
annually, until paid or sold, and the addition of each year's
interest shall be considered a separate forfeiture.
Forfeitures may be redeemed in the manner provided in Section
21-370 or 21-375. Taxes and special assessments for which
application for judgment and order of sale is pending, or
entered but not enforced for any reason, shall not be added to
the tax for the current year. However, if the taxes and special
assessments remain unpaid, the property, shall be advertised
and sold under judgments and orders of sale to be entered in
pending applications, or already entered in prior
applications, including judgments and orders of sale under
which the purchaser fails to complete his or her purchase.
(c) In counties with 3,000,000 or more inhabitants, on or
before January 1, 2001 and during each year thereafter, the
county clerk shall compute the amount of taxes on each
property that remain due or forfeited for any year prior to the
current year and have not become subject to Sections 20-180
through 20-190, and the clerk shall enter the same upon the
collector's warrant books of the current and all following
years as separate items in a suitable column. The county clerk
shall examine the collector's warrant books and the Tax
Judgment, Sale, Redemption and Forfeiture records for the
appropriate years and may take any other actions as the clerk
finds to be necessary or convenient in order to comply with
this subsection. On and after January 1, 2001, any taxes for

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any year remaining due or forfeited against real property in
such county not entered on the current collector's warrant
books shall be deemed uncollectible and void, but shall not be
subject to the posting or other requirements of Sections
20-180 through 20-190.
(d) In counties with 100,000 or more inhabitants, the
county clerk shall, when making the annual collector's books,
in a suitable column, insert and designate previous
forfeitures of general taxes by the word "forfeiture", to be
stamped opposite each property forfeited at the last previous
tax sale for general taxes and not redeemed or purchased
previous to the completion of the collector's books. The
collectors of general taxes shall stamp upon all bills
rendered and receipts given the information on the collector's
books regarding forfeiture of general taxes, and the stamped
notation shall also refer the recipient to the county clerk
for full information. The county clerk shall be allowed to
collect from the person requesting an estimate of costs of
redemption of a forfeited property, the fee provided by law.
(Source: P.A. 91-668, eff. 12-22-99.)
(35 ILCS 200/21-15)
Sec. 21-15. General tax due dates; default by mortgage
lender. Except as otherwise provided in this Section or
Section 21-40, all property upon which the first installment
of taxes remains unpaid on the later of (i) June 1 or (ii) the

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day after the date specified on the real estate tax bill as the
first installment due date annually shall be deemed delinquent
and shall bear interest after that date at the rate of 1.5% 1
1/2% per month or portion thereof in counties with less than
3,000,000 inhabitants. In counties with 3,000,000 or more
inhabitants, interest shall accrue on unpaid taxes at the rate
of 1.5% per month or portion thereof for tax years prior to
2023 and at the rate of 0.75% per month or portion thereof for
tax years 2023 and thereafter. Except as otherwise provided in
this Section or Section 21-40, all property upon which the
second installment of taxes remains due and unpaid on the
later of (i) September 1 or (ii) the day after the date
specified on the real estate tax bill as the second
installment due date, annually, shall be deemed delinquent and
shall bear interest after that date at the same interest rate.
Notwithstanding any other provision of law, if a taxpayer owes
an arrearage of taxes due to an administrative error, and if
the county collector sends a separate bill for that arrearage
as provided in Section 14-41, then any part of the arrearage of
taxes that remains unpaid on the day after the due date
specified on that tax bill shall be deemed delinquent and
shall bear interest after that date at the rate of 1 1/2% per
month or portion thereof. All interest collected shall be paid
into the general fund of the county. Payment received by mail
and postmarked on or before the required due date is not
delinquent.

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Property not subject to the interest charge in Section
9-260 or Section 9-265 shall also not be subject to the
interest charge imposed by this Section until such time as the
owner of the property receives actual notice of and is billed
for the principal amount of back taxes due and owing.
If an Illinois resident who is a member of the Illinois
National Guard or a reserve component of the armed forces of
the United States and who has an ownership interest in
property taxed under this Act is called to active duty for
deployment outside the continental United States and is on
active duty on the due date of any installment of taxes due
under this Act, he or she shall not be deemed delinquent in the
payment of the installment and no interest shall accrue or be
charged as a penalty on the installment until 180 days after
that member returns from active duty. To be deemed not
delinquent in the payment of an installment of taxes and any
interest on that installment, the reservist or guardsperson
must make a reasonable effort to notify the county clerk and
the county collector of his or her activation to active duty
and must notify the county clerk and the county collector
within 180 days after his or her deactivation and provide
verification of the date of his or her deactivation. An
installment of property taxes on the property of any reservist
or guardsperson who fails to provide timely notice and
verification of deactivation to the county clerk is subject to
interest and penalties as delinquent taxes under this Code

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from the date of deactivation.
Notwithstanding any other provision of law, when any
unpaid taxes become delinquent under this Section through the
fault of the mortgage lender, (i) the interest assessed under
this Section for delinquent taxes shall be charged against the
mortgage lender and not the mortgagor and (ii) the mortgage
lender shall pay the taxes, redeem the property and take all
necessary steps to remove any liens accruing against the
property because of the delinquency. In the event that more
than one entity meets the definition of mortgage lender with
respect to any mortgage, the interest shall be assessed
against the mortgage lender responsible for servicing the
mortgage. Unpaid taxes shall be deemed delinquent through the
fault of the mortgage lender only if: (a) the mortgage lender
has received all payments due the mortgage lender for the
property being taxed under the written terms of the mortgage
or promissory note secured by the mortgage, (b) the mortgage
lender holds funds in escrow to pay the taxes, and (c) the
funds are sufficient to pay the taxes after deducting all
amounts reasonably anticipated to become due for all hazard
insurance premiums and mortgage insurance premiums and any
other assessments to be paid from the escrow under the terms of
the mortgage. For purposes of this Section, an amount is
reasonably anticipated to become due if it is payable within
12 months from the time of determining the sufficiency of
funds held in escrow. Unpaid taxes shall not be deemed

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delinquent through the fault of the mortgage lender if the
mortgage lender was directed in writing by the mortgagor not
to pay the property taxes, or if the failure to pay the taxes
when due resulted from inadequate or inaccurate parcel
information provided by the mortgagor, a title or abstract
company, or by the agency or unit of government assessing the
tax.
(Source: P.A. 97-944, eff. 8-10-12; 98-286, eff. 1-1-14.)
(35 ILCS 200/21-25)
Sec. 21-25. Due dates; accelerated billing in counties of
3,000,000 or more. Except as hereinafter provided and as
provided in Section 21-40, in counties with 3,000,000 or more
inhabitants in which the accelerated method of billing and
paying taxes provided for in Section 21-30 is in effect, the
estimated first installment of unpaid taxes shall be deemed
delinquent and shall bear interest after March 1 and until
paid or forfeited, at the rate of 1.5% 1 1/2% per month or
portion thereof for tax years prior to 2023 and at the rate of
0.75% per month or portion thereof for tax years 2023 and
thereafter until paid or forfeited. For tax year 2010, the
estimated first installment of unpaid taxes shall be deemed
delinquent and shall bear interest after April 1 at the rate of
1.5% per month or portion thereof until paid or forfeited. For
tax year 2022, the estimated first installment of unpaid taxes
shall be deemed delinquent and shall bear interest after April

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1, 2023 at the rate of 1.5% per month or portion thereof until
paid or forfeited. For all tax years, the second installment
of unpaid taxes shall be deemed delinquent and shall bear
interest after August 1 annually at the same interest rate
until paid or forfeited. Notwithstanding any other provision
of law, if a taxpayer owes an arrearage of taxes due to an
administrative error, and if the county collector sends a
separate bill for that arrearage as provided in Section 14-41,
then any part of the arrearage of taxes that remains unpaid on
the day after the due date specified on that tax bill shall be
deemed delinquent and shall bear interest after that date at
the rate of 1.5% 1 1/2% per month or portion thereof for tax
years prior to 2023 and at the rate of 0.75% per month or
portion thereof for tax year 2023 and thereafter.
If the county board elects by ordinance adopted prior to
July 1 of a levy year to provide for taxes to be paid in 4
installments, each installment for that levy year and each
subsequent year shall be deemed delinquent and shall begin to
bear interest 30 days after the date specified by the
ordinance for mailing bills and until paid of forfeited , at
the rate of 1.5% 1 1/2% per month or portion thereof for tax
years prior to 2023 and at the rate of 0.75% per month or
portion thereof for tax years 2023 and thereafter , until paid
or forfeited.
Payment received by mail and postmarked on or before the
required due date is not delinquent.

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Taxes levied on homestead property in which a member of
the National Guard or reserves of the armed forces of the
United States who was called to active duty on or after August
1, 1990, and who has an ownership interest, shall not be deemed
delinquent and no interest shall accrue or be charged as a
penalty on such taxes due and payable in 1991 or 1992 until one
year after that member returns to civilian status.
If an Illinois resident who is a member of the Illinois
National Guard or a reserve component of the armed forces of
the United States and who has an ownership interest in
property taxed under this Act is called to active duty for
deployment outside the continental United States and is on
active duty on the due date of any installment of taxes due
under this Act, he or she shall not be deemed delinquent in the
payment of the installment and no interest shall accrue or be
charged as a penalty on the installment until 180 days after
that member returns to civilian status. To be deemed not
delinquent in the payment of an installment of taxes and any
interest on that installment, the reservist or guardsperson
must make a reasonable effort to notify the county clerk and
the county collector of his or her activation to active duty
and must notify the county clerk and the county collector
within 180 days after his or her deactivation and provide
verification of the date of his or her deactivation. An
installment of property taxes on the property of any reservist
or guardsperson who fails to provide timely notice and

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verification of deactivation to the county clerk is subject to
interest and penalties as delinquent taxes under this Code
from the date of deactivation.
(Source: P.A. 102-1112, eff. 12-21-22.)
(35 ILCS 200/21-45)
Sec. 21-45. Failure to issue tax bill in prior year. In the
event no tax bill was issued as provided in Section 21-30, on
any property in any previous year for any reason, one tax bill
shall be prepared and mailed by July 1 of the year subsequent
to the year in which no tax bill was issued, and taxes on that
property for that year only shall bear interest after the
first day of August of that year and until paid or forfeited at
the rate of 1.5% 1 1/2% per month or portion thereof for tax
years prior to 2023 and at the rate of 0.75% per month or
portion thereof for tax years 2023 and thereafter until paid
or forfeited.
(Source: P.A. 87-17; 88-455.)
Section 99. Effective date. This Act takes effect upon
becoming law.