Bill Text: IL HB4770 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the Property Tax Code. Provides that, if the county board of a county with fewer than 3,000,000 inhabitants passes an ordinance providing that provisions of the Code concerning erroneous homestead exemptions shall apply in that county, then those provisions shall apply in that county beginning in the first tax year to occur after the effective date of the ordinance. Contains provisions concerning an amnesty period for those counties.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4770 Detail]

Download: Illinois-2017-HB4770-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4770 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
35 ILCS 200/9-275
Amends the Property Tax Code. Provides that, if the county board of a county with fewer than 3,000,000 inhabitants passes an ordinance providing that provisions of the Code concerning erroneous homestead exemptions shall apply in that county, then those provisions shall apply in that county beginning in the first tax year to occur after the effective date of the ordinance. Contains provisions concerning an amnesty period for those counties.
LRB100 16501 HLH 31633 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4770 LRB100 16501 HLH 31633 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
Section 9-275 as follows:
(35 ILCS 200/9-275)
Sec. 9-275. Erroneous homestead exemptions.
(a) For purposes of this Section:
"Erroneous homestead exemption" means a homestead
exemption that was granted for real property in a taxable year
if the property was not eligible for that exemption in that
taxable year. If the taxpayer receives an erroneous homestead
exemption under a single Section of this Code for the same
property in multiple years, that exemption is considered a
single erroneous homestead exemption for purposes of this
Section. However, if the taxpayer receives erroneous homestead
exemptions under multiple Sections of this Code for the same
property, or if the taxpayer receives erroneous homestead
exemptions under the same Section of this Code for multiple
properties, then each of those exemptions is considered a
separate erroneous homestead exemption for purposes of this
Section.
"Homestead exemption" means an exemption under Section

HB4770 - 2 - LRB100 16501 HLH 31633 b
15-165 (veterans with disabilities), 15-167 (returning
veterans), 15-168 (persons with disabilities), 15-169
(standard homestead for veterans with disabilities), 15-170
(senior citizens), 15-172 (senior citizens assessment freeze),
15-175 (general homestead), 15-176 (alternative general
homestead), or 15-177 (long-time occupant).
"Erroneous exemption principal amount" means the total
difference between the property taxes actually billed to a
property index number and the amount of property taxes that
would have been billed but for the erroneous exemption or
exemptions.
"Qualified county" means a county with 3,000,000 or more
inhabitants and each county with fewer than 3,000,000
inhabitants for which an ordinance was passed in accordance
with subsection (k-5) of this Section.
"Taxpayer" means the property owner or leasehold owner that
erroneously received a homestead exemption upon property.
(b) Notwithstanding any other provision of law, in
qualified counties with 3,000,000 or more inhabitants, the
chief county assessment officer shall include the following
information with each assessment notice sent in a general
assessment year: (1) a list of each homestead exemption
available under Article 15 of this Code and a description of
the eligibility criteria for that exemption; (2) a list of each
homestead exemption applied to the property in the current
assessment year; (3) information regarding penalties and

HB4770 - 3 - LRB100 16501 HLH 31633 b
interest that may be incurred under this Section if the
taxpayer received an erroneous homestead exemption in a
previous taxable year; and (4) notice of the 60-day grace
period available under this subsection. If, within 60 days
after receiving his or her assessment notice, the taxpayer
notifies the chief county assessment officer that he or she
received an erroneous homestead exemption in a previous taxable
year, and if the taxpayer pays the erroneous exemption
principal amount, plus interest as provided in subsection (f),
then the taxpayer shall not be liable for the penalties
provided in subsection (f) with respect to that exemption.
(c) In qualified counties with 3,000,000 or more
inhabitants, when the chief county assessment officer
determines that one or more erroneous homestead exemptions was
applied to the property, the erroneous exemption principal
amount, together with all applicable interest and penalties as
provided in subsections (f) and (j), shall constitute a lien in
the name of the people of the county People of Cook County on
the property receiving the erroneous homestead exemption. Upon
becoming aware of the existence of one or more erroneous
homestead exemptions, the chief county assessment officer
shall cause to be served, by both regular mail and certified
mail, a notice of discovery as set forth in subsection (c-5).
The chief county assessment officer in a county with 3,000,000
or more inhabitants may cause a lien to be recorded against
property that (1) is located in the county and (2) received one

HB4770 - 4 - LRB100 16501 HLH 31633 b
or more erroneous homestead exemptions if, upon determination
of the chief county assessment officer, the taxpayer received:
(A) one or 2 erroneous homestead exemptions for real property,
including at least one erroneous homestead exemption granted
for the property against which the lien is sought, during any
of the 3 collection years immediately prior to the current
collection year in which the notice of discovery is served; or
(B) 3 or more erroneous homestead exemptions for real property,
including at least one erroneous homestead exemption granted
for the property against which the lien is sought, during any
of the 6 collection years immediately prior to the current
collection year in which the notice of discovery is served.
Prior to recording the lien against the property, the chief
county assessment officer shall cause to be served, by both
regular mail and certified mail, return receipt requested, on
the person to whom the most recent tax bill was mailed and the
owner of record, a notice of intent to record a lien against
the property. The chief county assessment officer shall cause
the notice of intent to record a lien to be served within 3
years from the date on which the notice of discovery was
served.
(c-5) The notice of discovery described in subsection (c)
shall: (1) identify, by property index number, the property for
which the chief county assessment officer has knowledge
indicating the existence of an erroneous homestead exemption;
(2) set forth the taxpayer's liability for principal, interest,

HB4770 - 5 - LRB100 16501 HLH 31633 b
penalties, and administrative costs including, but not limited
to, recording fees described in subsection (f); (3) inform the
taxpayer that he or she will be served with a notice of intent
to record a lien within 3 years from the date of service of the
notice of discovery; (4) inform the taxpayer that he or she may
pay the outstanding amount, plus interest, penalties, and
administrative costs at any time prior to being served with the
notice of intent to record a lien or within 30 days after the
notice of intent to record a lien is served; and (5) inform the
taxpayer that, if the taxpayer provided notice to the chief
county assessment officer as provided in subsection (d-1) of
Section 15-175 of this Code, upon submission by the taxpayer of
evidence of timely notice and receipt thereof by the chief
county assessment officer, the chief county assessment officer
will withdraw the notice of discovery and reissue a notice of
discovery in compliance with this Section in which the taxpayer
is not liable for interest and penalties for the current tax
year in which the notice was received.
For the purposes of this subsection (c-5):
"Collection year" means the year in which the first and
second installment of the current tax year is billed.
"Current tax year" means the year prior to the collection
year.
(d) The notice of intent to record a lien described in
subsection (c) shall: (1) identify, by property index number,
the property against which the lien is being sought; (2)

HB4770 - 6 - LRB100 16501 HLH 31633 b
identify each specific homestead exemption that was
erroneously granted and the year or years in which each
exemption was granted; (3) set forth the erroneous exemption
principal amount due and the interest amount and any penalty
and administrative costs due; (4) inform the taxpayer that he
or she may request a hearing within 30 days after service and
may appeal the hearing officer's ruling to the circuit court;
(5) inform the taxpayer that he or she may pay the erroneous
exemption principal amount, plus interest and penalties,
within 30 days after service; and (6) inform the taxpayer that,
if the lien is recorded against the property, the amount of the
lien will be adjusted to include the applicable recording fee
and that fees for recording a release of the lien shall be
incurred by the taxpayer. A lien shall not be filed pursuant to
this Section if the taxpayer pays the erroneous exemption
principal amount, plus penalties and interest, within 30 days
of service of the notice of intent to record a lien.
(e) The notice of intent to record a lien shall also
include a form that the taxpayer may return to the chief county
assessment officer to request a hearing. The taxpayer may
request a hearing by returning the form within 30 days after
service. The hearing shall be held within 90 days after the
taxpayer is served. The chief county assessment officer shall
promulgate rules of service and procedure for the hearing. The
chief county assessment officer must generally follow rules of
evidence and practices that prevail in the county circuit

HB4770 - 7 - LRB100 16501 HLH 31633 b
courts, but, because of the nature of these proceedings, the
chief county assessment officer is not bound by those rules in
all particulars. The chief county assessment officer shall
appoint a hearing officer to oversee the hearing. The taxpayer
shall be allowed to present evidence to the hearing officer at
the hearing. After taking into consideration all the relevant
testimony and evidence, the hearing officer shall make an
administrative decision on whether the taxpayer was
erroneously granted a homestead exemption for the taxable year
in question. The taxpayer may appeal the hearing officer's
ruling to the circuit court of the county where the property is
located as a final administrative decision under the
Administrative Review Law.
(f) A lien against the property imposed under this Section
shall be filed with the county recorder of deeds, but may not
be filed sooner than 60 days after the notice of intent to
record a lien was delivered to the taxpayer if the taxpayer
does not request a hearing, or until the conclusion of the
hearing and all appeals if the taxpayer does request a hearing.
If a lien is filed pursuant to this Section and the taxpayer
received one or 2 erroneous homestead exemptions during any of
the 3 collection years immediately prior to the current
collection year in which the notice of discovery is served,
then the erroneous exemption principal amount, plus 10%
interest per annum or portion thereof from the date the
erroneous exemption principal amount would have become due if

HB4770 - 8 - LRB100 16501 HLH 31633 b
properly included in the tax bill, shall be charged against the
property by the chief county assessment officer. However, if a
lien is filed pursuant to this Section and the taxpayer
received 3 or more erroneous homestead exemptions during any of
the 6 collection years immediately prior to the current
collection year in which the notice of discovery is served, the
erroneous exemption principal amount, plus a penalty of 50% of
the total amount of the erroneous exemption principal amount
for that property and 10% interest per annum or portion thereof
from the date the erroneous exemption principal amount would
have become due if properly included in the tax bill, shall be
charged against the property by the chief county assessment
officer. If a lien is filed pursuant to this Section, the
taxpayer shall not be liable for interest that accrues between
the date the notice of discovery is served and the date the
lien is filed. Before recording the lien with the county
recorder of deeds, the chief county assessment officer shall
adjust the amount of the lien to add administrative costs,
including but not limited to the applicable recording fee, to
the total lien amount.
(g) If a person received an erroneous homestead exemption
under Section 15-170 and: (1) the person was the spouse, child,
grandchild, brother, sister, niece, or nephew of the previous
taxpayer; and (2) the person received the property by bequest
or inheritance; then the person is not liable for the penalties
imposed under this Section for any year or years during which

HB4770 - 9 - LRB100 16501 HLH 31633 b
the chief county assessment officer did not require an annual
application for the exemption. However, that person is
responsible for any interest owed under subsection (f).
(h) If the erroneous homestead exemption was granted as a
result of a clerical error or omission on the part of the chief
county assessment officer, and if the taxpayer has paid the tax
bills as received for the year in which the error occurred,
then the interest and penalties authorized by this Section with
respect to that homestead exemption shall not be chargeable to
the taxpayer. However, nothing in this Section shall prevent
the collection of the erroneous exemption principal amount due
and owing.
(i) A lien under this Section is not valid as to (1) any
bona fide purchaser for value without notice of the erroneous
homestead exemption whose rights in and to the underlying
parcel arose after the erroneous homestead exemption was
granted but before the filing of the notice of lien; or (2) any
mortgagee, judgment creditor, or other lienor whose rights in
and to the underlying parcel arose before the filing of the
notice of lien. A title insurance policy for the property that
is issued by a title company licensed to do business in the
State showing that the property is free and clear of any liens
imposed under this Section shall be prima facie evidence that
the taxpayer is without notice of the erroneous homestead
exemption. Nothing in this Section shall be deemed to impair
the rights of subsequent creditors and subsequent purchasers

HB4770 - 10 - LRB100 16501 HLH 31633 b
under Section 30 of the Conveyances Act.
(j) When a lien is filed against the property pursuant to
this Section, the chief county assessment officer shall mail a
copy of the lien to the person to whom the most recent tax bill
was mailed and to the owner of record, and the outstanding
liability created by such a lien is due and payable within 30
days after the mailing of the lien by the chief county
assessment officer. This liability is deemed delinquent and
shall bear interest beginning on the day after the due date at
a rate of 1.5% per month or portion thereof. Payment shall be
made to the county treasurer. Upon receipt of the full amount
due, as determined by the chief county assessment officer, the
county treasurer shall distribute the amount paid as provided
in subsection (k). Upon presentment by the taxpayer to the
chief county assessment officer of proof of payment of the
total liability, the chief county assessment officer shall
provide in reasonable form a release of the lien. The release
of the lien provided shall clearly inform the taxpayer that it
is the responsibility of the taxpayer to record the lien
release form with the county recorder of deeds and to pay any
applicable recording fees.
(k) The county treasurer shall pay collected erroneous
exemption principal amounts, pro rata, to the taxing districts,
or their legal successors, that levied upon the subject
property in the taxable year or years for which the erroneous
homestead exemptions were granted, except as set forth in this

HB4770 - 11 - LRB100 16501 HLH 31633 b
Section. The county treasurer shall deposit collected
penalties and interest into a special fund established by the
county treasurer to offset the costs of administration of the
provisions of this Section by the chief county assessment
officer's office, as appropriated by the county board. If the
costs of administration of this Section exceed the amount of
interest and penalties collected in the special fund, the chief
county assessor shall be reimbursed by each taxing district or
their legal successors for those costs. Such costs shall be
paid out of the funds collected by the county treasurer on
behalf of each taxing district pursuant to this Section.
(k-5) If the county board of a county with fewer than
3,000,000 inhabitants passes an ordinance providing that the
provisions of this Section shall apply in that county, then
this Section shall apply in that county beginning in the first
tax year to occur after the effective date of the ordinance.
(l) The chief county assessment officer in a county with
3,000,000 or more inhabitants shall establish an amnesty period
for all taxpayers owing any tax due to an erroneous homestead
exemption granted in a tax year prior to the 2013 tax year. The
amnesty period shall begin on the effective date of this
amendatory Act of the 98th General Assembly and shall run
through December 31, 2013. If, during the amnesty period, the
taxpayer pays the entire arrearage of taxes due for tax years
prior to 2013, the county clerk shall abate and not seek to
collect any interest or penalties that may be applicable and

HB4770 - 12 - LRB100 16501 HLH 31633 b
shall not seek civil or criminal prosecution for any taxpayer
for tax years prior to 2013. Failure to pay all such taxes due
during the amnesty period established under this Section shall
invalidate the amnesty period for that taxpayer.
The chief county assessment officer in a county that passes
an ordinance under subsection (k-5) shall establish an amnesty
period for all taxpayers owing any tax due to an erroneous
homestead exemption granted in a tax year prior to the first
tax year in which this Section applies in that county. The
amnesty period shall begin on January 1 of the first tax year
for which this Section applies to the county and shall run
through December 31 of that tax year. If, during the amnesty
period, the taxpayer pays the entire arrearage of taxes, the
county clerk shall abate and not seek to collect any interest
or penalties that may be applicable and shall not seek civil or
criminal prosecution for any taxpayer for those tax years.
Failure to pay all such taxes due during the amnesty period
established under this Section shall invalidate the amnesty
period for that taxpayer.
The chief county assessment officer in a county with
3,000,000 or more inhabitants shall (i) mail notice of the
amnesty period with the tax bills for the second installment of
taxes for the 2012 assessment year and (ii) as soon as possible
after the effective date of this amendatory Act of the 98th
General Assembly, publish notice of the amnesty period in a
newspaper of general circulation in the county. Notices shall

HB4770 - 13 - LRB100 16501 HLH 31633 b
include information on the amnesty period, its purpose, and the
method by which to make payment.
The chief county assessment officer in a county that passes
an ordinance under subsection (k-5) shall (i) mail notice of
the amnesty period with the tax bills for the next installment
of taxes due after the ordinance is passed and (ii) as soon as
possible after the effective date of the ordinance, publish
notice of the amnesty period in a newspaper of general
circulation in the county. Notices shall include information on
the amnesty period, its purpose, and the method by which to
make payment.
Taxpayers who are a party to any criminal investigation or
to any civil or criminal litigation that is pending in any
circuit court or appellate court, or in the Supreme Court of
this State, for nonpayment, delinquency, or fraud in relation
to any property tax imposed by any taxing district located in
the State on the effective date of this amendatory Act of the
98th General Assembly (if the property is located in a county
with 3,000,000 or more inhabitants) or on the effective date of
the ordinance (if the property is subject to this Section by
operation of subsection (k-5)) may not take advantage of the
amnesty period.
A taxpayer who has claimed 3 or more homestead exemptions
in error shall not be eligible for the amnesty period
established under this subsection.
(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;

HB4770 - 14 - LRB100 16501 HLH 31633 b
98-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
7-27-15; 99-851, eff. 8-19-16.)