Bill Text: IL SB0041 | 2013-2014 | 98th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Property Tax Code. Allows the chief county assessment officer to record a tax lien against property that was granted one or more erroneous homestead exemptions. Contains provisions concerning notice, hearings, and penalties. Effective June 1, 2013.
Spectrum: Strong Partisan Bill (Democrat 21-2)
Status: (Passed) 2013-07-17 - Public Act . . . . . . . . . 98-0093 [SB0041 Detail]
Download: Illinois-2013-SB0041-Introduced.html
Bill Title: Amends the Property Tax Code. Allows the chief county assessment officer to record a tax lien against property that was granted one or more erroneous homestead exemptions. Contains provisions concerning notice, hearings, and penalties. Effective June 1, 2013.
Spectrum: Strong Partisan Bill (Democrat 21-2)
Status: (Passed) 2013-07-17 - Public Act . . . . . . . . . 98-0093 [SB0041 Detail]
Download: Illinois-2013-SB0041-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by adding | ||||||||||||||||||||||||
5 | Section 9-275 as follows:
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6 | (35 ILCS 200/9-275 new) | ||||||||||||||||||||||||
7 | Sec. 9-275. Erroneous homestead exemptions. | ||||||||||||||||||||||||
8 | (a) If, upon determination by the chief county assessment | ||||||||||||||||||||||||
9 | officer, any person or entity that was not eligible to receive | ||||||||||||||||||||||||
10 | a homestead exemption under Article 15 of this Code was granted | ||||||||||||||||||||||||
11 | one homestead exemption in error for real property in any year | ||||||||||||||||||||||||
12 | or years not to exceed the 3 assessment years prior to the | ||||||||||||||||||||||||
13 | assessment year in which the determination is made, then the | ||||||||||||||||||||||||
14 | chief county assessment officer may cause to be served, by both | ||||||||||||||||||||||||
15 | regular mail and certified mail, return receipt requested, on | ||||||||||||||||||||||||
16 | the person to whom the most recent tax bill was mailed and the | ||||||||||||||||||||||||
17 | owner of record, a notice of intent to record a tax lien | ||||||||||||||||||||||||
18 | against the property with respect to which the erroneous | ||||||||||||||||||||||||
19 | homestead exemption was granted. | ||||||||||||||||||||||||
20 | (b) If, upon determination by the chief county assessment | ||||||||||||||||||||||||
21 | officer, any person or entity that was not eligible to receive | ||||||||||||||||||||||||
22 | a homestead exemption under Article 15 of this Code was granted | ||||||||||||||||||||||||
23 | 2 homestead exemptions in error for real property in any year |
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1 | or years not to exceed the 3 assessment years prior to the | ||||||
2 | assessment year in which the determination is made, then the | ||||||
3 | chief county assessment officer may cause to be served, by both | ||||||
4 | regular mail and certified mail, return receipt requested, on | ||||||
5 | the person to whom the most recent tax bill was mailed and the | ||||||
6 | owner of record, a notice of intent to record a tax lien | ||||||
7 | against the property with respect to which the erroneous | ||||||
8 | homestead exemption was granted. | ||||||
9 | (c) If, upon determination by the chief county assessment | ||||||
10 | officer, any person or entity that was not eligible to receive | ||||||
11 | a homestead exemption under Article 15 of this Code was granted | ||||||
12 | 3 or more homestead exemptions in error for real property in | ||||||
13 | any year or years not to exceed the 6 assessment years prior to | ||||||
14 | the assessment year in which the determination is made, then | ||||||
15 | the chief county assessment officer may cause to be served, by | ||||||
16 | both regular mail and certified mail, return receipt requested, | ||||||
17 | on the person to whom the most recent tax bill was mailed and | ||||||
18 | the owner of record, a notice of intent to record a tax lien | ||||||
19 | against the property with respect to which the erroneous | ||||||
20 | homestead exemption was granted. | ||||||
21 | (d) The notice of intent to record a tax lien described in | ||||||
22 | subsections (a), (b), and (c) of this Section shall identify | ||||||
23 | the property against which the lien is being sought and shall | ||||||
24 | identify the assessment years in which the erroneous homestead | ||||||
25 | exemption was granted. | ||||||
26 | In counties with 3,000,000 or more inhabitants, the notice |
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1 | must also include a form that the property owner may return to | ||||||
2 | the chief county assessment officer to request a hearing. The | ||||||
3 | property owner may request a hearing by returning the form | ||||||
4 | within 30 days after service. The hearing shall be held within | ||||||
5 | 90 days after the property owner is served. The chief county | ||||||
6 | assessment officer shall promulgate rules of service and | ||||||
7 | procedure for the hearing. The chief county assessment officer | ||||||
8 | must generally follow rules of evidence and practices that | ||||||
9 | prevail in the county circuit courts, but, because of the | ||||||
10 | nature of these proceedings, the chief county assessment | ||||||
11 | officer is not bound by those rules in all particulars. The | ||||||
12 | chief county assessment officer shall appoint a hearing officer | ||||||
13 | to oversee the hearing. The property owner shall be allowed to | ||||||
14 | present evidence to the hearing officer at the hearing. After | ||||||
15 | taking into consideration all the relevant testimony and | ||||||
16 | evidence, the hearing officer shall make an administrative | ||||||
17 | decision on whether the property owner was erroneously granted | ||||||
18 | a homestead exemption for the assessment year or years in | ||||||
19 | question. The property owner may appeal the hearing officer's | ||||||
20 | ruling to the circuit court of the county where the property is | ||||||
21 | located under the Administrative Review Law. | ||||||
22 | In counties with less than 3,000,000 inhabitants, the | ||||||
23 | notice must also include a form that the property owner may | ||||||
24 | return to the board of review to request a hearing. The | ||||||
25 | property owner may request a hearing by returning the form | ||||||
26 | within 30 days after service. The hearing shall be held within |
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1 | 90 days after the property owner is served. The board of review | ||||||
2 | shall follow its normal practices and procedures in conducting | ||||||
3 | the hearing. The property owner shall be allowed to present | ||||||
4 | evidence to the board of review. After taking into | ||||||
5 | consideration all of the relevant testimony and evidence, the | ||||||
6 | board of review shall issue a decision on whether the property | ||||||
7 | owner was erroneously granted a homestead exemption for the | ||||||
8 | assessment year or years in question. The property owner may | ||||||
9 | appeal the board of review's ruling to the circuit court of the | ||||||
10 | county where the property is located under the Administrative | ||||||
11 | Review Law. | ||||||
12 | (e) A lien against the property imposed under this Section | ||||||
13 | shall be filed with the county clerk and the county recorder of | ||||||
14 | deeds, but may not be filed sooner than 60 days after the | ||||||
15 | notice was delivered to the property owner if the property | ||||||
16 | owner does not request a hearing, or, until the conclusion of | ||||||
17 | the hearing and all appeals if the property owner does request | ||||||
18 | a hearing. | ||||||
19 | (1) When a lien is filed pursuant to subsection (a) of | ||||||
20 | this Section, the arrearages of taxes that might have been | ||||||
21 | assessed, plus 5% interest per annum, shall be charged | ||||||
22 | against the property by the county clerk. | ||||||
23 | (2) When a lien is filed pursuant to subsection (b) of | ||||||
24 | this Section, the arrearages of taxes that might have been | ||||||
25 | assessed, plus a penalty of 25% of the total amount of | ||||||
26 | unpaid taxes for each year and 10% interest per annum, |
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1 | shall be charged against the property by the county clerk. | ||||||
2 | (3) When a lien is filed pursuant to subsection (c) of | ||||||
3 | this Section, the arrearages of taxes that might have been | ||||||
4 | assessed, plus a penalty of 40% of the total amount of | ||||||
5 | unpaid taxes for each year and 15% interest per annum, | ||||||
6 | shall be charged against the property by the county clerk. | ||||||
7 | A person who received an erroneous homestead exemption | ||||||
8 | under Section 15-170 in a county that did not require an annual | ||||||
9 | application for that exemption at the time the erroneous | ||||||
10 | homestead exemption was granted is not liable for the penalties | ||||||
11 | and interest imposed under this subsection (e) for those | ||||||
12 | assessment years if: (i) the person was the spouse, child, | ||||||
13 | grandchild, brother, sister, niece, or nephew of the previous | ||||||
14 | owner; and (ii) the person received the property by bequest or | ||||||
15 | inheritance. However, that person is responsible for any | ||||||
16 | interest owed under subsection (h) of this Section. | ||||||
17 | (f) If the erroneous homestead exemption was granted as a | ||||||
18 | result of a clerical error or omission on the part of the chief | ||||||
19 | county assessment officer, and if the owner has paid its tax | ||||||
20 | bills as received for the year or years in which the error | ||||||
21 | occurred, then the interest and penalties authorized by this | ||||||
22 | Section shall not be chargeable to the owner. However, nothing | ||||||
23 | in this Section shall prevent the collection of the principal | ||||||
24 | amount of back taxes due and owing. | ||||||
25 | (g) If, at the hearing, the property owner establishes that | ||||||
26 | it is a bona fide purchaser of the property for value, and |
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1 | without notice of the erroneous homestead exemption, the | ||||||
2 | property owner shall not be liable for any unpaid back taxes, | ||||||
3 | interest, or penalties for the period of time prior to the date | ||||||
4 | that the property owner purchased the property. A certified | ||||||
5 | title to the property that is issued by a title company | ||||||
6 | licensed to do business in the State and is free and clear of | ||||||
7 | any liens imposed under subsections (a), (b), or (c) of this | ||||||
8 | Section, shall be prima facie evidence that the property owner | ||||||
9 | is without notice of the erroneous homestead exemption. | ||||||
10 | (h) When a lien is filed against the property pursuant to | ||||||
11 | subsection (e) of this Section, the chief county assessment | ||||||
12 | officer shall mail a copy of the lien to the person to whom the | ||||||
13 | most recent tax bill was mailed and to the owner of record, and | ||||||
14 | the outstanding liability created by such a lien is due and | ||||||
15 | payable within 30 days after the mailing of the lien by the | ||||||
16 | chief county assessment officer. Payment shall be made to the | ||||||
17 | chief county assessment officer who shall, upon receipt of the | ||||||
18 | full amount due, provide in reasonable form a release of the | ||||||
19 | lien and shall transmit the funds received to the county | ||||||
20 | treasurer for distribution as provided in subsection (i) of | ||||||
21 | this Section. This liability is deemed delinquent and shall | ||||||
22 | bear interest beginning on the day after the due date. Any such | ||||||
23 | liability deemed delinquent after that due date shall bear | ||||||
24 | interest at the rate of 1.5% per month or portion thereof until | ||||||
25 | paid. | ||||||
26 | (i) The unpaid taxes shall be paid to the appropriate |
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1 | taxing districts. Interest shall be paid to the county where | ||||||
2 | the property is located. The penalty shall be paid to the chief | ||||||
3 | county assessment officer's office for the administration of | ||||||
4 | the provisions of this amendatory Act of the 98th General | ||||||
5 | Assembly. | ||||||
6 | (j) For purposes of this Section, "homestead exemption" | ||||||
7 | means an exemption under Section 15-165 (disabled veterans), | ||||||
8 | 15-167 (returning veterans), 15-168 (disabled persons), 15-169 | ||||||
9 | (disabled veterans standard homestead), 15-170 (senior | ||||||
10 | citizens), 15-172 (senior citizens assessment freeze), 15-175 | ||||||
11 | (general homestead), 15-176 (alternative general homestead), | ||||||
12 | or 15-177 (long-time occupant).
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