Bill Text: IL SB0333 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning court costs.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2014-08-01 - Public Act . . . . . . . . . 98-0811 [SB0333 Detail]
Download: Illinois-2013-SB0333-Enrolled.html
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning court costs.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2014-08-01 - Public Act . . . . . . . . . 98-0811 [SB0333 Detail]
Download: Illinois-2013-SB0333-Enrolled.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, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Section 9-275 as follows:
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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.
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