Bill Text: IL HB4148 | 2011-2012 | 97th General Assembly | Amended
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.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Enrolled - Dead) 2013-01-11 - Sent to the Governor [HB4148 Detail]
Download: Illinois-2011-HB4148-Amended.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.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Enrolled - Dead) 2013-01-11 - Sent to the Governor [HB4148 Detail]
Download: Illinois-2011-HB4148-Amended.html
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1 | AMENDMENT TO HOUSE BILL 4148
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2 | AMENDMENT NO. ______. Amend House Bill 4148 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 |
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1 | owner of record, a notice of intent to record a tax lien | ||||||
2 | against the property with respect to which the erroneous | ||||||
3 | homestead exemption was granted. | ||||||
4 | (b) If, upon determination by the chief county assessment | ||||||
5 | officer, any person or entity that was not eligible to receive | ||||||
6 | a homestead exemption under Article 15 of this Code was granted | ||||||
7 | 2 homestead exemptions in error for real property in any year | ||||||
8 | or years not to exceed the 3 assessment years prior to the | ||||||
9 | assessment year in which the determination is made, then the | ||||||
10 | chief county assessment officer may cause to be served, by both | ||||||
11 | regular mail and certified mail, return receipt requested, on | ||||||
12 | the person to whom the most recent tax bill was mailed and the | ||||||
13 | owner of record, a notice of intent to record a tax lien | ||||||
14 | against the property with respect to which the erroneous | ||||||
15 | homestead exemption was granted. | ||||||
16 | (c) If, upon determination by the chief county assessment | ||||||
17 | officer, any person or entity that was not eligible to receive | ||||||
18 | a homestead exemption under Article 15 of this Code was granted | ||||||
19 | 3 or more homestead exemptions in error for real property in | ||||||
20 | any year or years not to exceed the 6 assessment years prior to | ||||||
21 | the assessment year in which the determination is made, then | ||||||
22 | the chief county assessment officer may cause to be served, by | ||||||
23 | both regular mail and certified mail, return receipt requested, | ||||||
24 | on the person to whom the most recent tax bill was mailed and | ||||||
25 | the owner of record, a notice of intent to record a tax lien | ||||||
26 | against the property with respect to which the erroneous |
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1 | homestead exemption was granted. | ||||||
2 | (d) The notice of intent to record a tax lien described in | ||||||
3 | subsections (a), (b), and (c) of this Section shall identify | ||||||
4 | the property against which the lien is being sought and shall | ||||||
5 | identify the assessment years in which the erroneous homestead | ||||||
6 | exemption was granted. | ||||||
7 | In counties with 3,000,000 or more inhabitants, the notice | ||||||
8 | must also include a form that the property owner may return to | ||||||
9 | the chief county assessment officer to request a hearing. The | ||||||
10 | property owner may request a hearing by returning the form | ||||||
11 | within 30 days after service. The hearing shall be held within | ||||||
12 | 90 days after the property owner is served. The chief county | ||||||
13 | assessment officer shall promulgate rules of service and | ||||||
14 | procedure for the hearing. The chief county assessment officer | ||||||
15 | must generally follow rules of evidence and practices that | ||||||
16 | prevail in the county circuit courts, but, because of the | ||||||
17 | nature of these proceedings, the chief county assessment | ||||||
18 | officer is not bound by those rules in all particulars. The | ||||||
19 | chief county assessment officer shall appoint a hearing officer | ||||||
20 | to oversee the hearing. The property owner shall be allowed to | ||||||
21 | present evidence to the hearing officer at the hearing. After | ||||||
22 | taking into consideration all the relevant testimony and | ||||||
23 | evidence, the hearing officer shall make an administrative | ||||||
24 | decision on whether the property owner was erroneously granted | ||||||
25 | a homestead exemption for the assessment year or years in | ||||||
26 | question. The property owner may appeal the hearing officer's |
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1 | ruling to the circuit court of the county where the property is | ||||||
2 | located under the Administrative Review Law. | ||||||
3 | In counties with less than 3,000,000 inhabitants, the | ||||||
4 | notice must also include a form that the property owner may | ||||||
5 | return to the board of review to request a hearing. The | ||||||
6 | property owner may request a hearing by returning the form | ||||||
7 | within 30 days after service. The hearing shall be held within | ||||||
8 | 90 days after the property owner is served. The board of review | ||||||
9 | shall follow its normal practices and procedures in conducting | ||||||
10 | the hearing. The property owner shall be allowed to present | ||||||
11 | evidence to the board of review. After taking into | ||||||
12 | consideration all of the relevant testimony and evidence, the | ||||||
13 | board of review shall issue a decision on whether the property | ||||||
14 | owner was erroneously granted a homestead exemption for the | ||||||
15 | assessment year or years in question. The property owner may | ||||||
16 | appeal the board of review's ruling to the circuit court of the | ||||||
17 | county where the property is located under the Administrative | ||||||
18 | Review Law. | ||||||
19 | (e) A lien against the property imposed under this Section | ||||||
20 | shall be filed with the county clerk and the county recorder of | ||||||
21 | deeds, but may not be filed sooner than 45 days after the | ||||||
22 | notice was delivered to the property owner if the property | ||||||
23 | owner does not request a hearing, or, until the conclusion of | ||||||
24 | the hearing and all appeals if the property owner does request | ||||||
25 | a hearing. | ||||||
26 | (1) When a lien is filed pursuant to subsection (a) of |
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1 | this Section, the arrearages of taxes that might have been | ||||||
2 | assessed, plus 5% interest per annum, shall be charged | ||||||
3 | against the property by the county clerk. | ||||||
4 | (2) When a lien is filed pursuant to subsection (b) of | ||||||
5 | this Section, the arrearages of taxes that might have been | ||||||
6 | assessed, plus a penalty of 25% of the total amount of | ||||||
7 | unpaid taxes for each year and 10% interest per annum, | ||||||
8 | shall be charged against the property by the county clerk. | ||||||
9 | (3) When a lien is filed pursuant to subsection (c) of | ||||||
10 | this Section, the arrearages of taxes that might have been | ||||||
11 | assessed, plus a penalty of 40% of the total amount of | ||||||
12 | unpaid taxes for each year and 15% interest per annum, | ||||||
13 | shall be charged against the property by the county clerk. | ||||||
14 | (f) If the erroneous homestead exemption was granted as a | ||||||
15 | result of a clerical error or omission on the part of the chief | ||||||
16 | county assessment officer, and if the owner has paid its tax | ||||||
17 | bills as received for the year or years in which the error | ||||||
18 | occurred, then the interest and penalties authorized by this | ||||||
19 | Section shall not be chargeable to the owner. However, nothing | ||||||
20 | in this Section shall prevent the collection of the principal | ||||||
21 | amount of back taxes due and owing. | ||||||
22 | (g) If, at the hearing, the property owner establishes that | ||||||
23 | it is a bona fide purchaser of the property for value, and | ||||||
24 | without notice of the erroneous homestead exemption, the | ||||||
25 | property owner shall not be liable for any unpaid back taxes, | ||||||
26 | interest, or penalties for the period of time prior to the date |
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1 | that the property owner purchased the property. A certified | ||||||
2 | title to the property that is issued by a title company | ||||||
3 | licensed to do business in the State and is free and clear of | ||||||
4 | any liens imposed under subsections (a), (b), or (c) of this | ||||||
5 | Section, shall be prima facie evidence that the property owner | ||||||
6 | is without notice of the erroneous homestead exemption. | ||||||
7 | (h) When a lien is filed against the property pursuant to | ||||||
8 | subsection (e) of this Section, the chief county assessment | ||||||
9 | officer shall mail a copy of the lien to the person to whom the | ||||||
10 | most recent tax bill was mailed and to the owner of record, and | ||||||
11 | the outstanding liability created by such a lien is due and | ||||||
12 | payable within 30 days after the mailing of the lien by the | ||||||
13 | chief county assessment officer. Payment shall be made to the | ||||||
14 | chief county assessment officer who shall, upon receipt of the | ||||||
15 | full amount due, provide in reasonable form a release of the | ||||||
16 | lien and shall transmit the funds received to the county | ||||||
17 | treasurer for distribution as provided in subsection (i) of | ||||||
18 | this Section. This liability is deemed delinquent and shall | ||||||
19 | bear interest beginning on the day after the due date. Any such | ||||||
20 | liability deemed delinquent after that due date shall bear | ||||||
21 | interest at the rate of 1.5% per month or portion thereof until | ||||||
22 | paid. | ||||||
23 | (i) The unpaid taxes shall be paid to the appropriate | ||||||
24 | taxing districts. Interest shall be paid to the county where | ||||||
25 | the property is located. The penalty shall be paid to the chief | ||||||
26 | county assessment officer's office for the administration of |
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1 | the provisions of this amendatory Act of the 97th General | ||||||
2 | Assembly. | ||||||
3 | (j) For purposes of this Section, "homestead exemption" | ||||||
4 | means an exemption under Section 15-165 (disabled veterans), | ||||||
5 | 15-167 (returning veterans), 15-168 (disabled persons), 15-169 | ||||||
6 | (disabled veterans standard homestead), 15-170 (senior | ||||||
7 | citizens), 15-172 (senior citizens assessment freeze), 15-175 | ||||||
8 | (general homestead), 15-176 (alternative general homestead), | ||||||
9 | or 15-177 (long-time occupant). ".
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