Public Act 099-0851
 
SB2427 EnrolledLRB099 15844 HLH 42102 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 9-275 and 15-175 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 
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. 
    "Taxpayer" means the property owner or leasehold owner that 
erroneously received a homestead exemption upon property. 
    (b)  Notwithstanding any other provision of law, in 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 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 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 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 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, 
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; and (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) 
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 
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 
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 
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 
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 
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. 
    (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 
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 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 
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 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; 
98-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff. 
7-27-15.)
 



    (35 ILCS 200/15-175)



    Sec. 15-175. General homestead exemption.  
    (a) Except as provided in Sections 15-176 and  15-177, 
homestead
property is
entitled to an annual homestead exemption 
limited, except as described here
with relation to 
cooperatives, to a reduction in the equalized assessed value
of 
homestead property equal to the increase in equalized assessed 
value for the
current assessment year above the equalized 
assessed value of the property for
1977, up to the maximum 
reduction set forth below. If however, the 1977
equalized 
assessed value upon which taxes were paid is subsequently 
determined
by local assessing officials, the Property Tax 
Appeal Board, or a court to have
been excessive, the equalized 
assessed value which should have been placed on
the property 
for 1977 shall be used to determine the amount of the 
exemption.

    (b) Except as provided in Section 15-176, the maximum 
reduction before taxable year 2004 shall be
$4,500 in counties 
with 3,000,000 or more
inhabitants
and $3,500 in all other 
counties. Except as provided in Sections 15-176 and  15-177, for 
taxable years 2004 through 2007, the maximum reduction shall be 
$5,000, for taxable year 2008, the maximum reduction is $5,500, 
and, for taxable years 2009 through 2011, the maximum reduction 
is $6,000 in all counties.  For taxable years 2012 and 
thereafter, the maximum reduction is $7,000 in counties with 
3,000,000 or more
inhabitants
and $6,000 in all other counties. 
If a county has elected to subject itself to the provisions of 
Section 15-176 as provided in subsection (k) of that Section, 
then, for the first taxable year only after the provisions of 
Section 15-176 no longer apply, for owners who, for the taxable 
year, have not been granted a senior citizens assessment freeze 
homestead exemption under Section 15-172 or a long-time 
occupant homestead exemption under Section 15-177, there shall 
be an additional exemption of $5,000 for owners with a 
household income of $30,000 or less.


    (c) In counties with fewer than 3,000,000 inhabitants, if, 
based on the most
recent assessment, the equalized assessed 
value of
the homestead property for the current assessment year 
is greater than the
equalized assessed value of the property 
for 1977, the owner of the property
shall automatically receive 
the exemption granted under this Section in an
amount equal to 
the increase over the 1977 assessment up to the maximum

reduction set forth in this Section.

    (d) If in any assessment year beginning with the 2000 
assessment year,
homestead property has a pro-rata valuation 
under
Section 9-180 resulting in an increase in the assessed 
valuation, a reduction
in equalized assessed valuation equal to 
the increase in equalized assessed
value of the property for 
the year of the pro-rata valuation above the
equalized assessed 
value of the property for 1977 shall be applied to the
property 
on a proportionate basis for the period the property qualified 
as
homestead property during the assessment year.  The maximum 
proportionate
homestead exemption shall not exceed the maximum 
homestead exemption allowed in
the county under this Section 
divided by 365 and multiplied by the number of
days the 
property qualified as homestead property.

    (d-1) In counties with 3,000,000 or more inhabitants, where 
the chief county assessment officer provides a notice of 
discovery, if a property is not
occupied by its owner as a 
principal residence as of January 1 of the current tax year, 
then the property owner shall notify the chief county 
assessment officer of that fact on a form prescribed by the 
chief county assessment officer. That notice must be received 
by the chief county assessment officer on or before March 1 of 
the collection year. If mailed, the form shall be sent by 
certified mail, return receipt requested.  If the form is 
provided in person, the chief county assessment officer shall 
provide a date stamped copy of the notice.  Failure to provide 
timely notice pursuant to this subsection (d-1) shall result in 
the exemption being treated as an erroneous exemption.  Upon 
timely receipt of the notice for the current tax year, no 
exemption shall be applied to the property for the current tax 
year. If the exemption is not removed upon timely receipt of 
the notice by the chief assessment officer, then the error is 
considered granted as a result of a clerical error or omission 
on the part of the chief county assessment officer as described 
in subsection (h) of Section 9-275, and the property owner 
shall not be liable for the payment of interest and penalties 
due to the erroneous exemption for the current tax year for 
which the notice was filed after the date that notice was 
timely received pursuant to this subsection. Notice provided 
under this subsection shall not constitute a defense or amnesty 
for prior year erroneous exemptions. 
    For the purposes of this subsection (d-1): 
        "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. 
    (e)  The chief county assessment officer may, when 
considering whether to grant a leasehold exemption under this 
Section, require the following conditions to be met: 
        (1)  that a notarized application for the exemption, 
    signed by both the owner and the lessee of the property, 
    must be submitted each year during the application period 
    in effect for the county in which the property is located; 
        (2)  that a copy of the lease must  be filed with the 
    chief county assessment officer by the owner of the 
    property at the time the notarized application is 
    submitted;
        (3)  that the lease must expressly state that the lessee 
    is liable for the payment of property taxes; and 
        (4)   that the lease must include the following language 
    in substantially the following form: 
            "Lessee shall be liable for the payment of real 
        estate taxes with respect to the residence in 
        accordance with the terms and conditions of Section 
        15-175 of the Property Tax Code (35 ILCS 200/15-175).  
        The permanent real estate index number for the premises 
        is (insert number), and, according to the most recent 
        property tax bill, the current amount of real estate 
        taxes associated with the premises is (insert amount) 
        per year.  The parties agree that the monthly rent set 
        forth above shall be increased or decreased pro rata 
        (effective January 1 of each calendar year) to reflect 
        any increase or decrease in real estate taxes.   Lessee 
        shall be deemed to be satisfying Lessee's liability for 
        the above mentioned real estate taxes with the monthly 
        rent payments as set forth above (or increased or 
        decreased as set forth herein).". 
    In addition, if there is a change in lessee, or if the 
lessee vacates the property, then  the chief county assessment 
officer may require the owner of the property to notify the 
chief county assessment officer of that change. 
    This subsection (e) does  not apply to leasehold interests 
in property owned by a municipality. 
    (f) "Homestead property" under this Section includes 
residential property that is
occupied by its owner or owners as 
his or their principal dwelling place, or
that is a leasehold 
interest on which a single family residence is situated,
which 
is occupied as a residence by a person who has an ownership 
interest
therein, legal or equitable or as a lessee, and on 
which the person is
liable for the payment of property taxes. 
For land improved with
an apartment building owned and operated 
as a cooperative or a building which
is a life care facility as 
defined in Section 15-170 and considered to
be a cooperative 
under Section 15-170, the maximum reduction from the equalized

assessed value shall be limited to the increase in the value 
above the
equalized assessed value of the property for 1977, up 
to
the maximum reduction set forth above, multiplied by the 
number of apartments
or units occupied by a person or persons 
who is liable, by contract with the
owner or owners of record, 
for paying property taxes on the property and is an
owner of 
record of a legal or equitable interest in the cooperative

apartment building, other than a leasehold interest. For 
purposes of this
Section, the term "life care facility" has the 
meaning stated in Section
15-170.

    "Household", as used in this Section,
means the owner, the 
spouse of the owner, and all persons using
the
residence of the 
owner as their principal place of residence.

    "Household income", as used in this Section,
means the 
combined income of the members of a household
for the calendar 
year preceding the taxable year.

    "Income", as used in this Section,
has the same meaning as 
provided in Section 3.07 of the Senior
Citizens
and Persons 
with Disabilities Property Tax Relief Act,
except that
"income" 
does not include veteran's benefits.

    (g) In a cooperative where a homestead exemption has been 
granted, the
cooperative association or its management firm 
shall credit the savings
resulting from that exemption only to 
the apportioned tax liability of the
owner who qualified for 
the exemption.  Any person who willfully refuses to so
credit 
the savings shall be guilty of a Class B misdemeanor.

    (h) Where married persons maintain and reside in separate 
residences qualifying
as homestead property, each residence 
shall receive 50% of the total reduction
in equalized assessed 
valuation provided by this Section.

    (i) In all counties, the assessor
or chief county 
assessment officer may determine the
eligibility of 
residential property to receive the homestead exemption and the 
amount of the exemption by
application, visual inspection, 
questionnaire or other reasonable methods.  The
determination 
shall be made in accordance with guidelines established by the

Department, provided that the taxpayer applying for an 
additional general exemption under this Section shall submit to 
the chief county assessment officer an application with an 
affidavit of the applicant's total household income, age, 
marital status (and, if married, the name and address of the 
applicant's spouse, if known), and principal dwelling place of 
members of the household on January 1 of the taxable year. The 
Department shall issue guidelines establishing a method for 
verifying the accuracy of the affidavits filed by applicants 
under this paragraph. The applications shall be clearly marked 
as applications for the Additional General Homestead 
Exemption. 

    (i-5) This subsection (i-5) applies to counties with 
3,000,000 or more inhabitants.  In the event of a sale of

homestead property, the homestead exemption shall remain in 
effect for the remainder of the assessment year of the sale.  
Upon receipt of a transfer declaration transmitted by the 
recorder pursuant to Section 31-30 of the Real Estate Transfer 
Tax Law for property receiving an exemption under this Section, 
the assessor shall mail a notice and forms to the new owner of 
the property providing information pertaining to the rules and 
applicable filing periods for applying or reapplying for 
homestead exemptions under this Code for which the property may 
be eligible. If the new owner fails to apply or reapply for a 
homestead exemption during the applicable filing period or the 
property no longer qualifies for an existing homestead 
exemption, the assessor shall cancel such exemption for any 
ensuing assessment year. 
    (j) In counties with fewer than 3,000,000 inhabitants, in 
the event of a sale
of
homestead property the homestead 
exemption shall remain in effect for the
remainder of the 
assessment year of the sale.  The assessor or chief county

assessment officer may require the new
owner of the property to 
apply for the homestead exemption for the following
assessment 
year.

    (k) Notwithstanding Sections 6 and 8 of the State Mandates 
Act, no reimbursement by the State is required for the 
implementation of any mandate created by this Section.

(Source: P.A. 98-7, eff. 4-23-13; 98-463, eff. 8-16-13; 99-143, 
eff. 7-27-15; 99-164, eff. 7-28-15; revised 8-25-15.)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.