Bill Text: IL HB5768 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Provides that, if a disaster is declared by proclamation of the Governor for all counties in the State due to a public health emergency, then the due date for the first installment of property taxes due in that calendar year shall be delayed by 90 days, and no penalties or interest shall accrue during that extension. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-05-18 - Referred to Rules Committee [HB5768 Detail]
Download: Illinois-2019-HB5768-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 changing | ||||||||||||||||||||||||||
5 | Sections 21-15 and 21-40 as follows:
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6 | (35 ILCS 200/21-15)
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7 | Sec. 21-15. General tax due dates; default by mortgage | ||||||||||||||||||||||||||
8 | lender. Except as otherwise provided in this Section or Section | ||||||||||||||||||||||||||
9 | 21-40, all property
upon which the first installment of taxes | ||||||||||||||||||||||||||
10 | remains unpaid on the later of (i) June 1 or (ii) the day after | ||||||||||||||||||||||||||
11 | the date specified on the real estate tax bill as the first | ||||||||||||||||||||||||||
12 | installment due date annually
shall be deemed delinquent and | ||||||||||||||||||||||||||
13 | shall bear interest after that date at the rate of
1 1/2% per | ||||||||||||||||||||||||||
14 | month or portion thereof. Except as otherwise provided in this
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15 | Section or Section 21-40, all property upon which the second | ||||||||||||||||||||||||||
16 | installment of
taxes remains due and unpaid on the later of (i) | ||||||||||||||||||||||||||
17 | September 1 or (ii) the day after the date specified on the | ||||||||||||||||||||||||||
18 | real estate tax bill as the second installment due date, | ||||||||||||||||||||||||||
19 | annually, shall be deemed
delinquent and shall bear interest | ||||||||||||||||||||||||||
20 | after that date at the same interest rate.
Notwithstanding any | ||||||||||||||||||||||||||
21 | other provision of law, if a taxpayer owes an arrearage of | ||||||||||||||||||||||||||
22 | taxes due to an administrative error, and if the county | ||||||||||||||||||||||||||
23 | collector sends a separate bill for that arrearage as provided |
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1 | in Section 14-41, then any part of the arrearage of taxes that | ||||||
2 | remains unpaid on the day after the due date specified on that | ||||||
3 | tax bill
shall be deemed delinquent and shall bear interest | ||||||
4 | after that date at the rate of
1 1/2% per month or portion | ||||||
5 | thereof. All interest collected shall be paid into the general | ||||||
6 | fund of the county.
Payment received by mail and postmarked on | ||||||
7 | or before the required due date is
not delinquent.
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8 | If a disaster is declared by proclamation of the Governor | ||||||
9 | for all counties in the State due to a public health emergency, | ||||||
10 | then the first installment of taxes due in that calendar year | ||||||
11 | and remaining unpaid shall not be declared delinquent and shall | ||||||
12 | not accrue any interest as otherwise required under this | ||||||
13 | Section for up to 90 days after the later of (i) June 1 or (ii) | ||||||
14 | the day after the date specified on the real estate tax bill as | ||||||
15 | the first installment due date annually. | ||||||
16 | Property not subject to the interest charge in Section | ||||||
17 | 9-260 or Section
9-265 shall also not
be subject to the | ||||||
18 | interest charge imposed by this Section until such time as
the | ||||||
19 | owner of the property receives actual notice of and is billed | ||||||
20 | for the
principal amount of back taxes due and owing.
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21 | If an Illinois resident who is a member of the Illinois | ||||||
22 | National Guard
or a reserve component of the armed forces of | ||||||
23 | the United States
and who has
an ownership interest in property | ||||||
24 | taxed under this Act is called to active duty
for deployment | ||||||
25 | outside the continental United States
and
is on active duty on | ||||||
26 | the due date of any installment of taxes due under
this Act, he |
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1 | or she shall not be deemed delinquent in the payment of the
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2 | installment and no interest shall accrue or be charged as a | ||||||
3 | penalty on the
installment until 180 days after that member | ||||||
4 | returns from active duty. To be deemed not delinquent in the | ||||||
5 | payment of an installment of taxes and any
interest
on that | ||||||
6 | installment, the reservist or guardsperson must make a | ||||||
7 | reasonable effort to notify the county clerk and the county | ||||||
8 | collector of his or her activation to active duty and must | ||||||
9 | notify the county clerk and the county collector
within 180
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10 | days after his or her deactivation and provide verification of | ||||||
11 | the date of his
or her
deactivation. An installment of property | ||||||
12 | taxes on the property of any reservist
or
guardsperson who | ||||||
13 | fails to provide timely notice and verification of
deactivation | ||||||
14 | to the
county clerk is subject to interest and penalties as | ||||||
15 | delinquent taxes under
this Code from
the date of deactivation.
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16 | Notwithstanding any other provision of law, when any unpaid | ||||||
17 | taxes become
delinquent under this Section through the fault of | ||||||
18 | the mortgage lender,
(i) the
interest assessed under this | ||||||
19 | Section for delinquent taxes shall be charged
against the | ||||||
20 | mortgage lender and not the mortgagor and (ii) the mortgage
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21 | lender shall pay the taxes, redeem the property and take all | ||||||
22 | necessary steps to
remove any liens accruing against the | ||||||
23 | property because of the delinquency.
In the event that more | ||||||
24 | than
one entity meets the definition of mortgage lender with | ||||||
25 | respect to any
mortgage, the interest shall be assessed against | ||||||
26 | the mortgage lender
responsible for servicing the mortgage. |
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1 | Unpaid taxes shall be deemed
delinquent through the fault of | ||||||
2 | the mortgage lender only if: (a) the
mortgage
lender has | ||||||
3 | received all payments due the mortgage lender for the property | ||||||
4 | being
taxed under the written terms of the mortgage or | ||||||
5 | promissory note secured by
the mortgage, (b) the mortgage | ||||||
6 | lender holds funds in escrow to pay the taxes,
and (c) the | ||||||
7 | funds are sufficient to pay the taxes
after deducting all | ||||||
8 | amounts reasonably anticipated to become due for all hazard
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9 | insurance premiums and mortgage insurance premiums and any | ||||||
10 | other assessments to
be paid from the escrow under the terms of | ||||||
11 | the mortgage. For purposes of this
Section, an
amount
is | ||||||
12 | reasonably anticipated to become due if it is payable within 12 | ||||||
13 | months from
the time of determining the sufficiency of funds | ||||||
14 | held in escrow. Unpaid taxes
shall not be deemed delinquent | ||||||
15 | through the fault of the mortgage lender if the
mortgage lender | ||||||
16 | was directed in writing by the mortgagor not to pay the
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17 | property taxes, or
if the failure to pay the taxes when due | ||||||
18 | resulted from inadequate or inaccurate
parcel information | ||||||
19 | provided by the mortgagor, a title or abstract company, or
by | ||||||
20 | the agency or unit of government assessing the tax.
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21 | (Source: P.A. 97-944, eff. 8-10-12; 98-286, eff. 1-1-14.)
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22 | (35 ILCS 200/21-40)
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23 | Sec. 21-40. Ordinance for delayed due date; accrual of | ||||||
24 | interest.
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25 | (a) In any county with less than 3,000,000 inhabitants,
the |
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1 | county board may adopt an ordinance under which 50% of each | ||||||
2 | installment
of taxes shall not become delinquent until 60 days | ||||||
3 | after each installment
would otherwise become delinquent under | ||||||
4 | Sections 21-15, 21-20, 21-25 or 21-30.
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5 | (a-5) If a disaster is declared by proclamation of the | ||||||
6 | Governor for all counties in the State due to a public health | ||||||
7 | emergency, then the due date of the first installment of tax | ||||||
8 | due ordinarily on June 1 shall be delayed by 90 days. | ||||||
9 | (b) Beginning with installments of taxes and special | ||||||
10 | assessments payable
in 1994, in any county that has been | ||||||
11 | designated, in whole or in part, as a
disaster area by the | ||||||
12 | President of the United States or the Governor of the
State of | ||||||
13 | Illinois due to a disaster that occurred during the calendar | ||||||
14 | year
in which the taxes are payable or in the preceding | ||||||
15 | calendar year, the county
board may adopt an ordinance or | ||||||
16 | resolution under which interest allowed to be
assessed on | ||||||
17 | special assessments or allowed to be assessed under Sections | ||||||
18 | 21-15,
21-20, and 21-25 on delinquent installments of taxes for | ||||||
19 | real property within
one or more townships (or congressional | ||||||
20 | townships if the assessor's books are
organized by | ||||||
21 | congressional townships) designated by the county board, that | ||||||
22 | have
been affected by the disaster does
not accrue until the | ||||||
23 | court enters the order for sale
of the property. The ordinance | ||||||
24 | or resolution shall provide that a person may
pay a delinquent | ||||||
25 | installment of taxes or special assessment without
interest | ||||||
26 | being assessed until the
last working day before the court |
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1 | enters the order for sale of the property.
If adopted, the | ||||||
2 | ordinance or resolution must establish a procedure for affected
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3 | property owners to make application to a designated county | ||||||
4 | official who
shall determine, according to the guidelines in | ||||||
5 | the ordinance or resolution,
whether the property is | ||||||
6 | substantially damaged or adversely affected and shall
approve | ||||||
7 | damaged or adversely affected property for the delay in accrual | ||||||
8 | of
interest specified in the ordinance or resolution. The | ||||||
9 | designated county
official shall notify the county collector of | ||||||
10 | the parcel
number and the name of the owner of property | ||||||
11 | approved for relief.
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12 | (c) (1) The governing authority of any county that has been | ||||||
13 | designated, in
whole or in part, as a disaster area by the | ||||||
14 | President of the United States or
the Governor of the State of | ||||||
15 | Illinois may adopt an ordinance or resolution
modifying the | ||||||
16 | provisions of this Act relating to any specified installment or
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17 | installments of real property tax or special assessment on real | ||||||
18 | property that
is situated within the designated disaster area | ||||||
19 | and that is determined, in the
manner provided in the ordinance | ||||||
20 | or resolution, to be substantially damaged or
adversely | ||||||
21 | affected as a result of that disaster.
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22 | The ordinance or resolution may:
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23 | (A) postpone the date on which any specified | ||||||
24 | installment or installments
of tax due on that real | ||||||
25 | property in the current year becomes or
became delinquent | ||||||
26 | under Section 21-15, 21-20, or 21-25;
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1 | (B) exempt any specified installment or installments | ||||||
2 | of tax due on
that real property from the interest penalty | ||||||
3 | provided under Section 21-15,
21-20, or 21-25 until the | ||||||
4 | postponed delinquency date established by the
ordinance or | ||||||
5 | resolution;
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6 | (C) postpone the date on which a special assessment due | ||||||
7 | on that real
property in the current year becomes or became | ||||||
8 | delinquent; and exempt a
special assessment due on that | ||||||
9 | real property from any interest penalty until
the postponed | ||||||
10 | delinquency date established by the ordinance or | ||||||
11 | resolution;
and
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12 | (D) order the county collector not to give notice of | ||||||
13 | application for
judgment for sale under Section 21-110 or | ||||||
14 | 21-120 and not to apply for judgment
and order of sale | ||||||
15 | under Section 21-150, until after the postponed | ||||||
16 | delinquency
date for the final installment of tax or | ||||||
17 | special assessment due on that real
property as established | ||||||
18 | in the ordinance or resolution.
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19 | (2) The ordinance or resolution shall establish a procedure | ||||||
20 | for owners of
real property situated in the designated disaster | ||||||
21 | area to make application to a
designated county official, who | ||||||
22 | shall determine, within the guidelines
established by the | ||||||
23 | ordinance or resolution, if the property is substantially
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24 | damaged or adversely affected and approve the property for | ||||||
25 | relief as specified
in the ordinance or resolution adopted | ||||||
26 | under this subsection (c). The
designated county official shall |
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1 | notify the county collector of the parcel
number and name of | ||||||
2 | the property owner of property approved for relief.
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3 | (3) The ordinance or resolution may also direct the county | ||||||
4 | collector to
give a credit against a special assessment or the | ||||||
5 | extension of the general
corporate levy of the county for
the | ||||||
6 | year following the year in which the disaster is declared to | ||||||
7 | the owner of
property approved for relief in an amount equal to | ||||||
8 | any interest penalty paid by
that owner on any specified | ||||||
9 | installment or installments of tax due on that
property in the | ||||||
10 | year the disaster is declared, if that interest penalty was
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11 | paid before the ordinance or resolution was adopted or before | ||||||
12 | the postponed
delinquency dates.
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13 | (4) The ordinance or resolution may also direct the county | ||||||
14 | collector to
refund any installment or installments, and any | ||||||
15 | special assessment or
interest penalties thereon, of tax due, | ||||||
16 | in the year the disaster is declared,
on property approved for | ||||||
17 | relief, that have been paid by the holder of a
certificate of | ||||||
18 | purchase for a prior year on that property.
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19 | (Source: P.A. 88-455; 88-518; 88-660, eff. 9-16-94; 89-89, eff. | ||||||
20 | 6-30-95.)
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.
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