Bill Text: IL SB2814 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. In counties with fewer than 3,000,000 inhabitants, provides that property that receives an erroneous homestead exemption for the current assessment year or for any of the 3 prior assessment years may be considered omitted property. Provides for penalties and interest to be imposed on that omitted property. Provides that any arrearage of taxes or interest that might have been assessed against that omitted property shall not be chargeable to certain bona fide purchasers of the property. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-17 - Referred to Assignments [SB2814 Detail]

Download: Illinois-2023-SB2814-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2814 Introduced 1/17/2024, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
35 ILCS 200/9-265
Amends the Property Tax Code. In counties with fewer than 3,000,000 inhabitants, provides that property that receives an erroneous homestead exemption for the current assessment year or for any of the 3 prior assessment years may be considered omitted property. Provides for penalties and interest to be imposed on that omitted property. Provides that any arrearage of taxes or interest that might have been assessed against that omitted property shall not be chargeable to certain bona fide purchasers of the property. Effective immediately.
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A BILL FOR
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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
Section 9-265 as follows:
(35 ILCS 200/9-265)
Sec. 9-265. Omitted property; interest; change in exempt
use or ownership.
(a) If any property is omitted in the assessment of any
year or years, not to exceed the current assessment year and 3
prior years, so that the taxes, for which the property was
liable, have not been paid, or if by reason of defective
description or assessment, taxes on any property for any year
or years have not been paid, or if any taxes are refunded under
subsection (b) of Section 14-5 because the taxes were assessed
in the wrong person's name, the property, when discovered,
shall be listed and assessed by the board of review or, in
counties with 3,000,000 or more inhabitants, by the county
assessor either on his or her own initiative or when so
directed by the board of appeals or board of review.
(b) The board of review in counties with less than
3,000,000 inhabitants or the county assessor in counties with
3,000,000 or more inhabitants may develop reasonable

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procedures for contesting the listing of omitted property
under this Division.
(c) For purposes of this Section, "defective description
or assessment" includes a description or assessment which
omits all the improvements thereon as a result of which part of
the taxes on the total value of the property as improved remain
unpaid. In the case of property subject to assessment by the
Department, the property shall be listed and assessed by the
Department. All such property shall be placed on the
assessment and tax books.
(d) The arrearages of taxes which might have been
assessed, with 10% interest thereon for each year or portion
thereof from 2 years after the time the first correct tax bill
ought to have been received, shall be charged against the
property by the county clerk.
(e) When property or acreage omitted by either incorrect
survey or other ministerial assessor error is discovered and
the owner has paid its tax bills as received for the year or
years of omission of the parcel, then the interest authorized
by this Section shall not be chargeable to the owner. However,
nothing in this Section shall prevent the collection of the
principal amount of back taxes due and owing.
(f) If any property listed as exempt by the chief county
assessment officer has a change in use, a change in leasehold
estate, or a change in titleholder of record by purchase,
grant, taking or transfer, it shall be the obligation of the

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transferee to notify the chief county assessment officer in
writing within 90 days of the change. If mailed, the notice
shall be sent by certified mail, return receipt requested, and
shall include the name and address of the taxpayer, the legal
description of the property, and the property index number of
the property when an index number exists. If notice is
provided in person, it shall be provided on a form prescribed
by the chief county assessment officer, and the chief county
assessment officer shall provide a date stamped copy of the
notice. Except as provided in item (6) of subsection (a) of
Section 9-260, item (6) of Section 16-135, and item (6) of
Section 16-140 of this Code, if the failure to give the
notification results in the assessing official continuing to
list the property as exempt in subsequent years, the property
shall be considered omitted property for purposes of this
Code.
(g) In counties with fewer than 3,000,000 inhabitants, if
a chief county assessment officer discovers at any time before
judgment that a property has been granted a homestead
exemption under Article 15 of this Code to which it was not
entitled for the current assessment year or for any of the 3
prior assessment years, the chief county assessment officer
may consider the erroneously exempt portion of the property as
omitted property under this Section for the assessment year in
which the erroneous homestead exemption was applied to the
property, but not including any assessment year that occurred

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more than 3 years prior to the current assessment year. The
county or its designated agent may use any remedy allowed by
law to collect the taxes due on property that is omitted
property under this subsection, plus interest in the amount of
10% per annum on those amounts, as well as any additional fees
or costs incurred in identifying and collecting the unpaid
taxes that taxable year only.
Any arrearage of taxes that might have been assessed
against the omitted property but for the erroneous homestead
exemption, as well as any interest, fees, or costs imposed on
that property under this Section, shall not be chargeable to
any bona fide purchaser for value who acquires the property
without notice of the erroneous homestead exemption and whose
rights in and to the underlying parcel arose after the
erroneous homestead exemption was granted but before the
erroneously exempt portion of the property was listed as
omitted pursuant to this subsection. Nor shall those amounts
be chargeable to any mortgagee, tax buyer, judgment creditor,
or other lienor whose rights in and to the underlying parcel
arose after the erroneous homestead exemption was granted but
before the erroneously exempt portion of the property was
listed as omitted.
A title insurance policy for the property that is issued
by a title company licensed to do business in the State and
that shows that the property is free and clear of any liens or
arrearages imposed under this Section shall be prima facie

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evidence that the person acquiring an interest in the property
is without notice of the erroneous homestead exemption.
(Source: P.A. 98-615, eff. 6-1-14.)