Bill Text: IL SB3401 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. Provides that, if the property owner gave notice of an omitted assessment, then (i) the property may not be assessed as omitted property for more than 5 years prior to the current assessment year and (ii) a charge for tax and interest for previous years shall not be made against the property for more than 5 years prior to the current assessment year. Requires the assessor to give notice of the assessment of omitted properties by registered or certified mail, return receipt requested. Provides that the notice must include the time period for requesting review of the assessment. Effective January 1, 2011.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2010-11-15 - Placed on Calendar Order of 3rd Reading - Short Debate [SB3401 Detail]

Download: Illinois-2009-SB3401-Engrossed.html

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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
Sections 9-260, 9-265, 9-270, 16-135, and 16-140 as follows:
(35 ILCS 200/9-260)
Sec. 9-260. Assessment of omitted property; counties of
3,000,000 or more.
(a) After signing the affidavit, the county assessor shall
have power, when directed by the board of appeals (until the
first Monday in December 1998 and the board of review beginning
the first Monday in December 1998 and thereafter), or on his or
her own initiative, subject to the limitations of Sections
9-265 and 9-270, to assess properties which may have been
omitted from assessments for the current year and not more than
5 years prior to the current year or during any year or years
for which the property was liable to be taxed, and for which
the tax has not been paid, but only on notice and an
opportunity to be heard in the manner and form required by law,
and shall enter the assessments upon the assessment books. Any
time period for the review of an omitted assessment included in
the notice shall be consistent with the time period established
by the assessor in accordance with subsection (a) of Section

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12-55. No charge for tax of previous years shall be made
against any property if (1) the assessor failed to notify the
board of review of an omitted assessment in accordance with
subsection (d) of this Section; (2) (a) the property was last
assessed as unimproved, (b) the owner of such property gave
notice of subsequent improvements and requested a reassessment
as required by Section 9-180, and (c) reassessment of the
property was not made within the 16 month period immediately
following the receipt of that notice; (3) the assessor received
a building permit for the property evidencing that new
construction had occurred or was occurring on the property but
failed to list the improvement on the tax rolls; (4) the
assessor received a survey containing the omitted property but
failed to list the improvement on the tax rolls; (5) the
assessor possessed an aerial photograph of the omitted
improvement but failed to list the improvement on the tax
rolls; (6) the assessor received a real estate transfer
declaration indicating a sale from an exempt property owner to
a non-exempt property owner but failed to list the property on
the tax rolls; or (7) the property was the subject of an
assessment appeal before the assessor or the board of review
that had included the intended omitted property as part of the
assessment appeal and provided evidence of its market value.
(b) Any taxes based on the omitted assessment of a property
pursuant to Sections 9-260 through 9-270 and Sections 16-135
and 16-140 shall be prepared and mailed at the same time as the

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estimated first installment property tax bill for the preceding
year (as described in Section 21-30) is prepared and mailed.
The omitted assessment tax bill is not due until the date on
which the second installment property tax bill for the
preceding year becomes due. The omitted assessment tax bill
shall be deemed delinquent and shall bear interest beginning on
the day after the due date of the second installment (as
described in Section 21-25). Any taxes for omitted assessments
deemed delinquent after the due date of the second installment
tax bill shall bear interest at the rate of 1.5% per month or
portion thereof until paid or forfeited (as described in
Section 21-25).
(c) The assessor shall have no power to change the
assessment or alter the assessment books in any other manner or
for any other purpose so as to change or affect the taxes in
that year, except as ordered by the board of appeals (until the
first Monday in December 1998 and the board of review beginning
the first Monday in December 1998 and thereafter). The county
assessor shall make all changes and corrections ordered by the
board of appeals (until the first Monday in December 1998 and
the board of review beginning the first Monday in December 1998
and thereafter). The county assessor may for the purpose of
revision by the board of appeals (until the first Monday in
December 1998 and the board of review beginning the first
Monday in December 1998 and thereafter) certify the assessment
books for any town or taxing district after or when such books

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are completed.
(d) The assessor shall transmit a copy of any decision and
all evidence used in a decision regarding an omitted assessment
to the board of review on or before November 1.
(Source: P.A. 93-560, eff. 8-20-03.)
(35 ILCS 200/9-265)
Sec. 9-265. Omitted property; interest; change in exempt
use or ownership. If any property is omitted in the assessment
of any year or years, not to exceed the current assessment year
and 5 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. 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

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Department. All such property shall be placed on the assessment
and tax books. 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.
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.
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
transferee to notify the chief county assessment officer in
writing within 30 days of the change. 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 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.

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(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
8-14-96.)
(35 ILCS 200/9-270)
Sec. 9-270. Omitted property; limitations on assessment. A
charge for tax and interest for previous years, as provided in
Sections 9-265 or 14-40, shall not be made against any property
for years prior to the date of ownership of the person owning
the property at the time the liability for the omitted tax was
first ascertained. Ownership as used in this section shall be
held to refer to bona fide legal and equitable titles or
interests acquired for value and without notice of the tax, as
may appear by deed, deed of trust, mortgage, certificate of
purchase or sale, or other form of contract. No charge for tax
of previous years, as provided in Section 9-265, shall be made
against any property if (1) the assessor failed to notify the
board of review of an omitted assessment in accordance with
subsection (d) of Section 9-260; (2) (a) the property was last
assessed as unimproved, (b) the owner of the property gave
notice of subsequent improvements and requested a reassessment
as required by Section 9-180, and (c) reassessment of the
property was not made within the 16 month period immediately
following the receipt of that notice; (3) the assessor received
a building permit for the property evidencing that new
construction had occurred or was occurring on the property but
failed to list the improvement on the tax rolls; (4) the

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assessor received a survey containing the omitted property but
failed to list the improvement on the tax rolls; (5) the
assessor possessed an aerial photograph of the omitted
improvement but failed to list the improvement on the tax
rolls; (6) the assessor received a real estate transfer
declaration indicating a sale from an exempt property owner to
a non-exempt property owner but failed to list the property on
the tax rolls; or (7) the property was the subject of an
assessment appeal before the assessor or the board of review
that had included the intended omitted property as part of the
assessment appeal and provided evidence of its market value.
The owner of property, if known, assessed under this and the
preceding section shall be notified by the county assessor,
board of review or Department, as the case may require.
(Source: P.A. 86-359; 88-455.)
(35 ILCS 200/16-135)
Sec. 16-135. Omitted property; Notice provisions. In
counties with 3,000,000 or more inhabitants, the owner of
property and the executor, administrator, or trustee of a
decedent whose property has been omitted in the assessment in
any year or years or on which a tax for which the property was
liable has not been paid, and the several taxing bodies
interested therein, shall be given at least 5 days notice in
writing by the board of appeals (until the first Monday in
December 1998 and the board of review beginning the first

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Monday in December 1998 and thereafter) or county assessor of
the hearing on the proposed assessments of the omitted
property. The board or assessor shall have full power to
examine the owner, or the executor, administrator, trustee,
legatee, or heirs of the decedent, or other person concerning
the ownership, kind, character, amount and the value of the
omitted property.
If the board determines that the property of any decedent
was omitted from assessment during any year or years, or that a
tax for which the property was liable, has not been paid, the
board shall direct the county assessor to assess the property.
However, if the county assessor, on his or her own initiative,
makes such a determination, then the assessor shall assess the
property. No charge for tax of previous years shall be made
against any property prior to the date of ownership of the
person owning the property at the time the liability for such
omitted tax is first ascertained. Ownership as used in this
Section refers to bona fide legal and equitable titles or
interests acquired for value and without notice of the tax, as
may appear by deed, deed of trust, mortgage, certificate of
purchase or sale, or other form of contract. No such charge for
tax of previous years shall be made against any property if:
(1) the assessor failed to notify the board of review
of an omitted assessment in accordance with subsection (d)
of Section 9-260 of this Code;
(2) (a) the property was last assessed as unimproved,

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(b) the owner of the property, gave notice of subsequent
improvements and requested a reassessment as required by
Section 9-180, and (c) reassessment of the property was not
made within 16 months of receipt of that notice; .
(3) the assessor received a building permit for the
property evidencing that new construction had occurred or
was occurring on the property but failed to list the
improvement on the tax rolls;
(4) the assessor received a survey containing the
omitted property but failed to list the improvement on the
tax rolls;
(5) the assessor possessed an aerial photograph of the
omitted improvement but failed to list the improvement on
the tax rolls;
(6) the assessor received a real estate transfer
declaration indicating a sale from an exempt property owner
to a non-exempt property owner but failed to list the
property on the tax rolls; or
(7) the property was the subject of an assessment
appeal before the assessor or the board of review that had
included the intended omitted property as part of the
assessment appeal and provided evidence of its market
value.
The assessment of omitted property by the county assessor
may be reviewed by the board in the same manner as other
assessments are reviewed under the provisions of this Code and

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when so reviewed, the assessment shall not thereafter be
subject to review by any succeeding board.
For the purpose of enforcing the provisions of this Code,
relating to property omitted from assessment, the taxing bodies
interested therein are hereby empowered to employ counsel to
appear before the board or assessor (as the case may be) and
take all necessary steps to enforce the assessment on the
omitted property.
(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
8-14-96.)
(35 ILCS 200/16-140)
Sec. 16-140. Omitted property. In counties with 3,000,000
or more inhabitants, the board of appeals (until the first
Monday in December 1998 and the board of review beginning the
first Monday in December 1998 and thereafter) in any year shall
direct the county assessor, in accordance with Section 16-135,
when he or she fails to do so on his or her own initiative, to
assess all property which has not been assessed, for any
reason, and enter the same upon the assessment books and to
list and assess all property that has been omitted in the
assessment for the current year and not more than 5 years prior
to the current year of any year or years. If the tax for which
that property was liable has not been paid or if any property,
by reason of defective description or assessment thereof, fails
to pay taxes for any year or years, the property, when

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discovered by the board shall be listed and assessed by the
county assessor. The board may order the county assessor to
make such alterations in the description of property as it
deems necessary. No charge for tax of previous years shall be
made against any property if:
(1) the assessor failed to notify the board of review
of an omitted assessment in accordance with subsection (d)
of Section 9-260 of this Code;
(2) (a) the property was last assessed as unimproved,
(b) the owner of the property gave notice of subsequent
improvements and requested a reassessment as required by
Section 9-180, and (c) reassessment of the property was not
made within 16 months of receipt of that notice; .
(3) the assessor received a building permit for the
property evidencing that new construction had occurred or
was occurring on the property but failed to list the
improvement on the tax rolls;
(4) the assessor received a survey containing the
omitted property but failed to list the improvement on the
tax rolls;
(5) the assessor possessed an aerial photograph of the
omitted improvement but failed to list the improvement on
the tax rolls;
(6) the assessor received a real estate transfer
declaration indicating a sale from an exempt property owner
to a non-exempt property owner but failed to list the

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property on the tax rolls; or
(7) the property was the subject of an assessment
appeal before the assessor or the board of review that had
included the intended omitted property as part of the
assessment appeal and provided evidence of its market
value.
The board shall hear complaints and revise assessments of
any particular parcel of property of any person identified and
described in a complaint filed with the board and conforming to
the requirements of Section 16-115. The board shall make
revisions in no other cases.
(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
8-14-96.)
Section 99. Effective date. This Act takes effect January
1, 2011.