HB0090 98TH GENERAL ASSEMBLY

LRB098 00203 HLH 30207 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0090

Introduced 1/9/2013, by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-295
35 ILCS 200/21-300
35 ILCS 200/21-308 new

Amends the Property Tax Code. Authorizes counties to establish and operate a homestead protection program under which the county treasurer may make payments from the indemnity fund to pay the delinquent taxes, along with all associated fees and interest, on the primary residence of eligible taxpayers. Provides that the county treasurer shall have a lien on the property in the amount of the assistance provided. Sets forth requirements for the program. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 21-295 and 21-300 and by adding Section 21-308 as follows:

(35 ILCS 200/21-295)

Sec. 21-295. Creation of indemnity fund.

(a) In counties of less than 3,000,000 inhabitants, each person purchasing any property at a sale under this Code shall pay to the County Collector, prior to the issuance of any certificate of purchase, a fee of $20 for each item purchased. A like sum shall be paid for each year that all or a portion of subsequent taxes are paid by the tax purchaser and posted to the tax judgment, sale, redemption and forfeiture record where the underlying certificate of purchase is recorded.

(a-5) In counties of 3,000,000 or more inhabitants, each person purchasing property at a sale under this Code shall pay to the County Collector a fee of $80 for each item purchased plus an additional sum equal to 5% of taxes, interest, and penalties paid by the purchaser, including the taxes, interest, and penalties paid under Section 21-240. In these counties, the certificate holder shall also pay to the County Collector a fee of $80 for each year that all or a portion of subsequent taxes are paid by the tax purchaser and posted to the tax judgment, sale, redemption, and forfeiture record, plus an additional sum equal to 5% of all subsequent taxes, interest, and penalties. The additional 5% fees are not required after December 31, 2006. The changes to this subsection made by this amendatory Act of the 91st General Assembly are not a new enactment, but declaratory of existing law.

(b) The amount paid prior to issuance of the certificate of purchase pursuant to subsection (a) or (a-5) shall be included in the purchase price of the property in the certificate of purchase and all amounts paid under this Section shall be included in the amount required to redeem under Section 21-355. Except as otherwise provided in subsection (b) of Section 21-300, all money received under subsection (a) or (a-5) shall be paid by the Collector to the County Treasurer of the County in which the land is situated, for the purpose of an indemnity fund. The County Treasurer, as trustee of that fund, shall invest all of that fund, principal and income, in his or her hands from time to time, if not immediately required for payments of indemnities under subsection (a) of Section 21-305 or payments made pursuant to a homestead protection program established under Section 21-308, in investments permitted by the Illinois State Board of Investment under Article 22A of the Illinois Pension Code. The county collector shall report annually to the county clerk on the condition and income of the fund. The indemnity fund shall be held to satisfy judgments obtained against the County Treasurer, as trustee of the fund and may be used to operate a homestead protection program under Section 21-308. No payment shall be made from the fund, except upon a judgment of the court which ordered the issuance of a tax deed or under a homestead protection program under Section 21-308.

(Source: P.A. 94-412, eff. 8-2-05.)

(35 ILCS 200/21-300)

Sec. 21-300. Amount to be retained in indemnity fund.

(a) The county board in each county shall determine the amount of the fund to be maintained in that county, which amount shall not be less than 0.03% of the total assessed valuation, as equalized by the Department, of property within the County, or $50,000, whichever is greater, and shall not be greater than $1,000,000 in counties with less than 3,000,000 inhabitants that do not operate a homestead protection program under Section 21-308, and not greater than $2,000,000 in counties with 3,000,000 or more inhabitants that do not operate a homestead protection program under Section 21-308. Any moneys accumulated by the County Treasurer in excess of the amount so established, as trustee of the fund, shall be paid by him or her annually to the general fund of the County.

(b) In counties in which a Tort Liability Fund is established, all sums of money received under subsection (a) of Section 21-295 may be deposited in the general fund of the county for general county governmental purposes, if the county board provides by ordinance that the indemnity required by this Section shall be provided by the Tort Liability Fund.

(Source: P.A. 86-1028; 86-1431; 88-455.)

(35 ILCS 200/21-308 new)

Sec. 21-308. County homestead protection program.

(a) Each county may establish and operate a homestead protection program under which the county treasurer may make payments from the indemnity fund to pay the delinquent taxes, along with all associated fees and interest, on the primary residence of eligible taxpayers.

(b) To be eligible to receive assistance under a county homestead protection program, a taxpayer must satisfy all of the following criteria:

(1) the taxpayer's primary residence is located within the county operating the homestead protection program;

(2) but for the failure to submit an application or certification, for the taxpayer's primary residence and in the taxable year for which the taxes are delinquent, the taxpayer would have been eligible to receive:

(A) an exemption under Section 15-165, 15-168, 15-169, 15-170, or 15-172 of this Act;

(B) a deferral or exemption under the Longtime Owner-Occupant Property Tax Relief Act;

(C) property-tax assistance under the Senior Citizens and Disabled Persons Property Tax Relief Act; or

(D) a deferral under the Senior Citizens Real Estate Tax Deferral Act; and

(3) the taxpayer has not received assistance under the homestead protection program on a previous occasion.

(c) If a taxpayer receives assistance under a county homestead protection program, then the county treasurer of the county in which the primary residence is located has a lien on the residence for the amount of the assistance. The treasurer must notify the taxpayer, in writing, of the existence of the lien. Such liens have the same force, effect, and priority as a judgment lien and continue from the date of the recording until the lien is released or otherwise discharged. The county treasurer may, at any time, release all or any portion of the property subject to a lien under this Section or subordinate the lien to other liens if he or she determines that the release or subordination of the lien will not endanger or jeopardize the collection of the amount of assistance.

(d) In no event may the operation of a homestead protection program reduce the amount of the indemnity fund that is available to make payments under Section 21-305 to less than 0.03% of the total assessed valuation, as equalized by the Department, of property within the county, or $50,000, whichever is greater.

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