Bill > HB1801

This bill amends the Property Tax Code to address situations of erroneous homestead exemptions in counties with fewer than 3,000,000 inhabitants. Specifically, the bill allows chief county assessment officers to consider property that received an incorrect homestead exemption as "omitted property" for the current assessment year and up to three prior assessment years. The bill enables county officials to collect unpaid taxes, with a 10% annual interest rate, on the erroneously exempted property. Importantly, the bill provides protection for bona fide purchasers, mortgagees, and other lienors who acquire an interest in the property after the erroneous exemption was granted but before the property was listed as omitted. A title insurance policy showing the property is free of liens can serve as prima facie evidence that the new property owner was unaware of the exemption error. The bill aims to ensure that properties receive appropriate tax assessments while also protecting innocent parties who might unknowingly purchase property with previous tax exemption issues. The changes are effective immediately and provide a clear mechanism for addressing and rectifying homestead exemption errors.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1801&GAID=18&DocTypeID=HB&SessionID=114&GA=104