HB5521 Summary

• Amends the Property Tax Code (35 ILCS 200/9-275) to modify collection procedures for erroneous homestead exemptions in counties with 3,000,000 or more inhabitants.

• Defines "erroneous exemption principal amount" as the total property tax principal that would have been billed if not for the erroneous homestead exemption, and establishes collection of this amount plus penalties and interest instead of back taxes.

• Allows property owners a 60-day grace period after receiving assessment notices to voluntarily pay the erroneous exemption principal amount plus interest to avoid penalties, with amnesty period through December 31, 2013 for pre-2013 tax years.

• Authorizes the chief county assessment officer to record liens against properties with one or more erroneous homestead exemptions, with penalties of 10% interest for 1-2 exemptions and 50% penalty plus 10% interest for 3+ exemptions, but requires 30-day notice and hearing opportunity before filing.

• Directs the county treasurer to collect payments and distribute erroneous exemption principal amounts pro rata to taxing districts, interest to the county, and penalties to a special fund for administrative costs of the assessment officer's office.