SB1740 Summary

• Establishes procedures for identifying and collecting taxes owed when homestead exemptions are erroneously granted to properties in counties with 3,000,000 or more inhabitants (Cook County).

• Requires the chief county assessment officer to serve notice of discovery by regular and certified mail when erroneous exemptions are identified, with a 3-year deadline to serve notice of intent to record a lien.

• Permits recording a tax lien against property if the taxpayer received 1-2 erroneous exemptions within the prior 3 collection years, or 3+ exemptions within the prior 6 collection years, with interest and penalties added to the lien amount.

• Imposes 10% annual interest on erroneous exemption amounts and a 50% penalty if 3 or more erroneous exemptions were granted; allows taxpayers 30 days after receiving notice of intent to record a lien to pay and avoid the lien being filed.

• Establishes an amnesty period from the effective date through December 31, 2013, allowing taxpayers to pay back taxes from pre-2013 tax years without interest or penalties, except those with 3+ erroneous exemptions or pending litigation.