SB3242 Summary

• Establishes procedures for identifying and collecting back taxes from erroneous homestead exemptions in counties with 3,000,000+ inhabitants, with a 60-day grace period to pay without penalties and interest.

• Creates a lien system allowing chief county assessment officers to record liens against properties with erroneous exemptions, with penalties of 10% interest for 1-2 violations or 50% penalty plus 10% interest for 3+ violations over specified periods.

• Reorganizes homestead exemption provisions into three divisions: non-homestead exemptions in all counties (Division 1), homestead exemptions in large counties (Division 2), and homestead exemptions in smaller counties (Division 3).

• Renames Section 15-174 to Section 10-800 establishing a community stabilization assessment freeze pilot program for residential improvements in targeted distressed areas, with up to 10 years of assessed value reductions.

• Takes effect January 1, 2019, with an amnesty period through December 31, 2013 for taxpayers owing taxes due to erroneous exemptions granted before 2013.