IL HB4374

Creates the Vacancy Fraud Act allowing taxing bodies to file complaints with county boards of review if property owners receive vacancy relief but are not actively attempting to lease, sell, or alter the property.

County boards of review may review complaints for properties receiving vacancy relief for 2 consecutive tax years if the first year is no more than 5 years prior to the current tax year.

Board considers 10 factors when determining vacancy fraud, including whether property is advertised for sale or lease, listed with real estate professionals, has pending contracts, or has been sold or leased and how long the vacancy lasted.

Penalties upon finding vacancy fraud include: prohibiting future vacancy relief until property is sold or leased; requiring payment of 3 times back taxes owed; charging interest up to 10% per annum; and imposing penalties up to 25% of back taxes for repeat offenders penalized 2 or more times within 5 years.

Back taxes go to appropriate taxing districts while interest and penalties go to the chief county assessment officer's office to fund public education on the Act; takes effect immediately upon becoming law.