Topic:
Erroneous homestead exemptions
House Bill 506 (Currie, D-Chicago; Munoz, D-Chicago) authorizes county assessors to impose a tax lien and penalties against homeowners who have been granted one or more erroneous homestead exemptions. House Bill 506 allows the assessor to reach back at least three years and sometimes six years depending on how many erroneous homestead exemptions were claimed. The penalties increase proportionately with the number of erroneous exemptions claimed starting with payment of back taxes and for two or three erroneous homesteads interest ranging from 5% to 15% and penalties ranging from 25% to 40%. Once the tax lien is filed, the amounts, interest, and penalties are due and payable within 30 days after the mailing of the lien. House Bill 506 has passed the House and awaits a concurrence vote in the Senate on Monday.