In practical terms, the legislation ensures that property owners are notified of their tax obligations even if there was a failure in issuing tax bills in previous years. This addresses potential administrative oversights and facilitates a clearer communication of tax responsibilities. Additionally, the bill stipulates how interest on unpaid taxes will be calculated based on the population of the counties involved. For counties with fewer than three million residents, interest on the overdue property taxes would accumulate at the rate of 1.5% per month, while for larger counties, the rates would vary depending on the year of the tax owed.
House Bill 5140 proposes amendments to the Illinois Property Tax Code, specifically focusing on Section 21-45, which governs the issuance of tax bills. The primary aim of this bill is to implement a technical change regarding the mailing of tax bills in circumstances where a tax bill was not issued in a prior year. As stipulated in the bill, if a tax bill is absent due to any reason in a previous year, it mandates that a single tax bill be prepared and mailed by July 1 of the subsequent year.
Discussion around HB5140 is expected to be limited given its technical nature; however, any changes to tax policy can elicit scrutiny. The bill's impact on local revenue generation might raise concerns among municipal governments that rely heavily on property taxes. Moreover, the alterations in interest calculation for different population brackets may invite discussion about equity and fairness in tax administration practices. Nonetheless, as this bill does not represent a significant policy overhaul but rather a clarification in tax billing procedures, substantial contention has yet to emerge.