HB 1975 - Tax Collection

This bill does not raise taxes.  Unlike past tax bills which we actively worked to stop, this bill deals only with delinquent local county (privilege) taxes.  It is now on Governor George Ryan's desk, awaiting his decision by the end of August

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MHOAI supports the idea that homeowners should pay their taxes, however the original bill did not fairly address our issues.  It did not take into account the unique situations involved with owning a home, but not the land it is located on.  With the combined efforts of our organization, our members, and Senator Christine Radogno(R-Dist. 24), we were able to stop the original bill in the senate.  Senator Kathleen Parker (R-Dist. 29) signed on as a sponsor this year supporting our efforts.  We were able to work with the county representatives for a law that will have the fairness needed for all interested parties once held in the senate.

This act is very involved, long and complex.  If the governor signs this act into law, the new law will go into effect on January 1, 2003.

How will this act, if a law, affect the homeowner? Counties claim it cost more money to collect the taxes in many cases, then the original tax loss. If your taxes are sold, it will be about a two-year process allowing your taxes to be bought. This is an issue we have to deal with now, for two reasons.  One, we were able to show local government we want to work together for fair laws.  Second and most importantly, the counties would continue pushing this issue and this is a year we have opportunities that we may not have at a future date, allowing our issues to be fairly addressed.

MHOAI worked to:

• Reduce the original violation fees that could be higher than the actual tax for many.  Instead of the 1 1/2 interest charge on late taxes, it will be $25.00 for each notice, up to a maximum of $100.00.
• Make each county responsible for mailing homeowners a notice explaining the new law, and how your tax is determined.
• Eliminate non-tax-related issues such as community rules and regulations that were initially presented in the bill.
• Ensure an adequate publication of the new law.  Currently counties have their own procedure in place, and landlords are not required to disclose local tax laws.  The landlord reports that a home was sold, the size and year.  In many cases, this is only a verbal contact with no supporting documentation.
• In our survey and at meetings with homeowners showed that new home buyers are not always told about this tax at the time of sale.  In fact, many sellers use language suggesting that one of the benefits of buying a manufactured home is that you pay no taxes.
• Cook County, orginally included, has been taken out of is this bill.  Cook County does not have this tax.

We will continue to work with counties to get home sales reported more accurately.  If you live outside of Cook County and were not informed about this tax, you need to contact your county, your manager, and/or MHOAI.  Ask your county office if your home was reported to them.  The best advice, is to pay your taxes, and you will not have to worry about someone buying the county taxes owed on your home and losing your home.  This law is somewhat like tax laws on standard homes when homeowners do not pay their house property taxes.

We want to thank Senator Radogno, Phil Asplund (Elgin), Jeff Rowen and Terry Nelson (MHOAI Representatives), for the many hours in the last 18 months spent working on this tax collection act, allowing homeowners a fair and equitable means of reporting and paying of local service taxes which go to a general fund in your county.