100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3263

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 1010/1-45
35 ILCS 1010/1-50
35 ILCS 1010/1-51 new
35 ILCS 1010/1-55
35 ILCS 1010/1-63

    Amends the Illinois Independent Tax Tribunal Act of 2012. Expands the jurisdiction of the Tribunal to include the County Motor Fuel Tax Law, the Live Adult Entertainment Facility Surcharge Act, the Vehicle Use Tax, the Metropolitan Pier & Exposition Authority Food and Beverage Tax, the Tire User Fee, the Chicago Soft Drink Tax, the Drycleaning Solvent Tax, the Energy Assistance Act of 1989, and the Qualified Solid Waste Fee. Provides a transition schedule for the expansion of jurisdiction. Provides for additional procedures, including automatic remand, and a reduced filing fee for certain cases. Effective immediately.


LRB100 10460 HLH 20673 b

 

 

A BILL FOR

 

HB3263LRB100 10460 HLH 20673 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Independent Tax Tribunal Act of
52012 is amended by changing Sections 1-45, 1-50, 1-55, and 1-63
6and by adding Section 1-51 as follows:
 
7    (35 ILCS 1010/1-45)
8    Sec. 1-45. Jurisdiction of the Tax Tribunal.
9    (a) Except as provided by the Constitution of the United
10States, the Constitution of the State of Illinois, or any
11statutes of this State, including, but not limited to, the
12State Officers and Employees Money Disposition Act, the Tax
13Tribunal shall have original jurisdiction over all
14determinations of the Department reflected on a Notice of
15Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
16Notice of Penalty Liability issued under the Illinois Income
17Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
18Occupation Tax Act, the Retailers' Occupation Tax Act, the
19Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
20Products Tax Act of 1995, the Hotel Operators' Occupation Tax
21Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
22and Use Tax Act, the Coin-Operated Amusement Device and
23Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water

 

 

HB3263- 2 -LRB100 10460 HLH 20673 b

1Company Invested Capital Tax Act, the Telecommunications
2Excise Tax Act, the Telecommunications Infrastructure
3Maintenance Fee Act, the Public Utilities Revenue Act, the
4Electricity Excise Tax Law, the Aircraft Use Tax Law, the
5Watercraft Use Tax Law, the Gas Use Tax Law, the County Motor
6Fuel Tax Law, the Live Adult Entertainment Facility Surcharge
7Act, the Vehicle Use Tax, the Metropolitan Pier and Exposition
8Authority Food and Beverage Tax, the Tire User Fee, the Chicago
9Soft Drink Tax, the Drycleaning Solvent Tax, the Energy
10Assistance Act of 1989, the Qualified Solid Waste Fee, or the
11Uniform Penalty and Interest Act. Jurisdiction of the Tax
12Tribunal is limited to Notices of Tax Liability, Notices of
13Deficiency, Notices of Claim Denial, and Notices of Penalty
14Liability where for periods prior to September 1, 2017, the
15amount at issue in a notice, or the aggregate amount at issue
16in multiple notices issued for the same tax year or audit
17period, exceeds $15,000, exclusive of penalties and interest.
18In notices solely asserting either an interest or penalty
19assessment, or both, the Tax Tribunal shall have jurisdiction
20over cases where the combined total of all penalties or
21interest assessed exceeds $15,000. Beginning with notices and
22decisions issued on and after September 1, 2017, the Tax
23Tribunal shall have jurisdiction of all Notices of Tax
24Liability, Notices of Deficiency, Notices of Claim Denial, and
25Notices of Penalty Liability, all notices solely asserting
26either an interest or penalty assessment, and any decisions

 

 

HB3263- 3 -LRB100 10460 HLH 20673 b

1relating to the issuance or denial of an exemption ruling for
2any entity claiming a non-homestead exemption from any tax
3imposed under the Property Tax Code or any exemption from a
4State tax administered by the Department.
5    (b) Except as otherwise permitted by this Act and by the
6Constitution of the State of Illinois or otherwise by State
7law, including, but not limited to, the State Officers and
8Employees Money Disposition Act, no person shall contest any
9matter within the jurisdiction of the Tax Tribunal in any
10action, suit, or proceeding in the circuit court or any other
11court of the State. If a person attempts to do so, then such
12action, suit, or proceeding shall be dismissed without
13prejudice. The improper commencement of any action, suit, or
14proceeding does not extend the time period for commencing a
15proceeding in the Tax Tribunal.
16    (c) The Tax Tribunal may require the taxpayer to post a
17bond equal to 25% of the liability at issue (1) upon motion of
18the Department and a showing that (A) the taxpayer's action is
19frivolous or legally insufficient or (B) the taxpayer is acting
20primarily for the purpose of delaying the collection of tax or
21prejudicing the ability ultimately to collect the tax, or (2)
22if, at any time during the proceedings, it is determined by the
23Tax Tribunal that the taxpayer is not pursuing the resolution
24of the case with due diligence. If the Tax Tribunal finds in a
25particular case that the taxpayer cannot procure and furnish a
26satisfactory surety or sureties for the kind of bond required

 

 

HB3263- 4 -LRB100 10460 HLH 20673 b

1herein, the Tax Tribunal may relieve the taxpayer of the
2obligation of filing such bond, if, upon the timely application
3for a lien in lieu thereof and accompanying proof therein
4submitted, the Tax Tribunal is satisfied that any such lien
5imposed would operate to secure the assessment in the manner
6and to the degree as would a bond. The Tax Tribunal shall adopt
7rules for the procedures to be used in securing a bond or lien
8under this Section.
9    (d) If, with or after the filing of a timely petition, the
10taxpayer pays all or part of the tax or other amount in issue
11before the Tax Tribunal has rendered a decision, the Tax
12Tribunal shall treat the taxpayer's petition as a protest of a
13denial of claim for refund of the amount so paid upon a written
14motion filed by the taxpayer.
15    (e) The Tax Tribunal shall not have jurisdiction to review:
16        (1) any assessment made under the Property Tax Code;
17        (2) any decisions issued prior to September 1, 2017
18    relating to the issuance or denial of an exemption ruling
19    for any entity claiming exemption from any tax imposed
20    under the Property Tax Code or any State tax administered
21    by the Department;
22        (3) a notice of proposed tax liability, notice of
23    proposed deficiency, or any other notice of proposed
24    assessment or notice of intent to take some action;
25        (4) any action or determination of the Department
26    regarding tax liabilities that have become finalized by

 

 

HB3263- 5 -LRB100 10460 HLH 20673 b

1    law, including but not limited to the issuance of liens,
2    levies, and revocations, suspensions, or denials of
3    licenses or certificates of registration or any other
4    collection activities;
5        (5) any proceedings of the Department's informal
6    administrative appeals function; and
7        (6) any challenge to an administrative subpoena issued
8    by the Department.
9    (f) The Tax Tribunal shall decide questions regarding the
10constitutionality of statutes and rules adopted by the
11Department as applied to the taxpayer, but shall not have the
12power to declare a statute or rule unconstitutional or
13otherwise invalid on its face. A taxpayer challenging the
14constitutionality of a statute or rule on its face may present
15such challenge to the Tax Tribunal for the sole purpose of
16making a record for review by the Illinois Appellate Court.
17Failure to raise a constitutional issue regarding the
18application of a statute or regulations to the taxpayer shall
19not preclude the taxpayer or the Department from raising those
20issues at the appellate court level.
21(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
 
22    (35 ILCS 1010/1-50)
23    Sec. 1-50. Pleadings.
24    (a) A taxpayer may commence a proceeding in the Tax
25Tribunal by filing a petition protesting the Department's

 

 

HB3263- 6 -LRB100 10460 HLH 20673 b

1determination imposing a liability for tax, penalty, or
2interest, or denying a claim for refund or credit application.
3The petition shall be filed within the time permitted by
4statute for filing a protest.
5    (b) The Department shall file its answer in the Tax
6Tribunal no later than 30 days after its receipt of the Tax
7Tribunal's notification that the taxpayer has filed a petition
8in the proper form or within such additional time as the Tax
9Tribunal may specify. The Department shall serve a copy of its
10answer on the taxpayer's representative or, if the taxpayer is
11not represented, on the taxpayer, and shall file proof of such
12service with the answer. Material facts alleged in the
13petition, if not expressly admitted or denied in the answer,
14shall be deemed admitted.
15    (c) Either party may amend a pleading once without leave at
16any time before the period for responding to it expires. After
17such time, a pleading may be amended only with the written
18consent of the adverse party or with the permission of the Tax
19Tribunal. The Tax Tribunal shall freely grant consent to amend
20upon such terms as may be just. Except as otherwise ordered by
21the Tax Tribunal, there shall be an answer to an amended
22pleading if an answer is required to the pleading being
23amended. Filing of the answer, or, if the answer has already
24been filed, the amended answer shall be made no later than 30
25days after the filing of the amended petition. The taxpayer may
26not amend a petition after expiration of the time for filing a

 

 

HB3263- 7 -LRB100 10460 HLH 20673 b

1petition, if such amendment would have the effect of conferring
2jurisdiction on the Tax Tribunal over a matter that would
3otherwise not come within its jurisdiction. An amendment of a
4pleading shall relate back to the time of filing of the
5original pleading only as prescribed by Section 2-616 of the
6Code of Civil Procedure.
7    (d) This Section applies to all cases in which the amount
8at issue in a notice, or the aggregate amount at issue in
9multiple notices issued for the same tax year or audit period,
10exceeds $15,000 exclusive of penalties and interest, and in all
11cases involving notices solely asserting an interest or penalty
12assessment, or both, where the combined total of all penalties
13or interest assessed exceeds $15,000.
14(Source: P.A. 97-1129, eff. 8-28-12.)
 
15    (35 ILCS 1010/1-51 new)
16    Sec. 1-51. Pleadings in small dollar cases.
17    (a) This Section applies to all cases in which the amount
18at issue in a notice, or the aggregate amount at issue in
19multiple notices issued for the same tax year or audit period,
20does not exceed $15,000 exclusive of penalties and interest, in
21all cases involving notices solely asserting an interest or
22penalty assessment or both the combined total of all penalties
23or interest assessed does not exceed $15,000, and any decisions
24relating to the issuance or denial of an exemption ruling for
25any entity claiming a non-homestead exemption from any tax

 

 

HB3263- 8 -LRB100 10460 HLH 20673 b

1imposed under the Property Tax Code or any exemption from a
2State tax administered by the Department.
3    (b) In all matters governed by this Section, protests, in
4order to be deemed sufficient as a matter of law, must include
5the following at a minimum:
6        (1) the taxpayer's identification number, i.e., FEIN,
7    or individual or business account number;
8        (2) the date of issuance of the notice which is being
9    contested;
10        (3) the tax year or years and, if applicable, the
11    filing period and audit period involved;
12        (4) to the extent possible, the factual and legal
13    grounds upon which the objections to the notices are based;
14        (5) A certification that the facts stated are true,
15    correct, and complete to the best of the affiant's
16    knowledge and belief.
 
17    (35 ILCS 1010/1-55)
18    Sec. 1-55. Fees.
19    (a) The Tax Tribunal shall impose a fee of
20        (1) $500 for the filing of petitions under Section
21    1-50; or .
22        (2) a fee of $100 for the filing of petitions under
23    Section 1-51 in which the amount at issue exceeds $5000 and
24    any petition related to the issuance or denial of an
25    exemption ruling.

 

 

HB3263- 9 -LRB100 10460 HLH 20673 b

1    (b) The Tax Tribunal may fix a fee, not in excess of the
2fees charged and collected by the clerk of the circuit courts,
3for comparing, or for preparing and comparing, a transcript of
4the record, or for copying any record, entry, or other paper
5and the comparison and certification thereof.
6    (c) Fees collected under this Section shall be deposited
7into the Illinois Independent Tax Tribunal Fund, a special fund
8created in the State treasury. Moneys deposited into the Fund
9shall be appropriated to the Tax Tribunal to reimburse the Tax
10Tribunal for costs associated with administering and enforcing
11the provisions of this Act.
12    (d) The Tax Tribunal shall not assign any costs or
13attorney's fees incurred by one party against another party.
14Claims for expenses and attorney's fees under Section 10-55 of
15the Illinois Administrative Procedure Act shall first be made
16to the Department of Revenue. If the claimant is dissatisfied
17because of the Department's failure to make any award or
18because of the insufficiency of the award, the claimant may
19petition the Court of Claims for the amount deemed owed.
20(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
 
21    (35 ILCS 1010/1-63)
22    Sec. 1-63. Automatic Remand and Mediation.
23    (a) Every case governed by this Act shall be remanded
24automatically to the Department of Revenue for a period ending
2590 days following the filing of the petition (the "remand

 

 

HB3263- 10 -LRB100 10460 HLH 20673 b

1period"). During the remand period, the parties shall meet and
2confer in good faith, making particular efforts to resolve the
3case by settlement, if possible. All parties may by agreement
4waive the remand period or have a case returned to the Tax
5Tribunal at any time.
6    (b) At any point in the proceedings before the Tax Tribunal
7after the expiration of the remand period, but prior to the
8hearing under Section 1-65 of this Act, the parties may jointly
9petition the Tax Tribunal for mediation. The purpose of the
10mediation shall be to attempt to settle any contested issues or
11the case in its entirety. An administrative law judge other
12than the one initially assigned to hear the case shall serve as
13the mediator.
14(Source: P.A. 97-1129, eff. 8-28-12.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.