SB1608 EnrolledLRB099 10335 HLH 30562 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 Property Tax Code is amended by changing
5Section 18-155 and by adding Section 18-156 as follows:
 
6    (35 ILCS 200/18-155)
7    Sec. 18-155. Apportionment of taxes for district in two or
8more counties. The burden of taxation of property in taxing
9districts that lie in more than one county shall be fairly
10apportioned as provided in Article IX, Section 7, of the
11Constitution of 1970.
12    The Department may, and on written request made before July
131 to the Department shall, proceed to apportion the tax burden.
14The request may be made only by an assessor, chief county
15assessment officer, Board of Review, Board of Appeals,
16overlapping taxing district or 25 or more interested taxpayers.
17The request shall specify one or more taxing districts in the
18county which lie in one or more other specified counties, and
19also specify the civil townships, if any, in which the
20overlapping taxing districts lie. When the Department has
21received a written request for equalization for overlapping tax
22districts as provided in this Section, the Department shall
23promptly notify the county clerk and county treasurer of each

 

 

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1county affected by that request that tax bills with respect to
2property in the parts of the county which are affected by the
3request may not be prepared or mailed until the Department
4certifies the apportionment among counties of the taxing
5districts' levies, except as provided in subsection (c) of this
6Section. To apportion, the Department shall:
7    (a) On or before December 31 of that year cause an
8assessment ratio study to be made in each township in which
9each of the named overlapping taxing districts lies, using
10equalized assessed values as certified by the county clerk, and
11an analysis of property transfers prior to January 1 of that
12year. The property transfers shall be in an amount deemed
13reasonable and proper by the Department. The Department may
14conduct hearings, at which the evidence shall be limited to the
15written presentation of assessment ratio study data.
16    (b) Request from the County Clerk in each County in which
17the overlapping taxing districts lie, certification of the
18portion of the assessed value of the prior year for each
19overlapping taxing district's portion of each township.
20Beginning with the 1999 taxable year, for those counties that
21classify property by county ordinance pursuant to subsection
22(b) of Section 4 of Article IX of the Illinois Constitution,
23the certification shall be listed by property class as provided
24in the classification ordinance. The clerk shall return the
25certification within 30 days of receipt of the request.
26    (c) Use the township assessment ratio studies to apportion

 

 

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1the amount to be raised by taxation upon property within the
2district so that each county in which the district lies bears
3that burden of taxation as though all parts of the overlapping
4taxing district had been assessed at the same proportion of
5actual value. The Department shall certify to each County
6Clerk, by March 15, the percent of burden. Except as provided
7below, the County Clerk shall apply the percentage to the
8extension as provided in Section 18-45 to determine the amount
9of tax to be raised in the county.
10    If the Department does not certify the percent of burden in
11the time prescribed, the county clerk shall use the most recent
12prior certification to determine the amount of tax to be raised
13in the county.
14    If the use of a prior certified percentage results in over
15or under extension for the overlapping taxing district in the
16county using same, the county clerk shall make appropriate
17adjustments in the subsequent year, except as provided by
18Section 18-156. Any adjustments necessitated by the procedure
19authorized by this Section shall be made by increasing or
20decreasing the tax extension by fund for each taxing district
21where a prior certified percentage was used. No tax rate limit
22shall render any part of a tax levy illegally excessive which
23has been apportioned as herein provided. The percentages
24certified by the Department shall remain until changed by
25reason of another assessment ratio study made under this
26Section.

 

 

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1    To determine whether an overlapping district has met any
2qualifying rate prescribed by law for eligibility for State
3aid, the tax rate of the district shall be considered to be
4that rate which would have produced the same amount of revenue
5had the taxes of the district been extended at a uniform rate
6throughout the district, even if by application of this Section
7the actual rate of extension in a portion of the district is
8less than the qualifying rate.
9(Source: P.A. 90-594, eff. 6-24-98.)
 
10    (35 ILCS 200/18-156 new)
11    Sec. 18-156. Correction of apportionment of taxes for a
12district in 2 or more counties.
13    (a) Definitions. For the purposes of this Section, these
14definitions shall apply:
15    "Apportioned property tax levy" means the total property
16tax extension of a taxing district in one or more counties that
17has been apportioned by the Department pursuant to Section
1818-155.
19    "Over-apportionment" means that any single county's share
20of an apportioned property tax levy is subsequently determined
21to exceed 105% of what that county's share should have been.
22    (b) If, subsequent to the calculation of an apportioned
23property tax levy, the Department determines that an
24over-apportionment has taken place, the Department shall
25notify the county clerk and county treasurer of each county

 

 

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1affected by the incorrect apportionment and shall provide those
2county clerks and county treasurers with correct apportionment
3data.
4    (c) If the notification under this Section is made prior to
5the due date of the final installment of property tax payments
6for that taxable year, the county treasurer of a county where
7an over-apportionment has taken place may, at the treasurer's
8sole discretion, issue a refund of the over-apportioned amount
9by either a reduced final installment, a refund of taxes paid,
10or both, to each taxpayer who is entitled to a refund because
11of the over-apportionment. Additionally, if the treasurer of
12the county where an over-apportionment has taken place issues a
13refund under this subsection, the county treasurer of each
14other county affected by the incorrect apportionment shall
15issue a corrected final installment or an additional bill for
16the amount owed as a result of the under-apportionment of that
17county's share of the property tax levy to each taxpayer whose
18taxes were underpaid as a result of the apportionment error.
19    (d) Any refund issued under subsection (c) due to any
20over-apportionment may be made from funds held by the county
21treasurer for the specific taxing district that was the subject
22of the over-apportionment; once those funds have been disbursed
23to the taxing districts, the authority of the county treasurer
24to issue refunds under subsection (c) ends.
25    (e) This Section applies for taxable year 2015 and
26thereafter.
 

 

 

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1    Section 10. The Uniform Penalty and Interest Act is amended
2by changing Section 3-3 as follows:
 
3    (35 ILCS 735/3-3)  (from Ch. 120, par. 2603-3)
4    Sec. 3-3. Penalty for failure to file or pay.
5    (a) This subsection (a) is applicable before January 1,
61996. A penalty of 5% of the tax required to be shown due on a
7return shall be imposed for failure to file the tax return on
8or before the due date prescribed for filing determined with
9regard for any extension of time for filing (penalty for late
10filing or nonfiling). If any unprocessable return is corrected
11and filed within 21 days after notice by the Department, the
12late filing or nonfiling penalty shall not apply. If a penalty
13for late filing or nonfiling is imposed in addition to a
14penalty for late payment, the total penalty due shall be the
15sum of the late filing penalty and the applicable late payment
16penalty. Beginning on the effective date of this amendatory Act
17of 1995, in the case of any type of tax return required to be
18filed more frequently than annually, when the failure to file
19the tax return on or before the date prescribed for filing
20(including any extensions) is shown to be nonfraudulent and has
21not occurred in the 2 years immediately preceding the failure
22to file on the prescribed due date, the penalty imposed by
23Section 3-3(a) shall be abated.
24    (a-5) This subsection (a-5) is applicable to returns due on

 

 

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1and after January 1, 1996 and on or before December 31, 2000. A
2penalty equal to 2% of the tax required to be shown due on a
3return, up to a maximum amount of $250, determined without
4regard to any part of the tax that is paid on time or by any
5credit that was properly allowable on the date the return was
6required to be filed, shall be imposed for failure to file the
7tax return on or before the due date prescribed for filing
8determined with regard for any extension of time for filing.
9However, if any return is not filed within 30 days after notice
10of nonfiling mailed by the Department to the last known address
11of the taxpayer contained in Department records, an additional
12penalty amount shall be imposed equal to the greater of $250 or
132% of the tax shown on the return. However, the additional
14penalty amount may not exceed $5,000 and is determined without
15regard to any part of the tax that is paid on time or by any
16credit that was properly allowable on the date the return was
17required to be filed (penalty for late filing or nonfiling). If
18any unprocessable return is corrected and filed within 30 days
19after notice by the Department, the late filing or nonfiling
20penalty shall not apply. If a penalty for late filing or
21nonfiling is imposed in addition to a penalty for late payment,
22the total penalty due shall be the sum of the late filing
23penalty and the applicable late payment penalty. In the case of
24any type of tax return required to be filed more frequently
25than annually, when the failure to file the tax return on or
26before the date prescribed for filing (including any

 

 

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1extensions) is shown to be nonfraudulent and has not occurred
2in the 2 years immediately preceding the failure to file on the
3prescribed due date, the penalty imposed by Section 3-3(a-5)
4shall be abated.
5    (a-10) This subsection (a-10) is applicable to returns due
6on and after January 1, 2001. A penalty equal to 2% of the tax
7required to be shown due on a return, up to a maximum amount of
8$250, reduced by any tax that is paid on time or by any credit
9that was properly allowable on the date the return was required
10to be filed, shall be imposed for failure to file the tax
11return on or before the due date prescribed for filing
12determined with regard for any extension of time for filing.
13However, if any return is not filed within 30 days after notice
14of nonfiling mailed by the Department to the last known address
15of the taxpayer contained in Department records, an additional
16penalty amount shall be imposed equal to the greater of $250 or
172% of the tax shown on the return. However, the additional
18penalty amount may not exceed $5,000 and is determined without
19regard to any part of the tax that is paid on time or by any
20credit that was properly allowable on the date the return was
21required to be filed (penalty for late filing or nonfiling). If
22any unprocessable return is corrected and filed within 30 days
23after notice by the Department, the late filing or nonfiling
24penalty shall not apply. If a penalty for late filing or
25nonfiling is imposed in addition to a penalty for late payment,
26the total penalty due shall be the sum of the late filing

 

 

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1penalty and the applicable late payment penalty. In the case of
2any type of tax return required to be filed more frequently
3than annually, when the failure to file the tax return on or
4before the date prescribed for filing (including any
5extensions) is shown to be nonfraudulent and has not occurred
6in the 2 years immediately preceding the failure to file on the
7prescribed due date, the penalty imposed by this subsection
8(a-10) Section 3-3(a-10) shall be abated. This subsection
9(a-10) does not apply to transaction reporting returns required
10by Section 3 of the Retailers' Occupation Tax Act and Section 9
11of the Use Tax Act that would not, when properly prepared and
12filed, result in the imposition of a tax; however, those
13returns are subject to the penalty set forth in subsection
14(a-15).
15    (a-15) A In addition to any other penalties imposed by law
16for the failure to file a return, a penalty of $100 shall be
17imposed for failure to file a transaction reporting return
18required by Section 3 of the Retailers' Occupation Tax Act and
19Section 9 of the Use Tax Act on or before the date a return is
20required to be filed; provided, however, that this . This
21penalty shall be imposed only if regardless of whether the
22return when properly prepared and filed would not result in the
23imposition of a tax. If such a transaction reporting return
24would result in the imposition of a tax when properly prepared
25and filed, then that return is subject to the provisions of
26subsection (a-10).

 

 

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1    (b) This subsection is applicable before January 1, 1998. A
2penalty of 15% of the tax shown on the return or the tax
3required to be shown due on the return shall be imposed for
4failure to pay:
5        (1) the tax shown due on the return on or before the
6    due date prescribed for payment of that tax, an amount of
7    underpayment of estimated tax, or an amount that is
8    reported in an amended return other than an amended return
9    timely filed as required by subsection (b) of Section 506
10    of the Illinois Income Tax Act (penalty for late payment or
11    nonpayment of admitted liability); or
12        (2) the full amount of any tax required to be shown due
13    on a return and which is not shown (penalty for late
14    payment or nonpayment of additional liability), within 30
15    days after a notice of arithmetic error, notice and demand,
16    or a final assessment is issued by the Department. In the
17    case of a final assessment arising following a protest and
18    hearing, the 30-day period shall not begin until all
19    proceedings in court for review of the final assessment
20    have terminated or the period for obtaining a review has
21    expired without proceedings for a review having been
22    instituted. In the case of a notice of tax liability that
23    becomes a final assessment without a protest and hearing,
24    the penalty provided in this paragraph (2) shall be imposed
25    at the expiration of the period provided for the filing of
26    a protest.

 

 

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1    (b-5) This subsection is applicable to returns due on and
2after January 1, 1998 and on or before December 31, 2000. A
3penalty of 20% of the tax shown on the return or the tax
4required to be shown due on the return shall be imposed for
5failure to pay:
6        (1) the tax shown due on the return on or before the
7    due date prescribed for payment of that tax, an amount of
8    underpayment of estimated tax, or an amount that is
9    reported in an amended return other than an amended return
10    timely filed as required by subsection (b) of Section 506
11    of the Illinois Income Tax Act (penalty for late payment or
12    nonpayment of admitted liability); or
13        (2) the full amount of any tax required to be shown due
14    on a return and which is not shown (penalty for late
15    payment or nonpayment of additional liability), within 30
16    days after a notice of arithmetic error, notice and demand,
17    or a final assessment is issued by the Department. In the
18    case of a final assessment arising following a protest and
19    hearing, the 30-day period shall not begin until all
20    proceedings in court for review of the final assessment
21    have terminated or the period for obtaining a review has
22    expired without proceedings for a review having been
23    instituted. In the case of a notice of tax liability that
24    becomes a final assessment without a protest and hearing,
25    the penalty provided in this paragraph (2) shall be imposed
26    at the expiration of the period provided for the filing of

 

 

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1    a protest.
2    (b-10) This subsection (b-10) is applicable to returns due
3on and after January 1, 2001 and on or before December 31,
42003. A penalty shall be imposed for failure to pay:
5        (1) the tax shown due on a return on or before the due
6    date prescribed for payment of that tax, an amount of
7    underpayment of estimated tax, or an amount that is
8    reported in an amended return other than an amended return
9    timely filed as required by subsection (b) of Section 506
10    of the Illinois Income Tax Act (penalty for late payment or
11    nonpayment of admitted liability). The amount of penalty
12    imposed under this subsection (b-10)(1) shall be 2% of any
13    amount that is paid no later than 30 days after the due
14    date, 5% of any amount that is paid later than 30 days
15    after the due date and not later than 90 days after the due
16    date, 10% of any amount that is paid later than 90 days
17    after the due date and not later than 180 days after the
18    due date, and 15% of any amount that is paid later than 180
19    days after the due date. If notice and demand is made for
20    the payment of any amount of tax due and if the amount due
21    is paid within 30 days after the date of the notice and
22    demand, then the penalty for late payment or nonpayment of
23    admitted liability under this subsection (b-10)(1) on the
24    amount so paid shall not accrue for the period after the
25    date of the notice and demand.
26        (2) the full amount of any tax required to be shown due

 

 

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1    on a return and that is not shown (penalty for late payment
2    or nonpayment of additional liability), within 30 days
3    after a notice of arithmetic error, notice and demand, or a
4    final assessment is issued by the Department. In the case
5    of a final assessment arising following a protest and
6    hearing, the 30-day period shall not begin until all
7    proceedings in court for review of the final assessment
8    have terminated or the period for obtaining a review has
9    expired without proceedings for a review having been
10    instituted. The amount of penalty imposed under this
11    subsection (b-10)(2) shall be 20% of any amount that is not
12    paid within the 30-day period. In the case of a notice of
13    tax liability that becomes a final assessment without a
14    protest and hearing, the penalty provided in this
15    subsection (b-10)(2) shall be imposed at the expiration of
16    the period provided for the filing of a protest.
17    (b-15) This subsection (b-15) is applicable to returns due
18on and after January 1, 2004 and on or before December 31,
192004. A penalty shall be imposed for failure to pay the tax
20shown due or required to be shown due on a return on or before
21the due date prescribed for payment of that tax, an amount of
22underpayment of estimated tax, or an amount that is reported in
23an amended return other than an amended return timely filed as
24required by subsection (b) of Section 506 of the Illinois
25Income Tax Act (penalty for late payment or nonpayment of
26admitted liability). The amount of penalty imposed under this

 

 

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1subsection (b-15)(1) shall be 2% of any amount that is paid no
2later than 30 days after the due date, 10% of any amount that
3is paid later than 30 days after the due date and not later
4than 90 days after the due date, 15% of any amount that is paid
5later than 90 days after the due date and not later than 180
6days after the due date, and 20% of any amount that is paid
7later than 180 days after the due date. If notice and demand is
8made for the payment of any amount of tax due and if the amount
9due is paid within 30 days after the date of this notice and
10demand, then the penalty for late payment or nonpayment of
11admitted liability under this subsection (b-15)(1) on the
12amount so paid shall not accrue for the period after the date
13of the notice and demand.
14    (b-20) This subsection (b-20) is applicable to returns due
15on and after January 1, 2005.
16        (1) A penalty shall be imposed for failure to pay,
17    prior to the due date for payment, any amount of tax the
18    payment of which is required to be made prior to the filing
19    of a return or without a return (penalty for late payment
20    or nonpayment of estimated or accelerated tax). The amount
21    of penalty imposed under this paragraph (1) shall be 2% of
22    any amount that is paid no later than 30 days after the due
23    date and 10% of any amount that is paid later than 30 days
24    after the due date.
25        (2) A penalty shall be imposed for failure to pay the
26    tax shown due or required to be shown due on a return on or

 

 

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1    before the due date prescribed for payment of that tax or
2    an amount that is reported in an amended return other than
3    an amended return timely filed as required by subsection
4    (b) of Section 506 of the Illinois Income Tax Act (penalty
5    for late payment or nonpayment of tax). The amount of
6    penalty imposed under this paragraph (2) shall be 2% of any
7    amount that is paid no later than 30 days after the due
8    date, 10% of any amount that is paid later than 30 days
9    after the due date and prior to the date the Department has
10    initiated an audit or investigation of the taxpayer, and
11    20% of any amount that is paid after the date the
12    Department has initiated an audit or investigation of the
13    taxpayer; provided that the penalty shall be reduced to 15%
14    if the entire amount due is paid not later than 30 days
15    after the Department has provided the taxpayer with an
16    amended return (following completion of an occupation,
17    use, or excise tax audit) or a form for waiver of
18    restrictions on assessment (following completion of an
19    income tax audit); provided further that the reduction to
20    15% shall be rescinded if the taxpayer makes any claim for
21    refund or credit of the tax, penalties, or interest
22    determined to be due upon audit, except in the case of a
23    claim filed pursuant to subsection (b) of Section 506 of
24    the Illinois Income Tax Act or to claim a carryover of a
25    loss or credit, the availability of which was not
26    determined in the audit. For purposes of this paragraph

 

 

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1    (2), any overpayment reported on an original return that
2    has been allowed as a refund or credit to the taxpayer
3    shall be deemed to have not been paid on or before the due
4    date for payment and any amount paid under protest pursuant
5    to the provisions of the State Officers and Employees Money
6    Disposition Act shall be deemed to have been paid after the
7    Department has initiated an audit and more than 30 days
8    after the Department has provided the taxpayer with an
9    amended return (following completion of an occupation,
10    use, or excise tax audit) or a form for waiver of
11    restrictions on assessment (following completion of an
12    income tax audit).
13        (3) The penalty imposed under this subsection (b-20)
14    shall be deemed assessed at the time the tax upon which the
15    penalty is computed is assessed, except that, if the
16    reduction of the penalty imposed under paragraph (2) of
17    this subsection (b-20) to 15% is rescinded because a claim
18    for refund or credit has been filed, the increase in
19    penalty shall be deemed assessed at the time the claim for
20    refund or credit is filed.
21    (c) For purposes of the late payment penalties, the basis
22of the penalty shall be the tax shown or required to be shown
23on a return, whichever is applicable, reduced by any part of
24the tax which is paid on time and by any credit which was
25properly allowable on the date the return was required to be
26filed.

 

 

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1    (d) A penalty shall be applied to the tax required to be
2shown even if that amount is less than the tax shown on the
3return.
4    (e) This subsection (e) is applicable to returns due before
5January 1, 2001. If both a subsection (b)(1) or (b-5)(1)
6penalty and a subsection (b)(2) or (b-5)(2) penalty are
7assessed against the same return, the subsection (b)(2) or
8(b-5)(2) penalty shall be assessed against only the additional
9tax found to be due.
10    (e-5) This subsection (e-5) is applicable to returns due on
11and after January 1, 2001. If both a subsection (b-10)(1)
12penalty and a subsection (b-10)(2) penalty are assessed against
13the same return, the subsection (b-10)(2) penalty shall be
14assessed against only the additional tax found to be due.
15    (f) If the taxpayer has failed to file the return, the
16Department shall determine the correct tax according to its
17best judgment and information, which amount shall be prima
18facie evidence of the correctness of the tax due.
19    (g) The time within which to file a return or pay an amount
20of tax due without imposition of a penalty does not extend the
21time within which to file a protest to a notice of tax
22liability or a notice of deficiency.
23    (h) No return shall be determined to be unprocessable
24because of the omission of any information requested on the
25return pursuant to Section 2505-575 of the Department of
26Revenue Law (20 ILCS 2505/2505-575).

 

 

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1    (i) If a taxpayer has a tax liability for the taxable
2period ending after June 30, 1983 and prior to July 1, 2002
3that is eligible for amnesty under the Tax Delinquency Amnesty
4Act and the taxpayer fails to satisfy the tax liability during
5the amnesty period provided for in that Act for that taxable
6period, then the penalty imposed by the Department under this
7Section shall be imposed in an amount that is 200% of the
8amount that would otherwise be imposed under this Section.
9    (j) If a taxpayer has a tax liability for the taxable
10period ending after June 30, 2002 and prior to July 1, 2009
11that is eligible for amnesty under the Tax Delinquency Amnesty
12Act, except for any tax liability reported pursuant to Section
13506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that
14is not final, and the taxpayer fails to satisfy the tax
15liability during the amnesty period provided for in that Act
16for that taxable period, then the penalty imposed by the
17Department under this Section shall be imposed in an amount
18that is 200% of the amount that would otherwise be imposed
19under this Section.
20(Source: P.A. 98-425, eff. 8-16-13.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.