Rep. Barbara Flynn Currie

Filed: 5/30/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1608

2    AMENDMENT NO. ______. Amend Senate Bill 1608 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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1The request shall specify one or more taxing districts in the
2county which lie in one or more other specified counties, and
3also specify the civil townships, if any, in which the
4overlapping taxing districts lie. When the Department has
5received a written request for equalization for overlapping tax
6districts as provided in this Section, the Department shall
7promptly notify the county clerk and county treasurer of each
8county affected by that request that tax bills with respect to
9property in the parts of the county which are affected by the
10request may not be prepared or mailed until the Department
11certifies the apportionment among counties of the taxing
12districts' levies, except as provided in subsection (c) of this
13Section. To apportion, the Department shall:
14    (a) On or before December 31 of that year cause an
15assessment ratio study to be made in each township in which
16each of the named overlapping taxing districts lies, using
17equalized assessed values as certified by the county clerk, and
18an analysis of property transfers prior to January 1 of that
19year. The property transfers shall be in an amount deemed
20reasonable and proper by the Department. The Department may
21conduct hearings, at which the evidence shall be limited to the
22written presentation of assessment ratio study data.
23    (b) Request from the County Clerk in each County in which
24the overlapping taxing districts lie, certification of the
25portion of the assessed value of the prior year for each
26overlapping taxing district's portion of each township.

 

 

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1Beginning with the 1999 taxable year, for those counties that
2classify property by county ordinance pursuant to subsection
3(b) of Section 4 of Article IX of the Illinois Constitution,
4the certification shall be listed by property class as provided
5in the classification ordinance. The clerk shall return the
6certification within 30 days of receipt of the request.
7    (c) Use the township assessment ratio studies to apportion
8the amount to be raised by taxation upon property within the
9district so that each county in which the district lies bears
10that burden of taxation as though all parts of the overlapping
11taxing district had been assessed at the same proportion of
12actual value. The Department shall certify to each County
13Clerk, by March 15, the percent of burden. Except as provided
14below, the County Clerk shall apply the percentage to the
15extension as provided in Section 18-45 to determine the amount
16of tax to be raised in the county.
17    If the Department does not certify the percent of burden in
18the time prescribed, the county clerk shall use the most recent
19prior certification to determine the amount of tax to be raised
20in the county.
21    If the use of a prior certified percentage results in over
22or under extension for the overlapping taxing district in the
23county using same, the county clerk shall make appropriate
24adjustments in the subsequent year, except as provided by
25Section 18-156. Any adjustments necessitated by the procedure
26authorized by this Section shall be made by increasing or

 

 

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1decreasing the tax extension by fund for each taxing district
2where a prior certified percentage was used. No tax rate limit
3shall render any part of a tax levy illegally excessive which
4has been apportioned as herein provided. The percentages
5certified by the Department shall remain until changed by
6reason of another assessment ratio study made under this
7Section.
8    To determine whether an overlapping district has met any
9qualifying rate prescribed by law for eligibility for State
10aid, the tax rate of the district shall be considered to be
11that rate which would have produced the same amount of revenue
12had the taxes of the district been extended at a uniform rate
13throughout the district, even if by application of this Section
14the actual rate of extension in a portion of the district is
15less than the qualifying rate.
16(Source: P.A. 90-594, eff. 6-24-98.)
 
17    (35 ILCS 200/18-156 new)
18    Sec. 18-156. Correction of apportionment of taxes for a
19district in 2 or more counties.
20    (a) Definitions. For the purposes of this Section, these
21definitions shall apply:
22    "Apportioned property tax levy" means the total property
23tax extension of a taxing district in one or more counties that
24has been apportioned by the Department pursuant to Section
2518-155.

 

 

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1    "Over-apportionment" means that any single county's share
2of an apportioned property tax levy is subsequently determined
3to exceed 105% of what that county's share should have been.
4    (b) If, subsequent to the calculation of an apportioned
5property tax levy, the Department determines that an
6over-apportionment has taken place, the Department shall
7notify the county clerk and county treasurer of each county
8affected by the incorrect apportionment and shall provide those
9county clerks and county treasurers with correct apportionment
10data.
11    (c) If the notification under this Section is made prior to
12the due date of the final installment of property tax payments
13for that taxable year, the county treasurer of a county where
14an over-apportionment has taken place may, at the treasurer's
15sole discretion, issue a refund of the over-apportioned amount
16by either a reduced final installment, a refund of taxes paid,
17or both, to each taxpayer who is entitled to a refund because
18of the over-apportionment. Additionally, if the treasurer of
19the county where an over-apportionment has taken place issues a
20refund under this subsection, the county treasurer of each
21other county affected by the incorrect apportionment shall
22issue a corrected final installment or an additional bill for
23the amount owed as a result of the under-apportionment of that
24county's share of the property tax levy to each taxpayer whose
25taxes were underpaid as a result of the apportionment error.
26    (d) Any refund issued under subsection (c) due to any

 

 

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1over-apportionment may be made from funds held by the county
2treasurer for the specific taxing district that was the subject
3of the over-apportionment; once those funds have been disbursed
4to the taxing districts, the authority of the county treasurer
5to issue refunds under subsection (c) ends.
6    (e) This Section applies for taxable year 2015 and
7thereafter.
 
8    Section 10. The Uniform Penalty and Interest Act is amended
9by changing Section 3-3 as follows:
 
10    (35 ILCS 735/3-3)  (from Ch. 120, par. 2603-3)
11    Sec. 3-3. Penalty for failure to file or pay.
12    (a) This subsection (a) is applicable before January 1,
131996. A penalty of 5% of the tax required to be shown due on a
14return shall be imposed for failure to file the tax return on
15or before the due date prescribed for filing determined with
16regard for any extension of time for filing (penalty for late
17filing or nonfiling). If any unprocessable return is corrected
18and filed within 21 days after notice by the Department, the
19late filing or nonfiling penalty shall not apply. If a penalty
20for late filing or nonfiling is imposed in addition to a
21penalty for late payment, the total penalty due shall be the
22sum of the late filing penalty and the applicable late payment
23penalty. Beginning on the effective date of this amendatory Act
24of 1995, in the case of any type of tax return required to be

 

 

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1filed more frequently than annually, when the failure to file
2the tax return on or before the date prescribed for filing
3(including any extensions) is shown to be nonfraudulent and has
4not occurred in the 2 years immediately preceding the failure
5to file on the prescribed due date, the penalty imposed by
6Section 3-3(a) shall be abated.
7    (a-5) This subsection (a-5) is applicable to returns due on
8and after January 1, 1996 and on or before December 31, 2000. A
9penalty equal to 2% of the tax required to be shown due on a
10return, up to a maximum amount of $250, determined without
11regard to any part of the tax that is paid on time or by any
12credit that was properly allowable on the date the return was
13required to be filed, shall be imposed for failure to file the
14tax return on or before the due date prescribed for filing
15determined with regard for any extension of time for filing.
16However, if any return is not filed within 30 days after notice
17of nonfiling mailed by the Department to the last known address
18of the taxpayer contained in Department records, an additional
19penalty amount shall be imposed equal to the greater of $250 or
202% of the tax shown on the return. However, the additional
21penalty amount may not exceed $5,000 and is determined without
22regard to any part of the tax that is paid on time or by any
23credit that was properly allowable on the date the return was
24required to be filed (penalty for late filing or nonfiling). If
25any unprocessable return is corrected and filed within 30 days
26after notice by the Department, the late filing or nonfiling

 

 

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1penalty shall not apply. If a penalty for late filing or
2nonfiling is imposed in addition to a penalty for late payment,
3the total penalty due shall be the sum of the late filing
4penalty and the applicable late payment penalty. In the case of
5any type of tax return required to be filed more frequently
6than annually, when the failure to file the tax return on or
7before the date prescribed for filing (including any
8extensions) is shown to be nonfraudulent and has not occurred
9in the 2 years immediately preceding the failure to file on the
10prescribed due date, the penalty imposed by Section 3-3(a-5)
11shall be abated.
12    (a-10) This subsection (a-10) is applicable to returns due
13on and after January 1, 2001. A penalty equal to 2% of the tax
14required to be shown due on a return, up to a maximum amount of
15$250, reduced by any tax that is paid on time or by any credit
16that was properly allowable on the date the return was required
17to be filed, shall be imposed for failure to file the tax
18return on or before the due date prescribed for filing
19determined with regard for any extension of time for filing.
20However, if any return is not filed within 30 days after notice
21of nonfiling mailed by the Department to the last known address
22of the taxpayer contained in Department records, an additional
23penalty amount shall be imposed equal to the greater of $250 or
242% of the tax shown on the return. However, the additional
25penalty amount may not exceed $5,000 and is determined without
26regard to any part of the tax that is paid on time or by any

 

 

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1credit that was properly allowable on the date the return was
2required to be filed (penalty for late filing or nonfiling). If
3any unprocessable return is corrected and filed within 30 days
4after notice by the Department, the late filing or nonfiling
5penalty shall not apply. If a penalty for late filing or
6nonfiling is imposed in addition to a penalty for late payment,
7the total penalty due shall be the sum of the late filing
8penalty and the applicable late payment penalty. In the case of
9any type of tax return required to be filed more frequently
10than annually, when the failure to file the tax return on or
11before the date prescribed for filing (including any
12extensions) is shown to be nonfraudulent and has not occurred
13in the 2 years immediately preceding the failure to file on the
14prescribed due date, the penalty imposed by this subsection
15(a-10) Section 3-3(a-10) shall be abated. This subsection
16(a-10) does not apply to transaction reporting returns required
17by Section 3 of the Retailers' Occupation Tax Act and Section 9
18of the Use Tax Act that would not, when properly prepared and
19filed, result in the imposition of a tax; however, those
20returns are subject to the penalty set forth in subsection
21(a-15).
22    (a-15) A In addition to any other penalties imposed by law
23for the failure to file a return, a penalty of $100 shall be
24imposed for failure to file a transaction reporting return
25required by Section 3 of the Retailers' Occupation Tax Act and
26Section 9 of the Use Tax Act on or before the date a return is

 

 

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1required to be filed; provided, however, that this . This
2penalty shall be imposed only if regardless of whether the
3return when properly prepared and filed would not result in the
4imposition of a tax. If such a transaction reporting return
5would result in the imposition of a tax when properly prepared
6and filed, then that return is subject to the provisions of
7subsection (a-10).
8    (b) This subsection is applicable before January 1, 1998. A
9penalty of 15% of the tax shown on the return or the tax
10required to be shown due on the return shall be imposed for
11failure to pay:
12        (1) the tax shown due on the return on or before the
13    due date prescribed for payment of that tax, an amount of
14    underpayment of estimated tax, or an amount that is
15    reported in an amended return other than an amended return
16    timely filed as required by subsection (b) of Section 506
17    of the Illinois Income Tax Act (penalty for late payment or
18    nonpayment of admitted liability); or
19        (2) the full amount of any tax required to be shown due
20    on a return and which is not shown (penalty for late
21    payment or nonpayment of additional liability), within 30
22    days after a notice of arithmetic error, notice and demand,
23    or a final assessment is issued by the Department. In the
24    case of a final assessment arising following a protest and
25    hearing, the 30-day period shall not begin until all
26    proceedings in court for review of the final assessment

 

 

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

 

 

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1    proceedings in court for review of the final assessment
2    have terminated or the period for obtaining a review has
3    expired without proceedings for a review having been
4    instituted. In the case of a notice of tax liability that
5    becomes a final assessment without a protest and hearing,
6    the penalty provided in this paragraph (2) shall be imposed
7    at the expiration of the period provided for the filing of
8    a protest.
9    (b-10) This subsection (b-10) is applicable to returns due
10on and after January 1, 2001 and on or before December 31,
112003. A penalty shall be imposed for failure to pay:
12        (1) the tax shown due on a return on or before the due
13    date prescribed for payment of that tax, an amount of
14    underpayment of estimated tax, or an amount that is
15    reported in an amended return other than an amended return
16    timely filed as required by subsection (b) of Section 506
17    of the Illinois Income Tax Act (penalty for late payment or
18    nonpayment of admitted liability). The amount of penalty
19    imposed under this subsection (b-10)(1) shall be 2% of any
20    amount that is paid no later than 30 days after the due
21    date, 5% of any amount that is paid later than 30 days
22    after the due date and not later than 90 days after the due
23    date, 10% of any amount that is paid later than 90 days
24    after the due date and not later than 180 days after the
25    due date, and 15% of any amount that is paid later than 180
26    days after the due date. If notice and demand is made for

 

 

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1    the payment of any amount of tax due and if the amount due
2    is paid within 30 days after the date of the notice and
3    demand, then the penalty for late payment or nonpayment of
4    admitted liability under this subsection (b-10)(1) on the
5    amount so paid shall not accrue for the period after the
6    date of the notice and demand.
7        (2) the full amount of any tax required to be shown due
8    on a return and that is not shown (penalty for late payment
9    or nonpayment of additional liability), within 30 days
10    after a notice of arithmetic error, notice and demand, or a
11    final assessment is issued by the Department. In the case
12    of a final assessment arising following a protest and
13    hearing, the 30-day period shall not begin until all
14    proceedings in court for review of the final assessment
15    have terminated or the period for obtaining a review has
16    expired without proceedings for a review having been
17    instituted. The amount of penalty imposed under this
18    subsection (b-10)(2) shall be 20% of any amount that is not
19    paid within the 30-day period. In the case of a notice of
20    tax liability that becomes a final assessment without a
21    protest and hearing, the penalty provided in this
22    subsection (b-10)(2) shall be imposed at the expiration of
23    the period provided for the filing of a protest.
24    (b-15) This subsection (b-15) is applicable to returns due
25on and after January 1, 2004 and on or before December 31,
262004. A penalty shall be imposed for failure to pay the tax

 

 

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1shown due or required to be shown due on a return on or before
2the due date prescribed for payment of that tax, an amount of
3underpayment of estimated tax, or an amount that is reported in
4an amended return other than an amended return timely filed as
5required by subsection (b) of Section 506 of the Illinois
6Income Tax Act (penalty for late payment or nonpayment of
7admitted liability). The amount of penalty imposed under this
8subsection (b-15)(1) shall be 2% of any amount that is paid no
9later than 30 days after the due date, 10% of any amount that
10is paid later than 30 days after the due date and not later
11than 90 days after the due date, 15% of any amount that is paid
12later than 90 days after the due date and not later than 180
13days after the due date, and 20% of any amount that is paid
14later than 180 days after the due date. If notice and demand is
15made for the payment of any amount of tax due and if the amount
16due is paid within 30 days after the date of this notice and
17demand, then the penalty for late payment or nonpayment of
18admitted liability under this subsection (b-15)(1) on the
19amount so paid shall not accrue for the period after the date
20of the notice and demand.
21    (b-20) This subsection (b-20) is applicable to returns due
22on and after January 1, 2005.
23        (1) A penalty shall be imposed for failure to pay,
24    prior to the due date for payment, any amount of tax the
25    payment of which is required to be made prior to the filing
26    of a return or without a return (penalty for late payment

 

 

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

 

 

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1    15% shall be rescinded if the taxpayer makes any claim for
2    refund or credit of the tax, penalties, or interest
3    determined to be due upon audit, except in the case of a
4    claim filed pursuant to subsection (b) of Section 506 of
5    the Illinois Income Tax Act or to claim a carryover of a
6    loss or credit, the availability of which was not
7    determined in the audit. For purposes of this paragraph
8    (2), any overpayment reported on an original return that
9    has been allowed as a refund or credit to the taxpayer
10    shall be deemed to have not been paid on or before the due
11    date for payment and any amount paid under protest pursuant
12    to the provisions of the State Officers and Employees Money
13    Disposition Act shall be deemed to have been paid after the
14    Department has initiated an audit and more 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).
20        (3) The penalty imposed under this subsection (b-20)
21    shall be deemed assessed at the time the tax upon which the
22    penalty is computed is assessed, except that, if the
23    reduction of the penalty imposed under paragraph (2) of
24    this subsection (b-20) to 15% is rescinded because a claim
25    for refund or credit has been filed, the increase in
26    penalty shall be deemed assessed at the time the claim for

 

 

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1    refund or credit is filed.
2    (c) For purposes of the late payment penalties, the basis
3of the penalty shall be the tax shown or required to be shown
4on a return, whichever is applicable, reduced by any part of
5the tax which is paid on time and by any credit which was
6properly allowable on the date the return was required to be
7filed.
8    (d) A penalty shall be applied to the tax required to be
9shown even if that amount is less than the tax shown on the
10return.
11    (e) This subsection (e) is applicable to returns due before
12January 1, 2001. If both a subsection (b)(1) or (b-5)(1)
13penalty and a subsection (b)(2) or (b-5)(2) penalty are
14assessed against the same return, the subsection (b)(2) or
15(b-5)(2) penalty shall be assessed against only the additional
16tax found to be due.
17    (e-5) This subsection (e-5) is applicable to returns due on
18and after January 1, 2001. If both a subsection (b-10)(1)
19penalty and a subsection (b-10)(2) penalty are assessed against
20the same return, the subsection (b-10)(2) penalty shall be
21assessed against only the additional tax found to be due.
22    (f) If the taxpayer has failed to file the return, the
23Department shall determine the correct tax according to its
24best judgment and information, which amount shall be prima
25facie evidence of the correctness of the tax due.
26    (g) The time within which to file a return or pay an amount

 

 

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1of tax due without imposition of a penalty does not extend the
2time within which to file a protest to a notice of tax
3liability or a notice of deficiency.
4    (h) No return shall be determined to be unprocessable
5because of the omission of any information requested on the
6return pursuant to Section 2505-575 of the Department of
7Revenue Law (20 ILCS 2505/2505-575).
8    (i) If a taxpayer has a tax liability for the taxable
9period ending after June 30, 1983 and prior to July 1, 2002
10that is eligible for amnesty under the Tax Delinquency Amnesty
11Act and the taxpayer fails to satisfy the tax liability during
12the amnesty period provided for in that Act for that taxable
13period, then the penalty imposed by the Department under this
14Section shall be imposed in an amount that is 200% of the
15amount that would otherwise be imposed under this Section.
16    (j) If a taxpayer has a tax liability for the taxable
17period ending after June 30, 2002 and prior to July 1, 2009
18that is eligible for amnesty under the Tax Delinquency Amnesty
19Act, except for any tax liability reported pursuant to Section
20506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that
21is not final, and the taxpayer fails to satisfy the tax
22liability during the amnesty period provided for in that Act
23for that taxable period, then the penalty imposed by the
24Department under this Section shall be imposed in an amount
25that is 200% of the amount that would otherwise be imposed
26under this Section.

 

 

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1(Source: P.A. 98-425, eff. 8-16-13.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".