99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3323

 

Introduced 2/19/2016, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/1102  from Ch. 120, par. 11-1102
35 ILCS 5/1103  from Ch. 120, par. 11-1103
35 ILCS 5/1105  from Ch. 120, par. 11-1105
35 ILCS 120/5a  from Ch. 120, par. 444a
35 ILCS 120/5b  from Ch. 120, par. 444b
35 ILCS 120/5c  from Ch. 120, par. 444c
35 ILCS 520/16  from Ch. 120, par. 2166
35 ILCS 520/17  from Ch. 120, par. 2167
35 ILCS 520/19  from Ch. 120, par. 2169
65 ILCS 5/8-3-15  from Ch. 24, par. 8-3-15
215 ILCS 155/22  from Ch. 73, par. 1422

    Creates the Uniform State Tax Lien Registration Act. Provides that the Department of Revenue shall establish and maintain a public database known as the Uniform State Tax Lien Registry. Provides that, if any person neglects or refuses to pay any final tax liability, the Department of Revenue may file in the registry a notice of tax lien within 3 years from the date of the final tax liability. Provides that the tax lien is perfected upon inclusion in the registry and shall be attached to all of the existing and after-acquired property of the debtor. Provides that the Department of Revenue may impose filing fees and fees to release the lien. Provides that the Department of Revenue may sell at bulk the information appearing on the tax lien registry; however, that information may not be used by any party for survey, marketing, or solicitation purposes. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, the Cannabis and Controlled Substances Tax Act, and the Title Insurance Act to make conforming changes. Effective January 1, 2017.


LRB099 19735 HLH 45242 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3323LRB099 19735 HLH 45242 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1. UNIFORM STATE TAX LIEN REGISTRATION ACT

 
5    Section 1. Short title. This Act may be cited as the
6Uniform State Tax Lien Registration Act.
 
7    Section 1-5. Purpose.
8    (a) The purpose of this Act is to provide a uniform
9statewide system for filing notices of tax liens that are in
10favor of or enforced by the Department. The Department shall
11maintain the system.
12    (b) The scope of this Act is limited to tax liens in real
13property and personal property, tangible and intangible, of
14taxpayers or other persons against whom the Department has
15liens pursuant to law for unpaid final tax liabilities
16administered by the Department.
17    (c) Nothing in this Act shall be construed to invalidate
18any lien filed by the Department with a county recorder of
19deeds prior to the effective date of this Act.
 
20    Section 1-10. Definitions.
21    "Debtor" means a taxpayer or other person against whom

 

 

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1there is an unpaid final tax liability collectible by the
2Department.
3    "Department" means the Department of Revenue.
4    "Final tax liability" means any State tax, fee, penalty, or
5interest owed by a person to the Department where the
6assessment of the liability is not subject to any further
7timely filed administrative or judicial review.
8    "Last-known address of the debtor" means the address of the
9debtor appearing in the records of the Department at the time
10the notice of tax lien is filed in the registry.
11    "Person" means any natural individual, firm, partnership,
12association, joint stock company, joint adventure, public or
13private corporation, limited liability company, or a receiver,
14executor, trustee, guardian or other representative appointed
15by order of any court.
16    "Registry" or "Uniform State Tax Lien Registry" means the
17public database maintained by the Department wherein tax liens
18are filed in favor of and enforced by the Department.
 
19    Section 1-15. Registry established.
20    (a) The Department shall establish and maintain a public
21database known as the Uniform State Tax Lien Registry. If any
22person neglects or refuses to pay any final tax liability, the
23Department may file in the registry a notice of tax lien within
243 years from the date of the final tax liability.
25    (b) The notice of tax lien file shall include:

 

 

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1        (1) the name and last-known address of the debtor;
2        (2) the name and address of the Department;
3        (3) the tax lien number assigned to the lien by the
4    Department; and
5        (4) the basis for the tax lien, including, but not
6    limited to, the amount owed by the debtor as of the date of
7    filing in the tax lien registry.
 
8    Section 1-20. Tax lien perfected.
9    (a) When a notice of tax lien is filed by the Department in
10the registry, the tax lien is perfected and shall be attached
11to all of the existing and after-acquired property of the
12debtor, both real and personal, tangible and intangible, which
13is located in any and all counties within the State of
14Illinois.
15    (b) The amount of the tax lien shall be a debt due the
16State of Illinois and shall remain a lien upon all property and
17rights to property belonging to the debtor, both real and
18personal, tangible and intangible, which is located in any and
19all counties within the State of Illinois. Interest and penalty
20shall accrue on the tax lien at the same rate and with the same
21restrictions, if any, as specified by statute for the accrual
22of interest and penalty for the type of tax or taxes for which
23the tax lien was issued.
 
24    Section 1-25. Time period of lien.

 

 

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1    (a) A notice of tax lien shall be a lien upon the debtor's
2property located anywhere in the State for a period of 20 years
3from the date of filing unless it is sooner released by the
4Department.
5    (b) A notice of release of tax lien filed in the registry
6shall constitute a release of the tax lien within the
7Department, the registry, and the county in which the tax lien
8was previously filed. The information contained on the registry
9shall be controlling, and the registry shall supersede the
10records of any county.
 
11    Section 1-30. Registry format.
12    (a) The Department shall maintain notices of tax liens
13filed in the registry after the effective date of this Act in
14its information management system in a form that permits the
15information to be readily accessible in an electronic form
16through the Internet and to be reduced to printed form. The
17electronic and printed form shall include the following
18information:
19        (1) the name of the taxpayer;
20        (2) the name and address of the Department;
21        (3) the tax lien number assigned to the lien by the
22    Department;
23        (4) the amount of the taxes, penalties, interest, and
24    fees indicated due on the notice of tax lien received from
25    the Department; and

 

 

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1        (5) the date and time of filing.
2    (b) Information in the registry shall be searchable by name
3of debtor or by tax lien number. The Department shall not
4charge for access to information in the registry.
5    (c) The Department is authorized to sell at bulk the
6information appearing on the tax lien registry. In selling the
7information, the Department shall adopt rules governing the
8process by which the information will be sold and the media or
9method by which it will be available to the purchaser and shall
10set a price for the information that will at least cover the
11cost of producing the information. The proceeds from the sale
12of bulk information shall be retained by the Department and
13used to cover its cost to produce the information sold and to
14maintain the registry.
15    (d) Registry information, whether accessed by name of
16debtor or by tax lien number at no charge, through a bulk sale
17of information, or by other means, shall not be used for
18survey, marketing, or solicitation purposes. Survey, marketing
19or, solicitation purpose does not include any action by the
20Department or its authorized agent to collect a debt
21represented by a tax lien appearing in the registry. The
22Attorney General may bring an action in any court of competent
23jurisdiction to enjoin the unlawful use of registry information
24for survey, marketing, or solicitation purposes and to recover
25the cost of such action, including reasonable attorney's fees.
 

 

 

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1    Section 1-35. Rulemaking. The Department may adopt rules in
2accordance with the Illinois Administrative Procedure Act to
3enforce the provisions of this Act.
 
4    Section 1-40. Conflicts. In the event of conflict between
5this Act and any other law, this Act shall control.
 
6
ARTICLE 5. AMENDATORY PROVISIONS

 
7    Section 5-5. The Illinois Income Tax Act is amended by
8changing Sections 1102, 1103, and 1105 as follows:
 
9    (35 ILCS 5/1102)  (from Ch. 120, par. 11-1102)
10    Sec. 1102. Jeopardy Assessments.
11    (a) Jeopardy assessment and lien.
12        (1) Assessment. If the Department finds that a taxpayer
13    is about to depart from the State, or to conceal himself or
14    his property, or to do any other act tending to prejudice
15    or to render wholly or partly ineffectual proceedings to
16    collect any amount of tax or penalties imposed under this
17    Act unless court proceedings are brought without delay, or
18    if the Department finds that the collection of such amount
19    will be jeopardized by delay, the Department shall give the
20    taxpayer notice of such findings and shall make demand for
21    immediate return and payment of such amount, whereupon such
22    amount shall be deemed assessed and shall become

 

 

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1    immediately due and payable.
2        (2) Filing of lien. If the taxpayer, within 5 days
3    after such notice (or within such extension of time as the
4    Department may grant), does not comply with such notice or
5    show to the Department that the findings in such notice are
6    erroneous, the Department may file a notice of jeopardy
7    assessment lien in the Uniform State Tax Lien Registry
8    office of the recorder of the county in which any property
9    of the taxpayer may be located and shall notify the
10    taxpayer of such filing. Such jeopardy assessment lien
11    shall have the same scope and effect as a statutory lien
12    under this Act. The taxpayer is liable for any
13    administrative fee imposed by the Department by rule in
14    connection with the Uniform State Tax Lien Registry the
15    filing fee incurred by the Department for filing the lien
16    and the filing fee incurred by the Department to file the
17    release of that lien. The filing fees shall be paid to the
18    Department in addition to payment of the tax, penalty, and
19    interest included in the amount of the lien.
20    (b) Termination of taxable year. In the case of a tax for a
21current taxable year, the Director shall declare the taxable
22period of the taxpayer immediately terminated and his notice
23and demand for a return and immediate payment of the tax shall
24relate to the period declared terminated, including therein
25income accrued and deductions incurred up to the date of
26termination if not otherwise properly includible or deductible

 

 

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1in respect of such taxable year.
2    (c) Protest. If the taxpayer believes that he does not owe
3some or all of the amount for which the jeopardy assessment
4lien against him has been filed, or that no jeopardy to the
5revenue in fact exists, he may protest within 20 days after
6being notified by the Department of the filing of such jeopardy
7assessment lien and request a hearing, whereupon the Department
8shall hold a hearing in conformity with the provisions of
9section 908 and, pursuant thereto, shall notify the taxpayer of
10its decision as to whether or not such jeopardy assessment lien
11will be released.
12(Source: P.A. 92-826, eff. 1-1-03.)
 
13    (35 ILCS 5/1103)  (from Ch. 120, par. 11-1103)
14    Sec. 1103. Filing and Priority of Liens.
15    (a) Filing in the Uniform State Tax Lien Registry with
16Recorder. Nothing in this Article shall be construed to give
17the Department a preference over the rights of any bona fide
18purchaser, holder of a security interest, mechanics lienor,
19mortgagee, or judgment lien creditor arising prior to the
20filing of a regular notice of lien or a notice of jeopardy
21assessment lien in the Uniform State Tax Lien Registry office
22of the recorder in the county in which the property subject to
23the lien is located. For purposes of this Section section, the
24term "bona fide," shall not include any mortgage of real or
25personal property or any other credit transaction that results

 

 

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1in the mortgagee or the holder of the security acting as
2trustee for unsecured creditors of the taxpayer mentioned in
3the notice of lien who executed such chattel or real property
4mortgage or the document evidencing such credit transaction.
5Such lien shall be inferior to the lien of general taxes,
6special assessments and special taxes heretofore or hereafter
7levied by any political subdivision of this State.
8    (b) Filing in the Uniform State Tax Lien Registry with
9Registrar. In case title to land to be affected by the notice
10of lien or notice of jeopardy assessment lien is registered
11under the provisions of "An Act concerning land titles,"
12approved May 1, 1897, as amended, such notice shall also be
13filed in the Uniform State Tax Lien Registry office of the
14Registrar of Titles of the county within which the property
15subject to the lien is situated and shall be entered upon the
16register of titles as a memorial of charge upon each folium of
17the register of titles affected by such notice, and the
18Department shall not have a preference over the rights of any
19bona fide purchaser, mortgagee, judgment creditor or other lien
20holder arising prior to the registration of such notice.
21    (c) Index. The Department of Revenue shall maintain a State
22Tax Lien Index of all tax liens filed in the Uniform State Tax
23Lien Registry as provided for by the Uniform State Tax Lien
24Registration Act. The recorder of each county shall procure a
25file labeled "State Tax Lien Notices" and an index book labeled
26"State Tax Lien Index." When notice of any lien or jeopardy

 

 

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1assessment lien is presented to him for filing, he shall file
2it in numerical order in the file and shall enter it
3alphabetically in the index. The entry shall show the name and
4last known address of the person named in the notice, the
5serial number of the notice, the date and hour of filing,
6whether it is a regular lien or a jeopardy assessment lien, and
7the amount of tax and penalty due and unpaid, plus the amount
8of interest due at the time when the notice of lien or jeopardy
9assessment is filed.
10    (d) (Blank). No recorder or registrar of titles of any
11county shall require that the Department pay any costs or fees
12in connection with recordation of any notice or other document
13filed by the Department under this Act at the time such notice
14or other document is presented for recordation. The recorder or
15registrar of each county, in order to receive payment for fees
16or costs incurred by the Department, shall present the
17Department with monthly statements indicating the amount of
18fees and costs incurred by the Department and for which no
19payment has been received. This amendatory Act of 1987 applies
20to all liens heretofore or hereafter filed.
21    (e) The taxpayer is liable for any the filing fees imposed
22fee incurred by the Department for filing the lien in the
23Uniform State Tax Lien Registry and any the filing fees imposed
24fee incurred by the Department for to file the release of that
25lien. The filing fees shall be paid to the Department in
26addition to payment of the tax, penalty, and interest included

 

 

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1in the amount of the lien.
2(Source: P.A. 92-826, eff. 1-1-03.)
 
3    (35 ILCS 5/1105)  (from Ch. 120, par. 11-1105)
4    Sec. 1105. Release of Liens.
5    (a) In general. Upon payment by the taxpayer to the
6Department in cash or by guaranteed remittance of an amount
7representing the filing fees and charges for the lien and the
8filing fees and charges for the release of that lien, the
9Department shall release all or any portion of the property
10subject to any lien provided for in this Act and file that
11complete or partial release of lien in the Uniform State Tax
12Lien Registry with the recorder of the county where that lien
13was filed if it determines that the release will not endanger
14or jeopardize the collection of the amount secured thereby.
15    (b) Judicial determination. If on judicial review the final
16judgment of the court is that the taxpayer does not owe some or
17all of the amount secured by the lien against him, or that no
18jeopardy to the revenue exists, the Department shall release
19its lien to the extent of such finding of nonliability, or to
20the extent of such finding of no jeopardy to the revenue. The
21taxpayer shall, however, be liable for the filing fee imposed
22paid by the Department to file the lien and the filing fee
23imposed to release required to file a release of the lien. The
24filing fees shall be paid to the Department.
25    (c) Payment. The Department shall also release its jeopardy

 

 

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1assessment lien against the taxpayer whenever the tax and
2penalty covered by such lien, plus any interest which may be
3due and an amount representing the filing fee to file the lien
4and the filing fee imposed to release required to file a
5release of that lien, are paid by the taxpayer to the
6Department in cash or by guaranteed remittance.
7    (d) Certificate of release. The Department shall issue a
8certificate of complete or partial release of the lien upon
9payment by the taxpayer to the Department in cash or by
10guaranteed remittance of an amount representing the filing fee
11imposed paid by the Department to file the lien and the filing
12fee imposed to release required to file the release of that
13lien:
14        (1) to the extent that the fair market value of any
15    property subject to the lien exceeds the amount of the lien
16    plus the amount of all prior liens upon such property;
17        (2) to the extent that such lien shall become
18    unenforceable;
19        (3) to the extent that the amount of such lien is paid
20    by the person whose property is subject to such lien,
21    together with any interest and penalty which may become due
22    under this Act between the date when the notice of lien is
23    filed and the date when the amount of such lien is paid;
24        (4) to the extent that there is furnished to the
25    Department on a form to be approved and with a surety or
26    sureties satisfactory to the Department a bond that is

 

 

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1    conditioned upon the payment of the amount of such lien,
2    together with any interest which may become due under this
3    Act after the notice of lien is filed, but before the
4    amount thereof is fully paid;
5        (5) to the extent and under the circumstances specified
6    in this Section.
7    A certificate of complete or partial release of any lien
8shall be held conclusive that the lien upon the property
9covered by the certificate is extinguished to the extent
10indicated by such certificate.
11    Such release of lien shall be issued to the person, or his
12agent, against whom the lien was obtained and shall contain in
13legible letters a statement as follows:
14    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
15    BE FILED IN THE UNIFORM TAX LIEN REGISTRY WITH THE 
16RECORDER OR THE REGISTRAR
17    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
18    (e) Filing. When a certificate of complete or partial
19release of lien issued by the Department is filed in the
20Uniform Tax Lien Registry, the Department presented for filing
21in the office of the recorder or Registrar of Titles where a
22notice of lien or notice of jeopardy assessment lien was filed:
23        (1) the recorder, in the case of nonregistered
24    property, shall permanently attach the certificate of
25    release to the notice of lien or notice of jeopardy
26    assessment lien and shall enter the certificate of release

 

 

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1    and the date in the "State Tax Lien Index" on the line
2    where the notice of lien or notice of jeopardy assessment
3    lien is entered. ; and
4        (2) in the case of registered property, the Registrar
5    of Titles shall file and enter upon each folium of the
6    register of titles affected thereby a memorial of the
7    certificate of release which memorial when so entered shall
8    act as a release pro tanto of any memorial of such notice
9    of lien or notice of jeopardy assessment lien previously
10    filed and registered.
11(Source: P.A. 92-826, eff. 1-1-03.)
 
12    Section 5-10. The Retailers' Occupation Tax Act is amended
13by changing Sections 5a, 5b, and 5c as follows:
 
14    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
15    Sec. 5a. The Department shall have a lien for the tax
16herein imposed or any portion thereof, or for any penalty
17provided for in this Act, or for any amount of interest which
18may be due as provided for in Section 5 of this Act, upon all
19the real and personal property of any person to whom a final
20assessment or revised final assessment has been issued as
21provided in this Act, or whenever a return is filed without
22payment of the tax or penalty shown therein to be due,
23including all such property of such persons acquired after
24receipt of such assessment or filing of such return. The

 

 

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1taxpayer is liable for the filing fee imposed incurred by the
2Department for filing the lien and the filing fee imposed
3incurred by the Department to file the release the of that
4lien. The filing fees shall be paid to the Department in
5addition to payment of the tax, penalty, and interest included
6in the amount of the lien.
7    However, where the lien arises because of the issuance of a
8final assessment or revised final assessment by the Department,
9such lien shall not attach and the notice hereinafter referred
10to in this Section shall not be filed until all proceedings in
11court for review of such final assessment or revised final
12assessment have terminated or the time for the taking thereof
13has expired without such proceedings being instituted.
14    Upon the granting of a rehearing or departmental review
15pursuant to Section 4 or Section 5 of this Act after a lien has
16attached, such lien shall remain in full force except to the
17extent to which the final assessment may be reduced by a
18revised final assessment following such rehearing or review.
19    The lien created by the issuance of a final assessment
20shall terminate unless a notice of lien is filed, as provided
21in Section 5b hereof, within 3 years from the date all
22proceedings in court for the review of such final assessment
23have terminated or the time for the taking thereof has expired
24without such proceedings being instituted, or (in the case of a
25revised final assessment issued pursuant to a rehearing or
26departmental review) within 3 years from the date all

 

 

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1proceedings in court for the review of such revised final
2assessment have terminated or the time for the taking thereof
3has expired without such proceedings being instituted; and
4where the lien results from the filing of a return without
5payment of the tax or penalty shown therein to be due, the lien
6shall terminate unless a notice of lien is filed, as provided
7in Section 5b hereof, within 3 years from the date when such
8return is filed with the Department: Provided that the time
9limitation period on the Department's right to file a notice of
10lien shall not run (1) during any period of time in which the
11order of any court has the effect of enjoining or restraining
12the Department from filing such notice of lien, or (2) during
13the term of a repayment plan that taxpayer has entered into
14with the Department, as long as taxpayer remains in compliance
15with the terms of the repayment plan.
16    If the Department finds that a taxpayer is about to depart
17from the State, or to conceal himself or his property, or to do
18any other act tending to prejudice or to render wholly or
19partly ineffectual proceedings to collect such tax unless such
20proceedings are brought without delay, or if the Department
21finds that the collection of the amount due from any taxpayer
22will be jeopardized by delay, the Department shall give the
23taxpayer notice of such findings and shall make demand for
24immediate return and payment of such tax, whereupon such tax
25shall become immediately due and payable. If the taxpayer,
26within 5 days after such notice (or within such extension of

 

 

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1time as the Department may grant), does not comply with such
2notice or show to the Department that the findings in such
3notice are erroneous, the Department may file a notice of
4jeopardy assessment lien in the Uniform State Tax Lien Registry
5office of the recorder of the county in which any property of
6the taxpayer may be located and shall notify the taxpayer of
7such filing. Such jeopardy assessment lien shall have the same
8scope and effect as the statutory lien hereinbefore provided
9for in this Section.
10    If the taxpayer believes that he does not owe some or all
11of the tax for which the jeopardy assessment lien against him
12has been filed, or that no jeopardy to the revenue in fact
13exists, he may protest within 20 days after being notified by
14the Department of the filing of such jeopardy assessment lien
15and request a hearing, whereupon the Department shall hold a
16hearing in conformity with the provisions of this Act and,
17pursuant thereto, shall notify the taxpayer of its findings as
18to whether or not such jeopardy assessment lien will be
19released. If not, and if the taxpayer is aggrieved by this
20decision, he may file an action for judicial review of such
21final determination of the Department in accordance with
22Section 12 of this Act and the Administrative Review Law.
23    On and after July 1, 2013, protests concerning matters that
24are subject to the jurisdiction of the Illinois Independent Tax
25Tribunal shall be filed with the Tribunal, and hearings on
26those matters shall be held before the Tribunal in accordance

 

 

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1with the Illinois Independent Tax Tribunal Act of 2012. The
2Tribunal shall notify the taxpayer of its findings as to
3whether or not such jeopardy assessment lien will be released.
4If not, and if the taxpayer is aggrieved by this decision, he
5may file an action for judicial review of such final
6determination of the Department in accordance with Section 12
7of this Act and the Illinois Independent Tax Tribunal Act of
82012.
9    With respect to protests filed with the Department prior to
10July 1, 2013 that would otherwise be subject to the
11jurisdiction of the Illinois Independent Tax Tribunal, the
12taxpayer may elect to be subject to the provisions of the
13Illinois Independent Tax Tribunal Act of 2012 at any time on or
14after July 1, 2013, but not later than 30 days after the date
15on which the protest was filed. If made, the election shall be
16irrevocable.
17    If, pursuant to such hearing (or after an independent
18determination of the facts by the Department without a
19hearing), the Department or the Tribunal determines that some
20or all of the tax covered by the jeopardy assessment lien is
21not owed by the taxpayer, or that no jeopardy to the revenue
22exists, or if on judicial review the final judgment of the
23court is that the taxpayer does not owe some or all of the tax
24covered by the jeopardy assessment lien against him, or that no
25jeopardy to the revenue exists, the Department shall release
26its jeopardy assessment lien to the extent of such finding of

 

 

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1nonliability for the tax, or to the extent of such finding of
2no jeopardy to the revenue.
3    The Department shall also release its jeopardy assessment
4lien against the taxpayer whenever the tax and penalty covered
5by such lien, plus any interest which may be due, are paid and
6the taxpayer has paid the Department in cash or by guaranteed
7remittance an amount representing the filing fee for the lien
8and the filing fee for the release of that lien. The Department
9shall file that release of lien in the Uniform State Tax Lien
10Registry with the recorder of the county where that lien was
11filed.
12    Nothing in this Section shall be construed to give the
13Department a preference over the rights of any bona fide
14purchaser, holder of a security interest, mechanics
15lienholder, mortgagee, or judgment lien creditor arising prior
16to the filing of a regular notice of lien or a notice of
17jeopardy assessment lien in the Uniform State Tax Lien Registry
18office of the recorder in the county in which the property
19subject to the lien is located: Provided, however, that the
20word "bona fide", as used in this Section shall not include any
21mortgage of real or personal property or any other credit
22transaction that results in the mortgagee or the holder of the
23security acting as trustee for unsecured creditors of the
24taxpayer mentioned in the notice of lien who executed such
25chattel or real property mortgage or the document evidencing
26such credit transaction. Such lien shall be inferior to the

 

 

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1lien of general taxes, special assessments and special taxes
2heretofore or hereafter levied by any political subdivision of
3this State.
4    In case title to land to be affected by the notice of lien
5or notice of jeopardy assessment lien is registered under the
6provisions of "An Act concerning land titles", approved May 1,
71897, as amended, such notice shall also be filed in the
8Uniform State Tax Lien Registry office of the Registrar of
9Titles of the county within which the property subject to the
10lien is situated and shall be entered upon the register of
11titles as a memorial or charge upon each folium of the register
12of titles affected by such notice, and the Department shall not
13have a preference over the rights of any bona fide purchaser,
14mortgagee, judgment creditor or other lien holder arising prior
15to the registration of such notice: Provided, however, that the
16word "bona fide" shall not include any mortgage of real or
17personal property or any other credit transaction that results
18in the mortgagee or the holder of the security acting as
19trustee for unsecured creditors of the taxpayer mentioned in
20the notice of lien who executed such chattel or real property
21mortgage or the document evidencing such credit transaction.
22    Such regular lien or jeopardy assessment lien shall not be
23effective against any purchaser with respect to any item in a
24retailer's stock in trade purchased from the retailer in the
25usual course of such retailer's business.
26(Source: P.A. 97-1129, eff. 8-28-12; 98-446, eff. 8-16-13.)
 

 

 

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1    (35 ILCS 120/5b)  (from Ch. 120, par. 444b)
2    Sec. 5b. State Tax Lien Index. The Department of Revenue
3shall maintain a State Tax Lien Index of all tax liens filed in
4the Uniform State Tax Lien Registry as provided for by the
5Uniform State Tax Lien Registration Act. The recorder of each
6county shall procure a file labeled "State Tax Lien Notices"
7and an index book labeled "State Tax Lien Index". When notice
8of any lien or jeopardy assessment lien is presented to him for
9filing, he shall file it in numerical order in the file and
10shall enter it alphabetically in the index. The entry shall
11show the name and last known business address of the person
12named in the notice, the serial number of the notice, the date
13and hour of filing, whether it is a regular lien or a jeopardy
14assessment lien, and the amount of tax and penalty due and
15unpaid, plus the amount of interest due under Section 5 of this
16Act at the time when the notice of lien or jeopardy assessment
17lien is filed.
18    No recorder or registrar of titles of any county shall
19require that the Department pay any costs or fees in connection
20with recordation of any notice or other document filed by the
21Department under this Act at the time such notice or other
22document is presented for recordation. The recorder or
23registrar of each county, in order to receive payment for fees
24or costs incurred by the Department, shall present the
25Department with monthly statements indicating the amount of

 

 

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1fees and costs incurred by the Department and for which no
2payment has been received.
3    A notice of lien may be filed after the issuance of a
4revised final assessment pursuant to a rehearing or
5departmental review under Section 4 or Section 5 of this Act.
6    When the lien obtained pursuant to this Act has been
7satisfied and the taxpayer has paid the Department in cash or
8by guaranteed remittance an amount representing the filing fee
9for the lien and the filing fee for the release of that lien,
10the Department shall issue a release of lien and file that
11release of lien in the Uniform State Tax Lien Registry with the
12recorder of the county where that lien was filed. The release
13of lien shall contain in legible letters a statement as
14follows:
15    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
16    BE FILED IN THE UNIFORM STATE TAX LIEN REGISTRY WITH THE 
17RECORDER OR THE REGISTRAR
18    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
19    When a certificate of complete or partial release of lien
20issued by the Department is filed in the Uniform State Tax Lien
21Registry, the Department of Revenue presented for filing in the
22office of the recorder or Registrar of Titles where a notice of
23lien or notice of jeopardy assessment lien was filed, the
24recorder, in the case of nonregistered property, shall
25permanently attach the certificate of release to the notice of
26lien or notice of jeopardy assessment lien and shall enter the

 

 

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1certificate of release and the date in the "State Tax Lien
2Index" on the line where the notice of lien or notice of
3jeopardy assessment lien is entered.
4    In the case of registered property, the Registrar of Titles
5shall file and enter upon each folium of the register of titles
6affected thereby a memorial of the certificate of release which
7memorial when so entered shall act as a release pro tanto of
8any memorial of such notice of lien or notice of jeopardy
9assessment lien previously filed and registered.
10(Source: P.A. 92-826, eff. 1-1-03.)
 
11    (35 ILCS 120/5c)  (from Ch. 120, par. 444c)
12    Sec. 5c. Upon payment by the taxpayer to the Department in
13cash or by guaranteed remittance of an amount representing the
14filing fee for the lien and the filing fee for the release of
15that lien, the Department shall issue a certificate of complete
16or partial release of the lien and file that complete or
17partial release of lien in the Uniform State Tax Lien Registry
18with the recorder of the county where the lien was filed:
19        (a) to the extent that the fair market value of any
20    property subject to the lien exceeds the amount of the lien
21    plus the amount of all prior liens upon such property;
22        (b) to the extent that such lien shall become
23    unenforceable;
24        (c) to the extent that the amount of such lien is paid
25    by the retailer whose property is subject to such lien,

 

 

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1    together with any interest which may become due under
2    Section 5 of this Act between the date when the notice of
3    lien is filed and the date when the amount of such lien is
4    paid;
5        (d) to the extent that there is furnished to the
6    Department on a form to be approved and with a surety or
7    sureties satisfactory to the Department a bond that is
8    conditioned upon the payment of the amount of such lien,
9    together with any interest which may become due under
10    Section 5 of this Act after the notice of lien is filed,
11    but before the amount thereof is fully paid;
12        (e) to the extent and under the circumstances specified
13    in Section 5a of this Act in the case of jeopardy
14    assessment liens;
15        (f) to the extent to which an assessment is reduced
16    pursuant to a rehearing or departmental review under
17    Section 4 or Section 5 of this Act.
18    A certificate of complete or partial release of any lien
19shall be held conclusive that the lien upon the property
20covered by the certificate is extinguished to the extent
21indicated by such certificate.
22(Source: P.A. 92-826, eff. 1-1-03.)
 
23    Section 5-15. The Cannabis and Controlled Substances Tax
24Act is amended by changing Sections 16, 17, and 19 as follows:
 

 

 

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1    (35 ILCS 520/16)  (from Ch. 120, par. 2166)
2    Sec. 16. All assessments are Jeopardy Assessments - lien.
3    (a) Assessment. An assessment for a dealer not possessing
4valid stamps or other official indicia showing that the tax has
5been paid shall be considered a jeopardy assessment or
6collection, as provided by Section 1102 of the Illinois Income
7Tax Act. The Department shall determine and assess a tax and
8applicable penalties and interest according to the best
9judgment and information available to the Department, which
10amount so fixed by the Department shall be prima facie correct
11and shall be prima facie evidence of the correctness of the
12amount of tax due, as shown in such determination. When,
13according to the best judgment and information available to the
14Department with regard to all real and personal property and
15rights to property of the dealer, there is no reasonable
16expectation of collection of the amount of tax and penalty to
17be assessed, the Department may issue an assessment under this
18Section for the amount of tax without penalty.
19    (b) Filing of Lien. Upon issuance of a jeopardy assessment
20as provided by subsection (a) of this Section, the Department
21may file a notice of jeopardy assessment lien in the Uniform
22Tax Lien Registry office of the recorder of the county in which
23any property of the taxpayer may be located and shall notify
24the taxpayer of such filing.
25    (c) Protest. If the taxpayer believes that he does not owe
26some or all of the amount for which the jeopardy assessment

 

 

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1lien against him has been filed, he may protest within 20 days
2after being notified by the Department of the filing of such
3jeopardy assessment lien and request a hearing, whereupon the
4Department shall hold a hearing in conformity with the
5provisions of Section 908 of the Illinois Income Tax Act and,
6pursuant thereto, shall notify the taxpayer of its decision as
7to whether or not such jeopardy assessment lien will be
8released.
9    After the expiration of the period within which the person
10assessed may file an action for judicial review without such
11action being filed, a certified copy of the final assessment or
12revised final assessment of the Department may be filed with
13the Circuit Court of the county in which the dealer resides, or
14of Cook County in the case of a dealer who does not reside in
15this State, or in the county where the violation of this Act
16took place. The certified copy of the final assessment or
17revised final assessment shall be accompanied by a
18certification which recites facts that are sufficient to show
19that the Department complied with the jurisdictional
20requirements of the Act in arriving at its final assessment or
21its revised final assessment and that the dealer had this
22opportunity for an administrative hearing and for judicial
23review, whether he availed himself or herself of either or both
24of these opportunities or not. If the court is satisfied that
25the Department complied with the jurisdictional requirements
26of the Act in arriving at its final assessment or its revised

 

 

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1final assessment and that the taxpayer had his opportunity for
2an administrative hearing and for judicial review, whether he
3availed himself of either or both of these opportunities or
4not, the court shall render judgment in favor of the Department
5and against the taxpayer for the amount shown to be due by the
6final assessment or the revised final assessment, plus any
7interest which may be due, and such judgment shall be entered
8in the judgment docket of the court. Such judgment shall bear
9the same rate of interest and shall have the same effect as
10other judgments. The judgment may be enforced, and all laws
11applicable to sales for the enforcement of a judgment shall be
12applicable to sales made under such judgments. The Department
13shall file the certified copy of its assessment, as herein
14provided, with the Circuit Court within 2 years after such
15assessment becomes final except when the taxpayer consents in
16writing to an extension of such filing period, and except that
17the time limitation period on the Department's right to file
18the certified copy of its assessment with the Circuit Court
19shall not run during any period of time in which the order of
20any court has the effect of enjoining or restraining the
21Department from filing such certified copy of its assessment
22with the Circuit Court.
23    If, when the cause of action for a proceeding in court
24accrues against a person, he or she is out of the State, the
25action may be commenced within the times herein limited, after
26his or her coming into or returning to the State; and if, after

 

 

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1the cause of action accrues, he or she departs from and remains
2out of the State, the time of his or her absence from the
3State, the time of his or her absence is no part of the time
4limited for the commencement of the action; but the foregoing
5provisions concerning absence from the State shall not apply to
6any case in which, at the time the cause of action accrues, the
7party against whom the cause of action accrues is not a
8resident of this State. The time within which a court action is
9to be commenced by the Department hereunder shall not run from
10the date the taxpayer files a petition in bankruptcy under the
11Federal Bankruptcy Act until 30 days after notice of
12termination or expiration of the automatic stay imposed by the
13Federal Bankruptcy Act.
14    No claim shall be filed against the estate of any deceased
15person or any person under legal disability for any tax or
16penalty or part of either, or interest, except in the manner
17prescribed and within the time limited by the Probate Act of
181975, as amended.
19    The collection of tax or penalty or interest by any means
20provided for herein shall not be a bar to any prosecution under
21this Act.
22    In addition to any penalty provided for in this Act, any
23amount of tax which is not paid when due shall bear interest at
24the rate determined in accordance with the Uniform Penalty and
25Interest Act, per month or fraction thereof from the date when
26such tax becomes past due until such tax is paid or a judgment

 

 

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1therefor is obtained by the Department. If the time for making
2or completing an audit of a taxpayer's books and records is
3extended with the taxpayer's consent, at the request of and for
4the convenience of the Department, beyond the date on which the
5statute of limitations upon the issuance of a notice of tax
6liability by the Department otherwise run, no interest shall
7accrue during the period of such extension. Interest shall be
8collected in the same manner and as part of the tax.
9    If the Department determines that an amount of tax or
10penalty or interest was incorrectly assessed, whether as the
11result of a mistake of fact or an error of law, the Department
12shall waive the amount of tax or penalty or interest that
13accrued due to the incorrect assessment.
14(Source: P.A. 97-1129, eff. 8-28-12.)
 
15    (35 ILCS 520/17)  (from Ch. 120, par. 2167)
16    Sec. 17. Filing and Priority of Liens. (a) Filing in the
17Uniform Tax Lien Registry with Recorder. Nothing in this Act
18shall be construed to give the Department a preference over the
19rights of any bona fide purchaser, holder of a security
20interest, mechanics lienholder, mortgagee, or judgment lien
21creditor arising prior to the filing of a regular notice of
22lien or a notice of jeopardy assessment lien in the Uniform Tax
23Lien Registry office of the recorder in the county in which the
24property subject to the lien is located. For purposes of this
25section, the term "bona fide," shall not include any mortgage

 

 

SB3323- 30 -LRB099 19735 HLH 45242 b

1of real or personal property or any other credit transaction
2that results in the mortgagee or the holder of the security
3acting as trustee for unsecured creditors of the taxpayer
4mentioned in the notice of lien who executed such chattel or
5real property mortgage or the document evidencing such credit
6transaction. Such lien shall be inferior to the lien of general
7taxes, special assessments and special taxes heretofore or
8hereafter levied by any political subdivision of this State.
9    (b) Filing with Registrar. In case title to land to be
10affected by the notice of lien or notice of jeopardy assessment
11lien is registered under the provisions of "An Act concerning
12land titles," approved May 1, 1897, as amended, such notice
13shall also be filed in the Uniform Tax Lien Registry office of
14the Registrar of Titles of the county within which the property
15subject to the lien is situated and shall be entered upon the
16register of titles as a memorial of charge upon each folium of
17the register of titles affected by such notice, and the
18Department shall not have a preference over the rights of any
19bona fide purchaser, mortgagee, judgment creditor or other lien
20holder arising prior to the registration of such notice.
21    (c) (Blank). No recorder or registrar of titles of any
22county shall require that the Department pay any costs or fees
23in connection with recordation of any notice or other document
24filed by the Department under this Act at the time such notice
25or other document is presented for recordation.
26(Source: P.A. 86-905.)
 

 

 

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1    (35 ILCS 520/19)  (from Ch. 120, par. 2169)
2    Sec. 19. Release of Liens.
3    (a) In general. The Department shall release all or any
4portion of the property subject to any lien provided for in
5this Act if it determines that the release will not endanger or
6jeopardize the collection of the amount secured thereby. The
7Department shall release its lien on property which is the
8subject of forfeiture proceedings under the Narcotics Profit
9Forfeiture Act, the Criminal Code of 2012, or the Drug Asset
10Forfeiture Procedure Act until all forfeiture proceedings are
11concluded. Property forfeited shall not be subject to a lien
12under this Act.
13    (b) Judicial determination. If on judicial review the final
14judgment of the court is that the taxpayer does not owe some or
15all of the amount secured by the lien against him, or that no
16jeopardy to the revenue exists, the Department shall release
17its lien to the extent of such finding of nonliability, or to
18the extent of such finding of no jeopardy to the revenue.
19    (c) Payment. The Department shall also release its jeopardy
20assessment lien against the taxpayer whenever the tax and
21penalty covered by such lien, plus any interest which may be
22due, are paid.
23    (d) Certificate of release. The Department shall issue a
24certificate of complete or partial release of the lien:
25        (1) To the extent that the fair market value of any

 

 

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1    property subject to the lien exceeds the amount of the lien
2    plus the amount of all prior liens upon such property;
3        (2) To the extent that such lien shall become
4    unenforceable;
5        (3) To the extent that the amount of such lien is paid
6    by the person whose property is subject to such lien,
7    together with any interest and penalty which may become due
8    under this Act between the date when the notice of lien is
9    filed and the date when the amount of such lien is paid;
10        (4) To the extent and under the circumstances specified
11    in this Section. A certificate of complete or partial
12    release of any lien shall be held conclusive that the lien
13    upon the property covered by the certificate is
14    extinguished to the extent indicated by such certificate.
15    Such release of lien shall be issued to the person, or his
16agent, against whom the lien was obtained and shall contain in
17legible letters a statement as follows:
18    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
19    BE FILED IN THE UNIFORM STATE TAX LIEN REGISTRY WITH THE 
20RECORDER OR THE REGISTRAR
21    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
22    (e) Filing. When a certificate of complete or partial
23release of lien issued by the Department is filed in the
24Uniform State Tax Lien Registry, the Department presented for
25filing in the office of the recorder or Registrar of Titles
26where a notice of lien or notice of jeopardy assessment lien

 

 

SB3323- 33 -LRB099 19735 HLH 45242 b

1was filed:
2        (1) The recorder, in the case of nonregistered
3    property, shall permanently attach the certificate of
4    release to the notice of lien or notice of jeopardy
5    assessment lien and shall enter the certificate of release
6    and the date in the "State Tax Lien Index" on the line
7    where the notice of lien or notice of jeopardy assessment
8    lien is entered. ; and
9        (2) In the case of registered property, the Registrar
10    of Titles shall file and enter upon each folium of the
11    register of titles affected thereby a memorial of the
12    certificate of release which memorial when so entered shall
13    act as a release pro tanto of any memorial of such notice
14    of lien or notice of jeopardy assessment lien previously
15    filed and registered.
16(Source: P.A. 97-1150, eff. 1-25-13.)
 
17    Section 5-20. The Illinois Municipal Code is amended by
18changing Section 8-3-15 as follows:
 
19    (65 ILCS 5/8-3-15)  (from Ch. 24, par. 8-3-15)
20    Sec. 8-3-15. The corporate authorities of each
21municipality shall have all powers necessary to enforce the
22collection of any tax imposed and collected by such
23municipality, whether such tax was imposed pursuant to its home
24rule powers or statutory authorization, including but not

 

 

SB3323- 34 -LRB099 19735 HLH 45242 b

1limited to subpoena power and the power to create and enforce
2liens. No such lien shall affect the rights of bona fide
3purchasers, mortgagees, judgment creditors or other
4lienholders who acquire their interests in such property prior
5to the time a notice of such lien is placed on record in the
6office of the recorder or the registrar of titles of the county
7in which the property is located. However, nothing in this
8Section shall permit a municipality to place a lien upon
9property not located or found within its corporate boundaries.
10A municipality creating a lien may provide that the procedures
11for its notice and enforcement shall be the same as that
12provided in the Retailers' Occupation Tax Act, as that Act
13existed prior to the adoption of the Uniform State Tax Lien
14Registration Act now or hereafter amended, for State tax liens,
15and any recorder or registrar of titles with whom a notice of
16such lien is filed shall treat such lien as a State tax lien
17for recording purposes.
18(Source: P.A. 86-680.)
 
19    Section 5-25. The Title Insurance Act is amended by
20changing Section 22 as follows:
 
21    (215 ILCS 155/22)  (from Ch. 73, par. 1422)
22    Sec. 22. Tax indemnity; notice. A corporation authorized to
23do business under this Act shall notify the Director of Revenue
24of the State of Illinois, by notice directed to his office in

 

 

SB3323- 35 -LRB099 19735 HLH 45242 b

1the City of Chicago, of each trust account or similar account
2established which relates to title exceptions due to a judgment
3lien or any other lien arising under any tax Act administered
4by the Illinois Department of Revenue, when notice of such lien
5has been filed with the registrar of titles or recorder or in
6the Uniform State Tax Lien Registry, as the case may be, in the
7manner prescribed by law. Such notice shall contain the name,
8address, and tax identification number of the debtor, the
9permanent real estate index numbers, if any, and the address
10and legal description of the property, the type of lien claimed
11by the Department and identification of any trust fund or
12similar account held by such corporation or any agent thereof
13relating to such lien. Any trust fund or similar account
14established by such corporation or agent relating to any such
15lien shall include provisions requiring such corporation or
16agent to apply such fund in satisfaction or release of such
17lien upon written demand therefor by the Department of Revenue.
18(Source: P.A. 94-893, eff. 6-20-06.)
 
19
ARTICLE 99. EFFECTIVE DATE

 
20    Section 99-999. Effective date. This Act takes effect
21January 1, 2017.