HB0506 EngrossedLRB097 03334 HLH 43371 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
5Sections 9-195, 10-380, and 15-35 and by adding Sections 9-275,
615-57, and 16-181 as follows:
 
7    (35 ILCS 200/9-195)
8    Sec. 9-195. Leasing of exempt property.
9    (a) Except as provided in Sections 15-35, 15-55, 15-57,
1015-60, 15-100, 15-103, and 15-185, when property which is
11exempt from taxation is leased to another whose property is not
12exempt, and the leasing of which does not make the property
13taxable, the leasehold estate and the appurtenances shall be
14listed as the property of the lessee thereof, or his or her
15assignee. Taxes on that property shall be collected in the same
16manner as on property that is not exempt, and the lessee shall
17be liable for those taxes. However, no tax lien shall attach to
18the exempt real estate. The changes made by this amendatory Act
19of 1997 and by this amendatory Act of the 91st General Assembly
20are declaratory of existing law and shall not be construed as a
21new enactment. The changes made by Public Acts 88-221 and
2288-420 that are incorporated into this Section by this
23amendatory Act of 1993 are declarative of existing law and are

 

 

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1not a new enactment.
2    (b) The provisions of this Section regarding taxation of
3leasehold interests in exempt property do not apply to any
4leasehold interest created pursuant to any transaction
5described in subsection (e) of Section 15-35, item (a) of
6Section 15-35, Section 15-57, subsection (c-5) of Section
715-60, subsection (b) of Section 15-100, Section 15-103, or
8Section 15-185.
9(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02;
1093-19, eff. 6-20-03.)
 
11    (35 ILCS 200/9-275 new)
12    Sec. 9-275. Erroneous homestead exemptions.
13    (a) If, upon determination by the chief county assessment
14officer, any person or entity that was not eligible to receive
15a homestead exemption under Article 15 of this Code was granted
16one homestead exemption in error for real property in any year
17or years not to exceed the 3 assessment years prior to the
18assessment year in which the determination is made, then the
19chief county assessment officer may cause to be served on the
20person to whom the most recent tax bill was mailed a notice of
21intent to record a tax lien against the property with respect
22to which the erroneous homestead exemption was granted.
23    (b) If, upon determination by the chief county assessment
24officer, any person or entity that was not eligible to receive
25a homestead exemption under Article 15 of this Code was granted

 

 

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12 homestead exemptions in error for real property in any year
2or years not to exceed the 3 assessment years prior to the
3assessment year in which the determination is made, then the
4chief county assessment officer may cause to be served on the
5person to whom the most recent tax bill was mailed a notice of
6intent to record a tax lien against the property with respect
7to which the erroneous homestead exemption was granted.
8    (c) If, upon determination by the chief county assessment
9officer, any person or entity that was not eligible to receive
10a homestead exemption under Article 15 of this Code was granted
113 or more homestead exemptions in error for real property in
12any year or years not to exceed the 6 assessment years prior to
13the assessment year in which the determination is made, then
14the chief county assessment officer may cause to be served on
15the person to whom the most recent tax bill was mailed a notice
16of intent to record a tax lien against the property with
17respect to which the erroneous homestead exemption was granted.
18    (d) The notice of intent to record a tax lien described in
19subsections (a), (b), and (c) of this Section shall identify
20the property against which the lien is being sought and shall
21identify the assessment years in which the erroneous homestead
22exemption was granted.
23    In counties with 3,000,000 or more inhabitants, the notice
24must also include a form that the property owner may return to
25the chief county assessment officer to request a hearing. The
26property owner may request a hearing by returning the form

 

 

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1within 30 days after service. The hearing shall be held within
290 days after the property owner is served. The chief county
3assessment officer shall promulgate rules of service and
4procedure for the hearing. The chief county assessment officer
5must generally follow rules of evidence and practices that
6prevail in the county circuit courts, but, because of the
7nature of these proceedings, the chief county assessment
8officer is not bound by those rules in all particulars. The
9chief county assessment officer shall appoint a hearing officer
10to oversee the hearing. The property owner shall be allowed to
11present evidence to the hearing officer at the hearing. After
12taking into consideration all the relevant testimony and
13evidence, the hearing officer shall make an administrative
14decision on whether the property owner was erroneously granted
15a homestead exemption for the assessment year or years in
16question. The property owner may appeal the hearing officer's
17ruling to the circuit court of the county where the property is
18located under the Administrative Review Law.
19    In counties with less than 3,000,000 inhabitants, the
20notice must also include a form that the property owner may
21return to the board of review to request a hearing. The
22property owner may request a hearing by returning the form
23within 30 days after service. The hearing shall be held within
2490 days after the property owner is served. The board of review
25shall follow its normal practices and procedures in conducting
26the hearing. The property owner shall be allowed to present

 

 

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1evidence to the board of review. After taking into
2consideration all of the relevant testimony and evidence, the
3board of review shall issue a decision on whether the property
4owner was erroneously granted a homestead exemption for the
5assessment year or years in question. The property owner may
6appeal the board of review's ruling to the circuit court of the
7county where the property is located under the Administrative
8Review Law.
9    (e) A lien imposed under this Section shall be filed with
10the county clerk and the county recorder of deeds, but may not
11be filed sooner than 45 days after the notice was delivered to
12the property owner if the property owner does not request a
13hearing, or, until the conclusion of the hearing and all
14appeals if the property owner does request a hearing.
15        (1) When a lien is filed pursuant to subsection (a) of
16    this Section, the arrearages of taxes that might have been
17    assessed, plus 5% interest per annum, shall be charged
18    against the property by the county clerk.
19        (2) When a lien is filed pursuant to subsection (b) of
20    this Section, the arrearages of taxes that might have been
21    assessed, plus a penalty of 25% of the total amount of
22    unpaid taxes for each year and 10% interest per annum,
23    shall be charged against the property by the county clerk.
24        (3) When a lien is filed pursuant to subsection (c) of
25    this Section, the arrearages of taxes that might have been
26    assessed, plus a penalty of 40% of the total amount of

 

 

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1    unpaid taxes for each year and 15% interest per annum,
2    shall be charged against the property by the county clerk.
3    (f) If the erroneous homestead exemption was granted as a
4result of a clerical error or omission on the part of the chief
5county assessment officer, and if the owner has paid its tax
6bills as received for the year or years in which the error
7occurred, then the interest and penalties authorized by this
8Section shall not be chargeable to the owner. However, nothing
9in this Section shall prevent the collection of the principal
10amount of back taxes due and owing.
11    (g) If, at the hearing, the property owner establishes that
12it is a bona fide purchaser of the property for value, and
13without notice of the erroneous homestead exemption, the
14property owner shall not be liable for any unpaid back taxes,
15interest, or penalties for the period of time prior to the date
16that the property owner purchased the property. A certified
17title to the property that is issued by the county clerk or
18county recorder of deeds and is free and clear of any liens
19imposed under subsections (a), (b), or (c) of this Section,
20shall be prima facie evidence that the property owner is
21without notice of the erroneous homestead exemption.
22    (h) When a lien is filed pursuant to subsection (e) of this
23Section, the chief county assessment officer shall mail a copy
24of the lien to the person to whom the most recent tax bill was
25mailed and the outstanding liability created by such a lien is
26due and payable within 30 days after the mailing of the lien by

 

 

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1the chief county assessment officer. This liability is deemed
2delinquent and shall bear interest beginning on the day after
3the due date. Any such liability deemed delinquent after that
4due date shall bear interest at the rate of 1.5% per month or
5portion thereof until paid.
6    (i) The unpaid taxes shall be paid to the appropriate
7taxing districts. Interest shall be paid to the county where
8the property is located. The penalty shall be paid to the chief
9county assessment officer's office for the administration of
10the provisions of this amendatory Act of the 97th General
11Assembly.
12    (j) For purposes of this Section, "homestead exemption"
13means an exemption under Section 15-165 (disabled veterans),
1415-167 (returning veterans), 15-168 (disabled persons), 15-169
15(disabled veterans standard homestead), 15-170 (senior
16citizens), 15-172 (senior citizens assessment freeze), 15-175
17(general homestead), 15-176 (alternative general homestead),
18or 15-177 (long-time occupant).
 
19    (35 ILCS 200/10-380)
20    Sec. 10-380. For the taxable years 2006 and thereafter ,
212007, 2008, and 2009, the chief county assessment officer in
22the county in which property subject to a PPV Lease is located
23shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of
24this Division 14 in assessing and determining the value of any
25PPV Lease for purposes of the property tax laws of this State.

 

 

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1(Source: P.A. 94-974, eff. 6-30-06.)
 
2    (35 ILCS 200/15-35)
3    Sec. 15-35. Schools. All property donated by the United
4States for school purposes, and all property of schools, not
5sold or leased or otherwise used with a view to profit, is
6exempt, whether owned by a resident or non-resident of this
7State or by a corporation incorporated in any state of the
8United States. Also exempt is:
9        (a) property, along with the leasehold interest in that
10    property, of schools which is leased to the State, a unit
11    of local government, or school district municipality to be
12    used for governmental municipal purposes on a
13    not-for-profit basis;
14        (b) property of schools on which the schools are
15    located and any other property of schools used by the
16    schools exclusively for school purposes, including, but
17    not limited to, student residence halls, dormitories and
18    other housing facilities for students and their spouses and
19    children, staff housing facilities, and school-owned and
20    operated dormitory or residence halls occupied in whole or
21    in part by students who belong to fraternities, sororities,
22    or other campus organizations;
23        (c) property donated, granted, received or used for
24    public school, college, theological seminary, university,
25    or other educational purposes, whether held in trust or

 

 

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1    absolutely;
2        (d) in counties with more than 200,000 inhabitants
3    which classify property, property (including interests in
4    land and other facilities) on or adjacent to (even if
5    separated by a public street, alley, sidewalk, parkway or
6    other public way) the grounds of a school, if that property
7    is used by an academic, research or professional society,
8    institute, association or organization which serves the
9    advancement of learning in a field or fields of study
10    taught by the school and which property is not used with a
11    view to profit;
12        (e) property owned by a school district. The exemption
13    under this subsection is not affected by any transaction in
14    which, for the purpose of obtaining financing, the school
15    district, directly or indirectly, leases or otherwise
16    transfers the property to another for which or whom
17    property is not exempt and immediately after the lease or
18    transfer enters into a leaseback or other agreement that
19    directly or indirectly gives the school district a right to
20    use, control, and possess the property. In the case of a
21    conveyance of the property, the school district must retain
22    an option to purchase the property at a future date or,
23    within the limitations period for reverters, the property
24    must revert back to the school district.
25            (1) If the property has been conveyed as described
26        in this subsection, the property is no longer exempt

 

 

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1        under this Section as of the date when:
2                (A) the right of the school district to use,
3            control, and possess the property is terminated;
4                (B) the school district no longer has an option
5            to purchase or otherwise acquire the property; and
6                (C) there is no provision for a reverter of the
7            property to the school district within the
8            limitations period for reverters.
9            (2) Pursuant to Sections 15-15 and 15-20 of this
10        Code, the school district shall notify the chief county
11        assessment officer of any transaction under this
12        subsection. The chief county assessment officer shall
13        determine initial and continuing compliance with the
14        requirements of this subsection for tax exemption.
15        Failure to notify the chief county assessment officer
16        of a transaction under this subsection or to otherwise
17        comply with the requirements of Sections 15-15 and
18        15-20 of this Code shall, in the discretion of the
19        chief county assessment officer, constitute cause to
20        terminate the exemption, notwithstanding any other
21        provision of this Code.
22            (3) No provision of this subsection shall be
23        construed to affect the obligation of the school
24        district to which an exemption certificate has been
25        issued under this Section from its obligation under
26        Section 15-10 of this Code to file an annual

 

 

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1        certificate of status or to notify the chief county
2        assessment officer of transfers of interest or other
3        changes in the status of the property as required by
4        this Code.
5            (4) The changes made by this amendatory Act of the
6        91st General Assembly are declarative of existing law
7        and shall not be construed as a new enactment; and
8        (f) in counties with more than 200,000 inhabitants
9    which classify property, property of a corporation, which
10    is an exempt entity under paragraph (3) of Section 501(c)
11    of the Internal Revenue Code or its successor law, used by
12    the corporation for the following purposes: (1) conducting
13    continuing education for professional development of
14    personnel in energy-related industries; (2) maintaining a
15    library of energy technology information available to
16    students and the public free of charge; and (3) conducting
17    research in energy and environment, which research results
18    could be ultimately accessible to persons involved in
19    education.
20(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
2192-16, eff. 6-28-01.)
 
22    (35 ILCS 200/15-57 new)
23    Sec. 15-57. Government property leased to another
24government entity. If property is owned by the State, a unit of
25local government, or a school district and that property is

 

 

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1leased to the State, a unit of local government, or a school
2district, then the property is exempt from taxation under this
3Code and the leasehold interest is exempt from taxation under
4this Code or under any other law. The provisions of this
5Section apply notwithstanding any other provision of law.
 
6    (35 ILCS 200/16-181 new)
7    Sec. 16-181. Stipulation to revised assessment. The board
8of review whose decision is being appealed may, at its
9discretion, enter into discussions with a taxpayer aimed at
10achieving a stipulated revised assessment upon the property,
11either prior to or after receipt of the taxpayer's petition
12from the Property Tax Appeal Board. If such discussions
13commence prior to the board of review's receipt of the
14taxpayer's petition from the Property Tax Appeal Board, the
15taxpayer shall provide the board of review with such evidence
16of the taxpayer's timely filing of its appeal before the
17Property Tax Appeal Board as the board of review may request,
18including but not limited to a copy of the taxpayer's petition
19as filed with the Property Tax Appeal Board. If, after
20discussions have been entered into, the taxpayer and the board
21of review propose to stipulate to a revised assessment of the
22property, and if the original complaint requested a reduction
23in assessed value of more than $100,000, then the board of
24review shall first serve a copy of the proposed stipulation or
25assessment agreement on all taxing districts as shown on the

 

 

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1last available property tax bill, along with a copy of the
2taxpayer's petition as provided to the board of review and all
3other evidence used to reach the settlement. The taxing
4districts so served shall have a period of 45 days after the
5postmark date of the notice from the board of review to file a
6written objection to the proposal, stating the reasons for the
7objection, with the board of review. Failure of a taxing
8district to object to the proposed assessment within the 45-day
9objection period shall be considered acceptance of the proposed
10assessment. Upon the later of (i) the expiration of the 45-day
11objection period or (ii) written resolution of any timely filed
12written objection received from a taxing district, the board of
13review shall provide the proposed stipulation or assessment
14agreement to the Property Tax Appeal Board along with a
15certificate of service affirming that all taxing districts have
16been notified of the proposed stipulation or assessment
17agreement, and that no timely written objections to the
18stipulation or assessment agreement have been received or that
19any such objections have been fully resolved. The certificate
20of service shall be signed by a member of the board of review
21or the clerk of the board of review. Within 120 days after the
22Property Tax Appeal Board's receipt of the stipulation or
23assessment agreement and certificate of service, the Property
24Tax Appeal Board shall issue a decision in accordance with the
25stipulation or assessment agreement, unless it finds that the
26Property Tax Appeal Board lacks jurisdiction over the appeal or

 

 

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1that the stipulation or assessment agreement is against the
2manifest weight of the evidence.
3    If the board of review provides notice to the affected
4taxing districts of the proposed stipulation or assessment
5agreement, and a taxing district (i) does not respond to the
6notice, (ii) accepts the proposed assessment, or (iii) reaches
7a written resolution with the board of review and the taxpayer,
8then the board of review is not required to otherwise send
9notice as required by Section 16-180 of the Property Tax Code
10to that taxing district, and that taxing district is precluded
11from intervening or otherwise participating in the appeal
12pending before the Property Tax Appeal Board challenging the
13assessment. If a taxing district files a written objection to
14the proposal to the board of review which is not followed by a
15written resolution, then the appeal shall proceed as provided
16by law, the board of review must notify that taxing district as
17required by Section 16-180, and any proposed stipulation or
18assessment agreement shall not be considered or introduced as
19evidence in any proceeding before the Property Tax Appeal
20Board.
 
21    Section 90. The State Mandates Act is amended by adding
22Section 8.35 as follows:
 
23    (30 ILCS 805/8.35 new)
24    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8

 

 

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1of this Act, no reimbursement by the State is required for the
2implementation of any mandate created by this amendatory Act of
3the 97th General Assembly.
 
4    Section 95. Applicability. The changes made by this
5amendatory Act of the 97th General Assembly to the Property Tax
6Code by changing Sections 9-195 and 15-35 and by adding Section
715-57 and to the State Mandates Act by adding Section 8.35
8apply to taxable years 2010 and thereafter. In addition, those
9changes and additions also apply to taxable years prior to
102010, but no such taxes paid for any taxable year prior to 2010
11need be refunded.
 
12    Section 97. Severability. The provisions of this Act are
13severable under Section 1.31 of the Statute on Statutes.