Rep. Barbara Flynn Currie

Filed: 10/21/2011

 

 


 

 


 
09700HB0506ham001LRB097 03334 HLH 58741 a

1
AMENDMENT TO HOUSE BILL 506

2    AMENDMENT NO. ______. Amend House Bill 506 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1be liable for those taxes. However, no tax lien shall attach to
2the exempt real estate. The changes made by this amendatory Act
3of 1997 and by this amendatory Act of the 91st General Assembly
4are declaratory of existing law and shall not be construed as a
5new enactment. The changes made by Public Acts 88-221 and
688-420 that are incorporated into this Section by this
7amendatory Act of 1993 are declarative of existing law and are
8not a new enactment.
9    (b) The provisions of this Section regarding taxation of
10leasehold interests in exempt property do not apply to any
11leasehold interest created pursuant to any transaction
12described in subsection (e) of Section 15-35, item (a) of
13Section 15-35, Section 15-57, subsection (c-5) of Section
1415-60, subsection (b) of Section 15-100, Section 15-103, or
15Section 15-185.
16(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02;
1793-19, eff. 6-20-03.)
 
18    (35 ILCS 200/9-275 new)
19    Sec. 9-275. Erroneous homestead exemptions.
20    (a) If, upon determination by the chief county assessment
21officer, any person or entity that was not eligible to receive
22a homestead exemption under Article 15 of this Code was granted
23one homestead exemption in error for real property in any year
24or years not to exceed the 3 assessment years prior to the
25assessment year in which the determination is made, then the

 

 

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1chief county assessment officer may cause to be served on the
2person to whom the most recent tax bill was mailed a notice of
3intent to record a tax lien against the property with respect
4to which the erroneous homestead exemption was granted.
5    (b) If, upon determination by the chief county assessment
6officer, any person or entity that was not eligible to receive
7a homestead exemption under Article 15 of this Code was granted
82 homestead exemptions in error for real property in any year
9or years not to exceed the 3 assessment years prior to the
10assessment year in which the determination is made, then the
11chief county assessment officer may cause to be served on the
12person to whom the most recent tax bill was mailed a notice of
13intent to record a tax lien against the property with respect
14to which the erroneous homestead exemption was granted.
15    (c) If, upon determination by the chief county assessment
16officer, any person or entity that was not eligible to receive
17a homestead exemption under Article 15 of this Code was granted
183 or more homestead exemptions in error for real property in
19any year or years not to exceed the 6 assessment years prior to
20the assessment year in which the determination is made, then
21the chief county assessment officer may cause to be served on
22the person to whom the most recent tax bill was mailed a notice
23of intent to record a tax lien against the property with
24respect to which the erroneous homestead exemption was granted.
25    (d) The notice of intent to record a tax lien described in
26subsections (a), (b), and (c) of this Section shall identify

 

 

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1the property against which the lien is being sought and shall
2identify the assessment years in which the erroneous homestead
3exemption was granted.
4    In counties with 3,000,000 or more inhabitants, the notice
5must also include a form that the property owner may return to
6the chief county assessment officer to request a hearing. The
7property owner may request a hearing by returning the form
8within 30 days after service. The hearing shall be held within
990 days after the property owner is served. The chief county
10assessment officer shall promulgate rules of service and
11procedure for the hearing. The chief county assessment officer
12must generally follow rules of evidence and practices that
13prevail in the county circuit courts, but, because of the
14nature of these proceedings, the chief county assessment
15officer is not bound by those rules in all particulars. The
16chief county assessment officer shall appoint a hearing officer
17to oversee the hearing. The property owner shall be allowed to
18present evidence to the hearing officer at the hearing. After
19taking into consideration all the relevant testimony and
20evidence, the hearing officer shall make an administrative
21decision on whether the property owner was erroneously granted
22a homestead exemption for the assessment year or years in
23question. The property owner may appeal the hearing officer's
24ruling to the circuit court of the county where the property is
25located under the Administrative Review Law.
26    In counties with less than 3,000,000 million inhabitants,

 

 

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1the notice must also include a form that the property owner may
2return to the board of review to request a hearing. The
3property owner may request a hearing by returning the form
4within 30 days after service. The hearing shall be held within
590 days after the property owner is served. The board of review
6shall follow its normal practices and procedures in conducting
7the hearing. The property owner shall be allowed to present
8evidence to the board of review. After taking into
9consideration all of the relevant testimony and evidence, the
10board of review shall issue a decision on whether the property
11owner was erroneously granted a homestead exemption for the
12assessment year or years in question. The property owner may
13appeal the board of review's ruling to the circuit court of the
14county where the property is located under the Administrative
15Review Law.
16    (e) A lien imposed under this Section shall be filed with
17the county clerk and the county recorder of deeds, but may not
18be filed sooner than 45 days after the notice was delivered to
19the property owner if the property owner does not request a
20hearing, or, until the conclusion of the hearing and all
21appeals if the property owner does request a hearing.
22        (1) When a lien is filed pursuant to subsection (a) of
23    this Section, the arrearages of taxes that might have been
24    assessed, plus 5% interest per annum, shall be charged
25    against the property by the county clerk.
26        (2) When a lien is filed pursuant to subsection (b) of

 

 

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1    this Section, the arrearages of taxes that might have been
2    assessed, plus a penalty of 25% of the total amount of
3    unpaid taxes for each year and 10% interest per annum,
4    shall be charged against the property by the county clerk.
5        (3) When a lien is filed pursuant to subsection (c) of
6    this Section, the arrearages of taxes that might have been
7    assessed, plus a penalty of 40% of the total amount of
8    unpaid taxes for each year and 15% interest per annum,
9    shall be charged against the property by the county clerk.
10    (f) If the erroneous homestead exemption was granted as a
11result of a clerical error or omission on the part of the chief
12county assessment officer, and if the owner has paid its tax
13bills as received for the year or years in which the error
14occurred, then the interest and penalties authorized by this
15Section shall not be chargeable to the owner. However, nothing
16in this Section shall prevent the collection of the principal
17amount of back taxes due and owing.
18    (g) If, at the hearing, the property owner establishes that
19it is a bona fide purchaser of the property for value, and
20without notice of the erroneous homestead exemption, the
21property owner shall not be liable for any unpaid back taxes,
22interest, or penalties for the period of time prior to the date
23that the property owner purchased the property. A certified
24title to the property that is issued by the county clerk or
25county recorder of deeds and is free and clear of any liens
26imposed under subsections (a), (b), or (c) of this Section,

 

 

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1shall be prima facie evidence that the property owner is
2without notice of the erroneous homestead exemption.
3    (h) When a lien is filed pursuant to subsection (e) of this
4Section, the chief county assessment officer shall mail a copy
5of the lien to the person to whom the most recent tax bill was
6mailed and the outstanding liability created by such a lien is
7due and payable within 30 days after the mailing of the lien by
8the chief county assessment officer. This liability is deemed
9delinquent and shall bear interest beginning on the day after
10the due date. Any such liability deemed delinquent after that
11due date shall bear interest at the rate of 1.5% per month or
12portion thereof until paid.
13    (i) The unpaid taxes shall be paid to the appropriate
14taxing districts. Interest shall be paid to the county where
15the property is located. The penalty shall be paid to the chief
16county assessment officer's office for the administration of
17the provisions of this amendatory Act of the 97th General
18Assembly.
19    (j) For purposes of this Section, "homestead exemption"
20means an exemption under Section 15-165 (disabled veterans),
2115-167 (returning veterans), 15-168 (disabled persons), 15-169
22(disabled veterans standard homestead), 15-170 (senior
23citizens), 15-172 (senior citizens assessment freeze), 15-175
24(general homestead), 15-176 (alternative general homestead),
25or 15-177 (long-time occupant).
 

 

 

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1    (35 ILCS 200/10-380)
2    Sec. 10-380. For the taxable years 2006 and thereafter ,
32007, 2008, and 2009, the chief county assessment officer in
4the county in which property subject to a PPV Lease is located
5shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of
6this Division 14 in assessing and determining the value of any
7PPV Lease for purposes of the property tax laws of this State.
8(Source: P.A. 94-974, eff. 6-30-06.)
 
9    (35 ILCS 200/15-35)
10    Sec. 15-35. Schools. All property donated by the United
11States for school purposes, and all property of schools, not
12sold or leased or otherwise used with a view to profit, is
13exempt, whether owned by a resident or non-resident of this
14State or by a corporation incorporated in any state of the
15United States. Also exempt is:
16        (a) property, along with the leasehold interest in that
17    property, of schools which is leased to the State, a unit
18    of local government, or school district municipality to be
19    used for governmental municipal purposes on a
20    not-for-profit basis;
21        (b) property of schools on which the schools are
22    located and any other property of schools used by the
23    schools exclusively for school purposes, including, but
24    not limited to, student residence halls, dormitories and
25    other housing facilities for students and their spouses and

 

 

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1    children, staff housing facilities, and school-owned and
2    operated dormitory or residence halls occupied in whole or
3    in part by students who belong to fraternities, sororities,
4    or other campus organizations;
5        (c) property donated, granted, received or used for
6    public school, college, theological seminary, university,
7    or other educational purposes, whether held in trust or
8    absolutely;
9        (d) in counties with more than 200,000 inhabitants
10    which classify property, property (including interests in
11    land and other facilities) on or adjacent to (even if
12    separated by a public street, alley, sidewalk, parkway or
13    other public way) the grounds of a school, if that property
14    is used by an academic, research or professional society,
15    institute, association or organization which serves the
16    advancement of learning in a field or fields of study
17    taught by the school and which property is not used with a
18    view to profit;
19        (e) property owned by a school district. The exemption
20    under this subsection is not affected by any transaction in
21    which, for the purpose of obtaining financing, the school
22    district, directly or indirectly, leases or otherwise
23    transfers the property to another for which or whom
24    property is not exempt and immediately after the lease or
25    transfer enters into a leaseback or other agreement that
26    directly or indirectly gives the school district a right to

 

 

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1    use, control, and possess the property. In the case of a
2    conveyance of the property, the school district must retain
3    an option to purchase the property at a future date or,
4    within the limitations period for reverters, the property
5    must revert back to the school district.
6            (1) If the property has been conveyed as described
7        in this subsection, the property is no longer exempt
8        under this Section as of the date when:
9                (A) the right of the school district to use,
10            control, and possess the property is terminated;
11                (B) the school district no longer has an option
12            to purchase or otherwise acquire the property; and
13                (C) there is no provision for a reverter of the
14            property to the school district within the
15            limitations period for reverters.
16            (2) Pursuant to Sections 15-15 and 15-20 of this
17        Code, the school district shall notify the chief county
18        assessment officer of any transaction under this
19        subsection. The chief county assessment officer shall
20        determine initial and continuing compliance with the
21        requirements of this subsection for tax exemption.
22        Failure to notify the chief county assessment officer
23        of a transaction under this subsection or to otherwise
24        comply with the requirements of Sections 15-15 and
25        15-20 of this Code shall, in the discretion of the
26        chief county assessment officer, constitute cause to

 

 

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1        terminate the exemption, notwithstanding any other
2        provision of this Code.
3            (3) No provision of this subsection shall be
4        construed to affect the obligation of the school
5        district to which an exemption certificate has been
6        issued under this Section from its obligation under
7        Section 15-10 of this Code to file an annual
8        certificate of status or to notify the chief county
9        assessment officer of transfers of interest or other
10        changes in the status of the property as required by
11        this Code.
12            (4) The changes made by this amendatory Act of the
13        91st General Assembly are declarative of existing law
14        and shall not be construed as a new enactment; and
15        (f) in counties with more than 200,000 inhabitants
16    which classify property, property of a corporation, which
17    is an exempt entity under paragraph (3) of Section 501(c)
18    of the Internal Revenue Code or its successor law, used by
19    the corporation for the following purposes: (1) conducting
20    continuing education for professional development of
21    personnel in energy-related industries; (2) maintaining a
22    library of energy technology information available to
23    students and the public free of charge; and (3) conducting
24    research in energy and environment, which research results
25    could be ultimately accessible to persons involved in
26    education.

 

 

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1(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
292-16, eff. 6-28-01.)
 
3    (35 ILCS 200/15-57 new)
4    Sec. 15-57. Government property leased to another
5government entity. If property is owned by the State, a unit of
6local government, or a school district and that property is
7leased to the State, a unit of local government, or a school
8district, then the property is exempt from taxation under this
9Code and the leasehold interest is exempt from taxation under
10this Code or under any other law. The provisions of this
11Section apply notwithstanding any other provision of law.
 
12    (35 ILCS 200/16-181 new)
13    Sec. 16-181. Stipulation to revised assessment. The board
14of review whose decision is being appealed may, at its
15discretion, enter into discussions with a taxpayer aimed at
16achieving a stipulated revised assessment upon the property,
17either prior to or after receipt of the taxpayer's petition
18from the Property Tax Appeal Board. If such discussions
19commence prior to the board of review's receipt of the
20taxpayer's petition from the Property Tax Appeal Board, the
21taxpayer shall provide the board of review with such evidence
22of the taxpayer's timely filing of its appeal before the
23Property Tax Appeal Board as the board of review may request,
24including but not limited to a copy of the taxpayer's petition

 

 

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1as filed with the Property Tax Appeal Board. If, after
2discussions have been entered into, the taxpayer and the board
3of review propose to stipulate to a revised assessment of the
4property, and if the original complaint requested a reduction
5in assessed value of more than $100,000, then the board of
6review shall first serve a copy of the proposed stipulation or
7assessment agreement on all taxing districts as shown on the
8last available property tax bill, along with a copy of the
9taxpayer's petition as provided to the board of review and all
10other evidence used to reach the settlement. The taxing
11districts so served shall have a period of 45 days after the
12postmark date of the notice from the board of review to file a
13written objection to the proposal, stating the reasons for the
14objection, with the board of review. Failure of a taxing
15district to object to the proposed assessment within the 45-day
16objection period shall be considered acceptance of the proposed
17assessment. Upon the later of (i) the expiration of the 45-day
18objection period or (ii) written resolution of any timely filed
19written objection received from a taxing district, the board of
20review shall provide the proposed stipulation or assessment
21agreement to the Property Tax Appeal Board along with a
22certificate of service affirming that all taxing districts have
23been notified of the proposed stipulation or assessment
24agreement, and that no timely written objections to the
25stipulation or assessment agreement have been received or that
26any such objections have been fully resolved. The certificate

 

 

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1of service shall be signed by a member of the board of review
2or the clerk of the board of review. Within 120 days after the
3Property Tax Appeal Board's receipt of the stipulation or
4assessment agreement and certificate of service, the Property
5Tax Appeal Board shall issue a decision in accordance with the
6stipulation or assessment agreement, unless it finds that the
7Property Tax Appeal Board lacks jurisdiction over the appeal or
8that the stipulation or assessment agreement is against the
9manifest weight of the evidence.
10    If the board of review provides notice to the affected
11taxing districts of the proposed stipulation or assessment
12agreement, and a taxing district (i) does not respond to the
13notice, (ii) accepts the proposed assessment, or (iii) reaches
14a written resolution with the board of review and the taxpayer,
15then the board of review is not required to otherwise send
16notice as required by Section 16-180 of the Property Tax Code
17to that taxing district, and that taxing district is precluded
18from intervening or otherwise participating in the appeal
19pending before the Property Tax Appeal Board challenging the
20assessment. If a taxing district files a written objection to
21the proposal to the board of review which is not followed by a
22written resolution, then the appeal shall proceed as provided
23by law, the board of review must notify that taxing district as
24required by Section 16-180, and any proposed stipulation or
25assessment agreement shall not be considered or introduced as
26evidence in any proceeding before the Property Tax Appeal

 

 

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1Board.
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.35 as follows:
 
4    (30 ILCS 805/8.35 new)
5    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 97th General Assembly.
 
9    Section 95. Applicability. The changes made by this
10amendatory Act of the 97th General Assembly to the Property Tax
11Code by changing Sections 9-195 and 15-35 and by adding Section
1215-57 and to the State Mandates Act by adding Section 8.35
13apply to taxable years 2010 and thereafter. In addition, those
14changes and additions also apply to taxable years prior to
152010, but no such taxes paid for any taxable year prior to 2010
16need be refunded.
 
17    Section 97. Severability. The provisions of this Act are
18severable under Section 1.31 of the Statute on Statutes.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".