Sen. Dale A. Righter

Filed: 11/29/2011

 

 


 

 


 
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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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1arrearages of taxes that might have been assessed, plus 5%
2interest per annum, shall be charged against the property by
3the county clerk.
4    (b) If, upon determination by the chief county assessment
5officer, any person or entity that was not eligible to receive
6a homestead exemption under Article 15 of this Code was granted
72 homestead exemptions in error for real property in any year
8or years not to exceed the 3 assessment years prior to the
9assessment year in which the determination is made, then the
10arrearages of taxes that might have been assessed, plus a
11penalty of 25% of the total amount of unpaid taxes for each
12year and 10% interest per annum, shall be charged against the
13property by the county clerk.
14    (c) If, upon determination by the chief county assessment
15officer, any person or entity that was not eligible to receive
16a homestead exemption under Article 15 of this Code was granted
173 or more homestead exemptions in error for real property in
18any year or years not to exceed the 6 assessment years prior to
19the assessment year in which the determination is made, then
20the arrearages of taxes that might have been assessed, plus a
21penalty of 40% of the total amount of unpaid taxes for each
22year and 15% interest per annum, shall be charged against the
23property by the county clerk.
24    (d) The county clerk shall cause to be served upon the
25person to whom the most recent tax bill was mailed a notice of
26intent to collect the amounts set forth in subsection (a), (b),

 

 

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1or (c) of this Section. That notice shall identify the property
2against which the arrearages are charged and shall identify the
3assessment years in which the erroneous homestead exemption was
4granted.
5    In counties with 3,000,000 or more inhabitants, the notice
6must also include a form that the property owner may return to
7the chief county assessment officer to request a hearing. The
8property owner may request a hearing by returning the form
9within 30 days after service. The hearing shall be held within
1090 days after the property owner is served. The chief county
11assessment officer shall promulgate rules of service and
12procedure for the hearing. The chief county assessment officer
13must generally follow rules of evidence and practices that
14prevail in the county circuit courts, but, because of the
15nature of these proceedings, the chief county assessment
16officer is not bound by those rules in all particulars. The
17chief county assessment officer shall appoint a hearing officer
18to oversee the hearing. The property owner shall be allowed to
19present evidence to the hearing officer at the hearing. After
20taking into consideration all the relevant testimony and
21evidence, the hearing officer shall make an administrative
22decision on whether the property owner was erroneously granted
23a homestead exemption for the assessment year or years in
24question. The property owner may appeal the hearing officer's
25ruling to the circuit court of the county where the property is
26located under the Administrative Review Law.

 

 

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1    In counties with less than 3,000,000 inhabitants, the
2notice must also include a form that the property owner may
3return to the board of review to request a hearing. The
4property owner may request a hearing by returning the form
5within 30 days after service. The hearing shall be held within
690 days after the property owner is served. The board of review
7shall follow its normal practices and procedures in conducting
8the hearing. The property owner shall be allowed to present
9evidence to the board of review. After taking into
10consideration all of the relevant testimony and evidence, the
11board of review shall issue a decision on whether the property
12owner was erroneously granted a homestead exemption for the
13assessment year or years in question. The property owner may
14appeal the board of review's ruling to the circuit court of the
15county where the property is located under the Administrative
16Review Law.
17    (e) If the erroneous homestead exemption was granted as a
18result of a clerical error or omission on the part of the chief
19county assessment officer, and if the owner has paid its tax
20bills as received for the year or years in which the error
21occurred, then the interest and penalties authorized by this
22Section shall not be chargeable to the owner. However, nothing
23in this Section shall prevent the collection of the principal
24amount of back taxes due and owing.
25    (f) If, at the hearing, the property owner establishes that
26it is a bona fide purchaser of the property for value, and

 

 

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1without notice of the erroneous homestead exemption, the
2property owner shall not be liable for any unpaid back taxes,
3interest, or penalties for the period of time prior to the date
4that the property owner purchased the property.
5    (g) The unpaid taxes shall be paid to the appropriate
6taxing districts. Interest shall be paid to the county where
7the property is located. The penalty shall be paid to the chief
8county assessment officer's office for the administration of
9the provisions of this amendatory Act of the 97th General
10Assembly.
11    (h) For purposes of this Section, "homestead exemption"
12means an exemption under Section 15-165 (disabled veterans),
1315-167 (returning veterans), 15-168 (disabled persons), 15-169
14(disabled veterans standard homestead), 15-170 (senior
15citizens), 15-172 (senior citizens assessment freeze), 15-175
16(general homestead), 15-176 (alternative general homestead),
17or 15-177 (long-time occupant).
 
18    (35 ILCS 200/10-380)
19    Sec. 10-380. For the taxable years 2006 and thereafter ,
202007, 2008, and 2009, the chief county assessment officer in
21the county in which property subject to a PPV Lease is located
22shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of
23this Division 14 in assessing and determining the value of any
24PPV Lease for purposes of the property tax laws of this State.
25(Source: P.A. 94-974, eff. 6-30-06.)
 

 

 

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

 

 

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

 

 

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

 

 

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1        assessment officer of transfers of interest or other
2        changes in the status of the property as required by
3        this Code.
4            (4) The changes made by this amendatory Act of the
5        91st General Assembly are declarative of existing law
6        and shall not be construed as a new enactment; and
7        (f) in counties with more than 200,000 inhabitants
8    which classify property, property of a corporation, which
9    is an exempt entity under paragraph (3) of Section 501(c)
10    of the Internal Revenue Code or its successor law, used by
11    the corporation for the following purposes: (1) conducting
12    continuing education for professional development of
13    personnel in energy-related industries; (2) maintaining a
14    library of energy technology information available to
15    students and the public free of charge; and (3) conducting
16    research in energy and environment, which research results
17    could be ultimately accessible to persons involved in
18    education.
19(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
2092-16, eff. 6-28-01.)
 
21    (35 ILCS 200/15-57 new)
22    Sec. 15-57. Government property leased to another
23government entity. If property is owned by the State, a unit of
24local government, or a school district and that property is
25leased to the State, a unit of local government, or a school

 

 

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

 

 

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

 

 

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1manifest weight of the evidence.
2    If the board of review provides notice to the affected
3taxing districts of the proposed stipulation or assessment
4agreement, and a taxing district (i) does not respond to the
5notice, (ii) accepts the proposed assessment, or (iii) reaches
6a written resolution with the board of review and the taxpayer,
7then the board of review is not required to otherwise send
8notice as required by Section 16-180 of the Property Tax Code
9to that taxing district, and that taxing district is precluded
10from intervening or otherwise participating in the appeal
11pending before the Property Tax Appeal Board challenging the
12assessment. If a taxing district files a written objection to
13the proposal to the board of review which is not followed by a
14written resolution, then the appeal shall proceed as provided
15by law, the board of review must notify that taxing district as
16required by Section 16-180, and any proposed stipulation or
17assessment agreement shall not be considered or introduced as
18evidence in any proceeding before the Property Tax Appeal
19Board.
 
20    Section 90. The State Mandates Act is amended by adding
21Section 8.35 as follows:
 
22    (30 ILCS 805/8.35 new)
23    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
24of this Act, no reimbursement by the State is required for the

 

 

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1implementation of any mandate created by this amendatory Act of
2the 97th General Assembly.
 
3    Section 95. Applicability. The changes made by this
4amendatory Act of the 97th General Assembly to the Property Tax
5Code by changing Sections 9-195 and 15-35 and by adding Section
615-57 and to the State Mandates Act by adding Section 8.35
7apply to taxable years 2010 and thereafter. In addition, those
8changes and additions also apply to taxable years prior to
92010, but no such taxes paid for any taxable year prior to 2010
10need be refunded.
 
11    Section 97. Severability. The provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.".