Full Text of HB3545 94th General Assembly
HB3545 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB3545
Introduced 2/23/2005, by Rep. Gary Hannig SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/1109 |
from Ch. 120, par. 11-1109 |
35 ILCS 120/5f |
from Ch. 120, par. 444f |
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Amends the Illinois Income Tax Act. Authorizes the Department of Revenue to seek a conditional judgment against a taxpayer's employer if the employer is served with a levy on the taxpayer's salary, wages, commissions, and bonuses by the Department and the employer fails to answer the levy. Authorizes the Department to seek a confirmation of the conditional judgment. Amends the Retailers' Occupation Tax Act. Authorizes the Department of Revenue to seek a conditional judgment against a financial institution or other person that is served with a levy by the Department of Revenue and fails to answer the levy. Authorizes the Department of Revenue to seek a confirmation of the conditional judgment. Effective July 1, 2005.
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A BILL FOR
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 1109 as follows:
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| (35 ILCS 5/1109) (from Ch. 120, par. 11-1109)
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| Sec. 1109. Demand and Seizure. In addition to any other | 8 |
| remedy
provided for by the laws of this State, if the tax | 9 |
| imposed by this Act
is not paid within the time required by | 10 |
| this Act, the Department, or
some person designated by it, may | 11 |
| cause a demand to be made on the
taxpayer for the payment | 12 |
| thereof. If such tax remains unpaid for 10
days after such | 13 |
| demand has been made and no proceedings have been taken
to | 14 |
| review the same, the Department may issue a warrant directed to | 15 |
| any
sheriff or other person authorized to serve process, | 16 |
| commanding the
sheriff or other person to levy upon the | 17 |
| property and rights to property
(whether real or personal, | 18 |
| tangible or intangible) of the taxpayer, without
exemption, | 19 |
| found within his jurisdiction, for the payment of the amount
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| thereof with the added penalties, interest and the cost of | 21 |
| executing the
warrant. The term "levy" includes the power of | 22 |
| distraint and seizure by any
means. In any case in which the | 23 |
| warrant to levy has been issued, the
sheriff or other person to | 24 |
| whom the warrant was directed may seize and sell
such property | 25 |
| or rights to property. Such warrant
shall be returned to the | 26 |
| Department together with the money collected by
virtue thereof | 27 |
| within the time therein specified, which shall not be
less than | 28 |
| 20 nor more than 90 days from the date of the warrant. The
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| sheriff or other person to whom such warrant is directed shall | 30 |
| proceed in the
same manner as prescribed by law in respect to | 31 |
| the enforcement against
property upon judgments by a court, and | 32 |
| shall be entitled to the same
fees for his services in |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| executing the warrant, to be collected in the
same manner. The | 2 |
| Department, or some officer, employee or agent
designated by | 3 |
| it, is hereby authorized to bid for and purchase any
property | 4 |
| sold under the provisions hereof. No proceedings for a levy
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| under this Section shall be commenced more than 20 years after | 6 |
| the latest
date for filing
of the notice of lien under the | 7 |
| provisions of Section 1103, without regard
to whether such | 8 |
| notice was actually filed.
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| Any officer or employee of the Department designated in | 10 |
| writing by the
Director is authorized to serve process under | 11 |
| this Section to levy upon
accounts or other intangible assets | 12 |
| of a taxpayer held by a financial
organization, as defined in | 13 |
| Section 1501 of this Act.
In addition to any other provisions | 14 |
| of this Section, any officer or
employee of the Department | 15 |
| designated in writing by the Director may levy
upon the | 16 |
| following property and rights to property belonging to a | 17 |
| taxpayer:
contractual payments, accounts and notes receivable | 18 |
| and other evidences of
debt, and interest on bonds, by serving | 19 |
| a notice of levy on the person
making such payment. Levy shall | 20 |
| not be made until the Department has
caused a demand to be made | 21 |
| on the taxpayer in the manner provided above.
In addition to | 22 |
| any
other provisions
of this Section, any officer or employee | 23 |
| of the Department designated in
writing by the Director, may | 24 |
| levy upon the salary, wages, commissions and
bonuses of any | 25 |
| employee, including
officers,
employees, or elected officials | 26 |
| of the United States as authorized by
Section
5520a of the | 27 |
| Government Organization and Employees Act (5 U.S.C. 5520a), but
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| not upon the salary or wages of officers, employees, or elected | 29 |
| officials of
any state other than this State, by serving a | 30 |
| notice of levy on the employer, as defined in
Section 701(d). | 31 |
| Levy shall not be made until the Department has caused a
demand | 32 |
| to be made on the employee in the manner provided above. The
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| provisions of Section 12-803 of the Code of Civil Procedure | 34 |
| relating to
maximum compensation subject to collection under | 35 |
| wage deduction orders shall
apply to all levies made upon | 36 |
| compensation
under this Section.
To the extent of the amount |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| due on the levy, the employer or other person
making payments | 2 |
| to the taxpayer shall hold any non-exempt wages or other
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| payments due or which subsequently come due. The levy or | 4 |
| balance due
thereon is a lien on wages or other payments due at | 5 |
| the time of the service
of the notice of levy, and such lien | 6 |
| shall continue as to subsequent
earnings and other payments | 7 |
| until the total amount due upon the levy is
paid, except that | 8 |
| such lien on subsequent earnings or other payments shall
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| terminate sooner if the employment relationship is terminated | 10 |
| or if the
notice of levy is rescinded or modified. The employer | 11 |
| or other person making
payments to the taxpayer shall file, on | 12 |
| or before the return dates stated
in the notice of levy (which | 13 |
| shall not be more often than bimonthly) a
written answer under | 14 |
| oath to interrogatories, setting forth the amount due
as wages | 15 |
| or other payments to the taxpayer for the payment periods | 16 |
| ending
immediately prior to the appropriate return date. A lien | 17 |
| obtained
hereunder shall have priority over any subsequent lien | 18 |
| obtained pursuant to
Section 12-808 of the Code of Civil | 19 |
| Procedure, except that liens for the
support of a spouse or | 20 |
| dependent children shall have priority over all
liens obtained | 21 |
| hereunder.
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| If a taxpayer's employer fails to answer a levy on the | 23 |
| taxpayer's salary, wages, commissions and bonuses as required | 24 |
| by this Section, the Department may seek in the circuit court a | 25 |
| conditional judgment against the employer for the amount | 26 |
| claimed under the levy in accordance with the procedures set | 27 |
| forth in Section 12-807 of the Code of Civil Procedure. | 28 |
| Following the entry of a conditional judgment, the Department | 29 |
| may seek to confirm the conditional judgment in accordance with | 30 |
| the procedures set forth in Section 12-807 of the Code of Civil | 31 |
| Procedure.
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| In any case where property or rights to property have been | 33 |
| seized by an
officer of the Illinois Department of State | 34 |
| Police, or successor agency
thereto, under the authority of a | 35 |
| warrant to levy issued by the Department
of Revenue, the | 36 |
| Department of Revenue may take possession of and may sell
such |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| property or rights to property and the Department of Revenue | 2 |
| may
contract with third persons to conduct sales of such | 3 |
| property or rights to
the property. In the conduct of such | 4 |
| sales, the Department of Revenue
shall proceed in the same | 5 |
| manner as is prescribed by law for proceeding
against property | 6 |
| to enforce judgments which are entered by a circuit court
of | 7 |
| this State. If, in the Department of Revenue's opinion, no | 8 |
| offer to
purchase at such sale is acceptable and the State's | 9 |
| interest would be
better served by retaining the property for | 10 |
| sale at a later date, then the
Department may decline to accept | 11 |
| any bid and may retain the property for
sale at a later date.
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| (Source: P.A. 89-399, eff. 8-20-95.)
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| Section 10. The Retailers' Occupation Tax Act is amended by | 14 |
| changing Section 5f as follows:
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| (35 ILCS 120/5f) (from Ch. 120, par. 444f)
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| Sec. 5f. In addition to any other remedy provided for by | 17 |
| the laws of
this State, if the tax imposed by this Act is not | 18 |
| paid within the time
required by this Act, the Department, or | 19 |
| some person designated by it,
may cause a demand to be made on | 20 |
| the taxpayer for the payment of the
tax. If the tax remains | 21 |
| unpaid for 10 days after demand has been made
and no | 22 |
| proceedings have been taken for review, the Department may | 23 |
| issue
a warrant directed to the sheriff of any county of the | 24 |
| State or to any
State officer authorized to serve process, | 25 |
| commanding the sheriff or
other officer to levy upon property | 26 |
| and rights to property (whether real
or personal, tangible or | 27 |
| intangible) of the taxpayer, without exemption,
found within | 28 |
| his or her jurisdiction, for the
payment of the amount of | 29 |
| unpaid tax with the added penalties, interest
and the cost of | 30 |
| executing the warrant. The term "levy" includes the power
of | 31 |
| distraint and seizure by any means. In any case in which the | 32 |
| warrant
to levy has been issued, the sheriff or other person to | 33 |
| whom the warrant
was directed may seize and sell such property | 34 |
| or rights to property. Such
warrant shall be returned
to the |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| Department together with the money collected by virtue of the
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| warrant within the time specified in the warrant, which may not | 3 |
| be less
than 20 nor more than 90 days from the date of the | 4 |
| warrant. The sheriff
or other officer to whom such warrant is | 5 |
| directed shall proceed in the same
manner as is
prescribed by | 6 |
| law for proceeding
against property to enforce
judgments which | 7 |
| are entered by a circuit court of this State,
and is entitled | 8 |
| to the same fees for his or her
services in executing the | 9 |
| warrant, to be collected in the same manner.
The Department, or | 10 |
| some officer, employee or agent designated by it, may
bid for | 11 |
| and purchase any such property sold.
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| No proceedings for a levy under this Section may be | 13 |
| commenced more
than 20 years after the latest date for filing | 14 |
| of the notice of lien
under Section 5b of
this Act, without | 15 |
| regard to whether such notice was actually filed.
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| Any officer or employee of the Department designated in | 17 |
| writing by the
Director is authorized to serve process under | 18 |
| this Section to levy upon
accounts or other intangible assets | 19 |
| of a taxpayer held by a financial
organization, as defined by | 20 |
| Section 1501 of the Illinois Income Tax Act.
In addition to any | 21 |
| other provisions of this Section, any officer or
employee of | 22 |
| the Department designated in writing by the Director may levy
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| upon the following property and rights to property belonging to | 24 |
| a taxpayer:
contractual payments, accounts and notes | 25 |
| receivable and other evidences of
debt, and interest on bonds, | 26 |
| by serving a notice of levy on the person
making such payment. | 27 |
| Levy shall not be made until the Department has
caused a demand | 28 |
| to be made on the taxpayer in the manner provided above.
In | 29 |
| addition to any other provisions of this Section, any officer | 30 |
| or
employee of the Department designated in writing by the | 31 |
| Director, may levy
upon the salary, wages, commissions and | 32 |
| bonuses of any employee, including officers, employees, or | 33 |
| elected officials of
the
United States
as authorized by Section | 34 |
| 5520a of the Government Organization and Employees
Act (5 | 35 |
| U.S.C. 5520a), but not upon the salary or wages of officers, | 36 |
| employees,
or elected officials of any state other than this |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| State, by serving a notice of
levy on the employer. Levy shall | 2 |
| not be made until the Department has
caused a demand to be made | 3 |
| on the employee in the manner provided above.
The provisions of | 4 |
| Section 12-803 of the Code of Civil Procedure relating
to | 5 |
| maximum compensation subject to collection under wage | 6 |
| deduction orders
shall apply to all levies made upon | 7 |
| compensation under this Section.
To the extent of the amount | 8 |
| due on the levy, the employer or other person
making payments | 9 |
| to the taxpayer shall hold any non-exempt wages or other
| 10 |
| payments due or which subsequently come due. The levy or | 11 |
| balance due
thereon is a lien on wages or other payments due at | 12 |
| the time of the service
of the notice of levy, and such lien | 13 |
| shall continue as to subsequent
earnings and other payments | 14 |
| until the total amount due upon the levy is
paid, except that | 15 |
| such lien on subsequent earnings or other payments shall
| 16 |
| terminate sooner if the employment relationship is terminated | 17 |
| or if the
notice of levy is rescinded or modified. The employer | 18 |
| or other person
making payments to the taxpayer shall file, on | 19 |
| or before the return dates
stated in the notice of levy (which | 20 |
| shall not be more often than bimonthly)
a written answer under | 21 |
| oath to interrogatories, setting forth the amount
due as wages | 22 |
| or other payments to the taxpayer for the payment periods
| 23 |
| ending immediately prior to the appropriate return date. A lien | 24 |
| obtained
hereunder shall have priority over any subsequent lien | 25 |
| obtained pursuant to
Section 12-808 of the Code of Civil | 26 |
| Procedure, except that liens for the
support of a spouse or | 27 |
| dependent children shall have priority over all
liens obtained | 28 |
| hereunder.
| 29 |
| If a financial institution or other person served with a | 30 |
| levy by the department fails to answer as required by this | 31 |
| Section, the Department may seek in the circuit court a | 32 |
| conditional judgment against that financial institution or | 33 |
| other person for the amount claimed under the levy in | 34 |
| accordance with the procedures set forth in Section 12-706 of | 35 |
| the Code of Civil Procedure. Following the entry of a | 36 |
| conditional judgment, the Department may seek to confirm the |
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HB3545 |
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LRB094 03898 MKM 33910 b |
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| conditional judgment in accordance with the procedures set | 2 |
| forth in Section 12-706.
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| In any case where property or rights to property have been | 4 |
| seized by an
officer of the Illinois Department of Law | 5 |
| Enforcement, or successor agency
thereto, under the authority | 6 |
| of
a warrant to levy issued by the Department of Revenue, the | 7 |
| Department of
Revenue may take possession of and may sell such | 8 |
| property or rights to
property and the Department of Revenue | 9 |
| may contract with third persons to
conduct sales of such | 10 |
| property or rights to the property. In the conduct of
such | 11 |
| sales, the Department of Revenue shall proceed in the same | 12 |
| manner as
is prescribed by law for proceeding against property | 13 |
| to enforce judgments
which are entered by a circuit court of | 14 |
| this State. If, in the Department's
opinion, no offer to | 15 |
| purchase at such sale is acceptable and the State's
interest | 16 |
| would be better served by retaining the property for sale at a
| 17 |
| later date, then the Department may decline to accept any bid | 18 |
| and may
retain the property for sale at a later date.
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| (Source: P.A. 89-399, eff. 8-20-95.)
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| Section 99. Effective date. This Act takes effect July 1, | 21 |
| 2005.
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