Full Text of HB3545 94th General Assembly
HB3545ham001 94TH GENERAL ASSEMBLY
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Revenue Committee
Filed: 3/16/2005
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| AMENDMENT TO HOUSE BILL 3545
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| AMENDMENT NO. ______. Amend House Bill 3545 by replacing | 3 |
| everything in the enacting clause with the following:
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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 |
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| or rights to property. Such warrant
shall be returned to the | 2 |
| Department together with the money collected by
virtue thereof | 3 |
| within the time therein specified, which shall not be
less than | 4 |
| 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 | 6 |
| proceed in the
same manner as prescribed by law in respect to | 7 |
| the enforcement against
property upon judgments by a court, and | 8 |
| shall be entitled to the same
fees for his services in | 9 |
| executing the warrant, to be collected in the
same manner. The | 10 |
| Department, or some officer, employee or agent
designated by | 11 |
| it, is hereby authorized to bid for and purchase any
property | 12 |
| 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 | 14 |
| the latest
date for filing
of the notice of lien under the | 15 |
| provisions of Section 1103, without regard
to whether such | 16 |
| notice was actually filed.
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| Any officer or employee of the Department designated in | 18 |
| writing by the
Director is authorized to serve process under | 19 |
| this Section to levy upon
accounts or other intangible assets | 20 |
| of a taxpayer held by a financial
organization, as defined in | 21 |
| Section 1501 of this Act.
In addition to any other provisions | 22 |
| of this Section, any officer or
employee of the Department | 23 |
| designated in writing by the Director may levy
upon the | 24 |
| following property and rights to property belonging to a | 25 |
| taxpayer:
contractual payments, accounts and notes receivable | 26 |
| and other evidences of
debt, and interest on bonds, by serving | 27 |
| a notice of levy on the person
making such payment. Levy shall | 28 |
| not be made until the Department has
caused a demand to be made | 29 |
| on the taxpayer in the manner provided above.
In addition to | 30 |
| any
other provisions
of this Section, any officer or employee | 31 |
| of the Department designated in
writing by the Director, may | 32 |
| levy upon the salary, wages, commissions and
bonuses of any | 33 |
| employee, including
officers,
employees, or elected officials | 34 |
| of the United States as authorized by
Section
5520a of the |
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| 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 | 3 |
| officials of
any state other than this State, by serving a | 4 |
| notice of levy on the employer, as defined in
Section 701(d). | 5 |
| Levy shall not be made until the Department has caused a
demand | 6 |
| 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 | 8 |
| relating to
maximum compensation subject to collection under | 9 |
| wage deduction orders shall
apply to all levies made upon | 10 |
| compensation
under this Section.
To the extent of the amount | 11 |
| due on the levy, the employer or other person
making payments | 12 |
| to the taxpayer shall hold any non-exempt wages or other
| 13 |
| payments due or which subsequently come due. The levy or | 14 |
| balance due
thereon is a lien on wages or other payments due at | 15 |
| the time of the service
of the notice of levy, and such lien | 16 |
| shall continue as to subsequent
earnings and other payments | 17 |
| until the total amount due upon the levy is
paid, except that | 18 |
| such lien on subsequent earnings or other payments shall
| 19 |
| terminate sooner if the employment relationship is terminated | 20 |
| or if the
notice of levy is rescinded or modified. The employer | 21 |
| or other person making
payments to the taxpayer shall file, on | 22 |
| or before the return dates stated
in the notice of levy (which | 23 |
| shall not be more often than bimonthly) a
written answer under | 24 |
| oath to interrogatories, setting forth the amount due
as wages | 25 |
| or other payments to the taxpayer for the payment periods | 26 |
| ending
immediately prior to the appropriate return date. A lien | 27 |
| obtained
hereunder shall have priority over any subsequent lien | 28 |
| obtained pursuant to
Section 12-808 of the Code of Civil | 29 |
| Procedure, except that liens for the
support of a spouse or | 30 |
| dependent children shall have priority over all
liens obtained | 31 |
| hereunder.
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| A financial institution, employer, or other person | 33 |
| properly served with a levy by the Department that fails to | 34 |
| timely file an answer or to hold any payment or asset as |
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| required under this Section shall be subject to a penalty in | 2 |
| the amount equal to $500 or, in the case of each subsequent | 3 |
| failure to timely file an answer or to hold a payment or asset | 4 |
| with respect to a levy on the same taxpayer, an amount equal to | 5 |
| $1,000. This penalty shall be in addition to any other right or | 6 |
| cause of action of the Department, and shall be deemed assessed | 7 |
| at the time the answer was due or the time the payment or asset | 8 |
| was required to be held, whichever is earlier, and shall be | 9 |
| collected and paid in the same manner as a tax imposed by this | 10 |
| Act, provided that this penalty shall not apply if the | 11 |
| financial institution, employer, or other person subject to the | 12 |
| penalty establishes that the failure to file any answer or hold | 13 |
| the payment or asset was due to reasonable cause.
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| In any case where property or rights to property have been | 15 |
| seized by an
officer of the Illinois Department of State | 16 |
| Police, or successor agency
thereto, under the authority of a | 17 |
| warrant to levy issued by the Department
of Revenue, the | 18 |
| Department of Revenue may take possession of and may sell
such | 19 |
| property or rights to property and the Department of Revenue | 20 |
| may
contract with third persons to conduct sales of such | 21 |
| property or rights to
the property. In the conduct of such | 22 |
| sales, the Department of Revenue
shall proceed in the same | 23 |
| manner as is prescribed by law for proceeding
against property | 24 |
| to enforce judgments which are entered by a circuit court
of | 25 |
| this State. If, in the Department of Revenue's opinion, no | 26 |
| offer to
purchase at such sale is acceptable and the State's | 27 |
| interest would be
better served by retaining the property for | 28 |
| sale at a later date, then the
Department may decline to accept | 29 |
| 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 | 32 |
| 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 | 3 |
| the laws of
this State, if the tax imposed by this Act is not | 4 |
| paid within the time
required by this Act, the Department, or | 5 |
| some person designated by it,
may cause a demand to be made on | 6 |
| the taxpayer for the payment of the
tax. If the tax remains | 7 |
| unpaid for 10 days after demand has been made
and no | 8 |
| proceedings have been taken for review, the Department may | 9 |
| issue
a warrant directed to the sheriff of any county of the | 10 |
| State or to any
State officer authorized to serve process, | 11 |
| commanding the sheriff or
other officer to levy upon property | 12 |
| and rights to property (whether real
or personal, tangible or | 13 |
| intangible) of the taxpayer, without exemption,
found within | 14 |
| his or her jurisdiction, for the
payment of the amount of | 15 |
| unpaid tax with the added penalties, interest
and the cost of | 16 |
| executing the warrant. The term "levy" includes the power
of | 17 |
| distraint and seizure by any means. In any case in which the | 18 |
| warrant
to levy has been issued, the sheriff or other person to | 19 |
| whom the warrant
was directed may seize and sell such property | 20 |
| or rights to property. Such
warrant shall be returned
to the | 21 |
| Department together with the money collected by virtue of the
| 22 |
| warrant within the time specified in the warrant, which may not | 23 |
| be less
than 20 nor more than 90 days from the date of the | 24 |
| warrant. The sheriff
or other officer to whom such warrant is | 25 |
| directed shall proceed in the same
manner as is
prescribed by | 26 |
| law for proceeding
against property to enforce
judgments which | 27 |
| are entered by a circuit court of this State,
and is entitled | 28 |
| to the same fees for his or her
services in executing the | 29 |
| warrant, to be collected in the same manner.
The Department, or | 30 |
| some officer, employee or agent designated by it, may
bid for | 31 |
| and purchase any such property sold.
| 32 |
| No proceedings for a levy under this Section may be | 33 |
| commenced more
than 20 years after the latest date for filing | 34 |
| of the notice of lien
under Section 5b of
this Act, without |
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09400HB3545ham001 |
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LRB094 03898 BDD 43466 a |
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| 1 |
| regard to whether such notice was actually filed.
| 2 |
| Any officer or employee of the Department designated in | 3 |
| writing by the
Director is authorized to serve process under | 4 |
| this Section to levy upon
accounts or other intangible assets | 5 |
| of a taxpayer held by a financial
organization, as defined by | 6 |
| Section 1501 of the Illinois Income Tax Act.
In addition to any | 7 |
| other provisions of this Section, any officer or
employee of | 8 |
| the Department designated in writing by the Director may levy
| 9 |
| upon the following property and rights to property belonging to | 10 |
| a taxpayer:
contractual payments, accounts and notes | 11 |
| receivable and other evidences of
debt, and interest on bonds, | 12 |
| by serving a notice of levy on the person
making such payment. | 13 |
| Levy shall not be made until the Department has
caused a demand | 14 |
| to be made on the taxpayer in the manner provided above.
In | 15 |
| addition to any other provisions of this Section, any officer | 16 |
| or
employee of the Department designated in writing by the | 17 |
| Director, may levy
upon the salary, wages, commissions and | 18 |
| bonuses of any employee, including officers, employees, or | 19 |
| elected officials of
the
United States
as authorized by Section | 20 |
| 5520a of the Government Organization and Employees
Act (5 | 21 |
| U.S.C. 5520a), but not upon the salary or wages of officers, | 22 |
| employees,
or elected officials of any state other than this | 23 |
| State, by serving a notice of
levy on the employer. Levy shall | 24 |
| not be made until the Department has
caused a demand to be made | 25 |
| on the employee in the manner provided above.
The provisions of | 26 |
| Section 12-803 of the Code of Civil Procedure relating
to | 27 |
| maximum compensation subject to collection under wage | 28 |
| deduction orders
shall apply to all levies made upon | 29 |
| compensation under this Section.
To the extent of the amount | 30 |
| due on the levy, the employer or other person
making payments | 31 |
| to the taxpayer shall hold any non-exempt wages or other
| 32 |
| payments due or which subsequently come due. The levy or | 33 |
| balance due
thereon is a lien on wages or other payments due at | 34 |
| the time of the service
of the notice of levy, and such lien |
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|
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09400HB3545ham001 |
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LRB094 03898 BDD 43466 a |
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| 1 |
| shall continue as to subsequent
earnings and other payments | 2 |
| until the total amount due upon the levy is
paid, except that | 3 |
| such lien on subsequent earnings or other payments shall
| 4 |
| terminate sooner if the employment relationship is terminated | 5 |
| or if the
notice of levy is rescinded or modified. The employer | 6 |
| or other person
making payments to the taxpayer shall file, on | 7 |
| or before the return dates
stated in the notice of levy (which | 8 |
| shall not be more often than bimonthly)
a written answer under | 9 |
| oath to interrogatories, setting forth the amount
due as wages | 10 |
| or other payments to the taxpayer for the payment periods
| 11 |
| ending immediately prior to the appropriate return date. A lien | 12 |
| obtained
hereunder shall have priority over any subsequent lien | 13 |
| obtained pursuant to
Section 12-808 of the Code of Civil | 14 |
| Procedure, except that liens for the
support of a spouse or | 15 |
| dependent children shall have priority over all
liens obtained | 16 |
| hereunder.
| 17 |
| A financial institution, employer, or other person | 18 |
| properly served with a levy by the Department that fails to | 19 |
| timely file an answer or to hold any payment or asset as | 20 |
| required under this Section shall be subject to a penalty in | 21 |
| the amount equal to $500 or, in the case of each subsequent | 22 |
| failure to timely file an answer or to hold a payment or asset | 23 |
| with respect to a levy on the same taxpayer, an amount equal to | 24 |
| $1,000. This penalty shall be in addition to any other right or | 25 |
| cause of action of the Department. The Department shall issue a | 26 |
| notice of assessment for such penalty, and the penalty amount | 27 |
| shall be collected and paid in the same manner as a tax imposed | 28 |
| by this Act, provided that this penalty shall not apply if the | 29 |
| financial institution, employer, or other person subject to the | 30 |
| penalty establishes that the failure to file any answer or hold | 31 |
| the payment or asset was due to reasonable cause.
| 32 |
| In any case where property or rights to property have been | 33 |
| seized by an
officer of the Illinois Department of Law | 34 |
| Enforcement, or successor agency
thereto, under the authority |
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09400HB3545ham001 |
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LRB094 03898 BDD 43466 a |
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| of
a warrant to levy issued by the Department of Revenue, the | 2 |
| Department of
Revenue may take possession of and may sell such | 3 |
| property or rights to
property and the Department of Revenue | 4 |
| may contract with third persons to
conduct sales of such | 5 |
| property or rights to the property. In the conduct of
such | 6 |
| sales, the Department of Revenue shall proceed in the same | 7 |
| manner as
is prescribed by law for proceeding against property | 8 |
| to enforce judgments
which are entered by a circuit court of | 9 |
| this State. If, in the Department's
opinion, no offer to | 10 |
| purchase at such sale is acceptable and the State's
interest | 11 |
| would be better served by retaining the property for sale at a
| 12 |
| later date, then the Department may decline to accept any bid | 13 |
| and may
retain the property for sale at a later date.
| 14 |
| (Source: P.A. 89-399, eff. 8-20-95.)
| 15 |
| Section 99. Effective date. This Act takes effect July 1, | 16 |
| 2005.".
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