Full Text of SB0395 97th General Assembly
SB0395ham001 97TH GENERAL ASSEMBLY | Rep. Barbara Flynn Currie Filed: 5/11/2011
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| 1 | | AMENDMENT TO SENATE BILL 395
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 395 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Sections 9-195, 10-380, and 15-35 and by adding Sections 15-57, | 6 | | 15-183, 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, | 10 | | 15-60, 15-100,
15-103, and 15-185,
when property which is | 11 | | exempt from taxation is leased to another whose property
is not | 12 | | exempt, and the leasing of which does not make the property | 13 | | taxable,
the leasehold estate and the appurtenances shall be | 14 | | listed as the property of
the lessee thereof, or his or her | 15 | | assignee. Taxes on that property shall be
collected in the same | 16 | | manner as on property that is not exempt, and the lessee
shall |
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| 1 | | be liable for those taxes. However, no tax lien shall attach to | 2 | | the
exempt real estate. The changes made by this amendatory Act | 3 | | of 1997 and by this
amendatory Act of the 91st General Assembly | 4 | | are declaratory of existing law
and shall not be construed as a | 5 | | new enactment. The changes made by Public Acts
88-221 and | 6 | | 88-420 that are incorporated into this Section by this | 7 | | amendatory
Act of 1993 are declarative of existing law and are | 8 | | not a new enactment.
| 9 | | (b) The provisions of this Section regarding taxation of | 10 | | leasehold interests
in exempt property do not apply to any | 11 | | leasehold interest created pursuant to
any transaction | 12 | | described in subsection (e) of Section 15-35, item (a) of | 13 | | Section 15-35, Section 15-57, subsection (c-5)
of Section | 14 | | 15-60, subsection (b) of Section 15-100, Section 15-103, or
| 15 | | Section 15-185.
| 16 | | (Source: P.A. 92-844, eff. 8-23-02; 92-846, eff.
8-23-02; | 17 | | 93-19, eff. 6-20-03.)
| 18 | | (35 ILCS 200/10-380) | 19 | | Sec. 10-380. For the taxable years 2006 and thereafter , | 20 | | 2007, 2008, and 2009 , the chief county assessment officer in | 21 | | the county in which property subject to a PPV Lease is located | 22 | | shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of | 23 | | this Division 14 in assessing and determining the value of any | 24 | | PPV 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 | 3 | | States for school
purposes, and all property of schools, not | 4 | | sold or leased or otherwise used
with a view to profit, is | 5 | | exempt, whether owned by a resident or non-resident
of this | 6 | | State or by a corporation incorporated in any state of the | 7 | | United
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; | 20 | | 92-16, eff. 6-28-01.)
| 21 | | (35 ILCS 200/15-57 new) | 22 | | Sec. 15-57. Government property leased to another | 23 | | government entity. If property is owned by the State, a unit of | 24 | | local government, or a school district and that property is | 25 | | leased to the State, a unit of local government, or a school |
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| 1 | | district, then the property is exempt from taxation under this | 2 | | Code and the leasehold interest is exempt from taxation under | 3 | | this Code or under any other law. The provisions of this | 4 | | Section apply notwithstanding any other provision of law. | 5 | | (35 ILCS 200/15-183 new) | 6 | | Sec. 15-183. Erroneous homestead exemptions. This Section | 7 | | applies in any county that elects to be subject to its | 8 | | provisions on or after the effective date of this amendatory | 9 | | Act of the 97th General Assembly. Beginning in the first | 10 | | assessment year after the county elects to be subject to the | 11 | | provisions of this Section, if, upon determination by the chief | 12 | | county assessment officer supported by clear and convincing | 13 | | evidence, any property that was not eligible to receive a | 14 | | homestead exemption was erroneously granted a homestead | 15 | | exemption or exemptions in any year or years not to exceed the | 16 | | current assessment year and 4 years prior to the current | 17 | | assessment year, due to negligence or fraud on the part of the | 18 | | property owner, then the arrearages of taxes that might
have | 19 | | been assessed, plus a penalty as provided in this Section, | 20 | | shall be charged against the property by the county clerk. If | 21 | | the chief county assessment officer determines that the | 22 | | exemption was granted due to negligence of the property owner, | 23 | | but without intent to defraud, then the arrearages of taxes | 24 | | that might have been assessed may be charged against the | 25 | | property, but no penalty shall be assessed against the unpaid |
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| 1 | | amount. If the chief county assessment officer determines that | 2 | | the property owner acted with intent to defraud, then the | 3 | | arrearages of taxes that might have been assessed, plus a | 4 | | penalty of 25% of the total amount of unpaid taxes for each | 5 | | year, shall be charged against the property. If the erroneous | 6 | | homestead exemption was granted as a result of a mistake, | 7 | | error, or omission on the part of the chief county assessment | 8 | | officer, and not as a result of negligence or fraud of the | 9 | | property owner, then the property owner shall not be liable for | 10 | | the unpaid taxes or penalties under this Section. For the | 11 | | purposes of this Section, negligence includes any failure to | 12 | | make a reasonable attempt to comply with the provisions of this | 13 | | Code and includes careless, reckless, or intentional disregard | 14 | | of the law or regulations. | 15 | | If the chief county assessment officer makes a | 16 | | determination that property was erroneously granted a | 17 | | homestead exemption or exemptions under the preceding | 18 | | paragraph, then the chief county assessment officer shall cause | 19 | | to be served upon the property owner a notice of intent to | 20 | | record a tax lien against the property with respect to which | 21 | | the erroneous homestead exemption was granted. The notice shall | 22 | | identify the property against which the lien is being sought, | 23 | | and shall inform the property owner that he or she may contest | 24 | | the determination of the chief county assessment officer before | 25 | | a neutral hearing officer. Such a lien may be lawfully filed by | 26 | | the chief county assessment officer with the county recorder of |
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| 1 | | deeds, but not until a final decision has been made that the | 2 | | property was not entitled to the homestead exemption. The board | 3 | | of review in counties that elect to be subject to the | 4 | | provisions of this Section and have less than 3,000,000 | 5 | | inhabitants, or the county assessor in counties that elect to | 6 | | be subject to the provisions of this Section and have 3,000,000 | 7 | | or more inhabitants, must develop reasonable procedures for | 8 | | contesting the determination made under this Section that | 9 | | afford the property owner due process of law. Those procedures | 10 | | must allow the property owner to contest the determination | 11 | | before a neutral hearing officer appointed by the chief county | 12 | | assessment officer. The property owner may appeal the decision | 13 | | of the hearing officer to the circuit court of the county in | 14 | | which the property is located. | 15 | | Of the amounts collected under this Section, the unpaid | 16 | | taxes shall be remitted to the county collector and distributed | 17 | | to the affected taxing districts, and the penalties shall be | 18 | | used by the chief county assessment officer for the cost of | 19 | | administering this Section. | 20 | | Notwithstanding any other provision of law, if a property | 21 | | owner with a principal residence in a State other than Illinois | 22 | | was erroneously granted a homestead exemption for property | 23 | | located in Illinois during assessment year 2007, 2008, 2009, or | 24 | | 2010, then that property owner may voluntarily remit the amount | 25 | | of unpaid taxes and interest within 2 years after the effective | 26 | | date of this amendatory Act of the 97th General Assembly. If |
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| 1 | | the property owner voluntarily remits those amounts within 2 | 2 | | years after the effective date of this amendatory Act of the | 3 | | 97th General Assembly, then the penalties authorized by this | 4 | | Section for the applicable assessment year shall not be | 5 | | chargeable to the owner. | 6 | | For the purposes of this Section, "homestead exemption" | 7 | | means an exemption under Section 15-165 (disabled veterans), | 8 | | 15-167 (returning veterans), 15-169 (disabled veterans | 9 | | standard homestead), 15-170 (senior citizens), 15-172 (senior | 10 | | citizens assessment freeze), 15-175 (general homestead), | 11 | | 15-176 (alternative general homestead), or 15-177 (long-time | 12 | | occupant). | 13 | | (35 ILCS 200/16-181 new) | 14 | | Sec. 16-181. Stipulation to revised assessment. The board | 15 | | of review whose decision is being appealed may, at its | 16 | | discretion, enter into discussions with a taxpayer aimed at | 17 | | achieving a stipulated revised assessment upon the property, | 18 | | either prior to or after receipt of the taxpayer's petition | 19 | | from the Property Tax Appeal Board. If such discussions | 20 | | commence prior to the board of review's receipt of the | 21 | | taxpayer's petition from the Property Tax Appeal Board, the | 22 | | taxpayer shall provide the board of review with such evidence | 23 | | of the taxpayer's timely filing of its appeal before the | 24 | | Property Tax Appeal Board as the board of review may request, | 25 | | including but not limited to a copy of the taxpayer's petition |
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| 1 | | as filed with the Property Tax Appeal Board. If, after | 2 | | discussions have been entered into, the taxpayer and the board | 3 | | of review propose to stipulate to a revised assessment of the | 4 | | property, and if the original complaint requested a reduction | 5 | | in assessed value of more than $100,000, then the board of | 6 | | review shall first serve a copy of the proposed stipulation or | 7 | | assessment agreement on all taxing districts as shown on the | 8 | | last available property tax bill, along with a copy of the | 9 | | taxpayer's petition as provided to the board of review and all | 10 | | other evidence used to reach the settlement. The taxing | 11 | | districts so served shall have a period of 45 days after the | 12 | | postmark date of the notice from the board of review to file a | 13 | | written objection to the proposal with the board of review. | 14 | | Failure of a taxing district to object to the proposed | 15 | | assessment within the 45-day objection period shall be | 16 | | considered acceptance of the proposed assessment. Upon the | 17 | | later of (i) the expiration of the 45-day objection period or | 18 | | (ii) written resolution of any timely filed written objection | 19 | | received from a taxing district, the board of review shall | 20 | | provide the proposed stipulation or assessment agreement to the | 21 | | Property Tax Appeal Board along with a certificate of service | 22 | | affirming that all taxing districts have been notified of the | 23 | | proposed stipulation or assessment agreement, and that no | 24 | | timely written objections to the stipulation or assessment | 25 | | agreement have been received or that any such objections have | 26 | | been fully resolved. The certificate of service shall be signed |
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| 1 | | by a member of the board of review or the clerk of the board of | 2 | | review. Within 120 days after the Property Tax Appeal Board's | 3 | | receipt of the stipulation or assessment agreement and | 4 | | certificate of service, the Property Tax Appeal Board shall | 5 | | issue a decision in accordance with the stipulation or | 6 | | assessment agreement, unless it finds that the Property Tax | 7 | | Appeal Board lacks jurisdiction over the appeal or that the | 8 | | stipulation or assessment agreement is against the manifest | 9 | | weight of the evidence. | 10 | | If the board of review provides notice to the affected | 11 | | taxing districts of the proposed stipulation or assessment | 12 | | agreement, and a taxing district (i) does not respond to the | 13 | | notice, (ii) accepts the proposed assessment, or (iii) reaches | 14 | | a written resolution with the board of review and the taxpayer, | 15 | | then the board of review is not required to otherwise send | 16 | | notice as required by Section 16-180 of the Property Tax Code | 17 | | to that taxing district, and that taxing district is precluded | 18 | | from intervening or otherwise participating in the appeal | 19 | | pending before the Property Tax Appeal Board challenging the | 20 | | assessment. If a taxing district files a written objection to | 21 | | the proposal to the board of review which is not followed by a | 22 | | written resolution, then the appeal shall proceed as provided | 23 | | by law, the board of review must notify that taxing district as | 24 | | required by Section 16-180, and any proposed stipulation or | 25 | | assessment agreement shall not be considered or introduced as | 26 | | evidence in any proceeding before the Property Tax Appeal |
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| 1 | | Board.
| 2 | | Section 10. The Title Insurance Act is amended by adding | 3 | | Section 22.5 as follows: | 4 | | (215 ILCS 155/22.5 new) | 5 | | Sec. 22.5. Notice to chief county assessment officer. Upon | 6 | | issuing a policy, each title insurance company doing business | 7 | | in the State must inform the chief county assessment officer of | 8 | | the county in which the property is located of the sale or | 9 | | transfer of the property. | 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.35 as follows: | 12 | | (30 ILCS 805/8.35 new) | 13 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 14 | | of this Act, no reimbursement by the State is required for the | 15 | | implementation of any mandate created by this amendatory Act of | 16 | | the 97th General Assembly. | 17 | | Section 95. Applicability. The changes made by this | 18 | | amendatory Act of the 97th General Assembly to the Property Tax | 19 | | Code by changing Sections 9-195 and 15-35 and by adding Section | 20 | | 15-57 and to the State Mandates Act by adding Section 8.35 | 21 | | apply to taxable years 2010 and thereafter. In addition, those |
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| 1 | | changes and additions also apply to taxable years prior to | 2 | | 2010, but no such taxes paid for any taxable year prior to 2010 | 3 | | need be refunded. | 4 | | Section 97. Severability. The provisions of this Act are | 5 | | severable under Section 1.31 of the Statute on Statutes. | 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.".
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