Full Text of SB0395 97th General Assembly
SB0395ham005 97TH GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 5/25/2011
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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, 14-20, and 15-35 and by adding Sections | 6 | | 9-275, 15-57, 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, | 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 200/9-275 new) | 19 | | Sec. 9-275. Erroneous homestead exemptions. | 20 | | (a) If, upon determination by the chief county assessment | 21 | | officer, any person or entity that was not eligible to receive | 22 | | a homestead exemption under Article 15 of this Code was granted | 23 | | one homestead exemption in error for real property in any year | 24 | | or years not to exceed the assessment year in which the | 25 | | determination is made and 2 assessment years prior to that |
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| 1 | | year, then the chief county assessment officer may cause to be | 2 | | served on the person to whom the most recent tax bill was | 3 | | mailed a notice of intent to record a tax lien against the | 4 | | property with respect to which the erroneous homestead | 5 | | exemption was granted. | 6 | | (b) If, upon determination by the chief county assessment | 7 | | officer, any person or entity that was not eligible to receive | 8 | | a homestead exemption under Article 15 of this Code was granted | 9 | | 2 homestead exemptions in error for real property in any year | 10 | | or years not to exceed the assessment year in which the | 11 | | determination is made and 2 assessment years prior to that | 12 | | year, then the chief county assessment officer may cause to be | 13 | | served on the person to whom the most recent tax bill was | 14 | | mailed a notice of intent to record a tax lien against the | 15 | | property with respect to which the erroneous homestead | 16 | | exemption was granted. | 17 | | (c) If, upon determination by the chief county assessment | 18 | | officer, any person or entity that was not eligible to receive | 19 | | a homestead exemption under Article 15 of this Code was granted | 20 | | 3 or more homestead exemptions in error for real property in | 21 | | any year or years not to exceed the assessment year in which | 22 | | the determination is made and 5 assessment years prior to that | 23 | | year, then the chief county assessment officer may cause to be | 24 | | served on the person to whom the most recent tax bill was | 25 | | mailed a notice of intent to record a tax lien against the | 26 | | property with respect to which the erroneous homestead |
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| 1 | | exemption was granted. | 2 | | (d) The notice of intent to record a tax lien described in | 3 | | subsections (a), (b), and (c) of this Section shall identify | 4 | | the property against which the lien is being sought and shall | 5 | | identify the assessment years in which the erroneous homestead | 6 | | exemption was granted. | 7 | | In counties with 3,000,000 or more inhabitants, the notice | 8 | | must also include a form that the property owner may return to | 9 | | the chief county assessment officer to request a hearing. The | 10 | | property owner may request a hearing by returning the form | 11 | | within 30 days after service. The hearing shall be held within | 12 | | 90 days after the property owner is served. The chief county | 13 | | assessment officer shall promulgate rules of service and | 14 | | procedure for the hearing. The chief county assessment officer | 15 | | must generally follow rules of evidence and practices that | 16 | | prevail in the county circuit courts, but, because of the | 17 | | nature of these proceedings, the chief county assessment | 18 | | officer is not bound by those rules in all particulars. The | 19 | | chief county assessment officer shall appoint a hearing officer | 20 | | to oversee the hearing. The property owner shall be allowed to | 21 | | present evidence to the hearing officer at the hearing. After | 22 | | taking into consideration all the relevant testimony and | 23 | | evidence, the hearing officer shall make an administrative | 24 | | decision on whether the property owner was erroneously granted | 25 | | a homestead exemption for the assessment year or years in | 26 | | question. The property owner may appeal the hearing officer's |
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| 1 | | ruling to the circuit court of the county where the property is | 2 | | located under the Administrative Review Law. | 3 | | In counties with less than 3,000,000 million inhabitants, | 4 | | the notice must also include a form that the property owner may | 5 | | return to the board of review to request a hearing. The | 6 | | property owner may request a hearing by returning the form | 7 | | within 30 days after service. The hearing shall be held within | 8 | | 90 days after the property owner is served. The board of review | 9 | | shall follow its normal practices and procedures in conducting | 10 | | the hearing. The property owner shall be allowed to present | 11 | | evidence to board of review. After taking into consideration | 12 | | all of the relevant testimony and evidence, the board of review | 13 | | shall issue a decision on whether the property owner was | 14 | | erroneously granted a homestead exemption for the assessment | 15 | | year or years in question. The property owner may appeal the | 16 | | board of review's ruling to the circuit court of the county | 17 | | where the property is located under the Administrative Review | 18 | | Law. | 19 | | (e) A lien imposed under this Section shall be filed with | 20 | | the county clerk and the county recorder of deeds, but may not | 21 | | be filed sooner than 45 days after the notice was delivered to | 22 | | the property owner if the property owner does not request a | 23 | | hearing, or, until the conclusion of the hearing and all | 24 | | appeals if the property owner does request a hearing. | 25 | | (1) When a lien is filed pursuant to subsection (a) of | 26 | | this Section, the arrearages of taxes that might have been |
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| 1 | | assessed, plus 5% interest per annum, shall be charged | 2 | | against the property by the county clerk. | 3 | | (2) When a lien is filed pursuant to subsection (b) of | 4 | | this Section, the arrearages of taxes that might have been | 5 | | assessed, plus a penalty of 25% of the total amount of | 6 | | unpaid taxes for each year and 10% interest per annum, | 7 | | shall be charged against the property by the county clerk. | 8 | | (3) When a lien is filed pursuant to subsection (c) of | 9 | | this Section, the arrearages of taxes that might have been | 10 | | assessed, plus a penalty of 40% of the total amount of | 11 | | unpaid taxes for each year and 15% interest per annum, | 12 | | shall be charged against the property by the county clerk. | 13 | | (f) If the erroneous homestead exemption was granted as a | 14 | | result of a clerical error or omission on the part of the chief | 15 | | county assessment officer, and if the owner has paid its tax | 16 | | bills as received for the year or years in which the error | 17 | | occurred, then the interest and penalties authorized by this | 18 | | Section shall not be chargeable to the owner. However, nothing | 19 | | in this Section shall prevent the collection of the principal | 20 | | amount of back taxes due and owing. | 21 | | (g) If, at the hearing, the property owner establishes that | 22 | | it is a bona fide purchaser of the property for value, and | 23 | | without notice of the erroneous homestead exemption, the | 24 | | property owner shall not be liable for any unpaid back taxes, | 25 | | interest, or penalties for the period of time prior to the date | 26 | | that the property owner purchased the property. A certified |
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| 1 | | title to the property that is issued by the county clerk or | 2 | | county recorder of deeds and is free and clear of any liens | 3 | | imposed under subsections (a), (b), or (c) of this Section, | 4 | | shall be prima facie evidence that the property owner is | 5 | | without notice of the erroneous homestead exemption. | 6 | | (h) When a lien is filed pursuant to subsection (e) of this | 7 | | Section, the chief county assessment officer shall mail a copy | 8 | | of the lien to the person to whom the most recent tax bill was | 9 | | mailed and the outstanding liability created by such a lien is | 10 | | due and payable within 30 days after the mailing of the lien by | 11 | | the chief county assessment officer. This liability is deemed | 12 | | delinquent and shall bear interest beginning on the day after | 13 | | the due date. Any such liability deemed delinquent after that | 14 | | due date shall bear interest at the rate of 1.5% per month or | 15 | | portion thereof until paid. | 16 | | (i) The unpaid taxes shall be paid to the appropriate | 17 | | taxing districts. Interest shall be paid to the county where | 18 | | the property is located. The penalty shall be paid to the chief | 19 | | county assessment officer's office for the administration of | 20 | | the provisions of this amendatory Act of the 97th General | 21 | | Assembly. | 22 | | (j) For purposes of this Section, "homestead exemption" | 23 | | means an exemption under Section 15-165 (disabled veterans), | 24 | | 15-167 (returning veterans), 15-169 (disabled veterans | 25 | | standard homestead), 15-170 (senior citizens), 15-172 (senior | 26 | | citizens assessment freeze), 15-175 (general homestead), |
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| 1 | | 15-176 (alternative general homestead), or 15-177 (long-time | 2 | | occupant). | 3 | | (35 ILCS 200/10-380) | 4 | | Sec. 10-380. For the taxable years 2006 and thereafter , | 5 | | 2007, 2008, and 2009 , the chief county assessment officer in | 6 | | the county in which property subject to a PPV Lease is located | 7 | | shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of | 8 | | this Division 14 in assessing and determining the value of any | 9 | | PPV Lease for purposes of the property tax laws of this State. | 10 | | (Source: P.A. 94-974, eff. 6-30-06.)
| 11 | | (35 ILCS 200/14-20)
| 12 | | Sec. 14-20. Certificate of error; counties of less than | 13 | | 3,000,000. In any
county with less than 3,000,000 inhabitants, | 14 | | if, at any time before judgment or
order of sale is entered in | 15 | | any proceeding to collect or to enjoin the
collection of taxes | 16 | | based upon any assessment of any property, the chief county
| 17 | | assessment officer discovers an error or mistake in the | 18 | | assessment (other than
errors of judgment as to the valuation | 19 | | of the property), he or she shall issue
to the person | 20 | | erroneously assessed a certificate setting forth the nature of
| 21 | | the error and the cause or causes of the error.
In any county | 22 | | with less than 3,000,000 inhabitants, if an owner fails to
file
| 23 | | an application for any homestead exemption provided under | 24 | | Article 15 during any of the 3 previous assessment years the |
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| 1 | | previous assessment year and qualifies
for the exemption, the | 2 | | Chief County Assessment Officer pursuant to this
Section,
or | 3 | | the Board of Review pursuant to Section 16-75, may shall issue | 4 | | a
certificate of error setting forth the correct taxable | 5 | | valuation of the
property.
The certificate, when properly
| 6 | | endorsed by the majority of the board of review, showing their | 7 | | concurrence, and
not otherwise, may be used in evidence in any | 8 | | court of competent jurisdiction,
and when so introduced in | 9 | | evidence, shall become a part of the court record and
shall not | 10 | | be removed from the files except on an order of the court.
| 11 | | (Source: P.A. 96-522, eff. 8-14-09.)
| 12 | | (35 ILCS 200/15-35)
| 13 | | Sec. 15-35. Schools. All property donated by the United | 14 | | States for school
purposes, and all property of schools, not | 15 | | sold or leased or otherwise used
with a view to profit, is | 16 | | exempt, whether owned by a resident or non-resident
of this | 17 | | State or by a corporation incorporated in any state of the | 18 | | United
States. Also exempt is:
| 19 | | (a) property , along with the leasehold interest in that | 20 | | property, of schools which is leased to the State, a unit | 21 | | of local government, or school district municipality to be | 22 | | used for governmental
municipal purposes on a | 23 | | not-for-profit basis;
| 24 | | (b) property of schools on which the schools are | 25 | | located and any other
property of schools used by the |
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| 1 | | schools exclusively for school purposes,
including, but | 2 | | not limited to, student residence halls, dormitories and
| 3 | | other housing facilities for students and their spouses and | 4 | | children, staff
housing facilities, and school-owned and | 5 | | operated dormitory or residence
halls occupied in whole or | 6 | | in part by students who belong to fraternities,
sororities, | 7 | | or other campus organizations;
| 8 | | (c) property donated, granted, received or used for | 9 | | public school,
college, theological seminary, university, | 10 | | or other educational purposes,
whether held in trust or | 11 | | absolutely;
| 12 | | (d) in counties with more than 200,000 inhabitants | 13 | | which classify
property, property (including interests in | 14 | | land and other facilities) on or
adjacent to (even if | 15 | | separated by a public street, alley, sidewalk, parkway or
| 16 | | other public way) the grounds of a school, if that property | 17 | | is used by an
academic, research or professional society, | 18 | | institute, association or
organization which serves the | 19 | | advancement of learning in a field or fields of
study | 20 | | taught by the school and which property is not used with a | 21 | | view to
profit;
| 22 | | (e) property owned by a school district.
The exemption | 23 | | under this subsection is not affected by any
transaction
in | 24 | | which, for
the purpose of obtaining financing, the school | 25 | | district,
directly or
indirectly, leases or otherwise | 26 | | transfers the property to another for which or
whom |
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| 1 | | property is not exempt and immediately after the lease or | 2 | | transfer enters
into a leaseback
or other agreement that | 3 | | directly or indirectly gives the school district a
right to
| 4 | | use, control, and possess the property. In the case of a
| 5 | | conveyance
of the property, the school district must retain | 6 | | an option
to
purchase the property at a future date or, | 7 | | within the limitations period for
reverters, the property | 8 | | must revert back to the school district.
| 9 | | (1) If the property has been conveyed as described | 10 | | in this subsection,
the
property is no longer exempt | 11 | | under this Section as of the date when:
| 12 | | (A) the right of the school district to use, | 13 | | control,
and possess
the property is terminated;
| 14 | | (B) the school district no longer has an option | 15 | | to
purchase or otherwise acquire the property; and
| 16 | | (C) there is no provision for a reverter of the | 17 | | property to the school
district
within the | 18 | | limitations period for reverters.
| 19 | | (2) Pursuant to Sections 15-15 and 15-20 of this | 20 | | Code, the school
district
shall notify the chief county | 21 | | assessment officer of
any transaction under this | 22 | | subsection. The chief county
assessment officer shall
| 23 | | determine initial and continuing compliance with the | 24 | | requirements of this
subsection for tax exemption. | 25 | | Failure to notify the chief county assessment
officer | 26 | | of a transaction under this subsection or to otherwise |
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| 1 | | comply with the
requirements of Sections
15-15 and | 2 | | 15-20 of this Code shall, in the discretion of the | 3 | | chief county
assessment officer, constitute cause to | 4 | | terminate the exemption,
notwithstanding any other | 5 | | provision of this Code.
| 6 | | (3) No provision of this subsection shall be | 7 | | construed to affect the
obligation
of the school | 8 | | district to which an exemption certificate has been | 9 | | issued under
this Section from its obligation
under | 10 | | Section 15-10 of this Code to file
an annual | 11 | | certificate of status or to notify the chief county | 12 | | assessment
officer of transfers of interest or other | 13 | | changes in the status of the property
as required by | 14 | | this Code.
| 15 | | (4) The changes made by this amendatory Act of the | 16 | | 91st General Assembly
are declarative of existing law | 17 | | and shall not be construed as a new
enactment; and
| 18 | | (f) in counties with more than 200,000 inhabitants | 19 | | which
classify
property,
property of a corporation, which | 20 | | is an exempt entity under paragraph (3) of
Section 501(c) | 21 | | of the Internal Revenue Code or its successor law, used by | 22 | | the
corporation for the following purposes: (1) conducting | 23 | | continuing education
for professional development of | 24 | | personnel in energy-related industries; (2)
maintaining a | 25 | | library of energy technology information available to | 26 | | students
and the public free of charge; and (3) conducting |
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| 1 | | research in energy and
environment, which research results | 2 | | could be ultimately accessible to persons
involved in | 3 | | education.
| 4 | | (Source: P.A. 91-513, eff. 8-13-99; 91-578, eff.
8-14-99; | 5 | | 92-16, eff. 6-28-01.)
| 6 | | (35 ILCS 200/15-57 new) | 7 | | Sec. 15-57. Government property leased to another | 8 | | government entity. If property is owned by the State, a unit of | 9 | | local government, or a school district and that property is | 10 | | leased to the State, a unit of local government, or a school | 11 | | district, then the property is exempt from taxation under this | 12 | | Code and the leasehold interest is exempt from taxation under | 13 | | this Code or under any other law. The provisions of this | 14 | | Section apply notwithstanding any other provision of law. | 15 | | (35 ILCS 200/16-181 new) | 16 | | Sec. 16-181. Stipulation to revised assessment. The board | 17 | | of review whose decision is being appealed may, at its | 18 | | discretion, enter into discussions with a taxpayer aimed at | 19 | | achieving a stipulated revised assessment upon the property, | 20 | | either prior to or after receipt of the taxpayer's petition | 21 | | from the Property Tax Appeal Board. If such discussions | 22 | | commence prior to the board of review's receipt of the | 23 | | taxpayer's petition from the Property Tax Appeal Board, the | 24 | | taxpayer shall provide the board of review with such evidence |
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| 1 | | of the taxpayer's timely filing of its appeal before the | 2 | | Property Tax Appeal Board as the board of review may request, | 3 | | including but not limited to a copy of the taxpayer's petition | 4 | | as filed with the Property Tax Appeal Board. If, after | 5 | | discussions have been entered into, the taxpayer and the board | 6 | | of review propose to stipulate to a revised assessment of the | 7 | | property, and if the original complaint requested a reduction | 8 | | in assessed value of more than $100,000, then the board of | 9 | | review shall first serve a copy of the proposed stipulation or | 10 | | assessment agreement on all taxing districts as shown on the | 11 | | last available property tax bill, along with a copy of the | 12 | | taxpayer's petition as provided to the board of review and all | 13 | | other evidence used to reach the settlement. The taxing | 14 | | districts so served shall have a period of 45 days after the | 15 | | postmark date of the notice from the board of review to file a | 16 | | written objection to the proposal, stating the reasons for the | 17 | | objection, with the board of review. Failure of a taxing | 18 | | district to object to the proposed assessment within the 45-day | 19 | | objection period shall be considered acceptance of the proposed | 20 | | assessment. Upon the later of (i) the expiration of the 45-day | 21 | | objection period or (ii) written resolution of any timely filed | 22 | | written objection received from a taxing district, the board of | 23 | | review shall provide the proposed stipulation or assessment | 24 | | agreement to the Property Tax Appeal Board along with a | 25 | | certificate of service affirming that all taxing districts have | 26 | | been notified of the proposed stipulation or assessment |
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| 1 | | agreement, and that no timely written objections to the | 2 | | stipulation or assessment agreement have been received or that | 3 | | any such objections have been fully resolved. The certificate | 4 | | of service shall be signed by a member of the board of review | 5 | | or the clerk of the board of review. Within 120 days after the | 6 | | Property Tax Appeal Board's receipt of the stipulation or | 7 | | assessment agreement and certificate of service, the Property | 8 | | Tax Appeal Board shall issue a decision in accordance with the | 9 | | stipulation or assessment agreement, unless it finds that the | 10 | | Property Tax Appeal Board lacks jurisdiction over the appeal or | 11 | | that the stipulation or assessment agreement is against the | 12 | | manifest weight of the evidence. | 13 | | If the board of review provides notice to the affected | 14 | | taxing districts of the proposed stipulation or assessment | 15 | | agreement, and a taxing district (i) does not respond to the | 16 | | notice, (ii) accepts the proposed assessment, or (iii) reaches | 17 | | a written resolution with the board of review and the taxpayer, | 18 | | then the board of review is not required to otherwise send | 19 | | notice as required by Section 16-180 of the Property Tax Code | 20 | | to that taxing district, and that taxing district is precluded | 21 | | from intervening or otherwise participating in the appeal | 22 | | pending before the Property Tax Appeal Board challenging the | 23 | | assessment. If a taxing district files a written objection to | 24 | | the proposal to the board of review which is not followed by a | 25 | | written resolution, then the appeal shall proceed as provided | 26 | | by law, the board of review must notify that taxing district as |
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| 1 | | required by Section 16-180, and any proposed stipulation or | 2 | | assessment agreement shall not be considered or introduced as | 3 | | evidence in any proceeding before the Property Tax Appeal | 4 | | Board.
| 5 | | Section 90. The State Mandates Act is amended by adding | 6 | | Section 8.35 as follows: | 7 | | (30 ILCS 805/8.35 new) | 8 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 9 | | of this Act, no reimbursement by the State is required for the | 10 | | implementation of any mandate created by this amendatory Act of | 11 | | the 97th General Assembly. | 12 | | Section 95. Applicability. The changes made by this | 13 | | amendatory Act of the 97th General Assembly to the Property Tax | 14 | | Code by changing Sections 9-195 and 15-35 and by adding Section | 15 | | 15-57 and to the State Mandates Act by adding Section 8.35 | 16 | | apply to taxable years 2010 and thereafter. In addition, those | 17 | | changes and additions also apply to taxable years prior to | 18 | | 2010, but no such taxes paid for any taxable year prior to 2010 | 19 | | need be refunded. | 20 | | Section 97. Severability. The provisions of this Act are | 21 | | severable under Section 1.31 of the Statute on Statutes. |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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