Full Text of HB0506 97th General Assembly
HB0506eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Sections 9-195, 10-380, and 15-35 and by adding Sections 9-275, | 6 | | 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 | 17 | | be liable for those taxes. However, no tax lien shall attach to | 18 | | the
exempt real estate. The changes made by this amendatory Act | 19 | | of 1997 and by this
amendatory Act of the 91st General Assembly | 20 | | are declaratory of existing law
and shall not be construed as a | 21 | | new enactment. The changes made by Public Acts
88-221 and | 22 | | 88-420 that are incorporated into this Section by this | 23 | | amendatory
Act of 1993 are declarative of existing law and are |
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| 1 | | not a new enactment.
| 2 | | (b) The provisions of this Section regarding taxation of | 3 | | leasehold interests
in exempt property do not apply to any | 4 | | leasehold interest created pursuant to
any transaction | 5 | | described in subsection (e) of Section 15-35, item (a) of | 6 | | Section 15-35, Section 15-57, subsection (c-5)
of Section | 7 | | 15-60, subsection (b) of Section 15-100, Section 15-103, or
| 8 | | Section 15-185.
| 9 | | (Source: P.A. 92-844, eff. 8-23-02; 92-846, eff.
8-23-02; | 10 | | 93-19, eff. 6-20-03.)
| 11 | | (35 ILCS 200/9-275 new) | 12 | | Sec. 9-275. Erroneous homestead exemptions. | 13 | | (a) If, upon determination by the chief county assessment | 14 | | officer, any person or entity that was not eligible to receive | 15 | | a homestead exemption under Article 15 of this Code was granted | 16 | | one homestead exemption in error for real property in any year | 17 | | or years not to exceed the 3 assessment years prior to the | 18 | | assessment year in which the determination is made, then the | 19 | | chief county assessment officer may cause to be served on the | 20 | | person to whom the most recent tax bill was mailed a notice of | 21 | | intent to record a tax lien against the property with respect | 22 | | to which the erroneous homestead exemption was granted. | 23 | | (b) If, upon determination by the chief county assessment | 24 | | officer, any person or entity that was not eligible to receive | 25 | | a homestead exemption under Article 15 of this Code was granted |
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| 1 | | 2 homestead exemptions in error for real property in any year | 2 | | or years not to exceed the 3 assessment years prior to the | 3 | | assessment year in which the determination is made, then the | 4 | | chief county assessment officer may cause to be served on the | 5 | | person to whom the most recent tax bill was mailed a notice of | 6 | | intent to record a tax lien against the property with respect | 7 | | to which the erroneous homestead exemption was granted. | 8 | | (c) If, upon determination by the chief county assessment | 9 | | officer, any person or entity that was not eligible to receive | 10 | | a homestead exemption under Article 15 of this Code was granted | 11 | | 3 or more homestead exemptions in error for real property in | 12 | | any year or years not to exceed the 6 assessment years prior to | 13 | | the assessment year in which the determination is made, then | 14 | | the chief county assessment officer may cause to be served on | 15 | | the person to whom the most recent tax bill was mailed a notice | 16 | | of intent to record a tax lien against the property with | 17 | | respect to which the erroneous homestead exemption was granted. | 18 | | (d) The notice of intent to record a tax lien described in | 19 | | subsections (a), (b), and (c) of this Section shall identify | 20 | | the property against which the lien is being sought and shall | 21 | | identify the assessment years in which the erroneous homestead | 22 | | exemption was granted. | 23 | | In counties with 3,000,000 or more inhabitants, the notice | 24 | | must also include a form that the property owner may return to | 25 | | the chief county assessment officer to request a hearing. The | 26 | | property owner may request a hearing by returning the form |
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| 1 | | within 30 days after service. The hearing shall be held within | 2 | | 90 days after the property owner is served. The chief county | 3 | | assessment officer shall promulgate rules of service and | 4 | | procedure for the hearing. The chief county assessment officer | 5 | | must generally follow rules of evidence and practices that | 6 | | prevail in the county circuit courts, but, because of the | 7 | | nature of these proceedings, the chief county assessment | 8 | | officer is not bound by those rules in all particulars. The | 9 | | chief county assessment officer shall appoint a hearing officer | 10 | | to oversee the hearing. The property owner shall be allowed to | 11 | | present evidence to the hearing officer at the hearing. After | 12 | | taking into consideration all the relevant testimony and | 13 | | evidence, the hearing officer shall make an administrative | 14 | | decision on whether the property owner was erroneously granted | 15 | | a homestead exemption for the assessment year or years in | 16 | | question. The property owner may appeal the hearing officer's | 17 | | ruling to the circuit court of the county where the property is | 18 | | located under the Administrative Review Law. | 19 | | In counties with less than 3,000,000 inhabitants, the | 20 | | notice must also include a form that the property owner may | 21 | | return to the board of review to request a hearing. The | 22 | | property owner may request a hearing by returning the form | 23 | | within 30 days after service. The hearing shall be held within | 24 | | 90 days after the property owner is served. The board of review | 25 | | shall follow its normal practices and procedures in conducting | 26 | | the hearing. The property owner shall be allowed to present |
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| 1 | | evidence to the board of review. After taking into | 2 | | consideration all of the relevant testimony and evidence, the | 3 | | board of review shall issue a decision on whether the property | 4 | | owner was erroneously granted a homestead exemption for the | 5 | | assessment year or years in question. The property owner may | 6 | | appeal the board of review's ruling to the circuit court of the | 7 | | county where the property is located under the Administrative | 8 | | Review Law. | 9 | | (e) A lien imposed under this Section shall be filed with | 10 | | the county clerk and the county recorder of deeds, but may not | 11 | | be filed sooner than 45 days after the notice was delivered to | 12 | | the property owner if the property owner does not request a | 13 | | hearing, or, until the conclusion of the hearing and all | 14 | | appeals if the property owner does request a hearing. | 15 | | (1) When a lien is filed pursuant to subsection (a) of | 16 | | this Section, the arrearages of taxes that might have been | 17 | | assessed, plus 5% interest per annum, shall be charged | 18 | | against the property by the county clerk. | 19 | | (2) When a lien is filed pursuant to subsection (b) of | 20 | | this Section, the arrearages of taxes that might have been | 21 | | assessed, plus a penalty of 25% of the total amount of | 22 | | unpaid taxes for each year and 10% interest per annum, | 23 | | shall be charged against the property by the county clerk. | 24 | | (3) When a lien is filed pursuant to subsection (c) of | 25 | | this Section, the arrearages of taxes that might have been | 26 | | assessed, plus a penalty of 40% of the total amount of |
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| 1 | | unpaid taxes for each year and 15% interest per annum, | 2 | | shall be charged against the property by the county clerk. | 3 | | (f) If the erroneous homestead exemption was granted as a | 4 | | result of a clerical error or omission on the part of the chief | 5 | | county assessment officer, and if the owner has paid its tax | 6 | | bills as received for the year or years in which the error | 7 | | occurred, then the interest and penalties authorized by this | 8 | | Section shall not be chargeable to the owner. However, nothing | 9 | | in this Section shall prevent the collection of the principal | 10 | | amount of back taxes due and owing. | 11 | | (g) If, at the hearing, the property owner establishes that | 12 | | it is a bona fide purchaser of the property for value, and | 13 | | without notice of the erroneous homestead exemption, the | 14 | | property owner shall not be liable for any unpaid back taxes, | 15 | | interest, or penalties for the period of time prior to the date | 16 | | that the property owner purchased the property. A certified | 17 | | title to the property that is issued by the county clerk or | 18 | | county recorder of deeds and is free and clear of any liens | 19 | | imposed under subsections (a), (b), or (c) of this Section, | 20 | | shall be prima facie evidence that the property owner is | 21 | | without notice of the erroneous homestead exemption. | 22 | | (h) When a lien is filed pursuant to subsection (e) of this | 23 | | Section, the chief county assessment officer shall mail a copy | 24 | | of the lien to the person to whom the most recent tax bill was | 25 | | mailed and the outstanding liability created by such a lien is | 26 | | due and payable within 30 days after the mailing of the lien by |
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| 1 | | the chief county assessment officer. This liability is deemed | 2 | | delinquent and shall bear interest beginning on the day after | 3 | | the due date. Any such liability deemed delinquent after that | 4 | | due date shall bear interest at the rate of 1.5% per month or | 5 | | portion thereof until paid. | 6 | | (i) The unpaid taxes shall be paid to the appropriate | 7 | | taxing districts. Interest shall be paid to the county where | 8 | | the property is located. The penalty shall be paid to the chief | 9 | | county assessment officer's office for the administration of | 10 | | the provisions of this amendatory Act of the 97th General | 11 | | Assembly. | 12 | | (j) For purposes of this Section, "homestead exemption" | 13 | | means an exemption under Section 15-165 (disabled veterans), | 14 | | 15-167 (returning veterans), 15-168 (disabled persons), 15-169 | 15 | | (disabled veterans standard homestead), 15-170 (senior | 16 | | citizens), 15-172 (senior citizens assessment freeze), 15-175 | 17 | | (general homestead), 15-176 (alternative general homestead), | 18 | | or 15-177 (long-time occupant). | 19 | | (35 ILCS 200/10-380) | 20 | | Sec. 10-380. For the taxable years 2006 and thereafter , | 21 | | 2007, 2008, and 2009 , the chief county assessment officer in | 22 | | the county in which property subject to a PPV Lease is located | 23 | | shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of | 24 | | this Division 14 in assessing and determining the value of any | 25 | | PPV Lease for purposes of the property tax laws of this State. |
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| 1 | | (Source: P.A. 94-974, eff. 6-30-06.)
| 2 | | (35 ILCS 200/15-35)
| 3 | | Sec. 15-35. Schools. All property donated by the United | 4 | | States for school
purposes, and all property of schools, not | 5 | | sold or leased or otherwise used
with a view to profit, is | 6 | | exempt, whether owned by a resident or non-resident
of this | 7 | | State or by a corporation incorporated in any state of the | 8 | | United
States. Also exempt is:
| 9 | | (a) property , along with the leasehold interest in that | 10 | | property, of schools which is leased to the State, a unit | 11 | | of local government, or school district municipality to be | 12 | | used for governmental
municipal purposes on a | 13 | | not-for-profit basis;
| 14 | | (b) property of schools on which the schools are | 15 | | located and any other
property of schools used by the | 16 | | schools exclusively for school purposes,
including, but | 17 | | not limited to, student residence halls, dormitories and
| 18 | | other housing facilities for students and their spouses and | 19 | | children, staff
housing facilities, and school-owned and | 20 | | operated dormitory or residence
halls occupied in whole or | 21 | | in part by students who belong to fraternities,
sororities, | 22 | | or other campus organizations;
| 23 | | (c) property donated, granted, received or used for | 24 | | public school,
college, theological seminary, university, | 25 | | or other educational purposes,
whether held in trust or |
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| 1 | | absolutely;
| 2 | | (d) in counties with more than 200,000 inhabitants | 3 | | which classify
property, property (including interests in | 4 | | land and other facilities) on or
adjacent to (even if | 5 | | separated by a public street, alley, sidewalk, parkway or
| 6 | | other public way) the grounds of a school, if that property | 7 | | is used by an
academic, research or professional society, | 8 | | institute, association or
organization which serves the | 9 | | advancement of learning in a field or fields of
study | 10 | | taught by the school and which property is not used with a | 11 | | view to
profit;
| 12 | | (e) property owned by a school district.
The exemption | 13 | | under this subsection is not affected by any
transaction
in | 14 | | which, for
the purpose of obtaining financing, the school | 15 | | district,
directly or
indirectly, leases or otherwise | 16 | | transfers the property to another for which or
whom | 17 | | property is not exempt and immediately after the lease or | 18 | | transfer enters
into a leaseback
or other agreement that | 19 | | directly or indirectly gives the school district a
right to
| 20 | | use, control, and possess the property. In the case of a
| 21 | | conveyance
of the property, the school district must retain | 22 | | an option
to
purchase the property at a future date or, | 23 | | within the limitations period for
reverters, the property | 24 | | must revert back to the school district.
| 25 | | (1) If the property has been conveyed as described | 26 | | in this subsection,
the
property is no longer exempt |
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| 1 | | under this Section as of the date when:
| 2 | | (A) the right of the school district to use, | 3 | | control,
and possess
the property is terminated;
| 4 | | (B) the school district no longer has an option | 5 | | to
purchase or otherwise acquire the property; and
| 6 | | (C) there is no provision for a reverter of the | 7 | | property to the school
district
within the | 8 | | limitations period for reverters.
| 9 | | (2) Pursuant to Sections 15-15 and 15-20 of this | 10 | | Code, the school
district
shall notify the chief county | 11 | | assessment officer of
any transaction under this | 12 | | subsection. The chief county
assessment officer shall
| 13 | | determine initial and continuing compliance with the | 14 | | requirements of this
subsection for tax exemption. | 15 | | Failure to notify the chief county assessment
officer | 16 | | of a transaction under this subsection or to otherwise | 17 | | comply with the
requirements of Sections
15-15 and | 18 | | 15-20 of this Code shall, in the discretion of the | 19 | | chief county
assessment officer, constitute cause to | 20 | | terminate the exemption,
notwithstanding any other | 21 | | provision of this Code.
| 22 | | (3) No provision of this subsection shall be | 23 | | construed to affect the
obligation
of the school | 24 | | district to which an exemption certificate has been | 25 | | issued under
this Section from its obligation
under | 26 | | Section 15-10 of this Code to file
an annual |
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| 1 | | certificate of status or to notify the chief county | 2 | | assessment
officer of transfers of interest or other | 3 | | changes in the status of the property
as required by | 4 | | this Code.
| 5 | | (4) The changes made by this amendatory Act of the | 6 | | 91st General Assembly
are declarative of existing law | 7 | | and shall not be construed as a new
enactment; and
| 8 | | (f) in counties with more than 200,000 inhabitants | 9 | | which
classify
property,
property of a corporation, which | 10 | | is an exempt entity under paragraph (3) of
Section 501(c) | 11 | | of the Internal Revenue Code or its successor law, used by | 12 | | the
corporation for the following purposes: (1) conducting | 13 | | continuing education
for professional development of | 14 | | personnel in energy-related industries; (2)
maintaining a | 15 | | library of energy technology information available to | 16 | | students
and the public free of charge; and (3) conducting | 17 | | research in energy and
environment, which research results | 18 | | could be ultimately accessible to persons
involved in | 19 | | education.
| 20 | | (Source: P.A. 91-513, eff. 8-13-99; 91-578, eff.
8-14-99; | 21 | | 92-16, eff. 6-28-01.)
| 22 | | (35 ILCS 200/15-57 new) | 23 | | Sec. 15-57. Government property leased to another | 24 | | government entity. If property is owned by the State, a unit of | 25 | | local government, or a school district and that property is |
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| 1 | | leased to the State, a unit of local government, or a school | 2 | | district, then the property is exempt from taxation under this | 3 | | Code and the leasehold interest is exempt from taxation under | 4 | | this Code or under any other law. The provisions of this | 5 | | Section apply notwithstanding any other provision of law. | 6 | | (35 ILCS 200/16-181 new) | 7 | | Sec. 16-181. Stipulation to revised assessment. The board | 8 | | of review whose decision is being appealed may, at its | 9 | | discretion, enter into discussions with a taxpayer aimed at | 10 | | achieving a stipulated revised assessment upon the property, | 11 | | either prior to or after receipt of the taxpayer's petition | 12 | | from the Property Tax Appeal Board. If such discussions | 13 | | commence prior to the board of review's receipt of the | 14 | | taxpayer's petition from the Property Tax Appeal Board, the | 15 | | taxpayer shall provide the board of review with such evidence | 16 | | of the taxpayer's timely filing of its appeal before the | 17 | | Property Tax Appeal Board as the board of review may request, | 18 | | including but not limited to a copy of the taxpayer's petition | 19 | | as filed with the Property Tax Appeal Board. If, after | 20 | | discussions have been entered into, the taxpayer and the board | 21 | | of review propose to stipulate to a revised assessment of the | 22 | | property, and if the original complaint requested a reduction | 23 | | in assessed value of more than $100,000, then the board of | 24 | | review shall first serve a copy of the proposed stipulation or | 25 | | assessment agreement on all taxing districts as shown on the |
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| 1 | | last available property tax bill, along with a copy of the | 2 | | taxpayer's petition as provided to the board of review and all | 3 | | other evidence used to reach the settlement. The taxing | 4 | | districts so served shall have a period of 45 days after the | 5 | | postmark date of the notice from the board of review to file a | 6 | | written objection to the proposal, stating the reasons for the | 7 | | objection, with the board of review. Failure of a taxing | 8 | | district to object to the proposed assessment within the 45-day | 9 | | objection period shall be considered acceptance of the proposed | 10 | | assessment. Upon the later of (i) the expiration of the 45-day | 11 | | objection period or (ii) written resolution of any timely filed | 12 | | written objection received from a taxing district, the board of | 13 | | review shall provide the proposed stipulation or assessment | 14 | | agreement to the Property Tax Appeal Board along with a | 15 | | certificate of service affirming that all taxing districts have | 16 | | been notified of the proposed stipulation or assessment | 17 | | agreement, and that no timely written objections to the | 18 | | stipulation or assessment agreement have been received or that | 19 | | any such objections have been fully resolved. The certificate | 20 | | of service shall be signed by a member of the board of review | 21 | | or the clerk of the board of review. Within 120 days after the | 22 | | Property Tax Appeal Board's receipt of the stipulation or | 23 | | assessment agreement and certificate of service, the Property | 24 | | Tax Appeal Board shall issue a decision in accordance with the | 25 | | stipulation or assessment agreement, unless it finds that the | 26 | | Property Tax Appeal Board lacks jurisdiction over the appeal or |
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| 1 | | that the stipulation or assessment agreement is against the | 2 | | manifest weight of the evidence. | 3 | | If the board of review provides notice to the affected | 4 | | taxing districts of the proposed stipulation or assessment | 5 | | agreement, and a taxing district (i) does not respond to the | 6 | | notice, (ii) accepts the proposed assessment, or (iii) reaches | 7 | | a written resolution with the board of review and the taxpayer, | 8 | | then the board of review is not required to otherwise send | 9 | | notice as required by Section 16-180 of the Property Tax Code | 10 | | to that taxing district, and that taxing district is precluded | 11 | | from intervening or otherwise participating in the appeal | 12 | | pending before the Property Tax Appeal Board challenging the | 13 | | assessment. If a taxing district files a written objection to | 14 | | the proposal to the board of review which is not followed by a | 15 | | written resolution, then the appeal shall proceed as provided | 16 | | by law, the board of review must notify that taxing district as | 17 | | required by Section 16-180, and any proposed stipulation or | 18 | | assessment agreement shall not be considered or introduced as | 19 | | evidence in any proceeding before the Property Tax Appeal | 20 | | Board.
| 21 | | Section 90. The State Mandates Act is amended by adding | 22 | | Section 8.35 as follows: | 23 | | (30 ILCS 805/8.35 new) | 24 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| 1 | | of this Act, no reimbursement by the State is required for the | 2 | | implementation of any mandate created by this amendatory Act of | 3 | | the 97th General Assembly. | 4 | | Section 95. Applicability. The changes made by this | 5 | | amendatory Act of the 97th General Assembly to the Property Tax | 6 | | Code by changing Sections 9-195 and 15-35 and by adding Section | 7 | | 15-57 and to the State Mandates Act by adding Section 8.35 | 8 | | apply to taxable years 2010 and thereafter. In addition, those | 9 | | changes and additions also apply to taxable years prior to | 10 | | 2010, but no such taxes paid for any taxable year prior to 2010 | 11 | | need be refunded. | 12 | | Section 97. Severability. The provisions of this Act are | 13 | | severable under Section 1.31 of the Statute on Statutes.
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