(35 ILCS 405/10) (from Ch. 120, par. 405A-10)
Sec. 10.
Liens and Personal Liability.
(a) Lien for Illinois transfer tax. Unless the
Illinois transfer tax is sooner paid in full, the Illinois
transfer tax shall be a lien in favor of this State upon the transferred
property having a tax situs within this State for 10 years from the date of
the taxable transfer, or, in the case of Illinois transfer tax subject to
deferral or payable in installments, the later of 10 years from the date of
the taxable transfer or one year after the last deferred or installment
payment may become due. The lien imposed by this Section on the
transferred property shall not be valid as against any purchaser,
mortgagee, pledgee, or other holder of a security interest for a full and
adequate consideration in money or money's worth; provided, however, that
any property, consideration or proceeds received as a result of any sale,
mortgage, pledge or granting of a security interest shall remain subject to
the lien imposed by this Section. In addition, the lien imposed by this
Section on the transferred property shall be subject to the exceptions set
forth in Section 6324(c)(i) of the Internal Revenue Code as if the lien
were a lien imposed by that Section. In no event shall the issuance by the
Attorney General of a release of the lien imposed by this subsection be
required with respect to the sale, mortgage, pledge, granting of a security
interest in, transfer or distribution of transferred property.
(b) Special lien for property valued under Section 2032A of the Internal
Revenue Code. In the event the Illinois estate tax is reduced as a result
of an election under Section 2032A of the Internal Revenue Code, then an amount
equal to the additional Illinois estate tax that would be due in the
absence of such an election shall be a lien in favor of this State on the
transferred property that has a tax situs in this State and is subject to
such election. The lien imposed by this subsection shall arise at the time
an election is filed under Section 2032A of the Internal Revenue Code and
shall continue with respect to such transferred property:
(1) until the liability for the Illinois estate tax |
The lien imposed by this subsection shall not be valid as against any
purchaser, mortgagee, pledgee, other holder of a security interest,
mechanic's lien, or judgment lien creditor until notice of such lien has
been filed as provided by the laws of this State. In regulations
prescribed in accordance with Section 16 of this Act, the Attorney General
may require that the qualified heir file such notice of lien. Even though
notice of said lien has been filed as provided in the preceding sentence,
such lien shall be subject to the rules set forth in paragraph (3) of
Section 6324A(d) of the Internal Revenue Code as if the lien were a lien
imposed by that Section.
(c) Personal liability. If the Illinois transfer tax is not paid when
due, then the person required to file the federal return and the
transferee of any transferred property having a tax situs within this State
shall be personally liable for the Illinois transfer tax, to the extent of
such transferred property originally received, controlled or transferred to
that person or transferee, less the amount of any expenses or charges
against the transferred property, related to the taxable transfer, which
have a higher priority of payment under applicable law than the Illinois transfer tax.
(d) Collection. The Attorney General shall have the right to sue for
collection of the Illinois transfer tax for 3 years after the date of the
actual filing of the related Illinois transfer tax return with the Attorney
General, or, if later, the last date upon which application for refund of
the Illinois transfer tax could be filed with the State Treasurer.
(e) Waiver of lien and personal liability. If the Attorney General is
satisfied that no liability for Illinois transfer tax exists or that the
Illinois transfer tax has been fully discharged or provided for, the
Attorney General shall issue a certificate releasing all of the transferred
property having a tax situs within the State of Illinois from the lien
imposed by this Section. Issuance of such certificate shall discharge the
person required to file the Illinois return and any
transferee from
personal liability for the Illinois transfer tax.
(Source: P.A. 93-30, eff. 6-20-03.)
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