Rep. Michael J. Zalewski

Filed: 5/25/2011

 

 


 

 


 
09700SB0395ham005LRB097 04207 HLH 56201 a

1
AMENDMENT TO SENATE BILL 395

2    AMENDMENT NO. ______. Amend Senate Bill 395 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 9-195, 10-380, 14-20, and 15-35 and by adding Sections
69-275, 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,
1015-60, 15-100, 15-103, and 15-185, when property which is
11exempt from taxation is leased to another whose property is not
12exempt, and the leasing of which does not make the property
13taxable, the leasehold estate and the appurtenances shall be
14listed as the property of the lessee thereof, or his or her
15assignee. Taxes on that property shall be collected in the same
16manner as on property that is not exempt, and the lessee shall

 

 

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1be liable for those taxes. However, no tax lien shall attach to
2the exempt real estate. The changes made by this amendatory Act
3of 1997 and by this amendatory Act of the 91st General Assembly
4are declaratory of existing law and shall not be construed as a
5new enactment. The changes made by Public Acts 88-221 and
688-420 that are incorporated into this Section by this
7amendatory Act of 1993 are declarative of existing law and are
8not a new enactment.
9    (b) The provisions of this Section regarding taxation of
10leasehold interests in exempt property do not apply to any
11leasehold interest created pursuant to any transaction
12described in subsection (e) of Section 15-35, item (a) of
13Section 15-35, Section 15-57, subsection (c-5) of Section
1415-60, subsection (b) of Section 15-100, Section 15-103, or
15Section 15-185.
16(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02;
1793-19, 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
21officer, any person or entity that was not eligible to receive
22a homestead exemption under Article 15 of this Code was granted
23one homestead exemption in error for real property in any year
24or years not to exceed the assessment year in which the
25determination is made and 2 assessment years prior to that

 

 

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1year, then the chief county assessment officer may cause to be
2served on the person to whom the most recent tax bill was
3mailed a notice of intent to record a tax lien against the
4property with respect to which the erroneous homestead
5exemption was granted.
6    (b) If, upon determination by the chief county assessment
7officer, any person or entity that was not eligible to receive
8a homestead exemption under Article 15 of this Code was granted
92 homestead exemptions in error for real property in any year
10or years not to exceed the assessment year in which the
11determination is made and 2 assessment years prior to that
12year, then the chief county assessment officer may cause to be
13served on the person to whom the most recent tax bill was
14mailed a notice of intent to record a tax lien against the
15property with respect to which the erroneous homestead
16exemption was granted.
17    (c) If, upon determination by the chief county assessment
18officer, any person or entity that was not eligible to receive
19a homestead exemption under Article 15 of this Code was granted
203 or more homestead exemptions in error for real property in
21any year or years not to exceed the assessment year in which
22the determination is made and 5 assessment years prior to that
23year, then the chief county assessment officer may cause to be
24served on the person to whom the most recent tax bill was
25mailed a notice of intent to record a tax lien against the
26property with respect to which the erroneous homestead

 

 

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1exemption was granted.
2    (d) The notice of intent to record a tax lien described in
3subsections (a), (b), and (c) of this Section shall identify
4the property against which the lien is being sought and shall
5identify the assessment years in which the erroneous homestead
6exemption was granted.
7    In counties with 3,000,000 or more inhabitants, the notice
8must also include a form that the property owner may return to
9the chief county assessment officer to request a hearing. The
10property owner may request a hearing by returning the form
11within 30 days after service. The hearing shall be held within
1290 days after the property owner is served. The chief county
13assessment officer shall promulgate rules of service and
14procedure for the hearing. The chief county assessment officer
15must generally follow rules of evidence and practices that
16prevail in the county circuit courts, but, because of the
17nature of these proceedings, the chief county assessment
18officer is not bound by those rules in all particulars. The
19chief county assessment officer shall appoint a hearing officer
20to oversee the hearing. The property owner shall be allowed to
21present evidence to the hearing officer at the hearing. After
22taking into consideration all the relevant testimony and
23evidence, the hearing officer shall make an administrative
24decision on whether the property owner was erroneously granted
25a homestead exemption for the assessment year or years in
26question. The property owner may appeal the hearing officer's

 

 

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1ruling to the circuit court of the county where the property is
2located under the Administrative Review Law.
3    In counties with less than 3,000,000 million inhabitants,
4the notice must also include a form that the property owner may
5return to the board of review to request a hearing. The
6property owner may request a hearing by returning the form
7within 30 days after service. The hearing shall be held within
890 days after the property owner is served. The board of review
9shall follow its normal practices and procedures in conducting
10the hearing. The property owner shall be allowed to present
11evidence to board of review. After taking into consideration
12all of the relevant testimony and evidence, the board of review
13shall issue a decision on whether the property owner was
14erroneously granted a homestead exemption for the assessment
15year or years in question. The property owner may appeal the
16board of review's ruling to the circuit court of the county
17where the property is located under the Administrative Review
18Law.
19    (e) A lien imposed under this Section shall be filed with
20the county clerk and the county recorder of deeds, but may not
21be filed sooner than 45 days after the notice was delivered to
22the property owner if the property owner does not request a
23hearing, or, until the conclusion of the hearing and all
24appeals 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
14result of a clerical error or omission on the part of the chief
15county assessment officer, and if the owner has paid its tax
16bills as received for the year or years in which the error
17occurred, then the interest and penalties authorized by this
18Section shall not be chargeable to the owner. However, nothing
19in this Section shall prevent the collection of the principal
20amount of back taxes due and owing.
21    (g) If, at the hearing, the property owner establishes that
22it is a bona fide purchaser of the property for value, and
23without notice of the erroneous homestead exemption, the
24property owner shall not be liable for any unpaid back taxes,
25interest, or penalties for the period of time prior to the date
26that the property owner purchased the property. A certified

 

 

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1title to the property that is issued by the county clerk or
2county recorder of deeds and is free and clear of any liens
3imposed under subsections (a), (b), or (c) of this Section,
4shall be prima facie evidence that the property owner is
5without notice of the erroneous homestead exemption.
6    (h) When a lien is filed pursuant to subsection (e) of this
7Section, the chief county assessment officer shall mail a copy
8of the lien to the person to whom the most recent tax bill was
9mailed and the outstanding liability created by such a lien is
10due and payable within 30 days after the mailing of the lien by
11the chief county assessment officer. This liability is deemed
12delinquent and shall bear interest beginning on the day after
13the due date. Any such liability deemed delinquent after that
14due date shall bear interest at the rate of 1.5% per month or
15portion thereof until paid.
16    (i) The unpaid taxes shall be paid to the appropriate
17taxing districts. Interest shall be paid to the county where
18the property is located. The penalty shall be paid to the chief
19county assessment officer's office for the administration of
20the provisions of this amendatory Act of the 97th General
21Assembly.
22    (j) For purposes of this Section, "homestead exemption"
23means an exemption under Section 15-165 (disabled veterans),
2415-167 (returning veterans), 15-169 (disabled veterans
25standard homestead), 15-170 (senior citizens), 15-172 (senior
26citizens assessment freeze), 15-175 (general homestead),

 

 

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115-176 (alternative general homestead), or 15-177 (long-time
2occupant).
 
3    (35 ILCS 200/10-380)
4    Sec. 10-380. For the taxable years 2006 and thereafter ,
52007, 2008, and 2009, the chief county assessment officer in
6the county in which property subject to a PPV Lease is located
7shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of
8this Division 14 in assessing and determining the value of any
9PPV 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
133,000,000. In any county with less than 3,000,000 inhabitants,
14if, at any time before judgment or order of sale is entered in
15any proceeding to collect or to enjoin the collection of taxes
16based upon any assessment of any property, the chief county
17assessment officer discovers an error or mistake in the
18assessment (other than errors of judgment as to the valuation
19of the property), he or she shall issue to the person
20erroneously assessed a certificate setting forth the nature of
21the error and the cause or causes of the error. In any county
22with less than 3,000,000 inhabitants, if an owner fails to file
23an application for any homestead exemption provided under
24Article 15 during any of the 3 previous assessment years the

 

 

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1previous assessment year and qualifies for the exemption, the
2Chief County Assessment Officer pursuant to this Section, or
3the Board of Review pursuant to Section 16-75, may shall issue
4a certificate of error setting forth the correct taxable
5valuation of the property. The certificate, when properly
6endorsed by the majority of the board of review, showing their
7concurrence, and not otherwise, may be used in evidence in any
8court of competent jurisdiction, and when so introduced in
9evidence, shall become a part of the court record and shall not
10be 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
14States for school purposes, and all property of schools, not
15sold or leased or otherwise used with a view to profit, is
16exempt, whether owned by a resident or non-resident of this
17State or by a corporation incorporated in any state of the
18United 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;
592-16, eff. 6-28-01.)
 
6    (35 ILCS 200/15-57 new)
7    Sec. 15-57. Government property leased to another
8government entity. If property is owned by the State, a unit of
9local government, or a school district and that property is
10leased to the State, a unit of local government, or a school
11district, then the property is exempt from taxation under this
12Code and the leasehold interest is exempt from taxation under
13this Code or under any other law. The provisions of this
14Section apply notwithstanding any other provision of law.
 
15    (35 ILCS 200/16-181 new)
16    Sec. 16-181. Stipulation to revised assessment. The board
17of review whose decision is being appealed may, at its
18discretion, enter into discussions with a taxpayer aimed at
19achieving a stipulated revised assessment upon the property,
20either prior to or after receipt of the taxpayer's petition
21from the Property Tax Appeal Board. If such discussions
22commence prior to the board of review's receipt of the
23taxpayer's petition from the Property Tax Appeal Board, the
24taxpayer shall provide the board of review with such evidence

 

 

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1of the taxpayer's timely filing of its appeal before the
2Property Tax Appeal Board as the board of review may request,
3including but not limited to a copy of the taxpayer's petition
4as filed with the Property Tax Appeal Board. If, after
5discussions have been entered into, the taxpayer and the board
6of review propose to stipulate to a revised assessment of the
7property, and if the original complaint requested a reduction
8in assessed value of more than $100,000, then the board of
9review shall first serve a copy of the proposed stipulation or
10assessment agreement on all taxing districts as shown on the
11last available property tax bill, along with a copy of the
12taxpayer's petition as provided to the board of review and all
13other evidence used to reach the settlement. The taxing
14districts so served shall have a period of 45 days after the
15postmark date of the notice from the board of review to file a
16written objection to the proposal, stating the reasons for the
17objection, with the board of review. Failure of a taxing
18district to object to the proposed assessment within the 45-day
19objection period shall be considered acceptance of the proposed
20assessment. Upon the later of (i) the expiration of the 45-day
21objection period or (ii) written resolution of any timely filed
22written objection received from a taxing district, the board of
23review shall provide the proposed stipulation or assessment
24agreement to the Property Tax Appeal Board along with a
25certificate of service affirming that all taxing districts have
26been notified of the proposed stipulation or assessment

 

 

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1agreement, and that no timely written objections to the
2stipulation or assessment agreement have been received or that
3any such objections have been fully resolved. The certificate
4of service shall be signed by a member of the board of review
5or the clerk of the board of review. Within 120 days after the
6Property Tax Appeal Board's receipt of the stipulation or
7assessment agreement and certificate of service, the Property
8Tax Appeal Board shall issue a decision in accordance with the
9stipulation or assessment agreement, unless it finds that the
10Property Tax Appeal Board lacks jurisdiction over the appeal or
11that the stipulation or assessment agreement is against the
12manifest weight of the evidence.
13    If the board of review provides notice to the affected
14taxing districts of the proposed stipulation or assessment
15agreement, and a taxing district (i) does not respond to the
16notice, (ii) accepts the proposed assessment, or (iii) reaches
17a written resolution with the board of review and the taxpayer,
18then the board of review is not required to otherwise send
19notice as required by Section 16-180 of the Property Tax Code
20to that taxing district, and that taxing district is precluded
21from intervening or otherwise participating in the appeal
22pending before the Property Tax Appeal Board challenging the
23assessment. If a taxing district files a written objection to
24the proposal to the board of review which is not followed by a
25written resolution, then the appeal shall proceed as provided
26by law, the board of review must notify that taxing district as

 

 

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1required by Section 16-180, and any proposed stipulation or
2assessment agreement shall not be considered or introduced as
3evidence in any proceeding before the Property Tax Appeal
4Board.
 
5    Section 90. The State Mandates Act is amended by adding
6Section 8.35 as follows:
 
7    (30 ILCS 805/8.35 new)
8    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 97th General Assembly.
 
12    Section 95. Applicability. The changes made by this
13amendatory Act of the 97th General Assembly to the Property Tax
14Code by changing Sections 9-195 and 15-35 and by adding Section
1515-57 and to the State Mandates Act by adding Section 8.35
16apply to taxable years 2010 and thereafter. In addition, those
17changes and additions also apply to taxable years prior to
182010, but no such taxes paid for any taxable year prior to 2010
19need be refunded.
 
20    Section 97. Severability. The provisions of this Act are
21severable under Section 1.31 of the Statute on Statutes.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".