Illinois General Assembly - Full Text of HB3782
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Full Text of HB3782  102nd General Assembly

HB3782 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3782

 

Introduced 2/22/2021, by Rep. Daniel Didech

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/8-35
35 ILCS 200/14-15
35 ILCS 200/14-20
35 ILCS 200/14-25
35 ILCS 200/15-25
35 ILCS 200/23-25

    Amends the Property Tax Code. Provides that no certificate of error shall be issued without the chief county assessment officer first having given all affected taxing districts 30 days' written notice. Provides that taxing districts may seek a judicial determination as to the exempt status of property.


LRB102 14507 HLH 19860 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3782LRB102 14507 HLH 19860 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 8-35, 14-15, 14-20, 14-25, 15-25, and 23-25 as
6follows:
 
7    (35 ILCS 200/8-35)
8    Sec. 8-35. Notification requirements; procedure on
9protest.
10    (a) Assessments made by the Department. Upon completion of
11its original assessments, the Department shall publish a
12complete list of the assessments in the State "official
13newspaper." Any person feeling aggrieved by any such
14assessment may, within 10 days of the date of publication of
15the list, apply to the Department for a review and correction
16of that assessment. Upon review of the assessment, the
17Department shall make any correction as it considers just.
18    If review of an assessment has been made and notice has
19been given of the Department's decision, any party to the
20proceeding who feels aggrieved by the decision, may file an
21application for hearing. The application shall be in writing
22and shall be filed with the Department within 20 days after
23notice of the decision has been given by certified mail.

 

 

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1Petitions for hearing shall state concisely the mistakes
2alleged to have been made or the new evidence to be presented.
3    No action for the judicial review of any assessment
4decision of the Department shall be allowed unless the party
5commencing such action has filed an application for a hearing
6and the Department has acted upon the application.
7    The extension of taxes on an assessment shall not be
8delayed by any proceeding under this Section. In cases where
9the assessment is revised, the taxes extended upon the
10assessment, or that part of the taxes as may be appropriate,
11shall be abated or, if already paid, refunded.
12    (b) Exemption decisions made by the Department. Notice of
13each exemption decision made by the Department under Section
1415-25, 16-70, or 16-130 shall be given by certified mail to the
15applicant for exemption.
16    If an exemption decision has been made by the Department
17and notice has been given of the Department's decision, any
18party to the proceeding who feels aggrieved by the decision
19may file an application for hearing. The application shall be
20in writing and shall be filed with the Department within 60
21days after notice of the decision has been given by certified
22mail. Petitions for hearing shall state concisely the mistakes
23alleged to have been made or the new evidence to be presented.
24    If a petition for hearing is filed, the Department shall
25reconsider the exemption decision and shall grant any party to
26the proceeding a hearing. As soon as practical after the

 

 

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1reconsideration and hearing, the Department shall issue a
2notice of decision by mailing the notice by certified mail.
3The notice shall set forth the Department's findings of fact
4and the basis of the decision.
5    Within 30 days after the mailing of a notice of decision,
6any party to the proceeding may file with the Director a
7written request for rehearing in such form as the Department
8may by rule prescribe, setting forth the grounds on which
9rehearing is requested. If rehearing or Departmental review is
10granted, as soon as practical after the rehearing or
11Departmental review has been held, the Department shall issue
12a revised decision to the party or the party's legal
13representative as a result of the rehearing. The action of the
14Department on a petition for hearing shall become final the
15later of (i) 30 days after issuance of a notice of decision, if
16no request for rehearing is made, or (ii) if a timely request
17for rehearing is made, upon the issuance of the denial of the
18request or the issuance of a notice of final decision.
19    No action for the judicial review of any exemption
20decision of the Department shall be allowed unless the party
21commencing the action has filed an application for a hearing
22and the Department has acted upon the application.
23    The extension of taxes on an assessment shall not be
24delayed by any proceeding under this Section. In cases when
25the exemption is granted, in whole or in part, the taxes
26extended upon the assessment, or that part of the taxes as may

 

 

HB3782- 4 -LRB102 14507 HLH 19860 b

1be appropriate, shall be abated or, if already paid, refunded.
2However, in no event shall taxes be refunded until the time to
3request a hearing under this Section has expired or, if such a
4hearing has been timely requested, until the Department has
5made its decision on reconsideration and all opportunity for
6judicial review has been exhausted.
7(Source: P.A. 92-658, eff. 7-16-02.)
 
8    (35 ILCS 200/14-15)
9    Sec. 14-15. Certificate of error; counties of 3,000,000 or
10more.
11    (a) In counties with 3,000,000 or more inhabitants, if,
12after the assessment is certified pursuant to Section 16-150,
13but subject to the limitations of subsection (c) of this
14Section, the county assessor discovers an error or mistake in
15the assessment, the assessor shall execute a certificate
16setting forth the nature and cause of the error. The
17certificate when endorsed by the county assessor, or when
18endorsed by the county assessor and board of appeals (until
19the first Monday in December 1998 and the board of review
20beginning the first Monday in December 1998 and thereafter)
21where the certificate is executed for any assessment which was
22the subject of a complaint filed in the board of appeals (until
23the first Monday in December 1998 and the board of review
24beginning the first Monday in December 1998 and thereafter)
25for the tax year for which the certificate is issued, may,

 

 

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1either be certified according to the procedure authorized by
2this Section or be presented and received in evidence in any
3court of competent jurisdiction. Certification is authorized,
4at the discretion of the county assessor, for: (1)
5certificates of error allowing homestead exemptions under
6Article 15; (2) certificates of error on residential property
7of 6 units or less; (3) certificates of error allowing
8exemption of the property pursuant to Section 14-25; and (4)
9other certificates of error reducing assessed value by less
10than $100,000. Any certificate of error not certified shall be
11presented to the court. The county assessor shall develop
12reasonable procedures for the filing and processing of
13certificates of error. Prior to the certification or
14presentation to the court, the county assessor or his or her
15designee shall execute and include in the certificate of error
16a statement attesting that all procedural requirements
17pertaining to the issuance of the certificate of error have
18been met and that in fact an error exists. When so introduced
19in evidence such certificate shall become a part of the court
20records, and shall not be removed from the files except upon
21the order of the court.
22    Certificates of error that will be presented to the court
23shall be filed as an objection in the application for judgment
24and order of sale for the year in relation to which the
25certificate is made or as an amendment to the objection under
26subsection (b). Certificates of error that are to be certified

 

 

HB3782- 6 -LRB102 14507 HLH 19860 b

1according to the procedure authorized by this Section need not
2be presented to the court as an objection or an amendment under
3subsection (b). The State's Attorney of the county in which
4the property is situated shall mail a copy of any final
5judgment entered by the court regarding any certificate of
6error to the taxpayer of record for the year in question.
7    Any unpaid taxes after the entry of the final judgment by
8the court or certification on certificates issued under this
9Section may be included in a special tax sale, provided that an
10advertisement is published and a notice is mailed to the
11person in whose name the taxes were last assessed, in a form
12and manner substantially similar to the advertisement and
13notice required under Sections 21-110 and 21-135. The
14advertisement and sale shall be subject to all provisions of
15law regulating the annual advertisement and sale of delinquent
16property, to the extent that those provisions may be made
17applicable.
18    A certificate of error certified under this Section shall
19be given effect by the county treasurer, who shall mark the tax
20books and, upon receipt of one of the following certificates
21from the county assessor or the county assessor and the board
22of review where the board of review is required to endorse the
23certificate of error, shall issue refunds to the taxpayer
24accordingly:
 
25
"CERTIFICATION

 

 

HB3782- 7 -LRB102 14507 HLH 19860 b

1    I, .................., county assessor, hereby certify
2    that the Certificates of Error set out on the attached
3    list have been duly issued to correct an error or mistake
4    in the assessment."
 
5
"CERTIFICATION
6    I, .................., county assessor, and we,
7    ........................................................,
8    members of the board of review, hereby certify that the
9    Certificates of Error set out on the attached list have
10    been duly issued to correct an error or mistake in the
11    assessment and that any certificates of error required to
12    be endorsed by the board of review have been so endorsed."
 
13    The county treasurer has the power to mark the tax books to
14reflect the issuance of certificates of error certified
15according to the procedure authorized in this Section for
16certificates of error issued under Section 14-25 or
17certificates of error issued to and including 3 years after
18the date on which the annual judgment and order of sale for
19that tax year was first entered. The county treasurer has the
20power to issue refunds to the taxpayer as set forth above until
21all refunds authorized by this Section have been completed.
22    To the extent that the certificate of error obviates the
23liability for nonpayment of taxes, certification of a
24certificate of error according to the procedure authorized in

 

 

HB3782- 8 -LRB102 14507 HLH 19860 b

1this Section shall operate to vacate any judgment or
2forfeiture as to that year's taxes, and the warrant books and
3judgment books shall be marked to reflect that the judgment or
4forfeiture has been vacated.
5    (b) Nothing in subsection (a) of this Section shall be
6construed to prohibit the execution, endorsement, issuance,
7and adjudication of a certificate of error if (i) the annual
8judgment and order of sale for the tax year in question is
9reopened for further proceedings upon consent of the county
10collector and county assessor, represented by the State's
11Attorney, and (ii) a new final judgment is subsequently
12entered pursuant to the certificate. This subsection (b) shall
13be construed as declarative of existing law and not as a new
14enactment.
15    (c) No certificate of error, other than a certificate to
16establish an exemption under Section 14-25, shall be executed
17for any tax year more than 3 years after the date on which the
18annual judgment and order of sale for that tax year was first
19entered, except that during calendar years 1999 and 2000 a
20certificate of error may be executed for any tax year,
21provided that the error or mistake in the assessment was
22discovered no more than 3 years after the date on which the
23annual judgment and order of sale for that tax year was first
24entered.
25    (d) The time limitation of subsection (c) shall not apply
26to a certificate of error correcting an assessment to $1,

 

 

HB3782- 9 -LRB102 14507 HLH 19860 b

1under Section 10-35, on a parcel that a subdivision or planned
2development has acquired by adverse possession, if during the
3tax year for which the certificate is executed the subdivision
4or planned development used the parcel as common area, as
5defined in Section 10-35, and if application for the
6certificate of error is made prior to December 1, 1997.
7    (e) The changes made by this amendatory Act of the 91st
8General Assembly apply to certificates of error issued before,
9on, and after the effective date of this amendatory Act of the
1091st General Assembly.
11    (f) No certificate of error shall be issued under this
12Section based upon an exemption from taxation without the
13Assessor first having given all affected taxing districts 30
14days' written notice.
15(Source: P.A. 95-644, eff. 10-12-07.)
 
16    (35 ILCS 200/14-20)
17    Sec. 14-20. Certificate of error; counties of less than
183,000,000. In any county with less than 3,000,000 inhabitants,
19if, at any time before judgment or order of sale is entered in
20any proceeding to collect or to enjoin the collection of taxes
21based upon any assessment of any property, the chief county
22assessment officer discovers an error or mistake in the
23assessment (other than errors of judgment as to the valuation
24of the property), he or she shall issue to the person
25erroneously assessed a certificate setting forth the nature of

 

 

HB3782- 10 -LRB102 14507 HLH 19860 b

1the error and the cause or causes of the error. In any county
2with less than 3,000,000 inhabitants, if an owner fails to
3file an application for any homestead exemption provided under
4Article 15 during the previous assessment year and qualifies
5for the exemption, the Chief County Assessment Officer
6pursuant to this Section, or the Board of Review pursuant to
7Section 16-75, shall issue a certificate of error setting
8forth the correct taxable valuation of the property. The
9certificate, when properly endorsed by the majority of the
10board of review, showing their concurrence, and not otherwise,
11may be used in evidence in any court of competent
12jurisdiction, and when so introduced in evidence, shall become
13a part of the court record and shall not be removed from the
14files except on an order of the court. No certificate of error
15shall be issued under this Section based upon an exemption
16from taxation without the chief county assessment officer
17first having given all affected taxing districts 30 days'
18written notice.
19(Source: P.A. 96-522, eff. 8-14-09.)
 
20    (35 ILCS 200/14-25)
21    Sec. 14-25. Certificate of error; tax exempt property. If
22an exemption is approved by the Department and all opportunity
23for reconsideration by the Department under Section 8-35 of
24the Property Tax Code and judicial review thereon has been
25exhausted or if an exemption is approved by a final court

 

 

HB3782- 11 -LRB102 14507 HLH 19860 b

1decision in proceedings to review an exemption decision of the
2Department under the Administrative Review Law then a
3certificate of error shall be issued under Section 14-15 or
414-20 if one of the following is met:
5    (a) If the property became eligible for the exemption at
6an earlier time, a certificate of error shall be issued for the
7period of eligibility, but in no event, except as otherwise
8provided in this subsection (a), for more than the 3
9assessment years immediately preceding the assessment year for
10which the exemption was approved. A certificate of error shall
11be issued for the period of eligibility, but in no event for
12more than the 5 assessment years immediately preceding the
13assessment year for which the exemption was approved, if the
14municipality requests the certificate of error before January
151, 1995.
16    (b) If the property is subsequently erroneously assessed
17as non-exempt, that error shall be remedied by the issuance of
18a certificate of error.
19    (c) If the owner failed to file an application for
20exemption, or a certificate of status under Section 15-10, for
21an assessment year following the assessment year for which the
22exemption was approved and the property remains eligible for
23exemption for the following year.
24(Source: P.A. 88-455; 88-660, eff. 9-16-94.)
 
25    (35 ILCS 200/15-25)

 

 

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1    Sec. 15-25. Removal of exemptions.
2    (a) If the Department determines that any property has
3been unlawfully exempted from taxation, or is no longer
4entitled to exemption, the Department shall, before January 1
5of any year, direct the chief county assessment officer to
6assess the property and return it to the assessment rolls for
7the next assessment year. The Department shall give notice of
8its decision to the owner of the property by certified mail.
9The decision shall be subject to review and hearing under
10Section 8-35, upon application by the owner filed within 60
11days after the notice of decision is mailed. However, the
12extension of taxes on the assessment shall not be delayed by
13any proceedings under this Section. If the property is
14determined to be exempt, any taxes extended upon the
15assessment shall be abated or, if already paid, be refunded.
16    (b) Any taxing district may initiate, no later than
17November 1 of any year, a complaint with the Department,
18requesting that the Department make a determination under
19subsection (a) of this Section that any property located
20within the boundaries of such taxing district has been
21unlawfully exempted from taxation or is no longer entitled to
22exemption for the next assessment year. If such request is
23denied or not acted upon by the Department within 60 days of
24receipt, the complainant taxing district may initiate, no
25later than March 1 of the assessment year, an original action
26in circuit court seeking a declaration whether the property is

 

 

HB3782- 13 -LRB102 14507 HLH 19860 b

1no longer to be tax exempt. The Department shall be bound by
2such judicial determination.
3(Source: P.A. 95-331, eff. 8-21-07.)
 
4    (35 ILCS 200/23-25)
5    Sec. 23-25. Tax exempt property; restriction on judicial
6determinations.
7    (a) No taxpayer may file an objection as provided in
8Section 21-175 or Section 23-10 on the grounds that the
9property is exempt from taxation, or otherwise seek a judicial
10determination as to tax exempt status, except as provided in
11Section 8-40 and except as otherwise provided in this Section
12and Section 14-25 and Section 21-175.
13    (b) Nothing in this Section shall affect the right of a
14governmental agency to seek a judicial determination as to the
15exempt status of property for those years during which eminent
16domain proceedings were pending before a court, once a
17certificate of exemption for the property is obtained by the
18governmental agency under Section 8-35 or Section 8-40.
19    (c) This Section shall not apply to exemptions granted
20under Sections 15-165 through 15-180.
21    (d) The limitation in this Section shall not apply to
22court proceedings relating to an exemption for the 1985
23assessment year and preceding assessment years. However, an
24order entered in any such proceeding shall not preclude the
25necessity of applying for an exemption for 1986 or later

 

 

HB3782- 14 -LRB102 14507 HLH 19860 b

1assessment years in the manner provided by Section 16-70 or
216-130.
3    (e) The limitation in this Section shall not apply to
4court proceedings to establish an exemption for any specific
5assessment year, provided that the plaintiff or its
6predecessor in interest in the property has established an
7exemption for any subsequent or prior assessment year on
8grounds comparable to those alleged in the court proceedings.
9For purposes of this subsection, the exemption for a
10subsequent or prior year must have been determined under
11Section 8-35 or a prior similar law by the Department or a
12predecessor agency, or under Section 8-40. Court proceedings
13permitted by this subsection may be initiated while
14proceedings for the subsequent or prior year under Section
1516-70, 16-130, 8-35, or 8-40 are still pending, but judgment
16shall not be entered until the proceedings under Section 8-35
17or 8-40 have terminated.
18    (f) Nothing in this Section shall affect the right of a
19taxing district to seek a judicial determination as to the
20exempt status of property as provided in Section 15-25 of the
21Property Tax Code.
22(Source: P.A. 89-126, eff. 7-11-95; 90-679, eff. 7-31-98.)