Illinois General Assembly - Full Text of SB0395
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Full Text of SB0395  97th General Assembly


Rep. Barbara Flynn Currie

Filed: 5/11/2011





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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, and 15-35 and by adding Sections 15-57,
615-183, 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 200/10-380)
19    Sec. 10-380. For the taxable years 2006 and thereafter ,
202007, 2008, and 2009, the chief county assessment officer in
21the county in which property subject to a PPV Lease is located
22shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of
23this Division 14 in assessing and determining the value of any
24PPV Lease for purposes of the property tax laws of this State.
25(Source: P.A. 94-974, eff. 6-30-06.)



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1    (35 ILCS 200/15-35)
2    Sec. 15-35. Schools. All property donated by the United
3States for school purposes, and all property of schools, not
4sold or leased or otherwise used with a view to profit, is
5exempt, whether owned by a resident or non-resident of this
6State or by a corporation incorporated in any state of the
7United States. Also exempt is:
8        (a) property, along with the leasehold interest in that
9    property, of schools which is leased to the State, a unit
10    of local government, or school district municipality to be
11    used for governmental municipal purposes on a
12    not-for-profit basis;
13        (b) property of schools on which the schools are
14    located and any other property of schools used by the
15    schools exclusively for school purposes, including, but
16    not limited to, student residence halls, dormitories and
17    other housing facilities for students and their spouses and
18    children, staff housing facilities, and school-owned and
19    operated dormitory or residence halls occupied in whole or
20    in part by students who belong to fraternities, sororities,
21    or other campus organizations;
22        (c) property donated, granted, received or used for
23    public school, college, theological seminary, university,
24    or other educational purposes, whether held in trust or
25    absolutely;



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1        (d) in counties with more than 200,000 inhabitants
2    which classify property, property (including interests in
3    land and other facilities) on or adjacent to (even if
4    separated by a public street, alley, sidewalk, parkway or
5    other public way) the grounds of a school, if that property
6    is used by an academic, research or professional society,
7    institute, association or organization which serves the
8    advancement of learning in a field or fields of study
9    taught by the school and which property is not used with a
10    view to profit;
11        (e) property owned by a school district. The exemption
12    under this subsection is not affected by any transaction in
13    which, for the purpose of obtaining financing, the school
14    district, directly or indirectly, leases or otherwise
15    transfers the property to another for which or whom
16    property is not exempt and immediately after the lease or
17    transfer enters into a leaseback or other agreement that
18    directly or indirectly gives the school district a right to
19    use, control, and possess the property. In the case of a
20    conveyance of the property, the school district must retain
21    an option to purchase the property at a future date or,
22    within the limitations period for reverters, the property
23    must revert back to the school district.
24            (1) If the property has been conveyed as described
25        in this subsection, the property is no longer exempt
26        under this Section as of the date when:



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1                (A) the right of the school district to use,
2            control, and possess the property is terminated;
3                (B) the school district no longer has an option
4            to purchase or otherwise acquire the property; and
5                (C) there is no provision for a reverter of the
6            property to the school district within the
7            limitations period for reverters.
8            (2) Pursuant to Sections 15-15 and 15-20 of this
9        Code, the school district shall notify the chief county
10        assessment officer of any transaction under this
11        subsection. The chief county assessment officer shall
12        determine initial and continuing compliance with the
13        requirements of this subsection for tax exemption.
14        Failure to notify the chief county assessment officer
15        of a transaction under this subsection or to otherwise
16        comply with the requirements of Sections 15-15 and
17        15-20 of this Code shall, in the discretion of the
18        chief county assessment officer, constitute cause to
19        terminate the exemption, notwithstanding any other
20        provision of this Code.
21            (3) No provision of this subsection shall be
22        construed to affect the obligation of the school
23        district to which an exemption certificate has been
24        issued under this Section from its obligation under
25        Section 15-10 of this Code to file an annual
26        certificate of status or to notify the chief county



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1        assessment officer of transfers of interest or other
2        changes in the status of the property as required by
3        this Code.
4            (4) The changes made by this amendatory Act of the
5        91st General Assembly are declarative of existing law
6        and shall not be construed as a new enactment; and
7        (f) in counties with more than 200,000 inhabitants
8    which classify property, property of a corporation, which
9    is an exempt entity under paragraph (3) of Section 501(c)
10    of the Internal Revenue Code or its successor law, used by
11    the corporation for the following purposes: (1) conducting
12    continuing education for professional development of
13    personnel in energy-related industries; (2) maintaining a
14    library of energy technology information available to
15    students and the public free of charge; and (3) conducting
16    research in energy and environment, which research results
17    could be ultimately accessible to persons involved in
18    education.
19(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
2092-16, eff. 6-28-01.)
21    (35 ILCS 200/15-57 new)
22    Sec. 15-57. Government property leased to another
23government entity. If property is owned by the State, a unit of
24local government, or a school district and that property is
25leased to the State, a unit of local government, or a school



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1district, then the property is exempt from taxation under this
2Code and the leasehold interest is exempt from taxation under
3this Code or under any other law. The provisions of this
4Section apply notwithstanding any other provision of law.
5    (35 ILCS 200/15-183 new)
6    Sec. 15-183. Erroneous homestead exemptions. This Section
7applies in any county that elects to be subject to its
8provisions on or after the effective date of this amendatory
9Act of the 97th General Assembly. Beginning in the first
10assessment year after the county elects to be subject to the
11provisions of this Section, if, upon determination by the chief
12county assessment officer supported by clear and convincing
13evidence, any property that was not eligible to receive a
14homestead exemption was erroneously granted a homestead
15exemption or exemptions in any year or years not to exceed the
16current assessment year and 4 years prior to the current
17assessment year, due to negligence or fraud on the part of the
18property owner, then the arrearages of taxes that might have
19been assessed, plus a penalty as provided in this Section,
20shall be charged against the property by the county clerk. If
21the chief county assessment officer determines that the
22exemption was granted due to negligence of the property owner,
23but without intent to defraud, then the arrearages of taxes
24that might have been assessed may be charged against the
25property, but no penalty shall be assessed against the unpaid



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1amount. If the chief county assessment officer determines that
2the property owner acted with intent to defraud, then the
3arrearages of taxes that might have been assessed, plus a
4penalty of 25% of the total amount of unpaid taxes for each
5year, shall be charged against the property. If the erroneous
6homestead exemption was granted as a result of a mistake,
7error, or omission on the part of the chief county assessment
8officer, and not as a result of negligence or fraud of the
9property owner, then the property owner shall not be liable for
10the unpaid taxes or penalties under this Section. For the
11purposes of this Section, negligence includes any failure to
12make a reasonable attempt to comply with the provisions of this
13Code and includes careless, reckless, or intentional disregard
14of the law or regulations.
15    If the chief county assessment officer makes a
16determination that property was erroneously granted a
17homestead exemption or exemptions under the preceding
18paragraph, then the chief county assessment officer shall cause
19to be served upon the property owner a notice of intent to
20record a tax lien against the property with respect to which
21the erroneous homestead exemption was granted. The notice shall
22identify the property against which the lien is being sought,
23and shall inform the property owner that he or she may contest
24the determination of the chief county assessment officer before
25a neutral hearing officer. Such a lien may be lawfully filed by
26the chief county assessment officer with the county recorder of



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1deeds, but not until a final decision has been made that the
2property was not entitled to the homestead exemption. The board
3of review in counties that elect to be subject to the
4provisions of this Section and have less than 3,000,000
5inhabitants, or the county assessor in counties that elect to
6be subject to the provisions of this Section and have 3,000,000
7or more inhabitants, must develop reasonable procedures for
8contesting the determination made under this Section that
9afford the property owner due process of law. Those procedures
10must allow the property owner to contest the determination
11before a neutral hearing officer appointed by the chief county
12assessment officer. The property owner may appeal the decision
13of the hearing officer to the circuit court of the county in
14which the property is located.
15    Of the amounts collected under this Section, the unpaid
16taxes shall be remitted to the county collector and distributed
17to the affected taxing districts, and the penalties shall be
18used by the chief county assessment officer for the cost of
19administering this Section.
20    Notwithstanding any other provision of law, if a property
21owner with a principal residence in a State other than Illinois
22was erroneously granted a homestead exemption for property
23located in Illinois during assessment year 2007, 2008, 2009, or
242010, then that property owner may voluntarily remit the amount
25of unpaid taxes and interest within 2 years after the effective
26date of this amendatory Act of the 97th General Assembly. If



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1the property owner voluntarily remits those amounts within 2
2years after the effective date of this amendatory Act of the
397th General Assembly, then the penalties authorized by this
4Section for the applicable assessment year shall not be
5chargeable to the owner.
6    For the purposes of this Section, "homestead exemption"
7means an exemption under Section 15-165 (disabled veterans),
815-167 (returning veterans), 15-169 (disabled veterans
9standard homestead), 15-170 (senior citizens), 15-172 (senior
10citizens assessment freeze), 15-175 (general homestead),
1115-176 (alternative general homestead), or 15-177 (long-time
13    (35 ILCS 200/16-181 new)
14    Sec. 16-181. Stipulation to revised assessment. The board
15of review whose decision is being appealed may, at its
16discretion, enter into discussions with a taxpayer aimed at
17achieving a stipulated revised assessment upon the property,
18either prior to or after receipt of the taxpayer's petition
19from the Property Tax Appeal Board. If such discussions
20commence prior to the board of review's receipt of the
21taxpayer's petition from the Property Tax Appeal Board, the
22taxpayer shall provide the board of review with such evidence
23of the taxpayer's timely filing of its appeal before the
24Property Tax Appeal Board as the board of review may request,
25including but not limited to a copy of the taxpayer's petition



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1as filed with the Property Tax Appeal Board. If, after
2discussions have been entered into, the taxpayer and the board
3of review propose to stipulate to a revised assessment of the
4property, and if the original complaint requested a reduction
5in assessed value of more than $100,000, then the board of
6review shall first serve a copy of the proposed stipulation or
7assessment agreement on all taxing districts as shown on the
8last available property tax bill, along with a copy of the
9taxpayer's petition as provided to the board of review and all
10other evidence used to reach the settlement. The taxing
11districts so served shall have a period of 45 days after the
12postmark date of the notice from the board of review to file a
13written objection to the proposal with the board of review.
14Failure of a taxing district to object to the proposed
15assessment within the 45-day objection period shall be
16considered acceptance of the proposed assessment. Upon the
17later of (i) the expiration of the 45-day objection period or
18(ii) written resolution of any timely filed written objection
19received from a taxing district, the board of review shall
20provide the proposed stipulation or assessment agreement to the
21Property Tax Appeal Board along with a certificate of service
22affirming that all taxing districts have been notified of the
23proposed stipulation or assessment agreement, and that no
24timely written objections to the stipulation or assessment
25agreement have been received or that any such objections have
26been fully resolved. The certificate of service shall be signed



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1by a member of the board of review or the clerk of the board of
2review. Within 120 days after the Property Tax Appeal Board's
3receipt of the stipulation or assessment agreement and
4certificate of service, the Property Tax Appeal Board shall
5issue a decision in accordance with the stipulation or
6assessment agreement, unless it finds that the Property Tax
7Appeal Board lacks jurisdiction over the appeal or that the
8stipulation or assessment agreement is against the manifest
9weight of the evidence.
10    If the board of review provides notice to the affected
11taxing districts of the proposed stipulation or assessment
12agreement, and a taxing district (i) does not respond to the
13notice, (ii) accepts the proposed assessment, or (iii) reaches
14a written resolution with the board of review and the taxpayer,
15then the board of review is not required to otherwise send
16notice as required by Section 16-180 of the Property Tax Code
17to that taxing district, and that taxing district is precluded
18from intervening or otherwise participating in the appeal
19pending before the Property Tax Appeal Board challenging the
20assessment. If a taxing district files a written objection to
21the proposal to the board of review which is not followed by a
22written resolution, then the appeal shall proceed as provided
23by law, the board of review must notify that taxing district as
24required by Section 16-180, and any proposed stipulation or
25assessment agreement shall not be considered or introduced as
26evidence in any proceeding before the Property Tax Appeal



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2    Section 10. The Title Insurance Act is amended by adding
3Section 22.5 as follows:
4    (215 ILCS 155/22.5 new)
5    Sec. 22.5. Notice to chief county assessment officer. Upon
6issuing a policy, each title insurance company doing business
7in the State must inform the chief county assessment officer of
8the county in which the property is located of the sale or
9transfer of the property.
10    Section 90. The State Mandates Act is amended by adding
11Section 8.35 as follows:
12    (30 ILCS 805/8.35 new)
13    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
17    Section 95. Applicability. The changes made by this
18amendatory Act of the 97th General Assembly to the Property Tax
19Code by changing Sections 9-195 and 15-35 and by adding Section
2015-57 and to the State Mandates Act by adding Section 8.35
21apply to taxable years 2010 and thereafter. In addition, those



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1changes and additions also apply to taxable years prior to
22010, but no such taxes paid for any taxable year prior to 2010
3need be refunded.
4    Section 97. Severability. The provisions of this Act are
5severable under Section 1.31 of the Statute on Statutes.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".