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


Rep. Maria Antonia Berrios

Filed: 5/13/2011





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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, 9-265, 10-380, and 15-35 and by adding Sections
615-57 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 200/9-265)
19    Sec. 9-265. Omitted property; interest; change in exempt
20use or ownership. If any property is omitted in the assessment
21of any year or years, not to exceed the current assessment year
22and 3 prior years, so that the taxes, for which the property
23was liable, have not been paid, or if by reason of defective
24description or assessment, taxes on any property for any year
25or years have not been paid, or if any taxes are refunded under



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1subsection (b) of Section 14-5 because the taxes were assessed
2in the wrong person's name, the property, when discovered,
3shall be listed and assessed by the board of review or, in
4counties with 3,000,000 or more inhabitants, by the county
5assessor either on his or her own initiative or when so
6directed by the board of appeals or board of review. The board
7of review in counties with less than 3,000,000 inhabitants or
8the county assessor in counties with 3,000,000 or more
9inhabitants may develop reasonable procedures for contesting
10the listing of omitted property under this Division. For
11purposes of this Section, "defective description or
12assessment" includes a description or assessment which omits
13all the improvements thereon as a result of which part of the
14taxes on the total value of the property as improved remain
15unpaid. In the case of property subject to assessment by the
16Department, the property shall be listed and assessed by the
17Department. All such property shall be placed on the assessment
18and tax books. The arrearages of taxes which might have been
19assessed, with 10% interest thereon for each year or portion
20thereof from 2 years after the time the first correct tax bill
21ought to have been received, shall be charged against the
22property by the county clerk.
23    When property or acreage omitted by either incorrect survey
24or other ministerial assessor error is discovered and the owner
25has paid its tax bills as received for the year or years of
26omission of the parcel, then the interest authorized by this



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1Section shall not be chargeable to the owner. However, nothing
2in this Section shall prevent the collection of the principal
3amount of back taxes due and owing.
4    If any property listed as exempt by the chief county
5assessment officer has a change in use, a change in leasehold
6estate, or a change in titleholder of record by purchase,
7grant, taking or transfer, it shall be the obligation of the
8transferee to notify the chief county assessment officer in
9writing within 90 days of the change. If mailed, the notice
10shall be sent by certified mail, return receipt requested, and
11shall include the name and address of the taxpayer, the legal
12description of the property, and the property index number of
13the property when an index number exists. If notice is provided
14in person, it shall be provided on a form prescribed by the
15chief county assessment officer, and the chief county
16assessment officer shall provide a date stamped copy of the
17notice. Except as provided in item (6) of subsection (a) of
18Section 9-260, item (6) of Section 16-135, and item (6) of
19Section 16-140 of this Code, if the failure to give the
20notification results in the assessing official continuing to
21list the property as exempt in subsequent years, the property
22shall be considered omitted property for purposes of this Code.
23    If, upon determination by the chief county assessment
24officer, any property that was not eligible to receive a
25homestead exemption under Article 15 of this Code was
26erroneously granted a homestead exemption in any year or years



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1not to exceed the current assessment year and 10 prior years,
2then the chief county assessment officer shall cause to be
3served upon the property owner a notice of intent to record a
4tax lien against the property with respect to which the
5erroneous homestead exemption was granted. The notice shall
6identify the property against which the lien is being sought.
7Such a lien may not be filed sooner than 30 days after the
8property owner receives notice. In addition, the arrearages of
9taxes that might have been assessed, plus a penalty of 50% of
10the total amount of unpaid taxes for each year and 15% interest
11per annum, shall be charged against the property by the county
12clerk. If the erroneous homestead exemption was granted as a
13result of a clerical error or omission on the part of the chief
14county assessment officer, and if the owner has paid its tax
15bills as received for the year or years in which the error
16occurred, then the interest and penalties authorized by this
17Section shall not be chargeable to the owner. However, nothing
18in this Section shall prevent the collection of the principal
19amount of back taxes due and owing.
20(Source: P.A. 96-1553, eff. 3-10-11.)
21    (35 ILCS 200/10-380)
22    Sec. 10-380. For the taxable years 2006 and thereafter ,
232007, 2008, and 2009, the chief county assessment officer in
24the county in which property subject to a PPV Lease is located
25shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of



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1this Division 14 in assessing and determining the value of any
2PPV Lease for purposes of the property tax laws of this State.
3(Source: P.A. 94-974, eff. 6-30-06.)
4    (35 ILCS 200/15-35)
5    Sec. 15-35. Schools. All property donated by the United
6States for school purposes, and all property of schools, not
7sold or leased or otherwise used with a view to profit, is
8exempt, whether owned by a resident or non-resident of this
9State or by a corporation incorporated in any state of the
10United States. Also exempt is:
11        (a) property, along with the leasehold interest in that
12    property, of schools which is leased to the State, a unit
13    of local government, or school district municipality to be
14    used for governmental municipal purposes on a
15    not-for-profit basis;
16        (b) property of schools on which the schools are
17    located and any other property of schools used by the
18    schools exclusively for school purposes, including, but
19    not limited to, student residence halls, dormitories and
20    other housing facilities for students and their spouses and
21    children, staff housing facilities, and school-owned and
22    operated dormitory or residence halls occupied in whole or
23    in part by students who belong to fraternities, sororities,
24    or other campus organizations;
25        (c) property donated, granted, received or used for



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1    public school, college, theological seminary, university,
2    or other educational purposes, whether held in trust or
3    absolutely;
4        (d) in counties with more than 200,000 inhabitants
5    which classify property, property (including interests in
6    land and other facilities) on or adjacent to (even if
7    separated by a public street, alley, sidewalk, parkway or
8    other public way) the grounds of a school, if that property
9    is used by an academic, research or professional society,
10    institute, association or organization which serves the
11    advancement of learning in a field or fields of study
12    taught by the school and which property is not used with a
13    view to profit;
14        (e) property owned by a school district. The exemption
15    under this subsection is not affected by any transaction in
16    which, for the purpose of obtaining financing, the school
17    district, directly or indirectly, leases or otherwise
18    transfers the property to another for which or whom
19    property is not exempt and immediately after the lease or
20    transfer enters into a leaseback or other agreement that
21    directly or indirectly gives the school district a right to
22    use, control, and possess the property. In the case of a
23    conveyance of the property, the school district must retain
24    an option to purchase the property at a future date or,
25    within the limitations period for reverters, the property
26    must revert back to the school district.



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



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1        issued under this Section from its obligation under
2        Section 15-10 of this Code to file an annual
3        certificate of status or to notify the chief county
4        assessment officer of transfers of interest or other
5        changes in the status of the property as required by
6        this Code.
7            (4) The changes made by this amendatory Act of the
8        91st General Assembly are declarative of existing law
9        and shall not be construed as a new enactment; and
10        (f) in counties with more than 200,000 inhabitants
11    which classify property, property of a corporation, which
12    is an exempt entity under paragraph (3) of Section 501(c)
13    of the Internal Revenue Code or its successor law, used by
14    the corporation for the following purposes: (1) conducting
15    continuing education for professional development of
16    personnel in energy-related industries; (2) maintaining a
17    library of energy technology information available to
18    students and the public free of charge; and (3) conducting
19    research in energy and environment, which research results
20    could be ultimately accessible to persons involved in
21    education.
22(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
2392-16, eff. 6-28-01.)
24    (35 ILCS 200/15-57 new)
25    Sec. 15-57. Government property leased to another



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1government entity. If property is owned by the State, a unit of
2local government, or a school district and that property is
3leased to the State, a unit of local government, or a school
4district, then the property is exempt from taxation under this
5Code and the leasehold interest is exempt from taxation under
6this Code or under any other law. The provisions of this
7Section apply notwithstanding any other provision of law.
8    (35 ILCS 200/16-181 new)
9    Sec. 16-181. Stipulation to revised assessment. The board
10of review whose decision is being appealed may, at its
11discretion, enter into discussions with a taxpayer aimed at
12achieving a stipulated revised assessment upon the property,
13either prior to or after receipt of the taxpayer's petition
14from the Property Tax Appeal Board. If such discussions
15commence prior to the board of review's receipt of the
16taxpayer's petition from the Property Tax Appeal Board, the
17taxpayer shall provide the board of review with such evidence
18of the taxpayer's timely filing of its appeal before the
19Property Tax Appeal Board as the board of review may request,
20including but not limited to a copy of the taxpayer's petition
21as filed with the Property Tax Appeal Board. If, after
22discussions have been entered into, the taxpayer and the board
23of review propose to stipulate to a revised assessment of the
24property, and if the original complaint requested a reduction
25in assessed value of more than $100,000, then the board of



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1review shall first serve a copy of the proposed stipulation or
2assessment agreement on all taxing districts as shown on the
3last available property tax bill, along with a copy of the
4taxpayer's petition as provided to the board of review and all
5other evidence used to reach the settlement. The taxing
6districts so served shall have a period of 45 days after the
7postmark date of the notice from the board of review to file a
8written objection to the proposal, stating the reasons for the
9objection, with the board of review. Failure of a taxing
10district to object to the proposed assessment within the 45-day
11objection period shall be considered acceptance of the proposed
12assessment. Upon the later of (i) the expiration of the 45-day
13objection period or (ii) written resolution of any timely filed
14written objection received from a taxing district, the board of
15review shall provide the proposed stipulation or assessment
16agreement to the Property Tax Appeal Board along with a
17certificate of service affirming that all taxing districts have
18been notified of the proposed stipulation or assessment
19agreement, and that no timely written objections to the
20stipulation or assessment agreement have been received or that
21any such objections have been fully resolved. The certificate
22of service shall be signed by a member of the board of review
23or the clerk of the board of review. Within 120 days after the
24Property Tax Appeal Board's receipt of the stipulation or
25assessment agreement and certificate of service, the Property
26Tax Appeal Board shall issue a decision in accordance with the



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1stipulation or assessment agreement, unless it finds that the
2Property Tax Appeal Board lacks jurisdiction over the appeal or
3that the stipulation or assessment agreement is against the
4manifest weight of the evidence.
5    If the board of review provides notice to the affected
6taxing districts of the proposed stipulation or assessment
7agreement, and a taxing district (i) does not respond to the
8notice, (ii) accepts the proposed assessment, or (iii) reaches
9a written resolution with the board of review and the taxpayer,
10then the board of review is not required to otherwise send
11notice as required by Section 16-180 of the Property Tax Code
12to that taxing district, and that taxing district is precluded
13from intervening or otherwise participating in the appeal
14pending before the Property Tax Appeal Board challenging the
15assessment. If a taxing district files a written objection to
16the proposal to the board of review which is not followed by a
17written resolution, then the appeal shall proceed as provided
18by law, the board of review must notify that taxing district as
19required by Section 16-180, and any proposed stipulation or
20assessment agreement shall not be considered or introduced as
21evidence in any proceeding before the Property Tax Appeal
23    Section 90. The State Mandates Act is amended by adding
24Section 8.35 as follows:



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1    (30 ILCS 805/8.35 new)
2    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 97th General Assembly.
6    Section 95. Applicability. The changes made by this
7amendatory Act of the 97th General Assembly to the Property Tax
8Code by changing Sections 9-195 and 15-35 and by adding Section
915-57 and to the State Mandates Act by adding Section 8.35
10apply to taxable years 2010 and thereafter. In addition, those
11changes and additions also apply to taxable years prior to
122010, but no such taxes paid for any taxable year prior to 2010
13need be refunded.
14    Section 97. Severability. The provisions of this Act are
15severable under Section 1.31 of the Statute on Statutes.
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".