Full Text of SB0395 97th General Assembly
SB0395ham002 97TH GENERAL ASSEMBLY | Rep. Maria Antonia Berrios Filed: 5/13/2011
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| 1 | | AMENDMENT TO SENATE BILL 395
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 395 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Sections 9-195, 9-265, 10-380, and 15-35 and by adding Sections | 6 | | 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, | 10 | | 15-60, 15-100,
15-103, and 15-185,
when property which is | 11 | | exempt from taxation is leased to another whose property
is not | 12 | | exempt, and the leasing of which does not make the property | 13 | | taxable,
the leasehold estate and the appurtenances shall be | 14 | | listed as the property of
the lessee thereof, or his or her | 15 | | assignee. Taxes on that property shall be
collected in the same | 16 | | manner as on property that is not exempt, and the lessee
shall |
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| 1 | | be liable for those taxes. However, no tax lien shall attach to | 2 | | the
exempt real estate. The changes made by this amendatory Act | 3 | | of 1997 and by this
amendatory Act of the 91st General Assembly | 4 | | are declaratory of existing law
and shall not be construed as a | 5 | | new enactment. The changes made by Public Acts
88-221 and | 6 | | 88-420 that are incorporated into this Section by this | 7 | | amendatory
Act of 1993 are declarative of existing law and are | 8 | | not a new enactment.
| 9 | | (b) The provisions of this Section regarding taxation of | 10 | | leasehold interests
in exempt property do not apply to any | 11 | | leasehold interest created pursuant to
any transaction | 12 | | described in subsection (e) of Section 15-35, item (a) of | 13 | | Section 15-35, Section 15-57, subsection (c-5)
of Section | 14 | | 15-60, subsection (b) of Section 15-100, Section 15-103, or
| 15 | | Section 15-185.
| 16 | | (Source: P.A. 92-844, eff. 8-23-02; 92-846, eff.
8-23-02; | 17 | | 93-19, eff. 6-20-03.)
| 18 | | (35 ILCS 200/9-265)
| 19 | | Sec. 9-265. Omitted property; interest; change in exempt | 20 | | use or ownership.
If any property is omitted in the assessment | 21 | | of any year or years, not to exceed the current assessment year | 22 | | and 3 prior years, so that the
taxes, for which the property | 23 | | was liable, have not been paid, or if by reason
of defective | 24 | | description or assessment, taxes on any property for any year | 25 | | or
years have not been paid, or if any taxes are refunded under |
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| 1 | | subsection (b) of
Section 14-5 because the taxes were assessed | 2 | | in the wrong person's name, the
property, when discovered, | 3 | | shall be listed and assessed by the board of review
or, in | 4 | | counties with 3,000,000 or more inhabitants, by the county | 5 | | assessor
either on his
or her own initiative or when so | 6 | | directed by the board of appeals or board of
review. The
board | 7 | | of review in counties with less than 3,000,000 inhabitants or | 8 | | the
county assessor in counties with 3,000,000 or more | 9 | | inhabitants may
develop reasonable procedures for contesting | 10 | | the listing of omitted
property under this Division. For | 11 | | purposes
of this Section, "defective description or | 12 | | assessment" includes a description
or assessment which omits | 13 | | all the improvements thereon as a result of which
part of the | 14 | | taxes on the total value of the property as improved remain | 15 | | unpaid.
In the case of property subject to assessment by the | 16 | | Department, the property
shall be listed and assessed by the | 17 | | Department. All such property shall be
placed on the assessment | 18 | | and tax books. The arrearages of taxes which might
have been | 19 | | assessed, with 10% interest thereon for each year or portion | 20 | | thereof
from 2 years after the time the first correct tax bill | 21 | | ought to have been
received, shall be charged against the | 22 | | property by the county clerk.
| 23 | | When property or acreage omitted by either incorrect survey | 24 | | or other
ministerial assessor error is discovered and the owner | 25 | | has paid its tax
bills as received for the year or years of | 26 | | omission of the parcel, then the
interest authorized by this |
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| 1 | | Section shall not be chargeable to the owner.
However, nothing | 2 | | in this Section shall prevent the collection of the principal
| 3 | | amount of back taxes due and owing.
| 4 | | If any property listed as exempt by the chief county | 5 | | assessment officer
has a change in use, a change in leasehold | 6 | | estate, or a change in titleholder
of record by purchase, | 7 | | grant, taking or transfer, it shall be the obligation
of the | 8 | | transferee to notify the chief county assessment officer in | 9 | | writing
within 90 days of the change. If mailed, the notice | 10 | | shall be sent by certified mail,
return receipt requested, and | 11 | | shall include the name and address of the
taxpayer, the legal | 12 | | description of the property, and the property index number
of | 13 | | the property when an index number exists. If notice is provided | 14 | | in person, it shall be provided on a form prescribed
by the | 15 | | chief county assessment officer, and the chief county | 16 | | assessment
officer shall provide a date stamped copy of the | 17 | | notice. Except as
provided in item (6) of subsection (a) of | 18 | | Section 9-260, item (6) of
Section 16-135, and item (6) of | 19 | | Section 16-140 of this Code, if the failure to give the
| 20 | | notification results in the assessing official continuing to | 21 | | list the property
as exempt in subsequent years, the property | 22 | | shall be considered omitted
property for purposes of this Code.
| 23 | | If, upon determination by the chief county assessment | 24 | | officer, any property that was not eligible to receive a | 25 | | homestead exemption under Article 15 of this Code was | 26 | | erroneously granted a homestead exemption in any year or years |
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| 1 | | not to exceed the current assessment year and 10 prior years, | 2 | | then the chief county assessment officer shall cause to be | 3 | | served upon the property owner a notice of intent to record a | 4 | | tax lien against the property with respect to which the | 5 | | erroneous homestead exemption was granted. The notice shall | 6 | | identify the property against which the lien is being sought. | 7 | | Such a lien may not be filed sooner than 30 days after the | 8 | | property owner receives notice. In addition, the arrearages of | 9 | | taxes that might
have been assessed, plus a penalty of 50% of | 10 | | the total amount of unpaid taxes for each year and 15% interest | 11 | | per annum, shall be charged against the property by the county | 12 | | clerk. If the erroneous homestead exemption was granted as a | 13 | | result of a clerical error or omission on the part of the chief | 14 | | county assessment officer, and if the owner has paid its tax
| 15 | | bills as received for the year or years in which the error | 16 | | occurred, then the
interest and penalties authorized by this | 17 | | Section shall not be chargeable to the owner.
However, nothing | 18 | | in this Section shall prevent the collection of the principal
| 19 | | amount 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 , | 23 | | 2007, 2008, and 2009 , the chief county assessment officer in | 24 | | the county in which property subject to a PPV Lease is located | 25 | | shall apply the provisions of 10-370(b)(i) and 10-375(c)(i) of |
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| 1 | | this Division 14 in assessing and determining the value of any | 2 | | PPV 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 | 6 | | States for school
purposes, and all property of schools, not | 7 | | sold or leased or otherwise used
with a view to profit, is | 8 | | exempt, whether owned by a resident or non-resident
of this | 9 | | State or by a corporation incorporated in any state of the | 10 | | United
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; | 23 | | 92-16, eff. 6-28-01.)
| 24 | | (35 ILCS 200/15-57 new) | 25 | | Sec. 15-57. Government property leased to another |
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| 1 | | government entity. If property is owned by the State, a unit of | 2 | | local government, or a school district and that property is | 3 | | leased to the State, a unit of local government, or a school | 4 | | district, then the property is exempt from taxation under this | 5 | | Code and the leasehold interest is exempt from taxation under | 6 | | this Code or under any other law. The provisions of this | 7 | | Section apply notwithstanding any other provision of law. | 8 | | (35 ILCS 200/16-181 new) | 9 | | Sec. 16-181. Stipulation to revised assessment. The board | 10 | | of review whose decision is being appealed may, at its | 11 | | discretion, enter into discussions with a taxpayer aimed at | 12 | | achieving a stipulated revised assessment upon the property, | 13 | | either prior to or after receipt of the taxpayer's petition | 14 | | from the Property Tax Appeal Board. If such discussions | 15 | | commence prior to the board of review's receipt of the | 16 | | taxpayer's petition from the Property Tax Appeal Board, the | 17 | | taxpayer shall provide the board of review with such evidence | 18 | | of the taxpayer's timely filing of its appeal before the | 19 | | Property Tax Appeal Board as the board of review may request, | 20 | | including but not limited to a copy of the taxpayer's petition | 21 | | as filed with the Property Tax Appeal Board. If, after | 22 | | discussions have been entered into, the taxpayer and the board | 23 | | of review propose to stipulate to a revised assessment of the | 24 | | property, and if the original complaint requested a reduction | 25 | | in assessed value of more than $100,000, then the board of |
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| 1 | | review shall first serve a copy of the proposed stipulation or | 2 | | assessment agreement on all taxing districts as shown on the | 3 | | last available property tax bill, along with a copy of the | 4 | | taxpayer's petition as provided to the board of review and all | 5 | | other evidence used to reach the settlement. The taxing | 6 | | districts so served shall have a period of 45 days after the | 7 | | postmark date of the notice from the board of review to file a | 8 | | written objection to the proposal, stating the reasons for the | 9 | | objection, with the board of review. Failure of a taxing | 10 | | district to object to the proposed assessment within the 45-day | 11 | | objection period shall be considered acceptance of the proposed | 12 | | assessment. Upon the later of (i) the expiration of the 45-day | 13 | | objection period or (ii) written resolution of any timely filed | 14 | | written objection received from a taxing district, the board of | 15 | | review shall provide the proposed stipulation or assessment | 16 | | agreement to the Property Tax Appeal Board along with a | 17 | | certificate of service affirming that all taxing districts have | 18 | | been notified of the proposed stipulation or assessment | 19 | | agreement, and that no timely written objections to the | 20 | | stipulation or assessment agreement have been received or that | 21 | | any such objections have been fully resolved. The certificate | 22 | | of service shall be signed by a member of the board of review | 23 | | or the clerk of the board of review. Within 120 days after the | 24 | | Property Tax Appeal Board's receipt of the stipulation or | 25 | | assessment agreement and certificate of service, the Property | 26 | | Tax Appeal Board shall issue a decision in accordance with the |
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| 1 | | stipulation or assessment agreement, unless it finds that the | 2 | | Property Tax Appeal Board lacks jurisdiction over the appeal or | 3 | | that the stipulation or assessment agreement is against the | 4 | | manifest weight of the evidence. | 5 | | If the board of review provides notice to the affected | 6 | | taxing districts of the proposed stipulation or assessment | 7 | | agreement, and a taxing district (i) does not respond to the | 8 | | notice, (ii) accepts the proposed assessment, or (iii) reaches | 9 | | a written resolution with the board of review and the taxpayer, | 10 | | then the board of review is not required to otherwise send | 11 | | notice as required by Section 16-180 of the Property Tax Code | 12 | | to that taxing district, and that taxing district is precluded | 13 | | from intervening or otherwise participating in the appeal | 14 | | pending before the Property Tax Appeal Board challenging the | 15 | | assessment. If a taxing district files a written objection to | 16 | | the proposal to the board of review which is not followed by a | 17 | | written resolution, then the appeal shall proceed as provided | 18 | | by law, the board of review must notify that taxing district as | 19 | | required by Section 16-180, and any proposed stipulation or | 20 | | assessment agreement shall not be considered or introduced as | 21 | | evidence in any proceeding before the Property Tax Appeal | 22 | | Board.
| 23 | | Section 90. The State Mandates Act is amended by adding | 24 | | Section 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 | 3 | | of this Act, no reimbursement by the State is required for the | 4 | | implementation of any mandate created by this amendatory Act of | 5 | | the 97th General Assembly. | 6 | | Section 95. Applicability. The changes made by this | 7 | | amendatory Act of the 97th General Assembly to the Property Tax | 8 | | Code by changing Sections 9-195 and 15-35 and by adding Section | 9 | | 15-57 and to the State Mandates Act by adding Section 8.35 | 10 | | apply to taxable years 2010 and thereafter. In addition, those | 11 | | changes and additions also apply to taxable years prior to | 12 | | 2010, but no such taxes paid for any taxable year prior to 2010 | 13 | | need be refunded. | 14 | | Section 97. Severability. The provisions of this Act are | 15 | | severable under Section 1.31 of the Statute on Statutes. | 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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