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Public Act 92-0826
SB2210 Enrolled LRB9212102SMdv
AN ACT regarding taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing
Section 2505-275 as follows:
(20 ILCS 2505/2505-275) (was 20 ILCS 2505/39e)
Sec. 2505-275. Tax overpayments. In the case of
overpayment of any tax liability arising from an Act
administered by the Department, the Department may credit the
amount of the overpayment and any interest thereon against
any final tax liability arising under that or any other Act
administered by the Department. The Department may enter into
agreements with the Secretary of the Treasury of the United
States (or his or her delegate) to offset all or part of an
overpayment of such a tax liability against any liability
arising from a tax imposed under Title 26 of the United
States Code. The Department may collect a fee from the
Secretary of the Treasury of the United States (or his or her
delegate) to cover the full cost of offsets taken, to the
extent allowed by federal law, or, if not allowed by federal
law, from the taxpayer by offset of the overpayment.
(Source: P.A. 91-239, eff. 1-1-00; 92-492, eff. 1-1-02.)
Section 10. The Illinois Income Tax Act is amended by
changing Sections 601, 911.2, 1102, 1103, and 1105 and by
adding Section 911.3 as follows:
(35 ILCS 5/601) (from Ch. 120, par. 6-601)
Sec. 601. Payment on Due Date of Return.
(a) In general. Every taxpayer required to file a return
under this Act shall, without assessment, notice or demand,
pay any tax due thereon to the Department, at the place fixed
for filing, on or before the date fixed for filing such
return (determined without regard to any extension of time
for filing the return) pursuant to regulations prescribed by
the Department. If, however, the due date for payment of a
taxpayer's federal income tax liability for a tax year (as
provided in the Internal Revenue Code or by Treasury
regulation, or as extended by the Internal Revenue Service)
is later than the date fixed for filing the taxpayer's
Illinois income tax return for that tax year, the Department
may, by rule, prescribe a due date for payment that is not
later than the due date for payment of the taxpayer's federal
income tax liability. For purposes of the Illinois
Administrative Procedure Act, the adoption of rules to
prescribe a later due date for payment shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(b) Amount payable. In making payment as provided in
this section there shall remain payable only the balance of
such tax remaining due after giving effect to the following:
(1) Withheld tax. Any amount withheld during any
calendar year pursuant to Article 7 from compensation paid to
a taxpayer shall be deemed to have been paid on account of
any tax imposed by subsections 201(a) and (b) of this Act on
such taxpayer for his taxable year beginning in such calendar
year. If more than one taxable year begins in a calendar
year, such amount shall be deemed to have been paid on
account of such tax for the last taxable year so beginning.
(2) Estimated and tentative tax payments. Any amount of
estimated tax paid by a taxpayer pursuant to Article 8 for a
taxable year shall be deemed to have been paid on account of
the tax imposed by this Act for such taxable year.
(3) Foreign tax. The aggregate amount of tax which is
imposed upon or measured by income and which is paid by a
resident for a taxable year to another state or states on
income which is also subject to the tax imposed by
subsections 201(a) and (b) of this Act shall be credited
against the tax imposed by subsections 201(a) and (b)
otherwise due under this Act for such taxable year. The
aggregate credit provided under this paragraph shall not
exceed that amount which bears the same ratio to the tax
imposed by subsections 201(a) and (b) otherwise due under
this Act as the amount of the taxpayer's base income subject
to tax both by such other state or states and by this State
bears to his total base income subject to tax by this State
for the taxable year. For purposes of this subsection, no
compensation received by a resident which qualifies as
compensation paid in this State as determined under Section
304(a)(2)(B) shall be considered income subject to tax by
another state or states. The credit provided by this
paragraph shall not be allowed if any creditable tax was
deducted in determining base income for the taxable year. Any
person claiming such credit shall attach a statement in
support thereof and shall notify the Director of any refund
or reductions in the amount of tax claimed as a credit
hereunder all in such manner and at such time as the
Department shall by regulations prescribe.
(4) Accumulation and capital gain distributions. If the
net income of a taxpayer includes amounts included in his
base income by reason of Section 668 or 669 of the Internal
Revenue Code (relating to accumulation and capital gain
distributions by a trust, respectively), the tax imposed on
such taxpayer by this Act shall be credited with his pro rata
portion of the taxes imposed by this Act on such trust for
preceding taxable years which would not have been payable for
such preceding years if the trust had in fact made
distributions to its beneficiaries at the times and in the
amounts specified in Sections 666 and 669 of the Internal
Revenue Code. The credit provided by this paragraph shall not
reduce the tax otherwise due from the taxpayer to an amount
less than that which would be due if the amounts included by
reason of Sections 668 and 669 of the Internal Revenue Code
were excluded from his base income.
(c) Cross reference. For application against tax due of
overpayments of tax for a prior year, see Section 909.
(Source: P.A. 85-731.)
(35 ILCS 5/911.2)
Sec. 911.2. Refunds withheld; tax claims of other
states.
(a) Definitions. In this Section the following terms
have the meanings indicated.
"Claimant state" means any state or the District of
Columbia that requests the withholding of a refund pursuant
to this Section and that extends a like comity for the
collection of taxes owed to this State.
"Income tax" means any amount of income tax imposed on
taxpayers under the laws of the State of Illinois or the
claimant state, including additions to tax for penalties and
interest.
"Refund" means a refund of overpaid income taxes imposed
by the State of Illinois or the claimant state.
"Tax officer" means a unit or official of the claimant
state, or the duly authorized agent of that unit or official,
charged with the imposition, assessment, or collection of
state income taxes.
"Taxpayer" means any individual person identified by a
claimant state under this Section as owing taxes to that
claimant state, and in the case of a refund arising from the
filing of a joint return, the taxpayer's spouse.
(b) In general. Except as provided in subsection (c) of
this Section, a tax officer may:
(1) certify to the Director the existence of a
taxpayer's delinquent income tax liability; and
(2) request the Director to withhold any refund to
which the taxpayer is entitled.
(c) Comity. A tax officer may not certify or request
the Director to withhold a refund unless the laws of the
claimant state:
(1) allow the Director to certify an income tax
liability;
(2) allow the Director to request the tax officer
to withhold the taxpayer's tax refund; and
(3) provide for the payment of the refund to the
State of Illinois.
(d) Certification. A certification by a tax officer to
the Director shall include:
(1) the full name and address of the taxpayer and
any other names known to be used by the taxpayer;
(2) the social security number or federal tax
identification number of the taxpayer;
(3) the amount of the income tax liability; and
(4) a statement that all administrative and
judicial remedies and appeals have been exhausted or have
lapsed and that the assessment of tax, interest, and
penalty has become final.
(e) Notification. As to any taxpayer due a refund, the
Director shall:
(1) notify the taxpayer that a claimant state has
provided certification of the existence of an income tax
liability;
(2) inform the taxpayer of the tax liability
certified, including a detailed statement for each
taxable year showing tax, interest, and penalty;
(3) inform the taxpayer that failure to file a
protest in accordance with subsection (f) of this Section
shall constitute a waiver of any demand against this
State for the amount certified;
(3.5) inform the taxpayer that the refund has been
withheld and that the tax liability has been paid to the
claimant state as provided in subsection (i) of this
Section and will result in payment to the claimant state
as provided in subsection (i) of this Section;
(4) provide the taxpayer with notice of an
opportunity to request a hearing to challenge the
certification; and
(5) inform the taxpayer that the hearing may be
requested (i) pursuant to Section 910 of this Act, or
(ii) with the tax officer, in accordance with the laws of
the claimant state.
(f) Protest of withholding. A taxpayer may protest the
withholding of a refund pursuant to Section 910 of this Act
(except that the protest shall be filed within 30 days after
the date of the Director's notice of certification pursuant
to subsection (e) of this Section). If a taxpayer files a
timely protest, the Director shall:
(1) suspend the proposed withholding and impound
the claimed amount of the refund;
(2) pay to the taxpayer the unclaimed amount of the
refund, if any;
(3) send a copy of the protest to the claimant
state for determination of the protest on its merits in
accordance with the laws of that state; and
(4) pay over to the taxpayer the impounded amount
if the claimant state shall fail, within 45 days after
the date of the protest, to re-certify to the Director
(i) that the claimant state has reviewed the issues
raised by taxpayer, (ii) that all administrative and
judicial remedies provided under the laws of that state
have been exhausted, and (iii) the amount of the income
tax liability finally determined to be due.
(g) Certification as prima facie evidence. If the
taxpayer requests a hearing pursuant to Section 910 of this
Act, the certification of the tax officer shall be prima
facie evidence of the correctness of the taxpayer's
delinquent income tax liability to the certifying state.
(h) Rights of spouses to refunds from joint returns. If
a certification is based upon the tax debt of only one
taxpayer and if the refund is based upon a joint personal
income tax return, the nondebtor spouse shall have the right
to:
(1) notification, as provided in subsection (e) of
this Section;
(2) protest, as to the withholding of such spouse's
share of the refund, as provided in subsection (f) of
this Section; and
(3) payment of his or her share of the refund,
provided the amount of the overpayment refunded to the
spouse shall not exceed the amount of the joint
overpayment.
(i) Withholding and payment of refund. Subject to the
taxpayer's rights of notice and protest, Upon receipt of a
request for withholding in accordance with subsection (b) of
this Section, the Director shall:
(1) withhold any refund that is certified by the
tax officer;
(2) pay to the claimant state the entire refund or
the amount certified, whichever is less;
(3) pay any refund in excess of the amount
certified to the taxpayer; and
(4) if a refund is less than the amount certified,
withhold amounts from subsequent refunds due the
taxpayer, if the laws of the claimant state provide that
the claimant state shall withhold subsequent refunds of
taxpayers certified to that state by the Director.
(j) Determination that withholding cannot be made.
After receiving a certification from a tax officer, the
Director shall notify the claimant state if the Director
determines that a withholding cannot be made.
(k) Director's authority. The Director shall have the
authority to enter into agreements with the tax officers of
claimant state relating to:
(1) procedures and methods to be employed by a
claimant state with respect to the operation of this
Section;
(2) safeguards against the disclosure or
inappropriate use of any information obtained or
maintained pursuant to this Section that identifies,
directly or indirectly, a particular taxpayer;
(3) a minimum tax debt, amounts below which, in
light of administrative expenses and efficiency, shall,
in the Director's discretion, not be subject to the
withholding procedures set forth in this Section.
(l) Remedy not exclusive. The collection procedures
prescribed by this Section are in addition to, and not in
substitution for, any other remedy available by law.
(Source: P.A. 92-492, eff. 1-1-02.)
(35 ILCS 5/911.3 new)
Sec. 911.3. Refunds withheld; order of honoring requests.
The Department shall honor refund withholding requests in the
following order:
(1) a refund withholding request to collect an
unpaid State tax;
(2) a refund withholding request to collect
certified past due child support amounts under Section
2505-650 of the Department of Revenue Law of the Civil
Administrative Code of Illinois;
(3) a refund withholding request to collect any
debt owed to the State;
(4) a refund withholding request made by the
Secretary of the Treasury of the United States, or his or
her delegate, to collect any tax liability arising from
Title 26 of the United States Code; and
(5) a refund withholding request pursuant to
Section 911.2 of this Act.
(35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
Sec. 1102. Jeopardy Assessments.
(a) Jeopardy assessment and lien.
(1) Assessment. If the Department finds that a
taxpayer is about to depart from the State, or to conceal
himself or his property, or to do any other act tending
to prejudice or to render wholly or partly ineffectual
proceedings to collect any amount of tax or penalties
imposed under this Act unless court proceedings are
brought without delay, or if the Department finds that
the collection of such amount will be jeopardized by
delay, the Department shall give the taxpayer notice of
such findings and shall make demand for immediate return
and payment of such amount, whereupon such amount shall
be deemed assessed and shall become immediately due and
payable.
(2) Filing of lien. If the taxpayer, within 5 days
after such notice (or within such extension of time as
the Department may grant), does not comply with such
notice or show to the Department that the findings in
such notice are erroneous, the Department may file a
notice of jeopardy assessment lien in the office of the
recorder of the county in which any property of the
taxpayer may be located and shall notify the taxpayer of
such filing. Such jeopardy assessment lien shall have the
same scope and effect as a statutory lien under this Act.
The taxpayer is liable for the filing fee incurred by the
Department for filing the lien and the filing fee
incurred by the Department to file the release of that
lien. The filing fees shall be paid to the Department in
addition to payment of the tax, penalty, and interest
included in the amount of the lien.
(b) Termination of taxable year. In the case of a tax
for a current taxable year, the Director shall declare the
taxable period of the taxpayer immediately terminated and his
notice and demand for a return and immediate payment of the
tax shall relate to the period declared terminated, including
therein income accrued and deductions incurred up to the date
of termination if not otherwise properly includible or
deductible in respect of such taxable year.
(c) Protest. If the taxpayer believes that he does not
owe some or all of the amount for which the jeopardy
assessment lien against him has been filed, or that no
jeopardy to the revenue in fact exists, he may protest within
20 days after being notified by the Department of the filing
of such jeopardy assessment lien and request a hearing,
whereupon the Department shall hold a hearing in conformity
with the provisions of section 908 and, pursuant thereto,
shall notify the taxpayer of its decision as to whether or
not such jeopardy assessment lien will be released.
(Source: P.A. 83-358.)
(35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
Sec. 1103. Filing and Priority of Liens. (a) Filing with
Recorder. Nothing in this Article shall be construed to give
the Department a preference over the rights of any bona fide
purchaser, holder of a security interest, mechanics lienor,
mortgagee, or judgment lien creditor arising prior to the
filing of a regular notice of lien or a notice of jeopardy
assessment lien in the office of the recorder in the county
in which the property subject to the lien is located. For
purposes of this section, the term "bona fide," shall not
include any mortgage of real or personal property or any
other credit transaction that results in the mortgagee or the
holder of the security acting as trustee for unsecured
creditors of the taxpayer mentioned in the notice of lien who
executed such chattel or real property mortgage or the
document evidencing such credit transaction. Such lien shall
be inferior to the lien of general taxes, special assessments
and special taxes heretofore or hereafter levied by any
political subdivision of this State.
(b) Filing with Registrar. In case title to land to be
affected by the notice of lien or notice of jeopardy
assessment lien is registered under the provisions of "An Act
concerning land titles," approved May 1, 1897, as amended,
such notice shall be filed in the office of the Registrar of
Titles of the county within which the property subject to the
lien is situated and shall be entered upon the register of
titles as a memorial of charge upon each folium of the
register of titles affected by such notice, and the
Department shall not have a preference over the rights of any
bona fide purchaser, mortgagee, judgment creditor or other
lien holder arising prior to the registration of such notice.
(c) Index. The recorder of each county shall procure a
file labeled "State Tax Lien Notices" and an index book
labeled "State Tax Lien Index." When notice of any lien or
jeopardy assessment lien is presented to him for filing, he
shall file it in numerical order in the file and shall enter
it alphabetically in the index. The entry shall show the name
and last known address of the person named in the notice, the
serial number of the notice, the date and hour of filing,
whether it is a regular lien or a jeopardy assessment lien,
and the amount of tax and penalty due and unpaid, plus the
amount of interest due at the time when the notice of lien or
jeopardy assessment is filed.
(d) No recorder or registrar of titles of any county
shall require that the Department pay any costs or fees in
connection with recordation of any notice or other document
filed by the Department under this Act at the time such
notice or other document is presented for recordation. The
recorder or registrar of each county, in order to receive
payment for fees or costs incurred by the Department, shall
present the Department with monthly statements indicating the
amount of fees and costs incurred by the Department and for
which no payment has been received. This amendatory Act of
1987 applies to all liens heretofore or hereafter filed.
(e) The taxpayer is liable for the filing fee incurred
by the Department for filing the lien and the filing fee
incurred by the Department to file the release of that lien.
The filing fees shall be paid to the Department in addition
to payment of the tax, penalty, and interest included in the
amount of the lien.
(Source: P.A. 86-905.)
(35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
Sec. 1105. Release of Liens.
(a) In general. Upon payment by the taxpayer to the
Department in cash or by guaranteed remittance of an amount
representing the filing fees and charges for the lien and the
filing fees and charges for the release of that lien, the
Department shall release all or any portion of the property
subject to any lien provided for in this Act and file that
complete or partial release of lien with the recorder of the
county where that lien was filed if it determines that the
release will not endanger or jeopardize the collection of the
amount secured thereby.
(b) Judicial determination. If on judicial review the
final judgment of the court is that the taxpayer does not owe
some or all of the amount secured by the lien against him, or
that no jeopardy to the revenue exists, the Department shall
release its lien to the extent of such finding of
nonliability, or to the extent of such finding of no jeopardy
to the revenue. The taxpayer shall, however, be liable for
the filing fee paid by the Department to file the lien and
the filing fee required to file a release of the lien. The
filing fees shall be paid to the Department.
(c) Payment. The Department shall also release its
jeopardy assessment lien against the taxpayer whenever the
tax and penalty covered by such lien, plus any interest which
may be due and an amount representing the filing fee to file
the lien and the filing fee required to file a release of
that lien, are paid by the taxpayer to the Department in cash
or by guaranteed remittance.
(d) Certificate of release. The Department shall issue a
certificate of complete or partial release of the lien upon
payment by the taxpayer to the Department in cash or by
guaranteed remittance of an amount representing the filing
fee paid by the Department to file the lien and the filing
fee required to file the release of that lien:
(1) To the extent that the fair market value of any
property subject to the lien exceeds the amount of the lien
plus the amount of all prior liens upon such property;
(2) To the extent that such lien shall become
unenforceable;
(3) To the extent that the amount of such lien is paid
by the person whose property is subject to such lien,
together with any interest and penalty which may become due
under this Act between the date when the notice of lien is
filed and the date when the amount of such lien is paid;
(4) To the extent that there is furnished to the
Department on a form to be approved and with a surety or
sureties satisfactory to the Department a bond that is
conditioned upon the payment of the amount of such lien,
together with any interest which may become due under this
Act after the notice of lien is filed, but before the amount
thereof is fully paid;
(5) To the extent and under the circumstances specified
in this section. A certificate of complete or partial release
of any lien shall be held conclusive that the lien upon the
property covered by the certificate is extinguished to the
extent indicated by such certificate.
Such release of lien shall be issued to the person, or
his agent, against whom the lien was obtained and shall
contain in legible letters a statement as follows:
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
BE FILED WITH THE RECORDER OR THE REGISTRAR
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
(e) Filing. When a certificate of complete or partial
release of lien issued by the Department is presented for
filing in the office of the recorder or Registrar of Titles
where a notice of lien or notice of jeopardy assessment lien
was filed:
(1) The recorder, in the case of nonregistered property,
shall permanently attach the certificate of release to the
notice of lien or notice of jeopardy assessment lien and
shall enter the certificate of release and the date in the
"State Tax Lien Index" on the line where the notice of lien
or notice of jeopardy assessment lien is entered; and
(2) In the case of registered property, the Registrar of
Titles shall file and enter upon each folium of the register
of titles affected thereby a memorial of the certificate of
release which memorial when so entered shall act as a release
pro tanto of any memorial of such notice of lien or notice of
jeopardy assessment lien previously filed and registered.
(Source: P.A. 85-731.)
Section 15. The Retailers' Occupation Tax Act is amended
by changing Sections 5a, 5b, and 5c as follows:
(35 ILCS 120/5a) (from Ch. 120, par. 444a)
Sec. 5a. The Department shall have a lien for the tax
herein imposed or any portion thereof, or for any penalty
provided for in this Act, or for any amount of interest which
may be due as provided for in Section 5 of this Act, upon all
the real and personal property of any person to whom a final
assessment or revised final assessment has been issued as
provided in this Act, or whenever a return is filed without
payment of the tax or penalty shown therein to be due,
including all such property of such persons acquired after
receipt of such assessment or filing of such return. The
taxpayer is liable for the filing fee incurred by the
Department for filing the lien and the filing fee incurred by
the Department to file the release of that lien. The filing
fees shall be paid to the Department in addition to payment
of the tax, penalty, and interest included in the amount of
the lien.
However, where the lien arises because of the issuance of
a final assessment or revised final assessment by the
Department, such lien shall not attach and the notice
hereinafter referred to in this Section shall not be filed
until all proceedings in court for review of such final
assessment or revised final assessment have terminated or the
time for the taking thereof has expired without such
proceedings being instituted.
Upon the granting of a rehearing or departmental review
pursuant to Section 4 or Section 5 of this Act after a lien
has attached, such lien shall remain in full force except to
the extent to which the final assessment may be reduced by a
revised final assessment following such rehearing or review.
The lien created by the issuance of a final assessment
shall terminate unless a notice of lien is filed, as provided
in Section 5b hereof, within 3 years from the date all
proceedings in court for the review of such final assessment
have terminated or the time for the taking thereof has
expired without such proceedings being instituted, or (in the
case of a revised final assessment issued pursuant to a
rehearing or departmental review) within 3 years from the
date all proceedings in court for the review of such revised
final assessment have terminated or the time for the taking
thereof has expired without such proceedings being
instituted; and where the lien results from the filing of a
return without payment of the tax or penalty shown therein to
be due, the lien shall terminate unless a notice of lien is
filed, as provided in Section 5b hereof, within 3 years from
the date when such return is filed with the Department:
Provided that the time limitation period on the Department's
right to file a notice of lien shall not run during any
period of time in which the order of any court has the effect
of enjoining or restraining the Department from filing such
notice of lien.
If the Department finds that a taxpayer is about to
depart from the State, or to conceal himself or his property,
or to do any other act tending to prejudice or to render
wholly or partly ineffectual proceedings to collect such tax
unless such proceedings are brought without delay, or if the
Department finds that the collection of the amount due from
any taxpayer will be jeopardized by delay, the Department
shall give the taxpayer notice of such findings and shall
make demand for immediate return and payment of such tax,
whereupon such tax shall become immediately due and payable.
If the taxpayer, within 5 days after such notice (or within
such extension of time as the Department may grant), does not
comply with such notice or show to the Department that the
findings in such notice are erroneous, the Department may
file a notice of jeopardy assessment lien in the office of
the recorder of the county in which any property of the
taxpayer may be located and shall notify the taxpayer of such
filing. Such jeopardy assessment lien shall have the same
scope and effect as the statutory lien hereinbefore provided
for in this Section.
If the taxpayer believes that he does not owe some or all
of the tax for which the jeopardy assessment lien against him
has been filed, or that no jeopardy to the revenue in fact
exists, he may protest within 20 days after being notified by
the Department of the filing of such jeopardy assessment lien
and request a hearing, whereupon the Department shall hold a
hearing in conformity with the provisions of this Act and,
pursuant thereto, shall notify the taxpayer of its findings
as to whether or not such jeopardy assessment lien will be
released. If not, and if the taxpayer is aggrieved by this
decision, he may file an action for judicial review of such
final determination of the Department in accordance with
Section 12 of this Act and the Administrative Review Law.
If, pursuant to such hearing (or after an independent
determination of the facts by the Department without a
hearing), the Department determines that some or all of the
tax covered by the jeopardy assessment lien is not owed by
the taxpayer, or that no jeopardy to the revenue exists, or
if on judicial review the final judgment of the court is that
the taxpayer does not owe some or all of the tax covered by
the jeopardy assessment lien against him, or that no jeopardy
to the revenue exists, the Department shall release its
jeopardy assessment lien to the extent of such finding of
nonliability for the tax, or to the extent of such finding of
no jeopardy to the revenue.
The Department shall also release its jeopardy assessment
lien against the taxpayer whenever the tax and penalty
covered by such lien, plus any interest which may be due, are
paid and the taxpayer has paid the Department in cash or by
guaranteed remittance an amount representing the filing fee
for the lien and the filing fee for the release of that lien.
The Department shall file that release of lien with the
recorder of the county where that lien was filed.
Nothing in this Section shall be construed to give the
Department a preference over the rights of any bona fide
purchaser, holder of a security interest, mechanics
lienholder, mortgagee, or judgment lien creditor arising
prior to the filing of a regular notice of lien or a notice
of jeopardy assessment lien in the office of the recorder in
the county in which the property subject to the lien is
located: Provided, however, that the word "bona fide", as
used in this Section shall not include any mortgage of real
or personal property or any other credit transaction that
results in the mortgagee or the holder of the security acting
as trustee for unsecured creditors of the taxpayer mentioned
in the notice of lien who executed such chattel or real
property mortgage or the document evidencing such credit
transaction. Such lien shall be inferior to the lien of
general taxes, special assessments and special taxes
heretofore or hereafter levied by any political subdivision
of this State.
In case title to land to be affected by the notice of
lien or notice of jeopardy assessment lien is registered
under the provisions of "An Act concerning land titles",
approved May 1, 1897, as amended, such notice shall be filed
in the office of the Registrar of Titles of the county within
which the property subject to the lien is situated and shall
be entered upon the register of titles as a memorial or
charge upon each folium of the register of titles affected by
such notice, and the Department shall not have a preference
over the rights of any bona fide purchaser, mortgagee,
judgment creditor or other lien holder arising prior to the
registration of such notice: Provided, however, that the word
"bona fide" shall not include any mortgage of real or
personal property or any other credit transaction that
results in the mortgagee or the holder of the security acting
as trustee for unsecured creditors of the taxpayer mentioned
in the notice of lien who executed such chattel or real
property mortgage or the document evidencing such credit
transaction.
Such regular lien or jeopardy assessment lien shall not
be effective against any purchaser with respect to any item
in a retailer's stock in trade purchased from the retailer in
the usual course of such retailer's business.
(Source: P.A. 86-905.)
(35 ILCS 120/5b) (from Ch. 120, par. 444b)
Sec. 5b. The recorder of each county shall procure a
file labeled "State Tax Lien Notices" and an index book
labeled "State Tax Lien Index". When notice of any lien or
jeopardy assessment lien is presented to him for filing, he
shall file it in numerical order in the file and shall enter
it alphabetically in the index. The entry shall show the name
and last known business address of the person named in the
notice, the serial number of the notice, the date and hour of
filing, whether it is a regular lien or a jeopardy assessment
lien, and the amount of tax and penalty due and unpaid, plus
the amount of interest due under Section 5 of this Act at the
time when the notice of lien or jeopardy assessment lien is
filed.
No recorder or registrar of titles of any county shall
require that the Department pay any costs or fees in
connection with recordation of any notice or other document
filed by the Department under this Act at the time such
notice or other document is presented for recordation. The
recorder or registrar of each county, in order to receive
payment for fees or costs incurred by the Department, shall
present the Department with monthly statements indicating the
amount of fees and costs incurred by the Department and for
which no payment has been received.
A notice of lien may be filed after the issuance of a
revised final assessment pursuant to a rehearing or
departmental review under Section 4 or Section 5 of this Act.
When the lien obtained pursuant to this Act has been
satisfied and the taxpayer has paid the Department in cash or
by guaranteed remittance an amount representing the filing
fee for the lien and the filing fee for the release of that
lien, the Department shall issue a release of lien and file
that release of lien with the recorder of the county where
that lien was filed. The to the person, or his agent, against
whom the lien was obtained and such release of lien shall
contain in legible letters a statement as follows:
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
BE FILED WITH THE RECORDER OR THE REGISTRAR
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
When a certificate of complete or partial release of lien
issued by the Department is presented for filing in the
office of the recorder or Registrar of Titles where a notice
of lien or notice of jeopardy assessment lien was filed, the
recorder, in the case of nonregistered property, shall
permanently attach the certificate of release to the notice
of lien or notice of jeopardy assessment lien and shall enter
the certificate of release and the date in the "State Tax
Lien Index" on the line where the notice of lien or notice of
jeopardy assessment lien is entered.
In the case of registered property, the Registrar of
Titles shall file and enter upon each folium of the register
of titles affected thereby a memorial of the certificate of
release which memorial when so entered shall act as a release
pro tanto of any memorial of such notice of lien or notice of
jeopardy assessment lien previously filed and registered.
(Source: P.A. 84-221.)
(35 ILCS 120/5c) (from Ch. 120, par. 444c)
Sec. 5c. Upon payment by the taxpayer to the Department
in cash or by guaranteed remittance of an amount representing
the filing fee for the lien and the filing fee for the
release of that lien, the Department shall issue a
certificate of complete or partial release of the lien and
file that complete or partial release of lien with the
recorder of the county where the lien was filed:
(a) To the extent that the fair market value of any
property subject to the lien exceeds the amount of the lien
plus the amount of all prior liens upon such property;
(b) To the extent that such lien shall become
unenforceable;
(c) To the extent that the amount of such lien is paid
by the retailer whose property is subject to such lien,
together with any interest which may become due under Section
5 of this Act between the date when the notice of lien is
filed and the date when the amount of such lien is paid;
(d) To the extent that there is furnished to the
Department on a form to be approved and with a surety or
sureties satisfactory to the Department a bond that is
conditioned upon the payment of the amount of such lien,
together with any interest which may become due under Section
5 of this Act after the notice of lien is filed, but before
the amount thereof is fully paid;
(e) To the extent and under the circumstances specified
in Section 5a of this Act in the case of jeopardy assessment
liens;
(f) To the extent to which an assessment is reduced
pursuant to a rehearing or departmental review under Section
4 or Section 5 of this Act.
A certificate of complete or partial release of any lien
shall be held conclusive that the lien upon the property
covered by the certificate is extinguished to the extent
indicated by such certificate.
(Source: Laws 1965, p. 531.)
Section 99. Effective date. This Act takes effect upon
becoming law, except that the changes to Sections 1102, 1103,
and 1105 of the Illinois Income Tax Act and Sections 5a, 5b,
and 5c of the Retailer's Occupation Tax Act take effect on
January 1, 2003.
Passed in the General Assembly June 02, 2002.
Approved August 21, 2002.
Effective August 21, 2002.
Effective January 01, 2003.
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