Bill Amendment: IL HB3263 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: TAX TRIBUNAL-JURISDICTION

Status: 2019-01-08 - Session Sine Die [HB3263 Detail]

Download: Illinois-2017-HB3263-House_Amendment_001.html

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Rep. Michael J. Zalewski

Filed: 3/15/2017

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AMENDMENT TO HOUSE BILL 3263
AMENDMENT NO. ______. Amend House Bill 3263 by replacing
everything after the enacting clause with the following:
"Section 3. The Cannabis and Controlled Substances Tax Act
is amended by changing Section 16 as follows:
(35 ILCS 520/16) (from Ch. 120, par. 2166)
Sec. 16. All assessments are Jeopardy Assessments - lien.
(a) Assessment. An assessment for a dealer not possessing
valid stamps or other official indicia showing that the tax has
been paid shall be considered a jeopardy assessment or
collection, as provided by Section 1102 of the Illinois Income
Tax Act. The Department shall determine and assess a tax and
applicable penalties and interest according to the best
judgment and information available to the Department, which
amount so fixed by the Department shall be prima facie correct
and shall be prima facie evidence of the correctness of the

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amount of tax due, as shown in such determination. When,
according to the best judgment and information available to the
Department with regard to all real and personal property and
rights to property of the dealer, there is no reasonable
expectation of collection of the amount of tax and penalty to
be assessed, the Department may issue an assessment under this
Section for the amount of tax without penalty.
(b) Filing of Lien. Upon issuance of a jeopardy assessment
as provided by subsection (a) of this Section, 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.
(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, 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 of the Illinois Income Tax Act and,
pursuant thereto, shall notify the taxpayer of its decision as
to whether or not such jeopardy assessment lien will be
released.
After the expiration of the period within which the person
assessed may file an action for judicial review without such
action being filed, a certified copy of the final assessment or

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revised final assessment of the Department may be filed with
the Circuit Court of the county in which the dealer resides, or
of Cook County in the case of a dealer who does not reside in
this State, or in the county where the violation of this Act
took place. The certified copy of the final assessment or
revised final assessment shall be accompanied by a
certification which recites facts that are sufficient to show
that the Department complied with the jurisdictional
requirements of the Act in arriving at its final assessment or
its revised final assessment and that the dealer had this
opportunity for an administrative hearing and for judicial
review, whether he availed himself or herself of either or both
of these opportunities or not. If the court is satisfied that
the Department complied with the jurisdictional requirements
of the Act in arriving at its final assessment or its revised
final assessment and that the taxpayer had his opportunity for
an administrative hearing and for judicial review, whether he
availed himself of either or both of these opportunities or
not, the court shall render judgment in favor of the Department
and against the taxpayer for the amount shown to be due by the
final assessment or the revised final assessment, plus any
interest which may be due, and such judgment shall be entered
in the judgment docket of the court. Such judgment shall bear
the same rate of interest and shall have the same effect as
other judgments. The judgment may be enforced, and all laws
applicable to sales for the enforcement of a judgment shall be

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applicable to sales made under such judgments. The Department
shall file the certified copy of its assessment, as herein
provided, with the Circuit Court within 2 years after such
assessment becomes final except when the taxpayer consents in
writing to an extension of such filing period, and except that
the time limitation period on the Department's right to file
the certified copy of its assessment with the Circuit Court
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 certified copy of its assessment
with the Circuit Court.
If, when the cause of action for a proceeding in court
accrues against a person, he or she is out of the State, the
action may be commenced within the times herein limited, after
his or her coming into or returning to the State; and if, after
the cause of action accrues, he or she departs from and remains
out of the State, the time of his or her absence from the
State, the time of his or her absence is no part of the time
limited for the commencement of the action; but the foregoing
provisions concerning absence from the State shall not apply to
any case in which, at the time the cause of action accrues, the
party against whom the cause of action accrues is not a
resident of this State. The time within which a court action is
to be commenced by the Department hereunder shall not run from
the date the taxpayer files a petition in bankruptcy under the
Federal Bankruptcy Act until 30 days after notice of

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termination or expiration of the automatic stay imposed by the
Federal Bankruptcy Act.
No claim shall be filed against the estate of any deceased
person or any person under legal disability for any tax or
penalty or part of either, or interest, except in the manner
prescribed and within the time limited by the Probate Act of
1975, as amended.
The collection of tax or penalty or interest by any means
provided for herein shall not be a bar to any prosecution under
this Act.
In addition to any penalty provided for in this Act, any
amount of tax which is not paid when due shall bear interest at
the rate determined in accordance with the Uniform Penalty and
Interest Act, per month or fraction thereof from the date when
such tax becomes past due until such tax is paid or a judgment
therefor is obtained by the Department. If the time for making
or completing an audit of a taxpayer's books and records is
extended with the taxpayer's consent, at the request of and for
the convenience of the Department, beyond the date on which the
statute of limitations upon the issuance of a notice of tax
liability by the Department otherwise run, no interest shall
accrue during the period of such extension. Interest shall be
collected in the same manner and as part of the tax.
If the Department determines that an amount of tax or
penalty or interest was incorrectly assessed, whether as the
result of a mistake of fact or an error of law, the Department

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shall waive the amount of tax or penalty or interest that
accrued due to the incorrect assessment.
On and after January 1, 2018, the assessment and collection
of the tax under this Act is subject to the jurisdiction of the
Illinois Tax Tribunal to the extent provided in the Illinois
Independent Tax Tribunal Act of 2012.
(Source: P.A. 97-1129, eff. 8-28-12.)
Section 5. The Illinois Independent Tax Tribunal Act of
2012 is amended by changing Sections 1-45, 1-50, 1-55, and 1-63
and by adding Section 1-51 as follows:
(35 ILCS 1010/1-45)
Sec. 1-45. Jurisdiction of the Tax Tribunal.
(a) Except as provided by the Constitution of the United
States, the Constitution of the State of Illinois, or any
statutes of this State, including, but not limited to, the
State Officers and Employees Money Disposition Act, the Tax
Tribunal shall have original jurisdiction over all
determinations of the Department reflected on a Notice of
Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
Notice of Penalty Liability issued under the Illinois Income
Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, the Retailers' Occupation Tax Act, the
Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
Products Tax Act of 1995, the Hotel Operators' Occupation Tax

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Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
and Use Tax Act, the Coin-Operated Amusement Device and
Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
Company Invested Capital Tax Act, the Telecommunications
Excise Tax Act, the Telecommunications Infrastructure
Maintenance Fee Act, the Public Utilities Revenue Act, the
Electricity Excise Tax Law, the Aircraft Use Tax Law, the
Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
Penalty and Interest Act. In addition, with respect to notices
issued on or after January 1, 2018, the Tax Tribunal shall also
have original jurisdiction over all determinations of the
Department reflected on a Notice of Deficiency, Notice of Tax
Liability, Notice of Claim Denial, or Notice of Penalty
Liability issued under the County Motor Fuel Tax Law, the Live
Adult Entertainment Facility Surcharge Act, the Vehicle Use
Tax, the Metropolitan Pier and Exposition Authority Food and
Beverage Tax, the Tire User Fee, the Chicago Soft Drink Tax,
the Drycleaning Solvent Tax, the Energy Assistance Act of 1989,
the Qualified Solid Waste Fee, the Illinois Hydraulic
Fracturing Tax Act, or the Cannabis and Controlled Substances
Tax Act. Jurisdiction of the Tax Tribunal is limited to Notices
of Tax Liability, Notices of Deficiency, Notices of Claim
Denial, and Notices of Penalty Liability where, for notices
issued prior to January 1, 2018, the amount at issue in a
notice, or the aggregate amount at issue in multiple notices
issued for the same tax year or audit period, exceeds $15,000,

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exclusive of penalties and interest. In notices issued prior to
January 1, 2018 solely asserting either an interest or penalty
assessment, or both, the Tax Tribunal shall have jurisdiction
over cases where the combined total of all penalties or
interest assessed exceeds $15,000. Beginning with notices and
decisions issued on and after January 1, 2018, the Tax Tribunal
shall have jurisdiction over all Notices of Tax Liability,
Notices of Deficiency, Notices of Claim Denial, and Notices of
Penalty Liability, all notices solely asserting either an
interest or penalty assessment, and any decisions relating to
the issuance or denial of an exemption ruling for any entity
claiming a non-homestead exemption from any tax imposed under
the Property Tax Code or any exemption from a State tax
administered by the Department.
(b) Except as otherwise permitted by this Act and by the
Constitution of the State of Illinois or otherwise by State
law, including, but not limited to, the State Officers and
Employees Money Disposition Act, no person shall contest any
matter within the jurisdiction of the Tax Tribunal in any
action, suit, or proceeding in the circuit court or any other
court of the State. If a person attempts to do so, then such
action, suit, or proceeding shall be dismissed without
prejudice. The improper commencement of any action, suit, or
proceeding does not extend the time period for commencing a
proceeding in the Tax Tribunal.
(c) The Tax Tribunal may require the taxpayer to post a

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bond equal to 25% of the liability at issue (1) upon motion of
the Department and a showing that (A) the taxpayer's action is
frivolous or legally insufficient or (B) the taxpayer is acting
primarily for the purpose of delaying the collection of tax or
prejudicing the ability ultimately to collect the tax, or (2)
if, at any time during the proceedings, it is determined by the
Tax Tribunal that the taxpayer is not pursuing the resolution
of the case with due diligence. If the Tax Tribunal finds in a
particular case that the taxpayer cannot procure and furnish a
satisfactory surety or sureties for the kind of bond required
herein, the Tax Tribunal may relieve the taxpayer of the
obligation of filing such bond, if, upon the timely application
for a lien in lieu thereof and accompanying proof therein
submitted, the Tax Tribunal is satisfied that any such lien
imposed would operate to secure the assessment in the manner
and to the degree as would a bond. The Tax Tribunal shall adopt
rules for the procedures to be used in securing a bond or lien
under this Section.
(d) If, with or after the filing of a timely petition, the
taxpayer pays all or part of the tax or other amount in issue
before the Tax Tribunal has rendered a decision, the Tax
Tribunal shall treat the taxpayer's petition as a protest of a
denial of claim for refund of the amount so paid upon a written
motion filed by the taxpayer.
(e) The Tax Tribunal shall not have jurisdiction to review:
(1) any assessment made under the Property Tax Code;

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(2) any decisions issued prior to January 1, 2018
relating to the issuance or denial of an exemption ruling
for any entity claiming exemption from any tax imposed
under the Property Tax Code or any State tax administered
by the Department;
(3) a notice of proposed tax liability, notice of
proposed deficiency, or any other notice of proposed
assessment or notice of intent to take some action;
(4) any action or determination of the Department
regarding tax liabilities that have become finalized by
law, including but not limited to the issuance of liens,
levies, and revocations, suspensions, or denials of
licenses or certificates of registration or any other
collection activities;
(5) any proceedings of the Department's informal
administrative appeals function; and
(6) any challenge to an administrative subpoena issued
by the Department.
(f) The Tax Tribunal shall decide questions regarding the
constitutionality of statutes and rules adopted by the
Department as applied to the taxpayer, but shall not have the
power to declare a statute or rule unconstitutional or
otherwise invalid on its face. A taxpayer challenging the
constitutionality of a statute or rule on its face may present
such challenge to the Tax Tribunal for the sole purpose of
making a record for review by the Illinois Appellate Court.

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Failure to raise a constitutional issue regarding the
application of a statute or regulations to the taxpayer shall
not preclude the taxpayer or the Department from raising those
issues at the appellate court level.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
(35 ILCS 1010/1-50)
Sec. 1-50. Pleadings.
(a) A taxpayer may commence a proceeding in the Tax
Tribunal by filing a petition protesting the Department's
determination imposing a liability for tax, penalty, or
interest, or denying a claim for refund or credit application.
The petition shall be filed within the time permitted by
statute for filing a protest.
(b) The Department shall file its answer in the Tax
Tribunal no later than 30 days after its receipt of the Tax
Tribunal's notification that the taxpayer has filed a petition
in the proper form or within such additional time as the Tax
Tribunal may specify. The Department shall serve a copy of its
answer on the taxpayer's representative or, if the taxpayer is
not represented, on the taxpayer, and shall file proof of such
service with the answer. Material facts alleged in the
petition, if not expressly admitted or denied in the answer,
shall be deemed admitted.
(c) Either party may amend a pleading once without leave at
any time before the period for responding to it expires. After

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such time, a pleading may be amended only with the written
consent of the adverse party or with the permission of the Tax
Tribunal. The Tax Tribunal shall freely grant consent to amend
upon such terms as may be just. Except as otherwise ordered by
the Tax Tribunal, there shall be an answer to an amended
pleading if an answer is required to the pleading being
amended. Filing of the answer, or, if the answer has already
been filed, the amended answer shall be made no later than 30
days after the filing of the amended petition. The taxpayer may
not amend a petition after expiration of the time for filing a
petition, if such amendment would have the effect of conferring
jurisdiction on the Tax Tribunal over a matter that would
otherwise not come within its jurisdiction. An amendment of a
pleading shall relate back to the time of filing of the
original pleading only as prescribed by Section 2-616 of the
Code of Civil Procedure.
(d) For all notices issued prior to January 1, 2018, this
Section applies to all cases in which the amount at issue in a
notice, or the aggregate amount at issue in multiple notices
issued for the same tax year or audit period, exceeds $15,000
exclusive of penalties and interest, and in all cases involving
notices solely asserting an interest or penalty assessment, or
both, where the combined total of all penalties and interest
assessed exceeds $15,000.
(e) For all notices issued on or after January 1, 2018,
this Section applies to all cases in which the amount at issue

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in a notice, or the aggregate amount at issue in multiple
notices issued for the same tax year or audit period, exceeds
$50,000, exclusive of penalties and interest, and in all cases
involving notices solely asserting an interest or penalty
assessment, or both, where the combined total of all penalties
and interest assessed exceeds $50,000.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 1010/1-51 new)
Sec. 1-51. Pleadings in small dollar cases.
(a) For all notices issued on or after January 1, 2018,
this Section applies to all cases in which the amount at issue
in a notice, or the aggregate amount at issue in multiple
notices issued for the same tax year or audit period, does not
exceed $50,000 exclusive of penalties and interest, in all
cases involving notices solely asserting an interest or penalty
assessment or both the combined total of all penalties and
interest assessed does not exceed $50,000, and any decisions
relating to the issuance or denial of an exemption ruling for
any entity claiming a non-homestead exemption from any tax
imposed under the Property Tax Code or any exemption from a
State tax administered by the Department.
(b) In all matters governed by this Section, protests, in
order to be deemed sufficient as a matter of law, may be filed
on forms promulgated by the Tax Tribunal and must include the
following at a minimum:

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(1) the taxpayer's identification number, i.e., FEIN,
or individual or business account number;
(2) the date of issuance of the notice which is being
contested;
(3) the tax year or years and, if applicable, the
filing period and audit period involved;
(4) to the extent possible, the factual and legal
grounds upon which the objections to the notices are based;
(5) A certification that the facts stated are true,
correct, and complete to the best of the affiant's
knowledge and belief.
(35 ILCS 1010/1-55)
Sec. 1-55. Fees.
(a) The Tax Tribunal shall impose a fee of
(1) $500 for the filing of petitions under Section
1-50; or .
(2) a fee of $100 for the filing of petitions under
Section 1-51 in which the amount at issue exceeds $5000 and
any petition related to the issuance or denial of an
exemption ruling.
(b) The Tax Tribunal may fix a fee, not in excess of the
fees charged and collected by the clerk of the circuit courts,
for comparing, or for preparing and comparing, a transcript of
the record, or for copying any record, entry, or other paper
and the comparison and certification thereof.

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(c) Fees collected under this Section shall be deposited
into the Illinois Independent Tax Tribunal Fund, a special fund
created in the State treasury. Moneys deposited into the Fund
shall be appropriated to the Tax Tribunal to reimburse the Tax
Tribunal for costs associated with administering and enforcing
the provisions of this Act.
(d) The Tax Tribunal shall not assign any costs or
attorney's fees incurred by one party against another party.
Claims for expenses and attorney's fees under Section 10-55 of
the Illinois Administrative Procedure Act shall first be made
to the Department of Revenue. If the claimant is dissatisfied
because of the Department's failure to make any award or
because of the insufficiency of the award, the claimant may
petition the Court of Claims for the amount deemed owed.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
(35 ILCS 1010/1-63)
Sec. 1-63. Automatic Remand and Mediation.
(a) Every case governed by this Act shall be remanded
automatically to the Department of Revenue for a period ending
90 days following the filing of the petition (the "remand
period"). During the remand period, the parties shall meet and
confer in good faith, making particular efforts to resolve the
case by settlement, if possible. All parties may by agreement
extend the remand period for an additional period approved by
the administrative law judge assigned to the case, waive the

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remand period, or have a case returned to the Tax Tribunal at
any time.
(b) At any point in the proceedings before the Tax Tribunal
after the expiration of the remand period, but prior to the
hearing under Section 1-65 of this Act, the parties may jointly
petition the Tax Tribunal for mediation. The purpose of the
mediation shall be to attempt to settle any contested issues or
the case in its entirety. An administrative law judge other
than the one initially assigned to hear the case shall serve as
the mediator.
(Source: P.A. 97-1129, eff. 8-28-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.".