Bill Text: IL HB5243 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Independent Tax Tribunal Act of 2012. Expands the jurisdiction of the Tribunal to include 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 Medical Cannabis Cultivation Privilege Tax Law. Provides for additional procedures, including automatic remand. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5243 Detail]

Download: Illinois-2017-HB5243-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5243

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:
35 ILCS 1010/1-45
35 ILCS 1010/1-50
35 ILCS 1010/1-51 new
35 ILCS 1010/1-55
35 ILCS 1010/1-63

Amends the Illinois Independent Tax Tribunal Act of 2012. Expands the jurisdiction of the Tribunal to include 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 Medical Cannabis Cultivation Privilege Tax Law. Provides for additional procedures, including automatic remand. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB5243LRB100 16533 HLH 31665 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Independent Tax Tribunal Act of
52012 is amended by changing Sections 1-45, 1-50, 1-55, and 1-63
6and by adding Section 1-51 as follows:
7 (35 ILCS 1010/1-45)
8 Sec. 1-45. Jurisdiction of the Tax Tribunal.
9 (a) Except as provided by the Constitution of the United
10States, the Constitution of the State of Illinois, or any
11statutes of this State, including, but not limited to, the
12State Officers and Employees Money Disposition Act, the Tax
13Tribunal shall have original jurisdiction over all
14determinations of the Department reflected on a Notice of
15Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
16Notice of Penalty Liability issued under the Illinois Income
17Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
18Occupation Tax Act, the Retailers' Occupation Tax Act, the
19Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
20Products Tax Act of 1995, the Hotel Operators' Occupation Tax
21Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
22and Use Tax Act, the Coin-Operated Amusement Device and
23Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water

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1Company Invested Capital Tax Act, the Telecommunications
2Excise Tax Act, the Telecommunications Infrastructure
3Maintenance Fee Act, the Public Utilities Revenue Act, the
4Electricity Excise Tax Law, the Aircraft Use Tax Law, the
5Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
6Penalty and Interest Act. In addition, with respect to notices
7issued on or after January 1, 2019, the Tax Tribunal shall also
8have original jurisdiction over all determinations of the
9Department reflected on a Notice of Deficiency, Notice of Tax
10Liability, Notice of Claim Denial, or Notice of Penalty
11Liability issued under the County Motor Fuel Tax Law, the Live
12Adult Entertainment Facility Surcharge Act, the Vehicle Use
13Tax, the Metropolitan Pier and Exposition Authority Food and
14Beverage Tax, the Tire User Fee, the Chicago Soft Drink Tax,
15the Drycleaning Solvent Tax, the Energy Assistance Act of 1989,
16the Qualified Solid Waste Fee, the Illinois Hydraulic
17Fracturing Tax Act, or the Medical Cannabis Cultivation
18Privilege Tax Law. Jurisdiction of the Tax Tribunal is limited
19to Notices of Tax Liability, Notices of Deficiency, Notices of
20Claim Denial, and Notices of Penalty Liability where, for
21notices issued prior to January 1, 2019, the amount at issue in
22a notice, or the aggregate amount at issue in multiple notices
23issued for the same tax year or audit period, exceeds $15,000,
24exclusive of penalties and interest. In notices issued prior to
25January 1, 2019 solely asserting either an interest or penalty
26assessment, or both, the Tax Tribunal shall have jurisdiction

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1over cases where the combined total of all penalties or
2interest assessed exceeds $15,000. Beginning with notices and
3decisions issued on and after January 1, 2019, the Tax Tribunal
4shall have jurisdiction over all Notices of Tax Liability,
5Notices of Deficiency, Notices of Claim Denial, and Notices of
6Penalty Liability, all notices solely asserting either an
7interest or penalty assessment, and any decisions relating to
8the issuance or denial of an exemption ruling for any entity
9claiming a non-homestead exemption from any tax imposed under
10the Property Tax Code or any exemption from a State tax
11administered by the Department.
12 (b) Except as otherwise permitted by this Act and by the
13Constitution of the State of Illinois or otherwise by State
14law, including, but not limited to, the State Officers and
15Employees Money Disposition Act, no person shall contest any
16matter within the jurisdiction of the Tax Tribunal in any
17action, suit, or proceeding in the circuit court or any other
18court of the State. If a person attempts to do so, then such
19action, suit, or proceeding shall be dismissed without
20prejudice. The improper commencement of any action, suit, or
21proceeding does not extend the time period for commencing a
22proceeding in the Tax Tribunal.
23 (c) The Tax Tribunal may require the taxpayer to post a
24bond equal to 25% of the liability at issue (1) upon motion of
25the Department and a showing that (A) the taxpayer's action is
26frivolous or legally insufficient or (B) the taxpayer is acting

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1primarily for the purpose of delaying the collection of tax or
2prejudicing the ability ultimately to collect the tax, or (2)
3if, at any time during the proceedings, it is determined by the
4Tax Tribunal that the taxpayer is not pursuing the resolution
5of the case with due diligence. If the Tax Tribunal finds in a
6particular case that the taxpayer cannot procure and furnish a
7satisfactory surety or sureties for the kind of bond required
8herein, the Tax Tribunal may relieve the taxpayer of the
9obligation of filing such bond, if, upon the timely application
10for a lien in lieu thereof and accompanying proof therein
11submitted, the Tax Tribunal is satisfied that any such lien
12imposed would operate to secure the assessment in the manner
13and to the degree as would a bond. The Tax Tribunal shall adopt
14rules for the procedures to be used in securing a bond or lien
15under this Section.
16 (d) If, with or after the filing of a timely petition, the
17taxpayer pays all or part of the tax or other amount in issue
18before the Tax Tribunal has rendered a decision, the Tax
19Tribunal shall treat the taxpayer's petition as a protest of a
20denial of claim for refund of the amount so paid upon a written
21motion filed by the taxpayer.
22 (e) The Tax Tribunal shall not have jurisdiction to review:
23 (1) any assessment made under the Property Tax Code;
24 (2) any decisions issued prior to January 1, 2019
25 relating to the issuance or denial of an exemption ruling
26 for any entity claiming exemption from any tax imposed

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1 under the Property Tax Code or any State tax administered
2 by the Department;
3 (3) a notice of proposed tax liability, notice of
4 proposed deficiency, or any other notice of proposed
5 assessment or notice of intent to take some action;
6 (4) any action or determination of the Department
7 regarding tax liabilities that have become finalized by
8 law, including but not limited to the issuance of liens,
9 levies, and revocations, suspensions, or denials of
10 licenses or certificates of registration or any other
11 collection activities;
12 (5) any proceedings of the Department's informal
13 administrative appeals function; and
14 (6) any challenge to an administrative subpoena issued
15 by the Department.
16 (f) The Tax Tribunal shall decide questions regarding the
17constitutionality of statutes and rules adopted by the
18Department as applied to the taxpayer, but shall not have the
19power to declare a statute or rule unconstitutional or
20otherwise invalid on its face. A taxpayer challenging the
21constitutionality of a statute or rule on its face may present
22such challenge to the Tax Tribunal for the sole purpose of
23making a record for review by the Illinois Appellate Court.
24Failure to raise a constitutional issue regarding the
25application of a statute or regulations to the taxpayer shall
26not preclude the taxpayer or the Department from raising those

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1issues at the appellate court level.
2(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
3 (35 ILCS 1010/1-50)
4 Sec. 1-50. Pleadings.
5 (a) A taxpayer may commence a proceeding in the Tax
6Tribunal by filing a petition protesting the Department's
7determination imposing a liability for tax, penalty, or
8interest, or denying a claim for refund or credit application.
9The petition shall be filed within the time permitted by
10statute for filing a protest.
11 (b) The Department shall file its answer in the Tax
12Tribunal no later than 30 days after its receipt of the Tax
13Tribunal's notification that the taxpayer has filed a petition
14in the proper form or within such additional time as the Tax
15Tribunal may specify. The Department shall serve a copy of its
16answer on the taxpayer's representative or, if the taxpayer is
17not represented, on the taxpayer, and shall file proof of such
18service with the answer. Material facts alleged in the
19petition, if not expressly admitted or denied in the answer,
20shall be deemed admitted.
21 (c) Either party may amend a pleading once without leave at
22any time before the period for responding to it expires. After
23such time, a pleading may be amended only with the written
24consent of the adverse party or with the permission of the Tax
25Tribunal. The Tax Tribunal shall freely grant consent to amend

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1upon such terms as may be just. Except as otherwise ordered by
2the Tax Tribunal, there shall be an answer to an amended
3pleading if an answer is required to the pleading being
4amended. Filing of the answer, or, if the answer has already
5been filed, the amended answer shall be made no later than 30
6days after the filing of the amended petition. The taxpayer may
7not amend a petition after expiration of the time for filing a
8petition, if such amendment would have the effect of conferring
9jurisdiction on the Tax Tribunal over a matter that would
10otherwise not come within its jurisdiction. An amendment of a
11pleading shall relate back to the time of filing of the
12original pleading only as prescribed by Section 2-616 of the
13Code of Civil Procedure.
14 (d) For all notices issued prior to January 1, 2019, this
15Section applies to all cases in which the amount at issue in a
16notice, or the aggregate amount at issue in multiple notices
17issued for the same tax year or audit period, exceeds $15,000
18exclusive of penalties and interest, and in all cases involving
19notices solely asserting an interest or penalty assessment, or
20both, where the combined total of all penalties and interest
21assessed exceeds $15,000.
22 (e) For all notices issued on or after January 1, 2019,
23this Section applies to all cases in which the amount at issue
24in a notice, or the aggregate amount at issue in multiple
25notices issued for the same tax year or audit period, exceeds
26$50,000, exclusive of penalties and interest, and in all cases

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1involving notices solely asserting an interest or penalty
2assessment, or both, where the combined total of all penalties
3and interest assessed exceeds $50,000.
4(Source: P.A. 97-1129, eff. 8-28-12.)
5 (35 ILCS 1010/1-51 new)
6 Sec. 1-51. Pleadings in small dollar cases.
7 (a) For all notices issued on or after January 1, 2019,
8this Section applies to all cases in which the amount at issue
9in a notice, or the aggregate amount at issue in multiple
10notices issued for the same tax year or audit period, does not
11exceed $50,000 exclusive of penalties and interest, in all
12cases involving notices solely asserting an interest or penalty
13assessment or both the combined total of all penalties and
14interest assessed does not exceed $50,000, and any decisions
15relating to the issuance or denial of an exemption ruling for
16any entity claiming a non-homestead exemption from any tax
17imposed under the Property Tax Code or any exemption from a
18State tax administered by the Department.
19 (b) In all matters governed by this Section, protests, in
20order to be deemed sufficient as a matter of law, may be filed
21on forms promulgated by the Tax Tribunal and must include the
22following at a minimum:
23 (1) the taxpayer's identification number, i.e., FEIN,
24 or individual or business account number;
25 (2) the date of issuance of the notice which is being

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1 contested;
2 (3) the tax year or years and, if applicable, the
3 filing period and audit period involved;
4 (4) to the extent possible, the factual and legal
5 grounds upon which the objections to the notices are based;
6 (5) A certification that the facts stated are true,
7 correct, and complete to the best of the affiant's
8 knowledge and belief.
9 (35 ILCS 1010/1-55)
10 Sec. 1-55. Fees.
11 (a) The Tax Tribunal shall impose a fee of
12 (1) $500 for the filing of petitions under Section
13 1-50; or .
14 (2) a fee of $100 for the filing of petitions under
15 Section 1-51 in which the amount at issue exceeds $5000 and
16 any petition related to the issuance or denial of an
17 exemption ruling.
18 (b) The Tax Tribunal may fix a fee, not in excess of the
19fees charged and collected by the clerk of the circuit courts,
20for comparing, or for preparing and comparing, a transcript of
21the record, or for copying any record, entry, or other paper
22and the comparison and certification thereof.
23 (c) Fees collected under this Section shall be deposited
24into the Illinois Independent Tax Tribunal Fund, a special fund
25created in the State treasury. Moneys deposited into the Fund

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1shall be appropriated to the Tax Tribunal to reimburse the Tax
2Tribunal for costs associated with administering and enforcing
3the provisions of this Act.
4 (d) The Tax Tribunal shall not assign any costs or
5attorney's fees incurred by one party against another party.
6Claims for expenses and attorney's fees under Section 10-55 of
7the Illinois Administrative Procedure Act shall first be made
8to the Department of Revenue. If the claimant is dissatisfied
9because of the Department's failure to make any award or
10because of the insufficiency of the award, the claimant may
11petition the Court of Claims for the amount deemed owed.
12(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
13 (35 ILCS 1010/1-63)
14 Sec. 1-63. Automatic Remand and Mediation.
15 (a) Every case governed by this Act shall be remanded
16automatically to the Department of Revenue for a period ending
1790 days following the filing of the petition (the "remand
18period"). During the remand period, the parties shall meet and
19confer in good faith, making particular efforts to resolve the
20case by settlement, if possible. All parties may by agreement
21extend the remand period for an additional period approved by
22the administrative law judge assigned to the case, waive the
23remand period, or have a case returned to the Tax Tribunal at
24any time.
25 (b) At any point in the proceedings before the Tax Tribunal

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1after the expiration of the remand period, but prior to the
2hearing under Section 1-65 of this Act, the parties may jointly
3petition the Tax Tribunal for mediation. The purpose of the
4mediation shall be to attempt to settle any contested issues or
5the case in its entirety. An administrative law judge other
6than the one initially assigned to hear the case shall serve as
7the mediator.
8(Source: P.A. 97-1129, eff. 8-28-12.)
9 Section 99. Effective date. This Act takes effect upon
10becoming law.
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