Bill Text: IL SB3323 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Creates the Uniform State Tax Lien Registration Act. Provides that the Department of Revenue shall establish and maintain a public database known as the Uniform State Tax Lien Registry. Provides that, if any person neglects or refuses to pay any final tax liability, the Department of Revenue may file in the registry a notice of tax lien within 3 years from the date of the final tax liability. Provides that the tax lien is perfected upon inclusion in the registry and shall be attached to all of the existing and after-acquired property of the debtor. Provides that the Department of Revenue may impose filing fees and fees to release the lien. Provides that the Department of Revenue may sell at bulk the information appearing on the tax lien registry; however, that information may not be used by any party for survey, marketing, or solicitation purposes. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, the Cannabis and Controlled Substances Tax Act, and the Title Insurance Act to make conforming changes. Effective January 1, 2017.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-07-31 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3323 Detail]
Download: Illinois-2015-SB3323-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | ARTICLE 1. UNIFORM STATE TAX LIEN REGISTRATION ACT | ||||||||||||||||||||||||||||||||||||||||||||||
5 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||||||||||||||||||||||
6 | Uniform State Tax Lien Registration Act.
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7 | Section 1-5. Purpose. | ||||||||||||||||||||||||||||||||||||||||||||||
8 | (a) The purpose of this Act is to provide a uniform | ||||||||||||||||||||||||||||||||||||||||||||||
9 | statewide system for filing notices of tax liens that are in | ||||||||||||||||||||||||||||||||||||||||||||||
10 | favor of or enforced by the Department. The Department shall | ||||||||||||||||||||||||||||||||||||||||||||||
11 | maintain the system. | ||||||||||||||||||||||||||||||||||||||||||||||
12 | (b) The scope of this Act is limited to tax liens in real | ||||||||||||||||||||||||||||||||||||||||||||||
13 | property and personal property, tangible and intangible, of | ||||||||||||||||||||||||||||||||||||||||||||||
14 | taxpayers or other persons against whom the Department has | ||||||||||||||||||||||||||||||||||||||||||||||
15 | liens pursuant to law for unpaid final tax liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
16 | administered by the Department. | ||||||||||||||||||||||||||||||||||||||||||||||
17 | (c) Nothing in this Act shall be construed to invalidate | ||||||||||||||||||||||||||||||||||||||||||||||
18 | any lien filed by the Department with a county recorder of | ||||||||||||||||||||||||||||||||||||||||||||||
19 | deeds prior to the effective date of this Act.
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20 | Section 1-10. Definitions. | ||||||||||||||||||||||||||||||||||||||||||||||
21 | "Debtor" means a taxpayer or other person against whom |
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1 | there is an unpaid final tax liability collectible by the | ||||||
2 | Department. | ||||||
3 | "Department" means the Department of Revenue. | ||||||
4 | "Final tax liability" means any State tax, fee, penalty, or | ||||||
5 | interest owed by a person to the Department where the | ||||||
6 | assessment of the liability is not subject to any further | ||||||
7 | timely filed administrative or judicial review. | ||||||
8 | "Last-known address of the debtor" means the address of the | ||||||
9 | debtor appearing in the records of the Department at the time | ||||||
10 | the notice of tax lien is filed in the registry. | ||||||
11 | "Person" means any natural individual, firm, partnership, | ||||||
12 | association, joint stock company, joint adventure, public or | ||||||
13 | private corporation, limited liability company, or a receiver, | ||||||
14 | executor, trustee, guardian or other representative appointed | ||||||
15 | by order of any court. | ||||||
16 | "Registry" or "Uniform State Tax Lien Registry" means the | ||||||
17 | public database maintained by the Department wherein tax liens | ||||||
18 | are filed in favor of and enforced by the Department.
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19 | Section 1-15. Registry established. | ||||||
20 | (a) The Department shall establish and maintain a public | ||||||
21 | database known as the Uniform State Tax Lien Registry. If any | ||||||
22 | person neglects or refuses to pay any final tax liability, the | ||||||
23 | Department may file in the registry a notice of tax lien within | ||||||
24 | 3 years from the date of the final tax liability. | ||||||
25 | (b) The notice of tax lien file shall include: |
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1 | (1) the name and last-known address of the debtor; | ||||||
2 | (2) the name and address of the Department; | ||||||
3 | (3) the tax lien number assigned to the lien by the | ||||||
4 | Department; and | ||||||
5 | (4) the basis for the tax lien, including, but not | ||||||
6 | limited to, the amount owed by the debtor as of the date of | ||||||
7 | filing in the tax lien registry.
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8 | Section 1-20. Tax lien perfected. | ||||||
9 | (a) When a notice of tax lien is filed by the Department in | ||||||
10 | the registry, the tax lien is perfected and shall be attached | ||||||
11 | to all of the existing and after-acquired property of the | ||||||
12 | debtor, both real and personal, tangible and intangible, which | ||||||
13 | is located in any and all counties within the State of | ||||||
14 | Illinois. | ||||||
15 | (b) The amount of the tax lien shall be a debt due the | ||||||
16 | State of Illinois and shall remain a lien upon all property and | ||||||
17 | rights to property belonging to the debtor, both real and | ||||||
18 | personal, tangible and intangible, which is located in any and | ||||||
19 | all counties within the State of Illinois. Interest and penalty | ||||||
20 | shall accrue on the tax lien at the same rate and with the same | ||||||
21 | restrictions, if any, as specified by statute for the accrual | ||||||
22 | of interest and penalty for the type of tax or taxes for which | ||||||
23 | the tax lien was issued.
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24 | Section 1-25. Time period of lien. |
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1 | (a) A notice of tax lien shall be a lien upon the debtor's | ||||||
2 | property located anywhere in the State for a period of 20 years | ||||||
3 | from the date of filing unless it is sooner released by the | ||||||
4 | Department. | ||||||
5 | (b) A notice of release of tax lien filed in the registry | ||||||
6 | shall constitute a release of the tax lien within the | ||||||
7 | Department, the registry, and the county in which the tax lien | ||||||
8 | was previously filed. The information contained on the registry | ||||||
9 | shall be controlling, and the registry shall supersede the | ||||||
10 | records of any county.
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11 | Section 1-30. Registry format. | ||||||
12 | (a) The Department shall maintain notices of tax liens | ||||||
13 | filed in the registry after the effective date of this Act in | ||||||
14 | its information management system in a form that permits the | ||||||
15 | information to be readily accessible in an electronic form | ||||||
16 | through the Internet and to be reduced to printed form. The | ||||||
17 | electronic and printed form shall include the following | ||||||
18 | information: | ||||||
19 | (1) the name of the taxpayer; | ||||||
20 | (2) the name and address of the Department; | ||||||
21 | (3) the tax lien number assigned to the lien by the | ||||||
22 | Department; | ||||||
23 | (4) the amount of the taxes, penalties, interest, and | ||||||
24 | fees indicated due on the notice of tax lien received from | ||||||
25 | the Department; and |
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1 | (5) the date and time of filing. | ||||||
2 | (b) Information in the registry shall be searchable by name | ||||||
3 | of debtor or by tax lien number. The Department shall not | ||||||
4 | charge for access to information in the registry. | ||||||
5 | (c) The Department is authorized to sell at bulk the | ||||||
6 | information appearing on the tax lien registry. In selling the | ||||||
7 | information, the Department shall adopt rules governing the | ||||||
8 | process by which the information will be sold and the media or | ||||||
9 | method by which it will be available to the purchaser and shall | ||||||
10 | set a price for the information that will at least cover the | ||||||
11 | cost of producing the information. The proceeds from the sale | ||||||
12 | of bulk information shall be retained by the Department and | ||||||
13 | used to cover its cost to produce the information sold and to | ||||||
14 | maintain the registry. | ||||||
15 | (d) Registry information, whether accessed by name of | ||||||
16 | debtor or by tax lien number at no charge, through a bulk sale | ||||||
17 | of information, or by other means, shall not be used for | ||||||
18 | survey, marketing, or solicitation purposes. Survey, marketing | ||||||
19 | or, solicitation purpose does not include any action by the | ||||||
20 | Department or its authorized agent to collect a debt | ||||||
21 | represented by a tax lien appearing in the registry. The | ||||||
22 | Attorney General may bring an action in any court of competent | ||||||
23 | jurisdiction to enjoin the unlawful use of registry information | ||||||
24 | for survey, marketing, or solicitation purposes and to recover | ||||||
25 | the cost of such action, including reasonable attorney's fees.
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1 | Section 1-35. Rulemaking. The Department may adopt rules in | ||||||
2 | accordance with the Illinois Administrative Procedure Act to | ||||||
3 | enforce the provisions of this Act.
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4 | Section 1-40. Conflicts. In the event of conflict between
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5 | this Act and any other law, this Act shall control.
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6 | ARTICLE 5. AMENDATORY PROVISIONS | ||||||
7 | Section 5-5. The Illinois Income Tax Act is amended by | ||||||
8 | changing Sections 1102, 1103, and 1105 as follows:
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9 | (35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
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10 | Sec. 1102. Jeopardy Assessments.
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11 | (a) Jeopardy assessment and lien.
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12 | (1) Assessment. If the Department finds that a taxpayer | ||||||
13 | is about to
depart from the State, or to conceal himself or | ||||||
14 | his property, or to do any
other act tending to prejudice | ||||||
15 | or to render wholly or partly ineffectual
proceedings to | ||||||
16 | collect any amount of tax or penalties imposed under this
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17 | Act unless court proceedings are brought without delay, or | ||||||
18 | if the
Department finds that the collection of such amount | ||||||
19 | will be jeopardized by
delay, the Department shall give the | ||||||
20 | taxpayer notice of such findings and
shall make demand for | ||||||
21 | immediate return and payment of such amount,
whereupon such | ||||||
22 | amount shall be deemed assessed and shall become |
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1 | immediately
due and payable.
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2 | (2) Filing of lien. If the taxpayer, within 5 days | ||||||
3 | after such notice
(or within such extension of time as the | ||||||
4 | Department may grant), does not
comply with such notice or | ||||||
5 | show to the Department that the findings in such
notice are | ||||||
6 | erroneous, the Department may file a notice of jeopardy
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7 | assessment lien in the Uniform State Tax Lien Registry | ||||||
8 | office of the recorder of the county in
which any property | ||||||
9 | of the taxpayer may be located and shall notify the
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10 | taxpayer of such filing. Such jeopardy assessment lien | ||||||
11 | shall have the same
scope and effect as a statutory lien | ||||||
12 | under this Act.
The taxpayer is liable for any | ||||||
13 | administrative fee imposed by the Department by rule in | ||||||
14 | connection with the Uniform State Tax Lien Registry the | ||||||
15 | filing fee incurred by the Department for
filing the lien | ||||||
16 | and the filing fee incurred by the Department to file the
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17 | release of that lien . The filing fees shall be paid to the | ||||||
18 | Department in
addition to payment of the tax, penalty, and | ||||||
19 | interest included in the amount of
the lien.
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20 | (b) Termination of taxable year. In the case of a tax for a | ||||||
21 | current
taxable year, the Director shall declare the taxable | ||||||
22 | period of the taxpayer
immediately terminated and his notice | ||||||
23 | and demand for a return and immediate
payment of the tax shall | ||||||
24 | relate to the period declared terminated,
including therein | ||||||
25 | income accrued and deductions incurred up to the date of
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26 | termination if not otherwise properly includible or deductible |
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1 | in respect
of such taxable year.
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2 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
3 | some or
all of the amount for which the jeopardy assessment | ||||||
4 | lien against him has
been filed, or that no jeopardy to the | ||||||
5 | revenue in fact exists, he may
protest within 20 days after | ||||||
6 | being notified by the Department of the filing
of such jeopardy | ||||||
7 | assessment lien and request a hearing, whereupon the
Department | ||||||
8 | shall hold a hearing in conformity with the provisions of
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9 | section 908 and, pursuant thereto, shall notify the taxpayer of | ||||||
10 | its
decision as to whether or not such jeopardy assessment lien | ||||||
11 | will be
released.
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12 | (Source: P.A. 92-826, eff. 1-1-03.)
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13 | (35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
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14 | Sec. 1103. Filing and Priority of Liens.
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15 | (a) Filing in the Uniform State Tax Lien Registry with | ||||||
16 | Recorder .
Nothing in this Article shall be construed
to give | ||||||
17 | the Department a preference over the rights of any bona fide
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18 | purchaser, holder of a security interest, mechanics lienor, | ||||||
19 | mortgagee,
or judgment lien creditor arising prior
to the | ||||||
20 | filing of a regular notice of lien or a notice of jeopardy
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21 | assessment lien in the Uniform State Tax Lien Registry office | ||||||
22 | of the recorder in the county in
which the property subject to | ||||||
23 | the lien is located . For purposes of this
Section section , the | ||||||
24 | term "bona fide," shall not include any mortgage of real or
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25 | personal property or any other credit transaction that results |
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1 | in the
mortgagee or the holder of the security acting as | ||||||
2 | trustee for unsecured
creditors of the taxpayer mentioned in | ||||||
3 | the notice of lien who executed such
chattel or real property | ||||||
4 | mortgage or the document evidencing such credit
transaction. | ||||||
5 | Such lien shall be inferior to the lien of general taxes,
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6 | special assessments and special taxes heretofore or hereafter | ||||||
7 | levied by any
political subdivision of this State.
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8 | (b) Filing in the Uniform State Tax Lien Registry with | ||||||
9 | Registrar . In case title to land to be affected by
the notice | ||||||
10 | of lien or notice of jeopardy assessment lien is registered
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11 | under the provisions of "An Act concerning land titles," | ||||||
12 | approved May 1,
1897, as amended, such notice shall also be | ||||||
13 | filed in the Uniform State Tax Lien Registry office of the
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14 | Registrar of Titles of the county within which the property | ||||||
15 | subject to the
lien is situated and shall be entered upon the | ||||||
16 | register of titles as a
memorial of charge upon each folium of | ||||||
17 | the register of titles affected by
such notice , and the | ||||||
18 | Department shall not have a preference over the rights
of any | ||||||
19 | bona fide purchaser, mortgagee, judgment creditor or other lien
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20 | holder arising prior to the registration of such notice.
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21 | (c) Index. The Department of Revenue shall maintain a State | ||||||
22 | Tax Lien Index of all tax liens filed in the Uniform State Tax | ||||||
23 | Lien Registry as provided for by the Uniform State Tax Lien | ||||||
24 | Registration Act. The recorder of each county shall procure a | ||||||
25 | file
labeled "State Tax Lien Notices" and an index book labeled | ||||||
26 | "State Tax Lien
Index." When notice of any lien or jeopardy |
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1 | assessment lien is presented to
him for filing, he shall file | ||||||
2 | it in numerical order in the file and shall
enter it | ||||||
3 | alphabetically in the index. The entry shall show the name and
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4 | last known address of the person named in the notice, the | ||||||
5 | serial number of
the notice, the date and hour of filing, | ||||||
6 | whether it is a regular lien or a
jeopardy assessment lien, and | ||||||
7 | the amount of tax and penalty due and unpaid,
plus the amount | ||||||
8 | of interest due at the time when the notice of lien or
jeopardy | ||||||
9 | assessment is filed.
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10 | (d) (Blank). No recorder or registrar of titles of any | ||||||
11 | county shall require
that the Department pay any costs or fees | ||||||
12 | in connection with recordation of
any notice or other document | ||||||
13 | filed by the Department under this Act at the
time such notice | ||||||
14 | or other document is presented for recordation. The
recorder or | ||||||
15 | registrar of each county, in order to receive payment for fees
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16 | or costs incurred by the Department, shall present the | ||||||
17 | Department with
monthly statements indicating the amount of | ||||||
18 | fees and costs incurred by the
Department and for which no | ||||||
19 | payment has been received.
This amendatory Act of 1987 applies | ||||||
20 | to all liens heretofore or hereafter filed.
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21 | (e) The taxpayer is liable for any the filing fees imposed | ||||||
22 | fee incurred by the Department
for filing the lien in the | ||||||
23 | Uniform State Tax Lien Registry and any the filing fees imposed | ||||||
24 | fee incurred by the Department for to file the
release of that | ||||||
25 | lien. The filing fees shall be paid to the Department in
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26 | addition to payment of the tax, penalty, and interest included |
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1 | in the amount of
the lien.
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2 | (Source: P.A. 92-826, eff. 1-1-03.)
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3 | (35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
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4 | Sec. 1105. Release of Liens.
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5 | (a) In general.
Upon payment by the taxpayer to the | ||||||
6 | Department in cash or by guaranteed
remittance of an amount | ||||||
7 | representing the filing fees and charges for the lien
and the | ||||||
8 | filing fees and charges for the release of that lien,
the | ||||||
9 | Department shall release all or any portion of
the property | ||||||
10 | subject to any lien provided for in this Act
and file that | ||||||
11 | complete or partial release of lien in the Uniform State Tax | ||||||
12 | Lien Registry with the recorder of the
county where that lien | ||||||
13 | was filed
if it determines
that the release will not endanger | ||||||
14 | or jeopardize the collection of the
amount secured thereby.
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15 | (b) Judicial determination. If on judicial review the final | ||||||
16 | judgment
of the court is that the taxpayer does not owe some or | ||||||
17 | all of the amount
secured by the lien against him, or that no | ||||||
18 | jeopardy to the revenue exists,
the Department shall release | ||||||
19 | its lien to the extent of such finding of
nonliability, or to | ||||||
20 | the extent of such finding of no jeopardy to the
revenue.
The | ||||||
21 | taxpayer shall, however, be liable for the filing fee imposed | ||||||
22 | paid by the
Department to file the lien and the filing fee | ||||||
23 | imposed to release required to file a release of
the lien. The | ||||||
24 | filing fees shall be paid to the Department.
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25 | (c) Payment. The Department shall also release its jeopardy
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1 | assessment lien against the taxpayer whenever the tax and | ||||||
2 | penalty covered
by such lien, plus any interest which may be | ||||||
3 | due
and an amount representing the filing fee to file the lien | ||||||
4 | and the filing fee
imposed to release required to file a | ||||||
5 | release of that lien, are paid
by the taxpayer to the | ||||||
6 | Department in cash or by guaranteed remittance.
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7 | (d) Certificate of release. The Department shall issue a | ||||||
8 | certificate
of complete or partial release of the lien
upon | ||||||
9 | payment by the taxpayer to the Department in cash or by | ||||||
10 | guaranteed
remittance of an amount representing the filing fee | ||||||
11 | imposed paid by the Department to
file the lien and the filing | ||||||
12 | fee imposed to release required to file the release of that | ||||||
13 | lien:
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14 | (1) to the extent that the fair market value of any | ||||||
15 | property subject to
the lien exceeds the amount of the lien | ||||||
16 | plus the amount of all prior liens
upon such property;
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17 | (2) to the extent that such lien shall become | ||||||
18 | unenforceable;
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19 | (3) to the extent that the amount of such lien is paid | ||||||
20 | by the person
whose property is subject to such lien, | ||||||
21 | together with any interest and penalty
which
may become due | ||||||
22 | under this Act between the date when the notice of lien is
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23 | filed and the date when the amount of such lien is paid;
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24 | (4) to the extent that there is furnished to the | ||||||
25 | Department on a form to
be approved and with a surety or | ||||||
26 | sureties satisfactory to the Department a
bond that is |
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1 | conditioned upon the payment of the amount of such lien,
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2 | together with any interest which may become due under this | ||||||
3 | Act after the
notice of lien is filed, but before the | ||||||
4 | amount thereof is fully paid;
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5 | (5) to the extent and under the circumstances specified | ||||||
6 | in this Section.
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7 | A certificate of complete or partial release of any lien | ||||||
8 | shall be held
conclusive that the lien upon the property | ||||||
9 | covered by the certificate is
extinguished to the extent | ||||||
10 | indicated by such certificate.
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11 | Such release of lien shall be issued to the person, or his | ||||||
12 | agent, against
whom the lien was obtained and shall contain in | ||||||
13 | legible letters a statement as
follows:
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14 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
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15 | BE FILED IN THE UNIFORM TAX LIEN REGISTRY WITH THE | ||||||
16 | RECORDER OR THE REGISTRAR
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17 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
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18 | (e) Filing. When a certificate of complete or partial | ||||||
19 | release of lien
issued by the Department is filed in the | ||||||
20 | Uniform Tax Lien Registry, the Department presented for filing | ||||||
21 | in the office of the
recorder or Registrar of Titles where a | ||||||
22 | notice of lien or notice
of jeopardy assessment lien was filed:
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23 | (1) the recorder, in the case of nonregistered | ||||||
24 | property, shall
permanently attach the certificate of | ||||||
25 | release to the notice of lien or
notice of jeopardy | ||||||
26 | assessment lien and shall enter the certificate of
release |
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1 | and the date in the "State Tax Lien Index" on the line | ||||||
2 | where the
notice of lien or notice of jeopardy assessment | ||||||
3 | lien is entered . ; and
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4 | (2) in the case of registered property, the Registrar | ||||||
5 | of Titles shall
file and enter upon each folium of the | ||||||
6 | register of titles affected thereby
a memorial of the | ||||||
7 | certificate of release which memorial when so entered
shall | ||||||
8 | act as a release pro tanto of any memorial of such notice | ||||||
9 | of lien or
notice of jeopardy assessment lien previously | ||||||
10 | filed and registered.
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11 | (Source: P.A. 92-826, eff. 1-1-03.)
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12 | Section 5-10. The Retailers' Occupation Tax Act is amended | ||||||
13 | by changing Sections 5a, 5b, and 5c as follows:
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14 | (35 ILCS 120/5a) (from Ch. 120, par. 444a)
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15 | Sec. 5a.
The Department shall have a lien for the tax | ||||||
16 | herein imposed or any
portion thereof, or for any penalty | ||||||
17 | provided for in this Act, or for any
amount of interest which | ||||||
18 | may be due as provided for in Section 5 of this
Act, upon all | ||||||
19 | the real and personal property of any person to whom a
final | ||||||
20 | assessment or revised final assessment has been issued as | ||||||
21 | provided in
this Act, or whenever a return is filed without | ||||||
22 | payment of the tax or
penalty shown therein to be due, | ||||||
23 | including all such property of such
persons acquired after | ||||||
24 | receipt of such assessment or filing of such return.
The |
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1 | taxpayer is liable for the filing fee imposed incurred by the | ||||||
2 | Department for
filing the lien and the filing fee imposed | ||||||
3 | incurred by the Department to file the
release the of that | ||||||
4 | lien. The filing fees shall be paid to the Department in
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5 | addition to payment of the tax, penalty, and interest included | ||||||
6 | in the amount of
the lien.
| ||||||
7 | However, where the lien arises because of the issuance of a | ||||||
8 | final
assessment or revised final assessment by the Department, | ||||||
9 | such lien shall
not attach and the notice hereinafter referred | ||||||
10 | to in this Section shall not
be filed until all proceedings in | ||||||
11 | court for review of such final assessment
or revised final | ||||||
12 | assessment have terminated or the time for the taking
thereof | ||||||
13 | has expired without such proceedings being instituted.
| ||||||
14 | Upon the granting of a rehearing or departmental review | ||||||
15 | pursuant to
Section 4 or Section 5 of this Act after a lien has | ||||||
16 | attached, such lien
shall remain in full force except to the | ||||||
17 | extent to which the final
assessment may be reduced by a | ||||||
18 | revised final assessment following such
rehearing or review.
| ||||||
19 | The lien created by the issuance of a final assessment | ||||||
20 | shall terminate
unless a notice of lien is filed, as provided | ||||||
21 | in Section 5b hereof,
within 3 years from the date all | ||||||
22 | proceedings in court for the review of
such final assessment | ||||||
23 | have terminated or the time for the taking thereof
has expired | ||||||
24 | without such proceedings being instituted, or (in the case of a
| ||||||
25 | revised final assessment issued pursuant to a rehearing or | ||||||
26 | departmental
review) within 3 years from the date all |
| |||||||
| |||||||
1 | proceedings in court for the
review of such revised final | ||||||
2 | assessment have terminated or the time for the
taking thereof | ||||||
3 | has expired without such proceedings being instituted; and
| ||||||
4 | where the lien results from the filing of a return without | ||||||
5 | payment of the
tax or penalty shown therein to be due, the lien | ||||||
6 | shall terminate unless a
notice of lien is filed, as provided | ||||||
7 | in Section 5b hereof, within 3 years
from the date when such | ||||||
8 | return is filed with the Department: Provided that
the time | ||||||
9 | limitation period on the Department's right to file a notice of
| ||||||
10 | lien shall not run (1) during any period of time in which the | ||||||
11 | order of any
court has the effect of enjoining or restraining | ||||||
12 | the Department from filing
such notice of lien, or (2) during | ||||||
13 | the term of a repayment plan that taxpayer has entered into | ||||||
14 | with the Department, as long as taxpayer remains in compliance | ||||||
15 | with the terms of the repayment plan.
| ||||||
16 | If the Department finds that a taxpayer is about to depart | ||||||
17 | from the
State, or to conceal himself or his property, or to do | ||||||
18 | any other act
tending to prejudice or to render wholly or | ||||||
19 | partly ineffectual proceedings
to collect such tax unless such | ||||||
20 | proceedings are brought without delay, or
if the Department | ||||||
21 | finds that the collection of the amount due from any
taxpayer | ||||||
22 | will be jeopardized by delay, the Department shall give the
| ||||||
23 | taxpayer notice of such findings and shall make demand for | ||||||
24 | immediate return
and payment of such tax, whereupon such tax | ||||||
25 | shall become immediately due
and payable. If the taxpayer, | ||||||
26 | within 5 days after such notice (or within
such extension of |
| |||||||
| |||||||
1 | time as the Department may grant), does not comply with
such | ||||||
2 | notice or show to the Department that the findings in such | ||||||
3 | notice are
erroneous, the Department may file a notice of | ||||||
4 | jeopardy assessment lien in
the Uniform State Tax Lien Registry | ||||||
5 | office of the recorder of the county in which any property of
| ||||||
6 | the taxpayer may be located and shall notify the taxpayer of | ||||||
7 | such filing.
Such jeopardy assessment lien shall have the same | ||||||
8 | scope and effect as the
statutory lien hereinbefore provided | ||||||
9 | for in this Section.
| ||||||
10 | If the taxpayer believes that he does not owe some or all | ||||||
11 | of the tax for
which the jeopardy assessment lien against him | ||||||
12 | has been filed, or that no
jeopardy to the revenue in fact | ||||||
13 | exists, he may protest within 20 days after
being notified by | ||||||
14 | the Department of the filing of such jeopardy assessment
lien | ||||||
15 | and request a hearing, whereupon the Department shall hold a | ||||||
16 | hearing
in conformity with the provisions of this Act and, | ||||||
17 | pursuant thereto, shall
notify the taxpayer of its findings as | ||||||
18 | to whether or not such jeopardy
assessment lien will be | ||||||
19 | released. If not, and if the taxpayer is aggrieved
by this | ||||||
20 | decision, he may file an action for judicial review
of such | ||||||
21 | final
determination of the Department in accordance with | ||||||
22 | Section 12 of this Act
and the Administrative Review Law. | ||||||
23 | On and after July 1, 2013, protests concerning matters that | ||||||
24 | are subject to the jurisdiction of the Illinois Independent Tax | ||||||
25 | Tribunal shall be filed with the Tribunal, and hearings on | ||||||
26 | those matters shall be held before the Tribunal in accordance |
| |||||||
| |||||||
1 | with the Illinois Independent Tax Tribunal Act of 2012. The | ||||||
2 | Tribunal shall
notify the taxpayer of its findings as to | ||||||
3 | whether or not such jeopardy
assessment lien will be released. | ||||||
4 | If not, and if the taxpayer is aggrieved
by this decision, he | ||||||
5 | may file an action for judicial review
of such final
| ||||||
6 | determination of the Department in accordance with Section 12 | ||||||
7 | of this Act
and the Illinois Independent Tax Tribunal Act of | ||||||
8 | 2012. | ||||||
9 | With respect to protests filed with the Department prior to | ||||||
10 | July 1, 2013 that would otherwise be subject to the | ||||||
11 | jurisdiction of the Illinois Independent Tax Tribunal, the | ||||||
12 | taxpayer may elect to be subject to the provisions of the | ||||||
13 | Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||||||
14 | after July 1, 2013, but not later than 30 days after the date | ||||||
15 | on which the protest was filed. If made, the election shall be | ||||||
16 | irrevocable.
| ||||||
17 | If, pursuant to such hearing (or after an independent | ||||||
18 | determination of
the facts by the Department without a | ||||||
19 | hearing), the Department or the Tribunal determines
that some | ||||||
20 | or all of the tax covered by the jeopardy assessment lien is | ||||||
21 | not
owed by the taxpayer, or that no jeopardy to the revenue | ||||||
22 | exists, or if on
judicial review the final judgment of the | ||||||
23 | court is that the taxpayer does
not owe some or all of the tax | ||||||
24 | covered by the jeopardy assessment lien
against him, or that no | ||||||
25 | jeopardy to the revenue exists, the Department
shall release | ||||||
26 | its jeopardy assessment lien to the extent of such finding of
|
| |||||||
| |||||||
1 | nonliability for the tax, or to the extent of such finding of | ||||||
2 | no jeopardy
to the revenue.
| ||||||
3 | The Department shall also release its jeopardy assessment | ||||||
4 | lien against
the taxpayer whenever the tax and penalty covered | ||||||
5 | by such lien, plus any
interest which may be due, are paid
and | ||||||
6 | the taxpayer has paid the Department in cash or by guaranteed | ||||||
7 | remittance
an amount representing the filing fee for the lien | ||||||
8 | and the filing fee for the
release of that lien. The Department | ||||||
9 | shall file that release of lien in the Uniform State Tax Lien | ||||||
10 | Registry with the
recorder of the county where that lien was | ||||||
11 | filed .
| ||||||
12 | Nothing in this Section shall be construed to give the | ||||||
13 | Department a
preference over the rights of any bona fide | ||||||
14 | purchaser, holder of a
security interest, mechanics | ||||||
15 | lienholder, mortgagee, or judgment lien
creditor arising prior | ||||||
16 | to the filing of a regular
notice of lien or a notice of | ||||||
17 | jeopardy assessment lien in the Uniform State Tax Lien Registry | ||||||
18 | office of the
recorder in the county in which the property | ||||||
19 | subject to the lien
is located : Provided, however, that the | ||||||
20 | word "bona fide", as used in this
Section shall not include any | ||||||
21 | mortgage of real or personal property or any
other credit | ||||||
22 | transaction that results in the mortgagee or the holder of the
| ||||||
23 | security acting as trustee for unsecured creditors of the | ||||||
24 | taxpayer
mentioned in the notice of lien who executed such | ||||||
25 | chattel or real property
mortgage or the document evidencing | ||||||
26 | such credit transaction. Such lien
shall be inferior to the |
| |||||||
| |||||||
1 | lien of general taxes, special assessments and
special taxes | ||||||
2 | heretofore or hereafter levied by any political subdivision
of | ||||||
3 | this State.
| ||||||
4 | In case title to land to be affected by the notice of lien | ||||||
5 | or notice of
jeopardy assessment lien is registered under the | ||||||
6 | provisions of "An Act
concerning land titles", approved May 1, | ||||||
7 | 1897, as amended, such notice
shall also be filed in the | ||||||
8 | Uniform State Tax Lien Registry office of the Registrar of | ||||||
9 | Titles of the county
within which the property subject to the | ||||||
10 | lien is situated and shall be
entered upon the register of | ||||||
11 | titles as a memorial or charge upon each
folium of the register | ||||||
12 | of titles affected by such notice , and the
Department shall not | ||||||
13 | have a preference over the rights of any bona fide
purchaser, | ||||||
14 | mortgagee, judgment creditor or other lien holder arising prior
| ||||||
15 | to the registration of such notice: Provided, however, that the | ||||||
16 | word "bona
fide" shall not include any mortgage of real or | ||||||
17 | personal property or any
other credit transaction that results | ||||||
18 | in the mortgagee or the holder of the
security acting as | ||||||
19 | trustee for unsecured creditors of the taxpayer
mentioned in | ||||||
20 | the notice of lien who executed such chattel or real property
| ||||||
21 | mortgage or the document evidencing such credit transaction.
| ||||||
22 | Such regular lien or jeopardy assessment lien shall not be | ||||||
23 | effective
against any purchaser with respect to any item in a | ||||||
24 | retailer's stock in
trade purchased from the retailer in the | ||||||
25 | usual course of such retailer's
business.
| ||||||
26 | (Source: P.A. 97-1129, eff. 8-28-12; 98-446, eff. 8-16-13.)
|
| |||||||
| |||||||
1 | (35 ILCS 120/5b) (from Ch. 120, par. 444b)
| ||||||
2 | Sec. 5b. State Tax Lien Index. The Department of Revenue | ||||||
3 | shall maintain a State Tax Lien Index of all tax liens filed in | ||||||
4 | the Uniform State Tax Lien Registry as provided for by the | ||||||
5 | Uniform State Tax Lien Registration Act. The recorder of each | ||||||
6 | county shall procure a file labeled
"State Tax Lien Notices" | ||||||
7 | and an index book labeled "State Tax Lien Index".
When notice | ||||||
8 | of any lien or jeopardy assessment lien is presented to him for
| ||||||
9 | filing, he shall file it in numerical order in the file and | ||||||
10 | shall enter it
alphabetically in the index. The entry shall | ||||||
11 | show the name and last known
business address of the person | ||||||
12 | named in the notice, the serial number of
the notice, the date | ||||||
13 | and hour of filing, whether it is a regular lien or a
jeopardy | ||||||
14 | assessment lien, and the amount of tax and penalty due and | ||||||
15 | unpaid,
plus the amount of interest due under Section 5 of this | ||||||
16 | Act at the time
when the notice of lien or jeopardy assessment | ||||||
17 | lien is filed.
| ||||||
18 | No recorder or registrar of titles of any county shall | ||||||
19 | require that the
Department pay any costs or fees in connection | ||||||
20 | with recordation of any
notice or other document filed by the | ||||||
21 | Department under this Act at the time
such notice or other | ||||||
22 | document is presented for recordation. The recorder or
| ||||||
23 | registrar of each county, in order to receive payment for fees | ||||||
24 | or costs
incurred by the Department, shall present the | ||||||
25 | Department with monthly
statements indicating the amount of |
| |||||||
| |||||||
1 | fees and costs incurred by the
Department and for which no | ||||||
2 | payment has been received.
| ||||||
3 | A notice of lien may be filed after the issuance of a | ||||||
4 | revised final
assessment pursuant to a rehearing or | ||||||
5 | departmental review under Section 4
or Section 5 of this Act.
| ||||||
6 | When the lien obtained pursuant to this Act has been | ||||||
7 | satisfied
and the taxpayer has paid the Department in cash or | ||||||
8 | by guaranteed remittance
an amount representing the filing fee | ||||||
9 | for the lien and the filing fee for the
release of that lien,
| ||||||
10 | the Department shall issue a release
of lien and file that | ||||||
11 | release of lien in the Uniform State Tax Lien Registry with the | ||||||
12 | recorder of the county where
that lien was filed . The release | ||||||
13 | of lien shall contain in legible letters a
statement as
| ||||||
14 | follows:
| ||||||
15 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
16 | BE FILED IN THE UNIFORM STATE TAX LIEN REGISTRY WITH THE | ||||||
17 | RECORDER OR THE REGISTRAR
| ||||||
18 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||||||
19 | When a certificate of complete or partial release of lien | ||||||
20 | issued by the
Department is filed in the Uniform State Tax Lien | ||||||
21 | Registry, the Department of Revenue presented for filing in the | ||||||
22 | office of the recorder
or Registrar of Titles where a notice of | ||||||
23 | lien or notice of jeopardy
assessment lien was filed, the | ||||||
24 | recorder, in the case of nonregistered
property, shall | ||||||
25 | permanently attach the certificate of release to the notice
of | ||||||
26 | lien or notice of jeopardy assessment lien and shall enter the
|
| |||||||
| |||||||
1 | certificate of release and the date in the "State Tax Lien | ||||||
2 | Index" on the
line where the notice of lien or notice of | ||||||
3 | jeopardy assessment lien is
entered.
| ||||||
4 | In the case of registered property, the Registrar of Titles | ||||||
5 | shall file
and enter upon each folium of the register of titles | ||||||
6 | affected thereby a
memorial of the certificate of release which | ||||||
7 | memorial when so entered shall
act as a release pro tanto of | ||||||
8 | any memorial of such notice of lien or notice
of jeopardy | ||||||
9 | assessment lien previously filed and registered.
| ||||||
10 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
11 | (35 ILCS 120/5c) (from Ch. 120, par. 444c)
| ||||||
12 | Sec. 5c.
Upon payment by the taxpayer to the Department in | ||||||
13 | cash or by guaranteed
remittance of an amount representing the | ||||||
14 | filing fee for the lien and the filing
fee for the release of | ||||||
15 | that lien,
the Department shall issue a certificate of complete | ||||||
16 | or partial
release of the lien
and file that complete or | ||||||
17 | partial release of lien in the Uniform State Tax Lien Registry | ||||||
18 | with the recorder of the
county where the lien was filed :
| ||||||
19 | (a) to the extent that the fair market value of any | ||||||
20 | property subject to
the lien exceeds the amount of the lien | ||||||
21 | plus the amount of all prior liens
upon such property;
| ||||||
22 | (b) to the extent that such lien shall become | ||||||
23 | unenforceable;
| ||||||
24 | (c) to the extent that the amount of such lien is paid | ||||||
25 | by the retailer
whose property is subject to such lien, |
| |||||||
| |||||||
1 | together with any interest which
may become due under | ||||||
2 | Section 5 of this Act between the date when the notice
of | ||||||
3 | lien is filed and the date when the amount of such lien is | ||||||
4 | paid;
| ||||||
5 | (d) to the extent that there is furnished to the | ||||||
6 | Department on a form to
be approved and with a surety or | ||||||
7 | sureties satisfactory to the Department a
bond that is | ||||||
8 | conditioned upon the payment of the amount of such lien,
| ||||||
9 | together with any interest which may become due under | ||||||
10 | Section 5 of this
Act after the notice of lien is filed, | ||||||
11 | but before the amount thereof is
fully paid;
| ||||||
12 | (e) to the extent and under the circumstances specified | ||||||
13 | in Section 5a of
this Act in the case of jeopardy | ||||||
14 | assessment liens;
| ||||||
15 | (f) to the extent to which an assessment is reduced | ||||||
16 | pursuant to a
rehearing or departmental review under | ||||||
17 | Section 4 or Section 5 of this
Act.
| ||||||
18 | A certificate of complete or partial release of any lien | ||||||
19 | shall be held
conclusive that the lien upon the property | ||||||
20 | covered by the certificate is
extinguished to the extent | ||||||
21 | indicated by such certificate.
| ||||||
22 | (Source: P.A. 92-826, eff. 1-1-03.)
| ||||||
23 | Section 5-15. The Cannabis and Controlled Substances Tax | ||||||
24 | Act is amended by changing Sections 16, 17, and 19 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 520/16) (from Ch. 120, par. 2166)
| ||||||
2 | Sec. 16. All assessments are Jeopardy Assessments - lien.
| ||||||
3 | (a) Assessment. An assessment for a dealer not possessing | ||||||
4 | valid stamps
or other official indicia showing that the tax has | ||||||
5 | been paid shall be
considered a jeopardy assessment or | ||||||
6 | collection, as provided by Section 1102
of the Illinois Income | ||||||
7 | Tax Act. The Department shall determine and assess
a tax and | ||||||
8 | applicable penalties and interest according to the best | ||||||
9 | judgment
and information available to the Department, which | ||||||
10 | amount so fixed by the
Department shall be prima facie correct | ||||||
11 | and shall be prima facie evidence
of the correctness of the | ||||||
12 | amount of tax due, as shown in such determination.
When, | ||||||
13 | according to the best judgment and information available to the
| ||||||
14 | Department with regard to all real and personal property and | ||||||
15 | rights to property
of the dealer, there is no reasonable | ||||||
16 | expectation of collection of the amount
of tax and penalty to | ||||||
17 | be assessed, the Department may issue an assessment under
this | ||||||
18 | Section for the amount of tax without penalty.
| ||||||
19 | (b) Filing of Lien. Upon issuance of a jeopardy assessment | ||||||
20 | as
provided by subsection (a) of this Section, the Department | ||||||
21 | may file a
notice of jeopardy assessment lien in the Uniform | ||||||
22 | Tax Lien Registry office of the recorder of the
county in which | ||||||
23 | any property of the taxpayer may be located and shall
notify | ||||||
24 | the taxpayer of such filing.
| ||||||
25 | (c) Protest. If the taxpayer believes that he does not owe | ||||||
26 | some or all
of the amount for which the jeopardy assessment |
| |||||||
| |||||||
1 | lien against him has been
filed, he may protest within 20 days | ||||||
2 | after being notified by the
Department of the filing of such | ||||||
3 | jeopardy assessment lien and request a
hearing, whereupon the | ||||||
4 | Department shall hold a hearing in conformity with
the | ||||||
5 | provisions of Section 908 of the Illinois Income Tax Act and, | ||||||
6 | pursuant
thereto, shall notify the taxpayer of its decision as | ||||||
7 | to whether or not such
jeopardy assessment lien will be | ||||||
8 | released.
| ||||||
9 | After the expiration of the period within which the person | ||||||
10 | assessed may
file an action for judicial review
without such | ||||||
11 | action being filed, a certified copy of the final assessment
or | ||||||
12 | revised final assessment of the Department may be filed with | ||||||
13 | the Circuit
Court of the county in which the dealer resides, or | ||||||
14 | of Cook County in the
case of a dealer who does not reside in | ||||||
15 | this State, or in the county where
the violation of this Act | ||||||
16 | took place.
The certified copy of the final assessment or | ||||||
17 | revised final assessment
shall be accompanied by a | ||||||
18 | certification which recites facts that are
sufficient to show | ||||||
19 | that the Department complied with the jurisdictional
| ||||||
20 | requirements of the Act in arriving at its final assessment or | ||||||
21 | its revised
final assessment and that the dealer had this | ||||||
22 | opportunity for an
administrative hearing and for judicial | ||||||
23 | review, whether he availed himself
or herself of either or both | ||||||
24 | of these opportunities or not. If the court
is satisfied that | ||||||
25 | the Department complied with the
jurisdictional requirements | ||||||
26 | of the Act in arriving at its final assessment or
its revised |
| |||||||
| |||||||
1 | final assessment and that the taxpayer had his opportunity for
| ||||||
2 | an administrative hearing and for judicial review, whether he | ||||||
3 | availed
himself of either or both of these opportunities or | ||||||
4 | not, the court shall
render judgment in favor of the Department | ||||||
5 | and against the taxpayer for
the amount shown to be due by the | ||||||
6 | final assessment or the revised final
assessment, plus any | ||||||
7 | interest which may be due, and such judgment shall be
entered | ||||||
8 | in the judgment docket of the court. Such judgment shall bear | ||||||
9 | the
same rate of interest and shall have the same effect as | ||||||
10 | other judgments.
The judgment may be enforced, and all laws | ||||||
11 | applicable to sales for the
enforcement of a judgment shall be | ||||||
12 | applicable to sales made under such
judgments. The Department | ||||||
13 | shall file the certified copy of its assessment,
as herein | ||||||
14 | provided, with the Circuit Court within 2 years after such
| ||||||
15 | assessment becomes final except when the taxpayer consents in | ||||||
16 | writing to an
extension of such filing period, and except that | ||||||
17 | the time limitation period
on the Department's right to file | ||||||
18 | the certified copy of its assessment with
the Circuit Court | ||||||
19 | shall not run during any period of time in which the
order of | ||||||
20 | any court has the effect of enjoining or restraining the
| ||||||
21 | Department from filing such certified copy of its assessment | ||||||
22 | with the
Circuit Court.
| ||||||
23 | If, when the cause of action for a proceeding in court | ||||||
24 | accrues against a
person, he or she is out of the State, the | ||||||
25 | action may be commenced within
the times herein limited, after | ||||||
26 | his or her coming into or returning to the
State; and if, after |
| |||||||
| |||||||
1 | the cause of action accrues, he or she departs from
and remains | ||||||
2 | out of the State, the time of his or her absence from the
| ||||||
3 | State, the time of his or her absence is no part of the time | ||||||
4 | limited for
the commencement of the action; but the foregoing | ||||||
5 | provisions concerning
absence from the State shall not apply to | ||||||
6 | any case in which, at the time
the cause of action accrues, the | ||||||
7 | party against whom the cause of action
accrues is not a | ||||||
8 | resident of this State. The time within which a court
action is | ||||||
9 | to be commenced by the Department hereunder shall
not run from | ||||||
10 | the
date the taxpayer files a petition in bankruptcy under the | ||||||
11 | Federal
Bankruptcy Act until 30 days after notice of | ||||||
12 | termination or expiration of
the automatic stay imposed by the | ||||||
13 | Federal Bankruptcy Act.
| ||||||
14 | No claim shall be filed against the estate of any deceased | ||||||
15 | person or any
person under legal disability for any tax or | ||||||
16 | penalty or part of either, or
interest, except in the manner | ||||||
17 | prescribed and within the time limited by the
Probate Act of | ||||||
18 | 1975, as amended.
| ||||||
19 | The collection of tax or penalty or interest by any means | ||||||
20 | provided for
herein shall not be a bar to any prosecution under | ||||||
21 | this Act.
| ||||||
22 | In addition to any penalty provided for in this Act, any | ||||||
23 | amount of tax
which is not paid when due shall bear interest at | ||||||
24 | the rate determined in
accordance with the Uniform Penalty and | ||||||
25 | Interest Act, per month or fraction
thereof from the date when | ||||||
26 | such tax becomes past due until such tax is paid
or a judgment |
| |||||||
| |||||||
1 | therefor is obtained by the Department. If the time for
making | ||||||
2 | or completing an audit of a taxpayer's books and records is | ||||||
3 | extended
with the taxpayer's consent, at the request of and for | ||||||
4 | the convenience of
the Department, beyond the date on which the | ||||||
5 | statute of limitations upon
the issuance of a notice of tax | ||||||
6 | liability by the Department otherwise run,
no interest shall | ||||||
7 | accrue during the period of such extension. Interest
shall be | ||||||
8 | collected in the same manner and as part of the tax.
| ||||||
9 | If the Department determines that an amount of tax or | ||||||
10 | penalty or interest
was incorrectly assessed, whether as the | ||||||
11 | result of a mistake of fact or an
error of law, the Department | ||||||
12 | shall waive the amount of tax or penalty or
interest that | ||||||
13 | accrued due to the incorrect assessment.
| ||||||
14 | (Source: P.A. 97-1129, eff. 8-28-12.)
| ||||||
15 | (35 ILCS 520/17) (from Ch. 120, par. 2167)
| ||||||
16 | Sec. 17. Filing and Priority of Liens. (a) Filing in the | ||||||
17 | Uniform Tax Lien Registry with Recorder . Nothing in this Act | ||||||
18 | shall be construed
to give the Department a preference over the | ||||||
19 | rights of any bona fide
purchaser, holder of a security | ||||||
20 | interest, mechanics lienholder,
mortgagee, or judgment lien | ||||||
21 | creditor arising prior
to the filing of a regular notice of | ||||||
22 | lien or a notice of jeopardy
assessment lien in the Uniform Tax | ||||||
23 | Lien Registry office of the recorder in the county in
which the | ||||||
24 | property subject to the lien is located . For purposes of this
| ||||||
25 | section, the term "bona fide," shall not include any mortgage |
| |||||||
| |||||||
1 | of real or
personal property or any other credit transaction | ||||||
2 | that results in the
mortgagee or the holder of the security | ||||||
3 | acting as trustee for unsecured
creditors of the taxpayer | ||||||
4 | mentioned in the notice of lien who executed such
chattel or | ||||||
5 | real property mortgage or the document evidencing such credit
| ||||||
6 | transaction. Such lien shall be inferior to the lien of general | ||||||
7 | taxes,
special assessments and special taxes heretofore or | ||||||
8 | hereafter levied by any
political subdivision of this State.
| ||||||
9 | (b) Filing with Registrar. In case title to land to be | ||||||
10 | affected by
the notice of lien or notice of jeopardy assessment | ||||||
11 | lien is registered
under the provisions of "An Act concerning | ||||||
12 | land titles," approved May 1,
1897, as amended, such notice | ||||||
13 | shall also be filed in the Uniform Tax Lien Registry office of | ||||||
14 | the
Registrar of Titles of the county within which the property | ||||||
15 | subject to the
lien is situated and shall be entered upon the | ||||||
16 | register of titles as a
memorial of charge upon each folium of | ||||||
17 | the register of titles affected by
such notice , and the | ||||||
18 | Department shall not have a preference over the rights
of any | ||||||
19 | bona fide purchaser, mortgagee, judgment creditor or other lien
| ||||||
20 | holder arising prior to the registration of such notice.
| ||||||
21 | (c) (Blank). No recorder or registrar of titles of any | ||||||
22 | county shall require
that the Department pay any costs or fees | ||||||
23 | in connection with recordation of
any notice or other document | ||||||
24 | filed by the Department under this Act at the
time such notice | ||||||
25 | or other document is presented for recordation.
| ||||||
26 | (Source: P.A. 86-905.)
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| |||||||
1 | (35 ILCS 520/19) (from Ch. 120, par. 2169)
| ||||||
2 | Sec. 19. Release of Liens.
| ||||||
3 | (a) In general. The Department shall release all or any | ||||||
4 | portion of
the property subject to any lien provided for in | ||||||
5 | this Act if it determines
that the release will not endanger or | ||||||
6 | jeopardize the collection of the
amount secured thereby.
The | ||||||
7 | Department shall release its lien on property which is the | ||||||
8 | subject of
forfeiture proceedings under the Narcotics Profit | ||||||
9 | Forfeiture Act, the Criminal
Code of 2012, or the Drug Asset | ||||||
10 | Forfeiture Procedure Act until all forfeiture
proceedings are | ||||||
11 | concluded. Property forfeited shall not be subject to
a lien | ||||||
12 | under this Act.
| ||||||
13 | (b) Judicial determination. If on judicial review the final | ||||||
14 | judgment
of the court is that the taxpayer does not owe some or | ||||||
15 | all of the amount
secured by the lien against him, or that no | ||||||
16 | jeopardy to the revenue exists,
the Department shall release | ||||||
17 | its lien to the extent of such finding of
nonliability, or to | ||||||
18 | the extent of such finding of no jeopardy to the
revenue.
| ||||||
19 | (c) Payment. The Department shall also release its jeopardy
| ||||||
20 | assessment lien against the taxpayer whenever the tax and | ||||||
21 | penalty covered
by such lien, plus any interest which may be | ||||||
22 | due, are paid.
| ||||||
23 | (d) Certificate of release. The Department shall issue a | ||||||
24 | certificate
of complete or partial release of the lien:
| ||||||
25 | (1) To the extent that the fair market value of any |
| |||||||
| |||||||
1 | property subject to
the lien exceeds the amount of the lien | ||||||
2 | plus the amount of all prior liens
upon such property;
| ||||||
3 | (2) To the extent that such lien shall become | ||||||
4 | unenforceable;
| ||||||
5 | (3) To the extent that the amount of such lien is paid | ||||||
6 | by the person
whose property is subject to such lien, | ||||||
7 | together with any interest and penalty
which
may become due | ||||||
8 | under this Act between the date when the notice of lien is
| ||||||
9 | filed and the date when the amount of such lien is paid;
| ||||||
10 | (4) To the extent and under the circumstances specified | ||||||
11 | in this Section.
A certificate of complete or partial | ||||||
12 | release of any lien shall be held
conclusive that the lien | ||||||
13 | upon the property covered by the certificate is
| ||||||
14 | extinguished to the extent indicated by such certificate.
| ||||||
15 | Such release of lien shall be issued to the person, or his | ||||||
16 | agent, against
whom the lien was obtained and shall contain in | ||||||
17 | legible letters a statement as
follows:
| ||||||
18 | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||||||
19 | BE FILED IN THE UNIFORM STATE TAX LIEN REGISTRY WITH THE | ||||||
20 | RECORDER OR THE REGISTRAR
| ||||||
21 | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||||||
22 | (e) Filing. When a certificate of complete or partial | ||||||
23 | release of lien
issued by the Department is filed in the | ||||||
24 | Uniform State Tax Lien Registry, the Department presented for | ||||||
25 | filing in the office of the
recorder or Registrar of Titles | ||||||
26 | where a notice of lien or notice
of jeopardy assessment lien |
| |||||||
| |||||||
1 | was filed:
| ||||||
2 | (1) The recorder, in the case of nonregistered | ||||||
3 | property, shall
permanently attach the certificate of | ||||||
4 | release to the notice of lien or
notice of jeopardy | ||||||
5 | assessment lien and shall enter the certificate of
release | ||||||
6 | and the date in the "State Tax Lien Index" on the line | ||||||
7 | where the
notice of lien or notice of jeopardy assessment | ||||||
8 | lien is entered . ; and
| ||||||
9 | (2) In the case of registered property, the Registrar | ||||||
10 | of Titles shall
file and enter upon each folium of the | ||||||
11 | register of titles affected thereby
a memorial of the | ||||||
12 | certificate of release which memorial when so entered
shall | ||||||
13 | act as a release pro tanto of any memorial of such notice | ||||||
14 | of lien or
notice of jeopardy assessment lien previously | ||||||
15 | filed and registered.
| ||||||
16 | (Source: P.A. 97-1150, eff. 1-25-13 .)
| ||||||
17 | Section 5-20. The Illinois Municipal Code is amended by | ||||||
18 | changing Section 8-3-15 as follows:
| ||||||
19 | (65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)
| ||||||
20 | Sec. 8-3-15.
The corporate authorities of each | ||||||
21 | municipality shall have
all powers necessary to enforce the | ||||||
22 | collection of any tax imposed and collected
by such | ||||||
23 | municipality, whether such tax was imposed pursuant to its home
| ||||||
24 | rule powers or statutory authorization, including but not |
| |||||||
| |||||||
1 | limited to subpoena
power and the power to create and enforce | ||||||
2 | liens. No such lien shall affect
the rights of bona fide | ||||||
3 | purchasers, mortgagees, judgment creditors or other
| ||||||
4 | lienholders who acquire their interests in such property prior | ||||||
5 | to the time
a notice of such lien is placed on record in the | ||||||
6 | office of the recorder or
the registrar of titles of the county | ||||||
7 | in which the property is located.
However, nothing in this | ||||||
8 | Section shall permit a municipality to place a
lien upon | ||||||
9 | property not located or found within its corporate boundaries. | ||||||
10 | A
municipality creating a lien may provide that the procedures | ||||||
11 | for its notice
and enforcement shall be the same as that | ||||||
12 | provided in the Retailers'
Occupation Tax Act, as that Act | ||||||
13 | existed prior to the adoption of the Uniform State Tax Lien | ||||||
14 | Registration Act now or hereafter amended , for State tax liens, | ||||||
15 | and
any recorder or registrar of titles with whom a notice of | ||||||
16 | such lien is
filed shall treat such lien as a State tax lien | ||||||
17 | for recording purposes.
| ||||||
18 | (Source: P.A. 86-680.)
| ||||||
19 | Section 5-25. The Title Insurance Act is amended by | ||||||
20 | changing Section 22 as follows:
| ||||||
21 | (215 ILCS 155/22) (from Ch. 73, par. 1422)
| ||||||
22 | Sec. 22. Tax indemnity; notice.
A corporation authorized to | ||||||
23 | do business under this Act
shall notify the Director of Revenue | ||||||
24 | of the State
of Illinois, by notice directed to his office in |
| |||||||
| |||||||
1 | the City of Chicago, of
each trust account or similar account | ||||||
2 | established which relates to title
exceptions due to a judgment | ||||||
3 | lien or any other lien arising
under any tax Act administered | ||||||
4 | by the Illinois Department of Revenue, when
notice of such lien | ||||||
5 | has been filed with the registrar of titles or
recorder or in | ||||||
6 | the Uniform State Tax Lien Registry , as the case may be, in the | ||||||
7 | manner prescribed by law.
Such notice shall contain the name, | ||||||
8 | address, and tax
identification number of the debtor, the | ||||||
9 | permanent real
estate index numbers, if any, and the address | ||||||
10 | and
legal description of the property, the type of lien claimed | ||||||
11 | by the
Department and identification of any trust fund or | ||||||
12 | similar account held by
such corporation or any agent thereof | ||||||
13 | relating to such lien. Any trust
fund or similar account | ||||||
14 | established by such corporation or agent relating
to any such | ||||||
15 | lien shall include provisions requiring such corporation or
| ||||||
16 | agent to apply such fund in satisfaction or release of such | ||||||
17 | lien upon
written demand therefor by the Department of Revenue.
| ||||||
18 | (Source: P.A. 94-893, eff. 6-20-06.)
| ||||||
19 | ARTICLE 99. EFFECTIVE DATE
| ||||||
20 | Section 99-999. Effective date. This Act takes effect | ||||||
21 | January 1, 2017.
|