Housing Authority of the County of Marion, Illinois v. Department of Revenue

SUPREME COURT CASES

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State: Illinois

Court: 5th District Appellate

Docket No: 5-07-0260 Rel

Case Date: 04/20/2009

Preview:NO. 5-07-0260
N O T IC E Decision filed 04/20/09. The text of this dec ision m ay b e changed or corrected prior to the P e t i ti o n for filing of a or the

IN THE APPELLATE COURT OF ILLINOIS

Re hea ring

FIFTH DISTRICT ________________________________________________________________________ THE HOUSING AUTHORITY OF THE COUNTY OF MARION, ILLINOIS, by and Through Its Wholly Owned Subsidiary, Marion County, Illinois, Elderly Housing Corporation, ) Appeal from the ) Circuit Court of ) Marion County. ) ) ) Plaintiff-Appellant, ) ) v. ) No. 02-MR-35 ) THE DEPARTMENT OF REVENUE ) OF THE STATE OF ILLINOIS and ) THE COUNTY OF MARION, ) ) Defendants-Appellees ) ) (Salem Elementary School District No. 111, ) Salem Community High School District No. ) Honorable 600, Salem Fire Protection District, and Salem ) Dennis E. Middendorff, Township, Petitioners-Appellees). ) Judge, presiding. ________________________________________________________________________ JUSTICE GOLDENHERSH delivered the opinion of the court: This appeal is pursuant to Supreme Court Rule 308 (155 Ill. 2d R. 308). The circuit court of Marion County certified the following question for review: "Whether municipalities, school districts, and community college districts[] who are entitled to receive notice of an application for property tax exemption pursuant to [section 16-70 of the Property Tax Code (35 ILCS 200/16-70 (West 2006))] but who, after receiving notice of the application for property tax exemption, do not participate in the proceedings before the Board of Review concerning the application for property tax exemption[] are necessary parties in any subsequent administrative review proceeding before the circuit court involving the application for 1

disposition of the same.

property tax exemption?" The facts are not in dispute and our review is de novo . Rita v. Mayden , 364 Ill. App. 3d 913, 919, 847 N.E.2d 578, 583 (2006). FACTS On June 3, 1999, the Marion County, Illinois, Elderly Housing Corp. (plaintiff) filed an application for a property tax exemption with the Marion County Board of Review (Board) pursuant to the Property Tax Code (35 ILCS 200/16-70 (West 1998)). Plaintiff mailed copies of the application to the Marion County clerk and recorder, the City of Salem Clerk's Office, Salem Elementary Schools, Salem Community High School, Kaskaskia College, Salem Township, the Salem Fire Protection District, and the Salem Airport Authority. Salem Elementary School District No. 111, Salem Community High School District No. 600, Salem Fire Protection District, and Salem Township (petitioners) did not participate in the proceedings before the Board. The Board recommended that the tax exemption be granted. The Property Tax Code requires the automatic review of an exemption decision. 35 ILCS 200/16-70 (West 2006). On October 21, 1999, the Illinois Department of Revenue (Department) denied the request for an exemption. Plaintiff filed a timely administrative protest. On January 30, 2002, an administrative law judge reviewed the application and recommended the denial of the exemption. On March 5, 2002, plaintiff filed a complaint for administrative review in the circuit court of Marion County. The Department and the County of Marion were named as defendants. Petitioners were not named as defendants in the complaint and were not served with process or otherwise notified of the proceeding. On December 30, 2002, the circuit court reversed the decision of the Department and ordered the Department to issue taxexempt certificates for plaintiff.

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On September 14, 2005, petitioners filed a petition for relief from a void order and judgment in the circuit court of M arion County (see 735 ILCS 5/2-1401 (W est 2006)). Petitioners contend that they should have been joined as parties in the complaint for administrative review as parties of record under the Administrative Review Law (735 ILCS 5/3-107 (West 2006)). Plaintiff filed a motion to dismiss. On July 31, 2006, the circuit court entered an order denying the motion to dismiss. The court later denied a motion to reconsider. On May 3, 2007, the circuit court certified the question of law pursuant to Supreme Court Rule 308 (155 Ill. 2d R. 308). We find that petitioners were not necessary parties, and we answer the certified question in the negative. ANALYSIS I. Property Tax Code The certified question requires this court to evaluate the application of both the Property Tax Code and the Administrative Review Law. Plaintiff filed an application for an exemption under section 16-70 of the Property Tax Code. Section 16-70 states, in part, as follows: "

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