2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 405/ - Illinois Estate and Generation-Skipping Transfer Tax Act.

(35 ILCS 405/1) (from Ch. 120, par. 405A-1)
Sec. 1. 
		
		This Act may be cited as the Illinois Estate and Generation-Skipping Transfer Tax Act.
(Source: P.A. 86-737.)
(35 ILCS 405/2) (from Ch. 120, par. 405A-2)
Sec. 2. Definitions.
"Federal estate tax" means the tax due to the United States with respect
to a taxable transfer under Chapter 11 of the Internal Revenue Code.
"Federal generation-skipping transfer tax" means the tax due to the
United States with respect to a taxable transfer under Chapter 13 of the
Internal Revenue Code.
"Federal return" means the federal estate tax return with respect to the
federal estate tax and means the federal generation-skipping transfer tax
return
with respect to the federal generation-skipping transfer tax.
"Federal transfer tax" means the federal estate tax or the federal
generation-skipping transfer tax.
"Illinois estate tax" means the tax due to this State with respect to a
taxable transfer.
"Illinois generation-skipping transfer tax" means the tax due to this State
with respect to a taxable transfer that gives rise to a federal
generation-skipping transfer tax.
"Illinois transfer tax" means the Illinois estate tax or the Illinois
generation-skipping transfer tax.
"Internal Revenue Code" means, unless otherwise provided, the Internal
Revenue Code of 1986, as
amended from time to time.
"Non-resident trust" means a trust that is not a resident of this State
for purposes of the Illinois Income Tax Act, as amended from time to time.
"Person" means and includes any individual, trust, estate, partnership,
association, company or corporation.
"Qualified heir" means a qualified heir as defined in Section 2032A(e)(1)
of the Internal Revenue Code.
"Resident trust" means a trust that is a resident of this State for
purposes of the Illinois Income Tax Act, as amended from time to time.
"State" means any state, territory or possession of the United States and
the District of Columbia.
"State tax credit" means:
(a) For persons dying on or after January 1, 2003 and
through December 31, 2005, an amount
equal
to the full credit calculable under Section 2011 or Section 2604 of the
Internal Revenue
Code as the credit would have been computed and allowed under the Internal
Revenue
Code as in effect on December 31, 2001, without the reduction in the State
Death Tax
Credit as provided in Section 2011(b)(2) or the termination of the State Death
Tax Credit
as provided in Section 2011(f) as enacted by the Economic Growth and Tax Relief
Reconciliation Act of 2001, but recognizing the increased applicable exclusion
amount
through December 31, 2005.
(b) For persons dying after December 31, 2005 and on or before December 31,
2009, and for persons dying after December 31, 2010, an amount equal to the full
credit
calculable under Section 2011 or 2604 of the Internal Revenue Code as the
credit would
have been computed and allowed under the Internal Revenue Code as in effect on
December 31, 2001, without the reduction in the State Death Tax Credit as
provided in
Section 2011(b)(2) or the termination of the State Death Tax Credit as provided
in
Section 2011(f) as enacted by the Economic Growth and Tax Relief Reconciliation
Act of
2001, but recognizing the exclusion amount of only (i) $2,000,000 for persons dying prior to January 1, 2012, (ii) $3,500,000 for persons dying on or after January 1, 2012 and prior to January 1, 2013, and (iii) $4,000,000 for persons dying on or after January 1, 2013, and with reduction to the adjusted taxable estate for any qualified terminable interest property election as defined in subsection (b-1) of this Section.
(b-1) The person required to file the Illinois return may elect on a timely filed Illinois return a marital deduction for qualified terminable interest property under Section 2056(b)(7) of the Internal Revenue Code for purposes of the Illinois estate tax that is separate and independent of any qualified terminable interest property election for federal estate tax purposes.  For purposes of the Illinois estate tax, the inclusion of property in the gross estate of a surviving spouse is the same as under Section 2044 of the Internal Revenue Code.
In the case of any trust for which a State or federal qualified terminable interest property election is made, the trustee may not retain non-income producing assets for more than a reasonable amount of time without the consent of the surviving spouse.
"Taxable transfer" means an event that gives rise to a state tax credit,
including any credit as a result of the imposition of an
additional tax under Section 2032A(c) of the Internal Revenue Code.
"Transferee" means a transferee within the meaning of Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue Code.
"Transferred property" means:
(1) With respect to a taxable transfer occurring at     the death of an individual, the deceased individual's gross estate as defined in Section 2031 of the Internal Revenue Code.
(2) With respect to a taxable transfer occurring as a     result of a taxable termination as defined in Section 2612(a) of the Internal Revenue Code,  the taxable amount determined under Section 2622(a) of the Internal Revenue Code.
(3) With respect to a taxable transfer occurring as a     result of a taxable distribution as defined in Section 2612(b) of the Internal Revenue Code, the taxable amount determined under Section 2621(a) of the Internal Revenue Code.
(4) With respect to an event which causes the     imposition of an additional estate tax under Section 2032A(c) of the Internal Revenue Code, the qualified real property that was disposed of or which ceased to be used for the qualified use, within the meaning of Section 2032A(c)(1) of the Internal Revenue Code.
"Trust" includes a trust as defined in Section 2652(b)(1) of the Internal
Revenue Code.
(Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11; 97-636, eff. 6-1-12.)
(35 ILCS 405/3) (from Ch. 120, par. 405A-3)
Sec. 3. Illinois estate tax.
(a) Imposition of Tax.  An Illinois estate tax is imposed on every
taxable transfer
involving transferred
property having a tax situs within the State of Illinois.
(b) Amount of tax.  On estates of persons dying before January 1, 2003, the amount of the Illinois estate tax shall be the state
tax credit, as defined in Section 2 of this Act, with respect to the taxable
transfer
reduced by the lesser of:
(1) the amount of the state tax credit paid to any     other state or states; and
(2) the amount determined by multiplying the maximum     state tax credit allowable with respect to the taxable transfer  by the percentage which the gross value of the transferred property not having a tax situs in Illinois bears to the gross value of the total transferred property.
(c) On estates of persons dying on or after January 1, 2003, the amount of the Illinois estate tax shall be the state
tax credit, as defined in Section 2 of this Act, reduced by the amount determined by multiplying the state tax
credit with respect to the taxable transfer
 by the percentage which the gross
value of the transferred property not having a tax situs in Illinois bears
to the gross value of the total transferred property.
(Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
(35 ILCS 405/4) (from Ch. 120, par. 405A-4)
Sec. 4. 
		Illinois generation-skipping transfer tax.
(a) Imposition of tax.  An Illinois generation-skipping transfer tax is
imposed on every taxable transfer resulting in federal generation-skipping
transfer tax involving transferred property having a tax situs within the
State of Illinois.
(b) Amount of tax.  The amount of the Illinois generation-skipping transfer
tax shall be the maximum state tax credit allowable with respect to the
taxable transfer, reduced by the lesser of:
(1) the amount of the state tax credit paid to any     other state or states; and
(2) the amount determined by multiplying the maximum     state tax credit allowable with respect to the taxable transfer by the percentage which the gross value of the transferred property not having a tax situs in Illinois bears to the gross value of the total transferred property.
(Source: P.A. 86-737.)
(35 ILCS 405/5) (from Ch. 120, par. 405A-5)
Sec. 5. 
		Determination of tax situs and valuation.
(a) Illinois estate tax.
(1) For purposes of the Illinois estate tax, in the     case of a decedent who was a resident of this State at the time of death, all of the transferred property has a tax situs in this State, including any such property held in trust, except real or tangible personal property physically situated in another state.
(2) For purposes of the Illinois estate tax, in the     case of a decedent who was not a resident of this State at the time of death, the transferred property having a tax situs in this State, including any such property held in trust, is only the real estate and tangible personal property physically situated in this State.
(b) Illinois generation-skipping transfer tax.
(1) For purposes of the Illinois generation-skipping     transfer tax, all transferred property from or in a resident trust has a tax situs in this State, including any such property held in trust, except real or tangible personal property physically situated in another state on the date that the taxable transfer occurs.
(2) For purposes of the Illinois generation-skipping     transfer tax, none of the transferred property from or in a non-resident trust has a tax situs in this State, except that portion of the transferred property that is real or tangible personal property physically situated in this State, including any such property held in trust, on the date that the taxable transfer occurs.
(c) Valuation.  Except as otherwise expressly provided, for purposes of
this Act, the gross value of transferred property shall be its value as
finally determined for purposes of the federal transfer tax,
undiminished
by any mortgages, liens or other encumbrances upon such transferred
property for which the decedent was personally liable.
(Source: P.A. 93-30, eff. 6-20-03.)
(35 ILCS 405/6) (from Ch. 120, par. 405A-6)
Sec. 6. Returns and payments.
(a) Due Dates.  The Illinois transfer
tax shall be paid and the Illinois transfer tax return shall be filed on
the due date or dates, respectively, including extensions, for paying the
federal transfer tax and filing the related federal return.
(b) Installment payments and deferral.  In the event that any portion of
the federal transfer tax is deferred or to be paid in installments under
the provisions of the Internal Revenue Code, the portion of the Illinois
transfer tax which is subject to deferral or payable in installments shall
be determined by multiplying the Illinois transfer tax by a fraction, the
numerator of which is the gross value of the assets included in the
transferred property having a tax situs in this State and which give rise
to the deferred or installment payment under
the Internal Revenue Code, and the denominator of which is the gross value
of all assets included in the transferred property having a tax situs in
this State.  Deferred payments and installment payments, with interest,
shall be paid at the same time and in the same manner as payments of the
federal transfer tax are required to be made under the applicable Sections
of the Internal Revenue Code, provided that the rate of interest on unpaid
amounts of Illinois transfer tax shall be determined under this Act.
Acceleration of payment under this Section shall occur under the same
circumstances and in the same manner as provided in the Internal Revenue Code.
(c) Who shall file and pay.  The Illinois transfer tax return (including
any supplemental or amended return) shall be filed, and the Illinois
transfer tax (including any additional tax that may become due) shall be
paid by the same person or persons, respectively, who are required to pay
the federal transfer tax and file the federal return,
or
who would have been required to pay a federal transfer tax and file a
federal return if
a federal transfer tax were due.
(d) Where to file return.  The executed Illinois transfer tax return
shall be filed with the Attorney General.
(e) Where to pay tax.   The Illinois transfer tax shall be paid according to the following rules:
(1) Illinois Estate Tax.  Prior to July 1, 2012, the     Illinois estate tax shall be paid to the treasurer of the county in which the decedent was a resident on the date of the decedent's death or, if the decedent was not a resident of this State on the date of death, the county in which the greater part, by gross value, of the transferred property with a tax situs in this State is located.
(2) Illinois Generation-Skipping Transfer Tax.  Prior     to July 1, 2012, the Illinois generation-skipping transfer tax involving transferred property from or in a resident trust shall be paid to the county treasurer for the county in which the grantor resided at the time the trust became irrevocable (in the case of an inter vivos trust) or the county in which the decedent resided at death (in the case of a trust created by the will of a decedent). In the case of an Illinois generation-skipping transfer tax involving transferred property from or in a non-resident trust, the Illinois generation-skipping transfer tax shall be paid to the county treasurer for the county in which the greater part, by gross value, of the transferred property with a tax situs in this State is located.
(3)  Payments on or after July 1, 2012.  On or after     July 1, 2012, both the Illinois estate tax and the Illinois generation-skipping transfer tax shall be paid directly to the State Treasurer.
(f) Forms; confidentiality.  The Illinois transfer tax return shall be
in all respects in the manner and form prescribed by the regulations of the
Attorney General.  At the same time the Illinois transfer tax return is
filed, the person required to file shall also file with the Attorney
General a copy of the related federal return.
For individuals dying after December 31, 2005, in cases where no federal
return is
required to be filed, the person required to file an Illinois return shall also
file with the
Attorney General schedules of assets in the manner and form prescribed by the
Attorney
General.
The Illinois transfer tax
return and the copy of the federal return filed with the Attorney General, the
 county treasurer, or the State Treasurer shall be confidential, and the Attorney General,
each county treasurer, and the State Treasurer and all of their assistants or employees are
prohibited from divulging in any manner any of the contents of those returns,
except
only in a proceeding instituted under the provisions of this Act.
(g) County Treasurer shall accept payment.  Prior to July 1, 2012, no county treasurer shall
refuse to accept payment of any amount due under this Act on the grounds
that the county treasurer has not yet received a copy of the appropriate
Illinois transfer tax return.
(h)  Beginning July 1, 2012, the State Treasurer shall not refuse to accept payment of any amount due under this Act on the grounds
that the State Treasurer has not yet received a copy of the appropriate
Illinois transfer tax return.
(Source: P.A. 99-575, eff. 7-15-16.)
(35 ILCS 405/7) (from Ch. 120, par. 405A-7)
Sec. 7. 
		Supplemental returns; refunds.
(a) Supplemental returns.  If
the State tax credit is increased after the filing of the Illinois transfer
tax return, the person or persons required to file the Illinois transfer
tax return and pay the Illinois transfer tax shall file a supplemental
Illinois transfer tax return.  The supplemental return shall be filed and
the additional tax shall be paid in the same place and manner as provided
in Section 6 of this Act.  The due date for the supplemental return and for
the payment of the additional tax reported in the supplemental return shall
be no later than 3
months after the earliest of:
(1) the date an amended federal return is filed;
(2) the date an increase in the federal transfer tax     is paid or accepted in writing;
(3) the date the Internal Revenue Service issues a     request for evidence of payment of the State tax credit; or
(4) the date that any increase to the taxable estate     is discovered;
		provided that if the federal transfer tax may be deferred or paid
in installments, then part or all of the additional Illinois transfer tax
may be deferred or paid in installments under rules consistent with
subsection (b) of Section 6 of this Act.
(b) Refunds.  If the state tax credit is reduced after the filing of the
Illinois transfer tax return, the person who paid the Illinois transfer tax (or
the person
upon whom the burden of payment fell) shall file an amended Illinois
transfer tax return and shall be entitled to a refund of tax or interest
paid on the Illinois transfer tax.  No interest shall be paid on any amount
refunded.
(Source: P.A. 93-30, eff. 6-20-03.)
(35 ILCS 405/8) (from Ch. 120, par. 405A-8)
Sec. 8. 
		Penalties for failure to file tax return or to pay tax.
(a) Failure to file return.  In case of failure to file any return
required under this Act with the Attorney General by the due date,
unless it is shown that the failure to file is due to a reasonable cause,
there shall be added to the amount required
to be shown as tax on the return 5% of the amount of that tax (or 5% of
the additional tax due in the case of a supplemental return) if the failure
is for not more than one month from the due date, with an additional 5% for
each additional month or fraction of a month thereafter during
which the failure to file continues, not exceeding in the aggregate 25% of
the tax or, in the
case of a supplemental return, 25% of the additional tax.
(b) Failure to pay tax.  In the case of failure to pay the amount of tax
shown due on any return required under this Act on or before the due date
for payment of that tax, unless it is shown that the failure to pay is
due to reasonable cause, there shall be
added to the unpaid amount of the tax 0.5% of that unpaid amount if the
failure is for not more than one month from the due date, with an
additional 0.5% for each additional month or fraction of a month thereafter
during which the failure to pay continues, not exceeding in the aggregate 25%
of
the unpaid amount.
(c) Extensions of Time.
(1) Internal Revenue Service Extensions.  If the date     for filing the federal return or the date for payment of the federal transfer tax is extended by the Internal Revenue Service, the filing of the return and payment of the tax imposed by this Act shall be due on the respective date specified by the Internal Revenue Service in granting a request for extension.  If the request for extension is granted by the Internal Revenue Service, the person required to file the Illinois transfer tax return shall furnish the Attorney General with a copy of the request for extension showing approval of the extension by the Internal Revenue Service.  If a request for extension of time to file the federal return is denied by the Internal Revenue Service, no penalty shall be due under this Act if the return required by this Act is filed within the time specified by the Internal Revenue Service for filing the federal return.  If a request for extension of time to pay the federal transfer tax is denied by the Internal Revenue Service, no penalty shall be due under this Act if the tax is paid within the time specified by the Internal Revenue Service for paying the federal transfer tax.
(2) Attorney General Extensions.  The person or     persons required to file the Illinois transfer tax return and to pay the Illinois transfer tax may apply to the Attorney General for an extension of time to file the Illinois transfer tax return or to pay the Illinois transfer tax.  The application must establish reasonable cause why it is impossible or impractical to file a reasonably complete return or to pay the full amount of tax due by the due date.  The Attorney General may for reasonable cause extend the time for filing the return or paying the tax for a reasonable period from the date fixed for filing the return or paying the tax.
(d) Waiver of Penalties.
(1) Internal Revenue Service Waiver.  If the Internal     Revenue Service waives the penalty provided in the Internal Revenue Code for failure to timely file the federal return or the penalty for failure to timely pay the federal transfer tax liability, such waiver or waivers shall be deemed to constitute reasonable cause for purposes of this Section.
(2) Attorney General Waiver.  The Attorney General     may waive the penalty or penalties for failure to file or pay for reasonable cause, notwithstanding the failure of the Internal Revenue Service to waive the penalty or penalties for failure to timely file the federal transfer tax return or to pay the federal transfer tax.
(Source: P.A. 93-30, eff. 6-20-03.)
(35 ILCS 405/9) (from Ch. 120, par. 405A-9)
Sec. 9. 
		Interest. 
		If any amount of Illinois transfer tax imposed by
this Act is not paid on or before the initial due date for the Illinois
transfer tax return (without extensions), interest shall be charged and
collected on the unpaid amount
at the rate of 10% per annum from and
after the initial due date and for the time thereafter as the tax is not
paid, provided that the rate of interest on the outstanding amount of
Illinois transfer tax permitted to be deferred or paid in installments
under this Act shall be 6%.
(Source: P.A. 86-737.)
(35 ILCS 405/10) (from Ch. 120, par. 405A-10)
Sec. 10. 
		Liens and Personal Liability.
(a) Lien for Illinois transfer tax.  Unless the
Illinois transfer tax is sooner paid in full, the Illinois
transfer tax shall be a lien in favor of this State upon the transferred
property having a tax situs within this State for 10 years from the date of
the taxable transfer, or, in the case of Illinois transfer tax subject to
deferral or payable in installments, the later of 10 years from the date of
the taxable transfer or one year after the last deferred or installment
payment may become due.  The lien imposed by this Section on the
transferred property shall not be valid as against any purchaser,
mortgagee, pledgee, or other holder of a security interest for a full and
adequate consideration in money or money's worth; provided, however, that
any property, consideration or proceeds received as a result of any sale,
mortgage, pledge or granting of a security interest shall remain subject to
the lien imposed by this Section.  In addition, the lien imposed by this
Section on the transferred property shall be subject to the exceptions set
forth in Section 6324(c)(i) of the Internal Revenue Code as if the lien
were a lien imposed by that Section.  In no event shall the issuance by the
Attorney General of a release of the lien imposed by this subsection be
required with respect to the sale, mortgage, pledge, granting of a security
interest in, transfer or distribution of transferred property.
(b) Special lien for property valued under Section 2032A of the Internal
Revenue Code.  In the event the Illinois estate tax is reduced as a result
of an election under Section 2032A of the Internal Revenue Code, then an amount
equal to the additional Illinois estate tax that would be due in the
absence of such an election shall be a lien in favor of this State on the
transferred property that has a tax situs in this State and is subject to
such election.  The lien imposed by this subsection shall arise at the time
an election is filed under Section 2032A of the Internal Revenue Code and
shall continue with respect to such transferred property:
(1) until the liability for the Illinois estate tax     with respect to such transferred property has been satisfied or has become unenforceable by reason of lapse of time or otherwise; or
(2) until it is established to the satisfaction of     the Attorney General that no further tax liability may arise under this Act with respect to such transferred property.
The lien imposed by this subsection shall not be valid as against any
purchaser, mortgagee, pledgee, other holder of a security interest,
mechanic's lien, or judgment lien creditor until notice of such lien has
been filed as provided by the laws of this State.  In regulations
prescribed in accordance with Section 16 of this Act, the Attorney General
may require that the qualified heir file such notice of lien.  Even though
notice of said lien has been filed as provided in the preceding sentence,
such lien shall be subject to the rules set forth in paragraph (3) of
Section 6324A(d) of the Internal Revenue Code as if the lien were a lien
imposed by that Section.
(c) Personal liability.  If the Illinois transfer tax is not paid when
due, then the person required to file the federal return and the
transferee of any transferred property having a tax situs within this State
shall be personally liable for the Illinois transfer tax, to the extent of
such transferred property originally received, controlled or transferred to
that person or transferee, less the amount of any expenses or charges
against the transferred property, related to the taxable transfer, which
have a higher priority of payment under applicable law than the Illinois transfer tax.
(d) Collection.  The Attorney General shall have the right to sue for
collection of the Illinois transfer tax for 3 years after the date of the
actual filing of the related Illinois transfer tax return with the Attorney
General, or, if later, the last date upon which application for refund of
the Illinois transfer tax could be filed with the State Treasurer.
(e) Waiver of lien and personal liability.  If the Attorney General is
satisfied that no liability for Illinois transfer tax exists or that the
Illinois transfer tax has been fully discharged or provided for, the
Attorney General shall issue a certificate releasing all of the transferred
property having a tax situs within the State of Illinois from the lien
imposed by this Section.  Issuance of such certificate shall discharge the
person required to file the Illinois return and any
transferee from
personal liability for the Illinois transfer tax.
(Source: P.A. 93-30, eff. 6-20-03.)
(35 ILCS 405/11) (from Ch. 120, par. 405A-11)
Sec. 11. 
		Reimbursement. 
		If the person who pays the Illinois transfer tax arising from a
taxable transfer is entitled under the Internal Revenue Code or any other
state or federal statute or rule of law to reimbursement of a portion of
the federal transfer tax from any other person who has
received transferred property, then, unless the governing document directs
otherwise, the person who paid the Illinois transfer tax shall also be
entitled to reimbursement from that other person of a portion of the
Illinois transfer tax. The amount of reimbursement shall be determined by
multiplying the total Illinois transfer tax by a fraction, the numerator of
which shall be the gross value of the transferred property received by that
other person and having a tax situs in this State which gives rise to a
right of reimbursement of the federal transfer tax, and the denominator of
which shall be the gross value of all transferred property having a tax
situs in this State.
(Source: P.A. 86-737.)
(35 ILCS 405/12) (from Ch. 120, par. 405A-12)
Sec. 12. Parent as natural guardian for purposes of Sections
2032A and 2057 of the Internal Revenue Code.

A parent, without being appointed guardian of
the person or guardian of the estate, or a guardian of the estate, or, if
no guardian of the estate has been appointed, a guardian of the person, of
any minor or person with a disability whose interest is not adverse to the minor
or person with a disability, may make any election and sign, without court
approval, any agreement on behalf of the minor or person with a disability under
(i) Section 2032A of the Internal Revenue
Code for the valuation of property under that Section
or (ii) Section 2057 of the Internal Revenue
Code relating to deduction of the value of certain property under that
Section. Any election so made, and any agreement so
signed, shall have the same legal force and effect as if the election had
been made and the agreement had been signed by the minor or person with a disability 
and the minor or person with a disability had been legally competent.
This amendatory Act of the 91st General Assembly applies to elections and
agreements made on or after January 1, 1998
in reliance on or pursuant to Section 2057 of the Internal Revenue Code, and
those elections and agreements made before the effective date of this
amendatory Act are hereby validated.
(Source: P.A. 99-143, eff. 7-27-15.)
(35 ILCS 405/13) (from Ch. 120, par. 405A-13)
Sec. 13. Collection by county treasurers; tax collection distribution
fund.
(a) Collection by county treasurers. Each county treasurer shall
transmit to the State Treasurer all taxes, interest or penalties paid to
the county treasurer under this Act and in the county treasurer's
possession as of the last day of the previous
month, together with a report under oath identifying the taxpayer for or by
whom an amount was paid.    Those amounts and the report shall be
transmitted to and received by the
State Treasurer by the 10th day of each month.  At the same time, a copy of
the report shall be
furnished to the Attorney General. The report shall
be in a form and contain the particulars as the State Treasurer may
prescribe. The State Treasurer shall give the county treasurer a receipt
for the amount transmitted to the State Treasurer. Except as provided in subsection (a-5) of this Section, if any county treasurer fails
to pay to the State Treasurer all amounts that may be due and payable under
this Act as required by this Section, the county treasurer shall pay to the
State Treasurer, as a penalty, a sum of money equal to the
interest on the amounts not paid at the rate of 1% per month from the time those
amounts are due by the county treasurer until those amounts are paid. The
sureties upon the official bond of the county treasurer shall be security
for the payment of the penalty. The penalty under this Section may
be recovered in a civil action against the county treasurer and his or her
sureties, in the name of the People of the State of Illinois, in the
circuit court within the county wherein the county treasurer is resident;
and the penalty, when recovered, shall be paid into the State treasury.
The civil action to recover the penalty shall be brought by the State
treasurer within 10 days after
the failure of the county treasurer to pay to the State Treasurer any
amounts collected by the county treasurer within the time required by this Act. Failure
to bring the action within that time shall not prevent the bringing of the
action thereafter. It is the duty of the State Treasurer to
make necessary and proper investigation to determine what amounts should
be paid under this Act.
(a-5)  The State Treasurer may waive penalties imposed by subsection (a) of this Section on a case-by-case basis if the State Treasurer finds that imposing penalties would be unreasonable or unnecessarily burdensome because the delay in payment was due to an incident caused by the operation of an extraordinary force, including, but not limited to, the occurrence of a  natural disaster, that cannot be foreseen, that cannot be avoided by the exercise of due care, and for which no person can be held liable.
(b) (Blank).
(c)  On and after July 1, 2012, 94% of the amounts collected from the taxes, interest, and penalties collected under this Act shall be deposited into the General Revenue Fund and 6% of those amounts shall be deposited into the Estate Tax Refund Fund, a special fund created in the State treasury.
Moneys in the Estate Tax Refund Fund shall be expended exclusively for the purpose of paying refunds resulting from overpayment of tax liability under this Act, except that, whenever the State Treasurer determines that any such moneys in the Fund exceed the amount required for the purpose of paying refunds resulting from overpayment of tax liability under this Act, the State Treasurer may transfer any such excess amounts from the Estate Tax Refund Fund to the General Revenue Fund.
The Treasurer shall order payment of refunds resulting from overpayment of tax liability under this Act from the Estate Tax Refund Fund only to the extent that amounts have been deposited and retained in the Fund.
Public Act 97-732 shall constitute an irrevocable and continuing appropriation from the Estate Tax Refund Fund for the purpose of paying refunds upon the order of the Treasurer in accordance with the provisions of this Act and for the purpose of paying refunds under this Act.
(Source: P.A. 102-278, eff. 8-6-21.)
(35 ILCS 405/14) (from Ch. 120, par. 405A-14)
Sec. 14. 
		Statute of limitations; claims for refund.
In case it appears
that the amount paid with respect to any taxable transfer is more than the
amount due under this Act, then the State Treasurer shall refund the excess
to the person entitled to the refund, provided that no amount shall be refunded
unless application for the refund is filed with the State Treasurer no later than
one year after the last date allowable under the Internal Revenue Code for
filing a claim for refund of any part of the related federal transfer tax
or, if later, within one year after the date of final determination of the
related federal transfer tax.
(Source: P.A. 86-737.)
(35 ILCS 405/15) (from Ch. 120, par. 405A-15)
Sec. 15. 
		Circuit court jurisdiction and venue.
(a) Jurisdiction.
Jurisdiction to hear and determine all disputes in relation to a tax
arising under this Act shall be in the circuit court for
the county having venue as determined under subsection (b) of this Section,
and the circuit court first acquiring jurisdiction shall retain
jurisdiction to the exclusion of every other circuit court.
(b) Venue.
(1) Venue for disputes involving Illinois estate tax     of a decedent who was a resident of Illinois at the time of death shall lie in the circuit court for the county in which the decedent resided at death.
(2) Venue for disputes involving Illinois     generation-skipping tax for a resident trust shall lie in the circuit court for the county in which a person required to file the return is resident or, if none, in either Sangamon County or Cook County.
(3) Venue for disputes involving Illinois estate tax     of a decedent who was not a resident of Illinois at the time of death or for disputes involving Illinois generation-skipping tax of a non-resident trust shall lie in the circuit court for any Illinois county in which transferred property is situated.
(Source: P.A. 86-737.)
(35 ILCS 405/16) (from Ch. 120, par. 405A-16)
Sec. 16. 
		Duty of Attorney General; failure to pay tax; proceedings.
(a) Duty of the Attorney General.  It is the duty of the Attorney
General to exercise general
supervision over the assessment and collection of the tax provided in this
Act, and in the discharge of that duty, the Attorney General may prescribe
rules and regulations as are deemed necessary and may institute and
prosecute suits and proceedings as may be necessary and proper,
appearing therein for that purpose; and it shall be the duty of the several
State's Attorneys to render assistance when requested by the Attorney
General to do so. The Attorney General shall determine and assess the tax
as provided for in this Act.
(b) Disclosure of federal return information.  When receipt of estate
tax information from the Internal Revenue Service under the Agreement on
Coordination of Tax Administration between the Internal Revenue Service and the
Attorney General discloses possible Illinois estate tax liability, any person
possessing federal estate tax information shall be required to submit such
information to the Attorney General upon request to enable the Attorney General
to audit the return or Internal Revenue
Service audit adjustments and to determine whether any tax, penalty, or
interest is due the State of Illinois where such return information has not
been filed with the Attorney General.  A claim of confidentiality under Section
48.1 of the Illinois Banking Act shall not prohibit or preclude the
dissemination of tax information required under this Section and shall not
constitute grounds for failing or refusing to surrender such tax information to
the Attorney General in the administration and enforcement of this Act.  Any
tax information submitted in compliance with this Section shall be treated and
afforded with the same confidentiality as a return filed under the Act.
(Source: P.A. 91-150, eff. 7-16-99.)
(35 ILCS 405/17) (from Ch. 120, par. 405A-17)
Sec. 17. 
		
		Agreements with other states for payment of tax imposed by
this Act.
Where the Attorney General claims that transferred property has a
tax situs in this State and the taxing authorities of another state
or states claim the same transferred property is subject to a transfer tax
in their state or states, the Attorney General may
enter into a written agreement with those taxing authorities
in the other state or states and with the person required to file the
Illinois transfer tax return or pay the Illinois transfer tax that a
certain sum shall be accepted in full payment of the tax imposed by this
Act, provided that the agreement also fixes the amount to be paid in full
payment to such other state or states. Full power and authority is hereby
conferred upon the person required to file the Illinois transfer tax return
or pay the Illinois tax to enter into the agreement provided for in this Section.
(Source: P.A. 86-737.)
(35 ILCS 405/18) (from Ch. 120, par. 405A-18)
Sec. 18. 
		Effective dates.
This Act takes effect on becoming law and applies only to taxable
transfers occurring on or after January 1, 1990, provided that:
(a) The provisions contained in Sections 6 and 8 of this Act which
provide for an extension of time to file or to pay tax, if an extension of
time is granted by the Internal Revenue Service, shall apply with respect
to the estates of decedents dying on or after January 1, 1983.
(b) A claim for refund of Illinois estate tax or penalties arising from
the effective date provisions set forth in subsection (a) of this Section
shall not be denied because of the expiration of the time for filing that
claim, under the law that otherwise would apply, if the claim is filed not
later than the date which is one year after the date this Act takes effect.
(Source: P.A. 86-737.)