Opinion ID: 2529941
Heading Depth: 1
Heading Rank: 4

Heading: Tax Rate Objection Cases

Text: The Yetto taxpayers objected to the real estate tax rate levied by various taxing bodies in connection with year 2000 property taxes. This resulted in court-ordered tax refunds to the Yetto taxpayers in 39 consolidated tax rate objection cases which together involve thousands of separate taxpayers and parcels of property in Cook County. Many of the individual taxpayers under each of the 39 lead objectors, however, were ultimately entitled to tax refunds of less than $10. In June 2006, the Yetto taxpayers filed a motion asking the trial court to declare how interest should be calculated under the amended version of section 23-20. On August 31, 2006, the trial court issued a written order which required the collector to pay interest on any refund at a rate of 5% from the date the taxes were paid under protest through December 31, 2005, and interest based on the lower CPI-derived rate thereafter. Final judgment orders were subsequently entered in each of the tax rate objection cases beginning in January 2008. The orders provided that upon oral motion of the collector, the payment of interest was stayed from the date the taxes were due, through December 31, 2005, which exceeded the CPI rate. Additionally, the orders provided taxpayers judgment interest under section 2-1303 on the portion of interest that was stayed pending appeal. As with the tax valuation cases, the collector paid the principal tax refunds owed to the rate objectors and interest at the lower CPI interest rate for the entire period. The collector appealed all final judgment orders entered in the 39 tax rate objection cases and incorporated in the notices of appeal her contention that the trial court improperly awarded judgment interest to plaintiffs. [2] The appellate court consolidated all the tax valuation and tax rate objection cases. 393 Ill.App.3d 60, 62, 331 Ill.Dec. 683, 911 N.E.2d 504. The collector's primary contention on appeal was that the amended version of section 23-20 required payment of any tax refund made after January 1, 2006, at the lower CPI interest rate, regardless of when the tax payments were actually made. Id. The appellate court rejected this interpretation of the Code and found that the legislature intended for the amended version of section 23-20 to apply prospectively and, therefore, it was proper for the trial court to split the interest rate calculation and order payment at the CPI rate only for the period the tax payment was held in protest after December 31, 2005, to the date the collector tendered the refund. Id. at 69-70, 331 Ill.Dec. 683, 911 N.E.2d 504. The appellate court found that the circuit court retained jurisdiction to award judgment interest to SBC and Newcastle after the collector filed her notices of appeal, and that it retained appellate jurisdiction to consider the award of judgment interest which was not incorporated in the collector's notices of appeal in the SBC and Newcastle cases. Id. at 71-73, 331 Ill.Dec. 683, 911 N.E.2d 504. The appellate court reasoned that while the collector should have filed amended, or additional notices of appeal, the error was one of form, not substance, and did not prejudice SBC and Newcastle as it naturally flowed from the judgment, and the issue was fully briefed by the collector. Id. at 71, 331 Ill.Dec. 683, 911 N.E.2d 504. The appellate court also affirmed the trial court's orders granting judgment interest to SBC, Newcastle, and the Yetto taxpayers while the matter was stayed pending appeal. Id. at 75, 331 Ill.Dec. 683, 911 N.E.2d 504. The court concluded that section 2-1303 of the Code of Civil Procedure governed the issue and that judgment interest was warranted. Id. at 73-75, 331 Ill.Dec. 683, 911 N.E.2d 504. The appellate court rejected plaintiffs' cross-appeals in the tax valuation cases seeking 5% interest for the entire period the funds were held until the date of refund. Id. at 62, 69-70, 331 Ill.Dec. 683, 911 N.E.2d 504. The appellate court also concluded that a complete tax refund had been made to GM, which foreclosed its ability to earn additional interest under section 23-20 on any outstanding interest that was owed, and that GM was not entitled to judgment interest under section 2-1303 because it was neither sought nor awarded in GM's case. Id. at 75-76, 331 Ill.Dec. 683, 911 N.E.2d 504. We granted the collector's petition for leave to appeal. Ill. S.Ct. R. 315 (eff. Feb.26, 2010).