Beth Jensen from the Illinois Bar Foundation spoke about its various legal assistance programs. She encouraged members to join the Foundation.

Candidates for Third Vice-President

Irene Bahr introduced herself to our section council.

Jack Carey introduced himself to our section council.

III. Legislation

A. Presentation by guest speaker

ISBA Legislative Director Jim Covington discussed the next general assembly.

B. Update on General Assembly Workings

Louise Calvert announced that current bills are either policy issues, or are sitting in the rules committee. The 93rd General Assembly should be very active. Chair Jim Chipman stated that there are only two days left of the 92nd General Assembly, 01-06-03 and 01-07-03.

The State and Local Taxation Section Council voted to take no position on HA#1 to SB 729.

C. Taxes Paid in Error (Exhibit C)

Tim Moran stated that this bill was previously submitted to the 91^st General Assembly. The Section council unanimously supported the bill, but the legislation didn't pass. The current tax code states that to obtain a refund in a sale in error in Cook County, you must submit an application to the Board of Review. Since the Board of Review does not have jurisdiction over the Section Council is attempting to have the statute changed to give the County Collector authority over the refund. The Section Council again voted and unanimously passed this change.

IV. Newsletter–

Mary Ann Connelly stated that the December issue of the newsletter is out. She encouraged contributions from non-contributing members. Mary Ann suggested that new legislation and recent court decisions were an excellent resource for topics. If you need an idea for a topic, please contact Mary Ann at 312-0641-0100.

V. Continuing Legal Education

No report.

VI. Standing Subcommittee Reports (Exhibit D)

A. Case Law Report

Judge White discussed the following case law:

Appellate and Supreme Court Cases

< Arangold Corporation v. Zehnder, Illinois Appellate Court, Fifth Division, Docket No.:1-01-1371, the court stated that the tad on Tobacco distributors is not wholly irrelevant to the objective of providing long term health care for the poor, the statute does not violate due process and uniformity is satisfied when the Act at issue bears some reasonable relationship to its objective. It is only necessary for the state to suggest a conceivable relationship between the tax and the purpose of the Act, which the State did. (Posted April 12, 2002)

< The Arts Club of Chicago v. Illinois Department of Revenue, Illinois Appellate Court, Sixth Division, Docket No. 1-01-1633, The Appellate Court Granted property tax exemption stating it satisfied the charitable standards. (Posted September 27, 2002)

< JI Aviation, Inc. v. Illinois Department of Revenue, Illinois Circuit Court No. 99 : 51105: A Rule 23 Appellate Court decision reversing on administrative review the Department's denial of a use tax exemption to a corporate aircraft (posted October 2, 2002).

< Blessing/White, Inc. v. Zahnder, Illinois Appellate Court, Third Division, Docket No. 1-01-0733, Petition for Leave to Appeal denied by Illinois Supreme Court denied October 2, 2002.

B. Circuit Court Cases

Liaison - Mike Coveny. We acknowledge his efforts in providing us with recent court decisions.

< Wexler v. Wirtz Corporation, et al., Illinois Circuit, No. 00 L 00765: Challenge to recent legislative amendments to State's Liquor Tax Law (posted April 18, 2002).

< Falcon Helicopters, Inc. v. Illinois Department of Revenue, Illinois Circuit Court No. 01 CH 3578 (transferred to Law Division): Affirmed Department's assessment of use Tax on a corporate helicopter ( posted April 23, 2002).

< BET, plc v. Illinois Department of Revenue, Illinois Circuit Court No. 01 L 50502: Court determined that the property's overall use, not the Taxpayer's overall business determines the eligibility for the interim use exemption (posted 27, 2002).

< 2121 Arlington Heights Road Corp. v. Illinois Department of Revenue, Illinois Circuit Court, No. 01 L 50026: affirms that Section 2-1401 of the Illinois Code of Civil Procedure does not apply to administrative proceedings before the Department under the Illinois Income Tax Act (posted September 23, 2002).

< TV Guide, Inc., F/K/A United Video Satellite Group, Inc. v. Illinois Department of Revenue, Illinois Circuit Court No. 00 L 50616: Challenge to Payments included in Taxpayer's denominator of their property factor as rental of tangible personal property (posted September 23, 2002).

< Andrzej Powroznik v. Illinois Department of Revenue, Illinois Circuit Court No. 00 CH 17878: Affirming Department's Notice of Penalty Liability for Responsible Corporate Officer ( posted October 2, 2002).

C. Membership

Tom Battista discussed technology as the best way to serve and increase membership. Ideas discussed included obtaining e-mail lists, recruiting members through newsletter advertisements, contacting other organizations such as the Illinois CPA Society, handing out applications at CLE programs, discounting new members at membership drives, sending surveys to membership, phoning people when they leave membership, and providing interest to non-tax practitioners.

D. Unauthorized practice of law

No report.

E. Exemption Streamlining

No report.

F. Treasurer's Issues

Martha Mills discussed that the treasurer has two issues on the current legislative agenda for the administrative sale in error draft: (1) changing the format on the Take Notices, and (2) assessing penalties on default buyers (those who bid but do not pay).

Martha also discussed that the treasurer's office is working on ways to revise the list of addresses for tax sale notices.

G. Strategic Planning

Chair Tim Moran discussed technology and membership. He also stated that they are obtaining schedules of other section Councils and will be presenting State and Local Section Council benefits.

Regarding the Continuing Legal Education Seminar, Tim stated there were four proposals: (1) the seminar should be one day to help attendance. (2) the morning and afternoon sessions should be separate and distinct. The morning session should be for general practitioners and the afternoon session should be for experts. (3) have a luncheon with a forum for elected officials to state their views on these matters. (4) change the date of the seminar so that we will timely address and discuss the 2003 legislation.

H. Web site Development

Mary Ann Connelly stated that some of Judge White's cases are currently on the web site, as are some Rule 23 cases. Mary Ann also stated that the recent survey to membership showed no complaints about the web site. Any suggestions please contact Mary Ann.

VII. Liaison Reports

A. Administrative Code Re-codification

Judge White stated that with the new administration and secretary of state, there should be some new direction and movement on re-codification.

B. Civil Practice Section Council Liaison

No report.

C. Local Government Liaison

No report.

D. ISBA Bar News

John encouraged members to contact Steve Anderson of the ISBA for any publicity or announcements.

E. Attorney General Opinions

No new opinions.

VIII. Old Business

A. TIF Update

Judge White stated that any section council members not receiving the TIF newsletter should contact Mary McDermott.

B. Status of PTAB Appeals (Bosch and Lurie Cases)

Karen Dimond stated that the oral arguments for Lurie were on November 12. In the Bosch case, the petition for rehearing was filed. The Sears case is the final decision of the Appellate Court which conflicts with Bosch.

IX. New Business

A. Transfer of a Law Practice (Exhibit E)

Chair Jim Chipman said to direct any comments, questions or concerns to Donna Schechter, dschecht@isba.org, or via fax, 217-525-9063.

X. Future Meetings

Chair Jim Chipman set the next meeting for Friday, January 31, 2003 at 12:00 noon at the ISBA Chicago Regional Office, 20 S. Clark Street, Suite 900.

XI. Informational Items

A. Illinois Tax Facts (Exhibit F)

B. E-Travel 4 Less (Exhibit G)

XII. Adjournment

The meeting concluded near the appointed closing hour:

Respectfully submitted,

John G. Locallo

Secretary