Appeal
from the Circuit Court of the 14th Judicial Circuit, Rock
Island County, Illinois. Circuit No. 17-TX-2 The Honorable
James G. Conway Jr., Judge, presiding.
JUSTICE CARTER delivered the judgment of the court, with
opinion. Presiding Justice Schmidt and Justice O'Brien
concurred in the judgment and opinion.
OPINION
CARTER
JUSTICE.
¶
1 Plaintiffs, Kevin and Jill Shrake, filed a tax objection
complaint in the trial court to challenge the denial of their
application for the general homestead exemption for the 2015
real property taxes (payable in 2016). Defendant, the Rock
Island County Treasurer, opposed the tax objection complaint.
Both sides filed motions for summary judgment. After a
hearing on the motions, the trial court granted
defendant's motion and denied plaintiffs'. Plaintiffs
filed a motion to reconsider, which the trial court also
denied. Plaintiffs appeal. We reverse the trial court's
ruling and remand with directions to the trial court to enter
an order granting plaintiffs' motion for summary judgment
and for any other further necessary proceedings consistent
with our ruling in this case.
¶
2 FACTS
¶
3 In June 2012, plaintiffs signed a multiyear lease agreement
[1] and
an option to purchase agreement as to a certain single family
residence in Moline, Rock Island County, Illinois, which
plaintiffs occupied as their primary residence. The residence
was owned by First Financial Group, L.C. (First Financial).
Both the lease and option agreements were subsequently
recorded.
¶
4 Of relevance to this appeal, the June 2012 lease agreement
provided, in pertinent part, as follows:
"3. Lessee shall be liable for the payment of real
estate taxes with respect to the residence in accordance with
the terms and conditions of 35 ILCS 200/15-175 and for
insurance. The parcel number for the premises is SM-6819,
and, according to the most recent property tax bill, the
current amount of real estate taxes associated with the
premises is $3, 214.44 per year. The parties agree that the
additional rent set forth above shall be increased or
decreased pro rata (effective January 1 of each
calendar year) to reflect any increase or decrease in real
estate taxes and insurance. Lessee shall be deemed to be
satisfying Lessee's liability for the above mentioned
real estate taxes and insurance with the additional rent
payments as set forth above (or increased or decreased as set
forth herein). Lessee may deduct the real estate taxes paid.
Lessee agrees to sign up for the General Homestead Exemption
in a timely manner. Lessor and Lessee agree to notify the
Assessment Office of any change in occupancy that would
result in a loss of said exemption."
Additional
paragraphs in the lease agreement provided that the
property-tax and liability-insurance bills would actually be
paid by the lessor (First Financial) and that the lessees
(plaintiffs) could forfeit all sums that they had paid under
the lease agreement if they failed to pay rent or any other
amount that they owed within a specified period of time.
¶
5 In February 2015, the lease and option agreements were
amended. Of relevance to this appeal, the amendment provided,
in pertinent part, that
"1. Lessee shall be liable for the payment of real
estate taxes with respect to the residence in accordance with
the terms and conditions of 35 ILCS 200/15-175 and for
insurance, which Lessee shall pay out of their own funds. The
Parcel Identification Number for the premises is 1709108062
[handwritten], and, according to the most recent property tax
bill, the current amount of real estate taxes associated with
the premises per year is $3, 176.48 [handwritten]. The tax
bill shall be mailed directly to the Lessee. The parties
agree that the amount payable for taxes and insurance shall
be increased or decreased pro rata (effective
January 1 of each calendar year) to reflect any increase or
decrease in real estate taxes and insurance. Lessee may
satisfy its liability for the above-mentioned real estate
taxes and insurance by making the additional payments as set
forth above (or increased or decreased as set forth herein).
Such funds shall at all times be the property of Lessee[;]
however, Lessor shall hold such funds in escrow on
Lessee's behalf for payment of the same. Lessee may
deduct the real estate taxes paid on their income tax return.
Lessee agrees to sign up for the General Homestead Exemption
and any other tax [sic] property tax relief
exemptions in a timely manner. Lessor and Lessee agree to
notify the Assessment Office of any change in occupancy that
would result in a loss of said exemption. Lessee hereby
irrevocably appoints Richard I. Vesole as its attorney in
fact for purposes of signing up for the General Homestead
Exemption and/or any other property tax relief exemptions
which Lessee may be eligible for. Richard I. Vesole, as such
attorney in fact, may execute all documents on Lessee's
behalf in connection therewith."
The
February 2015 amendment also provided that plaintiffs could
forfeit all sums that they had paid under the lease or option
agreements (or the amendment) if they failed to comply with
any of the terms of the agreements or if they failed to
exercise the option agreement before the date specified. The
amendment further provided that, in all other respects, the
original lease and option agreements were to remain in full
force and effect.
¶
6 In March 2015, plaintiffs filed a notarized application
with the assessment office in Rock Island County to receive
the general homestead exemption for the 2015 real property
taxes (payable in 2016). The application form, which
apparently had been established by the assessment office, was
divided into three main sections. The first section contained
the instructions for preparing the application. Among other
things, the instructions section stated that the following
requirements had to be satisfied for a lessee to be eligible
for the general homestead exemption: (1) the property had to
be a single-family home occupied as the primary residence by
an eligible taxpayer as of January 1, 2015, (2) the eligible
taxpayer had to be liable for paying the 2015 real estate
taxes on the property as evidenced by a written lease that
was executed and effective on or before January 1, 2015, and
was duly recorded, (3) the property owner had to direct that
the property tax bill be mailed directly to the lessee, and
(4) the eligible taxpayer's lease had to require that the
lessee pay the real estate taxes out of the lessee's own
funds. The text of the fourth requirement included the
following comment: "a statement such as 'Tenant
shall be deemed to be satisfying Tenant's liability for
such real estate taxes through the monthly rent payments'
is NOT sufficient for this purpose."
¶
7 The second section of the application contained the
property identification information and listed the name and
address of the owner of the property, the address and parcel
identification ...