Cuevas v. Berrios
2017 IL App (1st) 151318
| Ill. App. Ct. | 2017Background
- Daniel Cuevas claimed homestead (partial) property tax exemptions on 11 Cook County properties though only one was his principal residence; the assessor alleged 10 were improper.
- Illinois enacted 35 ILCS 200/9-275 (effective July 16, 2013) establishing procedures for Cook County to recover taxes, interest, and penalties where taxpayers took erroneous homestead exemptions, including a 2013 amnesty period and a pre-lien notice plus administrative hearing process (DEHE).
- Cuevas received notices in 2014 of intent to record tax liens on 11 properties, requested hearings, and the DEHE found him liable for erroneous exemptions for tax years 2007–2012, assessing $91,984.85 (taxes, penalties, interest).
- Cuevas filed two suits: a class-action (No. 15 CH 2321) challenging the statute’s constitutionality and retroactivity; and an administrative-review action (No. 15 CH 169) challenging the DEHE decision. Different judges heard each case.
- The circuit court dismissed the class-action complaint (sustaining the statute against the challenges). In the administrative-review case the court reversed DEHE only as to the 2007 tax year (finding the statute’s six-year reach did not include 2007); both rulings were appealed and consolidated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether section 9-275 applies to pre-2013 tax years or only post-enactment years | Cuevas: statute cannot reach taxes delinquent before July 16, 2013; retroactive application violates due process | Defendants: plain language shows statute reaches prior years; amnesty and statutory language support retroactive application to prior tax years | Court: statute applies to pre-2013 tax years; application is not impermissibly retroactive and does not violate due process |
| Whether section 9-275 violates Illinois revenue article (uniformity) by applying only to Cook County | Cuevas: singling out Cook County creates nonuniform taxation, violating article IX §4 | Defendants: statute addresses collection mechanism, not a tax, and applies within a tax district uniformly; classification by population is rational | Court: claim fails—statute regulates collection, not tax imposition; uniformity clause not violated |
| Whether section 9-275 violates equal protection by treating counties differently | Cuevas: statute unconstitutionally creates different systems for different counties | Defendants: population-based classification is rationally related to legislative objectives | Court: upheld classification as rational; equal protection challenge fails |
| Whether DEHE could assess the 2007 tax year under 9-275’s six-year lookback (statutory construction) | Cuevas: sought to invalidate DEHE’s 2007 assessment (argued statute’s six-year window did not include 2007) | Defendants: argued variously that “assessment year” should be read to include 2007 (payment-in-arrears, amnesty language, or later amendment showing intent) | Court: statutory text at time of notice ("6 assessment years immediately prior to the assessment year in which the notice...is served") meant 2008–2013 for a 2014 notice; DEHE erred including 2007, so reversal as to 2007 was affirmed |
Key Cases Cited
- Marshall v. Burger King Corp., 222 Ill. 2d 422 (establishes standard for section 2-615 motion to dismiss)
- Hayashi v. Illinois Department of Financial & Professional Regulation, 2014 IL 116023 (explains when a statute is impermissibly retroactive and distinguishes prospective-imposed requirements)
- General Telephone Co. of Illinois v. Johnson, 103 Ill. 2d 363 (describes retroactive tax measures and due process analysis)
- Landgraf v. USI Film Products, 511 U.S. 244 (federal rule: statute is not retroactive merely because it draws on antecedent facts)
- Welch v. Henry, 305 U.S. 134 (federal precedent on retroactivity in tax/statutory contexts)