Friendship Manor, Inc. v. Wilson
2017 IL App (3d) 160391
Ill. App. Ct.2017Background
- Friendship Manor, an Illinois nonprofit operating a licensed life care facility, historically sought and received general and senior homestead property-tax exemptions for residents.
- In 2014, Rock Island County Supervisor of Assessments Larry Wilson determined Friendship Manor (and its residents) were not entitled to the general homestead exemption under 35 ILCS 200/15-175(f), reasoning the facility was not a cooperative.
- Friendship Manor filed a nonfarm valuation complaint with the County Board of Review and also filed a declaratory-judgment action in circuit court seeking a declaration that its residents were eligible for the general homestead exemption.
- The school district intervened, arguing successful relief would reduce tax revenue; Wilson moved for summary judgment, and the circuit court held residents lacked legal or equitable ownership necessary for exemption and entered judgment for Wilson and the district.
- On appeal, the court addressed whether the circuit court had jurisdiction given Friendship Manor did not exhaust statutory administrative remedies before seeking declaratory relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether circuit court had jurisdiction over declaratory action attacking assessor's denial of exemption | Friendship Manor: declaratory relief proper because assessor acted without legal authority; exception to administrative-exhaustion applies when tax is unauthorized | Wilson: Property Tax Code provides exclusive administrative remedy; plaintiff must exhaust Board of Review remedies before suing in circuit court | Held: No jurisdiction — plaintiff had to exhaust administrative remedies; declaratory relief inappropriate here |
| Whether residents qualify for general homestead exemption under §15-175(f) | Friendship Manor: residents are eligible; Friendship Manor functions as a cooperative and applied exemptions historically | Wilson: residents not eligible because facility is not a cooperative and residents lack ownership interest | Court did not reach merits; held that lack of administrative exhaustion deprived court of jurisdiction, so assessments stand |
Key Cases Cited
- Blount v. Stroud, 232 Ill. 2d 302 (Ill. 2009) (standard of review for subject-matter jurisdiction is de novo)
- Millennium Park Joint Venture, LLC v. Houlihan, 241 Ill. 2d 281 (Ill. 2010) (taxpayers must exhaust statutory administrative remedies before seeking judicial relief)
- Fox v. Rosewell, 55 Ill. App. 3d 860 (Ill. App. Ct. 1977) (declaratory relief appropriate where constitutional challenge or statute invalidity at issue)
- County of Knox ex rel. Masterson v. The Highlands, L.L.C., 188 Ill. 2d 546 (Ill. 1999) (equitable relief available when statutory remedy is inadequate, e.g., zoning exemption issues)
- KT Winneburg, LLC v. Calhoun County Board of Review, 403 Ill. App. 3d 744 (Ill. App. Ct. 2010) (subject-matter jurisdiction cannot be waived and administrative-exhaustion requirement applies)
- In re Marriage of Schlam, 271 Ill. App. 3d 788 (Ill. App. Ct. 1995) (orders entered by a court lacking jurisdiction are void ab initio)