Central Illinois Light Co. v. Johnson 418 N.E.2d 696 (ICentrll. 1981)
N/AOUTCOME: Seminal case barring taxation of machinery
This is the seminal case on the thorny issue of what constitutes taxable real property in Illinois. When Illinois abolished personal property taxation, the county attempted to assess fixed machinery a ... nd equipment as real property. The taxpayer filed an original appeal in the Illinois Supreme Court and avoided years of costly litigation. The Supreme Court ruled in the taxpayer’s favor and held that property which had been assessed as personal property could not be taxed as real property. While the case was a significant victory for taxpayers, major industrial taxpayers continue to face attempts to tax process machinery and equipment. See, e.g. Board of Education v. Illinois Property Tax Appeal Board 822 N.E.2nd 550 (Ill. App. 2005).
