National Holdings, Inc. v. Zehnder

              NO. 4-06-0148 Filed 1/19/07
IN THE APPELLATE COURT
OF ILLINOIS
FOURTH DISTRICT
NATIONAL HOLDINGS, INC.,
Plaintiff-Appellee,
v.
KENNETH E. ZEHNDER, Director of the
Department of Revenue of the State of
Illinois; and JUDY BAAR TOPINKA,
Illinois State Treasurer,
Defendants-Appellants.
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Appeal from
Circuit Court of
Sangamon County
No. 98CH443
Honorable
John W. Belz,
Judge Presiding.
______________________________________________________________
JUSTICE TURNER delivered the opinion of the court:
In October 1998, plaintiff, National Holdings, Inc.
(National Holdings), filed a complaint pursuant to the State
Officers and Employees Money Disposition Act (Act) (30 ILCS 230/1
through 6a (West 1998)) against defendants, Kenneth E. Zehnder,
Director of the Department of Revenue of the State of Illinois,
and Judy Baar Topinka, Illinois State Treasurer (collectively
Department), following the Department's notice of income-tax
deficiency under the Illinois Income Tax Act (Income Tax Act) (35
ILCS 5/101 through 1701 (West 1994)). National Holdings made a
protested payment of $527,549 pursuant to the Act. The parties
later filed cross-motions for summary judgment, and in January
2006, the trial court granted summary judgment in favor of
National Holdings.
On appeal, defendants argue the trial court erred in
holding National Holdings' gain was nonbusiness income. We
affirm.