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Full Text of SB1791  100th General Assembly




State of Illinois
2017 and 2018


Introduced 2/9/2017, by Sen. Steve Stadelman


35 ILCS 200/16-180
35 ILCS 200/16-181 new

    Amends the Property Tax Code. Provides that in all cases where a change in assessed valuation greater than $300,000 is sought, the Property Tax Appeal Board shall make an independent determination of valuation. Provides criteria for determining which comparable properties are to be used, together with requirements and criteria for making the independent determination of valuation. Makes a conforming change. Effective immediately.

LRB100 05852 HLH 15877 b






SB1791LRB100 05852 HLH 15877 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Section 16-180 and by adding Section 16-181 as follows:
6    (35 ILCS 200/16-180)
7    Sec. 16-180. Procedure for determination of correct
8assessment. The Property Tax Appeal Board shall establish by
9rules an informal procedure for the determination of the
10correct assessment of property which is the subject of an
11appeal, subject to the requirements of Section 16-181. The
12procedure, to the extent that the Board considers practicable,
13shall eliminate formal rules of pleading, practice and
14evidence, and except for any reasonable filing fee determined
15by the Board, may provide that costs shall be in the discretion
16of the Board. A copy of the appellant's petition shall be
17mailed or sent by electronic means by the clerk of the Property
18Tax Appeal Board to the board of review whose decision is being
19appealed. In all cases where a change in assessed valuation of
20$100,000 or more is sought, the board of review shall serve a
21copy of the petition on all taxing districts as shown on the
22last available tax bill. The chairman of the Property Tax
23Appeal Board shall provide for the speedy hearing of all such



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1appeals. Each appeal shall be limited to the grounds listed in
2the petition filed with the Property Tax Appeal Board. All
3appeals shall be considered de novo and the Property Tax Appeal
4Board shall not be limited to the evidence presented to the
5board of review of the county. A party participating in the
6hearing before the Property Tax Appeal Board is entitled to
7introduce evidence that is otherwise proper and admissible
8without regard to whether that evidence has previously been
9introduced at a hearing before the board of review of the
10county. Where no complaint has been made to the board of review
11of the county where the property is located and the appeal is
12based solely on the effect of an equalizing factor assigned to
13all property or to a class of property by the board of review,
14the Property Tax Appeal Board shall not grant a reduction in
15assessment greater than the amount that was added as the result
16of the equalizing factor.
17    The provisions added to this Section by this amendatory Act
18of the 93rd General Assembly shall be construed as declaratory
19of existing law and not as a new enactment.
20(Source: P.A. 99-626, eff. 7-22-16.)
21    (35 ILCS 200/16-181 new)
22    Sec. 16-181. Property Tax Appeal Board; determinations.
23    (a) Subject to subsection (b), in all cases where a change
24in assessed valuation greater than $300,000 is sought, the
25Property Tax Appeal Board shall make an independent



SB1791- 3 -LRB100 05852 HLH 15877 b

1determination of and separately state its findings of fact and
2conclusions of law as to all of the following, in the following
4        (1) the market in which the property subject to
5    assessment competes, the supply and demand for the
6    property, the demand for potential uses of the property,
7    and the economic viability of the property at the specific
8    location within the market in which it competes;
9        (2) The reasonably probable use to which the property
10    subject to assessment can be put in the immediate future
11    and the present use of the property that results in the
12    highest and best use, subject to all of the following:
13            (A) the Board shall state its findings of fact and
14        conclusions of law as to the uses that are physically
15        possible;
16            (B) the Board shall state its findings of fact and
17        conclusions of law as to the uses that are legally
18        permissible under applicable land use legislation,
19        regulations, easements, ordinances, or other
20        encumbrances existing on the tax day;
21            (C) the Board shall state its findings of fact and
22        conclusions of law as to the uses that are financially
23        feasible; for the purposes of this subparagraph (C), a
24        use is financially feasible if it will produce income
25        from or value to the property after considering all
26        risks and costs necessary to create and maintain the



SB1791- 4 -LRB100 05852 HLH 15877 b

1        use; in determining financial feasibility, the Board
2        shall determine the value of the land in the market
3        area, the value of all improvements to the land, the
4        cost to convert or renovate the land, and existing
5        improvements to support the use; and
6            (D) the Board shall state its findings of fact and
7        conclusions of law as to the maximally productive use
8        that meets the requirements of subparagraphs (A) to (C)
9        of this paragraph (2) and results in the highest value
10        that can be appropriately supported.
11        (3) The calculation of a replacement or reproduction
12    construction cost for property that has the same highest
13    and best use and the same utility, features, and age as the
14    property subject to assessment.
15        (4) The comparable properties in the market in which
16    the property subject to assessment competes that have the
17    same highest and best use as the property subject to
18    assessment; in determining comparable properties, the
19    Board shall do all of the following:
20            (A) Determine that the information for each
21        property considered to be comparable has been verified
22        and accurately and completely discloses all private
23        restrictions and covenants on the use of the property,
24        the impact of those private restrictions and
25        covenants, the terms of the sale, the method of
26        financing, and market information.



SB1791- 5 -LRB100 05852 HLH 15877 b

1            (B) Include only property considered to be
2        comparable with a use that is the same as the highest
3        and best use of the property subject to assessment in
4        accordance with paragraph (2) of subsection (a).
5            (C) Include property considered to be comparable
6        only if the sale or rental of the property occurred
7        under economic conditions that were not substantially
8        different from the highest and best use of the property
9        subject to assessment unless there is substantial
10        evidence that the economic conditions are common at the
11        location of the property subject to assessment.
12            (D) Include property considered to be comparable
13        that was vacant at the time of sale only if there is
14        substantial evidence to support all of the following:
15                (i) The cause of the vacancy is typical for
16            marketing properties of the same class or there is
17            substantial evidence to support a method of
18            adjusting the value of the vacant comparable
19            property, to support the extent of the adjustment,
20            and to support a conclusion that the final adjusted
21            value for the vacant property is not speculative.
22                (ii) The time of the vacancy is within the
23            marketing exposure time period typical for
24            properties of the same class or there is
25            substantial evidence to support a method of
26            adjusting the value of the vacant comparable



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1            property, to support the extent of the adjustment,
2            and to support a conclusion that the final adjusted
3            value for the vacant property is not speculative.
4                (iii) The vacancy does not reflect a use
5            different from the highest and best use of the
6            property subject to assessment.
7                (iv) The vacancy is not the result of economic
8            or market conditions that are different from the
9            property subject to assessment or there is
10            substantial evidence to support a method of
11            adjusting the value of the vacant comparable
12            property, to support the extent of the adjustment,
13            and to support a conclusion that the final adjusted
14            value for the vacant property is not speculative.
15            (E) Exclude property considered to be comparable
16        that was made subject to a private restriction or
17        covenant in connection with the sale or rental of the
18        property if that private restriction or covenant
19        causes the comparable property to have a substantially
20        impaired highest and best use as compared to the
21        property subject to assessment or if that private
22        restriction or covenant does not assist in the economic
23        development of the property, does not provide a
24        continuing benefit to the property, or materially
25        increases the likelihood of vacancy or inactivity on
26        the property.



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1        (5) The basis for all of the following:
2            (A) Selecting the most relevant units and basis for
3        comparison consistent with the treatment in the market
4        of comparable property.
5            (B) Adjusting the comparable properties for
6        differences in location, age, size, physical condition
7        and characteristics, function, rental terms, financing
8        and other income use, economic characteristics, legal
9        characteristics, and other components that influence
10        the value.
11            (C) Excluding any comparable property pursuant to
12        paragraph of (4) of this subsection (a).
13        (6) The method of valuation, subject to all of the
14    following:
15            (A) In determining the method of valuation, the
16        Board shall use, weigh, and reconcile:
17                (i) the method of valuation used by the
18            assessor; and
19                (ii) all of the following methods of
20            valuation: comparable sales; capitalization of
21            income; and cost less depreciation.
22            (B) In using, weighing, and reconciling the
23        methods of valuation under subparagraph (A) of this
24        paragraph (6), the Board shall state whether the
25        information supporting each method of valuation is
26        accurate and reliable and shall, as it considers



SB1791- 8 -LRB100 05852 HLH 15877 b

1        necessary, require additional information from the
2        parties to determine a value that is credible and not
3        speculative.
4            (C) The Board shall not disregard any method of
5        valuation identified in subparagraph (A) of this
6        paragraph (6) absent a reasonable justification
7        supported by substantial evidence or a stipulation
8        that complies with the requirements of paragraph (1) of
9        subsection (b).
10    (b) The Board's determinations under subsection (a) are
11subject to all of the following:
12        (1) The Board may consider the parties' stipulation to
13    a finding of fact or conclusion of law under subsection (a)
14    only if the parties further provide a stipulated
15    explanation of the evidentiary basis for that finding of
16    fact or conclusion of law that comports with the
17    evidentiary basis required for an independent Board
18    determination under subsection (a).
19        (2) For each finding of fact under subsection (a), the
20    Board shall separately identify supporting evidence that
21    is substantial and reliable and has been verified.
22        (3) If the evidence on the record does not constitute
23    substantial evidence, the Board shall require additional
24    evidence from the parties sufficient to support a
25    conclusion that the Board has reached an independent
26    determination.



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1        (4) All of the Board's determinations under subsection
2    (a) shall be made in accordance with generally accepted
3    appraisal principles, including the "Uniform Standards of
4    Professional Appraisal Practice" promulgated by the
5    Appraisal Foundation.
6    (c) As used in this Section, "private restriction or
7covenant" means a requirement, provision, or statement in a
8deed, lease, or contract that restrains or limits the use of
9the property or requires a use of the property.
10    Section 99. Effective date. This Act takes effect upon
11becoming law.