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91_HB1778enr
HB1778 Enrolled LRB9103278PTpr
1 AN ACT to amend the Property Tax Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Sections 17-5, 17-10, 17-15, 17-20, 17-25, 17-30, 17-35,
6 31-15, 31-25, 31-30, 31-35, 31-45, 31-50, 31-60, and 31-70
7 and adding Section 31-47 as follows:
8 (35 ILCS 200/17-5)
9 Sec. 17-5. Equalization among counties. The Department
10 shall act as an equalizing authority. It shall examine the
11 abstracts of property assessed for taxation in the counties
12 and in the assessment districts in counties having assessment
13 districts, as returned by the county clerks, and shall
14 equalize the assessments between counties as provided in this
15 Code. Except as hereinafter provided, the Department shall
16 lower or raise the total assessed value of property in each
17 any county as returned by the county clerk, other than
18 property assessed under Sections 10-110 through 10-140 and
19 10-170 through 10-200, so that the property will be assessed
20 at 33 1/3% of its fair cash value.
21 The Department shall annually determine the percentage
22 relationship, for each county of the State, between the
23 valuations at which locally-assessed property, other than
24 property assessed under the Sections 10-110 through 10-140
25 and 10-170 through 10-200, as is listed by assessors and
26 revised by boards of review or boards of appeal, and the
27 estimated 33 1/3% of the fair cash value of the property. To
28 make this analysis, the Department shall use property
29 transfers, property appraisals, and other means as it deems
30 proper and reasonable.
31 With the ratio determined for each county, the
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1 Department shall then determine the percentage to be added to
2 or deducted from the aggregate reviewed assessment on
3 property subject to local assessment jurisdiction, other than
4 property assessed under the Sections cited above, to produce
5 a ratio of assessed value to 33 1/3% of the fair cash value
6 equivalent to 100%.
7 If the Department determines that there are substantial
8 differences in the level of assessment among different
9 townships in the same county, it shall, upon the request of
10 the county executive or, in counties not having an elected
11 county executive, of the county board under a resolution
12 adopted by the board, apply separate township equalization
13 factors determined by the Department, in lieu of a single
14 equalization factor for the entire county, but this provision
15 does not apply within any county which elects a county
16 assessor under Sections 3-45 or 3-50.
17 (Source: P.A. 84-1343; 88-455.)
18 (35 ILCS 200/17-10)
19 Sec. 17-10. Sales ratio studies. The Department shall
20 monitor the quality of local assessments by designing,
21 preparing and using ratio studies, and shall use the results
22 as the basis for equalization decisions. In compiling sales
23 ratio studies, the Department shall exclude from the reported
24 sales price of any property any amounts included for personal
25 property and, for sales occurring through December 31, 1999,
26 shall exclude seller paid points. The Department shall not
27 include in its sales ratio studies sales of property which
28 have been platted and for which an increase in the assessed
29 valuation is restricted by Section 10-30. The Department
30 shall not include in its sales ratio studies the initial sale
31 of residential property that has been converted to
32 condominium property.
33 When the declaration required under the Real Estate
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1 Transfer Tax Law contains financing information required
2 under Section 31-25, the Department shall adjust sales prices
3 to exclude seller-paid points and shall adjust sales prices
4 to "cash value" when seller related financing is used that is
5 different than the prevailing cost of cash. The prevailing
6 cost of cash for sales occurring on or after January 1, 1992
7 shall be established as the monthly average 30-year fixed
8 Primary Mortgage Market Survey rate for the North Central
9 Region as published weekly by the Federal Home Loan Mortgage
10 Corporation, as computed by the Department, or such other
11 rate as determined by the Department. This rate shall be
12 known as the survey rate. For sales occurring on or after
13 January 1, 1992, through December 31, 1999, adjustments in
14 the prevailing cost of cash shall be made only after the
15 survey rate has been at or above 13% for 12 consecutive
16 months and will continue until the survey rate has been below
17 13% for 12 consecutive months. For sales occurring on or
18 after January 1, 2000, adjustments for seller paid points and
19 adjustments in the prevailing cost of cash shall be made only
20 after the survey rate has been at or above 13% for 12
21 consecutive months and will continue until the survey rate
22 has been below 13% for 12 consecutive months. The Department
23 shall not include in its sales ratio studies the initial sale
24 of residential property that has been converted to
25 condominium property. The Department shall make public its
26 adjustment procedure upon request.
27 (Source: P.A. 86-1481; 87-877; 88-455.)
28 (35 ILCS 200/17-15)
29 Sec. 17-15. Tentative equalization factor. The
30 Department shall forward to the County Clerk of each county
31 in each year its estimate of the percentage, established
32 under Section 17-5, to be added to or deducted from the
33 aggregate of the locally assessed property in that county,
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1 other than property assessed under Sections 10-110 through
2 10-140 and 10-170 through 10-200. The percentage relationship
3 to be certified to each county or to the several townships
4 therein by the Department as provided by Section 17-25 shall
5 be determined by the ratio between the percentage estimate so
6 made and forwarded, as provided by this Section, and the
7 level of assessments of the assessed valuations as made by
8 the assessors and thereafter finally revised by the board of
9 review or board of appeals of that county. Such estimate
10 shall be forwarded by the Department to the County Clerk of
11 any County within 15 days after the chief county assessment
12 officer files with the Department an abstract of the
13 assessments of the locally assessed property in the county,
14 as finally revised. The abstract shall be in substantially
15 the same form as required of the County Clerk by Sections
16 9-250 and 9-255 after completion of the revisions thereafter
17 to be made by the board of review or board of appeals of the
18 county, except that the abstract shall specify separately the
19 amount of omitted property, and the amount of improvements
20 upon property assessed for the first time in that year. The
21 chief county assessment officer shall forward the abstract to
22 the Department within 30 days after returning the county
23 assessment books to the county board of review or board of
24 appeals.
25 (Source: P.A. 86-905; 88-455.)
26 (35 ILCS 200/17-20)
27 Sec. 17-20. Hearing on tentative equalization factor.
28 The Department shall, after publishing its tentative
29 equalization factor and giving notice of hearing to the
30 public in a newspaper of general circulation in the county,
31 hold a hearing on its estimate not less than 10 days nor more
32 than 30 days from the date of the publication. The notice
33 shall state the date and time of the hearing, which shall be
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1 held in either Chicago or Springfield, the basis for the
2 estimate of the Department, and further information as the
3 Department may prescribe. The Department shall, after giving
4 a hearing to all interested parties and opportunity for
5 submitting testimony and evidence in support of or adverse to
6 the estimate as the Department considers requisite, either
7 confirm or revise the estimate so as to correctly represent
8 the considered judgment of the Department respecting the
9 estimated percentage to be added to or deducted from the
10 aggregate assessment of all locally assessed property in the
11 county except property assessed under Sections 10-110 through
12 10-140 or 10-170 through 10-200. Within 30 days after the
13 conclusion of the hearing the Department shall mail to the
14 County Clerk, by certified mail, its determination with
15 respect to such estimated percentage to be added to or
16 deducted from the aggregate assessment. The amendment made
17 by P.A. 77-714 does not apply in any county which elects a
18 county assessor under Sections 3-45 or 3-50.
19 (Source: P.A. 86-905; 88-455.)
20 (35 ILCS 200/17-25)
21 Sec. 17-25. Application of final equalization factor.
22 The assessments of all property, other than property assessed
23 under Sections 10-110 through 10-140 and 10-170 through
24 10-200, as returned by the county clerks, shall be equalized
25 by adding to the aggregate assessed value thereof in every
26 county in which the Department finds the valuation to be less
27 than 33 1/3% of the fair cash value of the property, the rate
28 per cent which will raise the aggregate assessed valuation to
29 33 1/3% of fair cash value, and by deducting from the
30 aggregate assessed value thereof, in every county or township
31 or township in which the aggregate assessed value
5 of property other than that assessed under the Sections cited
6 above, is more than 99% and less than 101% of 33 1/3% of fair
7 cash value. The amendment made by P.A. 77-714 does not apply
8 within the jurisdiction of any county which elects a county
9 assessor under Sections 3-45 or 3-50.
10 (Source: P.A. 84-1343; 88-455.)
11 (35 ILCS 200/17-30)
12 Sec. 17-30. Certification of final equalization factor.
13 When the Department has completed its equalization of
14 assessments in each year, it shall certify to each the
15 several county clerk clerks the percentage finally determined
16 by it to be added to or deducted from the listed or assessed
17 valuation of property in the county several counties or
18 townships as returned by the county clerk.
19 (Source: P.A. 78-255; 88-455.)
20 (35 ILCS 200/17-35)
21 Sec. 17-35. Certification of assessments. The Department
22 shall certify to the county clerks of the proper counties the
23 assessments made by it on certified pollution control
24 facilities, low sulfur dioxide emission coal fueled devices
25 and on property owned or used by railroad companies operating
26 within this State, along with the distribution of those
27 railroad assessments among the respective taxing districts
28 within the counties. The county clerks shall extend the taxes
29 for all purposes on the amounts so certified, in the same
30 manner as taxes are extended against other property in the
31 taxing districts in which the pollution control facilities,
32 low sulfur dioxide emission coal fueled devices and railroad
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1 property are allocated or distributed.
2 The amendment made by P.A. 77-714 does not apply within
3 the jurisdiction of any county which elects a county assessor
4 under Sections 3-45 or 3-50.
5 (Source: P.A. 78-255; 88-455.)
6 (35 ILCS 200/31-15)
7 Sec. 31-15. Collection of tax. The tax shall be
8 collected by the recorder or registrar of titles of the
9 county in which the property is situated several counties
10 through the sale of revenue stamps, the design, denominations
11 and form of which shall be prescribed by the Department. If
12 requested by the recorder or registrar of titles of a county
13 that has imposed a county real estate transfer tax under
14 Section 5-1031 of the Counties Code, the Department shall
15 design the stamps furnished to that county under this Section
16 so that the same stamp also provides evidence of the payment
17 of the county real estate transfer tax and shall include in
18 the design of the stamp the name of the county and an
19 indication that the stamp is evidence of the payment of both
20 State and county real estate transfer taxes. The revenue
21 stamps shall be sold by the Department to the recorder or
22 registrar of titles who shall cause them to be sold for the
23 purposes prescribed. The Department shall charge at a rate of
24 50¢ per $500 of value in units of not less than $500. The
25 recorder or registrar of titles of the several counties shall
26 sell the revenue stamps at a rate of 50¢ per $500 of value or
27 fraction of $500. The recorder or registrar of titles may use
28 the proceeds for the purchase of revenue stamps from the
29 Department.
30 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
31 88-455.)
32 (35 ILCS 200/31-25)
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1 Sec. 31-25. Transfer declaration. At the time a deed or
2 trust document is presented for recordation, there shall also
3 be presented to the recorder or registrar of titles a
4 declaration, signed by at least one of the sellers and also
5 signed by at least one of the buyers in the transaction or by
6 the attorneys or agents for the sellers or buyers. The
7 declaration shall state information including, but not
8 limited to: (a) the full consideration for the property so
9 transferred; (b) the parcel identifying permanent real estate
10 index number of the property, if any; (c) the legal
11 description of the property; (d) the date of the deed or
12 trust document; (e) the type of deed or trust document; (f)
13 the address of the property; (g) the type of improvement, if
14 any, on the property conveyed; (h) information as to whether
15 the transfer is between related individuals or corporate
16 affiliates relatives or is a compulsory transaction; (i) that
17 the parties are advised that the State of Illinois has
18 enacted the Smoke Detector Act; and (j) the lot size or
19 acreage; (j) the value of personal property sold with the
20 real estate; (k) the year the contract was initiated if an
21 installment sale; and (l) the name, address, and telephone
22 number of the person preparing the declaration. Except as
23 provided in Section 31-45, a deed or trust document shall not
24 be accepted for recordation unless it is accompanied by a
25 declaration containing all the information requested in the
26 declaration. When the declaration is signed by an attorney
27 or agent on behalf of sellers or buyers who have the power of
28 direction to deal with the title to the real estate under a
29 land trust agreement, the trustee being the mere repository
30 of record legal title with a duty of conveying the real
31 estate only when and if directed in writing by the
32 beneficiary or beneficiaries having the power of direction,
33 the attorneys or agents executing the declaration on behalf
34 of the sellers or buyers need identify only the land trust
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1 that is the repository of record legal title and not the
2 beneficiary or beneficiaries having the power of direction
3 under the land trust agreement. The declaration form shall be
4 prescribed by the Department and shall contain sales
5 information questions. For sales occurring during a period in
6 which the provisions of Section 17-10 require the Department
7 to adjust sale prices for seller paid points and prevailing
8 cost of cash The subject of the sales information questions
9 shall include, but not be limited to, information on
10 compulsory transactions, sales between relatives and related
11 corporations, contractual sales, and deed or trust document
12 types. In addition, the declaration form shall contain
13 questions regarding the financing of the sale. The subject
14 of the financing questions shall include any direct seller
15 participation in the financing of the sale or information on
16 financing that is unconventional so as to affect the fair
17 cash value received by the seller. The intent of the sales
18 and financing questions is to aid in the reduction in the
19 number of buyers required to provide financing information
20 necessary for the adjustment outlined in Section 17-10. For
21 sales occurring during a period in which the provisions of
22 Section 17-10 require the Department to adjust sale prices
23 for seller paid points and prevailing cost of cash, the
24 declaration form shall include, at a minimum, an appropriate
25 place for the inclusion of special facts or circumstances, if
26 any, and shall include the following data: (a) seller paid
27 points, value of personal property sold with the real estate,
28 sales finance charges (points) paid by the seller, (c)
29 the sales price, (c) (d) type of financing (conventional, VA,
30 FHA, seller-financed, or other), (d) (e) down payment, (e)
31 (f) term, (f) (g) interest rate, (g) (h) type and description
32 of interest rate (fixed, adjustable or renegotiable), and (h)
33 an appropriate place for the inclusion of special facts or
34 circumstances, if any. (i) the year the contract was
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1 initiated if a contractual sale, and (j) the name, address
2 and telephone number of the person filling out the real
3 estate transfer declaration. In counties of 3,000,000 or more
4 inhabitants, the declaration shall also contain a sworn or
5 affirmed statement executed by the grantor or the grantor's
6 agent stating that, to the best of his or her knowledge, the
7 name of the grantee shown on the deed or assignment of
8 beneficial interest in a land trust is either a natural
9 person, an Illinois corporation or foreign corporation
10 authorized to do business or acquire and hold title to real
11 estate in Illinois, a partnership authorized to do business
12 or acquire and hold title to real estate in Illinois, or
13 other entity recognized as a person and authorized to do
14 business or acquire and hold title to real estate under the
15 laws of Illinois. In counties of 3,000,000 or more
16 inhabitants, the declaration shall also contain a sworn or
17 affirmed statement executed by the grantee or the grantee's
18 agent verifying that the name of the grantee shown on the
19 deed or assignment of beneficial interest in a land trust is
20 either a natural person, an Illinois corporation or foreign
21 corporation authorized to do business or acquire and hold
22 title to real estate in Illinois, a partnership authorized to
23 do business or acquire and hold title to real estate in
24 Illinois, or other entity recognized as a person and
25 authorized to do business or acquire and hold title to real
26 estate under the laws of Illinois. The Department shall
27 provide an adequate supply of forms to each recorder and
28 registrar of titles in the State.
29 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
30 88-455.)
31 (35 ILCS 200/31-30)
32 Sec. 31-30. Use of transfer declaration. The recorder
33 or registrar of titles shall not record the declaration, but
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1 shall insert on the declaration and all attachments the
2 Document Number assigned to the deed or trust document, and
3 shall within 30 days of receipt then transmit the declaration
4 to the chief county assessment officer. The chief county
5 assessment officer shall insert on the declaration the most
6 recent assessed value for each parcel of the transferred
7 property and other information required by the Department,
8 and, within 30 days of receipt or within 30 days of the
9 adjournment of the board of review for the previous
10 assessment year, whichever is later at least once during
11 every month, shall transmit all the declarations to the
12 Department. The chief county assessment officer may also copy
13 and retain any information relating to the property
14 transferred to assist in determining the proper assessed
15 valuation of the property transferred and other properties in
16 his county.
17 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
18 88-455.)
19 (35 ILCS 200/31-35)
20 Sec. 31-35. Deposit of tax revenue. Beginning July 1,
21 1993 through June 30, 1994, 50% of the monies collected under
22 Section 31-15 shall be deposited into the Illinois Affordable
23 Housing Trust Fund, 10% into the General Revenue Fund, 28%
24 into the Open Space Lands Acquisition and Development Fund
25 and 12% into the Natural Areas Acquisition Fund. Beginning
26 July 1, 1994, 50% of the monies collected under Section 31-15
27 shall be deposited into the Illinois Affordable Housing Trust
28 Fund, 35% into the Open Space Lands Acquisition and
29 Development Fund and 15% into the Natural Areas Acquisition
30 Fund.
31 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
32 88-455.)
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1 (35 ILCS 200/31-45)
2 Sec. 31-45. Exemptions. The following deeds or trust
3 documents shall be exempt from the provisions of this Article
4 except as provided in this Section:
5 (a) Deeds representing real estate transfers made before
6 January 1, 1968, but recorded after that date and trust
7 documents executed before January 1, 1986, but recorded after
8 that date.
9 (b) Deeds to or trust documents relating to (1) property
10 acquired by any governmental body or from any governmental
11 body, (2) property or interests transferred between
12 governmental bodies, or (3) property acquired by or from any
13 corporation, society, association, foundation or institution
14 organized and operated exclusively for charitable, religious
15 or educational purposes. However, deeds or trust documents,
16 other than those in which the Administrator of Veterans'
17 Affairs of the United States is the grantee pursuant to a
18 foreclosure proceeding, shall not be exempt from filing the
19 declaration.
20 (c) Deeds or trust documents that secure debt or other
21 obligation.
22 (d) Deeds or trust documents that, without additional
23 consideration, confirm, correct, modify, or supplement a deed
24 or trust document previously recorded.
25 (e) Deeds or trust documents where the actual
26 consideration is less than $100.
27 (f) Tax deeds.
28 (g) Deeds or trust documents that release property that
29 is security for a debt or other obligation.
30 (h) Deeds of partition.
31 (i) Deeds or trust documents made pursuant to mergers,
32 consolidations or transfers or sales of substantially all of
33 the assets of corporations under plans of reorganization
34 under the Federal Internal Revenue Code or Title 11 of the
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1 Federal Bankruptcy Act.
2 (j) Deeds or trust documents made by a subsidiary
3 corporation to its parent corporation for no consideration
4 other than the cancellation or surrender of the subsidiary's
5 stock.
6 (k) Deeds when there is an actual exchange of real
7 estate and trust documents when there is an actual exchange
8 of beneficial interests, except that that money difference or
9 money's worth paid from one to the other is not exempt from
10 the tax. These deeds or trust documents, however, shall not
11 be exempt from filing the declaration.
12 (l) Deeds issued to a holder of a mortgage, as defined
13 in Section 15-103 of the Code of Civil Procedure, pursuant to
14 a mortgage foreclosure proceeding or pursuant to a transfer
15 in lieu of foreclosure.
16 (m) A deed or trust document related to the purchase of
17 a principal residence by a participant in the program
18 authorized by the Home Ownership Made Easy Act, except that
19 those deeds and trust documents shall not be exempt from
20 filing the declaration.
21 (Source: P.A. 87-1206; 88-455.)
22 (35 ILCS 200/31-47 new)
23 Sec. 31-47. Verification. In all counties, each
24 transfer declaration filed under this Law shall include a
25 written statement by both the grantor or grantor's agent and
26 the grantee or grantee's agent that the information contained
27 in the declaration is true and correct to the best of his or
28 her knowledge and belief. In counties of 3,000,000 or more
29 inhabitants, the declaration shall also contain a written
30 statement executed by the grantor or the grantor's agent
31 verifying that, to the best of his or her knowledge, the name
32 of the grantee shown on the deed or assignment of beneficial
33 interest in a land trust is either a natural person, an
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1 Illinois corporation or foreign corporation authorized to do
2 business or acquire and hold title to real estate in
3 Illinois, a partnership authorized to do business or acquire
4 and hold title to real estate in Illinois, or other entity
5 recognized as a person and authorized to do business or
6 acquire and hold title to real estate under the laws of
7 Illinois. In counties of 3,000,000 or more inhabitants, the
8 declaration shall also contain a written statement executed
9 by the grantee or the grantee's agent verifying that the name
10 of the grantee shown on the deed or assignment of beneficial
11 interest in a land trust is either a natural person, an
12 Illinois corporation or foreign corporation authorized to do
13 business or acquire and hold title to real estate in
14 Illinois, a partnership authorized to do business or acquire
15 and hold title to real estate in Illinois, or other entity
16 recognized as a person and authorized to do business or
17 acquire and hold title to real estate under the laws of
18 Illinois.
19 (35 ILCS 200/31-50)
20 Sec. 31-50. Penalties. Any person who willfully
21 falsifies the value of transferred real estate on the
22 transfer declaration required by Section 31-25 or who
23 willfully falsifies or willfully omits any other information
24 required by Section 31-25 or who willfully and falsely claims
25 a transaction to be exempt under Section 31-45 is guilty of
26 a Class B misdemeanor. Any person who knowingly submits a
27 false statement concerning the identity of a grantee under
28 the provisions of this Article is guilty of a Class C
29 misdemeanor. A second or subsequent conviction of an offense
30 is a Class A misdemeanor. A prosecution for any act in
31 violation of this Article may be commenced at any time within
32 5 years 3 years of the commission of the act. Only the buyer
33 or the buyer's representative shall attest to the accuracy of
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1 the financing information reported on the declaration and
2 required by Section 31-25. Any person convicted of any
3 offense under this Law is liable for the tax due in addition
4 to any fines imposed by the court.
5 (Source: P.A. 84-1308; 88-455.)
6 (35 ILCS 200/31-60)
7 Sec. 31-60. Check for violations. The Department shall
8 conduct spot checks or investigations of declarations
9 required to be filed by this Article and may shall forward
10 information of violations to the State's Attorney of the
11 county where the violations occur for prosecution and
12 collection of taxes.
13 (Source: P.A. 81-936; 88-455.)
14 (35 ILCS 200/31-70)
15 Sec. 31-70. Rules. The Department may prescribe
16 reasonable rules for the administration of this Article,
17 including rules permitting a transfer declaration in a
18 prescribed electronic form and permitting the electronic
19 transmission of the transfer declaration using a prescribed
20 method and format.
21 (Source: Laws 1967, p. 1716; P.A. 88-455.)
22 Section 99. Effective date. This Act takes effect on
23 January 1, 2000.
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