96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4709


 
Introduced 1/4/2010, by Rep. Jack D. Franks
 
SYNOPSIS AS INTRODUCED:
 		





 


  



35 ILCS 200/17-10










     Amends the Property Tax Code.  Provides that, if  the average market value of residential property fell by more than 7% in the previous calendar year, then the Department of Revenue shall include foreclosure sales and short sales in its  sales ratio studies.  Effective immediately.
  















LRB096 15977 HLH 31222 b

















FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






HB4709

LRB096 15977 HLH 31222 b





  
1
    AN ACT concerning revenue.
  
 
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
Section 17-10 as follows:
 



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    (35 ILCS 200/17-10)



7
    Sec. 17-10. Sales ratio studies. The Department shall 
8
monitor the
quality of local assessments by designing, 
9
preparing and using ratio studies,
and shall use the results as 
10
the basis for equalization decisions.  In
compiling sales ratio 
11
studies, the Department shall exclude from the reported
sales 
12
price of any property any amounts included for personal 
13
property and,
for sales occurring through December 31, 1999, 
14
shall exclude
seller paid points.  The Department shall not 
15
include in its sales ratio
studies sales of property which have 
16
been platted and for which an increase in
the assessed 
17
valuation is restricted by Section 10-30.
The Department shall 
18
not include in its sales ratio studies the initial sale
of 
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residential property that has been converted to condominium 
20
property. If the average market value of residential property 
21
fell by more than 7% in the previous calendar year, then for 
22
residential property the Department shall include foreclosure 
23
sales and short sales in its  sales ratio studies. 

 


 






HB4709
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    When the declaration
required under the Real Estate 
2
Transfer Tax Law contains financing information
required under 
3
Section 31-25, the Department shall adjust sales prices to

4
exclude seller-paid points and shall adjust sales prices to 
5
"cash value" when
seller related financing is used that is 
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different than the prevailing cost of
cash. The prevailing cost 
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of cash for sales occurring on or after January 1,
1992 shall 
8
be established as the monthly average 30-year fixed Primary 
9
Mortgage
Market Survey rate for the North Central Region as 
10
published weekly by the
Federal Home Loan Mortgage Corporation, 
11
as computed by the Department, or such
other rate as determined 
12
by the Department.  This rate shall be known as the
survey rate. 
13
For sales occurring on or after January 1, 1992, through

14
December 31, 1999, adjustments in
the prevailing cost of cash 
15
shall be made only after the survey rate has been
at or above 
16
13% for 12 consecutive months and will continue until the 
17
survey
rate has been below 13% for 12 consecutive months.
For 
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sales occurring on or after January 1, 2000, adjustments for 
19
seller paid
points and adjustments in the prevailing cost of 
20
cash shall be made only after
the survey rate has been at or 
21
above 13% for 12 consecutive months and will
continue until the 
22
survey rate has been below 13% for 12 consecutive months. The 
23
Department shall make
public its adjustment procedure upon 
24
request.

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(Source: P.A. 91-555, eff. 1-1-00.)

 
 
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    Section 99. Effective date. This Act takes effect upon 
 


 






HB4709
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becoming law.