Full Text of SB0056 100th General Assembly
SB0056 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0056 Introduced 1/11/2017, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/16-55 | | 35 ILCS 200/16-65 | | 35 ILCS 200/16-183 | | 35 ILCS 200/17-10 | | 35 ILCS 200/31-25 | |
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Amends the Property Tax Code. Provides that provisions requiring boards of review and the Property Tax Appeal Board to consider compulsory sales for the purpose of revising and correcting assessments apply only to complaints affecting assessments for assessment years 2011 through 2016. Provides that boards of review shall consider compulsory sales in the equalization process only in assessment years 2011 through 2016. Provides that, beginning on the effective date of the amendatory Act, transfer declarations are no longer required to state whether the transfer is pursuant to compulsory sale. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 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 | | Sections 16-55, 16-65, 16-183, 17-10, and 31-25 as follows:
| 6 | | (35 ILCS 200/16-55)
| 7 | | Sec. 16-55. Complaints. | 8 | | (a) On written complaint that any property is
overassessed | 9 | | or underassessed, the board shall review the assessment, and
| 10 | | correct it, as appears to be just, but in no case shall the | 11 | | property be
assessed at a higher percentage of fair cash value | 12 | | than other property in the
assessment district prior to | 13 | | equalization by the board or the Department. | 14 | | (b) With respect to complaints affecting the assessment of | 15 | | property for assessment years 2011 through 2016, the The board | 16 | | shall include compulsory sales in reviewing and correcting | 17 | | assessments, including, but not limited to, those compulsory | 18 | | sales submitted by the complainant, if the board determines | 19 | | that those sales reflect the same property characteristics and | 20 | | condition as those originally used to make the assessment. With | 21 | | respect to complaints affecting the assessment of property for | 22 | | assessment years 2011 through 2016, the The board shall also | 23 | | consider whether the compulsory sale would otherwise be |
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| 1 | | considered an arm's length transaction. | 2 | | (c) If a complaint is filed by an attorney on behalf of a | 3 | | complainant, all notices and correspondence from the board | 4 | | relating to the appeal shall be directed to the attorney. The | 5 | | board may require proof of the attorney's authority to | 6 | | represent the taxpayer. If the attorney fails to provide proof | 7 | | of authority within the compliance period granted by the board | 8 | | pursuant to subsection (d), the board may dismiss the | 9 | | complaint. The Board shall send, electronically or by mail, | 10 | | notice of the dismissal to the attorney and complainant. | 11 | | (d) A
complaint to affect the assessment for the current | 12 | | year shall be filed on or before 30 calendar days after the | 13 | | date
of publication of the assessment list under Section 12-10. | 14 | | Upon receipt of a written complaint that is timely filed under | 15 | | this Section, the board of review shall docket the complaint. | 16 | | If the complaint does not comply with the board of review rules | 17 | | adopted under Section 9-5 entitling the complainant to a | 18 | | hearing, the board shall send, electronically or by mail, | 19 | | notification acknowledging receipt of the complaint. The | 20 | | notification must identify which rules have not been complied | 21 | | with and provide the complainant with not less than 10 business | 22 | | days to bring the complaint into compliance with those rules. | 23 | | If the complainant complies with the board of review rules | 24 | | either upon the initial filing of a complaint or within the | 25 | | time as extended by the board of review for compliance, then | 26 | | the board of review shall send, electronically or by mail, a |
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| 1 | | notice of hearing and the board shall hear the complaint and | 2 | | shall issue and send, electronically or by mail, a decision | 3 | | upon resolution. Except as otherwise provided in subsection | 4 | | (c), if the complainant has not complied with the rules within | 5 | | the time as extended by the board of review, the board shall | 6 | | nonetheless issue and send a decision. The board of review may | 7 | | adopt rules allowing any party to attend and participate in a | 8 | | hearing by telephone or electronically. | 9 | | (d-5) Complaints and other written correspondence sent by | 10 | | the United States mail shall be considered filed as of the | 11 | | postmark date in accordance with Section 1.25 of the Statute on | 12 | | Statutes. Complaints and other written correspondence sent by a | 13 | | delivery service other than the United States Postal System | 14 | | shall be considered as filed as of the date sent as indicated | 15 | | by the shipper's tracking label. If allowed by board of review | 16 | | rule, complaints and other written correspondence transmitted | 17 | | electronically shall be considered filed as of the date | 18 | | received. | 19 | | (e) The board may also,
at any time before its revision of | 20 | | the assessments is completed in every year,
increase, reduce or | 21 | | otherwise adjust the assessment of any property, making
changes | 22 | | in the valuation as may be just, and shall have full power over | 23 | | the
assessment of any person and may do anything in regard | 24 | | thereto that it may deem
necessary to make a just assessment, | 25 | | but the property shall not be assessed at
a higher percentage | 26 | | of fair cash value than the assessed valuation of other
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| 1 | | property in the assessment district prior to equalization by | 2 | | the board or the
Department. | 3 | | (f) No assessment shall be increased until the person to be | 4 | | affected
has been notified and given an opportunity to be | 5 | | heard, except as provided
below. | 6 | | (g) Before making any reduction in assessments of its own | 7 | | motion, the board
of review shall give notice to the assessor | 8 | | or chief county assessment officer
who certified the | 9 | | assessment, and give the assessor or chief county assessment
| 10 | | officer an opportunity to be heard thereon. | 11 | | (h) All complaints of errors in
assessments of property | 12 | | shall be in writing, and shall be filed by the
complaining | 13 | | party with the board of review, in the number of copies | 14 | | required by board of review rule. A copy shall
be filed by the | 15 | | board of review with the assessor or chief county assessment
| 16 | | officer who certified the assessment. | 17 | | (i) In all cases where a change in assessed
valuation of | 18 | | $100,000 or more is sought, the board of review shall also | 19 | | serve a
copy of the petition on all taxing districts as shown | 20 | | on the last available tax
bill at least 14 days prior to the | 21 | | hearing on the complaint. Service may be by electronic means if | 22 | | the taxing district consents to electronic service and provides | 23 | | the board of review with a valid e-mail address for the purpose | 24 | | of receiving service. All taxing
districts shall have an | 25 | | opportunity to be heard on the complaint. A taxing district | 26 | | wishing to intervene shall file a request to intervene with the |
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| 1 | | board of review at least five days in advance of a scheduled | 2 | | hearing. If board of review rules require the appellant to | 3 | | submit evidence in advance of a hearing, then any evidence in | 4 | | support of the intervenor's opinion of assessed value must be | 5 | | submitted to the board of review and complainant no later than | 6 | | five calendar days prior to the hearing. Service shall be made | 7 | | as set forth in subsection (d-5), but if board of review rules | 8 | | allow complaints and correspondence to be transmitted | 9 | | electronically, then the intervenor's evidence shall be | 10 | | transmitted electronically. | 11 | | (i-5) If board of review rules require the appellant to | 12 | | submit evidence in advance of a hearing, then any evidence to | 13 | | support the assessor's opinion of assessed value must be | 14 | | submitted to the board of review and the complainant (or, if | 15 | | represented by an attorney, to the attorney) no later than five | 16 | | calendar days prior to the hearing. Service shall be made as | 17 | | set forth in subsection (d-5), but if board of review rules | 18 | | allow complaints and correspondence to be transmitted | 19 | | electronically, then the assessor's evidence shall be | 20 | | transmitted electronically. | 21 | | (j) Complaints
shall be classified by townships or taxing | 22 | | districts by the clerk of the board
of review. All classes of | 23 | | complaints shall be docketed numerically, each in its
own | 24 | | class, in the order in which they are presented, in books kept | 25 | | for that
purpose, which books shall be open to public | 26 | | inspection. Complaints shall be
considered by townships or |
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| 1 | | taxing districts until all complaints have been
heard and | 2 | | passed upon by the board.
| 3 | | (Source: P.A. 98-322, eff. 8-12-13; 99-98, eff. 1-1-16; 99-579, | 4 | | eff. 7-15-16.)
| 5 | | (35 ILCS 200/16-65)
| 6 | | Sec. 16-65. Equalization process. | 7 | | (a) The board of review shall act as an
equalizing | 8 | | authority, if after equalization by the supervisor of | 9 | | assessments
the equalized assessed value of property in the | 10 | | county is not 33 1/3% of the
total fair cash value. The board | 11 | | shall, after notice and hearing as required by
Section 12-40, | 12 | | lower or raise the total assessed value of property in any
| 13 | | assessment district within the county so that the property, | 14 | | other than farm
and coal property assessed under Sections | 15 | | 10-110 through 10-140 and Sections
10-170 through 10-200, will | 16 | | be assessed at 33 1/3% of its fair cash value.
| 17 | | (b) For each assessment district of the county, the board | 18 | | of review shall
annually determine the percentage relationship | 19 | | between the valuations at which
property other than farm and | 20 | | coal property is listed and the estimated 33 1/3%
of the fair | 21 | | cash value of such property. To make this analysis, the board
| 22 | | shall use at least 25 property transfers, or a combination of | 23 | | at least 25
property transfers and property appraisals, such | 24 | | information as may be
submitted by interested taxing bodies, or | 25 | | any other means as it deems proper
and reasonable. If there are |
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| 1 | | not 25 property transfers available, or if these
25 property | 2 | | transfers do not represent a fair sample of the types of | 3 | | properties
and their proportional distribution in the | 4 | | assessment district, the board shall
select a random sample of | 5 | | properties of a number necessary to provide a
combination of at | 6 | | least 25 property transfers and property appraisals as much
as | 7 | | possible representative of the entire assessment district, and | 8 | | provide for
their appraisal. The township or multi-township | 9 | | assessor shall be notified of
and participate in the | 10 | | deliberations and determinations.
| 11 | | (c) The In assessment year 2011, the board of review shall | 12 | | consider compulsory sales in its equalization process. | 13 | | The board of review, in conjunction with the chief county | 14 | | assessment officer, shall determine the number of compulsory | 15 | | sales from the prior year for the purpose of revising and | 16 | | correcting assessments. The board of review shall determine if | 17 | | the number of compulsory sales is at least 25% of all property | 18 | | transfers within the neighborhood, township, multi-township | 19 | | assessment district, or other specific geographic region in the | 20 | | county for that class of property, but shall exclude from the | 21 | | calculation (i) all property transfers for which the property | 22 | | characteristics and condition are not the same as those | 23 | | characteristics and condition used to determine the assessed | 24 | | value and (ii) any property transfer that is not an arm's | 25 | | length transaction based on existing sales ratio study | 26 | | standards (except for compulsory sales). If the board |
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| 1 | | determines that the number of compulsory sales is at least 25% | 2 | | of all property transfers within the defined geographic region | 3 | | for that class of property, then the board of review must | 4 | | determine (i) the median assessment level of arm's length | 5 | | transactions and (ii) the median assessment level of compulsory | 6 | | sales. If the median assessment level of compulsory sales is | 7 | | higher than the median assessment level of arm's length | 8 | | transactions, then compulsory sales shall be included in the | 9 | | arm's length transaction study and the board must calculate the | 10 | | new median assessment level. Assessed values of properties | 11 | | within the specific geographic area for that class of property | 12 | | must be revised to reflect this new median assessment level. | 13 | | The revised median assessment level shall be the basis for | 14 | | equalization as otherwise provided in this Section. | 15 | | This subsection (c) applies only in assessment years 2011 | 16 | | through 2016. | 17 | | (d) With the ratio determined for each assessment
district, | 18 | | the board shall ascertain the amount to be added or
deducted | 19 | | from the aggregate assessment on property subject to local
| 20 | | assessment jurisdiction, other than farm and coal property, to | 21 | | produce a
ratio of assessed value to 33 1/3% of the fair cash | 22 | | value equivalent to 100%.
However, in determining the amount to | 23 | | be added to the
aggregate assessment on property subject to | 24 | | local jurisdiction in order
to produce a ratio of assessed | 25 | | value to 33 1/3% of the fair cash value
equivalent to 100%, the | 26 | | board shall not, in any one
year, increase or decrease the |
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| 1 | | aggregate assessment of any assessment
district by more than | 2 | | 25% of the equalized valuation of the district
for the previous | 3 | | year, except that additions, deletions or depletions to
the | 4 | | taxable property shall be excluded in computing the 25% | 5 | | limitation.
The board shall complete the equalization by the | 6 | | date prescribed in Section
16-35 for the board's adjournment, | 7 | | and, within 10 days thereafter, shall report
the results of its | 8 | | work under this Section to the Department. At least 30 days
| 9 | | prior to its adjournment, the board shall publish a notice | 10 | | declaring whether
it intends to equalize assessments as | 11 | | provided in this Section. The notice
shall be published in a | 12 | | newspaper of general circulation in the county.
If the board | 13 | | fails to report to the Department within the required time, or | 14 | | if
the report discloses that the board has failed to make a | 15 | | proper and
adequate equalization of assessments, the | 16 | | Department shall direct,
determine, and supervise the | 17 | | assessment so that all assessments of property are
relatively | 18 | | just and equal as provided in Section 8-5.
| 19 | | (Source: P.A. 96-1083, eff. 7-16-10.)
| 20 | | (35 ILCS 200/16-183) | 21 | | Sec. 16-183. Compulsory sales. With respect to a complaint | 22 | | to affect the assessment for assessment years 2011 through | 23 | | 2016, the The Property Tax Appeal Board shall consider | 24 | | compulsory sales of comparable properties for the purpose of | 25 | | revising and correcting assessments, including those |
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| 1 | | compulsory sales of comparable properties submitted by the | 2 | | taxpayer.
| 3 | | (Source: P.A. 96-1083, eff. 7-16-10.)
| 4 | | (35 ILCS 200/17-10)
| 5 | | Sec. 17-10. Sales ratio studies. The Department shall | 6 | | monitor the
quality of local assessments by designing, | 7 | | preparing and using ratio studies,
and shall use the results as | 8 | | the basis for equalization decisions. In
compiling sales ratio | 9 | | studies, the Department shall exclude from the reported
sales | 10 | | price of any property any amounts included for personal | 11 | | property and,
for sales occurring through December 31, 1999, | 12 | | shall exclude
seller paid points. The Department shall not | 13 | | include in its sales ratio
studies sales of property which have | 14 | | been platted and for which an increase in
the assessed | 15 | | valuation is restricted by Section 10-30.
The Department shall | 16 | | not include in its sales ratio studies the initial sale
of | 17 | | residential property that has been converted to condominium | 18 | | property. The Department shall include compulsory sales | 19 | | occurring on or after January 1, 2011 and prior to January 1, | 20 | | 2016 in its sales ratio studies. The Department shall also | 21 | | consider whether the compulsory sales occurring on or after | 22 | | January 1, 2011 and prior to January 1, 2016 sale would | 23 | | otherwise be considered an arm's length transactions | 24 | | transaction , based on existing sales ratio study standards.
| 25 | | When the declaration
required under the Real Estate |
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| 1 | | Transfer Tax Law contains financing information
required under | 2 | | Section 31-25, the Department shall adjust sales prices to
| 3 | | exclude seller-paid points and shall adjust sales prices to | 4 | | "cash value" when
seller related financing is used that is | 5 | | different than the prevailing cost of
cash. The prevailing cost | 6 | | of cash for sales occurring on or after January 1,
1992 shall | 7 | | be established as the monthly average 30-year fixed Primary | 8 | | Mortgage
Market Survey rate for the North Central Region as | 9 | | published weekly by the
Federal Home Loan Mortgage Corporation, | 10 | | as computed by the Department, or such
other rate as determined | 11 | | by the Department. This rate shall be known as the
survey rate. | 12 | | For sales occurring on or after January 1, 1992, through
| 13 | | December 31, 1999, adjustments in
the prevailing cost of cash | 14 | | shall be made only after the survey rate has been
at or above | 15 | | 13% for 12 consecutive months and will continue until the | 16 | | survey
rate has been below 13% for 12 consecutive months.
For | 17 | | sales occurring on or after January 1, 2000, adjustments for | 18 | | seller paid
points and adjustments in the prevailing cost of | 19 | | cash shall be made only after
the survey rate has been at or | 20 | | above 13% for 12 consecutive months and will
continue until the | 21 | | survey rate has been below 13% for 12 consecutive months. The | 22 | | Department shall make
public its adjustment procedure upon | 23 | | request.
| 24 | | (Source: P.A. 96-1083, eff. 7-16-10.)
| 25 | | (35 ILCS 200/31-25)
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| 1 | | Sec. 31-25. Transfer declaration. At the time a deed, a | 2 | | document
transferring a controlling interest in real property,
| 3 | | or trust document is
presented for recordation, or within 3 | 4 | | business days after the transfer is
effected, whichever is | 5 | | earlier,
there shall also be presented to the recorder or
| 6 | | registrar of titles a declaration, signed by at least one of | 7 | | the sellers and
also signed by at least one of the buyers in | 8 | | the transaction or by the
attorneys or agents for the sellers | 9 | | or buyers. The declaration shall state
information including, | 10 | | but not limited to: (a) the value of the real property
or | 11 | | beneficial interest in real property located in Illinois
so | 12 | | transferred; (b) the parcel
identifying number of the property; | 13 | | (c) the legal description of
the
property; (d) the date of the | 14 | | deed, the date the transfer was effected,
or the date of the | 15 | | trust document; (e) the type of deed, transfer,
or
trust | 16 | | document; (f) the address of the property; (g) the type of | 17 | | improvement,
if any, on the property; (h) information as to | 18 | | whether the
transfer is
between related individuals or | 19 | | corporate affiliates or is a
compulsory transaction; (i)
the | 20 | | lot size or acreage; (j) the value of personal property sold | 21 | | with the
real estate; (k) the year the contract was initiated | 22 | | if an installment sale;
(l) any homestead exemptions, as | 23 | | provided in Sections 15-170, 15-172, 15-175, and 15-176 as | 24 | | reflected on the most recent annual tax bill; (m) the name, | 25 | | address, and telephone number of the person preparing the
| 26 | | declaration; and (n) for transfers occurring on or after July |
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| 1 | | 16, 2010 (the effective date of Public Act 96-1083) and prior | 2 | | to the effective date of this amendatory Act of the 100th | 3 | | General Assembly, whether the transfer is pursuant to | 4 | | compulsory sale. Except as provided in Section 31-45, a deed, a | 5 | | document
transferring a controlling interest in real property,
| 6 | | or trust
document shall not be accepted for recordation unless | 7 | | it is accompanied by a
declaration containing all the | 8 | | information requested
in the declaration. When the declaration | 9 | | is signed by an attorney or agent on
behalf of sellers or | 10 | | buyers who have the power of direction to deal with the
title | 11 | | to the real estate under a land trust agreement, the trustee | 12 | | being the
mere repository of record legal title with a duty of | 13 | | conveying the real estate
only when and if directed in writing | 14 | | by the beneficiary or beneficiaries having
the power of | 15 | | direction, the attorneys or agents executing the declaration on
| 16 | | behalf of the sellers or buyers need identify only the land | 17 | | trust that is the
repository of record legal title and not the | 18 | | beneficiary or beneficiaries
having the power of direction | 19 | | under the land trust agreement. The declaration
form shall be | 20 | | prescribed by the Department and shall contain sales | 21 | | information
questions.
For sales occurring during a period in | 22 | | which the provisions of Section 17-10
require the Department to | 23 | | adjust sale prices for seller paid points and
prevailing cost | 24 | | of cash,
the declaration form shall contain questions
regarding | 25 | | the financing of the sale. The subject of the financing | 26 | | questions
shall include any direct seller participation in the |
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| 1 | | financing of the sale or
information on financing that is | 2 | | unconventional so as to affect the fair cash
value received by | 3 | | the seller. The intent of the sales and financing questions
is | 4 | | to aid in the reduction in the number of buyers required to | 5 | | provide
financing information necessary for the adjustment | 6 | | outlined in Section 17-10.
For sales occurring during a period | 7 | | in which the provisions of Section 17-10
require the Department | 8 | | to adjust sale prices for seller paid points and
prevailing | 9 | | cost of cash,
the declaration form shall include, at a minimum, | 10 | | the following data: (a)
seller paid points, (b) the sales | 11 | | price, (c) type of
financing
(conventional, VA, FHA, | 12 | | seller-financed, or other), (d) down
payment, (e) term,
(f) | 13 | | interest rate, (g) type and description of interest
rate | 14 | | (fixed, adjustable
or renegotiable), and (h) an appropriate | 15 | | place for the inclusion of special
facts or circumstances, if | 16 | | any. The Department
shall
provide an adequate supply of forms | 17 | | to each recorder and registrar of titles in
the State.
| 18 | | (Source: P.A. 96-1083, eff. 7-16-10.)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.
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