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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

    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

 

SB0056LRB100 00072 HLH 10076 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
5Sections 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
9or underassessed, the board shall review the assessment, and
10correct it, as appears to be just, but in no case shall the
11property be assessed at a higher percentage of fair cash value
12than other property in the assessment district prior to
13equalization by the board or the Department.
14    (b) With respect to complaints affecting the assessment of
15property for assessment years 2011 through 2016, the The board
16shall include compulsory sales in reviewing and correcting
17assessments, including, but not limited to, those compulsory
18sales submitted by the complainant, if the board determines
19that those sales reflect the same property characteristics and
20condition as those originally used to make the assessment. With
21respect to complaints affecting the assessment of property for
22assessment years 2011 through 2016, the The board shall also
23consider whether the compulsory sale would otherwise be

 

 

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1considered an arm's length transaction.
2    (c) If a complaint is filed by an attorney on behalf of a
3complainant, all notices and correspondence from the board
4relating to the appeal shall be directed to the attorney. The
5board may require proof of the attorney's authority to
6represent the taxpayer. If the attorney fails to provide proof
7of authority within the compliance period granted by the board
8pursuant to subsection (d), the board may dismiss the
9complaint. The Board shall send, electronically or by mail,
10notice of the dismissal to the attorney and complainant.
11    (d) A complaint to affect the assessment for the current
12year shall be filed on or before 30 calendar days after the
13date of publication of the assessment list under Section 12-10.
14Upon receipt of a written complaint that is timely filed under
15this Section, the board of review shall docket the complaint.
16If the complaint does not comply with the board of review rules
17adopted under Section 9-5 entitling the complainant to a
18hearing, the board shall send, electronically or by mail,
19notification acknowledging receipt of the complaint. The
20notification must identify which rules have not been complied
21with and provide the complainant with not less than 10 business
22days to bring the complaint into compliance with those rules.
23If the complainant complies with the board of review rules
24either upon the initial filing of a complaint or within the
25time as extended by the board of review for compliance, then
26the board of review shall send, electronically or by mail, a

 

 

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1notice of hearing and the board shall hear the complaint and
2shall issue and send, electronically or by mail, a decision
3upon resolution. Except as otherwise provided in subsection
4(c), if the complainant has not complied with the rules within
5the time as extended by the board of review, the board shall
6nonetheless issue and send a decision. The board of review may
7adopt rules allowing any party to attend and participate in a
8hearing by telephone or electronically.
9    (d-5) Complaints and other written correspondence sent by
10the United States mail shall be considered filed as of the
11postmark date in accordance with Section 1.25 of the Statute on
12Statutes. Complaints and other written correspondence sent by a
13delivery service other than the United States Postal System
14shall be considered as filed as of the date sent as indicated
15by the shipper's tracking label. If allowed by board of review
16rule, complaints and other written correspondence transmitted
17electronically shall be considered filed as of the date
18received.
19    (e) The board may also, at any time before its revision of
20the assessments is completed in every year, increase, reduce or
21otherwise adjust the assessment of any property, making changes
22in the valuation as may be just, and shall have full power over
23the assessment of any person and may do anything in regard
24thereto that it may deem necessary to make a just assessment,
25but the property shall not be assessed at a higher percentage
26of fair cash value than the assessed valuation of other

 

 

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1property in the assessment district prior to equalization by
2the board or the Department.
3    (f) No assessment shall be increased until the person to be
4affected has been notified and given an opportunity to be
5heard, except as provided below.
6    (g) Before making any reduction in assessments of its own
7motion, the board of review shall give notice to the assessor
8or chief county assessment officer who certified the
9assessment, and give the assessor or chief county assessment
10officer an opportunity to be heard thereon.
11    (h) All complaints of errors in assessments of property
12shall be in writing, and shall be filed by the complaining
13party with the board of review, in the number of copies
14required by board of review rule. A copy shall be filed by the
15board of review with the assessor or chief county assessment
16officer 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
19serve a copy of the petition on all taxing districts as shown
20on the last available tax bill at least 14 days prior to the
21hearing on the complaint. Service may be by electronic means if
22the taxing district consents to electronic service and provides
23the board of review with a valid e-mail address for the purpose
24of receiving service. All taxing districts shall have an
25opportunity to be heard on the complaint. A taxing district
26wishing to intervene shall file a request to intervene with the

 

 

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1board of review at least five days in advance of a scheduled
2hearing. If board of review rules require the appellant to
3submit evidence in advance of a hearing, then any evidence in
4support of the intervenor's opinion of assessed value must be
5submitted to the board of review and complainant no later than
6five calendar days prior to the hearing. Service shall be made
7as set forth in subsection (d-5), but if board of review rules
8allow complaints and correspondence to be transmitted
9electronically, then the intervenor's evidence shall be
10transmitted electronically.
11    (i-5) If board of review rules require the appellant to
12submit evidence in advance of a hearing, then any evidence to
13support the assessor's opinion of assessed value must be
14submitted to the board of review and the complainant (or, if
15represented by an attorney, to the attorney) no later than five
16calendar days prior to the hearing. Service shall be made as
17set forth in subsection (d-5), but if board of review rules
18allow complaints and correspondence to be transmitted
19electronically, then the assessor's evidence shall be
20transmitted electronically.
21    (j) Complaints shall be classified by townships or taxing
22districts by the clerk of the board of review. All classes of
23complaints shall be docketed numerically, each in its own
24class, in the order in which they are presented, in books kept
25for that purpose, which books shall be open to public
26inspection. Complaints shall be considered by townships or

 

 

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1taxing districts until all complaints have been heard and
2passed upon by the board.
3(Source: P.A. 98-322, eff. 8-12-13; 99-98, eff. 1-1-16; 99-579,
4eff. 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
8authority, if after equalization by the supervisor of
9assessments the equalized assessed value of property in the
10county is not 33 1/3% of the total fair cash value. The board
11shall, after notice and hearing as required by Section 12-40,
12lower or raise the total assessed value of property in any
13assessment district within the county so that the property,
14other than farm and coal property assessed under Sections
1510-110 through 10-140 and Sections 10-170 through 10-200, will
16be assessed at 33 1/3% of its fair cash value.
17    (b) For each assessment district of the county, the board
18of review shall annually determine the percentage relationship
19between the valuations at which property other than farm and
20coal property is listed and the estimated 33 1/3% of the fair
21cash value of such property. To make this analysis, the board
22shall use at least 25 property transfers, or a combination of
23at least 25 property transfers and property appraisals, such
24information as may be submitted by interested taxing bodies, or
25any other means as it deems proper and reasonable. If there are

 

 

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1not 25 property transfers available, or if these 25 property
2transfers do not represent a fair sample of the types of
3properties and their proportional distribution in the
4assessment district, the board shall select a random sample of
5properties of a number necessary to provide a combination of at
6least 25 property transfers and property appraisals as much as
7possible representative of the entire assessment district, and
8provide for their appraisal. The township or multi-township
9assessor shall be notified of and participate in the
10deliberations and determinations.
11    (c) The In assessment year 2011, the board of review shall
12consider compulsory sales in its equalization process.
13    The board of review, in conjunction with the chief county
14assessment officer, shall determine the number of compulsory
15sales from the prior year for the purpose of revising and
16correcting assessments. The board of review shall determine if
17the number of compulsory sales is at least 25% of all property
18transfers within the neighborhood, township, multi-township
19assessment district, or other specific geographic region in the
20county for that class of property, but shall exclude from the
21calculation (i) all property transfers for which the property
22characteristics and condition are not the same as those
23characteristics and condition used to determine the assessed
24value and (ii) any property transfer that is not an arm's
25length transaction based on existing sales ratio study
26standards (except for compulsory sales). If the board

 

 

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1determines that the number of compulsory sales is at least 25%
2of all property transfers within the defined geographic region
3for that class of property, then the board of review must
4determine (i) the median assessment level of arm's length
5transactions and (ii) the median assessment level of compulsory
6sales. If the median assessment level of compulsory sales is
7higher than the median assessment level of arm's length
8transactions, then compulsory sales shall be included in the
9arm's length transaction study and the board must calculate the
10new median assessment level. Assessed values of properties
11within the specific geographic area for that class of property
12must be revised to reflect this new median assessment level.
13The revised median assessment level shall be the basis for
14equalization as otherwise provided in this Section.
15    This subsection (c) applies only in assessment years 2011
16through 2016.
17    (d) With the ratio determined for each assessment district,
18the board shall ascertain the amount to be added or deducted
19from the aggregate assessment on property subject to local
20assessment jurisdiction, other than farm and coal property, to
21produce a ratio of assessed value to 33 1/3% of the fair cash
22value equivalent to 100%. However, in determining the amount to
23be added to the aggregate assessment on property subject to
24local jurisdiction in order to produce a ratio of assessed
25value to 33 1/3% of the fair cash value equivalent to 100%, the
26board shall not, in any one year, increase or decrease the

 

 

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1aggregate assessment of any assessment district by more than
225% of the equalized valuation of the district for the previous
3year, except that additions, deletions or depletions to the
4taxable property shall be excluded in computing the 25%
5limitation. The board shall complete the equalization by the
6date prescribed in Section 16-35 for the board's adjournment,
7and, within 10 days thereafter, shall report the results of its
8work under this Section to the Department. At least 30 days
9prior to its adjournment, the board shall publish a notice
10declaring whether it intends to equalize assessments as
11provided in this Section. The notice shall be published in a
12newspaper of general circulation in the county. If the board
13fails to report to the Department within the required time, or
14if the report discloses that the board has failed to make a
15proper and adequate equalization of assessments, the
16Department shall direct, determine, and supervise the
17assessment so that all assessments of property are relatively
18just 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
22to affect the assessment for assessment years 2011 through
232016, the The Property Tax Appeal Board shall consider
24compulsory sales of comparable properties for the purpose of
25revising and correcting assessments, including those

 

 

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1compulsory sales of comparable properties submitted by the
2taxpayer.
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
6monitor the quality of local assessments by designing,
7preparing and using ratio studies, and shall use the results as
8the basis for equalization decisions. In compiling sales ratio
9studies, the Department shall exclude from the reported sales
10price of any property any amounts included for personal
11property and, for sales occurring through December 31, 1999,
12shall exclude seller paid points. The Department shall not
13include in its sales ratio studies sales of property which have
14been platted and for which an increase in the assessed
15valuation is restricted by Section 10-30. The Department shall
16not include in its sales ratio studies the initial sale of
17residential property that has been converted to condominium
18property. The Department shall include compulsory sales
19occurring on or after January 1, 2011 and prior to January 1,
202016 in its sales ratio studies. The Department shall also
21consider whether the compulsory sales occurring on or after
22January 1, 2011 and prior to January 1, 2016 sale would
23otherwise be considered an arm's length transactions
24transaction, based on existing sales ratio study standards.
25    When the declaration required under the Real Estate

 

 

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1Transfer Tax Law contains financing information required under
2Section 31-25, the Department shall adjust sales prices to
3exclude seller-paid points and shall adjust sales prices to
4"cash value" when seller related financing is used that is
5different than the prevailing cost of cash. The prevailing cost
6of cash for sales occurring on or after January 1, 1992 shall
7be established as the monthly average 30-year fixed Primary
8Mortgage Market Survey rate for the North Central Region as
9published weekly by the Federal Home Loan Mortgage Corporation,
10as computed by the Department, or such other rate as determined
11by the Department. This rate shall be known as the survey rate.
12For sales occurring on or after January 1, 1992, through
13December 31, 1999, adjustments in the prevailing cost of cash
14shall be made only after the survey rate has been at or above
1513% for 12 consecutive months and will continue until the
16survey rate has been below 13% for 12 consecutive months. For
17sales occurring on or after January 1, 2000, adjustments for
18seller paid points and adjustments in the prevailing cost of
19cash shall be made only after the survey rate has been at or
20above 13% for 12 consecutive months and will continue until the
21survey rate has been below 13% for 12 consecutive months. The
22Department shall make public its adjustment procedure upon
23request.
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
2document transferring a controlling interest in real property,
3or trust document is presented for recordation, or within 3
4business days after the transfer is effected, whichever is
5earlier, there shall also be presented to the recorder or
6registrar of titles a declaration, signed by at least one of
7the sellers and also signed by at least one of the buyers in
8the transaction or by the attorneys or agents for the sellers
9or buyers. The declaration shall state information including,
10but not limited to: (a) the value of the real property or
11beneficial interest in real property located in Illinois so
12transferred; (b) the parcel identifying number of the property;
13(c) the legal description of the property; (d) the date of the
14deed, the date the transfer was effected, or the date of the
15trust document; (e) the type of deed, transfer, or trust
16document; (f) the address of the property; (g) the type of
17improvement, if any, on the property; (h) information as to
18whether the transfer is between related individuals or
19corporate affiliates or is a compulsory transaction; (i) the
20lot size or acreage; (j) the value of personal property sold
21with the real estate; (k) the year the contract was initiated
22if an installment sale; (l) any homestead exemptions, as
23provided in Sections 15-170, 15-172, 15-175, and 15-176 as
24reflected on the most recent annual tax bill; (m) the name,
25address, and telephone number of the person preparing the
26declaration; and (n) for transfers occurring on or after July

 

 

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116, 2010 (the effective date of Public Act 96-1083) and prior
2to the effective date of this amendatory Act of the 100th
3General Assembly, whether the transfer is pursuant to
4compulsory sale. Except as provided in Section 31-45, a deed, a
5document transferring a controlling interest in real property,
6or trust document shall not be accepted for recordation unless
7it is accompanied by a declaration containing all the
8information requested in the declaration. When the declaration
9is signed by an attorney or agent on behalf of sellers or
10buyers who have the power of direction to deal with the title
11to the real estate under a land trust agreement, the trustee
12being the mere repository of record legal title with a duty of
13conveying the real estate only when and if directed in writing
14by the beneficiary or beneficiaries having the power of
15direction, the attorneys or agents executing the declaration on
16behalf of the sellers or buyers need identify only the land
17trust that is the repository of record legal title and not the
18beneficiary or beneficiaries having the power of direction
19under the land trust agreement. The declaration form shall be
20prescribed by the Department and shall contain sales
21information questions. For sales occurring during a period in
22which the provisions of Section 17-10 require the Department to
23adjust sale prices for seller paid points and prevailing cost
24of cash, the declaration form shall contain questions regarding
25the financing of the sale. The subject of the financing
26questions shall include any direct seller participation in the

 

 

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1financing of the sale or information on financing that is
2unconventional so as to affect the fair cash value received by
3the seller. The intent of the sales and financing questions is
4to aid in the reduction in the number of buyers required to
5provide financing information necessary for the adjustment
6outlined in Section 17-10. For sales occurring during a period
7in which the provisions of Section 17-10 require the Department
8to adjust sale prices for seller paid points and prevailing
9cost of cash, the declaration form shall include, at a minimum,
10the following data: (a) seller paid points, (b) the sales
11price, (c) type of financing (conventional, VA, FHA,
12seller-financed, or other), (d) down payment, (e) term, (f)
13interest rate, (g) type and description of interest rate
14(fixed, adjustable or renegotiable), and (h) an appropriate
15place for the inclusion of special facts or circumstances, if
16any. The Department shall provide an adequate supply of forms
17to 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
20becoming law.