Full Text of SB3334 096th General Assembly
SB3334enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 16-55, 16-65, 17-10, and 31-25 and by adding Sections | 6 |
| 1-23 and 16-183 as follows: | 7 |
| (35 ILCS 200/1-23 new) | 8 |
| Sec. 1-23. Compulsory sale. "Compulsory sale" means (i) the | 9 |
| sale of real estate for less than the amount owed to the | 10 |
| mortgage lender or mortgagor, if the lender or mortgagor has | 11 |
| agreed to the sale, commonly referred to as a "short sale" and | 12 |
| (ii) the first sale of real estate owned by a financial | 13 |
| institution as a result of a judgment of foreclosure, transfer | 14 |
| pursuant to a deed in lieu of foreclosure, or consent judgment, | 15 |
| occurring after the foreclosure proceeding is complete.
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| (35 ILCS 200/16-55)
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| Sec. 16-55. Complaints. On written complaint that any | 18 |
| property is
overassessed or underassessed, the board shall | 19 |
| review the assessment, and
correct it, as appears to be just, | 20 |
| but in no case shall the property be
assessed at a higher | 21 |
| percentage of fair cash value than other property in the
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| assessment district prior to equalization by the board or the |
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| Department. The board shall include compulsory sales in | 2 |
| reviewing and correcting assessments, including, but not | 3 |
| limited to, those compulsory sales submitted by the taxpayer, | 4 |
| if the board determines that those sales reflect the same | 5 |
| property characteristics and condition as those originally | 6 |
| used to make the assessment. The board shall also consider | 7 |
| whether the compulsory sale would otherwise be considered an | 8 |
| arm's length transaction. A
complaint to affect the assessment | 9 |
| for the current year shall be filed on or
before the 10th day | 10 |
| of August in counties with less than 150,000 inhabitants
and on | 11 |
| or before the 10th day of September in counties with 150,000 or | 12 |
| more but
less than 3,000,000 inhabitants, except if the | 13 |
| assessment books containing the
assessment complained of are | 14 |
| not filed with the board of review by the 10th day
of July in a | 15 |
| county with fewer than 150,000 inhabitants or by the 10th day | 16 |
| of
August in a county with 150,000 or more but less than | 17 |
| 3,000,000 inhabitants,
then the complaint shall be filed on or | 18 |
| before 30 calendar days after the date
of publication of the | 19 |
| assessment list under Section 12-10. The board may also,
at any | 20 |
| time before its revision of the assessments is completed in | 21 |
| every year,
increase, reduce or otherwise adjust the assessment | 22 |
| of any property, making
changes in the valuation as may be | 23 |
| just, and shall have full power over the
assessment of any | 24 |
| person and may do anything in regard thereto that it may deem
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| necessary to make a just assessment, but the property shall not | 26 |
| be assessed at
a higher percentage of fair cash value than the |
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| assessed valuation of other
property in the assessment district | 2 |
| prior to equalization by the board or the
Department. No | 3 |
| assessment shall be increased until the person to be affected
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| has been notified and given an opportunity to be heard, except | 5 |
| as provided
below. Before making any reduction in assessments | 6 |
| of its own motion, the board
of review shall give notice to the | 7 |
| assessor or chief county assessment officer
who certified the | 8 |
| assessment, and give the assessor or chief county assessment
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| officer an opportunity to be heard thereon. All complaints of | 10 |
| errors in
assessments of property shall be in writing, and | 11 |
| shall be filed by the
complaining party with the board of | 12 |
| review, in duplicate. The duplicate shall
be filed by the board | 13 |
| of review with the assessor or chief county assessment
officer | 14 |
| who certified the assessment. In all cases where a change in | 15 |
| assessed
valuation of $100,000 or more is sought, the board of | 16 |
| review shall also serve a
copy of the petition on all taxing | 17 |
| districts as shown on the last available tax
bill at least 14 | 18 |
| days prior to the hearing on the complaint. All taxing
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| districts shall have an opportunity to be heard on the | 20 |
| complaint. Complaints
shall be classified by townships or | 21 |
| taxing districts by the clerk of the board
of review. All | 22 |
| classes of complaints shall be docketed numerically, each in | 23 |
| its
own class, in the order in which they are presented, in | 24 |
| books kept for that
purpose, which books shall be open to | 25 |
| public inspection. Complaints shall be
considered by townships | 26 |
| or taxing districts until all complaints have been
heard and |
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| passed upon by the board.
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| (Source: P.A. 86-345; 86-413; 86-1028; 86-1481; 88-455.)
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| (35 ILCS 200/16-65)
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| Sec. 16-65. Equalization process. The board of review shall | 5 |
| act as an
equalizing authority, if after equalization by the | 6 |
| supervisor of assessments
the equalized assessed value of | 7 |
| property in the county is not 33 1/3% of the
total fair cash | 8 |
| value. The board shall, after notice and hearing as required by
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| Section 12-40, lower or raise the total assessed value of | 10 |
| property in any
assessment district within the county so that | 11 |
| the property, other than farm
and coal property assessed under | 12 |
| Sections 10-110 through 10-140 and Sections
10-170 through | 13 |
| 10-200, will be assessed at 33 1/3% of its fair cash value.
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| For each assessment district of the county, the board of | 15 |
| review shall
annually determine the percentage relationship | 16 |
| between the valuations at which
property other than farm and | 17 |
| coal property is listed and the estimated 33 1/3%
of the fair | 18 |
| cash value of such property. To make this analysis, the board
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| shall use at least 25 property transfers, or a combination of | 20 |
| at least 25
property transfers and property appraisals, such | 21 |
| information as may be
submitted by interested taxing bodies, or | 22 |
| any other means as it deems proper
and reasonable. If there are | 23 |
| not 25 property transfers available, or if these
25 property | 24 |
| transfers do not represent a fair sample of the types of | 25 |
| properties
and their proportional distribution in the |
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| assessment district, the board shall
select a random sample of | 2 |
| properties of a number necessary to provide a
combination of at | 3 |
| least 25 property transfers and property appraisals as much
as | 4 |
| possible representative of the entire assessment district, and | 5 |
| provide for
their appraisal. The township or multi-township | 6 |
| assessor shall be notified of
and participate in the | 7 |
| deliberations and determinations.
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| In assessment year 2011, the board of review shall consider | 9 |
| compulsory sales in its equalization process. | 10 |
| The board of review, in conjunction with the chief county | 11 |
| assessment officer, shall determine the number of compulsory | 12 |
| sales from the prior year for the purpose of revising and | 13 |
| correcting assessments. The board of review shall determine if | 14 |
| the number of compulsory sales is at least 25% of all property | 15 |
| transfers within the neighborhood, township, multi-township | 16 |
| assessment district, or other specific geographic region in the | 17 |
| county for that class of property, but shall exclude from the | 18 |
| calculation (i) all property transfers for which the property | 19 |
| characteristics and condition are not the same as those | 20 |
| characteristics and condition used to determine the assessed | 21 |
| value and (ii) any property transfer that is not an arm's | 22 |
| length transaction based on existing sales ratio study | 23 |
| standards (except for compulsory sales). If the board | 24 |
| determines that the number of compulsory sales is at least 25% | 25 |
| of all property transfers within the defined geographic region | 26 |
| for that class of property, then the board of review must |
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| determine (i) the median assessment level of arm's length | 2 |
| transactions and (ii) the median assessment level of compulsory | 3 |
| sales. If the median assessment level of compulsory sales is | 4 |
| higher than the median assessment level of arm's length | 5 |
| transactions, then compulsory sales shall be included in the | 6 |
| arm's length transaction study and the board must calculate the | 7 |
| new median assessment level. Assessed values of properties | 8 |
| within the specific geographic area for that class of property | 9 |
| must be revised to reflect this new median assessment level. | 10 |
| The revised median assessment level shall be the basis for | 11 |
| equalization as otherwise provided in this Section. | 12 |
| With the ratio determined for each assessment
district, the | 13 |
| board shall ascertain the amount to be added or
deducted from | 14 |
| the aggregate assessment on property subject to local
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| assessment jurisdiction, other than farm and coal property, to | 16 |
| produce a
ratio of assessed value to 33 1/3% of the fair cash | 17 |
| value equivalent to 100%.
However, in determining the amount to | 18 |
| be added to the
aggregate assessment on property subject to | 19 |
| local jurisdiction in order
to produce a ratio of assessed | 20 |
| value to 33 1/3% of the fair cash value
equivalent to 100%, the | 21 |
| board shall not, in any one
year, increase or decrease the | 22 |
| aggregate assessment of any assessment
district by more than | 23 |
| 25% of the equalized valuation of the district
for the previous | 24 |
| year, except that additions, deletions or depletions to
the | 25 |
| taxable property shall be excluded in computing the 25% | 26 |
| limitation.
The board shall complete the equalization by the |
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| date prescribed in Section
16-35 for the board's adjournment, | 2 |
| and, within 10 days thereafter, shall report
the results of its | 3 |
| work under this Section to the Department. At least 30 days
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| prior to its adjournment, the board shall publish a notice | 5 |
| declaring whether
it intends to equalize assessments as | 6 |
| provided in this Section. The notice
shall be published in a | 7 |
| newspaper of general circulation in the county.
If the board | 8 |
| fails to report to the Department within the required time, or | 9 |
| if
the report discloses that the board has failed to make a | 10 |
| proper and
adequate equalization of assessments, the | 11 |
| Department shall direct,
determine, and supervise the | 12 |
| assessment so that all assessments of property are
relatively | 13 |
| just and equal as provided in Section 8-5.
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| (Source: P.A. 84-1343; 88-455.)
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| (35 ILCS 200/16-183 new) | 16 |
| Sec. 16-183. Compulsory sales. The Property Tax Appeal | 17 |
| Board shall consider compulsory sales of comparable properties | 18 |
| for the purpose of revising and correcting assessments, | 19 |
| including those compulsory sales of comparable properties | 20 |
| submitted by the taxpayer.
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| (35 ILCS 200/17-10)
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| Sec. 17-10. Sales ratio studies. The Department shall | 23 |
| monitor the
quality of local assessments by designing, | 24 |
| preparing and using ratio studies,
and shall use the results as |
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| the basis for equalization decisions. In
compiling sales ratio | 2 |
| studies, the Department shall exclude from the reported
sales | 3 |
| price of any property any amounts included for personal | 4 |
| property and,
for sales occurring through December 31, 1999, | 5 |
| shall exclude
seller paid points. The Department shall not | 6 |
| include in its sales ratio
studies sales of property which have | 7 |
| been platted and for which an increase in
the assessed | 8 |
| valuation is restricted by Section 10-30.
The Department shall | 9 |
| not include in its sales ratio studies the initial sale
of | 10 |
| residential property that has been converted to condominium | 11 |
| property. The Department shall include compulsory sales | 12 |
| occurring on or after January 1, 2011 in its sales ratio | 13 |
| studies. The Department shall also consider whether the | 14 |
| compulsory sale would otherwise be considered an arm's length | 15 |
| transaction, based on existing sales ratio study standards.
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| When the declaration
required under the Real Estate | 17 |
| Transfer Tax Law contains financing information
required under | 18 |
| Section 31-25, the Department shall adjust sales prices to
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| exclude seller-paid points and shall adjust sales prices to | 20 |
| "cash value" when
seller related financing is used that is | 21 |
| different than the prevailing cost of
cash. The prevailing cost | 22 |
| of cash for sales occurring on or after January 1,
1992 shall | 23 |
| be established as the monthly average 30-year fixed Primary | 24 |
| Mortgage
Market Survey rate for the North Central Region as | 25 |
| published weekly by the
Federal Home Loan Mortgage Corporation, | 26 |
| as computed by the Department, or such
other rate as determined |
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| by the Department. This rate shall be known as the
survey rate. | 2 |
| For sales occurring on or after January 1, 1992, through
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| December 31, 1999, adjustments in
the prevailing cost of cash | 4 |
| shall be made only after the survey rate has been
at or above | 5 |
| 13% for 12 consecutive months and will continue until the | 6 |
| survey
rate has been below 13% for 12 consecutive months.
For | 7 |
| sales occurring on or after January 1, 2000, adjustments for | 8 |
| seller paid
points and adjustments in the prevailing cost of | 9 |
| cash shall be made only after
the survey rate has been at or | 10 |
| above 13% for 12 consecutive months and will
continue until the | 11 |
| survey rate has been below 13% for 12 consecutive months. The | 12 |
| Department shall make
public its adjustment procedure upon | 13 |
| request.
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| (Source: P.A. 91-555, eff. 1-1-00.)
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| (35 ILCS 200/31-25)
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| Sec. 31-25. Transfer declaration. At the time a deed, a | 17 |
| document
transferring a controlling interest in real property,
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| or trust document is
presented for recordation, or within 3 | 19 |
| business days after the transfer is
effected, whichever is | 20 |
| earlier,
there shall also be presented to the recorder or
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| registrar of titles a declaration, signed by at least one of | 22 |
| the sellers and
also signed by at least one of the buyers in | 23 |
| the transaction or by the
attorneys or agents for the sellers | 24 |
| or buyers. The declaration shall state
information including, | 25 |
| but not limited to: (a) the value of the real property
or |
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| beneficial interest in real property located in Illinois
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| transferred; (b) the parcel
identifying number of the property; | 3 |
| (c) the legal description of
the
property; (d) the date of the | 4 |
| deed, the date the transfer was effected,
or the date of the | 5 |
| trust document; (e) the type of deed, transfer,
or
trust | 6 |
| document; (f) the address of the property; (g) the type of | 7 |
| improvement,
if any, on the property; (h) information as to | 8 |
| whether the
transfer is
between related individuals or | 9 |
| corporate affiliates or is a
compulsory transaction; (i)
the | 10 |
| lot size or acreage; (j) the value of personal property sold | 11 |
| with the
real estate; (k) the year the contract was initiated | 12 |
| if an installment sale;
(l) any homestead exemptions, as | 13 |
| provided in Sections 15-170, 15-172, 15-175, and 15-176 as | 14 |
| reflected on the most recent annual tax bill; and (m) the name, | 15 |
| address, and telephone number of the person preparing the
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| declaration ; and (n) whether the transfer is pursuant to | 17 |
| compulsory sale . Except as provided in Section 31-45, a deed, a | 18 |
| document
transferring a controlling interest in real property,
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| or trust
document shall not be accepted for recordation unless | 20 |
| it is accompanied by a
declaration containing all the | 21 |
| information requested
in the declaration. When the declaration | 22 |
| is signed by an attorney or agent on
behalf of sellers or | 23 |
| buyers who have the power of direction to deal with the
title | 24 |
| to the real estate under a land trust agreement, the trustee | 25 |
| being the
mere repository of record legal title with a duty of | 26 |
| conveying the real estate
only when and if directed in writing |
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| by the beneficiary or beneficiaries having
the power of | 2 |
| direction, the attorneys or agents executing the declaration on
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| behalf of the sellers or buyers need identify only the land | 4 |
| trust that is the
repository of record legal title and not the | 5 |
| beneficiary or beneficiaries
having the power of direction | 6 |
| under the land trust agreement. The declaration
form shall be | 7 |
| prescribed by the Department and shall contain sales | 8 |
| information
questions.
For sales occurring during a period in | 9 |
| which the provisions of Section 17-10
require the Department to | 10 |
| adjust sale prices for seller paid points and
prevailing cost | 11 |
| of cash,
the declaration form shall contain questions
regarding | 12 |
| the financing of the sale. The subject of the financing | 13 |
| questions
shall include any direct seller participation in the | 14 |
| financing of the sale or
information on financing that is | 15 |
| unconventional so as to affect the fair cash
value received by | 16 |
| the seller. The intent of the sales and financing questions
is | 17 |
| to aid in the reduction in the number of buyers required to | 18 |
| provide
financing information necessary for the adjustment | 19 |
| outlined in Section 17-10.
For sales occurring during a period | 20 |
| in which the provisions of Section 17-10
require the Department | 21 |
| to adjust sale prices for seller paid points and
prevailing | 22 |
| cost of cash,
the declaration form shall include, at a minimum, | 23 |
| the following data: (a)
seller paid points, (b) the sales | 24 |
| price, (c) type of
financing
(conventional, VA, FHA, | 25 |
| seller-financed, or other), (d) down
payment, (e) term,
(f) | 26 |
| interest rate, (g) type and description of interest
rate |
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| (fixed, adjustable
or renegotiable), and (h) an appropriate | 2 |
| place for the inclusion of special
facts or circumstances, if | 3 |
| any. The Department
shall
provide an adequate supply of forms | 4 |
| to each recorder and registrar of titles in
the State.
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| (Source: P.A. 93-657, eff. 6-1-04; 94-489, eff. 8-8-05.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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