Bill Text: IL SB2544 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Removes provisions concerning compulsory sales.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-12-31 - Chief Sponsor Changed to Sen. Don Harmon [SB2544 Detail]
Download: Illinois-2021-SB2544-Introduced.html
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
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, 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) (Blank). The board shall include compulsory sales in | |||||||||||||||||||||||||||||
15 | reviewing and correcting assessments, including, but not | |||||||||||||||||||||||||||||
16 | limited to, those compulsory sales submitted by the | |||||||||||||||||||||||||||||
17 | complainant, if the board determines that those sales reflect | |||||||||||||||||||||||||||||
18 | the same property characteristics and condition as those | |||||||||||||||||||||||||||||
19 | originally used to make the assessment. The board shall also | |||||||||||||||||||||||||||||
20 | consider whether the compulsory sale would otherwise be | |||||||||||||||||||||||||||||
21 | considered an arm's length transaction. | |||||||||||||||||||||||||||||
22 | (c) If a complaint is filed by an attorney on behalf of a | |||||||||||||||||||||||||||||
23 | complainant, all notices and correspondence from the board |
| |||||||
| |||||||
1 | relating to the appeal shall be directed to the attorney. The | ||||||
2 | board may require proof of the attorney's authority to | ||||||
3 | represent the taxpayer. If the attorney fails to provide proof | ||||||
4 | of authority within the compliance period granted by the board | ||||||
5 | pursuant to subsection (d), the board may dismiss the | ||||||
6 | complaint. The Board shall send, electronically or by mail, | ||||||
7 | notice of the dismissal to the attorney and complainant. | ||||||
8 | (d) A
complaint to affect the assessment for the current | ||||||
9 | year shall be filed on or before 30 calendar days after the | ||||||
10 | date
of publication of the assessment list under Section | ||||||
11 | 12-10. Upon receipt of a written complaint that is timely | ||||||
12 | filed under this Section, the board of review shall docket the | ||||||
13 | complaint. If the complaint does not comply with the board of | ||||||
14 | review rules adopted under Section 9-5 entitling the | ||||||
15 | complainant to a hearing, the board shall send, electronically | ||||||
16 | or by mail, notification acknowledging receipt of the | ||||||
17 | complaint. The notification must identify which rules have not | ||||||
18 | been complied with and provide the complainant with not less | ||||||
19 | than 10 business days to bring the complaint into compliance | ||||||
20 | with those rules. If the complainant complies with the board | ||||||
21 | of review rules either upon the initial filing of a complaint | ||||||
22 | or within the time as extended by the board of review for | ||||||
23 | compliance, then the board of review shall send, | ||||||
24 | electronically or by mail, a notice of hearing and the board | ||||||
25 | shall hear the complaint and shall issue and send, | ||||||
26 | electronically or by mail, a decision upon resolution. Except |
| |||||||
| |||||||
1 | as otherwise provided in subsection (c), if the complainant | ||||||
2 | has not complied with the rules within the time as extended by | ||||||
3 | the board of review, the board shall nonetheless issue and | ||||||
4 | send a decision. The board of review may adopt rules allowing | ||||||
5 | any party to attend and participate in a hearing by telephone | ||||||
6 | or electronically. | ||||||
7 | (d-5) Complaints and other written correspondence sent by | ||||||
8 | the United States mail shall be considered filed as of the | ||||||
9 | postmark date in accordance with Section 1.25 of the Statute | ||||||
10 | on Statutes. Complaints and other written correspondence sent | ||||||
11 | by a delivery service other than the United States Postal | ||||||
12 | System shall be considered as filed as of the date sent as | ||||||
13 | indicated by the shipper's tracking label. If allowed by board | ||||||
14 | of review rule, complaints and other written correspondence | ||||||
15 | transmitted electronically shall be considered filed as of the | ||||||
16 | date received. | ||||||
17 | (e) The board may also,
at any time before its revision of | ||||||
18 | the assessments is completed in every year,
increase, reduce | ||||||
19 | or otherwise adjust the assessment of any property, making
| ||||||
20 | changes in the valuation as may be just, and shall have full | ||||||
21 | power over the
assessment of any person and may do anything in | ||||||
22 | regard thereto that it may deem
necessary to make a just | ||||||
23 | assessment, but the property shall not be assessed at
a higher | ||||||
24 | percentage of fair cash value than the assessed valuation of | ||||||
25 | other
property in the assessment district prior to | ||||||
26 | equalization by the board or the
Department. |
| |||||||
| |||||||
1 | (f) No assessment shall be increased until the person to | ||||||
2 | be affected
has been notified and given an opportunity to be | ||||||
3 | heard, except as provided
below. | ||||||
4 | (g) Before making any reduction in assessments of its own | ||||||
5 | motion, the board
of review shall give notice to the assessor | ||||||
6 | or chief county assessment officer
who certified the | ||||||
7 | assessment, and give the assessor or chief county assessment
| ||||||
8 | officer an opportunity to be heard thereon. | ||||||
9 | (h) All complaints of errors in
assessments of property | ||||||
10 | shall be in writing, and shall be filed by the
complaining | ||||||
11 | party with the board of review, in the number of copies | ||||||
12 | required by board of review rule. A copy shall
be filed by the | ||||||
13 | board of review with the assessor or chief county assessment
| ||||||
14 | officer who certified the assessment. | ||||||
15 | (i) In all cases where a change in assessed
valuation of | ||||||
16 | $100,000 or more is sought, the board of review shall also | ||||||
17 | serve a
copy of the petition on all taxing districts as shown | ||||||
18 | on the last available tax
bill at least 14 days prior to the | ||||||
19 | hearing on the complaint. Service may be by electronic means | ||||||
20 | if the taxing district consents to electronic service and | ||||||
21 | provides the board of review with a valid e-mail address for | ||||||
22 | the purpose of receiving service. All taxing
districts shall | ||||||
23 | have an opportunity to be heard on the complaint. A taxing | ||||||
24 | district wishing to intervene shall file a request to | ||||||
25 | intervene with the board of review at least five days in | ||||||
26 | advance of a scheduled hearing. If board of review rules |
| |||||||
| |||||||
1 | require the appellant to submit evidence in advance of a | ||||||
2 | hearing, then any evidence in support of the intervenor's | ||||||
3 | opinion of assessed value must be submitted to the board of | ||||||
4 | review and complainant no later than five calendar days prior | ||||||
5 | to the hearing. Service shall be made as set forth in | ||||||
6 | subsection (d-5), but if board of review rules allow | ||||||
7 | complaints and correspondence to be transmitted | ||||||
8 | electronically, then the intervenor's evidence shall be | ||||||
9 | transmitted electronically. | ||||||
10 | (i-5) If board of review rules require the appellant to | ||||||
11 | submit evidence in advance of a hearing, then any evidence to | ||||||
12 | support the assessor's opinion of assessed value must be | ||||||
13 | submitted to the board of review and the complainant (or, if | ||||||
14 | represented by an attorney, to the attorney) no later than | ||||||
15 | five calendar days prior to the hearing. Service shall be made | ||||||
16 | as set forth in subsection (d-5), but if board of review rules | ||||||
17 | allow complaints and correspondence to be transmitted | ||||||
18 | electronically, then the assessor's evidence shall be | ||||||
19 | transmitted electronically. | ||||||
20 | (j) Complaints
shall be classified by townships or taxing | ||||||
21 | districts by the clerk of the board
of review. All classes of | ||||||
22 | complaints shall be docketed numerically, each in its
own | ||||||
23 | class, in the order in which they are presented, in books kept | ||||||
24 | for that
purpose, which books shall be open to public | ||||||
25 | inspection. Complaints shall be
considered by townships or | ||||||
26 | taxing districts until all complaints have been
heard and |
| |||||||
| |||||||
1 | passed upon by the board.
| ||||||
2 | (Source: P.A. 98-322, eff. 8-12-13; 99-98, eff. 1-1-16; | ||||||
3 | 99-579, eff. 7-15-16.)
| ||||||
4 | (35 ILCS 200/16-65)
| ||||||
5 | Sec. 16-65. Equalization process. The board of review | ||||||
6 | shall act as an
equalizing authority, if after equalization by | ||||||
7 | the supervisor of assessments
the equalized assessed value of | ||||||
8 | property in the county is not 33 1/3% of the
total fair cash | ||||||
9 | value. The board shall, after notice and hearing as required | ||||||
10 | by
Section 12-40, lower or raise the total assessed value of | ||||||
11 | property in any
assessment district within the county so that | ||||||
12 | the property, other than farm
and coal property assessed under | ||||||
13 | Sections 10-110 through 10-140 and Sections
10-170 through | ||||||
14 | 10-200, will be assessed at 33 1/3% of its fair cash value.
| ||||||
15 | For each assessment district of the county, the board of | ||||||
16 | review shall
annually determine the percentage relationship | ||||||
17 | between the valuations at which
property other than farm and | ||||||
18 | coal property is listed and the estimated 33 1/3%
of the fair | ||||||
19 | cash value of such property. To make this analysis, the board
| ||||||
20 | shall use at least 25 property transfers, or a combination of | ||||||
21 | at least 25
property transfers and property appraisals, such | ||||||
22 | information as may be
submitted by interested taxing bodies, | ||||||
23 | or any other means as it deems proper
and reasonable. If there | ||||||
24 | are not 25 property transfers available, or if these
25 | ||||||
25 | property transfers do not represent a fair sample of the types |
| |||||||
| |||||||
1 | of properties
and their proportional distribution in the | ||||||
2 | assessment district, the board shall
select a random sample of | ||||||
3 | properties of a number necessary to provide a
combination of | ||||||
4 | at least 25 property transfers and property appraisals as much
| ||||||
5 | as possible representative of the entire assessment district, | ||||||
6 | and provide for
their appraisal. The township or | ||||||
7 | multi-township assessor shall be notified of
and participate | ||||||
8 | in the deliberations and determinations.
| ||||||
9 | In assessment year 2011, the board of review shall | ||||||
10 | consider compulsory sales in its equalization process. | ||||||
11 | The board of review, in conjunction with the chief county | ||||||
12 | assessment officer, shall determine the number of compulsory | ||||||
13 | sales from the prior year for the purpose of revising and | ||||||
14 | correcting assessments. The board of review shall determine if | ||||||
15 | the number of compulsory sales is at least 25% of all property | ||||||
16 | transfers within the neighborhood, township, multi-township | ||||||
17 | assessment district, or other specific geographic region in | ||||||
18 | the county for that class of property, but shall exclude from | ||||||
19 | the calculation (i) all property transfers for which the | ||||||
20 | property characteristics and condition are not the same as | ||||||
21 | those characteristics and condition used to determine the | ||||||
22 | assessed value and (ii) any property transfer that is not an | ||||||
23 | arm's length transaction based on existing sales ratio study | ||||||
24 | standards (except for compulsory sales). If the board | ||||||
25 | determines that the number of compulsory sales is at least 25% | ||||||
26 | of all property transfers within the defined geographic region |
| |||||||
| |||||||
1 | for that class of property, then the board of review must | ||||||
2 | determine (i) the median assessment level of arm's length | ||||||
3 | transactions and (ii) the median assessment level of | ||||||
4 | compulsory sales. If the median assessment level of compulsory | ||||||
5 | sales is higher than the median assessment level of arm's | ||||||
6 | length transactions, then compulsory sales shall be included | ||||||
7 | in the arm's length transaction study and the board must | ||||||
8 | calculate the new median assessment level. Assessed values of | ||||||
9 | properties within the specific geographic area for that class | ||||||
10 | of property must be revised to reflect this new median | ||||||
11 | assessment level. The revised median assessment level shall be | ||||||
12 | the basis for equalization as otherwise provided in this | ||||||
13 | Section. | ||||||
14 | With the ratio determined for each assessment
district, | ||||||
15 | the board shall ascertain the amount to be added or
deducted | ||||||
16 | from the aggregate assessment on property subject to local
| ||||||
17 | assessment jurisdiction, other than farm and coal property, to | ||||||
18 | produce a
ratio of assessed value to 33 1/3% of the fair cash | ||||||
19 | value equivalent to 100%.
However, in determining the amount | ||||||
20 | to be added to the
aggregate assessment on property subject to | ||||||
21 | local jurisdiction in order
to produce a ratio of assessed | ||||||
22 | value to 33 1/3% of the fair cash value
equivalent to 100%, the | ||||||
23 | board shall not, in any one
year, increase or decrease the | ||||||
24 | aggregate assessment of any assessment
district by more than | ||||||
25 | 25% of the equalized valuation of the district
for the | ||||||
26 | previous year, except that additions, deletions or depletions |
| |||||||
| |||||||
1 | to
the taxable property shall be excluded in computing the 25% | ||||||
2 | limitation.
The board shall complete the equalization by the | ||||||
3 | date prescribed in Section
16-35 for the board's adjournment, | ||||||
4 | and, within 10 days thereafter, shall report
the results of | ||||||
5 | its work under this Section to the Department. At least 30 days
| ||||||
6 | prior to its adjournment, the board shall publish a notice | ||||||
7 | declaring whether
it intends to equalize assessments as | ||||||
8 | provided in this Section. The notice
shall be published in a | ||||||
9 | newspaper of general circulation in the county.
If the board | ||||||
10 | fails to report to the Department within the required time, or | ||||||
11 | if
the report discloses that the board has failed to make a | ||||||
12 | proper and
adequate equalization of assessments, the | ||||||
13 | Department shall direct,
determine, and supervise the | ||||||
14 | assessment so that all assessments of property are
relatively | ||||||
15 | just and equal as provided in Section 8-5.
| ||||||
16 | (Source: P.A. 96-1083, eff. 7-16-10.)
| ||||||
17 | (35 ILCS 200/17-10)
| ||||||
18 | Sec. 17-10. Sales ratio studies. The Department shall | ||||||
19 | monitor the
quality of local assessments by designing, | ||||||
20 | preparing and using ratio studies,
and shall use the results | ||||||
21 | as the basis for equalization decisions. In
compiling sales | ||||||
22 | ratio studies, the Department shall exclude from the reported
| ||||||
23 | sales price of any property any amounts included for personal | ||||||
24 | property and,
for sales occurring through December 31, 1999, | ||||||
25 | shall exclude
seller paid points. The Department shall not |
| |||||||
| |||||||
1 | include in its sales ratio
studies sales of property which | ||||||
2 | have been platted and for which an increase in
the assessed | ||||||
3 | valuation is restricted by Section 10-30.
The Department shall | ||||||
4 | not include in its sales ratio studies the initial sale
of | ||||||
5 | residential property that has been converted to condominium | ||||||
6 | property. The Department shall include compulsory sales | ||||||
7 | occurring on or after January 1, 2011 in its sales ratio | ||||||
8 | studies. The Department shall also consider whether the | ||||||
9 | compulsory sale would otherwise be considered an arm's length | ||||||
10 | transaction, based on existing sales ratio study standards.
| ||||||
11 | When the declaration
required under the Real Estate | ||||||
12 | Transfer Tax Law contains financing information
required under | ||||||
13 | Section 31-25, the Department shall adjust sales prices to
| ||||||
14 | exclude seller-paid points and shall adjust sales prices to | ||||||
15 | "cash value" when
seller related financing is used that is | ||||||
16 | different than the prevailing cost of
cash. The prevailing | ||||||
17 | cost of cash for sales occurring on or after January 1,
1992 | ||||||
18 | shall be established as the monthly average 30-year fixed | ||||||
19 | Primary Mortgage
Market Survey rate for the North Central | ||||||
20 | Region as published weekly by the
Federal Home Loan Mortgage | ||||||
21 | Corporation, as computed by the Department, or such
other rate | ||||||
22 | as determined by the Department. This rate shall be known as | ||||||
23 | the
survey rate. For sales occurring on or after January 1, | ||||||
24 | 1992, through
December 31, 1999, adjustments in
the prevailing | ||||||
25 | cost of cash shall be made only after the survey rate has been
| ||||||
26 | at or above 13% for 12 consecutive months and will continue |
| |||||||
| |||||||
1 | until the survey
rate has been below 13% for 12 consecutive | ||||||
2 | months.
For sales occurring on or after January 1, 2000, | ||||||
3 | adjustments for seller paid
points and adjustments in the | ||||||
4 | prevailing cost of cash shall be made only after
the survey | ||||||
5 | rate has been at or above 13% for 12 consecutive months and | ||||||
6 | will
continue until the survey rate has been below 13% for 12 | ||||||
7 | consecutive months. The Department shall make
public its | ||||||
8 | adjustment procedure upon request.
| ||||||
9 | (Source: P.A. 96-1083, eff. 7-16-10.)
| ||||||
10 | (35 ILCS 200/31-25)
| ||||||
11 | Sec. 31-25. Transfer declaration. At the time a deed, a | ||||||
12 | document
transferring a controlling interest in real property,
| ||||||
13 | or trust document is
presented for recordation, or within 3 | ||||||
14 | business days after the transfer is
effected, whichever is | ||||||
15 | earlier,
there shall also be presented to the recorder or
| ||||||
16 | registrar of titles a declaration, signed by at least one of | ||||||
17 | the sellers and
also signed by at least one of the buyers in | ||||||
18 | the transaction or by the
attorneys or agents for the sellers | ||||||
19 | or buyers. The declaration shall state
information including, | ||||||
20 | but not limited to: (a) the value of the real property
or | ||||||
21 | beneficial interest in real property located in Illinois
so | ||||||
22 | transferred; (b) the parcel
identifying number of the | ||||||
23 | property; (c) the legal description of
the
property; (d) the | ||||||
24 | date of the deed, the date the transfer was effected,
or the | ||||||
25 | date of the trust document; (e) the type of deed, transfer,
or
|
| |||||||
| |||||||
1 | trust document; (f) the address of the property; (g) the type | ||||||
2 | of improvement,
if any, on the property; (h) information as to | ||||||
3 | whether the
transfer is
between related individuals or | ||||||
4 | corporate affiliates or is a
compulsory transaction; (i)
the | ||||||
5 | lot size or acreage; (j) the value of personal property sold | ||||||
6 | with the
real estate; (k) the year the contract was initiated | ||||||
7 | if an installment sale;
(l) any homestead exemptions, as | ||||||
8 | provided in Sections 15-170, 15-172, 15-175, and 15-176 as | ||||||
9 | reflected on the most recent annual tax bill; and (m) the name, | ||||||
10 | address, and telephone number of the person preparing the
| ||||||
11 | declaration ; and (n) whether the transfer is pursuant to | ||||||
12 | compulsory sale . Except as provided in Section 31-45, a deed, | ||||||
13 | a document
transferring a controlling interest in real | ||||||
14 | property,
or trust
document shall not be accepted for | ||||||
15 | recordation unless it is accompanied by a
declaration | ||||||
16 | containing all the information requested
in the declaration. | ||||||
17 | When the declaration is signed by an attorney or agent on
| ||||||
18 | behalf of sellers or buyers who have the power of direction to | ||||||
19 | deal with the
title to the real estate under a land trust | ||||||
20 | agreement, the trustee being the
mere repository of record | ||||||
21 | legal title with a duty of conveying the real estate
only when | ||||||
22 | and if directed in writing by the beneficiary or beneficiaries | ||||||
23 | having
the power of direction, the attorneys or agents | ||||||
24 | executing the declaration on
behalf of the sellers or buyers | ||||||
25 | need identify only the land trust that is the
repository of | ||||||
26 | record legal title and not the beneficiary or beneficiaries
|
| |||||||
| |||||||
1 | having the power of direction under the land trust agreement. | ||||||
2 | The declaration
form shall be prescribed by the Department and | ||||||
3 | shall contain sales information
questions.
For sales occurring | ||||||
4 | during a period in which the provisions of Section 17-10
| ||||||
5 | require the Department to adjust sale prices for seller paid | ||||||
6 | points and
prevailing cost of cash,
the declaration form shall | ||||||
7 | contain questions
regarding the financing of the sale. The | ||||||
8 | subject of the financing questions
shall include any direct | ||||||
9 | seller participation in the financing of the sale or
| ||||||
10 | information on financing that is unconventional so as to | ||||||
11 | affect the fair cash
value received by the seller. The intent | ||||||
12 | of the sales and financing questions
is to aid in the reduction | ||||||
13 | in the number of buyers required to provide
financing | ||||||
14 | information necessary for the adjustment outlined in Section | ||||||
15 | 17-10.
For sales occurring during a period in which the | ||||||
16 | provisions of Section 17-10
require the Department to adjust | ||||||
17 | sale prices for seller paid points and
prevailing cost of | ||||||
18 | cash,
the declaration form shall include, at a minimum, the | ||||||
19 | following data: (a)
seller paid points, (b) the sales price, | ||||||
20 | (c) type of
financing
(conventional, VA, FHA, seller-financed, | ||||||
21 | or other), (d) down
payment, (e) term,
(f) interest rate, (g) | ||||||
22 | type and description of interest
rate (fixed, adjustable
or | ||||||
23 | renegotiable), and (h) an appropriate place for the inclusion | ||||||
24 | of special
facts or circumstances, if any. The Department
| ||||||
25 | shall
provide an adequate supply of forms to each recorder and | ||||||
26 | registrar of titles in
the State.
|
| |||||||
| |||||||
1 | (Source: P.A. 96-1083, eff. 7-16-10.)
| ||||||
2 | (35 ILCS 200/1-23 rep.) | ||||||
3 | (35 ILCS 200/16-183 rep.) | ||||||
4 | Section 10. The Property Tax Code is amended by repealing | ||||||
5 | Sections 1-23 and 16-183.
|