Public Act 096-1083
 
SB3334 EnrolledLRB096 15786 HLH 31026 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Property Tax Code is amended  by changing 
Sections 16-55, 16-65, 17-10, and 31-25 and  by adding Sections 
1-23 and  16-183 as follows:
 
    (35 ILCS 200/1-23 new)
    Sec. 1-23. Compulsory sale.  "Compulsory sale" means (i) the 
sale of real estate for less than the amount owed to the 
mortgage lender or mortgagor, if the lender or mortgagor has 
agreed to the sale, commonly referred to as a "short sale" and 
(ii) the first sale of real estate owned by a financial 
institution as a result of a  judgment of foreclosure, transfer 
pursuant to a deed in lieu of foreclosure, or consent judgment, 
occurring after the foreclosure proceeding is complete.
 



    (35 ILCS 200/16-55)



    Sec. 16-55. Complaints. On written complaint that any 
property is
overassessed or underassessed, the board shall 
review the assessment, and
correct it, as appears to be just, 
but in no case shall the property be
assessed at a higher 
percentage of fair cash value than other property in the

assessment district prior to equalization by the board or the 
Department. The board shall include compulsory sales in 
reviewing and correcting assessments, including, but not 
limited to, those compulsory sales submitted by the taxpayer, 
if the board determines that those sales reflect the same 
property characteristics and condition as those originally 
used to make the assessment.  The board shall also consider 
whether the compulsory sale would otherwise be considered an 
arm's length transaction. A
complaint to affect the assessment 
for the current year shall be filed on or
before the 10th day 
of August in counties with less than 150,000 inhabitants
and on 
or before the 10th day of September in counties with 150,000 or 
more but
less than 3,000,000 inhabitants, except if the 
assessment books containing the
assessment complained of are 
not filed with the board of review by the 10th day
of July in a 
county with fewer than 150,000 inhabitants or by the 10th day 
of
August in a county with 150,000 or more but less than 
3,000,000 inhabitants,
then the complaint shall be filed on or 
before 30 calendar days after the date
of publication of the 
assessment list under Section 12-10. The board may also,
at any 
time before its revision of the assessments is completed in 
every year,
increase, reduce or otherwise adjust the assessment 
of any property, making
changes in the valuation as may be 
just, and shall have full power over the
assessment of any 
person and may do anything in regard thereto that it may deem

necessary to make a just assessment, but the property shall not 
be assessed at
a higher percentage of fair cash value than the 
assessed valuation of other
property in the assessment district 
prior to equalization by the board or the
Department. No 
assessment shall be increased until the person to be affected

has been notified and given an opportunity to be heard, except 
as  provided
below. Before making any reduction in assessments 
of its own motion, the board
of review shall give notice to the 
assessor or chief county assessment officer
who certified the 
assessment, and give the assessor or chief county assessment

officer an opportunity to be heard thereon.  All complaints of 
errors in
assessments of property shall be in writing, and 
shall be filed by the
complaining party with the board of 
review, in duplicate. The duplicate shall
be filed by the board 
of review with the assessor or chief county assessment
officer 
who certified the assessment. In all cases where a change in 
assessed
valuation of $100,000 or more is sought, the board of 
review shall also serve a
copy of the petition on all taxing 
districts as shown on the last available tax
bill at least 14 
days prior to the hearing on the complaint.  All taxing

districts shall have an opportunity to be heard on the 
complaint. Complaints
shall be classified by townships or 
taxing districts by the clerk of the board
of review. All 
classes of complaints shall be docketed numerically, each in 
its
own class, in the order in which they are presented, in 
books kept for that
purpose, which books shall be open to 
public inspection.  Complaints shall be
considered by townships 
or taxing districts until all complaints have been
heard and 
passed upon by the board.

(Source: P.A. 86-345; 86-413; 86-1028; 86-1481; 88-455.)

 



    (35 ILCS 200/16-65)



    Sec. 16-65. Equalization process. The board of review shall 
act as an
equalizing authority, if after equalization by the 
supervisor of assessments
the equalized assessed value of 
property in the county is not 33 1/3% of the
total fair cash 
value. The board shall, after notice and hearing as required by

Section 12-40, lower or raise the total assessed value of 
property in any
assessment district within the county so that 
the property, other than farm
and coal property assessed under 
Sections 10-110 through 10-140 and Sections
10-170 through 
10-200, will be assessed at 33 1/3% of its fair cash value.

    For each assessment district of the county, the board of 
review shall
annually determine the percentage relationship 
between the valuations at which
property other than farm and 
coal property is listed and the estimated 33 1/3%
of the fair 
cash value of such property.  To make this analysis, the board

shall use at least 25 property transfers, or a combination of 
at least 25
property transfers and property appraisals, such 
information as may be
submitted by interested taxing bodies, or 
any other means as it deems proper
and reasonable.  If there are 
not 25 property transfers available, or if these
25 property 
transfers do not represent a fair sample of the types of 
properties
and their proportional distribution in the 
assessment district, the board shall
select a random sample of 
properties of a number necessary to provide a
combination of at 
least 25 property transfers and property appraisals as much
as 
possible representative of the entire assessment district, and 
provide for
their appraisal.  The township or multi-township 
assessor shall be notified of
and participate in the 
deliberations and determinations.

    In assessment year 2011, the board of review shall consider 
compulsory sales in its equalization process.
    The board of review, in conjunction with the chief county 
assessment officer, shall determine the number of compulsory 
sales from the prior year for the purpose of revising and 
correcting assessments.  The board of review shall determine if 
the number of compulsory sales is at least 25% of all property 
transfers within the neighborhood, township, multi-township 
assessment district, or other specific geographic region in the 
county for that class of property, but shall exclude from the 
calculation (i)  all property transfers for which the property 
characteristics and condition are not the same as those 
characteristics and condition used to determine the assessed 
value and (ii) any property transfer that is not an arm's 
length transaction based on existing sales ratio study 
standards (except for compulsory sales).  If the board 
determines that the number of compulsory sales is at least 25% 
of all property transfers within the defined geographic region 
for that class of property, then the board of review must 
determine (i) the median assessment level of arm's length 
transactions and (ii) the median assessment level of compulsory 
sales.  If the median assessment level of compulsory sales is 
higher than the median assessment level of arm's length 
transactions, then compulsory sales shall be included in the 
arm's length transaction study and the board must calculate the 
new median assessment level. Assessed values of properties 
within the specific geographic area for that class of property 
must be revised to reflect this new median assessment level. 
The revised median assessment level shall be the basis for 
equalization as otherwise provided in this Section. 
    With the ratio determined for each assessment
district, the 
board shall ascertain the amount to be added or
deducted from 
the aggregate assessment on property subject to local

assessment jurisdiction, other than farm and coal property, to 
produce a
ratio of assessed value to 33 1/3% of the fair cash 
value equivalent to 100%.
However, in determining the amount to 
be added to the
aggregate assessment on property subject to 
local jurisdiction in order
to produce a ratio of assessed 
value to 33 1/3% of the fair cash value
equivalent to 100%, the 
board shall not, in any one
year, increase or decrease the 
aggregate assessment of any assessment
district by more than 
25% of the equalized valuation of the district
for the previous 
year, except that additions, deletions or depletions to
the 
taxable property shall be excluded in computing the 25% 
limitation.
The board shall complete the equalization by the 
date prescribed in Section
16-35 for the board's adjournment, 
and, within 10 days thereafter, shall report
the results of its 
work under this Section to the Department.  At least 30 days

prior to its adjournment, the board shall publish a notice 
declaring whether
it intends to equalize assessments as 
provided in this Section.  The notice
shall be published in a 
newspaper of general circulation in the county.
If the board 
fails to report to the Department within the required time, or 
if
the report discloses that the board has failed to make a 
proper and
adequate equalization of assessments, the 
Department shall direct,
determine, and supervise the 
assessment so that all assessments of property are
relatively 
just and equal as provided in Section 8-5.

(Source: P.A. 84-1343; 88-455.)

 
    (35 ILCS 200/16-183 new)
    Sec. 16-183. Compulsory sales.  The Property Tax Appeal 
Board shall consider compulsory sales of comparable properties 
for the purpose of revising and correcting assessments, 
including those compulsory sales of comparable properties 
submitted by the taxpayer.
 



    (35 ILCS 200/17-10)



    Sec. 17-10. Sales ratio studies. The Department shall 
monitor the
quality of local assessments by designing, 
preparing and using ratio studies,
and shall use the results as 
the basis for equalization decisions.  In
compiling sales ratio 
studies, the Department shall exclude from the reported
sales 
price of any property any amounts included for personal 
property and,
for sales occurring through December 31, 1999, 
shall exclude
seller paid points.  The Department shall not 
include in its sales ratio
studies sales of property which have 
been platted and for which an increase in
the assessed 
valuation is restricted by Section 10-30.
The Department shall 
not include in its sales ratio studies the initial sale
of 
residential property that has been converted to condominium 
property. The Department shall include compulsory sales 
occurring on or after January 1, 2011 in its sales ratio 
studies.   The Department shall also consider whether the 
compulsory sale would otherwise be considered an arm's length 
transaction, based on existing sales ratio study standards. 

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

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

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

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

 
    (35 ILCS 200/31-25)


    Sec. 31-25. Transfer declaration.  At the time a deed, a 
document
transferring a controlling interest in real property,

or trust document is
presented for recordation, or within 3 
business days after the transfer is
effected, whichever is 
earlier,
there shall also be presented to the recorder or

registrar of titles a  declaration, signed by at least one of 
the sellers and
also signed by at least one of the buyers in 
the transaction or by the
attorneys or agents for the sellers 
or buyers.  The declaration shall state
information including, 
but not limited to: (a) the value of the real property
or 
beneficial interest in real property located in Illinois

so 
transferred; (b) the parcel
identifying number of the property; 
(c) the legal description of
the
property; (d) the date of the 
deed, the date the transfer was effected,
or the date of the 
trust document; (e) the type of deed, transfer,
or
trust 
document; (f) the address of the property; (g) the type of 
improvement,
if any, on the property; (h) information as to 
whether the
transfer is
between related individuals or 
corporate affiliates or is a
compulsory transaction; (i)
the 
lot size or acreage; (j) the value of personal property sold 
with the
real estate; (k) the year the contract was initiated 
if an installment sale;
 (l) any homestead exemptions, as 
provided in Sections 15-170, 15-172, 15-175, and 15-176 as 
reflected on the most recent annual tax bill; and (m) the name, 
address, and telephone number of the person preparing the

declaration; and (n) whether the transfer is pursuant to 
compulsory sale.  Except as provided in Section 31-45, a deed, a 
document
transferring a controlling interest in real property,

or trust
document shall not be accepted for recordation unless 
it is accompanied by a
declaration containing all the 
information requested
in the declaration.  When the declaration 
is  signed by an attorney or agent on
behalf of sellers or 
buyers who have the power of direction to deal with the
title 
to the real estate under a land trust agreement, the trustee 
being the
mere repository of record legal title with a duty of 
conveying the real estate
only when and if directed in writing 
by the beneficiary or beneficiaries having
the power of 
direction, the attorneys or agents executing the declaration on

behalf of the sellers or buyers need identify only the land 
trust that is the
repository of record legal title and not the 
beneficiary or beneficiaries
having the power of direction 
under the land trust agreement. The declaration
form shall be 
prescribed by the Department and shall contain sales 
information
questions.
For sales occurring during a period in 
which the provisions of Section 17-10
require the Department to 
adjust sale prices for seller paid points and
prevailing cost 
of cash,
 the declaration form shall contain questions
regarding 
the financing of the sale.  The subject of the financing 
questions
shall include any direct seller participation in the 
financing of the sale or
information on financing that is 
unconventional so as to affect the fair cash
value received by 
the seller.  The intent of the sales and financing questions
is 
to aid in the reduction in the number of buyers required to 
provide
financing information necessary for the adjustment 
outlined in Section 17-10.
For sales occurring during a period 
in which the provisions of Section 17-10
require the Department 
to adjust sale prices for seller paid points and
prevailing 
cost of cash,
the declaration form shall include, at a minimum, 
the following data:  (a)
seller paid points, (b) the sales 
price, (c) type of
financing
(conventional, VA, FHA, 
seller-financed, or other), (d) down
payment, (e) term,
(f) 
interest rate, (g) type and description of interest
rate 
(fixed, adjustable
or renegotiable), and (h) an appropriate 
place for the inclusion of special
facts or circumstances, if 
any. The Department
shall
provide an adequate supply of forms 
to each recorder and registrar of titles in
the State.


(Source: P.A. 93-657, eff. 6-1-04; 94-489, eff. 8-8-05.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.