Bill Text: IL HB4709 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, if the average market value of residential property fell by more than 7% in the previous calendar year, then the Department of Revenue shall include foreclosure sales and short sales in its sales ratio studies. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB4709 Detail]

Download: Illinois-2009-HB4709-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB4709 Introduced 1/4/2010, by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED:
35 ILCS 200/17-10
Amends the Property Tax Code. Provides that, if the average market value of residential property fell by more than 7% in the previous calendar year, then the Department of Revenue shall include foreclosure sales and short sales in its sales ratio studies. 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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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
Section 17-10 as follows:
(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. If the average market value of residential property
fell by more than 7% in the previous calendar year, then for
residential property the Department shall include foreclosure
sales and short sales in its sales ratio studies.

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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.)
Section 99. Effective date. This Act takes effect upon

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becoming law.