Bill Text: IL SB3334 | 2009-2010 | 96th General Assembly | Enrolled

---

Bill Title: Amends the Property Tax Code. Provides that assessment officials may consider foreclosure sales and short sales of comparable properties when determining fair cash value. Provides that boards of review and boards of appeals may consider foreclosure sales and short sales of comparable properties for the purpose of revising and correcting assessments and must consider those sales of comparable properties submitted by the taxpayer. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Passed) 2010-07-16 - Public Act . . . . . . . . . 96-1083 [SB3334 Detail]

Download: Illinois-2009-SB3334-Enrolled.html

---

SB3334 Enrolled LRB096 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

SB3334 Enrolled - 2 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 3 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 4 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 5 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 6 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 7 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 8 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 9 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 10 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 11 - LRB096 15786 HLH 31026 b
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

SB3334 Enrolled - 12 - LRB096 15786 HLH 31026 b
(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.