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Public Act 91-0555
HB1778 Enrolled LRB9103278PTpr
AN ACT to amend the Property Tax Code.
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 17-5, 17-10, 17-15, 17-20, 17-25, 17-30, 17-35,
31-15, 31-25, 31-30, 31-35, 31-45, 31-50, 31-60, and 31-70
and adding Section 31-47 as follows:
(35 ILCS 200/17-5)
Sec. 17-5. Equalization among counties. The Department
shall act as an equalizing authority. It shall examine the
abstracts of property assessed for taxation in the counties
and in the assessment districts in counties having assessment
districts, as returned by the county clerks, and shall
equalize the assessments between counties as provided in this
Code. Except as hereinafter provided, the Department shall
lower or raise the total assessed value of property in each
any county as returned by the county clerk, other than
property assessed under Sections 10-110 through 10-140 and
10-170 through 10-200, so that the property will be assessed
at 33 1/3% of its fair cash value.
The Department shall annually determine the percentage
relationship, for each county of the State, between the
valuations at which locally-assessed property, other than
property assessed under the Sections 10-110 through 10-140
and 10-170 through 10-200, as is listed by assessors and
revised by boards of review or boards of appeal, and the
estimated 33 1/3% of the fair cash value of the property. To
make this analysis, the Department shall use property
transfers, property appraisals, and other means as it deems
proper and reasonable.
With the ratio determined for each county, the
Department shall then determine the percentage to be added to
or deducted from the aggregate reviewed assessment on
property subject to local assessment jurisdiction, other than
property assessed under the Sections cited above, to produce
a ratio of assessed value to 33 1/3% of the fair cash value
equivalent to 100%.
If the Department determines that there are substantial
differences in the level of assessment among different
townships in the same county, it shall, upon the request of
the county executive or, in counties not having an elected
county executive, of the county board under a resolution
adopted by the board, apply separate township equalization
factors determined by the Department, in lieu of a single
equalization factor for the entire county, but this provision
does not apply within any county which elects a county
assessor under Sections 3-45 or 3-50.
(Source: P.A. 84-1343; 88-455.)
(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.
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 not include in its sales ratio studies the initial sale
of residential property that has been converted to
condominium property. The Department shall make public its
adjustment procedure upon request.
(Source: P.A. 86-1481; 87-877; 88-455.)
(35 ILCS 200/17-15)
Sec. 17-15. Tentative equalization factor. The
Department shall forward to the County Clerk of each county
in each year its estimate of the percentage, established
under Section 17-5, to be added to or deducted from the
aggregate of the locally assessed property in that county,
other than property assessed under Sections 10-110 through
10-140 and 10-170 through 10-200. The percentage relationship
to be certified to each county or to the several townships
therein by the Department as provided by Section 17-25 shall
be determined by the ratio between the percentage estimate so
made and forwarded, as provided by this Section, and the
level of assessments of the assessed valuations as made by
the assessors and thereafter finally revised by the board of
review or board of appeals of that county. Such estimate
shall be forwarded by the Department to the County Clerk of
any County within 15 days after the chief county assessment
officer files with the Department an abstract of the
assessments of the locally assessed property in the county,
as finally revised. The abstract shall be in substantially
the same form as required of the County Clerk by Sections
9-250 and 9-255 after completion of the revisions thereafter
to be made by the board of review or board of appeals of the
county, except that the abstract shall specify separately the
amount of omitted property, and the amount of improvements
upon property assessed for the first time in that year. The
chief county assessment officer shall forward the abstract to
the Department within 30 days after returning the county
assessment books to the county board of review or board of
appeals.
(Source: P.A. 86-905; 88-455.)
(35 ILCS 200/17-20)
Sec. 17-20. Hearing on tentative equalization factor.
The Department shall, after publishing its tentative
equalization factor and giving notice of hearing to the
public in a newspaper of general circulation in the county,
hold a hearing on its estimate not less than 10 days nor more
than 30 days from the date of the publication. The notice
shall state the date and time of the hearing, which shall be
held in either Chicago or Springfield, the basis for the
estimate of the Department, and further information as the
Department may prescribe. The Department shall, after giving
a hearing to all interested parties and opportunity for
submitting testimony and evidence in support of or adverse to
the estimate as the Department considers requisite, either
confirm or revise the estimate so as to correctly represent
the considered judgment of the Department respecting the
estimated percentage to be added to or deducted from the
aggregate assessment of all locally assessed property in the
county except property assessed under Sections 10-110 through
10-140 or 10-170 through 10-200. Within 30 days after the
conclusion of the hearing the Department shall mail to the
County Clerk, by certified mail, its determination with
respect to such estimated percentage to be added to or
deducted from the aggregate assessment. The amendment made
by P.A. 77-714 does not apply in any county which elects a
county assessor under Sections 3-45 or 3-50.
(Source: P.A. 86-905; 88-455.)
(35 ILCS 200/17-25)
Sec. 17-25. Application of final equalization factor.
The assessments of all property, other than property assessed
under Sections 10-110 through 10-140 and 10-170 through
10-200, as returned by the county clerks, shall be equalized
by adding to the aggregate assessed value thereof in every
county in which the Department finds the valuation to be less
than 33 1/3% of the fair cash value of the property, the rate
per cent which will raise the aggregate assessed valuation to
33 1/3% of fair cash value, and by deducting from the
aggregate assessed value thereof, in every county or township
in which the Department finds the valuation to be more than
33 1/3% of the fair cash value, the rate per cent which will
reduce the aggregate assessed valuation to 33 1/3% of fair
cash value.
However, no equalization factor shall be certified by the
Department to raise or reduce the aggregate assessed value of
any county or township in which the aggregate assessed value
of property other than that assessed under the Sections cited
above, is more than 99% and less than 101% of 33 1/3% of fair
cash value. The amendment made by P.A. 77-714 does not apply
within the jurisdiction of any county which elects a county
assessor under Sections 3-45 or 3-50.
(Source: P.A. 84-1343; 88-455.)
(35 ILCS 200/17-30)
Sec. 17-30. Certification of final equalization factor.
When the Department has completed its equalization of
assessments in each year, it shall certify to each the
several county clerk clerks the percentage finally determined
by it to be added to or deducted from the listed or assessed
valuation of property in the county several counties or
townships as returned by the county clerk.
(Source: P.A. 78-255; 88-455.)
(35 ILCS 200/17-35)
Sec. 17-35. Certification of assessments. The Department
shall certify to the county clerks of the proper counties the
assessments made by it on certified pollution control
facilities, low sulfur dioxide emission coal fueled devices
and on property owned or used by railroad companies operating
within this State, along with the distribution of those
railroad assessments among the respective taxing districts
within the counties. The county clerks shall extend the taxes
for all purposes on the amounts so certified, in the same
manner as taxes are extended against other property in the
taxing districts in which the pollution control facilities,
low sulfur dioxide emission coal fueled devices and railroad
property are allocated or distributed.
The amendment made by P.A. 77-714 does not apply within
the jurisdiction of any county which elects a county assessor
under Sections 3-45 or 3-50.
(Source: P.A. 78-255; 88-455.)
(35 ILCS 200/31-15)
Sec. 31-15. Collection of tax. The tax shall be
collected by the recorder or registrar of titles of the
county in which the property is situated several counties
through the sale of revenue stamps, the design, denominations
and form of which shall be prescribed by the Department. If
requested by the recorder or registrar of titles of a county
that has imposed a county real estate transfer tax under
Section 5-1031 of the Counties Code, the Department shall
design the stamps furnished to that county under this Section
so that the same stamp also provides evidence of the payment
of the county real estate transfer tax and shall include in
the design of the stamp the name of the county and an
indication that the stamp is evidence of the payment of both
State and county real estate transfer taxes. The revenue
stamps shall be sold by the Department to the recorder or
registrar of titles who shall cause them to be sold for the
purposes prescribed. The Department shall charge at a rate of
50¢ per $500 of value in units of not less than $500. The
recorder or registrar of titles of the several counties shall
sell the revenue stamps at a rate of 50¢ per $500 of value or
fraction of $500. The recorder or registrar of titles may use
the proceeds for the purchase of revenue stamps from the
Department.
(Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
88-455.)
(35 ILCS 200/31-25)
Sec. 31-25. Transfer declaration. At the time a deed or
trust document is presented for recordation, 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 full consideration for the property so
transferred; (b) the parcel identifying permanent real estate
index number of the property, if any; (c) the legal
description of the property; (d) the date of the deed or
trust document; (e) the type of deed or trust document; (f)
the address of the property; (g) the type of improvement, if
any, on the property conveyed; (h) information as to whether
the transfer is between related individuals or corporate
affiliates relatives or is a compulsory transaction; (i) that
the parties are advised that the State of Illinois has
enacted the Smoke Detector Act; and (j) 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; and (l) the name, address, and telephone
number of the person preparing the declaration. Except as
provided in Section 31-45, a deed 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 subject of the sales information questions
shall include, but not be limited to, information on
compulsory transactions, sales between relatives and related
corporations, contractual sales, and deed or trust document
types. In addition, 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, an appropriate
place for the inclusion of special facts or circumstances, if
any, and shall include the following data: (a) seller paid
points, value of personal property sold with the real estate,
(b) sales finance charges (points) paid by the seller, (c)
the sales price, (c) (d) type of financing (conventional, VA,
FHA, seller-financed, or other), (d) (e) down payment, (e)
(f) term, (f) (g) interest rate, (g) (h) 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. (i) the year the contract was
initiated if a contractual sale, and (j) the name, address
and telephone number of the person filling out the real
estate transfer declaration. In counties of 3,000,000 or more
inhabitants, the declaration shall also contain a sworn or
affirmed statement executed by the grantor or the grantor's
agent stating that, to the best of his or her knowledge, the
name of the grantee shown on the deed or assignment of
beneficial interest in a land trust is either a natural
person, an Illinois corporation or foreign corporation
authorized to do business or acquire and hold title to real
estate in Illinois, a partnership authorized to do business
or acquire and hold title to real estate in Illinois, or
other entity recognized as a person and authorized to do
business or acquire and hold title to real estate under the
laws of Illinois. In counties of 3,000,000 or more
inhabitants, the declaration shall also contain a sworn or
affirmed statement executed by the grantee or the grantee's
agent verifying that the name of the grantee shown on the
deed or assignment of beneficial interest in a land trust is
either a natural person, an Illinois corporation or foreign
corporation authorized to do business or acquire and hold
title to real estate in Illinois, a partnership authorized to
do business or acquire and hold title to real estate in
Illinois, or other entity recognized as a person and
authorized to do business or acquire and hold title to real
estate under the laws of Illinois. The Department shall
provide an adequate supply of forms to each recorder and
registrar of titles in the State.
(Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
88-455.)
(35 ILCS 200/31-30)
Sec. 31-30. Use of transfer declaration. The recorder
or registrar of titles shall not record the declaration, but
shall insert on the declaration and all attachments the
Document Number assigned to the deed or trust document, and
shall within 30 days of receipt then transmit the declaration
to the chief county assessment officer. The chief county
assessment officer shall insert on the declaration the most
recent assessed value for each parcel of the transferred
property and other information required by the Department,
and, within 30 days of receipt or within 30 days of the
adjournment of the board of review for the previous
assessment year, whichever is later at least once during
every month, shall transmit all the declarations to the
Department. The chief county assessment officer may also copy
and retain any information relating to the property
transferred to assist in determining the proper assessed
valuation of the property transferred and other properties in
his county.
(Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
88-455.)
(35 ILCS 200/31-35)
Sec. 31-35. Deposit of tax revenue. Beginning July 1,
1993 through June 30, 1994, 50% of the monies collected under
Section 31-15 shall be deposited into the Illinois Affordable
Housing Trust Fund, 10% into the General Revenue Fund, 28%
into the Open Space Lands Acquisition and Development Fund
and 12% into the Natural Areas Acquisition Fund. Beginning
July 1, 1994, 50% of the monies collected under Section 31-15
shall be deposited into the Illinois Affordable Housing Trust
Fund, 35% into the Open Space Lands Acquisition and
Development Fund and 15% into the Natural Areas Acquisition
Fund.
(Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
88-455.)
(35 ILCS 200/31-45)
Sec. 31-45. Exemptions. The following deeds or trust
documents shall be exempt from the provisions of this Article
except as provided in this Section:
(a) Deeds representing real estate transfers made before
January 1, 1968, but recorded after that date and trust
documents executed before January 1, 1986, but recorded after
that date.
(b) Deeds to or trust documents relating to (1) property
acquired by any governmental body or from any governmental
body, (2) property or interests transferred between
governmental bodies, or (3) property acquired by or from any
corporation, society, association, foundation or institution
organized and operated exclusively for charitable, religious
or educational purposes. However, deeds or trust documents,
other than those in which the Administrator of Veterans'
Affairs of the United States is the grantee pursuant to a
foreclosure proceeding, shall not be exempt from filing the
declaration.
(c) Deeds or trust documents that secure debt or other
obligation.
(d) Deeds or trust documents that, without additional
consideration, confirm, correct, modify, or supplement a deed
or trust document previously recorded.
(e) Deeds or trust documents where the actual
consideration is less than $100.
(f) Tax deeds.
(g) Deeds or trust documents that release property that
is security for a debt or other obligation.
(h) Deeds of partition.
(i) Deeds or trust documents made pursuant to mergers,
consolidations or transfers or sales of substantially all of
the assets of corporations under plans of reorganization
under the Federal Internal Revenue Code or Title 11 of the
Federal Bankruptcy Act.
(j) Deeds or trust documents made by a subsidiary
corporation to its parent corporation for no consideration
other than the cancellation or surrender of the subsidiary's
stock.
(k) Deeds when there is an actual exchange of real
estate and trust documents when there is an actual exchange
of beneficial interests, except that that money difference or
money's worth paid from one to the other is not exempt from
the tax. These deeds or trust documents, however, shall not
be exempt from filing the declaration.
(l) Deeds issued to a holder of a mortgage, as defined
in Section 15-103 of the Code of Civil Procedure, pursuant to
a mortgage foreclosure proceeding or pursuant to a transfer
in lieu of foreclosure.
(m) A deed or trust document related to the purchase of
a principal residence by a participant in the program
authorized by the Home Ownership Made Easy Act, except that
those deeds and trust documents shall not be exempt from
filing the declaration.
(Source: P.A. 87-1206; 88-455.)
(35 ILCS 200/31-47 new)
Sec. 31-47. Verification. In all counties, each
transfer declaration filed under this Law shall include a
written statement by both the grantor or grantor's agent and
the grantee or grantee's agent that the information contained
in the declaration is true and correct to the best of his or
her knowledge and belief. In counties of 3,000,000 or more
inhabitants, the declaration shall also contain a written
statement executed by the grantor or the grantor's agent
verifying that, to the best of his or her knowledge, the name
of the grantee shown on the deed or assignment of beneficial
interest in a land trust is either a natural person, an
Illinois corporation or foreign corporation authorized to do
business or acquire and hold title to real estate in
Illinois, a partnership authorized to do business or acquire
and hold title to real estate in Illinois, or other entity
recognized as a person and authorized to do business or
acquire and hold title to real estate under the laws of
Illinois. In counties of 3,000,000 or more inhabitants, the
declaration shall also contain a written statement executed
by the grantee or the grantee's agent verifying that the name
of the grantee shown on the deed or assignment of beneficial
interest in a land trust is either a natural person, an
Illinois corporation or foreign corporation authorized to do
business or acquire and hold title to real estate in
Illinois, a partnership authorized to do business or acquire
and hold title to real estate in Illinois, or other entity
recognized as a person and authorized to do business or
acquire and hold title to real estate under the laws of
Illinois.
(35 ILCS 200/31-50)
Sec. 31-50. Penalties. Any person who willfully
falsifies the value of transferred real estate on the
transfer declaration required by Section 31-25 or who
willfully falsifies or willfully omits any other information
required by Section 31-25 or who willfully and falsely claims
a transaction to be exempt under Section 31-45 is guilty of
a Class B misdemeanor. Any person who knowingly submits a
false statement concerning the identity of a grantee under
the provisions of this Article is guilty of a Class C
misdemeanor. A second or subsequent conviction of an offense
is a Class A misdemeanor. A prosecution for any act in
violation of this Article may be commenced at any time within
5 years 3 years of the commission of the act. Only the buyer
or the buyer's representative shall attest to the accuracy of
the financing information reported on the declaration and
required by Section 31-25. Any person convicted of any
offense under this Law is liable for the tax due in addition
to any fines imposed by the court.
(Source: P.A. 84-1308; 88-455.)
(35 ILCS 200/31-60)
Sec. 31-60. Check for violations. The Department shall
conduct spot checks or investigations of declarations
required to be filed by this Article and may shall forward
information of violations to the State's Attorney of the
county where the violations occur for prosecution and
collection of taxes.
(Source: P.A. 81-936; 88-455.)
(35 ILCS 200/31-70)
Sec. 31-70. Rules. The Department may prescribe
reasonable rules for the administration of this Article,
including rules permitting a transfer declaration in a
prescribed electronic form and permitting the electronic
transmission of the transfer declaration using a prescribed
method and format.
(Source: Laws 1967, p. 1716; P.A. 88-455.)
Section 99. Effective date. This Act takes effect on
January 1, 2000.
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