Illinois General Assembly - Full Text of SB2544
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Full Text of SB2544  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/26/2021, by Sen. Melinda Bush


35 ILCS 200/16-55
35 ILCS 200/16-65
35 ILCS 200/17-10
35 ILCS 200/31-25
35 ILCS 200/1-23 rep.
35 ILCS 200/16-183 rep.

    Amends the Property Tax Code. Removes provisions concerning compulsory sales.

LRB102 16264 HLH 21646 b





SB2544LRB102 16264 HLH 21646 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Sections 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
9or underassessed, the board shall review the assessment, and
10correct it, as appears to be just, but in no case shall the
11property be assessed at a higher percentage of fair cash value
12than other property in the assessment district prior to
13equalization by the board or the Department.
14    (b) (Blank). The board shall include compulsory sales in
15reviewing and correcting assessments, including, but not
16limited to, those compulsory sales submitted by the
17complainant, if the board determines that those sales reflect
18the same property characteristics and condition as those
19originally used to make the assessment. The board shall also
20consider whether the compulsory sale would otherwise be
21considered an arm's length transaction.
22    (c) If a complaint is filed by an attorney on behalf of a
23complainant, all notices and correspondence from the board



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1relating to the appeal shall be directed to the attorney. The
2board may require proof of the attorney's authority to
3represent the taxpayer. If the attorney fails to provide proof
4of authority within the compliance period granted by the board
5pursuant to subsection (d), the board may dismiss the
6complaint. The Board shall send, electronically or by mail,
7notice of the dismissal to the attorney and complainant.
8    (d) A complaint to affect the assessment for the current
9year shall be filed on or before 30 calendar days after the
10date of publication of the assessment list under Section
1112-10. Upon receipt of a written complaint that is timely
12filed under this Section, the board of review shall docket the
13complaint. If the complaint does not comply with the board of
14review rules adopted under Section 9-5 entitling the
15complainant to a hearing, the board shall send, electronically
16or by mail, notification acknowledging receipt of the
17complaint. The notification must identify which rules have not
18been complied with and provide the complainant with not less
19than 10 business days to bring the complaint into compliance
20with those rules. If the complainant complies with the board
21of review rules either upon the initial filing of a complaint
22or within the time as extended by the board of review for
23compliance, then the board of review shall send,
24electronically or by mail, a notice of hearing and the board
25shall hear the complaint and shall issue and send,
26electronically or by mail, a decision upon resolution. Except



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1as otherwise provided in subsection (c), if the complainant
2has not complied with the rules within the time as extended by
3the board of review, the board shall nonetheless issue and
4send a decision. The board of review may adopt rules allowing
5any party to attend and participate in a hearing by telephone
6or electronically.
7    (d-5) Complaints and other written correspondence sent by
8the United States mail shall be considered filed as of the
9postmark date in accordance with Section 1.25 of the Statute
10on Statutes. Complaints and other written correspondence sent
11by a delivery service other than the United States Postal
12System shall be considered as filed as of the date sent as
13indicated by the shipper's tracking label. If allowed by board
14of review rule, complaints and other written correspondence
15transmitted electronically shall be considered filed as of the
16date received.
17    (e) The board may also, at any time before its revision of
18the assessments is completed in every year, increase, reduce
19or otherwise adjust the assessment of any property, making
20changes in the valuation as may be just, and shall have full
21power over the assessment of any person and may do anything in
22regard thereto that it may deem necessary to make a just
23assessment, but the property shall not be assessed at a higher
24percentage of fair cash value than the assessed valuation of
25other property in the assessment district prior to
26equalization by the board or the Department.



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1    (f) No assessment shall be increased until the person to
2be affected has been notified and given an opportunity to be
3heard, except as provided below.
4    (g) Before making any reduction in assessments of its own
5motion, the board of review shall give notice to the assessor
6or chief county assessment officer who certified the
7assessment, and give the assessor or chief county assessment
8officer an opportunity to be heard thereon.
9    (h) All complaints of errors in assessments of property
10shall be in writing, and shall be filed by the complaining
11party with the board of review, in the number of copies
12required by board of review rule. A copy shall be filed by the
13board of review with the assessor or chief county assessment
14officer 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
17serve a copy of the petition on all taxing districts as shown
18on the last available tax bill at least 14 days prior to the
19hearing on the complaint. Service may be by electronic means
20if the taxing district consents to electronic service and
21provides the board of review with a valid e-mail address for
22the purpose of receiving service. All taxing districts shall
23have an opportunity to be heard on the complaint. A taxing
24district wishing to intervene shall file a request to
25intervene with the board of review at least five days in
26advance of a scheduled hearing. If board of review rules



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1require the appellant to submit evidence in advance of a
2hearing, then any evidence in support of the intervenor's
3opinion of assessed value must be submitted to the board of
4review and complainant no later than five calendar days prior
5to the hearing. Service shall be made as set forth in
6subsection (d-5), but if board of review rules allow
7complaints and correspondence to be transmitted
8electronically, then the intervenor's evidence shall be
9transmitted electronically.
10    (i-5) If board of review rules require the appellant to
11submit evidence in advance of a hearing, then any evidence to
12support the assessor's opinion of assessed value must be
13submitted to the board of review and the complainant (or, if
14represented by an attorney, to the attorney) no later than
15five calendar days prior to the hearing. Service shall be made
16as set forth in subsection (d-5), but if board of review rules
17allow complaints and correspondence to be transmitted
18electronically, then the assessor's evidence shall be
19transmitted electronically.
20    (j) Complaints shall be classified by townships or taxing
21districts by the clerk of the board of review. All classes of
22complaints shall be docketed numerically, each in its own
23class, in the order in which they are presented, in books kept
24for that purpose, which books shall be open to public
25inspection. Complaints shall be considered by townships or
26taxing districts until all complaints have been heard and



SB2544- 6 -LRB102 16264 HLH 21646 b

1passed upon by the board.
2(Source: P.A. 98-322, eff. 8-12-13; 99-98, eff. 1-1-16;
399-579, eff. 7-15-16.)
4    (35 ILCS 200/16-65)
5    Sec. 16-65. Equalization process. The board of review
6shall act as an equalizing authority, if after equalization by
7the supervisor of assessments the equalized assessed value of
8property in the county is not 33 1/3% of the total fair cash
9value. The board shall, after notice and hearing as required
10by Section 12-40, lower or raise the total assessed value of
11property in any assessment district within the county so that
12the property, other than farm and coal property assessed under
13Sections 10-110 through 10-140 and Sections 10-170 through
1410-200, will be assessed at 33 1/3% of its fair cash value.
15    For each assessment district of the county, the board of
16review shall annually determine the percentage relationship
17between the valuations at which property other than farm and
18coal property is listed and the estimated 33 1/3% of the fair
19cash value of such property. To make this analysis, the board
20shall use at least 25 property transfers, or a combination of
21at least 25 property transfers and property appraisals, such
22information as may be submitted by interested taxing bodies,
23or any other means as it deems proper and reasonable. If there
24are not 25 property transfers available, or if these 25
25property transfers do not represent a fair sample of the types



SB2544- 7 -LRB102 16264 HLH 21646 b

1of properties and their proportional distribution in the
2assessment district, the board shall select a random sample of
3properties of a number necessary to provide a combination of
4at least 25 property transfers and property appraisals as much
5as possible representative of the entire assessment district,
6and provide for their appraisal. The township or
7multi-township assessor shall be notified of and participate
8in the deliberations and determinations.
9    In assessment year 2011, the board of review shall
10consider compulsory sales in its equalization process.
11    The board of review, in conjunction with the chief county
12assessment officer, shall determine the number of compulsory
13sales from the prior year for the purpose of revising and
14correcting assessments. The board of review shall determine if
15the number of compulsory sales is at least 25% of all property
16transfers within the neighborhood, township, multi-township
17assessment district, or other specific geographic region in
18the county for that class of property, but shall exclude from
19the calculation (i) all property transfers for which the
20property characteristics and condition are not the same as
21those characteristics and condition used to determine the
22assessed value and (ii) any property transfer that is not an
23arm's length transaction based on existing sales ratio study
24standards (except for compulsory sales). If the board
25determines that the number of compulsory sales is at least 25%
26of all property transfers within the defined geographic region



SB2544- 8 -LRB102 16264 HLH 21646 b

1for that class of property, then the board of review must
2determine (i) the median assessment level of arm's length
3transactions and (ii) the median assessment level of
4compulsory sales. If the median assessment level of compulsory
5sales is higher than the median assessment level of arm's
6length transactions, then compulsory sales shall be included
7in the arm's length transaction study and the board must
8calculate the new median assessment level. Assessed values of
9properties within the specific geographic area for that class
10of property must be revised to reflect this new median
11assessment level. The revised median assessment level shall be
12the basis for equalization as otherwise provided in this
14    With the ratio determined for each assessment district,
15the board shall ascertain the amount to be added or deducted
16from the aggregate assessment on property subject to local
17assessment jurisdiction, other than farm and coal property, to
18produce a ratio of assessed value to 33 1/3% of the fair cash
19value equivalent to 100%. However, in determining the amount
20to be added to the aggregate assessment on property subject to
21local jurisdiction in order to produce a ratio of assessed
22value to 33 1/3% of the fair cash value equivalent to 100%, the
23board shall not, in any one year, increase or decrease the
24aggregate assessment of any assessment district by more than
2525% of the equalized valuation of the district for the
26previous year, except that additions, deletions or depletions



SB2544- 9 -LRB102 16264 HLH 21646 b

1to the taxable property shall be excluded in computing the 25%
2limitation. The board shall complete the equalization by the
3date prescribed in Section 16-35 for the board's adjournment,
4and, within 10 days thereafter, shall report the results of
5its work under this Section to the Department. At least 30 days
6prior to its adjournment, the board shall publish a notice
7declaring whether it intends to equalize assessments as
8provided in this Section. The notice shall be published in a
9newspaper of general circulation in the county. If the board
10fails to report to the Department within the required time, or
11if the report discloses that the board has failed to make a
12proper and adequate equalization of assessments, the
13Department shall direct, determine, and supervise the
14assessment so that all assessments of property are relatively
15just 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
19monitor the quality of local assessments by designing,
20preparing and using ratio studies, and shall use the results
21as the basis for equalization decisions. In compiling sales
22ratio studies, the Department shall exclude from the reported
23sales price of any property any amounts included for personal
24property and, for sales occurring through December 31, 1999,
25shall exclude seller paid points. The Department shall not



SB2544- 10 -LRB102 16264 HLH 21646 b

1include in its sales ratio studies sales of property which
2have been platted and for which an increase in the assessed
3valuation is restricted by Section 10-30. The Department shall
4not include in its sales ratio studies the initial sale of
5residential property that has been converted to condominium
6property. The Department shall include compulsory sales
7occurring on or after January 1, 2011 in its sales ratio
8studies. The Department shall also consider whether the
9compulsory sale would otherwise be considered an arm's length
10transaction, based on existing sales ratio study standards.
11    When the declaration required under the Real Estate
12Transfer Tax Law contains financing information required under
13Section 31-25, the Department shall adjust sales prices to
14exclude seller-paid points and shall adjust sales prices to
15"cash value" when seller related financing is used that is
16different than the prevailing cost of cash. The prevailing
17cost of cash for sales occurring on or after January 1, 1992
18shall be established as the monthly average 30-year fixed
19Primary Mortgage Market Survey rate for the North Central
20Region as published weekly by the Federal Home Loan Mortgage
21Corporation, as computed by the Department, or such other rate
22as determined by the Department. This rate shall be known as
23the survey rate. For sales occurring on or after January 1,
241992, through December 31, 1999, adjustments in the prevailing
25cost of cash shall be made only after the survey rate has been
26at or above 13% for 12 consecutive months and will continue



SB2544- 11 -LRB102 16264 HLH 21646 b

1until the survey rate has been below 13% for 12 consecutive
2months. For sales occurring on or after January 1, 2000,
3adjustments for seller paid points and adjustments in the
4prevailing cost of cash shall be made only after the survey
5rate has been at or above 13% for 12 consecutive months and
6will continue until the survey rate has been below 13% for 12
7consecutive months. The Department shall make public its
8adjustment 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
12document transferring a controlling interest in real property,
13or trust document is presented for recordation, or within 3
14business days after the transfer is effected, whichever is
15earlier, there shall also be presented to the recorder or
16registrar of titles a declaration, signed by at least one of
17the sellers and also signed by at least one of the buyers in
18the transaction or by the attorneys or agents for the sellers
19or buyers. The declaration shall state information including,
20but not limited to: (a) the value of the real property or
21beneficial interest in real property located in Illinois so
22transferred; (b) the parcel identifying number of the
23property; (c) the legal description of the property; (d) the
24date of the deed, the date the transfer was effected, or the
25date of the trust document; (e) the type of deed, transfer, or



SB2544- 12 -LRB102 16264 HLH 21646 b

1trust document; (f) the address of the property; (g) the type
2of improvement, if any, on the property; (h) information as to
3whether the transfer is between related individuals or
4corporate affiliates or is a compulsory transaction; (i) the
5lot size or acreage; (j) the value of personal property sold
6with the real estate; (k) the year the contract was initiated
7if an installment sale; (l) any homestead exemptions, as
8provided in Sections 15-170, 15-172, 15-175, and 15-176 as
9reflected on the most recent annual tax bill; and (m) the name,
10address, and telephone number of the person preparing the
11declaration; and (n) whether the transfer is pursuant to
12compulsory sale. Except as provided in Section 31-45, a deed,
13a document transferring a controlling interest in real
14property, or trust document shall not be accepted for
15recordation unless it is accompanied by a declaration
16containing all the information requested in the declaration.
17When the declaration is signed by an attorney or agent on
18behalf of sellers or buyers who have the power of direction to
19deal with the title to the real estate under a land trust
20agreement, the trustee being the mere repository of record
21legal title with a duty of conveying the real estate only when
22and if directed in writing by the beneficiary or beneficiaries
23having the power of direction, the attorneys or agents
24executing the declaration on behalf of the sellers or buyers
25need identify only the land trust that is the repository of
26record legal title and not the beneficiary or beneficiaries



SB2544- 13 -LRB102 16264 HLH 21646 b

1having the power of direction under the land trust agreement.
2The declaration form shall be prescribed by the Department and
3shall contain sales information questions. For sales occurring
4during a period in which the provisions of Section 17-10
5require the Department to adjust sale prices for seller paid
6points and prevailing cost of cash, the declaration form shall
7contain questions regarding the financing of the sale. The
8subject of the financing questions shall include any direct
9seller participation in the financing of the sale or
10information on financing that is unconventional so as to
11affect the fair cash value received by the seller. The intent
12of the sales and financing questions is to aid in the reduction
13in the number of buyers required to provide financing
14information necessary for the adjustment outlined in Section
1517-10. For sales occurring during a period in which the
16provisions of Section 17-10 require the Department to adjust
17sale prices for seller paid points and prevailing cost of
18cash, the declaration form shall include, at a minimum, the
19following data: (a) seller paid points, (b) the sales price,
20(c) type of financing (conventional, VA, FHA, seller-financed,
21or other), (d) down payment, (e) term, (f) interest rate, (g)
22type and description of interest rate (fixed, adjustable or
23renegotiable), and (h) an appropriate place for the inclusion
24of special facts or circumstances, if any. The Department
25shall provide an adequate supply of forms to each recorder and
26registrar of titles in the State.



SB2544- 14 -LRB102 16264 HLH 21646 b

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
5Sections 1-23 and 16-183.