(35 ILCS 200/10-180)
Developed coal shall be assessed at 33 1/3% of
the developed coal reserve economic value determined as follows:
Developed Coal Reserve Economic Value equals the present value of the
anticipated net income from the property during the life used to determine
the developed coal.
(a) The interest rate to be used for determining present value shall be
the arithmetic average prime interest rate quoted by the 4 largest United
States banks as measured by total assets located within the Chicago
metropolitan statistical area as defined by the United States Department of
Commerce as of the current assessment date and the 2 preceding assessment
dates, plus 3%.
(b) Net income means 4% of the average spot market price for
Illinois coal as published in a recognized publication prescribed by the
Department, as of the current assessment date and the 2 preceding assessment
dates, multiplied by the number of recoverable tons per acre.
(c) Recoverable coal tons per acre equals 1,742 tons per foot acre
multiplied by seam thickness, and then multiplied by the recovery ratio.
(d) Coal seam thickness means the average thickness of the coal seam or
seams where coal is initially extracted.
(e) Recovery ratio means the lesser of 80% for coal extracted
by surface mining methods and 50% for coal extracted by
underground mining methods or the actual historical recovery ratio for the
(f) The total assessed value of developed coal shall be attributed
equally to the coal acreage that is anticipated to be mined.
(g) Change in the per acre assessed value of coal shall not
exceed 10% in any one year except when a change of acreage classification
(Source: P.A. 85-1359; 88-455.)