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91_HB1778sam001
LRB9103278PTpkam01
1 AMENDMENT TO HOUSE BILL 1778
2 AMENDMENT NO. . Amend House Bill 1778 by replacing
3 the title with the following:
4 "AN ACT to amend the Property Tax Code."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Property Tax Code is amended by changing
8 Sections 17-5, 17-10, 17-15, 17-20, 17-25, 17-30, 17-35,
9 31-10, 31-15, 31-25, 31-30, 31-35, 31-45, 31-50, 31-60, and
10 31-70 and adding Section 31-47 as follows:
11 (35 ILCS 200/17-5)
12 Sec. 17-5. Equalization among counties. The Department
13 shall act as an equalizing authority. It shall examine the
14 abstracts of property assessed for taxation in the counties
15 and in the assessment districts in counties having assessment
16 districts, as returned by the county clerks, and shall
17 equalize the assessments between counties as provided in this
18 Code. Except as hereinafter provided, the Department shall
19 lower or raise the total assessed value of property in each
20 any county as returned by the county clerk, other than
21 property assessed under Sections 10-110 through 10-140 and
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1 10-170 through 10-200, so that the property will be assessed
2 at 33 1/3% of its fair cash value.
3 The Department shall annually determine the percentage
4 relationship, for each county of the State, between the
5 valuations at which locally-assessed property, other than
6 property assessed under the Sections 10-110 through 10-140
7 and 10-170 through 10-200, as is listed by assessors and
8 revised by boards of review or boards of appeal, and the
9 estimated 33 1/3% of the fair cash value of the property. To
10 make this analysis, the Department shall use property
11 transfers, property appraisals, and other means as it deems
12 proper and reasonable.
13 With the ratio determined for each county, the
14 Department shall then determine the percentage to be added to
15 or deducted from the aggregate reviewed assessment on
16 property subject to local assessment jurisdiction, other than
17 property assessed under the Sections cited above, to produce
18 a ratio of assessed value to 33 1/3% of the fair cash value
19 equivalent to 100%.
20 If the Department determines that there are substantial
21 differences in the level of assessment among different
22 townships in the same county, it shall, upon the request of
23 the county executive or, in counties not having an elected
24 county executive, of the county board under a resolution
25 adopted by the board, apply separate township equalization
26 factors determined by the Department, in lieu of a single
27 equalization factor for the entire county, but this provision
28 does not apply within any county which elects a county
29 assessor under Sections 3-45 or 3-50.
30 (Source: P.A. 84-1343; 88-455.)
31 (35 ILCS 200/17-10)
32 Sec. 17-10. Sales ratio studies. The Department shall
33 monitor the quality of local assessments by designing,
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1 preparing and using ratio studies, and shall use the results
2 as the basis for equalization decisions. In compiling sales
3 ratio studies, the Department shall exclude from the reported
4 sales price of any property any amounts included for personal
5 property and, for sales occurring through December 31, 1999,
6 shall exclude seller paid points. The Department shall not
7 include in its sales ratio studies sales of property which
8 have been platted and for which an increase in the assessed
9 valuation is restricted by Section 10-30. The Department
10 shall not include in its sales ratio studies the initial sale
11 of residential property that has been converted to
12 condominium property.
13 When the declaration required under the Real Estate
14 Transfer Tax Law contains financing information required
15 under Section 31-25, the Department shall adjust sales prices
16 to exclude seller-paid points and shall adjust sales prices
17 to "cash value" when seller related financing is used that is
18 different than the prevailing cost of cash. The prevailing
19 cost of cash for sales occurring on or after January 1, 1992
20 shall be established as the monthly average 30-year fixed
21 Primary Mortgage Market Survey rate for the North Central
22 Region as published weekly by the Federal Home Loan Mortgage
23 Corporation, as computed by the Department, or such other
24 rate as determined by the Department. This rate shall be
25 known as the survey rate. For sales occurring on or after
26 January 1, 1992, through December 31, 1999, adjustments in
27 the prevailing cost of cash shall be made only after the
28 survey rate has been at or above 13% for 12 consecutive
29 months and will continue until the survey rate has been below
30 13% for 12 consecutive months. For sales occurring on or
31 after January 1, 2000, adjustments for seller paid points and
32 adjustments in the prevailing cost of cash shall be made only
33 after the survey rate has been at or above 13% for 12
34 consecutive months and will continue until the survey rate
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1 has been below 13% for 12 consecutive months. The Department
2 shall not include in its sales ratio studies the initial sale
3 of residential property that has been converted to
4 condominium property. The Department shall make public its
5 adjustment procedure upon request.
6 (Source: P.A. 86-1481; 87-877; 88-455.)
7 (35 ILCS 200/17-15)
8 Sec. 17-15. Tentative equalization factor. The
9 Department shall forward to the County Clerk of each county
10 in each year its estimate of the percentage, established
11 under Section 17-5, to be added to or deducted from the
12 aggregate of the locally assessed property in that county,
13 other than property assessed under Sections 10-110 through
14 10-140 and 10-170 through 10-200. The percentage relationship
15 to be certified to each county or to the several townships
16 therein by the Department as provided by Section 17-25 shall
17 be determined by the ratio between the percentage estimate so
18 made and forwarded, as provided by this Section, and the
19 level of assessments of the assessed valuations as made by
20 the assessors and thereafter finally revised by the board of
21 review or board of appeals of that county. Such estimate
22 shall be forwarded by the Department to the County Clerk of
23 any County within 15 days after the chief county assessment
24 officer files with the Department an abstract of the
25 assessments of the locally assessed property in the county,
26 as finally revised. The abstract shall be in substantially
27 the same form as required of the County Clerk by Sections
28 9-250 and 9-255 after completion of the revisions thereafter
29 to be made by the board of review or board of appeals of the
30 county, except that the abstract shall specify separately the
31 amount of omitted property, and the amount of improvements
32 upon property assessed for the first time in that year. The
33 chief county assessment officer shall forward the abstract to
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1 the Department within 30 days after returning the county
2 assessment books to the county board of review or board of
3 appeals.
4 (Source: P.A. 86-905; 88-455.)
5 (35 ILCS 200/17-20)
6 Sec. 17-20. Hearing on tentative equalization factor.
7 The Department shall, after publishing its tentative
8 equalization factor and giving notice of hearing to the
9 public in a newspaper of general circulation in the county,
10 hold a hearing on its estimate not less than 10 days nor more
11 than 30 days from the date of the publication. The notice
12 shall state the date and time of the hearing, which shall be
13 held in either Chicago or Springfield, the basis for the
14 estimate of the Department, and further information as the
15 Department may prescribe. The Department shall, after giving
16 a hearing to all interested parties and opportunity for
17 submitting testimony and evidence in support of or adverse to
18 the estimate as the Department considers requisite, either
19 confirm or revise the estimate so as to correctly represent
20 the considered judgment of the Department respecting the
21 estimated percentage to be added to or deducted from the
22 aggregate assessment of all locally assessed property in the
23 county except property assessed under Sections 10-110 through
24 10-140 or 10-170 through 10-200. Within 30 days after the
25 conclusion of the hearing the Department shall mail to the
26 County Clerk, by certified mail, its determination with
27 respect to such estimated percentage to be added to or
28 deducted from the aggregate assessment. The amendment made
29 by P.A. 77-714 does not apply in any county which elects a
30 county assessor under Sections 3-45 or 3-50.
31 (Source: P.A. 86-905; 88-455.)
32 (35 ILCS 200/17-25)
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1 Sec. 17-25. Application of final equalization factor.
2 The assessments of all property, other than property assessed
3 under Sections 10-110 through 10-140 and 10-170 through
4 10-200, as returned by the county clerks, shall be equalized
5 by adding to the aggregate assessed value thereof in every
6 county in which the Department finds the valuation to be less
7 than 33 1/3% of the fair cash value of the property, the rate
8 per cent which will raise the aggregate assessed valuation to
9 33 1/3% of fair cash value, and by deducting from the
10 aggregate assessed value thereof, in every county or township
11 or township in which the aggregate assessed value
18 of property other than that assessed under the Sections cited
19 above, is more than 99% and less than 101% of 33 1/3% of fair
20 cash value. The amendment made by P.A. 77-714 does not apply
21 within the jurisdiction of any county which elects a county
22 assessor under Sections 3-45 or 3-50.
23 (Source: P.A. 84-1343; 88-455.)
24 (35 ILCS 200/17-30)
25 Sec. 17-30. Certification of final equalization factor.
26 When the Department has completed its equalization of
27 assessments in each year, it shall certify to each the
28 several county clerk clerks the percentage finally determined
29 by it to be added to or deducted from the listed or assessed
30 valuation of property in the county several counties or
31 townships as returned by the county clerk.
32 (Source: P.A. 78-255; 88-455.)
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1 (35 ILCS 200/17-35)
2 Sec. 17-35. Certification of assessments. The Department
3 shall certify to the county clerks of the proper counties the
4 assessments made by it on certified pollution control
5 facilities, low sulfur dioxide emission coal fueled devices
6 and on property owned or used by railroad companies operating
7 within this State, along with the distribution of those
8 railroad assessments among the respective taxing districts
9 within the counties. The county clerks shall extend the taxes
10 for all purposes on the amounts so certified, in the same
11 manner as taxes are extended against other property in the
12 taxing districts in which the pollution control facilities,
13 low sulfur dioxide emission coal fueled devices and railroad
14 property are allocated or distributed.
15 The amendment made by P.A. 77-714 does not apply within
16 the jurisdiction of any county which elects a county assessor
17 under Sections 3-45 or 3-50.
18 (Source: P.A. 78-255; 88-455.)
19 (35 ILCS 200/31-10)
20 Sec. 31-10. Imposition of tax. A tax is imposed on the
21 privilege of transferring title to real estate, as
22 represented by the deed that is filed for recordation, and on
23 the privilege of transferring a beneficial interest in real
24 property that is the subject of a land trust as represented
25 by the trust document that is filed for recordation, at the
26 rate of 50¢ for each $500 of value or fraction of $500 stated
27 in the declaration required by Section 31-25. If, however,
28 the deed or trust document states that the real estate is
29 transferred subject to a mortgage the amount of the mortgage
30 remaining outstanding at the time of transfer shall not be
31 included in the basis of computing the tax.
32 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
33 88-455.)
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1 (35 ILCS 200/31-15)
2 Sec. 31-15. Collection of tax. The tax shall be
3 collected by the recorder or registrar of titles of the
4 county in which the property is situated several counties
5 through the sale of revenue stamps, the design, denominations
6 and form of which shall be prescribed by the Department. If
7 requested by the recorder or registrar of titles of a county
8 that has imposed a county real estate transfer tax under
9 Section 5-1031 of the Counties Code, the Department shall
10 design the stamps furnished to that county under this Section
11 so that the same stamp also provides evidence of the payment
12 of the county real estate transfer tax and shall include in
13 the design of the stamp the name of the county and an
14 indication that the stamp is evidence of the payment of both
15 State and county real estate transfer taxes. The revenue
16 stamps shall be sold by the Department to the recorder or
17 registrar of titles who shall cause them to be sold for the
18 purposes prescribed. The Department shall charge at a rate of
19 50¢ per $500 of value in units of not less than $500. The
20 recorder or registrar of titles of the several counties shall
21 sell the revenue stamps at a rate of 50¢ per $500 of value or
22 fraction of $500. The recorder or registrar of titles may use
23 the proceeds for the purchase of revenue stamps from the
24 Department.
25 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
26 88-455.)
27 (35 ILCS 200/31-25)
28 Sec. 31-25. Transfer declaration. At the time a deed or
29 trust document is presented for recordation, there shall also
30 be presented to the recorder or registrar of titles a
31 declaration, signed by at least one of the sellers and also
32 signed by at least one of the buyers in the transaction or by
33 the attorneys or agents for the sellers or buyers. The
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1 declaration shall state information including, but not
2 limited to: (a) the full consideration for the property so
3 transferred; (b) the parcel identifying permanent real estate
4 index number of the property, if any; (c) the legal
5 description of the property; (d) the date of the deed or
6 trust document; (e) the type of deed or trust document; (f)
7 the address of the property; (g) the type of improvement, if
8 any, on the property conveyed; (h) information as to whether
9 the transfer is between related individuals or corporate
10 affiliates relatives or is a compulsory transaction; (i) that
11 the parties are advised that the State of Illinois has
12 enacted the Smoke Detector Act; and (j) the lot size or
13 acreage; (j) the value of personal property sold with the
14 real estate; (k) the year the contract was initiated if an
15 installment sale; and (l) the name, address, and telephone
16 number of the person preparing the declaration. Except as
17 provided in Section 31-45, a deed or trust document shall not
18 be accepted for recordation unless it is accompanied by a
19 declaration containing all the information requested in the
20 declaration. When the declaration is signed by an attorney
21 or agent on behalf of sellers or buyers who have the power of
22 direction to deal with the title to the real estate under a
23 land trust agreement, the trustee being the mere repository
24 of record legal title with a duty of conveying the real
25 estate only when and if directed in writing by the
26 beneficiary or beneficiaries having the power of direction,
27 the attorneys or agents executing the declaration on behalf
28 of the sellers or buyers need identify only the land trust
29 that is the repository of record legal title and not the
30 beneficiary or beneficiaries having the power of direction
31 under the land trust agreement. The declaration form shall be
32 prescribed by the Department and shall contain sales
33 information questions. For sales occurring during a period in
34 which the provisions of Section 17-10 require the Department
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1 to adjust sale prices for seller paid points and prevailing
2 cost of cash The subject of the sales information questions
3 shall include, but not be limited to, information on
4 compulsory transactions, sales between relatives and related
5 corporations, contractual sales, and deed or trust document
6 types. In addition, the declaration form shall contain
7 questions regarding the financing of the sale. The subject
8 of the financing questions shall include any direct seller
9 participation in the financing of the sale or information on
10 financing that is unconventional so as to affect the fair
11 cash value received by the seller. The intent of the sales
12 and financing questions is to aid in the reduction in the
13 number of buyers required to provide financing information
14 necessary for the adjustment outlined in Section 17-10. For
15 sales occurring during a period in which the provisions of
16 Section 17-10 require the Department to adjust sale prices
17 for seller paid points and prevailing cost of cash, the
18 declaration form shall include, at a minimum, an appropriate
19 place for the inclusion of special facts or circumstances, if
20 any, and shall include the following data: (a) seller paid
21 points, value of personal property sold with the real estate,
22 sales finance charges (points) paid by the seller, (c)
23 the sales price, (c) (d) type of financing (conventional, VA,
24 FHA, seller-financed, or other), (d) (e) down payment, (e)
25 (f) term, (f) (g) interest rate, (g) (h) type and description
26 of interest rate (fixed, adjustable or renegotiable), and (h)
27 an appropriate place for the inclusion of special facts or
28 circumstances, if any. (i) the year the contract was
29 initiated if a contractual sale, and (j) the name, address
30 and telephone number of the person filling out the real
31 estate transfer declaration. In counties of 3,000,000 or more
32 inhabitants, the declaration shall also contain a sworn or
33 affirmed statement executed by the grantor or the grantor's
34 agent stating that, to the best of his or her knowledge, the
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1 name of the grantee shown on the deed or assignment of
2 beneficial interest in a land trust is either a natural
3 person, an Illinois corporation or foreign corporation
4 authorized to do business or acquire and hold title to real
5 estate in Illinois, a partnership authorized to do business
6 or acquire and hold title to real estate in Illinois, or
7 other entity recognized as a person and authorized to do
8 business or acquire and hold title to real estate under the
9 laws of Illinois. In counties of 3,000,000 or more
10 inhabitants, the declaration shall also contain a sworn or
11 affirmed statement executed by the grantee or the grantee's
12 agent verifying that the name of the grantee shown on the
13 deed or assignment of beneficial interest in a land trust is
14 either a natural person, an Illinois corporation or foreign
15 corporation authorized to do business or acquire and hold
16 title to real estate in Illinois, a partnership authorized to
17 do business or acquire and hold title to real estate in
18 Illinois, or other entity recognized as a person and
19 authorized to do business or acquire and hold title to real
20 estate under the laws of Illinois. The Department shall
21 provide an adequate supply of forms to each recorder and
22 registrar of titles in the State.
23 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
24 88-455.)
25 (35 ILCS 200/31-30)
26 Sec. 31-30. Use of transfer declaration. The recorder
27 or registrar of titles shall not record the declaration, but
28 shall insert on the declaration and all attachments the
29 Document Number assigned to the deed or trust document, and
30 shall within 30 days of receipt then transmit the declaration
31 to the chief county assessment officer. The chief county
32 assessment officer shall insert on the declaration the most
33 recent assessed value for each parcel of the transferred
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1 property and other information required by the Department,
2 and, within 30 days of receipt or within 30 days of the
3 adjournment of the board of review for the previous
4 assessment year, whichever is later at least once during
5 every month, shall transmit all the declarations to the
6 Department. The chief county assessment officer may also copy
7 and retain any information relating to the property
8 transferred to assist in determining the proper assessed
9 valuation of the property transferred and other properties in
10 his county.
11 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
12 88-455.)
13 (35 ILCS 200/31-35)
14 Sec. 31-35. Deposit of tax revenue. Beginning July 1,
15 1993 through June 30, 1994, 50% of the monies collected under
16 Section 31-15 shall be deposited into the Illinois Affordable
17 Housing Trust Fund, 10% into the General Revenue Fund, 28%
18 into the Open Space Lands Acquisition and Development Fund
19 and 12% into the Natural Areas Acquisition Fund. Beginning
20 July 1, 1994, 50% of the monies collected under Section 31-15
21 shall be deposited into the Illinois Affordable Housing Trust
22 Fund, 35% into the Open Space Lands Acquisition and
23 Development Fund and 15% into the Natural Areas Acquisition
24 Fund.
25 (Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543;
26 88-455.)
27 (35 ILCS 200/31-45)
28 Sec. 31-45. Exemptions. The following deeds or trust
29 documents shall be exempt from the provisions of this Article
30 except as provided in this Section:
31 (a) Deeds representing real estate transfers made before
32 January 1, 1968, but recorded after that date and trust
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1 documents executed before January 1, 1986, but recorded after
2 that date.
3 (b) Deeds to or trust documents relating to (1) property
4 acquired by any governmental body or from any governmental
5 body, (2) property or interests transferred between
6 governmental bodies, or (3) property acquired by or from any
7 corporation, society, association, foundation or institution
8 organized and operated exclusively for charitable, religious
9 or educational purposes. However, deeds or trust documents,
10 other than those in which the Administrator of Veterans'
11 Affairs of the United States is the grantee pursuant to a
12 foreclosure proceeding, shall not be exempt from filing the
13 declaration.
14 (c) Deeds or trust documents that secure debt or other
15 obligation.
16 (d) Deeds or trust documents that, without additional
17 consideration, confirm, correct, modify, or supplement a deed
18 or trust document previously recorded.
19 (e) Deeds or trust documents where the actual
20 consideration is less than $100.
21 (f) Tax deeds.
22 (g) Deeds or trust documents that release property that
23 is security for a debt or other obligation.
24 (h) Deeds of partition.
25 (i) Deeds or trust documents made pursuant to mergers,
26 consolidations or transfers or sales of substantially all of
27 the assets of corporations under plans of reorganization
28 under the Federal Internal Revenue Code or Title 11 of the
29 Federal Bankruptcy Act.
30 (j) Deeds or trust documents made by a subsidiary
31 corporation to its parent corporation for no consideration
32 other than the cancellation or surrender of the subsidiary's
33 stock.
34 (k) Deeds when there is an actual exchange of real
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1 estate and trust documents when there is an actual exchange
2 of beneficial interests, except that that money difference or
3 money's worth paid from one to the other is not exempt from
4 the tax. These deeds or trust documents, however, shall not
5 be exempt from filing the declaration.
6 (l) Deeds issued to a holder of a mortgage, as defined
7 in Section 15-103 of the Code of Civil Procedure, pursuant to
8 a mortgage foreclosure proceeding or pursuant to a transfer
9 in lieu of foreclosure.
10 (m) A deed or trust document related to the purchase of
11 a principal residence by a participant in the program
12 authorized by the Home Ownership Made Easy Act, except that
13 those deeds and trust documents shall not be exempt from
14 filing the declaration.
15 (Source: P.A. 87-1206; 88-455.)
16 (35 ILCS 200/31-47 new)
17 Sec. 31-47. Verification. In all counties, each
18 transfer declaration filed under this Law shall include a
19 written statement by both the grantor or grantor's agent and
20 the grantee or grantee's agent that the information contained
21 in the declaration is true and correct to the best of his or
22 her knowledge and belief. In counties of 3,000,000 or more
23 inhabitants, the declaration shall also contain a written
24 statement executed by the grantor or the grantor's agent
25 verifying that, to the best of his or her knowledge, the name
26 of the grantee shown on the deed or assignment of beneficial
27 interest in a land trust is either a natural person, an
28 Illinois corporation or foreign corporation authorized to do
29 business or acquire and hold title to real estate in
30 Illinois, a partnership authorized to do business or acquire
31 and hold title to real estate in Illinois, or other entity
32 recognized as a person and authorized to do business or
33 acquire and hold title to real estate under the laws of
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1 Illinois. In counties of 3,000,000 or more inhabitants, the
2 declaration shall also contain a written statement executed
3 by the grantee or the grantee's agent verifying that the name
4 of the grantee shown on the deed or assignment of beneficial
5 interest in a land trust is either a natural person, an
6 Illinois corporation or foreign corporation authorized to do
7 business or acquire and hold title to real estate in
8 Illinois, a partnership authorized to do business or acquire
9 and hold title to real estate in Illinois, or other entity
10 recognized as a person and authorized to do business or
11 acquire and hold title to real estate under the laws of
12 Illinois.
13 (35 ILCS 200/31-50)
14 Sec. 31-50. Penalties. Any person, including any person
15 preparing the declaration, who willfully falsifies the value
16 of transferred real estate on the transfer declaration
17 required by Section 31-25 or who willfully falsifies or
18 willfully omits any other information required by Section
19 31-25 or who willfully and falsely claims a transaction to be
20 exempt under Section 31-45 is guilty of a Class B
21 misdemeanor. Any person who knowingly submits a false
22 statement concerning the identity of a grantee under the
23 provisions of this Article is guilty of a Class C
24 misdemeanor. A second or subsequent conviction of an offense
25 is a Class A misdemeanor. A prosecution for any act in
26 violation of this Article may be commenced at any time within
27 5 years 3 years of the commission of the act. Only the buyer
28 or the buyer's representative shall attest to the accuracy of
29 the financing information reported on the declaration and
30 required by Section 31-25. Any person convicted of any
31 offense under this Law is liable for the tax due in addition
32 to any fines imposed by the court.
33 (Source: P.A. 84-1308; 88-455.)
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1 (35 ILCS 200/31-60)
2 Sec. 31-60. Check for violations. The Department shall
3 conduct spot checks or investigations of declarations
4 required to be filed by this Article and may shall forward
5 information of violations to the State's Attorney of the
6 county where the violations occur for prosecution and
7 collection of taxes.
8 (Source: P.A. 81-936; 88-455.)
9 (35 ILCS 200/31-70)
10 Sec. 31-70. Rules. The Department may prescribe
11 reasonable rules for the administration of this Article,
12 including rules permitting a transfer declaration in a
13 prescribed electronic form and permitting the electronic
14 transmission of the transfer declaration using a prescribed
15 method and format.
16 (Source: Laws 1967, p. 1716; P.A. 88-455.)
17 Section 99. Effective date. This Act takes effect on
18 January 1, 2000.".