093_HB2234sam001

 










                                     LRB093 07270 SJM 15760 a

 1                    AMENDMENT TO HOUSE BILL 2234

 2        AMENDMENT NO.     .  Amend House Bill 2234  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Property Tax Code is amended by changing
 5    Sections  16-170,  16-175,  16-180,  16-185, and 17-10 and by
 6    adding Sections 16-186 and 18-53 as follows:

 7        (35 ILCS 200/16-170)
 8        Sec. 16-170.  Hearings.
 9        (a)  A hearing shall be  granted  if  any  party  to  the
10    appeal  so  requests,  and,  upon  motion of any party to the
11    appeal or by direction of the Property Tax Appeal Board,  any
12    appeal  may  be set down for a hearing, with proper notice to
13    the interested  parties.  Notice  to  all  interested  taxing
14    bodies  shall  be deemed to have been given when delivered by
15    the board of review to served upon the  State's  Attorney  of
16    the  county from which the appeal has been taken, except that
17    in cases involving a requested change of  assessed  value  of
18    $300,000  or  more  on  non-farm  property  other  than  that
19    consisting  solely  of  6  or  fewer residential units notice
20    shall also be given as provided in Section 16-180.
21        (b)  Hearings may be held before less than a majority  of
22    the  members  of  the  Property  Tax  Appeal  Board,  and the
 
                            -2-      LRB093 07270 SJM 15760 a
 1    chairman may assign  members  or  hearing  officers  to  hold
 2    hearings.   Such  hearings  shall  be  open to the public and
 3    shall be conducted in accordance with the rules  of  practice
 4    and  procedure  promulgated  by  the  Board. In all cases the
 5    Board shall ensure that all parties are notified at least  60
 6    days in advance of any scheduled hearing date.
 7        (c)  In  all  cases the Property Tax Appeal The Board, on
 8    the Board's own motion or on motion of any party,  shall  any
 9    member  or  hearing officer may require the production of any
10    books,  records,  papers  or  other  documents   within   the
11    possession  or  control of any party that are may be material
12    or relevant as evidence in any pending matter.   The  Board's
13    rules,  and  any  order requiring the production of documents
14    pursuant thereto, shall provide a reasonable  opportunity  to
15    all parties to review the documents produced and to introduce
16    them  in  evidence  pending  before  it and necessary for the
17    making of a just decision.
18    (Source: P.A. 76-689; 88-455.)

19        (35 ILCS 200/16-175)
20        Sec. 16-175.  Case management and  discovery  procedures;
21    required  disclosure  of information in certain cases; expert
22    witnesses; subpoenas.
23        (a)  In cases involving a requested  change  of  assessed
24    value  of  $300,000  or  more on non-farm property other than
25    that consisting solely of 6 or fewer residential  units,  the
26    following procedures shall apply:
27             (1)  The  Property Tax Appeal Board shall schedule a
28        case management conference within 70 to 90 days after the
29        commencement of the appeal.  The conference shall include
30        the appellant, the taxpayer of record if other  than  the
31        appellant,  the  State's  Attorney,  and  any intervening
32        taxing bodies. The parties  shall  discuss  the  possible
33        settlement of the case. If a settlement cannot be reached
 
                            -3-      LRB093 07270 SJM 15760 a
 1        at   the   conference,  the  Board  shall  issue  a  case
 2        management order scheduling any necessary discovery,  any
 3        further  prehearing  conferences as may be necessary, and
 4        the hearing. The case management order shall provide  for
 5        the   exchange  among  the  parties  of  the  information
 6        concerning any expert and lay witnesses as enumerated  in
 7        Illinois  Supreme  Court  Rule  213,  subdivisions (f)(1)
 8        through (f)(3), if  such  an  exchange  has  not  already
 9        occurred.
10             (2)  Within  60 days after each party's first filing
11        in the case, the following information and documents,  if
12        any, within that party's possession and control, shall be
13        submitted  to  the  Property Tax Appeal Board and to each
14        opposing party:
15                  (A) Each  party  shall  submit  copies  of  any
16             appraisal   or   other  written  estimate  of  value
17             pertaining to the subject property that has  a  date
18             of  valuation  within the period of 2 years prior to
19             and through the  subject  tax  year.  The  board  of
20             review  need  not,  however,  submit  appraisals  or
21             estimates of value not commissioned by it, which are
22             in  its  file solely because of prior submissions by
23             the taxpayer.
24                  (B) The taxpayer shall submit any contracts and
25             closing  statements  relating  to  a   transfer   of
26             ownership  of the subject property within the period
27             of 2 years prior to  and  through  the  subject  tax
28             year.
29                  (C)   Each  party  shall  submit  an  affidavit
30             attesting   that   the   information   provided   in
31             compliance with this subdivision (a)(2) is  complete
32             to  the best of that party's knowledge, information,
33             and belief.
34             (3) Discovery, including issuance  of  subpoenas  on
 
                            -4-      LRB093 07270 SJM 15760 a
 1        the  Board's own motion or on request of any party, shall
 2        be allowed subject to the same rules as  are  applied  in
 3        the circuit courts of the State, as near as may be.
 4        (b) The following procedures shall apply in all cases:
 5             (1) The name of any independent or controlled expert
 6        witness,  as  defined in Illinois Supreme Court Rule 213,
 7        subsection (f), who  will  be  called  by  any  party  to
 8        testify at a hearing before the Property Tax Appeal Board
 9        and any reports or documents that will be used during the
10        witness'  testimony must be disclosed to the Board and to
11        each opposing party at least 30 days prior to the date of
12        hearing. The testimony of  any  witness  whose  identity,
13        report,  or documents have not been disclosed as required
14        by this subdivision (b)(1) shall be barred.
15             (2)  An  appraisal  or  valuation  report   may   be
16        presented    and    testified   to   by   any   qualified
17        representative of either a governmental office  on  whose
18        behalf  the report was prepared or an appraisal firm with
19        which the original author of the report  was  affiliated.
20        Any  such  representative  of  a  governmental  office or
21        appraisal firm shall, however, for all  purposes  related
22        to  his  or her testimony, accept the same responsibility
23        as the original author of the report for the opinions and
24        other matters contained in the report.
25        (c)  In all cases the Chairman of the Property Tax Appeal
26    Board or his or her designee may issue  subpoenas.  Subpoenas
27    which  shall  be  served by any person lawfully authorized to
28    serve a subpoena under the laws of the State of Illinois.  In
29    case of disobedience to a subpoena, the  Board  may  petition
30    any  circuit  court  of  the State for an order requiring the
31    attendance  and  testimony  of  witnesses  or  production  of
32    documents.  Witnesses  attending  any  hearing  held  by  the
33    Property Tax Appeal Board, pursuant to any subpoena, shall be
34    paid the same fees and mileage that are paid witnesses in the
 
                            -5-      LRB093 07270 SJM 15760 a
 1    circuit courts of the State.
 2    (Source: P.A. 83-1250; 88-455.)

 3        (35 ILCS 200/16-180)
 4        Sec. 16-180.  Procedure  for  review  and  correction  of
 5    assessments determination of correct assessment.
 6        (a)  The  Property  Tax  Appeal  Board shall establish by
 7    rules an expeditious informal procedure for the  review  and,
 8    if necessary, determination of the correction of the  correct
 9    assessment of property which is the subject of an appeal. The
10    rules  of  practice  and procedure of the Property Tax Appeal
11    Board shall differentiate cases involving a requested  change
12    of  assessed  value  of $300,000 or more on non-farm property
13    other than that consisting solely of 6 or  fewer  residential
14    units  from  cases involving other categories of property. In
15    cases involving only such other categories of  property,  the
16    Board shall provide a simplified The procedure, to the extent
17    that  the  Board  considers practicable, that shall eliminate
18    formal rules of pleading,  practice  and  evidence.   In  all
19    other  cases  the  rules  of  evidence and motion practice as
20    applied in the circuit courts of the State shall  be  applied
21    in  the procedure established by the Board. In all cases, and
22    except for any reasonable filing fee determined by the Board,
23    may provide that costs shall be  in  the  discretion  of  the
24    Board.
25        (b)  In  cases  subject to the simplified procedure under
26    subsection (a) of this Section, the Property Tax Appeal Board
27    rules may provide that each party's documentary  evidence  be
28    submitted  to  the  Board, which shall furnish copies of such
29    evidence to the other parties in advance of the  hearing.  In
30    cases  not  subject to the simplified procedure, the rules of
31    the Board shall provide that:
32             (1) documentary evidence shall be directly exchanged
33        among the parties with copies provided to the Board; and
 
                            -6-      LRB093 07270 SJM 15760 a
 1             (2) all petitions, motions, correspondence or  other
 2        papers  to  be  filed  with  the  Board subsequent to the
 3        original appellant's petition  shall  be  filed  together
 4        with  a certificate of counsel or other proof that copies
 5        thereof have been served directly upon all other  parties
 6        in the same manner as required in practice in the circuit
 7        courts of the State.
 8        (c)  A  copy  of the appellant's petition shall be mailed
 9    by the clerk of the Property Tax Appeal Board to the board of
10    review or board of appeals whose decision is being  appealed.
11    In all cases where a change in assessed valuation of $100,000
12    or  more  is  sought, the board of review or board of appeals
13    shall deliver a copy of the petition or notice thereof to the
14    State's Attorney of the county in which the board  of  review
15    sits  within  14  days after its receipt of the petition from
16    the  Board.  Except  in  cases  subject  to  the   simplified
17    procedure under subsection (a) of this Section, the appellant
18    shall  also  serve  notice of the appeal by mailing a copy of
19    the  petition  to  the  chief  business   official   of   any
20    municipality, school district, and community college district
21    in  which  the  subject  property  is  situated,  and  to the
22    taxpayer of record if the  taxpayer  is  not  the  appellant,
23    within 14 days after filing the petition. The appellant shall
24    file  a certificate of counsel or other proof of service with
25    the Board. Failure of a  municipality,  school  district,  or
26    community  college  district  to receive the notice shall not
27    invalidate a taxpayer's petition, but any appellant's failure
28    to mail notice and file a proof of  service  as  provided  in
29    this Section shall be grounds for dismissal of the petition.
30        (d)  Any  petition  to intervene in the appeal by a party
31    other than the taxpayer shall be filed no later than 45  days
32    after  appellant's  mailing of the notice under this Section,
33    or after the board of review's delivery of  the  petition  or
34    notice  thereof  to the State's Attorney, whichever is later.
 
                            -7-      LRB093 07270 SJM 15760 a
 1    The taxpayer may intervene, if necessary, at any  time  prior
 2    to  the  hearing.  serve a copy of the petition on all taxing
 3    districts as shown  on  the  last  available  tax  bill.  The
 4    chairman  of  the Property Tax Appeal Board shall provide for
 5    the speedy hearing of all such appeals.
 6        (e)  All appeals shall be considered de novo based solely
 7    upon the evidence, issues, and legal  argument  submitted  to
 8    the Property Tax Appeal Board, without regard to whether such
 9    evidence,   issues,   and   legal  argument  were  previously
10    submitted to the board of review. Where no complaint has been
11    made to the board of review of the county where the  property
12    is located and the appeal is based solely on the effect of an
13    equalizing  factor  assigned to all property or to a class of
14    property by the board of  review,  the  Property  Tax  Appeal
15    Board  shall not grant a reduction in assessment greater than
16    the amount that was added as the  result  of  the  equalizing
17    factor.
18    (Source: P.A. 88-455; 89-671, eff. 8-14-96.)

19        (35 ILCS 200/16-185)
20        Sec. 16-185.  Presumption and burden of proof; decisions.
21        (a)  The  assessment  resulting  from the decision of the
22    board of review shall be presumed to be  correct  and  legal,
23    but  the  presumption is rebuttable. When market value is the
24    subject of the appeal, the appellant shall have the burden of
25    proving any contested matter of fact by  a  preponderance  of
26    the evidence. When uniformity is the basis of the appeal, the
27    appellant  shall  have  the  burden  of proving any contested
28    matter of fact by clear and convincing evidence.  When market
29    value is the basis of the appeal,  the  Property  Tax  Appeal
30    Board  shall consider the appellant's valuation claim without
31    regard to the correctness  of  any  practice,  procedure,  or
32    method  of  valuation  followed  by  the assessor or board of
33    review in making or reviewing  the  assessment,  and  without
 
                            -8-      LRB093 07270 SJM 15760 a
 1    regard to the intent or motivation of any assessing official.
 2        (b)  The  Property Tax Appeal Board shall make a decision
 3    in each appeal or case appealed to it, and the decision shall
 4    be based upon equity and the weight of evidence and not  upon
 5    constructive  fraud,  and  the decision shall be binding upon
 6    appellant and officials  of  government.   The  extension  of
 7    taxes  on  any assessment so appealed shall not be delayed by
 8    any proceeding before the Board, and, in case the  assessment
 9    is  altered  by  the  Board,  any  taxes  extended  upon  the
10    unauthorized  assessment or part thereof shall be abated, or,
11    if already paid, shall be refunded with interest as  provided
12    in Section 23-20.
13        The decision or order of the Property Tax Appeal Board in
14    any  such  appeal,  shall,  within  10  days  thereafter,  be
15    certified  at  no  charge  to the appellant and to the proper
16    authorities, including  the  board  of  review  or  board  of
17    appeals  whose  decision  was  appealed, the county clerk who
18    extends taxes upon the assessment in question, and the county
19    collector who collects property taxes upon such assessment.
20        (c) If no complaint has been made to the board of  review
21    of the county where the property is located and the appeal is
22    based  solely  on the effect of an equalizing factor assigned
23    to all property or to a class of property  by  the  board  of
24    review,  the  Property  Tax  Appeal  Board  shall not grant a
25    reduction in assessment greater  than  the  amount  that  was
26    added as the result of the equalizing factor.
27        (d)  If  the Property Tax Appeal Board renders a decision
28    lowering the assessment of  a  particular  parcel  after  the
29    deadline  for  filing  complaints with the board of review or
30    board of appeals or after adjournment of the session  of  the
31    board  of review or board of appeals at which assessments for
32    the subsequent year are being considered, the  taxpayer  may,
33    within  30  days  after  the  date  of  written notice of the
34    Property Tax Appeal Board's decision, appeal  the  assessment
 
                            -9-      LRB093 07270 SJM 15760 a
 1    for  the  subsequent year directly to the Property Tax Appeal
 2    Board.
 3        (e)  If the Property Tax Appeal Board renders a  decision
 4    lowering  the  assessment  of  a particular parcel on which a
 5    residence occupied by the owner  is  situated,  such  reduced
 6    assessment,  subject  to equalization, shall remain in effect
 7    for  the  remainder  of  the  general  assessment  period  as
 8    provided in Sections 9-215 through 9-225, unless that  parcel
 9    is   subsequently   sold   in  an  arm's  length  transaction
10    establishing a  fair  cash  value  for  the  parcel  that  is
11    different  from  the  fair  cash  value  on which the Board's
12    assessment is based, or unless the decision of  the  Property
13    Tax Appeal Board is reversed or modified upon review.
14    (Source: P.A.  88-455;  88-660,  eff.  9-16-94;  89-671, eff.
15    8-14-96.)

16        (35 ILCS 200/16-186 new)
17        Sec. 16-186.  Limitation on assessment  level  claims  in
18    counties that classify.
19        (a)  Notwithstanding  any  other  provision of this Code,
20    except as otherwise provided  in  this  Section,  in  appeals
21    arising  in  counties  that classify property for purposes of
22    taxation pursuant to an ordinance adopted in accordance  with
23    Section  9-150,  the  Property Tax Appeal Board shall have no
24    jurisdiction to consider whether a level of assessment  other
25    than  the level specified in the classifying ordinance should
26    apply to the property which is the  subject  of  the  appeal.
27    Such  issues  shall  not  be  considered  by the Property Tax
28    Appeal Board in its  review  and  correction  of  assessments
29    under Sections 16-180 and 16-185 and related Sections.
30        (b)  The  limitation  provided  in this Section shall not
31    apply in cases where the only subject  of  the  appeal  is  a
32    property  assessed  within  any  classification that includes
33    single family  residences  under  the  ordinance  adopted  in
 
                            -10-     LRB093 07270 SJM 15760 a
 1    accordance  with  Section 9-150.  Nothing in this subsection,
 2    however, shall be construed to accord presumptive validity to
 3    Department   ratio   studies   of   property    within    any
 4    classification  that  includes  single  family residences nor
 5    shall  this  subsection  be  construed  as  prohibiting   the
 6    introduction  of  evidence or argument by any party disputing
 7    the methodology or conclusions of these studies.

 8        (35 ILCS 200/17-10)
 9        Sec. 17-10.  Sales ratio studies.
10        (a) The Department shall monitor  the  quality  of  local
11    assessments  by designing, preparing and using ratio studies,
12    and shall use the  results  as  the  basis  for  equalization
13    decisions.   In compiling sales ratio studies, the Department
14    shall exclude from the reported sales price of  any  property
15    any  amounts  included  for  personal property and, for sales
16    occurring through December 31,  1999,  shall  exclude  seller
17    paid  points.   The Department shall not include in its sales
18    ratio studies sales of property which have been  platted  and
19    for which an increase in the assessed valuation is restricted
20    by  Section  10-30.  The  Department shall not include in its
21    sales ratio studies the initial sale of residential  property
22    that has been converted to condominium property.
23        When  the  declaration  required  under  the  Real Estate
24    Transfer Tax  Law  contains  financing  information  required
25    under Section 31-25, the Department shall adjust sales prices
26    to  exclude  seller-paid points and shall adjust sales prices
27    to "cash value" when seller related financing is used that is
28    different than the prevailing cost of  cash.  The  prevailing
29    cost  of cash for sales occurring on or after January 1, 1992
30    shall be established as the  monthly  average  30-year  fixed
31    Primary  Mortgage  Market  Survey  rate for the North Central
32    Region as published weekly by the Federal Home Loan  Mortgage
33    Corporation,  as  computed  by  the Department, or such other
 
                            -11-     LRB093 07270 SJM 15760 a
 1    rate as determined by the Department.   This  rate  shall  be
 2    known  as  the  survey  rate. For sales occurring on or after
 3    January 1, 1992, through December 31,  1999,  adjustments  in
 4    the  prevailing  cost  of  cash  shall be made only after the
 5    survey rate has been at  or  above  13%  for  12  consecutive
 6    months and will continue until the survey rate has been below
 7    13%  for  12  consecutive  months.  For sales occurring on or
 8    after January 1, 2000, adjustments for seller paid points and
 9    adjustments in the prevailing cost of cash shall be made only
10    after the survey rate  has  been  at  or  above  13%  for  12
11    consecutive  months  and  will continue until the survey rate
12    has been below 13% for 12 consecutive months. The  Department
13    shall make public its adjustment procedure upon request.
14        (b)  The  General Assembly finds and declares that it has
15    been and is the policy of this State that  ratio  studies  by
16    the  Department pursuant to this Section and related Sections
17    are  designed  and  conducted  for  purposes  of  the   State
18    equalization process as set forth in Article 17 of this Code.
19    Notwithstanding  any  other provision of this Code, except as
20    otherwise  provided  in  this  Section,  no   ratio   studies
21    conducted  pursuant  to  any  provision  of  this Code by the
22    Department shall be admitted in evidence in assessment appeal
23    proceedings before boards  of  review  or  the  Property  Tax
24    Appeal  Board  under  Article 16 of this Code. The studies by
25    the Department, and any conclusions based on  those  studies,
26    shall  not  be  considered  by  the Property Tax Appeal Board
27    under Sections 16-180 and 16-185 and related Sections  or  by
28    boards  of  review  under  Sections 16-20, 16-95, and related
29    Sections.
30        (c) Nothing in subsection (b) of this  Section  prohibits
31    boards  of  review  or  the  Property  Tax  Appeal Board from
32    complying  with  the  requirement  of  Section  9-145,  where
33    applicable, that property in designated counties be valued at
34    "33-1/3%" of its "fair cash value" as defined in this Code.
 
                            -12-     LRB093 07270 SJM 15760 a
 1        (d) In cases arising in counties that  classify  property
 2    for  purposes of taxation pursuant to an ordinance adopted in
 3    accordance with Section 9-150,  the  limitation  provided  in
 4    subsection (b) of this Section shall not apply where the only
 5    subject  of  the  appeal  is  a  property assessed within any
 6    classification that includes single family  residences  under
 7    the  ordinance  adopted  in  accordance  with  Section 9-150.
 8    Nothing in this subsection, however, shall  be  construed  to
 9    accord presumptive validity to Department studies of property
10    within   any   classification  that  includes  single  family
11    residences  nor  shall  this  subsection  be   construed   as
12    prohibiting  the  introduction of evidence or argument by any
13    party disputing  the  methodology  or  conclusions  of  those
14    studies.
15    (Source: P.A. 91-555, eff. 1-1-00.)

16        (35 ILCS 200/18-53 new)
17        Sec. 18-53.  Recovery of revenue lost due to tax refunds.
18        (a)  When  a  taxing  district  is  required  to refund a
19    portion of the  property  tax  revenue  distributed  to  that
20    taxing  district  because  of  a decision of the Property Tax
21    Appeal Board, an assessment  or  exemption  decision  of  the
22    Department  of  Revenue,  a court order issued pursuant to an
23    assessment valuation complaint under  subdivision  (b)(3)  of
24    Section  23-15,  or  an  administrative  decision  of a local
25    assessing official reducing the assessed value of a  property
26    within  the  district,  that  taxing  district  may,  without
27    referendum, adopt a levy to recapture the revenue lost by the
28    refund  or  refunds.  The  recapture  levy must not exceed an
29    amount equal to the aggregate refunds paid  by  the  district
30    for  the prior fiscal year. Within 45 days after a request by
31    a taxing district, the  county  treasurer  must  certify  the
32    aggregate  refunds  paid by a taxing district for purposes of
33    this Section. For purposes  of  the  Property  Tax  Extension
 
                            -13-     LRB093 07270 SJM 15760 a
 1    Limitation  Law,  the  taxing  district's aggregate extension
 2    base shall not include the recapture  levy  authorized  under
 3    this Section.
 4        (b)  Whenever  the  county  treasurer certifies aggregate
 5    refunds at the  request  of  a  taxing  district  under  this
 6    Section,  the  treasurer shall keep records of the individual
 7    refunds included in the aggregate. All such information shall
 8    be provided to the county clerk. The county clerk shall  keep
 9    a  record  of such information and of any recapture levy that
10    may thereafter be  extended,  so  that  the  amount  of  such
11    extension  may  be  distinguished  from  any other levies and
12    extensions for that district. The county treasurer's and  the
13    county  clerk's records under this Section shall be available
14    to the public upon request.
15        (c) Any taxpayer who has received a refund of taxes  paid
16    on  his  or her property, which refund has been included in a
17    recapture levy by a particular  taxing  district  under  this
18    Section,  shall  have the right to have the extension of such
19    district's levy against his or her  property  abated  to  the
20    extent  such  extension  exceeds $500. The abatement shall be
21    granted only upon application as provided  in  this  Section.
22    For  purposes  of  this Section, the "property" for which the
23    recapture extension may be abated is defined as one  or  more
24    parcels  which  were the subject of a consolidated refund. If
25    the taxing district's recapture levy and extension  was  made
26    in  a  lesser  amount  than  the  aggregate  of  all  refunds
27    certified  by the treasurer for that district, each abatement
28    shall reflect that same proportionate reduction.
29        (d) A taxpayer seeking an abatement  under  this  Section
30    shall  apply  to  the  county treasurer no later than the due
31    date  under  Section  23-10  for  tax  objection   complaints
32    regarding tax levies of the year for which the recapture levy
33    was  extended. The county treasurer may prescribe the form in
34    which the application shall be made.  The  application  shall
 
                            -14-     LRB093 07270 SJM 15760 a
 1    include a copy of the decision or order that gave rise to the
 2    refund   and   shall   specify  the  abatement  claimed.  The
 3    treasurer, assisted if necessary by the county  clerk,  shall
 4    confirm  whether the refund identified in the application was
 5    included within the appropriate treasurer's certification  of
 6    aggregate  refunds,  and upon such confirmation the abatement
 7    shall be allowed as provided in this Section.  If  the  taxes
 8    abated  have  been  paid  they  shall  be  refunded.  If  the
 9    treasurer  cannot determine whether the application should be
10    allowed, or otherwise denies the  application,  any  taxpayer
11    who  has  paid  the  tax subject to the claimed abatement may
12    petition the circuit court for  a  refund  in  the  time  and
13    manner   provided  in  Section  20-175.  Any  refund  granted
14    pursuant to an abatement shall not be included in a recapture
15    levy under this Section.
16        (e) The county treasurer  and  county  clerk  shall  mark
17    their records to reflect any abatement under this Section.

18        Section  99.  Effective date.  This Act takes effect upon
19    becoming law.".