Bill Text: IL SB2219 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Election Code. Provides that it is unlawful for any individual who is engaged in the business of providing legal representation in real estate tax assessment appeals to make campaign contributions of more than $750, in the aggregate, to any political committee established to promote the candidacy of a candidate for township or multi-township assessor, county assessor, county supervisor of assessments, or member of the board of review in any jurisdiction where that individual provides such legal representation. Provides that it is unlawful for any candidate, political committee, or other person to knowingly accept or receive such a contribution. Amends the Property Tax Code. Requires assessment officials to transmit to the chief county assessment officer valuation models for the assessor's jurisdiction, and requires the chief county assessment officer to post that information on his or her Internet website. Makes changes to the definition of "fair cash value". Makes changes concerning sales ratio studies. Requires the Department of Revenue to conduct audits of assessment practices. Provides that, if the county or township is deemed to be persistently non-compliant with the audit, then the assessment official shall be removed from office, and the vacancy shall be filled by the county board.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2017-06-23 - Added as Chief Co-Sponsor Sen. Bill Cunningham [SB2219 Detail]

Download: Illinois-2017-SB2219-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2219

Introduced 6/23/2017, by Sen. Daniel Biss - Jacqueline Y. Collins - Bill Cunningham

SYNOPSIS AS INTRODUCED:
10 ILCS 5/9-50 new
35 ILCS 200/1-50
35 ILCS 200/4-35 new
35 ILCS 200/8-11 new
35 ILCS 200/17-10

Amends the Election Code. Provides that it is unlawful for any individual who is engaged in the business of providing legal representation in real estate tax assessment appeals to make campaign contributions of more than $750, in the aggregate, to any political committee established to promote the candidacy of a candidate for township or multi-township assessor, county assessor, county supervisor of assessments, or member of the board of review in any jurisdiction where that individual provides such legal representation. Provides that it is unlawful for any candidate, political committee, or other person to knowingly accept or receive such a contribution. Amends the Property Tax Code. Requires assessment officials to transmit to the chief county assessment officer valuation models for the assessor's jurisdiction, and requires the chief county assessment officer to post that information on his or her Internet website. Makes changes to the definition of "fair cash value". Makes changes concerning sales ratio studies. Requires the Department of Revenue to conduct audits of assessment practices. Provides that, if the county or township is deemed to be persistently non-compliant with the audit, then the assessment official shall be removed from office, and the vacancy shall be filled by the county board.
LRB100 13161 HLH 27557 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

SB2219LRB100 13161 HLH 27557 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 Election Code is amended by adding Section
59-50 as follows:
6 (10 ILCS 5/9-50 new)
7 Sec. 9-50. Property tax appeal contributions. It is
8unlawful for any individual who is engaged in the business of
9providing legal representation in real estate tax assessment
10appeals to make campaign contributions of more than $750, in
11the aggregate, to any political committee established to
12promote the candidacy of a candidate for township or
13multi-township assessor, county assessor, county supervisor of
14assessments, or member of the board of review in any
15jurisdiction where that individual provides such legal
16representation. It is unlawful for any candidate, political
17committee, or other person to knowingly accept or receive any
18contribution prohibited by this Section.
19 Section 10. The Property Tax Code is amended by changing
20Sections 1-50 and 17-10 and by adding Sections 4-35 and 8-11 as
21follows:

SB2219- 2 -LRB100 13161 HLH 27557 b
1 (35 ILCS 200/1-50)
2 Sec. 1-50. Fair cash value.
3 (a) "Fair cash value" means the amount in terms of money
4that a well-informed buyer is justified in paying and a
5well-informed seller is justified in accepting for property in
6an open and competitive market, assuming that the parties are
7acting without undue compulsion. In determining the fair cash
8value of any real property which is subject to any special
9assessment, such value shall not be determined by adding the
10present value of the special assessment to the sales price.
11 (b) Sales in and of themselves shall not be the sole
12criteria of fair cash value, but shall be used in connection
13with cost, income, and other factors, including, but not
14limited to:
15 (1) the proper classification of lands and
16 improvements;
17 (2) the size thereof;
18 (3) the effect of location on value;
19 (4) depreciation, including physical deterioration or
20 functional, economic, or social obsolescence;
21 (5) cost of reproduction of improvements;
22 (6) productivity, taking into account all restrictions
23 imposed by the State, the federal government, or units of
24 local government, including, but not limited to,
25 restrictions on property rented or leased to low income
26 individuals and families as authorized by Section 42 of the

SB2219- 3 -LRB100 13161 HLH 27557 b
1 federal Internal Revenue Code;
2 (7) earning capacity as indicated by lease price, by
3 capitalization of net income, or by absorption or sell-out
4 period;
5 (8) rental or reasonable rental values or rental values
6 restricted by the State, the federal government, or a unit
7 of local government, including, but not limited to,
8 restrictions on property rented or leased to low income
9 individuals and families, as authorized by Section 42 of
10 the federal Internal Revenue Code;
11 (9) sale value on open market with due allowance to
12 abnormal inflationary factors influencing such values;
13 (10) restrictions or requirements imposed upon the use
14 of real estate by the State, the federal government, or a
15 unit of local government, including zoning and planning
16 boards or commissions, and including, but not limited to,
17 restrictions or requirements imposed upon the use of real
18 estate rented or leased to low income individuals and
19 families, as authorized by Section 42 of the federal
20 Internal Revenue Code; and
21 (11) comparison with values of other property of known
22 or recognized value; sales ratio studies shall not be used
23 as an appraisal for appraisal purposes.
24The amount for which a property can be sold in the due course
25of business and trade, not under duress, between a willing
26buyer and a willing seller.

SB2219- 4 -LRB100 13161 HLH 27557 b
1(Source: P.A. 88-455.)
2 (35 ILCS 200/4-35 new)
3 Sec. 4-35. Publication of valuation models. Each
4assessment official, including each township or multi-township
5assessor, shall, on an annual basis, transmit to the chief
6county assessment officer valuation models for his or her
7jurisdiction, including methodologies, assumptions, and
8property values themselves. The chief county assessment
9officer shall post that information on his or her office's
10Internet website.
11 (35 ILCS 200/8-11 new)
12 Sec. 8-11. Department audits. Each year, the Department
13shall conduct an audit of each county, township, or
14multi-township assessment office to develop an accurate and
15credible mass appraisal system. The audit shall examine the
16following components of each office:
17 (1) each office's organizational plan; each county,
18 township, or multi-township assessment official shall
19 produce for his or her jurisdiction a plan for the current
20 and next assessment cycle, including an organizational
21 chart and budget;
22 (2) independently-validated sales data;
23 (3) detailed parcel information, including, but not
24 limited to:

SB2219- 5 -LRB100 13161 HLH 27557 b
1 (A) market factors;
2 (B) classification requirements; and
3 (C) use of the property;
4 (4) the valuation model or models used by the assessor;
5 (5) each officer's internal review process; and
6 (6) whether or not the assessor's office is in
7 compliance with the factors set forth in subsections (d),
8 (e), and (f) of Section 17-10.
9 Upon completion of the audit, the Department shall weigh
10each of the preceding components and shall make public a
11compliance list, detailing whether counties and townships are
12substantially compliant, partially compliant, or
13non-compliant. If a county or township is found to be
14non-compliant for a period of 6 consecutive years, then the
15county or township shall be deemed to be persistently
16non-compliant. If a county or township is persistently
17non-compliant, then the assessment official shall be removed
18from office, and the office shall be vacant. The county board,
19by an affirmative majority vote, shall appoint a replacement
20assessment official to serve for the remainder of the former
21assessment official's unexpired term.
22 (35 ILCS 200/17-10)
23 Sec. 17-10. Sales ratio studies.
24 (a) The Department shall monitor the quality of local
25assessments by designing, preparing and using ratio studies,

SB2219- 6 -LRB100 13161 HLH 27557 b
1and shall use the results as the basis for equalization
2decisions. In compiling sales ratio studies, the Department
3shall exclude from the reported sales price of any property any
4amounts included for personal property and, for sales occurring
5through December 31, 1999, shall exclude seller paid points.
6The Department shall not include in its sales ratio studies
7sales of property which have been platted and for which an
8increase in the assessed valuation is restricted by Section
910-30. The Department shall not include in its sales ratio
10studies the initial sale of residential property that has been
11converted to condominium property. The Department shall
12include compulsory sales occurring on or after January 1, 2011
13in its sales ratio studies. The Department shall also consider
14whether the compulsory sale would otherwise be considered an
15arm's length transaction, based on existing sales ratio study
16standards.
17 (b) When the declaration required under the Real Estate
18Transfer Tax Law contains financing information required under
19Section 31-25, the Department shall adjust sales prices to
20exclude seller-paid points and shall adjust sales prices to
21"cash value" when seller related financing is used that is
22different than the prevailing cost of cash. The prevailing cost
23of cash for sales occurring on or after January 1, 1992 shall
24be established as the monthly average 30-year fixed Primary
25Mortgage Market Survey rate for the North Central Region as
26published weekly by the Federal Home Loan Mortgage Corporation,

SB2219- 7 -LRB100 13161 HLH 27557 b
1as computed by the Department, or such other rate as determined
2by the Department. This rate shall be known as the survey rate.
3For sales occurring on or after January 1, 1992, through
4December 31, 1999, adjustments in the prevailing cost of cash
5shall be made only after the survey rate has been at or above
613% for 12 consecutive months and will continue until the
7survey rate has been below 13% for 12 consecutive months. For
8sales occurring on or after January 1, 2000, adjustments for
9seller paid points and adjustments in the prevailing cost of
10cash shall be made only after the survey rate has been at or
11above 13% for 12 consecutive months and will continue until the
12survey rate has been below 13% for 12 consecutive months. The
13Department shall make public its adjustment procedure upon
14request.
15 (c) The sales ratio studies shall conform with the most
16recent standards and statistical measures developed by the
17International Association of Assessing Officers. All data used
18to develop the sales ratio studies shall be made public.
19 (d) The median ratio measure for each township must fall
20between 0.9 and 1.1. If the median ratio measure does not fall
21within that range, then the appraisal level shall be found to
22be out of compliance unless, at a 95% level of confidence, the
23range estimate overlaps 1.
24 (e) The average deviation of ratios from the median level
25shall be measured by the coefficient of dispersion. A deviation
26that does not exceed the following value for each property type

SB2219- 8 -LRB100 13161 HLH 27557 b
1shall be considered in compliance:
2 (1) for single family residential, 20;
3 (2) for commercial or industrial property in a county
4 with a population of 500,000 or more, 15; and
5 (3) for commercial or industrial property in a county
6 with a population of less than 500,000, 25.
7 If, at a 95% level of confidence, the range estimate
8overlaps the maximum, then the appraisal level shall be found
9to be in compliance.
10 (f) The Department shall also determine the coefficient of
11the price-related bias for each township, which shall fall
12between -0.05 and 0.05. If, at a 95% level of confidence, the
13range estimate falls between -0.01 or 0.01, then the appraisal
14level shall be found to be in compliance.
15 (g) The sample size for each sales ratio study shall be not
16less than (i) 30 parcels or (ii) 10% of parcels in each
17property class within the jurisdiction, whichever is lower.
18 (h) The sales ratio study shall be subjected to a test of
19distribution such as Shapiro-Wilk, D'Agostino-Pearson K2, or
20Anderson-Darling A2.
21(Source: P.A. 96-1083, eff. 7-16-10.)
feedback