Madison County Assessor Meeting

Transcription

1 Madison County Assessor Meeting Pledge of Allegiance What we have for you on flash drive: (see attached) Exemptions: We are mailing the yellow cards and the outline of available exemptions again this year. Hopefully this will save some time, money and confusion. Comments? General Homestead: Please review the duplicates list again. Try to use notes as much as possible if the duplicate is to remain. Please use comments on the exemption screen note area to indicate Life Lease, Contract for Deeds and any other relevant information there. Also provide copy of documents for proof of eligibility! ****Note that we will now use the Roll/Renew field that has been added. Phil will explain. This will replace using the End Date field**** Veterans with Disabilities: Please make sure they submit the correct forms. (see Exemption books for examples) or send them to the Veterans Assistance Office Veterans Assistance Office added to our letters for For assistance call VAC at Legislation Signed Senior Freeze Wooded Acreage Board of Appeals Proposed again for 2018 Homestead Revision Simplify all Homestead Exemption language by separating Cook County from the rest. 1 P age

2 Madison County Assessor Meeting Farm Values: 2018 values will be increased by $26.46 (10% of PI 111) added to each individual PI. Photos: We need to get photos of any fieldwork as part of the updates you are doing. We have several new cameras to be loaned out so please use them! We will begin charging for photos that we have to take in your Township (for hearings or for Quad work). CIAO Qualifying: New series of classes for 2018 will not affect current CIAO s. Current Cycle: all active CIAO's must complete 60 hours of designation maintenance education over a 4 year cycle. Individuals who are elected, appointed, or contracted must also complete requirements set forth in 35 ILCS 200/2 45 and 35 ILCS 200/3 5. Phil: Charges CAMA Roll Patios/Decks Mapping/GIS Fred: GIS Data Layers we maintain on Flash Drive Review Mapping Policies Tax Parcel Combination Form Update Owner Name Change Form Update Will continue to issue replacement maps after 2017 Transfers are completed. Assessor Book Covers for the 20x24 inch Tax Maps are available if anyone needs replacements LAST CHANCE! 2 P age

3 Madison County Assessor Meeting Board of Review Senior Freeze Income Amount Homestead Improvement Exemptions What types of improvements qualify for the homestead improvement exemption? An improvement qualifies if it increases the assessed valuation of homestead property and either: increases the square footage of any existing structure assessed as real property, such as new room additions and attached garages, balconies, decks, patios, and porches; or Just replacing or updating fixtures does not qualify for this exemption. adds any permanent appurtenant structure used solely for residential purposes, such as detached garages, gazebos, and storage sheds, and in ground swimming pools; or materially alters the existing character and condition of any existing structure, such as installing central air conditioning, replacing asbestos siding with wood clapboards, upgrading asphalt shingles with slate or tiles, and converting unfinished space into finished living area. Any repair work performed to prolong or maintain the condition of an existing improvement does not qualify for this exemption. Certificate of Errors 3 P age

4 2018 Annual Madison County Township Assessors Meeting Joseph R. Dauderman C.I.A.O. Chief County Assessment Official Madison County Government 157 N Main Street, Suite 229 Edwardsville, IL Voice: (618) Fax: (618)

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6 Madison County Government Chief County Assessment Office Joe R. Dauderman C.I.A.O. Official Phil Byers, C.I.A.O. Madison County Administration Building Chief Deputy 157 N. Main St. Suite 229 Edwardsville, IL Kurt Prenzler Phone (618) Fax (618) Fred N. Michael, C.I.A.O. County Board Chairman Director of Maps & Plats Dear Township Assessors: Welcome to the 2018 Annual Madison County Township Assessors Meeting. This meeting is called pursuant to 35 ILCS 200/9-15, which requires me to assemble all assessors and their deputies and instruct them in the uniformity of their functions. These instructions are required to be in writing and available to the public. Accordingly, this entire document is available to the public in a PDF file on All Illinois assessing officers are required to follow the state property tax code (35 ILCS 200/1-1, et seq.) and the applicable regulations provided in the Illinois Administrative Code. The instructions herein are intended to provide for the orderly processing of assessments pursuant to these laws and regulations, and shall not be construed to be contrary to either. Please feel free to contact me or any one of my deputies with any questions you might have. Very truly yours, Joe Dauderman, CIAO 3 P age

7 The 2018 Assessment Cycle (35 ILCS 200/9-160: Valuation in years other than General Assessment Years) Responsibilities of each Township Assessor Discover, list, and value properties in the township as of January 1 of the assessment year (35 ILCS 200/9 95, et seq.) Revise and Correct assessments as needed (35 ILCS 200/9 75, et seq.) Return assessment rolls to the Supervisor or Assessments by June 15 of the assessment year (35 ILCS 200/9 230) Responsibilities of the Supervisor of Assessment Assembling township assessor for instruction on the assessment process (9 15) Preparing and maintaining tax maps and parcel ownership information (9 35) Receiving and analyzing township assessment rolls (9 230, et seq.) May equalize assessments within the county or any area therein (9 210) Applying various exemptions to homestead properties (15 165, et seq.) Publishing the assessment roll for each township (12 10) Providing mailed and notice to owners of property with revised assessments (12 30) Certifying assessment roll to the Board of Review (9 245) Reporting statistical abstracts to the Illinois Department of Revenue (17 15) Serving as Clerk of the Board of Review (3 30) Responsibilities of the Board of Review Convening on or before the first Monday in June of the assessment year (16 30) Adopting and publishing rules and procedures (9 5) Hearing complaints and correcting assessments for the current assessment year as appears to be just (16 55) May equalize assessments within the county or any area therein (16 60) Reviewing and ruling on applications for exemptions (16 70) Issuing certificates of error for the prior assessment year until judgment (16 75) Certifying the assessment roll to the County Clerk (16 85, et seq.) Adjourning by March 15 of the year following the assessment year (16 35) Legal Citations are from the Illinois Property Tax Code (35 ILCS 200/1 1, et seq.). 4 P age

8 Table of Contents Administration County Assessment Office Contacts 6 Assessments Use of Sale Price in Assessments 7 Real Estate Transfer Declaration (PTAX-203) Form and Instructions 8 DOR Memorandum on PTAX 203 Exclusion Codes. 12 Things to watch very closely when valuing parcels 22 How to Generate Assessments. 22 How to Add/Remove New Construction/Demolition How to Enter BLDG Permits.. 23 Land Evaluation 24 Cadastral Mapping.. 25 Exemptions Non-Homestead Exemptions. 26 General Homestead Exemption. 27 General Homestead Exemption of Lease Hold Properties 27 Senior Citizen Homestead Exemption Senior Citizen Assessment Freeze Exemption (Updated) 28 Persons with Disabilities Homestead Exemption Veterans with Disabilities Standard Homestead Exemption.. 29 Veterans with Disabilities Homestead Exemption 30 Returning Veteran Homestead Exemption 30 Pro-Rated Homestead Exemptions from IDOR 31 Preferential Assessments Senior Citizens Real Estate Tax Deferral Program. 32 Non-homestead Exemptions for Religious, Charitable, or Educational Organizations. 32 Home Improvement Exemption Model Home Assessment. 33 Fraternal Organization Assessment 33 Veterans Organization Freeze. 34 Historic Property Exemption. 34 Solar Energy Exemption Open Space Exemption 35 Farmland Assessments. 36 IDOR 2018 Farmland Assessments Certified Values.. 39 Developer s Relief Preferential Assessment.. 42 Board of Review Assessment Corrections 44 Certificates of Error 45 5 P age

9 Contact this Deputy County Assessment Office Contacts All Deputies can be reached at (618) For information on: ALL ~Disable Veterans Exemption ~Historical Value ~Illinois Preservation Act ~Model Home Assessment ~New Construction ~Open Space ~Reasons for Change ~Removing Sales from the Sale Ratio Study Bessie Powers Debbie Schmidt Fred Michael Janis Hagnauer Phil Byers ptab.illinois.gov Vicki Grater/Michele Bell/ Jenny Hosler/Krystle Wagner ~Board of Review ~Exempt Property ~Home Improvement Exemptions ~Conservation Right of Public Benefit ~Conservation Stewardship ~Farmland Assessments ~Forest Management ~Wooded Acreage ~GIS/Mapping Department ~Fraternal Organization Freeze ~Veterans Organization Freeze ~Posting Instructions ~Pro rata Assessments ~Property Tax Appeal Board ~Real Estate Transfer Declarations ~Sale Information 6 P age

10 Use of Sale Price in Assessments sale chase (verb; inflected form: sale chas ing) 1to change assessments on individual properties that have recently sold, without changing assessments on comparable properties that have not sold. 2to appraise without regard to uniformity, in violation of 35 ILCS 200/9-145, et seq. The Illinois Constitution requires that taxes upon real property shall be levied uniformly by valuation ascertained as the General Assembly shall provide by law (Ill. Const. Art. 9, 4(A) (1970)) The Illinois Supreme Court has held that using recent sales prices to determine the fair cash value and tax assessment of only certain parcels of property violates the uniformity clause of the Illinois Constitution (Walsh v. State Property Tax Appeal Bd., App. 3 Dist.1997, 222 Ill.Dec. 286, 286 Ill.App.3d 895, 677 N.E.2d 489, appeal allowed 226 Ill.Dec. 140, 173 I11.2d 548, 684 N.E.2d 1343, affirmed 229 I1l.Dec. 487, 181 I11.2d 228, 692 N.E.2d 260). Regarding the use of subject property sale prices in assessment appeals: The Illinois Supreme Court has held that fair cash value means what the property would bring at a voluntary sale where the owner is ready, willing and able to sell but not compelled to do so, and the buyer is ready, willing and able to buy but not forced so to do... [citation omitted]. See Springfield Marine Bank v. Property Tax Appeal Board, 44 Ill. 2d 428, 430, 256 N.E.2d 334, 336, (1970). Illinois courts have consistently held that a contemporaneous sale between parties dealing at arm s length is not only relevant to the question of fair cash market value but would be practically conclusive on the issue of whether an assessment was at full value. See People ex rel. Korzen v. Belt Ry. Co. of Chicago, 37 Ill. 2d 158, 161, 226 N.E.2d 265, 267, (1967). However, the sale price of property does not necessarily establish its value without further information on the relationship of the buyer and seller and other circumstances. See Ellsworth Grain Co. v. Illinois Property Tax Appeal Board, 172 Ill.App.3d 552, 526 N.E.2d 885 (4thDist. 1988). In 1993, the Property Tax Appeal Board promulgated Board Policy Concerning Assessment of Owner Occupied Residential Property. This policy properly states, absent proof that a transaction is not arms-length, a recent sale price of a property under appeal will carry substantial weight in the decision of the Board. However, this policy should not be used as an excuse for assessing each property that has sold based on its sale price while not concurrently reassessing comparable property. Certainly an arms-length sale of a property is normally an excellent indicator of the market value of that property and similar properties. However, when using sales to assess property, it is important that both sold and unsold properties be treated in the same manner. Properties which have sold should be reassessed to the level of assessments in the jurisdiction, but the sale information should also be used to reassess similarly situated properties to the same level of assessments. 7 P age

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15 Office of Local Government Services 101 W. Jefferson St. PO Box Springfield, IL Phone: (217) Fax (217) MEMORANDUM To: From: Chief County Assessment Officers David Fangmeier, Supervisor Sales Ratio and Audit Section Property Tax Division Office of Local Government Services Date: November 9, 2010 Re: PTAX Revised This memo is being sent to inform everyone of recent changes made to Form PTAX-203, Real Estate Transfer Declaration. Due to recent legislation (Public Act ), changes were made to Form PTAX-203, Line 10. The following 2 lines were added to the form, and the instructions were updated: Line 10g, Short sale The property was sold for less than the amount owed to the mortgage lender or mortgagor, if the mortgagor has agreed to the sale. Line 10h, Bank REO (real estate owned) The first sale of the property owned by a financial institution as a result of a judgment of foreclosure, transfer pursuant to a deed in lieu of foreclosure, or consent judgment occurring after the foreclosure proceeding is complete. These changes will go into effect January 1, The Department is currently working on implementing these changes and will provide you with further instructions on any necessary process changes in the near future. If you have any questions regarding this memo, please contact us at (217) P age

16 Explanation of Codes Used in the Code 1 and Code 2 Spaces of Line 1 of the CCAO Box on the RETD Code 01 Split One or more of the parcels sold has been split as a result of the sale. Code 02 Partial Assessment A partially completed improvement was assessed on the property as of the previous January 1, and the improvement was complete or ore complete as of the sale date. The information from line 9 of the RETD should verify any change in the improvement. Use Code 42 in addition to Code 02 if the information on line 9 of the RETD does not verify a change in the improvement. Code 03 Prorated Assessment In the year prior to the sale, the property was subject to an instant assessment under Section or the property has a change in exempt status during the assessment year and received a partial year assessment under Section Use Code 11 for parcels having exempt status during the entire assessment year. Code 04 Model Home In the year prior to the sale, the property was assessed as a model home under Section (formerly Section 20d-4). Code 05 Developer s Lot In the year prior to the sale, the property was assessed as a developer s lot under Section (formerly Section 20g-4). Code 06 Common Area In the year prior to the sale, the property was given a $1 assessment as common area under Section Code 07 Historic Residence In the year prior to the sale, the property was assessed as a historic residence under Section or Section Code 08 Forestry Management In the year prior to the sale, the property was assessed under Section Code 09 Registered Land/Conservation Rights In the year prior to the sale, the property was assessed under Section Code 10 Veteran s Organization Assessment Freeze In the year prior to the sale, the property was assessed under Section Code 11 Exempt Parcel In the year prior to the sale, the property was totally exempt from taxation for the assessment year prior to the sale based on a Department certification or the judgment of a court of competent jurisdiction. Code 12 State Assessed In the year prior to the sale, the property was a railroad operating property, a pollution control facility, or a low sulfur dioxide coal fueled device assessed by the Department. Code 13 RETD Filed in Wrong County The property sold in not located in the county. Code 14 Multiple County Sale The property sold is located in more than one county. Code 15 Same Surname Code 16 Farm Less than 5 Acres The property was assessed as a farm under Sections through and contains less than 5 acres. This sale will not be used in either the general ratio study or in the farm ratio study. 13 P age

17 Code 17 Multi-class (farm/non-farm) The property was partly assessed as non-farm and partly assessed as farm. This code does not apply when the sold properties are subject to assessments only for farmland, farm homesite, farm home, and/or farm buildings. This code applies to both single and multiple parcel transactions. Code 18 Mineral Rights Only mineral rights were sold. Code 19 Subsidence Rights Only subsidence rights were sold. If only mineral rights and subsidence rights were sold, use Code 18 or Code 19. Code 20 Vacant Land with Building Assessment A single parcel was sold, its current use on line 8 of the RETD was vacant, and the parcel had a building assessment in the year prior to the sale. Code 21 Building with Vacant Lot Assessment A single parcel was sold, its current use on line 8 of the RETD involves a building, and the parcel had no building assessment for the year prior to the sale. Code 22 Mobile Home on Privilege Tax Sold as Real Estate The property contained a mobile home assessed on privilege tax that was sold as real estate i.e., the current use on line 8 of the RETD was mobile home residence and line 12b on the RETD was checked No. Use Codes 40 through 52 only if you are submitting the required documentation to show that the RETD was incorrectly completed. Code 40 Date of Deed Use this code when line 4 of the RETD shows a date of deed in the wrong year. A copy of the deed must accompany the RETD when it is sent to the Department. Code 41 Deed Type Use this code when the type of deed was incorrectly specified on line 5 of the RETD. A copy of the deed must accompany the RETD when it is sent to the Department. Code 42 Building Added/Removed/Remodeled Use this code when the information on line 9 of the RETD is incorrect. Supply documentation which could take the form of a letter signed by the buyer or seller stating that line 9 of the RETD was incorrectly completed and specifying the correct information. A property record card is not acceptable documentation. Code 43 Contract for Deed Use this code when the information on line 10a is incorrect i.e., the sale was not a result of a fulfillment of a contract for deed or the year the contract was initiated is incorrectly specified. Supply documentation which could take the form of a letter signed by the buyer or seller stating that line 10a of the RETD was incorrectly completed and specifying the correct information, or a copy of the Contract for Deed. Code 44 Related Parties Use this code when the information on line 10b is incorrect i.e., 1) The parties are related and line 10b is not checked; or 2) The parties are not related and line 10b is checked. Submit with the RETD a letter signed by the buyer or seller stating that line 10b of the RETD was incorrectly completed and specifying the correct information. Code 45 Partial Interest Use this code when the information on line 10c is incorrect. A copy of the deed must accompany the RETD when it is sent to the Department. 14 P age

18 Code 46 Compulsory Transaction Use this code when the information on line 10d, 10e, or 10f is incorrect. If one of these lines is incorrectly not checked, a copy of a court order requiring the sale of the property should accompany the RETD when it is sent to the Department. If one of these lines was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code is no longer valid beginning with declarations recorded on or after January 1, See below for new codes. Code 47 Auction Sale Use this code when the information on line 10i is incorrect. If line 10i is checked and the property did not sell at auction, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. If line 10i is not checked and the property sold at auction, submit with the RETD a letter signed by the buyer, seller, or auctioneer stating that the RETD was incorrectly completed and specifying the correct information. A copy of the auction advertisement may also be used as documentation. Code 48 Particular Buyers/Sellers Use this code when the information on lines 10j, 10k, 10l, 10m, 10n, or 10o is incorrect. Submit with the RETD a letter signed by the buyer or seller stating that the information on these lines is incorrect and specifying the correct information. However, a letter is not required when: 1) Line 10j is not checked, but the name of the buyer/seller in Step on the RETD clearly indicates that the name of the buyer/seller is a relocation company, (Note: Relocation Company transactions are included in the sales ratio study, unless excluded for another reason). 2) Line 10k is not checked, but the name of the buyer/seller in Step 4 clearly indicates that the buyer/seller is a government agency or is a financial institution as defined in the instructions for line 10k, ( Financial Institution includes a bank, savings and loan, credit union, Resolution Trust Company, and any entity with mortgage company or mortgage corporation as part of the business name). 3) Line 10l is not checked, but the name of the buyer in Step 4 on the RETD includes real estate investment trust, REIT (Note: REIT transactions are included in the sales ratio study, unless excluded for another reason). 4) Line 10m is not checked, but the name of the buyer in step 4 of the RETD includes pension fund (Note: pension fund transactions are included in the sales ratio study, unless excluded for another reason). 5) Line 10n is not checked and county information concludes buyer is an adjacent property owner, (Note: transactions among adjacent property owners are used in the sales ratio study unless excluded for another reason). If the buyer is a trust or trustee and this is not indicated on the RETD, submit with the RETD a copy of the deed stating they buyer is a trust or trustee for documentation. Code 49 Simultaneous Trade of Property Use this code when the information on line 10p or line 14 is incorrect. Submit a signed letter by the buyer or seller indicating that the information on line 10p and/or line 14 is incorrect and specifying the correct information. Code 50 Sale-leaseback Use this code when the information on line 10q is incorrect. Submit with the RETD a letter signed by the buyer or seller indicating the information on line 10q is incorrect and indicating the correct information. Code 51 Advertised for Sale Use this code when the information on line 7 of the RETD is incorrect. If line 7 is incorrectly checked No because the property was advertised for sale as defined in the instructions, (the property was sold using a real estate agent or advertised for sale by newspaper, trade publication, radio/electronic media, of for sale sign) submit with the RETD a signed and dated letter from the buyer or seller stating that the manner in which the property was advertised. If line 7 is incorrectly checked Yes, submit with the RETD a signed and dated letter from the buyer or seller stating the property was not advertised for sale. 15 P age

19 Code 52 Personal Property List Incorrect Use this code when the personal property listing submitted with the RETD is incorrect and/or the amount on line 12a is incorrect If the amount of personal property on line 12a is understated, submit with the RETD a letter signed by the buyer or seller indicating that the personal property information is incorrect and indicating the correct information. If the amount of personal property on line 12a is overstated, a revised RETD or affidavit of correction must be filed with the county recorder and the additional tax must be paid. Submit the revised RETD or the affidavit of correction. If the information on the personal property listing is incorrect, obtain a revised copy of the personal property listing from the buyer or seller along with a letter signed by the buyer or seller indicating that the personal property listing was incorrect and that the revised copy is correct. Code 53 Altered Consideration Use this code to alert the Department that line 11 has been altered without being initialed. Code 54 Court-ordered sale Use this code when the information on line 10d is incorrect. If this line is incorrectly not checked, a copy of a court order requiring the sale of the property should accompany the RETD when it is sent to the Department. If one of these lines was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code should be used only for declarations recorded on or after January 1, Code 55 Sale in lieu of foreclosure Use this code when the information on line 10e is incorrect. If this line is incorrectly not checked, a copy of a court order requiring the sale of the property should accompany the RETD when it is sent to the Department. If one of these lines was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code should be used only for declarations recorded on or after January 1, Code 56 Condemnation Use this code when the information on line 10f is incorrect. If this line is incorrectly not checked, a copy of a court order requiring the sale of the property should accompany the RETD when it is sent to the Department. If one of these lines was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code should be used only for declarations recorded on or after January 1, Code 57 Short sale Use this code when the information on line 10g is incorrect. If this line is incorrectly not checked, documentation/letter must be submitted along with the declaration indicating that the property was sold for less than the amount owed to the mortgage lender or mortgagor indicating the mortgagor has agreed to the sale. This documentation/letter should accompany the RETD when it is sent to the Department. If this line was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code should be used only for declarations recorded on or after January 1, Code 58 Bank REO (real estate owned) Use this code when the information on line 10h is incorrect. If this line is incorrectly not checked, a copy of a judgment of foreclosure, transfer pursuant to a deed in lieu of foreclosure, or consent judgment occurring after the foreclosure proceeding is complete should accompany the RETD when it is sent to the Department. If this line was incorrectly checked, submit with the RETD a letter from the buyer or seller stating that the RETD was incorrectly completed and specifying the correct information. NOTE: This code should be used only for declarations recorded on or after January 1, Page

20 Codes used by IDOR Auditor Notification Code 70 Homestead Improvement Exemption Use this code if the property transferred was subject to a homestead improvement exemption the year prior to the sale. The assessment on line 2 of the CCAO box should reflect the full assessment before the exemption amount is deducted. Do not write HIE in line 5 of the CCAO box. Code Airport Dual Assessment Use this code if the property transferred was, in the year prior to the sale, subject to the dual assessment under Section of the Property Tax Code. The assessment on line 2 of the CCAO box should reflect the higher assessed value (fair cash value). Do not write DUAL in line 5 of the CCAO box. Code Open Space Dual Assessment Use this code if the property transferred was, in the year prior to the sale, subject to the dual assessment under Section of the Property Tax Code. The assessment on line 2 of the CCAO box should reflect the higher assessed value (fair cash value). Do not write DUAL in line 5 of the CCAO box. 17 P age

21 Brief Description of Codes for "CCAO Box" on RETD Codes 01-28: Remove the Sale from the Ratio Study Code Description 01 * Split 02 * Partial Assessment 03 * Prorated Assessment (20d-4) Model Home (20g-4) Developer's Lot Common Area $1 Assessment Historic Residence Forestry Management Registered Land/Conservation Rights & Veteran's and Fraternal Organization Assessment Freeze 11 * Exempt Parcel 12 * State Assessed 13 * RETD Filed in Wrong County 14 * Multiple County Sale 15 Same Surname 16 Farm less than 5 acres 17 Multi-class (farm/non-farm) 18 * Mineral and Timber Rights 19 * Subsidence Rights 20 Vacant Lot with Building Assessment - Single Parcel Sale Only 21 Building with Vacant Lot Assessment - Single Parcel Sale Only 22 Mobile Home on Privilege Tax Sold as Real Estate 23 Buyer/Seller is a Church, School, or Charitable Organization 24 Sale by Executrix using Warranty/Trustee Deed 25 Buyer is a Trustee using Warranty/Trustee Deed 26 * Cemetery Lot using Warranty/Trustee Deed 27 * Re-recorded Document 28 * Locally Assessed Railroad Codes 40-58: ONLY used when the Assessor has information contradictory to what is on the PTAX-203. Do NOT use Codes or if the information on the RETD is correct. Code Description 40 ** Date of Deed 41 ** Deed Type 42 ** Buildings Added/Removed/Remodeled 43 ** Contract for Deed 44 ** Related Parties 45 ** Partial Interest ** Compulsory Transaction 46 NOT valid for declarations recorded AFTER 12/31/ ** Auction Sale 48 ** Particular Buyers/Sellers 49 ** Simultaneous Trade of Property 50 ** Sale-leaseback 51 ** Advertised for Sale 52 ** Personal Property List Incorrect 53 Altered Consideration 54 ** Court-ordered sale 55 ** Sale in lieu of foreclosure 56 ** Condemnation 57 ** Short sale 58 ** Bank REO (real estate owned) Codes 70-72: IDOR Auditor Notification Code Description 70 Homestead Improvement Exemption Airport - Dual Assessment Open Space - Dual Assessment * Indicates NO Board of Review Final Equalized Assessment is needed on the declaration ** Indicates that the CCAO MUST submit documentation to support these codes 18 P age

22 Specification of Sale to Include/Remove/Adjust - 3/2001 Situation Comment Vacant lot indicated by buyer/seller, but has building assessment - single parcel only Improved property indicated by buyer/seller, but no building Include Remove X X Adjust RETD Line No. 2, 8(a) &CCAO line 2 2, 8, & CCAO line 2 assessment - single parcel only Split/New parcel X 3 1 Mineral rights X 3 18 Farm sale < 5 acres X 3 & 8(j) 16 Deed Type warranty or trustee X 5 Includes corporate warranty Deed Type not warranty or X 5 trustee Sales of convenience X 5 Property not advertised for sale X 7 Current use is vacant lot, but line 12a shows personal property amount Physical change in property between assessment date and sale date Contract for deed initiated in X X 9 X 8(a) & 12(a) 10(a) year prior to sale Related parties X 10(b) Partial interest X 10 Forced Sales X 10(d), (e), & (f) Auction sales X 10(g) Seller or buyer is relocation company include a.v. X 10(h) Seller or buyer is a financial X 10(i) institution Buyer or seller is a government agency X 10(i) Buyer is REIT X 10(j) Buyer is a pension fund X 10(K) Buyer owns adjacent or nearby property (if advertised -good sale, if not advertised - reject) X Buyer exercising option to purchase X 10(i) (adjacent) & 203-A 5 (nearby) 10(m) CCAO Code P age

23 Simultaneous trade of real property X 10(n) & 14 Sale-leaseback X 10(o) Response to 203 question 10(p) - other items applying to the sale 10(p) No personal property reported X 12(a) Personal property amount on X 12(a) line 12(a) but does not fall into the category below Personal property on line 12(a) X 12(a) >5% of SP residential or >25% of SP commercial/industrial Seller or buyer is charitable/religious/educational X 16("b" is marked) Exemption "m" claimed - she related to Home Ownership Made Easy Act X 16 Farm sale < 5 acres X CCAO Sale of non-farm property in more than one township/multitownship Mobile home deducted as personal property but is assessed as real estate X X line 1 CCAO line 1 CCAO line 4 Non clear -cut X CCAO Line 5 Sec. 515 housing X CCAO line5 CCAO assessed item on X PP list & personal property detail list as CCAO real estate line 5 Case by Case 23 Code 23 is used only if "b" in line 16 is not marked Will use only in farm study Effective for 2002 sales Effective for 2001 sales Sale is not at market 203-A 8 Case by Case Partial assessment X 2 Prorated assessment X 3 Model Home (20d-4) X 4 Developer's lot (20g-4) X 5 Common area $1 asmt X 6 Historic residence X 7 Forestry management X 8 Registered land/conservation X 9 Vet's org assessment freeze Fraternal org assessment freeze Exempt parcel X 11 State assessed parcel X 12 RETD filed in wrong county X 13 X 10 Effective for 2001 sales X 10 Effective for 2002 sales 20 P age

24 Multiple county sale X 14 Buyer and seller have same X 15 surname Multi-class (farm/non-farm) sale X 17 Subsidence right X 19 Mobile home on privilege tax X 22 sold as real estate Sale by Executor/executrix X 24 using warranty or trustee deed Buyer is trustee using warranty X 25 or trustee deed Cemetery lot sold using X 26 warranty or trustee deed Re-recorded document X 27 Locally assessed railroad X 28 Altered consideration not X 53 initiated by buyer/seller Two or more usable sales in same study year Use most current sale, Unless there is a 25% or more difference in sale (determined on review of all usable sales) 21 P age

25 Things to watch very closely when valuing parcels Land Values-unit prices on land, influence factors, nbhd. factors. Permits- change the old permits to a Completed Permit. PRC images- move the newest photo of the front of the house to the PRC. *Building Cost Tab-PRC Image-pick photo. New Construction/Demolition- clear out any value that doesn't belong there. Notes- clear out any old notes that no longer apply. If you have notes that you want to show on the PRC, they must be added under Public Notes on the Overview screen. Condos- Condominiums are now done as residential. Some of the condo's do not have a land or building cost and will have to be loaded from scratch. Sheds-If you have a general shed on a farm parcel, change it to a Pole Frame with a D grade. A/C on 1 & 2 sty homes- check to make sure A/C was added for both story heights. Adjust for schedule combining. -$1800. Structure Names- Change structure name to correct building type with full capitalization. Example: One Story Ranch should be changed to 1 STORY BRICK or 1 STORY FRAME. Residential Out Bldgs.- Move Residential out buildings to the same card as the house. This only applies to Residential, not Farm buildings. Sketches- Make sure sketches are cleaned up. Out bldgs.- clean up out bldg name & put size in structure name. How to Generate Assessments 1. Adjust values to correct figures. 2. Reset new construction to $0, if any. This is at the bottom of the screen on the Bldg.Cost tab. 3. Save & Generate Assessment. 4. Change Property Class on Assessment screen/ If needed. 5. Change Land Use on Overview tab/if needed. 22 P age

26 How to Add/Remove New Construction/Demolition 1. Adjust value as close as possible to previous value. 2. Reset new construction to $0, if any. This is at the bottom of the screen on the Bldg.Cost tab. 3. Click New Constr/Demo tab at bottom of screen. 4. Make new addition or remove demolition to bldg. 5. Change Property Class & Land Use on Overview tab/if needed. 6. Check New Const/Demo on Total Value tab. Should match value on Bldg.Cost tab. 7. Save & Generate Assessment. How to Enter Bldg. Permits 1. On the Permits Tab, Click Add. 2. Fill in the Permit # using:permit Year/Twp #/Permit #. --Example: Pick your Bldg.Permit Source (City) -Do not enter any County permits. These are added by the planning and development office. 4. Pick your Bldg.Permit Status (Void/Active/Completed). 5. Enter the Issued and the Application date of the permit. 6. Enter the requested construction (Residence/Pole Barn/Deck/Etc.). 7. Enter the Constr. Value. 8. Enter the Completed Date (if known). 9. Enter the Occ.Date (if known). 23 P age

27 Land Valuation 1. Make sure you have a nbhd/zoning/city name. These are found on the land cost tab. If these are missing, you must add them. City name & nbhd. code are found on the Overview Tab. Zoning is found on the Property Chars.Tab After adding, click Save. 2. If you don't have a land value, click the land type tab and change it to another type of land and then change it back to the original type and click Save. 3. If you are adding a new land value, click Add Land button and pick property use type. (Residential/Commercial/Industrial) 4. Under Land Area Detail(General Information)-Choose land type (Regular/Irregular/Waterfront/Etc.) 5. Enter your land type in the description field. Must be done after you select land type or you will have to enter it twice. 6. Choose cost method (Frontage/Sq.Ft./Acres/Site) 7. Enter Lot Size/Sq.Ft./Acreage Front Foot lots require you to pick the depth type and the standard depth. The Depth Type will always be standard. 8. Add Influence factors, if any. 9. Click Save. You should now have a land value in the Appraised value field. This value is before any nbhd. factors. The final land value is on the Total Value tab. This is where you may override the value. To override the value, click Land Manual on the Total Value Tab and enter your value, then click Save. 24 P age

28 Cadastral Mapping 35 ILCS 200/9-35, et seq. The process of cadastral mapping and the maintenance of ownership names for property tax purposes is governed by the Illinois Property Tax Code. Ownership Names Ownership information must reflect the information shown o n the records maintained by the county recorder (35 ILCS 200/9-35). Changes to the ownership name usually require a deed or court order; contact the County Assessment Office for more information. Township Assessors will receive copies of any updates to ownership, typically in reports ed monthly. Mailing Addresses Mailing address information must reflect the Information show non the records maintained by the county recorder (35 ILCS 200/9-35). Changes to the mailing address must be made in writing and be signed by the owner. Divisions and Consolidations Divisions and consolidations can be made either by a Plat of Subdivision that is made in accordance with the Illinois Plat Act (765 ILCS 205/1.1 (b)) or by owner survey (35 ILCS 200/9-55). Divisions and consolidations filed no later than August 31, 2017, will be processed for the 2017 taxable year; otherwise, they will be processed for the 2018 taxable year. If a request for a division or consolidation is filed prior to the date that 2016 property tax bill has been issued, the division or consolidation will be immediately processed and the description of the new parcel(s) will be sent to the Township Assessor for updated values for the resultant parcels. If a division or consolidation is filed on or after the 2016 property tax bill has been issued, it cannot be processed until both installments have been paid. Upon full payment of all property taxes for 2016, the division or consolidation will be immediately processed and the description of the new parcel(s) will be sent to the Township Assessor for updated values for the resultant parcels For more information, please Fred at fnmichael@co.madison.il.us or call him at (618) P age

29 Non-Homestead Exemptions 35 ILCS 200/15-5, et seq. The owners of exempt non-homestead properties are required to file an annual affidavit or certificate of exempt status, which states whether there has been any change in the ownership or use of the property on or before January 31 of each assessment year. The information provided helps keep property tax rolls accurate and facilitates assessment of taxable, leasehold interests. If a property owner fails to file an affidavit or certificate of exempt status, the Supervisor of Assessments has discretion to terminate the exemption of that property under 35 ILCS 200/15-10, et seq. Exceptions to this requirement include property exempted for religious purposes, orphanages, or schools, burial grounds owned by a not for-profit organization under Section or exempt property of the United States under Section Township Assessors must be alert for previously exempt property where ownership or use has changed, and be prepared to make an assessment accordingly. On newly acquired property or property going into exempt use, neither the Township Assessor nor the Supervisor of Assessments have the legal authority to exempt property from taxation. A petition for exemption must be filed with the Board of Review by the owner; the Board will then make a recommendation regarding the petition, and forward it to the Illinois Department of Revenue for a final determination. 26 P age

30 General Homestead Exemption 35 ILCS 200/ This exemption reduces the EAV of the parcel by up to $6,000 as long as the current owner has occupied the property on January 1 of that year. The exemption need only be applied for one time and it remains in effect until the property is sold. IF MULTIPLE PARCEL S ARE OWNED BY THE SAME OWNER, ONLY ONE EXEMPTION WILL BE IN EFFECT. Brief Eligibility Requirements: 1) Owner Occupied 2) Liable for payment of property taxes 3) Principal place of residency General Homestead Exemption of Leasehold Properties This exemption reduces the EAV of the parcel by up to $6,000 as long as the current Lessee has occupied the property on January 1 of that year. Due to the periodic nature of leaseholds, a notarized application for this exemption must be submitted by January 31 of each year along with a copy of the current Lease Agreement. If there is a change in Lease, or if the Lessee vacates the property, the owner of the property is required to notify the Chief County Assessment Officer of that change and supply a new Lease Agreement within 30 days. Brief Eligibility Requirements: 1) Lessee Occupied 2) Lessee liable for payment of property taxes 3) Principal place of residency 4) Lease Agreement must be for no less than one year (not month to month) 5) Lease Agreement must expressly state that the lessee is liable for the payment of property taxes 27 P age

31 Senior Citizens Homestead Exemption (PTAX-324) 35 ILCS 200/ This exemption is a $5,000 reduction in the EAV of the property granted the residential property that is occupied is the principal residence of a person, who is 65 years of age or older during the assessment year and the person must be the owner; or have an equitable interest in the property with a single-family residence; and be liable for the payment of the property taxes. The exemption needs to be applied for every year. Brief Eligibility Requirements: 1) Owner Occupied 2) Liable for the payment of property taxes 3) 65 years of age or older during the assessment year 4) Principal place of residency Senior Citizens Assessment Freeze Homestead Exemption (PTAX-340) 35 ILCS 200/ This exemption allows senior citizens who have a total household maximum income of less than $65,000 and meet certain other qualifications to elect to maintain the EAV of their homes at the base year EAV and prevent any increase in that value due to inflation. The amount is determined on (1) the property s EAV minus the frozen base year value (the property s prior year s EAV for which the applicant first qualifies for the exemption), and (2) the applicant s total household maximum income limitation. The exemption needs to be applied for every year by the 31 st of July. Brief Eligibility Requirements: 1) Owner Occupied 2) Liable for payment of property taxes 3) 65 years of age or older during the assessment year 4) Total household income of $55,000 or less 5) Principal place of residency 28 P age

32 Person with Disabilities Homestead Exemption (PTAX-343) - Application (PTAX-343-A) - Physician's Statement (PTAX-343-R) - Annual Verification of Eligibility 35 ILCS 200/ This exemption reduces the EAV of the parcel by $2,000 only if the primary residence is owned and occupied by a disabled person that is liable for the payment of property taxes. The exemption needs to be applied for every year. Brief Eligibility Requirements: 1) Owner Occupied 2) Liable for payment of property taxes 3) Disabled or have become disabled during the assessment year 4) Principal place of residency Veterans with Disabilities Standard Homestead Exemption (PTAX-342) Application (PTAX-342-R) - Annual Verification of Eligibility 35 ILCS 200/ The SHEVD provides an annual reduction in the EAV of a primary residence occupied by a veteran with a disability, or the veteran's surviving spouse, on January 1 of the assessment year. The SHEVD amount depends on the percentage of the serviceconnected disability as certified by the U.S. Dept. of Veterans Affairs. A qualified disabled veteran with a disability of at least 30% but less than 50% will receive a $2,500 reduction off the EAV; if the disability is 50% but less than 70% it will be a $5,000 reduction off the EAV. If the individual is more than 70% disabled then the residential property is exempt from taxation under this Code. The disabled veteran must own or lease a single family residence and be liable for the payment of the property taxes. The exemption needs to be applied for every year. THIS EXEMPTION CANNOT BE COMBINED WITH THE PERSON WITH DISABILITIES HOMESTEAD EXEMPTION OR VETERANS WITH DISABILITIES HOMESTEAD EXEMPTION. Brief Eligibility Requirements: 1) Owner Occupied 2) Served in US Armed Forces on active duty or state active duty 3) 30% service-connected disability certified by U.S. Dept. of Veterans Affairs 4) Principal place of residency 29 P age

33 Veterans with Disabilities Homestead Exemption Illinois Dept. of Veterans' Affairs Website This exemption may reduce the EAV by up to $70,000 for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse. The Illinois Department of Veterans Affairs determines the eligibility for this exemption. This exemption is also available on a mobile home owned used exclusively by a disabled veteran or their spouse. The exemption needs to be applied for every year. THIS EXEMPTION CANNOT BE COMBINED WITH THE HOMESTEAD EXEMPTION FOR PERSON WITH DISABILITIES OR DISABLED VETERANS STANDARD HOMESTEAD EXEMPTION. Brief Eligibility Requirements: 1) Served in Armed Forces of the U.S. 2) Disabled in such a nature that Federal Government has authorized payment for the purchase or construction of housing Returning Veterans Homestead Exemption (PTAX-341) 35 ILCS 200/ This exemption is a one-time, 2-year $5,000 reduction off the EAV on the primary residence of a veteran upon returning from active duty in an armed conflict involving the armed forces of the United States. A QUALIFYING VETERAN CAN RECEIVE THIS EXEMPTION EACH YEAR IN WHICH HE OR SHE RETURNS FROM ACTIVE DUTY. Brief Eligibility Requirements: 1) Owner Occupied 2) Served in U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces 3) Returned from active duty in an armed conflict involving the armed forces of the U.S. 4) Liable for the payment of property taxes 5) Principal place of residency 30 P age

34 Pro-rated Homestead Exemptions from IDOR The statutory assessment date in Illinois is January 1. There are only 2 circumstances when January 1 of any year does NOT apply and pro-rated assessments/mid-year changes are allowed: 1) When a property becomes fully exempt or there is a change in use (nonhomestead) [35 ILCS 200/9-185]: addition/removal of fully exempt property 2) When there is new construction or added improvements as provided by statute [35 ILCS 200/9-160 and 9-180]: added improvements/new construction. See Rosewell, 120 Ill.App.3d 369 (1 st Dist 1983) and Kassabaum, 106 Ill.2d 473 (1985) Only two homestead exemptions have pro-ration language contained in the statute: 35 ILCS 200/ Senior Citizens Homestead Exemption specifically allows pro-ration. Beginning with assessment year 2003, for taxes payable in 2004, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the senior citizens homestead exemption under this Section must be granted a pro-rata exemption for the assessment year. The amount of the pro-rata exemption is the exemption allowed in the county under this Section divided by 365 and multiplied by the number of days during the assessment year the property is occupied as a residence by a person eligible for the exemption under this Section. The chief county assessment officer must adopt reasonable procedures to establish eligibility for this pro-rata exemption. 35 ILCS 200/9-175 General Homestead Exemption allows pro-ration in certain circumstances. If in any assessment year beginning with the 2000 assessment year, homestead property has a pro-rata valuation under Section resulting in an increase in the assessed valuation, a reduction in equalized assessed valuation equal to the increase in equalized assessed value of the property for the year of the pro-rata valuation above the equalized assessed value of the property for 1977 shall be applied to the property on a proportionate basis for the period the property qualified as homestead property during the assessment year. The maximum proportionate homestead exemption shall not exceed the maximum homestead exemption allowed in the county under this Section divided by 365 and multiplied by the number of days the property qualified as homestead property. None of the other homestead exemptions have language authorizing mid-year homestead exemption pro-rations. **Note: Model Homes that are sold during the assessment year will receive a pro-rated assessment. 31 P age

35 Senior Citizens Real Estate Tax Deferral Program (IL-1017-TD) (IL-1018-TD) This program allows senior citizens, 65 years of age or older, who have a total household income for the year of no greater than $55,000 and meet certain other qualifications, to defer all or part, up to a maximum of $5,000 of the real estate taxes and special assessments on their principal residences. The deferral is similar to a loan against the property s market value and the maximum amount that can be deferred, including interest and lien fees, is 80% of the taxpayer s equity interest in the property. Brief Eligibility Requirements: 1) Owner occupied 2) 65 years of age or older during the assessment year 3) Principal place of residency 4) Total household income for the year less than $55,000 Non-homestead Exemptions for Religious, Charitable, or Educational Organizations (PTAX-300R) This exemption is for properties of religious, charitable, and educational organizations, as well as units of federal, state and local governments, that are eligible, exemption from property taxes to the extent provided by law. The exemption needs to be applied for every year and requirements met each year. Home Improvement Exemption 35 ILCS 200/ This exemption is offered to any owner occupied property that has had an increase in the value of their home due to assessable improvements such as additions, garages, porches, etc. The exemption allows the homeowner a 4-year exemption from the assessed value if increased due to improvements. There is a limit of $25,000 off the assessed value or $75,000 off the full value. This exemption applies only to properties that are residential and occupied by the owner. This exemption may be applied for at any time during the year and does not need to be renewed every year. Brief Eligibility Requirements: 1) Owner Occupied 2) Residential 3) Principal place of residency 32 P age

36 Model Home Assessment (PTAX-762) (PTAX-762-C) This assessment is for a property that must be a single-family residence, town home, or condominium, used solely as a model home for prospective buyers, and not occupied as a dwelling. The model home may contain home furnishings, appliances, offices, and office equipment to further sales activities. No more than 3 model homes can be located at the same time within a 3-mile radius, the center of each radius is the model home that has been used for the longest period of time. No model home can be used for model home purposes longer than 10 years. The exemption needs to be applied for every year. Brief Eligibility Requirements: 1) Single-family residence, Town home, or Condominium 2) Used solely as a model home for prospective buyers 3) Not Occupied Fraternal Organization Assessment (PTAX-764) (PTAX-765) (PTAX-766) 35 ILCS 200/15-350, et seq. This assessment is for a fraternal organization that must submit documentation consisting of a copy of its charter; proof of ownership of the property; and provide proof of exempt status under Section 501(c) (10) of the Internal Revenue Code. The organization must also prohibit gambling and the use of alcohol on the property and have members who provide financial support for charitable works. Properties that qualify after assessment year 2001, the assessed value is frozen at 15% percent of the assessed value in the assessment year the property first qualifies. The exemption needs to be applied for every year. Brief Eligibility Requirements: 1) Fraternal organization chartered by the state of Illinois prior to ) Owns uses real property or its subordinate entity 3) Prohibit gambling and use of alcohol 4) Member provide direct or indirect financial support for charitable works 33 P age

37 Veteran s Organization Freeze (PTAX-763) 35 ILCS 200/ Properties that qualify after assessment year 2001, the assessed value is frozen at 15% percent of the assessed value in the assessment year the property first qualifies. To qualify, a veterans organization must submit documentation which must contain the information required by the D of R, including a copy of the organization s congressional charter, the location or description of the property on which is located the principal building for the post, camp, or chapter, a written instrument evidencing that the organization is the record owner or has a legal or equitable interest in the property, an affidavit that the organization is liable for paying the real property taxes on the property, and the signature of the organization s chief presiding officer. The exemption needs to be applied for every year. THOSE WHO QUALIFY AND RECEIVE THIS EXEMPTION SHOULD BE AWARE THAT THIS DOES NOT FREEZE THE AMOUNT OF THE TAX BILL, ONLY THE EAV REMAINS AT THE FIXED AMOUNT. TAXING DISTRICT S LEVY MAY CHANGE AND THUS ALTER THE TAX BILL. Brief Eligibility Requirements: 1) Veterans organization must be chartered under federal law 2) Own and use property located 3) Principal building for post, camp, or chapter Historic Property Exemption This exemption is for owner-occupied residences that qualify for a preferential assessed value for an 8-year period of time. The property must be (1) owner occupied single family residence or an owner occupied multi family residence (2) tract, lot or parcel upon which it is located is individually listed on the National Register of Historic places or the Illinois Register of Historic Places (3) individually designated pursuant to an approved county or municipal landmark ordinance; or within a district listed on the National Register of Historic Places or designated pursuant to an approved county or municipal landmark ordinance (4) the residence is under substantial rehabilitation meaning interior or exterior rehabilitation work that preserves the historic building in a manner that significantly improves its condition. 34 P age

38 Solar Energy Exemption (PTAX-330) When a solar energy system has been installed in improvements on any property, the owner of that property is entitled to claim, by filing with the CCAO, an alternate valuation of those improvements. When a claim for alternate valuation is filed, the CCAO shall ascertain the value of the improvements as if equipped with a conventional heating or cooling system and the value of the improvements as equipped with the solar energy system. So long as the solar energy system is used in total or part as the means of utilizing solar energy improvements, the alternate valuation computed as the lesser of the two values ascertained under this paragraph shall be applied. When the solar energy system so valued ceases to be used as the means of heating or cooling those improvements, the owner of that property shall within 30 days notify the chief county assessment officer in writing by certified mail. Open Space Exemption (PTAX-334) Open space is considered land which had been used for open space for 3-years immediately preceding the year in which the assessment is made. Land is considered used for open space purposes if its more than 10 acres in area and (1) the land is actually and exclusively used for maintain or enhancing natural or scenic resources (2) protects air or streams or water supplies (3) promotes conservation of soil, wetlands, beaches, or marches including ground cover or planted perennial grasses, trees and shrubs and other natural perennial growth, and including any body of water, whether man-made or natural (4) conserves landscaped acres, such as public or private golf courses (5) enhances the value to the public of abutting or neighboring parks, forests, wildlife preservers, nature reservations, sanctuaries, or other open spaces, or preserves historic sites. Land is not considered used for open space purpose if it is used primarily for residential purposes. The person liable for taxes on land used for open space purposes must file a verified application requesting the additional open space valuation with the CCAO by June 30 th of each year for which that valuation is desired. 35 P age

39 Farmland Assessments Pursuant to the Property Tax Code 35 ILCS 200/ thru , farmland in Illinois is assessed for property tax purposes on the basis of its agricultural economic value. This value, commonly referred to as use-value, is based upon land use under average level management, relative productivity of soils, and the present worth of the net income accruing to the land from farm production. When used in connection with valuing land and buildings for an agricultural use, the state Property Tax Code considers property to be a farm if one of the following uses is the principal use: The growing and harvesting of crops. The feeding, breeding and management of livestock. Dairying or for any other agricultural or horticultural use or combination thereof; including, but not limited to, hay, grain, fruit, truck or vegetable crops, floriculture, mushroom growing, plant or tree nurseries, orchards, forestry, sod farming and greenhouses; Keeping, raising and feeding of livestock or poultry, including dairying, poultry, swine, sheep, beef cattle, ponies or horses, fur farming, bees, fish and wildlife farming. (See 35 ILCS 200/1-60) Also, to qualify for a farm assessment, the farm use must have been established for at least two years preceding the date of assessment. As the assessment date for 2017 is January 1, 2017, a qualifying property must have established a farm use as a principal use no later than January 1, (See 35 ILCS 200/10-110) In addition to these statutes, there have been several applicable decisions on this issue: The courts have ruled that it is the present use of the land which determines whether a property is entitled to a farmland classification for assessment purposes. (Bond County Board of Review v. Property Tax Appeal Board, App. 5 Dist. 2003, 277 Ill.Dec. 542, 343 Ill.App.3d 289, 796 N.E.2d 628.) In Senachwine Club v. Putnam County Board of Review (362 Ill. App. 3d 566, 3rd Dist. 2005), the court stated that a parcel of land may be classified as farmland provided that those portions of the property so classified are used solely for agricultural purposes, even if the farm is part of a parcel that has other uses. Citing Kankakee County Board of Review, 305 Ill. App. 3d 799 at 802 (3rd Dist. 1999). In order to receive a preferential farmland assessment, the property at issue must meet this statutory definition of a farm as defined above in the Property Tax Code. The Illinois Property Tax Appeal Board has drawn a distinction between a mere plan to farm land as opposed to actual farm use (In re: Buss Partnership/Rodney S. Buss, Docket No F-1, PTAB 2008). 36 Page

40 Finally, the property tax code requires that the definition of farm use does not include property which is primarily used for residential purposes even though some farm products may be grown or farm animals bred or fed on the property incidental to its primary use. In other words, if there is a residential use on a property (such as a singlefamily home), then farm assessment cannot be granted unless a majority (more than 50%) of the property has been established as farm use. For the 2017 assessment year, this means that the farm use must have been established on a majority of the property on or before January 1, In setting the assessment on a farm parcel, local assessing officials must consider four separate parts of the farm. Each of these parts and their statutorily prescribed method of assessment, are as follows: A. Farm Homesite. This is defined as that land on a farm parcel being used for residential purposes. The homesite is assessed as all other residential land in the county. The market value would be whatever comparable rural residential land is selling for in the area. This part of the farm parcel assessment is subject to county and state equalization factors. B. Farm Residence. This is to be assessed as all other residential improvements in the county. This part of the farm parcel assessment is also subject to county and state equalization factors. C. Farm Buildings. These are assessed at 33⅓% of their contributory value to the productivity of the farm. Contributory value considers the current use of the improvements and what that use adds to the overall productivity of the farming operation D. Farmland. This is assessed according to its soil productivity considering farmland use and factors which may detract from productivity. The state computes soil productivity index use-value assessment figures as a basis for the local assessment of individual parcels. Cropland is assessed according to the value of its adjusted soil productivity index (PI). Permanent pasture is assessed at one-third of its adjusted PI assessed value as cropland. Other farmland is assessed at one-sixth of its adjusted PI assessed value as cropland. Wasteland is assessed at its contributory value. For more detailed information on Farmland Assessment, the Department of Revenue has developed a variety of publication: Instructions for Farmland Assessments 122.pdf Preferential Assessments for Wooded Acreage Also covers Transitional Percentage Assessment, Conservation Stewardship, and Forestry Management 37 P age

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42 Certified Values for Assessment Year 2018 ($ per acre) Average Management PI Gross Income Non Land Production Costs Net Land Return Agricultural Economic Value Equalized Assessed Value * 2018 Certified Value 82 $ $ $ $2, $ $ $ $ $ $2, $ $ $ $ $ $2, $ $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $3, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $4, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ $ $ $ $5, $1, $ The capitalization rate is 4.44% percent. 10% Increase of 2017 certified value at PI 111 IS $26.46 *These values reflect the statutory changes to 35 ILCS 200/10 115(e) under Public Act *Farmland values are as certified by the Farmland Assessment Technical Advisory Board. Any differences in calculations are due to rounding at different stages of calculations. 39 P age

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