BOR Course

Board of Review —Basic Course

August 2007

PTAX-1-BR (R-08/07)

2 PTAX-1-BR — Board of Review — Basic Course

PTAX-1-BR (R-08/07)

PRINTED ON RECYCLED PAPERBY AUTHORITY OF THE STATE OF ILLINOIS

(75 copies - 08/07 - P.O. Number 2080068)

3PTAX-1-BR — Board of Review — Basic Course

Course 1-BR Outline

Board of Review — Basic Course

Glossary

Guide to Mathematical Terms and Equations

Unit 1 An Overview of the Property Tax Cycle and the Appeal Process

Unit 2 Duties, Responsibilities, and Procedures of theBoard of Review and the Property Tax Code

Unit 3 Using the Sales Comparison, or Market Approach, toSupport Board of Review Decisions

Unit 4 Using the Income Approach to Support Board ofReview Decisions

Unit 5 Using the Cost Approach to Support Board ofReview Decisions

Unit 6 Mass Appraisal and Residential Square Foot Schedules

Unit 7 Land Valuation

Unit 8 Farmland Valuation

Unit 9 Sales Ratio and Equalization

Unit 10 Instant Assessments

Unit 11 Exemptions

Unit 12 Ethics and Resources

Review

*Exam 50 multiple choice questions

* A score of 70 percent (35 correct answers) is necessary to pass this course.

i Course 1-BR Outline

ii

Illinois Department of Revenue

PTAX-1033 Course Evaluation

Please take a few minutes to complete this course evaluation form. Your opinions are important to us. We rely onthe information that you provide to help us meet the future education needs of the assessment community. If youneed additional space, please use the back of this form. Thank you for your cooperation and assistance.

Course: _________________________________ Instructor: _________________________________

1 What were the strengths of this course?

2 What were the weaknesses of this course? How could these weaknesses be corrected?

3 What are the instructor’s strengths?

4 What are the instructor’s weaknesses? How could these weaknesses be corrected?

5 Were the classroom facilities adequate? Describe any improvements needed.

6 What are your suggestions for new courses?

Send your completed form to: ATTN: REBECCA REDENBO 4-511 or email to: [email protected] DEPARTMENT OF REVENUE101 W JEFFERSON STSPRINGFIELD IL 62794-9033

PTAX-1033 (R-01/07)IL-492-4304

6 PTAX-1-BR — Board of Review — Basic Courseiv


Glossary — 1-BRAd valorem — according to value.

Ad valorem tax — a tax levied according to value.

Actual age — the number of years that have elapsed from the year ofconstruction to the present date.

Assessed value — the value placed upon property after multiplying itsmarket value by the level of assessment.

Assessment/sales ratio study — used to indicate the percentage relation-ship of the prior year’s equalized assessed value to actual market valuefor real property in certain categories and in geographical areas.

Building residual — the building value; sale price, less the lot value,equals building residual.

Capitalization — a mathematical process for converting the net incomeproduced by a property into an indication of value. (Present value offuture worth.) Used in the Income Approach to value.

Net income (I in the IRV formula) = IR x V

Capitalization rate — consists of the discount rate, recapture rate, andeffective tax rate. (R in the IRV formula)

Effective tax rate — the ratio of taxes billed to the market value,generally expressed as a percentage. It is found by multiplying thelevel of assessments by the current local (aggregate) tax rate. Itwould be applied to the full market value.

Discount rate — return ON investment (mortgage interest rate)

Recapture rate — return OF investment (involves depreciation)

Land capitalization rate = discount rate + effective tax rateBuilding capitalization rate = discount + recapture + effective taxrates

Coefficient of dispersion (COD) — average deviation of a group ofassessment ratios taken around the median; used to measure uniformity ofassessments.

CDU Rating — modifies the normal age depreciation of an improvementaccording to the appraiser’s determination of the improvement’s condi-tion, desirability, and utility.

Cost approach — calculating the cost of reproducing the improvements,subtracting accrued depreciation, and adding land value.

Cost factor — used to adjust the schedules in the manual for differences inlocal construction labor and material rates.

v Glossary


Depreciation — loss of value from any cause, i.e., physical depreciation,functional obsolescence, and economic obsolescence.

Depth factor — the factor used to adjust the front foot price of a lot be-cause the front portion of a lot is deemed more valuable than the rearportion.

Effective age — age of an improvement based on the improvement’s CDUrating; effective age does not always equal actual age.

Equalization factor — a factor applied to each jurisdiction so all jurisdic-tions assess property at the same level of market value.

Equalized assessed value (EAV) — assessed value multiplied by anyapplicable equalization factor equals EAV.

Front foot price — supposes that each foot of lot frontage is worth thesame dollar amount; used to indicate lot value.

Gross income multiplier (GIM) — the GIM is a unit of value used in thesales comparison approach. The GIM is calculated by dividing the salesprice (SP) by the potential gross income (PGI) or potential gross rent.Once the GIM is established,

Market value = GIM x PGI[from comparables] [of the subject]

Improvement — any structure attached to, lying upon or within the land,that may not be removed without physical stress.

Income approach — calculating the present worth of the income from anincome-producing property.

IRV formula — formula for income approach to value.I (income) = R (capitalization rate) x V (market value).

Legal description — a description in words and numbers judged legallysufficient to locate and identify a parcel of land.

Level of assessments — ratio of equalized assessed value to sale price.

Market value — most probable sale price of a property, in terms of moneyin a competitive and open market, assuming that the buyer and seller areacting prudently and knowledgeably, allowing sufficient time for the sale,and assuming that the transaction is not affected by undue pressures.

Mean — an arithmatic average.

Median — the middle value of a group of numbers after they have beenranked.

Mode — the number that occurs most frequently in a set of numbers.

vi Glossary


Principle of substitution — The informed buyer is not justified in payinganything more for a property than it would cost him to acqire an equallydesirable substitute property.

Property index number (PIN) — 14 numbers that reflect the geographicallocation, legal description, and special use of a parcel of land.

Property record card (PRC) — used to record individual property apprais-als used for assessment.

Quality grade — used to adjust schedules in the manual for differences inthe quality of construction materials and workmanship.

Replacement cost new (RCN) — represents current cost of replacing animprovement.

Rectangular survey system — also known as the Governmental SurveySystem, established in 1785; a system in which land is divided in a gridlike fashion consisting of principal meridians, baselines, townships,ranges, and sections.

Remaining economic life (REL) — period of time over which a prudentinvestor would reasonably expect to recapture his investment.

Sales comparison, or market approach — calculating the value of proper-ties by observing and analyzing the selling prices of comparable proper-ties.

vii Glossary


Guide to Mathematical Terms and EquationsThis guide explains mathematical terms and illustratesfrequently used formulas and equations. Proceed toUnit 1 if you feel proficient in your math skills and donot need to review this material.

Percentages and decimalsPercentage (%) denotes a standard of measurement thatrepresents a whole quantity divided into 100 equalparts. For example, 20 percent refers to 20 parts of atotal of 100 parts, which in terms of fractional values iswritten as 20/100.

Values are often written in percentages or decimals, andit is important to understand both the relationshipbetween the two and the process of converting one tothe other.

To convert from a percent to a decimal, divide the valueby 100, or simply move the decimal point two places tothe left. Divide 20 by 100, and it becomes .20. The resultis the same if the decimal point were moved two placesto the left. For example, 5% becomes .05. (A "0" must beadded to the left of the "5" to provide the second placebefore the decimal point (located 5.%) can be movedtwo places to the left in this example.) .05 is also read as5 hundredths or 5 parts of 100 parts. Similarly, 8 1/2%,or 8.5%, becomes .085.

To convert from a decimal to a percentage, multiply thevalue by 100, or simply move the decimal point twoplaces to the right. For example, .30 become 30%, .06becomes 6%, and .0975 becomes 9.75%.

viii Mathematical Terms and Equations


Exercise 1Converting decimals to percents and percents to decimals*

When converting from a percent to a decimal, divide by100 or move the decimal two places to the left.

10% = 10 ÷ 100 = .10

When converting from a decimal to a percent, multiplythe decimal by 100 or move the decimal two places tothe right.

.03125 x 100 = 3.125%.

Decimal Percent $/$100 AV

1 ____________ 12 ____________

2 ____________ 1.75 ____________

3 .0325 ____________ ____________

4 .0004 ____________ ____________

5 ____________ ____________ $2.55/$100

6 ____________ .06 ____________

7 .1234 ____________ ____________

8 ____________ ____________ $.033/$100

9 .0225 ____________ ____________

10 ____________ .450 ____________

ix Mathematical Terms and Equations


Percentages and decimals can be added, subtracted,multiplied, or divided.

Adding 20% .20+ 5% + .05

25% .25

Subtracting 20% .20- 5% - .05

15% .15

Multiplying 20% .20x 5% x .05

1% .0100

20 20.00x 5% x .05

1.00 1.0000

Dividing 20% ÷ 5% = 4.20 ÷ .05 = 420 ÷ 5% = 40020 ÷ .05 = 400

FactorsThe factoring process involves the adjustment of anumber by multiplication, resulting in a product eithermore or less than the original value.

There are many types of factors that may be used by anassessor to accurately value the individual characteris-tics of a parcel of property. Some examples includequality grade, remaining economic life (REL) and de-preciation (DEP), cost, and time.

The Illinois Real Property Appraisal Manual’s (IRPAM)replacement cost new (RCN) value of $96,500 must beadjusted to reflect a 4% increase in value due to a costfactor. To determine the factor to be used in this situa-tion, add the amount of the increase from 100%. 100%represents the original value.

$96,500 x 104% = $100,360 or $96,500 x 1.04 = $100,360x Mathematical Terms and Equations

Examplesof factoring


The IRPAM’s RCN value of $96,500 must be adjusted toreflect a 4% decrease in value due to a cost factor. Todetermine the factor to be used in this situation, sub-tract the amount of the decrease from 100%. 100% repre-sents the original value.

$96,500 x 96% = $92,640 or $96,500 x .96 = $92,640

Chain multiplicationChain multiplication is the process of multiplying aseries of numbers or factors by one another in order toproduce one adjusted number or factor.

Front feet x $/FF x depth factor = value of the site

50' x $100/FF x 1.04 = $5,200

Cost factor x design factor x neighborhood factor =adjustment factor

.96 x 1.22 x 1.15 = 1.346880 or 1.35

Land valuesThe assessor must place a separate assessment on boththe land, or site, and the improvements. Common landvalues that are used in this process are dollar per squarefoot values and dollar per acreage values. Before eitherdollar values can be determined, the total square foot-age of area, or the total acreage, must be calculated for thesite.

To determine the square footage of a site, multiply thelength of the site by the width of the site. L x W

For irregularly shaped sites, it may be necessary todivide the site into rectangles and triangles and add themtogether. The area of a triangle is found by multiplyingthe base by the height and dividing by 2. B x H

2

To convert total square footage into total acreage, dividethe square footage by 43,560, the total square footage inan acre.

xi Mathematical Terms and Equations

Examplesof factoring

Examplesof chainmultiplying


Exercise 2Land values*

Site shape Measurements Square footage Approx. acreage

1 Rectangular 400' x 800' ____________ ____________

2 Rectangular 320' x 480' ____________ ____________

3 Triangular 320' x 480' ____________ ____________

4 Triangular 150' x 180' ____________ ____________

5 Square 150' x 150' ____________ ____________

6 Triangular 600' x 900' ____________ ____________

LAR FormulaThe county clerk has the responsibility of calculating taxrates and extending taxes against individual properties.The county clerk must also ensure that no tax rate ex-ceeds any limitation that may be imposed by law.

Although the local assessors do not calculate tax ratesor extend property taxes, taxpayers often contact theassessor upon receipt of their tax bills.

A tax rate is calculated by dividing the levy by the taxbase for each taxing district. This mathematical processis referred to as the LAR formula. L

A x R

Levy (L)— This is the amount of money a taxing districtdetermines is necessary to raise from property taxes.

Tax base (A) — This is the amount of taxable EAV afterremoving all qualified exemptions and including allapplicable values for state-assessed property in thetaxing district.

Tax rate (R) — This is the percentage applied to thetaxable EAV in the taxing district.

xii Mathematical Terms and Equations

320,000 7.3 (7.34)

76,800 1.8 (1.76)


If any two values are known, the third value can easilybe determined with this formula. If you cover up theletter representing the component you are trying todetermine, the formula for determining the value ofthat component is left.

To find the levy, cover up the “L” in the formula so youare left with A x R .

Multiply the tax base “A” by the tax rate “R.”

If you know the levy and the tax rate, to find the taxbase, cover up the “A” in the formula so you are leftwith __ L__ .

R

Divide the levy “L” by the tax rate “R.”

To determine the tax rate, cover up the “R” in the for-mula so you are left with __L__ .

A

Divide the levy “L” by the tax base “A.”

To determine L, multiply A by R. For example: If ataxing body has a tax base of $25 million and a tax rateof 2%, or .02, the amount to be raised from propertytaxes is $500,000.

$25,000,000 x 2% (.02) = $500,000

To determine A, divide L by R. For example: If a taxingbody has a tax levy of $500,000 and a tax rate of 2%, or.02, the tax base is $25 million.

$500,000 = $25,000,000 2% (.02)

To determine R, divide L by A. For example: If a taxingbody has a levy of $500,000 and a tax base of $25 mil-lion, the tax rate is .02, 2%, or $2.00/$100 AV.

$500,000 = .02$25,000,000

I

A x R

L

R x R

L

A x V

xiii Mathematical Terms and Equations


Exercise 3Tax rates*

L A R

1 $660,000 $30,000,000 ____________

2 ____________ $10,000,000 4.0000%

3 $55,000 ____________ .6875%

4 ____________ $95,480,000 2.36l5%

5 $200,000 $50,000,000 ____________

6 $900,000 ____________ .7500%

7 $44,600 $54,257,900 ____________

8 $150,000 ____________ .3550%

9 ____________ $12,750,000 .6544%

Individual tax billThere are several processes involving different localgovernment officials that are followed in determiningan individual tax bill for most types of property.

1 Property is valued by the assessor to determine fairmarket value (MV).

2 The assessor determines the assessed value (AV) bydividing the fair market value by 3, or multiplyingby 33.33% (.3333).

3 Equalization factors (township, class, area, and statemultipliers) may be applied to the assessed value toderive the equalized assessed value (EAV) for theparcel of property.

xiv Mathematical Terms and Equations

2.2000%(or .022000)

$400,000

$8,000,000


4 After all qualified exemptions, such as varioushomestead exemptions, are deducted from the EAV,the remaining value becomes the taxable EAV.

5 The taxable EAV is multiplied by the applicable taxrate for each of the taxing districts in which theproperty is situated.

6 All of the amounts due each taxing district areadded to obtain a total tax bill. Another way toproduce the total tax bill is to multiply the taxableEAV by the aggregate tax rate. The aggregate rate isthe total of all the district rates in which theproperty is situated.

Exercise 4Tax bills*

Determine the tax bill on a residential property with a market valueof $96,750, and an EAV of $32,250. The property is situated in sixtaxing districts. Compute the tax rate for each taxing district(levy ÷ taxable EAV) and then determine the amount of tax(taxable EAV x rate).

District Levy Taxable EAV Rate Tax

1 School $996,173 $31,425,000 ________ ________2 County $473,630 $94,726,000 ________ ________3 Township $178,994 $25,482,000 _______% $_______4 City $144,661 $15,272,000 _______% $_______5 Fire $110,707 $37,846,000 _______% $_______6 Library $76,360 $15,272,000 _______% $_______

Aggregate tax rate = ________% x taxable EAV $______________=

Tax bill $______________

Effective tax rate = taxes billed = __________ = ______% market value

3.1700 % $ 1,022.33.5000 % $ 161.25

xv Mathematical Terms and Equations


Exercise 5

LA x R

1 If the levy for a local taxing body is $500,000 and the tax rate forthe local taxing body is 2.7500%, the equalized assessedvaluation for the local taxing body’s district will be:

____________________

2 The equalized assessed valuation for a local taxing body is$32,427,500 and the tax rate is 3.9860%. The levy for this taxingbody will be:

____________________

3 A taxing body has levied for $40,000. The maximum tax rate forthe taxing body is 30 cents/$100 equalized assessed value. Thedistrict’s equalized assessed valuation is $3,750,000. What is theamount of money the taxing body can expect to receive?

____________________

4 The equalized assessed valuation for a local taxing body is$125,000, the district has levied for $75,000, and the maximumtax rate is $1.25/$100 equalized assessed value. What is theamount of money the taxing body will receive?

____________________

xvi Mathematical Terms and Equations


xvii Mathematical Terms and Equations

Data BankS/F Ground AreaEff. Perim L/FC/F of Bldg.S/F Wall AreaWall Ratio

Sty. Schl.

Formulas

Income approach

Net income gross rent - expenses

Gross income multiplier sales price(GIM) gross rent

Unit price sales priceno. of units

Room price sales priceno. of rooms

Adjusted sales price sales price (+ or -) adjustments

Adjusted unit price adjusted sales priceno. of units

Adjusted room price adjusted sales priceno. of rooms

Average apartment unit size SFFA* of finished portion of buildingno. of units

*Square foot of floor area (SFFA) = SFGA x no. of floors

• SFGA — square feet of ground area L x W• EP — effective perimeter L + W + L + W(Party walls are factored at 60 percent of thelength of the wall.)

• CF — cubic feet SFGA x OH• SFWA — square feet of wall area EP x OH• WR — wall ratio CF ÷ SFWA• OH — overall height

(Basement floor to the eaves.)

I

R x V


xviii Mathematical Terms and Equations

21PTAX-1-BR — Board of Review — Basic Course1-1 Unit 1: An Overview of the Property Tax Cycle and the Appeal Process

Learningobjectives

Terms andconcepts

Unit 1

An Overview of the Property Tax Cycleand the Appeal Process

This unit covers the history of property taxation, givesan overview of the property tax system, the propertytax cycle, and the appeal process.

The purpose of this unit is to provide a basic under-standing of property taxation, the establishment ofvalue for tax purposes, and the two-year property taxcycle, beginning with the creation of the assessmentbooks and concluding with the sale of a lien on realestate due to nonpayment of taxes.

After completing the assigned readings, you should beable to

• outline the flow of the assessment books, from thecreation of the books through their use in thepreparation of the collector’s books,

• identify the roles various township and countyofficials play in the property tax cycle, and

• identify established completion dates for variousprocesses.

Real propertyPersonal propertyAd valorem taxMarket valueAssessment cycleAssessmentStatutory level of assessmentState-assessed propertyAssessment dateEqualized assessed value (EAV)Budget and levy cycleLevy

22 PTAX-1-BR — Board of Review — Basic Course1-2 Unit 1: An Overview of the Property Tax Cycle and the Appeal Process

An overview of property taxWhen Illinois became a state in 1818, the constitutioncontained a provision for taxing property in directproportion to the value of property. From 1818 to 1930,amendments to the constitution provided the state withvarious powers concerning property taxation. The lastyear the state levied real estate taxes was 1932. Sincethen, property taxes have been levied at the local level.

Property tax is governed by the Property Tax Code,35 ILCS 200/1-1 through 32-20. Property tax is a localtax assessed by the county or township. Revenues fromproperty tax are collected and spent at the local level.The department issues guidelines, determines countyequalization factors, grants or denies non-homesteadexemptions, distributes assessment manuals, providestechnical assistance and assessment training to localassessing officials.

Property can be divided into two classes — real andpersonal. Real property is land and anything perma-nently attached to the land, e.g., buildings and fixturespermanently or constructively attached to a building.Personal property is all property that is not real prop-erty. Some examples of personal property include auto-mobiles, livestock, money, and furniture.

All owners of real property must pay property taxesunless specifically exempted by state law. Owners ofbusiness, industrial, agricultural, and residential prop-erty all pay property taxes directly. Renters also contrib-ute to the property taxes, but do so indirectly throughtheir rent. Landlords consider taxes as a cost of doingbusiness and adjust their rents to cover this cost.

In Illinois, taxpayers now pay property taxes only ontheir real property. Personal property tax for individualswas abolished by the 1970 Illinois Constitution. Corpo-rations, partnerships, limited partnerships, joint ven-tures, and similar entities continued to pay taxes onpersonal property until 1979. These business entitiesnow pay a replacement tax on income or invested capi-tal. Business entities pay this tax to the department,


1-3 Unit 1: An Overview of the Property Tax Cycle and the Appeal Process

who distributes the monies to the local taxing districtsin proportion to the amount received previously fromthe personal property tax.

Property taxes are raised, spent, and distributed locally.Property taxation produces more than three-fourths ofthe total tax revenue and finances a major part of theservices provided by local governmental units whichbenefit citizens and their property. The largest share ofthe property tax goes to school districts.

Property tax is a tax that is based on the value of theproperty owned, and is assessed according to its value.For this reason it is often called an ad valorem tax.Value is a complicated concept with many definitions.Most real property in Illinois must be assessed based onits value in the open market. Market value is the mostprobable sale price of a property in terms of money in acompetitive and open market, assuming that the buyerand seller are acting prudently and knowledgeably,allowing sufficient time for the sale, and assuming thatthe transaction is not affected by undue pressures.Appraisals for ad valorem tax purposes shall assumethe property is owned in “fee simple” meaning that thetotal bundle of rights is considered to be intact.

The determination of market value for tax purposes isthe job of assessors, who use one or more of the follow-ing three basic approaches to estimate market value:

1 sales comparison, or market approach —calculating the value of properties by observing andanalyzing the selling prices of comparable properties;

2 cost approach — calculating the cost of reproducingthe improvements, subtracting accrueddepreciation, and adding land value; and

3 income approach — calculating the present worthof the income from an income-producing property.

The determination of market value requires skilled andknowledgeable board of review members. To encourageassessing officials to improve their knowledge and skillin determining value, the state pays a stipend to anyCCAO, assessor, deputy assessor, or member of a boardof review, who earn certain professional designationsand continue their education each year.


The property tax cycleThe property tax cycle—from the assessment of propertyto the collection and distribution of taxes—takes nearlytwo years for most property. Some steps take placeconcurrently, but basically it can be divided into six steps.

1 assessment 4 levy2 review 5 extension3 equalization 6 collection and distribution

The assessment cycleThe assessment cycle begins with the creation of theassessment books and ends with the review of the as-sessments by the board of review. The assessment cycletakes from nine to twelve months to complete, depend-ing on the size of the county and the number of assess-ment complaints filed with each board of review. Thesteps in the assessment cycle are

1 assessment,2 review, and3 equalization.

An assessment involves four steps1 identifying the real property within a jurisdiction,2 listing it,3 appraising it, and4 placing a value for it on the tax rolls.

This value is known as the assessment and is the basisfor determining what portion of the total tax burdeneach property owner will bear. In Illinois, the statutoryassessment level is one-third or 33 1/3 percent of marketvalue, unless set otherwise by law.

Most property is locally assessed by township andcounty officials. In all counties except Cook and the 17commission counties, township or multi-townshipassessors have primary assessment responsibility. There

Step 1:Assessment


are over 900 elected assessors in Illinois. Assessors mustqualify to hold office on the basis of prescribed coursework in assessment techniques.

In the 17 commission counties — Alexander, Calhoun,Edwards, Hardin, Johnson, Massac, Menard, Morgan,Monroe, Perry, Pope, Pulaski, Randolph, Scott, Union,Wabash, and Williamson — that have no township levelof government, the supervisor of assessments has theprimary assessment responsibility. In Cook County, thecounty assessor takes the primary responsibility for theassessment of property.

Supervisors of assessments and county assessors arereferred to as chief county assessment officers (CCAO).The work of township and multi-township assessors issubject to review and, if necessary, revision by the su-pervisor of assessments. The supervisor of assessmentsis usually appointed by the county board. The supervi-sor of assessments must have two years of relevantexperience, pass a qualifying examination administeredby the department, and possess a professional appraisaldesignation specified in the statutes. Some countieshave an elected county assessor or supervisor of assess-ments.

A few types of property are assessed by the state, suchas railroad operating property, railroad right-of-wayand track, and pollution-control facilities that have beencertified as such by the Illinois Environmental Protec-tion Agency. The value of state-assessed property is asmall percentage of the value of all taxable property.State-assessed property is valued by the departmentand these assessments are certified to the appropriatecounty clerks for inclusion in local tax bases.

In Illinois, property is to be viewed, inspected, andrevalued once every four years in all counties but Cook,which has a three-year reassessment cycle. Betweenthese quadrennial assessments, assessors may revalueany property whose value has changed or is incorrect.Farm acreage must be reassessed annually.



The assessment date in Illinois is January 1. On thatdate, the assessment cycle begins for all real propertywhich must be valued as to its condition at that pointand time. The Property Tax Code requires that on orbefore this date, the CCAO call on the county clerk toreceive the assessment books listing all parcels of realestate to be assessed in each of the townships in thecounty. The assessment book has columns for the prop-erty index number (PIN), the name of owner, the assess-ment by the township assessor, the assessment by theCCAO, and the assessment by the board of review foreach parcel. The CCAO conducts a meeting with thetownship assessors to give instructions to the assessors,inform them of any changes, and give them the assess-ment books.

Procedures for the establishment of farmland assess-ments begin on May 1, in the year prior to the assess-ment date, with the certification of proposed valuesfrom the department to the CCAO. These values areused to make the assessments for the assessment yearbeginning on the following January 1.

In most non-commission counties, township and multi-township assessors should complete their assessmentsby April 15. After assessors have certified their assess-ment books as being correct and complete, they returnthem to the CCAO, who has until the third Monday inJune to examine the books and make any changes nec-essary to achieve fairness. Assessment books are thengiven to the county board of review for subsequentreview and equalization.

Taxpayers have the right to inspect property recordcards and other assessment records for any property,subject to reasonable rules and regulations establishedby local authorities.

Review and intra-county equalization are performed bythe CCAO and the board of review. While both theCCAO and the board of review have the power toequalize, normally only one will do so. Review at this


Steps 2 and 3:Review andequalization


level is generally an informal review of the assessmentroll. Formal review on a complaint by the taxpayertakes place at the board of review.

The CCAO examines the assessment book and makesany changes that will make assessments more equitable.He or she may equalize assessments by applying afactor to all assessments for either a township, an area,or a class of property. All assessments that have beenchanged from the previous assessment year must bepublished in a newspaper. However, only the equaliza-tion factor must be published for properties that hadassessment changes due solely to equalization. Indi-vidual notices must be mailed to taxpayers whose as-sessments were changed for any reason other than anequalization factor.

Any assessment change made by the CCAO is enteredin his or her column in the assessment books. TheCCAO certifies the assessment books to the countyboard of review by the third Monday in June, and com-piles and sends a tentative abstract of assessments tothe department. The department uses the informationon the abstract to determine if the level of assessmentshas changed since the data for the department’s salesratio study was collected. The department then certifiesa tentative inter-county equalization factor, often calleda “tentative state multiplier,” to the CCAO and countyclerk and holds a public hearing on the factor.

The board of review convenes on the first Monday inJune in most counties and completes its work during theperiod of September through December, depending onthe population of the county and the number of com-plaints filed with the board. The board has several im-portant duties in the assessment cycle. For prior years,the board assesses property that was inadvertentlyomitted from the assessment rolls. They hear the formalcomplaints of taxpayers and make any necessary assess-ment changes. The board can also make individualassessment changes on its own volition. However, thetaxpayer and township assessor must be notified ofthese changes and given an opportunity to be heardbefore the board.




In addition, the board reviews applications from prop-erty owners, such as churches, schools, and local gov-ernmental units who believe their properties should beexempt from property taxes. The board makes a recom-mendation to the department as to whether these prop-erties should be exempt. The department makes thefinal determination. The board of review also equalizesassessments by township, area, or class of property andsends a report on equalization to the department.

Any assessment changes are entered in the board ofreview’s column in the assessment books. Any changeby the board of review, whether it is an individualassessment change or a change resulting from equaliza-tion, must be published and individual notices must besent to the affected taxpayers. The board of review thencertifies the assessment books to the county clerk.

Completion of the assessment cycleAfter the county clerk receives the assessment booksfrom the board of review, the clerk prepares an abstractof assessments that the department uses in the compu-tation of the final equalization factor for the county.Once the county clerk receives the department’s certifi-cation of the final equalization factor and the certifica-tion of the state-assessed railroad operating propertyand pollution control facilities, he or she applies thefinal equalization factor to the local assessments ascertified by the board of review. This results in theequalized assessed value (EAV). These EAVs are thefinal values used to compute tax rates and to extendtaxes. This completes the assessment cycle.

Assessment cycle

Prepares two sets of real estate books and delivers to theCCAO by January 1.

Meets with township assessors before January 1 andestablishes guidelines; delivers one set of books totownship.

County clerk

CCAO


Values real estate as of January 1 and returns books toCCAO by April 15; can equalize.

1 Reviews assessments made by township assessors;makes changes.

2 Equalizes assessments within county by class, byarea, or by township.

3 Mails change of assessment notices to taxpayers.4 Publishes changes in newspaper of general circulation.5 Delivers books to board of review by the third

Monday in June.6 Prepares tentative abstract of assessment report;

mails report to the department.

Develops tentative equalization factor; publishes factorin newspaper.Holds public hearing.

1 Assesses omitted property.2 Acts on non-homestead exemptions and mails to

department for approval.3 Hears complaints and makes assessment changes on

any property when deemed necessary.4 Mails change of assessment notices to taxpayers.5 Equalizes assessments within county by class or

area, if necessary.6 Delivers books to county clerk.7 Mails report on equalization to department.8 Publishes changes in newspaper of general

circulation.

Prepares final abstract of assessments and mails todepartment.

Certifies final equalization factor and mails to countyclerk.

Applies equalization factor to all local assessments,except farmland, coal rights, farm buildings, and state-assessed properties.

Certifies state assessments and mails to county clerk.

Totals the EAV for each taxing district.


Township assessor

CCAO

Department of Revenue

Board of review

County clerk


County clerk


County clerk


Budget and levy cycleWhile the assessment cycle determines the allocation ofthe tax burden among property owners, the budget andlevy cycle determines the total amount of property taxto be allocated to the property owners. The three stepsin the budget and levy cycle are

1 levy,2 extension, and3 collection and distribution.

The budget and levy cycle begins in the fall of the as-sessment year when most boards of review are still insession. At this time, taxing districts have generallydetermined their budgets for the next fiscal year andhave held a public hearing on this budget. Taxpayerswho are concerned with the amount of property taxdistributed to taxing districts should attend these publichearings and voice their opinions concerning how muchmoney will be needed from the property tax.

After the budget is approved, the taxing districts canthen calculate the amount of revenue needed from theproperty tax. This amount is certified to the countyclerk as the property tax levy on or before the last Tues-day in December. The amount levied is the amount thattaxpayers will pay on their property tax bills in thefollowing year.

Once the assessment cycle is complete, the county clerkreceives the assessment books from the board of reviewand applies the county equalization factor from thedepartment to the individual assessments. With thisinformation, and the levies received from the taxingdistricts, the county clerk proceeds with the extension oftaxes. Extension is a two-step process that includes thecomputation of tax rates and the application of thoserates to the EAVs of the individual parcels of real estate.


Step 1: Levy

Step 2: Extension


In the first step, tax rates are computed by dividing ataxing district’s levy by the total EAV of all parcels ofproperty in the taxing district. Some tax rates are subjectto statutory maximums. If the calculated rate is abovethe maximum rate, the county clerk uses the maximumrate.

Levy = $1,000

EAV of propertyin the district = $100,000

Tax rate = LevyEAV

Tax rate = $1000$100,000

Tax rate = .01 or 1 percent

Tax rates are normally expressed in dollars per $100 ofEAV. In the example above, the tax rate is $1/$100 ofEAV, or $1 in taxes for each $100 of EAV.

In the second step of the extension process, the indi-vidual tax bills are extended in the collector’s book bymultiplying the EAV of each property by the sum of thetax rates for all districts in which the property is lo-cated. This sum is called the aggregate tax rate. A typi-cal aggregate rate would include rates for the county,township, school district, and municipality, and couldalso include rates for a park district, fire protectiondistrict, library district, etc., depending on where theproperty is located.

Assume the property’s aggregate tax rate is $7.00/$100and the property’s EAV is $20,000.

Tax bill = EAV x aggregate tax rate

Tax bill = $20,000 x $7/$100 (or .07)

Tax bill = $1,400

For this example, the collector’s books would normallyshow an abbreviated legal description of the property,


Exampleof taxextension

Examplecomputationof tax rate


the owner’s name, the property index number (PIN),the EAV of $20,000, the tax code that indicates whatcombination of taxing districts the property is locatedin, the aggregate tax rate of $7.00/$100, the tax bill intwo equal installments of $700 each, and spaces to enterthe payments for the two installments.

The statutory date for the delivery of the collector’sbooks from the county clerk to the county treasurer,who also serves as the ex officio county collector, is De-cember 31 of the assessment year. As a practical matter,the collector’s books are not normally given to thecounty treasurer until March or April of the year follow-ing the assessment year, since the levies are not dueuntil the last Tuesday in December and some boards ofreview adjourn in December or later. This is 15 to 16months into the property tax cycle.

The county treasurer prepares a property tax bill foreach property listed in the collector’s books. The bill ismailed by May 1 of the year following the assessmentyear. For counties that use a two-installment method,the first installment is due by June 1, and the secondinstallment is due by September 1. Once the treasurerbegins receiving money from either installment, he orshe distributes the monies to the appropriate taxingdistricts.

Soon after September 1, the county treasurer prepares alist of properties for which taxes have not been paid.This delinquent tax list is published in a newspaper,and notices are sent to the owners of the properties.These notices specify that the treasurer will apply to thecircuit court for a judgment against the property fordelinquent taxes. If taxes remain unpaid, the court willorder a lien to be sold at the tax sale in the amount ofthe unpaid property taxes, interest, penalty, and fees.

The tax sale usually occurs in late October, approxi-mately 22 months into the property tax cycle, with thecounty clerk and county treasurer presiding. A lien onthe property is sold through a bidding process in which

Step 3:Collection anddistribution


bidders, also called tax buyers, state the percent ofinterest for which they are willing to purchase the lien,starting at 18 percent per 6 months, and going loweruntil the lowest bidder purchases the lien. The taxbuyer pays the amount of the lien and receives a certifi-cate of purchase from the county clerk. The countytreasurer then distributes revenues from the tax sale tothe taxing districts.

Once the lien is sold, the property owner may redeem itby paying to the county clerk the amount of the lien,interest, penalty, and fees. The amount of the lien andinterest is then paid by the county to the tax buyer, whomust surrender the certificate of purchase. A tax buyermay eventually obtain a tax deed for the property if thetax lien is not redeemed.

The table on the following page shows the budget andlevy cycle.



Budget and levy cycle

1 Prepares tentative budget.2 Publishes notice of public hearing; puts tentative

budget on display 30 days before public hearing.3 Holds public hearing.4 Passes budget with changes in form of ordinance.5 If necessary, makes truth-in-taxation publication

and holds hearing.6 Gives certificate of levy to county clerk by the last

Tuesday in December.

1 Calculates tax rates and computes aggregate taxrate for each combination of taxing districts.

2 Extends taxes on total EAV in each taxing districtand enters the amounts in the collector’s books.

3 Prepares and delivers collector’s books to countytreasurer by December 31.

1 Prepares and mails tax bills by May 1.*2 Collects first installment for real estate by June 1.*3 Distributes tax money proportionately to taxing

districts as money is collected.4 Collects second installment for real estate by

September 1.*5 Prepares delinquent tax list and sends a notice of

application for judgment on real estate.

Pronounces judgment for sale of a lien on real estatedue to nonpayment of taxes.Rules on tax objections.

Administers sale of lien on real estate due to nonpay-ment of taxes.

* For counties that use accelerated billing, the estimatedbill is mailed by January 31; the first installment is dueby March 1 (or the date provided in the county ordi-nance or resolution); the last installment is normallydue by August 1. Counties can also adopt a four-install-ment payment schedule.

Taxing body

County clerk

Countytreasurer(collector)

Circuit court

County clerkand treasurer


Property Assessment AppealsProperty taxes are levied, collected, and spent locally tofinance a major part of the services that local units ofgovernment provide to their citizens. Since property isassessed at the local level, the department has no directinvolvement in the assessment appeal process. Thefollowing is a general guide to the assessment appealprocess in Illinois.

When going through the appeal process the propertyowner is appealing the assessed value of the property,not the tax bill. The amount of the tax bill is determinedby the tax rates that are applied to the assesssment byvarious taxing districts, such as schools, parks, libraries.If the assessment is to increase the county must publishthe change in a local newspaper. Tax rates are not anissue in the appeal process, only the amount of theassessment. Once the tax bill is received, it is generallytoo late to make an appeal for that year’s assessment.

A formal complaint may be filed based on any of thefollowing claims:

• The assessor’s market value is higher than actualmarket value. This claim can be supported if theproperty has recently been purchased on the openmarket or if a professional appraisal is supplied.

• The assessed value is at a higher percentage ofmarket value for the property than the prevailingtownship or county median level, as shown in anassessment/sales ratio study.

• The assessment is based on inaccurate information,such as an incorrect measurement of a lot or building.

• The assessment is higher than those of similarneighboring properties.

If a property owner has a complaint, the local assessingofficial should be the first person contacted. An assessorwho still has assessment books for a given year cancorrect any assessment. Calling an erroneous assess-ment to the assessor’s attention early in the year may

Reasons foran appeal


Informal appeal


Formal appeal


Steps in theappeal ofassessments

result in a correction without using the formal appealprocess. Property owners should contact their townshipor county supervisor of assessments for information.

In Cook County, the township and the Cook Countyassessor’s office will review assessments. Propertyowners should contact the county assessor’s office forinformation regarding rules for filing assessed valuationcomplaints.

If the informal appeal is unsuccessful, the propertyowner should proceed with a formal appeal to thereviewing board in the county in which the property islocated.

An appeal of assessment, other than land or farm build-ings, has seven steps.

1 Determine the fair market value for the property.

2 Determine the prevailing assessment level in thejurisdiction.

3 Obtain the assessed valuation of the property.

4 Discuss the assessment with the assessor.

5 Determine the basis for the formal complaint.

6 File a written complaint with the board of review.

7 Present evidence of unfair assessment at the hearingto the board of review. If a property owner isdissatisfied with the board’s decision, the owner canappeal the decision to the State Property Tax AppealBoard, in writing, or file a tax objection complaint incircuit court.

The local assessing official should be contacted forinformation regarding the steps in appealing a farmland or farm building assessment.

37PTAX-1-BR — Board of Review — Basic Course1-17 Unit 1: An Overview of the Property Tax Cycle and the Appeal Process

Evidence needed To support a claim of an unfair assessment, supportingevidence is required. Some evidence may be obtainedfrom the township or county assessing official’s office,from a professional appraiser, or through research.Pertinent evidence for nonfarm property may includesome or all of the following:

• a copy of the property record card (PRC) andphotograph for the property under appeal,

• a copy of Form PTAX-203, Real Estate TransferDeclaration, a deed, or a contract for purchase,

• an appraisal of the property,• a list of recent sales of comparable properties,

including photographs, PRCs, and evidence of thesale prices,

• a photograph of elements detracting from the valueof the property not shown on the PRC and anestimate, in terms of dollars, of their negative effecton the market value, and

• a copy of PRCs and photographs of similar orneighboring properties.

The department provides assistance with the appraisalof commercial and industrial properties having anassessment, (prior to equalization by the department) of$350,000 or more, for counties of less than 3 millioninhabitants. This assistance is available to assessors andCCAOs who have a complaint or appeal of a propertypending before the board of review or State Property TaxAppeal Board.

A written agreement must be reached between thedepartment and the assessing official making the re-quest. The agreement must specify all of the projectdetails.

The department provides information regarding:• comparable sales data,• appraisal techniques,• the Illinois Real Property Appraisal Manual (IRPAM),• coal and mineral assessments, and• the assessment of pollution-control facilities and

railroad operating property, which is state-assessedproperty.

Additionalassistance available


Role of the board of reviewSection 16-55 of the Property Tax Code states “On writ-ten complaint that any property is overassessed orunderassessed, the board shall review the assessment,and correct it, as appears to be just, but in no case shallthe property be assessed at a higher percentage of faircash value than other property in the assessment dis-trict prior to equalization by the board or the depart-ment.”

Reviewing assessment complaints is perhaps the mostimportant function performed by the board during itssession. A great deal of time, energy, and resources isrequired to ensure that a fair sharing of the tax burdenthrough equity of assessments is achieved throughoutthe jurisdiction.

As board of review members, it is very important tohave a broad knowledge of all aspects of the valuationand appeal processes so that you can make informeddecisions. After all, the board of review does have thefinal voice in determining the value of property at thecounty level.

SummaryProperty is divided into two classes - real and personal.

Ad valorem means according to value. Real property inIllinois is assessed according to value, therefore it is anad valorem tax.

Market value is the most probable sale price of a prop-erty in terms of money in a competitive and open mar-ket, assuming that the buyer and seller are acting pru-dently and knowledgeably, allowing sufficient time forthe sale, and assuming that the transaction is not af-fected by undue pressures.

The three approaches to value are the sales comparisonor market approach, the cost approach, and the incomeapproach.



Property is assessed according to its condition on Janu-ary 1 of each year.

The CCAO reviews assessments made by townshipassessors and makes changes when deemed necessary.

The board of review hears complaints and makeschanges to assessments when deemed necessary. Theboard of review makes the final decision on propertyvalues at the county level.

The county clerk calculates tax rates and extends taxeson individual parcels of property.

The county treasurer prepares and mails tax bills. Iftaxes are not paid on time, the treasurer prepares adelinquent tax list and publishes a notice of applicationto the court for judgment against the property for delin-quent taxes, interest, and penalties which results in alein being placed on the affected property. The countyclerk and the treasurer then administer a sale of the lienat a tax sale each year. Only the lien for unpaid taxes,interest, and penalties is sold, not the real estate.


Notes


Unit 1Review questions

1 Define ad valorem tax.

________________________________________________

________________________________________________

________________________________________________

2 _____________________________ is the major source oftax revenue for local governments.

3 What are the two classifications of property?

1 ____________________________

2 ____________________________

4 The largest share of property tax goes to _______________.

5 List the three approaches to value.

1 ____________________________

2 ____________________________

3 ____________________________

6 What four steps are involved in the assessment of anyproperty?

1 ____________________________

2 ____________________________

3 ____________________________

4 ____________________________

7 What two types of properties are assessed by the state?

1 ____________________________

2 ____________________________



8 What happens if an individual does not pay his taxes?

________________________________________________

________________________________________________

________________________________________________

9 Who has the statutory authority to review assessments madeby the township assessor and make changes when deemednecessary?

1 ____________________________

2 ____________________________

10 List in order, the offices that actually handle the assessmentbooks, from the time they are created until the taxes areextended.

1 ____________________________

2 ____________________________

3 ____________________________

4 ____________________________

5 ____________________________

6 ____________________________

11 Property is valued as to its condition on __________________ ,the assessment date.

12 The __________________ makes the final decision on propertyvalues at the county level.



43PTAX-1-BR — Board of Review — Basic Course2-1 Unit 2: Duties, Responsibilities, and Procedures of Boards of Review and the Property Tax Code

Terms andconcepts

Learningobjectives

Unit 2

Duties, Responsibilities, andProcedures of Boards of Reviewand the Property Tax Code

This unit covers the general duties of the members ofthe boards of review and the statutory authority forperforming those duties. Various articles and sections ofthe Property Tax Code are also featured.

The purpose of this unit is to provide a basic under-standing of the responsibilities of the board of reviewand show where to look in the Property Tax Code forguidance in performing those duties.


• identify the basic duties and responsibilities ofboards of review, and

• have a general understanding of the variousprovisions related to those duties in the PropertyTax Code and where to locate them.

The Property Tax CodeArticle 6 - Boards of ReviewArticle 9 - General Valuation ProceduresArticle 12 - Assessment Notice and Publication ProvisionsArticle 16 - Review of Assessment DecisionsArticle 25 - Penalties


2-2 Unit 2: Duties, Responsibilities, and Procedures of Boards of Review and the Property Tax Code

The primary duty

The fourquestions

Duties, responsibilities, and procedures for boards ofreview

The board of review is the final local authority with thepower to ensure a uniform and equitable local propertyassessment.

Once an assessment is completed, the township assessorno longer has jurisdiction over the assessment for thatparticular year. The township assessor returns the as-sessment books to the chief county assessment officer(CCAO), who is empowered to make necessary revi-sions before the assessment changes are published.Once the assessments are published, the books arecertified to the board of review.

The primary duty of the board of review is to examineand review the assessment roll to determine that theassessment work was accurately completed. In addi-tion, it is the board’s responsibility to review the degreeof uniformity between individual assessments, assess-ment jurisdictions, and classes of property, and makethe necessary corrections to ensure uniform results.This, in turn, ensures that the tax burden is equitablyand uniformly distributed among all taxpayers within aparticular taxing district.

The board of review must address four questions.

1 Is all of the taxable property listed on theassessment roll?

2 Is comparable property valued similarly?

3 Is the median level of assessment uniform betweenall classes of property in all assessment districts?

4 What property should be exempt from propertytaxes because of its use or ownership?



Other duties ofthe board ofreview

The duties of the board of review include the following:

1 Raise individual assessments when it is determinedthe assessments are too low. (After notice to thetaxpayer and an opportunity for a hearing.)

2 Lower individual assessments when it is determinedthe assessments are too high. (After notice to thetaxpayer and CCAO in accordance with Section16-55 of the Property Tax Code.)

3 Add taxable property to the roll. (After notice to thetaxpayer and an opportunity for hearing, when realproperty has been omitted for the current or prioryears.)

4 Determine the exemption of homestead property.

5 Assess property no longer exempt from taxation.

6 Equalize assessments between townships, areas,and classes of property.

Note: In all six of the above duties, the board of reviewmay act either on its own motion or on the complaint ofa property owner or a taxing body.

7 Review non-homestead exemption applications andmake recommendation to the department for finaldetermination.

8 Boards of review are required to publish, bytownship, a list of changes they have made inassessments or certificates of error in accordancewith Section 12-60 and Section 12-45 of the PropertyTax Code, within 30 days of adjournment.



Rules published by boards of reviewSection 9-5 of the Property Tax Code provides thatboards of review “shall make and publish reasonablerules for the guidance of persons doing business withthem and for the orderly dispatch of business.” Thequantity and complexity of real property assessmentsvary tremendously between counties. Therefore, somecounties may need very detailed rules or procedures,while others can get by with simple rules.

Examples of the department’s guidelines follow.

Rules governing hearings before the board of review of______________________ County for the year ________

1 Place of meeting

Regular meetings of the board of review of_____________ County will be held at the court-house in the city of ___________, Illinois. Meetingsmay be held in other parts of the county at thediscretion of the board.

2 Time of meeting

The board will convene on the ____________ day ofJune and will adjourn from day to day as may benecessary. The hours of the meeting shall be from______ a.m. to ______ p.m.

3 Order of business

At the hour appointed the chairman shall call themembers to order and proceed with the followingroutine of business.a Approval of minutes of preceding meeting.b Filing of complaints and petitions.c Reading of petitions.d Consideration of petitions.e Consideration of proposals to equalize

assessments between townships or betweenclasses of property.

f Hearing of owners or their qualified agents.


4 Time of filing complaints

All complaints regarding property that isoverassessed or underassessed under Section 16-55of the code must be filed with the board of reviewon or before the August 10 in counties with fewerthan 150,000 inhabitants and on or before Septem-ber 10 in counties with 150,000 or more, but lessthan 3,000,000 inhabitants.

However, if the assessment books have not beenreceived by the board of review by July 10 in coun-ties with fewer than 150,000, or by August 10 incounties with 150,000 or more, but less than3,000,000 inhabitants, the complaint should be filedon or before 30 calendar days after the date of pub-lication of the assessment list under Section 12-10 ofthe code.

5 Form of assessment complaints

Complaints relating to real estate must be filed onForm PTAX-230, Non-Farm Real Property Assess-ment Complaint. This form is provided by theboard. Complaints relating to farmland and farmbuildings must be filed on Form PTAX-227, FarmProperty Assessment Complaint.

6 Claims for exemption

Claims for exemption by

• Religious organizations must be filed on FormPTAX-300-R, Application for Religious PropertyTax Exemption.

• Federal and state agencies must be filed on FormPTAX-300-FS, Application for Federal/StateAgency Property Tax Exemption.

• Charitable, educational, and governmentalorganizations, other than federal and stateagencies, must be filed on Form PTAX-300,Application for Property Tax Exemption.



These application forms must be completed and allof the supporting documents attached. The re-quired attachments are listed on each form. Someexamples includea Proof of ownership, such as a deed, title

insurance policy, or contract for deed.b Exterior picture of the property.c Affidavit stating the specific uses of the

property, the frequency of the uses, and theportions of the property put to those uses. Theburden of proof is on the applicant.

7 Docket of cases

When a complaint is received it should be recordedon Form PTAX 244, Board of Review Case Docket.The record shows the complaint number, descrip-tion of the property, reference to the assessor’sbooks, the time of hearing, and the final dispositionmade of the case.

8 Review on motion of the board

The board may initiate proceedings designed tocorrect assessment omissions or errors. The boardshall give reasonable notice to the taxpayer, direct-ing them to appear before the board. The taxpayermust show cause, if any, why the assessmentshould not be changed. No action shall be taken bythe board prior to the time set for the hearing, un-less the taxpayer appears before the board prior tothat time.

9 Petitions for equalization

Petitions addressed to the board regarding mattersof equalization must indicate clearly the class orclasses of property, or the taxing jurisdictions thatappear to be assessed at a level not consistent withthe general assessment level prevailing in thatcounty.

If petitions of this nature are to receive favorableconsideration, they should be supported by assess-ment ratio data.


10 Amendment of rules and regulations

The rules set forth may be amended at any time.The notice of the amendment must be given bypublishing in a newspaper. Such amendment be-comes effective as specified in the notice of publica-tion.

Clerk of the boardThe CCAO shall serve as a clerk of the board.

Essential recordsBecause of the authority and finality of its acts, theboard of review must keep accurate and completerecords of its findings and decisions.

The essential records include

1 Form PTAX-243, Board of Review Minute Book.The minute book is a record of the dates and timethe board of review is in session, the memberspresent, and the nature of the business conducted.The date adjourned and the signature of the clerkshould also be recorded for each session.

Sample entries includea Inspection of assessor’s books in ______________

Township, or assessment district.b Receiving complaints, numbers __ through __.c Hearing complaints, numbers __, __, __, __, __, __.d Hearing on board’s motion to increase

assessments, numbers __, __, __, __.e Prepare publication notice of proposed

equalization in ________________ Township, orassessment district.

f Hearing of the taxpayers of ________________Township, or assessment district, on the board’smotion to increase the assessment of real estate inthat township, or assessment district, ___ percent.



2 Form PTAX-244, Board of Review Case DocketThis is a supplement to the minute book and mayappear in the same book as the minute book, but ina different section. Its purpose is to cover not onlycomplaints filed before the board, but also casesthat originate on the board’s own motion. Thestatute requires that all complaints be numbered inthe order they are received by the township ortaxing district. This way it is possible for the boardto keep its file of complaints and docket of cases inthe same order and also allow assessors to inspectthe record of complaints against their work.

Entering changes in the assessment booksThe law requires that changes made by reviewing offi-cials be entered in the assessor’s books in the columnprovided for the board. When writing these changes,the amount shown in the docket book should be bal-anced with the changes made in the assessor’s books.Each item that has been revised in the assessors’ booksshould be noted in the docket book by the appropriatepage and line reference. The docket and minute booksmay be maintained electronically, in a format approvedby the department.

PTAX-207, Notice of Final Decision on Assessed Valueby Board of Review

PTAX-227, Farm Property Assessment Complaint

PTAX-229, Notice of Proposed Change in AssessedValue by Board of Review

PTAX-230, Non-Farm Property Assessment Complaint

PTAX-238, Certificate of Error

PTAX-242, Notice of Board of Review Hearing

PTAX-311-A, Notification of Property Tax Exemptionfor Disabled Veterans

PTAX-323, Application for Homestead ImprovementAssessment

Essential boardof review forms



PTAX-324, Application for Senior Citizens HomesteadExemption

PTAX-326, Certificate of Status of Exempt Property(Non-homestead property)

PTAX-328, Certificate of Status of Five or More ExemptProperties

PTAX-329, Certificate of Status Senior Citizens Home-stead Exemption

PTAX-330, Application for Solar Energy Assessment

PTAX-333, Application for Airport Purposes Assess-ment

PTAX-334, Application for Open Space Purposes As-sessment

PTAX-762, Application for Demonstration Home As-sessment

Disposing of individual assessment complaintsDetermining the validity of complaints filed by taxpay-ers requires a knowledge of the general practice that hasbeen followed in valuing property of similar characterin the county. If an investigation discloses that the com-plainant has received essentially the same treatment asother owners of similar properties, the original assess-ment should generally be allowed to stand. However, ifthe investigation discloses that the assessment of thesimilarly situated, comparable property is incorrect, theassessment of the complainant’s property and the as-sessment of the similarly situated properties should bechanged on the board’s own motion after proper notifi-cation.

Equalizing assessmentsEqualization is the adjustment of assessed values be-tween geographic areas or between classes of propertyso that the areas or classes are at the same median levelof assessment. For example, if property is assessed at 20percent of its value in one area of the county, while in



another area the same kind of property is assessed at 30percent of its value, it is the duty of the board of reviewto first adjust the assessed values in these areas to themedian level of assessments for that jurisdiction. Onceuniformity is established in these jurisdictions, it is theduty of the board of review to then adjust the assess-ment levels towards the statutory level of 33 1/3 per-cent with the use of intra-county equalization.

A principal objective of the board of review is to elimi-nate any inequalities stemming from different judg-ments of value by assessors.

Discovering and assessing omitted propertyBoards of review are entrusted with the discovery andassessment of omitted property. This requires diligentsearching on the part of assessing and reviewing offi-cials.

Real estate tax mapsAerial mapsBuilding permitsOccupancy permitsForm PTAX-203, Real Estate Transfer Declaration

Completing the work of the boardFor the property tax system to function properly it is ofutmost importance to follow the deadlines stated in theProperty Tax Code as closely as possible. Boards ofreview that have not completed their work prior to theiradjournment date may, with the approval of the countyboard, recess on or before their adjournment date untilnotified in writing by the clerk of the board of review toreturn to session for the time necessary to complete itswork. Each board then adjourns when the work for thatassessment year is completed and the assessment booksare certified to the county clerk.

Suggestedsources ofinformation



Adjournment dates for boards of review are listed below.• Counties of less than 50,000 inhabitants, on or

before September 7;• Counties of 50,000 or more inhabitants, but less than

75,000 inhabitants, on or before October 7;• Counties of 75,000 or more inhabitants, but less than

100,000 inhabitants, on or before November 7; and• Counties of 100,000 or more inhabitants, on or

before December 31.

The director of the department is authorized to orderthe board of review to reconvene in extraordinary ses-sion to enable the board to further revise, correct, andequalize the assessment of any property in the county,or any assessment district in the county, under Section13-10 of the Property Tax Code. However, the recall of aboard of review can cause a delay in the issuance of taxbills.

Successful operation of the board of reviewThe successful operation of the board of review requiresusing proper administrative methods and legal proce-dures.

The department publishes the Illinois Real PropertyAppraisal Manual (IRPAM) and the Illinois PropertyTax System, aimed at improving the assessment, re-view, and equalization procedures. These books aredistributed, free of charge, to each assessment office andthe boards of review.

The services of the technical staff in the Office of LocalGovernment Services, is available to assist in resolvingproblems. Please feel free to contact us for any assis-tance you may need.

Departmentrecall



Board of review educational requirementsIn counties with less than 100,000 inhabitants, membersof the board of review in township counties are re-quired to successfully complete a basic course in assess-ment practices within one year of taking office.

The term “members of the board of review” encom-passes all members of the regular board of review andall members of the extended board of review.

A board member needs to successfully complete anapproved course only once. It is not necessary to repeatthe process.

The department has approved the course “Board ofReview — Basic Course” to meet this educational re-quirement.

Individuals who have successfully completed either the3-day or 4 1/2-day “basic” course offered by the IllinoisProperty Assessment Institute or have successfullycompleted the department’s 1-A and 1-B courses priorto 1997 are also considered to have met the educationalrequirement.

An exam, administered by the department, is requiredfor all board members in counties of 100,000 or moreinhabitants. The exam results are good for three yearsfollowing the date in which the name was placed on theeligibility list or as long as the board member is in con-tinuous service.

Note: Commission county board of review memberswho are either county commissioners or appointedmembers are required to successfully complete a boardof review exam administered by the department.



Board of review qualifications, continuing educationrequirement

Counties with 100,000 or more in population with appointed board ofreview members under Section 6-5. Members are required to pass theIDOR examination under Section 6-10 prior to taking office. Membersmust meet training and experience requirements in property appraisal andproperty tax administration as determined by the county and must meetthe political makeup requirement in Section 6-15.

Counties with less than 100,000 in population with appointed board ofreview members under Section 6-5 required to pass the IDOR examina-tion under Section 6-10. Members are required to pass the IDOR examina-tion prior to taking office and must pass the IDOR board of review classwithin one year of taking office under Section 6-10. Members must meettraining and experience requirements in property appraisal and propertytax administration as determined by the county and must meet the politi-cal makeup requirement in Section 6-15.

Counties with 150,000 or more and less than 3 million in populationwhich had an elected B/R on January 1, 1993, under Section 6-35 (St.Clair County). There are no qualification requirements in the Property TaxCode.

Counties not under township organization (17 Commission Counties).County commissioners serving as the board of review, or any appointedmembers must meet the requirements of Section 6-32. Appointed Board ofReview members must also meet the political makeup requirement inSection 6-34.

Counties with a board of review elected from districts under Section6-40 (Christian and Vermilion Counties). Each member must pass theIDOR board of review class within one year of taking office. The ChristianCounty board of review members must also pass the IDOR examination asrequired by county board resolution under Section 6-10.

Counties with 3 million or more inhabitants under Section 6-10 (CookCounty). Each member must pass the IDOR board of review class withinone year after taking office.

Counties with less than 100,000 in population with appointed board ofreview members under Section 6-5 required to pass the IDOR board ofreview class under Section 6-10. Members are required to pass the IDORboard of review class within one year of taking office under Section 6-10.Members must meet training and experience requirements in propertyappraisal and property tax administration as determined by the countyand must meet the political makeup required in Section 6-15.

Note: Individuals who successfully completed the Basic AssessmentPractices course offered by the Illinois Property Assessment Institute, orthe Illinois Department of Revenue’s I-A and I-B courses prior toJanuary 1, 1997, are considered to have met the course requirements fora basic course.





Property Tax Code Table of Contents

Article 6 Boards of Review

Sec. 6-5. Appointed boards of review.Sec. 6-10. Examination requirement — Counties of 100,000 or more.Sec. 6-15. Political makeup and compensation.Sec. 6-20. Clerk of the board of review.Sec. 6-25. Additional members.Sec. 6-30. Board of review in commission counties.Sec. 6-35. Elected boards of review.Sec. 6-40. Election from districts.Sec. 6-45. Abolition of elected board of review.Sec. 6-50. Majority vote.Sec. 6-55. Oath of office.

Article 9 General Valuation Procedures

Division 1 Office operationsSec. 9-5. Rules.Sec. 9-10. Office hours.Sec. 9-15. Annual meeting of supervisor of assessments.Sec. 9-20. Property record cards.Sec. 9-25. Township property record cards.Sec. 9-30. Property records systems - Townships and multi-townships.Sec. 9-35. County tax maps - Supervisor of assessments.Sec. 9-40. County tax maps; County assessor.Sec. 9-45. Property index number system.Sec. 9-50. Maps and plats.Sec. 9-55. Survey by owner.Sec. 9-60. County clerk survey.Sec. 9-65. Reassessment after platting.

Division 2 Assessment authoritySec. 9-70. Assessment authority.Sec. 9-75. Revisions of assessments; Counties of less than 3,000,000.Sec. 9-80. Authority to revise assessments; Counties of less than 3,000,000.Sec. 9-85. Revision of assessments by county assessor and board of review;

Counties of 3,000,000 or more.

Division 3 Assessment booksSec. 9-90. Procuring assessment books.Sec. 9-95. Listing of property.Sec. 9-100. Assessment list; Delivery of books.Sec. 9-105. Makeup of assessment books by townships.Sec. 9-110. Railroad assessment book.Sec. 9-115. Parcels in more than one taxing district.Sec. 9-120. Combined listings.Sec. 9-125. Verification of assessment lists.



Sec. 9-130. Delivery of assessment books.Sec. 9-135. Correction of assessment lists.Sec. 9-140. Loss or destruction of assessment books.

Division 4 Valuation proceduresSec. 9-145. Statutory level of assessment.Sec. 9-150. Classification of property.Sec. 9-155. Valuation in general assessment years.Sec. 9-160. Valuation in years other than general assessment years.Sec. 9-165. Definitions.Sec. 9-170. (Repealed)Sec. 9-175. Owner on assessment date.Sec. 9-180. Pro-rata valuations; improvements or removal of improvements.Sec. 9-185. Change in use or ownership.Sec. 9-190. Damaged or destroyed property.Sec. 9-195. Leasing of exempt property.Sec. 9-200. Previously exempt property.Sec. 9-205. Equalization.Sec. 9-210. Equalization by chief county assessment officer; counties of

less than 3,000,000.Sec. 9-215. General assessment years; counties of less than 3,000,000.Sec. 9-220. Division into assessment districts; assessment years;

counties of 3,000,000 or more.Sec. 9-225. Division of county into four assessment districts.Sec. 9-230. Return of township or multi-township assessment books.Sec. 9-235. Failure to complete assessments.Sec. 9-240. Assessment book totals.Sec. 9-245. Return of books to board of review; counties of less than 3,000,000.Sec. 9-250. Abstract of assessment by county clerk.Sec. 9-255. Statement of incomplete assessments.

Division 5 Omitted propertySec. 9-260. Assessment of omitted property; counties of 3,000,000 or more.Sec. 9-265. Omitted property; interest; change in exempt use or ownership.Sec. 9-270. Omitted property; limitations on assessment.

Article 12 Assessment Notice and Publication Provisions

Division 1 Initial Assessment ProcessSec. 12-5. Taxpayer entitled to statement of valuation.Sec. 12-10. Publication of assessments; counties of less than 3,000,000.Sec. 12-15. Publication fee — Counties of less than 3,000,000.Sec. 12-20. Publication of assessments; counties of 3,000,000 or more.Sec. 12-25. Contents of assessment list publication; payment.Sec. 12-30. Mailed notice of changed assessments; counties of less than 3,000,000.Sec. 12-35. Notice sent to address of mortgage lender.

Division 4 Revisions and correctionsSec. 12-40. Notice provisions; equalization by board of review.Sec. 12-45. Publication of certificates of error.



Sec. 12-50. Mailed notice to taxpayer after change by board of review or board of appeals.Sec. 12-55. Notice requirement if assessment is increased; counties of 3,000,000 or more.Sec. 12-60. List of assessment charges; publications.Sec. 12-65. Publication fee.

Article 16 Review of Assessment Decisions

Division 1 General provisionsSec. 16-5. Information from assessors to board of review and board of appeals.Sec. 16-8. Books and records of chief county assessment officer.Sec. 16-10. Summons by the board of review or board of appeals.Sec. 16-15. Adjustments to prior year’s assessments.

Division 2 Boards of Review in counties of less than 3,000,000 inhabitantsSec. 16-20. Powers and duties of boards of review.Sec. 16-25. Review after complaint by taxing bodies.Sec. 16-30. Board of review meetings.Sec. 16-35. Adjournment of boards of review.Sec. 16-40. Prohibition of per diem compensation.Sec. 16-45. Consolidated hearings.Sec. 16-50. Omitted property.Sec. 16-55. Complaints.Sec. 16-60. Equalization within counties — Publication and hearing.Sec. 16-65. Equalization process.Sec. 16-70. Determination of exemptionsSec. 16-75. Certificates of error.Sec. 16-80. Reduced assessment of homestead property.Sec. 16-85. Certification of assessment books.Sec. 16-90. Delivery of assessment books.

Division 3 Boards of Review; counties of 3,000,000 or moreSec. 16-95. Powers and duties of board of appeals or review; complaints.Sec. 16-100. Correction orders.Sec. 16-105. Time of meeting — Public records.Sec. 16-110. Notice of meetings — Filing complaints.Sec. 16-115. Filing complaints.Sec. 16-120. Decision on complaints.Sec. 16-125. Hearings.Sec. 16-130. Exemption procedures; board of appeals; board of review.Sec. 16-135. Omitted property; Notice provisions.Sec. 16-140. Omitted property.Sec. 16-145. Assessment list changes.Sec. 16-147. Reduced assessment of homestead property.Sec. 16-150. Certification of assessment books.Sec. 16-155. Use of certified assessments.

Division 4 Property Tax Appeal BoardSec. 16-160. Property Tax Appeal Board; process.Sec. 16-165. Forms for appeal.Sec. 16-170. HearingsSec. 16-175. Subpoenas.Sec. 16-180. Procedure for determination of correct assessment.



Sec. 16-185. Decisions.Sec. 16-190. Record of proceedings and orders.Sec. 16-191. Publications for Chief County Assessment OfficersSec. 16-195. Review of decisions.

Division 5 Department of RevenueSec. 16-200. Review of farmland and coal assessments.Sec. 16-205. Limitation on Department review of individual assessments.

Article 25 Penalties

Sec. 25-5. Delivery and receipt of collector’s book before bond approved.Sec. 25-10. Failure of collector to obtain timely judgment or present list of errors.Sec. 25-15. Knowing failure of local assessment officer to perform duties.Sec. 25-20. Knowing failure of public officer to perform duties.Sec. 25-25. Failure of officer to perform duties if no other penalty provided.Sec. 25-30. Failure of collector to attend tax sale.Sec. 25-35. Failure of county clerk to attend tax sale or keep required records.Sec. 25-40. Fraudulent return or schedule.Sec. 25-45. Duty of state’s attorney to prosecute.



Article 6. Boards of Review

Sec. 6-5. Appointed boards of review.In counties under township organization with less than 3,000,000inhabitants in which no board of review is elected under Section6-35, there shall be an appointed board of review to review the as-sessments made by the supervisor of assessments. When there is noexisting appointed board of review, the chairman of the countyboard shall appoint, with approval of the county board, 3 citizens ofthe county to comprise the board of review for that county, 2 toserve for a one year term commencing on the following June 1, andone to serve for a 2 year term commencing on the same date. Whenan appointed board of review already exists, successors shall beappointed and qualified to serve for terms of 2 years commencingon June 1 of the year of appointment and until their successors areappointed and qualified. Vacancies shall be filled in like manner asoriginal appointments, for the balance of the unexpired term. Mem-bers of the county board may be appointed to the board of review. Amember of the board of review may be reappointed. No person mayserve on the board of review who is not qualified by experience andtraining in property appraisal and property tax administration.(Source: P.A. 86-905; 87-1189; 88-455.)

Sec. 6-10. Examination requirement - Counties of 100,000 or more.In any county to which Section 6-5 applies and which has 100,000 ormore inhabitants, no person may serve on the board of review whohas not passed an examination prepared and administered by theDepartment to determine his or her competence to hold the office.The examination shall be conducted by the Department at someconvenient location in the county. The Department may provide byrule the maximum time that the name of a person who has passedthe examination will be included on a list of persons eligible forappointment or election. The county board of any other county may,by resolution, impose a like requirement in its county. In countieswith less than 100,000 inhabitants, the members of the board ofreview shall within one year of taking office successfully complete abasic course in assessment practice approved by the Department. Incounties with 3,000,000 or more inhabitants, the members of theboard of review shall successfully complete a basic course in assess-ment practice, approved by the Department, within one year aftertaking office. (Source: P.A. 88-455; incorporates 88-221; 88-670, eff.12-2-94; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)



Sec. 6-15. Political makeup and compensation.The board of review appointed under Section 6-5 shall consist of 2members affiliated with the political party polling the highest votefor any county office in the county, and one member of the partypolling the second highest vote for the same county office at the lastgeneral election prior to any appointment made under this Section.Each member of the board of review shall receive an annual salaryto be fixed by the county board and paid out of the county treasury.(Source: P.A. 86-905; 87-1189; 88-455.)

Sec. 6-20. Clerk of the board of review.(a) In counties with a board of review appointed under Section6-5, the clerk of the board of review shall collect and analyzeproperty transfers and property appraisals, and pursue otheractivities the board considers proper and necessary to aid theboard in the determination of the percentage relationship, foreach assessment district, between the valuations at which locallyassessed property is listed and 33 1/3% of the estimated fair cashvalue of such property, or the values determined in accordancewith Sections 10-110 through 10-140, or the percentages providedby a county ordinance adopted under Section 4 of Article IX of theConstitution of Illinois.(b) In counties with 3,000,000 or more inhabitants, the countyassessor shall annually make available to the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning on the first Monday in December 1998 and thereafter)information utilized in the assessment of property, including, butnot limited to, reports generated from the multiple regressionequation and sales/ratio studies, if any. The county assessor shallmake available to the board of appeals (until the first Monday inDecember 1998 and the board of review beginning on the firstMonday in December 1998 and thereafter), upon request by anymember of the board, data used in compilation of the reports andstudies. The Department shall make available to the board ofappeals (until the first Monday in December 1998 and the boardof review beginning on the first Monday in December 1998 andthereafter) sales/ratio studies conducted by the Department.

(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 6-25. Additional members.In counties with a board of review appointed under Section 6-5,when the county board declares by resolution that the number ofcomplaints filed with the board of review has created an emergencysituation and caused a need for an expanded board of review, thechairman of the county board may appoint additional qualified



members to the board of review to hold separate hearings on com-plaints. The additional members shall not take part in theintracounty equalization process of the board of review under Sec-tion 16-60 or Section 16-65. (Source: P.A. 86-905; 87-1189; 88-455.)

Sec. 6-30. Board of review in commission counties.In counties not under township organization with less than3,000,000 inhabitants in which no board of review is elected underSection 6-35, the board of county commissioners shall constitute theboard of review. They shall have all the powers and perform all theduties conferred on or required by boards of review. County com-missioners shall receive no additional compensation for serving onthe board of review. County commissioners serving as the board ofreview must meet the examination requirements of Section 6-32. Ifany member of the board of county commissioners fails to meet theexamination requirements, the board of county commissioners shallappoint a board of review. Members of the county commissionerswho meet the requirements of Section 6-32 may serve on the ap-pointed board of review, but shall not receive additional compensa-tion.

The board of county commissioners shall appoint a 3-member boardof review if (i) the board of county commissioners so chooses or (ii)any member of the board of county commissioners fails to meet theexamination requirements of Section 6-32. No person may serve onan appointed board of review under this Section unless he or shemeets the examination requirements of Section 6-32. Members of aboard of review appointed by the board of county commissionersshall receive a per diem for their services as established by the boardof county commissioners.

A board of review appointed by the board of county commissionersshall serve at the pleasure of the board of the county commissioners.If the board of review is appointed because any member of theboard of county commissioners fails to meet the examination re-quirements of Section 6-32 and all members subsequently fulfill therequirements, the board of county commissioners may terminate theauthority of the sitting board of review, as soon as it completes itswork for a tax year, and serve as the board of review.(Source: P.A. 90-552, eff. 1-1-99; 91-732, eff. 1-1-01.)

Sec. 6-32. Examination requirement.In any county to which Section 6-30 applies, no person may serve ona board of review who has not passed an examination prepared andadministered by the Department to determine his or her competence



to hold the office. The Department shall conduct examinations forvarious counties in a convenient location in the region. A candidateappearing at the examination shall indicate to the Department thename of the county the results shall be certified to if he or she suc-cessfully passes the examination. The Department shall certify thelist to each county from which candidates have appeared at theexamination location. Within one year after the effective date of thisamendatory Act of 1997, the Department shall conduct an examina-tion at least once in each commission county for which the chairmanof the County Board of Commissioners requests an examination.The Department may provide by rule the maximum time that thename of a person who has passed the examination shall be includedon a list of persons eligible to serve on the board of review. (Source:P.A. 90-552, eff. 1-1-99.)

Sec. 6-34. Political makeup.If the board of county commissioners appoints a board of review asprescribed in Section 6-30, the board of review shall consist of 2members affiliated with the political party polling the highest votefor any county office in the county and one member of the partypolling the second highest vote for the same county office at the lastgeneral election. (Source: P.A. 90-552, eff. 1-1-99.)

Sec. 6-35. Elected boards of review.In counties with 150,000 or more and less than 3,000,000 inhabitantswhich had an elected board of review on January 1, 1993, the boardof three persons shall continue in office. Every two years, at theregular election of county officers in such counties, one member ofthe board of review shall be elected to succeed the member whoseterm expires in that year. Each member shall hold office for a term of6 years and until a successor is elected and qualified. The persons soelected shall qualify within 10 days after the canvass of the vote iscompleted. They shall hold no other lucrative public office or publicemployment. Each member shall receive an annual salary to be fixedby the county board and paid out of the county treasury. In case ofany vacancy in the board of review or the failure of any personelected to that office to qualify, the vacancy shall be filled by ap-pointment as provided in the general election law until a successoris elected and has qualified. The member having the shortest term toserve shall be the chairman of the board. (Source: P.A. 86-181; 88-455.)

Sec. 6-40. Election from districts.In all counties which elect a board of review, except counties with acounty assessor elected under Section 3-45 and except counties witha board of review elected under Section 5-5, members shall be



elected from 3 districts which are substantially equal in number ofinhabitants and, to the extent practicable, equal in geographic area.On or before January 1 of the first year following a decennial censusin which board members will be elected, the supervisor of assess-ments shall prepare and submit to the county board a map of thedistricts, designating each district as 1, 2 or 3. The county boardshall adopt the map or make changes as it deems necessary andadopt the revised map on or before January 31. If no map isadopted by January 31, the map initially submitted by the supervi-sor of assessments shall constitute the districts from which membersof the board of review shall be elected. As each term of a member ofthe board of review expires, a new member shall be elected from adistrict, beginning with district 1 and proceeding through district 3.(Source: P.A. 88-455; 89-126, eff. 7-11-95.)

Sec. 6-45. Abolition of elected board of review.If any county contains within its limits 3,000,000 or more inhabit-ants, as determined by the last Federal decennial or special census,that county shall at once come under the provisions of this Coderelating to counties of that population, and at the next ensuing regu-lar election of county officers, a county assessor shall be elected, andall provisions of this Code relating to counties with 3,000,000 ormore inhabitants shall then immediately apply to that county.

In counties having an elected board of review as provided by law forcounties with 150,000 or more but less than 3,000,000 inhabitants, thecounty board may by resolution have submitted to the legal votersof the county at any regular election, the question of abolishing theelected board of review. The county board shall certify the questionto the proper election officials, who shall submit the question to thevoters. Such referendum shall be held and returns made all in themanner now provided by the general election law and the questionshall be in substantially the following form:____________________________________________________________

Shall the elected board of review be abolished YESand be replaced by an appointed board? NO____________________________________________________________

If a majority of the voters voting on the question vote in favor of theproposition, the elected board of review shall be abolished to takeeffect on June 1 following the election. On that date, all records,books and papers pertaining to the elected board shall be transferredand delivered by the board to its successor in office. Thereafter allthe powers and duties conferred upon appointed boards of review



in counties with less than 3,000,000 inhabitants, shall be exercisedand performed in such counties so voting, by appointed boards ofreview as provided by law for counties with less than 3,000,000inhabitants. (Source: P.A. 88-455; 89-126, eff. 7-11-95.)

Sec. 6-50. Majority vote.Board of review action may be taken by a majority vote of the board.(Source: P.A. 76-1322; 88-455.)

Sec. 6-55. Oath of office.Each member of the board of review shall, before entering upon theduties of office, take and subscribe to the oath required under Sec-tion 5-10. (Source: P.A. 88-455.)

TITLE 3. VALUATION AND ASSESSMENT

Article 9. General Valuation Procedures

Division 1. Office operations

Sec. 9-5. Rules.Each county assessor, board of appeals, and board of review shallmake and publish reasonable rules for the guidance of personsdoing business with them and for the orderly dispatch of business.

In counties with 3,000,000 or more inhabitants, the county assessorand board of appeals (ending the first Monday in December 1998and the board of review beginning the first Monday in December1998 and thereafter), jointly shall make and prescribe rules for theassessment of property and the preparation of the assessment booksby the township assessors in their respective townships and for thereturn of those books to the county assessor. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 9-10. Office hours.The offices of the chief county assessment officer shall be open allthe year during business hours to hear or receive complaints orsuggestions that property has not been properly assessed. (Source:Laws 1939, p. 886; P.A. 88-455.)



Sec. 9-15. Annual meeting of supervisor of assessments.In all counties of township organization having a supervisor ofassessments, the supervisor of assessments shall, by January 1 ofeach year, assemble all assessors and their deputies for consultationand shall instruct them in uniformity of their functions. The instruc-tions shall be in writing and available to the public. Notice of theannual assembly shall be published not more than 30 nor less than10 days before the assembly in a newspaper published in the town-ship or the tax assessment district, and if there is no such newspaper,in a newspaper published in the county and in general circulation inthe township or tax assessment district. At the time of publishingthe notice, a press release giving notice of the assembly shall begiven to each newspaper published in the county and to each com-mercial broadcasting station whose main office is located in thecounty. The assembly is open to the public.

Any assessor or deputy assessor who wilfully refuses or neglects toobserve or follow instructions of the supervisor of assessments,which are in accordance with law, shall be guilty of a Class B misde-meanor. Any supervisor of assessments who willfully gives direc-tions which are not in accordance with law is guilty of a Class Bmisdemeanor. (Source: P.A. 84-837; 88-455.)

Sec. 9-20. Property record cards.In all counties, all property record cards maintained by a townshipassessor, multi-township assessor, or chief county assessment officershall be public records, and shall be available for public inspectionduring business hours, subject to reasonable rules and regulations ofthe custodian of the records. Upon request and payment of suchreasonable fee established by the custodian, a copy or printout shallbe provided to any person.

Property record cards may be established and maintained on elec-tronic equipment or microfiche, and that system may be the exclu-sive record of property information. (Source: P.A. 83-1312; 88-455.)

Sec. 9-25. Township property record cards.In counties under township organization, the township assessorsand multi-township assessors shall allow the supervisor of assess-ments to make a duplicate copy of any or all records compiled andmaintained by the township assessor and multi-township assessor.The supervisor of assessments shall make and maintain a completeset of property record cards. The township or multi-township asses-



sor shall supply the supervisor of assessments with a copy of all newproperty record cards as they are added to the tax rolls. (Source: P.A.84-837; 88-455.)

Sec. 9-30. Property records systems - Townships and multi-town-ships.The township or multi-township assessor may spend funds for thepreparation, establishment and maintenance of a detailed propertyrecord system which would provide information useful to assess-ment officials. The assessor also may enter into contracts with per-sons, firms or corporations for the preparation and establishment ofthe record system. The property record system shall include up-to-date and complete tax maps, ownership lists, valuation standardsand property record cards, including appraisals, for all or any partof the property in the township or multi-township assessment dis-trict in accordance with reasonable rules and procedures prescribedby the Department, but the system and records shall not be consid-ered to be assessments nor limit the powers and duties of assessingofficials. The record shall be available to all assessing officials and tothe public. (Source: P.A. 82-554; 88-455.)

Sec. 9-35. County tax maps - Supervisor of assessments.Except as provided in Section 5-1108 of the Counties Code, eachsupervisor of assessments shall prepare and maintain, in accordancewith rules and procedures prescribed by the Department, tax mapsand up-to-date lists of property owners’ names and addresses andproperty record cards for all of the property in the county, and shallprocure at regular intervals from the records maintained by thecounty recorder information relating to transfers of property. Thesupervisor of assessments shall not, however, duplicate the work ofany full-time township assessor or multi-township assessor whomaintains up-to-date and complete tax maps, ownership lists andproperty record cards in accordance with rules and proceduresprescribed by the Department. This shall not preclude the mainte-nance of duplicate records in the supervisor of assessments’ office.This Section shall not prohibit the preparation and setting up of aproperty record system (including appraisals) and property recordcards as provided for in other Acts, but such system and recordsshall not be considered to be assessments nor limit the powers andduties of the assessors as provided by this Code. Systems andrecords or copies of them set up under other Acts may be main-tained by the supervisor of assessments in his or her office. In pre-paring the original tax maps, lists and property record cards, he orshe shall consult with the Department and the Department shallfurnish to the officer such supplies and equipment as may, in its



judgment, be necessary to set up the original set of maps, lists andrecords required by this Section. (Source: P.A. 86-482; 86-1475;88-455.)

Sec. 9-40. County tax maps; County assessor.In any county with less than 3,000,000 inhabitants which elects acounty assessor under Section 3-45, the county assessor shall, exceptas provided in Section 5-1108 of the Counties Code, prepare andmaintain tax maps, up-to-date lists of property owners’ names andaddresses, and property record cards for all of the property in thecounty. Those documents shall be prepared and maintained inaccordance with rules and procedures prescribed by the Depart-ment. The county assessor also shall procure at regular intervalsfrom the records maintained by the recorder information relating totransfers of property. The county assessor shall not duplicate thework of any fulltime township assessor who maintains up-to-dateand complete tax maps, ownership lists and property record cards inaccordance with rules and procedures prescribed by the Depart-ment, but this shall not preclude the maintenance of duplicate copiesof those records in the county assessor’s office. This Section does notprohibit the preparation and setting up of a property record system(including appraisals) and property record cards as provided for inother Acts, but the system and records shall not be considered to beassessments nor limit the powers and duties of the assessors underthis Code. Systems and records or copies of them set up under suchother Acts may be maintained by the county assessor in his or heroffice. In preparing the original tax maps, lists and property recordcards, the county assessor shall consult with the Department. TheDepartment shall furnish to that officer supplies and equipment asmay, in its judgment, be necessary to set up the original set of maps,lists and records required by this Section. (Source: P.A. 86-1475;88-455.)

Sec. 9-45. Property index number system.The county clerk in counties of 3,000,000 or more inhabitants and,subject to the approval of the county board, the chief county assess-ment officer or recorder, in counties of less than 3,000,000 inhabit-ants, may establish a property index number system under whichproperty may be listed for purposes of assessment, collection oftaxes or automation of the office of the recorder. The system may beadopted in addition to, or instead of, the method of listing by legaldescription as provided in Section 9-40. The system shall describeproperty by township, section, block, and parcel or lot, and maycross-reference the street or post office address, if any, and streetcode number, if any. The county clerk, county treasurer, chief county



assessment officer or recorder may establish and maintain crossindexes of numbers assigned under the system with the completelegal description of the properties to which the numbers relate.Index numbers shall be assigned by the county clerk in counties of3,000,000 or more inhabitants, and, at the direction of the countyboard in counties with less than 3,000,000 inhabitants, shall be as-signed by the chief county assessment officer or recorder. Tax mapsof the county clerk, county treasurer or chief county assessmentofficer shall carry those numbers. The indexes shall be open to pub-lic inspection and be made available to the public. Any propertyindex number system established prior to the effective date of thisCode shall remain valid. However, in counties with less than3,000,000 inhabitants, the system may be transferred to anotherauthority upon the approval of the county board.

Any real property used for a power generating or automotive manu-facturing facility located within a county of less than 1,000,000 in-habitants, as to which litigation with respect to its assessed valuationis pending or was pending as of January 1, 1993, may be the subjectof a real property tax assessment settlement agreement among thetaxpayer and taxing districts in which it is situated. Other appropri-ate authorities, which may include county and State boards or offi-cials, may also be parties to such an agreement. Such an agreementmay include the assessment of the facility for any years in dispute aswell as for up to 10 years in the future. Such an agreement mayprovide for the settlement of issues relating to the assessed value ofthe facility and may provide for related payments, refunds, claims,credits against taxes and liabilities in respect to past and future taxesof taxing districts, including any fund created under Section 20-35 ofthis Act, all implementing the settlement agreement. Any suchagreement may provide that parties thereto agree not to challengeassessments as provided in the agreement. An agreement enteredinto on or after January 1, 1993 may provide for the classification ofproperty that is the subject of the agreement as real or personalduring the term of the agreement and thereafter. It may also pro-vide that taxing districts agree to reimburse the taxpayer foramounts paid by the taxpayer in respect to taxes for the real prop-erty which is the subject of the agreement to the extent levied bythose respective districts, over and above amounts which would bedue if the facility were to be assessed as provided in the agreement.Such reimbursement may be provided in the agreement to be madeby credit against taxes of the taxpayer. No credits shall be appliedagainst taxes levied with respect to debt service or lease payments ofa taxing district. No referendum approval or appropriation shall berequired for such an agreement or such credits and any such obliga-tion shall not constitute indebtedness of the taxing district for pur-



poses of any statutory limitation. The county collector shall treatcredited amounts as if they had been received by the collector astaxes paid by the taxpayer and as if remitted to the district. Acounty treasurer who is a party to such an agreement may agree tohold amounts paid in escrow as provided in the agreement for pos-sible use for paying taxes until conditions of the agreement are metand then to apply these amounts as provided in the agreement. Nosuch settlement agreement shall be effective unless it shall have beenapproved by the court in which such litigation is pending. Any suchagreement which has been entered into prior to adoption of thisamendatory Act of 1988 and which is contingent upon enactment ofauthorizing legislation shall be binding and enforceable. (Source:P.A. 88-455; 88-535; 88-670, eff. 12-2-94.)

Sec. 9-50. Maps and plats.The chief county assessment officer may make or purchase mapsand plats that will facilitate the business of his or her office. Themaps and plats shall always remain in the office, and will be openand accessible to the public. (Source: Laws 1939, p. 886; P.A. 88-455.)

Sec. 9-55. Survey by owner.When a property is divided into parcels so that it cannot be de-scribed without describing it by metes and bounds, it is the duty ofthe owner to have the land surveyed and platted into lots. The plat-ting shall be in accord with the Plat Act. The plat shall be certifiedand recorded. Any unit of local government responsible for issuingbuilding permits may require, by ordinance, that the plat be certifiedand recorded before the building permit is issued, unless a subdivi-sion plat is not required under subsection (b) of Section 1 of the PlatAct. The description of property, in accordance with the number anddescription in the plat, shall be a valid description of the propertydescribed. However, no plat of a subdivision, vacation or dedicationof a tract of land shall be approved by a city, incorporated town orvillage officer, nor shall any recorder record a plat, unless a state-ment from the county clerk is endorsed thereon showing that he orshe finds no delinquent general taxes, unpaid current general taxes,delinquent special assessments or unpaid current special assess-ments against the tract of land. No officer of a city, village or incor-porated town shall approve the plat of a subdivision of a tract ofland until all deferred installments of outstanding unpaid specialassessments are either certified as paid by the proper collector, or adivision thereof is made in accord with the proposed subdivisionand duly approved by the court that confirmed the special assess-ment. (Source: P.A. 90-788, eff. 8-14-98.)



Sec. 9-60. County clerk survey.If the owner of a property refuses or neglects to have a survey made,the county clerk shall notify the owner that the clerk will make thesurvey. The notice shall be published at least three times in a news-paper having a general circulation in the county. If the owner doesnot make the survey within 30 days of the last notice, the clerk shallhave the survey made and recorded in accord with the Plat Act. Theexpenses of publication and of making the survey shall be added tothe tax levied on the property, and shall be paid on demand to thepersons to whom they are due. (Source: Laws 1967, p. 2519; P.A.88-455.)

Sec. 9-65. Reassessment after platting.Except as otherwise provided by Section 10-30 with respect to as-sessments made in counties with less than 3,000,000 inhabitants,whenever acreage property has been subdivided into lots and thesubdivision has been recorded, the lots shall be reassessed andplaced upon the assessor’s books, replacing the acreage property, asof the first day of January immediately following the date of therecording or filing of the subdivision. (Source: P.A. 83-358; 83-837;83-1362; 88-455.)

Division 2. Assessment authority

Sec. 9-70. Assessment authority.The Department shall assess all pollution control facilities, low sul-fur dioxide emission coal fueled devices, and property owned orused by railroad companies operating within this State, exceptnoncarrier real estate. Local assessment officers shall assess all otherproperty not exempted from taxation. (Source: P.A. 81-838; 88-455.)

Sec. 9-75. Revisions of assessments; Counties of less than 3,000,000.The chief county assessment officer of any county with less than3,000,000 inhabitants, or the township or multi-township assessor ofany township in that county, may in any year revise and correct anassessment as appears to be just. Notice of the revision shall begiven in the manner provided in Section 12-10 and 12-30 to thetaxpayer whose assessment has been changed. (Source: P.A. 81-838;88-455.)



Sec. 9-80. Authority to revise assessments; Counties of less than3,000,000.The chief county assessment officer in counties with less than3,000,000 inhabitants shall have the same authority as the townshipor multi-township assessor to assess and to make changes or alter-ations in the assessment of property, and shall assess and make suchchanges or alterations in the assessment of property as though origi-nally made. Changes by the chief county assessment officer in valua-tions shall be noted in a column provided, and no change shall bemade in the original assessor’s figures.

When the chief county assessment officer or his or her deputy viewsproperty for the purposes of assessing the property or determiningwhether a change or alteration in the assessment of the property isrequired, he or she shall give notice to the township assessor by U.S.Mail at least 5 days but not more than 30 days prior to the viewing,so that the assessor may arrange to be present at the viewing. He orshe shall also give notice to owners of the properties by means ofnotices in a paper of general circulation in the township. The noticesshall state the chief county assessment officer’s intention to view theproperty but need not specify the date and time of the viewing.When the chief county assessment officer or his or her deputy ispresent at the property to be viewed, immediately prior to the view-ing, he or she shall make a reasonable effort to ascertain if the owneror his or her representative, or the assessor, are on the premises andto inform them of his or her intention to view the property. Failureto provide notice to the township assessor and owner shall not ofand by itself invalidate any change in an assessment. A viewingunder this Section and Section 9-155 means actual viewing of thevisible property in its entirety from, on or at the site of the property.

All changes and alterations in the assessment of property shall besubject to revision by the board of review in the same manner thatoriginal assessments are reviewed. (Source: P.A. 81-0838; 81-1055;81-1509; 88-455.)

Sec. 9-85. Revision of assessments by county assessor and boardof review; Counties of 3,000,000 or more.In counties with 3,000,000 or more inhabitants, the county assessorshall have authority annually to revise the assessment books andcorrect them as appears to be just; and on complaint in writing inproper form by any taxpayer, and after affording the taxpayer anopportunity to be heard thereon, he or she shall do so at any time,until the assessment is verified. An entry upon the assessment booksdoes not constitute an assessment until the assessment is verified.



When a notice is to be mailed under Section 12-55 and the addressthat appears on the assessor’s records is the address of a mortgagelender or the trustee, where title to the property is held in a landtrust, or in any event whenever the notice is mailed by the assessorto a taxpayer at or in care of the address of a mortgage lender or atrustee where the title to the property is held in a land trust, themortgage lender or the trustee within 15 days of the mortgagelender’s or the trustee’s receipt of such notice shall mail a copy ofthe notice to each mortgagor of the property referred to in the noticeat the last known address of each mortgagor as shown on therecords of the mortgage lender, or to each beneficiary as shown onthe records of the trustee.

All changes and alterations pursuant to Section 16-95 or Section16-120 in the assessment of property shall be subject to revision andentry into the assessment books by the board of appeals (until thefirst Monday in December 1998 and the board of review beginningthe first Monday in December 1998 and thereafter) in the same man-ner as the original assessments. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Division 3. Assessment books

Sec. 9-90. Procuring assessment books.The county clerk shall procure all necessary books and blanks re-quired by this Code to be used in the assessment of property andcollection of taxes, at the expense of the county. (Source: Laws 1939,p. 886; P.A. 88-455.)

Sec. 9-95. Listing of property.All property subject to taxation under this Code, including propertybecoming taxable for the first time, shall be listed by the proper legaldescription in the name of the owner, and assessed at the times andin the manner provided in Sections 9-215 through 9-225, and also inany year that the Department orders a reassessment (to the extentthe reassessment is so ordered), with reference to the amount ownedon January 1 in the year for which it is assessed, including all prop-erty purchased that day. The assessment, as modified or equalizedor changed as provided by law, shall be the assessment upon whichtaxes shall be levied and extended during the general assessmentperiod for which the assessment is made, or during the remainder ofthat general assessment period for any property reassessed by order



of the Department. No assessment shall be considered illegal byreason of not having been listed or assessed in the name of theowner or owners. (Source: P.A. 85-1221; 86-1481; 88-455.)

Sec. 9-100. Assessment list; Delivery of books.Before January 1 in each year of the general assessment, as providedin Sections 9-215 through 9-225, each county clerk shall make up thelist of property to be assessed for taxes for the townships or taxingdistricts in the county, in books for that purpose. Annually, beforeJanuary 1, he or she shall make up lists of properties which aretaxable, or which become taxable for the first time, and which arenot already listed, and make up lists of properties which have beensubdivided and not listed by the proper description. The countyclerk shall enter in the proper column, opposite the respective par-cels, the name of the owner, or other such persons, so far as he isable to ascertain the names. The lists shall contain columns to showthe number of acres or lots improved, and the assessed value; theassessed value of improvements; the total value; and other informa-tion as may be required. The county clerk shall also have preparedand ready for delivery all blanks necessary in the assessment ofproperty, and shall deliver those blanks to the assessors along withthe assessment books or lists. The books or lists may be completedand delivered by townships or taxing districts without waiting forthe completion of all the books or lists, but all assessment books orlists shall be delivered by the county clerk to the chief county assess-ment officer on or before January 1. The books or lists shall be madein duplicate. (Source: P.A. 86-1481; 88-455.)

Sec. 9-105. Makeup of assessment books by townships.The books for the assessment of property, in counties not undertownship organization, shall be made up by congressional town-ships, but parts or fractional townships may be added to full town-ships, at the discretion of the county board. In counties under town-ship organization, the books shall be made to correspond with theorganized townships. Separate books shall be made for the assess-ment of property and the collection of all taxes and special assess-ments thereon, within the corporate limits of cities, incorporatedtowns and villages, if ordered by the county board. (Source: Laws1939, p. 886; P.A. 88-455.)

Sec. 9-110. Railroad assessment book.The county clerk shall procure, at the expense of the county, a recordbook in a form prescribed by the Department, in which to enterrailroad property as listed for taxation, and shall enter the valua-tions assessed, corrected and equalized in the manner provided by



law. The county clerk shall extend all the taxes for which the prop-erty is liable against its equalized assessed value. At the time fixedby law for delivering tax books to the county collector, the clerk shallattach a warrant, under his or her seal of office, and deliver the bookto the county collector. The county collector shall collect the taxescharged against railroad property, and pay over and account for thetaxes in the manner provided in other cases. The book shall be re-turned by the collector and filed in the office of the county clerk. Thetaxes on all railroad property shall be extended as on other property,and shall be subject to the same penalties, dates of payment andmethods of enforcement as other property taxes. (Source: Laws 1945,p. 1212; P.A. 88-455.)

Sec. 9-115. Parcels in more than one taxing district.When any property is situated in more than one township or taxingdistrict, or is situated and assessed in any drainage district, fordrainage purposes, the portion in each township or taxing districtshall be listed separately. The lands in any drainage district shall belisted so as to correspond, as nearly as possible, to the respectivesubdivisions and descriptions in the latest assessment roll of thedrainage district. (Source: Laws 1939, p. 886; P.A. 88-455.)

Sec. 9-120. Combined listings.When a whole section, half section, quarter section, or half-quartersection of property, belongs to the same owner, it may, and shall, atthe request of the owner or his or her agent, be listed as one tract,and when all lots in the same block belong to the same owner theymay, and shall, at the request of the owner or his or her agent, belisted as a block. When several adjoining lots in the same blockbelong to the same owner, they may, and shall, at the request of theowner or his or her agent, be included in one description. However,this Section shall not apply to property on which delinquent orforfeited taxes are outstanding. (Source: Laws 1939, p. 886; P.A.88-455.)

Sec. 9-125. Verification of assessment lists.The county clerk shall compare the lists of property with the list oftaxable property on file in his or her office. (Source: Laws 1939, p.886; P.A. 88-455.)

Sec. 9-130. Delivery of assessment books.The chief county assessment officer shall call upon the county clerkon or before the first day of January in each year and receive theassessment books and blanks as prepared by the county clerk for theassessment of property for that year. (Source: P.A. 86-678; 88-455.)



Sec. 9-135. Correction of assessment lists.If the assessor or chief county assessment officer finds that any prop-erty subject to taxation, or special assessment, has not been returnedto him or her by the clerk, or has not been described in the subdivi-sions or manner required by this Code, he or she shall correct thereturn of the clerk, and shall list and assess the property in the man-ner required by law.

The assessor or chief county assessment officer shall, also, from timeto time, make alterations in the description of property as he or shemay find necessary. When property has been subdivided since themaking of the general assessment, the assessor or chief county as-sessment officer shall from time to time correct the descriptions sothat they correspond to the subdivision, and distribute the assess-ment in the proper proportions among the parcels into which theland has been subdivided; and in case of a vacation of a subdivisionreadjust the description of the assessment accordingly. (Source: Laws1939, p. 886; P.A. 88-455.)

Sec. 9-140. Loss or destruction of assessment books.When all or any part of the assessment rolls or collectors’ books ofany county, or other taxing district are lost or destroyed by anymeans whatever, a new assessment, or new books, as the case mayrequire, shall be made under the direction of the county board. Theboard shall, in those cases, fix reasonable times and dates for per-forming the work of assessment, equalization, levy, extension andcollection of taxes, and paying over the same, or making new books,as the circumstances of the case may require. All provisions of thisCode apply to the dates fixed by the county board, in the samemanner that they apply to the dates for similar purposes, as fixed bythis Code. The presiding officer of the county board may select andappoint persons, with the advice and consent of the county board,when he or she finds it necessary, to carry out provisions of thissection. (Source: P.A. 78-1128; 88-455.)

Division 4. Valuation procedures

Sec. 9-145. Statutory level of assessment.Except in counties with more than 200,000 inhabitants whichclassify property for purposes of taxation, property shall be val-ued as follows:



(a) Each tract or lot of property shall be valued at 33 1/3% of itsfair cash value.(b) Each taxable leasehold estate shall be valued at 33 1/3% of itsfair cash value.(c) Each building or structure which is located on the right of wayof any canal, railroad or other company leased or granted toanother company or person for a term of years, shall be valued at33 1/3% of its fair cash value.(d) Any property on which there is a coal or other mine, or stoneor other quarry, shall be valued at 33 1/3% of its fair cash value.Oil, gas and other minerals, except coal, shall have value and beassessed separately at 33 1/3% of the fair cash value of such oil,gas and other minerals. Coal shall be assessed separately at33 1/3% of the coal reserve economic value, as provided in Sec-tions 10-170 through 10-200.(e) In the assessment of property encumbered by public easement,any depreciation occasioned by such easement shall be deductedin the valuation of such property. Any property dedicated as anature preserve or as a nature preserve buffer under the IllinoisNatural Areas Preservation Act, for the purposes of this para-graph, is encumbered by a public easement and shall be depreci-ated for assessment purposes to a level at which its valuationshall be $1 per acre or portion thereof.

This Section is subject to and modified by Sections 10-110 through10-140 and 11-5 through 11-65. (Source: P.A. 91-497, eff. 1-1-00.)

Sec. 9-150. Classification of property.Where property is classified for purposes of taxation in accordancewith Section 4 of Article IX of the Constitution and with such otherlimitations as may be prescribed by law, the classification must beestablished by ordinance of the county board. If not so established,the classification is void. (Source: P.A. 78-700; 88-455.)

Sec. 9-155. Valuation in general assessment years.On or before June 1 in each general assessment year in all countieswith less than 3,000,000 inhabitants, and as soon as he or she reason-ably can in each general assessment year in counties with 3,000,000or more inhabitants, or if any such county is divided into assessmentdistricts as provided in Sections 9-215 through 9-225, as soon as heor she reasonably can in each general assessment year in those dis-tricts, the assessor, in person or by deputy, shall actually view anddetermine as near as practicable the value of each property listed fortaxation as of January 1 of that year, or as provided in Section 9-180,and assess the property at 33 1/3% of its fair cash value, or in accor-



dance with Sections 10-110 through 10-140 and 10-170 through10-200, or in accordance with a county ordinance adopted underSection 4 of Article IX of the Constitution of Illinois. The assessor ordeputy shall set down, in the books furnished for that purpose theassessed valuation of properties in one column, the assessed value ofimprovements in another, and the total valuation in a separate col-umn. (Source: P.A. 86-1481; 87-1189; 88-455.)

Sec. 9-160. Valuation in years other than general assessment years.On or before June 1 in each year other than the general assessmentyear, in all counties with less than 3,000,000 inhabitants, and as soonas he or she reasonably can in counties with 3,000,000 or more in-habitants, the assessor shall list and assess all property which be-comes taxable and which is not upon the general assessment, andalso make and return a list of all new or added buildings, structuresor other improvements of any kind, the value of which had not beenpreviously added to or included in the valuation of the property onwhich such improvements have been made, specifying the propertyon which each of the improvements has been made, the kind ofimprovement and the value which, in his or her opinion, has beenadded to the property by the improvements. The assessment shallalso include or exclude, on a proportionate basis in accordance withthe provisions of Section 9-180, all new or added buildings, struc-tures or other improvements, the value of which was not included inthe valuation of the property for that year, and all improvementswhich were destroyed or removed. In case of the destruction orinjury by fire, flood, cyclone, storm or otherwise, or removal of anystructures of any kind, or of the destruction of or any injury to or-chard timber, ornamental trees or groves, the value of which hasbeen included in any former valuation of the property, the assessorshall determine as near as practicable how much the value of theproperty has been diminished, and make return thereof.

Beginning January 1, 1996, the authority within a unit of local gov-ernment that is responsible for issuing building or occupancy per-mits shall notify the chief county assessment officer, by December 31of the assessment year, when a full or partial occupancy permit hasbeen issued for a parcel of real property. The chief county assess-ment officer shall include in the assessment of the property for thecurrent year the proportionate value of new or added improvementson that property from the date the occupancy permit was issued orfrom the date the new or added improvement was inhabitable andfit for occupancy or for intended customary use until December 31of that year. If the chief county assessment officer has already certi-fied the books for the year, the board of review or interim board ofreview shall assess the new or added improvements on a propor-



tionate basis for the year in which the occupancy permit was issuedor the new or added improvement was inhabitable and fit for occu-pancy or for intended customary use. The proportionate value of thenew or added improvements may be assessed by the board of re-view or interim board of review as omitted property pursuant toSections 9-265, 9-270, 16-50 and 16-140 in a subsequent year on aproportionate basis for the year in which the occupancy permit wasissued or the new or added improvement was inhabitable and fit foroccupancy or for intended customary use if it was not assessed inthat year. (Source: P.A. 91-486, eff. 1-1-00.)

Sec. 9-165. Definitions.As used in Sections 9-160 and 9-180:”Municipality” means a city, village or incorporated town.

”Governing body” means (a) the corporate authorities of a munici-pality with respect to territory within its corporate limits and (b) thecounty board with respect to territory in the county not within thecorporate limits of any municipality.

”Occupancy permit” means the certificate or permit, by whatevername denominated, which a municipality or county, under its au-thority to regulate the construction of buildings, issues as evidencethat all applicable requirements have been complied with and re-quires before any new, reconstructed or remodeled building may belawfully occupied. (Source: P.A. 91-357, eff. 7-29-99; 91-486, eff.1-1-00.)

Sec. 9-170. (Repealed).(Source: P.A. 88-455. Repealed by 89-412, eff. 11-17-95.)

Sec. 9-175. Owner on assessment date.The owner of property on January 1 in any year shall be liable forthe taxes of that year, except that when coal has been separatedfrom the land by deed or lease, the owner or lessee of the coal shallbe liable for the taxes on the coal in the year of first production andeach year thereafter until production ceases. Subject to the provi-sions of Section 20-210 for payment of current taxes on a specifiedpart or undivided share of property, in all cases of property havingmore than one owner as of January 1 of any year, each owner isliable jointly and severally in any action under Section 21-440 for alltaxes of that year. (Source: P.A. 86-949; 87-818; 88-455.)



Sec. 9-180. Pro-rata valuations; improvements or removal of im-provements.The owner of property on January 1 also shall be liable, on a propor-tionate basis, for the increased taxes occasioned by the constructionof new or added buildings, structures or other improvements on theproperty from the date when the occupancy permit was issued orfrom the date the new or added improvement was inhabitable andfit for occupancy or for intended customary use to December 31 ofthat year. The owner of the improved property shall notify the asses-sor, within 30 days of the issuance of an occupancy permit or within30 days of completion of the improvements, on a form prescribed bythat official, and request that the property be reassessed. The noticeshall be sent by certified mail, return receipt requested and shallinclude the legal description of the property.

When, during the previous calendar year, any buildings, structuresor other improvements on the property were destroyed and ren-dered uninhabitable or otherwise unfit for occupancy or for custom-ary use by accidental means (excluding destruction resulting fromthe willful misconduct of the owner of such property), the owner ofthe property on January 1 shall be entitled, on a proportionate basis,to a diminution of assessed valuation for such period during whichthe improvements were uninhabitable or unfit for occupancy or forcustomary use. The owner of property entitled to a diminution ofassessed valuation shall, on a form prescribed by the assessor,within 90 days after the destruction of any improvements or, incounties with less than 3,000,000 inhabitants within 90 days after thetownship or multi-township assessor has mailed the applicationform as required by Section 9-190, file with the assessor for the de-crease of assessed valuation. Upon failure so to do within the 90 dayperiod, no diminution of assessed valuation shall be attributable tothe property.

Computations under this Section shall be on the basis of a year of365 days. (Source: P.A. 91-486, eff. 1-1-00.)

Sec. 9-185. Change in use or ownership.The purchaser of property on January 1 shall be considered as theowner on that day. However, when a fee simple title or lesser inter-est in property is purchased, granted, taken or otherwise transferredfor a use exempt from taxation under this Code, that property shallbe exempt from taxes from the date of the right of possession, exceptthat property acquired by condemnation is exempt as of the date thecondemnation petition is filed. Whenever a fee simple title or lesserinterest in property is purchased, granted, taken or otherwise trans-ferred from a use exempt from taxation under this Code to a use not



so exempt, that property shall be subject to taxation from the date ofpurchase or conveyance. It shall be the obligation of the titleholderof record in such cases where there is a change in use or a change ina leasehold estate or, in cases where there has been a purchase,grant, taking or transfer, it is the obligation of the transferee to notifythe chief county assessment officer within 30 days of that action.Failure to give the notification, resulting in the assessing officialcontinuing to list the property as exempt in subsequent years, shallcause the property to be considered omitted property for the pur-pose of this Code. In those cases the county collector is authorizedto issue a tax bill to the person holding title to the property in thatpart of the year during which it was not exempt from taxation forthat part of the year and to accept payment of the bill as full andfinal settlement of tax liability for the year involved. (Source: P.A. 86-949; 87-818; 88-455.)

Sec. 9-190. Damaged or destroyed property.(a) When a property in a county with less than 3,000,000 inhabit-ants has been destroyed or rendered uninhabitable or otherwiseunfit for occupancy or customary use by natural disaster or acci-dental means, the township assessor shall send to the owner bycertified mail an application form for reduction of the assessedvaluation of that property as provided in Section 9-180.(b) Whenever an official, employee, or other representative of amunicipal fire department, fire protection district, volunteer fireprotection association, or emergency services and disaster agencyof a political subdivision of this State is required by law to makean official report to another government official or agency con-cerning a natural disaster or accident that is likely to cause realproperty to have a diminished assessed valuation, that official,employee, or representative shall make a copy of the report avail-able to the property owner on the owner’s request and shall in-sure that the report contains the following notice:

NOTICE TO PROPERTY OWNER

If your property has been damaged you may be eligible for adecrease in the assessed valuation of your property, which couldresult in lower property taxes.Contact your local assessor for more information.(c) Regardless of whether an official report concerning the naturaldisaster or accident is issued under subsection (b), the property



owner may notify the township assessor of the property’s de-struction, uninhabitability, or unfitness for occupancy or normaluse.

(Source: P.A. 87-818; 88-455; incorporates 88-221; 88-670, eff. 12-2-94.)

Sec. 9-195. Leasing of exempt property.(a) Except as provided in Sections 15-35, 15-55, 15-60, 15-100, 15-103, and 15-185, when property which is exempt from taxation isleased to another whose property is not exempt, and the leasingof which does not make the property taxable, the leasehold estateand the appurtenances shall be listed as the property of the lesseethereof, or his or her assignee. Taxes on that property shall becollected in the same manner as on property that is not exempt,and the lessee shall be liable for those taxes. However, no tax lienshall attach to the exempt real estate. The changes made by thisamendatory Act of 1997 and by this amendatory Act of the 91stGeneral Assembly are declaratory of existing law and shall not beconstrued as a new enactment. The changes made by Public Acts88-221 and 88-420 that are incorporated into this Section by thisamendatory Act of 1993 are declarative of existing law and are nota new enactment.(b) The provisions of this Section regarding taxation of leaseholdinterests in exempt property do not apply to any leasehold inter-est created pursuant to any transaction described in subsection (e)of Section 15-35, subsection (c-5) of Section 15-60, subsection (b) ofSection 15-100, Section 15-103, or Section 15-185.

(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02; 93-19, eff.6-20-03.)

Sec. 9-200. Previously exempt property.Property that is purchased, granted, taken or otherwise transferredfrom a use exempt from taxation under this Code to a use not soexempt shall be subject to taxation from the date of change of use,purchase or conveyance. In those cases the county collector mayissue a tax bill to the person holding title to the property for that partof the year during which it was not exempt, and may accept pay-ment of the bill as full and final settlement of tax liability for thatyear. (Source: P.A. 86-1481; 88-455.)

Sec. 9-205. Equalization.When deemed necessary to equalize assessments between or withintownships or between classes of property, or when deemed neces-sary to raise or lower assessments within a county or any partthereof to the level prescribed by law, changes in individual assess-



ments may be made by a township assessor or chief county assess-ment officer, under Section 9-75, by application of a percentageincrease or decrease to each assessment. (Source: P.A. 81-1034; 88-455.)

Sec. 9-210. Equalization by chief county assessment officer; coun-ties of less than 3,000,000.The chief county assessment officer in a county with less than3,000,000 inhabitants shall act as an equalizing authority for eachcounty in which he or she serves. The officer shall examine theassessments in the county and shall equalize the assessments byincreasing or reducing the entire assessment of property in thecounty or any area therein or of any class of property, so that theassessments will be at 33 1/3% of fair cash value. The equalizationprocess and analysis described in this Section shall apply to all prop-erty except farm and coal properties assessed under Sections 10-110through 10-140 and 10-170 through 10-200.

For each township or assessment district in the county, the supervi-sor of assessments shall annually determine the percentage relation-ship between the estimated 33 1/3% of the fair cash value of theproperty and the assessed valuations at which the property is listedfor each township, multi-township or assessment district. To makethis analysis, he or she shall use property transfers, property ap-praisals, and other means as he or she deems proper and reasonable.

With the ratio determined for each township or assessment district,the supervisor of assessments shall then determine the percentage tobe added to or deducted from the aggregate assessments in eachtownship or assessment district, other than property assessed underSections 10-110 through 10-140 and 10-170 through 10-200, in orderto produce a ratio of assessed value to fair cash value of 33 1/3%.That percentage shall be issued as an equalization factor for eachtownship or assessment district within each county served by thechief county assessment officer. The assessment officer shall thenchange the assessment of each parcel of property by application ofthe equalization factor. (Source: P.A. 88-455; 88-670, eff. 12-2-94.)

Sec. 9-215. General assessment years; counties of less than3,000,000.Except as provided in Sections 9-220 and 9-225, in counties havingthe township form of government and with less than 3,000,000 in-habitants, the general assessment years shall be 1995 and everyfourth year thereafter. In counties having the commission form ofgovernment and less than 3,000,000 inhabitants, the general assess-ment years shall be 1994 and every fourth year thereafter. (Source:P.A. 86-1481; 87-1189; 88-455.)



Sec. 9-220. Division into assessment districts; assessment years;counties of 3,000,000 or more.

(a) Notwithstanding any other provision in this Code to thecontrary, until January 1, 1996, the county board of a county with3,000,000 or more inhabitants may by resolution divide thecounty into any number of assessment districts. If the county isorganized into townships, the assessment districts shall followtownship lines. The assessment districts shall divide, as near aspracticable, the work of assessing the property in the county intoequal parts but neither the area nor the number of parcels need beequal in the assessment districts. The resolution shall number theassessment districts and provide for a general reassessment ofeach district at regular intervals determined by the county board.(b) Beginning January 1, 1996, in counties with 3,000,000 or moreinhabitants, assessment districts shall be subject to general reas-sessment according to the following schedule:

(1) The first assessment district shall be subject to generalreassessment in 1997 and every 3 years thereafter.(2) The second assessment district shall be subject to generalreassessment in 1998 and every 3 years thereafter.(3) The third assessment district shall be subject to generalreassessment in 1996 and every 3 years thereafter.

The boundaries of the 3 assessment districts are as follows: (i) thefirst assessment district shall be that portion of the county locatedwithin the boundaries of a municipality with 1,000,000 or moreinhabitants, (ii) the second assessment district shall be that portionof the county that lies north of State Route 64 (North Avenue) andoutside the boundaries of a municipality with 1,000,000 or moreinhabitants, and (iii) the third assessment district shall be that por-tion of the county that lies south of State Route 64 (North Avenue)and outside the boundaries of a municipality with 1,000,000 or moreinhabitants. (Source: P.A. 88-455; 89-126, eff. 7-11-95.)

Sec. 9-225. Division of county into four assessment districts.Resolutions of any county board dividing the county into four as-sessment districts, if adopted before January 1, 1990, shall remainvalid thereafter unless and until repealed by the county board.

The county board of any county may, by resolution adopted afterJanuary 1, 1992, divide the county into 4 assessment districts. Thecounty clerk shall forward a copy of the resolution to the Depart-ment. The assessment districts shall follow township lines if thecounty is organized into townships, and shall divide, as near as maybe, the work of assessing the property in the county into 4 equal



parts. Neither the area nor the number of parcels of property needbe equal in the 4 assessment districts. The resolution shall numberthe assessment districts 1 to 4 inclusive. The general assessmentyears for assessment district number 1 shall be 1992 and everyfourth year thereafter; for assessment district number 2, the generalassessment years shall be 1993 and every fourth year thereafter; forassessment district number 3, the general assessment years shall be1994 and every fourth year thereafter; and for assessment districtnumber 4, the general assessment years shall be 1995 and everyfourth year thereafter. However, the general assessments shall notinclude property constituting a farm which is assessed under Sec-tions 10-110 through 10-140. The county board of any county di-vided into assessment districts under this paragraph may provideby resolution for the assessment of the entire county in the generalassessment year provided by law for that county and for the dissolu-tion of the assessment district after the first such assessment.(Source: P.A. 86-1481; 87-1189; 88-455.)

Sec. 9-230. Return of township or multi-township assessmentbooks.

(a) The township or multi-township assessors in counties withless than 600,000 inhabitants, based on the 2000 federal decennialcensus, shall, on or before April 15 of the assessment year, returnthe assessment books or workbooks to the supervisor of assess-ments. The township or multi-township assessors in countieswith 600,000 or more but no more than 700,000 inhabitants, basedon the 2000 federal decennial census, shall, on or before October15 of the assessment year, return the assessment books or work-books to the supervisor of assessments. The township or multi-township assessors in counties with less than 3,000,000 inhabit-ants, but more than 700,000 inhabitants, based on the 2000 federaldecennial census, shall, on or before November 15 of the assess-ment year, return the assessment books or workbooks to the su-pervisor of assessments. If a township or multi-township assessorin a county with less than 3,000,000 inhabitants, but more than600,000 inhabitants, based on the 2000 federal decennial census,does not return the assessment books or work books within therequired time, the supervisor of assessments may take possessionof the books and complete the assessments pursuant to law. Eachof the books shall be verified by affidavit by the assessor substan-tially as follows:

State of Illinois) )ss.

County of ........)



I do solemnly swear that the book or books .... in number, towhich this affidavit is attached, contains a complete list of all ofthe property in the township or multi-township or assessmentdistrict herein described subject to taxation for the year .... so faras I have been able to ascertain, and that the assessed value setdown in the proper column opposite the descriptions of propertyis a just and equal assessment of the property according to law.

Dated ...............

(b) If the supervisor of assessments determines that the townshipor multi-township assessor has not completed the assessments asrequired by law before returning the assessment books under thisSection, the county board may submit a bill to the township boardof trustees for the reasonable costs incurred by the supervisor ofassessments in completing the assessments. The moneys collectedunder this subsection may be used by the supervisor of assess-ments only for the purpose of recouping costs incurred in com-pleting the assessments. (Source: P.A. 93-761, eff. 1-1-05; 94-417,eff. 8-2-05.)

Sec. 9-235. Failure to complete assessments.If the board of review, in any county under township organizationwith less than 3,000,000 inhabitants, fails to complete its work for theassessment year by the next January 1, the supervisor of assessmentsshall issue work books to the township assessors until the board ofreview completes its work. (Source: P.A. 85-1253; 88-455.)

Sec. 9-240. Assessment book totals.The assessor and chief county assessment officer shall add up andnote the aggregate of each column in the assessment books; andshall also add in each book, under proper headings, a tabular state-ment, showing the footings of the several columns upon each page;and shall add up and set down the total of each column. When theassessor or chief county assessment officer returns several assess-ment books, he or she shall, in addition to this tabular statement,return a similar statement showing the totals of all the books.(Source: P.A. 83-121; 88-455.)

Sec. 9-245. Return of books to board of review; counties of lessthan 3,000,000.In counties with less than 3,000,000 inhabitants, the chief countyassessment officer shall on or before the third Monday in June of theassessment year, return the assessment books to the board of reviewverified by affidavit, substantially in the following form:



State of Illinois) )ss..............County)

I,...., chief county assessment officer do solemnly swear that thisbook contains a correct and full list of all the property subject totaxation in ...., so far as I have been able to ascertain the same; andthat the assessed value set down in the column opposite the descrip-tions of property is a just and equitable assessment under the law, tothe best of my knowledge and belief, and that the footings of thecolumns and the accompanying tabular statement, are correct to thebest of my knowledge and belief.

Dated ..........(Source: P.A. 83-121; 88-455.)

Sec. 9-250. Abstract of assessment by county clerk.Annually, upon receipt of the assessment books from the board ofreview or board of appeals, each county clerk shall make out and,within 30 days, transmit to the Department, on forms provided orapproved by the Department, an abstract of the assessment of prop-erty. The values to be given in the abstracts shall be the assessedvaluations. (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

Sec. 9-255. Statement of incomplete assessments.In case of the failure of any assessor to certify the assessment withinthe time specified in this Act, each county clerk shall transmit to theDepartment a statement of the assessment in all the townships ordistricts from which returns have been received, together with astatement of the amount of taxable property assessed in the default-ing townships or districts for the previous year. (Source: Laws 1943,vol. 1, p. 1136; P.A. 88-455.)

Division 5. Omitted property

Sec. 9-260. Assessment of omitted property; counties of 3,000,000or more.

(a) After signing the affidavit, the county assessor shall havepower, when directed by the board of appeals (until the firstMonday in December 1998 and the board of review beginning thefirst Monday in December 1998 and thereafter), or on his or herown initiative, to assess properties which may have been omittedfrom assessments for the current year or during any year or years




for which the property was liable to be taxed, and for which thetax has not been paid, but only on notice and an opportunity to beheard in the manner and form required by law, and shall enter theassessments upon the assessment books. No charge for tax ofprevious years shall be made against any property if (a) the prop-erty was last assessed as unimproved, (b) the owner of such prop-erty gave notice of subsequent improvements and requested areassessment as required by Section 9-180, and (c) reassessment ofthe property was not made within the 16 month period immedi-ately following the receipt of that notice.(b) Any taxes based on the omitted assessment of a propertypursuant to Sections 9-260 through 9-270 shall be prepared andmailed at the same time as the estimated first installment prop-erty tax bill for the preceding year (as described in Section 21-30)is prepared and mailed. The omitted assessment tax bill is not dueuntil the date on which the second installment property tax billfor the preceding year becomes due. The omitted assessment taxbill shall be deemed delinquent and shall bear interest beginningon the day after the due date of the second installment (as de-scribed in Section 21-25). Any taxes for omitted assessmentsdeemed delinquent after the due date of the second installmenttax bill shall bear interest at the rate of 1.5% per month or portionthereof until paid or forfeited (as described in Section 21-25).(c) The assessor shall have no power to change the assessment oralter the assessment books in any other manner or for any otherpurpose so as to change or affect the taxes in that year, except asordered by the board of appeals (until the first Monday in Decem-ber 1998 and the board of review beginning the first Monday inDecember 1998 and thereafter). The county assessor shall make allchanges and corrections ordered by the board of appeals (until thefirst Monday in December 1998 and the board of review begin-ning the first Monday in December 1998 and thereafter). Thecounty assessor may for the purpose of revision by the board ofappeals (until the first Monday in December 1998 and the boardof review beginning the first Monday in December 1998 andthereafter) certify the assessment books for any town or taxingdistrict after or when such books are completed. (Source: P.A.93-560, eff. 8-20-03.)

Sec. 9-265. Omitted property; interest; change in exempt use orownership.If any property is omitted in the assessment of any year or years, sothat the taxes, for which the property was liable, have not been paid,or if by reason of defective description or assessment, taxes on anyproperty for any year or years have not been paid, or if any taxes arerefunded under subsection (b) of Section 14-5 because the taxes were


assessed in the wrong person’s name, the property, when discov-ered, shall be listed and assessed by the board of review or, in coun-ties with 3,000,000 or more inhabitants, by the county assessor eitheron his or her own initiative or when so directed by the board ofappeals or board of review. For purposes of this Section, “defectivedescription or assessment” includes a description or assessmentwhich omits all the improvements thereon as a result of which partof the taxes on the total value of the property as improved remainunpaid. In the case of property subject to assessment by the Depart-ment, the property shall be listed and assessed by the Department.All such property shall be placed on the assessment and tax books.The arrearages of taxes which might have been assessed, with 10%interest thereon for each year or portion thereof from 2 years afterthe time the first correct tax bill ought to have been received, shall becharged against the property by the county clerk.

When property or acreage omitted by either incorrect survey orother ministerial assessor error is discovered and the owner has paidits tax bills as received for the year or years of omission of the parcel,then the interest authorized by this Section shall not be chargeable tothe owner. However, nothing in this Section shall prevent the collec-tion of the principal amount of back taxes due and owing.

If any property listed as exempt by the chief county assessmentofficer has a change in use, a change in leasehold estate, or a changein titleholder of record by purchase, grant, taking or transfer, it shallbe the obligation of the transferee to notify the chief county assess-ment officer in writing within 30 days of the change. The notice shallbe sent by certified mail, return receipt requested, and shall includethe name and address of the taxpayer, the legal description of theproperty, and the property index number of the property when anindex number exists. If the failure to give the notification results inthe assessing official continuing to list the property as exempt insubsequent years, the property shall be considered omitted propertyfor purposes of this Code. (Source: P.A. 88-455; 89-126, eff. 7-11-95;89-671, eff. 8-14-96.)

Sec. 9-270. Omitted property; limitations on assessment.A charge for tax and interest for previous years, as provided inSections 9-265 or 14-40, shall not be made against any property foryears prior to the date of ownership of the person owning the prop-erty at the time the liability for the omitted tax was first ascertained.Ownership as used in this section shall be held to refer to bona fidelegal and equitable titles or interests acquired for value and withoutnotice of the tax, as may appear by deed, deed of trust, mortgage,



certificate of purchase or sale, or other form of contract. No chargefor tax of previous years, as provided in Section 9-265, shall be madeagainst any property if (a) the property was last assessed as unim-proved, (b) the owner of the property gave notice of subsequentimprovements and requested a reassessment as required by Section9-180, and (c) reassessment of the property was not made within the16 month period immediately following the receipt of that notice.The owner of property, if known, assessed under this and the pre-ceding section shall be notified by the county assessor, board ofreview or Department, as the case may require. (Source: P.A. 86-359;88-455.)

Article 12. Assessment Notice and

Publication Provisions

Division 1. Initial assessment process

Sec. 12-5. Taxpayer entitled to statement of valuation.The chief county assessment officer, when requested, shall deliver toany person a copy of the description or statement of property as-sessed in his or her name or in which he or she is interested, and thevaluation placed thereon by the assessor, chief county assessmentofficer, board of review, or board of appeals. (Source: Laws 1939, p.886; P.A. 88-455.)

Sec. 12-10. Publication of assessments; counties of less than3,000,000.In counties with less than 3,000,000 inhabitants, as soon as the chiefcounty assessment officer has completed the assessment in thecounty or in the assessment district, he or she shall, in each year of ageneral assessment, publish for the county or assessment district acomplete list of the assessment, by townships if so organized. Inyears other than years of a general assessment, the chief countyassessment officer shall publish a list of property for which assess-ments have been added or changed since the preceding assessment,together with the amounts of the assessments, except that publica-tion of individual assessment changes shall not be required if thechanges result from equalization by the supervisor of assessmentsunder Section 9-210, or Section 10-200, in which case the list shallinclude a general statement indicating that assessments have beenchanged because of the application of an equalization factor andshall set forth the percentage of increase or decrease represented by



the factor. The publication shall be made on or before December 31of that year, and shall be printed in some public newspaper or news-papers published in the county. In every township or assessmentdistrict in which there is published one or more newspapers of gen-eral circulation, the list of that township shall be published in one ofthe newspapers.

At the top of the list of assessments there shall be a notice in sub-stantially the following form printed in type no smaller than elevenpoint:

“NOTICE TO TAXPAYERS

Median Level of Assessment—(insert here the median level of as-sessment for the assessment district)

Your property is to be assessed at the above listed median level ofassessment for the assessment district. You may check the accuracyof your assessment by dividing your assessment by the median levelof assessment. The resulting value should equal the estimated faircash value of your property. If the resulting value is greater than theestimated fair cash value of your property, you may be over-as-sessed. If the resulting value is less than the fair cash value of yourproperty, you may be under-assessed. You may appeal your assess-ment to the Board of Review.”

The newspaper shall furnish to the local assessment officers as manycopies of the paper containing the assessment list as they may re-quire. (Source: P.A. 86-415; 86-1481; 87-1189; 88-455.)

Sec. 12-15. Publication fee - Counties of less than 3,000,000.The newspaper shall be paid a fee for publishing the assessment listaccording to the following schedule:

(a) For a parcel listing including the name of the property owner,a property index number and the total assessment, 80› per parcel;(b) For a parcel listing including the name of the property owner,a property index number, the assessed value of improvementsand the total assessment, $1.20 per parcel;(c) For a parcel listing including the name of the property owner,a legal description of the property and the total assessment, $1.20per parcel;(d) For a parcel listing including the name of the property owner,a property index number, a legal description and the total assess-ment, $1.60 per parcel;



(e) For a parcel listing including the name of the property owner,a legal description, the assessed value of improvements and thetotal assessment, $1.60 per parcel;(f) For a parcel listing including the name of the property owner,a property index number, a legal description, the assessed valueof improvements and the total assessment, $2.00 per parcel; and(g) For the preamble, headings, and any other explanatory mat-ter either required by law, or requested by the supervisor of as-sessments, to be published, the newspaper’s published rate forsuch advertising.

(Source: P.A. 86-415; 86-1481; 87-1189; 88-455.)

Sec. 12-20. Publication of assessments; counties of 3,000,000 ormore.In counties with 3,000,000 or more inhabitants, in each year of ageneral assessment, for each county or assessment district therein ifthe county is divided into assessment districts as provided in Sec-tion 9-220, the county assessor shall publish a complete assessmentlist as soon as the assessment is completed as required under thisSection. If the county assessor revises the assessment after the com-plete assessment list is published, then the county assessor mustpublish a subsequent list of all the revised assessments for that year.In years other than years of a general assessment or reassessment,the county assessor shall cause to be published, within the time andin the manner described here, a complete list of assessments inwhich changes are made together with the changes made in thevaluation or assessment of property since the last preceding assess-ment. The publication shall contain a copy of the land value map forthe township, if required by the Department.

The publication of the assessments or the changes shall be printed insome newspaper or newspapers of general circulation published inthe county except that, in every township or incorporated townwhich has superseded a civil township, in which there is publishedone or more newspapers of general circulation, the assessment list ofeach township shall be published in one of the newspapers. In citiesof more than 2,000,000 inhabitants, the assessment list of the cityshall be printed in one or more newspapers of general circulationpublished in the township assessment district within the city or, inthe event a newspaper of general circulation is not published withinthe township assessment district, in one or more newspapers ofgeneral circulation published within the city.

Any newspaper publishing an assessment list under this Section isentitled to a fee of 40¢ per column line for publishing the list.(Source: P.A. 93-759, eff. 1-1-05.)



Sec. 12-25. Contents of assessment list publication; payment.In all counties, the expense of printing and publication of assess-ment lists shall be paid out of the county treasury. The publication ofthe assessments shall include the name of the owner or of the personwho last paid the taxes on each property, and the total amount of itsassessment and how much of the assessment is attributable to theimprovements on the property. When any property so assessed issusceptible of description or identification by street name and streetor house number, or by a property index number, the publication ofthe street name and street or house number, or property index num-ber shall constitute a sufficient description of the property for thepurposes of publication required by this Code. (Source: Laws 1939,p. 886; P.A. 88-455.)

Sec. 12-30. Mailed notice of changed assessments; counties of lessthan 3,000,000.In every county with less than 3,000,000 inhabitants, in addition tothe publication of the list of assessments in each year of a generalassessment and of the list of property for which assessments havebeen added or changed, as provided above, a notice shall be mailedby the chief county assessment officer to each taxpayer whose as-sessment has been changed since the last preceding assessment,using the address as it appears on the assessor’s records, except inthe case of changes caused by a change in the county equalizationfactor by the Department or in the case of changes resulting fromequalization by the supervisor of assessments under Section 9-210,during any year such change is made. The notice may, but need notbe, sent by a township assessor. The notice shall include the medianlevel of assessment in the assessment district (as determined by themost recent 3 year assessment to sales ratio study adjusted to takeinto account any changes in assessment levels since the data for thestudies were collected), the previous year’s assessed value afterboard of review equalization, current assessed value and, in boldtype, a notice of possible eligibility for a homestead improvementexemption as provided in Section 15-180.

The notice shall include a statement in substantially the followingform:

“NOTICE TO TAXPAYER

Your property is to be assessed at the median level of assessment foryour assessment district. You may check the accuracy of your as-sessment by dividing your assessment by the median level of assess-ment for your assessment district. If the resulting value is greater



than the estimated fair cash value of your property, you may beover-assessed. If the resulting value is less than the estimated faircash value of your property, you may be under-assessed. You mayappeal your assessment to the Board of Review in the manner de-scribed elsewhere in this notice.”

The notice shall contain a brief explanation of the relationship be-tween the assessment and the tax bill (including an explanation ofthe equalization factors) and an explanation that the assessmentstated for the preceding year is the assessment after equalization bythe board of review in the preceding year, and shall set forth theprocedures and time limits for appealing assessments and that as-sessments of property, other than farm land and coal, are requiredby law to be 33 1/3% of value. Where practicable, the notice shallinclude the reason for any increase in the property’s valuation. Thenotice must also state the name and price per copy by mail of thenewspaper in which the list of assessments will be published. Theform and manner of providing the information and explanationsrequired to be in the notice shall be prescribed by the Department.(Source: P.A. 87-1189; 88-455; incorporates 88-321; 88-670, eff.12-2-94.)

Sec. 12-35. Notice sent to address of mortgage lender.Whenever a notice is to be mailed as provided in Sections 12-30, andthe address that appears on the assessor’s records is the address of amortgage lender, or in any event whenever the notice is mailed bythe township assessor or chief county assessment officer to a tax-payer at or in care of the address of a mortgage lender, the mortgagelender, within 15 days of the mortgage lender’s receipt of the notice,shall mail a copy of the notice to each mortgagor of the propertyreferred to in the notice at the last known address of each mortgagoras shown on the records of the mortgage lender. (Source: P.A. 86-415;86-1481; 87-1189; 88-455.)

Division 4. Revisions and corrections

Sec. 12-40. Notice provisions; equalization by board of review.The assessment of any class of property or of any township or multi-township or part thereof, or any portion of the county, shall not beincreased by an equalization factor applied by a board of reviewuntil the board has made one publication of notice in a newspaper ofgeneral circulation published in the county, of such proposed in-crease and has given an opportunity to be heard, within 20 days of



the publication date, to the owners of the property affected or anyone representing them, and other citizens of the territory. The asses-sor or chief county assessment officer shall have like opportunity tobe heard thereon, except where such action is taken in individualcases upon complaint. The board shall hear any person, upon re-quest, in opposition to a proposed reduction in the assessment ofany person or territory. (Source: P.A. 86-345; 86-413; 86-1028; 86-1481;88-455.)

Sec. 12-45. Publication of certificates of error.At the time publication is made under Section 12-60, the board ofreview shall also publish a complete list of the changes made inassessments by the issuance of certificates of error under Sections 14-20 and 16-75. The published list shall contain for each change theinformation enumerated in Section 12-25 and shall show the amountof the assessment prior to and after the action of the board of review.Publication shall be made in some newspaper or newspapers ofgeneral circulation published in the county in which the assessmentis made, except that in every township or assessment district inwhich there is published one or more newspapers of general circula-tion, the list of that township shall be published in one of thosenewspapers. (Source: P.A. 81-313; 88-455.)

Sec. 12-50. Mailed notice to taxpayer after change by board ofreview or board of appeals.If final board of review or board of appeals action regarding anyproperty, including equalization under Section 16-60 or Section 16-65, results in an increased or decreased assessment, the board shallmail a notice to the taxpayer, at his or her address as it appears inthe assessment records, whose property is affected by such action,and in the case of a complaint filed with a board of review underSection 16-25 or 16-115, to the taxing body filing the complaint. Acopy shall be given to the assessor or chief county assessment officerif his or her assessment was reversed or modified by the board.Written notice shall also be given to any taxpayer who filed a com-plaint in writing with the board and whose assessment was notchanged. The notice shall set forth the assessed value prior to boardaction; the assessed value after final board action but prior to anyequalization; and the assessed value as equalized by the board, if theboard equalizes. This notice shall state that the value as certified tothe county clerk by the board will be the locally assessed value ofthe property for that year and each succeeding year, unless revisedin a succeeding year in the manner provided in this Code. The writ-ten notice shall also set forth specifically the facts upon which theboard’s decision is based. In counties with less than 3,000,000 inhab-



itants, the notice shall also contain the following statement: “Youmay appeal this decision to the Property Tax Appeal Board by filinga petition for review with the Property Tax Appeal Board within 30days after this notice is mailed to you or your agent, or is personallyserved upon you or your agent”. In counties with 3,000,000 or moreinhabitants, the notice shall also contain the following statement:“You may appeal this decision to the Property Tax Appeal Board byfiling a petition for review with the Property Tax Appeal Boardwithin 30 days after the date of this notice or within 30 days after thedate that the Board of Review transmits to the county assessor pur-suant to Section 16-125 its final action on the township in whichyour property is located, whichever is later”. The Board shall pub-lish its transmittal date of final action on each township in at leastone newspaper of general circulation in the county. The changesmade by this amendatory Act of the 91st General Assembly apply tothe 1999 assessment year and thereafter. (Source: P.A. 91-393, eff. 7-30-99; 91-425, eff. 8-6-99.)

Sec. 12-55. Notice requirement if assessment is increased; countiesof 3,000,000 or more.(a) In counties with 3,000,000 or more inhabitants, a revision by thecounty assessor, except where such revision is made on complaint ofthe owner, shall not increase an assessment without notice to theperson to whom the most recent tax bill was mailed and an opportu-nity to be heard before the assessment is verified. When a notice ismailed by the county assessor to the address of a mortgagee, themortgagee, within 7 business days after the mortgagee receives thenotice, shall forward a copy of the notice to each mortgagor of theproperty referred to in the notice at the last known address of eachmortgagor as shown on the records of the mortgagee. There shall beno liability for the failure of the mortgagee to forward the notice toeach mortgagor. The assessor may provide for the filing of com-plaints and make revisions at times other than those dates publishedunder Section 14-35. When the county assessor has completed therevision and correction and entered the changes and revision in theassessment books, an affidavit shall be attached to the assessmentbooks in the form required by law, signed by the county assessor.(b) In counties with 3,000,000 or more inhabitants, for parcels, otherthan parcels in the class that includes the majority of the single-family residential parcels under a county ordinance adopted inaccordance with Section 4 of Article IX of the Illinois Constitution,located in the assessment district for which the current assessmentyear is a general assessment year, within 30 days after sending therequired notices under this Section, the county assessor shall filewith the board of appeals (until the first Monday in December 1998,



and the board of review beginning the first Monday in December1998 and thereafter) a list of the parcels for which the notices underthis Section were sent, showing the following information for eachsuch parcel: the parcel index number, the township in which theparcel is located, the class for the current year, the previous year’sfinal total assessed value, the total assessed value proposed by thecounty assessor, and the name of the person to whom the noticerequired under this Section was sent. The list shall be available forpublic inspection at the office of the board during the regular officehours of the board. The list shall be retained by the board for at least10 years after the date it is initially filed by the county assessor.(c) The provisions of subsection (b) of this Section shall be applicablebeginning with the assessment for the 1997 tax year.(Source: P.A. 90-4, eff. 3-7-97; 91-751, eff. 6-2-00.)

Sec. 12-60. List of assessment changes; publications.When the board of review in any county with less than 3,000,000inhabitants decides to reverse or modify the action of the chiefcounty assessment officer, or to change the list as completed, or theassessment or description of any property, the changes shall beentered upon the assessment books.

On or before the annual date for adjournment as fixed by Section 16-35, the board of review shall make a full and complete list, by town-ship if the county is so organized, of all changes in assessmentsmade by the board of review prior to the adjournment date. The listshall contain the information enumerated in Section 12-25 and shallshow the amount of the assessment as it appeared prior to and afterbeing acted upon by the board of review. The board of review neednot show on the list changes which only correct the description ofthe assessed property, the ownership of the property, or the name ofthe person in whose name the property is assessed. Changes by theboard that raise or lower, on a percentage basis, the total assessedvalue of property in any assessment district or the value of a particu-lar class of property, need not be shown on the list. However, the listshall contain a general statement indicating that a change has beenmade and shall state the percentage of increase or decrease.

The board of review shall deliver a copy of the list to the countyclerk who shall file it in his or her office, and a copy to the chiefcounty assessment officer. The lists shall be public records and opento inspection of all persons, and shall be preserved or destroyed inthe manner described in Section 16-90.



Within 30 days after the board has adjourned, the board shall, ineach year, publish, by township if the county is so organized, acomplete list of the changes made in assessments by the board as thechanges appear in the list required by this Section. The publicationshall be made in some newspaper or newspapers of general circula-tion published in the county in which the assessment is made. How-ever, in every township or assessment district in which there ispublished one or more newspapers of general circulation, the list ofthat township shall be published in one of those newspapers. Thenewspaper shall furnish to the local assessment officers as manycopies of the paper containing the list of changes as may be required.(Source: P.A. 85-696; 88-455.)

Sec. 12-65. Publication fee.Any newspaper publishing the list of Board of Review changes shallbe paid a fee according to the following schedule:

(a) For a parcel listing including the name of the property owner,a property index number, the previous total assessment and thenew total assessment, $1.20 per parcel;(b) For a parcel listing including the name of the property owner,a property index number, the previous assessed value of improve-ments, the previous total assessment, the new assessed value ofimprovements and the new total assessment, $1.50 per parcel;(c) For a parcel listing including the name of the property owner,a legal description of the property, the previous total assessmentand the new total assessment, $2 per parcel;(d) For a parcel listing including the name of the property owner,a property index number, a legal description, the previous totalassessment and the new total assessment, $2.40 per parcel;(e) For a parcel listing including the name of the property owner,a legal description, the previous assessed value of improvements,the new assessed value of improvements, the previous total as-sessment and the new total assessment, $2.80 per parcel;(f) For a parcel listing including the name of the property owner,a property index number, a legal description, the previous as-sessed value of improvements, the new assessed value of im-provements, the previous total assessment and the new totalassessment, $3 per parcel; and(g) For the preamble, headings, and any other explanatory mat-ter either required by law, or requested by the board of review, thenewspaper’s published rate for such advertising.

(Source: P.A. 85-696; 88-455.)



TITLE 5. REVIEW AND EQUALIZATION

Article 16. Review of Assessment Decisions

Division 1. General provisions

Sec. 16-5. Information from assessors to board of review andboard of appeals.The chief county assessment officer shall furnish to the board ofreview or board of appeals all books, papers and information in hisor her office requested by the board to assist it in the proper dis-charge of its duties. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671,eff. 8-14-96.)

Sec. 16-8. Books and records of chief county assessment officer.(a) In counties with 3,000,000 or more inhabitants, the chiefcounty assessment officer shall maintain records of the assessedvalue of each parcel of property and shall enter upon the propertyrecord card of each town or city lot or parcel of land the elements(or basis) of valuation and computations that are taken into con-sideration by the chief county assessment officer in ascertainingand determining the fair cash value of each town or city lot orparcel of land and of each improvement thereon, including theelements (shown by percentages or otherwise) that were takeninto consideration as enhancing or detracting elements (such asdepth, corner, alley, railway or other elements). The assessmentofficer shall maintain the records for at least 10 years.

Upon request by the board of appeals (until the first Monday inDecember 1998 and the board of review beginning the first Mon-day in December 1998 and thereafter), the officer shall immedi-ately furnish all of the requested records to the board. Therecords shall be available, on request, to the taxpayer. The chiefcounty assessment officer shall certify, in writing, the amount ofthe assessment to the board. If the records maintained by the chiefcounty assessment officer at the time the assessment is certified tothe board under subsection (a) contain none of the elements (orbasis) of valuation for the parcel, then any increase by the chiefcounty assessment officer shall be considered invalid by the boardacting on a complaint under Section 16-120; and no action by theboard under Section 16-120 shall result in an increase in the valua-tion for the parcel for the current assessment year.(b) In counties with 3,000,000 or more inhabitants, the noticegiven by the chief county assessment officer to a taxpayer of a



proposed increase in assessment shall designate the reason for theincrease. If a taxpayer files an assessment complaint with thechief county assessment officer, the notification to the taxpayer ofa determination on the assessment complaint shall designate thereason for the result.(c) The provisions of this Section shall be applicable beginningwith the assessment for the 1997 tax year.

(Source: P.A. 89-718, eff. 3-7-97; 90-4, eff. 3-7-97.)

Sec. 16-10. Summons by the board of review or board of appeals.A board of review or board of appeals may summon any assessor,deputy, or other person to appear before it to be examined underoath concerning the method by which any evaluation has beenascertained, and its correctness. Any person so summoned who fails,without good cause, to appear or appearing refuses to submit to theinquiry or answer questions asked by any member of the board, orany attorney representing the board, shall be guilty of a petty of-fense. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-15. Adjustments to prior year’s assessments.Each county clerk shall compile final adjustments made during thepreceding calendar year by the State Property Tax Appeal Board tothe aggregate assessed value of a school district for which suchadjustments are greater than $250,000 or 2% of the aggregate as-sessed value of a school district, whichever is less, and report thatinformation to the Department. By July 1 annually, the Departmentshall transmit the adjusted assessments reported since the prior July1 to the Illinois State Board of Education for purposes of calculatingthe amount of State aid to be apportioned to the various schooldistricts under the School Code. (Source: P.A. 86-237; 88-455.)

Division 2. Boards of review in countiesof less than 3,000,000 inhabitants

Sec. 16-20. Powers and duties of boards of review.In counties with less than 3,000,000 inhabitants, the board of reviewshall, in any year, whether the year of the general assessment or not,perform the functions set forth in Sections 16-25 through 16-90.(Source: P.A. 86-345; 86-413; 86-1028; 86-1481; 88-455.)



Sec. 16-25. Review after complaint by taxing bodies.Any taxing body that has an interest in an assessment made by anylocal assessment officer or officers may have the assessment re-viewed by the board of review by filing a complaint in writing withthe board within 30 calendar days after publication of the assess-ment list under Section 12-10. All complaints shall identify anddescribe the particular property and shall be filed with the board induplicate. The board shall make a determination as to the correctamount of the assessment, but the board shall not increase theamount of the assessment without first giving due notice and anopportunity to be heard to the taxpayer affected. (Source: P.A.78-450; 88-455.)

Sec. 16-30. Board of review meetings.In counties with less than 3,000,000 inhabitants, the board of reviewmay meet at times it deems necessary for supervising and directingthe clerk in the duties prescribed in this Article, and shall meet on orbefore the first Monday each June to revise the assessment of prop-erty. At the meeting, the board of review upon application of anytaxpayer or upon its own motion may revise the entire assessment ofany taxpayer or any part of the assessment as appears to it to be just.The assessment of the property of any person shall not be increasedunless that person or his or her agent first has been notified in writ-ing at the address that appears on the assessment books, and beengiven an opportunity to be heard. The meeting may be recessed asnecessary. (Source: P.A. 84-582; 88-455.)

Sec. 16-35. Adjournment of boards of review.The final adjournment of the board of review in counties of less than50,000 inhabitants shall be on or before September 7; in counties of50,000 or more but less than 75,000 inhabitants, the adjournmentshall be on or before October 7; in counties of 75,000 or more but lessthan 100,000 inhabitants, the adjournment shall be on or beforeNovember 7; and in counties of 100,000 or more inhabitants theboard shall adjourn not later than December 31. If the work for thatassessment year is not completed, the board of review shall, with theapproval of the county board, recess on or before its adjournmentdate as specified above, until the clerk of the board of review notifiesthe members of the board of review in writing to return to sessionto complete their work. The board of review shall adjourn when thework for that assessment year is completed and the assessmentbooks certified to the county clerk. (Source: P.A. 90-14, eff. 7-1-97.)



Sec. 16-40. Prohibition of per diem compensation.Except under Section 6-30, no per diem compensation shall be paidby the county board to any member of the board of review. (Source:P.A. 84-582; 88-455.)

Sec. 16-45. Consolidated hearings.In counties with less than 3,000,000 inhabitants, the board of review,on request of a taxpayer complainant, shall consolidate 2 or morecomplaints into one hearing, notwithstanding the provisions ofSection 16-55 relating to the consideration of complaints by town-ships or taxing districts. When it is impractical to do so because theassessment books necessary to determine all complaints at one timeare not available, those complaints for which the necessary booksare available shall be consolidated. (Source: P.A. 80-613; 88-455.)

Sec. 16-50. Omitted property.The Board of review shall assess all omitted property as provided inSections 9-265 and 9-270. An assessment of omitted property by theboard of review in the manner provided in this Code shall not besubject to review by any succeeding board.

For the purpose of enforcing the provisions of this Code, the severaltaxing bodies interested therein are hereby empowered to employcounsel to appear before the board and take all necessary steps toenforce the assessment on such omitted property. (Source: P.A. 86-345; 86-413; 86-1028; 86-1481; 88-455.)

Sec. 16-55. Complaints.On written complaint that any property is overassessed or underass-essed, the board shall review the assessment, and correct it, as ap-pears to be just, but in no case shall the property be assessed at ahigher percentage of fair cash value than other property in the as-sessment district prior to equalization by the board or the Depart-ment. A complaint to affect the assessment for the current year shallbe filed on or before the 10th day of August in counties with lessthan 150,000 inhabitants and on or before the 10th day of Septemberin counties with 150,000 or more but less than 3,000,000 inhabitants,except if the assessment books containing the assessment com-plained of are not filed with the board of review by the 10th day ofJuly in a county with fewer than 150,000 inhabitants or by the 10thday of August in a county with 150,000 or more but less than3,000,000 inhabitants, then the complaint shall be filed on or before30 calendar days after the date of publication of the assessment listunder Section 12-10. The board may also, at any time before itsrevision of the assessments is completed in every year, increase,



reduce or otherwise adjust the assessment of any property, makingchanges in the valuation as may be just, and shall have full powerover the assessment of any person and may do anything in regardthereto that it may deem necessary to make a just assessment, butthe property shall not be assessed at a higher percentage of fair cashvalue than the assessed valuation of other property in the assess-ment district prior to equalization by the board or the Department.No assessment shall be increased until the person to be affected hasbeen notified and given an opportunity to be heard, except as pro-vided below. Before making any reduction in assessments of its ownmotion, the board of review shall give notice to the assessor or chiefcounty assessment officer who certified the assessment, and give theassessor or chief county assessment officer an opportunity to beheard thereon. All complaints of errors in assessments of propertyshall be in writing, and shall be filed by the complaining party withthe board of review, in duplicate. The duplicate shall be filed by theboard of review with the assessor or chief county assessment officerwho certified the assessment. In all cases where a change in assessedvaluation of $100,000 or more is sought, the board of review shallalso serve a copy of the petition on all taxing districts as shown onthe last available tax bill at least 14 days prior to the hearing on thecomplaint. All taxing districts shall have an opportunity to be heardon the complaint. Complaints shall be classified by townships ortaxing districts by the clerk of the board of review. All classes ofcomplaints shall be docketed numerically, each in its own class, inthe order in which they are presented, in books kept for that pur-pose, which books shall be open to public inspection. Complaintsshall be considered by townships or taxing districts until all com-plaints have been heard and passed upon by the board. (Source: P.A.86-345; 86-413; 86-1028; 86-1481; 88-455.)

Sec. 16-60. Equalization within counties - Publication and hear-ing.After notice and hearing as required by Section 12-40, the board ofreview may increase or reduce the entire assessment, or the assess-ment of any class included therein, if, in its opinion, the assessmenthas not been made upon the proper basis. The board may alsoequalize the assessment in any multi-township or township, or partthereof, or any portion of the county. (Source: P.A. 86-345; 86-413; 86-1028; 86-1481; 88-455.)

Sec. 16-65. Equalization process.The board of review shall act as an equalizing authority, if afterequalization by the supervisor of assessments the equalized as-sessed value of property in the county is not 33 1/3% of the total fair



cash value. The board shall, after notice and hearing as required bySection 12-40, lower or raise the total assessed value of property inany assessment district within the county so that the property, otherthan farm and coal property assessed under Sections 10-110 through10-140 and Sections 10-170 through 10-200, will be assessed at 33 1/3% of its fair cash value.

For each assessment district of the county, the board of review shallannually determine the percentage relationship between the valua-tions at which property other than farm and coal property is listedand the estimated 33 1/3% of the fair cash value of such property.To make this analysis, the board shall use at least 25 property trans-fers, or a combination of at least 25 property transfers and propertyappraisals, such information as may be submitted by interestedtaxing bodies, or any other means as it deems proper and reason-able. If there are not 25 property transfers available, or if these 25property transfers do not represent a fair sample of the types ofproperties and their proportional distribution in the assessmentdistrict, the board shall select a random sample of properties of anumber necessary to provide a combination of at least 25 propertytransfers and property appraisals as much as possible representativeof the entire assessment district, and provide for their appraisal. Thetownship or multi-township assessor shall be notified of and partici-pate in the deliberations and determinations.

With the ratio determined for each assessment district, the boardshall ascertain the amount to be added or deducted from the aggre-gate assessment on property subject to local assessment jurisdiction,other than farm and coal property, to produce a ratio of assessedvalue to 33 1/3% of the fair cash value equivalent to 100%. However,in determining the amount to be added to the aggregate assessmenton property subject to local jurisdiction in order to produce a ratio ofassessed value to 33 1/3% of the fair cash value equivalent to 100%,the board shall not, in any one year, increase or decrease the aggre-gate assessment of any assessment district by more than 25% of theequalized valuation of the district for the previous year, except thatadditions, deletions or depletions to the taxable property shall beexcluded in computing the 25% limitation. The board shall completethe equalization by the date prescribed in Section 16-35 for theboard’s adjournment, and, within 10 days thereafter, shall report theresults of its work under this Section to the Department. At least 30days prior to its adjournment, the board shall publish a notice de-claring whether it intends to equalize assessments as provided inthis Section. The notice shall be published in a newspaper of generalcirculation in the county. If the board fails to report to the Depart-ment within the required time, or if the report discloses that the



board has failed to make a proper and adequate equalization ofassessments, the Department shall direct, determine, and supervisethe assessment so that all assessments of property are relatively justand equal as provided in Section 8-5. (Source: P.A. 84-1343; 88-455.)

Sec. 16-70. Determination of exemptions.The board of review shall hear and determine the application of anyperson who is assessed on property claimed to be exempt fromtaxation. However, the decision of the board shall not be final, ex-cept as to homestead exemptions. Upon filing of any application fora non-homestead exemption which would reduce the assessed valu-ation of any property by more than $100,000, the owner shall deliver,in person or by mail, a copy of the application to any municipality,school district, community college district, and fire protection dis-trict in which the property is situated. Failure of a municipality,school district, community college district, or fire protection districtto receive the notice shall not invalidate any exemption. The boardshall give the municipalities, school districts, community collegedistricts, fire protection districts, and the taxpayer an opportunity tobe heard. The clerk of the board in all cases other than homesteadexemptions, under the direction of the board, shall make out andforward to the Department, a full and complete statement of all thefacts in the case. The Department shall determine whether the prop-erty is legally liable to taxation. It shall notify the board of review ofits decision, and the board shall correct the assessment if necessary.The decision of the Department is subject to review under Sections8-35 and 8-40. The extension of taxes on any assessment shall not bedelayed by any proceedings under this Section, and, if the Depart-ment rules that the property is exempt, any taxes extended upon theunauthorized assessment shall be abated or, if paid, shall be re-funded. (Source: P.A. 94-1031, eff. 1-1-07.)

Sec. 16-75. Certificates of error.The board of review shall, at any time before judgment, if an error ormistake is discovered (other than errors of judgment as to the valua-tion), in any assessment, issue to the person erroneously assessed acertificate setting forth the nature of the error and its cause orcauses. The certificate when properly endorsed by the chief countyassessment officer, showing concurrence therein, and not otherwise,may be used in evidence in any court of competent jurisdiction, andwhen so introduced in evidence, shall become a part of the courtrecords, and shall not be removed from the files except upon theorder of the court.



After the board of review has issued a certificate of error and it hasbeen properly endorsed by the chief county assessment officer, 2copies of the certificate shall be made and one copy given to thecounty clerk and one copy to the collector. The county clerk shallkeep records of the changes or corrections made in the certificateand shall certify such corrections to the collector so that he or shecan account for the proper amount of taxes chargeable to him or her.(Source: P.A. 91-377, eff. 7-30-99.)

Sec. 16-80. Reduced assessment of homestead property.In any county with fewer than 3,000,000 inhabitants, if the board ofreview lowers the assessment of a particular parcel on which a resi-dence occupied by the owner is situated, the reduced assessment,subject to equalization, shall remain in effect for the remainder of thegeneral assessment period as provided in Sections 9-215 through9-225, unless the taxpayer, county assessor, or other interested partycan show substantial cause why the reduced assessment should notremain in effect, or unless the decision of the board is reversed ormodified upon review. (Source: P.A. 88-455; 89-126, eff. 7-11-95;89-671, eff. 8-14-96.)

Sec. 16-85. Certification of assessment books.The board of review in counties with less than 3,000,000 inhabitants,shall, on or before the annual date for adjournment as fixed by Sec-tion 16-35, complete its work and make the entries in the assess-ment books required to make the assessment conform to the changesmade therein by the board of review, and shall attach to each bookan affidavit signed by at least 2 members of the board, which affida-vit shall be substantially in the following form: State of Illinois,County of ....,

We, and each of us, as a member of the board of review of the countyof .... in the State of Illinois, do solemnly swear that the book towhich this affidavit is attached contains a full and complete list of allthe property in the county subject to taxation for the year .... so far aswe have been able to ascertain, and that the assessed value set downopposite the description of a property, is, in our opinion, a just andequal assessment of the property for the purposes of taxation ac-cording to law, and that the footings of the columns in the book arecorrect, to the best of our knowledge and belief.

Dated ....(Source: P.A. 83-121; 88-455.)



Sec. 16-90. Delivery of assessment books.In counties with less than 3,000,000 inhabitants, when the books arecompleted, the board of review shall deliver one set of the books tothe county clerk, who shall file it in his or her office; and one set tothe chief county assessment officer. All of the books shall be publicrecords. All assessors’ books shall be retained for a period of 5 years,after which the county Board may order the officer having custodyof the books to dispose of them and to certify that fact, when com-pleted, to the county board. The assessment completed by the boardof review and certified to the county clerk, as equalized, shall be theassessment upon which the taxes of that year shall be extended bythe county clerk. (Source: P.A. 83-1362; 88-455.)

Division 3. Board of review;counties of 3,000,000 or more

Sec. 16-95. Powers and duties of board of appeals or review; com-plaints.In counties with 3,000,000 or more inhabitants, until the first Mon-day in December 1998, the board of appeals in any year shall, oncomplaint that any property is overassessed or underassessed, or isexempt, review and order the assessment corrected.

Beginning the first Monday in December 1998 and thereafter, incounties with 3,000,000 or more inhabitants, the board of review:

(1) shall, on written complaint of any taxpayer or any taxingdistrict that has an interest in the assessment that any propertyis overassessed, underassessed, or exempt, review the assess-ment and confirm, revise, correct, alter, or modify the assess-ment, as appears to be just; and(2) may, upon written motion of any one or more members ofthe board that is made on or before the dates specified in no-tices given under Section 16-110 for each township and upongood cause shown, revise, correct, alter, or modify any assess-ment (or part of an assessment) of real property regardless ofwhether the taxpayer or owner of the property has filed acomplaint with the board.No assessment may be changed by the board on its own mo-tion until the taxpayer in whose name the property is assessedand the chief county assessment officer who certified the as-sessment have been notified and given an opportunity to be



heard thereon. All taxing districts shall have an opportunity tobe heard on the matter. (Source: P.A. 91-393, eff. 7-30-99; 91-425,eff. 8-6-99.)

Sec. 16-100. Correction orders.In counties with 3,000,000 or more inhabitants, the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning the first Monday in December 1998 and thereafter) in anyyear shall order the county assessor to correct any mistake or error(other than mistakes or errors of judgment as to the valuation of anyproperty) in the manner provided in Sections 14-10 and 16-145.(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-105. Time of meeting - Public records.In counties with 3,000,000 or more inhabitants, the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning the first Monday in December 1998 and thereafter) shallmeet on or before the second Monday in September in each year forthe purpose of revising the assessment of property as provided forin this Code. The meeting may be adjourned from day to day asmay be necessary.

All hearings conducted by the board under this Code shall be opento the public. All files maintained by the board relating to the mat-ters specified in Sections 16-95, 16-100, and 16-140 shall be availablefor public inspection during regular office hours. However, only theactual portions of the income tax return relating to the property forwhich a complaint has been filed shall be a public record. Copies ofsuch records shall be furnished upon request. The board maycharge for the costs of copying, at 35› per page of legal size orsmaller and $1 for each larger page. (Source: P.A. 88-455; 89-126, eff.7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-110. Notice of meetings - Filing complaints.In counties with 3,000,000 or more inhabitants, at least one weekbefore its meeting to revise and correct assessments, the board ofappeals (until the first Monday in December 1998 and the board ofreview beginning the first Monday in December 1998 and thereafter)shall publish a notice of the time and place of that meeting. Theboard shall, from time to time, publish notices which shall specifythe date and place at which complaints may be filed for those town-ships or taxing districts for which property assessments have beencompleted by the county assessor, and which will then be consid-ered for revision and correction at that time. All notices required by



this Section may provide for a revision and correction at the speci-fied time of one or more townships or taxing districts. All suchnotices shall be published once in at least one newspaper of generalcirculation published in the county. The board at the time and placefixed, and upon notice as provided in this Section, may receive andhold hearings on all those complaints and revise and correct assess-ments within those townships or taxing districts. Taxpayers shallhave at least 20 days after the date of publication of the notice withinwhich to file complaints. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-115. Filing complaints.In counties with 3,000,000 or more inhabitants, complaints that anyproperty is overassessed or underassessed or is exempt may bemade by any taxpayer. Complaints that any property isoverassessed or underassessed or is exempt may be made by a tax-ing district that has an interest in the assessment to a board of re-view. All complaints shall be in writing, identify and describe theparticular property, otherwise comply with the rules in force, besigned by the complaining party or his or her attorney, and be filedwith the board of appeals (until the first Monday in December 1998and the board of review beginning the first Monday in December1998 and thereafter) in at least duplicate. The board shall forwardone copy of each complaint to the county assessor.

Complaints by taxpayers and taxing districts and certificates ofcorrection by the county assessor as provided in this Code shall befiled with the board according to townships on or before the datesspecified in the notices given in Section 16-110. (Source: P.A. 88-455;89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-120. Decision on complaints.In counties with 3,000,000 or more inhabitants, at its meeting for thepurpose of revising and correcting the assessments, the board ofappeals (until the first Monday in December 1998 and the board ofreview beginning the first Monday in December 1998 and thereaf-ter), upon complaint filed by a taxpayer or taxing district as pre-scribed in this Code, may revise the entire assessment of any tax-payer, or any part thereof, and correct the same as shall appear tothe board to be just. The assessment of the property of any taxpayershall not be increased unless that taxpayer or his agent shall firsthave been notified in writing and been given an opportunity to beheard. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)



Sec. 16-125. Hearings.In counties with 3,000,000 or more inhabitants, complaints filed withthe board of appeals (until the first Monday in December 1998 andthe board of review beginning the first Monday in December 1998and thereafter) shall be classified by townships. All complaints shallbe docketed numerically, in the order in which they are presented, asnearly as possible, in books or computer records kept for that pur-pose, which shall be open to public inspection. The complaints shallbe considered by townships until they have been heard and passedupon by the board. After completing final action on all matters in atownship, the board shall transmit such final actions to the countyassessor.

A hearing upon any complaint shall not be held until the taxpayeraffected and the county assessor have each been notified and havebeen given an opportunity to be heard. All hearings shall be open tothe public and the board shall sit together and hear the representa-tions of the interested parties or their representatives. An order for acorrection of any assessment shall not be made unless both commis-sioners of the board, or a majority of the members in the case of aboard of review, concur therein, in which case, an order thereforshall be made in open session and entered in the records of theboard. When an assessment is ordered corrected, the board shalltransmit a computer printout of the results, or make and sign a briefwritten statement of the reason for the change and the manner inwhich the method used by the assessor in making the assessmentwas erroneous, and shall deliver a copy of the statement to thecounty assessor. Upon request the board shall hear any taxpayer inopposition to a proposed reduction in any assessment.

The board may destroy or otherwise dispose of complaints andrecords pertaining thereto after the lapse of 5 years from the date offiling. (Source: P.A. 91-393, eff. 7-30-99; 91-425, eff. 8-6-99; 92-133, eff.7-24-01.)

Sec. 16-130. Exemption procedures; board of appeals; board ofreview.Whenever the board of appeals (until the first Monday in December1998 and the board of review beginning the first Monday in Decem-ber 1998 and thereafter) in any county with 3,000,000 or more inhab-itants determines that any property is or is not exempt from taxa-tion, the decision of the board shall not be final, except as to home-stead exemptions. Upon filing of any application for an exemptionwhich would, if approved, reduce the assessed valuation of anyproperty by more than $100,000, other than a homestead exemption,



the owner shall give timely notice of the application by mailing acopy of it to any municipality, school district and community collegedistrict in which such property is situated. Failure of a municipality,school district or community college district to receive the noticeshall not invalidate any exemption. The board shall give the munici-palities, school districts and community college districts and thetaxpayer an opportunity to be heard. In all exemption cases otherthan homestead exemptions, the secretary of the board shall complywith the provisions of Section 5-15. The Department shall then deter-mine whether the property is or is not legally liable to taxation. Itshall notify the board of its decision and the board shall correct theassessment accordingly, if necessary. The decision of the Departmentis subject to review under Sections 8-35 and 8-40. The extension oftaxes on any assessment shall not be delayed by any proceedingsunder this paragraph, and, in case the property is determined to beexempt, any taxes extended upon the unauthorized assessment shallbe abated or, if already paid, shall be refunded. (Source: P.A. 88-455;89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-135. Omitted property; Notice provisions.In counties with 3,000,000 or more inhabitants, the owner of prop-erty and the executor, administrator, or trustee of a decedent whoseproperty has been omitted in the assessment in any year or years oron which a tax for which the property was liable has not been paid,and the several taxing bodies interested therein, shall be given atleast 5 days notice in writing by the board of appeals (until the firstMonday in December 1998 and the board of review beginning thefirst Monday in December 1998 and thereafter) or county assessor ofthe hearing on the proposed assessments of the omitted property.The board or assessor shall have full power to examine the owner, orthe executor, administrator, trustee, legatee, or heirs of the decedent,or other person concerning the ownership, kind, character, amountand the value of the omitted property.

If the board determines that the property of any decedent was omit-ted from assessment during any year or years, or that a tax forwhich the property was liable, has not been paid, the board shalldirect the county assessor to assess the property. However, if thecounty assessor, on his or her own initiative, makes such a determi-nation, then the assessor shall assess the property. No charge for taxof previous years shall be made against any property prior to thedate of ownership of the person owning the property at the time theliability for such omitted tax is first ascertained. Ownership as usedin this Section refers to bona fide legal and equitable titles or inter-ests acquired for value and without notice of the tax, as may appear



by deed, deed of trust, mortgage, certificate of purchase or sale, orother form of contract. No such charge for tax of previous years shallbe made against any property if

(a) the property was last assessed as unimproved,(b) the owner of the property, gave notice of subsequent improve-ments and requested a reassessment as required by Section 9-180,and(c) reassessment of the property was not made within 16 monthsof receipt of that notice.

The assessment of omitted property by the county assessor may bereviewed by the board in the same manner as other assessments arereviewed under the provisions of this Code and when so reviewed,the assessment shall not thereafter be subject to review by any suc-ceeding board.

For the purpose of enforcing the provisions of this Code, relating toproperty omitted from assessment, the taxing bodies interestedtherein are hereby empowered to employ counsel to appear beforethe board or assessor (as the case may be) and take all necessarysteps to enforce the assessment on the omitted property. (Source:P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-140. Omitted property.In counties with 3,000,000 or more inhabitants, the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning the first Monday in December 1998 and thereafter) in anyyear shall direct the county assessor, in accordance with Section16-135, when he or she fails to do so on his or her own initiative, toassess all property which has not been assessed, for any reason, andenter the same upon the assessment books and to list and assess allproperty that has been omitted in the assessment of any year oryears. If the tax for which that property was liable has not been paidor if any property, by reason of defective description or assessmentthereof, fails to pay taxes for any year or years, the property, whendiscovered by the board shall be listed and assessed by the countyassessor. The board may order the county assessor to make suchalterations in the description of property as it deems necessary. Nocharge for tax of previous years shall be made against any propertyif

(a) the property was last assessed as unimproved,(b) the owner of the property gave notice of subsequent improve-ments and requested a reassessment as required by Section 9-180,and


114 PTAX-1-BR — Board of Review — Basic Course2-72 Unit 2: Duties, Responsibilities, and Procedures of Boards of Review and the Property Tax Code

(c) reassessment of the property was not made within 16 monthsof receipt of that notice.

The board shall hear complaints and revise assessments of any par-ticular parcel of property of any person identified and described in acomplaint filed with the board and conforming to the requirementsof Section 16-115. The board shall make revisions in no other cases.(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-145. Assessment list changes.In counties with 3,000,000 or more inhabitants, the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning the first Monday in December 1998 and thereafter), inrevising assessments in any year, shall require the county assessor tonote all changes in the valuation of property upon an assessment listand books certified by the county assessor. (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Sec. 16-147. Reduced assessment of homestead property.In any county with 3,000,000 or more inhabitants, if the board ofreview or board of appeals lowers the assessment of a particularparcel on which a residence occupied by the owner is situated, thereduced assessment, subject to equalization, shall remain in effectfor the remainder of the general assessment period as provided inSections 9-215 through 9-225, unless the taxpayer, county assessor, orother interested party can show substantial cause why the reducedassessment should not remain in effect, or unless the decision of theboard is reversed or modified upon review. (Source: P.A. 89-671, eff.8-14-96.)

Sec. 16-150. Certification of assessment books.In counties with 3,000,000 or more inhabitants, the board of appeals(until the first Monday in December 1998 and the board of reviewbeginning the first Monday in December 1998 and thereafter) shall,on or before the annual date for final adjournment as fixed by thisSection, complete its work, and order the county assessor to makethose entries in the assessment books and lists as may be required tomake the assessments conform with the changes directed to be madetherein by the board. The county assessor and a majority of themembers of the board shall attach to each of the assessment books inthe possession of the county assessor and the county clerk an affida-vit signed by the county assessor and a majority of the members ofthe board, which affidavit shall be in substantially the followingform:


State of Illinois) ) ss.

County of .......)

We, and each of us, as county assessor and as members of the (boardof appeals or board of review) of the County of ...., in the State ofIllinois, do solemnly swear that the books .... in number .... to whichthis affidavit is attached, contain a full and complete list of all theproperty in this county subject to taxation for the year (insert year)so far as we have been able to ascertain them, and that the assessedvalue set down in the proper column opposite the several kinds anddescriptions of property, is, in our opinion, a just and equal assess-ment of the property for the purposes of taxation according to law,and that the footings of the several columns in these books are cor-rect to the best of our knowledge and belief.The final date of adjournment of the board shall be 60 days after thedate of the last delivery to it of the assessment books for any town-ship or taxing district.(Source: P.A. 91-357, eff. 7-29-99.)

Sec. 16-155. Use of certified assessments.In counties with 3,000,000 or more inhabitants, the assessments ofproperty after review by the board of appeals (until the first Mondayin December 1998 and the board of review beginning the first Mon-day in December 1998 and thereafter) shall be certified to the countyclerk and shall be the basis of that clerk’s reports of assessments tothe Department and, as equalized, shall be used by the county clerkin ascertaining tax rates and extending taxes. (Source: P.A. 88-455;89-126, eff. 7-11-95; 89-671, eff. 8-14-96.)

Division 4. Property Tax Appeal Board

Sec. 16-160. Property Tax Appeal Board; process.In counties with 3,000,000 or more inhabitants, beginning with as-sessments made for the 1996 assessment year for residential prop-erty of 6 units or less and beginning with assessments made for the1997 assessment year for all other property, and for all property inany county other than a county with 3,000,000 or more inhabitants,any taxpayer dissatisfied with the decision of a board of review orboard of appeals as such decision pertains to the assessment of his orher property for taxation purposes, or any taxing body that has aninterest in the decision of the board of review or board of appeals onan assessment made by any local assessment officer, may, (i) in coun-


ties with less than 3,000,000 inhabitants within 30 days after the dateof written notice of the decision of the board of review or (ii) inassessment year 1999 and thereafter in counties with 3,000,000 ormore inhabitants within 30 days after the date of the board of reviewnotice or within 30 days after the date that the board of review trans-mits to the county assessor pursuant to Section 16-125 its final actionon the township in which the property is located, whichever is later,appeal the decision to the Property Tax Appeal Board for review. Inany appeal where the board of review or board of appeals has givenwritten notice of the hearing to the taxpayer 30 days before thehearing, failure to appear at the board of review or board of appealshearing shall be grounds for dismissal of the appeal unless a con-tinuance is granted to the taxpayer. If an appeal is dismissed forfailure to appear at a board of review or board of appeals hearing,the Property Tax Appeal Board shall have no jurisdiction to hear anysubsequent appeal on that taxpayer’s complaint. Such taxpayer ortaxing body, hereinafter called the appellant, shall file a petition withthe clerk of the Property Tax Appeal Board, setting forth the factsupon which he or she bases the objection, together with a statementof the contentions of law which he or she desires to raise, and therelief requested. If a petition is filed by a taxpayer, the taxpayer isprecluded from filing objections based upon valuation, as may oth-erwise be permitted by Sections 21-175 and 23-5. However, anytaxpayer not satisfied with the decision of the board of review orboard of appeals as such decision pertains to the assessment of his orher property need not appeal the decision to the Property Tax Ap-peal Board before seeking relief in the courts. The changes made bythis amendatory Act of the 91st General Assembly shall be effectivebeginning with the 1999 assessment year. (Source: P.A. 91-393, eff. 7-30-99; 91-425, eff. 8-6-99.)

Sec. 16-165. Forms for appeal.The Property Tax Appeal Board shall supply forms for appeal to theBoards of Review or Boards of Appeals. Each Board of Review orBoard of Appeals shall provide such forms to each person or taxingbody entitled to appeal a decision of the Board of Review or Boardof Appeals. (Source: P.A. 88-455; 89-671, eff. 8-14-96.)

Sec. 16-170. Hearings.A hearing shall be granted if any party to the appeal so requests,and, upon motion of any party to the appeal or by direction of theProperty Tax Appeal Board, any appeal may be set down for a hear-ing, with proper notice to the interested parties. Notice to all inter-ested taxing bodies shall be deemed to have been given whenserved upon the State’s Attorney of the county from which the ap-



peal has been taken. Hearings may be held before less than a major-ity of the members of the Board, and the chairman may assign mem-bers or hearing officers to hold hearings. Such hearings shall beopen to the public and shall be conducted in accordance with therules of practice and procedure promulgated by the Board. TheBoard, any member or hearing officer may require the production ofany books, records, papers or documents that may be material orrelevant as evidence in any matter pending before it and necessaryfor the making of a just decision. (Source: P.A. 76-689; 88-455.)

Sec. 16-175. Subpoenas.The Chairman of the Property Tax Appeal Board or his or her desig-nee may issue subpoenas which shall be served by any person law-fully authorized to serve a subpoena under the laws of the State ofIllinois. In case of disobedience to a subpoena, the Board may peti-tion any circuit court of the State for an order requiring the atten-dance and testimony of witnesses. Witnesses attending any hearingheld by the Property Tax Appeal Board, pursuant to any subpoena,shall be paid the same fees and mileage that are paid witnesses inthe circuit courts of the State. (Source: P.A. 83-1250; 88-455.)

Sec. 16-180. Procedure for determination of correct assessment.The Property Tax Appeal Board shall establish by rules an informalprocedure for the determination of the correct assessment of prop-erty which is the subject of an appeal. The procedure, to the extentthat the Board considers practicable, shall eliminate formal rules ofpleading, practice and evidence, and except for any reasonable filingfee determined by the Board, may provide that costs shall be in thediscretion of the Board. A copy of the appellant’s petition shall bemailed by the clerk of the Property Tax Appeal Board to the board ofreview whose decision is being appealed. In all cases where achange in assessed valuation of $100,000 or more is sought, theboard of review shall serve a copy of the petition on all taxing dis-tricts as shown on the last available tax bill. The chairman of theProperty Tax Appeal Board shall provide for the speedy hearing ofall such appeals. Each appeal shall be limited to the grounds listedin the petition filed with the Property Tax Appeal Board. All appealsshall be considered de novo and the Property Tax Appeal Boardshall not be limited to the evidence presented to the board of reviewof the county. A party participating in the hearing before the Prop-erty Tax Appeal Board is entitled to introduce evidence that is other-wise proper and admissible without regard to whether that evidencehas previously been introduced at a hearing before the board ofreview of the county. Where no complaint has been made to theboard of review of the county where the property is located and the


appeal is based solely on the effect of an equalizing factor assignedto all property or to a class of property by the board of review, theProperty Tax Appeal Board shall not grant a reduction in assessmentgreater than the amount that was added as the result of the equaliz-ing factor.

The provisions added to this Section by this amendatory Act of the93rd General Assembly shall be construed as declaratory of existinglaw and not as a new enactment. (Source: P.A. 93-248, eff. 7-22-03;93-758, eff. 7-16-04.)

Sec. 16-185. Decisions.The Board shall make a decision in each appeal or case appealed toit, and the decision shall be based upon equity and the weight ofevidence and not upon constructive fraud, and shall be bindingupon appellant and officials of government. The extension of taxeson any assessment so appealed shall not be delayed by any proceed-ing before the Board, and, in case the assessment is altered by theBoard, any taxes extended upon the unauthorized assessment orpart thereof shall be abated, or, if already paid, shall be refundedwith interest as provided in Section 23-20.

The decision or order of the Property Tax Appeal Board in any suchappeal, shall, within 10 days thereafter, be certified at no charge tothe appellant and to the proper authorities, including the board ofreview or board of appeals whose decision was appealed, the countyclerk who extends taxes upon the assessment in question, and thecounty collector who collects property taxes upon such assessment.

If the Property Tax Appeal Board renders a decision lowering theassessment of a particular parcel after the deadline for filing com-plaints with the board of review or board of appeals or after ad-journment of the session of the board of review or board of appealsat which assessments for the subsequent year are being considered,the taxpayer may, within 30 days after the date of written notice ofthe Property Tax Appeal Board’s decision, appeal the assessment forthe subsequent year directly to the Property Tax Appeal Board.

If the Property Tax Appeal Board renders a decision lowering theassessment of a particular parcel on which a residence occupied bythe owner is situated, such reduced assessment, subject to equaliza-tion, shall remain in effect for the remainder of the general assess-ment period as provided in Sections 9-215 through 9-225, unless thatparcel is subsequently sold in an arm’s length transaction establish-



ing a fair cash value for the parcel that is different from the fair cashvalue on which the Board’s assessment is based, or unless the deci-sion of the Property Tax Appeal Board is reversed or modified uponreview. (Source: P.A. 88-455; 88-660, eff. 9-16-94; 89-671, eff. 8-14-96.)

Sec. 16-190. Record of proceedings and orders.(a) The Property Tax Appeal Board shall keep a record of its pro-ceedings and orders and the record shall be a public record. In allcases where the contesting party is seeking a change of $100,000or more in assessed valuation, the contesting party must providea court reporter at his or her own expense. The original certifiedtranscript of such hearing shall be forwarded to the Springfieldoffice of the Property Tax Appeal Board and shall become part ofthe Board’s official record of the proceeding on appeal. Each yearthe Property Tax Appeal Board shall publish a volume containinga synopsis of representative cases decided by the Board duringthat year. The publication shall be organized by or cross-refer-enced by the issue presented before the Board in each case con-tained in the publication. The publication shall be available forinspection by the public at the Property Tax Appeal Board officesand copies shall be available for a reasonable cost, except as pro-vided in Section 16-191.(b) The Property Tax Appeal Board shall provide annually, nolater than February 1, to the Governor and the General Assemblya report that contains for each county the following:

(1) the total number of cases for commercial and industrialproperty requesting a reduction in assessed value of $100,000or more for each of the last 5 years;(2) the total number of cases for commercial and industrialproperty decided by the Property Tax Appeal Board for each ofthe last 5 years; and(3) the total change in assessed value based on the Property TaxAppeal Board decisions for commercial property and industrialproperty for each of the last 5 years.

(c) The requirement for providing a report to the General Assem-bly shall be satisfied by filing copies of the report with the follow-ing:

(1) the Speaker of the House of Representatives;(2) the Minority Leader of the House of Representatives;(3) the Clerk of the House of Representatives;(4) the President of the Senate;(5) the Minority Leader of the Senate;(6) the Secretary of the Senate;


(7) the Legislative Research Unit, as required by Section 3.1 ofthe General Assembly Organization Act; and(8) the State Government Report Distribution Center for theGeneral Assembly, as required by subsection (t) of Section 320of the State Library Act. (Source: P.A. 93-248, eff. 7-22-03.)

Sec. 16-191. Publications for Chief County Assessment Officers.The Property Tax Appeal Board shall annually distribute to eachchief county assessment officer, free of charge, one copy of the vol-ume published pursuant to Section 16-190 and one copy of any otherpublication produced by the Property Tax Appeal Board, uponrequest.

In addition, in counties with 3,000,000 or more inhabitants, the Prop-erty Tax Appeal Board shall electronically distribute every 30 days tothe chief county assessment officer, free of charge, appeal informa-tion containing the following:

(1) appeal year and appeal docket number;(2) Property Tax Appeal Board class and requested level ofreduction;(3) appellant name;(4) permanent index number or numbers;(5) scheduled hearing dates;(6) final assessed value determined by the Property Tax AppealBoard;(7) date case closed at Property Tax Appeal Board;(8) reason for action;(9) intervenor name; and(10) intervenor representatives. (Source: P.A. 93-248, eff.7-22-03.)

Sec. 16-195. Review of decisions.Final administrative decisions of the Property Tax Appeal Board aresubject to review under the provisions of the Administrative ReviewLaw, except that in every case where a change in assessed valuationof $300,000 or more was sought, that review shall be afforded di-rectly in the Appellate Court for the district in which the propertyinvolved in the Board’s decision is situated, and not in the circuitcourt. The Property Tax Appeal Board shall certify the record of itsproceedings only if the taxpayer or other entity seeking reviewunder the Administrative Review Law pays to it for each page oflegal size or smaller, the sum of 75¢ per page for testimony takenbefore the Board and 25¢ per page for all other matters contained inthe record, and for any page larger than legal size the sum of $1,except that these charges may be waived when the Board is satisfied


that the aggrieved party cannot afford to pay such charges. Thereshall be no charge to the taxpayer or other entity for certification bythe Property Tax Appeal Board of any pages of the record which arefurnished for inclusion in the record by the taxpayer or other entityseeking review. If payment for the record is not made by the tax-payer or other entity within 30 days after notice from the Board orthe Attorney General of the cost thereof, the court in which the pro-ceeding is pending, on motion of the Board, shall dismiss the com-plaint. (Source: P.A. 87-1189; 88-455.)

Division 5. Department of Revenue

Sec. 16-200. Review of farmland and coal assessments.Assessments in each county made under Sections 10-110 through 10-140 and 10-170 through 10-200 shall be subject to review by theDepartment to determine whether they are being made in accor-dance with those Sections. If it appears to the Department that localassessing officials are not assigning values determined under theSections cited above, the Department may order a reassessmentunder Section 13-10 or may order that the Board of Review recon-vene to correct those assessments. (Source: P.A. 80-1386; 88-455.)

Sec. 16-205. Limitation on Department review of individual as-sessments.Nothing in this Code shall be construed to give the Department anypower, jurisdiction or authority to review, revise, correct or changeany individual assessment made by any local assessment officer.(Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

Article 25. Penalties

Sec. 25-5. Delivery and receipt of collector’s book before bondapproved.If any county clerk delivers the tax books into the hands of thecounty collector, or if any collector receives the books or collects anytaxes before the collector’s bond has been approved and filed, asrequired by this Code, the clerk and collector, and each of them,shall be liable to a penalty of not less than $500, and all damages andcosts, to be recovered in a civil action. The State’s Attorney shallbring suit, in the name of the People of the State of Illinois. Nothing


in this Section shall be construed as relieving the sureties of a collec-tor from liabilities incurred under a bond not approved and filed asrequired by this Code. (Source: P.A. 76-2254; 88-455.)

Sec. 25-10. Failure of collector to obtain timely judgment orpresent list of errors.If any collector, by his own neglect, fails to obtain judgment withinthe time prescribed by this Code, or fails to present his list of errorsin assessment of property at the time required by this Code, he shalllose the benefit of any abatement to which he might have been en-titled, and shall pay to the county the full amount charged againsthim, except that in the 10 years next following the completion of ageneral reassessment of property in any county with 3,000,000 ormore inhabitants, the collector is under no duty to obtain judgmentearlier than 30 days after taxes upon property have become delin-quent and have begun to bear interest. (Source: P.A. 83-121; 88-455.)

Sec. 25-15. Knowing failure of local assessment officer to performduties.Any local assessment officer or other person whose duty it is toassess property for taxation or equalize any assessment, who refusesor knowingly or wilfully neglects any duty required of him by law,or who consents to or connives at any evasion of this Code wherebyany property required to be assessed is unlawfully exempted inwhole or in part, or the valuation thereof is set down at more or lessthan is required by law, is guilty of a Class A misdemeanor. He orshe shall also be liable upon his bond to the party injured for alldamages sustained by that party. He or she shall also be removedfrom office by the judge of the court before whom he or she is triedand convicted. (Source: P.A. 77-2236; 88-455.)

Sec. 25-20. Knowing failure of public officer to perform duties.Every public officer who refuses to perform or knowingly neglectsany duty enjoined upon him by this Code, or who consents or con-nives to evade its provisions, whereby any proceeding required bythis Code shall be prevented or hindered, or whereby any propertyrequired to be listed for taxation is unlawfully exempted or the samebe entered upon the assessment or collector’s books at less than thevalue required by this Code, or the percentage as may be providedby a county ordinance adopted under Section 4 of Article IX of theConstitution of Illinois, shall, for every such offense, neglect or re-fusal, be liable, on the complaint of any person, for double theamount of the loss or damage caused thereby, to be recovered in a



civil action in the name of the People of the State of Illinois in anycourt having jurisdiction, and may be removed from office at thediscretion of the court. (Source: P.A. 80-247; 88-455.)

Sec. 25-25. Failure of officer to perform duties if no other penaltyprovided.If any officer fails or neglects to perform any of the duties requiredof him by this Code, upon being required so to do by any personinterested in the matter, and for the failure or neglect to perform thatduty there is no other or specific penalty provided in this Code, heshall be liable to a fine of not less than $10 nor more than $500, to berecovered in a civil action in the circuit court of the proper county,and may be removed from office at the discretion of the court. Anyofficer who knowingly violates any of the provisions of this Code,for the violation of which there is no other specific penalty providedin this Code, shall be liable to a fine not less than $10 nor more than$1,000 to be recovered in a civil action in the name of the People ofthe State of Illinois, in any court having jurisdiction and may beremoved from office at the discretion of the court. Fines when recov-ered shall be paid into the county treasury. (Source: Laws 1939, p.886; P.A. 88-455.)

Sec. 25-30. Failure of collector to attend tax sale.If any county collector or designated deputy fails to attend any saleadvertised under this Code, and offer property for sale as requiredby law, he or she shall be liable to pay the amount of taxes, specialassessments and costs due on the advertised property. The countycollector may afterwards advertise and sell the delinquent propertyto reimburse himself or herself for the amount advanced by him orher, but at the sale no property shall be forfeited to the State. (Source:Laws 1939, p. 886; P.A. 88-455.)

Sec. 25-35. Failure of county clerk to attend tax sale or keep re-quired records.If any county clerk or designated deputy fails to attend any tax sale,or to make and keep the record, as required by this Code, he or sheshall forfeit and pay the sum of $500, and shall be liable to indict-ment for that failure. Upon conviction he or she shall be removedfrom office. The sum shall be sued for in civil action, in the name ofthe People of the State of Illinois, and when recovered shall be paidinto the county treasury. (Source: Laws 1939, p. 886; P.A. 88-455.)



Sec. 25-40. Fraudulent return or schedule.Any person who, with intent to defeat or evade the law in relation tothe assessment of property, delivers or discloses to any assessor ordeputy assessor a false or fraudulent list, return or schedule of hisor her property not exempted by law from taxation, is guilty of aClass A misdemeanor. (Source: P.A. 77-2236; 88-455.)

Sec. 25-45. Duty of state’s attorney to prosecute.The State’s Attorney of each county shall prosecute all violators ofthis Code. They shall receive as fees the sum of $20 in counties withless than 3,000,000 inhabitants and $40 in counties with 3,000,000 ormore inhabitants for each conviction, to be taxed as costs, and 10%of all fines collected. The residue of all fines collected under thisCode shall be paid into the county treasury for use of the county.(Source: P.A. 87-669; 88-455.)



SummaryBoard of review members are the final authority foraffixing property values in the county.

The duties and procedures of the board of review areoutlined in the Property Tax Code.

There are penalty provisions under the Property TaxCode for board of review members who fail to performtheir duties in a responsible manner.


Unit 2Review questionsComplete the following exercises using the Property Tax Code.

1 Cite the section and paragraph governing the following:

A ________________ Boards of review, political makeupand compensation.

B ________________ Boards of review in commissioncounties.

C ________________ Elected boards of review.

D ________________ Meetings of the board of review.

E ________________ Omitted property.

2 Use the Property Tax Code to answer the following questionsand cite the correct section.

A Can the board of review issue a certificate of error for anerror of judgment?

________________________________ Section _________

B On what type of exemption does the board have the finaldecision?

________________________________ Section _________

C What is the mimimum number of signatures required onthe affidavit for certification of the assessment books?

________________________________ Section _________

D Is the board required to publish notice of an increase inassessment due to the application of an equalization factor?

________________________________ Section _________



E What is the publication fee set for the board of review for“a parcel listing including the name of the propertyowner, a legal description of the property, the previoustotal assessment, and the new total assessment?”

________________________________ Section _________F What happens to the assessment books when the board of

review has completed its work?

________________________________ Section _________

_________________________________________________

_________________________________________________

G Are members of the board of review required to take anoath of office?

________________________________ Section _________

H Upon request of the board, what types of information isthe CCAO required to furnish to the board to assist it inthe proper discharge of its duties?

________________________________ Section _________

_________________________________________________

_________________________________________________

I When does the board of review adjourn?

________________________________ Section _________

J What action is the board required to take after a formalcomplaint has been filed?

________________________________ Section _________

_________________________________________________

_________________________________________________



K In commission counties, the county commissionersgenerally consistute the board of review. Are thecommissioners compensated for their work as membersof the board of review?

________________________________ Section _________

L What determines the educational requirements for amember of the board of review?

________________________________ Section _________

_________________________________________________

_________________________________________________

M What is the political make-up of a board of review andhow is it determined?

________________________________ Section _________

_________________________________________________

_________________________________________________

N Are boards of review required by statute to make andpublish reasonable rules governing their business?

________________________________ Section _________

O Are there penalty provisions for failure of board membersto perform their duties?

________________________________ Section _________

P In commission counties, does an appointed board ofreview have to meet any requirements?

________________________________ Section _________


129PTAX-1-BR — Board of Review — Basic Course3-1 Unit 3: Using the Sales Comparison, or Market Approach, to Support Board of Review Decisions

Unit 3

Using the Sales Comparison, orMarket Approach, to SupportBoard of Review Decisions

This unit covers the three approaches to value: the salescomparison, or market approach; the cost approach;and the income approach, but concentrates on the salescomparison, or market approach.

The purpose of this unit is to provide a basic under-standing of the appraisal process and how the salescomparison method can be used to determine marketvalue.


• identify the three approaches to value,• understand the three types of depreciation,• explain the formula for the sales comparison, or

market approach,• compute the gross income multiplier (GIM), the net

income, the overall rate, the unit price, and the roomprice for a property,

• make the necessary adjustments to the sales price,unit price, and room price for each sale,

• select the property that is most comparable to thesubject property, and

• identify three indications of value and select the bestone for the subject property.

Learningobjectives


Terms andconcepts

Highest and best usePrinciple of substitutionSales comparison, or market approachCost approachDepreciationIncome approachNet income (NI)Allowable expensesValueUnit priceRoom priceGross income multiplier (GIM)Gross rentSales priceUnitsOverall rateAdjusted sales priceAdjusted unit priceAdjusted room price

Appraisal theoryBefore determining a property’s market value, theproperty’s highest and best use must first be deter-mined. Property has its highest value at its highest andbest use. Highest and best use is defined as “that usethat will produce the highest net return to the land for agiven period of time, within the limits of those useswhich are economically feasible, probable, and legallypermissible.” The use must be legal, does not involvecriminal activities, and is not contrary to local regula-tions such as zoning. The use should be probable andnot speculative in nature, and should also be one forwhich there is a demand. The highest and best use willbe a complimentary use, rather than one that is com-petitive.

A property’s highest and best use is generally its currentuse. However, consider a single-family residential prop-erty in a commercially zoned area along a busy street.The highest and best use of this property could easily be

Principle ofhighest andbest use

3-2 Unit 3: Using the Sales Comparison, or Market Approach, to Support Board of Review Decisions



a store or an office building. The use that would lead tothe highest net return to the property would be thehighest and best use.

The principle of substitution provides the basis of thethree approaches to value and states that a buyer is notjustified in paying more for a property than it wouldcost to acquire an equally desirable, substitute property.That is, the value of a property is established as theamount equally desirable and comparable propertiesare being bought and sold for in the market.

The three approaches to valueThe three approaches to valuing real property are thesales comparison, or market approach; the cost ap-proach; and the income approach.

1 The sales comparison, or market approach —compares properties that have recently sold to thesubject property that is being appraised. It is thebest approach for valuing residential property inrural areas.

2 The cost approach — involves calculating thereplacement cost of the building and subtractingdepreciation.

3 The income approach — involves capitalizing theproperty’s net earnings.

Sales comparison or market approachThe sales comparison, or market approach, to valuearrives at a value for the subject property by comparingit to comparable properties that have sold. Consider-ation must be given to all the tangible and intangiblefactors influencing value, such as location, construction,age, physical features, condition, desirability, and util-ity.

Principle ofsubstitution


The appraiser adjusts the comparable sales to the sub-ject property. If the comparable property is superior insome manner to the subject property, the sales price ofthe comparable property is adjusted downward to thesubject property. Likewise, if the comparable property isinferior in some manner to the subject property, thesales price of the comparable property is adjusted up-ward to the subject property.

Superior comparable site

less (-)

Subject site

plus (+)

Inferior comparable site

For example: An upward adjustment of 20 percent maybe warranted if two comparable industrial warehousesales are alike in every way except sale 1, that sold for$300,000, is located near an interstate, and sale 2, thatsold for $250,000, is located a mile away from any majorroadway. A 20 percent upward adjustment ($300,000/$250,000 = 1.20) would be required before the inferiorsale 2 can be used to estimate the value of the subjectproperty located next to the interstate.

A downward adjustment may be necessary if a compa-rable sale is superior to the subject property because ithas a railroad spur and the subject property does not.To determine the necessary adjustment for the railroadspur, two comparable warehouse sales, one with arailroad spur and one without a railroad spur, would becompared to determine the amount of the adjustment.

The significance of this approach lies in its ability toproduce estimates of value that directly reflect the opin-ions of buyers and sellers in the market.

Example ofupwardadjustment

Example ofdownwardadjustment



The first step in the sales comparison, or market ap-proach, is to gather information on comparable proper-ties that have sold. Once the information is gathered,the appraiser should study the properties to determineif any adjustments are needed.

You must also determine what units of comparison touse to arrive at a value for the subject property. Some ofthe units of comparison the value may be based on are aunit value, a room value, a site value, a square foot value,a front foot value, or a gross income multiplier (GIM).

In this exercise, you will use three units of comparison,the unit value, the room value, and a GIM to estimatethe market value of the subject property. To determine aunit price, a room price and a GIM, you need to per-form certain calculations.

To arrive at a GIM, take the sales price of the compa-rable property and divide it by its gross rent.

Sales price = GIMGross rent

Later, you will multiple the gross rent of the subjectproperty by the comparable GIM to arrive at a value forthe subject property.

It is necessary to calculate the net income for the compa-rable. To arrive at the net income, take the potentialgross income, or rent, and subtract out allowable ex-penses.

To calculate an overall rate for the property, you willhave to use the IRV formula. Reviewing the IRV for-mula, “R” is equal to “I,” or net income, divided by “V,”the value of the property.

I

R x V



You can find the number of units from the market datagathered. To arrive at a unit price, divide the sales priceof the property by the number of units. Likewise, toarrive at the room price divide the sales price by thenumber of rooms.

Calculate all necessary adjustments for each of thecomparable sales. The comparable with the least num-ber of adjustments will be chosen as an estimate of thevalue of the subject property.



Sale 1453 Fox Court

Sale 21029 Park Street

Sale 31207 Pine Avenue

Sale 4759 SenecaBoulevard

Sale 5806 State Street

Market dataThe subject property is a 24-unit building with 90rooms. The annual gross rent is $113,845. An analysis ofall apartment property sales within the neighborhoodindicates an annual market increase of 5 percent. Thefollowing 5 sales were selected as the most comparableto the subject property.

A 28-unit building with 96 rooms sold one year ago for$642,000. The annual gross rent is $110,700. Adjustedexpenses amount to $25,440. The condition at 453 FoxCourt is considered to be inferior to the subject prop-erty, and a 5 percent adjustment is necessary.

A 24-unit building with 92 rooms sold one year ago for$626,000. The annual gross rent is $111,840. Adjustedexpenses amount to $25,680. The floor plan and locationof 1029 Park Street are considered to be inferior to thesubject property and adjustments of 6 percent for floorplan and 3 percent for location are necessary.

A 20-unit building with 88 rooms sold two years ago for$510,000. The annual gross rent is $99,960. Adjustedexpenses amount to $23,040. The location of sale 3 isconsidered to be inferior to the subject property and anadjustment of 5 percent is necessary. However, theconstruction quality of 1207 Pine is considered to besuperior to the subject property and an adjustment of 5percent is considered to be necessary.

A 22-unit building with 92 rooms sold one year ago for$612,000. The annual gross rent is $113,280. Adjustedexpenses amount to $26,040. The condition and locationof 759 Seneca are considered to be superior to the sub-ject property and adjustments of 5 percent for conditionand 10 percent for location are considered to be neces-sary.

A 22-unit building with 85 rooms sold last December 28for $584,000. The annual gross rent is $108,240. Adjustedexpenses amount to $24,900. The condition of 806 Stateis considered to be superior to the subject property andan adjustment of 10 percent is considered to be necessary.



ComparablesRefer to the instructions on the previous page and com-plete the following data.

Parcel Sale 1 Sale 2 Sale 3 Sale 4 Sale 5

Address

Sale date

LB ratio

Sales pr.

Gross rent

GIM

Expenses

Net income

Overall rate

Units

Units price

Rooms

Rooms price

Now that you have completed the data on thecomparables, use the market data and the followinggrid to make the necessary adjusts. Each sale will beexamined to determine if any adjustment is necessaryfor time, size, quality, condition, floor plan, and loca-tion. The amount of percentage for the adjustmentshould be placed in the appropriate box. Once you haveentered the percentage of adjustments necessary, youwill come up with a total percentage of adjustment foreach property. After determining the total adjustmentnecessary, you can adjust the sales price, unit price, androom price.

To arrive at an adjusted sales price, multiply the origi-nal sales price of the comparable by the adjustmentfactor for that comparable. There are two ways to arriveat adjusted unit prices and adjusted room prices. Youcan either multiply the original unit, or room, price bythe adjustment factor to arrive at an adjusted unit, orroom price, or you can take the adjusted sales price anddivide it by the number of units or rooms.

453 Fox 1029 Park 1207 Pine 759 Seneca 806 State

1 year ago 1 year ago 2 years ago 1 year ago last Dec. 28

1:5.5 1:6 1:5.5 1:6 1:5.5

$642,000 $626,000 $510,000 $612,000 $584,000

$110,700 $111,840 $ 99,960 $113,280 $108,240

$ 25,440 $ 25,680 $ 23,040 $ 26,040 $ 24,900



Refer to the instructions on the previous page and themarket data on Page 3-7 and complete the following.


Time

Size

Quality

Condition

Floor plan

Location

Total adj. %

Adj. sale price

Adj. unit price

Adj. room price

Sale ________ is most comparable to the subject property.

After making all of the necessary adjustments andcalculations, the appraiser would study the grid todetermine the sale which is most comparable to thesubject property. Once the comparable has been se-lected, values can be determined for the subject prop-erty.

You should have selected sale 5 as the property mostcomparable to the subject because it required the leastnumber of adjustments.

To arrive at a value for the subject property based onunit price, multiply the number of units in the subjectproperty by the unit value of the selected comparable.

To arrive at a value for the subject property based onroom price, multiply the number of rooms in the subjectproperty by the room value of the selected comparable.

To arrive at a value for the subject property based onincome, multiply the subject property’s gross rent bythe comparable GIM.



Refer to the instructions on the previous page and complete thefollowing example.

Subject property has 24 units.

Comparable’s adjusted unit price ______ x 24 units = $_____________

Subject property has 90 rooms.

Comparable’s adjusted room price ______ x 90 rooms =$_____________

Subject property has a gross rent of $113,845.

Comparable’s GIM ______ x $113,845 = $_____________

Using the cost approach, the value for the subject prop-erty is $701,484.

Using the income approach, the value for the subjectproperty is $631,399.

Using the sales comparison, or market approach, whatamount do you think is the best indication of value forthe subject property?

$_____________________

Examining the three values noted above for the cost,income and sales comparison, or market approach,what amount do you think would be the best indicationof value for the subject property?

$_____________________

You should have selected the value from the incomeapproach as the best indication of value for the subjectproperty because the best method of valuing for in-come-producing property is the income approach.



SummaryThe sales comparison, or market approach, to valuearrives at a value for the subject property by comparingit to comparable properties that have sold. Consider-ation must be given to all the tangible and intangiblefactors influencing value, such as location, construction,age, physical features, condition, desirability, and use-fulness.

If the comparable property that has sold is superior insome manner to the subject property, the sales price ofthe comparable property is adjusted downward to thesubject property. Likewise, if the comparable property isinferior in some manner to the subject property, thesales price of the comparable property is adjusted up-ward to the subject property.

Superior comparable site

less (-)

Subject site

plus (+)

Inferior comparable site



Unit 3Review Questions

1 T or F When using the sales comparison, or market approach,one never adjusts the subject property.

2 T or F The formula for the GIM is the gross rent divided bythe sales price.

3 T or F Make a minus adjustment to your comparableproperty if it is inferior to your subject property.

4 T or F If the market is showing an annual increase of 3percent, a sale occurring 2 years ago would have aminus adjustment of 6 percent.

5 T or F The GIM is a unit of comparison in the incomeapproach to value.

6 T or F The property most comparable to the subject is thecomparable with the least number of adjustments.


141PTAX-1-BR — Board of Review — Basic Course4-1 Unit 4: Using the Income Approach to Support Board of Review Decisions

Unit 4

Using the Income Approach toSupport Board of ReviewDecisions

This unit covers the ways in which the IRV formula isused to calculate the income of a property, the capitali-zation rate for a property, and the market value for aproperty.

The purpose of this unit is to provide a basic under-standing of how the IRV formula can be utilized in theassessment process of income-producing properties.


• determine the capitalization rate for a propertywhen given the net income and the value,

• determine the value for a property when given theappropriate capitalization rate and income of aproperty,

• determine the income for a property when giventhe appropriate capitalization rate and value for aproperty,

• determine the potential gross income (PGI) for thesubject property,

• determine the vacancy and collection losses for aproperty when given the market standardpercentage,

• determine the effective gross income,• determine allowable expenses,• determine the net income, and• determine the value of the property when given the

applicable capitalization rate.

Learningobjectives

142 PTAX-1-BR — Board of Review — Basic Course4-2 Unit 4: Using the Income Approach to Support Board of Review Decisions

Terms andconcepts

IRV FormulaBuilding capitalization rateLand capitalization rateNet incomeMarket valuePotential gross income (PGI)Vacancy and collection lossesEffective gross incomeAllowable expenses

The income approachProperty, such as parking lots, apartments, and officebuildings are often valued on the basis of the net in-come these properties produce for their owners. Theincome approach has its widest application in theappraisal of income-producing property. Commercialproperty is universally bought and sold on its ability togenerate and maintain a stream of income for its owner.The value of such property is a measure of the amount,quality, and durability of the future net income theproperty can be expected to return to its investor.

The justified price paid for income-producing propertyis no more than the amount of investment required toproduce a comparably desirable return. In addition,since the market can be analyzed to determine the netreturn actually anticipated by investors, it follows thatthe value of income-producing property can be derivedfrom the income the property is capable of producing.

The process for converting the net income produced byproperty into an indication of its value is called capitali-zation. Capitalization is accomplished by dividing thenet income of the property (I) by the capitalization rate(R). The result is an estimate of market value (V) of theproperty.

Market value (V) = net income (I) ÷ capitalization rate (R)

Any one of the factors of the formula can be determinedif the other two factors are known.


4-3 Unit 4: Using the Income Approach to Support Board of Review Decisions

In the formula __ I__ R x V

“I” refers to the net income.

To arrive at the net income, use the following formula:

Potential gross income (PGI)- Vacancy and collection losses+ Miscellaneous income

Effective gross income (EGI)- Allowable expenses- Reserves for replacements (RR)

Net income (NI)

The potential gross income (PGI) is the economic rentfor a property at 100 percent occupancy. When estimat-ing the PGI, it is important to base it on economic, ormarket rent, which may not be the same as contractrent. Economic or market rent is rent based on marketstandards, or the rent of similar properties in the area.Contract rent is the rent the property is actually receiv-ing, based on a lease or other agreement.

It is highly unlikely that a property will be rented to 100percent capacity at all times, so a deduction for“vacancy losses” is allowed. The amount of the deduc-tion is based on market standards, or the vacancy ratetypical for the area. Deductions are also allowed for“collection losses.” Collection losses are losses thatresult from tenants’ failure to pay rent. These losses arealso based on market standards. The amounts deductedwill be a percent of the PGI.

The effective gross income (EGI) is calculated by esti-mating the PGI, subtracting the appropriate amountsfor vacancy and collection losses, and adding any mis-cellaneous income.


From the EGI, the allowable expenses and reserves forreplacements are subtracted to arrive at the net income(NI).

Allowable expenses are the expenses necessary for theoperation of the business to keep it competitive withother properties in the area. Some examples of allow-able expenses are salaries, utilities, management, insur-ance, supplies, materials, repairs and maintenance.

For assessment purposes, property taxes and mortgageinterest are not allowable expenses. They are taken intoconsideration in the capitalization rate. Other items notconsidered allowable expenses are income taxes, depre-ciation, capital improvements, and the owner’s businessexpenses that are not necessary for maintaining the rentproduced by the property.

The final deduction is for reserves for replacements.The parts of a structure that must be replaced before thebuilding reaches the end of its economic life have anannual expense deduction. Examples of items for thiscategory are carpeting, floor coverings, roofing, appli-ances, heating, and air-conditioning.

“R” refers to the capitalization rate that consistsof percentages for the return on theinvestment to the land and buildings(interest rate), a return of the investment tothe buildings (recapture), plus an effectivetax rate. When dealing with capitalizationrates, there is either a land capitalizationrate or a building capitalization rate.

Land capitalization rates are comprised of• an effective tax rate, and• a discount rate.

Since land does not depreciate, there is no recapture rate.

Building capitalization rates are comprised of• a recapture rate,• an effective tax rate, and• a discount rate.


145PTAX-1-BR — Board of Review — Basic Course4-5 Unit 4: Using the Income Approach to Support Board of Review Decisions

“V” refers to market value.

Selecting the proper capitalization rate and accuratelyestimating a realistic potential gross income, along withapplicable operating expenses, are essential to the capi-talization process.

The IRV formula can be used to determine any one ofthe three factors. If you cover up the letter representingthe component you are trying to determine, the formulafor determining the value of that component is left.

To find the income of a property, cover up the “I” in theformula so you are left with R x V .

Multiply the appropriate capitalization rate “R” by thevalue “V.”

If you know the net income of a property and the value,to find the appropriate capitalization rate, cover up the“R” in the formula so you are left with __ I__ .

V

Divide the net income “I” by the value “V.”

To determine the value of the property cover up the “V”in the formula so you are left with __ I__ .

R

Divide the net income “I” by the capitalization rate “R.”

It can readily be seen that any one of the factors of theIRV formula can be determined if the other two factorsare known.

I

R x V

I

R x V

I

R x V

I

R x V



An apartment building has 15 units that rent for $500per month. The allowable expenses are $50 per unit, permonth. The appropriate capitalization rate is 10.25percent. What is the value of the building?

In order to arrive at a value, you need the net incomeand the appropriate capitalization rate.

1 Determine the potential gross income.15 (units) x $500 x 12 (months) = $90,000

2 Determine the annual allowable expenses.15 (units) x $50 x 12 (months) = $9,000

3 Determine the net income (PGI - allowableexpenses).$90,000 - $9,000 = $81,000

4 Apply the IRV formula

“V” = “I” divided by “R”

I = $81,000R = 10.25% = $790,244

The value of the property is $790,244.

Example ofdetermininga value


Exercise 4-1IRV FormulasUsing the IRV formula, complete the following questions.

1 A parking lot recently sold for $300,000. The parking lot has 100parking spaces, each renting for $25 per month. Allowableexpenses are $6,000 annually. What is the capitalization rate?

____________________

2 A parking lot provides its owner with a net annual income of$27,400. The appropriate capitalization rate is 9.35%. What is thevalue of this parking lot?

____________________

3 The capitalization rate for an office building is 11.3%. Thisbuilding recently sold for $452,600. What is the net annual income?

____________________

4 An apartment building recently sold for 375,700. The net annualincome for this building $53,428. What is the capitalization rate?

____________________

5 An apartment building has 20 units that rent for $350 per month.The allowable expenses are $25 per unit, per month. Thecapitalization rate is 12.54%. What is the value of thisbuilding?

____________________

6 A gravel parking lot recently sold for $267,900. The discount rateis 9.25%, the recapture rate is 2.54%, and the effective tax rate is2.00%. What is the parking lot’s net annual income?

____________________




SummaryI = Net income

R = Capitalization rate

V = Market value

Potential gross income (PGI)- Vacancy and collection losses+ Miscellaneous income

Effective gross income (EGI)- Allowable expenses- Reserves for replacements (RR)

Net income (NI)

I

R x V

Notes




1 What is the formula for the income approach?

____________________

2 A 100-space gravel parking lot rents for $30 a month per space.The effective tax rate is 2.54%, the discount rate is 9.35%, and therecapture rate is 3.00%. What is the value of the parking lot?

____________________

3 A 2-story commercial building has a value of $960,000. Thebuilding provides its owner with a monthly net income of $6,000per floor. This is well in line with similar properties. What is thebuilding capitalization rate?

____________________

4 Land used as a gravel parking lot recently sold for $270,000. Therecapture rate is 3.25%, the discount rate is 8.15%, and theeffective tax rate is 2.50%. What is the net income of this parkinglot?

____________________

5 A 12-unit apartment building has (6) 1-bedroom units, (4) 2-bedroom units, and (2) 3-bedroom units. The 3-bedroom unitsrent for $400 a month, the 2-bedroom units rent for $350 amonth, and the 1-bedroom units rent for $275 a month. Similarproperties in the area have recorded their monthly income to beat $3500 a month. What is the potential gross income of this12-unit apartment building?

____________________



Match these terms to the correct definition. Some terms may requiremore than one definition.

___ Potential gross A Recapture rateincome

___ Land capitalization B Mortgage interestrate

___ Unallowable C Certain amount set aside over aexpenses period of time for wear and tear

items to be replaced

___ Building D Effective tax ratecapitalization rate

___ Reserve for E Real estate taxesreplacements

F Based on 100 percent occupancyusing economic rent versus contractrent

G Discount rate


5-1 Unit 5: Using the Cost Approach to Support Board of Review Decisions

Learningobjectives

Unit 5

Using the Cost Approach toSupport Board of ReviewDecisions

This unit covers the cost approach.

The purpose of this unit is to provide a basic under-standing of the cost approach method.


• understand the formula for the cost approach,• identify the three types of depreciation and how

they affect value,• calculate a cost factor,• conduct a cost factor study, and• define a mass appraisal system.

Cost approachReplacement cost new (RCN)Physical depreciationFunctional depreciationEconomic depreciationCost factorCost factor studyMass appraisal

Terms andconcepts


Mass appraisalMass appraisal is the valuation of many properties as ofJanuary 1 of the assessment year, using standard proce-dures that provide uniformity.

The purpose of mass appraisal is to produce equitableand efficient appraisals of all property in a jurisdictionfor ad valorem tax purposes. A mass appraisal systemshould incorporate all three approaches to value, butmost systems are primarily based on the cost approach.

The cost approachThe market value of a property can be estimated usingthe cost approach by estimating the value of the land,adding the replacement cost new (RCN) of the im-provements, and subtracting the depreciation from theimprovements. An improvement is defined as anystructure attached to, lying upon or within the land,that cannot be removed without physical stress.

The formula for the cost approach is

Market value = land value + (RCN - depreciation)

The land value is usually estimated by using the salescomparison, or market approach, to value. This ap-proach is applied by comparing the subject site withsales of comparable sites that are vacant.

The RCN is the current cost of constructing improve-ments having utility equal to the utility of the subjectimprovements. It may or may not be the cost of repro-ducing a replica of the subject improvement. The dis-tinction between the two is that, replacement cost refersto a substitute property of equal utility and reproduc-tion cost refers to an exact replica property. In a particu-lar situation, the two concepts may be interchangeable,but not necessarily so. Both RCN and reproduction costhave their application in the cost approach to value. Thedifferences are reconciled in the application of deprecia-tion allowances. The RCN includes the total cost ofconstruction incurred by the builder.




There are several acceptable methods for establishingthe replacement cost new of a structure. However, onlythe two more popular methods are discussed: the com-ponent-in-place method and the square foot method.Both of these methods can be used to develop a costmanual for a specific geographic area.

The component-in-place method is used by builders orcontractors because it is very accurate. This methodcombines the direct and indirect costs of labor, material,and overhead for each unit in place for a portion or areaof the structure. All these units are then added togetherto arrive at the total cost for the structure.

The square foot method is another widely used methodfor calculating the RCN. This method is based on thefloor area of the structure and generally is used forresidential buildings.

Replacement cost represents the upper limit of value ofa structure. The difference between RCN and thepresent value is depreciation, the loss of value from allcauses. The third and final step in completing the costapproach is to estimate the amount of depreciation.

Three types of depreciation exist:1 physicaldepreciation2 functional obsolescence3 economic obsolescence

Within the three types of depreciation are two deprecia-tion conditions: deterioration and obsolescence. Dete-rioration occurs as the property declines in quality orcondition. Obsolescence occurs as the property goes outof use or becomes obsolete.

Depreciation can be either curable or incurable. Depre-ciation is curable when the cost to cure will add to themarket value of the structure. It is incurable when thecost to cure is greater than the increase in the marketvalue of the structure.

Three types ofdepreciation



Physical depreciation is defined as the loss in valuedue to deterioration, e.g., wear and tear, time, and theaction of the elements. Physical depreciation beginswhile a building is under construction and continuesuntil the life of the structure has ended. The physical lifeof a building is dependent on

• the degree of maintenance it receives,• the type and quality of materials used in its

construction, and• the soundness of the methods of its builder.

Examples of the two types of physical depreciation,curable and incurable, are

1 Curable — short-lived components, such aswindows, doors, floor coverings, and roofs.

2 Incurable — long-lived components, such asfoundations, studs, and rafters.

Both functional and economic obsolescence are de-fined as the loss of value due to forces other than physi-cal, that act upon a structure in such a way as to limit itseconomic life.

Functional obsolescence refers to obsolescence resultingfrom conditions within the property, such as imbalancein construction features or inadequate design or ar-rangement that lessen its desirability.

Examples of the two types of functional obsolescence,curable and incurable, are

1 Curable — lack of air conditioning, lack of properelectrical wiring, low hanging pipes, and absence ofproper ventilation.

2 Incurable — extremely poor floor plan, very lowor high ceilings.

Economic obsolescence refers to obsolescence caused byinfluences outside the property, such as physical, eco-nomic, social, and governmental changes that have anadverse effect upon the stability and quality of theneighborhood in general.


Examples of economic obsolescence, usually incurableare

• Location — change in traffic pattern and noise andair pollution.

• Economic —high interest rates and business closings.• Government — zoning changes, poor services, and

high tax rates.

The significance of the cost approach lies in its extent ofapplication. It is the one approach that can be used onall types of construction. The widest applications are inmass appraisal and the appraisal of properties that lackadequate market and income data, which prevents theapplication of the other approaches to value.

Simply stated, the job or responsibility of the board is toplace an assessed value in its column of the assessmentbooks for each of the properties in the jurisdiction.When property is omitted from the tax roll, for what-ever reason, it is the responsibility of the board of re-view to assess the omitted property.

There are four steps the board of review must completefor each omitted property in the jurisdiction. The boardmust

1 Discover — Find and inventory all omitted realproperty using tax maps and property indexnumbers; find new construction by observation,reviewing building permits, and other methods.

2 List — Describe the characteristics of land andimprovements on property record cards, includingmeasurements of improvements.

3 Value — Estimate the value of all omitted realproperty in the jurisdiction and ensure uniformityand equity in the methods used and the marketvalues produced.

4 Assess — Apply an assessment level to thesemarket values, arriving at an assessed value for eachof the omitted properties in the jurisdiction. Ensurethat the assessed values reflect a uniform level ofassessments, and that these assessed values arederived from current market values.


The responsibilityof the board ofreview


Unlike an independent appraiser, who has the time tocarefully analyze the various approaches to value be-fore arriving at an estimate of value for one property,the board must estimate values within a relatively shortperiod of time. The board of review is a mass appraiser.

The IRPAM is designed for mass appraisal. The costschedules discussed in Unit 6 are used to apply the costapproach to value in a mass appraisal system. It isunreasonable to expect that every building value ob-tained through the use of these schedules will be exact.However, it is expected that the value estimates pro-duced be well within tolerable limits. The outcome ofthis system still depends greatly on the professionaljudgement of the board of review. This is especially truewhen the board must use factors that will adjust variousvalues before arriving at the final value of the subjectproperty. These factors are defined in the following unit.There are guidelines that can be used to establish fac-tors, but the board must continually rely on its skill andexperience when assigning individual factors to eachproperty.

A cost factor is designed to adjust the IRPAM RCNvalue to reflect the local cost of labor and material inother areas. The use of a cost factor may be necessaryfor any assessor whose jurisdiction is not similar to thecentral Illinois area. You will calculate a cost factor byperforming a cost factor study for use with the classexercises in Unit 5.

Steps in calculating a cost factor.Step 1 Find arms-length sales of improved properties on which

the improvements are one year old or less, whicheliminates adjusting for depreciation.

Step 2 Subtract the current land values from those saleprices to obtain the value of the improvement orbuilding.

Building value = sale price - land value


Cost factor


Step 3 Determine the RCN for each building.

Step 4 Divide each building value by the corresponding RCNto obtain a cost factor for each sale.

Cost factor = building value IRPAM RCN

Step 5 Rank the factors.

Step 6 Select the median factor as the overall cost factor.

Step 7 Apply the overall cost factor to the IRPAM RCN ofall property within the jurisdiction.

The true RCN is equal to the IRPAM RCN multiplied bythe cost factor.

True RCN = IRPAM RCN x cost factor



Exercise 5-1Cost factor study

The purpose of a cost factor study is to determine the factor to beused to adjust the values found in the IRPAM to reflect the labor andmaterial costs found in your local area. Once this factor is deter-mined, it is applied to all construction within the jurisdiction.

When computing a cost factor, it is important to remember to useonly improvements that have an actual age of one year or less, elimi-nating the need to factor in depreciation.

A cost factor greater than 1.00 indicates that the IRPAM values aretoo low for the jurisdiction, so you must increase the RCN values. Acost factor less than 1.00 indicates that the IRPAM values are toohigh for the jurisdiction, so you must decrease the RCN values.

In this exercise, use the worksheet on the following pages to deter-mine a cost factor for 15 sales. There are several formulas that youwill need to use to determine the cost factor.

The first formula is used to determine the building value or buildingresidual.

Step 1 Looking at Sale 1, the age column lists the improvement as new. Tofind the building residual, subtract the lot value of $17,000 from thesale price of $104,000. The remainder of $87,000 is the buildingresidual, or building value.

Building residual = sale price - lot value

$104,000 - $17,000 = $87,000

Step 2 Divide the building residual of $87,000 by the IRPAM RCN of$82,300, which gives you a cost factor of 1.06.

Note: For this exercise round to 2 decimal places.

Cost factor = building residual ÷ IRPAM value

$87,000 ÷ $82,300 = 1.06



Looking at Sale 2, the age column lists the improvement as new. Usethe formula for the building residual and subtract the lot value of$17,000 from the sale price of $97,700, which produces a buildingresidual of $80,700.

$97,700 - $17,000 = $80,700

Divide the building residual of $80,700 by the IRPAM RCN of$78,400, which gives you a cost factor of 1.03.

$80,700 ÷ $78,400 = 1.03 cost factor

Continue the computations for the remaining sales as outlinedabove.

Exercise 5-1 worksheetCost factor study

Sale Sale Lot Building Manual CostNumber Age Price Value Residual Value Factor

1 N $104,000 $17,000 $87,000 $82,300 1.062 N 97,700 17,000 ________ 78,400 _____3 N 67,800 10,500 57,300 54,500 1.054 N 62,900 8,000 ________ 51,800 _____5 N 85,600 15,500 70,100 63,700 1.106 N 89,200 16,000 ________ 63,100 _____7 N 80,300 16,000 64,300 61,200 1.058 N 88,300 16,500 ________ 69,000 _____9 30 53,500 8,000 45,500 47,900 .95

10 N 93,100 16,500 ________ 72,100 _____11 N 76,700 15,500 61,200 58,300 1.0512 N 86,500 16,000 ________ 66,500 _____13 44 67,900 11,000 56,900 59,300 .9614 N 92,700 16,000 ________ 69,500 _____15 12 72,400 11,000 61,400 60,200 1.02



Step 3 The last step is to select the median after ranking all the cost factorsthat meet the age criteria. The factors can be ranked from highest tolowest or from lowest to highest.

Note: If you have an odd number of factors, select the median ormiddle value as the cost factor for your jurisdiction. If the number offactors is even, add the two middle factors together, then divide thesum by two, and use the average as your cost factor.

The cost factor that is determined is applied to all constructionwithin a jurisdiction and will be used for all of the residential prop-erty record (PRC) examples in this workbook.

Rank1 _______

2 _______

3 _______

4 _______

5 _______

6 _______

7 _______

8 _______ Median = _______

9 _______

10 _______

11 _______

12 _______

13 _______

14 _______

15 _______



SummaryThe market value of a property can be estimated usingthe cost approach by estimating the value of the land,adding the replacement cost new (RCN) of the im-provements, and subtracting the depreciation from theimprovements.

Replacement cost represents the upper limit of value ofa structure. The difference between RCN and thepresent value is depreciation, the loss of value from allcauses.

There are three types of depreciation that exist: physi-cal depreciation, functional obsolescence, and eco-nomic obsolescence.

The IRPAM is designed for mass appraisal.

A cost factor is designed to adjust the IRPAM replace-ment cost new (RCN) value to reflect the local cost oflabor and materials.


Notes



1 What are the three types of depreciation? Place a next tothe one that is generally incurable.

____ ____________________________________

____ ____________________________________

____ ____________________________________

2 What is the purpose of a cost factor?

____________________________________________________

____________________________________________________

3 What is a mass appraisal system?

____________________________________________________

____________________________________________________



6-1 Unit 6: Mass Appraisal and Residential Square Foot Schedules

Unit 6

Mass Appraisal and ResidentialSquare Foot Schedules

This unit covers the mass appraisal system and thevarious factors used to adapt a mass appraisal system tolocal jurisdictions. It also covers the residential squarefoot schedules in the IRPAM.

The purpose of this unit is to provide a basic under-standing of a mass appraisal system and its use. Inaddition, the unit explains the use of the schedules tovalue property using the cost approach.


• identify the various factors used to adjust theIRPAM,

• explain how the various factors are obtained andused,

• identify the use of the IRPAM,• identify and use the various cost tables in the

manual,• understand and use a remaining economic life

(REL) depreciation table.

Learningobjectives


Terms andconcepts


Quality grade

Cost approachQuality gradeRemaining economic life (REL)DepreciationActual ageEffective ageCDU (condition, desirability, and utility) ratingStandard 5 plumbing fixturesProperty record card 1 (PRC-1)Property record card 2 (PRC-2)Base priceFull valueReplacement cost new (RCN)

Factors used with the IRPAMAs discussed in Unit 5, a cost factor is designed to ad-just the IRPAM RCN value to reflect the local cost oflabor and material in other areas. The use of a costfactor may be necessary for any jurisdiction that is notsimilar to the central Illinois area.

The accuracy of an RCN obtained from the IRPAM isgreatly affected by proper quality grading. A qualitygrade represents the quality of construction, workman-ship, and materials used in a project. The quality ofworkmanship and materials can greatly affect the costof construction and the value of the improvement.

The majority of improvements fall within a definiteclass of construction involving average quality of work-manship and materials. This type of construction isdesignated as grade “C” which carries a factor of 100percent or 1.00. The cost tables in the IRPAM representquality grade “C.” A different quality grade factor maybe used if the subject property was not built using aver-age quality materials and workmanship.

Cost factor


There are six basic quality grades in the IRPAM.

Grade Quality FactorAA Superior quality 225 percentA Excellent quality 150 percentB Good quality 122 percentC Average quality 100 percentD Cheap quality 82 percentE Very cheap quality 50 percent

Pluses and minuses, after the letter grade, can be usedto fine tune these adjustments. For example, a “C+ 10”grade improvement would have a grade factor of 10percent above “C,” or 110 percent.

A quality grade must be assigned to each improvementand should be established during construction if at allpossible. Once a grade has been established, this graderemains throughout the life of the improvement, unlessthe improvement is gutted and remodeled, using mate-rials and workmanship of a different quality grade.

It is important not to confuse quality and condition.Condition refers to the physical condition of the im-provement. Condition changes due to depreciation,such as wear and tear, use, and abuse. Quality does notchange. However, higher quality materials deterioratemore slowly than poorer quality materials, all otherthings being equal.

Another factor that may be used to adjust a building’sRCN is the design factor. The cost schedules in theIRPAM are designed for use in determining RCN valuesfor conventional, rectangular shaped structures of com-pact, efficient design. In recent years though, architec-tural designs have become more diverse. There is anincreased cost associated with such structures due tothe need for more material and more labor per squarefoot.


Design factor


The following details should be considered in determin-ing whether to use a design factor:

• Irregular foundation outline,• Wide roof overhangs,• An unusual amount of built-in features,• A number of special features, such as costly

paneling, expensive fireplace mantles, and largefireplace chimneys,

• The use of mixed materials in the interior andthe exterior of a home,

• Glass houses, earth homes, vacation homes, and •Unusual architectural designs.

The design factor is handled in the same manner as aquality grade factor; it is assigned to individual homesand should remain unchanged during the life of thestructure.

To determine a design factor, the percentage increase ordecrease in cost due to the design feature or featuresmust be determined. These costs should be verifiedthrough the contractor. The original contractor canprovide a certified construction cost value. Severalopinions from local contractors are also beneficial inverifying costs.

A design factor can be determined by the formula

Contractor’s costs IRPAM RCN

Typically, a minus 13 percent to a plus 50 percent adjust-ment is made to the IRPAM RCN value when using adesign factor. A design factor is more commonly used inquality grades “B,” “A,” and “AA” improvements,although it may be required for grade “C” construction.

A jurisdiction may have more than one assessor. Somejurisdictions may employ field appraisers to determinethe quality grades of all buildings within that jurisdic-tion. Because quality grades are based on the judgementof one individual, it is possible that quality grades maybe assigned that are consistently higher or lower thanwhat other assessors or appraisers in that jurisdiction


Appraiser factor


would have assigned to those buildings. In order tomaintain uniformity, an appraiser factor is required tobring those buildings, valued by that particular indi-vidual, more in line with the value of the rest of thebuildings in the jurisdiction. This factor is applied to allthe parcels listed by the individual assessor.

The appraiser factor is developed using a method simi-lar to that used to obtain the cost factor. Additionalinformation on this factor and other factors are avail-able in the IRPAM.

The neighborhood where the property is located has adirect effect on the value. The neighborhood of a prop-erty may be defined by a natural boundary formed byrivers, or political boundaries formed by zoning toprotect the common use in an area. The neighborhoodshould be analyzed to determine if the area is in a stageof growth, stability, or decline in order to estimate thefuture use and value.

The quality grade — Used to adjust the IRPAM RCNvalues to reflect the quality of materials and workman-ship of the improvement. This grade remains un-changed during the lifetime of the structure.

Cost factor x design factor x neighborhood factor xappraiser factor — These factors are chain multiplied toarrive at one factor used to adjust the IRPAM RCNvalue to reflect a true RCN of the improvement.


Neighborhoodfactor

A review of thefactors

Exercise 3-1

Cost X Design X Neighborhood X Appraiser = Factor1.06 x 1.03 x 1.02 x 1.04 = 1.161.06 x 1.00 x .98 x .98 =1.06 x 1.05 x 1.00 x 1.00 =1.06 x 1.01 x 1.10 x 1.00 =


The final factor that is applied to all improvements is aremaining economic life (REL) factor. This factor isapplied to the true RCN to arrive at a full market value,which now reflects the adjustment made for depreciation.

Depreciation is the loss in value due to a number offactors. Generally, depreciation is placed into threecategories: physical; functional; and external or economicdepreciation. All depreciating forces act concurrently,but not at the same rate. Within the IRPAM, the Com-mercial REL Depreciation Table is developed to adjustfor the differing rates of depreciation.

Use of the Residential REL Depreciation TableSchedule A — This schedule takes into account theactual age of the improvement, and what is referred toas the CDU rating of the improvement, to arrive at aneffective age. This effective age is then used to find theremaining economic life factor, which is applied to thetrue RCN.

The CDU rating is assigned to each property by com-paring that subject property’s physical condition “C,”desirability “D,” and utility “U” to other propertieswithin the neighborhood, or within a jurisdiction ifneighborhoods have not been established.

The CDU rating is the method for determining a rate ofdepreciation. The condition refers to physical deprecia-tion, such as wear and tear and action of the elementsthat has taken place. The desirability refers to the eco-nomic or external depreciation, such as lack of appealdue to location, or some type of adverse influencesoutside the boundary lines of the property. The utilityrefers to functional obsolescence, such as inefficient andimpractical arrangement of rooms and anysuperadequacy or inadequacy that may be present.

The CDU rating is broken down into five classifications.E Excellent Superior conditionG Good Better than average conditionA Average Normal wear and tear for areaP Poor Definitely below average conditionU Unsound Excessively deteriorated condition


REL/Depreciation


How to use the Residential REL Depreciation TableStep 1 Locate the actual age of the improvement (based on

year of construction) in the AGE column of Schedule A.

Step 2 Determine the CDU of the subject and locate it alongthe upper portion of Schedule A.

Step 3 Trace the age to its point of intersection with the CDUand find the effective age.

For example: a property that has an age of “10,” with aCDU rating of “good,” has an effective age of “3” inSchedule A.

Step 4 This effective age is then located on Schedule B in thecolumn headed EFF. AGE. The percentage factorindicated in the right column of Schedule B is the RELfactor. This factor is then applied to the true RCN,which depreciates the value to reflect full market value.REL is directly related to depreciation.

For example: a property with an effective age of 3 hasan REL of 98%.

REL% + Dep% = 100%, or

100% - REL factor expressed as a percent = percent ofdepreciation.

For example: a property with an REL of 98% has depre-ciated 2%. 100% - 98% = 2%

The assessor must carefully review CDU ratings overtime because the CDU rating of each property maychange for a variety of reasons. Because each property isassigned an individual CDU rating, a change of oneCDU may not require a change in the CDU ratings ofother properties within the neighborhood.


170 PTAX-1-BR — Board of Review — Basic Course6-8 Unit 6: Mass Appraisal and Residential Square Foot Schedules

Residential REL Table

Schedule A Schedule BEffective Age Effective Age Eff. Eff.

AgeE G A P U

AgeE G A P U Age REL Age REL

1 1 1 1 18 63 70 24 39 70 102 117 1 100 73 682 1 1 2 19 67 71 24 40 71 102 117 2 99 74 673 1 1 3 21 71 72 25 41 72 102 117 3 98 75 674 1 1 4 22 75 73 25 42 73 102 117 4 97 76 675 1 1 5 24 78 74 26 43 74 103 117 5 96 77 666 1 1 6 26 81 75 26 44 75 103 117 6 95 78 667 1 1 7 29 84 76 27 45 76 103 118 7 94 79 668 1 1 8 32 86 77 28 47 77 104 118 8 93 80 659 1 2 9 35 88 78 29 48 78 104 118 9 92 81 65

10 1 3 10 38 90 79 30 49 79 104 118 10 91 82 6511 1 4 11 41 92 80 31 51 80 105 119 11 90 83 6412 1 5 12 44 94 81 32 53 81 105 119 12 89 84 6413 1 6 13 47 95 82 32 55 82 105 119 13 88 85 6314 1 6 14 50 95 83 34 57 83 106 120 14 88 86 6315 1 7 15 54 96 84 35 59 84 106 120 15 87 87 6216 2 8 16 57 98 85 36 62 85 107 121 16 86 88 6217 2 8 17 60 98 86 37 64 86 107 121 17 86 89 6118 3 9 18 63 99 87 39 66 87 108 121 18 85 90 6119 4 10 19 66 100 88 41 68 88 108 122 19 84 91 6020 4 10 20 69 101 89 43 70 89 109 122 20 84 92 6021 5 11 21 72 102 90 45 72 90 109 122 21 83 93 5922 6 12 22 74 103 91 47 74 91 110 123 22 82 94 5923 6 12 23 76 103 92 49 76 92 110 123 23 82 95 5824 7 13 24 78 104 93 52 78 93 111 124 24 81 96 5725 7 14 25 79 104 94 54 79 94 111 124 25 81 97 5726 8 15 26 81 105 95 58 81 95 112 125 26 80 98 5627 8 15 27 82 105 96 61 83 96 113 125 27 80 99 5528 9 16 28 83 106 97 63 84 97 113 126 28 79 100 5429 9 17 29 84 106 98 67 85 98 114 126 29 79 101 5430 9 17 30 84 106 99 71 87 99 115 127 30 79 102 5331 10 18 31 85 107 100 74 89 100 116 128 31 78 103 5232 10 18 32 86 107 101 76 90 101 116 128 32 78 104 5133 11 19 33 87 108 102 78 92 102 117 129 33 77 105 5034 11 20 34 88 108 103 81 94 103 118 130 34 77 106 4935 11 20 35 88 108 104 83 95 104 118 130 35 77 107 4836 12 21 36 89 109 105 85 97 105 119 131 36 76 108 4737 12 21 37 90 109 106 87 98 106 120 132 37 76 109 4638 12 21 38 90 109 107 89 99 107 121 133 38 76 110 4539 13 22 39 91 110 108 91 101 108 121 133 39 75 111 4440 13 22 40 91 110 109 93 102 109 122 134 40 75 112 4341 14 23 41 92 110 110 95 103 110 123 135 41 75 113 4242 14 23 42 92 110 111 97 104 111 124 136 42 75 114 4143 15 24 43 93 111 112 98 105 112 125 137 43 74 115 4044 15 24 44 93 111 113 99 106 113 126 138 44 74 116 3945 15 25 45 94 111 114 101 107 114 126 138 45 74 117 3846 15 25 46 94 111 115 102 108 115 127 139 46 74 118 3647 16 26 47 95 112 116 103 109 116 128 140 47 73 119 3548 16 26 48 95 112 117 104 110 117 129 141 48 73 120 3449 17 27 49 95 112 118 106 112 118 130 142 49 73 121 3350 17 27 50 95 112 119 107 113 119 131 143 50 73 122 3151 18 28 51 96 113 120 108 114 120 132 143 51 72 123 3052 18 28 52 96 113 121 109 115 121 133 143 52 72 124 2953 18 29 53 97 113 122 111 117 122 134 143 53 72 125 2854 18 30 54 97 113 123 112 117 123 135 143 54 72 126 2655 18 30 55 97 113 124 113 118 124 136 143 55 72 127 2556 19 31 56 98 114 125 114 119 125 137 143 56 71 128 2457 19 31 57 98 114 126 116 121 126 138 143 57 71 129 2358 20 32 58 98 114 127 117 121 127 139 143 58 71 130 2159 20 32 59 98 114 128 118 122 128 139 143 59 71 131 2060 20 32 60 98 114 129 118 123 129 139 143 60 71 132 1961 21 33 61 99 115 130 120 125 130 139 143 61 70 133 1862 21 33 62 99 115 131 121 125 131 139 143 62 70 134 1663 21 34 63 99 115 132 122 126 132 139 143 63 70 135 1564 21 35 64 99 115 133 122 127 133 139 143 64 70 136 1465 21 35 65 99 115 134 124 129 134 139 143 65 70 137 1366 22 36 66 100 116 135 125 129 135 139 143 66 69 138 1167 22 37 67 100 116 136 126 130 135 139 143 67 69 139 1068 23 37 68 101 116 137 126 131 135 139 143 68 69 140 969 23 38 69 101 116 138 127 131 135 139 143 69 69 141 8

70 68 142 771 68 143 572 68

See the Property Record Card section of the Illinois Real Property AppraisalManual to use these tables.


Residential square foot schedulesThe IRPAM is a mass appraisal system. The schedulesin the IRPAM are based on construction costs in thecentral Illinois area. The values are also based on con-struction, using average quality materials and work-manship. As discussed earlier, there are various factorsthat can be applied to adjust the IRPAM to reflect thevalues in various jurisdictions.

For residential structures, the IRPAM includes base costschedules for wood frame and masonry construction.When referencing a base cost schedule, it is important touse the appropriate schedule. The base cost schedulesfor both wood frame and masonry construction includenormal construction features, such as foundation, base-ment and basement walls, exterior walls, floors, roof,interior finish, central heating, lighting, and averagelandscaping. They also include the standard fiveplumbing fixtures: bathroom toilet, basin, tub orshower, kitchen sink, and hot water heater. If you aredealing with construction features other than thoseincluded in the base cost schedules, you must make“plus” or “minus” adjustments to the base cost. TheIRPAM includes various supplemental schedules toassist in valuing these variances that also indicatewhether a plus or minus adjustment to the base price isrequired.

The residential schedules are used in conjunction withthe residential property record cards (PRCs). PRC-1 isused for valuing land, and the PRC-2, on the oppositeside, is used for the computation of building values.The right column of the PRC-2 is used for computingthe full value of the structure. This column is called thecomputation ladder.

Using the base cost schedule on the following page,determine the base cost of the structure. The base cost ofthe structure is based on the square footage of theground floor only. The schedules include values for 1-story, 1 ½-story, split-level, 2-story, and 3-story struc-tures. When referring to the schedules, use the squarefootage of the ground floor only, not the combined


Determine thebase cost of thestructure


square footage of all floors. Select the appropriate corre-sponding story height to determine the value. Lookingat the base cost schedule, the left column represents thesquare foot area of the ground floor.

For example, if you have a 2-story frame structure with1,000 square feet on each floor, find 1,000 square feet inthe left column of the base cost schedule for woodframe construction (not 2,000 square feet which is thecombined footage for both floors), and move to theappropriate column for a 2-story structure. The basecost of this structure, before adjustments, is $104,650.



100 $15,800 $19,950 $16,000 $21,300 $26,800 25 18,550 23,500 18,900 25,150 31,800 50 21,050 26,800 21,600 28,750 36,450 75 23,400 29,950 24,100 32,100 40,850200 25,600 32,850 26,550 35,300 45,050 25 27,700 35,650 28,850 38,400 49,100 50 29,650 38,350 31,050 41,300 53,000 75 31,550 40,900 33,150 44,150 56,750300 33,350 43,400 35,200 46,850 60,400 25 35,100 45,750 37,200 49,500 63,950 50 36,800 48,100 39,150 52,050 67,400 75 38,400 50,300 41,000 54,500 70,750400 39,950 52,500 42,850 56,950 74,050 25 41,450 54,600 44,600 59,300 77,250 50 42,950 56,700 46,350 61,600 80,400 75 44,350 58,700 48,050 63,850 83,500500 45,750 60,700 49,700 66,050 86,550 25 47,100 62,650 51,350 68,200 89,500 50 48,450 64,550 52,950 70,350 92,450 75 49,750 66,400 54,550 72,450 95,350600 51,000 68,250 56,100 74,500 98,250 25 52,250 70,050 57,650 76,550 101,050 50 53,500 71,850 59,150 78,550 103,850 75 54,700 73,600 60,650 80,500 106,600700 55,850 75,300 62,150 82,450 109,350 25 57,050 77,050 63,600 84,400 112,050 50 58,200 78,750 65,050 86,300 114,750 75 59,350 80,400 66,500 88,200 117,400800 60,450 82,050 67,900 90,100 120,050 25 61,550 83,700 69,300 91,950 122,650 50 62,650 85,350 70,700 93,800 125,250 75 63,750 86,950 72,100 95,650 127,850900 64,850 88,550 73,500 97,450 130,450 25 65,900 90,150 74,850 99,250 133,000 50 67,000 91,750 76,250 101,050 135,550 75 68,050 93,350 77,600 102,850 138,100

1,000 69,100 94,900 78,950 104,650 140,650 25 70,150 96,500 80,300 106,450 143,150 50 71,200 98,050 81,650 108,200 145,650 75 72,250 99,600 83,000 109,950 148,1501,100 73,250 101,150 84,350 111,750 150,700 25 74,300 102,700 85,650 113,500 153,200 50 75,350 104,250 87,000 115,250 155,650 75 76,350 105,800 88,350 117,000 158,1501,200 77,400 107,350 89,700 118,750 160,650 25 78,450 108,900 91,000 120,500 163,150 50 79,450 110,450 92,350 122,250 165,600 75 80,500 112,000 93,650 124,000 168,1001,300 81,550 113,550 95,000 125,800 170,600 25 82,550 115,100 96,350 127,550 173,100 50 83,600 116,650 97,700 129,300 175,550 75 84,650 118,200 99,000 131,050 178,0501,400 85,700 119,750 100,350 132,800 180,550 25 86,750 121,300 101,700 134,600 183,050 50 87,800 122,900 103,050 136,350 185,550 75 88,850 124,450 104,400 138,100 188,0501,500 89,900 126,000 105,750 139,900 190,550 25 90,950 127,600 107,100 141,700 193,100 50 92,050 129,200 108,450 143,450 195,600 75 93,100 130,750 109,850 145,250 198,150

Base cost schedule — wood frame construction

Stories StoriesSFGA 1 Story 1½ Story Split 2 Story 3 Story SFGA 1 Story 1½ Story Split 2 Story 3 Story

& bsmt. & bsmt. level & bsmt. & bsmt. & bsmt. & bsmt. level & bsmt. & bsmt.1,600 $94,200 $132,350 $111,200 $147,050 $200,650 25 95,250 133,950 112,600 148,900 203,200 50 96,350 135,550 113,950 150,700 205,750 75 97,450 137,200 115,350 152,500 208,3001,700 98,550 138,800 116,750 154,350 210,900 25 99,650 140,450 118,150 156,150 213,450 50 100,800 142,100 119,550 158,000 216,050 75 101,900 143,750 120,950 159,850 218,6001,800 103,050 145,400 122,350 161,750 221,200 25 104,200 147,050 123,800 163,600 223,850 50 105,350 148,700 125,200 165,500 226,450 75 106,500 150,400 126,650 167,350 229,0501,900 107,650 152,100 128,100 169,250 231,700 25 108,850 153,800 129,550 171,150 234,350 50 110,000 155,500 131,000 173,100 237,050 75 111,200 157,200 132,450 175,000 239,7002,000 112,400 158,950 133,950 176,950 242,400 25 113,600 160,700 135,450 178,900 245,100 50 114,850 162,450 136,900 180,850 247,800 75 116,050 164,200 138,400 182,850 250,5002,100 117,300 166,000 139,950 184,800 253,250 25 118,550 167,800 141,450 186,800 256,000 50 119,800 169,600 143,000 188,800 258,750 75 121,100 171,400 144,500 190,850 261,5502,200 122,350 173,200 146,050 192,850 264,300 25 123,650 175,050 147,600 194,900 267,150 50 124,950 176,900 149,200 196,950 269,950 75 126,300 178,750 150,750 199,050 272,7502,300 127,600 180,600 152,350 201,100 275,600 25 128,950 182,500 153,950 203,200 278,500 50 130,300 184,400 155,550 205,300 281,350 75 131,650 186,300 157,150 207,450 284,2502,400 133,000 188,250 158,750 209,550 287,150 25 134,400 190,200 160,400 211,700 290,050 50 135,800 192,150 162,050 213,850 293,000 75 137,200 194,100 163,700 216,050 295,9502,500 138,600 196,100 165,350 218,250 298,900 25 140,050 198,050 167,050 220,450 301,900 50 141,500 200,100 168,750 222,650 304,900 75 142,950 202,100 170,450 224,900 307,9502,600 144,400 204,150 172,150 227,150 310,950 25 145,900 206,200 173,850 229,400 314,000 50 147,400 208,250 175,600 231,700 317,100 75 148,900 210,350 177,350 233,950 320,1502,700 150,450 212,450 179,100 236,300 323,250 25 151,950 214,550 180,850 238,600 326,400 50 153,500 216,650 182,650 240,950 329,500 75 155,050 218,800 184,450 243,300 332,6502,800 156,650 220,950 186,250 245,650 335,850 25 158,250 223,150 188,050 248,050 339,050 50 159,850 225,350 189,900 250,450 342,250 75 161,450 227,550 191,700 252,850 345,4502,900 163,050 229,750 193,550 255,300 348,700 25 164,700 232,000 195,450 257,750 351,950 50 166,350 234,250 197,300 260,200 355,250 75 168,050 236,500 199,200 262,700 358,5503,000 169,750 238,800 201,100 265,200 361,850OVER 56.60/SF 79.60/SF 67.05/SF 88.40/SF 120.60/SF

Residential Schedules

Base price schedules include normal construction features, such as foundation, basement and basement walls, all exteriors walls, floors, roof, interior finish, central heating, lighting, plumbing (five fixtures), and average landscaping.



Note: The schedule combining schedule for both frame and masonry construction isused to adjust the base price schedules for variances in story height. This schedule willnot be used in this class.

The base price includes the standard 5plumbing fixtures: bathroom toilet, bath-room basin, tub or shower, kitchen sink,and hot water heater. If the structure hasmore than the standard 5 fixtures, add$1,465 per fixture to the base cost. If youhave less than the standard 5 fixtures, adeduction of $1,465 per fixture should bemade.

Quality grade refers to the quality of thematerial and workmanship. The IRPAM isbased on average quality improvements.The quality grade for average is “C.” If youhave a quality other than average, youmust apply the appropriate grade factor.

QualityGrade Factor

AA 225%A 150%B 122%C 100%D 82%E 50%

Plumbing (±)Per fixture lessthan standard Deduct $1,465

Per fixture greaterthan standard Add $1,465

Schedule combining — frame/masonry (-)

Frame MasonrySFGA 1 Story 1 ½ Story Split 2 Story 3 Story SFGA 1 Story 1 ½ Story Split 2 Story 3 Story

100 $10,550 $10,650 $10,650 $10,750 $10,950 100 $11,900 $12,050 $12,050 $12,200 $12,400200 11,350 11,550 11,500 11,700 12,000 200 12,900 13,150 13,100 13,400 13,800300 11,950 12,200 12,150 12,400 12,900 300 13,700 14,000 13,950 14,350 14,900400 12,450 12,800 12,750 13,050 13,650 400 14,350 14,750 14,700 15,150 15,850500 12,900 13,350 13,250 13,600 14,350 500 14,900 15,400 15,350 15,850 16,700600 13,300 13,800 13,700 14,150 14,950 600 15,400 16,000 15,950 16,500 17,500700 13,700 14,250 14,150 14,600 15,550 700 15,900 16,550 16,500 17,150 18,250800 14,050 14,650 14,600 15,100 16,150 800 16,350 17,100 17,000 17,700 19,000900 14,400 15,050 15,000 15,500 16,700 900 16,800 17,600 17,500 18,250 19,650

1,000 14700 15,450 15,350 15,950 17,200 1,000 17,200 18,100 18,000 18,800 20,3501,100 15,000 15,800 15,750 16,350 17,700 1,100 17,550 18,550 18,450 19,300 21,0001,200 15,300 16,150 16,100 16,750 18,200 1,200 17,950 19,000 18,900 19,800 21,6001,300 15,600 16,550 16,450 17,150 18,700 1,300 18,300 19,450 19,300 20,300 22,2501,400 15,900 16,900 16,800 17,550 19,200 1,400 18,700 19,900 19,750 20,750 22,8501,500 16,200 17,250 17,150 17,950 19,700 1,500 19,050 20,300 20,200 21,250 23,5001,600 16,450 17,550 17,500 18,300 20,200 1,600 19,400 20,750 20,600 21,700 24,1001,700 16,750 17,900 17,850 18,700 20,650 1,700 19,750 21,200 21,050 22,200 24,7001,800 17,050 18,250 18,200 19,100 21,150 1,800 20,100 21,600 21,450 22,700 25,3001,900 17,300 18,600 18,550 19,450 21,650 1,900 20,450 22,050 21,850 23,150 25,9502,000 17,600 18,950 18,900 19,850 22,150 2,000 20,850 22,450 22,300 23,650 26,5502,100 17,900 19,300 19,250 20,250 22,650 2,100 21,200 22,900 22,700 24,150 27,1502,200 18,150 19,650 19,600 20,650 23,150 2,200 21,550 23,350 23,150 24,600 27,8002,300 18,450 20,000 19,950 21,050 23,650 2,300 21,900 23,800 23,600 25,100 28,4502,400 18,750 20,400 20,300 21,450 24,150 2,400 22,300 24,250 24,050 25,600 29,0502,500 19,050 20,750 20,650 21,850 24,700 2,500 22,650 24,700 24,450 26,150 29,7002,600 19,400 21,100 21,050 22,250 25,200 2,600 23,050 25,150 24,900 26,650 30,3502,700 19,700 21,500 21,400 22,700 25,750 2,700 23,450 25,600 25,400 27,200 31,0502,800 20,000 21,900 21,800 23,100 26,300 2,800 23,800 26,100 25,850 27,700 31,7002,900 20,350 22,250 22,150 23,550 26,850 2,900 24,200 26,550 26,300 28,250 32,4003,000 20,650 22,650 22,550 24,000 27,400 3,000 24,600 27,050 26,800 28,800 33,100

Residential schedules



The base price schedule includesheat. If the structure is not heated, aminus adjustment must be made.

Central air conditioning is not in-cluded in the base price. If the struc-ture is cooled by central air condi-tioning, a plus adjustment must bemade.

Fireplaces are not included in thebase price. If the structure contains afireplace, an adjustment must bemade for the number of fireplacesand stacks. The amount of the adjust-ment would reflect the quality grade ofthe material used in the construction.

If the structure has a finished base-ment, an addition to the base pricemust be made. The amount of theaddition depends on whether thebasement was finished into a recre-ation room or finished into livingquarters. The amount of the adjust-ment would also reflect the qualitygrade of the materials used.

Finished basement (+)Per SF of finished floor area

Quality A B C DRecreation room $ 7.70 $ 6.25 $ 5.15 $ 4.20Living quarters 20.30 16.55 13.55 11.10

Fireplace (+)Quality A B C D

Fireplace & stack $6,805 $4,620 $3,090 $2,100 2nd Fireplace on same stack 5,445 3,695 2,470 1,680

Note: 100% masonry fireplaces are B quality or better.

Central air conditioning (+)SFGA 1 Story 1 ½ Story Split 2 Story 3 Story

200 $ 2,050 $ 2,050 $ 2,050 $ 2,050 $ 2,050400 2,050 2,050 2,050 2,050 2,200600 2,050 2,200 2,200 2,200 2,650800 2,050 2,350 2,350 2,650 3,200

1,000 2,200 2,650 2,650 2,800 4,2501,200 2,200 2,800 2,800 3,200 5,2501,400 2,350 2,950 2,950 4,250 5,6001,600 2,650 4,250 4,250 4,250 6,0001,800 2,650 4,250 4,250 5,250 7,2002,000 2,800 5,250 5,250 5,400 8,4002,200 3,200 5,600 5,600 5,750 8,6502,400 3,200 5,600 5,600 6,000 9,0002,600 3,200 5,750 5,750 6,450 11,0002,800 4,250 6,000 6,000 7,200 11,4503,000 4,250 6,000 6,000 8,400 12,600

Note: When using Schedule Combining with houses thathave central air conditioning, subtract an additional $1,600.

No heat (-)SFGA 1 Story 1 ½ Story Split 2 Story 3 Story

200 $2,000 $2,200 $2,400 $2,400 $2,800400 2,450 2,950 3,350 3,350 4,400600 2,900 3,650 4,550 4,550 6,000800 3,400 4,650 5,750 5,750 7,300

1,000 3,850 5,350 6,650 6,650 8,6001,200 4,650 6,400 7,550 7,550 9,9001,400 5,100 7,100 8,450 8,450 11,2001,600 5,850 7,800 9,400 9,400 12,5001,800 6,350 8,500 10,300 10,300 13,8002,000 6,800 9,200 11,200 11,200 15,1002,200 7,250 9,950 12,100 12,100 16,4002,400 7,750 10,650 13,000 13,000 17,7002,600 8,200 11,350 13,900 13,900 19,0002,800 8,700 12,050 14,800 14,800 20,3003,000 9,150 12,800 15,750 15,750 21,600



Occasionally, structures will featurebrick, stone, or artificial stone as trimaccenting a portion of the structure.If there is partial masonry trim onthe structure, an addition to the baseprice must be made. The amount ofthe adjustment would reflect the typeof material used and the qualitygrade of the material.

The paving schedule is used to valuesidewalks, driveways, etc. Theamount of the addition is determinedby the type of material used.

Values are indicated for crushed stone, concrete, and asphalt. To determine theamount of the addition, multiply the square footage of the paved area times theindicated value.

The base price includes a basement.If the structure does not have a base-ment, then a minus adjustment mustbe made. If there is no basement, thestructure will either be built on a“crawl” or a “slab.” When using thefoundation table, the left columnindicates the square footage of thearea not over a basement, the corre-sponding columns to the right indi-cate the value to be subtracted. Theamount of the deduction depends onthe area, as well as the type of con-struction.

Stoops, decks, and patios are notincluded in the base price, so anaddition must be made. To deter-mine the value, multiply the squarefootage of the structure times theindicated value.

Partial masonry trim (+)Per SF of surface area

Quality A B C DBrick $17.05 $ 14.80 $ 12.50 $ 10.10Stone 35.85 31.15 26.40 21.50Artificial stone 19.60 15.70 11.80 7.80

Paving (+)Crushed Stone $0.40/SFConcrete 3.10/SFAsphalt 2.05/SF

Foundation (-)SFGA Crawl Slab100 $ 750 $ 1,450200 1,500 2,950300 2,300 4,400400 3,050 5,900500 3,800 7,350600 4,550 8,800700 5,300 10,300800 6,100 11,750900 6,850 13,250

1,000 7,600 14,7001,100 8,350 16,1501,200 9,100 17,6501,300 9,900 19,1001,400 10,650 20,6001,500 11,400 22,050Over 7.60/SF 14.70/SF

Ordinarily there is no basement deduction forsplit-level construction. However, make a deduction of$13.60 per square foot of unfinished floor area forsplit-level construction in which the lower level is notfinished.

Stoop, decks, patios (+)Stoop - masonry $18.75/SFDeck - wood 17.05/SFPatio - concrete 3.10/SFPatio - brick 14.65/SF



Attic (+)SFGA Unfinished ½ Finished Finished

400 $ 5,850 $ 9,100 $ 12,300600 6,250 10,100 13,950800 6,700 11,150 15,600

1,000 7,100 12,200 17,2501,200 7,500 13,200 18,9001,400 7,900 14,250 20,5501,600 8,350 15,300 22,2001,800 8,750 16,300 23,8502,000 9,150 17,350 25,5002,200 9,600 18,400 27,1502,400 10,000 19,400 28,8002,600 10,400 20,450 30,5002,800 10,850 21,500 32,1503,000 11,250 22,550 33,800

Garages (+)SFGA Frame Masonry

140 $ 2,350 $ 2,850160 2,700 3,250180 3,000 3,700200 3,350 4,100220 3,700 4,500240 4,000 4,900260 4,350 5,300280 4,700 5,750300 5,050 6,150320 5,350 6,550340 5,700 6,950360 6,050 7,350380 6,350 7,750400 6,700 8,200420 7,050 8,600440 7,350 9,000460 7,700 9,400480 8,050 9,800500 8,400 10,250520 8,700 10,650540 9,050 11,050560 9,400 11,450580 9,700 11,850

Over 16.75/SF 20.45/SF

6-15 Unit 3: Mass Appraisal

If your structure has an attic, youmust make an addition. An atticis an area accessible by a station-ary, permanent staircase. In thisschedule, “finished” refers towalls, ceilings, and floors con-structed to enable the attic to beused as suitable living quarters.

Garages are additions to the basecost. If the garage is an attachedgarage, it should be listed in thecomputation ladder. If it is a separatedetached structure, it should belisted at the bottom of the PRC under“summary of other buildings.” Todetermine the amount of the addi-tion, refer to the left column for thesquare footage of the garage, thenlook in the columns to the right toobtain a value based on the type ofconstruction.

Note: Price garages constructed as an integral part of themain structure as part of the finished dwelling, then deduct$13.60 per square foot of garage area for on-grade andsplit-level construction.


Residential pools in ground (+)Price includes excavation, filtering system, pump,chlorinator, ladder, and diving board.

SFSA Concrete Vinyl liner

300 $ 21,900 $ 18,000450 27,100 20,100525 28,700 21,900650 32,100 23,800800 36,400 26,100

1,000 40,600 30,500

Price permanent type above-ground pools at 50% ofvinyl liner price.

Pool additions (+)Pool heaters

50 MBTU ........................................... $ 1,30575 MBTU ........................................... 1,515

100 MBTU ........................................... 1,760

Note: Prices in this schedule represent pool costs.The extent to which a pool may enhance an indi-vidual property’s market value is determined by thearea or subdivision in which it is located. In certainareas, the presence of a swimming pool may evendiminish market value.

Swimming pools are not included inthe base price. If the property in-cludes a pool, an addition needs tobe made to the base price. The poolwould be listed under ”summary ofother buildings” at the bottom of thePRC.

Porches are not included in the basecost. If the structure has one or moreporches, an addition to the base pricemust be made. To determine a value,locate the square footage of the porchin the left column and then go to theappropriate construction type in theright columns for the value. If youhave more than one porch attached tothe structure, price each porch indi-vidually. You cannot combine thetotal square footage for all porches.OFP indicates an open-frame porch,EFP an enclosed-frame porch, OMPan open-masonry porch, and EMP anenclosed-masonry porch.

Porches (+) SFGA OFP EFP OMP EMP

12 $950 $1,400 $1,000 $1,80016 1,000 1,500 1,100 1,90020 1,050 1,650 1,200 2,05030 1,250 1,950 1,400 2,40040 1,400 2,250 1,650 2,70060 1,700 2,800 2,100 3,40080 2,050 3,400 2,600 4,050100 2,350 4,000 3,050 4,750125 2,750 4,700 3,600 5,550150 3,150 5,450 4,200 6,400175 3,550 6,200 4,750 7,250200 3,950 6,900 5,350 8,050250 5,200 8,400 6,700 9,950300 6,000 9,850 7,850 11,600350 6,800 11,350 9,000 13,300400 7,600 12,800 10,150 14,950450 8,450 14,250 11,300 16,650

OVER 18.80/SF 31.65/SF 25.10/SF 37.00/SF



REL depreciation tablesAs discussed earlier, the condition, desirability, andutility of the property are factored in by using variousCDU ratings. Structures can be rated excellent, good,average, poor, or unsound. The actual age of the struc-ture and the CDU rating produce the effective age of aproperty. The effective age of the property determinesthe remaining economic life (REL) factor, which is ap-plied to the RCN of a structure to adjust for depreciation.

REL + depreciation = 100% of the value.

The Residential REL Depreciation Tables are used todetermine the REL factor. Looking at Schedule A, theleft column reflects the actual age of the structure basedon the construction date. Once you locate the actual age,move to the right to the appropriate column and findthe effective age based on the CDU rating assigned tothe property. Once you determine the effective age ofthe property, move to Schedule B. The left column ofSchedule B lists the effective age, and the number nextto it is the REL factor that is used to adjust the value inthe computation ladder.



6-18 Unit 3: Mass Appraisal



AgeE G A P U


1 1 1 1 18 63 70 24 39 70 102 117 1 100 73 682 1 1 2 19 67 71 24 40 71 102 117 2 99 74 673 1 1 3 21 71 72 25 41 72 102 117 3 98 75 674 1 1 4 22 75 73 25 42 73 102 117 4 97 76 675 1 1 5 24 78 74 26 43 74 103 117 5 96 77 666 1 1 6 26 81 75 26 44 75 103 117 6 95 78 667 1 1 7 29 84 76 27 45 76 103 118 7 94 79 668 1 1 8 32 86 77 28 47 77 104 118 8 93 80 659 1 2 9 35 88 78 29 48 78 104 118 9 92 81 65

10 1 3 10 38 90 79 30 49 79 104 118 10 91 82 6511 1 4 11 41 92 80 31 51 80 105 119 11 90 83 6412 1 5 12 44 94 81 32 53 81 105 119 12 89 84 6413 1 6 13 47 95 82 32 55 82 105 119 13 88 85 6314 1 6 14 50 95 83 34 57 83 106 120 14 88 86 6315 1 7 15 54 96 84 35 59 84 106 120 15 87 87 6216 2 8 16 57 98 85 36 62 85 107 121 16 86 88 6217 2 8 17 60 98 86 37 64 86 107 121 17 86 89 6118 3 9 18 63 99 87 39 66 87 108 121 18 85 90 6119 4 10 19 66 100 88 41 68 88 108 122 19 84 91 6020 4 10 20 69 101 89 43 70 89 109 122 20 84 92 6021 5 11 21 72 102 90 45 72 90 109 122 21 83 93 5922 6 12 22 74 103 91 47 74 91 110 123 22 82 94 5923 6 12 23 76 103 92 49 76 92 110 123 23 82 95 5824 7 13 24 78 104 93 52 78 93 111 124 24 81 96 5725 7 14 25 79 104 94 54 79 94 111 124 25 81 97 5726 8 15 26 81 105 95 58 81 95 112 125 26 80 98 5627 8 15 27 82 105 96 61 83 96 113 125 27 80 99 5528 9 16 28 83 106 97 63 84 97 113 126 28 79 100 5429 9 17 29 84 106 98 67 85 98 114 126 29 79 101 5430 9 17 30 84 106 99 71 87 99 115 127 30 79 102 5331 10 18 31 85 107 100 74 89 100 116 128 31 78 103 5232 10 18 32 86 107 101 76 90 101 116 128 32 78 104 5133 11 19 33 87 108 102 78 92 102 117 129 33 77 105 5034 11 20 34 88 108 103 81 94 103 118 130 34 77 106 4935 11 20 35 88 108 104 83 95 104 118 130 35 77 107 4836 12 21 36 89 109 105 85 97 105 119 131 36 76 108 4737 12 21 37 90 109 106 87 98 106 120 132 37 76 109 4638 12 21 38 90 109 107 89 99 107 121 133 38 76 110 4539 13 22 39 91 110 108 91 101 108 121 133 39 75 111 4440 13 22 40 91 110 109 93 102 109 122 134 40 75 112 4341 14 23 41 92 110 110 95 103 110 123 135 41 75 113 4242 14 23 42 92 110 111 97 104 111 124 136 42 75 114 4143 15 24 43 93 111 112 98 105 112 125 137 43 74 115 4044 15 24 44 93 111 113 99 106 113 126 138 44 74 116 3945 15 25 45 94 111 114 101 107 114 126 138 45 74 117 3846 15 25 46 94 111 115 102 108 115 127 139 46 74 118 3647 16 26 47 95 112 116 103 109 116 128 140 47 73 119 3548 16 26 48 95 112 117 104 110 117 129 141 48 73 120 3449 17 27 49 95 112 118 106 112 118 130 142 49 73 121 3350 17 27 50 95 112 119 107 113 119 131 143 50 73 122 3151 18 28 51 96 113 120 108 114 120 132 143 51 72 123 3052 18 28 52 96 113 121 109 115 121 133 143 52 72 124 2953 18 29 53 97 113 122 111 117 122 134 143 53 72 125 2854 18 30 54 97 113 123 112 117 123 135 143 54 72 126 2655 18 30 55 97 113 124 113 118 124 136 143 55 72 127 2556 19 31 56 98 114 125 114 119 125 137 143 56 71 128 2457 19 31 57 98 114 126 116 121 126 138 143 57 71 129 2358 20 32 58 98 114 127 117 121 127 139 143 58 71 130 2159 20 32 59 98 114 128 118 122 128 139 143 59 71 131 2060 20 32 60 98 114 129 118 123 129 139 143 60 71 132 1961 21 33 61 99 115 130 120 125 130 139 143 61 70 133 1862 21 33 62 99 115 131 121 125 131 139 143 62 70 134 1663 21 34 63 99 115 132 122 126 132 139 143 63 70 135 1564 21 35 64 99 115 133 122 127 133 139 143 64 70 136 1465 21 35 65 99 115 134 124 129 134 139 143 65 70 137 1366 22 36 66 100 116 135 125 129 135 139 143 66 69 138 1167 22 37 67 100 116 136 126 130 135 139 143 67 69 139 1068 23 37 68 101 116 137 126 131 135 139 143 68 69 140 969 23 38 69 101 116 138 127 131 135 139 143 69 69 141 8

70 68 142 771 68 143 572 68




Notes


Computing the value of a structureThe subject property is a 10-year old, 2-story framestructure with 8 rooms, including 4 bedrooms and afamily room.

The foundation is 8" masonry — there is a full base-ment, unfinished — the dwelling has central warm airheat and central air conditioning — plumbing consistsof the standard 5 plumbing fixtures, plus an additionalfull bath and a separate half-bath (2 fixtures) — exteriorwalls are covered with aluminum siding with 300square feet of common-stone trim, grade “C,” across thefront — the roof is covered with asphalt shingles — thebasement floor is concrete and the first and secondfloors are covered with tile and carpet — the interiorfinish is drywall on the first and second floors — thereis one fireplace, quality grade “C” — the structure hasan attached 400 square foot frame garage, with a 500square foot asphalt drive — there is an 80 square footwood deck on the rear of the structure — the propertyhas a CDU of “average,” and quality grade “C.”

The entire PRC-2 for this property is on the oppositepage. Refer to the computation ladder and the corre-sponding line numbers as you go through this line-by-line example.

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1 The structure is 10 years old, so 10 is written on theAge line.

2 The CDU is listed as “average.”

3 The Quality grade is listed as “C.”

4 The dwelling is a 2-story, frame structure with 1,000square feet on the ground floor.

5 Looking at the Base cost schedule — wood frameconstruction, the base price is $104,650.

6 The structure has a basement, so no adjustment isnecessary.

7 The structure is heated, so no adjustment isnecessary for heat. However, the structure hascentral air conditioning. Since air conditioning is notincluded in the base price, you must make a plusadjustment. Look at the Central air conditioningschedule — a 2-story structure with 1,000 squarefeet of ground area requires a plus adjustment of$2,800.

8 There are no variances in story height, so noschedule combining is necessary.

9 In addition to the standard 5 plumbing fixtures,there is an additional bathroom and a half-bath, soa plus adjustment for 5 additional fixtures isrequired. Reference the Plumbing schedule — theappropriate adjustment is $1,465 per fixture, or aplus $7,325 (5 x $1,465).

10 No adjustment is needed since there is no attic.

11 The listing indicated 1 “open frame porch,” which is240 square feet. Refer to the Porch schedule — thevalue for a 250 square foot open frame porch is$5,200. Since no value is given for 240 square feet,choose the closest listed footage.

12 The next addition needed is for an 80 square footwood deck. Looking at the schedules for Decks —the base price is $17.05 per square foot. To arrive at avalue, take 80 SF x $17.05 = $1,364.



13 There is a 400 square foot attached frame garage.Look at the Garage schedule — a plus $6,700adjustment is required.

14 The base cost of $104,650 and adjustments made sofar (for central air conditioning, plumbing, a porch,a deck, and the attached garage) are totalled toarrive at $128,039.

15 The next line refers to the quality grade. The qualitygrade for this structure is “C.” Looking at theschedule for Quality — the factor for “C” is 100percent. Since the grade is “C,” or average qualityconstruction, the values are not affected. Particularattention should always be paid to the factorassigned; any grade other than “C” will produce afactor other than 100 percent and change the value.

16 Taking 100 percent (1.00) times $128,039, the valueremains $128,039.

17 It should be noted that in the first part of thecomputation ladder, a quality grade factor of 1.00was applied to the adjusted base price. However, inthe items listed in the next portion of the ladder,individual quality grades for each feature must beconsidered when selecting the amount of adjustments.

18 The property has 300 square feet of common stonetrim, grade “C.” Looking at the schedule for Partialmasonry trim, find “stone” and grade “C” — thevalue is $26.40. Taking 300 square feet x $26.40produces a value of $7,920 to add to the cost.

19 This structure contains 1 fireplace, grade “C.”Referencing the Fireplace schedule — the value fora fireplace and stack, quality grade C, is $3,090.

20 There is no finished basement so no adjustment isneeded.

21 There are no more adjustments to make to thecomputation ladder at this point. Adding theadjusted base price of $128,039, to the value of thetrim and fireplace results in a total of $139,049.



22 As stated earlier, the values in the IRPAM are for thecentral Illinois area. From the cost factor studyconducted earlier, this property is in an area whereconstruction costs run about 6 percent higher.Therefore, you must use the cost factor of 106 percentto obtain accurate values for this jurisdiction.

23 When the adjusted value of $139,049 is multipliedby 106 percent (1.06), the resulting value of $147,392is the RCN of this structure.

24 Since the structure is 10 years old, the RCN must beadjustedfor any depreciation that has occurred.Going to Schedule A of the Residential RELDepreciation Tables — a 10-year old structurewith a CDU of “average” has an effective age of 10.On Schedule B, an effective age of 10 indicates anREL factor of 91 percent. This property hasdepreciated 9 percent (REL + depreciation = 100percent).

25 Taking 91 percent (.91) of the RCN of $147,392produces a full value of $134,127 for this structuretoday.

26 The listing also indicates that there is a 500 squarefoot asphalt driveway. Reference the Pavingschedule — the price per square foot of paved areais $2.05. To arrive at a value, take 500 SF x $2.05 =$1,025 x 1.00 (quality grade) = $1,025 x 1.06 (costfactor) = $1,087 (RCN). $1,087 (RCN) x .91 (REL) =$989 full value.

27 The value for the asphalt drive is $989 and thisbecomes the full value of the other buildings.

28 The final step is adding $989, the full value of theother buildings, to $134,127, the full value of thedwelling, which results in a full value of $135,116for all buildings.

The following schedules show how the values wereobtained.



100 $15,800 $19,950 $16,000 $21,300 $26,800 25 18,550 23,500 18,900 25,150 31,800 50 21,050 26,800 21,600 28,750 36,450 75 23,400 29,950 24,100 32,100 40,850200 25,600 32,850 26,550 35,300 45,050 25 27,700 35,650 28,850 38,400 49,100 50 29,650 38,350 31,050 41,300 53,000 75 31,550 40,900 33,150 44,150 56,750300 33,350 43,400 35,200 46,850 60,400 25 35,100 45,750 37,200 49,500 63,950 50 36,800 48,100 39,150 52,050 67,400 75 38,400 50,300 41,000 54,500 70,750400 39,950 52,500 42,850 56,950 74,050 25 41,450 54,600 44,600 59,300 77,250 50 42,950 56,700 46,350 61,600 80,400 75 44,350 58,700 48,050 63,850 83,500500 45,750 60,700 49,700 66,050 86,550 25 47,100 62,650 51,350 68,200 89,500 50 48,450 64,550 52,950 70,350 92,450 75 49,750 66,400 54,550 72,450 95,350600 51,000 68,250 56,100 74,500 98,250 25 52,250 70,050 57,650 76,550 101,050 50 53,500 71,850 59,150 78,550 103,850 75 54,700 73,600 60,650 80,500 106,600700 55,850 75,300 62,150 82,450 109,350 25 57,050 77,050 63,600 84,400 112,050 50 58,200 78,750 65,050 86,300 114,750 75 59,350 80,400 66,500 88,200 117,400800 60,450 82,050 67,900 90,100 120,050 25 61,550 83,700 69,300 91,950 122,650 50 62,650 85,350 70,700 93,800 125,250 75 63,750 86,950 72,100 95,650 127,850900 64,850 88,550 73,500 97,450 130,450 25 65,900 90,150 74,850 99,250 133,000 50 67,000 91,750 76,250 101,050 135,550 75 68,050 93,350 77,600 102,850 138,100

1,000 69,100 94,900 78,950 104,650 140,650 25 70,150 96,500 80,300 106,450 143,150 50 71,200 98,050 81,650 108,200 145,650 75 72,250 99,600 83,000 109,950 148,1501,100 73,250 101,150 84,350 111,750 150,700 25 74,300 102,700 85,650 113,500 153,200 50 75,350 104,250 87,000 115,250 155,650 75 76,350 105,800 88,350 117,000 158,1501,200 77,400 107,350 89,700 118,750 160,650 25 78,450 108,900 91,000 120,500 163,150 50 79,450 110,450 92,350 122,250 165,600 75 80,500 112,000 93,650 124,000 168,1001,300 81,550 113,550 95,000 125,800 170,600 25 82,550 115,100 96,350 127,550 173,100 50 83,600 116,650 97,700 129,300 175,550 75 84,650 118,200 99,000 131,050 178,0501,400 85,700 119,750 100,350 132,800 180,550 25 86,750 121,300 101,700 134,600 183,050 50 87,800 122,900 103,050 136,350 185,550 75 88,850 124,450 104,400 138,100 188,0501,500 89,900 126,000 105,750 139,900 190,550 25 90,950 127,600 107,100 141,700 193,100 50 92,050 129,200 108,450 143,450 195,600 75 93,100 130,750 109,850 145,250 198,150







Log homesBase cost per SFFA

SFFA1 Story 1½ Story 2 Story

6” 8” 6” 8” 6” 8”logs logs logs logs logs logs

600 $114.20 $113.25 ——- ——- ——- ——-800 103.20 102.35 ——- ——- ——- ——-

1,000 94.60 93.85 $104.45 $101.80 $114.30 $109.801,200 87.85 87.15 91.05 92.80 94.25 98.451,400 82.40 81.80 86.15 87.70 89.85 93.651,600 77.80 77.20 82.25 83.90 86.70 90.601,800 75.50 74.95 79.35 80.95 83.15 86.952,000 73.95 73.40 76.90 78.30 79.90 83.152,200 71.40 70.95 74.45 75.95 77.50 80.952,400 68.90 68.45 72.05 73.50 75.20 78.502,600 66.90 66.40 69.90 71.20 72.90 76.002,800 64.90 64.30 67.60 68.85 70.25 73.403,000 63.85 63.30 65.75 67.05 67.65 70.803,200 62.80 62.30 64.80 66.05 66.75 69.853,400 ——- ——- ——- ——- 65.85 68.903,800 ——- ——- ——- ——- 64.05 66.80

Base price schedules include normal constructionfeatures, such as a basement, post and beam frame,log exterior walls, floors, asphalt shingled roof, drywallinterior finish, forced warm air central heating, lighting,and plumbing (five fixtures).

Schedule combining — frame/masonry (-)Frame Masonry

SFGA 1 Story 1 ½ Story Split 2 Story 3 Story SFGA 1 Story 1 ½ Story Split 2 Story 3 Story100 $10,550 $10,650 $10,650 $10,750 $10,950 100 $11,900 $12,050 $12,050 $12,200 $12,400200 11,350 11,550 11,500 11,700 12,000 200 12,900 13,150 13,100 13,400 13,800300 11,950 12,200 12,150 12,400 12,900 300 13,700 14,000 13,950 14,350 14,900400 12,450 12,800 12,750 13,050 13,650 400 14,350 14,750 14,700 15,150 15,850500 12,900 13,350 13,250 13,600 14,350 500 14,900 15,400 15,350 15,850 16,700600 13,300 13,800 13,700 14,150 14,950 600 15,400 16,000 15,950 16,500 17,500700 13,700 14,250 14,150 14,600 15,550 700 15,900 16,550 16,500 17,150 18,250800 14,050 14,650 14,600 15,100 16,150 800 16,350 17,100 17,000 17,700 19,000900 14,400 15,050 15,000 15,500 16,700 900 16,800 17,600 17,500 18,250 19,650

1,000 14700 15,450 15,350 15,950 17,200 1,000 17,200 18,100 18,000 18,800 20,3501,100 15,000 15,800 15,750 16,350 17,700 1,100 17,550 18,550 18,450 19,300 21,0001,200 15,300 16,150 16,100 16,750 18,200 1,200 17,950 19,000 18,900 19,800 21,6001,300 15,600 16,550 16,450 17,150 18,700 1,300 18,300 19,450 19,300 20,300 22,2501,400 15,900 16,900 16,800 17,550 19,200 1,400 18,700 19,900 19,750 20,750 22,8501,500 16,200 17,250 17,150 17,950 19,700 1,500 19,050 20,300 20,200 21,250 23,5001,600 16,450 17,550 17,500 18,300 20,200 1,600 19,400 20,750 20,600 21,700 24,1001,700 16,750 17,900 17,850 18,700 20,650 1,700 19,750 21,200 21,050 22,200 24,7001,800 17,050 18,250 18,200 19,100 21,150 1,800 20,100 21,600 21,450 22,700 25,3001,900 17,300 18,600 18,550 19,450 21,650 1,900 20,450 22,050 21,850 23,150 25,9502,000 17,600 18,950 18,900 19,850 22,150 2,000 20,850 22,450 22,300 23,650 26,5502,100 17,900 19,300 19,250 20,250 22,650 2,100 21,200 22,900 22,700 24,150 27,1502,200 18,150 19,650 19,600 20,650 23,150 2,200 21,550 23,350 23,150 24,600 27,8002,300 18,450 20,000 19,950 21,050 23,650 2,300 21,900 23,800 23,600 25,100 28,4502,400 18,750 20,400 20,300 21,450 24,150 2,400 22,300 24,250 24,050 25,600 29,0502,500 19,050 20,750 20,650 21,850 24,700 2,500 22,650 24,700 24,450 26,150 29,7002,600 19,400 21,100 21,050 22,250 25,200 2,600 23,050 25,150 24,900 26,650 30,3502,700 19,700 21,500 21,400 22,700 25,750 2,700 23,450 25,600 25,400 27,200 31,0502,800 20,000 21,900 21,800 23,100 26,300 2,800 23,800 26,100 25,850 27,700 31,7002,900 20,350 22,250 22,150 23,550 26,850 2,900 24,200 26,550 26,300 28,250 32,4003,000 20,650 22,650 22,550 24,000 27,400 3,000 24,600 27,050 26,800 28,800 33,100

Plumbing (±)

Per fixture less than standard Deduct $1,465

Per fixture greater than standard Add $1,465

Quality

Grade FactorAA 225%A 150%B 122%C 100%D 82%E 50%





200 $2,000 $2,200 $2,400 $2,400 $2,800400 2,450 2,950 3,350 3,350 4,400600 2,900 3,650 4,550 4,550 6,000800 3,400 4,650 5,750 5,750 7,300

1,000 3,850 5,350 6,650 6,650 8,6001,200 4,650 6,400 7,550 7,550 9,9001,400 5,100 7,100 8,450 8,450 11,2001,600 5,850 7,800 9,400 9,400 12,5001,800 6,350 8,500 10,300 10,300 13,8002,000 6,800 9,200 11,200 11,200 15,1002,200 7,250 9,950 12,100 12,100 16,4002,400 7,750 10,650 13,000 13,000 17,7002,600 8,200 11,350 13,900 13,900 19,0002,800 8,700 12,050 14,800 14,800 20,3003,000 9,150 12,800 15,750 15,750 21,600

Central air conditioning (+) SFGA 1 Story 1 ½ Story Split 2 Story 3 Story

200 $2,050 $2,050 $2,050 $2,050 $2,050400 2,050 2,050 2,050 2,050 2,200600 2,050 2,200 2,200 2,200 2,650800 2,050 2,350 2,350 2,650 3,200

1,000 2,200 2,650 2,650 2,800 4,2501,200 2,200 2,800 2,800 3,200 5,2501,400 2,350 2,950 2,950 4,250 5,6001,600 2,650 4,250 4,250 4,250 6,0001,800 2,650 4,250 4,250 5,250 7,2002,000 2,800 5,250 5,250 5,400 8,4002,200 3,200 5,600 5,600 5,750 8,6502,400 3,200 5,600 5,600 6,000 9,0002,600 3,200 5,750 5,750 6,450 11,0002,800 4,250 6,000 6,000 7,200 11,4503,000 4,250 6,000 6,000 8,400 12,600

Note: When using Schedule Combining with houses that have central air conditioning, subtract an additional $1,600.


Fireplace & stack $6,805 $4,620 $3,090 $2,100

2nd fireplace on same stack 5,445 3,695 2,470 1,680


Quality A B C D Recreation room $7.70 $6.25 $5.15 $4.20 Living quarters 20.30 16.55 13.55 11.10



Quality A B C D Brick $17.05 $14.80 $12.50 $10.10 Stone 35.85 31.15 26.40 21.50 Artificial stone 19.60 15.70 11.80 7.80

Paving (+) Crushed stone $0.40/SF Concrete 3.10/SF Asphalt 2.05/SF

Foundation (-)SFGA Crawl Slab

100 $750 $1,450200 1,500 2,950300 2,300 4,400400 3,050 5,900500 3,800 7,350600 4,550 8,800700 5,300 10,300800 6,100 11,750900 6,850 13,250

1,000 7,600 14,7001,100 8,350 16,1501,200 9,100 17,6501,300 9,900 19,1001,400 10,650 20,6001,500 11,400 22,050

OVER 7.60/SF 14.70/SF

Note: Ordinarily there is no basement deduction for split- level construction. However, make a deduction of $13.60 per SF of unfinished floor area for split-level construction in which the lower level is not finished.

Stoop, decks, patios (+)Stoop-masonry 18.75/SFDeck-wood 17.05/SFPatio-concrete 3.10/SFPatio-brick 14.65/SF




12 $950 $1,400 $1,000 $1,80016 1,000 1,500 1,100 1,90020 1,050 1,650 1,200 2,05030 1,250 1,950 1,400 2,40040 1,400 2,250 1,650 2,70060 1,700 2,800 2,100 3,40080 2,050 3,400 2,600 4,050100 2,350 4,000 3,050 4,750125 2,750 4,700 3,600 5,550150 3,150 5,450 4,200 6,400175 3,550 6,200 4,750 7,250200 3,950 6,900 5,350 8,050250 5,200 8,400 6,700 9,950300 6,000 9,850 7,850 11,600350 6,800 11,350 9,000 13,300400 7,600 12,800 10,150 14,950450 8,450 14,250 11,300 16,650

OVER 18.80/SF 31.65/SF 25.10/SF 37.00/SF



300 $21,900 $18,000450 27,100 20,100525 28,700 21,900650 32,100 23,800800 36,400 26,100

1,000 40,600 30,500

Price permanent type above-ground pools at 50% of vinyl liner price.

Pool additions (+) Pool Heaters

50MBTU $1,30575MBTU 1,515100MBTU 1,760

Note: Prices in this schedule represent pool costs. The extent to which a pool may enhance an individual property’s market value is determined by the area or subdivision in which it is located. In certain areas, the presence of a swimming pool may even diminish the market value.

Garages (+)

SFGA Frame Masonry

140 $2,350 $2,850160 2,700 3,250180 3,000 3,700200 3,350 4,100220 3,700 4,500240 4,000 4,900260 4,350 5,300280 4,700 5,750300 5,050 6,150320 5,350 6,550340 5,700 6,950360 6,050 7,350380 6,350 7,750400 6,700 8,200420 7,050 8,600440 7,350 9,000460 7,700 9,400480 8,050 9,800500 8,400 10,250520 8,700 10,650540 9,050 11,050560 9,400 11,450580 9,700 11,850

OVER 16.75/SF 20.45/SF

Note: Price garages constructed as an integral part of the main structure as part of the finished dwelling, then deduct $13.60 per square foot of garage area for on-grade and split-level construction.


400 $5,850 $9,100 $12,300600 6,250 10,100 13,950800 6,700 11,150 15,600

1,000 7,100 12,200 17,2501,200 7,500 13,200 18,9001,400 7,900 14,250 20,5501,600 8,350 15,300 22,2001,800 8,750 16,300 23,8502,000 9,150 17,350 25,5002,200 9,600 18,400 27,1502,400 10,000 19,400 28,8002,600 10,400 20,450 30,5002,800 10,850 21,500 32,1503,000 11,250 22,550 33,800




Base costs includes average construction features, permanent inexpensive crawl space foundation, steps, plumbing (five fixtures),lighting, and central heating. Furniture is not included.

WIDTH 40’ 44’ 48’ 52’ 56’ 60’ 64’ 68’ 72’ 76’ 80’8’ $19,250 $20,950 $22,650 $24,350 $26,000 $27,600 $29,250 $30,850 $32,400 $34,000 $35,550

12’ 23,300 25,250 27,200 29,100 31,000 32,800 34,650 36,450 38,200 40,000 41,700

14’ 24,700 26,800 28,850 30,900 32,900 34,850 36,800 38,750 40,650 42,550 44,400

16’ 26,350 28,550 30,700 32,800 34,900 36,950 39,000 41,000 43,000 44,950 46,900

20’ 41,900 44,950 47,900 50,750 53,550 56,250 58,900 61,550 64,100 66,600 69,100

24’ 45,450 48,500 51,450 54,300 57,100 59,800 62,400 65,000 67,500 70,000 72,400

28’ 48,700 51,800 54,700 57,550 60,300 62,950 65,550 68,100 70,550 72,950 75,350

32’ 50,800 53,950 56,950 59,850 62,650 65,400 68,050 70,650 73,150 75,600 78,050

Mobile home schedule


Mobile home REL Table

Age REL Age REL Age REL Age REL Age REL Age REL Age REL

1 87 4 69 7 58 10 50 13 44 16 40 19 37 2 80 5 65 8 55 11 48 14 43 17 39 20 36 3 74 6 61 9 52 12 46 15 41 18 38 Over 20 35





AgeE G A P U


1 1 1 1 18 63 70 24 39 70 102 117 1 100 73 682 1 1 2 19 67 71 24 40 71 102 117 2 99 74 673 1 1 3 21 71 72 25 41 72 102 117 3 98 75 674 1 1 4 22 75 73 25 42 73 102 117 4 97 76 675 1 1 5 24 78 74 26 43 74 103 117 5 96 77 666 1 1 6 26 81 75 26 44 75 103 117 6 95 78 667 1 1 7 29 84 76 27 45 76 103 118 7 94 79 668 1 1 8 32 86 77 28 47 77 104 118 8 93 80 659 1 2 9 35 88 78 29 48 78 104 118 9 92 81 65

10 1 3 10 38 90 79 30 49 79 104 118 10 91 82 6511 1 4 11 41 92 80 31 51 80 105 119 11 90 83 6412 1 5 12 44 94 81 32 53 81 105 119 12 89 84 6413 1 6 13 47 95 82 32 55 82 105 119 13 88 85 6314 1 6 14 50 95 83 34 57 83 106 120 14 88 86 6315 1 7 15 54 96 84 35 59 84 106 120 15 87 87 6216 2 8 16 57 98 85 36 62 85 107 121 16 86 88 6217 2 8 17 60 98 86 37 64 86 107 121 17 86 89 6118 3 9 18 63 99 87 39 66 87 108 121 18 85 90 6119 4 10 19 66 100 88 41 68 88 108 122 19 84 91 6020 4 10 20 69 101 89 43 70 89 109 122 20 84 92 6021 5 11 21 72 102 90 45 72 90 109 122 21 83 93 5922 6 12 22 74 103 91 47 74 91 110 123 22 82 94 5923 6 12 23 76 103 92 49 76 92 110 123 23 82 95 5824 7 13 24 78 104 93 52 78 93 111 124 24 81 96 5725 7 14 25 79 104 94 54 79 94 111 124 25 81 97 5726 8 15 26 81 105 95 58 81 95 112 125 26 80 98 5627 8 15 27 82 105 96 61 83 96 113 125 27 80 99 5528 9 16 28 83 106 97 63 84 97 113 126 28 79 100 5429 9 17 29 84 106 98 67 85 98 114 126 29 79 101 5430 9 17 30 84 106 99 71 87 99 115 127 30 79 102 5331 10 18 31 85 107 100 74 89 100 116 128 31 78 103 5232 10 18 32 86 107 101 76 90 101 116 128 32 78 104 5133 11 19 33 87 108 102 78 92 102 117 129 33 77 105 5034 11 20 34 88 108 103 81 94 103 118 130 34 77 106 4935 11 20 35 88 108 104 83 95 104 118 130 35 77 107 4836 12 21 36 89 109 105 85 97 105 119 131 36 76 108 4737 12 21 37 90 109 106 87 98 106 120 132 37 76 109 4638 12 21 38 90 109 107 89 99 107 121 133 38 76 110 4539 13 22 39 91 110 108 91 101 108 121 133 39 75 111 4440 13 22 40 91 110 109 93 102 109 122 134 40 75 112 4341 14 23 41 92 110 110 95 103 110 123 135 41 75 113 4242 14 23 42 92 110 111 97 104 111 124 136 42 75 114 4143 15 24 43 93 111 112 98 105 112 125 137 43 74 115 4044 15 24 44 93 111 113 99 106 113 126 138 44 74 116 3945 15 25 45 94 111 114 101 107 114 126 138 45 74 117 3846 15 25 46 94 111 115 102 108 115 127 139 46 74 118 3647 16 26 47 95 112 116 103 109 116 128 140 47 73 119 3548 16 26 48 95 112 117 104 110 117 129 141 48 73 120 3449 17 27 49 95 112 118 106 112 118 130 142 49 73 121 3350 17 27 50 95 112 119 107 113 119 131 143 50 73 122 3151 18 28 51 96 113 120 108 114 120 132 143 51 72 123 3052 18 28 52 96 113 121 109 115 121 133 143 52 72 124 2953 18 29 53 97 113 122 111 117 122 134 143 53 72 125 2854 18 30 54 97 113 123 112 117 123 135 143 54 72 126 2655 18 30 55 97 113 124 113 118 124 136 143 55 72 127 2556 19 31 56 98 114 125 114 119 125 137 143 56 71 128 2457 19 31 57 98 114 126 116 121 126 138 143 57 71 129 2358 20 32 58 98 114 127 117 121 127 139 143 58 71 130 2159 20 32 59 98 114 128 118 122 128 139 143 59 71 131 2060 20 32 60 98 114 129 118 123 129 139 143 60 71 132 1961 21 33 61 99 115 130 120 125 130 139 143 61 70 133 1862 21 33 62 99 115 131 121 125 131 139 143 62 70 134 1663 21 34 63 99 115 132 122 126 132 139 143 63 70 135 1564 21 35 64 99 115 133 122 127 133 139 143 64 70 136 1465 21 35 65 99 115 134 124 129 134 139 143 65 70 137 1366 22 36 66 100 116 135 125 129 135 139 143 66 69 138 1167 22 37 67 100 116 136 126 130 135 139 143 67 69 139 1068 23 37 68 101 116 137 126 131 135 139 143 68 69 140 969 23 38 69 101 116 138 127 131 135 139 143 69 69 141 8

70 68 142 771 68 143 572 68




The cost factor of 1.06, developed in Unit 5, Exercise 5-1,will be used for all three of the following exercises. Usethe cost factor of 1.06 only for these exercises. Do notuse this cost factor on your exam unless instructed to doso.

Note: The PRC on your exam will not have a narrativedescription attached as they do in Exercises 6-2 through6-4. It is important that you study the PRCs in thissegment to ensure that you can correctly interpret thespecifications of the property based on the itemschecked on the cards. You will encounter one PRC onyour exam. An example of a PRC-2, formatted in thesame manner as the exam, is found on Page 6-47.

If you have any questions, please refer to the answerkey in the back of this booklet.


195PTAX-1-BR — Board of Review — Basic Course6-33 Unit 6: Mass Appraisal and Residential Square Foot Schedules

100 $15,800 $19,950 $16,000 $21,300 $26,800 25 18,550 23,500 18,900 25,150 31,800 50 21,050 26,800 21,600 28,750 36,450 75 23,400 29,950 24,100 32,100 40,850200 25,600 32,850 26,550 35,300 45,050 25 27,700 35,650 28,850 38,400 49,100 50 29,650 38,350 31,050 41,300 53,000 75 31,550 40,900 33,150 44,150 56,750300 33,350 43,400 35,200 46,850 60,400 25 35,100 45,750 37,200 49,500 63,950 50 36,800 48,100 39,150 52,050 67,400 75 38,400 50,300 41,000 54,500 70,750400 39,950 52,500 42,850 56,950 74,050 25 41,450 54,600 44,600 59,300 77,250 50 42,950 56,700 46,350 61,600 80,400 75 44,350 58,700 48,050 63,850 83,500500 45,750 60,700 49,700 66,050 86,550 25 47,100 62,650 51,350 68,200 89,500 50 48,450 64,550 52,950 70,350 92,450 75 49,750 66,400 54,550 72,450 95,350600 51,000 68,250 56,100 74,500 98,250 25 52,250 70,050 57,650 76,550 101,050 50 53,500 71,850 59,150 78,550 103,850 75 54,700 73,600 60,650 80,500 106,600700 55,850 75,300 62,150 82,450 109,350 25 57,050 77,050 63,600 84,400 112,050 50 58,200 78,750 65,050 86,300 114,750 75 59,350 80,400 66,500 88,200 117,400800 60,450 82,050 67,900 90,100 120,050 25 61,550 83,700 69,300 91,950 122,650 50 62,650 85,350 70,700 93,800 125,250 75 63,750 86,950 72,100 95,650 127,850900 64,850 88,550 73,500 97,450 130,450 25 65,900 90,150 74,850 99,250 133,000 50 67,000 91,750 76,250 101,050 135,550 75 68,050 93,350 77,600 102,850 138,100

1,000 69,100 94,900 78,950 104,650 140,650 25 70,150 96,500 80,300 106,450 143,150 50 71,200 98,050 81,650 108,200 145,650 75 72,250 99,600 83,000 109,950 148,1501,100 73,250 101,150 84,350 111,750 150,700 25 74,300 102,700 85,650 113,500 153,200 50 75,350 104,250 87,000 115,250 155,650 75 76,350 105,800 88,350 117,000 158,1501,200 77,400 107,350 89,700 118,750 160,650 25 78,450 108,900 91,000 120,500 163,150 50 79,450 110,450 92,350 122,250 165,600 75 80,500 112,000 93,650 124,000 168,1001,300 81,550 113,550 95,000 125,800 170,600 25 82,550 115,100 96,350 127,550 173,100 50 83,600 116,650 97,700 129,300 175,550 75 84,650 118,200 99,000 131,050 178,0501,400 85,700 119,750 100,350 132,800 180,550 25 86,750 121,300 101,700 134,600 183,050 50 87,800 122,900 103,050 136,350 185,550 75 88,850 124,450 104,400 138,100 188,0501,500 89,900 126,000 105,750 139,900 190,550 25 90,950 127,600 107,100 141,700 193,100 50 92,050 129,200 108,450 143,450 195,600 75 93,100 130,750 109,850 145,250 198,150







Base cost schedule — masonry construction


& bsmt. & bsmt. level & bsmt. & bsmt. & bsmt. & bsmt. level & bsmt. & bsmt.100 $17,000 $21,600 $17,900 $24,350 $29,800 25 19,950 25,450 21,100 28,700 35,350 50 22,650 29,050 24,100 32,700 40,500 75 25,150 32,400 26,850 36,500 45,400200 27,550 35,550 29,500 40,100 50,100 25 29,800 38,600 32,000 43,500 54,600 50 31,900 41,500 34,400 46,800 58,900 75 33,950 44,300 36,750 49,900 63,100300 35,900 46,950 38,950 52,950 67,150 25 37,750 49,550 41,100 55,850 71,100 50 39,550 52,050 43,150 58,650 74,900 75 41,300 54,450 45,200 61,400 78,650400 43,000 56,850 47,150 64,050 82,300 25 44,600 59,100 49,050 66,650 85,900 50 46,200 61,350 50,900 69,150 89,400 75 47,700 63,550 52,700 71,650 92,800500 49,200 65,700 54,500 74,050 96,200 25 50,700 67,800 56,250 76,400 99,500 50 52,100 69,850 57,950 78,750 102,800 75 53,500 71,850 59,600 81,000 106,000600 54,850 73,850 61,250 83,250 109,200 25 56,200 75,800 62,900 85,450 112,350 50 57,550 77,750 64,500 87,650 115,450 75 58,800 79,650 66,050 89,800 118,500700 60,100 81,500 67,600 91,900 121,550 25 61,350 83,400 69,150 94,000 124,550 50 62,600 85,200 70,700 96,050 127,550 75 63,800 87,050 72,200 98,100 130,500800 65,050 88,800 73,650 100,100 133,450 25 66,200 90,600 75,150 102,150 136,350 50 67,400 92,350 76,600 104,100 139,250 75 68,600 94,150 78,050 106,100 142,150900 69,750 95,850 79,500 108,050 145,000 25 70,900 97,600 80,950 110,000 147,850 50 72,050 99,300 82,400 111,950 150,700 75 73,200 101,050 83,800 113,900 153,500

1,000 74,300 102,750 85,200 115,800 156,350 25 75,450 104,450 86,650 117,700 159,150 50 76,550 106,150 88,050 119,650 161,950 75 77,700 107,800 89,450 121,550 164,7001,100 78,800 109,500 90,800 123,450 167,500 25 79,950 111,200 92,200 125,300 170,300 50 81,050 112,850 93,600 127,200 173,050 75 82,150 114,550 95,000 129,100 175,8001,200 83,250 116,200 96,400 131,000 178,600 25 84,350 117,900 97,750 132,850 181,350 50 85,500 119,550 99,150 134,750 184,100 75 86,600 121,250 100,550 136,650 186,9001,300 87,700 122,900 101,950 138,550 189,650 25 88,800 124,600 103,350 140,400 192,400 50 89,950 126,250 104,700 142,300 195,200 75 91,050 127,950 106,100 144,200 197,9501,400 92,200 129,600 107,500 146,100 200,700 25 93,300 131,300 108,900 148,000 203,500 50 94,450 133,000 110,300 149,900 206,300 75 95,550 134,700 111,750 151,850 209,0501,500 96,700 136,400 113,150 153,750 211,850 25 97,850 138,100 114,550 155,650 214,650 50 99,000 139,800 115,950 157,600 217,450 75 100,150 141,550 117,400 159,550 220,250

1,600 $101,300 $143,250 $118,850 $161,500 $223,100 25 102,500 145,000 120,250 163,450 225,900 50 103,650 146,750 121,700 165,400 228,750 75 104,850 148,500 123,150 167,350 231,6001,700 106,000 150,250 124,600 169,350 234,400 25 107,200 152,000 126,100 171,350 237,300 50 108,400 153,800 127,550 173,350 240,150 75 109,650 155,550 129,050 175,350 243,0501,800 110,850 157,350 130,500 177,350 245,900 25 112,050 159,150 132,000 179,400 248,800 50 113,300 160,950 133,500 181,450 251,750 75 114,550 162,800 135,000 183,500 254,6501,900 115,800 164,600 136,550 185,550 257,600 25 117,050 166,450 138,050 187,650 260,550 50 118,350 168,300 139,600 189,700 263,500 75 119,650 170,150 141,150 191,800 266,4502,000 120,900 172,050 142,700 193,950 269,450 25 122,200 173,950 144,250 196,050 272,450 50 123,550 175,850 145,850 198,200 275,450 75 124,850 177,750 147,450 200,350 278,5002,100 126,200 179,650 149,000 202,500 281,550 25 127,550 181,600 150,650 204,700 284,600 50 128,900 183,550 152,250 206,900 287,650 75 130,250 185,500 153,850 209,100 290,7502,200 131,650 187,500 155,500 211,300 293,850 25 133,000 189,450 157,150 213,550 296,950 50 134,450 191,450 158,800 215,800 300,100 75 135,850 193,500 160,500 218,100 303,2502,300 137,250 195,500 162,150 220,350 306,400 25 138,700 197,550 163,850 222,650 309,600 50 140,150 199,600 165,550 225,000 312,750 75 141,600 201,650 167,250 227,300 316,0002,400 143,100 203,750 169,000 229,650 319,200 25 144,600 205,850 170,750 232,050 322,450 50 146,100 207,950 172,500 234,400 325,700 75 147,600 210,100 174,250 236,800 329,0002,500 149,100 212,250 176,050 239,200 332,300 25 150,650 214,400 177,800 241,650 335,600 50 152,200 216,550 179,650 244,100 338,950 75 153,750 218,750 181,450 246,550 342,3002,600 155,350 220,950 183,250 249,050 345,700 25 156,950 223,200 185,100 251,550 349,050 50 158,550 225,400 186,950 254,100 352,500 75 160,200 227,650 188,850 256,600 355,9002,700 161,800 229,950 190,700 259,150 359,350 25 163,450 232,200 192,600 261,750 362,850 50 165,150 234,500 194,500 264,350 366,300 75 166,800 236,850 196,450 266,950 369,8002,800 168,500 239,150 198,400 269,600 373,350 25 170,200 241,500 200,350 272,250 376,900 50 171,950 243,900 202,300 274,900 380,450 75 173,650 246,250 204,250 277,600 384,0502,900 175,400 248,650 206,250 280,300 387,650 25 177,200 251,100 208,250 283,000 391,300 50 178,950 253,550 210,300 285,750 394,900 75 180,750 256,000 212,300 288,550 398,6003,000 182,550 258,450 214,350 291,300 402,300OVER 60.85/SF 86.15/SF 71.45/SF 97.10/SF 134.10/SF

Base price schedules include normal construction features,such as foundation, basement and basement walls, allexteriors walls, floors, roof, interior finish, central heating,lighting, plumbing (five fixtures), and average landscaping.



Log homesBase cost per SFFA

SFFA1 Story 1½ Story 2 Story

6” 8” 6” 8” 6” 8”logs logs logs logs logs logs

600 $114.20 $113.25 ——- ——- ——- ——-800 103.20 102.35 ——- ——- ——- ——-

1,000 94.60 93.85 $104.45 $101.80 $114.30 $109.801,200 87.85 87.15 91.05 92.80 94.25 98.451,400 82.40 81.80 86.15 87.70 89.85 93.651,600 77.80 77.20 82.25 83.90 86.70 90.601,800 75.50 74.95 79.35 80.95 83.15 86.952,000 73.95 73.40 76.90 78.30 79.90 83.152,200 71.40 70.95 74.45 75.95 77.50 80.952,400 68.90 68.45 72.05 73.50 75.20 78.502,600 66.90 66.40 69.90 71.20 72.90 76.002,800 64.90 64.30 67.60 68.85 70.25 73.403,000 63.85 63.30 65.75 67.05 67.65 70.803,200 62.80 62.30 64.80 66.05 66.75 69.853,400 ——- ——- ——- ——- 65.85 68.903,800 ——- ——- ——- ——- 64.05 66.80

Base price schedules include normal constructionfeatures, such as a basement, post and beam frame,log exterior walls, floors, asphalt shingled roof, drywallinterior finish, forced warm air central heating, lighting,and plumbing (five fixtures).

Schedule combining — frame/masonry (-)Frame Masonry

SFGA 1 Story 1 ½ Story Split 2 Story 3 Story SFGA 1 Story 1 ½ Story Split 2 Story 3 Story100 $10,550 $10,650 $10,650 $10,750 $10,950 100 $11,900 $12,050 $12,050 $12,200 $12,400200 11,350 11,550 11,500 11,700 12,000 200 12,900 13,150 13,100 13,400 13,800300 11,950 12,200 12,150 12,400 12,900 300 13,700 14,000 13,950 14,350 14,900400 12,450 12,800 12,750 13,050 13,650 400 14,350 14,750 14,700 15,150 15,850500 12,900 13,350 13,250 13,600 14,350 500 14,900 15,400 15,350 15,850 16,700600 13,300 13,800 13,700 14,150 14,950 600 15,400 16,000 15,950 16,500 17,500700 13,700 14,250 14,150 14,600 15,550 700 15,900 16,550 16,500 17,150 18,250800 14,050 14,650 14,600 15,100 16,150 800 16,350 17,100 17,000 17,700 19,000900 14,400 15,050 15,000 15,500 16,700 900 16,800 17,600 17,500 18,250 19,650

1,000 14700 15,450 15,350 15,950 17,200 1,000 17,200 18,100 18,000 18,800 20,3501,100 15,000 15,800 15,750 16,350 17,700 1,100 17,550 18,550 18,450 19,300 21,0001,200 15,300 16,150 16,100 16,750 18,200 1,200 17,950 19,000 18,900 19,800 21,6001,300 15,600 16,550 16,450 17,150 18,700 1,300 18,300 19,450 19,300 20,300 22,2501,400 15,900 16,900 16,800 17,550 19,200 1,400 18,700 19,900 19,750 20,750 22,8501,500 16,200 17,250 17,150 17,950 19,700 1,500 19,050 20,300 20,200 21,250 23,5001,600 16,450 17,550 17,500 18,300 20,200 1,600 19,400 20,750 20,600 21,700 24,1001,700 16,750 17,900 17,850 18,700 20,650 1,700 19,750 21,200 21,050 22,200 24,7001,800 17,050 18,250 18,200 19,100 21,150 1,800 20,100 21,600 21,450 22,700 25,3001,900 17,300 18,600 18,550 19,450 21,650 1,900 20,450 22,050 21,850 23,150 25,9502,000 17,600 18,950 18,900 19,850 22,150 2,000 20,850 22,450 22,300 23,650 26,5502,100 17,900 19,300 19,250 20,250 22,650 2,100 21,200 22,900 22,700 24,150 27,1502,200 18,150 19,650 19,600 20,650 23,150 2,200 21,550 23,350 23,150 24,600 27,8002,300 18,450 20,000 19,950 21,050 23,650 2,300 21,900 23,800 23,600 25,100 28,4502,400 18,750 20,400 20,300 21,450 24,150 2,400 22,300 24,250 24,050 25,600 29,0502,500 19,050 20,750 20,650 21,850 24,700 2,500 22,650 24,700 24,450 26,150 29,7002,600 19,400 21,100 21,050 22,250 25,200 2,600 23,050 25,150 24,900 26,650 30,3502,700 19,700 21,500 21,400 22,700 25,750 2,700 23,450 25,600 25,400 27,200 31,0502,800 20,000 21,900 21,800 23,100 26,300 2,800 23,800 26,100 25,850 27,700 31,7002,900 20,350 22,250 22,150 23,550 26,850 2,900 24,200 26,550 26,300 28,250 32,4003,000 20,650 22,650 22,550 24,000 27,400 3,000 24,600 27,050 26,800 28,800 33,100

Plumbing (±)

Per fixture less than standard Deduct $1,465

Per fixture greater than standard Add $1,465

Quality

Grade FactorAA 225%A 150%B 122%C 100%D 82%E 50%




200 $2,000 $2,200 $2,400 $2,400 $2,800400 2,450 2,950 3,350 3,350 4,400600 2,900 3,650 4,550 4,550 6,000800 3,400 4,650 5,750 5,750 7,300

1,000 3,850 5,350 6,650 6,650 8,6001,200 4,650 6,400 7,550 7,550 9,9001,400 5,100 7,100 8,450 8,450 11,2001,600 5,850 7,800 9,400 9,400 12,5001,800 6,350 8,500 10,300 10,300 13,8002,000 6,800 9,200 11,200 11,200 15,1002,200 7,250 9,950 12,100 12,100 16,4002,400 7,750 10,650 13,000 13,000 17,7002,600 8,200 11,350 13,900 13,900 19,0002,800 8,700 12,050 14,800 14,800 20,3003,000 9,150 12,800 15,750 15,750 21,600

Central air conditioning (+) SFGA 1 Story 1 ½ Story Split 2 Story 3 Story

200 $2,050 $2,050 $2,050 $2,050 $2,050400 2,050 2,050 2,050 2,050 2,200600 2,050 2,200 2,200 2,200 2,650800 2,050 2,350 2,350 2,650 3,200

1,000 2,200 2,650 2,650 2,800 4,2501,200 2,200 2,800 2,800 3,200 5,2501,400 2,350 2,950 2,950 4,250 5,6001,600 2,650 4,250 4,250 4,250 6,0001,800 2,650 4,250 4,250 5,250 7,2002,000 2,800 5,250 5,250 5,400 8,4002,200 3,200 5,600 5,600 5,750 8,6502,400 3,200 5,600 5,600 6,000 9,0002,600 3,200 5,750 5,750 6,450 11,0002,800 4,250 6,000 6,000 7,200 11,4503,000 4,250 6,000 6,000 8,400 12,600

Note: When using Schedule Combining with houses that have central air conditioning, subtract an additional $1,600.


Fireplace & stack $6,805 $4,620 $3,090 $2,100

2nd fireplace on same stack 5,445 3,695 2,470 1,680


Quality A B C D Recreation room $7.70 $6.25 $5.15 $4.20 Living quarters 20.30 16.55 13.55 11.10



Quality A B C D Brick $17.05 $14.80 $12.50 $10.10 Stone 35.85 31.15 26.40 21.50 Artificial stone 19.60 15.70 11.80 7.80

Paving (+) Crushed stone $0.40/SF Concrete 3.10/SF Asphalt 2.05/SF

Foundation (-)SFGA Crawl Slab

100 $750 $1,450200 1,500 2,950300 2,300 4,400400 3,050 5,900500 3,800 7,350600 4,550 8,800700 5,300 10,300800 6,100 11,750900 6,850 13,250

1,000 7,600 14,7001,100 8,350 16,1501,200 9,100 17,6501,300 9,900 19,1001,400 10,650 20,6001,500 11,400 22,050

OVER 7.60/SF 14.70/SF

Note: Ordinarily there is no basement deduction for split- level construction. However, make a deduction of $13.60 per SF of unfinished floor area for split-level construction in which the lower level is not finished.

Stoop, decks, patios (+)Stoop-masonry 18.75/SFDeck-wood 17.05/SFPatio-concrete 3.10/SFPatio-brick 14.65/SF





12 $950 $1,400 $1,000 $1,80016 1,000 1,500 1,100 1,90020 1,050 1,650 1,200 2,05030 1,250 1,950 1,400 2,40040 1,400 2,250 1,650 2,70060 1,700 2,800 2,100 3,40080 2,050 3,400 2,600 4,050100 2,350 4,000 3,050 4,750125 2,750 4,700 3,600 5,550150 3,150 5,450 4,200 6,400175 3,550 6,200 4,750 7,250200 3,950 6,900 5,350 8,050250 5,200 8,400 6,700 9,950300 6,000 9,850 7,850 11,600350 6,800 11,350 9,000 13,300400 7,600 12,800 10,150 14,950450 8,450 14,250 11,300 16,650

OVER 18.80/SF 31.65/SF 25.10/SF 37.00/SF



300 $21,900 $18,000450 27,100 20,100525 28,700 21,900650 32,100 23,800800 36,400 26,100

1,000 40,600 30,500

Price permanent type above-ground pools at 50% of vinyl liner price.

Pool additions (+) Pool Heaters

50MBTU $1,30575MBTU 1,515100MBTU 1,760

Note: Prices in this schedule represent pool costs. The extent to which a pool may enhance an individual property’s market value is determined by the area or subdivision in which it is located. In certain areas, the presence of a swimming pool may even diminish the market value.

Garages (+)

SFGA Frame Masonry

140 $2,350 $2,850160 2,700 3,250180 3,000 3,700200 3,350 4,100220 3,700 4,500240 4,000 4,900260 4,350 5,300280 4,700 5,750300 5,050 6,150320 5,350 6,550340 5,700 6,950360 6,050 7,350380 6,350 7,750400 6,700 8,200420 7,050 8,600440 7,350 9,000460 7,700 9,400480 8,050 9,800500 8,400 10,250520 8,700 10,650540 9,050 11,050560 9,400 11,450580 9,700 11,850

OVER 16.75/SF 20.45/SF

Note: Price garages constructed as an integral part of the main structure as part of the finished dwelling, then deduct $13.60 per square foot of garage area for on-grade and split-level construction.


400 $5,850 $9,100 $12,300600 6,250 10,100 13,950800 6,700 11,150 15,600

1,000 7,100 12,200 17,2501,200 7,500 13,200 18,9001,400 7,900 14,250 20,5501,600 8,350 15,300 22,2001,800 8,750 16,300 23,8502,000 9,150 17,350 25,5002,200 9,600 18,400 27,1502,400 10,000 19,400 28,8002,600 10,400 20,450 30,5002,800 10,850 21,500 32,1503,000 11,250 22,550 33,800



Base costs includes average construction features, permanent inexpensive crawl space foundation, steps, plumbing (five fixtures),lighting, and central heating. Furniture is not included.

WIDTH 40’ 44’ 48’ 52’ 56’ 60’ 64’ 68’ 72’ 76’ 80’8’ $19,250 $20,950 $22,650 $24,350 $26,000 $27,600 $29,250 $30,850 $32,400 $34,000 $35,550

12’ 23,300 25,250 27,200 29,100 31,000 32,800 34,650 36,450 38,200 40,000 41,700

14’ 24,700 26,800 28,850 30,900 32,900 34,850 36,800 38,750 40,650 42,550 44,400

16’ 26,350 28,550 30,700 32,800 34,900 36,950 39,000 41,000 43,000 44,950 46,900

20’ 41,900 44,950 47,900 50,750 53,550 56,250 58,900 61,550 64,100 66,600 69,100

24’ 45,450 48,500 51,450 54,300 57,100 59,800 62,400 65,000 67,500 70,000 72,400

28’ 48,700 51,800 54,700 57,550 60,300 62,950 65,550 68,100 70,550 72,950 75,350

32’ 50,800 53,950 56,950 59,850 62,650 65,400 68,050 70,650 73,150 75,600 78,050

Mobile home schedule


Mobile home REL Table

Age REL Age REL Age REL Age REL Age REL Age REL Age REL

1 87 4 69 7 58 10 50 13 44 16 40 19 37 2 80 5 65 8 55 11 48 14 43 17 39 20 36 3 74 6 61 9 52 12 46 15 41 18 38 Over 20 35





AgeE G A P U


1 1 1 1 18 63 70 24 39 70 102 117 1 100 73 682 1 1 2 19 67 71 24 40 71 102 117 2 99 74 673 1 1 3 21 71 72 25 41 72 102 117 3 98 75 674 1 1 4 22 75 73 25 42 73 102 117 4 97 76 675 1 1 5 24 78 74 26 43 74 103 117 5 96 77 666 1 1 6 26 81 75 26 44 75 103 117 6 95 78 667 1 1 7 29 84 76 27 45 76 103 118 7 94 79 668 1 1 8 32 86 77 28 47 77 104 118 8 93 80 659 1 2 9 35 88 78 29 48 78 104 118 9 92 81 65

10 1 3 10 38 90 79 30 49 79 104 118 10 91 82 6511 1 4 11 41 92 80 31 51 80 105 119 11 90 83 6412 1 5 12 44 94 81 32 53 81 105 119 12 89 84 6413 1 6 13 47 95 82 32 55 82 105 119 13 88 85 6314 1 6 14 50 95 83 34 57 83 106 120 14 88 86 6315 1 7 15 54 96 84 35 59 84 106 120 15 87 87 6216 2 8 16 57 98 85 36 62 85 107 121 16 86 88 6217 2 8 17 60 98 86 37 64 86 107 121 17 86 89 6118 3 9 18 63 99 87 39 66 87 108 121 18 85 90 6119 4 10 19 66 100 88 41 68 88 108 122 19 84 91 6020 4 10 20 69 101 89 43 70 89 109 122 20 84 92 6021 5 11 21 72 102 90 45 72 90 109 122 21 83 93 5922 6 12 22 74 103 91 47 74 91 110 123 22 82 94 5923 6 12 23 76 103 92 49 76 92 110 123 23 82 95 5824 7 13 24 78 104 93 52 78 93 111 124 24 81 96 5725 7 14 25 79 104 94 54 79 94 111 124 25 81 97 5726 8 15 26 81 105 95 58 81 95 112 125 26 80 98 5627 8 15 27 82 105 96 61 83 96 113 125 27 80 99 5528 9 16 28 83 106 97 63 84 97 113 126 28 79 100 5429 9 17 29 84 106 98 67 85 98 114 126 29 79 101 5430 9 17 30 84 106 99 71 87 99 115 127 30 79 102 5331 10 18 31 85 107 100 74 89 100 116 128 31 78 103 5232 10 18 32 86 107 101 76 90 101 116 128 32 78 104 5133 11 19 33 87 108 102 78 92 102 117 129 33 77 105 5034 11 20 34 88 108 103 81 94 103 118 130 34 77 106 4935 11 20 35 88 108 104 83 95 104 118 130 35 77 107 4836 12 21 36 89 109 105 85 97 105 119 131 36 76 108 4737 12 21 37 90 109 106 87 98 106 120 132 37 76 109 4638 12 21 38 90 109 107 89 99 107 121 133 38 76 110 4539 13 22 39 91 110 108 91 101 108 121 133 39 75 111 4440 13 22 40 91 110 109 93 102 109 122 134 40 75 112 4341 14 23 41 92 110 110 95 103 110 123 135 41 75 113 4242 14 23 42 92 110 111 97 104 111 124 136 42 75 114 4143 15 24 43 93 111 112 98 105 112 125 137 43 74 115 4044 15 24 44 93 111 113 99 106 113 126 138 44 74 116 3945 15 25 45 94 111 114 101 107 114 126 138 45 74 117 3846 15 25 46 94 111 115 102 108 115 127 139 46 74 118 3647 16 26 47 95 112 116 103 109 116 128 140 47 73 119 3548 16 26 48 95 112 117 104 110 117 129 141 48 73 120 3449 17 27 49 95 112 118 106 112 118 130 142 49 73 121 3350 17 27 50 95 112 119 107 113 119 131 143 50 73 122 3151 18 28 51 96 113 120 108 114 120 132 143 51 72 123 3052 18 28 52 96 113 121 109 115 121 133 143 52 72 124 2953 18 29 53 97 113 122 111 117 122 134 143 53 72 125 2854 18 30 54 97 113 123 112 117 123 135 143 54 72 126 2655 18 30 55 97 113 124 113 118 124 136 143 55 72 127 2556 19 31 56 98 114 125 114 119 125 137 143 56 71 128 2457 19 31 57 98 114 126 116 121 126 138 143 57 71 129 2358 20 32 58 98 114 127 117 121 127 139 143 58 71 130 2159 20 32 59 98 114 128 118 122 128 139 143 59 71 131 2060 20 32 60 98 114 129 118 123 129 139 143 60 71 132 1961 21 33 61 99 115 130 120 125 130 139 143 61 70 133 1862 21 33 62 99 115 131 121 125 131 139 143 62 70 134 1663 21 34 63 99 115 132 122 126 132 139 143 63 70 135 1564 21 35 64 99 115 133 122 127 133 139 143 64 70 136 1465 21 35 65 99 115 134 124 129 134 139 143 65 70 137 1366 22 36 66 100 116 135 125 129 135 139 143 66 69 138 1167 22 37 67 100 116 136 126 130 135 139 143 67 69 139 1068 23 37 68 101 116 137 126 131 135 139 143 68 69 140 969 23 38 69 101 116 138 127 131 135 139 143 69 69 141 8

70 68 142 771 68 143 572 68




Exercise 6-2

Cost factor __________

PIN 03-10-108-011-0040

Lot size 80’ x 120’ Lot value $25,000

The lot is improved with a 15-year old 1-story frame dwelling — attachedgarage — housing 5 rooms, including 2 bedrooms.

Foundation 8” concrete block on spread footing

Heating Gas fired forced air — central air conditioning

Plumbing Standard 5, plus a half bath — average grade fixturesand galvanized piping

Exterior walls 2” x 4” stud frame, 16” on-center (o.c.), with 5/8” lapsiding, painted — 1 3/4” doors — 1 3/8” double-hungwindows — 288 SF of face brick trim, grade C

Roof Asphalt shingles over 1/2” plywood sheathing with2” x 6” rafters, 24” o.c.

Floors Basement - 4” concrete — 1st floor - 2” x 8” joist,16” o.c. — vinyl asbestos tile and average gradecarpet with pad

Interior finish 1/2” drywall — pine doors and trim throughout —average grade kitchen cabinets

Miscellaneous Average quality electrical fixtures — average qualityworkmanship — 12’ x 20’ concrete drive and a 4’ x10’ concrete walk

CDU Average

Quality grade _______

Complete the PRC-2 on the opposite page.6-40 Unit 6: Mass Appraisal and Residential Square Foot Schedules


Exercise 6-2 — PRC-2 for 03-10-108-011-0040


PR

C-2

(R

-1/0

0) (o

ppos

ite P

RC

-1)

12

34

56

7Va

cant

Dwe

l-O

ther

Mob

ileA

Sum

mer

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Lot

ling

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eFr

ame

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e

Bu

ildin

g R

eco

rd —

Res

iden

tial

— R

ura

l(P

rope

rty

— T

ype

1)

Occ

upan

cyIn

terio

r Fi

nish

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odel

edSo

ld D

ate

Mo.

Day

Yr.

Age

Adj.

Age

B1

23

NH

Amou

nt $

CD

UPl

aste

r/dry

wal

lM

emo

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deLi

ving

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omm

odat

ions

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rboa

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g Co

mpu

tatio

nsTo

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oom

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ms

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ily ro

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ures

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peSt

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Foun

datio

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. Trim

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one2

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hes

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sy. W

all

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rFi

nish

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do. C

omm

.Po

rch

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-Sty.

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sem

ent

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emen

tBa

sem

ent

Rec

reat

ion

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ated

%Po

rch

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Sty.5

Hea

ting/

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tral a

ir1

34

Fire

plac

es#

Stac

ks #

With

:Po

rch

SFO

FP1

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P3EM

P42-

Sty.5

Sche

d. c

omb.

Full

Cra

wl

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Inte

gral

gara

geO

n gr

ade1

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w2

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deck

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ood

deck

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ng+

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rea

with

out b

smt.

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tache

d ga

rage

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.1M

sy.2

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port3

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ting

12

34

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eC

entra

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r con

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ther

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hes

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m a

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ot w

ater

/Ste

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age

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eate

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bing

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er fe

atur

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)Pt

. msy

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)Fi

repl

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f bat

h (2

)Fi

nish

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ent

Sink

/Lav

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ater

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set

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Tota

l1

23

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x D

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eU

nfin

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rtFu

llN

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AP

%

fini

shed

Exte

rior w

alls

Rep

lace

men

t cos

t new

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d/st

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/alu

min

um/v

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sid

ing

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age

REL

Con

cret

e bl

ock

Dep

r.Br

ick/s

tone

SC

MI

Full

Oth

erVa

lue

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Sum

mar

y of

Oth

er B

uild

ings

Shin

gle

- asp

halt/

asbe

stos

/woo

dTy

peN

o.C

onst

ruct

ion

Size

Rat

eG

rade

Age

CD

UFa

ctor

Rep

l. co

st n

ewR

ELFu

ll Va

lue

Slat

e/til

eG

arag

e (d

etac

hed)

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1M

sy.2

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port3

Com

posi

tion

Oth

erFl

oors

B1

23

Con

cret

eW

ood

Tile

Car

pet

List

ed b

y:To

tal f

ull v

alue

oth

er b

uild

ings

Dat

e:To

tal f

ull v

alue

all

build

ings

36’

20’

20’

Fra

me

gar

age

4’

12’

Co

ncr

ete

dri

ve

8’ EF

P

10’

4’

26’

1-S

ty f

ram

eb

smt

20’

Co

ncr

ete

wal

k


Exercise 6-3


PIN 04-01-406-002-0040


The lot is improved with a 65-year old, 2-story frame dwelling on a crawl —housing 8 rooms, including 4 bedrooms — detached frame garage.

Foundation 8” concrete block wall

Heating Warm air system

Plumbing Standard 5 with cheap grade fixtures and galvanizediron piping

Exterior walls Painted 1/2” lap siding over 2” x 4” studs, 16” o.c. —1 3/8” pine doors — 1 3/8” pine double-hung windows

Roof Asphalt shingles, 2” x 4” rafters, 24” o.c. with 3/8”plywood sheathing

Floors 1st and 2nd floors - 2” x 8” joist, 16” o.c. — cheapgrade tile and soft wood floors

Interior finish 3/8” plaster board — cheap pine doors and trimthroughout — cheap kitchen cabinets

Miscellaneous Poor quality electrical fixtures — lack of electricoutlets — below average workmanship — 8’ x 100’crushed stone drive

CDU Poor


Complete the PRC-2 on the opposite page.



Exercise 6-3 — PRC-2 for 04-01-406-002-0040

84

—

8

1D

65

P

oor

.D

rive

1C

rush

ed s

tone

C

6

5

Poo

r

24

Con

cret

e pa

tio

PR

C-2

(R

-1/0

0) (o

ppos

ite P

RC

-1)

12

34

56

7Va

cant

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l-O

ther

Mob

ileA

Sum

mer

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Lot

ling

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eFr

ame

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e

Bu

ildin

g R

eco

rd —

Res

iden

tial

— R

ura

l(P

rope

rty

— T

ype

1)

Occ

upan

cyIn

terio

r Fi

nish

Rem

odel

edSo

ld D

ate

Mo.

Day

Yr.

Age

Adj.

Age

B1

23

NH

Amou

nt $

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aste

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ions

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F”M

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-Sty.

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sem

ent

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sem

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ated

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ting/

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tral a

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es#

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ks #

With

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rch

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d. c

omb.

Full

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wl

Slab

Inte

gral

gara

geO

n gr

ade1

Belo

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deck

SFW

ood

deck

6Pl

umbi

ng+

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rea

with

out b

smt.

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tache

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rage

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sy.2

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port3

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ting

12

34

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ditio

nO

ther

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hes

War

m a

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ater

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age

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nit h

eate

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)Pt

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)Fi

repl

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Hal

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ent

Sink

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ater

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set

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23

4C

x D

Non

eU

nfin

ishe

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llN

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AP

%

fini

shed

Exte

rior w

alls

Rep

lace

men

t cos

t new

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d/st

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/alu

min

um/v

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sid

ing

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age

REL

Con

cret

e bl

ock

Dep

r.Br

ick/s

tone

SC

MI

Full

Oth

erVa

lue

Roof

Sum

mar

y of

Oth

er B

uild

ings

Shin

gle

- asp

halt/

asbe

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dTy

peN

o.C

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ruct

ion

Size

Rat

eG

rade

Age

CD

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ctor

Rep

l. co

st n

ewR

ELFu

ll Va

lue

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e/til

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arag

e (d

etac

hed)

Frm

1M

sy.2

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port3

Com

posi

tion

Oth

erFl

oors

B1

23

Con

cret

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ood

Tile

Car

pet

List

ed b

y:To

tal f

ull v

alue

oth

er b

uild

ings

Dat

e:To

tal f

ull v

alue

all

build

ings

10’

12’

2-S

ty f

ram

ecr

awl

36’

100’

Cru

shed

sto

ne

dri

ve 8’

18’

10’

Co

ncr

ete

Pat

io

OF

P4’

36’

6’

Fra

me

gar

age

OF

P

65 y

rs.

Poo

rD


Exercise 6-4


PIN 03-33-333-009-0040


The lot is improved with a 56-year old 1 1/2-story frame dwelling —attached garage — housing 6 rooms, including 3 bedrooms.

Foundation 8” concrete block walls with concrete footing

Heating Gas fired forced air — central air conditioning

Plumbing Standard 5, plus an additional full bath and a half bath— average grade fixtures and galvanized piping

Exterior walls 2” x 4” stud frame, 16” o.c. — with 5/8” hard boardsiding,painted — 1 3/4” doors — 1 3/8” double-hungwindows

Roof Gambrel with 2” x 6” rafters, 24” o.c. — 1/2” plywoodsheathing and asphalt shingles

Floors Basement - 4” concrete, 800 SF tile, 1st and 2ndfloors - 2” x 8” joist, 16” o.c.- sanded maple andsome asbestos tile

Interior finish Lath and plaster — pine doors and trim throughout —average grade kitchen cabinets

Miscellaneous Average quality electrical fixtures — average qualityworkmanship — 10’ x 30’ asphalt drive, 4’ x 20’concrete walk, and a 800 SF, finished basement,used as recreation, grade C

CDU Good


Complete the PRC-2 on the opposite page.



Exercise 6-4 — PRC-2 for 03-33-333-009-0040

PR

C-2

(R

-1/0

0) (o

ppos

ite P

RC

-1)

12

34

56

7Va

cant

Dwe

l-O

ther

Mob

ileA

Sum

mer

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ling

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eFr

ame

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e

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ildin

g R

eco

rd —

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iden

tial

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ura

l(P

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— T

ype

1)

Occ

upan

cyIn

terio

r Fi

nish

Rem

odel

edSo

ld D

ate

Mo.

Day

Yr.

Age

Adj.

Age

B1

23

NH

Amou

nt $

CD

UPl

aste

r/dry

wal

lM

emo

Gra

deLi

ving

Acc

omm

odat

ions

Fibe

rboa

rdDw

ellin

g Co

mpu

tatio

nsTo

tal r

oom

sBe

droo

ms

Fam

ily ro

omPa

nelin

gSt

y.C

onst

r.SF

Feat

ures

SFQ

ualit

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peSt

y.C

onst

r.SF

Foun

datio

nPt

. Msy

. Trim

Brk.

1St

one2

Art.3

Porc

hes

S

F”M

sy. W

all

Pie

rFi

nish

edLi

ving

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do. C

omm

.Po

rch

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FP1

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5Ba

sem

ent

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emen

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sem

ent

Rec

reat

ion

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ated

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rch

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ting/

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tral a

ir1

34

Fire

plac

es#

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ks #

With

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rch

SFO

FP1

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OM

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Sty.5

Sche

d. c

omb.

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wl

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gral

gara

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n gr

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w2

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deck

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umbi

ng+

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rea

with

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smt.

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d ga

rage

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port3

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ting

12

34

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lAi

r con

ditio

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ther

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hes

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m a

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ater

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amAt

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age

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r fur

nace

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er fe

atur

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)Pt

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lsBa

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om (3

)Fi

repl

ace

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f bat

h (2

)Fi

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ent

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ater

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set

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l1

23

4C

x D

Non

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ishe

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rtFu

llN

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AP

%

fini

shed

Exte

rior w

alls

Rep

lace

men

t cos

t new

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d/st

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/alu

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um/v

inyl

sid

ing

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age

REL

Con

cret

e bl

ock

Dep

r.Br

ick/s

tone

SC

MI

Full

Oth

erVa

lue

Roof

Sum

mar

y of

Oth

er B

uild

ings

Shin

gle

- asp

halt/

asbe

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/woo

dTy

peN

o.C

onst

ruct

ion

Size

Rat

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rade

Age

CD

UFa

ctor

Rep

l. co

st n

ewR

ELFu

ll Va

lue

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e/til

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arag

e (d

etac

hed)

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sy.2

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port3

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posi

tion

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erFl

oors

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cret

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ed b

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ings

45’

30’

1 1/

2-S

ty f

ram

eb

smt

6’E

FP 20

’ 4’

20’

10’

15’

15’ F

ram

eg

arag

e

30’

Asp

hal

td

rive


You will encounter one PRC on your exam that does nothave any narrative. One of the purposes is to figure outthe description of the property by the boxes that havebeen checked. An example of a PRC-2, in the sameformat, is on the opposite page.



Example of a PRC-2

73

1

8

40

0

1B

1

400

5 yr

s.A

vg.

B

Driv

e1

Con

cret

eB

5

Avg

.1.

06

1.06

200

Woo

d de

ck

PR

C-2

(R

-1/0

0) (o

ppos

ite P

RC

-1)

12

34

56

7Va

cant

Dwe

l-O

ther

Mob

ileA

Sum

mer

Apt.

Lot

ling

Hom

eFr

ame

Hom

e

Bu

ildin

g R

eco

rd —

Res

iden

tial

— R

ura

l(P

rope

rty

— T

ype

1)

Occ

upan

cyIn

terio

r Fi

nish

Rem

odel

edSo

ld D

ate

Mo.

Day

Yr.

Age

Adj.

Age

B1

23

NH

Amou

nt $

CD

UPl

aste

r/dry

wal

lM

emo

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deLi

ving

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ions

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rboa

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g Co

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ures

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hes

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SummaryThe purpose of mass appraisal is to produce equitableand efficient appraisals of all property in a jurisdictionfor ad valorem tax purposes.

Mass appraisal systems provide quickly obtained valueestimates with reasonable substantiation in the records.A mass appraisal system should incorporate all threeapproaches to value, but most systems are primarilybased on the cost approach.

The IRPAM is designed for mass appraisal.

A cost factor is designed to adjust the IRPAM replace-ment cost new (RCN) value to reflect the local cost oflabor and materials.

The quality grade represents quality of construction,workmanship, and material used in a project. The qual-ity of workmanship and materials can greatly affectcost.

To determine a design factor, the board has to deter-mine the percentage increase, or decrease, in cost due tothe design features. The design factor is handled in thesame manner as a quality grade factor; it is assigned toindividual properties and should remain unchangedduring the life of the structure.

The remaining economic life (REL) factor is applied tothe true RCN to arrive at the full market value, whichthen reflects the adjustment made for depreciation.




1 What type of quality does the quality grade factor “D”represent and what is the factor applied from the schedules?

_______________________________________________

2 A local assessor notices that an improvement has been greatlyneglected and its physical condition is extremely poor. He orshe notes that this particular improvement was originallybuilt with excellent materials and workmanship. Which one ofthe following will the assessor adjust?

____ Cost

____ Quality grade

____ CDU rating used to determine the REL factor

3 Quality grade refers to the

_______________________________________________

4 T or F You need to make an adjustment if an improvementhas 5 plumbing fixtures.

5 T or F A frame house of 1000 square feet on a slab willnot have an adjustment for a basement.

6 T or F All detached garages are calculated using theSummary of Other Buildings section on the PRC.

7 T or F PRC-2 is used for calculating land values.

8 T or F The quality grade is used to determine a REL factor.

9 T or F To compute the value for an enclosed frame porch of60 square feet and an enclosed frame porch of 40square feet, you should add the square footage of theporches together and price out a porch of 100 squarefeet from the cost tables.




7-1 Unit 7: Land Valuation

Unit 7

Land Valuation

This unit covers land valuation using the front footmethod, the square foot method, and the site method.

The purpose of this unit is to provide a basic under-standing of calculating land values using the front footmethod, the square foot method, the site method, andlot depth tables.


• explain the basic methods for valuing land,• define the front foot method of valuing land,• explain the use of a standard depth table,• use a standard depth table to arrive at a value,• define the square foot method of valuing land, and• define the site method of valuing land.

Front foot valueSquare foot valueSite valueDepth factor“4-3-2-1 Theory”“65-35 Rule”Unit value

Learningobjectives

Terms andconcepts



Lots andblocks

Landdescriptions

Land valuationThe assessor is responsible for placing a value on bothland and improvements for each parcel of propertylocated in the jurisdiction.

Legal descriptions fall into three categories — lots andblock, land descriptions (which can be described eitherfractionally, by acreage, or lineally), and metes andbounds. When reading legal descriptions to locate prop-erty, read all legal descriptions backwards, except thosewritten in metes and bounds.

Lots 1 and 4, in block 30, in the village of Good Hope,McDonough County, Illinois.Lot 4 in block 28 in the city of Bushnell, according toplat #2 of said city, county of McDonough, state ofIllinois.Lot 6, block 10, Blevins 4th Addition to the city ofMacomb, in the county of McDonough, Illinois.

A true section of land contains 640 acres. Sections areoften quartered, with the upper right quadrant, or ¼,being referred to as the northeast quarter; the upper leftquadrant, or ¼, being referred to as the northwest quar-ter; the lower left quadrant, or ¼, as the southwestquarter; and the lower right quadrant, or ¼, as thesoutheast quarter. These quarter sections each contain160 acres.

Fractional: E ½, NE ¼, section 6, T.3N, R.4W,3rd principal meridian (PM).NW ¼, SW ¼, NE ¼, section 6, T.3N, R.4W,3rd principal meridian.W ½, NE ¼, SW ¼, section 6, T.3N, R.4W,3rd principal meridian

Acreage: W 80 acres, NE ¼, section 6, T.3N, R.4W of3 P.M.

Lineal: The E 400’ of SE ¼, sec. 7, T.2S, R.1E of 3 P.M.

215PTAX-1-BR — Board of Review — Basic Course7-3 Unit 7: Land Valuation

Beginning at the SE corner of the NW quarter of section4, T.7N, R.8E of the 3 P.M. Then north 50’ to the point ofbeginning. Then west 550’. Then north 400’. Then east550’. Then south 400’ to the point of beginning.

A number of principles are involved in land valuation.Land is valued as vacant and at its highest and best use,meaning the use that will bring the greatest net returnto the property over a reasonable period of time.

Highest and best use must beLegal — Use complies with zoning laws, not unlawful, etc.

Probable or physically possible — Use is reasonable,not speculative.

Economically feasible — Use is in demand, profitable.

Land and site have different meanings. Land is consid-ered to be raw land without amenities, such as streetsand utilities. Site is defined as a parcel that has beenmade ready for its intended purpose.

When valuing residential land, the assessor must firstdetermine the most appropriate unit of value to be usedin a particular area. The three most common units ofvalue are

1 Front foot value — the amount of frontage is themost significant factor in determining value.

2 Square foot value — the size is the most significantfactor in determining value and is also used to valueirregular shaped lots.

3 Site value — the location is the most significantfactor in determining value.

In some situations, especially when rural residentialland is being valued, the per acre amount could be themost appropriate unit of value.

The assessor must analyze the market to support theunit of value to be used. Unit value is determined bydividing the selling price of vacant land by the number

Metes andbounds


of units, arriving at a $ per unit value. For example, theselling price for a lot is $24,000. The lot is 80’ x 150’. 80’is the dimension of the frontage, the lot contains 12,000square feet.

$24,000 = $300/FF $24,000 = $2/SF $24,000 = site value 80’ 12,000

To decide the most appropriate unit of value to be used,the assessor must determine which unit of value is themost consistent, or which reflects the least percent ofdeviation. The unit of value with the least percentage ofdeviation becomes the most appropriate unit of value,the median becomes the base unit of value to be used inthe mass appraisal process.

Adjustments to the basic unit value must be supportedby the market. Adjustments may be required for

• time,• specific physical characteristics, e.g., trees,

landscaping, topography, and• location, whether a corner or interior lot.

A front foot (FF) is a strip of land one foot wide, run-ning from the front of the lot to the rear. When using thefront foot method, all front feet that front a street, lake,etc., and run the entire depth of the lot have the samevalue.

When using the front foot unit method to value residen-tial property, some adjustments to the standard frontfoot value may be necessary, since not all lots have thesame dimensions. The front foot value takes the widthinto consideration. A depth factor adjusts the front footvalue, taking into account the differences in depth be-tween the subject lot and the standard lot of the neigh-borhood.

Depth tables are based on the assumption that the frontportion of the lot is more valuable, on a unit basis, thanthe rear portion. Most depth tables are based on the“4-3-2-1 Theory,” which states

• the first 25 percent of depth of a lot represents 40percent of the total lot value,



• the second 25 percent of depth represents 30 percentof the lot value,

• the third 25 percent of depth represents 20 percentof value, and

• the fourth 25 percent represents the final 10 percentof the lot value.

The Illinois Real Property Appraisal Manual (IRPAM)has four depth factor tables. One table lists the factors touse when the depth of the standard lot in the neighbor-hood is 100 feet and the subject lot varies from thisstandard depth. A second table contains factors to usewhen the standard lot has a depth of 120 feet, a thirdtable contains factors to use when the standard lotdepth is 132 feet, and the fourth table contains factors touse when the standard lot depth is 150 feet. These tableswere designed primarily for use in valuing residentiallots and should not be used in neighborhoods or areaswhere the front foot unit of comparison is not demon-strated in the market. Depth tables for lots of 100 feetand 120 feet of standard depth are located at the end ofthis unit.

Irregular lot adjustments are also made when the frontfoot value is the unit of comparison. These adjustmentsare based on the assumption that the utility of the lotmay be affected by its shape. The most common rule forshape adjustment is known as the “65-35 Rule.” It isbased on the premise that a right-angle triangularshaped lot, with its base on the street, has 65 percent ofthe value of a rectangular lot of the same frontage anddepth. It also assumes that a right-angle triangularshaped lot with its apex, or point, on a street, has 35percent of the value of a rectangular lot that has thesame dimensions.

Other types of irregular shaped lots may have to bemeasured and valued as though they are separate lots,with each value being combined into a final lot value.The most common methods would incorporate the useof average depths, and the use of rectangles and tri-angles.



As previously stated, when size is the dominant factorin determining value, the square foot unit of value isused. The value of the lot is found by multiplying thenumber of square feet by the $/SF value. For example, alot is 80’ x 100’ and the unit value is $.90/SF. The lot hasa value of $7,200. (80’ x 100’ = 8,000 SF x $.90.)

Irregular shaped lots will be valued similarly to thesteps above, except depth is not a factor in determininga final value. One must keep in mind that if a triangularshaped lot is being valued, the number of square feetcontained in the lot is determined by:

base x height2



Exercise 7-165/35 Rule for right-angle triangular shaped lots

The “65-35 Rule” is based on the premise that a right-angle triangu-lar shaped lot, with its base on the street, has 65 percent of the valueof a rectangular lot of the same frontage and depth. It also assumesthat a right-angle triangular shaped lot with its apex, or point, on astreet, has 35 percent of the value of a rectangular lot of the samedimensions.

Use the worksheet on Page 7-10 for this exercise.

The lots in Exercise 7-1 have a standard depth of 100 feet. Use thefront foot method to value these lots, using the following formula:

Lot value = number of FF X ($ per FF) X factors (65/35, depth factors)

Compute the value for lot C first because it is a rectangular lot witha depth equal to our standard depth of 100'. Therefore, you will nothave a depth factor adjustment. To compute the lot value, multiplythe 150' of frontage by the $100 per front foot value. No depth orshape factors are required.

Lot C 150' X $100/FF = $15,000

Lot A is a right-angle triangular shaped lot with its base on thestreet, and will carry 65 percent of the value of lot C, a full lot.Again, the depth of lot A is equal to our standard depth. To computethe value of lot A, chain multiply the 150' of frontage by the $100 perfront foot value by the shape adjustment factor of 65% (.65).

Lot A 150' X $100/FF X 65% (.65) = $9,750

Lot B is a right-angle triangular shaped lot with its apex, or point onthe street, and will carry 35 percent of the value of lot C, a full lot.Again, the depth of lot B is equal to our standard depth. To computethe value of lot B, chain multiply the 150' of frontage by the $100 perfront foot value by the shape adjustment factor of 35% (.35).

Lot B 150' X $100/FF X 35% (.35) = $5,250

Check the accuracy of your computations by adding the values for lotsA and B. This value should equal the value of a full lot, such as lot C.



Exercise 7-24-3-2-1 Theory

The “4-3-2-1 Theory” assumes that the front of a lot is more valuablethan the rear portion. This theory states that• the first 25 percent of depth of a lot represents 40 percent of the

total lot value,• the second 25 percent of depth represents 30 percent of the lot

value,• the third 25 percent of depth represents 20 percent of value, and• the fourth 25 percent represents the final 10 percent of the lot

value.

This exercise is broken down into four separate drawings on theworksheet on Page 7-10. All four lots are a visual representation ofthe lots depicted for Exercise 7-2. All drawings have 100' of standarddepth and 100' of frontage.

Drawing A

This lot has the standard depth of 100' and 100' feet of frontage. Tocompute the value for this lot, multiply the 100' of frontage by the$100 per front foot value.

100' X $100/FF = $10,000

Drawing B

This lot has a depth of 75', and its value is based on the standarddepth of 100'. Using the “4-3-2-1 Theory,” the first 25 percent of thelot will carry 40 percent of the full lot value; the second 25 percent ofthe lot will carry 30 percent of the full lot value; and the third 25percent of the lot will carry 20 percent of the full lot value. Therefore,the total percentage of value for this lot would be calculated asshown below.

40% (.40) + 30% (.30) + 20% (.20) = 90% (.90) of value within this 75' lot

To compute the value for this lot, multiply the 100' of frontage by the$100 per front foot value, by 90% (.90), the value within this 75' lot.

100' X $100/FF X 90% (.90) = $9,000



Drawing C

This lot has a depth of 50', and its value is based on the standarddepth of 100'.

Using the “4-3-2-1 Theory,” the first 25 percent of the lot will carry40 percent of the full lot value and the second 25 percent of the lotwill carry 30 percent of the full lot value. Therefore, the total per-centage of value for this lot would be calculated as shown below.

40% (.40) + 30% (.30) = 70% (.70) of value within this 50' lot


100' X $100/FF X 70% (.70) = $7,000

Drawing D

This lot has a depth of 25' and its value is based on the standarddepth of 100'.

Using the “4-3-2-1 Theory,” the first 25 percent of the lot will carry40 percent of the full lot value.


100' X $100/FF X 40% (.40) = $4,000



Exercises 7-1 and 7-2 worksheet65/35 Rule

35%

A100’

65%

10%

20%

30%

40%

10%

20%

30%

40%

90%

70%

100%

25’

25’

25’

25’

Exercise 7-2

Using the 4-3-2-1 theory,determine the value of theparcel segments.

100’ 100’ 100’ 100’

10%

20%

30%

40%

100%

C

150’150’

10%

20%

30%

40%

B 100’

25’

25’

25’

25’

10%

20%

30%

40% 40%

$100/FF

A _________B _________C _________

4-3-2-1Theory

4-3-2-1 Theory

A = 100’ B = 75’ C = 50’ D = 25’

Depth $100/FFLot A 100’ _________Lot B 75’ _________Lot C 50’ _________Lot D 25’ _________

Exercise 7-1

Compute the values for the three parcelsabove, with a standard depth of 100’, if thefront foot value is $100/FF.

Jefferson Street ($/FF)




Exercise 7-3Residential lots

The purpose of this exercise is to familiarize you with the valuationof lots with various depths and shapes. The lot depth table for 100’ islocated at the end of this chapter. Depth tables should only be usedwhen the front foot unit of comparison exists in the market.

The lots in this exercise are numbered for identification purposesonly. For this exercise, the front foot unit of comparison derivedfrom the market is $100 per front foot. The depth of 100 feet is deter-mined to be the standard depth for this neighborhood. The squarefoot value derived from the market is $1/SF.

Value the lots using the formulas below.

Front foot formulaLot value = number of FF X $ per FF X factors for shape and depth

Square foot formulaLot value = number of SF X $ per SF

Use the worksheet on Page 7-14 as an example to work the similarexercise on Page 7-15.

1 Lot 004The depth of lot 004 is 100'. This is equal to the standard depth of100' for this neighborhood, so you will not have a depth factor forthis lot. To compute the lot value, multiply the 100' of frontage bythe $100 per front foot value.

Value of lot 004 100' X $100/FF = $10,000

To compute the lot value using the square foot value as the unitvalue, multiply the frontage 100 ‘ by the depth of 100’ by the squarefoot value ($1/SF).

100’ x 100’ x $1/SF = $10,000


2 Lot 005The depth of lot 005 is 70'. Since the standard depth is 100', this lotwill require a depth factor adjustment from the lot depth table onPage 7-18. The left column indicates the depths of various lots, andthe right column indicates the adjustment as a percent.

Look down this table until you find 70' in the left column. The ad-justment column directly to the right indicates a depth factor adjust-ment of 86 percent. To compute the lot value, chain multiply the 75'of frontage by the $100 per front foot value, by the depth factoradjustment of 86% (.86).

Value of lot 005 75' X $100/FF X 86% (.86) = $6,450

To compute the $/SF value, simply multiply the frontage of 75’ bythe depth of 70’. A depth factor is not applied when using $/SFvalues.

75’ x 70’ x $1/SF = $5,250

3 Lot 006The depth of lot 006 is 100', so no depth factor adjustment is re-quired. The lot is a right-angle triangular shaped lot with its apex, orpoint, on the street and will carry 35 percent of the value of a rectan-gular lot having the same dimensions. To compute the lot value,chain multiply the 75' of frontage by the $100 per front foot value, bythe shape adjustment factor of 35% (.35).

Value of lot 006 75' X $100/FF X 35% (.35) = $2625

The first step is to determine the square footage of the triangularshaped lot. Multiply the base by the height and divide by 2. Thesquare footage is then multiplied by the $/SF value.

75’ x 100’ = 3,750 SF x $1/SF = $3,750 2



4 Lot 007The depth of lot 007 is 100', so no depth factor adjustment is re-quired. The lot is a right-angle triangular shaped lot with its base onthe street, and will carry 65 percent of the value of a rectangular lothaving the same frontage and depth. To compute the lot value, chainmultiply the 75' of frontage by the $100 per front foot value, by theshape adjustment factor of 65% (.65).

Value of lot 007 75' X $100/FF X 65% (.65) = $4875

Follow the same process for lot 007 as you did for lot 006.

75’ x 100’ = 3,750 SF x $1/SF = $3,750 2

5 Lot 008The depth of lot 008 is 120'. Since the standard depth is 100', this lotrequires a depth factor adjustment. The lot depth table indicates anadjustment factor of 106 percent for 120'. To compute the lot value,chain multiply the 75' of frontage by the $100 per front foot value, bythe depth factor adjustment of 106% (1.06).

Value of lot 008 75' X $100/FF X 106% (1.06) = $7950

75’ x 120’ x $1/SF = $9,000

6 Lot 009The sides of lot 009 are unequal in length. First you must obtain anaverage depth for this lot to determine if a depth factor is applicable.The left side has a depth of 120', and the right side has a depth of 80'.Add both sides together to obtain a total of 200' (left side of 120' +right side of 80'= 200'). Divide by 2 for an average depth of 100'(200' ÷ 2 = 100'). This is your standard depth, so you will not have adepth factor adjustment. To compute the lot value, multiply the 75'of frontage by the $100 per front foot value.

Value of lot 009 75' X $100/FF = $7500

When using $/SF as the unit value, this lot will be divided into atriangular-shaped portion (40’ x 75’) containing 1,500 SF, and arectangular-shaped portion (75’ x 80’) containing 6,000 SF. Addingthe 1,500 SF and the 6,000 SF gives a total of 7,500 SF for the entirelot.

This lot contains 7,500 SF x $1/SF = $7,500.


226 PTAX-1-BR — Board of Review — Basic Course7-14 Unit 7: Land Valuation

Exercise 7-3 worksheetResidential lots

Lot 004

Lot 005

Lot 006

Lot 008

Lot 009

Lot 029Lot 028Lot 027Lot 026Lot 025

Lot 024

100’ 75’ 75’ 75’ 75’

100’ 75’ 75’ 75’ 75’

100’ 70’ 100’ 120’ 80’100’Lot 007

$100 FF $ 1/SF100’ Depth

Cherry Blossom Lane

100’ 100’ 100’ 100’ 130’ 100’Front foot

Lot 004 100’ x $100/FF = $10,000

Lot 005 75’ x $100/FF x 86% (.86) (depth factor) = $6,450

Lot 006 75’ x $100/FF x 35% (.35) (shape adjustment factor) = $2,625

Lot 007 75’ x $100/FF x 65% (.65) (shape adjustment factor) = $4,875

Lot 008 75’ x $100/FF x 106% (1.06) (depth factor) = $7,950

Lot 009 75’ x $100/FF = $7,500 (average depth is 100’)

Square foot

Lot 004 100’ x 100’ x $1/SF = $10,000

Lot 005 75’ x 70’ x $1/SF = $5,250

Lot 006 75’ x 100’ ÷ 2 = 3,750 SF x $1/SF = $3,750

Lot 007 75’ x 100’ ÷ 2 = 3,750 SF x $1/SF = $3,750

Lot 008 75’ x 120’ x $1/SF = $9,000

Lot 009* 75’ x 80’ x $1/SF = $6,000

40’ x 75’ ÷ 2 = 1,500 SF x $1/SF = $1,500

$ 6,000 + $ 1,500 = $ 7,500



Exercise 7-4Calculating FF values and SF values

Calculate the FF values and the SF values for lots 024 through 029.

The depth for a standard lot is 120’The FF value is $140/FFThe SF value is $.80/SF

Lot 024 FF value = ___________ Lot 027 FF value = ___________SF value = ___________ SF value = ___________



Lot 029Lot 028

Lot 027

Lot 026Lot 025Lot 024

75’ 80’ 80’ 60’ 100’

130’ 120’ 120’ 75’

100’

80’


Exercise 7-5Site unit of value

You are appraising a subdivision that began to be developed 10years ago. Now it is nearing the end of its development life cycle.Approximately 70 percent of the sites are interior sites, lots withtrees, and sites with level terrain. The remaining 30 percent consistsof corner sites, sites with no trees, and sites with rolling terrain. Itappears that the market responds to differences in location andphysical features.

The seven sales below have been verified as arm’s length transac-tions. Using the market data, determine the contributory value fortime, location, and physical features.

Site Sales price Sale date Size Location Physical features

1 $ 9,000 Current 75 x 200 Interior Level - trees

2 $ 8,500 Current 75 x 200 Corner Level - trees

3 $ 10,000 Current 75 x 200 Interior Rolling - trees

4 $ 9,000 1 year ago 75 x 200 Interior Rolling - trees

5 $ 8,000 Current 75 x 200 Interior Level - no trees

6 $ 6,500 1 year ago 75 x 200 Corner Level - no trees

7 $ 7,500 Current 75 x 200 Corner Level - no trees

1 Based on the above sales, a site that sold today is worth$____________ more than a site that sold a year ago.

2 A site that is on rolling terrain is worth $____________ morethan a site on level terrain.

3 A site that has trees is worth $____________ more than a sitewithout trees.

4 An interior site is worth $____________ more than a corner site.

Time adjustment instructions:A time adjustment identifies sales with identical features, except thesale date. Sale 3 is identical to sale 4, except sale 3 is a current saleand sale 4 sold 1 year ago. The time adjustment indicated is +$1,000 each year. Look for additional sales for number 1 below.



Alternate methods of developing land values

In areas where an inactive market for vacant land exists,alternate methods of valuation may have to be used.These methods are useful in certain restricted circum-stances and should be used with caution, as they arepoor substitutes for actual market information.

1 Allocation — based on the proportion between thevalue of the land and the value of theimprovements.

2 Abstraction — an allocation method wherebycomparable land values are abstracted (separated)from the sales price.

3 Anticipated use — (development method) site ishypothetically developed to arrive at a value for theland in its present undeveloped state.



SummaryThe assessor is responsible for determining the value ofboth the land and the improvement for all propertieslocated in his or her jurisdiction. Land is valued asvacant and at its highest and best use.

Several principles may be used to value land. The threemost common units of value are front foot value;square foot value; and site value.

A front foot is a strip of land 1 foot wide running fromthe front to the rear of the lot. Adjustments may benecessary when using the front foot (FF) method tovalue residential property, the adjustments describedbelow may be necessary.

Depth tables are based on the assumption that the frontportion of the lot is more valuable, on a unit basis, thanthe rear portion. The basis used for deriving depthtables is the “4-3-2-1 Theory.”

An irregular lot adjustment is also made when the frontfoot value is the unit of comparison. These adjustmentsare based on the assumption that the utility of the lotmay be affected by its shape.

The most common rule for shape adjustment is knownas the “65-35 Rule.” It is based on the premise that aright-angle triangular shaped lot with its base on thestreet has 65 percent of the value of a rectangular lothaving the same frontage and depth. It also assumesthat a right-angle triangular shaped lot with its apex, orpoint on a street has 35 percent of the value of a rectan-gular lot having the same dimensions.

The area of a triangle is found by multiplying the baseby the height and dividing by 2.



Unit 7Review questionsMatch these terms with the correct definition.

___ “65-35 Rule” A as vacant and at its highest and best use.

___ “4-3-2-1 Theory” B based on the premise that the value of aright-angle triangular shaped lot isaffected by its shape.

___ Front foot C the first 25 percent of depth of a lotrepresents 40 percent of the total lotvalue; the second 25 percent of depthrepresents 30 percent of the lot value;the third 25 percent of depth represents20 percent of value; and the fourth 25percent represents the final 10 percentof the lot value.

___ Depth table D a strip of land 1 foot wide runningfrom the front to the rear of the lot.

___ How land is E based on the assumption that the frontvalued portion of the lot is more valuable on a

unit basis than the rear portion.

___ b x h F unit value 2

___ SP G area of a triangular-shaped lot. #units




Notes



Lot Depth Table

100 Feet Standard Depth

Percentages of front foot value for lots 1 to 400 feet deep

234 PTAX-1-BR — Board of Review — Basic Course7-22 Unit 7: Land Valuation

Lot Depth Table

120 Feet Standard Depth

Percentages of front foot value for lots 1 to 400 feet deep

93

114


Unit 8

Farmland ValuationThis unit covers farmland valuation.

The purpose of this unit is to provide a basic under-standing of the procedures involved in calculatingvalues for various soil types, as well as establishing avalue for the farm homesite and residence.


• explain who is responsible for certifying farmlandvalues,

• understand the method of valuing farmland, and• explain the use of an aerial base tax map

Use valueFarm homesiteCroplandPasture landOther farm landProductivity index (PI)Agricultural economic value (AEV)Individual soil weighted method

Assessment of the farmUntil the late 1970’s, farmland in Illinois was assessedfor property tax purposes in the same manner that mostproperty still is — on the basis of its fair market value.In 1977, the basis for farmland assessments began tomove away from fair market value and toward agricul-tural use value. In September 1981, with the passage of

8-1 Unit 8: Farmland Valuation

Learningobjectives

Terms andconcepts


legislation known as the “Farmland Assessment Law,”the transition from fair market value to total use valuewas completed.

Agricultural use value is based upon land use underaverage level management, productivity of the soils,and the present worth of the future net income accruingto the land from farm production. Use value assess-ments, unlike market value assessments, recognize adifference between value in use and value in exchange.Because use value assessments are generally lower thanmarket value assessments, they provide property taxrelief to owners of farmland.

Definition of a farmTo be eligible for a farm assessment, tracts of land mustmeet the statutory requirements of Section 1-60 of theProperty Tax Code, below.

Sec. 1-60. Farm.When used in connection with valuing land and build-ings for an agricultural use, any property used solelyfor the growing and harvesting of crops; for the feeding,breeding and management of livestock; for dairying orfor any other agricultural or horticultural use or combi-nation thereof; including, but not limited to, hay, grain,fruit, truck or vegetable crops, floriculture, mushroomgrowing, plant or tree nurseries, orchards, forestry, sodfarming and greenhouses; the keeping, raising andfeeding of livestock or poultry, including dairying,poultry, swine, sheep, beef cattle, ponies or horses, furfarming, bees, fish and wildlife farming. The dwellingsand parcels of property on which farm dwellings areimmediately situated shall be assessed as a part of thefarm. Improvements, other than farm dwellings, shallbe assessed as a part of the farm and in addition to thefarm dwellings when such buildings contribute inwhole or in part to the operation of the farm. For pur-poses of this Code, “farm” does not include propertywhich is primarily used for residential purposes eventhough some farm products may be grown or farmanimals bred or fed on the property incidental to itsprimary use. The ongoing removal of oil, gas, coal or



any other mineral from property used for farming shallnot cause that property to not be considered as usedsolely for farming. (Source: P.A. 86-1481; 87-877;88-455.)”

Section 10-110 of the code also adds as an eligibilityrequirement that the land be used as a farm for thepreceding two years.

In setting the assessment on a farm parcel, local assess-ing officials must consider four separate parts of thefarm: farm homesite, farm residence, farm buildings,and farmland. These four parts and the assessmentmethod for each are described below.

1 — Farm homesite is defined as the land on a farmparcel used for residential purposes. The farm homesiteis assessed at 33 1/3 percent of its market value as resi-dential land, like all other residential land in the county.The market value is whatever comparable rural residen-tial land is selling for in the area. This part of the farm issubject to board of review and state equalization factors.

2 — Farm residence is assessed at 33 1/3 percent of itsmarket value as residential property, like all other resi-dential improvements in the county. Like the farmhomesite, the residence is subject to board of reviewand state equalization factors.

3 — Farm buildings are assessed at 33 1/3 percent oftheir contributory value to the productivity of the farm.Contributory value considers the current use of theimprovements and what that use adds to the overallproductivity of the farming operation. Contributoryvalue is the same concept as value in use. This part of afarm parcel assessment is subject to board of reviewfactoring, but not state equalization factors.

4 — Farmland is assessed according to• The type of soils present and those soils’ potential

to produce crops.• Factors that detract from productivity, such as

slope and erosion and flooding.• Land use; the statutes identify four categories of

farmland and a method of assessing each one.


The four partsof a farm


The four categories of farmland are cropland, perma-nent pasture, other farmland, and wasteland. Cropland,permanent pasture, and other farmland are assessedbased on soil productivity. Wasteland is assessed basedon its contributory value. The definition and method forassessing each of these categories follows.

1 — Cropland is• all land from which crops were harvested or hay

was cut;• all land in orchards, citrus groves, vineyards, and

nursery and greenhouse crops;• land in rotational pasture and grazing land that

could have been used for crops without additionalimprovements;

• land used for cover crops, legumes, and soilimprovement grasses, but not harvested and notpastured;

• land on which crops failed;• land in cultivated summer fallow; and• idle cropland.

Cropland is the highest assessed farmland category.Cropland is assessed at the full amount of the EAVcorresponding to the productivity indexes of croplandsoils.

2 — Permanent pasture includes any pasture landexcept

• pasture land qualifying under the croplanddefinition, which includes rotational pasture andgrazing land that could have been used for cropswithout additional improvements, and

• woodland pasture.

Permanent pasture is generally assessed at one-third ofthe amount of the cropland EAVs corresponding to theproductivity indexes (PIs) of the permanent pasturesoils.

The fourcategories offarmland


239PTAX-1-BR — Board of Review — Basic Course8-5 Unit 8: Farmland Valuation

Departmentcertified values

3 — Other farmland includes• woodland pasture;• woodland including wood lots, timber tracts

cutover, and deforested land; and• farm building lots other than homesites.

Other farmland is generally assessed at one-sixth of theamount of the cropland EAV corresponding to the PIs ofthe other farmland soils.

4 — Wasteland is the portion of a qualified farm tractthat is not put into cropland, permanent pasture, orother farmland as the result of soil limitations and notas the result of management choices.

In many instances, wasteland enhances the productivityof other parts of the farm parcel. For instance, someland may be more productive because wasteland pro-vides a path for water to run off or a place for water tocollect. There are instances, possibly a bluff, whenwasteland contributes nothing to the productivity of thefarm. Wasteland that contributes to the productivity ofthe farm is assessed at one-sixth of the EAV per acre ofcropland of the lowest PI certified by the department.Wasteland that does not contribute to the productivityof the farm should be given a zero assessment.

To achieve equitable farmland assessments statewide,the department issues guidelines and annual farmlandassessment data for the valuation of farmland. Guide-lines on the assessment of farmland are issued throughthe IRPAM and department memorandums. The assess-ment data that is used to value farmland is provided onthe chart of certified values. This chart contains 5-yearaverages of gross income, production costs, net income,agricultural economic value (AEV), and equalizedassessed value (EAV) for productivity indices (PIs) 82through 130. The net income is the difference betweenthe gross income and the production costs. The netincome for each PI is capitalized (divided) by the 5-yearfederal land bank mortgage interest rate, the quotient ofwhich is the AEV. The EAV, for which cropland is as-sessed, is found by multiplying the AEV by 33 1/3 per-cent. Because EAVs are equalized, farmland is not sub-ject to state equalization factors.


The steps in assessing farmlandThe department uses the individual soil weightedmethod for valuing farmland. The individual soilweighted method weights a soil’s assessed value by thenumber of acres of the soil.

The following section outlines the steps in arriving atthe EAV and works through a sample farmland assess-ment using a PRC. When working through the samplefarm assessment you should refer to the PRC-1F; Table2: Productivity Indexes for Average Level Manage-ment; Table 3: Slope - Erosion Adjustment Table; the2007 Department Certified Values; and the soil map ofthe subject farm and farm homesite. These referencematerials begin on Page 8-17.

A decision must be made as to whether the farmedportion of the parcel is eligible for a farmland assess-ment. To be eligible, the farmed portion has to havebeen in a qualified farm use for the previous two yearsand the primary use of the parcel cannot be residential.If the parcel is a farm, proceed as indicated below.

The steps in using the individual soil weighted methodObtain adequate aerial base tax maps, using soil mapsas overlays.This step can be accomplished by acquiring or develop-ing a set of aerial base tax maps as outlined in the Mapsand Index Number section of the IRPAM or the IllinoisTax Mapping Manual. Modern detailed soil maps havebeen completed for the entire state by the Natural Re-source Conservation Service. These maps provide aninventory of the soil types found in a specific area. Thevarious soil types are depicted on the soil map and arenumerically coded for identification. Detailed soil mapsshould be reproduced as overlays and at the same scaleas the aerial base tax maps to provide for ease of identi-fication of soil types by land use category. Any neces-sary corrections for map distortion should be made.

A soil map for the farm parcel is shown in Exercise 8-1on Page 8-16.

Step 1



Depict all land use categories on the aerial photo-graph.The subject parcel is found to contain qualified farmuses, as well as a residence. Based upon visual inspec-tion and aerial photo interpretation, it was determinedthat the parcel contains areas of cropland and otherfarmland. The parcel is predominantly cropped, but ahomesite and farm buildings are located in the south-east corner of the parcel.

Determine the acres of each soil type, within eachland use category, that will be assessed by PI.The soils used as cropland were measured and found tocontain 40 acres of soil #46, 4 acres of #48B, 24 acres of#50, and 2 acres of #128C2.

The soils used as other farmland were measured andfound to contain 1 acre of soil #46 and 2 acres of #50.

Enter the “soil type identification numbers,” or soil IDs,and “acreage amounts” for both cropland and otherfarmland on the PRC. These steps have been completedon the sample PRC-1F.

Determine base soil PI ratings for each soil type iden-tified in each land use category.Refer to Table 2: Productivity Indexes for AverageLevel Management, on Pages 8-18 and 8-19 to find thePI rating for each type of soil.The unadjusted PIs for the cropland soils identified onthe parcel are: soil #46 = 118; soil #48 = 111; soil #50 =119; soil #128 = 112.

The unadjusted PIs for the other farmland soils identi-fied on the parcel are: soil #46 = 118; and soil #50 = 119.

Enter base PIs under the column heading “PI” onPRC-1F. (These indexes have been completed on thePRC.)

Adjust PIs for slope and erosion, when applicable, foreach soil type identified in each land use category.

Step 4


Step 2

Step 3

Step 5


The appropriate slope and erosion debasements, adjust-ment factors, are found on Table 3: Slope — ErosionAdjustment Table on Page 8-20. The unadjusted PIs ofeach soil type should be multiplied by the appropriateslope and erosion debasement factor to obtain the ad-justed PI.

Slope is indicated on a detailed soil survey map by theletter following the soil number. In this particular soilsurvey, the slopes are

Letter Percent Percent slopecode slope used used in Table 3

No letter or A 0-2 Percent slope 1 PercentB 2-4 Percent slope 3 PercentC 4-7 Percent slope 6 Percent

Because Table 3 cannot be used with slope ranges, acentral point of the slope ranges should be used unlessa better determinant of slope is available. For the sloperanges used in the example, the central points are givenabove.

Erosion is indicated on a detailed soil survey map by anumber following the letter indicating slope. Erosion isindicated as follows:

Number code Degree of erosion

No number or 1 Uneroded2 Moderate erosion3 Severe erosion

Given the preceding information, the designation of asoil as #128C2 indicates soil #128 with 4-7 percent slopeand moderate erosion.

Using Table 3: Slope — Erosion Adjustment Table,find the percentage adjustment to the PI of a soil desig-nated as “C” slope “2” erosion, read down the “slope”column on the left side for “favorable subsoil” to 6percent and across to the “moderate erosion” column tofind the number 93, or 93 percent adjustment. Applying



this 93 percent adjustment to the PI of soil #128 given inTable 2 results in a PI adjusted for slope and erosion of104 for the #128C2 soil (112 x 93% (.93) = 104).

The productivity of the cropland soils in the exampleparcel are adjusted as follows:

• Soil #46 with an unadjusted PI of 118 contains nosignificant slope and erosion and receives noadjustment;

• soil #48B with an unadjusted PI of 111 has to beadjusted only for slope (B) with a 99 percentadjustment factor (111 x .99) equaling an adjustedPI of 110;

• soil #50 with an unadjusted PI of 119 contains nosignificant slope and erosion and receives noadjustment;

• soil #128C2 with an unadjusted PI of 112 must beadjusted for both slope (C) and erosion (2) by use ofan adjustment factor of 93 percent. 112 x .93 equalsan adjusted PI of 104.

The productivity of the other farmland soils in ourexample contain no significant slope and erosion andreceive no adjustment. The adjusted PI for soil #46 remainsat 118 and the adjusted PI for soil #50 remains at 119.

Enter “debasement factors” and “adjusted PIs” whereindicated on the PRC-1F. (These values have been en-tered on the PRC.)

Determine the certified value for each adjusted PI.Refer to the 2007 Department Certified Values, on Page8-21 and locate the cropland EAVs for each of the ad-justed PIs. Soil #46 with PI of 118 has an EAV of $143.89per acre; Soil #48B with adjusted PI of 111 has an EAV of$104.33 per acre; soil #50 with PI of 119 has an EAV of$149.91 per acre; and soil #128C2 with adjusted PI of104 has an EAV of $75.26 per acre.

Repeat the procedure for the other farmland category.Remember that other farmland is to be valued at one-sixth of the EAV of cropland. Soil #46 with PI of 118


Step 6


Step 8

(EAV $143.89 divided by 6) has an EAV of $23.98 peracre; and soil #50 with PI of 119 (EAV $149.91 dividedby 6) has an EAV of $24.99 per acre.

Enter the certified values where indicated on the samplePRC-1F on Page 8-17.

Calculate the assessment for each soil type for bothland use categories.The assessment is the EAV and equals the number ofacres of each soil type multiplied by the certified valuefor the PI of the soil.

Cropland• The EAV of soil #46 is $143.89 per acre multiplied by

40 acres = $5,756;• the EAV of soil #48B is $104.33 per acre multiplied

by 4 acres = $417;• the EAV of soil #50 is $149.91 per acre multiplied by

24 acres = $3,598; and• the EAV of soil #128C2 is $75.26 per acre multiplied

by 2 acres = $151.

Other farmland — The EAV of soil #46 is $23.98 peracre multiplied by 1 acre = $24 and the EAV of soil #50is $24.99 per acre multiplied by 2 acres = $50.

Enter the total assessment for each cropland and otherfarmland soil type where indicated on PRC-1F.

Subtotal the number of acres and the assessed valueof the soil types for cropland and other farmland.Cropland — The total of the cropland acreage is 70acres and the total cropland EAV is $9,922.

Other farmland — The total of the other farmlandacreage is 3 acres and the total other farmland EAV is$74.

Enter “acreage” and “assessed value” sub-totals forcropland and other farmland where indicated onPRC-1F.

Step 7



Determine total farm acres and total farm assessmentby adding respective sub-totals for each land use.Add cropland sub-totals of 70 acres and $9,922, plusother farmland sub-totals of 3 acres and $74 for farm-land totals of 73 acres and $9,996.

Enter “total farmland acres” and “total assessed value”for both cropland and other farmland on the “Total AllFarmland” line.

The steps in assessing the farm homesiteFarm homesites are the part of the farm parcel used forresidential purposes. This includes the lawn and landon which the residence and garage are situated. Alsoincluded should be areas in non-commercial gardensand orchards, and similar uses.

Rural residential land which is not part of a farm, isgenerally comparable in value to the farm homesite.Both are subject to the state equalization factor and bothshould be assessed at 33 1/3 percent of market value. Thesales comparison approach should be used to valuefarm homesites and rural residential land wheneverpossible. The assessment of the farm homesite de-scribed in our sample parcel is demonstrated below.

The first step will be determining the market value ofthe subject homesite. This will be accomplished byanalyzing the recent sales of comparable homesites. Theunit of value will be dollar per acre ($/acre).

This parcel contains a two-acre homesite which will beassessed using the sales comparison approach. Thefollowing sales of comparable rural residential landwere found. Determine the unit value for each sale bydividing the sale price by the number of acres.

Sale no. Sale price No. acres Sale price/acre

1 $29,500 10 $2,950 2 9,000 3 3,000 3 21,500 7 3,071 4 12,000 4 3,000

Step 9


Step 1


These sales strongly indicate a market value for ruralresidential land of $3,000/acre.

Our subject property contains 2 acres, so the marketvalue would be $6,000. (2 acres x $3,000/acre)

The second step is to determine the assessed value ofthe property. This is accomplished by applying thetownship level of assessments (33 1/3 percent) to themarket value ($6,000), the AV = $2,000. ($6,000 x 33 1/3 %)

Enter the total value and the level of assessments whereindicated on the PRC-1F.

Assessing the farm residenceFarm residences are assessed according to market valuein the same manner as urban residences. You will not gothrough the valuation of the farm residence in this unit.

Assessing the farm buildingsThe valuation of farm buildings is the final componentin the assessment of farm real estate. The law requiresfarm buildings, which contribute in whole or in part tothe operation of the farm, to be assessed as part of thefarm. Farm buildings should be valued based upontheir current use and respective contribution to theproductivity of the farm. Farm buildings are assessed at33 1/3 percent of their contributory value. The stateequalization factor is not applied to farm buildings.

Valuation of farm buildings based upon contributionrelies on theory as well as reality. Farm buildings areusually an integral part of the farm. When farms aresold in the market places, the land and improvementsare valued together. The portion of this value attribut-able to farm buildings depends upon the degree towhich they contribute to farming operations. Some farmbuildings, even though they are in good physical condi-tion, may play a minor role in the operation of the farm

Step 2



and have little value. These same buildings on anotherfarm may be vitally important to the farming operation.The contributory value of the farm buildings in thesetwo instances would be different.

The market and income approaches to value are diffi-cult to apply. The sales comparison, or market ap-proach, is inadequate because farm buildings are rarelysold in isolation. The land and buildings are consideredtogether in sale of the farm. The same problem arises inusing the income approach. It is difficult to attribute aportion of the farm income solely to the buildings.

Value then must be based on cost. This entails a thirdproblem - depreciation. Since most farm buildings areconstructed in the hopes of increasing efficiency orproductivity, the nondepreciated cost of the buildingwill approximate market value when the building isnew. The nondepreciated cost of the building may bequite different than the value as the building ages. Thisdifference between actual cost of replacement and thevalue of the building is depreciation.

Replacement cost is the cost of replacing an existingstructure with an equally desirable structure havingsimilar, if not the same, utility. Reproduction cost is thecost of constructing a replica of the building with thesame design, materials, and quality of workmanship,while replacement cost is the cost of a contemporarybuilding of equal utility.

The concept of replacement cost evolves from the ap-praisal principle that value of property is no more thanthe cost of acquiring an equally desirable substitute.This is known as the “principle of substitution.” Re-placement cost is the upper limit of building value.

Depreciation is the difference between replacement costnew and current value. Depreciation can be in the formof physical deterioration, functional inadequacy, oreconomic obsolescence.



Physical deterioration is a loss in the physical ability ofa building to withstand normal use. Deterioration re-sults from use, wear and tear, structural defects, anddecay. Physical depreciation is observable and identifiable.

Functional inadequacy is a loss in value due to charac-teristics of the building that cause a failure of the build-ing to serve the purpose for which it was intended.Inadequacy may result from poor design, surplus ca-pacity, and changes in farming techniques. Functionalinadequacy causes a loss in desirability and usefulness.

Economic obsolescence is a loss in value due to changesin the economic environment of the farm. Economicobsolescence results from external influences, such asland use changes, government regulations, and marketconditions for farm products. Economic obsolescencecauses a loss in desirability and utility.

Depreciation reflects loss in value due to all possiblefactors. Value of contribution to productivity can bedetermined by deducting all depreciation from replace-ment costs. This value will reflect such factors as im-proper design, or functional inadequacy; neglect ofrepairs, or physical deterioration; and more stringentgovernment regulations, or economic obsolescence.

Estimation of farm buildings’ contribution to the opera-tion of the farm first requires a thorough inspection ofthe buildings. The inspection should include the struc-tural components of the buildings and their functionalcapacity. The structural details to be recorded are mea-surements, foundation, framing, exterior walls, roof,interior partitions, floors, electric wiring, plumbing,heating, ventilation, built-in equipment, and any otherpermanent features.

Functional features to note include relative location,current use, capacity, design, and other possible uses.Physical deterioration is observed during the inspectionof the property as well. Economic obsolescence requiresinvestigation into such factors as government regula-tion changes, current market fluctuations, and any landuse changes of the surrounding property.



The steps in assessing a farm building

Estimate the RCN of the building, in its current use.

a Measure the square feet of the area being utilized;

b Decide the type of structure that provides the sameutility for the current use; and

c Multiply the square foot area being used by thereplacement cost from the appropriate schedulesfound in the Rural section of the IRPAM, makingsure to adjust for features which are not included inthe base costs.

This step allows for both functional and economic de-preciation. Remember that the existing type of structuremay well provide the highest utility.

Estimate the remaining physical life of the existingstructure. This step allows for physical depreciation.

Compute the REL factor.

a Select a typical life expectancy figure for the existingstructure.

b Divide the remaining physical life by the typical lifeexpectancy, giving REL.

Multiply the RCN by the REL factor to find thebuilding’s contributory value to the farm.

Determine assessed value by multiplying the contribu-tory value by 33 1/3 percent.

Step 1

Step 2

Step 3

Step 4

Step 5



Cropland Other farmlandSoil AC Soil AC

46 40 46 148B 4 50 250 24

128C 2

1 What is the EAV of the farmland? ________________

Farm homesite Parcel: 07-32-100-027-0011

Sale no. Sale price Acres $/AC

1 $29,500 10 ________2 9,000 3 ________3 21,500 7 ________4 12,000 4 ________

Given the recent sales of comparable homesites above, determine the EAV ofthe homesite. The township level of assessments is 33 1/3 percent.

2 What is the EAV of the homesite? ________________

Farmland

The soil types andacreage for each useof the farm parcelare listed below.Use the PRC-IF onPage 8-21 tocalculate the EAV ofthe farmland, usingthe individual soilweighted method.

Exercise 8-1Farm assessment



Pro

per

ty R

eco

rd —

Far

m —

Ind

ivid

ual

So

il W

eig

hti

ng

Met

ho

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ning

Card

No.

Tow

nshi

pVo

l.Ta

x Co

deAr

eaSe

ct.

Bloc

kPa

rcel

Unit

——

of —

—Di

visi

onRe

cord

of O

wne

rshi

pDa

teDe

ed S

tam

pSa

le P

rice

Year

___

____

Year

___

____

Year

___

____

Year

___

____

Year

___

____

Year

___

____

Soil

IDPI

Adj.

Fact

or(s

)Ad

j. PI

No. A

cres

Cer

t. Va

lue

Asm

t.C

ert.

Valu

eAs

mt.

Cer

t. Va

lue

Asm

t.C

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Valu

eAs

mt.

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t. Va

lue

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t.C

ert.

Valu

eAs

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Subt

otal

:

Subt

otal

:

Subt

otal

:C

ontri

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ry W

aste

land

1/6

Low

est E

AVN

on-C

ontri

buto

ry W

aste

land

00

00

00

00

00

00

Ded

icat

ed R

oads

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00

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00

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Tota

l All F

arm

land

No.

Acr

esVa

lue

Leve

lAs

mt.

Valu

eLe

vel

Asm

t.Va

lue

Leve

lAs

mt.

Valu

eLe

vel

Asm

t.Va

lue

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Valu

eLe

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smt.

Hom

esite

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iden

tial B

ldgs

.Fa

rm B

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.33

1 / 333

1 / 333

1 / 333

1 / 333

1 / 333

1 / 3P

RC

-1F

(R-6

/99)

IL-4

92-1

154

Cropland (Full EAV) Permanent Pasture (1/3 EAV) Other Farmland (1/6 EAV)Ownership/Mailing Address& Abbr. Legal

Indi

vidu

al s

oil w

eigh

ted

met

hod

4611

811

81

5011

911

92 3 73 2

$600

0 $

2000

2006

Example of PRC-IF — Individual soil weighted method

33 1 /

3


4611

811

840

143

.89

5,75

648

B11

1.9

911

04

5011

911

924

128C

211

2.9

310

42 70




* Indicates unfavorable subsoil



* Indicates unfavorable subsoil





Unit 8Summary

Farmland is valued according to its productivity and itsactual use.

The four categories of farmland are cropland, perma-nent pasture, other farmland, and wasteland (con-tributory or non-contributory).

The method used in valuing farmland is the individualsoil tract method.

The department sends a list of the certified farmlandequalized assessed values, titled “Department CertifiedValues,” to each county annually. The farmland valuesrange from a PI of 82 for the least productive soil to a PIof 130 for the highest or most productive soil.

Review Questions

1 T or F Permanent pasture is the most productive type offarmland.

2 T or F Aerial base photo maps provide a complete and visualrecord of all real property.

3 T or F Farm residences and homesites are not equalized.

4 T or F Farmland is valued according to the type of cropsproduced.

5 T or F A soil identified as 50D3 does not have any erosion.

6 T or F The Department of Farm and Home certifies allfarmland values.





Learningobjectives

Unit 9

Sales Ratio and EqualizationThis unit covers the equalization process and the pur-pose of the sales ratio studies.

The purpose of this unit is to provide a basic under-standing of how equalization is used to bring about afair distribution of the property tax burden, and to teachthe skills necessary to perform a simple sales ratio study.


• define equalization,• explain the use of an assessment/sales ratio study,

and• calculate a coefficient of dispersion (COD).

EqualizationEqualization factorMedianMarket valueLevel of assessmentsEqualized assessed value (EAV)Assessment/sales ratio studyCoefficient of dispersion (COD)Mean

EqualizationEqualization is defined as the application of a uniformpercentage increase or decrease to assessed values ofvarious areas or classes of property, to bring assessmentlevels, on the average, to a uniform percentage of mar-ket value.

Terms andconcepts

9-1 Unit 9: Sales Ratio and Equalization


CCAOs, most boards of review, and the departmenthave the authority to apply equalization factors, some-times referred to as multipliers. Assessing officials inCook County do not have the authority to apply equal-ization factors.

Equalization that occurs within the boundaries of acounty is called intra-county equalization. Examples ofintra-county equalization include: neighborhood ortownship multipliers (area equalization) and residen-tial, commercial, or industrial multipliers (class equaliza-tion).

Inter-county equalization factors, sometimes called statemultipliers, or state equalization factors, are issuedannually for each county by the department. The appli-cation of these factors to all appropriate property ineach county ensures that the median, or middle, assess-ment level in all counties is statutorily at 33 1/3 percentof market value. This median is sometimes referred toas the median level of assessment, or median assess-ment level. If a county receives a multiplier of 1.0000,this means that the median assessment level in thecounty is 33 1/3 percent. Intra-county equalization maybe necessary before a 33 1/3 percent level is achieved.

Equalization factors will not correct inequities in indi-vidual assessments. A lack of assessment uniformitywithin an area or class may necessitate a reassessmentof individual properties before intra-county equaliza-tion. The importance of having uniform assessmentlevels that are grouped closely around the median levelof assessments cannot be over-emphasized because it isthe median level of assessments that is adjusted to 33 1/3percent.

Equalization is the application of a factor to each juris-diction so that all jurisdictions throughout the statehave assessment levels at the same average percentageof market value. This example shows how the tax billsof two similar properties in one school district, whichoverlaps two counties, are affected by unequal assess-ment levels. The example then shows how the applica-tion of an equalization factor establishes equity.



Examplewithequalization

Examplewith noequalization

Without applying the equalization factors, the taxpayersin this overlapping taxing district would not pay thesame amount to the taxing district, even though bothproperties have a market value of $90,000. With theapplication of equalization factors, the equalized as-sessed values (EAV) of both properties are the sameand both property owners share equally in the tax burden.

County A County B

Property market value $90,000 $90,0003-Year average assessment level 33.33% 23.00%Assessed value (AV) $30,000 $20,700Overlapping district tax rate$3.43/$100 EAV 3.43% 3.43%Tax bill (for district) $1,029 $710

County A County BEqualization desired level 33.33% = 1.0000 33.33% = 1.4491factor 3-year level 33.33% 23.00%

County A County B

Tax bill (for district) $1,029 $710Same properties’ assessed values $30,000 $20,700Equalization factor 1.0000 1.4491EAV $30,000 $30,000Overlapping district tax rate$2.90/$100 EAV* 2.9% 2.9%Tax bill (for district) $870 $870

*The increase in EAV resulted in a lower tax rate calculated by thecounty clerk.

Not all properties are subject to equalization factors.State-assessed properties, coal rights, farmland, andfarm buildings are not affected by state multipliers;their assessed values are defined by law as equalizedassessed values. However, both the farm residence andhomesite are subject to the state multiplier because theirassessed values are based on market values.



The assessment/sales ratio studyThe primary tool in the equalization process is theassessment/sales ratio study. The assessment/salesratio study provides information on the percentagerelationship of assessed value to market value for realproperty in certain classes of property and geographicareas. This percentage is called the median level ofassessment. Assessment/sales ratio studies also provideinformation on the variation in assessment levelsamong, and within, these classes of property and geo-graphic areas.

Assessment/sales ratio studies are used

• In the computation of equalization factors.State-issued county multipliers are used by the depart-ment to carry out the statutory responsibility of equaliz-ing the levels of assessments among counties (inter-county). Township multipliers are issued by the county(intra-county) to equalize the level of assessmentswithin that county.

• In the review and appeal of assessments.These studies provide a measure of the average assess-ment level for a given geographic area, or category ofproperty, against which assessments of individual par-cels may be judged in determining the degree of anyover-assessment or under-assessment.

• As a diagnostic tool for local assessing officials toevaluate assessment practices.It is the responsibility of local assessing officials to useassessment/sales ratio studies to evaluate their assess-ment policies and make assessment changes, whenwarranted, so that the final assessments of all propertyin their jurisdiction are at a uniform percentage of mar-ket value.

A minimum of 25 useable sales (arms-length transac-tions) are needed to conduct an assessment/sales ratiostudy. Appraisals may also be used if sales are not avail-able.



The following are examples of some types of sales thatwould not be used in an assessment/sales ratio study:

• Land and improvements that are classified as farm,• Compulsory sales,• Sales conveying less than full title,• Sales between related parties,• Sales involving government organizations,• Sales involving lending institutions, and• Sales in which the assessed value and the sales

price are not comparable, such as splits, partialassessments, and the destruction of an improvement.

Form PTAX-203, Real Estate Transfer Declaration, some-times called the “RETD,” is the primary source of saleinformation used in a assessment/sales ratio study. TheRETD, shown below, contains information on theamount of the sale, the use of the property, and theconditions of the sale. An RETD must be filed with thecounty recorder when a deed is recorded. The RETDsare then given to the CCAO, who supplies copies to thetownship or multi-township assessor.



Assessment uniformity indicatorsThe most commonly used statistical measure of assess-ment uniformity is the coefficient of dispersion (COD).The COD provides a measure of the variation of indi-vidual assessment ratios around the median level ofassessment. If individual ratios are found to be groupedclosely around the median, assessments are relativelyuniform and the COD will be low. Higher CODs indi-cate that individual ratios vary widely from the median,so that property is not uniformly assessed. This alsoindicates that the property tax burden is not fairly dis-tributed among taxpayers in that particular area orjurisdiction.

Assume that a county has a median level of assessmentat 30 percent and a COD of 40 percent. The assessmentlevels of individual properties, on the average, can beexpected to deviate from the median level by plus orminus 40 percent (from 18 percent to 42 percent).

Step 1 Determine the sales ratio for each sale.

Sales ratio = Prior year’s assessed value x 100(%) Current year’s sale price

Step 2 Rank sales ratios & determine the median,or middle value.

Step 3 Calculate deviations of each ratio.

Deviation = sales ratio - median**When subtracting the median from thesales ratio, ignore plus or minus signs.

Step 4 Find the average deviation.

Average deviation = Sum of deviations Number of sales

Step 5 Calculate the COD.

COD = Average deviation x 100(%) Median

Formula forarriving atthe COD



Exercise 9-1Assessment/sales ratio study and determining a COD

The primary purpose of an assessment/sales ratiostudy is to determine the median level of assessmentsfor a particular jurisdiction. The assessment/sales ratiostudy may also be used in determining a COD.

Follow the steps below, and use the worksheet onPage 9-11 for this exercise.

Step 1 Determine the percent relationship of assessed value toactual market value using the sales ratio formula. Foreach sale, divide the prior year’s assessed value by thecurrent year’s selling price and then multiply it by 100to change it to a percent.

Sales ratio = assessed value x 100(%) 10,000 x 100 = 28.57% sale price 35,000

The first sale has an assessed value for the prior year of$10,000, and the current year’s selling price is $35,000.

Divide the assessed value of $10,000 by the sale price of$35,000, then multiply it by 100 to change to a percent.This gives you a sales ratio of 28.57%.

Round to 2 decimal places consistently throughout thisexercise. To round numbers, first carry the answer out 3decimal places. If the last digit is 5 or greater, round upthe number in the second decimal place. If the last digitis less than 5, leave the number in the second decimalplace as it is. For example, 28.575 is rounded to 28.58,and 28.571 is rounded to 28.57.

Follow Step 1 to find the sales ratios for the remaining10 sales.

Step 2 Next, rank all of the ratios and determine the medianlevel of assessments. You may rank your ratios fromhighest to lowest, or vice versa, since either ranking willproduce the same result. In this exercise, rank the ratiosfrom lowest to highest in the space designated in thelower left corner of the worksheet on Page 9-11.



The middle ratio is the median when there are an oddnumber of ratios. The mean, or average, of the middletwo ratios is the median when there are an even num-ber of ratios.

This example has an odd number of ratios. When yourank all 11 ratios, starting with the lowest ratio of15.83% and ending with the highest ratio of 41.18%, themiddle ratio, or median, is 28.72%. There are exactly 5ratios above 28.72%, and 5 ratios below 28.72%. There-fore, for this jurisdiction, the median level of assess-ments has been determined to be 28.72%. Write thederived median of 28.72% in all of the blank spacesunder the median column.

Complete the following steps to determine a COD,which will indicate the degree of uniformity in theassessments.

Step 1 Subtract the median ratio from each of the sale ratios.

Deviation = sales ratio - median* 28.57 - 28.72 = .15

*When subtracting the median from the sales ratio,ignore plus or minus signs.

For the first sales ratio, take the sales ratio of 28.57 andsubtract the median of 28.72. The difference, or devia-tion, is .15. The second difference is determined bytaking the ratio of 41.18 and subtracting the median of28.72. The difference, or deviation, is 12.46. Again, ig-nore the plus or minus signs. Continue this process foreach remaining ratio.

Step 2 Add all the deviations to obtain the sum of deviations.Write this answer on the line directly below the lastdeviation of .36.

Add the first deviation of .15 through the last deviationof .36, which gives you a sum of deviations of 50.52.



Step 3 To find the average deviation from the median ratio,divide the sum of deviations by the number of sales.

Average deviation = sum of deviations 50.52 = 4.59# of sales 11

Divide the sum of deviations of 50.52 by 11, the numberof sales that you have, which gives you an averagedeviation of 4.59.

Step 4 To determine the COD, divide the average deviation of4.59 by the median ratio of 28.72, which gives you aCOD of 15.98.

COD = average deviation x 100(%) 4.59 x 100 = 15.98% median 28.72

Once you complete Exercise 9-1, refer to the answer keyin the back of this booklet to check your answers.


268 PTAX-1-BR — Board of Review — Basic Course9-10 Unit 9: Sales Ratio and Equalization


Exercise 9-1 worksheetAssessment/sales ratio study and determining a COD

Assessed value Sale price Sales ratio Median Deviation

$10,000 $35,000 28.57 _________ _________

17,500 42,500 ______ _________ _________

1,900 12,000 15.83 _________ _________

9,000 26,000 ______ _________ _________

9,000 31,000 29.03 _________ _________

1,400 8,000 ______ _________ _________

7,200 23,000 31.30 _________ _________

8,000 24,500 ______ _________ _________

5,600 19,500 28.72 _________ _________

14,000 50,000 ______ _________ _________

19,000 67,000 28.36 _________ _________

Sum of deviations _________Sale ratios

ranked Formulas

1 _________ Sales ratio = assessed value x 100(%)2 _________ sales price

3 _________

4 _________ Deviation = sales ratio - median*

5 _________

6 _________ Average deviation = sum of deviations

7 _________ # of sales

8 _________

9 _________ COD = average deviation x 100%10 _________ median

11 _________ *Ignore plus or minus signs when

subtracting the median from the sales ratios.



Exercise 9-2Assessment/sales ratio study with additional sale

Using the same ratios found in the previous exercise,you will see the effect one additional sale has upon themedian level of assessment and the COD.

Step 1 Look at the last sale, which has a prior year’s assessedvalue of $3,000, and a current year’s selling price of$3,000. When you divide the assessed value by the saleprice, you obtain a sales ratio of 100%. Comparing thisratio to the statutory level of 33.33%, you realize that thisparticular ratio differs greatly from the desired level.

Step 2 Rank all of the ratios, paying particular attention to thefact that you have 12 sales, versus the previous exampleof 11 sales. When you have an even number of sales,you must first find the mean, or average, of the twomiddle values to determine the median.

28.72 + 29.03 = 57.75 57.75 ÷ 2 = 28.88

The two middle ratios are 28.72 and 29.03. Add thesetwo ratios, which gives you a sum of 57.75. Divide 57.75by 2 to find the new median.

28.88 is now the median level of assessments for thisjurisdiction.

Step 3 Complete the same steps you followed in the previousexercise to determine the COD in this exercise. Subtractthe median of 28.88 from each sales ratio to get thedeviation, or difference, for each ratio. The additionalsale causes the sum of deviations to increase from 50.52 to121.80.

Step 4 Divide the sum of deviations of 121.80 by 12, thenumber of sales you have, which gives you an averagedeviation of 10.15.

Step 5 To determine the COD, divide the average deviation of10.15 by the median of 28.88. Then multiply by 100 tochange the COD to a percent. For this example, the oneadditional sale increases the COD from 15.98 to 35.15, orfrom 15.98% to 35.15%.



Exercise 9-2 worksheetAssessment/sales ratio study with additional sale

Assessed value Sale price Sales ratio % Median Deviation %$10,000 $35,000 28.57 28.88 .31

17,500 42,500 41.18 28.88 12.30

1,900 12,000 15.83 28.88 13.05

9,000 26,000 34.62 28.88 5.74

9,000 31,000 29.03 28.88 .15

1,400 8,000 17.50 28.88 11.38

7,200 23,000 31.30 28.88 2.42

8,000 24,500 32.65 28.88 3.77

5,600 19,500 28.72 28.88 .16

14,000 50,000 28.00 28.88 .88

19,000 67,000 28.36 28.88 .52

3,000 3,000 100.00 28.88 71.12

Sum of deviations 121.80

Sale ratiosranked Formulas

1 15.83 Average deviation = sum of deviations # of sales

2 17.50= 121.80 = 10.15

3 28.00 12

4 28.36 COD = average deviation x 100(%) median

5 28.57= 10.15 x 100(%)

6 28.72 28.88

7 29.03 = 35.15 or 35%

8 31.30

9 32.65

10 34.62

11 41.18

12 100.00

] median 28.88



According to the standards of the International Associa-tion of Assessing Officers, the COD for residential prop-erty should be 15 percent or less, and the COD for va-cant land and income-producing property should be 20percent or less.

In Illinois, a bonus of $3,000 is paid to assessors whomaintain a level of assessment between 31 1/3 percentand 35 1/3 percent and have a COD of no greater than 15.In counties with 50,000 or fewer inhabitants, the CODmust be 30 or less.

SummaryEqualization is the process of applying a factor to eachjurisdiction so that all jurisdictions throughout the statehave assessment levels at the same average percentageof market value.

An assessment/sales ratio study is performed to deter-mine the level of assessment in a particular jurisdiction.

The state equalization factor is determined by takingthe statutory level of assessment and dividing it by theprior 3-year average median level of assessment for ajurisdiction.




1 T or F Equalization means a factor is applied to eachjurisdiction so that all jurisdictions are assessed at thesame average percentage of market value.

2 T or F A sales ratio study is used to determine thepercentage of homes that have sold during acertain period of time.

3 T or F The state equalization factor is always 1.0000.

4 T or F Only jurisdictions with a COD of 16 qualify forthe bonus.




275PTAX-1-BR — Board of Review — Basic Course10-1 Unit 10: Instant Assessments

Unit 10

Instant AssessmentsThis unit covers the instant and pro-rated assessmentsfor new improvements or destroyed property.

The purpose of this unit is to provide a very basic over-view of the instant and pro-rated assessments.


• understand the use of instant assessments,• understand the use of pro-rated assessments, and• recite the statutory reference for instant and

pro-rated assessments for destroyed property.

Instant assessmentPro-rated assessmentSection 9-175Section 9-180

Instant assessmentsThe pro-rata valuation provisions of the Property TaxCode, referred to as instant assessments, require assess-ment officials to assess improvements as of the timethey are inhabitable and fit for occupancy or for in-tended customary use during the assessment year. Thetotal assessment is equal to the instant assessment, plusthe January 1 assessment for the property. The January 1assessment may have included a partial assessment fora partially completed improvement.

Learningobjectives

Terms andconcepts


The instant assessment value is found by multiplyingthe full assessment for the newly completed improve-ment by the portion of the year remaining from the datethe improvement is completed, occupied, or used.

Section 9-175, Owner on assessment date, states that“the owner of property on January 1 in any year shallbe liable for the taxes of that year.”

Section 9-180, Pro-rata valuations; improvements orremoval of improvements, states that “The owner ofproperty on January 1 also shall be liable, on a propor-tionate basis, for the increased taxes occasioned by theconstruction of new or added buildings, structures orother improvements on the property from the datewhen the occupancy permit was issued or from the datethe new or added improvement was inhabitable and fitfor occupancy or for intended customary use to Decem-ber 31 of that year. The owner of the improved propertyshall notify the assessor, within 30 days of the issuanceof an occupancy permit or within 30 days of completionof the improvements, on a form prescribed by thatofficial, and request that the property be reassessed. Thenotice shall be sent by certified mail, return receiptrequested and shall include the legal description of theproperty.

When, during the previous calendar year, any build-ings, structures or other improvements on the propertywere destroyed and rendered uninhabitable or other-wise unfit for occupancy or for customary use by acci-dental means (excluding destruction resulting from thewillful misconduct of the owner of such property), theowner of the property on January 1 shall be entitled, ona proportionate basis, to a diminution of assessed valua-tion for such period during which the improvementswere uninhabitable or unfit for occupancy or for cus-tomary use. The owner of property entitled to a diminu-tion of assessed valuation shall, on a form prescribed bythe assessor, within 90 days after the destruction of anyimprovements or, in counties with less than 3,000,000inhabitants within 90 days after the township or multi-township assessor has mailed the application form asrequired by Section 9-190, file with the assessor for thedecrease of assessed valuation. Upon failure so to do

10-2 Unit 10: Instant Assessments


within the 90 day period, no diminution of assessedvaluation shall be attributable to the property.

Computations under this Section shall be on the basis ofa year of 365 days. (Source: P.A. 91-486, eff. 1-1-00.) ”

Similar provisions allow for an assessment reduction ifproperty is destroyed or rendered uninhabitable duringthe year, unless destruction resulted from the willfulmisconduct of the owner of such property. In countiesother than Cook, the assessor must mail an applicationto the owner of property that was destroyed or ren-dered uninhabitable by natural disaster or accidentalmeans. The assessment is reduced by an amount pro-rated from the time of the destruction to the end of theassessment year.

The notice forms for a pro-rated assessment, due to thedestruction of an improvement, and for an instant as-sessment are on Pages 10-7 and 10-9. The owner mustapply within 90 days after the destruction, or within 90days after the township assessor has mailed the applica-tion form as required by Section 9-190.

The following demonstration is an example of a “partialassessment” by the township assessor and a prorated“instant assessment” by the CCAO.

During the period when a township assessor was as-sessing property, a residential improvement was exam-ined by the township assessor who determined that theimprovement was 70% completed at the time valueswere being entered in the assessment book. The asses-sor also determined the value of the land to be $24,000.

The assessor must first determine the value of the im-provement at 100% complete (RCN value from a costmanual or a market value from comparable properties)and then adjust that value to reflect the 70% completion.



Example

The RCN, or market value (MV) of the improvementwas determined to be $100,000.

The township assessor would use $70,000 as the MV.(RCN of $100,000 x 70% completed = $70,000)

Assuming that the township level of assessments was33 1/3% of MV, the assessed value (AV) of this improve-ment would be $23,331 ($70,000 x 33.33%).

The AV for the land is $7,999. ($24,000 x 33.33%)

The total AV is $31,330. ($23,331 improvement + $7,999land)

An assessment may also be reduced if an improvementhas been destroyed. For example, on August 5 (Juliandate 217), a fire damaged a downtown commercialbuilding. The official damage report placed a 70% losson the structure. The full MV as of January 1 was$120,000. Site value was $30,000.

Step 1 A full MV must be determined for the time period ofJanuary 1 through August 4. This equals 216 days.

$120,000 x 216 = $71,014365

Step 2 An adjusted MV must be determined for the timeperiod of August 5 through December 31. This equals149 days.

$120,000 x 30% (remaining % of value) = $36,000$36,000 x 149 = $14,696

365

The MV becomes $85,710. ($71,014 + $14,696)

The AV for this improvement is $28,567. ($85,710 x33.33%)

The MV for the site is not adjusted. The AV of the site is$9,999 ($30,000 x 33.33%)



Supplemental exercise

1 As of January 1, the township assessor had determined that aresidential improvement was 60% completed; the RCN was$95,000 and the land value was $15,000. The assessment levelfor this township is the statutory level. The AV for the landwould be $____________. The AV of the improvement would be$____________.

This improvement was inhabited and fit for occupancy. TheCCAO assessed this property as of May 1 (Julian date 121),using $95,000 for the MV and $15,000 for the land value.Assessing at the statutory level, the AV for the land would be$____________. The AV for the improvement would be$____________.

2 On September 24 (Julian date 267), fire damaged a downtowncommercial building. The official damage report placed an 80%loss on the structure. The MV as of January 1 was $240,000 andthe site value was $36,500. The board of review (assessing at thestatutory level of 33 1/3%) places an AV of $____________ onthe land and an AV of $____________ on the improvement.





Notice of Completion of New Improvement

Property Index No. (PIN): ____________________________________

Owner of improved property: ____________________________________Address: ____________________________________

____________________________________

In accordance with 35 ILCS 200/9-180, this notification is being provided of a new or added building, structure, or otherimprovement. Improvements include an addition that increases the square footage of the existing structure.

1 The new or added building, structure, or other improvement was substantially completed on ______________,19 ___.

2 The improvement was or will be initially occupied or initially used on _______________,19 ___.

3 Description of the improvement:

_________________________________________________________________________________________________

___________________________________________________________________________________________________

_________________________________________________________________________________________________

4 The location or address of the property:

_________________________________________________________________________________________________

___________________________________________________________________________________________________

_________________________________________________________________________________________________

5 Legal description of the property:

_________________________________________________________________________________________________

___________________________________________________________________________________________________

_________________________________________________________________________________________________

I hereby request that such real estate be reassessed.

_____________________________________________ ___________________Owner Date

Note: This notice must be sent by certified mail, return receipt requested, to the assessor within 30 days after thecompletion of the new or added building, structure, or other improvement.

PTAX-760 (R-7/94)




283PTAX-1-BR — Board of Review — Basic Course10-9 Unit 10: Instant Assessments

Notice of Unintentional Destruction of Improvement

Property Index No. (PIN): ____________________________________

Owner of property: ____________________________________Address: ____________________________________

____________________________________

Owner of property on January 1 of assessment year if different than above:____________________________________

In accordance with 35 ILCS 200/9-180, notification is being provided that a building, structure, or other improvement, assessedfor property tax purposes, was destroyed and rendered uninhabitable or otherwise unfit for occupancy or customary use byaccidental means and not by the willful misconduct of the owner.

1 The building, structure, or other improvement was destroyed and rendered uninhabitable or otherwise unfit for occu-pancy or customary use on ________________, 19 ____.

2 Description of the improvement:

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

3 The location or address of the property:

_________________________________________________________________________________________________

_________________________________________________________________________________________________

4 Legal description of the property (not required if the 10 digit property index number (PIN) is listed above):

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

5 Cause of the accidental destruction:

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

I hereby request a proportionate reduction in the assessed valuation for the period after the date stated on Line 1, and duringwhich the improvements were uninhabitable or unfit for occupancy or customary use. If the improvement is replaced, I will file aForm PTAX-760, Notice of Completion of New Improvement, with the assessor within 30 days after the completion date.

_____________________________________________ ___________________Owner Date

In counties with less than 3,000,000 inhabitants - this notice must be filed with the assessor within 90 days after the destruc-tion of such improvements, or, after the township or multi-township assessor has mailed the application form required by 35ILCS 200/9-190.

In counties with more than 3,000,000 inhabitants - this notice must be filed with the assessor within 90 days after the destruc-tion of such improvements.

Note: Failure to file this notice within the 90-day period will result in no reduction of the assessed valuation of the property.

PTAX-761 (R-7/94)

284 PTAX-1-BR — Board of Review — Basic Course10-10 Unit 10: Instant Assessments

SummarySection 9-180 provides for the instant assessment ofproperty and that it should be computed on the basis ofa year of 365 days.


1 T or F Instant assessments means the assessor will come outthe instant you call and request that your property beappraised.

2 T or F Section 9-175 contains provisions for instantassessments.

3 T or F Property owners do not need to fill out any forms orapplications.


Unit 11

Exemptions and the Board ofReview

This unit covers the responsibilities of the board ofreview with regard to homestead and non-homesteadexemptions.

The purpose of this unit is to provide a basic under-standing of homestead and non-homehstead exemp-tions. This unit also covers the documentation requiredfor each type of non-homestead exemption application,and the actions the board must complete before for-warding a non-homestead application to the depart-ment for a final decision.


• follow the application process for non-homesteadexemptions,

• identify the required documentation for eachapplication package, and

• identify the responsibilities of local review boardsin the exemptions area.

Non-homestead exemptionsHomestead exemptionsSection 16-70Application requirements

11-1 Unit 11: Exemptions and the Board of Review

Learningobjectives

Terms andconcepts


Non-homestead exemptionSome non-homestead properties qualify to be exemptfrom property taxation. Some examples include

• all property of schools not sold or leased or otherwise used with a view to profit,

• property used exclusively for religious purposes,• property belonging to the state of Illinois,• property used exclusively for fire protection purposes

and belonging to any city, village, or incorporatedtown,

• United States property,• all property used exclusively as graveyards or

grounds for burying the dead, and• property belonging to a charitable organization and

used exclusively for charitable purposes.• all property belonging to any county or

municipality used exclusively for the maintenanceof the poor or is being held for future expansion ordevelopment except if leased for other than publicuse.

Property cannot be listed as exempt from taxation untilthe following steps have taken place:

1 The property owner must file an application formfor a non-homestead exemption with the local boardof review,

2 The property owner must attach pertinent,supporting documentation with each application, and

3 The board must make a recommendation after ahearing on the application and forward the entireapplication package to the department for finalapproval.

Any person wishing to claim a non-homestead exemp-tion for the first time must file an application with theboard of review. Application forms may be obtainedfrom the board in the county in which the property islocated. These forms are listed in Unit 2.



The board of review can accept an application only ifthe taxpayer has

• used the correct application form,• filled out the application correctly, and• attached the required, supporting documentation.

Supporting documentation includes the legal descrip-tion of the property, the property index number (PIN),proof of ownership, such as affidavit of use, picture,and copies of any lease or contract concerning the prop-erty. In Cook County, the applicant may be required tofile a complaint form, in addition to the exemptionapplication. Also, there are specific guidelines for appli-cations dealing with multiple parcels.

A property owner who applies for a non-homesteadexemption that reduces the assessed valuation of theproperty by more than $100,000, is also required todeliver a copy of the application to any municipality,school district, community college district, and fireprotection district in which the property is located. Theboard should give the municipalities, school districts,community college districts, fire protection districts,and the taxpayer an opportunity to be heard. However,an exemption will not be invalidated if a municipality,school district, community college district, or fire pro-tection district does not receive the notice.

Sections 16-70 and 16-130 of the Property Tax Codeprovides that boards of review determine the applica-tion of any person who is assessed on property claimedto be exempt from taxation. However, the decision ofthe board is not final, except for homestead exemptions.The final decision on non-homestead exemptions ismade by the department.

The application must be made for the tax year in whichthe board is in session. For example, if a 2006 board isstill in session in January of 2007, an application forexemption for the 2007 tax year cannot be considered,nor can a determination or recommendation be madeby the 2006 board. Only a board in session for the 2007tax year can consider and determine exemption applica-tions for the 2007 tax year.




The clerk of the board, in all cases other than homesteadexemptions, must complete a statement of all facts inthe case and forward it to the department. The depart-ment determines whether the property is legally liableto taxation. The department then notifies the board ofreview of its decision, and the board corrects the assess-ment, if necessary.

The extension of taxes cannot be delayed by any exemp-tion proceeding. If the department, or a court of compe-tent jurisdiction, rules that the property is exempt, anytaxes that were extended upon the assessment areabated, or if paid, are refunded. The parcel receiving thenon-homestead exemption is not removed from theproperty rolls, but is retained on the assessment list. Theapproved parcels should be coded exempt, or identifiedin some manner, as receiving a non-homestead exemption.

Any applicant who does not agree with the department’sdecision denying an exemption or allowing only apartial exemption should not file another exemptionapplication on the property for the same tax year. In-stead, the applicant should make a written request for aformal hearing before the department within 20 daysafter the department’s notice of decision is mailed. Thedepartment will return an application if the board ofreview forwards one for which a decision has alreadybeen rendered for that tax year.

Homestead exemptionsCurrently there are five types of homestead exemptionsavailable.

This exemption is available to residential property thatis occupied on January 1 of the assessment year as aresidence. The amount of exemption is the increase inthe current year’s EAV, above the 1977 EAV, to a maxi-mum of $5,000. There is also an alternative method ofcalculating the exemption.

GeneralHomesteadExemption

289PTAX-1-BR — Board of Review — Basic Course11-5 Unit 11: Exemptions and the Board of Review

This is a $3,500 reduction in the EAV of real propertythat a person 65 years of age or over is obligated to paytaxes on and, 1) owns and occupies, or 2) leases andoccupies as a residence. This exemption is in addition tothe General Homestead Exemption.

This exemption applies to homestead property usedexclusively for residential purposes. It is limited to thefair cash value that was added to the homestead prop-erty by any new improvement, up to an annual maxi-mum of $75,000. The exemption continues for fouryears from the date the improvement is completed andoccupied.

This exempts up to $70,000 of the assessed value forcertain types of housing owned and used by disabledveterans. The Illinois Department of Veterans’ Affairsdetermines the eligibility for this exemption, whichmust be reestablished annually.

This exemption allows qualified senior citizens to electto maintain the EAVs of their homes at the base yearvalues and prevent any increase in assessment due toinflation. This exemption must be applied for annually.

Several other programs benefit the senior citizens ofIllinois, in addition to the homestead exemptions. Aguide, Property Tax Relief Available to Illinois SeniorCitizens, is shown on the following page.

HomesteadImprovementExemption

The DisabledVeteransExemption

Senior CitizensAssessmentFreezeHomesteadExemption

Senior CitizensHomesteadExemption

290 PTAX-1-BR — Board of Review — Basic Course11-6 Unit 11: Exemptions and the Board of Review

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291PTAX-1-BR — Board of Review — Basic Course11-7 Unit 11: Exemptions and the Board of Review

Certificates of ErrorIf, at any time before judgment on taxes is entered for atax year by the court, an error or mistake is discoveredin any assessment, other than errors of judgment as tothe valuation, a certificate of error may be issued to aperson erroneously assessed. The certificate states thenature of the error and its cause or causes. For example,the property in question has either an approved non-homestead exemption, or recently received one from thedepartment, but was erroneously assessed.

Certificates of error can be issued by a board of reviewand endorsed by the CCAO, or they can be issued bythe CCAO and endorsed by the board of review. Whena certificate of error is introduced in evidence, it be-comes a part of the court records and cannot be re-moved from the files, except upon the order of thecourt.



SummarySome properties are exempt from taxation. The applica-tion forms for the non-homestead exemption must befilled out correctly with all supporting documentationattached in order to be submitted to the board of review.The application must be for the tax year for which theboard is in session.

If the non-homestead exemption application reducesthe assessed valuation of any property by more than$100,000, the owner is required to deliver a copy of theapplication to any municipality, school district, commu-nity college district, and fire protection district in whichthe property is situated.

For non-homestead exemptions, the clerk of the boardmust make out a full and complete a statement of allfacts in the case and forward it to the department. Thedepartment determines whether the property is legallyliable to taxation. The department then notifies theboard of review of its decision, so the board can correctthe assessment, if necessary.



1 Name the entity that has the final approval authority for allnon-homestead exemptions.

_______________________________________________

2 List three different types of non-homestead properties that areconsidered exempt.

a ____________________________________________

b ____________________________________________

c ____________________________________________

3 Last year’s board of review for County ABC is still in sessionon February 15 of this year. A religious organization acquiresproperty on February 1 of this year and files an application fora non-homestead exemption on February 15 of this year. Doesthis board have the power to consider this application? Whyor why not?

_____________________________________________________

_____________________________________________________

_____________________________________________________





12-1 Unit 12: Ethics and Resources

Unit 12

Ethics and ResourcesThis unit covers ethics and resources for board of re-view members.

The purpose of this unit is to discuss the importance ofconducting business in an ethical manner and provideresources board of review members can turn to forassistance.


• understand the importance of ethical behavior, and• have a better understanding of where to seek

assistance.

EthicsEthics is an important issue in government. As a boardof review member, you may be governed by a code ofethics that has been adopted by either the governingbody in your assessment jurisdiction or by a profes-sional organization with which you are affiliated. It is toyour advantage to obtain a copy of the ethics code fromyour CCAO, township board, or the assessment organi-zation with which you are affiliated.

Learningobjectives



The Ethics Committee drafted a proposed Code ofEthics and Standards of Professional Assessment Prac-tices for Illinois. This proposed draft has been submit-ted for approval to the state “Core Group” of the Projecton Education and Professionalism for Assessors. In-cluded in the draft are four canons, as well as elevenstandards.

This draft is included as an example only. Board ofreview members should contact their county officialsfor a copy of the ethics code adopted for their jurisdic-tions.

Proposed Code of Ethics and Standards ofProfessional Assessment Practice for Illinois

Canon 1An assessing official shall conduct himself or herself ina manner that promotes professionalism in the assess-ment process.

Canon 2An assessing official must follow the Illinois state stat-utes and cooperate with all other public officials incarrying out his or her responsibilities to the assessmentprofession and the public.

Canon 3In the assessment of any property, an assessing officialmust develop each analysis and opinion without biasand without intent to benefit his or her own self oranother individual.

Canon 4An assessing official must comply with these Standardsof Professional Assessment Practice for Illinois.


Standards of Professional Assessment PracticeStandard 1

An assessing official must conform in all respects tothese Canons of Ethics and Standards of ProfessionalAssessment Practice, as they may be amended fromtime to time, and give full faith and allegiance to suchoaths of office as the official may take. The official shallobey and apply equitably all applicable laws and regu-lations as may be required in the pursuance of his or herduties.

Standard 2In developing a real property assessment and/or ap-praisal, an assessing official must be aware of, under-stand, and correctly employ those recognized methodsand techniques that are necessary to produce a credibleassessment and/or appraisal. The officer shall seekguidance from other assessment or appraisal profes-sionals as necessary to meet this standard.

Standard 3In developing a mass appraisal, an assessing officialmust be aware of, understand, and correctly employthose recognized methods and techniques that arenecessary to produce credible assessments. The officershall seek guidance from other assessment or appraisalprofessionals as necessary to meet this standard.

Standard 4In estimating values for assessment purposes, an assess-ing official must estimate “market value” as that con-cept is defined by the courts of Illinois, regardless of theassessment percentage to be used, except when the lawrequires special valuation techniques.

Standard 5An assessing official must conduct all official activitiesin a manner that will reflect credit on the assessmentprofession. The official must cooperate fully with otherpublic officials in all matters affecting equity and theefficiency of the property tax system.



Standard 6An assessing official must make available for publicreview all public records in his or her custody unlessaccess to such records is specifically limited or prohib-ited by law, or the information has been obtained on aconfidential basis and the law permits such informationto be treated confidentially. The official must makeevery effort to inform the public about their rights andresponsibilities under the law and the property taxsystem.

Standard 7An assessing official must avoid the appearance ofimpropriety and must uphold the professional reputa-tion of other assessing officials.

Standard 8An assessing official must use no professional designa-tion unless duly authorized to do so, and must claim noqualifications in any report, testimony or elsewhere,that are not factual or that may be subject to erroneousinterpretation.

Standard 9An assessing official must accept no fee appraisal orother assignment in which the official has anunrevealed personal interest or bias, or which cannot becompleted without placing the official’s personal integ-rity or that of the assessment profession in jeopardy. Theofficial may accept no fee appraisal or other assignmentthat could forseeably conflict with any assessmentjurisdiction or responsibility the official may have.

Standard 10An assessing official must not accept any assessment orappraisal engagement for which the amount of theofficial’s compensation is contingent upon reporting apredetermined value; or on the amount of the valueestimate; or on reporting a predetermined opinion,conclusion, or recommendation; or on the amount of atax reduction obtained by a client using the official’sservices; or on any other result, value, or subsequenttransaction that might impair or give the appearance ofimpairing the official’s objectivity and professionalism.



Standard 11An assessing official must not only uphold this Code ofEthics and Standards of Professional Assessment Prac-tice by example, but must also encourage, by counseland advice, adherence to this code and standards byothers in the profession.

Note: Canons 1 through 4 and Standards 2 and 3 wereadapted from those promulgated by the AppraisalInstitute. Standards 1, and 4 through 10 were adaptedfrom those promulgated by the International Associa-tion of Assessing Officers.



Notes


Where to go for helpWhen individuals are just starting out in the assessmentfield, they may often feel overwhelmed by their duties.

In addition to the Property Tax Code and the IllinoisReal Property Appraisal Manual, there are many otherresources available to the board member.

It is often helpful to talk with other board of reviewmembers in your area for information on handlingtroublesome situations. The CCAO for your county canbe very helpful regarding how you can better performwork-related responsibilities. Also, there are numerousassessment classes available from professional ap-praisal/assessment organizations to give you the toolsto better perform your job, and the department is avail-able to provide technical assistance in many areas.

When the question is of a legal nature, such as interpret-ing the statutes, you should check with your state’sattorney, who is charged with enforcing the statutes inyour county.

SummaryAs a board of review member, you should conductyourself in an ethical manner at all times. Rememberthat you are not alone in tackling your job. There arenumerous sources of assistance available to you.



1 What do you feel is the most important duty of the board ofreview?

____________________________________________

____________________________________________

____________________________________________

____________________________________________

2 List two reference sources for board of review members.

____________________________________________

____________________________________________




303PTAX-1-BR — Board of Review — Basic CourseA-1 Answer key

Answer keyfor Board of Review —

Basic course


Mathematical Terms and EquationsExercise 1 — Converting decimals to percents and percentsto decimals

Decimal Percent $/$100 AV

1 ____________ 12 ____________

2 ____________ 1.75 ____________

3 .0325 ____________ ____________

4 .0004 ____________ ____________

5 ____________ ____________ $2.55/$100

6 ____________ .06 ____________

7 .1234 ____________ ____________

8 ____________ ____________ $.033/$100

9 .0225 ____________ ____________

10 ____________ .450 ____________

Exercise 2 — Land valuesSite shape Measurements Square footage Approx. acreage

1 Rectangular 400' x 800' ____________ ____________

2 Rectangular 320' x 480' ____________ ____________

3 Triangular 320' x 480' ____________ ____________

4 Triangular 150' x 180' ____________ ____________

5 Square 150' x 150' ____________ ____________

6 Triangular 600' x 900' ____________ ____________

320,000 7.3 (7.34)

153,600 3.5 (3.52)

76,800 1.8 (1.76)

13,500 .3 (.30)

22,500 .5 (.51)

270,000 6.2 (6.19)

.1200 $12/$100

.0175 $1.75/$100

3.25 $3.25/$100

.04 $.04/$100

.0255 2.55

.0006 $.06/$100

12.34 $12.34/$100

.00033 .033

2.25 $2.25/$100

.0045 $.45/$100

A-2 Answer key


3.1700 1,022.33.5000 161.25.7024 226.52.9472 305.47.2925 94.33.5000 161.25

A-3 Answer key

Mathematical Terms and EquationsExercise 3 — Tax rates

L A R

1 $660,000 $30,000,000 ____________

2 ___$________ $10,000,000 4.0000%

3 $55,000 ____________ .6875%

4 ____________ $95,480,000 2.36l5%

5 $200,000 $50,000,000 ____________

6 $900,000 ____________ .7500%

7 $44,600 $54,257,900 ____________

8 $150,000 ____________ .3550%

9 ____________ $12,750,000 .6544%

Exercise 4 — Tax billsDetermine the tax bill on a residential property with a market valueof $96,750, and an EAV of $32,250. The property is situated in sixtaxing districts. Compute the tax rate for each taxing district andthen determine the amount of tax (taxable EAV x rate).

District Levy EAV Rate Tax

1 School $996,173 $31,425,000 _______% $________2 County $473,630 $94,726,000 _______% $________3 Township $178,994 $25,482,000 _______% $________4 City $144,661 $15,272,000 _______% $________5 Fire $110,707 $37,846,000 _______% $________6 Library $76,360 $15,272,000 _______% $________

Aggregate tax rate = ________% x taxable EAV $______________=

Tax bill $____________________

Effective tax rate = taxes billed = __________ = ______% market value

2.2000% (.022000)

400,000

$8,000,000

$2,254,760

.4000% (.004000)

$120,000,000

.0822% (.000822)

$42,253,521

$83,436

*The amount of the tax bill is rounded to the nearest even number for two equalinstallment amounts.

6.1121 32,250

1,971.15 1,971.14*

.020374 2.0374


Exercise 5

LA x R

1 If the levy for a local taxing body is $500,000 and the tax rate forthe local taxing body is 2.7500%, the equalized assessedvaluation for the local taxing body’s district will be:

____________________

2 The equalized assessed valuation for a local taxing body is$32,427,500 and the tax rate is 3.9860%. The levy for this taxingbody will be:

____________________

3 A taxing body has levied for $40,000. The maximum tax rate forthe taxing body is 30 cents/$100 equalized assessed value. Thedistrict’s equalized assessed valuation is $3,750,000. What is theamount of money the taxing body can expect to receive?

____________________

4 The equalized assessed valuation for a local taxing body is$125,000, the district has levied for $75,000, and the maximumtax rate is $1.25/$100 equalized assessed value. What is theamount of money the taxing body will receive?

____________________

A-4 Answer key

$18,181,818

$1,292,560

$11,250

$1,562


Unit 1

Review questions

1 Define ad valorem tax.

________________________________________________

________________________________________________

________________________________________________

2 _____________________________ is the major source oftax revenue for local governments.

3 What are the two classifications of property?

1 ____________________________

2 ____________________________

4 The largest share of property tax goes to _______________.

5 List the three approaches to value.

1 ____________________________

2 ____________________________

3 ____________________________

6 What four steps are involved in the assessment of anyproperty?

1 ____________________________

2 ____________________________

3 ____________________________

4 ____________________________

7 What two types of properties are assessed by the state?

1 ____________________________

2 ____________________________

A-5 Answer key

A tax that is based on the value of the property owned.

It is assessed according to its value.

Property tax

Real

Personal

schools

Sales comparison or market approach

Cost approach

Income approach

Identifying the real property

Listing it

Appraising it

Placing a value on the tax rolls

Railroad operating property

Pollution control facilities


A-6 Answer key

Unit 1

Review questions (cont.)

8 What happens if an individual does not pay his taxes?

________________________________________________

________________________________________________

________________________________________________

9 Who has the statutory authority to review assessments madeby the township assessor and make changes when deemednecessary?

1 ____________________________

2 ____________________________

10 List in order, the offices that actually handle the assessmentbooks, from the time they are created until the taxes areextended.

1 ____________________________

2 ____________________________

3 ____________________________

4 ____________________________

5 ____________________________

6 ____________________________

11 Property is valued as to its condition on __________________ ,the assessment date.

12 The __________________, makes the final decision on propertyvalues at the county level.

The county treasurer prepares a delinquent tax list and

publishes in a newspaper. If unpaid, the courts order a lien for

unpaid taxes, penalty, and fees to be sold at a tax sale.

CCAO

Board of review

County clerk

CCAO

Township assessor

CCAO

Board of review

County clerk

January 1

board of review


A-7 Answer key

Unit 2

Review questionsComplete the following exercises using the Property Tax Code.

1 Cite the section and paragraph governing the following:

A ________________ Boards of review, political makeupand compensation.

B ________________ Boards of review in commissioncounties.

C ________________ Elected boards of review.

D ________________ Meetings of the board of review.

E ________________ Omitted property.

2 Use the Property Tax Code to answer the following questionsand cite the correct section.

A Can the board of review issue a certificate of error for anerror of judgment?

________________________________ Section _________

B On what type of exemption does the board have the finaldecision?

________________________________ Section _________

C What is the mimimum number of signatures required onthe affidavit for certification of the assessment books?

________________________________ Section _________

D Is the board required to publish notice of an increase inassessment due to the application of an equalization factor?

________________________________ Section _________

Section 6-15

Section 6-30

Section 6-35

Section 16-30

Section 16-50

No 16-75

Homestead exemption 16-70

Two 16-85

Yes 12-40


A-8 Answer key

Unit 2

Review questions (cont.)E What is the publication fee set for the board of review for

“a parcel listing including the name of the property owner,a legal description of the property, the previous totalassessment, and the new total assessment?”?

________________________________ Section _________

F What happens to the assessment books when the board ofreview has completed its work?

________________________________ Section _________

_________________________________________________

_________________________________________________

G Are members of the board of review required to take anoath of office?

________________________________ Section _________

H Upon request of the board, what types of information isthe CCAO required to furnish to the board to assist it inthe proper discharge of its duties?

________________________________ Section _________

_________________________________________________

_________________________________________________

I When does the board of review adjourn?

________________________________ Section _________

J What action is the board required to take after a formalcomplaint has been filed?

________________________________ Section _________

_________________________________________________

$2 per parcel 12-65c

The board of review shall deliver one 16-90

set of books to the county clerk and one set to the

CCAO.

Yes 6-55

All books, papers, and information 16-5

in his or her office requested by the board to assist it in

the proper discharge of its duties.

Depends on population of county. 16-35

The board shall review assessment, 16-55

and correct it, as appears to be just.


Unit 2


K In commission counties, the county commissionersgenerally consistute the board of review. Are thecommissioners compensated for their work as membersof the board of review?

________________________________ Section _________

L What determines the educational requirements for amember of the board of review?

________________________________ Section _________

_________________________________________________

_________________________________________________

M What is the political make-up of a board of review andhow is it determined?

________________________________ Section _________

_________________________________________________

_________________________________________________

N Are boards of review required by statute to make andpublish reasonable rules governing their business?

________________________________ Section _________

O Are there penalty provisions for failure of board membersto perform their duties?

________________________________ Section _________

P In commission counties, does an appointed board ofreview have to meet any requirements?

________________________________ Section _________

No 6-30

6-10,

The type of government in a county, 6-30, & 6-35

population, county board resolution, and whether the

county has an elected or an appointed board of review

2 Members affiliated with the political 6-15

party polling the highest vote in a contested election for

any county office in the county, 1 member party pollingsecond highest vote.

Yes 9-5

25-15, 25-20,Yes 25-25

6-30Yes 6-32

A-9 Answer key


Unit 3

453 Fox 1029 Park 1207 Pine 759 Seneca 806 State

1 year ago 1 year ago 2 years ago 1 year ago last Dec. 28

1:5.5 1:6 1:5.5 1:6 1:5.5

$642,000 $626,000 $510,000 $612,000 $584,000

$110,700 $111,840 $ 99,960 $113,280 $108,240

5.8 5.6 5.1 5.4 5.4

$ 25,440 $ 25,680 $ 23,040 $ 26,040 $ 24,900

85,260 86,160 76,920 87,240 83,340

13.28% 13.76% 15.08% 14.25% 14.27%

28 24 20 22 22

22,929 26,083 25,500 27,818 26,545

96 92 88 92 85

6,688 6,804 5,795 6,652 6,871

Refer to the instructions on the previous page and com-plete the following data.


Address

Sale date

LB ratio

Sales pr.

Gross rent

GIM

Expenses

Net income

Overall rate

Units

Units price

Rooms

Rooms price

A-10 Answer key


A-11 Answer key


Time

Size

Quality

Condition

Floor plan

Location

Total adj. %

Adj. sale price

Adj. unit price

Adj. room price

Sale ________ is most comparable to the subject property.

Unit 3

+5 +5 +10 +5 —— — — — —

— — -5 — —

+5 — — -5 -10

— +6 — — —

— +3 +5 -10 —

+10 +14 +10 -10 -10

706,200 713,640 561,000 550,800 525,600

25,221 29,735 28,050 25,036 23,891

7,356 7,757 6,375 5,987 6,184

5

314 PTAX-1-BR — Board of Review — Basic CourseA-12 Answer key

23,891 573,384

6,184 556,560

5.4 614,763

614,763

631,399

Unit 3Refer to the instructions on the previous page and complete thefollowing example.

Subject property has 24 units.

Comparable’s adjusted unit price ________ x 24 units = ________

Subject property has 90 rooms.

Comparable’s adjusted room price ________ x 90 rooms = ________

Subject property has a gross rent of $113,845.

Comparable’s GIM ________ x $113,845 = ________

Using the cost approach the value for the subject prop-erty is $701,484.

Using the income approach the value for the subjectproperty is $631,399.

Using the sales comparison, or market approach, whatamount do you think is the best indication of value forthe subject property?

$_____________________

Examining the three values noted above for the cost,income and sales comparison, or market approach,what amount do you think would be the best indicationof value for the subject property?

$_____________________


A-13 Answer key

Unit 3

Review Questions

1 T or F When using the sales comparison, or market approach,one never adjusts the subject.

2 T or F The formula for the GIM is the gross rent divided bythe sales price.

3 T or F Make a minus adjustment to your comparable if it isinferior to your subject.

4 T or F If the market is showing an annual increase of 3percent, a sale occurring 2 years ago would have aminus adjustment of 6 percent.

5 T or F The GIM is a unit of comparison in the incomeapproach to value.

6 T or F The property most comparable to the subject is thecomparable with the least number of adjustments.


A-14 Answer key

Exercise 4-1IRV FormulasUsing the IRV formula, complete the following questions.

1 A parking lot recently sold for $300,000. The parking lot has 100parking spaces, each renting for $25 per month. Allowableexpenses are $6,000 annually. What is the capitalization rate?

____________________

2 A parking lot provides its owner with a net annual income of$27,400. The appropriate capitalization rate is 9.35%. Whatis the value of this parking lot?

____________________

3 The capitalization rate for an office building is 11.3%. Thisbuilding recently sold for $452,600. What is the net annual income?

____________________

4 An apartment building recently sold for 375,700. The net annualincome for this building $53,428. What is the capitalization rate?

____________________

5 An apartment building has 20 units that rent for $350 per month.The allowable expenses are $25 per unit, per month. Thecapitalization rate is 12.54%. What is the value of thisbuilding?

____________________

6 A gravel parking lot recently sold for $267,900. The discount rateis 9.25%, the recapture rate is 2.54%, and the effective tax rate is2.00%. What is the parking lot’s net annual income?

____________________

.0800 or 8% R = I 24,000 100 x 25 x 12 = 30,000 V 300,000 - 6,000

NI 24,000

$293,048 V = I 27,400 = 293,048 R .0935

$51,144 I = R x V 452,600 x .113

.1422 or 14.22% R = I 53,428 V 375,700

$622,010 V = I 78,000 350 325 x 12 x 20 = $78,000 R .1254 - 25

325/mo/apt

9.25% (.0925) + 2.00% (.02) = 11.25%

$30,139 I = R x V 267,900 x 11.25%


A-15 Answer key

9.35% (.0935) + 2.54% (.0254) = 11.89%

8.15% (.0815) + 2.50% (.025) = 10.65%

Unit 4

Review questions

1 What is the formula for the income approach?

____________________

2 A 100-space gravel parking lot rents for $30 a month per space.The effective tax rate is 2.54%, the discount rate is 9.35%, and therecapture rate is 3.00%. What is the value of the parking lot?

____________________

3 A 2-story commercial building has a value of $960,000. Thebuilding provides its owner with a monthly net income of $6,000per floor. This is well in line with similar properties. What is thebuilding capitalization rate?

____________________

4 Land used as a gravel parking lot recently sold for $270,000. Therecapture rate is 3.25%, the discount rate is 8.15%, and theeffective tax rate is 2.50%t. What is the net income of this parkinglot?

____________________

5 A 12-unit apartment building has (6) 1-bedroom units, (4) 2-bedroom units, and (2) 3-bedroom units. The 3-bedroom unitsrent for $400 a month, the 2-bedroom units rent for $350 amonth, and the 1-bedroom units rent for $275 a month. Similarproperties in the area have recorded their monthly income to beat $3500 a month. What is the potential gross income of this12-unit apartment building?

____________________

100 x 30 x 12 = 36,000 = $302,775 11.89%

10.65% x 270,000 = $28,755

3,500 x 12 = $42,000

I

R x V

6,000 x 2 = 12,000 x 12 = $144,000 15% 960,000


Unit 4


Match these terms to the correct definition. Some terms may requiremore than one definition.

___ Potential gross A Recapture rateincome

___ Land capitalization B Mortgage interestrate

___ Unallowable C certain amount set aside over aperiod expenses of time for wear andtear items to be replaced

___ Building D Effective tax ratecapitalization rate

___ Reserve for E Real estate taxesreplacements

F Based on 100 percent occupancyusing economic rent versus contractrent

G Discount rate

F

D and G

B or E

A, D,

and G

C

A-16 Answer key


Unit 5 Exercise5-1 worksheet — Cost factor study

Sale Sale Lot Building Manual CostNumber Age Price Value Residual Value Factor

1 N $104,000 $17,000 $87,000 $82,300 1.062 N 97,700 17,000 ________ 78,400 _____3 N 67,800 10,500 57,300 54,500 1.054 N 62,900 8,000 ________ 51,800 _____5 N 85,600 15,500 70,100 63,700 1.106 N 89,200 16,000 ________ 63,100 _____7 N 80,300 16,000 64,300 61,200 1.058 N 88,300 16,500 ________ 69,000 _____9 30 53,500 8,000 45,500 47,900 .95

10 N 93,100 16,500 ________ 72,100 _____11 N 76,700 15,500 61,200 58,300 1.0512 N 86,500 16,000 ________ 66,500 _____13 44 67,900 11,000 56,900 59,300 .9614 N 92,700 16,000 ________ 69,500 _____15 12 72,400 11,000 61,400 60,200 1.02

Rank1 _______

2 _______

3 _______

4 _______

5 _______

6 _______ 1.06 + 1.06 = 2.12

7 _______ 2.12 ÷ 2 = 1.06

8 _______ Median = 1.06

9 _______

10 _______

11 _______

12 _______

13 _______

14 _______

15 _______

80,700 1.03

54,900 1.06

73,200 1.16

71,800 1.04

76,600 1.06

70,500 1.06

76,700 1.10

A-17 Answer key

1.03

1.04

1.05

1.05

1.05

1.06

1.06

1.06

1.06

1.10

1.10

1.16

}

Note: Sales 9, 13, and 15 are not used because theproperties are over one year in age.


Unit 5

Review questions

1 What are the three types of depreciation? Place a next tothe one that is generally incurable.

____ ____________________________________

____ ____________________________________

____ ____________________________________

2 What is the purpose of a cost factor?

____________________________________________________

____________________________________________________

3 What is a mass appraisal system?

____________________________________________________

____________________________________________________

Physical

Functional

Economic

To adjust the IRPAM’s values to the local labor and material

rates.

The valuation of many properties as of January 1 of the

assesment year, using standard procedures that provide

uniformity.


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A-20 Answer key


A-21 Answer key

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A-22 Answer key


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A-24 Answer key


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Unit 6

A-26 Answer key

Review questions1 What type of quality does the quality grade factor “D”

represent and what is the factor applied from the schedules?

_________________________________________________

2 A local assessor notices that an improvement has been greatlyneglected and its physical condition is extremely poor. He orshe notes that this particular improvement was originally builtwith excellent materials and workmanship. Which one of thefollowing will the assessor adjust?

____ Cost

____ Quality grade

____ CDU rating used to determine the REL factor

3 Quality grade refers to the

_________________________________________________

4 T or F You need to make an adjustment if an improvementhas 5 plumbing fixtures.

5 T or F A frame house of 1000 square feet on a slab willnot have an adjustment for a basement.

6 T or F All detached garages are calculated using theSummary of Other Buildings section on the PRC.

7 T or F PRC-2 is used for calculating land values.

8 T or F The quality grade is used to determine a REL factor.

9 T or F To compute the value for an enclosed frame porch of60 square feet and an enclosed frame porch of 40square feet, you should add the square footage of theporches together and price out a porch of 100 squarefeet from the cost tables.

Cheap quality 82% or .82

Quality of materials and workmanship.


Exercises 7-1 and 7-2 worksheet 4-3-2-1

65/35 Rule Theory

35%

A100’

65%

10%

20%

30%

40%

10%

20%

30%

40%

90%

70%

100%

25’

25’

25’

25’

Exercise 7-2

Using the 4-3-2-1 theory,determine the value of theparcel segments.

100’ 100’ 100’ 100’

10%

20%

30%

40%

100%

C

150’150’

10%

20%

30%

40%

Depth $100/FF100’ _________75’ _________50’ _________25’ _________

B

4-3-2-1 Theory

A B C D

Exercise 7-1

Compute the values for the three parcelsabove, with a standard depth of 100’, if thefront foot value is $100/FF.

100’

25’

25’

25’

25’

10%

20%

30%

40% 40%

$100/FF

A _________B _________C _________

$ 9,750 (150’ X $100/FF X 65%)

$ 5,250 (150’ X $100/FF X 35%)

$15,000 (150’ X $100/FF)

$10,000 (100’ X $100/FF)

$ 9,000 (100’ X $100/FF X 90%)

$ 7,000 (100’ X $100/FF X 70%)

$ 4,000 (100’ X $100/FF X 40%)


Exercise 7-4Calculating FF values and SF values

Calculate the FF values and the SF values for lots 024 through 029.

The depth for a standard lot is 120’The FF value is $140/FFThe SF value is $.80/SF




Lot 029Lot 028

Lot 027

Lot 026Lot 025Lot 024

75’ 80’ 80’ 60’ 100’

130’ 120’ 120’ 75’

100’

80’

10,9207,800

11,2007,680

7,2803,840

3,9203,840

8,0645,280

12,4257,600

Lot 02475 x 140 x 1.04 =10,920

75 x 130 x .80 =7,800

Lot 02580 x 140 = 11,200

80 x 120 x .80 =7,680

Lot 02580 x 140 = 11,200

80 x 120 x .80 =7,680

Lot 02475 x 140 x 1.04 =10,920

75 x 130 x .80 =7,800

Lot 02680 x 140 x 65% = 7,280

80 x 120 2 x .80 = 3,840

Lot 02780 x 140 x 35% = 3,920

80 x 120 2 x .80 = 3,840

Lot 02860 x 140 x .96 =8,064

600 + 6,000 = 6,600x .80 = 5,280

Average depthis 110’

Lot 02975 x 140 x .91 = 9,55525 x 140 x .82 = 2,870

12,425

100 x 80 x .80 = 6,40075 x 20 x .80 = 1,200

7,600


Exercise 7-5Site unit of value

You are appraising a subdivision that began to be developed 10years ago. Now it is nearing the end of its development life cycle.Approximately 70 percent of the sites are interior sites, lots withtrees, and sites with level terrain. The remaining 30 percent consistsof corner sites, sites with no trees, and sites with rolling terrain. Itappears that the market responds to differences in location andphysical features.

The seven sales below have been verified as arm’s length transac-tions. Using the market data, determine the contributory value fortime, location, and physical features.

Site Sales price Sale date Size Location Physical features

1 $ 9,000 Current 75 x 200 Interior Level - trees

2 $ 8,500 Current 75 x 200 Corner Level - trees

3 $ 10,000 Current 75 x 200 Interior Rolling - trees

4 $ 9,000 1 year ago 75 x 200 Interior Rolling - trees

5 $ 8,000 Current 75 x 200 Interior Level - no trees6 $ 6,500 1 year ago 75 x 200 Corner Level - no trees

7 $ 7,500 Current 75 x 200 Corner Level - no trees

1 Based on the above sales, a site that sold today is worth$____________ more than a site that sold a year ago.

2 A site that is on rolling terrain is worth $____________ morethan a site on level terrain.

3 A site that has trees is worth $____________ more than a sitewithout trees.

4 An interior site is worth $____________ more than a corner site.

A-29 Answer key

1,000(3 & 4 — 6 & 7)

1,000(1 & 3)

1,000(1 & 5 — 2 & 7)

500

(1 & 2 — 5 & 7)


A-30 Answer key

Unit 7

Review questionsMatch these terms with the correct definition.

___ “65-35 Rule” A as vacant and at its highest and best use.

___ “4-3-2-1 Theory B based on the premise that the utility of aright-angle triangular shaped lot isaffected by its shape.

___ Front foot C the first 25 percent of depth of a lotrepresents 40 percent of the total lotvalue; the second 25 percent of depthrepresents 30 percent of the lot value;the third 25 percent of depth represents20 percent of value; and the fourth 25percent represents the final 10 percentof the lot value.

___ Depth table D a strip of land 1 foot wide runningfrom the front to the rear of the lot.

___ How land is E based on the assumption that the frontvalued portion of the lot is more valuable on a

unit basis than the rear portion.

___ b x h F unit value 2

___ SP G area of a triangular-shaped lot. #units

B

C & E

D

E

A

G

F


A-31 Answer key

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4611

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709,

903


Unit 8

Review Questions

1 T or F Permanent pasture is the most productive type offarmland.

2 T or F Aerial base photo maps provide a complete, visualrecord of all real property.

3 T or F Farm homes and homesites are not equalized.

4 T or F Farmland is valued according to the type of cropsproduced.

5 T or F A soil identified as 50D3 does not have any erosion.

6 T or F The Department of Farm and Home certifies allfarmland values.

A-32 Answer key


28.72 .15

41.18 12.46

12.89

34.62 5.90

.31

17.50 11.22

2.58

32.65 3.93

0.00

28.00 .72

.36

50.52

Exercise 9-1 worksheet

Assessment/sales ratio study and determining a COD

Assessed value Sale price Sales ratio % Median Deviation %$10,000 $35,000 28.57 _________ _________

17,500 42,500 ______ _________ _________

1,900 12,000 15.83 _________ _________

9,000 26,000 ______ _________ _________

9,000 31,000 29.03 _________ _________

1,400 8,000 ______ _________ _________

7,200 23,000 31.30 _________ _________

8,000 24,500 ______ _________ _________

5,600 19,500 28.72 _________ _________

14,000 50,000 ______ _________ _________

19,000 67,000 28.36 _________ _________

Sum of deviations _________ Sale ratios

ranked Formulas

1 ________ Sales ratio = assessed value x 100(%) sales price

2 _________Deviation = sales ratio - median*

3 _________Average deviation = sum of deviations

4 _________ # of sales

5 _________ COD = average deviation x 100(%) median

6 _________*Ignore plus or minus signs when

7 _________ subtracting the median from the sales ratios.

8 _________

9 _________

10 _________

11 _________

15.83

17.50

28.00

28.36

28.57

28.72

29.03

31.30

32.65

34.62

41.18

50.52 = 4.59 11

4.59 x 100 = 15.98%28.72


Unit 9

Review questions

1 T or F Equalization means a factor is applied to eachjurisdiction so that all jurisdictions are assessed atthe same average percentage of market value.

2 T or F A sales ratio study is used to determine thepercentage of homes that have sold during acertain period of time.

3 T or F The state equalization factor is always 1.0000.

4 T or F Only jurisdictions with a COD of 16 qualify forthe bonus.


A-35 Answer key

Supplemental exercise

1 As of January 1, the township assessor had determined that aresidential improvement was 60% completed; the RCN was$95,000 and the land value was $15,000. The assessment levelfor this township is the statutory level. The AV for the landwould be $____________. The AV of the improvement would be$____________.

This improvement was inhabited and fit for occupancy. TheCCAO assessed this property as of May 1 (Julian date 121),using $95,000 for the MV and $15,000 for the land value.Assessing at the statutory level, the AV for the land would be$____________. The AV for the improvement would be$____________.

2 On September 24 (Julian date 267), fire damaged a downtowncommercial building. The official damage report placed an 80%loss on the structure. The MV as of January 1 was $240,000 andthe site value was $36,500. The board of review (assessing at thestatutory level of 33 1/3%) places an AV of $____________ onthe land and an AV of $____________ on the improvement.

5,000 18,998

15,000 x 33.33% = 4,999.50 95,000 x 60% = 57,000 57,000 x 33.33% = 18,998.10

5,000 27,500

57,000 x 120 = 18,739.72 18,740 365 63,767 18,740

82,507 63,76795,000 x 245 = 63,767.12 82,507

365 x 33.33%(365 - 120 = 245) 27,499.50

12,16562,635

36,500 x 33.33% = 12,165.45 174,904 + 13,019

240,000 x 266 = 174,904.10 (1-1 through 9-23) 187,923 365 x 33.33%

62,634.74240,000 x 20% = 48,000 x 99 = 13,019.18 (9-24 through 12-31)

(80% loss) 365


A-36 Answer key

Unit 10

Review questions

1 T or F Instant assessments means the assessor will comeout the instant you call and request that yourproperty be appraised.

2 T or F Section 9-175 contains provisions for instantassessments.

3 T or F Property owners do not need to fill out any forms orapplications.


A-37 Answer key


1 Name the entity that has the final approval authority for allnon-homestead exemptions.

_______________________________________________

2 List three different types of non-homestead properties that areconsidered exempt.

a ____________________________________________

b ____________________________________________

c ____________________________________________

3 Last year’s board of review for County ABC is still in sessionon February 15 of this year. A religious organization acquiresproperty on February 1 of this year and files an application fora non-homestead exemption on February 15 of this year. Doesthis board have the power to consider this application? Whyor why not?

_____________________________________________________

_____________________________________________________

_____________________________________________________

Illinois Department of Revenue

All property donated by the U. S. for school property.

Property used exclusively for religious purposes.

Property belonging to the state of Illinois.(any listed on Page 11-2.)

No. Only a board in session for this tax year can

consider and determine exemption applications for this year.


A-38 Answer key

Unit 12

Review questions

1 What do you feel is the most important duty of the board ofreview?

____________________________________________

____________________________________________

____________________________________________

____________________________________________

2 List two reference sources for board of review members.

____________________________________________

____________________________________________

No correct answer, opinion only.

Illinois Real Property Appraisal Manual (IRPAM)

Property Tax Code

Documents

BOR Course