Find Legal Information

SECOND DIVISION

September 24, 2002

JUSTICE CAHILL delivered the opinion of the court:

We consider whether the Illinois Property Tax Appeal Board (PTAB) violated its rules whenit considered an appraisal report dated two years earlier than the date of assessment at issue. Weconclude that consideration of the appraisal report does not violate PTAB rules. Further, PTAB'sorder adjusting assessed value is not against the manifest weight of the evidence. We affirm.

Sears, Roebuck and Company (Sears) owns three parcels of property in Cook County. In1997, the Cook County assessor's office determined that the parcels had a fair market value of$11,398,021. Sears filed an unsuccessful appeal of the fair market valuation with the Cook CountyBoard of Review (Board of Review). Sears appealed the Board of Review's decision to PTAB. Sears submitted an appraisal report dated January 1, 1995, in support of the appeal. The reportconcluded that the fair market value of the property was $7,500,000.

The Board of Review submitted a valuation report generated by the Cook County assessorthat assigned an $11,400,000 fair market value as of January 1, 1997. Documents relating to theCook County classification ordinance (Cook County Real Property Assessment ClassificationOrdinance, Ord. No. 80-0-14 (amended November 6, 1997)), and the use of sales ratio studies werealso submitted.

Robert Herman, author of the 1995 appraisal report, testified for Sears. Herman testified thathis report considered the three traditional approaches to value: (1) cost; (2) income capitalization;and (3) sales comparison. Herman explained how he calculated fair market value under eachapproach. Herman said he calculated $7,810,000 under the cost approach, $7,250,000 under theincome approach, and $7,460,000 under the sales comparison approach. These values werereconciled to reach a fair market value estimate of $7,500,000. Herman testified that he inspectedthe property on March 1, 2000, and found no significant changes. Herman also said that, because1995 was the triennial assessment year, the market determination for 1995 would be relevant for theassessment period, which included 1995, 1996 and 1997.

Cook County presented no testimony and relied on a valuation report generated by theassessor's office. The report was prepared by an employee who did not inspect the property. Thereport addressed only the income and sales approach but did not include the cost approach andconcluded that the fair market value of the property was $11,400,000. No witnesses testified forCook County.

Gary Battuello testified on rebuttal for Sears. Battuello is a partner in a real estate appraisaland consulting firm. Battuello reviewed the assessor's valuation report and concluded that the reportwas incomplete, inconsistent and relied on inadequate or misstated facts. Battuello also criticizedthe comparables used, finding them incompatible to the Sears property. Battuello said that thereport's conclusions were unreliable.

PTAB found that the date of assessment at issue was January 1, 1997, and that the triennialassessment date was January 1, 1995. PTAB concluded that Sears established that the property wasoverassessed. PTAB noted that the best evidence of value was presented by Sears and accorded littleweight to the valuation report. PTAB concluded that, based on the evidence, the property had amarket value of $7,500,000. The assessed value of the property was reduced from $3,903,701 to$2,584,187. Cook County appealed.

PTAB decisions are subject to direct appellate review where, as here, a change in assessedvaluation of $300,000 or more is sought. 35 ILCS 200/16-195 (West 2000). Our review is inaccordance with Administrative Review Law (735 ILCS 5/3-101 et seq. (West 2000)). 35 ILCS200/16-195 (West 2000); Oregon Community Unit School District No. 220 v. Property Tax AppealBoard, 285 Ill. App. 3d 170, 674 N.E.2d 129 (1996).

Cook County first argues that PTAB violated its own rules when it accepted and relied ona 1995 appraisal to determine fair market value for 1997.

The scope of PTAB's power and authority is a question of law we review de novo. GenevaCommunity Unit School District No. 304 v. Property Tax Appeal Board, 296 Ill. App. 3d 630, 633,695 N.E.2d 561 (1998).

The contesting party bears the burden of providing "substantive, documentary evidence orlegal argument sufficient to challenge the correctness of the assessment" in a PTAB appeal. 86 Ill.Adm. Code