PTAB or circuit court? Which option is best for you?

The state’s Property Tax Appeal Board and the circuit court both offer taxpayers recourse after an unsuccessful board of review appeal. However, picking the wrong forum could have serious consequences!

By James W. Chipman

Taxpayers may believe they have two equally viable appeal options in the Property Tax Appeal Board (PTAB) and the circuit court when challenging a board of review appeal. However, each venue has its pros and cons -- choosing one over the other depends on the facts of each individual case.

Here are eight factors that taxpayers should take into consideration:

Jurisdiction

The PTAB is limited to hearing arguments about assessments while the circuit court has much broader authority to determine assessments, taxes, and levies.

Burden of proof

The circuit court presumes that assessments are correct and legal and taxpayers may only overcome that burden by presenting clear and convincing evidence.* PTAB decisions are made based on “equity and the weight of evidence”.** In appeals where market value is being challenged, the burden of proof is a mere preponderance of the evidence*** but where uniformity of assessments is contested, it’s clear and convincing evidence.****

Payment of taxes

While the PTAB doesn’t require the payment of taxes before filing an appeal taxpayers are still obligated to pay them when they come due whether or not the PTAB has issued its decision. Taxes must be paid in full before going to circuit court. If taxpayers prevail in either forum, over payments will be refunded with interest.

Resolution time

PTAB appeals must be filed months before circuit court cases but that doesn’t mean taxpayers get quicker resolutions from the state agency. Since the PTAB is dependent on legislative appropriations each year, budget and staffing restraints impact its turnaround time.

Increased assessments

Both forums can raise assessments on their own initiative, but it’s most likely to occur at the PTAB because of taxing body participation.

Formality and fees

The PTAB has always fashioned itself as a “poor man’s court” where rules of pleading, practice and evidence are relaxed where practicable, and filing fees aren’t required. That’s not the case in circuit court where upfront filing fees can run hundreds of dollars and taxpayers must abide by strict procedural rules.

Taxing body participation

Taxing bodies can intervene in PTAB taxpayer initiated appeals and even file appeals on their own behalf if they have “a revenue interest in the decision of the board of review.”***** Once a taxing body becomes a 3rd party in a PTAB appeal, it can submit evidence, seek increased assessments, and block settlement agreements reached by taxpayers and boards of review.

Prior rulings

Circuit court and PTAB precedent may differ on how a case with the same facts gets decided. One forum may favor a certain taxpayer position that the other one opposes.

Bottom line: When it comes to choosing your next appeal option, you can’t just flip a coin or roll the dice! It’s best to weigh the pros and cons of a multitude of factors.

For advice on determining whether the PTAB or the circuit court best suits your specific needs, contact Jim at JWChipman@GCTSpringfield.law or 217.280.5518.

Sources:
*35 ILCS 200/23-15(b)(2)
** 35 ILCS 200/16-185
*** Winnebago County Board of Review v. Property Tax Appeal Board, 313 Ill.App.179(2d Dist. 2000)
**** Kankakee County Board of Review v. Property Tax Appeal Board, 131 Ill.2d 1(1989).
***** 86 ILL. ADMIN. CODE tit 86, §1910.60(b)&(d)(1)