Township Multipliers are, at times, necessary to equalize properties. As required by the Illinois State Law, real estate transfer declarations are completed on all properties with an exchange of money. Each declaration shows the sales amount and the prior year assessed value and is sent to the Illinois Department of Revenue to compute a sales ratio.
In order to compute a sales ratio, the current sales price is divided by the prior years assessed value. (i.e. 2015 sale divided by the 2014 assessed value). The required sales ratio is 33.33%. If more sales ratios are lower than 33.33%, a positive township multiplier is required. If more sales ratios are above 33.33%, a negative township multiplier is required. A three year average is used by the Department of Revenue to calculate 2015 township multipliers.
If township multipliers are not applied correctly, state multipliers may be applied by the Department of Revenue to all properties in the county.