Fourth District says the Property Tax Appeal Board failed to explain why billboards are taxable real property
An Illinois appeals court has revived a property owner’s challenge to the way three billboards were taxed, ordering the state’s Property Tax Appeal Board (PTAB) to take a second look. Law360 reported the decision on Oct. 19.
The case, Coe Commons, LLC v. Property Tax Appeal Board, was heard by the Illinois Appellate Court’s Fourth District. According to Law360, the court found the board did not adequately explain why it upheld assessments that treated the billboards as real property rather than nontaxable personal property. It sent the matter back for reconsideration.
What’s at stake
The dispute covers three small parcels in Rochester Township, Sangamon County. Each is about 0.02 acre and holds a single 12-by-24-foot illuminated billboard.
Coe Commons, with Larry Bielfeldt, appealed the assessments to PTAB. Its argument was that billboards are not real property and that Illinois has abolished personal property taxes. Represented by Duane Young of Young Law Partners, the owner asked for the assessments to be removed.
PTAB declined in its 2022 decision, finding no change warranted to the Sangamon County Board of Review’s assessments. The board relied on the Property Tax Code’s definition of real property, which includes structures and permanent fixtures on land.
What the ruling does and doesn’t do
This is a remand, not a final win. The appeals court did not, based on the available reporting, hold that billboards are personal property. It held that the board’s explanation was inadequate. PTAB must now revisit the question and give reasons.
That distinction matters. If the board again concludes that billboards are real property and explains why, the owner may be back where it started, with further appeals possible. If the board’s reasoning falls short again, the case could set up a broader ruling on how Illinois classifies billboard structures.
The appellate court heard oral argument Sept. 30, according to CourtListener.
Why operators should watch
Billboard owners pay property tax on structures and leased land in several states, and how a structure is classified can change the tax bill substantially. Illinois operators with assessments based on billboard structures may want to see how PTAB handles the remand. This case concerns three signs, but the classification question applies to any billboard.
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