delivered the opinion of the court :
Thе decision of the Property Tax Appeal Board in this tax assessment case was reviewed by the circuit court of Sangamоn County under the Administrative Review Act (Ill. Rev. Stat. 1967, ch. 120, par. 592.4), and comes directly here pursuant to the constitutional grant of jurisdiction. (Const. of Ill., art. VI, § 5.) At issue is the circuit court’s revaluation of real property, based upon its finding “That in determining the fair market value of land, it is proper to consider the effect on market value of an unfavorable lease.”
The two parcels involved are held in trust by Springfield Marine Bank. In 1952 the bank’s predecessor in title subjected the property to long-term leases which have remaining terms оf approximately ten years. The value of the property has advanced significantly since the leases were negotiated, and the contractual rent is consequently substantially below that which could now be obtained under new leases. The assessor, the Sangamon County Board of Review, and the State Property Tax Appeal Board uniformly refused to reduce the assessed value of the land to reflect the effect of the unfavorable leases. The Appeal Board did, however, aсcept the conclusions of the appraiser who testified for the bank as to the value the land would have apart from the leases and reduced the assessed value accordingly; it, however, rejected the argument that a still lower value wаs required because the leases affected “fair cash value”. The same appraiser’s conclusions guided the circuit court, except that the court adopted the lower figures arrived at through consideration of the leases. We are therefore squarely faced with the question whether the assessed value was properly reduced to account for thе unfavorable leases. It is our conclusion that the circuit court’s reduction of the assessed valuation was erroneous, and its judgment must be reversed.
The plaintiff points out that in certain circumstances, where the owner of land is exempt from taxation, provisions exist whereby the value of a leasehold estate in land may be assessed against the nonexempt lessee. (Ill. Rev. Stat. 1967, ch. 120, pars. 500.6 and 507; see, e.g., People ex rel. Korzen v. American Airlines, Inc.,
Plaintiff further contends that even if the leasehold is not sepаrately assessable against the lessee, the value of the leasehold should nevertheless be deducted from the value of the property assessed against the owner-lessor. It is proposed-that the lessee’s “profit” — i.e., the increment between the contractual rent and the rent which could be obtained upon a newly negotiated lease — should be deducted from thе value of the property in determining its assessed value. As indicated by the appraiser testifying for plaintiff, this would yield a valuation of the property based upon capitalization of admittedly low rental income.
The Revenue Act provides that “Each tract or lot of real property shall be valued at its fair cash value, estimated at the price it would bring at a fair, voluntary sale.” (Ill. Rev. Stat. 1967, ch. 120, par. 501(1).) We have consistently construed “fair cash value” to mean “what the property would bring at a voluntаry sale where the owner is ready, willing and able to sell but not compelled to do so, and the buyer is ready, willing and able to buy but not forced so to do * * (People ex rel. McGaughey v. Wilson,
Since the evidence before the State Property Tax Appeal Board in this case amply justified the Board’s assessment on this basis, we find that the circuit court was incorrect in concluding that the Board’s determination was contrary to the manifest weight of the evidence. Therefore, we reverse the judgment of the Sangamon County circuit court and remand with directions to reinstate the assessment approved by the State Property Tax Appeal Board.
Reversed and remanded, with directions.