Archive for category: News

Property Tax, Pension, and School Funding Debate – Cook County
The Cook County property values in 2015 recorded an upward swing. This raises tax liability for property owners proportionately. According to Cook County Clerk David Orr, property values in Cook County increased by 1.8 percent in 2014; the first increase since the 2008 recession. In the last five years, Cook County has raised the amount of property tax. Critics have argued that the rate at which property tax increases is faster than the land appreciation rate eating away disposable income for most households.
Cook County Property Tax
Property Bill 2015 has created a heated debate over the last two months. The bill will see the average homeowner pay an additional $89.44 in property tax, representing a 2.28 percent increase. The average total property tax for the average homeowner is estimated to reach $3,326.55. The increase will vary across Cook County. In the northern half, the percentage increase is less than 2.4 percent. However, the tax bill will remain higher given that property values are higher in this region than any other part in Cook County. The increase is estimated to rise from $155.49 to $6,544.09 in the region. Southern suburbs will see an average decline of $51.33 in property tax compared to last year. The region was reassessed recently, and Cook County proproses a levy of $4,850.23 representing a reduction of 1 percent.
What this implies is that your property tax, calculated as a percentage of your home’s value, is declining by 6.81% and 13.05% in Chicago and the southern suburbs, respectively. However, this is only a theoretical calculation. In practice, the actual property tax levied will rise regardless of the family income even if it remained constant.
School Funding
Land value rose in the city by 4 percent in 2015. Expiration of the Chicagos’ huge Near South Tax Increment Financing District is responsible for the hike. It collected a total of $65 million in property tax that was used for Tax Increment Financing (TIF) purposes in 2014. In the future, the $65 million will be channeled to the regular tax pot. This means that The Cook County Public Schools will receive funds from the source. Public schools will be allowed to levy a property tax by the state’s property law.
Cook County public schools, and the city itself, face a huge demand for revenue. Spiraling pension debt will take a huge chunk of the new money. Public schools will be left with little to gather for development projects. With the loss of Tax Increment Financing (TIF), Cook County will have to look for alternative sources of fundraising for public schools that will go to development projects such as building schools, transit stations, parks, etc. In recent years, Tax Increment Financing (TIF) was responsible for funding public schools.
For now, if your home value rises, be prepared for a huge tax liability. The Alternative Homestead Exemption commonly referred to as the 7 percent Assessment Cap, has been nullified in the city, and the northern suburb with the process in the advanced stages of phasing out in the southern suburb. In 2014, the property tax levied in Cook County was $12.37 billion, up 2.16 percent from 2013. Under the new law, the increment should be less than 1 percent in 2015 due to low inflation exclusive of any Tax Increment Financing (TIF) expirations and income generated from new property developments.
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With homeowners all over the country receiving their property tax bill recently, many people will be wondering how to appeal their property assessment. With appeal deadline popping up all over, at different times for different townships, many people will also be wondering what can be done if they missed the window to appeal at the office of the Assessor.

The short answer is: not much. In fact, missed deadlines are the second most common reason for tax appeals to be rejected, right behind not enough time to commit to handling an appeal yourself, and before not having evidence. A missed window to appeal the local office of the Assessor can sink your appeal case. The first piece of advice in how to deal with a missed deadline at this office would be: Don’t. The deadline to appeal the property tax should be in the right corner of your property assessment. If you can’t find it there, you should look up your county’s deadline online.

A good rule of thumb to follow is that the first stage of appeals is due within 30 days of receiving your property’s valuation.

The first step in filing a property tax appeal is, of course, noticing that there’s a problem. Property tax is determined by multiplying the value of your home or property by a set tax rate, depending on what kind of property it is.

Some common signs of property overvaluation are:

• The price of the home is much higher than other similar properties near your home.
• Damage – County assessment information does not always take into account the condition of a property when providing an assessment, due to the quantity of properties that need to be assessed. Thus, a burned out shack could cost you the same as your two bedroom home. Make sure to check the numbers!
• Wrong description of property – Your property been described the wrong way. Often this description will add more money to the listing price than what the home is worth
• The building is not in the right location

These are just a few things that can cause a property to be overvalued, warranting an appeal. Make sure to check your paperwork. After all, to err is human, and even the IRS is made up of humans.

If you happen to have missed the window to appeal at the office of the assessor, however, all hope is not lost. First of all, a property tax lawyer may be able to contest your assessment anyway, by proving missed exemptions or factual errors by the assessor.

If you feel you have a rock solid case to appeal your tax property, but missed the deadline, consider contacting a property tax lawyer today.

In rare cases, late protests may be considered if “good cause” may be proved, including:

A missed deadline from your local assessment office

• An emergency in your immediate family
• A medical emergency
• Catastrophes or acts of God, such as hurricanes, fire, flood, or tornados

These are very rare circumstances, and hard to prove, so don’t bank on it, and double check upcoming deadlines, to make sure your appeal gets every chance to be successful.

Regardless of whether you’re appealing a case yourself or having a property tax attorney dispute the property tax overvaluation, you’ll need ample evidence.

Make sure to have:

• Your home or property’s Property Identification Number (also found on your property tax bill, or else online)
• Assessed value of other homes of a similar size in your neighborhood
• Resale value of other homes of a similar size and condition
• Photographic evidence of the condition of the house. Photographic evidence is particularly useful in the case of proving the damage caused by fire, flood, or other natural disasters. It can also prove or disprove the existence of amenities that have been added or subtracted, which may influence the value of the home, such as a pool or deck

So you don’t find yourself with a missed window to appeal at the right offices, here are some upcoming appeal deadlines in and around the Chicagoland area.

Barrington – June 22, 2015

Palatine – July 6, 2015

Hyde Park – July 16, 2015

For more questions about property taxes, appeal, or other real estate legalities, contact us today and find out how we can help.