in illinois - Illinois REALTORS

PROPERTY TAXES...
KNOW YOUR RIGHTS
As a homeowner, there are some important things to know
about taxes on real property and about property tax bills in order
to ensure that your property is assessed appropriately and fairly.
This brochure will help you understand what is involved in the
property taxation process and your rights.
This brochure is intended for property owners in all Illinois
counties except Cook County.
Read inside to learn more.
PROPERTY TAXES
IN ILLINOIS
KNOW YOUR RIGHTS
THE BASICS YOU SHOULD KNOW
Source: Illinois Department of Revenue, www.ILtax.com
Property Tax Relief
What role do property taxes play?
Approximately 6,900 local governments in Illinois (e.g. municipalities,
townships, counties, schools, park districts) use property taxes to
finance the majority of services that they provide to their citizens.
The largest share of property taxes (62 percent) goes to school districts
for elementary and secondary education.
What is Illinois’ property tax cycle?
The property tax cycle in Illinois generally extends over a two-year
period. A tax year is the year of the assessment and reflects the value
of real property as of January 1st of that year. The actual tax bills are
paid in arrears, i.e., one year after they are assessed. For example,
taxes on a 2007 assessment are paid in 2008. Generally, property
taxes are paid in two installments each year.
If you have established an escrow for the payment of property
taxes with your lender, send a copy to the lender and keep a copy for
yourself. You should check with the lender twice each year to verify
that your lender is paying your tax bill out of escrow.
How is real property assessed in Illinois?
The required assessment level for tax purposes on any parcel of real
property in any county except Cook County is 33 1/3 percent of the
property’s Fair Market Value, excluding farmland and farm buildings.
Will I be notified if my assessment is going
to change?
Yes. Every four years when all property is reassessed, a complete
list of assessments must be published for notification purposes.
In addition, taxpayers must receive a mailed notice of any changes
in their assessment from the previous year.
Reasons property assessments may increase:
• The property values in the area are increasing.
• Improvements were made to the property (e.g., an addition
to your home; extensive remodeling; a new deck or patio).
• The property was under-assessed in relation to other properties
and this error has been corrected.
• The property has a homestead exemption that has been removed.
State law states that a portion of the value of owner-occupied
property is exempt from taxation. There are various exemptions that
you should be aware os and may qualify for.
CHALLENGING THE ASSESSMENT
ON YOUR PROPERTY
How can I tell if the assessor has placed a fair
value on my property?
There are a few things that can be done to quickly determine
whether your assessment is fair. Make sure that the obvious
information about your property is accurate (e.g. size of home, correct
square footage). Then compare the assessed value of your property
with similar properties in your neighborhood to determine uniformity
in assessments. Contact a local REALTOR® for assistance in reviewing
the fair market values and assessed values of other properties and
for preparing a “comparable.” Data on comparable properties can
be obtained at the assessor’s office. This type of evidence will be
necessary should you choose to file an appeal and show that your
property is over-assessed.
How do I file an Assessment Appeal?
You can obtain the appropriate appeal forms from the County
Supervisor of Assessment or Chief County Assessment Officer.
Upon completion, the forms are sent to the County Board of Review.
Generally, state law and local policy provide that an appeal must be
filed within 30 days of the Notice of Assessment Change. Make sure
that substantial evidence (such as the “comparables”) accompanies
your submission of the forms.
Keep in mind that with a new law that was passed in 2010,
foreclosures and “short sales” must be taken into account by the
Board of Review in the review of property tax assessment appeals.
Property owners will be able to use the most current and accurate
information on property values that is available to them, including
information about properties sold in a foreclosure process.
General Homestead Exemption
• Up to $6,000 reduction in assessed valuation available.
• Must live in the property on or before January 1st of the tax year.
• The property must be owner occupied or a qualifying lease in which
the lessee is responsible for the taxes.
• The property must be principal residence.
• If the property is sold, the new qualifying owner must apply after
January 1st for the next tax year.
Senior Homestead Exemption
• Up to $4,000 reduction in assessed valuation. This amount will
increase to $5,000, starting in taxable year 2013.
• Must be 65 years of age or older during the tax year.
• The property must be the principal residence.
• Exemption prorated to the date the owner is eligible.
Senior Assessment Freeze
• Freezes the assessed valuation at the level of the qualifying year.
• Must be 65 years of age or older during the tax year.
• Must have a total household income of $55,000 per year or less.
• Must apply and qualify every year to retain freeze.
Other Exemptions and Assistance Programs
Available:
Contact the County Supervisor of Assessments or Township Assessor
for information and assistance about additional programs, including
the Home Improvement Exemption and exemptions for disabled
homeowners and returning veterans.
For more information on appeals, visit the Illinois Department of
Revenue’s Web site, www.revenue.state.il.us/LocalGovernment/
PropertyTax/appeals.htm.
When purchasing property, it is important that you know the property tax amount that has most recently been paid on the property. You should also be aware
of whether or not the seller’s tax bill includes these exemptions. Some of the exemptions may or may not apply to you as the new owner.
To obtain forms for appeals, contact your county Board of Review. For more information on your property assessment, contact your township assessor.
Item #1014 | Rev 6/13