Illinois law requires that the estimated property value and assessed valuation of your property be periodically updated for real estate tax purposes. In Cook County, it is done every three years.
How Residential Property is Valued
Cook County is divided into three assessment areas: City, North, and South. The Cook County Assessor’s Office uses a computer-assisted mass appraisal method to value residential properties. It compares several different components, including, but not limited to: sales of comparable properties, land, location, building square footage, and construction type. Residential properties are assessed as of January 1 of the current year, using three to five years of prior sales info (using multiple sale years increases the stability of market value predictions).
How do comparables work?
The city reviews all sales within the same neighborhood and estimates a market value by assigning values to the individual building characteristics of sold properties. The market values of all properties (sold and unsold) are determined by using the value estimates. Adjustments are then made for disparities (age, size, quality of construction). Any necessary final adjustments are made to ensure a fair and uniform assessment of all residential properties.
What if my home is compared to a tear down?
A tear down sale is property bought for the value of the land. The house is typically torn down to make way for new construction on the lot. Typically city analysts will study sales over the last five years to determine if a new construction property is the result of a tear down. Sometimes, a teardown sale is found. When that happens, it is deleted from the sales comparison model. The new property will then be valued using the new building’s characteristics and valued according to its new size and class. These tear down homes are excluded from the overall sales pool to ensure uniformity and fairness. The Cook County Assessor’s office encourages homeowners to review their property assessment in comparison to similar properties on the office’s website. Access the “Online Tool” icon, then click onto “Residential Property Search.”
Your Assessed Valuation and Property Taxes
The local governments providing services in your community are the ones determining the overall amount of real estate taxes to be collected. Local governments include: the municipality, school, park, and library districts. Be aware of any proposed increases in spending by your local governments as increased spending will likely increase your property taxes.
How is my tax bill calculated?
Get ready to be confused as Chicago property taxes are very confusing! First, the Cook County Assessor determines the Market Value of your property. Then they divide it by 10 to come up with your Assessed Value. They then multiply that number by an Equalization Factor to determine your Equalized Assessed Value. Then they subtract your Homeowner Exemption (assuming you remembered to file for it). Then they multiply by the Tax Rate to determine your Property Taxes. Overall, property taxes in Illinois average about 2.28 percent of a home’s value.
Below is an example of an estimated tax bill:
When are property taxes paid?
In Chicago, we pay our taxes in arrears meaning in 2015 you will get your property tax bill for 2014. Basically, we pay taxes one year late. The tax bill is broken down into two installments: one in the spring and one in the fall. In the spring installment, you pay 55% of the previous year’s tax bill. Then in the fall, you pay the remainder of the tax bill.
What services are included in the cost of your property taxes?
According to the Illinois Department of Revenue, 62% of local property tax revenue goes to school districts for education. Property taxes also cover trash and recycling pick up.
Do you have more questions regarding property taxes or your tax assessment, contact us!
Source: Cook County Assessor
