James M. Houlihan Cook County Assessor. Cook County Property Taxes Understanding the Assessment...
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Transcript of James M. Houlihan Cook County Assessor. Cook County Property Taxes Understanding the Assessment...
James M. HoulihanCook County Assessor
Cook County Property Taxes
Understanding the Assessment Process
Role of the A
ssessor
• Produce fair and accurate property assessments
• Increase understanding and encourage public participation in the process
• Develop tax policies that provide for economic development, job creation and improved housing opportunities
Property T
ax System
• Cook County Assessor
• Cook County Board of Review
• Property Tax Appeal Board
• Circuit Court
• Illinois Department of Revenue
• Cook County Clerk
• Cook County Treasurer
Cook County Property Taxes
How to Calculate your Property Tax Bill
Property T
ax Bills
• Assessed Value• State Equalizer• Equalized Assessed Value
(EAV)• Exemptions• Tax Rate/Local Spending
Property T
ax Bills
Chicago Park District
7%
Finance Authority2% Board of Education
51%
Metro Water Rec District 5%
City of Chicago19%Forest Preserve
District1%
Cook County9%
City Colleges4%
Library Fund2%
Typical Tax Bill in the City of Chicago
Percent of Bill to Each Taxing Agency
Property T
ax Bill
Calculating T
ax Bills
$320,000 Property Value
x 10% Residential Assessment Level
$32,000 Assessed Value
x 2.9786 Equalization Factor
$95,315 Equalized Assessed Value
- $6,000 Homeowner Exemption (Minimum)
$89,315 Adjusted Equalized Assessed Value
x 5.194% Tax Rate (Sample)
$4,639 Annual Tax Amount
Cook County Property Taxes
Tax Relief through Exemptions
Exem
ptions
• Homeowner Exemption
• Senior Citizen Exemption
• Senior Freeze Exemption
• Home Improvement Exemption
Hom
eowner
Exem
ption
• Applies to principal place of residence as of January 1st of the tax year
• Subtracts from $6,000 to $26,000 in EAV
• Can result in hundreds of dollars of tax savings
• Automatically renewed
7% E
xpanded H
omeow
ner Exem
ption
Exemption limit
• $20,000 for Chicago
• $20,000 for the North
• $26,000 for the South
Exam
ples (City)
Exam
ples (City)
From the Tax Bill Calculation
Homeowner Exemption Amount $6,000
Tax Rate 5.194%
Tax Savings $6,000 x 5.194% = $311
Homeowner Exemption Amount $20,000
Tax Rate 5.194%
Tax Savings $20,000 x 5.194% = $1,038
With the 2009 Maximum Exemption
Exam
ples (N
orth Suburban)
From the Tax Bill Calculation
Homeowner Exemption Amount $6,000
Sample Tax Rate 10%
Tax Savings $6,000 x 10% = $600
With the 2009 Maximum Exemption
Homeowner Exemption Amount $20,000
Sample Tax Rate 10%
Tax Savings $20,000 x 10% = $2, 000
Exam
ples (South Suburban)
From the Tax Bill Calculation
Homeowner Exemption Amount $6,000
Tax Rate (Sample) 10%
Tax Savings $6,000 x 10% = $600
With the 2009 Maximum Exemption
Homeowner Exemption Amount $26,000
Tax Rate (Sample) 10%
Tax Savings $26,000 x 10% = $2,600
Senior Citizen E
xemption
• Additional property tax savings for seniors
• Must be 65 years or older (1944)• Applies to principal residence• Removes an additional $4,000 in
EAV• Automatically renewed
Senior Freeze E
xemption
• Freezes EAV for qualifying seniors
• Must be 65 years or older, applies to principal residence
• $55,000 or less in total household income
Hom
e Improvem
ent E
xemption
• Exempts up to $75,000 in improvements
• 4 years
• Automatic, on field check of permits
Exam
ples
Same house, same neighborhood, different tax bill?
Homeowner with 6,000 exemption
$4,639
Homeowner with 20,000 exemption
$3,912
Senior Homeowner with 20,000 exemption
& additional 4,000 Senior
$3,704
Senior with Freeze (35,000 in EAV)
$1,294
$320,000 Home
New
Exem
ptions
• Long-Time Occupant Homeowner Exemption
• Returning Veterans’ Homeowner Exemption
• Disabled Persons’ Homeowner Exemption
• Disabled Veterans’ Standard Homeowner Exemption
Long-T
ime O
ccupant H
omeow
ner Exem
ption
– Started in tax year 20072007– Assists lower income homeowners that have
been in their homes for at least ten years
– Household income of $75,000 or less
• Property’s adjusted base value can only increase by 7% for each taxable year (no exemption limit)
– Homeowners with a household income b/w $75,001 and $100,000
• The property’s adjusted base value can only increase by 10% for each taxable year (no exemption limit)
Returning V
eterans
• One-time $5,000 reduction in EAV
• Qualified veterans who return from active duty in armed conflict
• Must file application upon their return home
Disabled P
ersons
• $2,000 reduction in EAV
• Must qualify as a disabled person (Class 2)
• Must file an annual application
Disabled V
eterans
• Certified service-connected disability
• $2,500 reduction in EAV for disability of at least 50% but less than 75%
• $5,000 reduction in EAV for disability of at least 75%
• Must file bi-annual application
New
Exem
ptions
* IMPORTANT NOTE *
Property can receive only one of the Exemptions for Disabled Individuals
Cook County Property Taxes
The Valuation and Appeals Process
Triennial
Reassessm
ent
Assessm
ent Ratios
Residential 10%
Industrial 25%
Commercial 25%
Valuing R
esidential P
roperties
• Mass Appraisal Method
• 1.8 Million Parcels
• 3 to 7 years of sales
• Multiple Regression– Location– Square Feet– Type of Construction– Age
Appealing A
ssessments
• Reassessment Year– North 2010 (Now)– South 2011– City 2012
• Notice of Proposed Assessed Valuation
• 30 Days to File an Appeal with our office
Appealing A
ssessments
Residential appeals are straightforward– Error in characteristics– Similar homes in neighborhood
assessed lower
• A lawyer is not required
Appealing A
ssessments
Condominiums
• We produce a value for the whole building – then apply percentage of ownership• Joint appeal
Information
• Taxpayer Services Department312-443-7550
• Office in County Building118 N Clark Street
• Website
www.cookcountyassessor.com
James M. HoulihanCook County Assessor