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