property tax appeals: protecting your tax base and preserving your levy
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Property Tax Appeals: Protecting Your Tax Base and Preserving Your Levy. Ares G. Dalianis Franczek Radelet P.C. [email protected] 312.786.6163. Assessor. Board of Review. No Refund. Refund. PTAB. C of E. TOC. Tax Rate Objections. Property Tax Appeals Overview. Board of Review. - PowerPoint PPT PresentationTRANSCRIPT
Property Tax Appeals: Protecting Your Tax Base and Preserving Your Levy
Ares G. DalianisFranczek Radelet [email protected]
312.786.6163
Property Tax Appeals OverviewAssessor
Board of Review No Refund
Refund
PTAB C of E TOC
Tax Rate Objections
Board of Review
• $100,000 change in AV threshold for intervention
• Expedited process with truncated hearings• Pre-tax extension relief• Opportunity to fashion multi-year settlements• Possibility to preclude later PTAB filings
Property Tax Appeal Board
• $100,000 change in AV threshold for intervention• Filed within 30 days of BoR decision• 60 days to intervene (including resolution)• Full evidentiary hearing• Assessment can be decreased, increased or left
unchanged• Taxpayer relief is a refund
Tax Objection Complaints
• Assessment challenges filed in Circuit Court• Filed after 2nd installment is paid• No notice to taxing districts• Higher burden of proof• Intervention allowed with leave of court• More formal process than PTAB• Taxpayer relief is a refund
Certificates of Error
• Administrative remedy• No notice to taxing districts• Typically relate to exempt properties and
homestead exemptions• Can be used to circumvent PTAB and TOC• Significant source of refunds
Undervaluation Appeals
• Monitor high value properties (top 25)• Work with qualified appraisers• File at BoR for increase in assessment– Increase overall district EAV
• Pursue further appeals to PTAB– Successful appeal yields extra revenue for District
PTAB Caseload
10,000
20,000
30,000
40,000
50,000
60,000
2005 2006 2007 2008 2009 2010
New Cases Cases Closed Cases Pending
DuPage County Board of ReviewNumber of Complaints Filed
12,943
8,141
6,651
4,4774,519
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2007 2008 2009 2010 2011
Lake County Board of ReviewNumber of Complaints Filed
25,490
17,26816,045
9,7607,279
6,000
10,000
14,000
18,000
22,000
26,000
2007 2008 2009 2010 2011
What Is Tax Increment Financing (TIF)?
Why Is TIF So Popular?
• Almost Complete Control by the Municipality• Increased Tax Revenue• Competition with Neighboring Municipalities • Entrepreneurial Nature of Economic Development
Managing TIFs• Participate in Joint Review Boards• Monitor TIF District Expenditures• Know When a TIF District is About to Expire– One time opportunity to increase levy above CPI – What to do when a TIF District is about to expire
• Contact your tax extension official• Calculate amount of recovered TIF value• Prepare to increase levy to capture recovered TIF value
• Use of TIF Districts Began Increasing in the 1990’s– These TIF Districts May End Soon (23 Years)
Property Tax Exemptions
• Notice where exemption will reduce AV by $100,000 or more
• Must monitor exemption requests• Especially true for hospitals, not-for-profits,
and healthcare-related properties• Where appropriate, ask BoR to revoke exempt
status
Property Tax Exemptions• Charitable Exemptions for Hospitals– Provena Covenant Medical Center v. Dept. of Revenue– How much free care constitutes charity?– Decisions pending at the Dept. of Revenue
• Caution Warranted– An exempt property returning to the tax rolls can increase
revenue as “new property” under PTELL– But, if exemption reinstated, revenue collected must be
refunded with interest
Additional Incentives
• Assessment Incentives (Cook County)– Class 6, 7, 8, and 9
• Real estate tax abatements• Business District Tax• Special Service Areas• Others
Tax Rate Objections
• Challenge to levy, budget, fund transfers, etc.• Filed on an annual basis• Several recent court decisions
