Cook County 2008 Real Estate Tax Forms Illinois by sck21204


Cook County 2008 Real Estate Tax Forms Illinois document sample

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									       Understanding the
      Assessment Process

The objective of this session is to explain the
     assessment, equalization and appeal
 processes. Discuss information available to
  taxpayers on the web and answer related
 Marty Paulson – Chief County Assessment
    Jeff Lee- Lake Villa Township Assessor
           The Misconception

   Assessors do not have a goal of increasing
    tax bills!
   They only mass appraise real estate,
    based upon a methodology set forth in
    state statute.
  What is the reason for
property tax assessments?
      The ad valorem property tax
  assessment is used to distribute the
   burden of the property tax over a
   populous, based upon the value of
 real estate over given period of time.
Who makes the market?

 Buyers and sellers are the ones
 who determine the value of real
What sales will be used to
    determine 2008
   The sales that occurred in 2005,
        2006 and 2007 – it is a
     retrospective value estimate.
  This should show a moderating in
  assessments, they will rise some,
    yet not much in comparison to
             recent years.
Assessed Values
The assessment value is
  not intended to be a
  reflection of current
     market values.
            Assessed Values
   Are at approximately one-third of the
    market value of the property.
   Based upon sales from the three years
    prior to January 1, 2008.
   So for a property that has a market value
    of $200,000…the assessment should be
    near $66,660.
   In analysis we look at the ratio of sales to
    the assessed values…call them a sales
    ratio…and use them in analyzing
    assessment quality – or how close the
    assessments are to the market.
      Assessments in Lake County
   In Lake County, we are to value or
    assess properties at 33.33% of full
    market value.
   For 2007 tax bills, our county-wide
    three year average ratio was 33.17%
    (after equalization).
   The average ratio for the 2007 sales
    compared with the 2006 valuations was
    30.07% countywide, meaning values
    continued to rise in that year (6473
    Role of the Township Assessor
   Determine the market value of all properties
    within their jurisdiction.
   Utilizes the many sales that occur in a township
    as a basis for assessed values.
   Works to distribute the burden of the real estate
    tax in an equitable manner based upon property
   Perform administrative functions related to
    homestead exemption eligibility.
   Capture parcel characteristic information on
    properties in their jurisdiction.
       Role of the Chief County
         Assessment Office
   Evaluates the            In Lake County,
    township assessor         the CCAO staff
    values.                   serves a dual role
                              as support to the
   Applies local             Board of Review.
    equalization to          Make information
    level the tax             available to
    burden between            taxpayers on the
    townships.                web.
   Notify taxpayers of      Defends Board of
    their new                 Review decisions
    assessments.              at the PTAB.
     Why do we apply equalization
   A part of the statutory role of the CCAO in
    state law.
   Equalize assessment levels from township
    to township.
   Assessors perform a function like this in
    their work.
   If we do not perform this function, the
    state will apply a multiplier to the county’s
    parcels – in a way that is not fair, one
    factor for all.
   In using a three-year average of the
    median ratios, valuation spikes
    upward and downward are smoothed
    out (versus Cook County).
   This does help with the stability of
   Yet, the third year back seems like
    long ago…here at the end of 2008,
    talking about 2005…when it was a
    market peak.
        Equalization Next Year
   Unadjusted median ratios are very close
    to 33.33 for most townships.
   This has not happened in recent memory.
   The result will be higher three-year
    averages of the medians.
   In some instances, we may see
    assessments decrease township-wide.
   Based upon about eight months of sales
    that would qualify for analysis purposes
    (re-sales of existing properties).
       Reasons for Appeal of an
   The assessor has placed a market
    value estimate on your parcel that is
    higher than actual market value.
   The assessment is based on
    inaccurate parcel characteristics.
   The assessment is higher than those
    of similar neighboring properties
  Steps to Assessment Appeals
1. Obtain the assessed     5. Compile and file a
  value of your property     written complaint
  as well as those of        with the Board of
  similar ones.              Review (reviewed
2. Determine the fair        later).
  market value of your     6. Present your
  property (sales of         evidence in a hearing
  comparables).              at the Board of
3. Discuss the               Review (in person,
  assessment with your       by phone or by
  assessor’s office.         letter).
4. Determine the basis     7. File a subsequent
  for your filing            action with the State
  (uniformity, market        Property Tax Appeal
  value or both).            Board or the Circuit
       Recommended Types of
   An appraisal             Photographs
   Real Estate              Characteristic
    Transfer                  Information on
    Declaration or            Comparable
    other sale evidence       Properties
   List of Recent           Copy of Property
    Sales of Similar          Record Cards
        Board of Review Forms
   Residential Complaint Form
   Residential Comparison Grid
   Glossary of Terms – describes the grid
   Rules of the Board of Review – please
    take a look a these to ensure you are
    up to date on how the Board
   New Comparable Search capacity is
    now available on our website.
 The Current Real Estate Market
What happens if a sale in 2007 or
2008 is less than the assessment
      on a given property?

In most instances our Board of Review will
    recognize an arms-length sale after
 January 1 as the best evidence of market
 value for 2008. They will also recognize
  sales in 2007 as good evidence of value
                 for 2008.
        Lake County’s Website
   Property Information
   Comparable Search
   Photos and Assessor Sketches of
   Interactive Mapping Application
   Tax Bills - County Treasurer’s site
   Our aim is to continue to create
    more access and transparency.
   Board of Review Rules call for assessors to
    send their evidence to an appellant prior
    to a hearing.
   Appellants who wish to supplement their
    initial evidence submission should also
    share their new information with all
    parties involved.
   This leads to a more productive hearing.
Advantages of a Property Tax
   Local administration
   Locally spent
   Opportunity for taxpayer input &
   Error correction
   Stable – Predictable way to fund
    local government services.
Disadvantages of the Property

   Ability to pay not considered
   Difficult to understand –
    formulas, timing, multiple
   Lump sum tax
   Uniformity vs. Market Value
        The Property Tax in Illinois
   All of the money paid stays in your
   One of the fairest taxes we pay.
   Under constant pressure from decisions
    made at the state and federal levels –
    pushing service responsibility to the locals.
   Impacted by population increases and the
    desires of the local community.
   In this challenging timeframe, the
    property tax will be impacted more by the
    needs of Lake County taxpayers (LCHD,
    Board of Review, township assistance).
    Property Tax Reform and Relief
              Task Force
   Charged with reviewing the present
    system and recommend changes to
    the General Assembly.
   Nine members, three legislators are
    on the panel. Sen. Terry Link in chair
    of the group.
   Suggestions/ideas are encouraged.
   The devil you know versus the devil
    you don’t know…
    Taxes, Taxes, Taxes
The Board of Review does not do taxes. It
  is a good idea to keep your case to the
facts about property value…it will get you a
              better audience.
        Information Sources
1. The Township Assessor’s Office
2. The web
  Property Tax Assessment Information
  Interactive Mapping Applications
  Appeal Deadlines
 3. Multiple Listing Information
 4. Personal Knowledge
 5. The Chief County Assessment Office
Note: The county’s web address is changing
  in November to
Ways to Contact Us
     CCAO web site

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