Transcript Residential Presentation 2010

James M. Houlihan
Cook County Assessor
Cook County
Property Taxes
Understanding the Assessment
Process
Role of the Assessor
• 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 Tax System
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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 Tax Bills
• Assessed Value
• State Equalizer
• Equalized Assessed Value
(EAV)
• Exemptions
• Tax Rate/Local Spending
Typical Tax Bill in the City of Chicago
Property Tax Bills
Percent of Bill to Each Taxing Agency
City of Chicago
Forest Preserve 19%
District
1%
Library Fund
2%
Finance Authority
2%
City Colleges
4%
Metro Water Rec
District 5%
Chicago Park
District
Cook County
7%
9%
Board of Education
51%
Property Tax Bill
Calculating Tax 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
Exemptions
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Homeowner Exemption
Senior Citizen Exemption
Senior Freeze Exemption
Home Improvement Exemption
Homeowner Exemption
• 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% Expanded
Homeowner Exemption
Exemption limit
• $20,000 for Chicago
• $20,000 for the North
• $26,000 for the South
From the Tax Bill Calculation
Examples (City)
Homeowner Exemption Amount
$6,000
Tax Rate
5.194%
Tax Savings
$6,000 x 5.194% = $311
With the 2009 Maximum Exemption
Homeowner Exemption Amount
Tax Rate
Tax Savings
$20,000
5.194%
$20,000 x 5.194% = $1,038
From the Tax Bill Calculation
Examples
(North Suburban)
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
From the Tax Bill Calculation
Examples
(South Suburban)
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 Exemption
• 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 Exemption
• Freezes EAV for qualifying seniors
• Must be 65 years or older, applies
to principal residence
• $55,000 or less in total household
income
Home Improvement
Exemption
• Exempts up to $75,000 in
improvements
• 4 years
• Automatic, on field check of
permits
Same house, same neighborhood,
different tax bill?
Examples
$320,000 Home
Homeowner with
6,000 exemption
Homeowner with
20,000 exemption
$4,639
$3,912
Senior Homeowner
with 20,000 exemption
& additional 4,000
Senior
$3,704
Senior with Freeze
(35,000 in EAV)
$1,294
New Exemptions
• Long-Time Occupant
Homeowner Exemption
• Returning Veterans’
Homeowner Exemption
• Disabled Persons’ Homeowner
Exemption
• Disabled Veterans’ Standard
Homeowner Exemption
Long-Time Occupant
Homeowner Exemption
– Started in tax year 2007
– 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 Veterans
• 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 Persons
• $2,000 reduction in EAV
• Must qualify as a disabled
person (Class 2)
• Must file an annual application
Disabled Veterans
• 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
* IMPORTANT NOTE
*
New Exemptions
Property can receive only one
of the Exemptions for Disabled
Individuals
Cook County
Property Taxes
The Valuation and Appeals Process
Triennial Reassessment
Industrial 25%
Assessment Ratios
Residential 10%
Commercial 25%
Valuing Residential
Properties
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Mass Appraisal Method
1.8 Million Parcels
3 to 7 years of sales
Multiple Regression
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Location
Square Feet
Type of Construction
Age
Appealing Assessments
• Reassessment Year
– North 2010 (Now)
– South 2011
– City 2012
• Notice of Proposed Assessed
Valuation
• 30 Days to File an Appeal with
our office
Appealing Assessments
Residential appeals are
straightforward
– Error in characteristics
– Similar homes in neighborhood
assessed lower
• A lawyer is not required
Appealing Assessments
Condominiums
• We produce a value for the whole
building – then apply percentage of
ownership
• Joint appeal
• Taxpayer Services Department
Information
312-443-7550
• Office in County Building
118 N Clark Street
• Website
www.cookcountyassessor.com
James M. Houlihan
Cook County Assessor