By James W. Chipman

Beginning on January 1, 2019, every property assessment in Illinois outside of Cook County will be fair game for assessors. Here’s what you need to know.

Illinois law requires a general assessment of all property in the state to be made every four years, except in Cook County.*

In less than three months, assessing officials will begin the painstaking process of systemically reviewing each property in their jurisdiction. A general assessment, also known as a “reassessment” or a “quadrennial assessment,” helps ensure that properties are assessed at or near a required level of assessment, which in Illinois is 33 1/3% of market value. Keeping assessments up to date equalizes property values and helps eliminate unfair assessments or “sticker shock” that taxpayers can experience when assessments are not periodically reviewed.

During general assessment years, assessors must value a large number of properties in a relatively short period of time. That’s why they often rely on “trending” and “mass appraisal” models to assist them. Trending is applying a positive or negative factor to a designated group of properties to reflect changes in market conditions over a period of time, usually the three intervening years between general assessments. Thus, a 10% trending factor would indicate that property values have increased by 10%. Mass appraisal involves developing values for a large group of properties by using current data that is based on one of three accepted approaches to determining value—cost, market or income.

Relying on these rigid valuation models can often lead to errors in valuing property because of their inability to recognize differences in the physical characteristics of properties in a given area. Additionally, use of either model doesn’t mean that all the properties in a jurisdiction will be uniformly and equitably assessed.

WHAT TO EXPECT IN 2019

1. Assessors are required to “actually view” each property in a general assessment year.** This may involve simply driving by your property to document any exterior changes, or making a formal request to take a look inside. If you receive such a request, you have options.
2. Mailers may be sent asking you to correct or update your property’s information. Accurate information on your property record card is critical and pointing out errors to the assessor can work in your favor.
3. Finally, you’re entitled to notice. Every four years when property is reassessed outside of Cook County, a complete list of assessments must be published in a local newspaper of general circulation. Publication also serves notice on taxpayers that they have 30 days to challenge their assessments. Taxpayers who don’t file within this time frame must wait until the following year.

History tells us taxpayers should expect assessment increases in a general assessment year based on market changes that took place three years earlier. Making sure your assessment is fair and equitable in the first year of a general assessment can eliminate the need for appeals in the next three years. If that sounds appealing, talk to a property tax attorney once your 2019 assessment is published because the 30-day clock will be ticking.

For more information on how the quadrennial event could impact you and your assessment, contact Jim at JWChipman@GCTSpringfield.law or 217.280.5518.

Sources:
*35 ILCS 200/9-215 & 9-225 (Property in Cook County is assessed triennially under 35 ILCS 200/9-220)
**35 ILCS 200/9-155

By James W. Chipman

From understanding complicated laws to knowing how to dispute exorbitant assessments, having an expert on your side can ensure you’re not overpaying when it comes to property taxes.

Property taxes affect us all, whether we’re paying them directly or receiving services or benefits covered by the tax. That’s especially true in Illinois, where property taxes are the 2nd highest in the nation, behind only New Jersey.*

As the owner of a home or a business, your taxes help pay for education, public safety, infrastructure, emergency response and a variety of social services. But you don’t want to pay more than necessary, something a real estate tax attorney can ensure by considering the following factors:

1. Illinois reassessment in 2019: Township assessors are required by law to view, inspect and reassess each property in their jurisdiction once every 4 years. In Cook County, property is reassessed every 3 years. Reassessments ensure assessments are fair and equitable on a countywide basis—given there are typically more individual changes made in general assessment years, significant increases often occur.

2. Vague, complex tax laws: Frequent changes in these laws only compound the problem. Different interpretations can create legal uncertainty and possibly result in different tax consequences for property owners.

3. Differences for businesses vs. residential properties: In Cook County, businesses are assessed at 25% of market value, while single-family homes and multi-family properties are assessed at just 10%. Businesses can be singled out and experience higher tax burdens than residences.

4. Inconsistent, subjective and unknown methods of valuation: Some assessing officials use a “mass appraisal” approach in which a large number of properties are valued simultaneously using standardized procedures. However, one size does not fit all. Many properties are not typical and require special individualized attention.

5. Ability to challenge unfair and excessive assessments: Taxpayers who wish to appeal their assessments have several options. Each option, however, comes with its own set of deadlines. One common mistake many taxpayers make is to wait for the tax bill to arrive in the mail. By then, appeal periods have expired and the only recourse is to pay the tax and wait until the following year to file an appeal.

A real estate tax attorney can represent you in all stages of the property tax appeal process, from the research, preparation and filing to representation before the assessor and local and state boards. The benefits of having an expert on your side heavily outweigh the cost of service, or even worse, the potential cost of making a mistake.

Most people and many attorneys are overwhelmed by the complexity of property taxes. Hiring a real estate tax attorney is the best way to make sure you pay your fair share—and no more.

*Source: Chicago Tribune, April 5, 2018