AN UNPLEASANT SURPRISE! Many Cook County IL Tax Bills Up, Despite Declining Real Estate Market!
FOR MANY, 2ND INSTALLMENT OF RE TAXES, DUE NOVEMBER 3RD, SHOWS HEFTY INCREASE!
"The Market is Soft! The Market is Soft!"
That's what the Internet and the newspapers have been saying about housing values here in Chicago and its Cook County IL Suburbs in recent months.
But the Real Estate Market sluggishness has not translated to smaller tax bills for many. In fact, many Chicago and Suburban Residents are opening their tax bill envelopes to sometimes double-digit jumps in Real Estate Taxes now due.
"We have a lot of people who are confused because the current economic circumstances would lead them to believe that their assessment should go down," said Cook County Assessor James Houlihan. "Their actual tax liability has gone up."
Indeed, many have seen sizable increases in their 2007 Real Estate Taxes, with the second of two installments due November 3, 2008. But others have seen more modest increases. A few have seen slight drops.
Here's why -
•A major tax-assessment break is being phased out, starting in the City of Chicago. Because of the Cook County Three-Year Reassessment Cycle, many assessed values in Chicago and its Northern and Northwestern Suburbs had their assessed values calculated one or two years ago, before the current credit and housing crisis began to bring values down.
•In some cases, caps on the amount of a real estate tax increase reduced amount now due. However, those ceilings may not apply to all municipalities and taxing entities. In a few Cook County Suburbs, voters approved referendum measures, which raised their local real estate taxes.
•Legislation several years ago creating a 7% annual limit on assessment increases may vary depending on length of ownership, increase in assessed value, the time of purchase, and, in some cases, household income.
Says Laurence Msall, President of The Civic Federation, the Cook County Tax Assessment Procedure is very complex, involving tax rate multipliers and multiplication factors to adjust local tax levels versus those in other parts of the State of Illinois. Specific tax rates for individual homeowners are hard to project in advance.
The current real estate tax bills, covering Tax Year 2007, due in arrears, will show the biggest increases in the North and Northwest Suburbs of Chicago. In the City of Chicago, the cap on tax assessment increases has been reduced this year as it is being phased out by State of IL law. Therefore, some in the city are seeing double-digit tax increases.
Perhaps the most fortunate part of the taxpayer group includes those living in the South and West Suburbs of Chicago. In these areas, assessed values were calculated earlier this year, and, in part, may take into account the current trend toward declining average property values.
For more, including a map showing comparative real estate tax increases across Chicago Neighborhoods and Suburbs, see Hal Dardick's story in today's Chicago Tribune.
DEAN MOSS & DEAN'S TEAM CHICAGO
