Property taxes may be a significant worry for property owners, especially when they come due. To be able to prepare for property taxes, it is helpful for property owners to understand what property taxes are and what they are based on.
What are property taxes?
Property taxes refer to a tax assessed on a property based on its value. Property taxes are local taxes assessed and collected at the local level. Property taxes are also spent at the local level and support local programs.
What are property taxes based on?
In Illinois, there is no set rate for property taxes. The amount of property tax that is assessed is based on two factors. The two factors include the equalized assessed value (EAV) of the property and the amount of funding the local taxing districts need to operate during the upcoming year. Most properties are assessed at 33 and 1/3 % of their fair market value.
When should property taxes be reevaluated?
Properties other than farmland are required to be viewed, inspected and revalued every 4 years with the exception of Cook County which requires a reassessment every 3 years. Farmland is reassessed every year. Other counties may reassess properties on an annual rotating basis.
When a property owner has received a notice that their property taxes are going up, it may be, of course, unwelcome news. Additionally, the notice they receive should include the reason that the property tax assessment is increasing. Property owners who wish to challenge an increase in their property taxes should be familiar with how property taxes are determined in Illinois and the property tax appeals process should the need it.