Local officials may assess property taxes and then increase them

On Behalf of | Mar 25, 2022 | tax law | 0 comments

Illinois does not have a predetermined statewide property tax rate. According to Illinois.gov, tax officials assess most properties at 33.3% of fair market value. Cook County homeowners may have tax rates of at least 16% of their home’s market value. Officials revalue and reassess each property and its owner’s tax obligations at regular intervals.

Cook County classifies properties into different assessment levels. Commercial property owners could pay taxes assessed at 38% of their market values. Officials assess buildings used for farming based on how much income it produces. Property taxes could reflect one-third of a building’s productivity value.

How often do local officials increase property taxes?

According to the State of Illinois’ website, tax officials must view and inspect properties every four years by law. Properties in Cook County, however, must undergo reviews and inspections once every three years. Depending on the results, a property’s tax rate could increase.

Several factors, such as surging home sales, could determine how much property taxes increase. According to the Illinois Policy, property taxes have grown to cover debts incurred from paying public pension funds. As noted in studies conducted by WalletHub, Illinois ranked second nationwide for having the highest property taxes in both its 2020 and 2021 surveys.

How do improvements impact property taxes?

As noted by Millionacres, home improvements or renovations that add value to a property could increase its taxes. Installing an outside structure such as a deck or a swimming pool may qualify as an improvement that warrants such an increase. Remodeling an indoor bathroom might also increase property taxes because it changes the dwelling’s structure.

Illinois’ property owners should anticipate reviews and assessments of their real estate once every three or four years. When an updated assessment brings a tax increase, however, property owners may appeal the new rate.