Q. I received my Notice of Assessment. What is it?
A. Every property in Cook County will receive a Notice of Assessment reflecting a new Assessed Value (AV) for the 2009 Tax Year. This Assessed Value is the number used to assign value to your property compared to other properties in your neighborhood. This Notice tells taxpayers what their AV will be on their 2009 property tax bill ad what the deadline is to challenge the Assessed Value.
Q. How is my assessed value determined?
A. Your Assessed Value to the 2009 Tax Year is determined by multiplying your Market Value by 10%. Market Value (MV) is what your property would be worth on the open market. Thus, if your property is worth $250,000, then your Assessed Value should be $25,000.
Q. My Assessed Value went down/same/up on my Notice of Assessment. When I checked the Cook County Assessor online, my Market Value went WAY up. Why?
A. Prior to 2009, residential properties were not properly valued in true “Market Value.” Market Value (MV) is what your property would be worth on the open market. If you look at your 2008 Market Value, you will most likely see it is much less than what your property is worth today. Additionally, residential properties were assessed at 16% of the supposed true Market Value. However, look at almost any past tax bill and divide your past Assessed Value by .16, and the amount should be much less than what your property is worth. Prior to 2009, Market Values were, for the most part, arbitrarily determined and really did not reflect what a property was really worth.
The Assessor is attempting to correct improper assessments in 2009, simplifying the equation by applying a 10% residential assessment level to current MVs. Your AV should be 10% of your current Market Value.
Q. What does my Notice of Assessment tell me about my actual property taxes?
A. Nothing, really. Your property taxes are determined by multiplying your Assessed Value by the State Equalization Factor and the Local Tax Rate. To get an estimate of where your taxes may be, you can multiply your Assessed Value against the prior Local Tax Rate and State Equalization Factor. Currently, only the 2007 rates are known, and may go up for 2008 and/or 2009. However, to estimate your taxes based on the 2007 rates, multiply your Assessed Value by the Local Tax Rate (Chicago .04994) and the State Equalization Factor (2.8439). (For example, AV x .04994 x 2.8439 = tax bill not including exemptions).
Q. If my Assessed Value went down, will my taxes go down too?
A. No. Your Assessed Value is not the sole indicator of where your taxes are going to be. Your property taxes are determined by multiplying your Assessed Value by the State Equalization Factor and the Local Tax Rate. Even if your Assessed Value goes down, the State Equalization Factor and/or the Local Tax Rate can go up.
Example: Let’s say your 2007 AV is $25,000. Then, you multiply $25,000 by the Local Tax Rate (Chicago .04494) and the State Equalization Factor (2.8439). Thus, your 2007 Tax Bill (not including exemptions) would be $3,550.61. If the Local Tax Rate goes up to .06555, for example, your tax bill increases to $4,656.89. Your tax bill has just increased by over $1,000, but your assessed value didn’t change.
Q. When do I have to appeal my taxes?
A. Now. The Cook County Assessor provides deadlines on the bottom of the Notice of Assessment. If you miss that deadline, taxpayers may also file an appeal at the Board of Review. You can also click here for an updated list of all Township Deadlines for both the Assessor’s Office and the Board of Review.
Typically, taxpayers want to appeal their taxes after they receive their tax bills – but that is too late. Appeals must be filed to challenge the Assessed Value. Taxpayers should appeal their Assessed Value as soon as they receive their Notice of Assessment from the Cook County Assessor’s Office.
Q. How do I appeal my Assessed Value?
A. Taxpayers have several options for filing an appeal. They can file an appeal directly with the Cook County Assessor’s Office and/or the Board of Review. Additionally, taxpayers can hire an attorney to represent their property and/or condominium association. Most attorneys charge a “contingency fee,” based on a percentage of the actual savings. Thus, if there is no savings, there should be no fee. Using an attorney also relieves the taxpayer from the burden of tracking filing deadlines and researching the laws to file a successful challenge.
Q. Can my condominium association file an appeal together?
A. Yes. Condominium associations can be represented by an attorney to appeal the property taxes for the entire association. Filing as a group gives strength in numbers and provides better information for the Assessor and the Board of Review to analyze.
Q. Should I appeal my property taxes?
A. Yes. Every taxpayer must appeal their property taxes. If you believe that you may risk an increase in your assessed value if you file an appeal, it is best to speak to an attorney so he or she may analyze your specific property. The goal of filing an appeal is to make sure your Market Value and corresponding Assessed Value are correct and similarly assessed when compared to similar properties in your neighborhood.
Q. What is the Homeowner’s Exemption and how do I apply for one?
A. If you own a residential property, or are responsible for residential taxes under a lease and it is your primary residence, you may qualify for a Homeowner Exemption. The Cook County Assessor’s Office has extended the application deadline for the 2008 taxes. If you have not filed yours – do it today. Click here to get a copy of the 2008 Homeowner Exemption Form. Mary Anne “Molly” Phelan is a property tax attorney with the law firm of Kearney & Phelan, Ltd. The firm specializes in representing Cook County property owners in all related property tax issues. In the spirit of full disclosure, she is also president of Fix Wilson Yard, a grassroots community organization that fights TIF abuse. For more information, visit www.kearneyphelan.com.
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The response to “Q. My Assessed Value went down/same/up on my Notice of Assessment. When I checked the Cook County Assessor online, my Market Value went WAY up. Why?” is the only place I have seen this question addressed after lot of searching. I didn’t know whether to expect my taxes to skyrocket along with my “market value”. Thanks for the clarification!
Why the assessor’s website couldn’t be this clear, I don’t know. Probably something to do with the “Prior to 2009, Market Values were, for the most part, arbitrarily determined” part.
I don’t know if anyone else has experienced this – but I live in Buena Park (technically, Uptown).
On my property tax form it says that it was assessed as “Lakeview Township”.
Anyone have any ideas or advice?
Typically, Lakeview has higher taxes, and if Buena Park has become Lakeview, I’d like to know.
Lakeview is the \township\ for all of the \community areas\ of Lakeview, Uptown, and Edgewater. Congratulations, you have always been in Lakeview township!
Martin,
There is no need for congratulations – that’s not what I was looking for. I was just asking a question. Thank you for clarifying what the township was, I didn’t know.
Chicago along with all of cook county is divided up into townships,
http://www.cyberdriveillinois.com/departments/archives/irad/township_maps/cook_map.html
Lake View Township is much of Lincoln Park, Lakeview, Uptown, Edgewater, and Ravenswood/Lincoln Sq.
Nice map, a bit overdone for the purpose, but useful.
I live in a Condo and recently refinanced my mortgage(May 2009). The assessed value was 185,000. I have been notified that my Assessed Valuation for 2009 is $20,076, which would mean an assessed Market Value of 200,076. Would this be ground for an appeal?