Illinois Property Tax Assessments
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Topics Include: *Basics of Illinois Tax System *Tour of County Websites *Effectively Working with the Assessor’s Office *People, Process and Paperwork *2012 Revaluation
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Illinois Property Tax Assessments
- 1. Ask the Expert Workshop – July 19, 2012 Property Tax Assessments Harvey Camins, Moderator Norman Quinn CMI, CRE, Panel Expert Patrick Doody ESQ, Panel Expert
- 2. Property Tax Assessments Harvey Camins Managing Director Means Knaus Partners • Member of BOMA/Chicago Board of Directors • Chairperson of BOMA/Chicago Tax Committee • 2005-2006 BOMA/Chicago President Ask the Expert Workshop – July 19, 2012
- 3. Property Tax Assessments Norman J. Quinn CMI, CRE Equity Property Tax Group President • Member of BOMA/Chicago Tax Committee • 30+ years of experience in real estate, finance and taxes Ask the Expert Workshop – July 19, 2012
- 4. Property Tax Assessments Patrick C. Doody, ESQ Law Offices of Patrick C. Doody • Member of BOMA/Chicago Tax Committee • Member of Bar in IL, WI and AZ • Certified Public Accountant • Certified Member of the Professionals in Taxation • Certified Illinois Assessing Officer Ask the Expert Workshop – July 19, 2012
- 5. Property Tax Assessments Topics Include: • Basics of Illinois Tax System • Tour of County Websites • Effectively Working with the Assessor’s Office • People, Process and Paperwork • 2012 Revaluation Ask the Expert Workshop – July 19, 2012
- 6. Property Tax Assessments Basics of IL Tax System • Revaluation Cycles • Components to An Assessment • Components to A Tax Bill Calculation • Appealing Tax Assessments • Undervaluation Complaints • Tour of County Websites • Landmines & How to Avoid them Ask the Expert Workshop – July 19, 2012
- 7. PropertyRevaluation Cycles Tax Assessments • Cook County Triennial System • Other Counties Quadrennial System Off Year Changes Ask the Expert Workshop – July 19, 2012
- 8. How IL Determines Market or Property Tax Assessments Taxable Value Four Components 1. Market or Taxable Value 2. The Assessed Value 3. State Equalizer (Multiplier) 4. Levy, Millage, or Tax Rate Ask the Expert Workshop – July 19, 2012
- 9. How IL Determines Market or Property Tax Assessments Taxable Value Market or Taxable Value • Date Specific – Annual Assessment Date 1/1 of each year • Methods to Determine Value – Cost – Income – Market Sales Ask the Expert Workshop – July 19, 2012
- 10. How IL Determines Market or Property Tax Assessments Taxable Value Determine the Assessment Apply Formulas Market Value * Assessment Ratio = Assessed Value Ask the Expert Workshop – July 19, 2012
- 11. How IL Determines Market or Property Tax Assessments Taxable Value Determine the Assessment • Assessment Ratio’s Cook County - Multiple Categories – Office/Industrial = 25% – Residential = 10% Rest of IL – All Properties =33.33% Ask the Expert Workshop – July 19, 2012
- 12. How IL Determines Market or Property Tax Assessments Taxable Value State Equalizer (Multiplier):(2011 – 2.9706, 2010 – 3.3) • Determined annually by state • Equalizer is overall penalty, applied to every property State Mandated Property to be assessed at 33.33% of value Cook County Assessment Ratios Lower Non Cook - may apply at township, county and/or state Ask the Expert Workshop – July 19, 2012
- 13. How IL Determines Market or Property Tax Assessments Taxable Value Levy, Millage or Tax Rate • Cost to Run Government – Schools, government services, pension costs etc. • Simple Math – Net Revenue Required, the budget shortfall, divided by the total tax base valuation Ask the Expert Workshop – July 19, 2012
- 14. Property Tax Assessments Property Tax Bill Computation Cook County • Taxes Due = Assessed Value * State Equalizer (Multiplier) * Tax Levy • First Installment = 55% of total prior year tax • Second Installment = Taxes Due less the 1st installment Ask the Expert Workshop – July 19, 2012
- 15. Property Tax Assessments Property Tax Bill Computation Non Cook County • Taxes Due = Assessed Value * State Equalizer (Multiplier) * County / Township Equalizer (Multiplier) * Tax Levy • Tax rates are set early in the year allowing the bills to be paid in two equal installments Ask the Expert Workshop – July 19, 2012
- 16. Property TaxTax Assessments Appealing Assessments Courts Circuit Court or Property Tax Appeal Board Board of Review Formal Appraiser Appeal - Optional Informal Appraiser Interactions - Optional Ask the Expert Workshop – July 19, 2012
- 17. Property TaxTax Assessments Appealing Assessments Assessor - Informal • Informal Meeting Before Assessments are Set – Potential Informational Packages • Letter Properties – What are They? – Their Future – Online Access Ask the Expert Workshop – July 19, 2012
- 18. Property TaxTax Assessments Appealing Assessments Assessor Issues Notices – Non Mandatory Appeal Level Meeting/Appealing: • Appeal Package and Specific Forms • Filing Deadline 30 Days After Notice Issued • Filing of Documentation – 10 Days After Deadline • Assessor Revises or Denies • Potential Assessor Questions • Requests to Re-Review • Change or No Change • Tax Roll Certified – Runs About 3 Weeks After the Appeal Deadline • Tax Roll Published – 7 to 10 Days Later Ask the Expert Workshop – July 19, 2012
- 19. Property TaxTax Assessments Appealing Assessments Board of Review - Mandatory For Appeals Complete Decisions Before 2nd Installment Due • Appeal Package and New Forms • Board of Review Filing Deadline – about a month after roll certified • Appeal Period - open for about a month • Hearing Scheduled • Potential Board Questions • Decision • Requests to Re-review • Change or No Change Ask the Expert Workshop – July 19, 2012
- 20. Property TaxTax Assessments Appealing Assessments Circuit Court or PTAB - (PTAB = Property Tax Appeal Board) • Issues Determine Which Forum is Best for Your Case • Filing Deadline Vary by Forum • Resolution Period ~ 2 - 4 Years • PTAB cases can take longer Ask the Expert Workshop – July 19, 2012
- 21. Property TaxTax Assessments Appealing Assessments Courts – Appeal of Decisions •Unique Issues •Not common Ask the Expert Workshop – July 19, 2012
- 22. Property Tax Assessments Undervaluation Complaints • Who Can File ? – Any Tax payer or rate setting authority – Collar Counties – Schools most active • Cook County – Property Tax Fairness Board – Created by the City of Chicago ~ 2006 – Politically or Publicity Orientation ? – Appear Transaction Oriented ? Ask the Expert Workshop – July 19, 2012
- 23. Tax Rate Appeal Process Property Tax Assessments Cook County Only in Illinois – challenge rate setting bodies did not follow proper procedures while setting their levy for the tax year. • Class Action Lawsuits • Resolution 8-10 Years • Raises Issues of Tenant Reimbursement – Treat as Current – Track Down Tenants – Ignore Ask the Expert Workshop – July 19, 2012
- 24. Assessors Website Property Tax Assessments www.cookcountypropertyinfo.com http://www.cookcountypropertyinfo.com/Pages/pin-search.aspx Ask the Expert Workshop – July 19, 2012
- 25. Landmines and PropertyHow ToAssessments Tax Avoid Them Property Tax Accounting – Understand Your Building • Paid One Year in Arrears – (2011 are Paid in 2012) • Accounting - Cash and/or Accrual Accrual accounting required GAAP • Lease Escalation Pools Ask the Expert Workshop – July 19, 2012
- 26. Landmines and PropertyHow ToAssessments Tax Avoid Them Property Tax Bills Processing Payments: • Must Include Original Bill or Original Re-issued Bill – must be ordered, can not be printed online • Keep Copy for Other Uses – permits, escalations, tenant questions Pay in Two Installments: • March 1st - First Installment is 55% of Prior Year • Second Installment – catch up for new: value, equalizer, and tax rate • This Year is Due ~ 8/1 compared to 11/1 last year • Going Forward - New Standard, 1st time since 1978 Ask the Expert Workshop – July 19, 2012
- 27. Landmines and PropertyHow ToAssessments Tax Avoid Them Property Tax Bills Late Charges • Unpaid Balances Penalty - 1.5% /mo. or (18%/yr.) • Paid in Full Prior to the Annual Tax Sale • Post Tax Sale Costs Increase • Delinquent Bills - Research on Treasurers Website • Review Bills for “Late” Charges for Prior Years Ask the Expert Workshop – July 19, 2012
- 28. Landmines and PropertyHow ToAssessments Tax Avoid Them Tax Appeals • Completing Required Forms - Tight Deadlines • Statements of Affirmation – Who Signs? • Require Notary • Quick Turn Around During Appeal Process Ask the Expert Workshop – July 19, 2012
- 29. Property Tax Assessments Questions? Ask the Expert Workshop – July 19, 2012
- 30. Effectively Working with The Property County Assessor Tax Assessments People, Process and Paperwork • What is Everyone's Roll? • Required Data • Required Forms • Letter Properties • Appraisal Reports Ask the Expert Workshop – July 19, 2012
- 31. Property Tax Assessments Everyone’s Role • Role of Property Manager • Role of Consultant/ Attorney Ask the Expert Workshop – July 19, 2012
- 32. Most Frequent Forms Property Tax Assessments (Required) • Owner Lessee Verification Affidavit – Sold or Refinance in Last 5 Years – Accuracy of Income and Expense Data • Owner Lessee Attorney Verification Form – Sold Within the Last 3 Years – Appoints Attorney Representing Tax Payer Ask the Expert Workshop – July 19, 2012
- 33. Most Frequent Forms Property Tax Assessments (Required) • Vacancy / Occupancy Affidavit – Prior Year – Current Year to Date Actual/ Proforma – Photos, Deal Details, Listing for Sale, etc. Ask the Expert Workshop – July 19, 2012
- 34. Most Frequent Forms Property Tax Assessments (Required) • Letter Properties – Old vs. New Policies • Appraisal Reports – Owners / Lenders vs. Property Tax – Informal – Formal – Discovery in Court Proceedings Ask the Expert Workshop – July 19, 2012
- 35. Property Tax Assessments Appeal Support Responsive actions to Assessors questions in a narrow time frame. Ask the Expert Workshop – July 19, 2012
- 36. Property Tax Assessments Appeals • Under Valuation Complaints – Risk – Cannot Plan/Anticipate Ask the Expert Workshop – July 19, 2012
- 37. Property Tax Assessments Questions? Ask the Expert Workshop – July 19, 2012
- 38. Property TaxRevaluation 2012 Assessments Assessor - New People – Who they are, where they came from, anticipated changes process and timelines • Joseph Berrios, Assessor • Robert Kruse, Chief Deputy Assessor: (312) 603-6701 • Thomas Jaconetty, Deputy Assessor - Valuation: (312) 603-3155 Ask the Expert Workshop – July 19, 2012
- 39. Property TaxRevaluation 2012 Assessments Board of Review - New People – Who they are, where they came from, stated preferences • Commissioner Michael Cabonargi – Chief Deputy Commissioner Aaron Bilton (312) 603-6438 • Commissioner Dan Patlak – Chief Deputy Commissioner Jen Jochum (312) 603-4691 • Commissioner Larry Rogers, Jr. – Chief Deputy Commissioner John Nyhan (312) 603-4166 Ask the Expert Workshop – July 19, 2012
- 40. Property TaxRevaluation 2012 Assessments • Changes in Processes – Letter Properties • Discussion on CBD Revaluation Cycle – What Has Happened in Closed Townships – When the CBD Notices Will Be Issued Ask the Expert Workshop – July 19, 2012
- 41. Property TaxRevaluation 2012 Assessments • Feedback Stories on Negotiations and Appeals to Date • Online Access to Release Dates • Board of Review Targeted Completion Dates Ask the Expert Workshop – July 19, 2012
- 42. Property Tax Assessments Questions? Ask the Expert Workshop – July 19, 2012