View the slideshow to learn about the process for determining your property taxes and how to appeal if you believe you are being charged in error.

1. State Representative
Ron Sandack
Presents
Property Taxes in DuPage:
Understanding the Assessment Process

2. Overview of the Property Tax
System – DuPage County

3. Illinois Property Tax – Ancient History
•
1818 – 1932: State Levied a Centralized Property Tax
(on Personal Property and Real Estate)
•
1933: Property Taxes Levied, Collected and Spent at the Local Level
•
1939: Revenue Act of 1939 Enacted
(Foundation of current Real Property Tax Code)
•
1970: Illinois Constitution Amended to Eliminate Tax on Personal Property
by 1979 (Non-Real Estate)

4. Recent History
(Tax Year Affected Referenced)
• 1972: General Assembly Enacts Senior Homestead Exemption
• 1978: General Assembly Enacts General (Residential) Homestead
• 1991: Property Tax Extension Limitation Law (PTELL) Enacted
• 1994: Senior Assessment Freeze Enacted (DuPage Initiative)
• 2007: Three New Homestead Exemptions Enacted

5. DuPage Property Tax System
By the Numbers
Variable
2011 pay 2012 Tax Year
Parcels of Real Estate:
334,889
Residential Homestead Exemptions Granted:
270,834
Senior Exemptions Granted:
49,664
Senior Assessment Freeze Exemptions Granted:
14,670
Total Assessed Value (Net Taxable After Exemptions):
Tax Districts/Units of Government Receiving Tax:
Tax Collected:
37,694,225,826
382
$2,493,604,956

6. What Determines My Property Tax Amount?
(1) Assessed Value
Subtract
if any
(2) Exemptions
Multiply
by
(3) Tax Levy (Rate)
Equals
Tax Bill

7. (1) Assessed Value
• Is an estimate of value of the property initially calculated by the local
township assessor.
• Is based upon statistical data from actual property sales and
property physical characteristics of record.
• The assessment is required to represent one-third of the property’s
fair market value as measured from the three prior years’ sales
activity.
• Independent from the local assessment offices, the Illinois
Department of Revenue annually compiles statistics comparing
actual sales and assessed values to monitor the accuracy of
assessed values.

8. 1

9. Assessment Cycle
By January 1st (County Clerk): List of Taxable Property Prepared
By November 15th (Township Assessor): Property is Valued as of 01/01
(Supervisor of Assessments): Calculates Equalization Factor*, Mails Change of
Assessment Notice*, Publishes Assessment Changes
Note: Appeal Deadline is 30 Days After Assessment Publication
(Illinois Department of Revenue): Calculates Tentative State Equalization Factor
(Board of Review): Holds Assessment Hearings, Calculates Board Equalization Factor*
(Illinois Department of Revenue): Calculates Final State Equalization Factor
Assessed Values Certified to County Clerk in March of Following Year
* If Required

10. Quality Control – Oversight
• Illinois Law recognizes the need for an objective
method to measure the accuracy and quality of
locally produced assessed values.
• To that end, the Illinois Department of Revenue
is charged with the responsibility to monitor the
performance of local assessment officials on an
annual basis.

12. Excerpt from Real Estate Transfer Declaration
Form Instructions

13. Annual Sale to Assessment Ratio Study
•
As required by State Law, the ratio studies are complied independently by the Illinois
Department of Revenue on an annual basis.
•
The studies are a statistical comparison of actual sales prices and their
corresponding assessed values.
•
All property sales are analyzed.
•
Only sales occurring under normal circumstances are included in the study:
–
–
–
•
Arms-length transactions
Neither party under duress
Reasonable exposure to the market
Reports are used by the State to:
–
–
–
–
Verify compliance to statutory level of assessment
Calculate equalization factors if assessed values are not at statutory level of assessment
Test accuracy of locally produced assessed values
Measure quality (uniformity) of assessed values

14. Definition: 33 1/3% (Level of Assessment)
(35 ILCS 200/1-55)
Sec. 1-55. 33 1/3%. One-third of the fair cash
value of property, as determined by the
Department's sales ratio studies for the 3 most
recent years preceding the assessment year,
adjusted to take into account any changes in
assessment levels implemented since the data
for the studies were collected.
(Source: P.A. 86-1481; 87-877; 88-455.)

15. Implications of 3-Year Averaging:
Appreciating Real Estate Market
• Action: The assessments are calculated from
sales occurring when prices were typically lower.
• Result: Assessed values lag behind current
market values.

16. Example: Final 2006
Actual Sale to Assessment Ratio Study Results as Certified by the Illinois Department of Revenue
Adj. 2003 Median
Adj. 2004
Adj. 2005
3-Year Ave.
Addison
34.79%
34.60%
30.66%
33.35%
Bloomingdale
34.62%
34.13%
31.24%
33.33%
Downers Grove
35.11%
34.09%
30.41%
33.20%
Lisle
34.78%
33.88%
31.11%
33.26%
Milton
35.17%
33.46%
31.10%
33.24%
Naperville
34.74%
33.85%
31.41%
33.33%
Wayne
34.36%
33.85%
31.56%
33.26%
Winfield
35.17%
33.93%
31.32%
33.47%
York
34.95%
34.48%
30.18%
33.20%
Township
Source: Illinois Department of Revenue, GREEN = Single-Year Below 33.33%, RED = Single-Year Above 33.33%.

17. Implications of 3-Year Averaging:
Depreciating Real Estate Market
• Action: The assessments are calculated from sales
occurring when prices were typically higher.
• Result: Assessed values are above current market
values.

18. Example: Final 2010
Adj. 2007
Adj. 2008
Adj. 2009
3-Year Ave.
Addison
28.89%
31.40%
38.50%
32.93%
Bloomingdale
30.47%
32.58%
36.95%
33.33%
Downers Grove
30.75%
32.68%
36.57%
33.33%
Lisle
31.36%
32.71%
35.92%
33.33%
Milton
31.33%
32.96%
35.70%
33.33%
Naperville
31.40%
32.82%
35.77%
33.33%
Wayne
30.84%
32.95%
36.19%
33.33%
Winfield
30.64%
32.90%
36.45%
33.33%
York
30.79%
32.76%
36.43%
33.33%
Source: Illinois Department of Revenue, PTAX-215, Dated 03/08/2011

19. Property Value Trends
Single Year Data
Standard & Poor's Case Shiller Chicago Home Price Index
180
160
140
Current
120
100
80
60
Year
Source: Standard & Poor’s Case-Shiller© Chicago Area Home Price Index (as of January for each year)

20. Comparison of Current Value and 3-Year Average
Single Year v. 3-Year Average
Standard & Poor's Case Shiller Chicago Home Price Index
180
160
140
Current
120
3-Year
100
80
60
Year

21. Comparison of Current Value and 3-Year Average
2006 vs. 2010
Single Year v. 3-Year Average: 2006 - 2011
2006 Assessment Year
Standard & Poor's Case Shiller Chicago Home Price Index
175
Median 2006 Sale to
2006 Assessment Ratio
165
was 28.43%
155
Current
145
3-Year
2010 Assessment Year
135
Median 2010 Sale to
125
2010 Assessment Ratio is
115
2006
2007
2008
2009
2010
2011
38.10%
Year
Source: Illinois Department of Revenue

22. What About This Year?
(Prior to any Changes for 2012)
Adj. 2009
Adj. 2010
Adj. 2011
3-Year
Level
Adjustment
Required
Addison
33.97%
36.04%
41.23%
37.08%
-10.11%
Bloomingdale
33.85%
36.08%
41.58%
37.17%
-10.33%
Downers Grove
34.19%
35.32%
38.38%
35.96%
-7.31%
Lisle
33.92%
34.91%
37.48%
35.44%
-5.95%
Milton
33.50%
35.17%
38.12%
35.60%
-6.38%
Naperville
33.75%
35.25%
37.87%
35.62%
-6.43%
Wayne
33.67%
35.10%
39.41%
36.06%
-7.57%
Winfield
33.68%
36.05%
40.77%
36.83%
-9.50%
York
33.47%
35.11%
39.98%
36.19%
-7.90%

23. Global Assessment Changes ≠ Bill Changes
• Action: All assessed values within your
township are reduced by 10%.
• Result: Assuming all other variables do
not change, property tax bill amounts
remain constant.

24. Individual Assessment Change = Bill Change
• Action: My assessed value is increased
by 10% while all of my neighbors
assessments remained the same.
• Result: My proportionate share of the
total tax burden (my bill) will increase
when compared to my neighbors.

25. How Do I Appeal My Assessment?
Informal Appeal: Contact your township assessor
• Timeframe: The sooner, the better
• Process: Provide documentation of concern
– Fair Cash Value: Sales data of subject property and/or comparable properties,
appraisal
– Equity of Assessed Value: Analysis of subject property’s assessment and
comparable properties
• Note: The township assessor is empowered to alter the
assessment on your behalf without you filing a formal appeal.

26. How Do I Appeal My Assessment? - Continued
1st Formal Step: County Board of Review
• Timeframe: As soon as the assessment is officially set by township
assessor. (townships by statute must complete their re-evaluation
on or before 11/15/2013)
• Process: File a timely assessment appeal form including
appropriate value and/or assessment documentation .
• Please see Board of Review Rules of procedural information.
(available on www.DuPageCo.org/SOA)

27. Assessment Appeal Track
Township Assessor
(Informal – Not
Required)
County Board of
Review
(Formal:
Administrative)
Circuit or Appeal
Court
(Formal: Civil)
Illinois Property Tax
Appeal Board
(Formal:
Administrative)
Civil Court Appeal
(Formal: Civil)
Administrative
Review
(Formal:
Administrative)

28. Grounds for Successful Assessment Appeal
Overvaluation
Unequal Treatment (Equity)
Contention of Law
My Taxes are Too High!

29. Overvaluation Assessment Appeal
• The assessment implies a fair cash value above the
current market value.
“I recently purchased my home for $300,000, yet the
assessment translates to fair cash value of $500,000.”
• Appropriate Evidence: Sale price and terms of subject
property , comparable sales, appraisal, etc.

30. Unequal Treatment (Equity) Appeal
• Assessed Value is not reasonable in the context of the
value placed upon other similar properties.
“There are 10 nearly identical homes as mine within my
subdivision, my house is assessed $50K more that all of
the others.”
• Appropriate Evidence: Equity comparison. Using units of
comparison are helpful such as comparing the assessed
value per square foot of living area of the subject and
comparable homes.

31. Contention of Law
• Disagreement with the interpretation of a specific
portion of the Property Tax Code.
“I own a 50 acre farm and I was denied the
preferential agricultural assessment.”
• Appropriate Evidence: Cite relevant statue and
explain the applicability to the subject property.

32. (2) Exemptions
• Reduce the taxable assessed value for
recipients of the exemptions.
• Shift tax liability between taxpayers.
• Typically do not reduce the total amount of
tax collected.

33. 2

34. What Homestead Exemptions are
Available?
Assessment
Deduction
Typical Tax
Shift
6,000
$379
Home Improvement:
25,000 (Max.)
$1,579
Returning Veterans’:
5,000
$316
70,000 (Max.)
$4,420
5,000 (Max)
$316
Disabled Persons’:
2,000
$126
Senior Homestead:
5,000
$252
28,149 (Ave.)
$1,778
Program Name
General (Residential):
Disabled Veterans’ (Adaptive Housing):
Disabled Veterans’ (Standard):
Senior Citizens Assessment Freeze:
Note: Homestead Exemptions shift a portion of the recipients property tax burden
onto other tax payers.

35. How Do I Apply?
Exemptions Typically Granted by Township Assessor Automatically
•
General (Residential): Assuming your township assessor believes your
home is owner occupied, a formal application may not be required.
•
Home Improvement: If your township assessor increases your assessed
value because of a physical change to your owner occupied single family
home, then the assessor will initiate the exemption on your behalf.
•
If you have a residential or improvement exemption question, please
contact your township assessor.

36. How Do I Apply? – Continued
Exemptions Requiring a Formal Application with the Supervisor of
Assessments Office:
•
Senior Homestead: 65 years-old
•
Senior Citizens Assessment Freeze: Household Income of $55,000 or Less
•
Disabled Veterans’ (Standard): Service Related Disability (+50%)
•
Returning Veterans’: For the year you returned home from active duty and the
following year
•
Disabled Persons’: Cannot Participate in any Substantial Gainful Activity
These exemptions are applicable to the applicant’s primary residence only, that is owned by the
applicant, and where the applicant is responsible for the payment of the real estate tax.

37. (3) Tax Rate
• Calculated by County Clerk
• Represents the sum of the legally allowed
revenue requests for the taxing bodies in
the subject property’s area spread against
the total taxable value
• There are 372 taxing bodies in DuPage
County for the 2010 pay 2011 Tax Year

38. 3
3

39. Taxing Body Budget, Levy and Extension Cycle
(Process Starts in October for Many Districts – Ends in December)
Publishes Tentative Budget
Holds Public Budget Hearing
Passes Budget and Tax Levy
Truth-in-Taxation Publication
If Required, Holds Truth-in-Taxation Hearing
Certifies Levy to County Clerk for Tax Rate Calculation
Deadline: Last Tuesday in December

40. Basic Categories of Tax Districts
in DuPage County
•
Districts Restricted by the Property Tax Extension
Limitation Law (PTELL) a.k.a. Tax (Extension) Cap
•
Districts Not Governed by PTELL

41. Districts Restricted by Property Tax
Extension Limitation Law
• Typically Includes Schools, Non-Home Rule
Municipalities, Parks, Fire Protection, the County, and Townships
• Maximum Tax Rate Set by State Law
• Property Tax Increase Limited by Consumer Price Index
• Adjustments Allowed for New Property, Annexation and Other
Special Circumstances
• Tax Increase May Exceed PTELL Limitation or Maximum Statutory
Rate with Voter Approval
• 184 Districts are Restricted by PTELL in DuPage County

42. Districts Exempted from PTELL
• Typically Includes Home Rule Municipalities and Special Service
Area Districts
• Maximum Tax Rate Not Set By State Law
• Property Tax Increase Not Limited by PTELL
• 188 Districts were not Covered by PTELL for 2010 pay 2011 Bills in
DuPage County

43. PTELL Background
Tax (Extension) Cap
• Created to prevent taxing bodies from “balloon levying”
• Does not restrict individual tax bill changes
• Enacted 10/01/1991 for Collar Counties
• Expanded to Cook County on 02/12/1995
• May be adopted by referendum in other counties
Prior to PTELL: Average Annual Tax Bill Increase in DuPage County
was +13.6% (1985 to 1990 Tax Years)
After PTELL: Average Annual Tax Bill Increase in DuPage County has
been +4.9% (1991 to 2010 Tax Years)

44. Where Does My Money Go?
Chart Provided by County Clerk’s Office

45. Tax Rate Calculation
District Levy (Tax Revenue Request)
Total (Net Taxable) Assessed Value
= Tax Rate

46. Tax Rate Calculation Example 1 (2008)
County of DuPage, 2008 pay 2009 Levy
District Levy (Tax Revenue Request) :
Total (Net Taxable) Assessed Value:
$66,806,020
42,906,884,976
= Tax Rate: 0.001557
(or 0.1557 $ per 100)
Source: DuPage County Clerk

47. Tax Rate Calculation Example 2 (2009)
County of DuPage, 2009 pay 2010 Levy
District Levy (Tax Revenue Request) :
Total (Net Taxable) Assessed Value:
$66,634,870
42,879,581,802
= Tax Rate: 0.001554
(or 0.1554 $ per 100)
(-0.3% Decrease from Prior Year Levy)
Source: DuPage County Clerk

48. Tax Rate Calculation Example 3 (2010)
County of DuPage, 2010 pay 2011 Levy
District Levy (Tax Revenue Request) :
Total (Net Taxable) Assessed Value:
$66,942,567
40,351,156,012
= Tax Rate: 0.001659
(or 0.1659 $ per 100)
(+0.5% Increase from Prior Year Levy)
Source: DuPage County Clerk

49. Taxing Districts in DuPage
County: 1
Forest Preserve: 1
Water Commission: 1
Airport Authority: 1
Townships: 9
Township Special Police: 4
Township Mosquito: 1
Municipalities: 39
Parks: 40
Sanitary: 8
Fire Protection: 31
Mosquito: 5
Surface Water: 3
Library: 14
Street Lighting: 1
Special Service Areas: 162
Grade Schools: 30
High Schools: 8
Unit School Districts: 10
Junior Colleges: 3
Total: 372 Individual Taxing Districts in DuPage County
188 Are Exempted from Property Tax Extension Limitation Law

50. Important Resources
Township Assessors
(Assessed Value Questions, General or Home Improvement Homestead Exemptions)

Addison: (630) 530-8161, www.addisontownship.com

Bloomingdale: (630) 529-6927, www.bloomingdaletownshipassessor.com

Downers Grove: (630) 719-6630, www.DGTAO.com

Lisle: (630) 968-1183, www.lisletownshipassessor.com

Milton: (630) 653-5220, www.miltontownshipassessor.com

Naperville: (630) 355-2444, www.napervilletownship.com

Wayne: (630) 231-8900, www.waynetownshipassessor.com

Winfield: (630) 231-3573, www.winfieldtownship.com

York: (630) 627-3354, www.yorkassessor.com

51. Important Resources – Continued
County Offices: Property Tax Related
County Clerk: (630) 407-5540 http://www.dupageco.org/countyclerk/
• Billing Address Change
• Download an Individualized Property Tax Distribution Report
• Taxing District Boundary/Levy/Tax Rate Information
Supervisor of Assessments: (630) 407-5858, http://www.dupageco.org/SOA
• Assessment Appeal Deadline Information, Forms
• Download Duplicate Change of Assessment Notices
• General Information About Equalization Factors
• Senior, Senior Freeze, Disabled Persons’ Homestead Exemptions
Treasurer: (630) 407-5900, http://www.dupageco.org/treasurer/
• Apply for the Senior Tax Deferral Program
• Check your Property Tax Payment Status
• Download a Duplicate Copy of Your Property Tax Bill
• Enroll in Monthly Property Tax Prepayment Plan

52. Important Resources – Continued
State Offices : Property Tax Related
Illinois General Assembly http://www.ilga.gov/
•
View Illinois Property Tax Code
•
Review Pending Legislation
•
Contact your Legislators
Illinois Department of Revenue, Local Government Services, Property Tax Division: (217) 782-3627
http://www.revenue.state.il.us/LocalGovernment/PropertyTax/
•
State-wide Property Tax Statistics Reports
•
General Property Tax Related Publications
Property Tax Appeal Board: (217) 782-6076, http://www.state.il.us/agency/ptab/
•
Provides a Venue to Appeal a Local Board of Review Decision
•
Appeal Forms and Procedure Information Available for Download on Website
•
Check Status of a Pending PTAB Hearing

53. Questions & Answers
Thank You!