Sheffield Neighborhood News

May/June 1999

How to understand your Cook County real estate tax bill

BY PAULA ARNETT

Paying taxes can be confusing and overwhelming task, and real estate taxes are no exception. Your real estate tax bill is composed of several factors and clearly understanding the definitions of certain rates, values and levels might help you make sense of your bill.

Assessment Level: The rate at which property is assessed. Single family homes, condos, coops and apartment buildings, six units and under, are assessed at sixteen percent.

Assessed Value: The market value multiplied by the assessment level for your type of property.

Equalized Assessed Value (EAV): The assessed valuation multiplied by the equalization factor.

Equalization Factor: A number determined each year by the Illinois Department of Revenue to even out or "equalize" by county, assessed values across the state. It is also called the multiplier.

Market Value: What your property could sell for on the open market.

Tax Levy: The dollar amount in real estate taxes requested by a taxing body.

Tax Rate: The result of dividing the spending request of a particular local government or school district by the total equalized valuation of all properties in that area.

Homeowner Exemption: A savings of approximately $500 if you have resided at your property as the principal place of residence as of January 1 of the year in question. The Assessor mails a Homeowner Exemption Card to every residential property owner every year. The qualified property owner must sign the card and return it to the Assessor's Office in order to receive the exemption.

Senior Citizen Exemption: A savings of approximately $250 if you are 65 or older. You must complete an application and provide proof of your age. This exemption automatically qualifies you for the Homeowner Exemption.

Senior Citizen Assessment Freeze Exemption: This exemption freezes the equalized assessed value of the property if you qualify for the Senior Citizen Exemption and have a total household income of $35,000 or less.

Home Improvement Exemption: A delay in taxation for at least four years on expansion and renovation improvements worth up to $45,000.

Real estate taxes are paid in two installments and in arrears. The first installment, due in the spring, is one half of the prior year's bill. The second installment, due in the fall, reflects the change in the amount of the equalization factor, the tax rate, and the assessed value.

Every three years, the Cook County Assessor reviews the assessed value of your property and assigns the market value. The main factor the Cook County Assessor uses to determine the value of your property is to review what similar properties sold for in your neighborhood since the last reassessment. The last reassessment was for the 1997 tax bill (paid in 1998). The next reassessment will be for the 200 tax bill due in 2001.

Use the following example to calculate your Cook County tax bill (based on a home with an estimated Market Value of $300,000.