SNN - Sep/Oct 2004

SNN Sep Oct 2004 2004 Property Tax Update by Paula Arnett based on information provided by Andrea A. Raila & Associates, Inc.* The “7 Percent Tax Cap” became law on July 12, 2004 and will be reflected on all 2003 Cook County second installment tax bills expected in November 2004 for owner-occupied residential properties. The so-called “cap” actually represents an increase in the Homeowner’s Exemption that translates to an increase in savings ranging from $388 to $1071. The new tax law allows Cook County Homeowner’s Exemptions to increase by subtracting a maximum of $20000 (as opposed to the current $4500) of Assessed Value from the Equalized Assessed Value. Use the accompanying chart to calculate your estimated 2004 second installment tax bill. Although coined the “7 Percent Tax Cap,” many property owners of owner-occupied residences will still find that their 2003 tax bills exceed 7%. The “7 Percent Tax Cap” expires after one three-year triennial cycle; however the legislature can challenge and even remove the bill earlier than the triennial’s end. If you have not appealed your 2004 assessed valuation, you can still file an appeal based on lack of uniformity for 2005 and 2006. Once the appeal date is published, you have 45 days to file an appeal. You can file an appeal yourself or there are many attorneys who can prepare your tax appeal. A course, “How to Appeal Your Real Estate Tax Reassessment” by Andrea A. Raila, will be conducted on Oct 4, 2004 from 6:30 to 8:00 pm at the Latin Upper School for a course fee of $35. (See www.latinschool.org to register or call 312.582.6035.) How to Calculate the “7 Percent Tax Cap” Your need the Cook County Assessor’s Office Notice of Proposed Assessed Valuation for Taxes Payable in 2004. 1. Calculate the full equalized assessed value for 2002 and 2003 A. Enter the PRIOR 2002 Assessed Value ______________ B. Multiple by the 2002 State Equalization Factor x 2.4689 C. Equals 2002 Full Equalized Assessed Value (EAV) ______________ D. Enter the PROPOSED 2003 Assessed Value ______________ E. Multiply by the 2003 State Equalization Factor x 2.41 F. Equals Full Equalized Assessed Value (EAV) ______________ 2. Calculate the Base Homeowner’s Valuation A. Enter the 2002 Full EAV (Step 1 Line C) ______________ B. Subtract $4500 - $4500 C. Equals 2003 Base Homeowner’s Valuation ______________ 3. Calculate the 2003 Adjusted Homeowner’s Valuation (Cap the Assessment Increase by 7%) A.Enter 2003 Base Homeowner’s Valuation(Step 2 Line C) ______________ B. Multiply by 7% x 0.07 C. Equals the 7% increase ______________ D. Add Line A and Line C for 2003 Adjusted Homeowner’s Exemption ______________ 4. Calculate the Homeowner’s Exemption A. Enter 2003 Full EAV (Step 1 Line F) ______________ B. Enter 2003 Adjusted Homeowner’s Exemption ______________ C. Subtract Line B from Line A ______________ D. If Line C < $4500, enter $4500 If Line C > $4500, enter $20000 If Line C is between $4500 and $20000, enter amount of Line C for Homeowner’s Exemption ______________ 5. Calculate 2003 Taxes payable in 2004 A. Enter 2003 Full EAV (Step 1 Line F) ______________ B. Enter Homeowner’s Exemption (Step 4 Line D) ______________ C. Subtract Line B from Line A for Taxable EAV ______________ D. Multiply Line C by proposed tax rate of 0.063 x 0.063 E. Equals Tax Due ______________ *Andrea A. Raila & Associates, Property Tax Consultants, 676 N LaSalle Street, Suite 520, Chicago, IL 60610-3720, 312.587.9494, www.TaxesTooHigh.com. Paula Arnett, GRI, CRS, ABR, is a Broker Associate with Sudler (formerly Beliard Gordon and Partners) 1650 N Wells, and a member of the SNA Board of Directors.

 

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