July 2022
We have a number of property tax issues for this newsletter.
TAX BILLS. We usually see the 2nd Installment tax bills mailed out on July 1 for an August 1 due date. We are being told not to expect a 2nd Installment 2021 tax bill mailing before December. The general media, Crains, Tribune, Sun-Times etc have been going into reasons for the delay so we will skip any attempt to explain here. But we do want to emphasize that taxing agencies could be receiving property tax revenue five months later than planned. These agencies could therefore incur costs, for example interest payments, that they did not budget for because they did not know about the delay when preparing their budgets.
Where does the tax bill come from? Taxing bodies file with the County Clerk for the amount of tax revenue they plan to receive, (the levies). The Assessor calculates the total value of all property within a taxing neighborhood, minus the exemptions, (the Equalized Assessed Value, EAV) and sends that information to the Clerk. To calculate the tax rate the Clerk divides the levies by the EAV. The Treasurer makes the tax bill by multiplying your property value by the tax rate, and mails the bill to you.
EXEMPTIONS. We are still taking in and processing exemptions. We will do so until the County gives us an end date. We want to get all of the exemptions filed before the County does the math to calculate the tax rate. The best practice for all of us is to get these exemptions filed when due and to stop relying on certificates of error. For more information on exemptions and the upcoming re-tax law, taxpayers can go to NilesTownshipAssessor.com and review archived email notices and newsletter articles.
2022 REASSESSMENT. It’s coming. We do not know exactly when. But, regardless, it is coming and there is nothing to be concerned about. The reassessment will get here when it gets here and we will deal with it. I predict that the County Assessor will see an increase in values from the prior reassessment. There is no evil motive here. The County Assessor is doing exactly what he is supposed to do. Reassessment is not an attempt to get more money from us (keep in mind that I, and my Deputy Assessor, live in Niles Township and pay property tax here just like you).
In basic terms, the sale prices of properties are used to value similar properties in the neighborhood. It’s mass appraisal. No one sends a certified, licensed appraiser out to each of 1.8 million properties to do a one on one appraisal. But mass appraisal does work.
If every single property in House A’s neighborhood increased by the precise same relative value, and the levy remained the same, then the tax rate would decrease and the tax bill would remain the same.
One way that helps to get a sense of the affect of a reassessment is to see the reassessment as tax burden shifting. After a reassessment, the properties will not be in the same relative position. Not every property in a neighborhood increases in value at the same rate as the others. Those properties that have a relatively higher value can expect a relatively higher tax bill. Those properties that have a relatively lower value can expect a relatively lower tax bill.
Let’s say, for example, that House A value is increased by 20% during reassessment. Does that mean House A’s property tax will increase 20%? No. Not at all. What matters is where House A fits in compared to other neighborhood property values. If all of the other properties increased by 30% then House A has a relative 10% decrease in value. On the other hand, if everyone else increased by 10% then then House A has a relative 10% increase in value.
This is a great big guess here but I would not be surprised to see 30% increases, which, if so, does not at all mean a 30% tax bill increase, or even mean any tax bill increase. When compared to other properties a 30% increase could even mean a lower tax bill.
APPEALS. There is no such thing as appealing the actual tax bill. Once that bill is calculated and sent out it is a done deal. But Niles Township taxpayers can appeal their property value. We are given the opportunity to go to the County and point out why we think a property is overvalued compared to other similar neighborhood properties. In terms of appealing the reassessment value, the first year, which happens to be 2022, will be the most important year to appeal because any reduction in 2022 will apply to 2023 and 2024.
In my office we have always provided great and valuable appeal assistance to Township taxpayers. Over the years, procedures have changed with development of technology. In the past two years we have modified our office protocol to reduce taxpayer risk to Covid. Since I do not have a date yet for the reassessment, and since I do not know what the status of Covid, or the World in general, will be at that point, I am unable to give you reassessment appeal dates and procedures.
But it is going to work out just fine anyway. We have an email notification procedure whereby we email property tax information to registered users. To register go to NilesTownshipAssessor.com.
UPCOMING EVENTS.
September 7, 2022, 7:00 pm, Niles Library. We will be working with the Niles Library to present a property tax information seminar. Go to https://nmdl.libnet.info/events?a=adults for additional information.
October 12, 2022, 6:00 pm. My office is going to renew the Estate Planning Series, which got bounced around on account of Covid. We will begin by presenting the ever popular and often requested Notebook seminar. Location TBD and will be sent out with the reservation confirmation. The Notebook seminar does require a confirmed reservation. Send an email to Assessor@nilestownshipgov.com and put “Notebook” in the subject line. Space is limited and this seminar fills up quickly.
Dates TBD. Appeal Preparation Seminars. In the past we have done as many as were necessary. We will do the same this year. As soon as we have a reassessment mailing date we will send appeal information to the email notification list. No Niles Township taxpayer has ever been left behind. 1.17
Register to receive e-mail notifications at NilesTownshipAssessor.com
We have a number of property tax issues for this newsletter.
TAX BILLS. We usually see the 2nd Installment tax bills mailed out on July 1 for an August 1 due date. We are being told not to expect a 2nd Installment 2021 tax bill mailing before December. The general media, Crains, Tribune, Sun-Times etc have been going into reasons for the delay so we will skip any attempt to explain here. But we do want to emphasize that taxing agencies could be receiving property tax revenue five months later than planned. These agencies could therefore incur costs, for example interest payments, that they did not budget for because they did not know about the delay when preparing their budgets.
Where does the tax bill come from? Taxing bodies file with the County Clerk for the amount of tax revenue they plan to receive, (the levies). The Assessor calculates the total value of all property within a taxing neighborhood, minus the exemptions, (the Equalized Assessed Value, EAV) and sends that information to the Clerk. To calculate the tax rate the Clerk divides the levies by the EAV. The Treasurer makes the tax bill by multiplying your property value by the tax rate, and mails the bill to you.
EXEMPTIONS. We are still taking in and processing exemptions. We will do so until the County gives us an end date. We want to get all of the exemptions filed before the County does the math to calculate the tax rate. The best practice for all of us is to get these exemptions filed when due and to stop relying on certificates of error. For more information on exemptions and the upcoming re-tax law, taxpayers can go to NilesTownshipAssessor.com and review archived email notices and newsletter articles.
2022 REASSESSMENT. It’s coming. We do not know exactly when. But, regardless, it is coming and there is nothing to be concerned about. The reassessment will get here when it gets here and we will deal with it. I predict that the County Assessor will see an increase in values from the prior reassessment. There is no evil motive here. The County Assessor is doing exactly what he is supposed to do. Reassessment is not an attempt to get more money from us (keep in mind that I, and my Deputy Assessor, live in Niles Township and pay property tax here just like you).
In basic terms, the sale prices of properties are used to value similar properties in the neighborhood. It’s mass appraisal. No one sends a certified, licensed appraiser out to each of 1.8 million properties to do a one on one appraisal. But mass appraisal does work.
If every single property in House A’s neighborhood increased by the precise same relative value, and the levy remained the same, then the tax rate would decrease and the tax bill would remain the same.
One way that helps to get a sense of the affect of a reassessment is to see the reassessment as tax burden shifting. After a reassessment, the properties will not be in the same relative position. Not every property in a neighborhood increases in value at the same rate as the others. Those properties that have a relatively higher value can expect a relatively higher tax bill. Those properties that have a relatively lower value can expect a relatively lower tax bill.
Let’s say, for example, that House A value is increased by 20% during reassessment. Does that mean House A’s property tax will increase 20%? No. Not at all. What matters is where House A fits in compared to other neighborhood property values. If all of the other properties increased by 30% then House A has a relative 10% decrease in value. On the other hand, if everyone else increased by 10% then then House A has a relative 10% increase in value.
This is a great big guess here but I would not be surprised to see 30% increases, which, if so, does not at all mean a 30% tax bill increase, or even mean any tax bill increase. When compared to other properties a 30% increase could even mean a lower tax bill.
APPEALS. There is no such thing as appealing the actual tax bill. Once that bill is calculated and sent out it is a done deal. But Niles Township taxpayers can appeal their property value. We are given the opportunity to go to the County and point out why we think a property is overvalued compared to other similar neighborhood properties. In terms of appealing the reassessment value, the first year, which happens to be 2022, will be the most important year to appeal because any reduction in 2022 will apply to 2023 and 2024.
In my office we have always provided great and valuable appeal assistance to Township taxpayers. Over the years, procedures have changed with development of technology. In the past two years we have modified our office protocol to reduce taxpayer risk to Covid. Since I do not have a date yet for the reassessment, and since I do not know what the status of Covid, or the World in general, will be at that point, I am unable to give you reassessment appeal dates and procedures.
But it is going to work out just fine anyway. We have an email notification procedure whereby we email property tax information to registered users. To register go to NilesTownshipAssessor.com.
UPCOMING EVENTS.
September 7, 2022, 7:00 pm, Niles Library. We will be working with the Niles Library to present a property tax information seminar. Go to https://nmdl.libnet.info/events?a=adults for additional information.
October 12, 2022, 6:00 pm. My office is going to renew the Estate Planning Series, which got bounced around on account of Covid. We will begin by presenting the ever popular and often requested Notebook seminar. Location TBD and will be sent out with the reservation confirmation. The Notebook seminar does require a confirmed reservation. Send an email to Assessor@nilestownshipgov.com and put “Notebook” in the subject line. Space is limited and this seminar fills up quickly.
Dates TBD. Appeal Preparation Seminars. In the past we have done as many as were necessary. We will do the same this year. As soon as we have a reassessment mailing date we will send appeal information to the email notification list. No Niles Township taxpayer has ever been left behind. 1.17
Register to receive e-mail notifications at NilesTownshipAssessor.com