Property Assessments vs. Property Taxes in the Current Market
The real estate market has been making headlines in the media for some time now. With foreclosures on the rise, increased marketing time and lenders tightening their guidelines we are experiencing lower home prices which are reflecting current market conditions. So, why wouldn’t assessments decrease as well?
The Assessor’s office is mandated by law to value all property at 1/3 of its fair market value as of January 1st of each year. The County and State monitor the Townships values using a 3 year sale study. This ensures that in years of rapid real estate growth or rapid decline, the assessments remain stable.
The 2008 assessments were arrived at using 2005, 2006 and 2007 sales which were very strong years. The 2009 assessed values will use 2006, 2007 and 2008 sales which will be the first time the current market will begin to influence the assessments.
Our office is fully aware of the challenges we are facing in attempting to borrow, sell or maintain a home in the current environment. We continue to closely monitor the real estate market and are continuously working as an advocate for the taxpayer. Please keep in mind the restraints of the State of Illinois requirement to use the Three (3) prior years of sales vs. most current.
Regardless of the real estate market, taxes will increase or decrease based on the monetary needs of the taxing bodies such as schools, cities and villages, libraries and park districts.
IN SUMMARY: AS PROPERTY ASSESSMENTS DECREASE THE TAXING DISTRICTS RATES INCREASE AND OUR TAX DOLLARS REMAIN THE SAME.
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