What does the property tax cycle and a puzzle have in common??? - - PowerPoint PPT Presentation

What does the property tax cycle and a puzzle have in common???

The property tax cycle has a lot of pieces that have to come together before it can become a tax bill. Just as a puzzle has to have all of its pieces put together before it is a picture.

This section of the tax bill is where all the pieces of the puzzle have to come together. There are basically six steps which takes nearly 2 years for this to happen.

Assessment, Review, Equalization, Levy, Extension & Collection and Distribution

Players of this puzzle

The biggest contributors to the puzzle as far as the property tax cycle are:

• Township Assessors
• CCAO & Staff
• Board of Review
• County Clerks Office
• Treasurers Office
• Department of Revenue

Other contributors to the puzzle that impact the property tax cycle are:

• Legislators – by adding new

laws

• Property Tax Appeal Board –

by lowering an assessment that the Board of Review considered final

• Taxing Bodies – determine

their budget which will then result in the levy amount required from the property tax to fund their budget

First Piece of the puzzle

Assessments

The Township Assessor plays the biggest part of the puzzle……WHY?

Because they are the first piece and everything that follows in the cycle depends on how well they do their job. An assessment involves four steps:

• 1. identifying the real property within a jurisdiction
• 2. listing it
• 3. appraising it
• 4. placing a value for the property on the tax rolls

This value is known as the assessment and is the basis for determining what portion of the total tax burden each property owner as of January 1 will bear. The statutory assessment level is 33 1/3 of market value except in Cook County.

What if the assessor does not complete their job???

• Assessments are not uniform and equitable
• If an assessment is too high, the taxpayer is paying more

than their fair share of the tax burden

• If an assessment is too low, the taxpayer is not paying their

fair share of the tax burden.

• This can contribute to tax rates being higher than they

should be

With 2019 being a general assessment (quadrennial)year, the assessor, in person or by deputy, shall actually view and determine as near and practicable the value of each property listed for taxation of January 1st

• f that year and return the assessment books to the CCAO by June
• 15th. (ILCS 200/9-155)

In LaSalle County

• We have 37 townships with 18 township

assessors that are either elected or contracted. Our total parcel count is approx. 70,000 county wide.

• Township assessors are responsible for assessing

residential properties & farm parcels (not including farmland) which is about 50,000 of the 70,000 parcels.

• Commercial & Industrial is done at the county

level with about (6,000) total parcels

LASALLE COUNTY Township Multipliers 2016 to 2019

Township of LaSalle County

Township Number

2016 2017 2018 2019

ADAMS 04 1.0781 1.0016 1.0448 1.0383 ALLEN 35 1.0024 .9628 1.0042 1.1398 BROOKFIELD 29 1.1476 1.0000 1 1.0309 BRUCE 33 1.0158 .9315 1.0054 1.0491 DAYTON 14 1.0273 1.0403 1.0511 1.0695 DEER PARK 20 .9410 1.0049 1.0706 1 DIMMICK 11 1.0509 .9724 1.0738 1.0131 EAGLE 32 .9468 .9798 1.0180 1.0613 EARL 03 1.0437 1.0700 1.0957 1.0399 EDEN 25 1.0301 1.0103 1.0878 1.0094 FALL RIVER 23 .9850 .9999 .9976 1.0925 FARM RIDGE 27 1.0233 .9701 1.0076 1.0205 FREEDOM 08 1.0536 1.0839 1.1031 1 GRAND RAPIDS 28 1.0580 1.1132 1.0416 1.0599 GROVELAND 37 1.0514 1.0227 1.0416 1.0384 HOPE 30 1.0567 1.0857 1.0432 1.0023 LASALLE 18 1.0364 1.0165 .9991 1.0190 MANLIUS 24 1.0000 .9949 1 1.0033 MENDOTA 01 1.0313 1.0445 1.0128 1.0224 MERIDEN 02 .9353 1.0714 1.1110 1.0850 MILLER 16 1.0108 1.0149 .9917 1.0114 MISSION 10 .9684 .9985 1.0655 1.0547 NORTHVILLE 05 1.0523 1.0246 1.0341 1.0601 OPHIR 07 .9421 1.0000 1.0341 1.1114 OSAGE 36 1.0200 1.0409 1.0211 1.0477 OTTAWA 21 1.0483 1.0448 1.0316 1.0246 OTTER CREEK 34 .9792 .9970 .9726 .9878 PERU 17 1.0352 1.0341 1.0109 1.0271 RICHLAND 31 1.0483 1.0100 1 .9801 RUTLAND 15 1.0105 1.0165 1.0243 1.0243 SERENA 09 1.0500 1.1173 .9823 1.0401 SOUTH OTTAWA 22 1.0449 1.0370 1.0222 1.0262 TROY GROVE 06 1.0421 .9815 .9803 1.0601 UTICA 19 1.0347 1.0000 1.0403 1.0393 VERMILLION 26 1.0554 1.0998 1.1321 1.0999 WALLACE 13 .9800 1.0175 1.0131 1.1100 WALTHAM 12 1.0771 1.1283 1.1114 1

How well did the LaSalle County Township Assessors do in completing the 2019 Quadrennial Year Assessments?

Out of 37 townships:

• 3 - completed the 2019 quadrennial

year assessments

• 4 - came very close to complete
• 17 – not even close to complete
• 13 – newly contracted in 2018 not

expected to complete until 2023 quad. yr.

What to do about this:

The CCAO has contacted the States Attorneys Office and made them aware of those township assessors that did not meet their statutory duties per statute:

• 35 ILCS 200/9-155 (Quadrennial assessment be done

every 4 years).

• 35 ILCS 200/9-230 (The County Board may submit a bill

to the townships in order to recoup costs incurred for the CCAO completing the assessments) The only problem is that this statute does not say what would happen if the townships do not pay the counties for doing the work the assessors were required to do.

• Statute 35 ILCS 200/25-25 (Failure of officer to perform

duties if no other penalty provided)

Assessments need to be done first and when done they need to be done correctly!!!!!

This ends the Assessment portion of the presentation! Any questions????

35 ILCS 200/15-175 GENERAL HOMESTEAD EXEMPTION

Lets talk about Section (e) of this statute. This section of the homestead exemption (Owner Occupied) addresses if you lease a home and the lessee is liable for the payment of property taxes, they will receive the homestead exemption which is 6,000 off of their EAV.

The Problem we have in our County

We have multiple home owners that own multiple properties and are having all of their renters sign a lease with the verbiage that the lessee is liable for paying the taxes. Reality: this now allows the lessee to receive every homestead exemption they qualify for: senior, senior freeze, disabled, veterans disabled etc.. However, the rent stays the same amount and is not based on what the lessees decrease is due to exemptions. The owner is getting the benefit of these exemptions.

pin exname assessyear Total EAV Exempt AMT 17-08-410-018 OWNER OCCUPIED 2019 30219 6000 17-08-411-002 OWNER OCCUPIED 2019 36451 6000 17-09-319-007 OWNER OCCUPIED 2019 31138 6000 17-16-102-008 OWNER OCCUPIED 2019 42951 6000 17-16-110-019 OWNER OCCUPIED 2019 23983 6000 17-16-111-007 OWNER OCCUPIED 2019 17409 6000 17-16-112-017 OWNER OCCUPIED 2019 20766 6000 17-16-121-018 OWNER OCCUPIED 2019 27788 6000 17-16-201-007 OWNER OCCUPIED 2019 15032 6000 17-16-203-001 OWNER OCCUPIED 2019 27198 6000 17-16-234-004 OWNER OCCUPIED 2019 18438 6000 17-16-246-002 OWNER OCCUPIED 2019 17474 6000 17-16-250-001 OWNER OCCUPIED 2019 20977 6000 17-16-302-003 OWNER OCCUPIED 2019 25960 6000 17-28-401-000 OWNER OCCUPIED 2019 34248 6000 18-10-111-019 OWNER OCCUPIED 2019 22138 6000 18-10-112-001 OWNER OCCUPIED 2019 20188 6000 18-10-113-003 OWNER OCCUPIED 2019 16284 6000 18-10-115-004 OWNER OCCUPIED 2019 25066 6000 18-10-210-002 OWNER OCCUPIED 2019 28103 6000 18-10-300-009 OWNER OCCUPIED 2019 24687 6000 18-10-300-036 OWNER OCCUPIED 2019 26263 6000 18-10-315-008 OWNER OCCUPIED 2019 40322 6000 18-10-317-040 OWNER OCCUPIED 2019 19090 6000 18-10-318-008 OWNER OCCUPIED 2019 28251 6000 18-10-322-004 OWNER OCCUPIED 2019 21763 6000 18-10-322-005 OWNER OCCUPIED 2019 27672 6000 18-10-324-008 OWNER OCCUPIED 2019 38107 6000 18-10-341-003 OWNER OCCUPIED 2019 41219 6000 18-10-400-018 OWNER OCCUPIED 2019 12894 6000 18-10-408-033 OWNER OCCUPIED 2019 19346 6000 18-15-100-001 OWNER OCCUPIED 2019 21629 6000 18-15-101-009 OWNER OCCUPIED 2019 26661 6000 18-15-114-003 OWNER OCCUPIED 2019 26582 6000 18-15-123-001 OWNER OCCUPIED 2019 24572 6000 Total EAV Total Exempt 18-25-318-005 OWNER OCCUPIED 2019 40669 6000 941538 216000

17-16-235-016 OWNER OCCUPIED 2019 10563 6000 17-16-321-001 OWNER OCCUPIED 2019 21421 6000 17-16-330-011 OWNER OCCUPIED 2019 12997 6000 17-16-400-012 OWNER OCCUPIED 2019 12247 6000 17-16-409-009 OWNER OCCUPIED 2019 14981 6000 17-16-411-009 OWNER OCCUPIED 2019 11838 6000 17-16-415-016 OWNER OCCUPIED 2019 13340 6000 17-17-110-010 OWNER OCCUPIED 2019 19644 6000 17-17-409-011 OWNER OCCUPIED 2019 10886 6000 17-17-461-012 OWNER OCCUPIED 2019 16244 6000 18-10-201-022 OWNER OCCUPIED 2019 16304 6000 18-15-100-012 OWNER OCCUPIED 2019 13717 6000 18-15-126-008 OWNER OCCUPIED 2019 12690 6000 18-15-130-016 OWNER OCCUPIED 2019 14897 6000 18-15-138-007 OWNER OCCUPIED 2019 11105 6000 18-15-224-008 OWNER OCCUPIED 2019 13031 6000 18-15-237-004 OWNER OCCUPIED 2019 13454 6000 18-15-241-015 OWNER OCCUPIED 2019 12407 6000 18-15-243-008 OWNER OCCUPIED 2019 12908 6000 18-15-243-011 OWNER OCCUPIED 2019 14266 6000 18-15-306-008 OWNER OCCUPIED 2019 20606 6000 18-15-307-005 OWNER OCCUPIED 2019 16983 6000 18-15-311-025 OWNER OCCUPIED 2019 12975 6000 18-15-316-006 OWNER OCCUPIED 2019 15048 6000 18-15-321-019 OWNER OCCUPIED 2019 12128 6000 18-15-410-013 OWNER OCCUPIED 2019 11692 6000 18-15-412-016 OWNER OCCUPIED 2019 12104 6000 18-15-419-015 OWNER OCCUPIED 2019 14810 6000 Total EAV Total Exempt 18-15-424-013 OWNER OCCUPIED 2019 11227 6000 406513 174000 15-49-211-005 OWNER OCCUPIED 2019 30450 6000 15-49-301-017 OWNER OCCUPIED 2019 14338 6000 15-49-405-031 OWNER OCCUPIED 2019 19261 6000 15-49-424-003 OWNER OCCUPIED 2019 17774 6000 15-49-424-005 OWNER OCCUPIED 2019 17845 6000 21-02-316-014 OWNER OCCUPIED 2019 21438 6000 24-18-107-017 OWNER OCCUPIED 2019 19163 6000 24-18-305-009 OWNER OCCUPIED 2019 8649 6000 24-18-308-019 OWNER OCCUPIED 2019 22068 6000 24-18-434-019 OWNER OCCUPIED 2019 18652 6000 24-19-102-020 OWNER OCCUPIED 2019 15618 6000 Total EAV Total Exempt 24-20-100-012 OWNER OCCUPIED 2019 15466 6000 220722 72000 17-16-324-006 OWNER OCCUPIED 2019 13455 6000 18-10-339-027 OWNER OCCUPIED 2019 27149 6000 18-10-413-013 OWNER OCCUPIED 2019 20958 6000 18-14-106-008 OWNER OCCUPIED 2019 17520 6000 18-14-106-009 OWNER OCCUPIED 2019 32239 6000 18-15-127-007 OWNER OCCUPIED 2019 18342 6000 18-15-140-007 OWNER OCCUPIED 2019 22418 6000 18-15-217-001 OWNER OCCUPIED 2019 21139 6000 18-15-236-017 OWNER OCCUPIED 2019 18487 6000 18-15-240-014 OWNER OCCUPIED 2019 20380 6000 Total EAV Total Exempt 18-15-402-001 OWNER OCCUPIED 2019 20083 6000 232170 66000 Total EAV 1800943 528000 Total EAV 1,800,943 - Exemption Amt 528,000 = 1.272.943 Taxable EAV Per statute: (35 ILCS 200/15-175) General homestead exemption (For leased property see "e")

PTAX-342 Application for Standard Homestead Exemption for Veterans with Disabilities (SHEVD) 35 ILCS 200/15-169

• Who is eligible?

– Own and occupy the property as the primary residence during all or a portion of the assessment year OR lease and occupy a single family residence during all or a portion of the assessment year and our liable for the payment of the property taxes to the county.

What will it take to lower tax rates

• Township assessors to do their jobs, assess property

equitably and fairly

• Townships to make sure assessors have the staff and

equipment to get the job done

• County Boards to make sure the County assessor has

the staff and equipment to get the job done

• Look at current exemption statutes and make changes

where needed

• Recognize that exemptions take away from the tax base

and in turn increase the tax rates