Illinois Property Tax Law
The Illinois Compiled Statutes Section 35 Subsection 200 governs Illinois property tax laws. Illinois property taxes only apply to homeowners. Individuals who rent property are not liable for property taxes. However, many landlords pass the tax on to renters and roll it into the rent that they charge.
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Definition
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Under Illinois property tax law, homeowners must pay a tax on their property's value. Some people refer to this tax as an "ad valorem" tax. Ad valorem means "according to value." Local governments in Illinois impose the property tax against homeowners who live within their jurisdiction. Local officials administer, collect and spend the taxes on local projects such as schools. The Illinois state government has no independent property tax.
Assessment
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Local county and township officials assess the property value of an Illinois home to determine how much tax the homeowner owes. These local officials must keep accurate tax records on taxes assessed and taxes paid for all homes in their respective jurisdictions. Other than in Cook County, property in Illinois is assessed at 33 1/3 of the property's fair market value. Cook County assesses different properties on different levels based and divides properties into classes of properties. The range of assessment levels in Cook County is from 16 percent to 38 percent.
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Rate
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Each individual county determines its own tax rate based on the needs of the county for its respective budget every two years. The tax rate is equal to the tax base divided by the tax levy. The tax base is equal to the property's assessed value. The tax levy is the amount the county officials determine they need to raise in property taxes to meet their budgetary requirements.
Exemption
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Organizations that are exclusively charitable, educational, religious or a government agency may qualify for a property tax exemption. To qualify for an exemption the exempt organization must own the property and only use it for exclusive charitable, educational, religious or government purposes. If it is in any way used for profit or leased then it does not qualify for a property tax exemption.
Filing
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Illinois homeowners should check with their local county treasurer for property tax payment due dates. Many Illinois counties require homeowners to pay property taxes in two installments. The first installment is due June 1 and the second installment is due September 1 of each year. Cook County, however, use a different billing system. In Cook County, for example, the county treasurer mails out the first bill by January 31. Homeowners must pay this bill, which constitutes 50 percent of the previous year's tax bill, no later than March1. The county treasurer mails the second bill by June 1 and the homeowner must pay it no later than August 1.
Warning
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Contact a qualified attorney licensed to practice in Illinois or a tax professional to find out what obligations, if any, you have with regard to Illinois property tax laws, which are subject to change.
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References
- Illinois Compiled Statutes: Property Tax Code
- Illinois Department of Revenue: What is Property Tax?
- Illinois Department of Revenue: What is the tax rate for property?
- Illinois Department of Revenue: When do I have to pay my property taxes?
- Illinois Department of Revenue: Who qualifies for a property tax exemption?
Resources
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