How a House Is Taxed in Illinois for Property Taxes?
In Illinois, each township determines its own property tax rates to fund its community services and public schools and allow local taxing districts to determine their own tax rates for the county's community services. After setting its tax rate and based on assessments, county clerks calculate the entire total tax bill each county resident owes to the government.
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Tax Cycles
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Townships levy property taxes using a two-year cycle. In the first year, the tax assessor assigns a property value based on the fair market value of the resident's real property. In the second year, the township sends tax bills to local tax authorities or taxing districts. Local taxing districts determine how much revenue they need to collect from the district's residents to fund local programs. Local taxing districts will divide their revenue needs by each homeowner's assessment value to determine individual tax liabilities. The local taxing district sends its portion of the total tax bill each homeowner owes back to the township. Townships use state equalization values based on the Illinois Department of Revenue's equalization assessment value for each county.
County Collectors
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After determining the aggregate tax rate, county collectors prepare tax bills for each local government or township. County clerks assign tax codes by geographical area. Tax bills may increase every few years due to an increase in county tax rates and inflation. County assessors mail tax bills by May 1 in the year after tax assessors conduct valuations.
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Assessment Valuations
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Under Illinois law, county assessors must reassess all real estate every four years, except for farmland, which assessors reassess annually. In Cook County, Illinois, tax assessors reassess non-farmland property once every three years. Using standard equalization values, tax assessors must assess non-farm property at one third of its fair market value, although counties have discretion to slightly increase or decrease their tax assessment equalization rates.
Tax Bills
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Homeowners receive their tax bills after May 1. Homeowners pay two installments in equal increments due on June 1 and September 1. When county clerks mail late tax bills, homeowners owe their first installments 30 days after the clerk mails the tax bills. Second installments are due September 1, regardless of the original mailing date. County clerks also mail tax bills to mortgage lenders when residents obtain financing for their homes. Based on recorded deeds, tax bills are sent to mortgage lenders with a copy sent to the homeowner. Counties in Illinois have the legal option of using quarterly installment systems instead of using semiannual installment payments, allowing homeowners to pay their bills in four equal increments. Qualified taxpayers may apply for homestead tax relief programs through their county governments to reduce their tax liabilities.
Considerations
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Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.
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References
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