Q: Why does my property tax bill keep going up when the value of my home is going down?
A: Every Illinois county requires enough money to operate regardless of real estate market values. Illinois law allows each county to increase property tax rates each year to obtain the needed funds. The tax rate may be increased by the lesser of 5 percent or the rate of inflation (Consumer Price Index). In 2009, the CPI rose 2.7 percent.
Q: If the market value of my home is falling, why doesn’t my township assessor decrease my property’s fair cash value and lower my bill? A: The fair cash value of a property reflects a three-year average. Over time, the assessed value of your home may decrease if the value remains down. But lowering the assessed value will not necessarily lower your property tax bill, since the assessed value is only used to determine your property’s portion of the total county property tax. Lowering the fair cash values of all properties equally will not change your portion of the total tax needed to operate the county governments.
Keep an eye open for more Q & A’s about property assessments and information in future editions of the Sun Day.
