Understanding the Basics of Property Tax Appeals
Appealing your property tax assessment can be an effective way to lower your tax burden, but many property owners make critical mistakes that can actually work against them. Before filing an appeal, it’s important to understand the potential pitfalls that could inadvertently increase your tax liability.
Check Your Property Record Card First
One of the most important steps in a property tax appeal is reviewing your property record card. Errors in the record could either work for or against you. If the assessor has omitted certain features—such as a finished basement, a garage, or an addition—filing an appeal might prompt a reassessment that increases your taxes rather than reducing them. In some cases, properties in Cook County are still assessed based on outdated data, even if substantial renovations have taken place. It is crucial to weigh the potential risks before initiating an appeal.
Speak with the Local Assessor Before Filing
In smaller jurisdictions, local assessors take great pride in their accuracy. Failing to speak with them before filing an appeal could damage your case. It is always advisable to have a conversation with the assessor first—either over the phone or in person. Explain your concerns, present your evidence, and give them an opportunity to correct any mistakes before escalating the issue. Assessors may prefer to make changes themselves rather than having a higher authority override their assessments.
Avoid Arguments That Won’t Work
One of the biggest reasons property owners lose their appeals is because they rely on arguments that hold no legal weight. For example, arguing that your taxes have doubled over the past ten years, while frustrating, is not a legally valid argument. Illinois property taxes can increase dramatically from year to year, particularly in Cook County, and there are no laws preventing such rapid changes. Instead of focusing on how much your taxes have increased, present legally relevant comparisons by analyzing similar properties in your neighborhood.
Make Apples-to-Apples Comparisons
When comparing your property to others, it’s essential to use the correct unit of measure. Simply looking at your neighbors’ tax bills is not helpful because their taxes may be affected by exemptions you don’t qualify for. Instead, compare the assessed value per square foot of above-ground living space to similar properties. If your home is assessed at a higher rate per square foot than comparable homes, you may have a strong case for an appeal.
Be Professional and Respectful in Commercial Appeals
For commercial property owners, professionalism is key. Some property tax appeal boards have raised assessments rather than lowered them due to an appeal representative’s disrespectful or aggressive behavior. It is critical to remain professional and courteous when dealing with administrative law judges and review boards to maximize your chances of success.
Beware of Unintended Consequences
If your appeal despite a purchase price that exceeds the assessor’s market value for assessment purposes, your efforts could lead to an increase in assessed value rather than a reduction. Property owners should carefully analyze whether challenging an assessment is the best course of action based on their specific circumstances.
Gather the Right Evidence
Before filing an appeal, homeowners should assess their property’s fair market value. A useful exercise is to ask: If I were to sell my home today, what price would I list it at? If the assessed value is in line with a competitive market analysis from a real estate broker, an appeal may not be worthwhile. Strong supporting documents include recent MLS listings, interior and exterior photos, and sales data from comparable properties.
Understanding the Differences Between Cook County and Collar Counties
Property tax assessment systems vary significantly between Cook County and surrounding collar counties. In Cook County, many homeowners are conditioned to appeal as a routine practice due to systemic assessment inconsistencies. However, in collar counties, assessors often have more accurate and up-to-date property data, making appeals more challenging unless there is a clear overassessment.
Submitting the Right Amount of Information
Providing excessive or irrelevant information can weaken an appeal. Data that directly supports your case, such as comparable property sales or evidence that simlar properties are assessed lower on a per-square-foot basis, is critical. However, submitting broad constitutional arguments or excessive unrelated documents will not strengthen your claim. Focus on concise, relevant, and legally valid arguments that directly address your property’s assessment.
The Future of Property Tax Assessments in Illinois
The Cook County Assessor is working towards greater data transparency, including mandatory data disclosures and improved information-sharing between assessment agencies. While these changes may take time, they could lead to fairer and more consistent property tax assessments in the future. Until then, property owners should take a strategic and well-informed approach to their tax appeals to maximize their chances of success.