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 Other contributors to the puzzle that as far as the property tax cycle are: impact the property tax cycle are: • Legislators – by adding new • Township Assessors laws • CCAO & Staff • Property Tax Appeal Board – • Board of Review by lowering an assessment • County Clerks Office that the Board of Review considered final • Treasurers Office • Taxing Bodies – determine • Department of Revenue 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 1 st of that year and return the assessment books to the CCAO by June 15 th . (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 Township County 2016 2017 2018 2019 Number 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.