If you are one of the thousands of homeowners in Cook County that is bracing yourself for a massive property tax increase this year, you may be asking yourself “How much, and why me?” It’s not uncommon for homes in reassessment districts to have massive property tax increases, but why? Reassessment is just the process of re-evaluating your home’s assessed value, it doesn’t inherently increase or decrease your home’s property tax bill. So what does?
Before we get started, remember, a property tax bill is determined by your home’s assessed value multiplied by the government’s tax rate. It’s actually pretty simple; if your property taxes change, the government’s tax rate OR your home’s assessed value is responsible. We’ve identified 10 factors that you should be aware of that can raise your personal property tax bill. To start off, let’s look at the state:
1. State and Local Budget Cuts
If your local government has its budget cut, the money to supplement that cut has to from somewhere. With TurboAppeal’s headquarters in Chicago, this one hits home in a very real way for all of us. Recently, our Mayor Rahm Emmanuel approved a historic property tax increase in order to reform the budget. All government initiatives cost money, and it has to come from somewhere.
2. State Employee Benefits
This is closely related to the budget cuts above. Property taxes are used to pay for essential government services. For example, in Chicago, $45 million of the recent property tax increase is earmarked for the Chicago Public School system, while another (undisclosed) amount of the property tax hiked is going towards the Chicago Police Department pension program.
Read more of this blog by Eric Obeysekere: http://bit.ly/2rvs8AH