If you are a homeowner in Cook County and 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. You may be asking yourself, why? Reassessment is just the process of re-evaluating your home’s value. It doesn’t inherently increase or decrease your home’s property tax bill.
Property tax bills are determined by your home’s assessed value and when the value of your home is determined it’s 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 factors that you should be aware of and that can raise your personal property tax bill.
1. State and Local Budget Cuts
If your local government has its budget cut, the money to supplement that cut has to come from somewhere. This hits home for all of us. Recently, Mayor Rahm Emmanuel approved a property tax increase in order to reform the budget. Government initiatives cost money and it has to come from somewhere.
2. State Employee Benefits
Property taxes are used to supplement state employee programs and pay for essential government services. Local schools and police department pension programs are some programs that our property taxes pay for.