Unequal property taxes in Chicago
March 7, 2016 8:35 AM Subscribe
All the owners in my 6-unit condo building pay different property tax rates. Some vary greatly (by several hundred dollars). How do I figure out if I am paying the correct (or lowest) amount I need to be paying? The building is in Chicago. The property tax situation here is messy and it is easy to be overcharged. Where do I go to figure this out? Preferably would not like to involve an attorney.
(I am in a smaller unit but pay more property tax than the person in the largest unit.)
(I am in a smaller unit but pay more property tax than the person in the largest unit.)
What is the value of the condo? What is the value listed on your property tax bill?
If the former number is lower than the higher number, you have a basis for appeal. Otherwise it is very normal for older owners to pay less in property tax. This is because the tax value can only go up a percentage each year, while the market value has no limit. When units come up on the market, the tax value resets.
posted by politikitty at 8:51 AM on March 7, 2016 [1 favorite]
If the former number is lower than the higher number, you have a basis for appeal. Otherwise it is very normal for older owners to pay less in property tax. This is because the tax value can only go up a percentage each year, while the market value has no limit. When units come up on the market, the tax value resets.
posted by politikitty at 8:51 AM on March 7, 2016 [1 favorite]
Taxes are based on the assessed value, which is adjusted when a property is sold, those lower amounts are probably because those properties were purchased a while back. Or, what politikitty said.
posted by HuronBob at 8:52 AM on March 7, 2016 [2 favorites]
posted by HuronBob at 8:52 AM on March 7, 2016 [2 favorites]
It's common for tax rates in condo buildings in Chicago to have varying tax amounts for units in the same building and size of the unit is only one factor. What you actually appeal is not your tax rate (property is all taxed at the same rate, but the amounts vary with value of the property), but the assessed value of your condo (your taxes are based on the assessed value, divided by 10 then multiplied by an equalization factor, then multiplied by the tax rate), and this is based upon condition, recent sales prices, which floor you're on, as well as the features of the condo itself. Generally speaking, appeals on taxes for condos are more successful when the entire building appeals than when a single unit owner appeals. This is because the common reason for appeals (the appraisal of your unit is not in line with similar properties in the neighborhood) usually includes comparisons with the other units in your building.
The forms and instructions are all on the Tax Assessor's website. Unfortunately, I don't know a good DIY guide to filling in the forms or making your best argument. And, as I seem to recall, the deadlines are pretty tight.
Not a tax lawyer, not even a property rights lawyer anymore. Definitely not offering you legal advice on how to appeal your property taxes.
posted by crush-onastick at 8:55 AM on March 7, 2016 [2 favorites]
The forms and instructions are all on the Tax Assessor's website. Unfortunately, I don't know a good DIY guide to filling in the forms or making your best argument. And, as I seem to recall, the deadlines are pretty tight.
Not a tax lawyer, not even a property rights lawyer anymore. Definitely not offering you legal advice on how to appeal your property taxes.
posted by crush-onastick at 8:55 AM on March 7, 2016 [2 favorites]
How do I figure out if I am paying the correct (or lowest) amount I need to be paying?
You can look up all the units in your building and compare their assessments here.
posted by beagle at 9:25 AM on March 7, 2016
You can look up all the units in your building and compare their assessments here.
posted by beagle at 9:25 AM on March 7, 2016
You can always appeal your assessment but it can wildly vary even given the same square footage and layout for condos in the same building. Higher floors always have higher assessed values. If you make modifications to increase the value of your condo, it will be reflected in the assessment.
posted by JJ86 at 9:48 AM on March 7, 2016
posted by JJ86 at 9:48 AM on March 7, 2016
A Citizen's Guide to Cook County Property Tax System explains how taxes are calculated and how to appeal.
About 10 years ago, I went through this process with the other owners in a 6 unit building—a lot of paperwork, but not terribly difficult. We were successful.
posted by she's not there at 10:09 AM on March 7, 2016 [1 favorite]
About 10 years ago, I went through this process with the other owners in a 6 unit building—a lot of paperwork, but not terribly difficult. We were successful.
posted by she's not there at 10:09 AM on March 7, 2016 [1 favorite]
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The amounts may vary because of the valuation of the condos individually, or because some of the owners are entitled to abatements that others aren't -- for energy-saving improvements, or for being senior citizens, or if they're owner-occupied.
The rates should probably be the same.
Maybe start here?
posted by Eyebrows McGee at 8:50 AM on March 7, 2016 [2 favorites]