Why your property taxes keep going up?

The most common reason that we pay more in property taxes from year-to-year is because it’s a re-assessment year.  Property values have gone up over the years, and now that you are re-assessed, you must pay more in taxes because your house is worth more.  But many people wonder why their property tax bill went up during those in-between years when there was no re-assessment. What gives?

Here are some of the main reasons why your property tax bill might go up, even though it is not a re-assessment year:

1. Changes to the State Equalizer.  ​In Cook County, the kind of property one owns determines the assessment level of that property (Residential=10%; Commercial=25%; etc.).  For all other counties, properties are assessed at 33 1/3%. Because of this difference in assessments, the legislature applies a multiplier to achieve uniformity between Cook County and the remaining counties.  As buildings are constructed or demolished, the equalizer must change from year-to-year, which may result in you paying more.
2. Changes to the deduction amount.  ​In 2017, changes were made to the homeowner, senior citizen, and senior freeze exemptions. Because of those changes, some people may pay more in property taxes. 
3. Failing to claim a deduction. ​A person who fails to claim a deduction misses out on the tax savings.  As a result, they end up paying more than their fair share for that year.  In such situations, the person can actually obtain a refund by filing for a Certificate of Error. 
4. Local taxing body needs more money. ​Your community needs more police, fire personnel, maintenance crew, and/or updated facilities.  When the need for cash goes up, your local tax rate goes up which means that everyone needs to pay more in taxes. 
5. That large mall went belly up. More taxable property means that the revenues that must be generated from taxes can be split between the many different property owners. However, when companies go out of business, the tax burden that was on those companies must be shared across the rest of the taxed population. Thus, you must pay more. 
6. And many more. . . ​Anything that would decrease the revenue from other properties in your locale would increase your tax bill, including but not limited to: properties made unlivable because of fire or flood, vacant commercial properties in a down market, re-zoning or re-districting that decreases home values, a commercial property that won an appeal and reduced their tax liability my multiple millions of dollars; etc. 

         Although many things can cause an increase in your property taxes, appealing your property taxes is one tool you have to prevent you from paying more than your fair share. Contact the Law Office of Clyde Guilamo, LLC to file your next property tax appeal.