PTAX-1004, The Illinois Property Tax System

Illinois Department of Revenue

A general guide to the

local property tax cycle

The

Illinois

Property

Tax

System

Page 2 The Illinois Property Tax System

Illinois Department of Revenue property tax administration responsibilities

The Department administers the following aspects of the property tax system:

• Providestechnicalassistanceandtrainingtolocalocials

• Maintains taxing district maps

• Approves non-homestead exemptions

• Equalizes assessments among counties

• Administers personal property replacement taxes

• Assesses railroad operating property and pollution control facilities

• Publishes assessment information and appraisal and assessment manuals

• Certiesannualfarmlandvaluestocounties

• Awardsperformancebonusesandstipendstoassessmentocials

For more information about property taxes

Visit:

tax.illinois.gov - The Illinois Department of Revenue website

www.ilga.gov - The Illinois General Assembly website

www.ptab.illinois.gov - The Illinois Property Tax Appeal Board

Write:

PROPERTY TAX DIVISION

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19033

SPRINGFIELD, ILLINOIS 62794-9033

Call:

217 785-1356

Property Tax Code Statutes:

35 ILCS 200/1-1 et seq.

Printed by authority of the state of Illinois - website only

PTAX-1004 (R-12/22)

The Illinois Property Tax System Page 3

Table of Contents

Introduction ____________________________________________________________________________________________ 5

Propertytaxdened ...........................................................................................................................................................5

Property taxed in Illinois .....................................................................................................................................................5

Most people and businesses pay property tax ................................................................................................................... 6

Where the taxes go ............................................................................................................................................................6

The property tax cycle ........................................................................................................................................................ 6

Non-farmland property assessment administration cycle ..................................................................................................7

Budget, levy, tax extension, and collection cycle ...............................................................................................................8

Farmland Assessment Process ..........................................................................................................................................9

Step 1, Assessment ___________________________________________________________________________________ 10

Theassessor’stitleandqualications..............................................................................................................................10

Properties assessed by the State of Illinois .....................................................................................................................10

Market value .....................................................................................................................................................................10

Non-farm property assessment process .......................................................................................................................... 11

Farmland assessment process ........................................................................................................................................ 11

Reassessments ................................................................................................................................................................12

Assessment change notices ............................................................................................................................................13

Reasons property assessments may increase ................................................................................................................13

Step 2, Review ________________________________________________________________________________________ 13

Board of review composition ............................................................................................................................................13

Board of review powers and duties ..................................................................................................................................14

Assess omitted property ..............................................................................................................................................14

Homestead exemption decisions and non-homestead exemption recommendations .................................................14

Ensure equitable assessments .................................................................................................................................... 14

Review complaints ....................................................................................................................................................... 14

  Beforelingawrittencomplaint ...............................................................................................................................14

Filing a written complaint with the board of review ..................................................................................................15

Possible grounds for property tax appeals ..............................................................................................................15

FilinganappealwiththePropertyTaxAppealBoard,orlingataxobjectionincircuitcourt ..........................................16

Filing an appeal with the Property Tax Appeal Board ..................................................................................................16

 Filingataxobjectionwiththecircuitcourt ...................................................................................................................16

Step 3, Equalization ___________________________________________________________________________________ 17

Assessment levels must be uniform .................................................................................................................................17

How uniformity is achieved ..............................................................................................................................................17

Howthestateequalizationfactoraectsassessments ...................................................................................................18

Assessment variation among counties .............................................................................................................................18

Step 4, Levy ___________________________________________________________________________________________ 19

How a taxing district develops its budget .........................................................................................................................19

Truth-in-Taxation Law - Levy ............................................................................................................................................19

Page 4 The Illinois Property Tax System

Table of contents

Step 5, Extension _____________________________________________________________________________________ 20

When the county clerk extends taxes ..............................................................................................................................20

Calculating the tax rate ....................................................................................................................................................20

Thetaxbase’seectonthetaxrate ................................................................................................................................20

Tax rates may be limited ..................................................................................................................................................20

The Property Tax Extension Limitation Law (PTELL) .......................................................................................................21

 ThePTELL’seectonindividualtaxbills .....................................................................................................................21

Calculating the tax bill ......................................................................................................................................................22

Why tax bills increase ......................................................................................................................................................22

Step 6, Collection and Distribution ___________________________________________________________________ 23

Tax bill information requirements .....................................................................................................................................23

Taxobjectioncomplaints ..................................................................................................................................................24

The tax distribution process .............................................................................................................................................24

Enforcement actions for delinquent taxes ........................................................................................................................24

Tax sales ...................................................................................................................................................................... 25

Annual tax sale .......................................................................................................................................................25

Sale of forfeited taxes and scavenger sales ............................................................................................................ 25

When to redeem properties sold for delinquent taxes .............................................................................................25

How much must be paid to redeem the property .....................................................................................................25

Tax deed proceeding ...............................................................................................................................................25

Property Tax Exemptions and Incentive and Relief Programs ______________________________________ 26

Non-homestead exemptions ............................................................................................................................................26

Homestead exemptions ...................................................................................................................................................26

Preferential assessments ................................................................................................................................................. 28

Incentives .........................................................................................................................................................................31

Other types of property tax relief ...................................................................................................................................... 31

Glossary _______________________________________________________________________________________________ 32

The Illinois Property Tax System Page 5

Introduction

PropertytaxisthelargestsingletaxinIllinois,andisamajorsourceoftaxrevenueforlocal

governmenttaxingdistricts.EverypersonandbusinessinIllinoisisaectedbypropertytaxes—

whetherbypayingthetaxorreceivingservicesorbenetsthatarepaidforbypropertytaxes.

• Owners of real property (like a house, land, commercial or industrial buildings) pay property

taxes directly. People who do not own real property most likely pay the tax indirectly,

perhaps in the form of rent to a landlord.

• Anyone who attends public school, drives on roads or streets, uses the local library, has

policeprotection,hasreprotectionservices,orbenetsfromcountyservices,receives

services paid for, at least in part, by property taxes.

This document explains, in general terms, the main components of the Illinois property tax system

and the people or agencies responsible for administering those components. This document is

not adenitiveinterpretationofpropertytaxlaw.(Localassessmentocialsaretheresourcefor

specicfactualinformationaboutpropertytaxes.)TheapplicableIllinoislawscanbereviewedin

the Illinois Property Tax Code (35 ILCS 200/1-1 et seq.) at www.ilga.gov.

Property tax dened

Property tax is a tax that is based on a property’s value. It is sometimes called an “ad valorem”

tax, which means “according to value.”

Property tax is a local tax imposed by local government taxing districts (e.g., school districts,

municipalities,counties)andadministeredbylocalocials(e.g., township assessors, chief

countyassessmentocers,localboardsofreview,countycollectors).Propertytaxesare

collected and spent at the local level.

Illinois does not have a state property tax. When Illinois became a state in 1818, the Illinois

Constitution allowed the state and local taxing districts to tax property in direct proportion to its

value. The last year the State of Illinois imposed real estate taxes was 1932. Since then, property

taxes have only been imposed by local government taxing districts.

Property taxed in Illinois

Propertycanbedividedintotwoclasses—realandpersonal.

• Real property is land and any permanent improvements. Examples include buildings,

fences, landscaping, driveways, sewers, or drains.

• Personal property is all property that is not real property. Personal property includes such

items as automobiles, livestock, money, and furniture.

Only real property is taxed in Illinois. The 1970 Illinois Constitution directed the legislature to

abolish personal property taxes and replace the revenue lost by local government taxing districts,

includingschooldistricts.Corporations,partnerships,limitedpartnerships,jointventures,and

similar entities continued to pay taxes on personal property until 1979. These business entities

now pay a replacement tax on income and invested capital to the state. These monies are then

distributed to the local government taxing districts in proportion to the amount received from the

personal property tax for the 1977 tax year (1976 for Cook County).

Page 6 The Illinois Property Tax System

Most people and businesses pay property tax

Generally, everyone pays property taxes.

• Homeowners and owners of commercial, industrial, and agricultural property pay property

tax directly.

• Renters contribute to the property tax, but generally do so indirectly through their rent.

Landlordsconsidertaxesacostofdoingbusinessandadjusttheirrentstocoverthem.

• Leaseholders pay property taxes on real property leased from an owner whose property is

exempt (e.g., the state owns agricultural property and leases it to a farmer).

Illinois statutes do provide some exemptions from property tax for certain kinds of real property.

(See Property Tax Exemptions and Incentive and Relief Programs.)

Where the taxes go

Propertytaxisamajorsourceoftaxrevenueforthemorethan6,000taxingdistrictsinIllinois;

therefore, it funds most of the services local governments provide. Some types of governmental

units, such as home rule units of government, have additional taxing powers so they are less

dependent on property tax than units that do not have these additional taxing powers. Other

sources of revenue include state aid or federal funding.

The largest share of the property tax dollar goes to school districts.

The property tax cycle

Generally,thepropertytaxcycleisatwo-yearcycle.Duringtherstyear,propertyisassigneda

valuethatreectsitsvalueasofJanuary1ofthatyear.

(For farm acreage and farm buildings,

acerticationandreviewprocedureisinitiatedmorethanninemonthsbeforetheassessment

process begins.)

During the second year, the tax bills are calculated and mailed and payments are

distributed to local taxing districts.

This two-year cycle can be divided into six steps.

1 Assessment—Allpropertyisdiscovered,listed,andappraisedsothatvaluesforproperty

taxpurposescanbedetermined.Localassessingocialsdeterminemostpropertyvalues;

the local county board of review and the Illinois Department of Revenue also have some

assessmentresponsibilities.Thechiefcountyassessmentocerensuresthatassessment

levels are uniform and at the legal assessment level by applying a uniform percentage

increaseordecreasetoallassessmentsinthejurisdiction(i.e., assessments are “equalized”).

2 Review of assessment decisions—Countyboardsofreviewdeterminewhetherlocal

assessingocialshavecalculatedassessedvaluescorrectly,equalizeassessmentswithin

the county, assess any property that was omitted, decide if homestead exemptions should

be granted, and review non-homestead exemption applications. Property owners and local

taxing districts may appeal unfair assessments to their local county boards of review and, if

theownerisdissatisedwiththeboard’sdecision,theStatePropertyTaxAppealBoardor

circuit court.

3 State equalization—TheIllinoisDepartmentofRevenueequalizesassessmentsamong

counties and issues a state equalization factor for each county.

4 Levy—Taxingdistrictsdeterminetheamountofrevenuesthattheyneedtoraisefromproperty

taxes, hold any required public Truth-in-Taxation hearings, and certify levies to the county clerk.

5 Extension—Thecountyclerkappliesthestateequalizationfactor,calculatesthetaxrate

needed to produce the amount of revenues each taxing district may levy legally, apportions

the levy among the properties in a taxing district according to their equalized assessed

values so that tax bills can be computed, abates taxes as directed by taxing districts, and

prepares books for the county collector.

6 Collection and distribution—Thecountycollectorpreparestaxbills,receivespropertytax

payments from property owners, distributes taxes to the local government taxing districts that

levied them, and administers sales of liens on real estate parcels due to nonpayment of taxes.

Introduction

The Illinois Property Tax System Page 7

Prepares two sets of real estate assessment books and delivers them to the chief county

assessmentocer(CCAO)byJanuary1.

1 MeetswithtownshipassessorsbeforeJanuary1andestablishesguidelines.

2 Delivers one set of books to township assessors.

ValuesrealestateasofJanuary1andreturnsbookstothechiefcountyassessmentocerby

1 June15forcountieswithlessthan600,000inhabitants,

2 July15forcountieswith600,000ormorebutnomorethan700,000inhabitants,or

3 November 15 for counties with more than 700,000 but less than 3,000,000 inhabitants.

1 Reviews assessments made by township assessors and makes changes when deemed

necessary.

2 Equalizes assessments within county by class and/or by township (except for Cook County).

3 Mails change of assessment notices to taxpayers.

4 Publishes changes in newspaper of general circulation.

5 Delivers books to board of review by thethirdMondayinJuneoronorbefore90daysafterthe

books are returned.

6 Prepares tentative abstract of assessment books and mails the abstract to the Illinois

Department of Revenue.

1 Develops tentative equalization factor.

2 Publishes factor in newspaper.

3 Holds public hearing.

1 Assesses omitted property.

2 Acts on all homestead exemptions and mails recommendations about non-homestead

exemptions to the Department for approval.

3 Hears complaints and makes changes on any property when deemed necessary.

4 Mails change of assessment notices to taxpayers.

5 Equalizes assessments within county if necessary (except for Cook County).

6 Delivers books to county clerk.

7 Mails report on equalization to the Department.

8 Makes a list of changes and gives the list to the CCAO and county clerk.

PreparesthenalabstractofassessmentsandmailsittotheIllinoisDepartmentofRevenue.

Certiesthenalequalizationfactortothecountyclerkandpublishesthefactor.

Applies equalization factor to all local assessments (except farmland, farm buildings, and coal

rights).

Certiesstateassessmentsandmailsthemtothecountyclerk.

Non-farmland Property Assessment Administration Cycle

Introduction

County Clerk

Chief County

Assessment

Ofcer (CCAO)

Township

Assessor

Chief County

Assessment

Ofcer (CCAO)

Illinois

Department of

Revenue

Board of

Review

County Clerk

Illinois

Department of

Revenue

County Clerk

Illinois

Department of

Revenue

Page 8 The Illinois Property Tax System

Totals the equalized assessed value for each taxing district.

1 Preparestentativebudget.(Datesdierbasedontypeoftaxingdistrict.)

2 Publishesnoticeofpublichearing;putstentativebudgetonpublicdisplay30daysbefore

public hearing.

3 Holds public hearing.

4 Passes budget with changes in form of ordinances.

5 Publishes levy and holds public hearing.

6 Publishes Truth-in-Taxation publication and, if required, holds public hearing.

7 GivescerticateoflevytocountyclerkbythelastTuesdayinDecember.

1 Calculates tax rates for each combination of taxing districts.

2 Extends taxes on equalized assessed value and enters in collector’s books.

3 Delivers collector’s books to county treasurer by December 31.

1 Prepares and mails tax bills by May 1.*

2 CollectsrstinstallmentsforrealestatebyJune1.*

3 Distributes tax money proportionately to taxing districts as tax money is collected.

4 Collects second installment for real estate by September 1.*

5 Preparesdelinquenttaxlistandsendsnoticeofapplicationforjudgmentandsaleofalienon

real estate due to non-payment of taxes.

Pronouncesjudgmentforsaleofalienonrealestateduetononpaymentoftaxesandruleson

taxobjections.

Administers sale of lien on real estate due to nonpayment of taxes.

*  Forcountiesusingacceleratedbilling,estimatedbillismailedbyJanuary31;rstinstallmentduebyMarch1(ordate

providedincountyordinanceorresolution);nalbillmailedJune30;lastinstallmentnormallyduebyAugust1.Coun-

ties may also provide a four-payment schedule.

Budget, Levy, Tax Extension, and Collection Cycle

Introduction

County Clerk

Taxing Body

County Clerk

County

Treasurer

(serves as the

county collector)

Circuit Court

County Clerk

and Treasurer

The Illinois Property Tax System Page 9

Farmland Assessment Process

State Farmland Technical Advisory Board provides income, productivity, and yield data.

Department of Revenue (DOR) compiles data and calculates agricultural economic value for each soil productivity index.

DORcertiesfarmlandassessmentvaluesbyproductivityindexratingtochiefcountyassessmentocerbyMay1.

ChiefcountyassessmentocerpresentsvaluestoCountyFarmlandAssessmentReviewCommitteebyJune1.

Public hearing is held.

County Farmland

Assessment Review

Committee accepts state

values and procedures.

Local assessors implement

beginningJanuary1by

assessing farm parcels.

Thefarmlandassessmentappliestotractsofpropertythathavemetthelegaldenitionofa“farm”fortheprevious

two years. Farmland is assessed according to its agricultural economic value (and other statutory provisions).

Agricultural economic value, commonly called use-value, is based on statewide studies of land use under average level

management, soil productivity, and of the net income of farms in Illinois.

County Farmland Assessment

Review Committee

rejectsstatevaluesand/

or procedures. Develops

alternatives, presents to DOR

by August 1.

DOR reviews County

Farmland Assessment

Review Committee

alternatives.

County Farmland

Assessment Review

Committee has until October

1 to appeal DOR ruling to

Property Tax Appeal Board.

Illinois Department of Revenue ruling by September 1.

Property Tax Appeal Board ruling by December 31.

Introduction

Page 10 The Illinois Property Tax System

Step 1

Assessment

An assessment isthepropertyvaluethatociallyisenteredinthecountyassessmentbooks

(sometimes called the “tax rolls”). This value is used to determine what portion of the total tax

burdeneachpropertyownerwillbear.Thissectiondescribestheassessor’sroleintherststep

of the property tax cycle.

The assessor’s title and qualications

Countyassessmentocialsonastatewidebasisarecollectivelycalledchief county

assessment ocers (CCAO). The actual title of the person who completes the property

assessment depends on the county’s form of government.

• In Cook and St. Clair counties, the county assessor has primary assessment responsibility.

• In the 17 commission counties

, which have no township level government, the supervisor of

assessments has primary assessment responsibility.

• In the other 83 counties, township or multi-township assessors have primary assessment

responsibility. There are more than 900 of these positions, most of which are part-time only.

Thechiefcountyassessmentocersupervisesand,ifnecessary,revisestownshipandmulti-

township assessors’ work.

Chiefcountyassessmentocersareusuallyappointedbycountyboardsandmusthavetwo

years of relevant experience, pass a qualifying examination, and possess certain professional

designations for completing courses in assessment techniques successfully.

Note:Insomecounties,thechiefcountyassessmentoceriselected.

Properties assessed by the State of Illinois

The Illinois Department of Revenue assesses the following types of property:

• Railroad operating property

• Pollution control facilities

• Low sulfur dioxide emission coal fueled devices

• Qualifying water treatment facilities

TheIllinoisDepartmentofRevenueassessesthesepropertiesandcertiesvaluestothecounty

clerks, who include the assessments in the local tax bases. The value of state-assessed property

is a small percentage of the value of all taxable property.

Market value

Valueisacomplicatedconceptwithmanydenitions.MostrealpropertyinIllinoismustbeassessed

based on its value on the open market, or its “market value.” This value is the amount at which a

property would sell in a competitive and open market, presuming that

• boththebuyerandsellerareknowledgeableaboutthesaleandareusingsoundjudgment

byallowingsucienttimeforthesale,and

• thesaleisnotaectedbyunduepressures(e.g., foreclosure, bankruptcy).

Step 1: Assessment

Alexander,Calhoun,Edwards,Hardin,Johnson,Massac,Menard,Monroe,Morgan,Perry,Pope,Pulaski,Randolph,Scott,Union,Wabash,and

Williamson

The Illinois Property Tax System Page 11

One or more of the following three methods is used to determine market value:

• Market data—Similar,neighboringpropertiesthathavesoldrecentlyarecomparedtothe

property being assessed.

• Cost—Thecosttoreproduce(orrebuild)thepropertyiscalculated,anamountfordepreciation

(e.g., wear and tear, age) is subtracted, and land value is then added.

• Income —Thepresentworthoftheincomefromanincome-producingpropertyis

calculated by measuring the amount, quality, and durability of the future net income the

property can be expected to return to an investor.

By law, most real property is assessed at 33

percent of market value. There are some

exceptions to this rule, however.

• Farm acreage is assessed based on its ability to produce income, which is called its

agricultural economic value. A farm building is assessed at one-third of the value that it

contributes to the farm’s productivity. (Farm home sites and farm dwellings are assessed at

one-third of their market value.)

• Counties that have a population of more than 200,000 may classify property for assessment

purposes.CookCountyistheonlycountythathasadoptedsuchasystem;ithas13classes

ofproperty.Thecountyordinancespeciesassessmentlevelsfrom10percentofmarketvalue

(residential property) to 25 percent of market value (commercial property).

• Developed coal is assessed at 33

percent of its coal reserve economic value.

• Illinois statutes provide alternate valuation procedures or exemptions for certain qualifying

properties. (See “Property Tax Exemptions and Incentive and Relief Programs.”)

Non-farm property assessment process

The county clerk prepares real estate assessment books and delivers them to the chief county

assessmentocerbyJanuary1,thedatethat

the assessment cycle for all real property (except

farmland) begins.

These books list all real estate parcels that must be assessed. The chief county

assessmentocermaycorrectthebooksifanypropertyisnotlistedorifaproperty’sdescriptionis

incorrect.

Farmland assessment procedures begin May 1 of the year before the assessment year.

• In the 17 counties that do not have township governments and in St. Clair County, the

supervisorofassessmentscompletestheassessmentsbyJune1(otherthaningeneral

assessment years).

• In non-commission counties other than Cook, Lake, and DuPage counties, township and

multi-township assessors complete their assessments, certify that their assessment books

arecorrect,andreturntheirbookstothechiefcountyassessmentocerbyJune15.

• InCookCounty,thechiefcountyassessmentocermustassessallpropertyassoonashe

or she reasonably can.

• Lakecounty’stownshipandmulti-townshipassessorscompletetheirassessmentsbyJuly

15.

• DuPage County’s township and multi-township assessors complete their assessments by

November 15.

Thechiefcountyassessmentocerreviewsthebooksandmakesanychangesneededto

ensure that assessments are done properly, fairly, and at the statutory level.

Farmland assessment process

Thefarmlandassessmentappliestotractsofpropertythathavemetthelegaldenitionofa

“farm” for the previous two years. Farmland is assessed according to its agricultural economic

value (and other statutory provisions). Agricultural economic value, commonly called use-value,

is based on statewide studies of land use under average level management, soil productivity, and

of the net income of farms in Illinois. A brief discussion about the process by which agricultural

economic value is calculated follows.

Step 1: Assessment

Page 12 The Illinois Property Tax System

Each soil type in the state is rated by the University of Illinois College of Agricultural, Consumers,

and Environmental Sciences according to its ability to produce crops. This rating is called the

“soil productivity index.”

By statute, a state farmland technical advisory board annually compiles and provides to the

Department an equalized assessed value per acre per productivity index (PI), which is based

onthemostrecent5-yearmovingaveragesofgrossincome,productioncosts,andspecied

interestrates.TheequalizedassessedvalueforeachPIappliestocroplandandisdenedas

percent of the agricultural economic value, which is gross income minus production costs

capitalized(divided)bythe5-yearAgri-BankFarmlandMortgageRate,subjecttoanannual10

percent change.

By May 1 of the year immediately preceding the assessment year, the Department must certify

theannualfarmlanddatatothechiefcountyassessmentocials.EectiveJuly25,2013,Public

Act 98-0109 passed into law amending the farmland statutes (35 ILCS 200/10-115) by

• requiringtheDepartmenttocertifytoeachchiefcountyassessmentocertheequalized

assessed value per acre of farmland for each soil productivity index, and

• providing that any increase or decrease in the equalized assessed value per acre by soil

productivity index shall not exceed 10% from the immediate preceding year’s soil productivity

indexcertiedassessedvalueofthemediancroppedsoil,witha$5peracredeductionin

eectforonlythe2015taxyear.

Each county must have a County Farmland Assessment Review Committee, which consists

of 5 members that represent the local assessment community and farmers. The chief county

assessmentocerconvenesthecommitteearoundMay1.ByJune1,thecommitteemustholda

publichearingregardingimplementationplansfortheDepartment-certiedvalues.

Ifthecommitteeagreeswiththecertiedvaluesandplanofimplementation,thenlocalassessors

willbeginimplementingthedatabyJanuary1.Ifthecommitteedisagrees,thenitmustpropose

and forward an alternative to the Department by August 1. The Department has 30 days to provide

awrittenrulingacceptingorrejectingthecounty’salternativeproposal.Thecountycommittee

has until October 1 to appeal any unfavorable Department ruling to the State Property Tax Appeal

Board. This board has 60 days, and no later than December 31, to rule on any such appeals.

The assessor notes each of the farm’s land use categories and uses the equalized assessed

value for each soil productivity index to determine the assessed value. The assessor may make

somesubtractionsforthingslikeslope,drainage,ponding,ooding,andeldshapeandsize

beforecalculatingthenalvalue.

• Theportiononwhichcropsareplantedisassessedatthestate-certiedequalizedassessed

valuecertiedbytheDepartmentforthecorrespondingsoilproductivityindex.

•

Permanent pasture is assessed at one-third of what would be assigned if it was planted in

crops.

• Other farmland (e.g., forestland, grass waterways) is assessed at one-sixth of what would

be assigned if it was planted in crops.

• Wasteland has no assessed value unless it contributes to the productivity of the farm.

Reassessments

By law, each property, other than farmland, must be viewed, inspected, and revalued once every

four years (every three years in Cook County). Farmland is reassessed each year. Between these

general assessments, assessors may revalue property if its value is incorrect.

A county board may, by resolution, divide the county into four assessment districts. In these

counties, one district is reassessed each year on a rotating basis. Cook County is divided into

three assessment districts by statute.

Step 1: Assessment

The Illinois Property Tax System Page 13

Assessment change notices

In general assessment years, a list of all property assessments must be printed in a public

newspaper published in the county.

In the years between general assessments, a list of only those real property assessments that

have been changed is published. Taxpayers in counties other than Cook must be mailed notices

if their real property assessments change from the preceding year’s assessments (unless the

changeiscausedbythechiefcountyassessmentocerapplyinganequalizationfactor—see

Step 3, Equalization, for a discussion of the equalization factor). The notices may be sent to

mortgagelendersifarrangementshavebeenmadefortaxbillstogodirectlytothem;however,

mortgage lenders must mail copies of the notices to the people for whom it holds mortgages

(mortgagors).

Reasons property assessments may increase

Somecommonreasonspropertyassessmentsmayincreaseareidentiedbelow.

• The property values in the area or the tax rate of one or more taxing districts is increasing.

• Improvements were made to the property (e.g.,anadditiontoyourhome;extensive

remodeling;anewdeck,porch,orpatio;anewin-groundswimmingpool).

• The property was under-assessed in relation to other properties and this error has been

corrected.

• The property had a homestead exemption or other preferential assessment that has been

removed.

• An equalization factor was imposed by the township, county, or the Illinois Department of

Revenue.

Step 2

Review

Aftertheassessmentprocessiscompleted,thechiefcountyassessmentocerforwards

all books, papers, and information that the county board of review requests so that it can

completeitsduties.IncountiesotherthanCook,thechiefcountyassessmentocercompletes

assessments and delivers the assessment books to the county board of review by the third

MondayinJuneoronorbefore90daysafterthebooksarereturned.InCookCounty,the

county assessor delivers the books to the board of review in the township order in which they are

completed.

Board of review composition

Illinois law mandates board of review composition. In most township counties, the county board

appoints three people to the board of review. In a few township counties, board of review members

are elected. In commission counties, the county commissioners are also the board of review

members (unless they appoint the board of review).

In counties with 100,000 or more population that appoint a board of review, applicants must pass

anexaminationgivenbytheIllinoisDepartmentofRevenuebeforetakingoce.Thecounty

board of any other county may, by resolution, impose a like requirement in its county.

Chief

countyassessmentocersareclerksoftheboardsofreview(otherthaninCookCounty)andcan

answer taxpayers’ questions when the board is not in session.

Step 1: Assessment

Page 14 The Illinois Property Tax System

Board of review powers and duties

Boards of review have the following powers and duties:

• Assess property that was omitted from assessment books

• Approveallhomesteadexemptions;reviewnon-homesteadexemptionapplicationsand

forward recommendations to the Illinois Department of Revenue

•

In all counties but Cook County, ensure assessments are equitable within counties by applying a

blanket increase or decrease on areas within the county, on classes of property, or on townships

requiringanadjustment(basedonstudiesoftheratioofassessmentstosalesprices)

• Hearvaluationcomplaintsandadjustassessmentsontheirowninitiativeaftertheproperty

ownerisnotiedandgivenanopportunitytorespond

Assess omitted property

“Omitted property” is any property for which all or part of the taxes were not paid because it

was not included in the assessment process. The county board of review lists and assesses all

omitted properties when the error is discovered.

In Cook County, the county assessor may list and assess omitted property either by his or her

own initiative or when directed to do so by the county board of review.

Homestead exemption decisions and non-homestead exemption recommendations

Theboardofreviewmakesthenaldecisiononwhetherornothomesteadexemptionsshould

be granted. It also considers all non-homestead exemption applications and forwards its

recommendationstotheIllinoisDepartmentofRevenueforanaldetermination.

Ensure equitable assessments

The board of review examines property assessments to make sure that they were done properly,

atauniformassessmentlevel,andatthestatutorilyrequiredassessmentlevel.Iftheboardnds

variations, it has the power to raise or lower assessments individually or by class (in counties

other than Cook) either on a limited geographic basis or a county-wide basis. The board of review

mustpublishanoticeofitsintenttoissueanequalizationfactorandholdahearing.Allaected

propertyownersmustbenotiedofanychangeintheirassessments.

Review complaints

Complaintsaboutassessmentsmaybeledbypropertyownersorbytaxingdistricts.Thelocal

county board of review holds a hearing and determines whether or not the assessment should

beraisedorlowered.Ifacomplaintisledbyanattorneyonbehalfofataxpayer,allnoticesand

correspondence from the board relating to the appeal shall be directed to the attorney. The board

may require proof of the attorney’s authority to represent the taxpayer.

Note:InCookCounty,dissatisedtaxpayersmayrstleacomplaintwiththecountyassessor

and,ifdissatisedwiththatruling,maytaketheircasestothecountyboardofreview.Ifthey

prefer,taxpayersmaybypassthecountyassessorandledirectlywiththecountyboardofreview.

To determine if property is assessed fairly, the property owner must know the property’s fair

market value, assessed value, and the average percentage of market value at which similar

neighboring properties are assessed (i.e., the assessment level).

The assessment may be unfair

if the property’s assessed value is

• not 33

percentofitsfairmarketvalueexceptinCookCounty,whichhasaclassication

system;

• notatthesamelevelascomparablepropertiesinthearea;or

• based on inaccurate information, such as an incorrect measurement of a lot or building.

Before ling a written complaint

Acopyofthepropertyrecordcardforallrealestateparcelsisonleatthecountyortownship

oce.Thepropertyrecordcardshowstheproperty’sassessedvalueandhowthatassessed

value was calculated. Assessmentrecordsmaintainedintheassessor’socearepublic

information. Property owners have the right to inspect records for their properties and any other

parcelofproperty.Thisinspectionissubjecttoreasonableregulationsestablishedbylocal

ocials.

Step 2: Review

The Illinois Property Tax System Page 15

Beforelingawrittencomplaintwiththeboardofreview,

the property owner may meet informally

withthetownshipormulti-townshipassessmentocerorchiefcountyassessmentocerto

learn how the property was assessed.

The assessor could explain the calculations on the property

recordcardandthepropertyownermaytaketheopportunitytotelltheassessmentocialaboutany

rrors regarding the property’s description (e.g., errors in dimensions of living space, number of

bathrooms, the property’s condition). If the assessor still has the assessment books, a correction

can be made without using the formal appeals process.

Keepinmindthatoncethetaxbillisreceived,itisgenerallytoolatetoleacomplaintforagiven

year’s assessment.

Note:Somechiefcountyassessmentocersrequireawrittencomplaintformandmayhave

rules regarding hearings and evidence.

Filing a written complaint with the board of review

Contactthelocalboardofreviewforspecicinformationincludingdeadlines,complaintforms,

evidence, rules of practice, etc.

Property owners may represent themselves or have an attorney represent them at the hearing.

If a complaint does not comply with the board of review rules, the board shall send a notice

identifying which rules have not been complied with and must provide the complainant at least

10 business days to bring the complaint into compliance. If the attorney fails to provide proof of

authority within the compliance period granted by the board, the complaint may be dismissed.

The Board shall send, electronically or by mail, notice of the dismissal to the attorney and

taxpayer.Ifthecomplainantcomplieswiththeboardofreviewruleseitherupontheinitiallingof

a complaint or within the time as extended by the board of review for compliance, then the board

of review shall send, electronically or by mail, a notice of hearing.

The claim of unfair assessment must be supported and generally requires substantial evidence

related to the property’s assessment.

The board of review must give all taxing districts a copy of any complaint for which a change of

$100,000ormoreinassessedvalueissought.Taxingdistrictsalsomayappearatthehearing.

The board of review must notify the property owner or attorney, electronically or by mail, of its

decision. The notice must be mailed to the address as it appears in the complaint. In Cook

county the notice should be mailed, or emailed, to the complainant or the attorney. If a taxing

districthasledacomplaint,theassessmentcannotbeincreasedunlessthepropertyowneris

given a chance to respond. A list of all assessment changes must be open for public inspection

anddeliveredtothecountyclerkandchiefcountyassessmentocers.

Possible grounds for property tax appeals

Some possible grounds on which property assessments may be appealed are listed below. The

Property Tax Appeal Board also produces several brochures which may be helpful resources in

the formal appeal process.

• Market value —Proofthatthemarketvalueislessthantheassessmentasdemonstrated

by a recent “arm’s-length” sale, a property appraisal, comparison of the property’s assessed

value to recent sales information for comparable properties, or actual construction costs.

• Equity or uniformity—Proofthatcomparableorsimilarpropertiesintheneighborhood

have lower assessments than the taxpayer’s property on a per square foot basis as

demonstrated by presenting data for comparable properties from the neighborhood,

including any income and expense data, if available.

• Legal contention—Raisingalegalargumentiflocalassessingocialshavenotapplied

provisions of the law correctly.

• Farmland

Reclassication from one use to another use—Proofthatpropertyshouldbereclassiedas

farmland if the owner can show that the property was used as a farm for the previous two years.

Productivity—Proofthatthesoilproductivityguresassignedtoafarmareinaccurateas

demonstrated by a soil survey map, the weighted productivity index numbers, productivity

informationfortheproperty’ssoiltypes,andinformationregardingooding.

Farmland use classication—Proofthatthefarmlanduseclassication(i.e., the number

of acres of cropland, permanent pasture, other farmland, or wasteland) is incorrect as

demonstratedbyanaerialphotoandanacreageclassicationbreakdownofthecontested

area.

Step 2: Review

Page 16 The Illinois Property Tax System

Filing an appeal with the Property Tax Appeal Board, or ling a tax objection

in circuit court

Two options are available if the property owner disagrees with the county board of review’s

decision, but only one option can be chosen.

• Thedecisionmaybeappealed(inwriting)tothePropertyTaxAppealBoard,ave-member

board appointed by the governor. The Property Tax Appeal Board will determine the correct

assessment based on equity and the weight of the evidence.

• The taxes can be paid under protest and the county board of review’s decision can be

appealeddirectlytothecircuitcourtbylingataxobjectioncomplaint.Taxesandleviesare

presumed to be correct and legal, but this presumption can be rebutted. The taxpayer must

provide clear and convincing evidence.

Note: Board of review assessment changes may be appealed to the Property Tax Appeal Board,

including the application of an equalization factor (a blanket increase or decrease on all property).

Property owners may appeal the application of the board of review’s equalization factor as it

applies to their properties only and only to the extent that it changes their assessments.

Filing an appeal with the Property Tax Appeal Board

A property owner who disagrees with the county board of review’s decision can appeal to the

PropertyTaxAppealBoard.Tobeginanappeal,apetitionforappealwiththeboardmustbeled.

OcialformsandrulesofthePropertyTaxAppealBoardareavailablebothintheboard’soces

inSpringeldandatlocalboardofreviewocesinindividualcounties.

Apetitionforanappealmustbeledwithin30daysofthepostmarkdateorpersonalservicedate

of the written notice of the board of review’s decision, or the written notice of the board of review’s

applicationofatownshipequalizationfactor.Iftheappealisnotledwithinthe30-dayperiod,the

assessment cannot be appealed for that tax year to the Property Tax Appeal Board.

The Property Tax Appeal Board’sdecisionsaresubjecttoadministrativereviewincircuitcourton

the record established at the hearing.

For more information regarding an appeal to the

Property Tax Appeal Board

, visit its website at

ptab.illinois.govorcontactitsocesattheaddressesandphonenumbersbelow.

Write: Wm.G.StrattonOceBldg. SuburbanNorthOceFac.

401 South Spring, Room 402 9511 W. Harrison St., Suite LL-54

 Springeld,Illinois62706 Des Plaines, Illinois 60016

Call: 217 782-6076 or 217 785-4427 (TDD) 847 294-4121 or 847 294-4371 (TDD)

Filing a tax objection with the circuit court

Apropertyownermayobjecttoalloranypartofapropertytaxforanyyearbypayingthetaxes

underprotestandlingataxobjectioncomplaintincircuitcourt.Thecomplaintmustspecify

objectionstoassessments,taxes,orlevies.Thecourtwillhearthematterandmakeadecision.

Step 2: Review

The Illinois Property Tax System Page 17

Step 3

Equalization

Assessment levels must be uniform

Illinois statutes require that the assessed value of non-farm property equal 33

percent of its

market value (except for Cook County). However, assessment levels may vary from the statutory

percentwithinanassessmentjurisdiction,betweenassessmentjurisdictionswithinacounty,

and between counties.

Thesedierencesoccurforseveralreasonsincludingthelargenumberoflocalassessingocials

whohavedierentopinionsaboutvalue,andtheinherentdicultiesoftheassessmentprocess

(e.g., pressurestokeepassessmentslow,lackoftimeandresourcestodoathoroughjob,

ministerial errors, outdated valuations, and changes in economic conditions). In Cook County,

assessedvaluesvarybecauseofthecountyclassicationordinance.

Assessment levels must be uniform to ensure

• equaldistributionofthetaxburdenamongtaxpayers;

• fair distribution of state grants-in-aid for education, highways, and public assistance

(assessedvaluationisacomponentintheformulasusedtocalculatethesedistributions);

and

• that tax rate and bonded indebtedness limitations are applied to local government taxing

bodies on an equal basis.

The following two examples help clarify why uniform assessment levels provide equal distribution

of the tax burden among taxpayers.

Example: Assessment level is not uniform within an assessment jurisdiction— Two

homeshaveidenticalmarketvaluesof$150,000.Invaluingeachproperty,theassessor

estimatesHouse#1’svalueat$144,000andHouse#2isvaluedat$162,000.Whenthe

level of assessments of 33

percent is applied to each valuation, House #1 is assessed at

$48,000,or32percentofmarketvalue,andHouse#2isassessedat$54,000,or36percent

of market value. The owner of House #2 is going to have a higher tax bill although the true

value is identical to House #1.

Example: Assessment level is not uniform within the county — One township in a

county is assessed at an average level of 20 percent of full value and another at 40 percent.

Both townships are in the same school district. Property owners in the township assessed at

the higher level would, on average, pay twice as much in school taxes as owners of similar

properties in the other township.

How uniformity is achieved

Assessorstrytomaintainauniformlevelofassessmentwithintheirjurisdictionsbyusing

recognized appraisal techniques to determine market values and by reassessing property on a

regular basis so that market values are as accurate as possible before applying the legal level of

assessments to the market values. Even so, some variation in assessment levels may exist.

A statistical process called an “assessment/sales ratio study”isusedtondtheratioofproperty

sale prices to their assessed values. The assessment/sales ratio study shows whether or not

assessments within a given area actually average 33

percent of market value. If the results of the

study indicate that assessments are either higher or lower than 33

percent, a blanket percentage

increase or decrease, called an “equalization factor” or “multiplier” is calculated and applied

to all non-farm property to bring the level of assessment to 33

percent. The application of this

uniform percentage increase or decrease to assessed values is called “equalization.”

Chiefcountyassessmentocersandcountyboardsofreviewuseequalizationwithinthe

county only. This process is called “intra-county equalization.” Every county but Cook County

Step 3: Equalization

Page 18 The Illinois Property Tax System

possesses this intra-county equalization authority.

The State of Illinois equalizes assessments between counties. This process is called

“inter-county equalization.”

Inter-county equalization eliminates certain tax burden inequities among taxpayers who live within

the boundaries of taxing districts that overlap two or more counties. It is not, however, a substitute

forproperintra-countyequalizationbylocalocials.

For a more detailed explanation of the Department’s role in the equalization process and how

assessment/sales ratio studies are conducted, see Publication 136, Property Assessment and

Equalization. This document is available on our website at tax.illinois.gov.

How the state equalization factor affects assessments

Thecountyclerkmustmultiplythenalassessedvalueofeachparcelofnon-farmproperty,

ascorrectedandequalizedbylocalassessmentocersorthecountyboardofreview,bythe

state-certiedequalizationfactor.

Example

CountyA’smultiplieris1.0000.A$90,000homeassessedat$30,000hasanequalized

assessedvalueof$30,000($30,000x1.0000=$30,000).

CountyB’smultiplieris2.0000.Acomparable$90,000homethathadanoriginal

assessmentof$15,000hasanequalizedassessedvalueof$30,000($15,000x2.0000=

$30,000).Inthisexample,equalizationhaseliminatedtheeectsoftheoriginalunderassessment.

This new value is called the “equalized assessed value.” By law, the equalization factor is not

applied to farm acreage, farm buildings, wind energy, state-assessed properties, or coal rights, all

ofwhichareassessedusingalternateassessmentmethodsspeciedinIllinoisstatutes.

Assessment variation among counties

Localassessmentocialsmaybeeligibletoreceivecertainnancialincentivesifnon-farm

property is assessed uniformly and at or near the statutory level.

• The state reimburses the county 50 percent of the supervisor of assessment’s salary if the

supervisor of assessment establishes a level of assessments between 31

percent and

percent of market value.

• Supervisor of assessments, township assessors, and multi-township assessors receive a

performance bonus if they meet certain criteria.

Step 3: Equalization

The Illinois Property Tax System Page 19

Step 4

Levy

In this phase of the property tax cycle, governing boards of each taxing district develop their

budgets and determine how much of their revenues will come from various sources, including

property taxes.

How a taxing district develops its budget

Inthebudgetingprocess,taxingdistrictsprojectexpendituresbasedontherevenuesthatare

expected from all sources of non-tax revenue (state and federal revenue-sharing, interest, fees,

etc.).Thedierencebetweenthenon-taxrevenueandtotalamountneededtooperateisusually

the amount that the taxing district will ask to be raised from property taxes.

Taxingdistrictsusuallyhaveseparateaccountsforvariouspurposesintowhichspecied

amounts are deposited. State laws that govern each type of taxing district generally provide what

accounts a taxing district may have (e.g., a corporate fund, a bonds and interest fund, and other

specializedfunds,suchasareprotectionfund,alibraryfund,orastreetandbridgefund)and

give direction about how the money may be spent.

Thegoverningboardrstpreparesatentativebudget,whichshowsproposedexpendituresfor

each fund. Next, the district publishes a notice of public hearing for the proposed budget. The

tentative budget is on public display at least 30 days before the public hearing is held.

After the public hearing, the budget is adopted with any necessary changes. Within 30 days of

adopting the budget, the taxing district must give the county clerk

• acertiedcopyofthebudgetandappropriationordinanceorresolution,and

• acertiedestimateofrevenues,bysource,thatthedistrictanticipateswillbereceivedinthe

followingscalyear.

Thecountyclerkmustnotifythetaxingdistrictifthesedocumentsarenotledandcannot,by

law, bill for any taxes until these documents are received.

The amount raised from property taxes is called the “levy.” When a taxing district levies, it must

showaseparateamountforeachfundforwhichitislevying.Everytaxingdistrictmustleits

levywiththecountyclerkbythelastTuesdayinDecember.Beforelingitslevy,thetaxingdistrict

must follow the provisions of the Truth-in-Taxation Law.

Truth-in-Taxation Law - Levy

The Truth-in-Taxation Law establishes the procedures that taxing districts must follow when they

adopt their levies. If a taxing district proposes an aggregate levy that is more than 5 percent

higher than the total amount of taxes it billed in the previous year, it must publish the required

notice in a local newspaper and hold a public hearing.

At the public hearing, the taxing district must explain the reasons for its levy and proposed

increase. Anyone who wants to present testimony must be given the opportunity to do so. After

the hearing, the taxing district may adopt the tax levy.

The Truth-in-Taxation Law also requires a taxing district to publish a notice within 15 days of its

levyadoptionifitsnalaggregatelevyishigherthantheamountstatedinthepublishednoticeor,

thenalaggregatelevyis5percenthigherthanthepreviousyear’snalaggregatelevy.

Each taxing district must certify to the county clerk that it has complied with all Truth-in-Taxation

publication,notice,andhearingrequirementswhenitcertiesitslevytothecountyclerk.

If a taxing district does not comply with the requirements of the Truth-in-Taxation Law, the county

clerk must limit the levy increase to 5 percent.

Step 4: Levy

Page 20 The Illinois Property Tax System

Step 5

Extension

Aftertheboardsofreviewadjourn,assessmentbooksaregiventocountyclerkssotaxbillscan

be computed based on levies received from taxing districts. The process of billing taxes is called

“extension.”

When the county clerk extends taxes

The county clerk cannot extend taxes until all of the following events have happened:

• Theboardofreviewcompletesitsworkandadjourns.

• Thestatecertiesvaluesofpropertiesitisrequiredtoassess.

• Thestatecertiesthenalequalizationfactor.

• All taxing districts certify their levies and, if applicable, levy abatements.

• If a taxing district extends into another county, the second county completes its assessment

process or estimates its assessed values for portions of the taxing district that overlaps the

adjacentcounty.

Thecountyclerkappliesthestate-certiedequalizationfactortotheappropriateassessedvalues

and then subtracts certain homestead exemptions. The results are entered in the books prepared

for the collector.

SincemanyboardsofreviewdonotadjournuntilDecember(orevenlater),tax

extension may not begin until the year following the assessment year.

The county clerk prepares books that the county collector uses to record tax payments and

information about delinquencies. These books list all taxable property and the values of the

property at each step in the assessment cycle (i.e., assessed value, value as corrected by the

board of review, value as equalized by the board of review, value as assessed or equalized by the

Illinois Department of Revenue).

Calculating the tax rate

Levies are made in dollar amounts. To raise the money requested in levies, county clerks must

calculate a tax rate for each fund for which the taxing district levied. The tax rate is a number

that, when multiplied by the tax base, will produce the levy amount. A tax rate is calculated using

the following formula:

Tax rate = Tax levy ÷ tax base

Note: A district’s tax base is 1) the total equalized assessed value, 2) minus certain homestead

exemptions, 3) plus the value of any state-assessed property.

The tax base’s effect on the tax rate

The greater the tax base, the lower the rate needed to raise a given levy. An increased base,

which may be due to an increased equalization factor, new property, removal of exemptions, or tax

incentive programs that have expired, could result in a lower tax rate. A decreased base, which

may be due to property demolition, decreasing property values, or the addition of exemptions or tax

incentive programs, could result in an increased tax rate.

Tax rates may be limited

In some cases, the amounts that taxing districts can levy are limited. As stated previously, the

Truth-in-Taxation Law limits increases in the amount billed if publication, notice, and hearing

requirements are not met. Rates also may be limited by law. The maximum rate allowed by law

depends on the type of governmental unit and the type of fund. So, if the tax rate needed to raise

the levy amount is greater than the maximum statutory rate, the maximum statutory rate is used

and the amount raised is less than the levy request.

Step 5: Extension

The Illinois Property Tax System Page 21

Municipalities with populations greater than 25,000 and Cook County are home rule units of

government. Other municipalities may change their home rule status by referendum. Home rule

units are not subjecttostatutorytaxratelimits.Therefore,taxratesmaybesetatwhateverlevel

is necessary to raise the amount of money requested in a levy. In some cases, the tax rate limits

may be changed with voter approval.

The Property Tax Extension Limitation Law (PTELL)

The Property Tax Extension Limitation Law (PTELL) is designed to limit increases in property

tax extensions (total taxes billed) for non-home rule taxing districts. Increases in property tax

extensions are limited to the lesser of 5 percent or the increase in the National Consumer Price

Index (CPI) for the year preceding the levy year. The CPI used is the National CPI for all urban

consumers for all items as published by the United States Department of Labor, Bureau of Labor

Statistics. The applicable December to December change is generally available in the middle of

January.ThewebsitefortheCPIincreaseiswww.bls.gov.

Although the law is commonly referred to as “tax caps,” use of this phrase can be misleading.

The PTELL does not “cap” either individual property tax bills or individual property assessments.

Instead,thePTELLallowsataxingdistricttoreceivealimitedinationaryincreaseintax

extensions on existing property, plus an additional amount for new construction, annexations to

the district, and voter-approved rate or limitation increases.

The limitation slows the growth of property tax revenues to taxing districts when property values and

assessmentsareincreasingfasterthantherateofination.Asawhole,propertyownershavesome

protection from tax bills that increase only because the market value of their property is rising rapidly.

If a taxing district determines that it needs more money than is allowed under the PTELL, it can ask

the voters to approve an increase.

Paymentsforbondsissuedwithoutvoterapprovalaresubjecttostrictlimitations.

Some extensions, by law, are not included in the aggregate extension. These extensions are not

limited, and include bonds issued with voter approval.

ThePTELLwasoriginallypassedin1991andaectedtaxingdistrictsinthe“collarcounties”(i.e.,

DuPage, Kane, Lake, McHenry, and Will). Cook County taxing districts were added next. The

remaining counties were authorized to hold county referenda on the adoption of PTELL beginning in

1996.

For more detailed information about the PTELL, see PTAX-1080, Property Tax Extension

Limitation Law, A Technical Manual. This document is available on our website at tax.illinois.gov.

The PTELL’s effect on individual tax bills

The PTELL does not guarantee that individual tax bills will increase no more than the limitation.

ThePTELLlimitsincreasesintaxingdistricts’extensions;however,individualtaxbillsmaystill

increase or decrease. A partial list of reasons individual tax bills could increase more than 5

percent or the CPI increase is below.

• AdistrictonthetaxbillisnotsubjecttothePTELL.

• The property is in a taxing district that is able to increase its extension by more

than 5% or the CPI increase because it is a home rule municipality or an

overlappingtaxingdistrictthatisnotsubjecttothePTELL.

• Voters approved an increase in tax rates or in the limitation.

• Voters approved a bond issue or an increase in the debt service extension base.

• Newbondswereissuedbeforethecutodateforbondstobeexemptfromthe  

PTELL.

• The property had been underassessed in relation to other properties and is reassessed.

• The property had a homestead exemption or other exemption that was removed.

• The property has a greater share of the tax burden because the assessed value of other

property was decreased.

Step 5: Extension

Page 22 The Illinois Property Tax System

Calculating the tax bill

The county clerk uses the following process to extend taxes:

1 Tax rates for every taxing district in the county are calculated.

2 Becausedierentpartsofthecountyareunderthejurisdictionofnumerouscombinations

of taxing districts, the county clerk divides the county into tax code areas. Each property in

eachtaxcodeareaisunderthejurisdictionofthesamecombinationoftaxingdistrictsand

therefore has the same combination of tax rates.

3 All rates for each taxing district are added. The sum of the rates for each tax code area is

called the aggregate rate. In Illinois, the rate is generally expressed in terms of dollars per

hundred dollars of equalized assessed valuation (the same as a percentage).

The tax bill is calculated. The equalized assessed value of a property (minus any homestead

exemptions) is multiplied by the aggregate rate for the tax code area in which the property lies.

The aggregate rate on the tax bill is a combination of a county rate, a township

rate (in non-commission counties), a school district rate, a community college

rate, a city rate (if you live within the boundaries of an incorporated municipality)

andratesforanyspecialdistricts,suchasre,sanitary,etc.;thatprovide

service for the area.

For example, assuming a home is located in the particular combination of taxing

districts shown in the chart to the left, the tax bill would be calculated using an

aggregate rate of 6.704 percent. If the home has an equalized assessed value

of$30,000(afterthehomesteadexemptionsarededucted),thetaxbillwillbe

$2,011.20.($30,000X.06704=$2,011.20)

Why tax bills increase

Theamountofapropertytaxbillisdeterminedbytwothings—aproperty’sequalizedassessed

value (its share of the total tax base) and the applicable tax rates, which depend on the level of

spending of local taxing districts.

Ifassessedvaluesincreasebecauseofinationaryincreasesinpropertyvalues,taxbillsmaynot

increase. If the taxing districts do not increase their levies, a general increase in assessed values

(i.e.,thetaxbase)meanslowertaxrates,andtaxbillswillnotbeaected.Iftaxingdistricts

increase their levies, however, tax bills generally will increase regardless of changes in assessed

values.

Step 5: Extension

Tax Bill Example

County 0.268

Township 0.134

City 0.730

School District 3.798

Community College 0.201

Fire Protection District 0.776

Sanitary District 0.419

Park District 0.378

Total (Aggregate Rate) 6.704

The Illinois Property Tax System Page 23

Step 6

Collection and Distribution

The county clerk prepares the books that the county collector (county treasurer) uses to prepare

tax bills, record tax payments, and to record delinquencies.

Tax bills are generally sent by May 1 of

the year after the assessment year.

The tax bill is mailed or emailed (at the request of the property

owner or taxpayer) to the property owner or the person in whose name the property is taxed.

Propertytaxesareusuallypaidintwoequalinstallments.Therstinstallmentisusuallydueon

June1andthesecondonSeptember1.Iftaxbillsaremailedlate,therstinstallmentoftaxesis

due 30 days after the date on the bill.

If the bill is mailed to a mortgage lender, the lender must send a copy of the bill to the mortgagor

within15days.Ifanacceleratedbillingmethodisused,onlyacopyofthebillforthenal

installment must be mailed to the mortgagor.

County boards may adopt an accelerated billing method by resolution or ordinance. Cook County

andsomeothercountiesusethisbillingmethod.Underthissystem,therstinstallmentoftaxes

is55percentoflastyear’staxbill.ThisinstallmentismailedbyJanuary31.InCookCounty,

therstinstallmentisduebyMarch1.(Elsewhere,acountyboardmaysetaduedateaslate

asJune1.)ThesecondinstallmentistypicallypreparedandmailedbyJune30andisforthe

balanceoftaxesdue.Thebalanceiscalculatedbysubtractingtherstinstallmentfromthetotal

taxes due for the present year. The second installment is typically due August 1.

All Illinois counties also have the option of initiating a four-payment system.

Tax bill information requirements

Eachtaxbillmustincludetheinformationidentiedbelow.Thisinformationmaybeprintedonthe

actual bill or on a separate insert.

• The amount due for each installment

• The rate at which taxes have been extended for each taxing district and, if the county uses

electronic data processing equipment, the dollar amount of tax due that will be allocated to

each of those taxing districts, along with a separate statement for any amounts levied for

certain public library purposes

• A separate statement for each taxing district showing the amount of tax due that was levied

under the Illinois Pension Code or for any other public pension or retirement purpose by a

municipality or township

• A list of each Tax Increment Financing (TIF) district in which the property is located and the

dollar amount of tax due that is allocable to the TIF district

• The total tax rate

• The total amount of tax due

• Theamountbywhichthetotaltaxandthetaxallocabletoeachtaxingdistrictdiersfrom

the taxpayer’s previous bill

• The property index number or other suitable description

• The property’s assessment

• The equalization factors imposed by the county and the Illinois Department of Revenue and

the resulting equalized assessed value

• In counties other than Cook, the estimated fair cash value of property on which a single-

family residence is located

Step 6: Collection and distribution

Page 24 The Illinois Property Tax System

• In Cook County, the estimated fair cash value of residential property in the lowest assessment

classication

• A statement that certain taxpayers may be eligible for Senior Citizens and Persons

with Disabilities Property Tax Relief and that applications are available from the Illinois

Department of Aging.

• The statutory amount of each homestead exemption applied to the property and the

assessed value of the property after application of all homestead exemptions.

Note:EectiveJuly1,2012,IllinoisCaresRxwasterminatedandtheCircuitBreakerProperty

TaxReliefGrantwaseliminatedduetothelackoffunding.BenetsarenowavailableforSeniors

Free Transit Ride, the Persons with Disabilities Free Transit Ride, and the Secretary of State

LicensePlateDiscount.TheBenetAccessApplicationisavailableontheIllinoisDepartmenton

Aging website at illinois.gov/aging.

Note: IfthetaxpayerisnotiedonorbeforeOctober1ofanyyearthatheorsheowesan

arrearage of taxes due to an administrative error, then the county collector may send a separate

bill for the arrearages of taxes, which may be due no sooner than 30 days after the due date for

the next installment of taxes (35 ILCS 200/14-41, 21-15, 21-20, 21-25).

Tax objection complaints

A taxpayer who thinks that his or her tax bill is not fair must rstpaythetaxesandleatax

objectioncomplaintwiththecircuitcourt(paymentunderprotest).Thetaxpayeralsomustappear

incourttoexplaintheobjectiontothetaxbillamount.

Property owners may contest the tax bill by challenging the tax rates, tax levy, or raising other

legal or constitutional questions. Generally, paying taxes under protest because the assessment

isincorrectwillnotresultinafavorableoutcomeifanappealwasnotrstledwiththecounty

board of review. The court will decide whether the property owner is entitled to a refund.

Note: In Cook County, refunds for erroneous assessments or overpayments may be approved in

Cook County to allow the claimant to recover the costs of the suit. The total amount of taxes and

interestrefundedforclaimsforwhichtherighttoarefundarosepriortoJanuary1,2009,cannot

exceed$2,500,000peryear.

The tax distribution process

Tax payments are recorded in the collector’s book and deposited in accounts established by each

taxing district.

In all counties but Cook County, the county collector distributes all taxes collected and any interest

earned on those taxes to the taxing districts within 30 days of the payment due date and every

30daysthereafter.InCookCounty,taxesaredisbursedbeginningJune1andtherstdayofthe

month thereafter.

Enforcement actions for delinquent taxes

Property taxes are legally a lien on the property. If taxes are not paid by the due date, the taxes

are deemed delinquent. The property owner must pay a 1

percent interest penalty on the

amount due for each month or fraction of a month that the payment is late (until paid or forfeited

in Cook County and counties that have adopted an accelerated billing procedure). The interest

penaltyisnotchargedincertainsituations,includingthoseidentiedbelow.

• The property owner is a member of the Illinois National Guard or a reserve component of

the U.S. armed forces called to active duty for deployment outside the continental U.S. and

is on active duty on the installment due date (payment must be made 180 days after return

from active duty). Guardspersons or reservists should notify the county clerk of activation to

active duty.

• The county board has adopted a resolution to waive the interest penalty for persons who are

determined

eligible for a grant under the Senior Citizens and Persons with Disabilities Property

Tax Relief.

If the property owner does not pay the taxes, the county will initiate collection action in circuit court.

Step 6: Collection and distribution

The Illinois Property Tax System Page 25

Step 6: Collection and distribution

Tax sales

Tax sales are one means by which the county enforces the collection of property taxes.

Note: Tax sale, redemption, and tax deed issues are often complex. Property owners and tax

purchasers may wish to consult private legal counsel.

Annual tax sale

Aftertheduedateforthenalinstallment,thecountycollectorlistsalldelinquentparcelsandother

necessaryinformationintheAnnualTaxJudgment,Sale,Redemption,andForfeitureRecord.

Next,generallyinOctober,thecountycollectorappliestothecircuitcourtforjudgmentandorder

ofsaleforthetaxesonthedelinquentproperties.Ifjudgmentisentered,alienonthepropertyin

theamountofunpaidtaxesandotherassociatedcostsisoeredforsale.Thepropertyitselfis

not sold. Property owners are mailed an advance notice of the intended collection action and the

county collector also publishes an advertisement in a local newspaper before appearing in court.

Note:InCookCounty,allapplicationsforjudgmentandorderofsalefortaxesandspecial

assessments on delinquent properties shall be made within 90 days after the second installment

due date for tax year 2016 and each tax year thereafter.

The property owner or any lienholder may pay the taxes, either in person or by agent, to the county

collector any time before the sale.

Both the county collector and county clerk or their respective deputies must attend the tax sale.

lien for each delinquent property is sold separately and in consecutive order.

Whomever bids the

lowest penalty, which cannot exceed 18 percent for each six months or fraction of a month, is the

successful tax purchaser.

Tax purchasers receive a

certicateofpurchaseuponcompletionofapurchase.Thiscerticate

describes the property lien sold and lists the sale date and amount of taxes and other associated

costs paid by the tax purchaser.

If the property owner (or other person with an interest in the property) does not redeem in the

allotted time, the tax purchaser may petition in circuit court for a tax deed.

Sale of forfeited taxes and scavenger sales

If the lien for a parcel of delinquent property is not purchased at the annual tax sale, the county

mayoertheforfeitedtaxesforsaleinthefuture.Ifthetaxesaredelinquentforthreeormore

years,thecountycollectormayoerthepropertytaxlienatascavengersale.Contactthecounty

clerk or county treasurer for more information concerning the sale of forfeited taxes and scavenger

sales.

When to redeem properties sold for delinquent taxes

Properties sold for delinquent taxes may be redeemed by any property owner or other person

withaninterestintheproperty,otherthananundisclosedbeneciaryofanIllinoislandtrust.

Redemption periods are based on the type of property and range from 6 months to 2

years.

The purchaser may extend the redemption period for up to three years from the sale date.

How much must be paid to redeem the property

The amount paid to redeem a property sold at the annual tax sale is equal to all of the taxes

(including all subsequent taxes paid by the purchaser), special assessments, interest, penalties,

andcostspaidbythepurchaser;theaccruedpenalties;andmostotherfeesorcostspaidby

the purchaser after the sale. The county clerk computes the required amount of redemption. The

redemption computation is similar for forfeited taxes and scavenger sales.

Tax deed proceeding

The tax purchaser may petition in circuit court for a tax deed if the property owner (or other

person with an interest in the property) does not redeem in the allotted time. Owners, occupants,

and other parties with an interest in the property must receive advance notice of the tax deed

proceeding.Thecircuitcourthearsthecaseandentersjudgmentorderingataxdeedifthetax

purchaser is in compliance with all technical statutory requirements.

Page 26 The Illinois Property Tax System

Property Tax Exemptions

and

Incentive and Relief Programs

Non-homestead exemptions

Some real property is exempt from property tax. The Illinois Constitution allows exemptions

for property that belongs to the State of Illinois, units of local government and school districts,

property that is used exclusively for agricultural and horticultural societies, and for school,

religious, cemetery, and charitable purposes.

Thepropertyownermustleanon-homesteadexemptionapplicationwiththecountyboardof

review. The county board of review will review the application and then forward it, along with a

recommendation,totheIllinoisDepartmentofRevenueforanaldetermination.Ifapproved,

certainpropertyownersmayberequiredtoleanannualadavitorcerticateofexemptstatus

withthechiefcountyassessmentoceronorbeforeJanuary31ofeachyear.

Homestead exemptions

The Illinois Constitution also allows homestead exemptions for certain residential property. The

propertygenerallymustbeoccupiedasaprincipleresidenceonJanuary1ofthetaxyear.The

available homestead exemptions are described below. Contact your chief county assessment

ocerformoreinformationregardingrequiredapplicationsandlingdeadlines.

General Homestead Exemption—Thisannualexemptionisavailablefor“residentialproperty

that is occupied by its owner or owners as his/her or their principal dwelling place, or that is

a leasehold interest on which a single family residence is situated, which is occupied as a

residence by a person who has an ownership interest therein, legal or equitable or as a lessee,

and on which the person is liable for the payment of property taxes.” (35 ILCS 200/15-175)

The amount of exemption is the increase in the current year’s equalized assessed value (EAV),

abovethe1977EAV,uptoamaximumof$10,000inCookCounty,$8,000incountiescontiguous

toCookCounty,and$6,000inallothercounties.

Long-time Occupant Homestead Exemption —Cook County Only —CookCounty

residential property owners who occupy their primary residence for a continuous period and have

atotalhouseholdincomeof$100,000orlessareeligibleforthisexemption.Thepropertymust

be occupied for 10 continuous years or 5 continuous years if the person receives assistance

toacquirethepropertyaspartofagovernmentornon-prothousingprogram.Thisexemption

limitsequalizedassessedvalueincreasestoaspecicannualpercentageincreasethatisbased

onthetotalhouseholdincomeof$100,000orless.Atotalhouseholdincomeof$75,000orless

is limited to a 7% annual percentage increase in equalized assessed value or a total household

incomeofover$75,000to$100,000islimitedtoa10%annualpercentageincreaseinequalized

assessed value. The minimum limit is the same amount calculated for the General Homestead

Exemption with no maximum limit amount for the exemption. Properties cannot receive both the

Long-time Occupant Homestead Exemption and the Alternative General Homestead Exemption,

General Homestead Exemption, or Low-income Senior Citizen Assessment Freeze Homestead

Exemption. Properties that qualify for the Low-income Senior Citizen Assessment Freeze

Homestead Exemption will receive the same amount calculated for the General Homestead

Exemption.ForinformationandtoapplycontacttheCookCountyAssessor’sOce.

Homestead Improvement Exemption—Thisexemptionislimitedtothefaircashvalueuptoan

annualmaximumof$75,000(or$25,000inassessedvalue,whichis331/3percentoffaircash

value), that was added to homestead property by any new improvement (e.g., remodeling, adding

a new room) or rebuilding after a catastrophic event, and continues for four years from the date

the improvement or rebuilding is completed and occupied.

Property tax exemptions and relief programs

The Illinois Property Tax System Page 27

Senior Citizens Homestead Exemption—

This annual exemption is available for “property

that is occupied as a residence by a person 65 years of age or older who is liable for paying

real estate taxes on the property and is an owner of record of the property or has a legal or

equitable interest therein as evidenced by a written instrument, except for a leasehold interest,

other than a leasehold interest of land on which a single family residence is located, which is

occupied as a residence by a person 65 years or older who has an ownership interest therein,

legal, equitable or as a lessee, and on which he or she is liable for the payment of property taxes.”

(35 ILCS 200/15-170)

The maximum amount of the reduction in equalized assessed value is

$8,000forCookCountyandcountiescontiguoustoCookCountyor$5,000forallothercounties.

Low-income Senior Citizens Assessment Freeze Homestead Exemption—Youqualifyforthis

exemption if

• youareatleast65yearsold;

• yourtotalhouseholdincomeis$65,000orless;and

• youmeetcertainotherqualications.

This exemption “freezes” your property’s equalized assessed value the year that you qualify

for the exemption. Your property’s equalized assessed value does not increase as long as you

qualify for the exemption. Your tax bill may still increase if any tax rates are increased or if you

add improvements that increase the value of the property.

Veterans with Disabilities Exemption for Specially Adapted Housing—Thisexemption

maybeupto$100,000reductionontheassessedvalueforcertaintypesofhousingowned

and used exclusively by a veteran with a disability in which federal funds have been used for

the purchase or construction of specially adapted housing. The exemption is valid for as long

as the veteran, the spouse, or the unmarried surviving spouse resides on the property. Federal

andstatenancialassistanceisprovidedforservice-connectedveteranswithdisabilitiesfor

thepurposeofacquiringorremodelingsuitabledwellingunitswithspecialxturesormoveable

facilities made necessary by the veteran’s permanent and total service-connected disabilities as

determinedbytheU.S.DepartmentofVeterans’Aairs.Beginningwiththe2015taxyear,the

exemptionalsoappliestohousingthatisspecicallyconstructedoradaptedtosuitaqualifying

veteran’s disability if the housing or adaptations are donated by a charitable organization, and the

veteran has been approved to receive funds or the purchase or construction of Specially Adapted

HousingthroughtheU.S.DepartmentofVeteransAairs.Thisexemptionisalsoavailableona

mobile home owned and used exclusively by a veteran with a disability or his or her spouse. For

a single tax year, the property cannot receive this exemption and the Homestead Exemption for

Persons with Disabilities or Standard Homestead Exemption for Veterans with Disabilities. For

furtherinformation,pleasecontactyourlocalVeteranServiceOcer.

Homestead Exemption for Persons with Disabilities—Thisexemptionisanannual$2,000

reduction in equalized assessed value of the primary residence that is owned and occupied by

a person with a disability who is liable for the payment of property taxes. The applicant must

provide proof of disability. For a single tax year, the property cannot receive this exemption and

the Veterans with Disabilities Exemption for Specially Adapted Housing or Standard Homestead

Exemption for Veterans with Disabilities (SHEVD).

Standard Homestead Exemption for Veterans with Disabilities (SHEVD)—Beginningin

tax year 2007 and after, this exemption is an annual reduction in equalized assessed value

ontheprimaryresidenceoccupiedbyaqualiedveteranwithadisability.Thisveteranwith

a disability must own or lease a single family residence and be liable for payment of property

taxes.Theproperty’stotalEAVmustbelessthan$250,000aftersubtractinganyportionused

for commercial purposes. The amount of the exemption depends on the percentage of the

service-connecteddisabilityascertiedbytheUnitedStatesDepartmentofVeterans’Aairs.A

qualiedveteranwithaservice-connecteddisabilityofatleast30%butlessthan50%willreceive

a$2,500reductioninEAV;iftheveteranhasaservice-connecteddisabilityof50%butlessthan

70%,theannualexemptionis$5,000;andiftheveteranhasaservice-connecteddisabilityof

70% or more, the residential property is exempt from taxation.

Note: An unremarried surviving spouse of a veteran who was disabled and is now deceased can

• continue to receive this exemption on his or her spouse’s primary residence, or

• transfer this exemption to another primary residence after the original primary residence of a

veteran with a disability is sold, provided this exemption had previously been granted to the

veteran with a disability.

Property tax exemptions and relief programs

Page 28 The Illinois Property Tax System

Thesurvivingspousemustoccupyandholdlegalorbenecialtitletotheprimaryresidence

and submit a Form PTAX-342, Application for the Standard Homestead Exemption for Veterans

withDisabilities,availablefromyourlocalasssessmentoce,totransferthisexemptionto

themselves.

Beginning in tax year 2015 (property taxes payable in 2016), an un-remarried surviving spouse

of a veteran killed in the line of duty will be eligible for a 100% reduction in the EAV on his/her

primary residence, even if the veteran did not previously qualify for or obtain the SHEVD.

Beginning in tax year 2023 (property taxes payable in 2024), an un-remarried surviving spouse of

aveteranwhosedeathwasdeterminedtobeservice-connectedandwhoiscertiedbytheU.S.

DepartmentofVeteransAairsasarecipientofdependencyandindemnitycompensationunder

federal law, may also qualify even if the veteran did not previously qualify or obtain the SHEVD.

For a single tax year, the property cannot receive this exemption and the Veterans with

Disabilities Exemption for Specially Adapted Housing or the Homestead Exemption for Persons

with Disabilities.

Returning Veterans’ Homestead Exemption—Thisexemptionisa$5,000reductionin

equalized assessed value on the principal residence of a veteran upon returning from active duty

inanarmedconictinvolvingthearmedforcesoftheUnitedStates.Areturningveteraniseligible

to receive the exemption the tax year and the following year that the veteran returns home from

activedutyinanarmedconictinvolvingtheU.S.armedforces.

Residential Improvements for Accessibility —Accessibilityimprovementsmadetoresidential

property shall not increase the assessed valuation of the property for a period of 7 years after the

improvementsarecompleted.“Accessibilityimprovement”meansahomemodicationincluding,

but not limited to, the installation of ramps and grab-bars, widening door-ways, and other changes

to enhance the independence of a disabled or elderly individual.

Natural Disaster Homestead Exemption—Thisexemptionisonhomesteadpropertyfor

a rebuilt residential structure following a natural disaster. The amount of the exemption is the

reductioninequalizedassessedvalueoftheresidenceinthersttaxableyearforwhichthe

taxpayer applies for an exemption minus the equalized assessed value of the residence for the

taxable year prior to the taxable year in which the natural disaster occurred. The exemption

continues at the same amount until the taxable year in which the property is sold or transferred.

Erroneous Homestead Exemptions —Ifthechiefcountyassessmentocerdiscoversan

erroneoushomesteadexemptionhasbeengranted,thechiefcountyassessmentocermay

consider the exempt portion as omitted property for that taxable year only, to recover the portion

of unpaid property taxes. In Cook County, the county assessor may record a tax lien against the

property that was granted the erroneous homestead exemption. The property owner or taxpayer

may be responsible for any back taxes owed due to an erroneous homestead exemption.(35

ILCS 200/9-265 and 9-275)

Preferential assessments

Open space assessment—Anassessmentbasedupon“usevalue”isavailableforland

that is used exclusively for maintaining or enhancing natural or scenic resources, promoting

conservation of natural resources, or preserving historic sites. This special assessment may be

less than 33 1/3 percent of the fair cash value of the land for its highest value use. The land must

consistofmorethan10acres,musthavebeeninaqualiedusefortheprecedingthreeyears,

and must not be used primarily for residential purposes. Public and private golf courses qualify.

TheownermustapplybyJune30ofeachyear,andwhenthepropertyceasestobeusedfor

openspace,thetaxpayermustnotifythechiefcountyassessmentocerinwriting.Whenthe

propertyisnolongerusedforopenspace,thetaxpayerisliableforthedierencebetweenthe

“use value” taxes and normal taxes for the previous three years, plus 5 percent interest.

Former farm open space assessment—Ifatracthasnotbeenusedasafarmformorethan

20 years and no other use has been established, the property is to be valued as open space.

Conservation stewardship—Ifyouownveormorecontiguousacresofunimproved

woodland, prairie, wetlands, or other vacant and undeveloped land that is not used for any

residential or commercial purposes, it may qualify for a conservation stewardship assessment.

Qualifyingpropertyisassessedatvepercentofitsfaircashvalue.Propertyowners

must complete an application at the Illinois Department of Natural Resources website at

www.dnr.illinois.gov.

Property tax exemptions and relief programs

The Illinois Property Tax System Page 29

Forestry management—Propertyownersthatownoroperateatleasttencontiguousacres

of land on which no building is present and have one of the primary management goals to be

timber production, may qualify for a forestry management assessment. Qualifying property is

assessed under the Farmland Assessment Law (based on its soil productivity index at one-sixth

oftheequalizedassessedvaluecertiedbytheDepartmentofthatproductivityindex).Property

owners must complete an application at the Illinois Department of Natural Resources website at

www.dnr.illinois.gov.

Vegetative lter strips —Avegetativestripislandbetweenafarmandsomeareatobe

protected (e.g.astreamorlake)thatmeetscertainspecicationsandguidelines.Incountiesof

less than 3,000,000, the land is assessed at one-sixth its productivity index equalized assessed

value as cropland. In counties of more than 3,000,000, it is assessed at the lesser of 16 percent

of its value if sold for use as farmland or 90 percent of the 1983 average equalized assessed

valueperacrecertiedbytheDepartmentofRevenue.Thecounty’ssoilandconservationdistrict

shallassistthetaxpayerincompletinganapplicationthatmustbeledwiththechiefcounty

assessmentocer.

Non-clear cut assessment—Qualifyinglandmustbelocatedwithin15yardsofnavigable

water and cannot be located in a unit of local government with a population of more than 500,000.

If such land has not been clear-cut of trees it is to be valued at one-twelfth of its productivity index

equalizedassessedvalueascropland.Specicdenitionsof“navigable”and“notclear-cutof

trees”mustbemet.Contactthechiefcountyassessmentocerforspecicdenitionsandmore

information.

Registered land or land encumbered by conservation rights—Specialassessment

treatment is available for land that is either registered in perpetuity under the Illinois Natural

Areas Preservation Act or encumbered in perpetuity by a conservation right under the Real

Property Conservation Rights Act. Any improvement, dwelling or other structure on the land is

assessed as similar property in that county. In counties other than those with a population of more

than 200,000 that classify property for taxation, the land is assessed at 8 1/3 percent of its fair

market value if not registered or encumbered (i.e. at 25 percent of the statutory 33 1/3 percent).

In counties that classify property, the assessment is at 25 percent of the ordinance level for that

classofproperty.ApplicationtothechiefcountyassessmentocermustbemadebyJanuary

31 of the year the taxpayer wants the special assessment to begin. The taxpayer must notify the

chiefcountyassessmentocerwithin30daysofthelandnolongerqualifying,and,unlessthe

release is caused by certain circumstances, that taxpayer will be liable for a 10 year recovery of

thetaxbenetsplus10percentinterest.

Solar heating and cooling—Whenasolarenergysystemhasbeeninstalledasan

improvementonrealpropertyandthemajorityoftheenergyproducedisconsumed 

on-site,theownermayleaclaimforanalternateassessmentwiththechiefcountyassessment

ocer.Theimprovementisassessedasifheatedorcooledbyconventionalmeans,anditisalso

assessed with the solar energy system. The alternate valuation is the lesser of the two means of

assessment. The alternate valuation continues as long as the solar energy system is used. The

ownermustnotifythechiefcountyassessmentocerwithin30daysofceasingtousethesolar

energysystemtoheatorcooltheproperty.Thistaxbenetisalsoavailableforimprovements

that harness indirect solar energy, such as wind.

Note: Thisbenetdoesnotapplytoacommercialsolarenergysystem.

Rehabilitation of Historic Residences—Residentialpropertywithcertainhistoricdesignations

maybeeligibleforpreferentialassessmentiftheownerhasreceivedacerticateofrehabilitation

of the property from the Historic Preservation Agency. Unless a taxing district has previously

opted out of this program, assessments are frozen for a period of eight years and are gradually

increased to full value over the following four years.

Platted and Subdivided Land—Incountieswithlessthan3,000,000inhabitants,the

improvement of certain platted and subdivided land with streets, sidewalks, curbs, gutters, and

sewer, water and utility lines does not increase the assessed value of the property. The land

musthavebeenplattedafterJanuary1,1978,andmusthavebeenvacantlandinexcessof10

acres of agricultural land before platting. The land is to be assessed each year according to the

estimated price it would bring at a fair voluntary sale for use for the same purpose for which it was

used before platting. This special valuation on a lot ends when a habitable structure is completed,

the property is used for any business, commercial, or residential purpose, or the lot is sold.

Property tax exemptions and relief programs

Model (Demonstration) homes—Whenadwelling,townhome,orcondominiumunitis

constructed and used as a model or demonstration home, the equalized assessed value of the

property remains at the level prior to construction of the home. The lower equalized assessed

valueremainsineectuntilthehomeissoldorleasedforuseotherthanasamodelhome.At

thatpoint,theequalizedassessedvalueischangedtoreectthevalueoftheimprovedproperty.

An entity can have no more than three qualifying model homes within a 3-mile radius. The

deadline for annual application is April 30 in counties of more than 3 million and December 31 in

other counties.

Subdivision of common areas —Residentialproperty

• which is part of a development,

• which is individually owned, and

• ownership of which includes the right, by easement, covenant, deed, or other interest in

property, to the use of any common area for recreational or similar residential purposes

is assessed at a value which includes the proportional share of the value of that common area or

areas.

Propertyisusedasa“commonareaorareas”ifitisalot,parcel,orarea,thebenecialuse

andenjoymentofwhichisreservedinwholeasanappurtenancetotheseparatelyowned

lots, parcels, or areas within the planned development. The common area or areas used for

recreational or similar residential purposes and which are assessed to a separate owner and are

locatedonseparatelyidentiedparcels,islistedforassessmentpurposesat$1peryear.

Veterans organization assessment freeze—Aqualiedveteransorganization(charteredunder

federal law) may elect to freeze the assessed value of the real property it owns and on which is

located the principal building for the post, camp, or chapter. The assessed value is frozen at 15

percentofthe1999assessedvalueforpropertythatqualiedintaxyear2000,or15percentofthe

assessedvalueforpropertyforthetaxyearthatthepropertyrstqualiesaftertaxyear2000.Any

improvements or additions that are made to the property that increase the assessed value of the

property also are frozen at 15 percent of the assessed value of the improvement or addition in the

yearrstassessed.

Fraternal organization assessment freezes—Qualiedfraternalorganizations,ortheir

subordinate organizations or entities, may elect to freeze the assessed value of the real property

they own and use. The preferential assessment is calculated in a manner similar to that described

above for veterans’ organizations.

Small Business Tornado Disaster Relief—Apreferentialassessmentofaqualiedcommercial

and industrial property owned and used by a small business is available in the form of a reduced

assessment calculation for property that is used exclusively for commercial or industrial purposes

and has been rebuilt within two years of being destroyed by a tornado. The small business must

employ fewer than 50 full-time employees. The tornado must be declared a natural disaster by

the Governor of Illinois or the President of the United States.

Airports—Whilethepropertiesofairportauthoritiesorothergovernmentalentitiesusedas

airports is exempt from real estate taxation (35 ILCS 200/15-160), nongovernmental airports in

counties of 200,000 or more may qualify for a special assessment. The property is assessed at

33 1/3 percent of its fair cash value based on its use for airport purposes. It must have been so

usedforthethreeprecedingyears,andthereisa3-yearrecoveryoftaxbenetsplusinterestif

theusechanges.ApplicationmustbemadewithchiefcountyassessmentocerbyJanuary1of

each year. (35 ILCS 200/10-90 through 10-100)

Property tax exemptions and relief programs

Page 30 The Illinois Property Tax System

Incentives

Abatements — A local taxing district may instruct the county clerk to abate any portion of

its taxes for qualifying types of property such as commercial and industrial expansion, horse

racing, auto racing, academic or research institutes, housing for older persons, historical

societies, recreational facilities, relocated corporate headquarters, U.S. public/private residential

developments,orqualieddonations(municipalitiesonly).Theabatementamountandduration

depend on the type of property for which the taxes are being abated.

Note: The Property Tax Code (35 ILCS 200/18-165 et. seq.) provides for several other

abatements for qualifying properties.

Enterprise Zone Abatements — The Enterprise Zone Act authorizes the Department of

Commerce and Economic Opportunity to certify a limited number of enterprise zones in

depressed areas. Associated with the zones are state income tax, sales, and property tax

incentives to encourage business investment. Under the Act, each unit of local government has

the authority to abate property tax on business improvements added to real estate after the

creation of the enterprise zone or renovations to existing improvements. Section 18-170 of the

Property Tax Code expands the abatement authority to include new or renovated improvements

on all classes of real property in enterprise zones.

Other types of property tax relief

Othertypesofpropertytaxreliefareidentiedbelow.

Senior Citizens Real Estate Tax Deferral Program —Thisprogramallowspeople65years

ofageandolder,whohaveatotalhouseholdincomefortheyearofnogreaterthan$65,000

andmeetcertainotherqualications,todeferallorpart(uptoamaximumof$7,500)ofthe

real estate taxes and special assessments on their principal residences. The deferral is similar

toaloanagainsttheproperty’smarketvalue.Alienisledonthepropertyinordertoensure

repayment of the deferral. The state pays the property taxes and then recovers the money, plus

6 percent annual interest, when the property is sold or transferred. The deferral must be repaid

within one year of the taxpayer’s death or 90 days after the property ceases to qualify for this

program. The maximum amount that can be deferred, including interest and lien fees, is 80

percent of the taxpayer’s equity interest in the property. Contact your local County Treasurer’s

ocetoreceivethenecessaryforms,orformoreinformation.

Property tax exemptions and relief programs

The Illinois Property Tax System Page 31

Glossary

Ad Valorem according to value.

Agricultural Economic Value the basis for assessment of farm acreage. The Illinois Department of Revenue

calculates these values for each productivity index by dividing its net income over a

ve-yearperiodbytheaverageFederalLandBankfarmlandmortgageinterestratefor

thesameve-yearperiod.Permanentpastureisassessedatone-thirdofwhatwould

be assigned if it was cropland. Other farmland (e.g., forestland, grass waterways) is

assessed at one-sixth of what would be assigned if it was cropland. Wasteland has no

assessed value unless it contributes to the productivity of the farm.

Appraisal an opinion of value, supported by evidence.

Arm’s-length Sale a voluntary sale between two unrelated parties in the normal course of business.

Assessed Value the value placed on property for ad valorem tax purposes and used as a basis for

distributionofthetaxburden.Thisamountissubjecttothestate-issuedequalization

factor and deductions for certain homestead exemptions.

Assessment theocialactofdiscovering,listing,appraising,andenteringavalueforpropertyon

the assessment rolls for ad valorem tax purposes.

Assessment Level the percentage of full value at which property is assessed. It may refer to the statutory

assessment level or the actual assessment level as inferred from an assessment/sales

ratio study.

Assessment/Sales Ratio Study an analysis of the percentage relationship of assessed value to the market value

(assessment level).

Board of Review the local entity that reviews assessment appeals (in all counties) and equalizes

assessments within the county (in all counties but Cook County). In most township

counties, three people appointed by the county board comprise the board of review.

In a few township counties, board of review members are elected. In commission

counties, the county commissioners are also the board of review members (unless

they appoint the board of review).

Chief County the individual appointed by a county board, or elected in a county, to supervise

Assessment Ocer township and multi-township assessors (who complete original assessments) and to

(CCAO) reviewtheirwork.Inmostcountiesthetitleofthechiefcountyassessmentoceris

“supervisor of assessments.” In Cook and St. Clair counties, it is “county assessor.”

The supervisor of assessments has the power to revise and equalize assessments

and is the clerk of the board of review. In commission counties, the chief county

assessmentocermakestheoriginalassessment.

Classication the practice of classifying various types of property according to use and assigning

dierentassessmentlevelstoeachclass.Itspurposeistotaxvarioustypesof

propertyatdierenteectivetaxrates,thoughthenominalrateisthesame.

County Assessor an individual elected to oversee the assessment process in Cook and St. Clair

counties. In practice, a county assessor is responsible for making original

assessments, rather than the township or multi-township assessors.

Glossary

Page 32 The Illinois Property Tax System

Eective Tax Rate the ratio of taxes billed to the market value, generally expressed as a percentage.

Equalization the application of a uniform or blanket percentage increase or decrease to assessed

values of various areas or classes of property to bring assessment levels, on

average, to a uniform level of the market value.

Equalization Factor the factor that must be applied to local assessments to bring about the percentage

increase or decrease that will result in an equalized assessed value equal to

one-thirdofthemarketvalueoftaxablepropertyinajurisdiction(otherthanfarm

acreage, farm buildings, and coal rights).

Equalized Assessed Value theassessedvaluemultipliedbythestate-certiedequalizationfactor;theresult

is the value from which the tax rate is calculated after deducting homestead

exemptions,ifapplicable.Forfarmacreage,farmbuildings,andcoalrights,thenal

assessed value is the equalized assessed value. Also, tax bills are calculated by

multiplying the equalized assessed value by the tax rate.

Exemption the removal of the assessed value or a portion of the assessed value from the

tax base. There are two types of exemptions: homestead and non-homestead

exemptions.

Extension 1) the process in which the county clerk determines the tax rate needed to raise

therevenue(levy)certiedbyeachtaxingdistrictinthecounty;2)theactualdollar

amount billed to property owners in a taxing district.

General Year Assessment the general assessment year, occurring every four years (three years in Cook

County), when property assessments are reviewed.

Improvement any permanent structure on real property. Examples: buildings, fences, landscaping,

driveways, sewers, or drains.

Levy theamountofmoneyataxingbodycertiestoberaisedfromthepropertytax.

Market Value (Fair Cash Value) the most probable sale price of a property in terms of money in a competitive

and open market, assuming that the buyer and seller are acting prudently and

knowledgeably,allowingsucienttimeforthesale,andassumingthatthe

transactionisnotaectedbyunduepressures.

Multi-township Assessor thepersonelectedorappointedtomakeoriginalassessmentsinaspecied

combination of political townships.

Notice of Revision a notice mailed to a property owner after a property’s assessed valuation is changed

bylocalassessingocials.Itshowsthepreviousassessmentaswellasthe

new assessment. It includes the median level of assessments in the assessment

jurisdiction,asshownbyanassessment/salesratiostudy,forthemostrecentthree

years.

Overlapping Taxing Districts those taxing districts located in more than one county.

Parcel adenedareaofland,withorwithoutimprovements,enteredasaseparateitemon

the assessment rolls for the purpose of ad valorem taxation.

Page 33 The Illinois Property Tax System

Glossary

Property Index Number a description of a particular parcel by numerical reference to parcels on assessment maps.

Property Record Card the local assessor’s record of individual property appraisals used for assessment

purposes. Recorded upon the card are a sketch of the improvement, details of

construction, size, condition, description, and other information showing how the

assessment was derived. It is a public record required by law.

Property Tax Appeal Board thestatequasi-judicialbodythathearsappealsfrompropertyownersandtaxing

districts on property tax assessment decisions of county boards of review.

Soil Productivity Index an index ranking the capability of soils for producing crops under average level

management. The highest productivity index in the state is 130.

Tax Code anumberusedbythecountyclerkthatreferstoaspeciccombinationoftaxing

bodies.

Tax Rate theamountoftaxduestatedintermsofapercentageofthetaxbase.Example:$6.81

per$100ofequalizedassessedvaluation(equalto6.81%).

Taxing Body/Taxing District alocalgovernmentalunitthatleviesapropertytax;theterritorialareaunderataxing

body’sjurisdiction.

Township Assessor the person elected or appointed to make original assessments in a political township.

Townships of fewer than 1,000 inhabitants must establish a multi-township assessment

district by combining territory and elect or appoint a multi-township assessor for

purposes of ad valorem taxation.

Use Value thevalueofapropertyforaspecicuseortoaspecicuser,reectingtheextentto

whichthepropertycontributestotheutilityorprotabilityoftheenterpriseofwhichitis

a part.

Page 34 The Illinois Property Tax System

Glossary