I bet you wouldn't believe me if I told you the average homeowner here in Chicago, as well as in the Surrounding Chicago Suburbs in Cook County IL, will likely be going up again this year? Would you?
Well - they are likely going up, despite a recent downward trend in most real estate prices here.
Many of the Assessed Property Values in Chicago and most suburbs were calculated between January 1, 2006, and January 1 of last year - before the market here started to turn downward, and median prices started to tumble.
Because of the higher basis for Property Tax Calculation here in Cook County, Clerk David Orr warned that higher residential and commercial tax bills are likely. Orr just released official 2007 Tax Rates today (2007 Real Estate Taxes will be due and payable by November 3rd - they'll begin to hit local mailboxes later this month).
Assessed values in Cook County are calculated on a triennial cycle. The City of Chicago was re-assessed during 2006, the Northern Cook County Suburbs, 2007, and the Southern and Western Suburbs - 2008.
In the City of Chicago, 2007 Property Tax Bills, now coming due, will be based on home values as of January 1, 2006 - before the real estate and mortgage slowdown began. Further, those in Chicago will not get as much benefit from the 7% cap in assessed values for 2007 taxes as they did for 2006 bills, due last year.
Homeowners in the Northern Suburbs of Chicago, and still in Cook County, will see their real estate tax bills based on their property value as of January 1, 2007 - also before average home values began to fall here.
Assessment increases will vary from roughly 13% in northwest suburban Schaumburg Township, to 25% in New Trier Township, north of Chicago, along Lake Michigan. These property owners will get a bit of a break, however, as they will enjoy more savings from the 7% assessed value cap, as compared to Chicago residents.
Those owning real estate in the Southern and Western Cook County Suburbs of Chicago will be not see assessed value increases this time around, as these townships and suburbs will not be re-assessed until the 2008 tax bills are due, in 2009.
Homeowners south and west of Chicago might see more immediate tax relief, as their new assessed property values will reflect the latest, falling home price trends. As with the City of Chicago, however, the tax savings from the IL-Mandated 7% Assessment Cap will be reduced this year.
In general, however, property owners in Chicago may have a comparatively smaller tax bite this year than homeowners in Suburban Cook County, as well as surrounding counties in the Chicago Metro Area. According to a study released this week by the Civic Federation of Chicago, homeowners in the city typically pay lower tax rates for similar property than their neighbors in the suburbs.
Laurence Msall, President of the Civic Federation, says "Homeowners in the City of Chicago actually have a relatively low effective tax rate, due to the value of industrial and commercial property around (them)."
Want more info on Cook County IL and Chicago Tax Rates, or would you just want to put off reading about them, likely getting a big headache, until the last possible moment?
In case you're in a masochistic mood - check out our post today at BlogChicagoHomes.comfor more info, as well as important links to Hal Dardick's extensive coverage in today's Chicago Tribune, and actual rates and information from Cook County Clerk Orr's Official Website.
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