Every buyer I have ever worked with has asked me to explain the Cook County system of property tax assessment. Explain? How could I adequately do this when the Civic Federation says this on their blog:
"The Cook County property tax system is so complex that it is impossible to predict exactly how the new tax rates will affect an individual property owner’s bill."
And in today's Chicago Tribune, in an excellent article by Eric Zorn, he writes:
"Just about everything having to do with property taxes is convoluted and every explanation is filled with jargon, acronyms and more math than most of us are used to doing."
But of course, I try to explain it - as I will again now. Especially in light of the fact that Winnetka, Wilmette, Kenilworth and other North Shore communities have seen dramatic price reductions during the last year and people assume their tax bills will reflect this. Maybe later - but one curiosity of our taxing system is that our bills are paid in arrears - this means that this year's bill is for last year, when home values were higher.
So no, your tax bill will not automatically reflect the rather substantial drop in your home's value. In addiiton to this, the 7% Homeowner Exemption which was passed in 2004 is being phased out.
But let's get back to basics. There are hundreds (I have heard as many as 1200) taxing bodies in Cook County that make a claim on property tax monies. These bodies are the park districts, libraries, schools, city, county, etc. Determining what the total demand is - then setting about extracting this from homeowners is how the tax rate is determined. So in effect, taxes go up if more money is requested.
Unless you're really ready for a challenge, skip the next paragraph!
Actually determining what each homeowner pays is a nightmare to understand. First there is the 
assessment level, which in Cook County is 16% of your home's market value. Then there is an equalization factor which attempts to even out or "equalize" assessments from county to county across the state. The equalized assessed value is the county's assessed value after it has been equalized. So your total tax bill is based on the latest assessment, and new equalization factor, exemptions and tax rate.
What is really confusing is that 1) your assessment could go up while your taxes go down, or 2) your assessment can go down and your taxes could go up. In other words, somebody must have wrote this thing with the thought in mind that you can't complain about something that you don't understand. The important thing to understand is how much your portion goes up in relation to other houses.
This is where I can help you - by providing information from the tax base about your neighborhood, recent sales, and tax bills being currently paid by your neighbors. This is how you can determine where you stand in comparison to other properties. But please don't ask me to explain the Cook County System of Property Taxation - I'd rather wade through a swamp filled with alligators. . . .
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