Wondering why your November 2010 tax
bill went up about 9%?
November 23, 2010
District 15 property taxes went down by $0.4 million. But the typical homeowner
actually paid about 9% more due mainly to a shift
in tax burden from non-residential property taxpayers to homeowners.
District 15's property taxes for the 2009 tax year
(paid in 2010) actually went down by
$0.4 million from $110.1 million to $109.7 million. But
the typical homeowner instead saw
their taxes for District 15 increase by about 9%.
District 15 Taxes
2008 Tax Year
2009 Tax Year
Total Equalized Assessed Value (EAV)
District 15 Tax Rate ($ per $100 EAV)
District 15 Taxes Total
District 15 Taxes for Non-Residential
District 15 Taxes for Residential
Residential Tax Share
(based on estimate
of total Residential EAV)
The main reason for this is a
shift in tax burden for the 2009 tax year to
homeowners from other property taxpayers. As shown
in the table, homeowners paid about 67% of
District 15 taxes for 2008 and 73% for 2009.
The $0.4 million reduction in taxes for
District 15 mentioned above was the result of a tax
reduction for bond payments of $0.8 million offset
by a tax increase for other funds of $0.4 million
(this was due to increases being limited to
the amount of inflation, which was 0.1% in 2009).
Effective with the 2009 tax year
the Cook County Assessor implemented a new county
ordinance that assesses
homeowners at 10% of market value and many other
classes of property such as commercial and
industrial at 25%. The result of how this law was
implemented and tax appeals was that the total
assessed value for non-residential property went
down by about 9%. To learn more about this see the
Cook County Assessor page
The total assessed value for
homeowners instead went up by about 10%. There were
two main causes for these higher valuations. First
was that the "State Equalization Factor"
increased by 13% to account
for the overall level of Cook County assessments
that were lower than normal compared to actual
property sales in 2009. This was offset by a 5%
reduction in assessed value applied to Palatine
Township homeowner properties for 2009.
The second main cause of higher
homeowner assessments was the lower maximum
exemption available in the "7% Expanded Homeowner
Exemption." The maximum exemption for tax year 2008
was $26,000. This went down to $20,000 for 2009. For
more information about this see the Cook County
Calculating The 7% Expanded Homeowner Exemption.
As you can see from the table
above the end result was homeowners paying about
$6.8 million more of the District 15 property tax
bill. I was unable to find any
information whether this shift in tax burden was
intended by the Cook County Board, Assessor and the
Board of Review.
For tax year 2010 (for which reassessment
notices were mailed November 19, 2010) it appears
that the tax burden will shift again but
this time away from homeowners. The typical
homeowner's assessment went down by 11%. The typical
commercial/industrial assessment for some large
properties went up by a large percentage. But
undoubtedly be appeals by commercial and industrial
property owners so it is too soon to say for sure
how this will turn out.