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Old 03-13-2021, 08:20 PM
 
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I am searching for housing in Chicago suburb especially north. I have a tax question. In California when you buy a house, your property tax assessed value is just how much you paid for the property. Is this true for Illinois or more specific the cook county? Thanks.
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Old 03-13-2021, 08:48 PM
 
Location: Evanston, Lake Forest, and Wrigleyville, Illinois
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Originally Posted by fengxg View Post
I am searching for housing in Chicago suburb especially north. I have a tax question. In California when you buy a house, your property tax assessed value is just how much you paid for the property. Is this true for Illinois or more specific the cook county? Thanks.
In Illinois, the county assessor determines the assessed value. Purchase price, market value, and assessed value are independent of another but they are still influenced by each other. In most cases, a sale is not going to trigger a reassessment. Homes in Illinois are assessed on a schedule.
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Old 03-13-2021, 09:08 PM
 
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Originally Posted by Hiruko View Post
In Illinois, the county assessor determines the assessed value. Purchase price, market value, and assessed value are independent of another but they are still influenced by each other. In most cases, a sale is not going to trigger a reassessment. Homes in Illinois are assessed on a schedule.
Thanks for the reply. So if I purchase a property for a price very different from the assessed value like foreclosure, and appeal the assessed value, would that be valid? If I purchase a property what is the realistic expectation of the property tax I am going to pay?
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Old 03-13-2021, 09:36 PM
 
Location: Evanston, Lake Forest, and Wrigleyville, Illinois
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Originally Posted by fengxg View Post
Thanks for the reply. So if I purchase a property for a price very different from the assessed value like foreclosure, and appeal the assessed value, would that be valid? If I purchase a property what is the realistic expectation of the property tax I am going to pay?
Depending upon how out of the ordinary the sales price was, it will be considered an outlier among the data used to create the assessed value. Good appeals with evidence are very successful.
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Old 03-14-2021, 07:05 AM
 
6,791 posts, read 3,193,106 times
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Originally Posted by fengxg View Post
Thanks for the reply. So if I purchase a property for a price very different from the assessed value like foreclosure, and appeal the assessed value, would that be valid? If I purchase a property what is the realistic expectation of the property tax I am going to pay?
You wouldn’t necessarily get a reassessment at the time you purchase the property. The assessor’s office allows an appeal period for about a month after you receive your proposed tax amount, and I think there are other periods where you can file an appeal as well outside the normal reassessment schedule.

These days the forms are all online and are very easy to do. The website will tell you what is helpful to attach. I did mine in DuPage, but from what I can tell, Cook county is pretty similar in the process. Usually you will need an appraisal as well as documentation indicating what you paid for the property.
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Old 03-14-2021, 10:31 AM
 
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We purchased our house for 30% less than previous sale. During the appeal period, we hired an attorney and our valuation was dropped to what we paid. (I think this is straight forward for the first year, because it is based on a current sale.) That was 9 years ago and every appeal period we have to fight to keep our taxes down. They slowly inch up every year.

A few things to be aware of, if you make improvements and permit your taxes can go up. Then again, our neighbors added and entire half a house, and somehow dodged the tax reassessment bullet.

Good luck the tax code in cook county is a bit nuts.
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Old 03-14-2021, 12:52 PM
 
2,905 posts, read 992,599 times
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Originally Posted by fengxg View Post
Thanks for the reply. So if I purchase a property for a price very different from the assessed value like foreclosure, and appeal the assessed value, would that be valid? If I purchase a property what is the realistic expectation of the property tax I am going to pay?
If you are buying a property for less than comparable properties are selling for, it will still be assessed similar to like properties. Taking your case to an extreme, what would happen if you inherited the home, paying nothing for it? I guarantee you'd be paying full freight on the RE taxes for it going forward, which is only fair.

My own home is worth significantly less than those homes of similar design, size and age in my area, because it hasn't had major updates to the kitchen, baths, etc.. But, I'm still assessed as if it were already-updated, and have been rejected on appeal when I tried to argue the fact. So, at least in my experience, "No". I wish there were a way to sue the County if you sell your home for significantly less than it is assessed at, in order to keep them honest.

Go to the county assessor's website, and they should provide a "How we assess your property" article.
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Old Yesterday, 10:03 AM
 
12,452 posts, read 3,721,104 times
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Originally Posted by fengxg View Post
I am searching for housing in Chicago suburb especially north. I have a tax question. In California when you buy a house, your property tax assessed value is just how much you paid for the property. Is this true for Illinois or more specific the cook county? Thanks.
Nope. They reassess all properties on a triennial basis. They do one area one year and another the next. Then people pay lawyers a bunch of money to get their assessments down. The lawyers are often the ones who make the high tax laws in the first place. It is expected that Chicago taxes are going to take a big jump due to Covid and businesses who are no longer leasing office space downtown.

You get multiple opportunities each year to appeal but your only hope of winning much on appeal is if your property is out of line with area comps. Mine always is because for some reason, they divided our brand new neighborhood up into two neighborhood classifications and the other one pulls from an adjacent neighborhood that includes low income housing. So you start by appealing to the County and then the Board of Equalization and then to the State. (I am on a state appeal level now. They said it it can take 4 years to process). I used to be an appraiser so I do it myself. It's really not hard.

Glenview was rated recently as one of the three lowest suburbs relative to value. I can't remember the other two. It was in the Tribune last week, I think.
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Old Yesterday, 10:09 AM
 
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Originally Posted by fengxg View Post
Thanks for the reply. So if I purchase a property for a price very different from the assessed value like foreclosure, and appeal the assessed value, would that be valid? If I purchase a property what is the realistic expectation of the property tax I am going to pay?
They aren't going to assess it for the foreclosed value. The values are generated by a computer algorithm. Here's an example:


House A 1500 sf 3/2 $100,000
House B 1200 sf 3/1 $87,000
House C 1800 sf 4/2 $115,000
House D 1200 sf 3/2 $$93,000

Assume all houses are near each other, similar quality, similar age.

So let's say you buy a foreclosure that is 1500 3/2 and you pay $75,000. You won't win an appeal because comps won't support your value.

Let's forget the foreclosure and say you have a house that is 1200 sf 3/1 assessed at $125,000. You WILL win an appeal because you are assessed way higher than the comps for the same thing.
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Old Yesterday, 10:47 AM
 
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And just as FYI, even if you bought a foreclosed house in California, they wouldn't assess at the sale price unless it was close to market. They have people whose job it is to look at all the sales and determine if they are market sales or anomalies. Sales between family member, foreclosures, et. If it's not a market sale, they use comps to determine market and assign that value. I know because I used to do that job for LA County.
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