Chicago homeowners suffered from a major tax increase in 2017. The tax hike hit residents hard, with a few major increases occurring:
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State income tax rose
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Property taxes rose
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Water and sewer services tax introduced
The city is also raising property taxes in 2018 as well as the water and sewer service tax. There's even a raise in the city's monthly 911 fee. Residents are being hit hard, but the property tax hike is the main one for homeowners to be concerned with.
Property taxes will rise in July 2018 , and payments are normally due on August 1.
Taxes will rise by $224.5 million for CPS, and city property taxes will rise $63 million. The tax increase will be less than in 2017, but a homeowner with a $250,000 home can expect to pay $97 more for in taxes. Homes valued at $500,000 will see their property tax rise $369 on average.
"On average, business and residential property owners can expect their property taxes to increase by 10 percent this year after Gov. Rauner signed a school-funding measure into law in 2017. The law changed the formula that is used to fund schools in the state so that more money is sent to schools that are located in low-income areas," writes the Law Offices of Gary H. Smith, P.C. .
What We Can Learn from the Rate Increases
Homeowners can learn a lot from the rate increases. First and foremost, Chicago Public Schools will receive over $220 million. When schools need to be updated, teachers require a raise and education is the focus of an administration, it's important to know that the costs must be covered somewhere.
Property taxes are often a go-to option because it splits the costs over the city's population.
City services, such as police officers and firefighters, will also impact property taxes when their pension system needs to be funded, as is the case in Chicago.
Homeowners need to be aware that the costs of anything city-related has to come from somewhere. But that doesn’t mean you have to sit down and accept the tax assessment that you receive.
Homeowners have the right to appeal their assessment.
When an appeal happens, homeowners:
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Have nothing to lose from an appeal
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Often have their assessment reduced
It's important to know that there is a window for appeals, so it's a process that needs to be started quickly after an assessment is received. Property tax assessments are also good for three years in Chicago, so if the appeal goes through and the property tax rate is reduced, the reduction will save the homeowner money on taxes for three years.
Triennial assessment is in effect in Chicago.
Mistakes can and do happen with property assessments, and an appeal by a lawyer will help strengthen your case. The National Taxpayers Union claims as many as 60% of homes in the United States are paying property taxes will above their current value.
The approval rate for an appeal is 20% - 40% for all property types. Appeals can also be escalated to further ensure that the assessed value of the property is accurate.
