Property Tax Assessments

Transcription

1 Property Tax Assessments Harvey Camins, Moderator Norman Quinn CMI, CRE, Panel Expert Patrick Doody ESQ, Panel Expert

2 Property Tax Assessments Harvey Camins Managing Director Means Knaus Partners Member of BOMA/Chicago Board of Directors Chairperson of BOMA/Chicago Tax Committee BOMA/Chicago President

3 Property Tax Assessments Norman J. Quinn CMI, CRE Equity Property Tax Group President Member of BOMA/Chicago Tax Committee 30+ years of experience in real estate, finance and taxes

4 Property Tax Assessments Patrick C. Doody, ESQ Law Offices of Patrick C. Doody Member of BOMA/Chicago Tax Committee Member of Bar in IL, WI and AZ Certified Public Accountant Certified Member of the Professionals in Taxation Certified Illinois Assessing Officer

5 Property Tax Assessments Topics Include: Basics of Illinois Tax Sstem System Tour of County Websites Effectively Working with the Assessor s Office People, Process and Paperwork 2012 Revaluation

6 Property Basics Tax of Assessments IL Tax System Revaluation Cycles Components to An Assessment Components to A Tax Bill Calculation Appealing Tax Assessments Undervaluation Complaints Tour of County Websites Landmines & How to Avoid them

7 Property Revaluation Tax Assessments Cycles Cook County Triennial System Other Counties Quadrennial System Off Year Changes

8 How IL Determines Market or Taxable Value Property Tax Assessments Four Components 1. Market or Taxable able Value 2. The Assessed Value 3. State t Equalizer (Multiplier) li 4. Levy, Millage, or Tax Rate

9 How IL Determines Market or Taxable Value Property Tax Assessments Market or Taxable Value Date Specific Annual Assessment Date 1/1 of each year Methods to Determine Value Cost Income Market Sales

10 How IL Determines Market or Taxable Value Property Tax Assessments Determine the Assessment Apply Formulas Market Value * Assessment Ratio = Assessed Value

11 How IL Determines Market or Taxable Value Property Tax Assessments Determine the Assessment Assessment Ratio s Cook County - Multiple Categories Office/Industrial = 25% Residential = 10% Rest of IL All Properties =33.33%

12 How IL Determines Market or Taxable Value Property Tax Assessments State Equalizer (Multiplier):( , ) Determined annually by state Equalizer is overall penalty, applied to every property State Mandated Property to be assessed at 33.33% of value Cook County Assessment Ratios Lower Non Cook - may apply at township, county and/or state

13 How IL Determines Market or Taxable Value Property Tax Assessments Levy, Millage or Tax Rate Cost to Run Government Schools, government services, pension costs etc. Simple Math Net Revenue Required, the budget shortfall, divided by the total tax base valuation

14 Property Tax Assessments Bill Computation Cook County Taxes Due = Assessed Value * State Equalizer (Multiplier) * Tax Levy First Installment = 55% of total prior year tax Second Installment t = Taxes Due less the 1st installment

15 Property Tax Assessments Bill Computation Non Cook County Taxes Due = Assessed Value * State Equalizer (Multiplier) * County / Township Equalizer (Multiplier) * Tax Levy Tax rates are set early in the year allowing the bills to be paid in two equal installments

16 Property Appealing Tax Tax Assessments Courts Circuit Court or Property Tax Appeal Board Board of Review Formal Appraiser Appeal Optional Informal Appraiser Interactions Optional

17 Property Appealing Tax Tax Assessments Assessor - Informal Informal Meeting Before Assessments are Set Potential Informational Packages Letter Properties What are They? Their Future Online Access

18 Property Appealing Tax Tax Assessments Assessor Issues Notices Non Mandatory Appeal Level Meeting/Appealing: Appeal Package and Specific Forms Filing Deadline 30 Days After Notice Issued Filing of Documentation 10 Days After Deadline Assessor Revises or Denies Potential Assessor Questions Requests to Re-Review Change or No Change Tax Roll Certified Runs About 3 Weeks After the Appeal Deadline Tax Roll Published 7 to 10 Days Later

19 Property Appealing Tax Tax Assessments Board of Review - Mandatory For Appeals Complete Decisions Before 2 nd Installment Due Appeal Package and New Forms Board of Review Filing Deadline about a month after roll certified Appeal Period - open for about a month Hearing Scheduled Potential Board Questions Decision Requests to Re-review Change or No Change

20 Property Appealing Tax Tax Assessments Circuit Court or PTAB - (PTAB = Property Tax Appeal Board) Issues Determine Which Forum is Best for Your Case Filing Deadline Vary by Forum Resolution Period ~ 2-4 Years PTAB cases can take longer

21 Property Appealing Tax Tax Assessments Courts Appeal of Decisions Unique Issues Not common

22 Property Undervaluation Tax Assessments Complaints Who Can File? Any Tax payer or rate setting authority Collar Counties Schools most active Cook County Property Tax Fairness Board Created by the City of Chicago ~ 2006 Politically or Publicity Orientation? Appear Transaction Oriented?

23 Tax Rate Appeal Process Cook County Property Tax Assessments Only in Illinois challenge rate setting bodies did not follow proper p procedures while setting their levy for the tax year. Class Action Lawsuits Resolution 8-10 Years Raises Issues of Tenant Reimbursement Treat as Current Track Down Tenants Ignore

24 Assessors Website Property Tax Assessments search.aspx

25 Landmines and How To Avoid Them Property Tax Assessments Property Tax Accounting Understand Your Building Paid One Year inarrears (2011 are Paid in 2012) Accounting - Cash and/or Accrual Accrual accounting required GAAP Lease Escalation Pools

26 Landmines and How To Avoid Them Property Tax Assessments Property Tax Bills Processing Payments: Must Include Original Bill or Original Re-issued Bill must be ordered, can not be printed online Keep Copy for Other Uses permits, escalations, tenant questions Pay in Two Installments: March 1 st - First Installment is 55% of Prior Year Second Installment catch up for new: value, equalizer, and tax rate This Year is Due ~ 8/1 compared to 11/1 last year Going Forward - New Standard, 1 st time since 1978

27 Landmines and How To Avoid Them Property Tax Assessments Property Tax Bills Late Charges Unpaid Balances Penalty - 1.5% /mo. or (18%/yr.) Paid in Full Prior to the Annual Tax Sale Post Tax Sale Costs Increase Delinquent Bills - Research on Treasurers Website Review Bills for Late Charges for Prior Years

28 Landmines and How To Avoid Them Property Tax Assessments Tax Appeals Completing Required Forms - Tight Deadlines Statements of Affirmation Who Signs? Require Notary Quick Turn Around During Appeal Process

29 Property Tax Assessments Questions?

30 Effectively Working with The County Assessor Property Tax Assessments People, Process and Paperwork What is Everyone's Roll? Required Data Required Forms Letter Properties Appraisal Reports

31 Property Tax Everyone s Assessments Role Role of Property Manager Role of Consultant/ Attorney

32 Most Frequent Forms (Required) Property Tax Assessments Owner Lessee Verification Affidavit Sold or Refinance in Last 5 Years Accuracy of Income and Expense Data Owner Lessee Attorney Verification Form Sold Within the Last 3 Years Appoints Attorney Representing Tax Payer

33 Most Frequent Forms (Required) Property Tax Assessments Vacancy / Occupancy Affidavit Prior Year Current Year to Date Actual/ Proforma Photos, Deal Details, Listing for Sale, etc.

34 Most Frequent Forms (Required) Property Tax Assessments Letter Properties Old vs. New Policies Appraisal Reports Owners / Lenders vs. Property Tax Informal Formal Discovery in Court Proceedings

35 Property Tax Appeal Assessments Support Responsive actions to Assessors questions in a narrow time frame.

36 Property Tax Appeals Assessments Under Valuation Complaints Risk Cannot Plan/Anticipate

37 Property Tax Assessments Questions?

38 Property Tax 2012 Revaluation Assessments Assessor - New People Who they are, where they came from, anticipated changes process and timelines Joseph Berrios, Assessor Robert Kruse, Chief Deputy Assessor: (312) Thomas Jaconetty, Deputy Assessor - Valuation: (312)

39 Property Tax 2012 Revaluation Assessments Board of Review - New People Who they are, where they came from, stated preferences Commissioner Michael Cabonargi Chief Deputy Commissioner i Aaron Bilton (312) Commissioner Dan Patlak Chief Deputy Commissioner Jen Jochum (312) Commissioner Larry Rogers, Jr. Chief Deputy Commissioner John Nyhan (312)

40 Property Tax 2012 Revaluation Assessments Changes in Processes Letter Properties Discussion on CBD Revaluation Cycle What Has Happened in Closed Townships When the CBD Notices Will Be Issued

41 Property Tax 2012 Revaluation Assessments Feedback Stories on Negotiations and Appeals to Date Online Access to Release Dates Board of Review Targeted Completion Dates

42 Property Tax Assessments Questions?