Understanding state's property tax cycle

Steps of Illinois taxing cycle

1. Assessment

All property is appraised so values for property tax purposes can be determined. The chief county assessment officer (county assessor in Cook, township assessor in DuPage) ensures assessment levels are uniform and at the legal assessment level by applying a uniform percentage increase or decrease to all assessments in the jurisdiction, otherwise known as “equalizing” assessments.

By law, most property is assessed at 33 1/3 percent of market value. Cook County is the exception; it has 13 classes of property that are assessed at anywhere from 16 percent (residential) to 33 percent (commercial) of market value. Property is reassessed every four years in DuPage and every three years in Cook.

2. Review of assessment decisions

County boards of review determine whether local assessing officials have calculated assessed values correctly, equalize assessments within the county, assess any property that was omitted, decide if homestead exemptions should be granted and review nonhomestead exemption applications.

Property owners and local taxing districts may appeal what they believe to be unfair assessments to their local county boards of review and, if dissatisfied with that decision, the State Property Tax Appeal Board or circuit court.

3. State equalization

The Illinois Department of Revenue equalizes assessments among counties and issues a state equalization factor for each county to bring the level of assessment to 33 1/3 percent of market value.

4. Levy

Taxing districts determine the amount of revenue they need to raise from property taxes, hold hearings if the levy increase is 5 percent or more and certify levies to the county clerk. Each taxing district must show a separate amount for each fund for which it levies. All levies must be filed with the county clerk by the last Tuesday in December, which is Dec. 31 this year.

5. Extension

The county clerk applies the state equalization factor, calculates the tax rate needed to produce the amount of revenues each taxing district may levy legally, apportions the levy among the properties in a taxing district according to their EAV so tax bills can be computed, abates taxes as directed by taxing districts and prepares books for the county collector. The term “extension” also refers to the amount of taxes actually billed.

6. Collection and distribution

The county collector prepares tax bills, receives payments from property owners, distributes taxes to the local government taxing districts that levied them and administers sales of liens on real estate parcels due to nonpayment of taxes.