Real estate assessments are being hiked by 8% in a lot of townships.
That has to be scaring people who don’t understand the property tax system.
There are two parts to the tax bill:
- the assessment
- the tax rate
On top of that is layered the Property Tax Cap, PTELL to the technocrats.
The Tax Cap puts a limit on how much more money–in the aggregate–that a tax district can get.
This coming year, it 7/10 of 1%.
If the assessments in a township go up 8%, the tax rates will come down by almost that much.
So, unless your assessment is going up more than average, the increase in your tax bill will be about 7/10 of 1%.
That is so little that I predict that House Speaker Mike Madigan will agree to freeze taxes with Governor Bruce Rauner.
After all, Madigan made a much greater concession on behalf of the tax eaters he represents when he agreed to Governor Jim Edgar’s demand for the Real Estate Tax Cap.