I was reading the second of the Chicago Tribune’s article on real estate assessments in Cook County and was struck be the following paragraph:
In the end, the property taxes she paid that year represented more than 2 percent of her home’s value. That percentage, known as the effective tax rate, should be relatively the same for all, but Shelton’s was about 60 percent higher than what people living on the Waveland block paid, according to the Tribune’s analysis.[Emphasis addedThis is the part of the article that tells of an overassessment of a low priced home.
The woman, who inherited her home from her parents, said, “…the taxes are killing us.”
Well, well, well.
I want you to divide the value of your home, what you could sell it for, and divide that into your tax bill.
If you don’t know, pick the figure on Zillow.
Zillow says ours is worth almost $300,000.
Our tax bill was almost $10,000.
$10,000 divided by $300,000 is 3.6%.
That is how one calculates one’s “effective tax rate.”
It is a way to compare real estate tax burdens anywhere in the world.
So, if the effective tax rate for someone who is overassessed in Chicago is 2%, how does that make someone in McHenry County with an effective tax rate much higher feel?
Is it fair?
Found another interesting paragraph:
Elsewhere in the country, many jurisdictions are loath to grant appeals, seeking instead to defend their valuations. Some states, such as California, base assessments on actual sales and adjust those values based on market trends, a system that results in far fewer appeals.
That’s the way I thought it was supposed to be in Illinois.