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Understanding The Property Tax Cycle
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Understanding The Property Tax Cycle

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  • 1. Frank Miles Madison County Treasurer Understanding the Real Estate Property Tax Cycle
  • 2. Duties and Responsibilities of the Madison County Treasurer  The County Treasurer serves the dual function of Treasurer and Collector of funds.  The Treasurer’s office is responsible for the preparation and mailing of 130,000 tax bills annually.  The Treasurer collects tax revenues on behalf of taxing districts and then disburses the monies collected to over 200 taxing districts in Madison County.  The Treasurer is responsible for receiving and investing the tax revenues and other funds of the County.  The Treasurer’s office maintains records of all financial accounts for the County.
  • 3. Tasks in the Tax Cycle Process  The Treasurer is not responsible for assessing property values, notifying taxpayers of assessment changes, setting the tax rates, approving local taxing districts yearly budgets, determining the township and state multiplier, or making decisions in the tax appeal process.  These duties are the tasks of taxing districts within our county, your Township Assessor, the Chief County Assessor, the County Clerk, the Illinois Department of Revenue and the Madison County Board of Review.
  • 4. How is your Property Assessed? • To determine your assessed value, your local Township Assessor, or the Chief County Assessor, will establish the fair market value of your property. • The equalized assessed value of the property is 1/3 (33⅓%) of the property’s fair market value. • Your Assessor will notify you of any change to your assessment. • The fair market value of your house is based on recent sales of properties with similar characteristics (age, square footage, type of construction, etc.) in your neighborhood.
  • 5. Will You Be Notified of Assessment Changes?  Yes, any change in your Real Estate assessment must be published in a newspaper of general circulation every year from June through August 9.  Every four (4) years your Township Assessor or the Chief County Assessor will do a Quadrennial reassessment of all property in your township. The complete list of reassessed property will then be published and individual taxpayers will be notified of any change by mail.
  • 6. Is Your Assessment Fair?  There are two (2) criteria used to determine if your assessment is fair. 1. Compare the fair market value of your property with recent sales of similar properties in your neighborhood. 2. Compare the assessed value of your property with similar properties in your neighborhood to determine uniformity of assessment.
  • 7. What To Do If You Believe Your Bill or Assessment Is Not Fair or Incorrect?  Informal Appeal • You may contact your township or multi-township assessor or chief assessment officer if you have a complaint. Calling an erroneous assessment to the assessor’s attention early in the year may result in a correction without using the formal appeal process. If the assessor still has the assessment books for that year, he or she can correct any erroneous assessment.  Formal Appeal • A formal appeal can be in writing to Madison County Board of Review. Assessment appeals are to be filed with the Madison County Board of Review no later than September 10 of the current year. • If the taxpayer is dissatisfied by the Board of Review’s decision they may file a tax objection in the Circuit Court or file an appeal with the State of Illinois Property Tax Appeal Board.
  • 8. Steps in Appealing an Assessment:  Obtain a property record card with the assessed valuation of the property.  Determine the fair market value for the property.  Determine the prevailing assessment level for your neighborhood.  File a written complaint on Form PTAX-230, Non-farm Assessment Complaint, with the County Board of Review.
  • 9. What Can I Do If I Disagree With The Decision of the Madison County Board of Review?  Once you have filed a formal complaint with the Madison County Board of Review, the board will make a determination based on the facts and evidence presented by the property owner.  There are two options available if you disagree with the Madison County Board of Review’s decision. 1. The decision may be appealed (in writing) to the State of Illinois Property Tax Appeal Board. The board will make a decision based upon written evidence submitted by you and the Board of Review. Taxes MUST be paid pending the outcome of the appeal. To obtain more information and forms for a PTAB appeal contact the Property Tax Appeal Board at (217) 782-6076 or visit www.state.il.us/agency/ptab 2. The County Board of Review’s decision may be appealed directly to the Circuit Court by filing a tax objection. Filing a tax objection requires a $109.00 non-refundable filing fee and all taxes for the property MUST be paid in full. Once the objection has been filed it will be reviewed by the court and a decision will be entered by a judge.
  • 10. Are You Receiving the Following Deductions That May Apply to You? Type of Deduction Qualifications Assessment When must you Type of Deduction Reduction Amount Renew? General Homestead 1. Owner Occupied Up to $6,000.00 Not required after General Homestead Exemption initial application Exemption Senior Citizens 1. Owner Occupied $4000.00 Annually Senior Citizens Homestead 2. 65 or older by Homestead Exemption December 31, 2009 Exemption Senior Citizens 1. Owner Occupied Assessment is frozen Annually Senior Citizens Property Assessment 2. 65 or older by at its value in the year Property Assessment Freeze December 31, 2009 prior to the initial Freeze 3. Annual household application income less than $55,000.00 Disabled Persons’ Qualifying property $2000.00 Annually Disabled Persons’ Homestead owned by a disabled Homestead Exemption 35 ILCS person Exemption 35 ILCS 200/15-168 200/15-168 Disabled Veterans Veteran with a service 50 % - 74 % Annually Disabled Veterans Standard Homestead connected disability Disability $2,500.00 Standard Homestead Exemption 35 ILCS 50%-74% Disability Exemption 35 ILCS 200/15-165 75% Disability 75% Disability 200/15-165 $5,000.00
  • 11. When Will You Receive Your Tax Bill?  Once property assessments are finalized and tax rates are determined, the Treasurer’s Office generates and mails out the Real Estate Tax Bills between early May and early June.  The four (4) payment plan passed by the County Board in 2009 will continue for this tax year and allows taxpayers to make four (4) equal payments. The tentative due dates are:  July 7, 2010  September 7, 2010  October 7, 2010  December 7, 2010
  • 12. How Do You Pay Your Taxes?  The Treasurer’s Office offers multiple payment options to choose from:  In the office  Credit card  Immediate withdrawal from a checking or savings account.  Scheduled withdrawal from a checking or savings account.  At one of over 115 participating local bank branches.  Monthly Payment Plan  Pay in 1 full installment, 2 equal installments, or 4 equal installments.
  • 13. MONTHLY PAYMENT PLAN PROGRAM What is the “Monthly Payment Plan?”  The Madison County Treasurer’s Office has a program that allows an extended period of time to pay real estate taxes to help relieve financial strain to taxpayers.  The “Monthly Payment Plan” gives taxpayers the opportunity to make payments on their yearly real estate taxes on a monthly basis.
  • 14. MONTHLY PAYMENT PLAN PROGRAM How does it work?  Payments are made monthly beginning in December and ending in November each year. The taxes are estimated based on the previous year’s bill.  Monthly payments are then calculated for a 12 month period.  This figure will change if the taxpayer signs up after the first payment date of December. For example, if you sign up in November to have your first payment due in December, your payment would be based on a 12 month period.  If you sign up in February to have your first payment due in March, your payments will be based on a 9 month period. This would correspondingly increase the amount of the monthly payment.
  • 15. MONTHLY PAYMENT PLAN PROGRAM Who is eligible to participate in the Monthly Payment Plan? Anyone can sign up for the payment plan provided they have no delinquent taxes. When is the sign up period ? The enrollment period is from November of the prior year through April 30 each year. How to make payments? After you sign up, you will be mailed a letter confirming your participation. If you choose to pay by check or money order, you will receive payment coupons and envelopes to use when mailing your payments. You may also have your monthly payment directly withdrawn from your checking or savings account. If you enroll in the automatic withdrawal program, a letter with the scheduled dates and amounts will be sent.
  • 16. State Property Tax Relief Programs  Illinois has several property tax relief programs. These programs include: 1. Illinois “Circuit Breaker” tax relief program that provides relief to the elderly and disabled based on income level. 2. Illinois “Income Tax Credit” allows all homeowners, regardless of income level, a credit equal to 5% of the taxpayer’s residential property tax bill 3. The “Senior Citizen Tax Deferral” Program that provides tax relief for qualified senior citizens by deferring all or part of their property taxes and special assessment payments on their principal residence. The deferral is a loan from the State of Illinois against the property’s market value. The State of Illinois pays the taxes, then charges a six percent simple interest rate on the deferred amount and a lien is filed on the property.
  • 17. How Are Tax Dollars Distributed?  Once property taxes are collected – the Treasurer’s Office distributes all monies received to over 200 Taxing Districts within Madison County.  Distributions to taxing districts are based on each districts approved yearly budget.
  • 18. How your Tax dollars are Spent!  Once property taxes are collected – the Treasurer’s Office distributes all monies received to over 200 Taxing Districts within Madison County.  Distributions to taxing districts are based on each districts approved yearly budget.  Taxing Districts in Madison County use property taxes to support their annual operating budgets.  Tax dollars help to provide fire and police protection, repair roads, install street lights, support local libraries and provide other necessary services for residents of cities, villages and townships throughout Madison County.  In Madison County the largest share of your property taxes goes to school districts for educational purposes.
  • 19. Where Can You Get Additional Information?  Property Assessment Appeals:  Local Township Assessor, County Assessor, or www.co.madison.il.us/CCAO/CCAO.shtml  Property Tax Objection:  Madison County Circuit Clerk  155 N Main St, Edwardsville, IL  (618) 296-4464  www.co.madison.il.us/CircuitCourt/CircuitCourt. shtml
  • 20. FRANK MILES MADISON COUNTY TREASURER Treasurer’s Help Desk (618)692-6260 www.madcotreasurer.org