1. Real Estate
Tax Appeals
Schoenber g Finkel
Newman & Rosenber g, LLC

2. Home Sweet Home --

3. As a buyer sees it --

4. As a lender sees it --

5. As an appraiser sees it
--

6. As the Assessor Sees it --

7. TAX =
ASSESSED VALUE
X
EQUALIZATION
FACTOR
X
TAX RATE

8. Equalization Factor
 Also called the
“Multiplier”
 makes actual level of
assessment 33%
 based on sales ratio
studies

9. Transfer Tax Declaration
Illinois Department of Revenue (IDOR)
compares assessments to actual sales
prices
e.g. 333,333 assessed value
÷ $1,000,000 sale
= 33% assessment level
SO MULTIPLIER = 1

10. If level of assessment too low,
(less than 33%)
then multiplier > 1
If level of assessment too high,
(more than 33%)
then multiplier < 1
If level of assessment just right ,
(equals 33%)
then multiplier = 1

11. Tax Rate =
tax levy
÷
Total Assessed Value of all
property
in tax district

12. If you reduce your assessment,
Don’t brag !
the tax burden if shifted to everyone
else . . .

13. PTELL –
5% CAP ON TAX RATE
INCREASES
Property
Tax
Extension
Limitation
law

14. Assessed Value =
33% of market value
Unless . . .
you live in
Cook County

15. Cook County is
Special !
Commercial property
assessed value =
25% of market value
Residential / vacant property
assessed value =
10% of market value

16. Illinois Constitution
Article IX –
highest property
classification
Cannot exceed 2-1∕2 times
lowest classification
(e.g. 10% x 2.5 = 25%)

17. Exemptions --
 Homeowners
 Senior Citizens
 Senior Freeze
 Home Improvement
 Long-time homeowner
 Disabled person
 Disabled Veteran
 Returning Veteran

18. Lack of Uniformity
Illinois Constitution Article
IX
-- Right to
Uniformity of
Assessment

19. Assessment Equity
Comparison Table
MV
of
Area Improvemen building Distance
Address Age Class (Sq. Ft.) t AV (Sq. Ft.) (miles)
09-21-404-030 1334 Lundergan Avenue 47 2-34 1,667 38,965 $146 1.17
09-22-111-004 1433 Good Avenue 47 2-34 1,585 37,668 $149 1.10
09-27-210-056 1701 Marvin Parkway 48 2-34 1,598 38,973 $152 0.36
09-27-211-017 807 Wilkinson Parkway 52 2-34 1,580 38,267 $153 0.02
09-26-116-040 640 N Greenwood Avenue 43 2-34 1,438 35,407 $154 0.65
09-27-211-016 809 Wilkinson Parkway 47 2-34 1,596 39,950 $156 0.02
Average $152
Subject
Property
09-27-210-xxx Wilkinson Parkway 45 2-34 1,428 39,451 $173

20. Sample Calculations --
Sq. Ft. of Building: 1,428
Average Improvement
Market Value of Comparables: x $ 152 per Sq. Ft.
Correct Improvement
Market Value: $ 217,056
– Rate of Assessment: x 16 %
Correct Improvement
– Assessment: 34,729
Land Assessment: + 9,621
Correct Total Assessment: 44,350

21. Valuation
 Cost Approach
 Income Capitalization
Approach
 Sales Comparison
Approach

22. Income Approach
Market Value =
Net Income
÷
Capitalization Rate

23. Sample Capitalization
Analysis
$118,236 Potential Gross Income (PGI)
- 11,824 Vacancy Factor (10% of PGI)
106,412 Effective Gross Income (EGI)
- 42,648 Average Expenses (40% of EGI)
63,764 Net Income
÷ .1368 9% Capitalization Rate plus tax load **
$466,111 Market Value
x 22%
102,544 Assessed Value
** tax load = (level of assessment)(tax rate)(multiplier)

24. Sales comparison
o Proximity / Location
o Style of Construction
o Size (Above Ground Living Area)
o Age
o Land Area
o Features
o Fireplaces
o Garage Spaces
o Pool
o Deck or Patio, etc.

25. Appraisers
 SRA (certified residential appraiser)
 SRPA (more advanced appraiser)
 MAI (member of appraisal institute /
highest demarcation)
 Appraisers are capable of adjusting for
differences between subject property
and
comparable properties

26. research tools:
 Government websites
 Assessor’s office
 Multiple Listing Service (MLS)
 Private websites (e.g. Zillow)

27. The Appeal Process
 Assessor
 Board of Review
(aka Supervisor of
Assessments)
 Property Tax Appeal Board
 Circuit Court

28. Taxpayers
Beware !
• Board of Review appeals are generally
due within 30 days of notice of
reassessment
• By the time you receive your tax bill
it is too late !

29. Assessor
Qualifications
Frankfort Township
Assessor:
Joseph Kral, C.I.A.O.

30. CIAO !
C.I.A.O. means
Certified Illinois Assessment
Officer