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Property Tax Appeals: Protecting Your Tax Base and Preserving Your Levy

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  1. Property Tax Appeals: Protecting Your Tax Base and Preserving Your Levy Ares G. Dalianis Franczek Radelet P.C. agd@franczek.com 312.786.6163

  2. Assessor Board of Review No Refund Refund PTAB C of E TOC Tax Rate Objections Property Tax Appeals Overview

  3. Board of Review • $100,000 change in AV threshold for intervention • Expedited process with truncated hearings • Pre-tax extension relief • Opportunity to fashion multi-year settlements • Possibility to preclude later PTAB filings

  4. Property Tax Appeal Board • $100,000 change in AV threshold for intervention • Filed within 30 days of BoR decision • 60 days to intervene (including resolution) • Full evidentiary hearing • Assessment can be decreased, increased or left unchanged • Taxpayer relief is a refund

  5. Tax Objection Complaints • Assessment challenges filed in Circuit Court • Filed after 2nd installment is paid • No notice to taxing districts • Higher burden of proof • Intervention allowed with leave of court • More formal process than PTAB • Taxpayer relief is a refund

  6. Certificates of Error • Administrative remedy • No notice to taxing districts • Typically relate to exempt properties and homestead exemptions • Can be used to circumvent PTAB and TOC • Significant source of refunds

  7. Undervaluation Appeals • Monitor high value properties (top 25) • Work with qualified appraisers • File at BoR for increase in assessment • Increase overall district EAV • Pursue further appeals to PTAB • Successful appeal yields extra revenue for District

  8. 60,000 50,000 40,000 30,000 20,000 10,000 2005 2006 2007 2008 2009 2010 New Cases Cases Closed Cases Pending PTAB Caseload

  9. Number of Complaints Filed 14,000 12,000 12,943 10,000 8,000 8,141 6,000 6,651 4,000 4,519 4,477 2,000 2007 2008 2009 2010 2011 DuPage County Board of Review

  10. Number of Complaints Filed 26,000 25,490 22,000 18,000 17,268 14,000 16,045 10,000 7,279 9,760 6,000 2007 2008 2009 2010 2011 Lake County Board of Review

  11. What Is Tax Increment Financing (TIF)?

  12. Why Is TIF So Popular? • Almost Complete Control by the Municipality • Increased Tax Revenue • Competition with Neighboring Municipalities • Entrepreneurial Nature of Economic Development

  13. Managing TIFs • Participate in Joint Review Boards • Monitor TIF District Expenditures • Know When a TIF District is About to Expire • One time opportunity to increase levy above CPI • What to do when a TIF District is about to expire • Contact your tax extension official • Calculate amount of recovered TIF value • Prepare to increase levy to capture recovered TIF value • Use of TIF Districts Began Increasing in the 1990’s • These TIF Districts May End Soon (23 Years)

  14. Property Tax Exemptions • Notice where exemption will reduce AV by $100,000 or more • Must monitor exemption requests • Especially true for hospitals, not-for-profits, and healthcare-related properties • Where appropriate, ask BoR to revoke exempt status

  15. Property Tax Exemptions • Charitable Exemptions for Hospitals • Provena Covenant Medical Center v. Dept. of Revenue • How much free care constitutes charity? • Decisions pending at the Dept. of Revenue • Caution Warranted • An exempt property returning to the tax rolls can increase revenue as “new property” under PTELL • But, if exemption reinstated, revenue collected must be refunded with interest

  16. Additional Incentives • Assessment Incentives (Cook County) • Class 6, 7, 8, and 9 • Real estate tax abatements • Business District Tax • Special Service Areas • Others

  17. Tax Rate Objections • Challenge to levy, budget, fund transfers, etc. • Filed on an annual basis • Several recent court decisions

  18. Your Questions Ares G. Dalianis Franczek Radelet P.C. agd@franczek.com 312.786.6163