How much are taxes on a New Construction home?
If you are purchasing a new construction home it may be difficult to estimate your tax bill. The first bill you receive may be for more or less than 12 months depending on when your certificate of occupancy was issued by the building department. Because assessments and tax rates change yearly, you should expect your tax bill to change yearly. A ballpark estimate for a full 12 month tax bill on a newly constructed home is approximately 3% – 3¼% of your sale price. Historically, taxes increase annually in our area. Please budget accordingly and contact our office with any questions or concerns.
I think my taxes are too high. Are they?
Two separate factors make up your tax bill: the assessment and the rate. The Assessor’s Office is responsible for assessing every property in the township at as close to one third of market value as possible. This will assure that each taxpayer will bear their fair share of the tax burden. The tax rate, on the other hand, is determined by the voters, the municipalities, school boards and other taxing bodies in the area. If you are concerned with the rate you are paying, please contact your taxing bodies. If you feel your assessment is unfair please call our office and request information on how we determined the value for your property.
Why are taxes so high?
There are a number of factors that combine to ultimately influence tax bills:
- Lack of Commercial Tax Base – The limited amount of Commercial and Industrial property in the area providing tax revenue causes more of the burden to shift to the homeowners
- Tax Abatements Granted to Businesses – The already low Commercial and Industrial tax base is being abated for some new businesses to encourage them to come to the area and for some existing businesses to encourage them to stay. This is partially due to the state income tax rates and policies affecting businesses and discouraging operations in Illinois. Again, fewer tax dollars from businesses means more of the burden lies with homeowners.
- Lack of New Residential Construction – In the years where our area experienced growth, much of the increased budgetary needs of our local taxing bodies was met by the increased tax dollars being provided by new tax revenue from new homes being built. The construction of new residential homes in our area has slowed. This again shifts the increased tax burden to the existing homeowners.
- Devaluation of High-End Property and Vacant Land – When the economy was flourishing, high dollar homes and vacant land shared a significant portion of the tax burden. However, the housing market crash hit these types of properties extremely hard, more so than your typical single-family homes.
- Increased Levies from Some Taxing Bodies – A higher tax burden overall is generally the result of the local taxing bodies requiring more money to operate year over year. If the total pool of tax dollars levied for increases, tax bills as a whole go up.
- State Budget Shortfalls – One of the reasons that local taxing bodies may have to increase their levies is due to expected contributions from the State of Illinois coming up short. If a taxing body is counting on money coming from the State, and it is not delivered, then those dollars need to be made up for, generally in the form of an increased levy.
- Inflation – Simply put, the cost of everything goes up over time. Local taxing bodies are not exempt from this. Operating costs for those taxing bodies, whether for utilities, supplies, or any number of other expenses, are all subject to inflationary increases. These increases are then accounted for in the taxing bodies’ levies.
My appraisal came in lower than what you have my home valued at. Can you change my assessment to match my appraised value?
We will certainly look at any appraisal brought to us. However, most appraisals are done using a valuation system different from the one we use. An appraised value can only be considered if the comparables and methods used by the appraiser follow the same guidelines of valuation set forth by the Illinois Property Tax Code.
I could never sell it for this much. Is my home over-valued?
The value we assign to a home is based upon a study of sales of comparable homes occurring over the prior 3 years (For 2017, we looked at 2014, 2015 and 2016 sales). These sales must also all be valid, non-foreclosure situations. What homes are selling for in the current year have no effect on the market value assigned for tax purposes.
But homes in my neighborhood aren’t selling! Current listings do not have an effect on the market value assigned for tax purposes. The only information used to determine value is the valid sales completed in the prior 3 years. A current listing do not factor into the market values assigned for tax purposes, regardless of how long it has been on the market without selling.
Why do similar houses in different neighborhoods have different assessments?
These houses may be valued differently because their actual market values may vary. Location plays an important part in establishing market value. General location, distance from schools, distance from commercial facilities, quality of surrounding properties and neighborhood amenities are examples of factors that could cause a purchaser to pay more for a home in a specific neighborhood than in another.
Can I protest my tax bill after I received it?
Once you receive your bill, it is too late to appeal for that assessment year. If your assessed value is changed by the township assessor, it will be published in the local newspaper in August. The publication begins the appeal season. Your first step is to contact our office. If we feel we are unable to adjust your assessment, you may file an appeal with the Board of Review. The deadline to do so is 30 days after the newspaper’s publication of the assessment values. Appeal forms can be obtained either at our office or online at http://www.willcountysoa.com/board-of-review/assessments-appeals-process.aspx.
Click here for more information on important dates and Assessment Notices.
Can I examine the Assessor’s records to be sure they have the correct information on my house?
Yes. Property Record Cards are available online through the property search. Alternatively, we would be happy to mail or email you a copy, FREE of charge.
Have a question that you can’t find an answer to?
We are happy to answer your questions. Give us a call at (815)436-5110 or email us at email@example.com. We are also available to speak to groups.