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Lack of comprehension may be to blame. Politics is not.
A small but vocal segment of Peoria County residents are upset with the county’s Board of Review.
Why?
Because personal feelings and politics no longer factor into the decision making process. Rather, the current board bases its decisions on the evidence presented by property owners during the appeals process. If the evidence does not support a decrease in assessed value, then a decrease will not be granted. Frustrating? Sure, if you’re not used to being told “no.”
The assessment process is complicated. It’s confusing. Some may say it defies comprehension. No matter how often state mandates are explained, how many times common questions are answered, how transparent the process is, it continues to baffle.
But, whether assessing property value according to state statute is easy to understand or not, the fact remains that the board of review serves only as an appeals board, a board that reviews evidence during an appeal of a matter that has already been decided; in this case, property value.
As in a court of law, compelling evidence alone should be the only influencing factor in overturning a previous decision.
So who decides your property value? The housing market? Township assessors — not the board of review — determine property value based on fair market value. The State of Illinois mandates a three-year average of the market be used to determine the value of property. Thus, your 2008 assessed value is based on sales from 2007, 2006, and 2005. And not just any home sales; homes comparable to your home.
A common question is, “If the market is down, why is my assessment still up?” Your assessment is reflective of the previous three years. The Peoria housing market began to decline in the fourth quarter of 2008, well after the current assessments had been determined.
Over the next three years your assessment will be reflective of, in part, today’s market.
Bear in mind, however, that property assessment is only one of three values factored into the calculation of every tax bill; tax levies and rates being the other two. Assessed value is the amount taxed. Tax levy is the amount a taxing district (i.e. school district, unit of local government, airport authority, etc) collects. The tax rate is the percentage of assessed value paid in taxes.
The Illinois Department of Revenue requires all county’s to have an equalized assessed value of 33.33 percent. This means that the total assessed value of all property in Peoria County must be one-third the total market value of all property in Peoria County. If the market value of all property in the county totaled $300 million, than the assessed value of all property must be $100 million. Should this not be the case, the county would have to apply an equalization factor to all property in the county to bring the total assessed value either up or down to $100 million. Please note: this example excludes farm property.
Once at the EAV of $100 million, tax levies are applied. If the total amount levied by all taxing districts is $8 million, the tax rate is 8 percent. If the board of review relented to this small but vocal segment of upset property owners and all property in Peoria County were assessed at $90 million rather than $100 million, but the levy remained the same — $8 million — then $8 million would still be collected from a $90 million base and the tax rate would increase to 8.9 percent. The end result — you pay the same amount.
The board of review must be presented compelling evidence before reconsidering an assessment correctly determined by the state-mandated three-year average, the same criteria used by the Property Tax Appeals Board which hears appeals contesting a board of review decision. Evidence that may be considered on appeal includes:
• A recent “arm’s-length” sale
• A property appraisal
• Comparison of the property’s assessed value to recent sales information for comparable properties
•Actual construction costs
• Data that demonstrates comparable properties in the neighborhood have lower assessments on a per square foot basis, including any income and expense data
What the board of review members must not consider as evidence is whether the property owner will be upset by their decision, whether they will be publicly criticized, whether they will be reappointed to a future term, or whether they are Republican or Democrat.
Tom O'Neill
Chairman, Peoria County Board
Lack of comprehension may be to blame. Politics is not.
A small but vocal segment of Peoria County residents are upset with the county’s Board of Review.
Why?
Because personal feelings and politics no longer factor into the decision making process. Rather, the current board bases its decisions on the evidence presented by property owners during the appeals process. If the evidence does not support a decrease in assessed value, then a decrease will not be granted. Frustrating? Sure, if you’re not used to being told “no.”
The assessment process is complicated. It’s confusing. Some may say it defies comprehension. No matter how often state mandates are explained, how many times common questions are answered, how transparent the process is, it continues to baffle.
But, whether assessing property value according to state statute is easy to understand or not, the fact remains that the board of review serves only as an appeals board, a board that reviews evidence during an appeal of a matter that has already been decided; in this case, property value.
As in a court of law, compelling evidence alone should be the only influencing factor in overturning a previous decision.
So who decides your property value? The housing market? Township assessors — not the board of review — determine property value based on fair market value. The State of Illinois mandates a three-year average of the market be used to determine the value of property. Thus, your 2008 assessed value is based on sales from 2007, 2006, and 2005. And not just any home sales; homes comparable to your home.
A common question is, “If the market is down, why is my assessment still up?” Your assessment is reflective of the previous three years. The Peoria housing market began to decline in the fourth quarter of 2008, well after the current assessments had been determined.
Over the next three years your assessment will be reflective of, in part, today’s market.
Bear in mind, however, that property assessment is only one of three values factored into the calculation of every tax bill; tax levies and rates being the other two. Assessed value is the amount taxed. Tax levy is the amount a taxing district (i.e. school district, unit of local government, airport authority, etc) collects. The tax rate is the percentage of assessed value paid in taxes.
The Illinois Department of Revenue requires all county’s to have an equalized assessed value of 33.33 percent. This means that the total assessed value of all property in Peoria County must be one-third the total market value of all property in Peoria County. If the market value of all property in the county totaled $300 million, than the assessed value of all property must be $100 million. Should this not be the case, the county would have to apply an equalization factor to all property in the county to bring the total assessed value either up or down to $100 million. Please note: this example excludes farm property.
Once at the EAV of $100 million, tax levies are applied. If the total amount levied by all taxing districts is $8 million, the tax rate is 8 percent. If the board of review relented to this small but vocal segment of upset property owners and all property in Peoria County were assessed at $90 million rather than $100 million, but the levy remained the same — $8 million — then $8 million would still be collected from a $90 million base and the tax rate would increase to 8.9 percent. The end result — you pay the same amount.
The board of review must be presented compelling evidence before reconsidering an assessment correctly determined by the state-mandated three-year average, the same criteria used by the Property Tax Appeals Board which hears appeals contesting a board of review decision. Evidence that may be considered on appeal includes:
• A recent “arm’s-length” sale
• A property appraisal
• Comparison of the property’s assessed value to recent sales information for comparable properties
•Actual construction costs
• Data that demonstrates comparable properties in the neighborhood have lower assessments on a per square foot basis, including any income and expense data
What the board of review members must not consider as evidence is whether the property owner will be upset by their decision, whether they will be publicly criticized, whether they will be reappointed to a future term, or whether they are Republican or Democrat.
Tom O'Neill
Chairman, Peoria County Board
