Lower Assessments May Not Lead To Lower Taxes

While a downward adjustment will help to align assessed values with the weak housing market, most homeowners in New Trier Township will experience little tax relief from the change. It is easy to assume that an assessment reduction would result in a tax reduction, but the property tax system does not work like the income or sales tax systems.The property tax system is more like a restaurant check you might split with friends getting together for an evening out. The restaurant doesn’t care how you divide the bill as long as it is paid in full. In the property tax system, towns, schools, and other taxing districts basically create the bill to be paid by all the property owners in the district. Taxes (your share of the bill) are then apportioned according to the value of your property. Since the Assessor does not have the power to alter the bill itself, his ability to reduce taxes for all homeowners is limited. In fact, when the value of property falls, the property tax rates usually rise since property owners, as a group, still must pay the full amount of the tax check. However, since commercial and industrial properties will not be eligible for the lower assessments, homeowners’ taxes could be reduced while commercial taxes could increase.

Back to Assessor's page click here or call 847-446-8200 for more information.


 
739 Elm Street, Winnetka, Illinois 60093 P. (847) 446-8202 F. (847) 446-1743
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