Blooingdale Township

Important News

House
Property Taxes and the Real Estate Market
By
John T. Dabrowski, Township Assessor
House

Beginning in 2008, our area saw four years of volatile and declining home values. In 2014 and continuing in 2016, the real estate market in northern Illinois began to rebound. Though most sale prices are still well below pre-2008 levels, the market seems to have turned a corner.

 

But despite property values starting to increase over the past few years, we still have a long way to go. Yet even with the lower values, we still see our property taxes increasing. This is a very challenging concept for property owners to accept.

 

2015 was our General Reassessment Year (formerly called the Quadrennial), which occurs every four years as mandated by State law. For 2015, all properties were reviewed and reassessed for market value and uniformity.

 

As the Assessor, I'm responsible for assessing property at one-third of the fair market value. Properties are valued as of January 1st of each year based upon the three prior years' sales. However, the county and the state monitor assessor values so that values throughout the county and state are equitably assessed. The formulas that are used to measure our accuracy and equity always include consideration of actual sales over a three-year period as required by law.

 

Therefore, when our office valued properties as of January 1st, 2016 for the 2016 Assessment Year (which is the assessment that your tax bill payable in 2017 is based upon), we were obligated by law to look back at the sales that took place during 2013, 2014, and 2015.

 

 

We are not permitted to just look at the marketplace that existed on January 1st, 2016.

At the bottom of this page is a chart that illustrates Residential sales activity in Bloomingdale Township for the past eight years, using sales ranges beginning with the lowest single-family Residential property sale and ending with the highest single-family Residential property sale. Back in 2008, we experienced the first real decline in the sales range of homes in decades, a trend that continued through 2013 (though we did see sales prices trending back upward in 2014-2016). Much of this drop in value has taken the form of compulsory sales, property transfers that typically take place in distressed circumstances. In the past, State statute prohibited Assessors from considering these sales for property assessment purposes, but now those circumstances have changed.

 

A recent and historic change in State law is removing that prohibition. Thanks to Public Act 096-1083, the State of Illinois changed the criteria for usable sales. Our office can now consider certain compulsory sales as part of the assessment process, and taxpayers may also submit compulsory sales in their assessment appeals as long as they meet the State's new criteria. This includes using bank-owned sales, sales resulting from foreclosure proceedings, and "short" sales. Note, however, that under the new State law there are a number of specific categories of sales that are still excluded, such as related sales, sales of partial interest, Quit Claim deeds,

 

Sheriff's deeds, transfers of properties not advertised for sale, et al.

 

We believe this was a positive change that benefits the taxpayer, allowing us to develop assessments that more accurately reflect the current troubled market.

 

Integrating this historic change will be an ongoing process. The State Legislature is working to further remove statutory barriers to using compulsory sales in our assessment process, and allow us to make our assessments more closely reflect the current real estate market.

 

Most importantly, regardless of what happens in the marketplace, everyone should keep one fact in mind: even when assessments are reduced this does not automatically mean that property taxes will go down. Please remember that your property taxes are generated by your area's local tax levies which pay for your local services, such as schools, parks, fire protection, and others.

 

We will continue to monitor the sales activity in our Township as we work on the current assessment year, 2017. Based on the market, we will calculate assessments as of Jan. 1, 2017, as measured over a three-year period (2014, 2015, 2016) as required by State law. We plan to close our books for the 2017 assessment year and turn them into the County in mid-June.

 

 


Year Type Sales Range
2009 RESIDENTIAL PROPERTIES ONLY 59,000 to 935,000
2010 RESIDENTIAL PROPERTIES ONLY 33,000 to 1,189,890
2011 RESIDENTIAL PROPERTIES ONLY 25,000 to 880,000
2012 RESIDENTIAL PROPERTIES ONLY 10,000 to 702,500
2013
RESIDENTIAL PROPERTIES ONLY
16,000 to 825,000
2014 RESIDENTIAL PROPERTIES ONLY 22,000 to 907,000
2015
RESIDENTIAL PROPERTIES ONLY
16,000 to 975,000
2016 RESIDENTIAL PROPERTIES ONLY 25,001 to 974,500