Chicago Real Estate Tax

Chicago real estate tax is ascertained on the basis of two key factors. The first factor takes into account the total amount of property in a tax code on which the tax is to be levied. To make matters simpler, the total number of taxpayers paying tax bills is to be considered here. The other factor is the quantity of money that is needed by the taxing authorities. The taxing body of Chicago assesses its financial requirement and then requests the taxpayers to pay the due amount. This request is called tax levy.

The percentage of tax to be paid or the property tax rate in Chicago is calculated by dividing the amount of tax levy by the assessment base. The tax code mentioned above takes into its purview a number of blocks taken together or a specific denomination of physical distance. The rates of property tax in Chicago for areas within a particular tax code are the same.

With renovation on property, the assessed value of property also undergoes a change. The person may have to pay a tax bill of an increased amount. Any alterations in zoning also alter the payable tax rates. Property tax of Chicago has to be paid both by tenants and owners directly or indirectly. The valuations of property are done by the Cook County Assessor’s Office. The following are the steps of a complete tax cycle:

• Assessment placing of a property
• Levying of tax on property
• The Illinois Department of Revenue determines State Equalization Factor
• Mailing out of bills and collecting of tax

Chicago real estate tax is payable in two installments. The first installment needs to be paid within the 1st of March. If property tax Chicago is not paid, huge penalties can be imposed. The property may also be confiscated. All taxes must be paid positively within the due date of the second installment.