Real Estate Tax Bills 101 - Helping to better understand them

* It is believed in good faith that the following content can be found in the December 2009 (Number 393) edition of The Crestwood Adviser and is for general reference and/or research purposes only.  For further information regarding the information listed here, please contact The Village of Crestwood in Crestwood, Illinois. *

Everyone knows that real estate tax bills are sent out twice a year.  But judging by phone calls to the Village Hall, they raise more uncertainties and questions than they answer.

Let's take a look with the hope of gaining a better understanding of this murky subject.

Tax bills you receive in 2009 are for 2008 taxes.  The first installment comes to your home approximately Feb. 1 and is 50-percent of the total amount of the previous year's tax bill.

The second installment, which used to come out on Aug. 1, now arrives sometime in the fall and is the adjusted installment on the 2008 taxes payable in 2009.

The value of the property on which you're taxed is developed by the Cook County assessor's office in conjunction with a state modification factor.

The taxes are based on an equalized assessed valuation (EAV) that they alone determine.  Contrary to popular belief, Crestwood has no official role in this process.

Property is re-assessed every three years during the period known as the tri-annual reassessment.  When this takes place you receive a card in the mail stating, "This is not a bill but a reassessment of your property."

Don't treat this as junk mail!  When you read the statement, "This is not a bill..." because it will definitely impact your future real estate taxes.

Examine it carefully, and if warranted file an objection with the assessor's office.  Since Crestwood does not determine the EAV or the state modification factor, we suggest you go online or contact the respective agencies to learn more about their decisions.

Now, let's go back to the tax bill itself to make sure you've received all the exemptions you're entitled to.  First is a homestead exemption which should be granted to every taxpayer who lives on their property.

Second is the senior citizen exemption for residents 65 or older.  Last is the senior freeze which not only requires being 65 or older but also that one's income qualifies.

That mandates that total household income does not exceed a certain figure determined during that taxing period (currently $50,000 a year).

Let's examine the bill further to find out which agencies receive the tax money and the amount they receive from the bill.

Opposite each entity is the tax levy by each agency, the amount collected and - new this year - the percentage of the tax bill that it represents.  Please note that the tax levy opposite the line indicating the Village of Crestwood is one of the lowest levies of any municipality in Cook County.

In most cases the amount collected by Crestwood is not enough to pick up the garbage at your residence for one year and represents 5-percent or less of your entire tax bill.

This should clear up any misconceptions that Crestwood generates the tax bill and receives all or the majority of the amount you pay.

Total tax bills do vary due to different EAVs, but you can compare them with your neighbor's and see the very small portion that is paid to the Village of Crestwood.

The next time some mis-informed person says, "What are they (Crestwood) doing with our tax rates?" you can correct them by pointing to the actual figures and turn the question around by asking how does the village manage to keep its tax levy low while keeping services high.