Law Offices of Gary H. Smith, P.C.

1) What is an Assessed Value?

Assessed Value is that portion of the determined value of a property that is subject to taxation. In Cook County, Illinois, the percentage of a property value that is subject to assessment valuation varies according to the property's use. Cook County properties are assessed at the following percentages of determined value:

Class 2 (Residential-6 units of less; small store front/apt combined) 16%

Class 3 (Apts over 6 units) 24% (To be reduced in the next 3 years to as low as 20% by 2008.)

Class 4 (not for profit) 30%

Class 5-Commercial 38%

Class 5-Industrial 36%

Class 6 thru Class 9 Incentive, as low as 16%

Class L (Landmark) Incentive, as low as 16%

2) Why the emphasis on "Determined Value".

According to assessment theory, "fair market value" of the property is determined, and then the statutory level of assessment is applied to determine the Assessed Value (the "De Jure" level of assessment). However, for all non-residential classes, there is great debate as to the actual ("De Facto") level of assessments applied in Cook County. The "De Facto" levels are estimated to be as much as 1/3 lower than the "De Jure" requirements. The actual fair market value of residential properties in Cook County is estimated at only 60-65% of actual value; and the resulting level of assessment is closer to 10%, not 16% (De Facto).

3) How does my Assessed Value affect my taxes?

If you lower your assessment, you lower your taxes.

(Link to application of effect of Expanded Alternative Homestead Exemption-EAHE)

Taxes without Expanded AlternativeHomestead Exemption are calculated as follows:

Assessed Valuation

x Multiplier

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Equalized Assessed Valuation (EAV)

Exemptions

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EAV after exemptions

x Local tax rate

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4) When am I reassessed, and when can I appeal?

Cook County is divided into three assessment districts. [Link underlined text to assessment chart] Each property in the county is reassessed every three years. The "proposed assessed valuation" for the reassessment year is expected to apply for the entire three-year reassessment cycle.

Appeals can be made every year, but appealing in the reassessment year maximizes the potential for savings. Each year's circumstances may justify yearly reductions, which would result in tax savings for that year.

5) What principles factor in to this process?

Appeals are based on the facts of the individual property. A thorough review of property data is always necessary before considering to appeal. General considerations are:

a)uniformity with similar properties;

b)current market value of the property and actual level of assessment applied to such property;

c)income, if any, generated by the property and its expenses;

d)use of the property;

e)recent purchases of/in a property;

f)other specific property characteristics;

6) Don't the tax caps limit my taxes?

It is a common misconception that property tax caps (EAHE is an exemption, not technically a cap) limit the amount of property tax increases to the property owner. While some taxing districts are limited in the amount of increases they can impose because of tax caps, the numerous tax caps exceptions, coupled with assessment increases, mean potentially unlimited tax increases to a property owner.


Taxes are based on the amount of dollars the taxing district requires. Each taxing district is comprised of a unique combination of numerous taxing bodies. In Cook County alone, at any one time over 400 of the 800 plus taxing bodies are exempt from the tax cap limitations. In and outside of Cook County, home rule taxing districts are exempt from the tax cap limitations. After adding in all of the additional exceptions for various levies and bond issues, tax caps cannot stop tax increases.

The engine driving the level of tax is not the levy or the cap, but the level of assessment on the properties. The lower the assessment, the lower the tax. Thus, the best way to keep your property taxes in check is still to fight to keep your assessment as low as possible.

7) Why should I hire an attorney to appeal my taxes?

Taxpayers and attorneys are the only people allowed to file appeals at every forum. A non-attorney representative may file only at the assessor level, and is prohibited from representing taxpayers at any subsequent appeal forum.

At each step in the appeal process, different property research and varying criteria are used in argumentation. Failure to utilize the proper materials or to file on a timely basis may deprive the taxpayer of his/her right to object and appeal.

The key to a successful appeal is the internal analysis of information and the proper filing at every jurisdiction. Attorneys like Gary Smith have the ability to analyze property characteristics, tax records and assessed values, understanding both their reliance upon and influence on one another.

Attorneys have the exclusive right to represent other appellants at all possible levels. At each step, Gary Smith will decide how to move forward. The strategy is in the analysis, and this requires a competent property tax attorney.

Gary Smith's team of property researchers ensure that clients have the best chance to obtain a reduction. The vast majority of the cases handled by Smith have received reductions, and he firmly believes that if a client is entitled to a reduction, he can get it for them. Lastly, Smith believes in fairness, and remains committed to lowering assessments so that property owners pay only their fair share.

8) Why hire the Law Offices of Gary H. Smith?

Gary H. Smith has been an attorney in the Chicago area for over 20 years, and has over 10 years extensive experience representing all types of property taxpayers in Cook County in their property tax appeals. The firm is proud to provide the same competent representation to the smaller and mid-size properties as was long provided the largest properties.

Gary H. Smith has served on numerous Assessor forums. His valuable input helped shape the Assessor's, current proposals for revising the Cook County ordinance regarding Assessment levels, and his long asserted arguments on "De Jure" assessment application levels in Cook County were recently upheld in several PTAB cases. He is currently (2000-2001) the Chairperson of the Chicago Bar Association Real Estate Taxation Committee. He has testified before the State Legislature in real estate taxation matters, and is spoken extensively throughout Cook County on about real estate taxation.

His firm routinely receives substantial assessment reductions for his clients from every appeal forum. The firm carefully reviews all cases, and files to all forums appropriate for the particular property. While the payment of taxes may be inevitable, he believes each taxpayer should only pay their fair share.

The firm handles most commercial, industrial, apartments, and residential assessment matters on a contingent fee basis. This means that there will be no fee unless we successfully obtain an assessment reduction.