FAQ's (Frequently asked questions)
I did not receive an appeal code, can I still appeal using Smart Tax Appeal?
We have a proprietary analysis engine that determines which properties are most likely to win the appeals process and only those properties receive a post card with a Smart Appeal code.
It is possible that your code was lost in the mail, tossed or went to a previous address, if you think that is the case please contact us and we will let you know if that is and
send you the code.
How long does the appeal process take?
First, it is not just one appeal process! The process may require several appeals, including the County Assessor appeal process and the Cook county board of review. Each of these may take 2-3 months. For the County assessor office we file the appeal for you, but with the Cook of board of review you are using our service to collect, enter data for you, and monitor status, but you are legally representing yourself before the board of review.
How much do you charge for your service and when?
Smart Tax Appeal charges nothing up front. If you win the appeal when the a property is first reassessed you will save on taxes for three full years. Smart Tax Appeals charges 25% of the projected first year savings for the services it provides. (Note that the projected savings is approximate as the calculation the county uses to calculate tax owed changes slightly every year)
How are property taxes calculated and related to my assessment?
First every year Cook County (and the many taxing bodies within) estimate what their budgetary needs are and determine a total amount of money in needs to obtain by taxing its property owners.
Cook County then uses a process where they assess each tax paying property. This assessment is based on what Cook County believes the property is worth divided by 10. Essentially (although simplified), the county takes a property's assessment and divides it by the total of all assessments in Cooky County to determine what portion of the total taxes that property owner must pay.
The actual formula the county uses is: Current Propery Assessed Value X Illinois State Equalization Factor X Local Tax Rate - Exemptions.
This process is complicated by the fact that not all properties have the same taxing bodies in the county (think school district, libraries, towns etc.) and that the amount commercial properties pay is different than residentital and other properties. The final complication is that due to resources the county only reassesses properties every three years sometimes causing spikes in taxes as the property assessment jumps. This is why it is important to appeal when a property is reassessed and its assesment appears to be wrong.
Cook County then uses a process where they assess each tax paying property. This assessment is based on what Cook County believes the property is worth divided by 10. Essentially (although simplified), the county takes a property's assessment and divides it by the total of all assessments in Cooky County to determine what portion of the total taxes that property owner must pay.
The actual formula the county uses is: Current Propery Assessed Value X Illinois State Equalization Factor X Local Tax Rate - Exemptions.
This process is complicated by the fact that not all properties have the same taxing bodies in the county (think school district, libraries, towns etc.) and that the amount commercial properties pay is different than residentital and other properties. The final complication is that due to resources the county only reassesses properties every three years sometimes causing spikes in taxes as the property assessment jumps. This is why it is important to appeal when a property is reassessed and its assesment appears to be wrong.
Why are my taxes higher than last year even after the appeal was a success?
Cook county always charges 55% of the last years taxes as the first installment, regardless of appeal success. SO your total payment for the year may still be less than the year before and your second installment will much smaller than the first.
If this is the case enjoy the savings!
However, in some cases it is possible win the appeal and reduce your assessment yet still pay more in taxes than the previous year.
The good news is you will be paying less in taxes than you would have without the win. Why? Because the total amount of taxes paid in Cook county rises every year (please talk to your local politicians about this, not us). This total amount is payed by all Cook County tax payers and the amount each property owner pays is based on their property's assessment in relation to all others. If the total amount rises enough you can win the appeal and still end up paying more than the prior year.
To help you understand, imagine a simplified county of only ten properties where each property had the same assesment. If that county needed $100,000 to operate each owner would be required to pay $10,000 in taxes. Now imagine the next year that county needed $110,000 to operate. If the assessments remained equal everyone would pay $11,000 in this new year. However, if a property was appealed and their property assessment was reducted, instead of paying $11,000 that owner might pay only $10,100. So while you will pay less than you would have without a successful appeal you can still end up paying more than last year. In this case the savings due to the appeal would be $900 per year for 3 years so total savings would be $2,700. Smart tax appeal would only charge 25% of the first years savings or $225. That is a whopping 1100% return on an investment of $225!
However, in some cases it is possible win the appeal and reduce your assessment yet still pay more in taxes than the previous year.
The good news is you will be paying less in taxes than you would have without the win. Why? Because the total amount of taxes paid in Cook county rises every year (please talk to your local politicians about this, not us). This total amount is payed by all Cook County tax payers and the amount each property owner pays is based on their property's assessment in relation to all others. If the total amount rises enough you can win the appeal and still end up paying more than the prior year.
To help you understand, imagine a simplified county of only ten properties where each property had the same assesment. If that county needed $100,000 to operate each owner would be required to pay $10,000 in taxes. Now imagine the next year that county needed $110,000 to operate. If the assessments remained equal everyone would pay $11,000 in this new year. However, if a property was appealed and their property assessment was reducted, instead of paying $11,000 that owner might pay only $10,100. So while you will pay less than you would have without a successful appeal you can still end up paying more than last year. In this case the savings due to the appeal would be $900 per year for 3 years so total savings would be $2,700. Smart tax appeal would only charge 25% of the first years savings or $225. That is a whopping 1100% return on an investment of $225!
If the appeal is won how soon will the reduction in taxes be seen?
The first installment in Cook County always 55% of the last years total tax bill regardless of appeal status.
Typically, the savings will show on the second installment payment. The second installment savings can be significant since it will reflect both savings due to the assessment reduction and possible overpayment of the first installment.
On some occasions, if the appeal process is longer than expected and the savings is not in the second installment the county will issue a refund check directly to the propery owner.
Typically, the savings will show on the second installment payment. The second installment savings can be significant since it will reflect both savings due to the assessment reduction and possible overpayment of the first installment.
On some occasions, if the appeal process is longer than expected and the savings is not in the second installment the county will issue a refund check directly to the propery owner.