It Ain't All Big Hair and Cadillacs

Appeals for individual condominiums or "joint appeals" for entire associations are more difficult tha for single family home and less information is publicly available to support the effort. However, for those who do their own research, represent themselves to the extent possible and presistently appeal their taxes, they are more likely to achieve relief from ever escalating property taxes.

Appeals can be made to three different government agencies: The Cook County Assessor's Office, the County Board of Review and the State Property Tax Appeal Board (PTAB). The board of Review oversees Assessor decisions, while the PTAB oversees decisions made by the Board of Review.

Attempts to reduce taxes should ideally start with the Assessor's Office when the triennial reassessment notices are sent out. You cannot file an appeal with PTAB unless you have filed before with the second local county agency - the Board of Review. Successful PTAB decisions render tax refunds. Successful reductions made at the local county level reduce your second installment tax bill.

You may file a condo appeal as an individual or jointly using one or all of the following 4 methods.

1. Analysis of Common Element Ownership: The research required for this kind of appeal is intended to determine if these is an equitable distribution of taxes within the condominium association. If the Assessor's information on the percentage of common element ownership is inaccurate, adjustments will be made which increases some owners' taxes and reduces others. For this reason, getting consensus from the condo association for a "joint appeal" may be difficult. However, an individual appeal that identifies the error will result in changes for the entire building and will be more fair. Reductions last for 3 years at the beginning of the triennial.

2. Analysis of Sales Ratios: For condo properties that have sold within the last three years, tax relief based on Sale(s) Ratio(s) is possible IF the Proposed Assessed Value divided by the Actual Sales Price is greater than 10% then an argument based on Sale(s) Ratio(s) is in order. In successful joint appeals, all condo units in one association can benefit, even those units which were not recent purchases. Reductions last for 3 years at the beginning of the triennial.

3. Temporary Property Conditions: If your property is in serious disrepair and/or has suffered damage from flooding or fire (especially for structural or foundation problems), or, if the property has a unit that is unlivable and has had prolonged vacancy, there may be grounds for an appeal based on property conditions. Attach to your assessment complaint form photos, repair receipts or estimates for repairs needed. A reduction is granted for 1 year only.

4. Lack of Uniformity: This appeal approach is a relatively easy and effective method for single-family homeowners. If an appellant demonstrates that comparable properties or units nearby are being taxed at a lower rate, significant savings are possible. The appeal bodies for condo associations do not encourage this method, but is should be used when the other methods do not help make a strong case. Not that "property characteristics" are not listed on reassessment notices for condo owners. Reductions last for 3 years at the beginning of the triennial.

Information courtesy of Andrea A. Ralia and Associates 676 N. LaSalle, Suite 250 Chicago, IL 60610 312 587 9494