Change in assessment laws allows more accurate property values
A new state law permits local governments to use compulsory home sales during the assessment process, a move that will allow assessments to more closely mirror the current real estate market.
Bloomingdale Township Assessor John T. Dabrowski said in a recent bulletin that Public Act 096-1083 permits assessors to consider certain types of compulsory sales as part of the assessment process, including short sales, the sale of bank-owned homes and sales resulting from foreclosure proceedings.
Also, compulsory sales may be submitted by taxpayers in their assessment appeals.
Previously, the assessor had to look at all home sales over a three-year period, which could result in higher assessed home values -- and thus higher property taxes -- even when the current real estate market was distressed.
"We believe this is a positive change that will benefit the taxpayer and lead to assessments that more accurately reflect the current troubled market," he said. "The state legislature is working to further remove statutory barriers to using compulsory sales in our assessment process and allow us to make our assessments more closely reflect the current real estate market."
Dabrowski emphasized a reduction in an assessment does not necessarily mean property taxes will decrease since they are also based on local tax levies required to pay for such services as police and fire protection, and parks and recreation.