Cook County Board of Review
Commissioner Larry R. Rogers, Jr. Commissioner Dan Patlak Commissioner Michael M. Cabonargi
Annual Report
Assessment Year 2014 • Fiscal Year 2015 Table of Contents
Cook County Board of Review Appeals Resulting in Reductions Responsibilities...... 1 (Assessment Years 2003 – 2014)...... 6
Letter from Commissioners PTAB Appeals...... 7 Rogers, Patlak and Cabonargi...... 2 Exempt Properties and the BOR ...... 8 Budget Highlights...... 3 2014 Tax Year Outreach Efforts ...... 9 Employees and Appeals...... 4 Did You Know?...... 10 Operational Highlights...... 5
Offices Cook County
Main Office County Building Board of Review 118 N. Clark St., Room 601 Chicago, IL 60602 Responsibilities Ph: 312/603-5542 The Cook County Board of Review (formerly the Board of Tax Appeals) was created by the 89th General Assembly under statutory changes that Satellite Offices established a three member Board of Commissioners elected from three Bridgeview electoral districts. 10200 S. 76th Ave. The Cook County Board of Review (hereinafter “BOR”) is vested with Room 237 quasi-judicial powers to adjudicate taxpayer complaints or recommend Bridgeview, IL 60455 exempt status of real property, which includes: residential, commercial, Ph: 708/974-6074 industrial, condominium property, and vacant land. Powers granted to the BOR include the following: Markham 16501 Kedzie Ave. 1. Correct factual mistakes; Room 237 2. Review certificates of error; Markham, IL 60426 Ph: 708/232-4258 3. Order the Assessor to revise and correct the assessed value of property; Maywood 4. Recommend property for tax exempt status; and 1500 S. Maybrook Dr. Room 082 5. Defend assessment decisions for properties appealed at Maywood, IL 60153 the Illinois Property Tax Appeal Board (PTAB). Ph: 708/865-5508 The BOR deals only with assessed valuations before equalization, not with the tax rate or the amount of the tax bill. Rolling Meadows 2121 Euclid Ave. Room 237 Why does it matter to Cook County Residents if the Rolling Meadows, IL 60098 tax bills go out on time? When the tax bills are delayed, schools, Ph: 847/818-2067 libraries and other essential district services are forced into budget gaps. To fill those gaps, reserves may be tapped, which Skokie 5600 Old Orchard Rd. means that money is not earning interest, or, money is borrowed, Room 155 and loan costs and interest fees are incurred. The cost to local Skokie, IL 60076 government can be in the millions of dollars. Ph: 847/470-7522
1 Cook County Board of Review 2014 Assessment Year Annual Report Letter from Commissioners
In 2014, we saw home sales in Illinois recover to nearly three years, the BOR will no longer need to retrieve 79 percent of their 2008 levels and to 74 percent levels previous years’ paper appeal files to compare with in the City of Chicago*. As the Real Estate market in current appeals because previous years’ files will be Cook County continues its overall steady recovery, electronic and available at the touch of a button. the BOR continues to play a vital By the same token, office space used part in ensuring fair assessments for by the BOR to store over one-million residential and commercial property older files will eventually be freed up owners alike. for other county priorities.
The 2014 Assessment Session The new system will also provide the proved to be a time of creating and flexibility the BOR needs to assign preparing for a new digital appeal more people to work on a consistently processing system that will put the growing number of State of Illinois
BOR onto the technology forefront. Larry R. Rogers, Jr. Property Tax Appeal Board (PTAB) Top management personnel from each Commissioner cases. A proper defense of the commissioner’s staff, in addition to counties’ assessment at the state our technology specialists, devoted PTAB level means schools, libraries, hundreds of hours working to develop park districts, municipalities and other the Digital Appeals Processing governmental units will only end up System (DAPS) with Cook County refunding property taxes to property vendor Databank and the Bureau of owners who have made a compelling Technology. DAPS is a tool that will case that their assessment is in fact empower the BOR to adjudicate an unfairly high. ever increasing number of appeals while keeping our headcount steady DAPS will premiere in August 2015 with and reducing overtime. This multi-year necessary updates to the system planned project will simplify the overall appeal as we adapt to this new technology. We process for tax payers by allowing are extremely grateful for the help and evidence to be filed on-line, reduce cooperation of President Preckwinkle, costs associated with paper printing the County Board Commissioners, the and file storage, streamline operations Bureau of Technology and the Cook County Purchasing Department for by eliminating the need to physically Michael M. Cabonargi circulate hundreds of thousands of Commissioner their assistance in getting this first of paper files analysts review each year, its kind project for Cook County off and increase overall efficiency. the ground.
Until four years ago, the BOR had a paper driven Sincerely, system. In 2011, the BOR began its entry into the 21st century by accepting its first on-line appeals. Use of Commissioner Larry R. Rogers, Jr. on-line appeals was quickly embraced by the public Commissioner Dan Patlak and grew rapidly. This year again eighty-six percent Commissioner Michael Cabonargi of all appeals were filed on-line. Within the next *Data according to Illinois Association of Realtors www.cookcountyboardofreview.com 2 Budget Highlights
BOR Actual Expenditure
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0 EXPENDITURE (IN MILLIONS) BOR ACTUAL 0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FISCAL YEAR ACTUAL EXPENDITURE ($ MILLION)
2004 7.8
2005 7.6
2006 7.4 The BOR is an essential part of the 2007 6.8 property tax system. Recognizing its importance within this cycle, the BOR 2008 7.3 continually looks for ways to streamline 2009 7.5 its processes and improve efficiency.
2010 8.1
2011 7.0 Note: The 2014 assessment year corresponds to the 2012 7.8 later part of the 2014 fiscal year and the beginning portion of the 2015 fiscal year. 2013 8.3* The BOR fiscal year runs from Dec 01 thru Nov 30. 2014 8.3
2015 N/A *Previously stated as $7.7 M which did not reflect total expenditure for 2013. We regret the error.
3 www.cookcountyboardofreview.com Employees and Appeals
Employees / Total PINS Filed
450
400
350
300
250
200
150
100
50
0
employees (in hundreds) / employees PIN s Filed (in thousands) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
employees Assessment EMPLOYEES PINs APPEALED Year (IN THOUSANDS) total pins filed
2003 130 220
2004 129 182
2005 130 130 Process re-engineering efforts and 2006 122 247 technology have helped to keep headcount steady. In the 2014/2015 2007 126 277 budget year, the BOR successfully
2008 123 295 reviewed and adjudicated all 319,500 appeals for assessment year 2014. 2009 122 439
2010 118 386
2011 119 342
2012 124 423
2013 125 403
2014 125 319
Cook County Board of Review 4 Operational Highlights
Total Pins Filed Assessment Years 2003–2014*
400 400
350 350
300 300
250 250
200 200
150 150
100 100
PINs F ILED (IN THOUSANDS) erage Av 50 50
0 0 2003–2005 177.33 2006-2008 273.00 2009-2011
389.00 2012-2014 381.66 ASSESSMENT PINSfILED REASSESSMENT YEAR INTHOUSANDS TRIENNIAL 2003 220 CITY 2004 182 North suburban 2005 130 South suburban
2006 247 CITY 2007 277 North suburban The BOR adjudicated 319,500 2008 295 South suburban property appeals for tax year 2014.
2009 439 CITY 2010 386 North suburban 2011 342 South suburban *The Cook County Assessor’s Office cycles reassessments between the City 2012 423 CITY of Chicago, and the north and south suburbs. This bar chart reflects the 2013 403 North Suburban triennial cycle starting with year 2003 2014 319 South Suburban to better illustrate year-to-year trends.
5 www.cookcountyboardofreview.com Appeals Resulting in a Reduction Assessment Years 2003–2014*
70.00%
60.00%
50.00%
40.00%
30.00%
20.0%
10.0%
IN A REDUCTION APPEALS (PIN s ) RESULTING v erage 0 a 2003-2005 2006-2008 2009-2011 2012-2014 52.03% 66.5% 68.2% 61.6%
Assessment Appeals Resulting YEAR INAREDUCTION
2003 56.4%
2004 49.1% The BOR reviews all assessment appeals 2005 50.6% presented by property owners. A variety of evidence is considered by the BOR when 2006 61.1% making its decisions, including evidence 2007 72.6% presented by the taxpayer. The number of reductions fluctuates year to year based on 2008 65.8% numerous factors. The responsibility of the BOR 2009 75.6% is to ensure a fair assessment. 2010 67.3% 2011 61.7% * The Cook County Assessor’s Office cycles reassessments between the City 2012 64.4% of Chicago, and the north and south suburbs. This bar chart reflects the 2013 61.8% triennial cycle starting with year 2003 2014 58.6% to better illustrate year-to-year trends.
Cook County Board of Review 6 PTAB Appeals
The BOR and Illinois Property Tax Appeal Board (PTAB) share a symbiotic relationship. The mandate of each entity is to provide taxpayers with an unbiased forum for appealing assessments at no cost to the property owner. PTAB is a forum to appeal the BOR’s decision. Once an appeal is filed with PTAB, the BOR assumes the responsibility of defending its earlier decision. PTAB does not have a yearly session, so even when the BOR is closed for current tax year assessment appeals, regarding prior year decisions, it is still actively preparing evidence and appearing at requested hearings before PTAB. If neither party requests an oral hearing, then PTAB makes its decision based solely on the written evidence. The BOR and PTAB have been working diligently developing new efficiencies to reduce PTAB’s significant backlog of cases.
35000
30000
25000
20000
15000
10000 ptab PIN s APPEALED AT OTAL t
5000
0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Assessment PTAB PINs Assessment PTAB PINs Year Appealed Year Appealed 2001 14,593 2008 20,870
2002 16,523 2009 30,887
2003 21,416 2010 25,332
2004 18,338 2011 27,382
2005 17,390 2012 30,592 Note: Data as of 5/2014. PTAB operates on a different 2006 22,089 2013 26,208 schedule than BOR. Majority of 2013 appeals filed have yet 2007 19,807 2014 N/A to be processed.
7 www.cookcountyboardofreview.com Exempt Properties & the BOR
The BOR examines applications from governmental, charitable and religious organizations that believe that they meet the qualifications for property tax exempt status. The requirements for property tax exempt status can vary. The BOR examines each case to determine whether the property is specifically exempt by statute and whether the property owner has met the required burden of proof. The BOR may hold a hearing in cases involving a question of law or an incomplete file. In addition, the BOR may also elect to hold a hearing when a taxing body objects to an application. In either case, petitioners are notified by mail of their hearing date. Following the hearing, a recommendation on exempt status is sent to the Illinois Department of Revenue. While the BOR makes a recommendation, only the State of Illinois can remove property from the property tax roll. In assessment year 2014, the BOR processed 1,017 exempt parcels requesting exempt status.
Exempt PINs Filed*
3500
3000
2500
2000
1500 otal exempt PIN s F ILED otal 1000
500
erage T erage Av 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003-2005 2006-2008 2009-2011 2012-2014 2,647 2,622 1,530 1,391
Total PINS Total PINS Appealed Appealed 2003 3,012 2009 1,946 2004 3,059 2010 1,367 2005 1,869 2011 1,276
2006 2,654 2012 1,246 2007 2,404 2013 1,911 2008 2,807 2014 1,017
*The Cook County Assessor’s Office cycles reassessments between the City of Chicago, and the north and south suburbs. This bar chart reflects the triennial cycle starting with year 2003 to better illustrate year-to-year trends.
Cook County Board of Review 8 2014 Tax Year Outreach Efforts
Through the BOR’s community outreach programs, the BOR brings assessed valuation complaint services to the community. During the 2014 assessment year, our office conducted 158 outreach events and serviced thousands of taxpayers throughout Cook County. The BOR’s outreach programs’ main focuses are to educate and inform taxpayers of the BOR’s services and explain the assessed valuation appeal process. Our outreach programs have proven to be a viable and effective way to provide the community with important information and to provide access to this office. The BOR is fortunate to have the continued support for our respective outreach initiatives from elected officials and community organizations throughout Cook County. The BOR has partnered with several elected officials and community organizations whose support has played an integral role in making the BOR more accessible to taxpayers.
2014 Outreach
Michael Cabonargi
Larry Rogers, Jr.
9 www.cookcountyboardofreview.com did you know? 319,500 86% Board of Review Appeals Filed Filed Online
The BOR is administered by 2014 tax year marks the three Commissioners fourth time who are elected from individual districts. since tax year 1977 that the The chairmanship of the BOR rotates between second installment tax bills have been the three Commissioners every year. mailed out on time.
The BOR is especially well equipped to assist taxpayers because of the multilingual staff and documentation. We are currently able to assist taxpayers in Albanian, French, German, Greek, Hindi, Italian, Spanish, Polish, and Punjabi.
did you know? 1.8 M 5.2 M cook county Parcels of Property Residents in in Cook County Cook County
Essanay Studios located in Uptown was one of the world’s 1st silent film studios. Charlie Chaplin’s career peaked while under contract at this studio in 1915.
Ford Hangar at Lansing Municipal Airport Built in 1926 by Henry Ford to connect his Ford Motor Company manufacturing plants in southland Chicago with his factories in Detroit.
Charles Lindbergh & Amelia Earhart are said to have used Lansing Municipal Airport.
Cook County Board of Review 10 ccao tRIENNIAL assessment cYCLE CCAO Triennial Assessment Cycle
6 5 4 3 2 1 6 5 4 3 2 1 6 5 4 3 2 1 6 5 34 2 1 6 5 7 98 10 11 12 7 8 9 10 11 12 7 8 9 10 11 12 7 8 9 10 11 12 7 8 15 15 15 15 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 18 17 16 PALATINE WHEELING 01 23 02 03 04 22 20 19 20 21 22 24 19 20 21 23 24 19 20 21 23 24 19 20 21 23 24 19 22 22 21 BARRINGTON NORTHFIELD 22 05 28 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 27 NEW TRIER 26 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 0 3 2 1 6 5 4 6 5 4 321 6 5 4 9 10 11 12 7 8 9 10 EVANSTON 7 11 12 7 8 9 10 11 12 7 8 8 9 10 11 12 18 7 8 9 10 11 12 7 15 16 15 18 17 16 15 14 13 18 17 16 15 14 13 13 18 17 13 18 17 SCHAUMBURG 14 14 20 18 17 16 15 14 13 18 ELK GROVE 22 19 16 MAINE 23 24 19 21 23 24 20 22 20 21 22 23 24 19 21 NILES 21 23 24 19 20 09 22 10 HANOVER 06 23 24 19 20 07 08 11 19 20 21 22 25 30 29 28 27 26 25 29 30 29 28 27 26 30 26 25 30 29 28 27 26 25 0 0 30 29 28 27 0 032 30 29 28 27 26 25 0 33 ROGERS PARK 36 0 34 35 32 33 34 35 31 0 36 31 32 36 31 32 33 34 35 36 31 32 33 34 35 31 32 33 34 35 36 31 0 3 6 2 1 6 5 5 4 3 2 1 5 6 JEFFERSON 10 7 8 9 10 11 12 7 8 7 8 9 11 12 9 15 City Tri (2012, 2015, 2018) 0 NORWOOD PARK 16 14 13 18 17 16 16 70 Hyde Park 18 17 15 14 13 18 17 13 20 71 Jefferson 12 19 20 21 23 24 19 14 19 20 21 23 24 22 21 72 Lake 22 0 21 73 Lakeview 25 30 29 28 27 26 25 30 LAKE VIEW 30 29 LEYDEN 26 29 28 28 74 North Chicago 28 27 27 33 75 Rogers Park 34 35 36 31 32 33 33 34 35 36 31 32 33 34 76 South Chicago 31 32 2 NORTH 77 West Chicago 1 6 5 4 3 2 1 6 5 6 5 4 3 4 3 RIVER FOREST 8 11 12 10 North Tri (2013, 2016, 2019) 9 10 7 8 9 7 8 9 10 11 12 OAK PARK WEST 10 Barrington 7 15 17 16 16 Elk Grove 15 13 18 15 18 17 16 14 13 18 17 16 14 17 Evanston PROVISO 16 17 22 18 Hanover 15 20 21 23 24 19 20 21 23 24 19 20 21 20 Leyden 19 22 22 22 Maine CICERO 26 25 30 29 28 27 29 28 27 26 25 BERWYN 27 23 New Trier 30 29 28 SOUTH RIVERSIDE 30 24 Niles 33 34 35 36 31 32 33 34 35 33 34 31 32 25 Northfield 31 32 35 36 3 26 Norwood Park 4 3 2 1 6 5 4 2 4 3 2 1 6 5 29 Palatine 6 5 1 8 9 10 11 35 Schaumburg 7 8 9 10 11 12 7 12 7 8 9 10 11 12 38 Wheeling 16 15 13 15 14 15 17 16 14 13 18 17 13 17 16 14 13 18 South Tri (2014, 2017, 2020) 18 19 20 23 11 Berwyn LYONS 18 20 21 23 24 19 20 24 21 23 24 19 22 21 22 19 12 Bloom 19 20 22 29 26 25 30 13 Bremen 30 27 26 25 30 29 28 27 29 28 27 26 25 LAKE 14 Calumet 30 29 STICKNEY 28 34 35 36 21 32 15 Cicero 33 34 35 36 31 32 33 33 34 35 36 31 32 31 19 Lemont 31 32 4 3 2 1 6 21 Lyons 5 4 3 2 1 6 5 5 5 4 3 2 1 6 27 Oak Park 6 HYDE PARK 10 28 Orland 8 9 10 11 12 7 8 9 11 12 8 9 10 11 12 7 7 8 30 Palos 12 7 11 15 16 15 14 31 Proviso 15 17 16 14 13 18 17 17 16 14 13 18 13 18 32 Rich 14 13 18 17 15 WORTH 26 16 PALOS 24 20 21 25 33 River Forest 23 19 20 23 24 19 19 23 24 21 22 23 24 19 20 34 Riverside 19 20 21 22 23 24 20 21 22 22 25 30 29 28 36 Stickney 25 30 29 28 27 26 27 26 25 30 29 LEMONT 26 25 30 29 28 27 26 37 Thornton 29 30 28 22 27 CALUMET 39 Worth 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 31 32 33 34 35 36 6 6 5 4 3 2 1 6 5 4 3 2 1 5 4 3 2 1 6 5
7 8 9 10 11 12 City Tri (2012, 2015, 2018) 7 8 9 10 11 12 7 8 9 10 11 12 7 8 15 15 15 18 17 North Tri (2013, 2016, 2019) 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 ORLAND 27 BREMEN 28 THORNTON 29 30 19 20 21 23 24 19 20 21 23 24 19 20 21 23 24 South Tri (2014, 2017, 2020) 22 22 22 19 20 29 Area 30 29 28 27 26 25 30 28 27 26 25 30 29 28 27 26 25 30 29 32 Sections 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 Hydroline 6 5 4 3 2 1 6 5 4 3 2 1 6 5 Lake Michigan 7 8 9 10 11 12 7 8 9 10 11 12 7 8 18 17 15 16 15 Interstate Highway 18 17 16 14 13 18 17 14 13 5 RICH BLOOM 32 33 19 20 21 31 23 24 19 20 21 23 24 22 22 19 20
30 29 28 27 26 25 30 29 28 27 26 25 30 29 0 2 4 8 12 36 31 32 33 34 35 36 31 32 Miles 31 32 33 34 35