The Evanston home where the 1984 coming-of-age comedy “Sixteen
Candles” was filmed sold for $1.135 million on June 28. And although parting
with a home of cinematographic significance may have been difficult, parting
with the home’s enormous property tax burden could have been a big relief.
Evanston is part of Cook County, which has some of the highest property tax
rates in Illinois. And Illinois has the second highest property taxes in the
nation.
Over the past decade, the owners paid over $217,000 in property taxes, according
to documents from the Cook County Clerk’s office. The 2017 property tax bill
alone was more than $23,400, even after receiving a small homeowner exemption.
And while 3022 Payne Street’s property taxes seem inordinate, it’s possible that
a more accurate assessment would have made them even higher. In 2017, the county
taxed the home as if it were worth $913,000, 20 percent below the eventual sales
price.
One house’s sale price and assessment do not themselves prove a
pattern, and the lower assessed value compared with the eventual sale price
could be due in part to an assessment system that incorporates older sales in
arriving at a house’s market value. Nevertheless, state data do show that in
Evanston, higher-value homes often have lower assessment levels than lower-value
homes.
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According to the most recent data from the Illinois
Department of Revenue, Evanston has a price-related differential, or
PRD, of 1.08 for the class of residential properties that includes
small apartment buildings, condominiums and single-family homes. A
PRD higher than 1.03 indicates regressive assessment – in other
words, high value homes are assessed at a lower rate than their low
value counterparts.
If local governments continue to levy higher and
higher property taxes, they should at least distribute the burden of
those taxes accurately and fairly, and not assess lower-value
properties at a higher rate than higher-value homes. Of course,
ever-increasing property taxes can be difficult even for relatively
well-off taxpayers. When owners of high value properties have to
bear a larger share of the property tax burden than they currently
are, they will have an even more compelling reason to join the
Illinois exodus.
Local governments should get their finances in order and provide
property tax cuts all around, while also working to fix a broken
assessment system that too often punishes those who are least able
to pay.
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