Jul 4, 2024
Darryl Lloyd wasn’t prepared to receive a property tax bill of more than $30,000 this year — a whopping 1,567% hike from last year’s bill of $1,800.
The new bill was based on an assessment valuing Lloyd's modest 1950s home in Chicago Heights at more than $1 million.
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However, Lloyd bought the three-bedroom, one-bathroom house for $115,000 in 2006 and believes its current market value is just over $180,000 — nowhere near seven figures.
"I was literally devastated when I saw that increase," Lloyd told FOX 32 Chicago. "I see 960 square feet. I don't have a second floor. I don't have a basement."
The diesel mechanic and safety inspector was relying on disability benefits after an injury — and wasn’t sure how he would shell out the funds.
"I will have to move in with a relative or something,” he said. “I can’t afford it.”
Over 4,400 homes in Cook County have been incorrectly valued and assessed
Lloyd initially attempted to resolve the issue with the Cook County Tax Assessor's Office, but wasn’t taken seriously.
“I told them that I had a substantial increase, and they were like, ‘everybody's taxes increase,’" he recounted.
However, after Lloyd got in touch with FOX 32 Chicago, it contacted the Assessor's Office and discovered the exorbitant tax bill was indeed an error, as Lloyd had claimed.
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"This property was given an incorrect assessment due to a permit that was unintentionally applied to the property,” a representative from the office stated. “We will process a corrected tax bill for this property in the coming weeks, ensuring that the homeowner will ultimately pay the right amount in property taxes.”
Lloyd isn’t the only homeowner in the area that has been served with an incorrect property tax bill. In fact, FOX 32 cites an analysis that reportedly revealed the Assessor’s Office miscalculated land values for more than 4,400 homes in the south and southwest suburbs, leading to major over-assessments for homes situated on larger plots of land.
"If it happened to me, it probably happened to other people. I'd like to see immediate action,” Lloyd said.
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What to do if you receive an incorrect tax bill for your property
While many U.S. properties have been increasing in value over the years, it’s still possible that homeowners could run into similar situations like Lloyd’s and get served with an incorrect tax bill.
First, it’s important to understand how your municipality calculates your property taxes, so you can prepare for an upcoming bill, or verify the math yourself.
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These taxes are typically calculated using your local tax rate and the current market value of your property — which is estimated by an assessor as property values change. You might find a breakdown of this property tax calculation through your local tax office’s website.
You can also research tax estimates for comparable properties in your area to determine whether your tax bills align.
And don’t forget to check for exemptions. Some states and municipalities may offer tax relief in certain cases, like for older adults, veterans or folks with disabilities.
If you’re certain you’ve received an incorrect tax bill or your property hasn’t been accurately valued, you can file an appeal with your local tax office.
Just keep in mind that you’ll likely have to cough up a small filing fee to have someone review your claim — and you might have to hire a lawyer as well.
There’s also no guarantee that a decision on your case will be reached swiftly, or that your bill will drop after a review. You’ll even run the risk that your reviewer will find that your assessment is too low and will increase it rather than giving you a reduction. So be confident that you’re being overcharged before you file your appeal.
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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
