Landowners in Montgomery County, Illinois are grappling with a dramatic spike in property taxes after having their bills reassessed.
Brandi Lentz told 5 On Your Side she paid $756 in property taxes last year on a 96-acre tract of woodland in Montgomery County. Next year, she has confirmation that her property tax bill will be more than $10,000 — a shocking 1,222% increase — and she's not alone.
“People are going to lose their property,” Former Montgomery Co. Finance Chair Megan Beeler told 5 On Your Side. “When you’re looking at a 1,500% increase, a 3,000% increase on property, we’re not going to have the ability to maintain and pay the taxes.”
What caused the sudden increase?
According to Montgomery County Assessor Kendra Niehaus, the spike in property taxes is due to a 2007 state law that requires woodland tracts to be taxed like homes. Up until this year, the law wasn't correctly implemented in Montgomery County, so each tract of woodland must now pay a tax rate of 33.33% of its fair market value.
“I have a confirmation email from the Montgomery County Assessor that tract of land is going up due to a woodland assessment,” Lentz told 5 On Your Side.
Niehaus says that any residents who believe their assessment is higher than the 33.33% rate can file complaints with the Board of Review. But Beeler says resolution isn’t likely.
“We’re being denied due process in Montgomery Co,” Beeler told 5 On Your Side. “The majority of our parcels do not have a township assessor. We don’t have township assessors in most of our townships.”
A township assessor is a government official responsible for determining the fair cash value of land, which impacts the tax rate landowners pay. Without a township assessor, it may not be clear who determines the value of properties.
But, 5 On Your Side reported the Montgomery County Board of Commissioners held a special session to address property owners' concerns about the increased tax assessments.
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What can property owners do?
The property tax process varies by state and even township, but there are several steps landowners can take to address rising property taxes. Start by reviewing your assessment on your county auditor or tax assessor's website. Ensure all listed details, such as location, acreage and the number of bedrooms, are accurate.
You can look at recent sales of comparable properties in your area to see if your valuation aligns with market trends. You’d need to compile documentation to support your claim of overvaluation, though. This might include sales data for similar properties, an independent appraisal or photos of the property that can help your case.
Once you've filed an appeal, you could be scheduled for a hearing to present your case. In this scenario, you may want to prepare a concise, well-organized argument supported by your evidence.
And be mindful of deadlines. In Cook County, Illinois, for example, landowners typically have 30 days to file an appeal after receiving a reassessment notice.
Most states perform a tax assessment every few years, which can result in higher property taxes. Having a solid emergency fund can help land and homeowners navigate large tax bills without risking losing their properties.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
