The Taxman Cometh

Yes, it's that time again, time to acknowledge that along with home ownership comes - a property tax burden. If you currently own a home anywhere in Cook County, you have probably received a copy of the first installment of your tax bill in the mail.

Some confusion usually swirls around this tax bill, so a few basic factoids are presented here.

1. This tax bill is due March 1, 2007.
2. This tax bill is to pay for the 2006 tax year (we always pay "in arrears" in Cook County).
3. This tax bill, due March 1, 2007, is EXACTLY one half of what the final total bill was for your property in the tax year of 2005.
4. IF (and this is a biggie, so read carefully) you carry a mortgage on your property, and your lender collects money from you every month to maintain an escrow fund with which to pay your property tax bill, DO NOT send the County payment for the bill which you received in the mail. Again, DO NOT pay this property tax bill if your lender has this responsibility. If you are not certain whether or not your lender is supposed to pay your tax bill, please contact your lender's customer service department immediately and inquire. Having said all that, it is still a wise idea to make certain your lender has indeed paid your tax bill. You can do this online by logging onto the County Treasurer's website, click on the pull-down menu on the far left margin labeled "payments" and select the payment status report, type in your property PIN number (find this on your tax bill mailing), type in the 4-letter security code the screen will supply to you, and you will instantly be shown the status of your property's tax payment. That URL is http://www.cookcountytreasurer.com/.
5. If you purchased your home in the past year, do not assume that the previous owner of the property is responsible for the payment of the 2006 tax bill. This is probably not the case. Check your purchase contract for the paragraph that details how the property taxes will be prorated between you and the seller, and check your closing statement (also called a HUD-1 or a RESPA statement) for the detail of the tax credit that probably was granted to you by the seller. Any questions on this? Contact your designated Realtor, lender, or the attorney who represented you in the purchase transaction.
6. Exemptions are one last tidbit that we have not touched on here. If you feel that you are entitled to a homeowner's exemption and do not see it stated on this first installment bill, don't rush to the phone to call the Treasurer's office. Any exemptions to which you are entitled will be reflected on the SECOND installment bill, which will be finalized and mailed out in the early fall of this year.

Hope some of this is helpful to you. Don't hesitate to ask questions, if any remain; we had to explain all of this in the past couple days to a new homeowner whose day job is attorney at a large bank. It's ok to ask!

And speaking of asking, all of us here at North Shore Home Advisors are always available to take your questions about purchasing a home on the North Shore. Drop us a line, or pick up the phone. We are glad to help!