Understanding the Real Estate Property Tax Cycle
The Madison County Treasurer’s Office collects tax revenues on behalf of taxing districts and then disburses the monies collected to over 200 taxing districts in Madison County. The Treasurer is also responsible for receiving and investing the tax revenues and other funds of the County.
Taxing Districts in Madison County use property taxes to support their annual operating budgets. Tax dollars help to provide fire and police protection, repair roads, install street lights, support local libraries and provide other necessary services for residents of cities, villages and townships throughout Madison County.
Important Facts about Property Taxes in Madison County
In Madison County, the largest share of property taxes goes to school districts for educational purposes. For every dollar of tax revenue, schools received the highest (63%), followed by cities/villages (16%) other taxing districts (park districts, fire protection, road and bridge, libraries, etc (8%), county (8%) and townships (5%).
In 2006, the equalized assessed value of real estate property in Madison County was $4.07 billion compared to $331.3 billion EAV for the State of Illinois.
In 2009, equalized assessed value of real estate property in Madison County was $4.63 billion. Residential property ($3.42 billion) accounted for the highest property tax base, followed by commercial property ($760 million), industrial property ($275.52 million), farm property ($152.80 million), railroad property and mineral rights ($27.4 million).
Between 2006 and 2009, the equalized assessed value (EAV) of taxable property in Madison County increased from $4.07 billion to $4.63 billion, a total increase of $560 million. The equalized assessed value has risen by 12% over a period of three years. Property tax extensions increased by 15% from $306.79 million to $353.03 million the same period.
During the 2008 tax year (property taxes paid in 2009), the tax year payment trends paid in 1, 2, 3 payments accounted for (72%), 4 payments (23%) and the monthly payment plan (1%).
The “Monthly Payment Plan” gives taxpayers the opportunity to make payments on their yearly real estate taxes on a monthly basis. From the 2007 to the 2008 tax year, the number of delinquent tax notices mailed by the Treasurer’s office decreased by 14 %. This the lowest number of delinquent notices mailed in the last 10 years.
The number of delinquent parcels sold by the Treasurer’s office decreased 21% from 2007 to 2008 tax year.
Under Illinois statutes, Madison County has numerous property tax exemptions including a General Homestead exemption, a Senior Citizens Homestead exemption, a Disabled Veterans’ Homestead exemption, and a Senior Citizens Assessment Freeze exemption.
In 2009, over $717.9 million property tax exemptions were granted in Madison County. Property tax exemptions increased by 22% from 2005 to 2009.
Madison County does not operate under the Property Tax Extension Law (PTELL) which limits the growth in property tax extensions to 5% or the increase in the Consumer Price Index.
Madison County’s residents and or area businesses have access to other property tax relief programs including the Senior Citizens Tax Deferral Program, property tax abatement, and other tax incentives such as The Illinois EDGE Program, and Gateway Commerce Center, Riverbend and Southwestern Madison County Enterprise Zones.
In 2011,under the new, reverse-auction process, the tax sale of delinquent property taxes resulted in a new record. The interest-rate penalty on all sales resulted in a weighted average of 3.91% This was the lowest average in over 10 years.
Source: Madison County Treasurer’s Office, Chief County Assessment Office and Madison County Clerk – Property Tax Update 2010