Township Equalization Factor

Lake Villa 2020 Equalization Factor

The 2020 equalization factor for Lake Villa Township is 1.0405 or +4.05%. This factor is applied to all non-farm parcels in the Township. It does not mean your taxes are going up by 4.05%. The factor is used to adjust assessments to 33-1/3% of market value the state mandated level of assessment.

The Illinois Department of Revenue completes a three years sales ratio study for the sales occurring in 2017, 2018 and 2019. The yearly assessment to sales ratios are 33.23%, 32.08% and 31.40% respectively. The 3 year level of assessment is 32.24% below the state required 33-1/3%. The 2020 equalization factor should not be construed as an “annual real estate market increase” that would be determined by Realtors Association.

Another influence upon the equalization factor are the sales utilized by the State. Some foreclosure sales, short sales or bank owned sales are not included in the State’s studies. These sales are deemed not to be arms-length, fair market transactions. By excluding these sales the State may not be capturing the downward trend in the market. On the other hand my office includes sales that have been exposed to the market, advertised for sale to any willing buyer.

The factors and sale ratio statics are published on the Lake County web site. The link is below:

http://www.lakecountyil.gov/389/Equalization-Factors

If recent sales in your subdivision and neighborhood indicate that your parcel is overvalued after the application of the 2020 equalization factor, then that is a basis for an appeal.  Additionally, if your property or home is over-assessed compared to other similar properties or homes in your subdivision or neighborhood, this would also be a legitimate basis for an appeal. Yet, property owners are not be able to appeal an assessment value based solely on the 1.0405 equalization factor.

One other thing to remember is that since all assessments in Lake Villa Township will receive the 2020 equalization factor of 1.0405, your share of the property tax burden in Lake Villa Township will remain relatively the same and will not adversely increase your property taxes. Taxes could increase, however, if taxing body spending increase.

The main driver of increase in your real estate taxes is spending by taxing bodies. If the taxing bodies increase spending, then taxes go up. If they decrease spending, taxes go down. Under PTELL limitations the annual cap in spending increases for the upcoming tax bill payable in 2021 is 2.3%. It is very likely taxes will increase by 2.3% next year.

There is more discussion of the equalization factor and the difference between assessor’s market value and current market value found on this web site.

What is the Equalization Factor
Assessed vs Current Market Value