Showing posts from January, 2019

Illinois Homeowners Associations and Subdivision Developers - Are You Overpaying Property Taxes On Common Area Parcels?

I represent some Illinois homeowners associations, and in the past year have seen several for which the association common areas received property tax bills and assessments as if they were privately owned parcels. In one case that was just resolved, I was able to help the association timely appeal the assessment, make our case before the county board of review, demonstrate the error to the county, and achieve a significant tax savings for the HOA and its residents (in that case, the assessed value went from in excess of $100,000 to essentially $0). Here's the reason why:

In Illinois, the property tax code (See in particular 35 ILCS 200/10-35) contains a special provision for subdivision common areas, specifying that the assessed value of such parcels is fixed at $1.00. For such properties, the valuation of the individual lots in the subdivision is supposed to already account for the value of the common areas and any common area amenities. It does not matter how fancy is the pool,…