Isn't That Rich Podcast

Today, we’re diving into one of the hottest topics around—property taxes. Love them or hate them, they’re a reality for homeowners, and with the recent release of tax bills, it’s something many of us are thinking about. To help us understand what’s going on with those tax bills, we sat down with Ashley Gott, the Williamson County Treasurer.

Ashley, who has served as treasurer since 2019, brings a wealth of knowledge to the conversation. With over two decades of experience in banking and civic leadership, he’s the perfect person to help us break down property taxes—what they are, why we have them, and how they’re calculated. So, whether you’re a first-time homeowner or a seasoned property owner, we’ll help guide you through the complexities of your tax bill and give you practical tips to make sense of it all.

The Role of a County Treasurer: A Modern-Day Banker for Your Local Government

Before diving into property taxes, Ashley shared what being a county treasurer really entails. In short, he’s the county’s banker. His responsibilities go far beyond just collecting taxes. Ashley oversees all county finances, manages investments, handles accounts payable, and even balances over 80 county accounts. He’s also in charge of collecting money for TIF districts and other taxing bodies like school districts and municipalities. Imagine being responsible for the finances of not just a business, but an entire county!

It’s a lot of hats to wear, but Ashley manages it with a team that works closely with entities like Farmers State Bank to ensure everything runs smoothly.

What Exactly Are Property Taxes?

So, why do we even have property taxes? Simply put, property taxes fund the essential services that keep our communities running. Schools, park districts, fire departments, and libraries all depend on property taxes. But how are these taxes calculated? It’s a multi-step process that involves several key players, including the assessor’s office, the county clerk, and Ashley’s office as the county collector.

According to Ashley, the property tax system works on a two-year cycle. This year’s tax bill (2024) is based on assessments from 2023. The assessor’s office is responsible for determining the value of properties, using factors like market value, income potential, and the general activity in the area.

Here’s where it gets interesting: the value of your home isn’t just about what you paid for it or what Zillow says it’s worth. In fact, Ashley clarified that your property’s assessed value is actually 33.3% of its market value. So, if your home is worth $300,000, your assessed value will be around $100,000. This number is then used to calculate your tax bill.

TIF Districts: Tax Increment Financing Explained

You might have noticed something called a TIF on your property tax bill and wondered what it means. TIF stands for Tax Increment Financing, and it’s a tool local governments use to encourage development in areas that need a little love—think neighborhoods or business districts that are “blighted” or underdeveloped.

Ashley was quick to clarify that a TIF doesn’t actually increase your taxes. Instead, it redistributes the tax money you’re already paying to help fund improvements in that area. So, if your property falls within a TIF district, part of your tax payment goes toward funding those improvements. Over time, TIFs are designed to make these areas more desirable and boost overall property values.

How Property Taxes Are Calculated

Now, let’s get into the nitty-gritty: how exactly are your taxes calculated? Ashley explained that it’s not as simple as slapping a tax rate on your home’s value. Instead, each taxing body—whether it’s the school district, park district, or fire department—adopts a budget each year. Based on these budgets, they submit a levy (a fancy term for their request) to the county.

Here’s where the Property Tax Extension Limitation Law (PTELL) comes into play. Under this law, local governments can only increase their tax requests by the Consumer Price Index (CPI) or 5%, whichever is lower. While 5% may not sound like much, it adds up, especially when you consider that Illinois has the second-highest property taxes in the country (thanks, New Jersey, for being first!).

Ashley broke it down simply: if local governments don’t ask for enough in their levy, they’ll never get it back—even if they need it in the future. So, many taxing bodies aim a little higher in anticipation of future growth or unforeseen expenses. For example, if a community sees population growth and needs to build a new school, the money has to come from somewhere. This forward-thinking approach is necessary, but it’s also why you might see slight increases in your tax bill even if nothing seems to have changed around you.

Exemptions: The Hidden Savings You Might Be Missing

Here’s some good news: you might be eligible for exemptions that lower your tax bill. There are several types of exemptions available, and they can add up to significant savings. For example, if you live in the home you own, you could qualify for a Homestead Exemption, which could reduce your assessed value by $6,000.

As Ashley explained, “That might not sound like much, but if your tax rate is around 7%, that $6,000 exemption could save you around $420 on your tax bill.” Other exemptions include the Senior Homestead Exemption (for those 65 and older), the Disabled Veterans Exemption, and more. It’s worth checking with the assessor’s office to see what you qualify for—after all, who doesn’t want to save money?

What Happens if You Don’t Pay Your Property Taxes?

Let’s talk about what happens if you miss a payment. As Ashley explained, the due dates for your tax payments are not suggestions. If you miss a payment, interest starts to accrue at a rate of 1.5% per month. After a certain period, unpaid taxes can be sold at the annual tax auction—yes, it’s a real thing!

Here’s how it works: If your taxes go unpaid, your property doesn’t automatically get sold. Instead, tax buyers can bid on the unpaid tax amount. This doesn’t mean they get your house (at least not right away), but they do collect interest on the amount they’ve paid on your behalf. If you don’t repay the taxes, including the interest, within a set period (usually two and a half years), the tax buyer can potentially acquire your property.

Ashley shared that the auction attracts tax buyers who specialize in this kind of investment. It’s a high-stakes game, and they often have color-coded spreadsheets tracking the properties they’re interested in.

Can Property Taxes Increase Dramatically?

This year has been unique for many homeowners. Ashley revealed that some properties in Williamson County saw increases as high as 22% due to changes in how properties were assessed. But before you panic, know that not every property was affected equally. Some saw decreases of up to 17%.

The county-wide average increase was around 7.8%, which includes new growth and inflation. But if your property was reassessed this year, you might see a larger jump on your bill, depending on factors like where you live and how the overall property values in your area have changed.

Appealing Your Assessment: What to Do if You Think You’re Overpaying

If you think your property is over-assessed, you’re not stuck with that bill forever. Ashley recommends contacting the assessor’s office and filing a Board of Review form. This kicks off the process of having your property’s value reassessed. You’ll need documentation—like comparable property values from a realtor or Zillow—to make your case.

If the Board of Review agrees, your property’s value can be adjusted, potentially lowering your tax bill. And if you’re still not satisfied, you can take it a step further by appealing to the Property Tax Appeal Board (PTAB) at the state level. While this process is more common with commercial properties, homeowners do have the option if they believe their property has been unfairly assessed.

Tips for Staying on Top of Your Property Taxes

To close out our conversation, Ashley offered some practical advice for staying ahead of property taxes. His number one tip? Familiarize yourself with your bill. Make sure you’re not missing out on exemptions you’re eligible for, and set aside money throughout the year to cover your taxes when they’re due.

Ashley also mentioned that some people prepay their taxes, especially if they come into extra money from a bonus or tax refund. By prepaying, you reduce the burden of having to come up with the entire amount all at once when the bill arrives.

If you’re someone who struggles with budgeting, Ashley recommends setting up a separate savings account or even using an escrow account through your mortgage provider to automatically set aside money each month. This way, when tax season rolls around, you won’t be scrambling to come up with the funds.

Final Thoughts

Property taxes are one of those necessary evils of homeownership, but understanding how they work can help you feel more in control of the process. From assessments and levies to exemptions and