Why Do Taxes Increase Every Year?

Property taxes can increase for a variety of reasons, and the specific factors affecting your property taxes may vary depending on your location and local government policies. Here are some common reasons why property taxes tend to increase over time:

1. Increased Property Value: If the value of your property has gone up, either due to market forces or improvements you’ve made to your home, your property taxes may increase. Property taxes are often based on the assessed value of your property, and when this value goes up, your taxes can go up as well.
2. Rising Local Costs: Your local government relies on property taxes to fund services like schools, infrastructure maintenance, public safety, and more. When the cost of providing these services increases, your property taxes may rise to cover those expenses. This can happen due to inflation, increased labor costs, or higher demand for services.
3. Voter-Approved Tax Increases: In some cases, property tax increases may be the result of voter-approved initiatives or referendums that allocate additional funds for specific purposes, such as improving public schools or upgrading public transportation.
4. State and Local Budgets: Economic conditions at the state and local levels can impact property tax rates. If your local government faces budget shortfalls, they may raise property taxes to make up for the deficit. Similarly, state governments can also influence property tax rates through their budget decisions.
5. Property Tax Rate Changes: Local governments can adjust property tax rates as needed to generate the revenue required to fund public services. If they decide to increase the tax rate, it can lead to higher property tax bills for homeowners.
6. Changing Assessment Methods: Sometimes, changes in how properties are assessed for tax purposes can affect your property tax. Assessors may use different methods or criteria to determine property values, leading to fluctuations in tax bills.
7. Exemptions and Deductions: Changes in local or state tax laws can impact property tax exemptions and deductions. If certain exemptions or deductions are reduced or eliminated, it can result in higher property tax bills.
8. Infrastructure Improvements: If your local government undertakes significant infrastructure projects, such as building new roads, schools, or parks, it may require additional funding through property taxes. This can lead to temporary increases until the projects are completed.

To better understand why your property taxes are increasing, it’s a good idea to contact your local tax assessor’s office or attend local government meetings where tax-related decisions are discussed. Additionally, you can review your property tax assessment to ensure it accurately reflects your property’s value and characteristics. If you believe there are errors in your assessment, you may have the option to appeal.

Disclaimer

Niko Law LLC is an Illinois law firm. As the firm practices law in the State of Illinois, only, this website and/or e-newsletter focuses upon that jurisdiction, only. Please keep in mind Niko Law LLC does not guarantee results and that law can vary dramatically from state to state, county to county, and it is not reasonable to assume that law in other jurisdictions will be the same as, or even similar to, Illinois law.

This e-newsletter should not be construed as legal advice, nor used in lieu of a lawyer.

For questions regarding your specific situation, please contact Niko Law LLC at 708-966-9388.