Residents of Illinois are no strangers to high property taxes. The state is known for having some of the highest in the United States. However, landowners in Montgomery County are in an uproar after their tax assessments increased by almost 1400%. This is due to a 2007 state law that makes woodland tracts be taxed like homes. This year, this law is finally being implemented and now landowners must pay a tax rate of 33.33% of market value on each tract of woodland.
Increased property tax on woodland
Brandi Lenz is used to paying property taxes as a homeowner and landowner. “Last year’s tax bill on a 96-acre tract was $756,” the realtor said. “I have a confirmation email from the Montgomery County Assessor that the tract of land is going up due to a woodland assessment. That same tract of land is going to be over $10,000.”
But she is far from the only resident facing skyrocketed payments. “I think you could see some tax sales and foreclosures if people can’t afford this,” said Lentz. Fortunately, the law has since been put on hold for further review.
According to Montgomery Co. Assessor Kendra Niehaus, this massive increase is due to the implementation of a 2007 law that requires taxing woodland tracts as they do homes.
“People are going to lose their property,” said Former Montgomery Co. Finance Chair Megan Beeler to 5 on Your Side. “When you’re looking at a 1,500% increase, a 3,000% increase on property, we’re not going to have the ability to maintain and pay the taxes.”
No property tax assessors
Niehaus stated that anyone who thinks their assessment is higher than 33.33% of its value can file a complaint to the Board of Review. However, Beeler points out a flaw in that plan. “We’re being denied due process in Montgomery Co.,” Beeler said. “The majority of our parcels do not have a township assessor. We don’t have township assessors in most of our townships.”
A town assessor is the government official that determines a land’s cash value, which directly affects how much taxes are owed for it. Without one, it’s difficult to know who determines the value of the local properties.
Additionally, Beeler critized another proposal from Neihause who stated that landowners can classify their woodland as farmland if they can prove they’re in the process of entering it into conservation programs. “All of those programs cost money to get into,” Beeler said. “You have to invest in the property.”
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Woodlands or wastelands
Lenz explained the situation to the Illinois Policy Institute, explaining her increased tax bill for her couple hundred acres of land. “What I’ve learned from [state Representative Wayne] Rosenthal is that when this law passed in 2007, it was meant to keep ground from being cleared for farming to bring down the taxes,” she said. “It would allow for this ground to be put into woodland programs like the Conservation Stewardship Program.”
However, these programs aren’t an option for many areas in Montgomery County because they are covered in ravines and “have no utilities”. Some can be classified as wastelands. So Lenz reached out to other counties in Illinois to get a clear definition of “wooded acreage” but found nothing conclusive since “The Department of Revenue description is different than the Bureau of Land Management.”
“A lot of properties are taxed incorrectly”
“I feel our county is lacking transparency,” said Lenz. “I believe I’m a pretty educated person – I have a bachelor’s of business administration from the University of Illinois — but this can be extremely confusing…
Fortunately, the county put the law “on hold” to do a study, which Lenz feels “is the right call”. This takes away the stress of the upcoming tax assessments and bills. “But this ultimately needs to be taken care of at the state level. We need to revisit some of these laws and look at whether these taxes are appropriate. What do they actually mean when they say ‘woodlands?’”
Lenz noted that “Montgomery County already has very high property taxes compared to others in Illinois. “And I know from my real estate business, a lot of properties are taxed incorrectly. Some are over-assessed and some are under-assessed.”
Assessing your own property
For people affected by rising property taxes, Moneywise offers several suggestions. The first is fact-checking your accessment on the auditor or tax assessor’s website. Then look for comparable properties in your area and see how much they are selling for. This can help show if your evaluation accurately reflects market trends. If not, submit proof that your land was overvalued, including sales data for other homes, photos of your property, as well as an independent appraisal. You may be scheduled for a hearing after filing your appeal, so prepare a concise, evidence-based argument.
It’s always advisable to have an emergency fund for situations such as these since most states do new tax assessments every few years that can lead to higher property taxes.
“At some point I feel like people are just tired of being taxed,” said Lenz. “Every time you turn around it’s ‘Let’s throw this tax here or that tax there.’ And when you’re talking about completely unproductive land, it’s just: at what point does this stop?”
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