McHenry Times

McHenry County's final property assessment equalization factor for 2024 has been confirmed as 1.0000. This announcement was made by David Harris, director of the Illinois Department of Revenue. The equalization factor, frequently referred to as the "multiplier," serves to ensure uniform property assessments among counties, aligning with the legal requirements. This process is essential due to the overlapping nature of some of the state's 6,600 local taxing districts across multiple counties, such as school districts, junior college districts, and fire protection districts. Without uniformity, there would be significant disparities among taxpayers with similar properties.

A law established in 1975 mandates that property in Illinois be appraised at one-third of its market value. However, farm properties are assessed differently. Homesites and dwellings on farms are subject to standard assessment and equalization processes. Meanwhile, farmland is appraised at one-third of its agriculture economic value, exempt from the state equalization factor. As of now, assessments in McHenry County reflect 33.34% of market value, based on property sales from 2021, 2022, and 2023.

The equalization factor pertains to 2024 taxes, due in 2025. Previously, McHenry County's equalization factor for the year was 1.0000. Before finalizing the current factor, a public hearing was held, following the tentative factor issuance on December 19, 2024, which was also set at 1.0000.

The equalization factor is annually calculated for each county by comparing the sales prices of properties over the past three years to their assessed values as determined by the county supervisor of assessments or county assessor. When the three-year average assessment aligns with one-third of the market value, the equalization factor is set at one (1). Should the average assessment level surpass one-third of market value, the factor dips below one (1). Conversely, if the average is below one-third of market value, the factor rises above one (1).

Adjustments to the equalization factor do not imply changes to total property tax bills. These bills are determined by local taxing bodies when they annually request funding to provide services to residents. When local taxing districts do not request more money than the previous year, property taxes remain stable despite potential assessment increases. The assessed value of a property dictates the tax portion a taxpayer owes, which remains unchanged by the multiplier.