Legal Question in Real Estate Law in Illinois

Within Cook County, property tax bills come out twice each year. The first installment usually arrives in late January for a March 1st payment. The first installment is always 55% of the prior year's total taxbill. That formula does not change if an appeal in the current year lowers the assessment on your property. The second installment, by statute, must be mailed out by June 30th for an August 1st payment. The second installment incorporates the revised local tax and state equalization factor and any exemptions which apply to the property. The second installment states the total tax due for the year, less whatever payment was made on the first installment. If a reduction in the assessment by way of a tax appeal is achieved, the benefit of the reduction will be realized in the second installment taxbill.

For counties outside of Cook County, first and second installment taxbills are equal and are payable June 1st and September 1st.

The "second installment" bill for tax year 2012 will be sent out later this year 2013. It is actually the "real" tax bill; the "first installment" is just an "estimate" but assuming you paid it, the amount you paid will be reflected in the "second installment" bill.. Assuming you are a typical cash-basis taxpayer (ie. you file in April of THIS year 2013for income/credits/deductions paid/received DURING 2012), you would show the property taxes paid DURING this year ( 2013) on your 2013 return due in April of 2014, even though the taxes relate to 2012. If you are an accrual basis taxpayer, that complicates things and you should consult tax preparation advice. Nice, huh?