valuation and taxation are two separate functions.
actual value of real property is determined by actions
in the marketplace; the buying and selling of property
by the public. Tracking values is the function of the
Assessor, the Supervisor of Assessments and the Board
of Review. These entities are thereby charged with equity
among assessments. The Supervisor of Assessments and
the Board of Review may use multipliers to achieve equity
among townships within a county and/or to bring assessments
to the State-mandated 33.33% of market value, county-wide.
Sales are tracked by the State through Real Estate Transfer
Declarations and the sale prices are compared to assessed
values of those properties sold to produce sales ratio
studies, which indicate the level of assessments in
townships and counties. If the level is above or below
33.33% of value, the State may impose a multiplier to
bring county levels to 33.33%. The Supervisor of Assessments
or the Board of Review may use township multipliers
to adjust township value levels within the county to
33.33%. The Assessor, the Supervisor of Assessments
and the Board of Review in this function do not TAX.
They evaluate by tracking the market and adjust these
valuations for equity by the application of multipliers.
Multipliers are related to value adjustments, not to
are the result of the demand for money by the taxing
bodies. The taxing bodies are listed on the tax
bill along with their portions of the tax rate. These
include counties, cities, schools, airports, townships
and others. Their requirements for money to operate
translate to tax rates, the total of which, when applied
to the effective property assessment, determines the
In summary, rising taxes are the result of rising demands
for money, not the result of rising property values.
In a given year, when values increase, tax rates would
decrease to generate the same tax dollars as the prior
year. In a given year, when property values decrease,
tax rates would increase to generate the same tax amount
as the prior year. Except for that part of the township
or county levy, which is needed to cover office budgets,
assessment bodies do not TAX. Rather, they evaluate
property according to the action of the market. It is
not the local Assessor who decides the tax liability,
as commonly believed.