Understanding what is and isn’t included as part of an HOA’s monthly assessment fee can be a little confusing, especially for those new to living in a Chicago condo association. One area many property owners have questions about is related to property taxes.
Who Pays Property Taxes if You Live in an HOA?
Just like owners of single-family homes, condo owners must also pay property taxes. The tax amount due is based on the assessed value of the condo unit. Factors like unit location, size and condition will all impact the tax amount assessed. That means property taxes will vary from condo to condo and may even differ among individual units within the same HOA.
The party responsible for paying property taxes is the condo owner themselves. Real estate taxes are to be paid directly to the government and do not get paid by your HOA.
One caveat is in instances where shared amenities or common areas within the condo community require additional taxation. When the HOA as a whole must pay property taxes for its common amenities, then this taxation amount may be included in your condo fees. Any taxes paid as part of your condo assessment would be in addition to your property tax responsibilities. Be sure to review your HOA governing documents to understand your financial obligations and what those obligations contribute to.
When buying property in an Illinois condo association, be sure to understand all your financial commitments including property taxes and HOA fees. To ask questions about living in an HOA community, get in touch with our team at First Community Management. We partner with more than 115 HOAs in the greater Chicago area and are here to help you and your association.