Residential property taxes to pay for Loop slump
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Homeowners are footing the bill for major Loop commercial property value losses in the long-delayed Cook County property tax bills that started hitting mailboxes last week, according to an analysis by the Cook County Treasurer's office.
Why it matters: The 16.7% rise in median residential property tax bills (to $4,457) represents a record city increase (in at least the last 30 years) and adds to rising grocery, energy and housing prices.
The big picture: The new bills, which reflect the 2024 tax year, reduce the tax burden of Loop commercial buildings by more than $129 million, according to the analysis.
- At the same time, Chicago homeowners were left paying an additional $469.4 million to make up for the commercial losses and new financial demands from local government entities, especially Chicago Public Schools.
What they're saying: "When taxes go up by more than half-a-billion dollars, and commercial values plummet, homeowners are left holding the bag," Cook County Treasurer Maria Pappas told Axios.
Zoom in: Homeowners in Black communities got hit hardest with some of the biggest increases, according to the analysis.
- In West Garfield Park, the median homeowner tax bill increased by nearly $2,000, or 133%.
- In North Lawndale, it increased by nearly $1,900, or 99%.
- In Englewood, the increase came to $609, or 82.5%.
Zoom out: This year's rise in homeowner taxes represents the third year in a row that the reassessed areas of Cook County (officials revalue a different portion each year) saw record median tax bill increases, the report says.
- For tax year 2023, the South and Southwest Suburbs: +19.9%, to $6,117
- For tax year 2022, the North and Northwest Suburbs: +15.7%, to $7,008
Between the lines: For Farzin Parang, executive director of the Building Owners and Managers Association of Chicago, the shifting tax burden illustrates the city's interconnectedness.
- "Downtown's health is tied to our neighborhoods, and rising property taxes should warn against adding harmful policies like the mayor's head tax and increased consumer tax that stall growth and hurt everyone," he told Axios.
What's next: "People who aren't able to pay by Dec. 15 can use our payment-plan calculator to pay over a 13-month period, starting on Dec. 16, at the interest rate of 0.75% per month," Pappas told Axios.
Go deeper: You can find more analysis at the treasurer's site.