Suffredin- An Advocate for All of Us  
 

Accountability
Forest Preserves
Public Safety
Cook County Budget
Forest Pres. Budget
Property Tax Appeal
Health & Hospitals
Land Bank Authority
Policy Resolutions
Unsung Heroine

 

   
 
   
   
 
   
     
  Office phone numbers:  
   
 
 

The Cook County Code of Ordinances are the current laws of Cook County.

   
 

Search current and proposed Cook County Legislation in Larry's exclusive legislative library.

   
  Cook County Hospital fills more outpatient prescriptions every day than are filled at 26 Walgreen's drug store combined.
   
     
     
     



Property tax burden in Cook county shifts back toward business

Monday, August 23, 2010
Crain's Chicago Business
by Steven R. Strahler

The real estate crash is shifting more of Cook County's tax burden to business property owners, reversing a long trend during the housing boom when homeowners picked up a bigger piece of the tab.

A study provided exclusively to Crain's by the Civic Federation shows that effective tax rates for commercial and industrial property in Chicago rose by 25% to 30% between 2006 and 2008 after falling by as much as 70% between 1999 and 2006. Rates for homeowners also increased during the 2006-08 period but by a much smaller amount—just 1% in Chicago.

The results could threaten business investment here by reigniting age-old complaints about Cook County's peculiar property tax system, which allows business property to be assessed at up to 2.5 times the level of residential.

“It will continue to have a negative impact on Cook County, particularly the commercial portion of the market,” warns Patrick Doody, a property tax lawyer in Chicago.

Effective tax rates illustrate the disparate share of property taxes shouldered by business in Cook County. In 2008, commercial property in Chicago was taxed at 2.35% of market value, industrial at 1.61% and residential at 1.31%.

In measuring the share of property market value paid in annual taxes, the effective tax rate doesn't reflect changes in the tax bill itself. It does show how taxing districts stack up against each other, providing a useful yardstick for business-location decisions.

A decade ago, Chicago had the highest effective tax rate for commercial property and the second-highest for industrial property among the 50 largest U.S. cities, according to data from the Minnesota Taxpayers Assn. Now, despite the recent uptick in effective tax rates, Chicago is ranked just above the average, the group says.

The rate is tied to property values—hence its long decline as values surged in the late 1990s and early 2000s, followed by a rebound as they started to fall at mid-decade.

But the change in effective tax rates was much more pronounced in Cook County than in the five collar counties covered by the Civic Federation survey. Residential owners over the last decade have been paying a steadily increasing portion of Cook County's $1.1-billion overall property tax bill: 57% in 2008, up from just over 40% in the mid-1990s.

The trend has been reinforced by a 50% decline in assessment levels of commercial and industrial property relative to sales prices since the late 1990s, when the ratio exceeded the 2.5-to-1 assessed value limit mandated by the Illinois Constitution. By 2005, the sales ratio had declined to about twice that of residential assessments.

“The pendulum had to swing back,” says Douglas Whitley, CEO of the Illinois Chamber of Commerce.

A spokesman for Cook County Assessor James Houlihan says, “Our ability to control effective tax rates is pretty limited.”

For the decade covered by the Civic Federation report, effective tax rates declined by 63% for industrial property in Chicago and by 49% for commercial, compared with a 13% drop for residential property.

“Tax levies have not grown as fast as underlying property values,” says Laurence Msall, president of the fiscal watchdog, citing tax caps as a restraint. Even where they are not invoked, “many communities have moved to a heavier reliance on other forms of tax revenue.”

But in economically depressed areas with limited alternatives and sagging property values, effective property tax rates have soared. The biggest increases among the 32 communities covered by the report were in Waukegan and Harvey.

© 2010 by Crain Communications Inc.



Recent Headlines

Cook County Public Defender Amy Campanelli on Gun Violence, Police Database.
Monday, August 26, 2019
WTTW

Assessor: Homes values, sale prices up in Schaumburg Township
Tuesday, August 20, 2019
Daily Herald

Home improvement grant designed to get the lead out
Tuesday, August 20, 2019

Cook County census panel seeks outreach help for hard-to-count communities
Monday, August 19, 2019

Cook County Land Bank Authority Announces Opening of Registration to Give Away a Free Home
Tuesday, August 13, 2019
The Chicago Crusader

NEW ILLINOIS LAW ENDS $120 FEE TO CLEAR FALSE CRIMINAL RECORDS IN COOK COUNTY
Friday, August 09, 2019
Illinois Policy

America’s most interesting sheriff
Friday, August 09, 2019

Top Cook County Jail chess players take on the world
Wednesday, August 07, 2019
Chicago Sun-Times

Public defender takes shots at Chicago Police gun offender webpage
Wednesday, August 07, 2019
Chicago Sun-Times

Commentary: Data alone won’t stop Chicago gun violence; Cook County needs a public ‘Violence Reduction Dashboard’
Wednesday, August 07, 2019
Chicago Tribune

Cook County Jail detainees take on inmates around the world in online chess tournament
Tuesday, August 06, 2019
Chicago Tribune

Here’s What You Need To Know About The Ongoing Bail Debate In Chicago
Monday, August 05, 2019
WBEZ Chicago Public Radio

Cook County Jail hosts international chess tournament
Monday, August 05, 2019
WGN Chicago

Cook County property taxes are due today, Aug. 1.
Thursday, August 01, 2019
Special to suffredin.org

Forest Preserves of Cook County Celebrate Dan Ryan Woods Investments
Thursday, August 01, 2019
Chicago Defender

Cook County TIFs generate $1.2 billion
Thursday, August 01, 2019
Chicago Sun-Times

Changes coming to Cook County assessor’s office
Thursday, August 01, 2019
Chicago Daily Law Bulletin

In Chicago, TIF Revenues Soaring
Wednesday, July 31, 2019
WTTW News

A controversial tax subsidy program will generate a record $1.2 billion in revenue. Here’s what the number means for Chicago.
Wednesday, July 31, 2019
Chicago Tribune

Group to rally in support of Kim Foxx as challengers emerge
Tuesday, July 30, 2019
Crain's Chicago Business

all news items

Paid for by Larry Suffredin and not at taxpayer expense. A Haymarket Production.
^ TOP