Chicago property taxes set to rise
Tuesday, Jun 13, 2017 - Posted by Rich Miller
* Greg Hinz…
Chicago homeowners are about to get whacked with a 10 percent increase in their property taxes.
Owners of commercial properties will have to dig almost as deep. The average hike there is 9.3 percent.
Both pieces of news come in a summary from Cook County Clerk David Orr of the bills that’ll be in the mail soon. Orr’s office completes the process of calculating, or extending, each property owner’s bill.
The huge city hike has been expected, since both Chicago and Chicago Public Schools imposed multiyear property tax increases, mostly to pay for shortfalls in worker pension systems.
But this is likely to intensify a debate over the heavy reliance on the property tax system that has become a central issue in the race for governor.
Increases in the suburban portions of the county won’t be quite as steep as in Chicago proper, and in some cases, there will be a decline. According to Orr, the new average residential bills for 2016 will rise 6.5 percent in the north suburbs and 3.9 percent in the south suburbs.
The average city increase will be about $360.
* ILGOP…
“Today’s double-digit property tax hike is just another sign that Illinois’ property tax system is broken and corrupt, and the politicians and wealthy insiders who benefit from the system refuse to take responsibility. This is exactly why we need Governor Rauner’s property tax relief plan passed immediately. Let’s take the property tax system out of the hands of the Chicago political machine and give it back to the public.” – Illinois Republican Party Spokesman Steven Yaffe
Crain’s Chicago Business is reporting that Chicago property tax owners are “about to get whacked with a 10 percent increase in their property taxes.”
Democratic Leaders in the General Assembly, who make money off the property tax system, are blocking Governor Bruce Rauner’s property tax relief plan.
Rauner’s plan would freeze property taxes and give local voters more referendum power to lower property taxes.
…Adding… As a commenter notes, Gov. Rauner signed the bill that allowed Chicago to raise these taxes. Click here.
* Chris Kaergard…
Gov. Bruce Rauner was back in Peoria last week, pushing another of the planks in his platform of reforms that he’s had little luck implementing since his election.
This time, the issue at hand was a property tax freeze the governor’s been pushing for two and a half years years without any success, though hovering over the whole discussion was the continued lack of a state budget.
Such a freeze was part of multiple versions of the “grand bargain” deal that members of both parties in the state Senate were crafting, though Rauner didn’t like the limited length of the freeze that were being discussed. He’s especially scathing about the two-year version that got called for a vote after the gov effectively pulled off GOP support from the legislation. […]
Asked about it, Rauner ignored the potential, saying that a two-year freeze is “not real” and that it guarantees rates will rise in years three, four, five and six. (You can ask yourselves whether that same thing would happen at the end of Rauner’s preferred four-year freeze.)
Yes, you could.
- Anonymous - Tuesday, Jun 13, 17 @ 1:55 pm:
They can always hire Madigan’s law firm to get the taxes lowered.
- Deft Wing - Tuesday, Jun 13, 17 @ 1:57 pm:
Chicago’s real estate taxes have only begun to rise — lots more soon coming. So too with other taxes and fees.
- Anonymous - Tuesday, Jun 13, 17 @ 1:57 pm:
OUCH. Look out, the boulder is coming down the hill.
- 47th Ward - Tuesday, Jun 13, 17 @ 1:59 pm:
The biggest increase in Chicago is for public schools, naturally. I figure Chicago property taxes need to go much higher to get us out of the hole. Maybe 10% a year for 4-5 years. Not popular, but necessary IMO.
- Anonymous - Tuesday, Jun 13, 17 @ 2:01 pm:
“Homeowners in north suburban Cook County will see their property taxes go up 6.5%, an average of $432. Their south suburban counterparts will see a 3.9 increase, about $192, according to the Clerk’s office.”
Worry not, everyone here in capitol fax says property taxes are low here in Illinois. I can of course easily afford paying $432 in additional property taxes annually of course. That is of course with a super low CPI of 0.7% last year.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 2:03 pm:
So property taxes are just supposed to go up 10% every year to fund unaffordable pensions but nothing is to be done to make the pensions affordable?
- Ractin - Tuesday, Jun 13, 17 @ 2:05 pm:
Lp- thats what Tier 2 is for, but those effects wont be seen until 2050 or after, when those pensioners die off.
- Ractin - Tuesday, Jun 13, 17 @ 2:08 pm:
Sorry, I am thinking state, not CPS
- Mahna Anon - Tuesday, Jun 13, 17 @ 2:09 pm:
=== So property taxes are just supposed to go up 10% every year to fund unaffordable pensions but nothing is to be done to make the pensions affordable? ===
They aren’t unaffordable - the problem is that the state, city and county failed to make their employer contribution for several years, which made the burden of paying the pension contribution much worse.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 2:10 pm:
If Illinois legislators were responsible, it would be possible to do common sense, bipartisan pension reform like the Democratic Governor of Pennsylvania just signed yesterday.
This goes much farther than Tier 2 and the benefits would be immediate.
Why is this impossible in Illinois? Pennsylvania’s problems are no where near as bad as ours but Speaker Madigan refuses to budge even though he agrees the pensions are unsustainable.
https://www.governor.pa.gov/governor-wolf-signs-pension-reform-bill-into-law/
- Rich Miller - Tuesday, Jun 13, 17 @ 2:11 pm:
===everyone here in capitol fax says property taxes are low here in Illinois===
At the risk of feeding an anonymous troll, bite me.
- City Zen - Tuesday, Jun 13, 17 @ 2:14 pm:
==They aren’t unaffordable - the problem is that the state, city and county failed to make their employer contribution for several years, which made the burden of paying the pension contribution much worse.==
Instead, they took the money for pension contributions and used it to fund salary increases and keep health benefits at a higher level than they could afford.
- Anonymous - Tuesday, Jun 13, 17 @ 2:14 pm:
===At the risk of feeding an anonymous troll, bite me.===
I was being a bit sarcastic. should have added the “/s” But the total taxation, mostly property taxes are ridiculous. I sure as hell can’t afford paying $432 more annually on top of already burdensome property taxes.
- Tollway Tommy - Tuesday, Jun 13, 17 @ 2:15 pm:
Unfortunately, I’ve met numerous people who refuse to buy property in Illinois because of the inevitable rise in property taxes. It’s a sad reality.
More good news for Madigan’s firm, and bad news for homeowners.
- Chicago Cynic - Tuesday, Jun 13, 17 @ 2:16 pm:
The problem with property taxes is NOT that they are too high everywhere but that they are wildly uneven as that chart shows. We need a systemwide solution.
- Oswego Willy - Tuesday, Jun 13, 17 @ 2:18 pm:
===If Illinois legislators were responsible, it would be possible to do common sense, bipartisan pension reform like the Democratic Governor of Pennsylvania just signed yesterday.===
Will that Pennsylvanian legislation, passed and signed, meet Illinois constitutionality?
If you don’t know, - Lucky Pierre -, it’s disingenuous at best to point to something like that without knowing its comparison, that you made, and it’s constitutionality here in Illinois for such a similar move.
- 47th Ward - Tuesday, Jun 13, 17 @ 2:19 pm:
A former Governor was fond of saying that property taxes were the only taxes not based on ability to pay. That’s what makes them so hated.
The rent is too (darn) high. And it’s going up.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 2:23 pm:
It is disingenuous to not even try OW. For 2 1/2 years the Speaker has done absolutely nothing to address this huge problem.
Instead of being an armchair Supreme Court Justice why not pass Senator Cullerton’s bill which would be a bipartisan compromise.
For new employees, these changes could be immediate, but this being Illinois everything moves at a snail’s pace.
- City Scofflaw - Tuesday, Jun 13, 17 @ 2:24 pm:
=Instead, they took the money for pension contributions and used it to fund salary increases and keep health benefits at a higher level than they could afford.=
Instead they took the money for pension contributions to fund high-dollar privatization deals that turned out poorly. - There, fixed it.
- Oswego Willy - Tuesday, Jun 13, 17 @ 2:29 pm:
===It is disingenuous to not even try…===
Nope.
It’s grossly disingenuous, at best, to push, or tout solutions that have zero possibility to be constitutionally sound. Pandering to solutions that have no basis on the possible, is John Wooden’s quote… “Never mistake activity for achievement.”.
===Instead of being an armchair Supreme Court Justice why not pass Senator Cullerton’s bill which would be a bipartisan compromise.===
Are you saying its constitutional? You may be in a minority there. It has issues - RNUG - has pointed to often.
===For new employees, these changes could be immediate, but this being Illinois everything moves at a snail’s pace.===
Really, what are the measurables, given its not fully recognized to what numbers are being discussed.
- anon2 - Tuesday, Jun 13, 17 @ 2:33 pm:
My property taxes in northwest suburban Cook went up by double-digits a year for many years,(and were not related to any taxable improvements in my home). For a change, Chicago hits double-digits and the ‘burbs are lower. Taxes are still going to be far higher in the ‘burbs on homes of the same value.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 2:35 pm:
Senator Cullerton’s pension bill passed the Senate and would be signed by the Governor tomorrow.
Yet you say “Are you saying its constitutional? You may be in a minority there. It has issues - RNUG - has pointed to often.”
Sorry but RNUG is not an elected official or Supreme Court Justice, but is most likely a beneficiary, so I will take his opinion with a grain of salt.
There are billions of dollars at stake here and there is no excuse for Speaker Madigan to at least call the bipartisan bill for a vote. After all the Super Majority Democratic Senate found enough votes to pass it.
- Rich Miller - Tuesday, Jun 13, 17 @ 2:38 pm:
===so I will take his opinion with a grain of salt===
He’s never been wrong, so do that at your peril.
- Juice - Tuesday, Jun 13, 17 @ 2:38 pm:
Ok Illinois GOP, riddle me this.
The main driver of the property tax rate increase in the City of Chicago is because of the new CPS pension levy that was not previously authorized under state law.
Who was the Governor who signed the law for a $270 million property tax hike for CPS?
(Here’s a hint. His name rhymes with Spruce Downer.)
http://ilga.gov/legislation/billstatus.asp?DocNum=0318&GAID=13&GA=99&DocTypeID=SB&LegID=84279&SessionID=88&SpecSess=
- Oswego Willy - Tuesday, Jun 13, 17 @ 2:40 pm:
===Sorry but RNUG is not an elected official or Supreme Court Justice, but is most likely a beneficiary, so I will take his opinion with a grain of salt.===
I dunno if questioning - RNUG - on integrity is a good tact.
I asked, do you think its constitutional, not if it’s passed or if Rauner would or wouldn’t sign it.
I asked its constitutionality.
===There are billions of dollars at stake here and there is no excuse for Speaker Madigan to at least call the bipartisan bill for a vote===
Usually a constitutional question seems to be a good reason, so there’s that.
===After all the Super Majority Democratic Senate found enough votes to pass it.===
Just because something passes doesn’t make it constitutional.
If that were the case, there would be no need for courts, as everything passed and signed would never face scrutiny.
- Arock - Tuesday, Jun 13, 17 @ 2:43 pm:
“Will that Pennsylvanian legislation, passed and signed, meet Illinois constitutionality?” - wasn’t on this site when the Madigoons did just that a few years back, passed something that they knew was unconstitutional. Did you insult them at the time as well? If so, good for you.
- Juice - Tuesday, Jun 13, 17 @ 2:43 pm:
Lucky, you said “This goes much farther than Tier 2 and the benefits would be immediate.”
That is just false. Tier 2 saved more money in future contributions than the PA plan will save them. The Governor’s Tier 3 hybrid proposal costs more than Tier 2, which is why he pushes off the costs on to the school districts.
And the PA plan exempts correctional officers and state police, which at least here in Illinois, is a very significant percentage of the state workforce.
- Deft Wing - Tuesday, Jun 13, 17 @ 2:48 pm:
Yet again, many here arguing the pros and cons of the freeze’s merits (or lack thereof) simply miss the larger issue; the political issue. Runaway real estate taxes is a huge political issue and Rauner has claimed the high ground on it. In fact, it’s pretty clear he’s basically running for re-election on a theme based on his being portrayed as fighting for taxpayers against an inherently rigged system that benefits only the political class.
That means, obviously, Madigan is THE target. Again.
- Oswego Willy - Tuesday, Jun 13, 17 @ 2:48 pm:
===asn’t on this site when the Madigoons did just that a few years back, passed something that they knew was unconstitutional. Did you insult them at the time as well? If so, good for you.===
I’ve been consistent with pension reform.
Either its constitutional and then press forward, or don’t.
It’s the constitutionality that is the factor for me, not the slanderous names you choose to attach to others pressing or not pressing on legislation pertaining to pensions and its constitutionality.
- Echo The Bunnyman - Tuesday, Jun 13, 17 @ 3:16 pm:
So Rauner has been disproved on his education reform. It’s not a bailout. Then the only play left is to let these taxes get so high and get the Supreme Court to give him relief of pension payments not already in the system? Is that the long play?
- RNUG - Tuesday, Jun 13, 17 @ 3:16 pm:
== This goes much farther than Tier 2 and the benefits would be immediate. ==
The problem is the pension debt. The IL SC has said it has to be paid, no ifs, ands or buts.
You can change anything you want on the pensions for new hires, but it won’t affect the existing debt.
- Rocky Rosi - Tuesday, Jun 13, 17 @ 3:26 pm:
This is not good news for the middle class.
- Echo The Bunnyman - Tuesday, Jun 13, 17 @ 3:37 pm:
RNUG… IS there some kind of play to the Supreme Court to say unless you let us out of the obligations for current retirees we won’t survive as a state? It appears this is too big already.
- Anonymous - Tuesday, Jun 13, 17 @ 3:38 pm:
Lucky never met a panderbear he didn’t like.
- Downstate - Tuesday, Jun 13, 17 @ 3:39 pm:
Implement income taxes for Chicago ASAP! Other cities have it. Just need to get it through Springfield.
- 51st ward - Tuesday, Jun 13, 17 @ 3:49 pm:
Tier 2 pensions will slowly over time help stabilize and reduce the pension debt. It will take decades but it took decades to get into this mess.As long as the city, County and State make their payments it will all be for naught. A tier 3 would probably do more harm than good at this point
- wordslinger - Tuesday, Jun 13, 17 @ 3:58 pm:
–Instead, they took the money for pension contributions and used it to fund salary increases and keep health benefits at a higher level than they could afford.–
Well, jeepers, my goodness, you had enablers like Rauner droppin’ hundreds of thousands of dollars into Daley’s and Emanuel’s campaign war chests because he said they were doin’ such a swell job runnin’ the schools.
- RNUG - Tuesday, Jun 13, 17 @ 4:13 pm:
== IS there some kind of play to the Supreme Court to say unless you let us out of the obligations for current retirees we won’t survive as a state? It appears this is too big already. ==
They already argued that and lost. See the Kanerva and SB-1 decisions.
To summarize and paraphrase, this is a problem the General Assembly created and it’s up to them to fix it. Just because the GA put the State in debt, they are not allowed to argue the GA can’t afford to raise the revenue to pay the debt.
- Echo The Bunnyman - Tuesday, Jun 13, 17 @ 4:25 pm:
RNUG.. You’re the best… Then I have no clue why he is driving us in the ground. I thought perhaps he tries the US Supreme court or Fed intervention of some kind.
- Chicagonk - Tuesday, Jun 13, 17 @ 4:28 pm:
@RNUG Bingo. The reality is we were a low tax high service state for many years and we are going to have to be a high tax low service state for many years in order to get back to fiscal health. The only scenario I can see that would allow pension benefit reductions would be a demographic spiral on the level of the current spiral in Puerto Rico.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 4:40 pm:
Well, jeepers, my goodness, you had enablers like Rauner droppin’ hundreds of thousands of dollars into Daley’s and Emanuel’s campaign war chests because he said they were doin’ such a swell job runnin’ the schools.
Exhibit A for Rauner derangement syndrome. Like a maze that has one exit, EVERYTHING leads to Rauner’s fault. Even issues that predate his election are Rauner’s fault and not the leaders who have been running Springfield for decades
- Oswego Willy - Tuesday, Jun 13, 17 @ 4:42 pm:
- Lucky Pierre -
Bruce Rauner donated to Daley and supported Daley.
Are you refuting that, lol.
You should be upset Rauner enabled and supported Daley.
Why aren’t you?
- wordslinger - Tuesday, Jun 13, 17 @ 4:49 pm:
LP, I’m quite certain that Daley and Emanuel as mayors and through their handpicked boards bear the lion’s share of the responsibility for the CPS financial situation.
And it’s a matter of public record that Rauner contributed hundreds of thousands of dollars to them based on their management of the schools.
So his cries of “decades of mismanagement” are a wee bit opportunistic and hypocritical at this time.
As is his criticism of rising property taxes, as he is the governor that signed the legislation that allowed for those increases.
- RNUG - Tuesday, Jun 13, 17 @ 4:54 pm:
== I thought perhaps he tries the US Supreme court or Fed intervention of some kind. ==
On what grounds? It is, for now anyway, strictly a State issue. Plus, if you do look at Federal law, they treat State’s relationships with State employees differently than most employer / employee relationships; in general, the Federal courts keep their hands off as a State’s rights / seperate of powers issue.
Because of the pension clause, this is basically a contract issue. While there can be nuances, if you analyze it on that basis, it is fairly easy to reach conclusions.
== Then I have no clue why he is driving us in the ground. ==
If by he you mean Rauner, remember he came out of the private sector where bankruptcy is just another tool to avoid your obligations. That’s not the case in government; the rules are different because there are no federal protections like PBGC.
- lake county democrat - Tuesday, Jun 13, 17 @ 4:55 pm:
The big picture:
Dems are seen as tax hikers.
Republicans are seen as the reverse.
Crucial Point: Even when Rauner says he’ll accept tax hikes as part of a deal, voters will be receptive to his pitch that it would be WORSE if Madigan + Dem Guv controlled the whole show. So when there’s a drip-drip-gush of taxes by Dems (Cook County sales, Cook County soda, Chicago property) it all helps Rauner.
- RNUG - Tuesday, Jun 13, 17 @ 5:26 pm:
== is most likely a beneficiary ==
Must not be reading my posts very closely. I’ve disclosed multiple times that I took the 2002 ERI.
- Anonymous - Tuesday, Jun 13, 17 @ 5:28 pm:
Does anybody ever stop to contemplate how many people being asked to pay ever increasing real estate taxes to save the state were not even living in or working in Illinois as the pensions were being negotiated and the state’s contributions over the years were not being properly made? There are not insignificant numbers of these people and they are too rarely considered in the political equation, I think.
- Oswego Willy - Tuesday, Jun 13, 17 @ 5:32 pm:
===Does anybody ever stop to contemplate how many people being asked to pay ever increasing real estate taxes to save the state were not even living in or working in Illinois as the pensions were being negotiated and the state’s contributions over the years were not being properly made?===
You mean all the teachers, fire fighters, police officers, the local muni employees that own homes, that are taxpayers?
Your blatantly blind views of what taxpayers are is noted.
- Say What? - Tuesday, Jun 13, 17 @ 5:33 pm:
I was in suburban Lansing over the weekend. If you wonder why there is a huge out migration from the city, including a fleeing African American population, look no further than the property tax bills and all of the other confiscatory taxes.
Come July 1st, many more people in the Southland will be crossing the Indiana state line to purchase food, soft drinks, gasoline and cigarettes. Zero sales tax on groceries in Indiana.
- Ward Heeler - Tuesday, Jun 13, 17 @ 5:37 pm:
Last night on “Chicago Tonight,” Carol Marin was asking the legislators on the panel what it was going to take for them to rise up against their leadership and beginning to work on a budget. Of course, it was asking for the near impossible, but the fact that the question was even raised was significant.
- James - Tuesday, Jun 13, 17 @ 6:18 pm:
2016 Cook County tax rates were set today by the Cook County Clerk. The overall rate for the entire City of Chicago (not including special service areas) went up 4% over the 2015 rate, from 6.867% to 7.145%. The 2016 Cook County equalization factor, set last month, went up 5% over 2015, from 2.6685 to 2.8032. Taken together, that suggests most 2016 City of Chicago tax bills will be about 9% higher than last year.
Tax rates for the south and western suburbs generally increased, by varying amounts. In these townships, there was no general reassessment in 2015 or 2016, so the tax rate increases are due to a combination of higher levies by school districts and villages, and many lower assessments due to successful 2016 appeals.
2016 tax rates for the northern suburbs decreased from 2015 by varying amounts. Those tax rate decreases averaged about 14% from 2015, and happened because assessed values are up for 2016, due to general reassessment of the northern suburbs. When these rate decreases are combined with the 5% increase in the state equalization factor, northern suburban taxpayers can expect to pay higher taxes in 2016 if their assessed values increased more than 9% from 2015, after appeals. Most northern suburban residential assessed values increased more than 9%–net increases after appeals vary widely and range from 10-40%, depending on location, differences in characteristics and whether or not the owner appealed. So the greatest and most shocking 2016 residential tax increases will probably come out of the northern suburbs. Cook County tax bills will probably be mailed within the next two weeks.
- anon2 - Tuesday, Jun 13, 17 @ 7:03 pm:
=== Exhibit A for Rauner derangement syndrome. ===
Is that the same disease as Madigan derangement syndrome?
- RNUG - Tuesday, Jun 13, 17 @ 7:21 pm:
== Is that the same disease as Madigan derangement syndrome? ==
Almost. One virus has a left handed spiral, the other is right handed. Each attacks different parts of government and society.
- Six Degrees of Separation - Tuesday, Jun 13, 17 @ 7:38 pm:
===Does anybody ever stop to contemplate how many people being asked to pay ever increasing real estate taxes to save the state were not even living in or working in Illinois as the pensions were being negotiated and the state’s contributions over the years were not being properly made?===
Hmmm, I think every state’s just about like ours. Some were born here, some were not. Some are US citizens, some are not. Live and work here, play by the state’s rules. Don’t like it, you are just as free to move, vote, run for office, or otherwise try to change the status quo as the native-born, if you yourself are not one.
- Lucky Pierre - Tuesday, Jun 13, 17 @ 8:37 pm:
Every state is not like ours. Illinois politicians in power for decades have maintained that power by overspending and undertaxing which is a very popular in the short term.
Eventually after they have retired future generations pay the price of their malfeasance.
Kind of like a college football program that goes on probation. The coach leaves and the players are all graduated but the current group of players and coaches has to deal with penalty.
- RNUG - Tuesday, Jun 13, 17 @ 9:50 pm:
== After all the Super Majority Democratic Senate found enough votes to pass it. ==
The Senate and House also passed SB-1 a couple of years back, claiming the need to exercise “police powers” to break the pension contract.
How did that work out at the IL SC? It didn’t.
In fact, Rauner has conceded he can’t change the pensions for the already retired … which is a good chunk of the pension debt. In case you missed it, the IPI also said that!
- lake county democrat - Wednesday, Jun 14, 17 @ 8:28 am:
The only way to get out of back pensions is bankruptcy, and that’s only for the local governments and agencies, not the state. As horrific as the pension crisis is, losing the rule of law would be worse. The state constitution is clear.
What’s stunning is how insensitive the anti-Raunerites are to the effects of these taxes. Median Chicago HOUSEHOLD income is $63,000. You’ve just hit them with a higher sales tax, about to hit them with a beverage tax, been nickel and diming them with red light cameras and other fees, increased their property taxes (or pro-rata rent) by 10% (likely to repeat for years to come), and now you say we simply must take another 2% or so out of their income without making any draconian chances to the status quo (and I don’t just mean the turnaround agenda). You want to know how Proposition 13 like revolts happen? This is how they happen.
- Atsuishin - Wednesday, Jun 14, 17 @ 8:54 am:
My advice is to take the midnight train out of Chicago. Let Oswego Willy and the capitalfax blog pay the taxes they so desperately want.
- Oswego Willy - Wednesday, Jun 14, 17 @ 8:59 am:
===Let Oswego Willy… pay the taxes they so desperately want.===
(Sigh)
I’m sure you feel better saying that. Instead of saying things in a drive-by fashion, look at the mathematical situation, look at the legal remedies, look at the options within the legal remedies and make a thoughtful comment towards those ends, and defend that.
- whetstone - Wednesday, Jun 14, 17 @ 10:54 am:
==So property taxes are just supposed to go up 10% every year to fund unaffordable pensions but nothing is to be done to make the pensions affordable?==
I seem to remember a bill was passed. A lot of reasonable observers argued it was unconstitutional, and they were tarred as kowtowing to the unions.
As it turns out, they were right, and we wasted a couple years on that. If you do think it’s an absolute necessity to cut existing pensions, it has to be based on legal precedent, not rhetoric