* Cook County Assessor Fritz Kaegi in Crain’s in February…
The solution? Achieve predictable, fair and transparent assessments by requiring property owners to submit basic rent and real estate operating income information at the start of the assessment process.
This would require a legislative change: the passing of H.B. 2217, a bill sponsored by House Assistant Majority Leader Will Davis and Senate Revenue Chair Toi Hutchinson, with co-sponsors from leaders in both houses of the General Assembly. H.B. 2217 would give the Cook County Assessor’s Office—and other Illinois counties that choose to opt in—the ability to require owners of income-earning properties to disclose basic rent, real estate income, and expense information. Those who do not comply would be subject to a fine.
Many smaller properties are exempted, including commercial properties with a market value under $400,000; and residential properties with six or fewer units, or with a market value under $1 million.
Currently, income and expense information is required at the point of appeal. The Board of Review takes in this data and uses it to determine a property’s value, one appeal at a time.
The Assessor’s Office is in the business of mass appraisal. If we were equipped to require this data up front, at the start of the assessment process, we would be able to determine market-level rents for every part of the County.
The bill has since been amended.
* Today, Assessor Kaegi’s office tweeted out a thread unlike anything I can recall seeing. Instead of posting the tweets, I’ve copied and pasted the thread here…
We’ve received word the @CivicFederation has released a letter stating its opposition to SB 1379, the data modernization bill. Their letter misstates basic facts and lacks the rigor we would normally expect from the organization.
It’s worth noting the property tax appeals lawyers represent a substantial portion of the @CivicFederation’s board. We have learned that they did not recuse themselves from decision-making on SB 1379.
The Civic Federation states “the bills as drafted do not require data to be made anonymous or to be made public.” This is misleading. The bill’s amendments explicitly state the data may be released to the public and anonymized before its release.
Moreover, the @CivicFederation’s insistence that voluntary disclosure is “a viable alternative” simply does not agree with those who have studied similar measures. In a recent study, return rates on voluntary disclosure were shown to be as low as 10% and only as high as 20%
If we do not pass SB 1379 now and begin collecting this data this year, the most impacted communities will be in the South Suburbs, who will not benefit from this legislation until their re-assessment in 2023.
Assessors across Illinois and the U.S., as well as global professionals who operate in our state like Brookfield Properties’ Retail Group and @BMOHarrisBank, support this bill because it is good tax policy. The @CivicFederation should be able to recognize that.
* More info from this excerpt of a letter Kaegi sent to the bill’s sponsor…
The Civic Federation states “the bills as drafted do not require data to be made anonymous or to be made public.” This is misleading. The amendments that were adopted with bipartisan support in the Senate Revenue committee state explicitly that the data may be released to the public and would require that the data is compiled and anonymized before its release. In fact, to emphasize our office’s commitment to the confidentiality of this data, we added language making it a criminal misdemeanor for an Assessor’s Office employee to mishandle this information – language that mirrors a similar provision that applies to the Illinois Department of Revenue.
In conversations about this bill, the Civic Federation continues to suggest our office should follow a process of “voluntary” data collection and cites King County in the state of Washington as a jurisdiction that follows this practice. This suggestion ignores the fact that Washington state law authorizes assessors to require data production at an assessor’s discretion. We have confirmed this, again, with the King County assessor, John Wilson, who we regularly consult with on assessment best practices. It is unclear if the Civic Federation is suggesting we amend the legislation to give assessors the ability to compel data production through subpoena.
Moreover, the Civic Federation’s insistence that voluntary disclosure is “a viable alternative” simply does not agree with those who have studied similar measures. As New Hampshire’s Assessing Standards Board put it, “Without mandatory disclosure, the ability to have a statistically relevant sampling of information is jeopardized.” In its study, return rates on voluntary disclosure were shown to be as low as 10% and only as high as 20%. In short, voluntary disclosure would barely be better than no disclosure at all.
I’ve asked the Civic Federation for a response.
- wordslinger - Wednesday, Apr 3, 19 @ 4:29 pm:
–Moreover, the @CivicFederation’s insistence that voluntary disclosure is “a viable alternative” simply does not agree with those who have studied similar measures. In a recent study, return rates on voluntary disclosure were shown to be as low as 10% and only as high as 20%–
Volutary disclosure is a “viable alternative” when the objective is to avoid disclosure.
- Annonin' - Wednesday, Apr 3, 19 @ 4:31 pm:
It is always sad when the blowhards hit Reality Street and blowout
- Amalia - Wednesday, Apr 3, 19 @ 4:38 pm:
Fritz Kaegi is very impressive
- Smalls - Wednesday, Apr 3, 19 @ 4:44 pm:
Agree with Amalia. Don’t know if he has some alternative agenda I am not aware of yet. But so far, he is hitting on all cylinders and appears to be one of the best elected officials we have.
- Anonymous - Wednesday, Apr 3, 19 @ 4:48 pm:
The property value should always be determined using an arms length sale if available. Market value based on rental income or other factors allows too much monkey business.
- Anonish - Wednesday, Apr 3, 19 @ 4:49 pm:
It is nice having an Assessor who makes a headline here and it NOT being an ethics issue.
- Cheryl44 - Wednesday, Apr 3, 19 @ 4:59 pm:
Maybe I’m just old, but why is this on Twitter?
- cover - Wednesday, Apr 3, 19 @ 5:09 pm:
Looks like Assessor Kaegi and his staff have really done their homework on this bill - the Civic Fed is going to have to really explain their opposition.
- Former Downstater - Wednesday, Apr 3, 19 @ 5:09 pm:
Fritz slams tax attorneys while raising money directly from the real estate owners. Avoiding the middlemen and women.
- Three Dimensional Checkers - Wednesday, Apr 3, 19 @ 6:05 pm:
I support Assessor Kaegi’s idea, but it is odd to question the Civic Federation’s integrity. Do you really think the Civic Federation’s Board is involved in their day-to-day policy decisions? I would think no. Also, this bill probably is not giving people like Speaker Madigan nightmares. Lawyers will always find something to argue about especially when you have these multi-million dollar commercial properyies.
- Bobby Beagle - Wednesday, Apr 3, 19 @ 6:07 pm:
“Maybe I’m just old, but why is this on Twitter? ”
As a social media platform, Twitter seems to have a disproportionate membership of journalists, political operatives, and other political related activity.
On one hand it’s a very effective way to get the attention reporters/commentators, and on the other the platform is based on quickly spreading information.
It has the ability to put thousands of eyes on a piece of information with minimal work on the senders end, while also having people be able to comment on it/engage in it further.
- Oswego Willy - Wednesday, Apr 3, 19 @ 6:20 pm:
===…it’s a very effective way to get the attention reporters/commentators, and on the other the platform is based on quickly spreading information.
It has the ability to put thousands of eyes on a piece of information with minimal work on the senders end, while also having people be able to comment on it/engage in it further.===
Twitter has ruined more careers than made them.
- Bobby Beagle - Wednesday, Apr 3, 19 @ 6:50 pm:
No doubt about that OW. If you have a strong hand on a position or are looking to punch above you weight in influence Twitter can be very helpful.
If you step in it with a gaffe you just invited that same universe of journalists/operatives/commentators to get a hot take in and brand you to thousands and thousands. It is scary how badly it can go for people based on a bad judgment. It’s a tool that plays right into our best and worst social tendencies.
- Anonymous - Wednesday, Apr 3, 19 @ 7:30 pm:
This is a horrible idea for family farms and their employees. Does anyone seriously think that township assessors in rural areas and gossipy small towns are going to keep this information confidential?
- Scott_CCAO - Wednesday, Apr 3, 19 @ 9:08 pm:
==This is a horrible idea for family farms and their employees. Does anyone seriously think that township assessors in rural areas and gossipy small towns are going to keep this information confidential?==
This was a concern raised in our meetings about the bill over the last several months and one of a few we addressed in collaboration with other assessors on the best way to write this legislation.
Farms are excluded, as are owner-occupied properties. County boards must opt-in outside of Cook to adopt this language. It is a criminal offense to NOT keep the data confidential - for Cook County or any other assessor’s office. It’s anonymized in its collection.
This bill is a very important step to reforming the property tax system. We’re glad we’ve been able to address concerns through the bill’s amendments.
- Scott Smith
Chief Comms Officer, Cook County Assessor’s Office
- Scott_CCAO - Wednesday, Apr 3, 19 @ 9:39 pm:
(”It’s anonymized in its collection” should read “in its distribution” as the information is distributed in bulk on a market level, not as individual properties’ info.)
-S.
- Minnie Pearl Jam - Wednesday, Apr 3, 19 @ 11:49 pm:
Fritz. Dial. It. Down.
We want you to succeed.
But the self-righteousness and anger makes you sound like the new Scott Drury.
- Da Big Bad Wolf - Thursday, Apr 4, 19 @ 9:14 am:
==Fritz. Dial. It. Down.==
==The Civic Federation states “the bills as drafted do not require data to be made anonymous or to be made public.” This is misleading. The bill’s amendments explicitly state the data may be released to the public and anonymized before its release.===
I think Kaegi has every right to be angry about something so blatantly false.
- Anonymous - Thursday, Apr 4, 19 @ 11:46 am:
== But the self-righteousness and anger makes you sound like the new Scott Drury.
Seems to be a trend. Kaegi is suing someone in court over a website made during the campaign.
- Chicago Cynic - Thursday, Apr 4, 19 @ 2:13 pm:
This is bizarre. I love Fritz but he’s flat out wrong on the Civic Federation’s Board and how it works on these matters. If he has an issue with the Civic Federation’s position, he should take it up with their professionals.
- Da Big Bad Wolf - Thursday, Apr 4, 19 @ 3:06 pm:
==I’ve asked the Civic Federation for a response.==
Hmmm. They’re taking their sweet time to respond.
- North Cider - Thursday, Apr 4, 19 @ 3:53 pm:
I like some of what he is doing so far, however Fritz tied Andrea Raila up in court keeping her from canmpaigning while his people attacked her in the press. The appeals court ruled unanimously against Kaegi, but it was too late for Raila.
- PoliChi - Thursday, Apr 4, 19 @ 5:04 pm:
==I love Fritz but he’s flat out wrong on the Civic Federation’s Board==
Agree with this. It’s just false that property tax appeals lawyers represent a substantial portion of their board. Going through their list of board members, and I’m having trouble finding one (admittedly don’t have time to look into them all).