* Cook County has a little over 40 percent of the state’s population, so it’s economic health is very important. Property taxes, particularly commercial property taxes, can play a big role in that health, or lack thereof. The county commissioned a study to take a look at its property tax system. The commercial system was looked at first. The full study is here. More info is here. From a press release…
The Cook County Property Tax (PTAX) Reform Group, in collaboration with Josh Myers Valuation Solutions, has released a comprehensive study on commercial property valuation practices in Cook County. The study focused on the processes, practices and outcomes of commercial valuation by both the Cook County Assessor’s Office (CCAO) and the Cook County Board of Review (BOR) and includes a Sales Ratio Study to measure the current system to industry standards. This study highlights significant issues with current property tax assessment practices and offers actionable recommendations to improve equity, fairness and predictability in the Cook County property tax system. […]
The study finds the commercial assessment process does not meet industry standards per the International Association of Assessing Officers (IAAO). The study identifies challenges that impact the fairness and uniformity of commercial property assessments. It finds that inconsistent valuation methods between the CCAO and BOR combined with a lack of data-sharing practices, contribute to substantial discrepancies in property values and assessments. Furthermore, the study found that commercial properties are frequently underassessed in Cook County, particularly in the south and north suburbs, and that high value properties tend to benefit more so from this trend.
In addition, the study recommends several steps that can be taken at the county level to better ensure consistency and fairness in the assessment and appeal processes, including:
• Adopting standardized valuation methods across offices;
• Establishing improved data-sharing protocols to reduce discrepancies in assessments;
• The CCAO increasing their participation in the appeals process to enhance fairness and collaboration; and
• Implementing a robust sale validation process to improve the accuracy of property values across the county.
* Cook County Board President Toni Preckwinkle was on WBEZ recently and summed up another part of the problem…
We have a system, unfortunately, that benefits tax appeal lawyers.
More on that particular aspect…
The challenge we’ve had is that in our system, lower valued properties were over assessed, so they paid more than their fair share of burden, and higher value properties were under assessed and paid less than their than their fair share of the burden. And part of that is that people who have high value properties are more likely to appeal, and in the appeal process, especially at the Board of Review. The overwhelming majority of the people who appeal get some relief. Sometimes it’s substantial relief. I think the statistic I remember is that 80% of the people who come before the Board of Review get a reduction in their taxes.
So when you have a system that’s driven by appeals, there’s inevitably going to be inequities because people without resources,are less likely to appeal. It requires, you know, legal defense, and those who, of course, who are more privileged, have those resources and can appeal.
- Canvasser - Tuesday, Dec 17, 24 @ 11:09 am:
“We have a system, unfortunately, that benefits tax appeal lawyers.”
This would be a highly persuasive argument, had it been made under the tenure of Joe Berrios, who, for all of his faults, kept residential assessments low by throttling up commercial and letting the BoR sort it out on the back end.
- MM - Tuesday, Dec 17, 24 @ 11:29 am:
Looking forward to yet another property tax task force!! /s
- Sox Fan - Tuesday, Dec 17, 24 @ 11:29 am:
Name another jurisdiction in the country where the assessor takes no role in defending values. No wonder these attorneys are so succt
- Dupage - Tuesday, Dec 17, 24 @ 11:37 am:
Cook County taxes are already much lower than the collar counties.
- Chicagonk - Tuesday, Dec 17, 24 @ 11:47 am:
Good luck going against a system designed to extract money from property owners. I remember when our condo board appealed - you hire a connected law firm, they appeal, and they keep a good-sized portion of the savings when they are successful.
- TheInvisibleMan - Tuesday, Dec 17, 24 @ 11:52 am:
If people in many counties could be bothered to read, there would be riots in the streets.
In my county(not cook), while residential assessments will change every single year, commercial property values are lucky to be changed every 4 years and many aren’t even changed that often. Almost every county has a GIS portal where anyone can look at this for themselves.
But who ever reads the tax details of commercial properties in the towns they live in when their residential property taxes are changed? Hardly anybody, and that general lack of reading by the public is perfectly fine for everyone in the position of making those decisions.
You don’t need to pay a lawyer to be curious about these things.
“If people think getting an education is expensive, wait until they figure out how expensive not getting one is.”
- Socially DIstant Watcher - Tuesday, Dec 17, 24 @ 11:53 am:
Anyone following the Madigan or Burke trials will not be surprised, but good on the president for pushing to change this.
- All the Way - Tuesday, Dec 17, 24 @ 12:18 pm:
Chris Kennedy turned his campaign into a focus on the Cook County racket of rigged property tax appeals. This has been going on for decades.
- Amalia - Tuesday, Dec 17, 24 @ 12:51 pm:
do we think Samantha Steele will resign on her own? or someone who supported her will get embarrassed enough to push her to resign? her participation in the work is suspect AND she is doing similar work for an entity in Indiana. all that alone would be an issue let alone that impaired driving charge etc.
- Skeptical - Tuesday, Dec 17, 24 @ 12:53 pm:
This same report found that the Board of Review’s valuations were more accurate than the Assessor. Isn’t accuracy the point?
Funny thing is I have never heard Preckwinkle say a word about the fact her budget has increased by 300% ($3B to $9B) in her tenure or the fact that the City’s has gone from $12B to $17B since COVID.
Property taxes have doubled in a decade. That is not the fault of tax lawyers. It is the fault of do nothing reckless spending.
Not mentioned in any of the analysis of this study or issue, generally, is the fact that tax appeals are about due process. The President sneers at the entire process with such condescension and complete lack of regard for the property rights she wants to trample by reducing appeals. She wants taxpayers to live in a world where the govt tells you what your property is worth, you pay the taxes on that basis, and cover your eyes, ears and mouth when interacting with the tax man.
Every day there is a new story in this City or state about why people can’t trust or rely on government. Just look at the IDOT news today. But President Preckwinkle wants taxpayers to shut up and just pay the tab as indicated by the gov’t.
Maybe the policymakers in charge ought to start by confronting the fact that taxpayers do not trust Illinois govt and maybe that’s part of the reason there are so many appeals?
- City Zen - Tuesday, Dec 17, 24 @ 12:54 pm:
==80% of the people who come before the Board of Review get a reduction in their taxes.==
In other words, four out of five times those properties have been assessed incorrectly.
Toni just wants everyone to accept her expensive errors.
- Rich Miller - Tuesday, Dec 17, 24 @ 12:57 pm:
===In other words, four out of five times those properties have been assessed incorrectly===
Not necessarily. They’re apparently using different data sets.
- Big Dipper - Tuesday, Dec 17, 24 @ 1:17 pm:
==Toni just wants everyone to accept her expensive errors.==
Last time I checked the assessor was independently elected.
- Aaron B - Tuesday, Dec 17, 24 @ 1:21 pm:
@TheInvisibleMan I doubt your county is the same as mine but I’ve noticed the same thing in my non-Cook County IL county. Just this morning I attended a Board of Review in my county to try to reduce my assessment but I don’t have much hope.
In my county, any non-residential property basically never has their assessment change at all. I’ve been spot checking commercial/industrial properties and most of them so far are virtually the same from 2008 through 2023. Looking more specifically at my city, the property taxes collected by the city has gone up 14% from 2018 to 2023. Commercial/industrial property owners are paying 15% LESS in 2023 than they paid in 2018. Residential homeowners are paying 39% MORE than they were paying in 2018.
How can residential property values continue to increase but that has zero impact on commercial/industrial properties?!
- Anonymous - Tuesday, Dec 17, 24 @ 2:32 pm:
I wonder why reports like this don’t speak of the ability of Cook County property owners to appeal their assessments to the State Property Tax Appeal Board under the bill sponsored by State Rep. Maureen Murphy.