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An inevitable property tax hike for Chicago

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Illinois

* Greg Hinz looks at the various budget promises made by both Chicago mayoral candidates and concludes…

Ergo, after we see what each man can get out of Gov. Bruce Rauner—Emanuel’s list looks far more likely to me than Garcia’s—we’re back to the one revenue source that is absolutely within the control of the city: the property tax.

I can hear the screaming already. But for those who are upset, I would point you to a recent study by the Civic Federation about how, relative to property values, Chicago homeowners pay a third less than those who live in Evanston, barely half of what they get charged in Schaumburg or Oak Park, and half or less of what homeowners are dinged in Elgin, Aurora, Buffalo Grove and Joliet.

Either Chicago property taxes are going up, at least somewhat, or the city is going down. It’s that simple.

* From the Civic Federation…

This annual report compares effective property tax rates in the six-county region of northeastern Illinois between 2003 and 2012. Effective tax rates for nearly all selected communities rose between 2011 and 2012, the most recent year for which data are available. Among the 12 selected Cook County communities, the Civic Federation found Harvey had the highest effective tax rate for residential properties at 8.87% in tax year 2012, while Chicago had the lowest residential rate at 1.84%.

Residential property tax rates in Chicago have risen by more than 30% since 2003, while all other selected communities in Cook County have experienced residential property tax increases of at least 55% over the ten year period. Commercial property tax rates also increased in the selected Cook County communities between 2003 and 2012, ranging from an increase of 4.1% in Evanston to an increase of 61.1% in Harvey.

Emphasis added for obvious reasons. The full report is here.

posted by Rich Miller
Tuesday, Apr 7, 15 @ 9:20 am

Comments

The Chicago rate is way low in comparison to the collar counties. If they need more money for police and schools, they can bring up their own tax levels to pay for it.

Comment by DuPage Tuesday, Apr 7, 15 @ 9:28 am
Among the city dwellers I know, they seem prepared. They view this as inevitable now.

Comment by A guy Tuesday, Apr 7, 15 @ 9:31 am
A Guy - Inevitable? How is that possible when your guy Bruce promised to freeze property taxes?

Are you saying he was lying?

Comment by Anonymous Tuesday, Apr 7, 15 @ 9:40 am
Anyone analyzed the real $ impact per this http://tax.illinois.gov/localgovernment/propertytax/NewMaxRates.pdf?

Comment by Real Impact? Tuesday, Apr 7, 15 @ 9:49 am
Will Governor Rauner “leverage” something, something? rigged career politicians, something, something, cut every single thing for the voters, something, something…

Don’t worry, the Owl Sandack will propose something, something, Uihline, something…talking point…(pause)…Raunerbot talking point… something.

To the Post,

It’s one thing to be against taxes, it’s another to deny revenue is needed, and it’s another to handcuff yourself, and others, with limited avenues, to “leverage” poor governmental budget decisions. Other than that…

Show me logical avenues, with legitimate reasons why they can pass legislative bodies (City Councils, Leguslature), then you have my attention.

Sonny wants to win, go to the mattresses, but what is the governmental end game that has an avenue to get to that Ebd game?

“Who” knows, maybe an Owl?

Comment by Oswego Willy Tuesday, Apr 7, 15 @ 10:05 am
=== Anonymous - Tuesday, Apr 7, 15 @ 9:40 am:

A Guy - Inevitable? How is that possible when your guy Bruce promised to freeze property taxes?

Are you saying he was lying?====

Reread Anonymous: the “city dwellers” view it as inevitable. Has everything to do with Rahm and his predicament. This one’s not about Bruce. But for you I imagine everything is. Thanks for stopping by and adding…nothing. Not even a name. Scram.

Comment by A guy Tuesday, Apr 7, 15 @ 10:15 am
Isn’t property assessed differently in chicago?

Comment by foster brooks Tuesday, Apr 7, 15 @ 10:15 am
- A Guy -,

Bruce Rauner has repeatedly said freezing property taxes was an agenda cornerstone, so… it’s more than fair to ask/say if it’s, as you say…

===Among the city dwellers I know, they seem prepared. They view this as inevitable now.===

These city dwellers felt Rauner was lying to them?

How large of a sample do you have if you are the city dwellers’ spokesperson…

Comment by Oswego Willy Tuesday, Apr 7, 15 @ 10:21 am
- view it as inevitable. -

As Rauner’s biggest shill you ought to assure them that he won’t let it happen. He promised, repeatedly, to freeze property taxes.

Comment by Anonymous Tuesday, Apr 7, 15 @ 10:22 am
Residential property in Cook County is assessed at 10% of market values since 2010 (used to be 16%). The rest of the State is 33% of market value.

Comment by archimedes Tuesday, Apr 7, 15 @ 10:24 am
When the numbers demand it for a legally balanced budget, tax changes will occur. Right?

Comment by walker Tuesday, Apr 7, 15 @ 10:25 am
===How large of a sample do you have if you are the city dwellers’ spokesperson…===

Only a dozen or so from the Easter gathering. Big difference is; all of them were hugely opposed to it, now they’re resigned to it. It’s not a scientific poll Willy, just a vastly different position from these folks who had a different view until very lately. One of the positive (?) things about the Rahm/Chuy debates is a realization that property taxes will have to be looked at. All of them pay far lower taxes than I do in the burbs. The other positive from them was the elimination of a slew of Red Light cameras. All of them view that as a tax. Small focus group Willy. I never suggested I did a large poll. As the Title of this blog entry suggests; A local tax hike is inevitable in the City. I was merely agreeing with that sentiment.

I doubt anything the Governor thinks or feels about it will affect what the Mayor does. This might even be the one exception to Property Tax freezes since they are proportionally taxed so much lower than many others.

Comment by A guy Tuesday, Apr 7, 15 @ 10:39 am
===I doubt anything the Governor thinks or feels about it will affect what the Mayor does. This might even be the one exception to Property Tax freezes since they are proportionally taxed so much lower than many others.===

The Governor stated, time and time again, property taxes shoukd and need to be frozen.

Again, you make an assumption here, so are you saying Rauner lied, because, the facts, rates, numbers, percentages, nothing…not one thing changed…but you are saying Rauner’s position “may” change”. Um, ok, lol.

Comment by Oswego Willy Tuesday, Apr 7, 15 @ 10:52 am
Didn’t check with Rauner on this Willy. Just read the post.

Comment by A guy Tuesday, Apr 7, 15 @ 10:58 am
Wait til the SB-1 case gets decided in favor of the retirees. Then the CPS district will have to address the pension underfunding issue they keep trying to ignore. Since the state already did a normal cost shift to Chicago decades ago with extra money via the formula, it probably won’t be with more state school aid money; it will be local property taxes.

Going to be a lot steeper increase than even the “resigned” people think required to save Chicago. I think one of the deciding issues today will be who the Chicago voters think will raise their taxes the least.

Comment by RNUG Tuesday, Apr 7, 15 @ 11:08 am
===Didn’t check with Rauner on this Willy. Just read the post.===

Hmm.

======I doubt anything the Governor thinks or feels about it will affect what the Mayor does. This might even be the one exception to Property Tax freezes since they are proportionally taxed so much lower than many others.===

How do you kbiw what the governor thinks then? You didn’t check with him, and publicly, the governor wants a property freeze…the Governor said so. Said it.

Comment by Oswego Willy Tuesday, Apr 7, 15 @ 11:15 am
Emanuel said people will leave Chicago if property taxes are raised. It’s a tough one. I support it if it will prevent Chicago from going into junk bond status.

Comment by Grandson of Man Tuesday, Apr 7, 15 @ 11:24 am
Chicago property taxes are too low. Period. Daley should have raised them but chickened out. Rahm should not have promised not to raise them and attacked Chuy on this.

How about we just be honest with voters and explain that prop taxes need to go up but it will be gradual and not too much.

Comment by Chicago Cynic Tuesday, Apr 7, 15 @ 12:07 pm
Guy, why is Rauner’s promised property tax freeze not relevant to the discussion? Or did you just forget about that phony promise?

Maybe you can ask around, then report back on “the word on the street,” as you’re inclined to do.

You must continue to be amazed that the “people you talk to” always have the exact same viewpoint that you do. Kind of like those perfect quotes John Kass always gets from his anonymous “inside sources” that ratify his point of view.

Comment by Wordslinger Tuesday, Apr 7, 15 @ 12:28 pm
“Chicago homeowners pay a third less than those who live in Evanston…”

Socialistic Evanston is one of the most poorly managed municipalities in Illinois. Treasurer Maria Pappas even listed its shortcomings. So don’t argue taxes needed to be raised because there is another city that is mismanaged and inept elsewhere.

Comment by Upon Further Review Tuesday, Apr 7, 15 @ 12:37 pm
UFR, “socialistic,” that sounds scary. What does it mean in this context?

I wonder if there’s any relationship to Evanston’s property tax rate and all that exempt property wasted on silly things like universities, private schools, hospitals, parks, etc. in such a small municipal footprint?

Comment by Wordslinger Tuesday, Apr 7, 15 @ 12:59 pm
===Wordslinger - Tuesday, Apr 7, 15 @ 12:59 pm:

UFR, “socialistic,” that sounds scary.===

C’mon, you’re from Oak Park, how could that sound scary? lol

Comment by A guy Tuesday, Apr 7, 15 @ 1:24 pm
Guy, what do you mean by “socialistic?”

Comment by Wordslinger Tuesday, Apr 7, 15 @ 1:29 pm
Not my word, Word. It was UFR’s. Maybe it’s a contraction of socialism and scholastic. Gotta go to the source. It ain’t me.

Comment by A guy Tuesday, Apr 7, 15 @ 1:45 pm
A city income tax is fairly common for major cities across the country.
I assume that’s illegal here — another example of how Illinois pols protect the rich.

Comment by Anon Tuesday, Apr 7, 15 @ 1:54 pm
With the median sales price for homes in Harvey IL, December 2014 through March 2015, at just $44,000, a property tax rate of 8.87% doesn’t sound so bad. Where else would minimum wage qualify you for a mortgage to buy your own single family house? Police, fire, schools, roads, and government provide vital and worthwhile services. They have minimum costs that have to be funded. The homeowners are the primary beneficiaries. Harvey is the poster child of affordable housing!

Comment by Bob Tuesday, Apr 7, 15 @ 1:54 pm
@ Wordslinger:

Since Abner Mikva and Jan Schakowsky gained sway in formerly Republican Evanston, the city’s unofficial nickname is “The People’s Republic of Evanston.” The name is a spin on Red China’s official name. Under its enlightened government many businesses have left Evanston which is no longer a preferred location for Illinois based corporations.

While you are correct about the tax exempt properties, the university predated the establishment of the city by about a decade or so and its tax exempt status was clearly part of its charter.

Comment by Upon Further Review Tuesday, Apr 7, 15 @ 2:15 pm
Property values are not increasing as they had, so governments dependent upon tax revenue will need to increase taxes in order to meet increasing costs, just to keep up.

Rauner’s claim that he will freeze property taxes imagines a world different from the one we know. We have a governor who don’t understand what is obvious to the rest of us.

This is a problem for him - and because he is the current governor - us, as well.

Comment by VanillaMan Tuesday, Apr 7, 15 @ 2:35 pm
From Wikipedia:

Since the late 20th century, because of Evanston’s activism and often left-of-center politics, it is sometimes humorously (or sarcastically) referred to as “The People’s Republic of Evanston”.

Comment by Upon Further Review Tuesday, Apr 7, 15 @ 2:43 pm
UFR, I was curious as to what you meant by “socialistic.” I thought you had a serious point for a second.

Comment by Wordslinger Tuesday, Apr 7, 15 @ 2:50 pm
my understanding of the history of Cook county taxes was residential property taxes were held low and offset by higher industrial/commercial rates. Now that we have driven so many companies out of town we have to drive the residents out.
Also this being Chicago, if you make

Comment by jeffinginChicago Tuesday, Apr 7, 15 @ 2:56 pm
Sorry for the cutoff last sentence finishes

Also this being Chicago, if you make less

Comment by jeffinginChicago Tuesday, Apr 7, 15 @ 2:58 pm
@Wordslinger:

I have sat through several City Council meetings in Evanston. Not advisable for those who value their sanity. The Economic Development (”Crony Capitalism”) Committee wastes millions of dollars on useless developments and, oftentimes, allows the recipients of multi-million dollar loans to skip town without repaying the city. Witness the Demptster/Dodge shopping center owner who recently sold the property.

Comment by Upon Further Review Tuesday, Apr 7, 15 @ 6:41 pm
UFR, somehow I didnt equate dreary village board meetings with Maoism.

No lack of gran bourgeoise choosing to invest their capital and make their lives in Evanston. Check out real estate prices if you don’t believe me.

C’mon, man. That “socialistic” dog whistle is Rush Limbaugh stuff to imply that those with a different political viewpoint are commies and un-American.

Like Mikva and Jan S? You might not like them, but you know better.

Comment by Wordslinger Tuesday, Apr 7, 15 @ 10:02 pm
I argued on a Good Friday that Chicago property taxes are too low http://www.chicagotribune.com/news/opinion/zorn/ct-property-taxes-chicago-emanuel-rauner-garcia-perspec-0405-jm-20150403-column.html

Comment by Eric Zorn Wednesday, Apr 8, 15 @ 1:05 am
Good thing you’re calling it out or it might go unnoticed.

Comment by A guy Wednesday, Apr 8, 15 @ 10:41 am