Latest news with #BoardofReview
Chicago Tribune
09-05-2025
- Business
- Chicago Tribune
George Cardenas: Property tax burden has shifted to homeowners, but businesses are still in distress
The recent report issued by Treasurer Maria Pappas presents just one part of the property tax assessment system in Cook County — the appeals process. While raising important points about regressivity, the report makes brief mention of the broader context, but for the rising property tax bills, that is where the focus needs to be. To begin with, the assertion that nearly $2 billion in property taxes has shifted from businesses to homeowners through the appeals process neglects the significant economic distress currently affecting commercial properties. The COVID-19 pandemic dramatically devastated the valuation of commercial properties nationwide, particularly in downtown Chicago, resulting in unprecedented vacancies, reduced rental income and a general economic downturn for businesses. As anyone can see, downtown Chicago has dramatically changed during the last four years. There are fewer places to eat, many retail shops on Michigan Avenue and the Loop have closed, and workers have not fully returned. All the above absolutely had an impact on market valuation. As a point of fact, according to the Cook County assessor's office in January 2021: 'The adjustment process (the COVID-19 factor) for the City of Chicago started with an understanding of where current market values stand relative to recent sales. In a sales ratio study of 2018 estimated market values conducted by the International Association of Assessing Officers, many commercial properties were already under assessed when compared to 2018 market sales and therefore further decreases to reflect the effects of COVID-19 were not needed.' Thus, even though commercial properties in Chicago were dramatically impacted by COVID, the assessor's office provided little relief through the COVID factor. Decisions by the assessor's office, such as the ill-designed COVID-19 factor, necessitated careful consideration of the real value of property by the Board of Review. Upon appeal to the Board of Review in 2021, the resulting decreases from the assessor's office increases were justified to reflect actual market conditions. Moreover, the focus of discussion needs to be the other major contributors to property tax increases: the significant growth in property tax levies from various taxing bodies, most notably Chicago Public Schools. According to the Cook County clerk, CPS alone increased its property tax levy from 2014 to 2023 from $2.4 billion to $3.8 billion, respectively. By focusing on appeals, are we missing the primary drivers of property tax increases? Additionally, the disparities in appeal rates among neighborhoods highlighted by the treasurer's report largely stem from inequities in information access and education regarding the appeals process, rather than just the appeals mechanism itself. The Board of Review actively promotes homeowner education and conducts numerous outreach efforts, particularly aimed at underserved communities. Last year, the Cook County Board of Review's 1st District hosted 50 town halls, where the board accepted approximately 7,400 appeals. Pappas' office, as the issuer of tax bills, can assist in this essential role in addressing these disparities by proactively notifying homeowners of appeal opportunities in multiple languages already available through Cook County. The Cook County Board president commissioned a thorough study by Josh Myers Valuation Solutions, titled 'Analysis of Commercial Valuation Practice in the Cook County Property Tax System,' published in December. This comprehensive report recommended improvements including standardizing valuation methodologies, improving data sharing between the assessor and the Board of Review, and enhancing overall assessment accuracy and uniformity. These solutions directly address the core issues within our property tax system, unlike the treasurer's focus solely on appeals outcomes. Lastly, the report raises valid concerns about the regressive nature of the property tax system but offers no practical or comprehensive solutions. The Cook County Board of Review has consistently advocated for reforms to improve initial assessments and ensure equitable outcomes for all taxpayers. Real and lasting change will require collaboration across all county offices, including the treasurer's office, to enhance transparency, fairness and equity in the assessment and appeals processes. We invite Pappas and all relevant stakeholders to partner constructively with the Board of Review in developing and implementing comprehensive reforms that address the root causes of property tax regression and promote fairness for all Cook County residents.
CBS News
05-05-2025
- Business
- CBS News
Nearly $2 billion in Cook County property taxes shifted from businesses to low-income homeowners, study finds
A study from the Cook County Treasurer's Office found nearly $2 billion in property taxes shifted from county businesses to the lowest income homeowners over just three years. The study found property tax assessment appeals submitted by businesses in Cook County caused their collective tax bill to drop by $3.3 billion, while residential tax bills went up $1.9 billion. The study also found the additional tax burden on homeowners fell mainly on low-income Black and Latin homeowners who make less than $50,000 a year, who contested their assessed values at a much lower rate than wealthier white homeowners. Cook County Treasurer Maria Pappas said she has found that most homeowners are overwhelmed by the daily tasks in their lives and so taking actions like appealing your property assessment or taxes are simply not on their radar. Pappas' office said the study suggests current efforts by the Assessor's Office and the Board of Review to standardize their methodology and share date could lead to fewer and smaller small business assessment reductions which could, in turn, reduce the shifts in the tax burden onto low-income homeowners. Her office also suggests outreach to low-income homeowners so they have the knowledge and tools to appeal their assessments.
Axios
05-05-2025
- Business
- Axios
Property taxes hit low-income areas hard
While office tower values shrank in recent years, homeowners — especially in the city's poorest neighborhoods — paid the price, a new Cook County Treasurer's report says. Why it matters: The study helps explain why homeowners and renters have seen their taxes and rents rise in recent years, adding to the city's housing cost burden. From 2021 to 2023 commercial real estate owners saw their property tax bills drop by $3.3 billion, while homeowners took on nearly $2 billion more in taxes. Yes, but: Those years wreaked havoc on the commercial real estate market as remote work slashed demand for office space. So their lowered valuations and taxes aren't a huge surprise. By the numbers: The analysis revealed that business property owners appealed their valuations more than twice as often as homeowners. While business reductions rose to $25.5 billion from 2021 to 2023 (compared with $9.9 billion from 2015 to 2017), assessed value reductions for homeowners declined. What they're saying: The Board of Review"cut $17.3 billion in commercial property values on appeal, turning $22.5 billion of potential growth into an increase of just $5.2 billion," Cook County Assessor spokesperson Christian Belanger tells Axios. The other side: The BOR reduced the assessment because "the Assessor has been overvaluing properties," BOR commissioner Samantha Steele tells Axios. Our "role is to give the taxpayers their due process. … It's time for the Assessor to do the basic functions of the office and get the assessments right in the first place." Of note: An independent analysis of CCAO and BOR actions suggests that both agencies have mis-assessed values, albeit in different county regions. Rich vs poor neighborhoods: Homeowners in the wealthiest neighborhoods were four times more likely to appeal their assessment than those in the lowest-income areas, the Treasurer's report says. Appeal rates in primarily white neighborhoods were 35.5% but 10.85% in Black and 14.06% in Latino areas. The tax burden from appeals increased by about 5% in high-income areas and about 10% in low-income areas. The intrigue: Filing appeals can seem daunting (and we explain how to do it here), but the analysis suggests it can make a difference, citing these two examples: In one Census tract of Gage Park, a low-income majority Latino community where only 5.2% of homeowners appealed, tax bills rose nearly 23%. But in a tract of high-income, majority white North Center, 60% of homeowners appealed their assessment; tax bills rose less than 15%. What's next: Belanger says the assessor's office will be "sharing information and working with the BOR on joint standards for property valuations" to create a more "uniform process."
Chicago Tribune
05-05-2025
- Business
- Chicago Tribune
Appeals system raised property tax bills for Cook County homeowners, report says
Cook County's property tax appeal process shifted $1.91 billion in taxes from businesses onto homeowners over the last three years, exacerbating inequities in the city and suburbs, a new report found. Homeowners' bills grew by a total of about 7% over that span as a result of the shift, according to the latest report from the Cook County treasurer's office, the first to calculate how much shifting burdens have cost on property tax bills. Those increases fell more on lower-income Black and Latino taxpayers, the report found. The report does not draw conclusions about whether those appeals were correct, but does show 'that the county's assessment appeal system works far more to the advantage of business property owners than homeowners, and at the same time favors wealthier white homeowners over lower-income minority homeowners.' It looked at the impact of appeals at the county assessor's office and the three-member Board of Review during the 2021 and 2023 tax years. Though those years corresponded with much of the pandemic, its conclusions echoed similar findings from a Chicago Tribune and ProPublica investigation in 2017 about appeals' impact on assessments. Properties are reassessed every three years. Every year, owners have two chances to knock down their assessments via appeals before the value is finalized: once at the assessor, next at the Board of Review. If they're dissatisfied with those results, they can take their case to the Illinois Property Tax Appeal Board or to circuit court. Owners of businesses have historically been far more likely to appeal. In the span of the study, nearly 64% of commercial building owners appealed, representing more than $100 billion in value. More than 46% of all businesses were 'serial' filers, appealing every year, according to the report. Business appeals 'were particularly successful' in the period of the study, the report found, lowering 'their taxes through appeals by a total of 12.5%,' or about $3.3 billion. Owners that didn't appeal wound up paying for it: Any reduction in assessed value for one property owner shifts the burden onto others. Successful appeals for valuable commercial buildings have a much bigger impact and shift millions in tax burden onto homeowners and other businesses. While overall 27% of homeowners appealed, the study found 'wide variations' in which homeowners filed their own appeals. Just 3.4% of homeowners in West Englewood, a majority-Black and low-income neighborhood on Chicago's South Side, disputed their assessment during 2021 city cycle, while nearly all Loop homeowners — 96% — did so. That could be because assessments dropped in Englewood and went up in the Loop that year as Cook County Assessor Fritz Kaegi rejiggered the office's methodology. In the suburbs, just 22% of south suburban homeowners appealed during that reassessment year, compared with 60% of those in the north suburbs. Homeowners and businesses in lower-income areas were 'hit the hardest,' the study found. 'Homeowners in those neighborhoods were less likely to appeal, less likely to win and, when they did win, received lower overall dollar reductions in their homes' assessed values,' the report said. Appeals led to bills increasing by about 5% for homeowners 'in high-income areas and about 10% in low-income areas, most of which had predominantly minority populations.' The assessor's office said a major reason for appeal rate disparities by neighborhood could be that median bills in wealthier neighborhoods are much higher. In some Chicago neighborhoods, the treasurer highlighted particularly sharp hikes where residents could least afford it. The South Deering neighborhood, which is majority Black and has a median household income below $35,000, saw overall tax bills go up 24.3% following appeals during the 2021 Chicago cycle. So did the majority-Latino Gage Park neighborhood, where median household income is about $50,000. It saw bills go up by 23% that year after appeals. But while all property owners have the right to appeal, Cook County Treasurer Maria Pappas said the answer isn't necessarily for everyone to do so. Rather, the assessor's office and Board of Review need to get on the same page about their data and methodologies so owners trust the assessments in the first place and so reductions for businesses aren't as dramatic, she said. Both offices pledged to do just that in December, after a county report concluded decades of communication failures had helped fuel gaps in how each office approached assessments. That study, commissioned by Cook County Board President Toni Preckwinkle, found suburban businesses were assessed too low compared with their actual sale prices and that appeals to the Board of Review made assessments less accurate. It also found Kaegi initially assessed Chicago commercial properties too high in 2021. But the political reality of reaching consensus is thorny. Board of Review Commissioner Samantha Steele and two board employees with ties to Commissioner Larry Rogers Jr. are running to replace Kaegi in the March primary. Steele and Rogers, meanwhile, are also rivals. 'These two offices are in a war zone, and if they don't stop their war zone, this is going to go on,' Pappas said. 'Can we get to the middle to get to a solution that doesn't hurt people?' Assessments for commercial buildings have been a hot button issue since Kaegi took office. The previous Tribune investigation found high-end downtown businesses had been under-assessed. For thousands of those properties, the investigation found, their assessment did not change 'even by a single dollar,' while for others, their assessments were 'so riddled with errors that they created deep inequities.' Kaegi pledged to fix those issues. The first commercial assessments he mailed were 82.5% higher in the north suburbs in 2019, 55.6% higher in the south suburbs the following year, and up 76.5% in Chicago in 2021. Business owners, believing Kaegi overcorrected, filed appeals, and the county's Board of Review, which disagreed with Kaegi's methodology, often granted reductions. Kaegi's office, in a statement, said the latest report backs up its long-held contention that 'outsized reductions' granted by the Board of Review to big commercial appellants are what is driving the shift. 'By comparison, the tax bill changes due to differences in residential appeal rates are relatively minor. We don't believe the problem of property tax unfairness is solved by pitting homeowners against each other, distracting us from the much more consequential inequities at play,' the statement continued, noting that independent analyses found Kaegi's assessments are more accurate than past years. Rogers, the chairman of the three-member Board of Review, said the assessor's 'flawed valuations' are to blame. 'The buck starts and stops with Fritz Kaegi.' Pappas' study suggests if the two offices standardized their data, they might grant smaller business breaks and reduce the massive shifts from the appeals process. The two previously promised to work together, and she said she hoped the report would help 'nudge' them to collaborate. Until then, the report said low-income homeowners should also be given tools to help appeal their assessments. Kaegi's office, the statement said, participated in more than 200 outreach events for homeowners to help with appeals and exemptions last year.
Yahoo
16-04-2025
- Business
- Yahoo
Tangled rivalries complicate campaigns for Cook County property tax offices
With slating starting for Democratic Party nominations in next year's elections, the top of the ticket remains uncertain, but the contests to run Cook County's vital property tax offices are already shaping up to be barnburners. Gov. JB Pritzker and U.S. Sen Dick Durbin have yet to announce whether they will run for re-election in the 2026 primaries, so many ambitious Illinois Dems are keeping their powder dry for the moment. Down-ticket, hopefuls were already staking their claims at the Cook County Democratic Party's pre-slating meeting Wednesday to vie for three major property tax offices on the ballot in 2026: county assessor and two seats on the county's Board of Review. This year's pre-slating, a gathering of city and suburban Democratic committeemen at the headquarters for IBEW Local 134, is a largely ceremonial opportunity for candidates to tout their credentials. But it also presents the first chance for hopefuls to lay out their lines of attack. Assessor Fritz Kaegi so far faces a four-candidate field in his third bid: a former employee-turned adversary, the nephew of a former assessor, and two candidates connected to one of his fiercest critics. Samantha Steele, who worked for Kaegi in his first term, now seeks to replace him. So does Patrick Hynes, another former employee and the nephew of former county assessor Tom Hynes. Two other people who worked for Larry Rogers, one of Kaegi's loudest detractors, also presented their credentials Wednesday. The party's endorsement, which won't land until later this summer, comes with campaign help — passing petitions, fundraising, and a mass-mailing to prospective voters ahead of the primary in March 2026. Democrats have typically sailed to relatively easy victories in the general election. Kaegi largely self-funded his previous bids for the Democratic nomination. In 2018 he defeated incumbent Assessor Joe Berrios. And in 2022 he beat water reclamation commissioner Kari Steele, who lost despite the backing of many powerful real estate interests. Kaegi loaned himself $500,000 last month. Party Chair and Cook County Board President Toni Preckwinkle on Wednesday asked Kaegi's potential challengers how they would chart a path to victory that could overcome Kaegi's personal wealth. Some said they would seek campaign contributions from property tax attorneys, labor unions or business interests to compete. Assessor candidates sought to flex their property tax expertise while blasting Kaegi's tenure. Several highlighted last summer's Tribune and Illinois Answers investigation into hundreds of properties Kaegi missed, while others criticized his controversial COVID adjustment and general 'unpredictability' in assessments for home and business owners in recent years. Hynes, a longtime employee of the Assessor's Office who is now the assessor for Lyons Township, has been a consistent Kaegi critic since leaving the office in late 2021. During a five minute introduction, Hynes noted he provided information to reporters about many of the problematic properties that undergirded the Tribune and Illinois Answers investigation. He has also helped run a social media account, FritzedAgain, that continues to point out potential assessment errors. 'The current volatility and unpredictability' in the assessment system stresses business and homeowners alike, Hynes said. 'Our commercial investors cannot confidently estimate future property tax costs, which depresses investment, and our residential taxpayers have been subjected to wild swings in assessed values and property tax burdens divorced from the actions of the market.' It was a criticism most Kaegi challengers would repeat. Hynes said he 'has not made a decision' about whether he would accept donations from property tax interests, but 'campaigns cost money… it may be an impossible situation.' Kaegi did not attack any potential challengers at the pre-slating event, and faced only a few questions from fellow Democrats. He ticked off several victories during his tenure, including passage of a bill in Springfield designed to help spur affordable housing, current efforts to allow more seniors to qualify for the county's 'freeze' program, and continued efforts to reduce assessment disparities 'which fall too heavily on our average homeowner.' Kaegi described himself as 'an advocate for the homeowner' and has been pushing for statewide approval of a so-called 'circuit breaker' program to help people pay for large spikes in their property tax bills. Steele faced some more critical, though veiled, questioning, including about a lingering DUI charge dating back to November. Officers arrived at the scene of a crash, where Steele admitted to hitting two cars while driving a Honda that belonged to a friend. According to body camera footage and the police report, officers found an open but corked bottle of wine in the footwell of the front passenger seat. They reported her eyes were 'bloodshot and glassy' and that her breath smelled like alcohol. She repeatedly declined officers' requests, including to take a breathalyzer test, and told them she was an elected official. She eventually went to Weiss hospital after telling officers she hit her head during the crash. Steele kept her drivers license after the arrest because a judge agreed officers improperly filled out some of her arrest paperwork. Her next court date is May 1. Steele acknowledged 'personal challenges' on Wednesday and said she wished 'that no one in this room has to face the public scrutiny' she had, without referring directly to the incident. Still, she argued it 'has nothing to do with the job that I am running for, and nothing to do with the job that I currently hold.' 'I would promise to ensure that industry standards are adhered to,' Steele said, pointing to her 20-year career in the assessment industry. 'I can do this work in my sleep.' In addition to her work in Cook County, Steele separately served as an appointee on the Lake County Property Tax Assessment Board of Appeals in Indiana from 2020 until stepping down in January. Her exit, the Post-Tribune reported, came at the same time Indiana legislators were moving to require state residency to serve on such boards across the state. She runs a property tax consulting firm called Leonor Group, which she says does not have local clients. Steele did not face direct questions about the case, but was asked by 50th Ward Committeeman Bruce Leon to provide 'more transparency about the situation that occurred… from my perspective, character does matter.' Steele told Leon she didn't know 'how much more transparent' she could be and pivoted to discuss increased assessments in Rogers Park. She told the Tribune in a separate Tuesday interview that a pituitary tumor, which has since been removed, impaired her peripheral vision and 'contributed to' the crash. She acknowledged she had a drink at around 3 pm that day, but noted it was more than five hours before the crash. Two of Steele's colleagues on the board — Dana Pointer and Timnetra Burrus — also introduced themselves to the party on Wednesday. Both have ties to the Board of Review's longest serving commissioner, Larry Rogers, who has been in a protracted political tussle with Kaegi and last year pledged to either run for assessor himself or help fund someone who could beat Kaegi. Pointer has worked as Rogers' outreach director and a senior condominium analyst that has defended property tax cases at the state's Property Tax Appeal Board on the board's behalf. Burrus worked for Rogers' for more than 15 years, according to her LinkedIn, before becoming the chief deputy commissioner — essentially the administrator for the board's 170-person staff. Rogers did not say Tuesday which candidate he planned to support. He and Steele have also frequently butted heads. Steele said she would not run for assessor if the party did not endorse her, and that she would instead run to keep her seat on the Board of Review. Two people are running for Steele's seat: Stephanie Mendoza and Liz Nicholson. Mendoza is Evanston's City Clerk. Nicholson is a longtime political consultant and fundraiser. George Cardenas, another Board of Review Commissioner, is also running for re-election. Others that presented at pre-slating were uncontested and well-known to their fellow Democrats. That list includes county board President Toni Preckwinkle, Sheriff Tom Dart, Treasurer Maria Pappas and Clerk Monica Gordon, who first won her appointment to the seat from the same group about a year ago. Democrats also heard from candidates for spots on the Metropolitan Water Reclamation District and judicial seats.
