By: Nick Binotti and Ted Dabrowski
Listen to the article:
When we’ve warned recently about the dangers of a “Doom Loop” for Chicago and other cities because of empty offices space, we’ve cited the Lincoln Institute of Land Policy study that shows Chicago has the highest commercial property taxes in the country. Those taxes are one of several pressure points – including an ongoing crime wave, faltering public transportation, a failing school district, not to mention the continued impacts of working from home – that threaten to send the city into a downward spiral.
Now another tax study, this one by the Altus Group, shows the same: Chicago has the highest effective commercial property tax rate among some of the nation’s biggest cities. Altus Group is a provider of asset and fund intelligence for commercial real estate.
Chicago’s effective property tax rate for commercial properties is 5.37%, the highest by far. New York City came in 2nd-worst at 4.79%. The other eight major cities cited in the study have commercial property tax rates dramatically lower than Chicago’s. In fact, Chicago’s tax rate is over four times greater than San Francisco, Los Angeles, and Nashville’s.
Based on the data in this report, Altus believes office buildings in Chicago are relatively over-assessed and should have lower values in the city’s next reassessment. Unfortunately, any such reassessment of commercial properties will shift the tax burden to homeowners – who are also already paying some of the highest effective property tax rates in the nation.
And that just feeds into the potential for a downtown doom loop.
Appendix
Read more from Wirepoints:
- Chicago’s commercial ‘doom-loop’ could result in a property tax hike on homeowners as large as 22%
- Don’t fall for the “progressive-income-tax-for-property-tax-relief” tax swap referendum
- We must focus on cutting the cost drivers of Illinois property taxes if we’re ever going to deliver relief to taxpayers
- Illinois property tax woes continue: ATTOM says Illinoisans pay nation’s highest rate
- Pritzker’s Illinois: Nation’s worst state to own a home
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
Chicago is still broke, who is getting all of this money?
Chicago’s real estate tax on commercial property has long (for at least 50 years) been higher than comparable cities. But in the past, other taxes were lower, and the financial condition of the City and other local governments was basically strong. Not so any more.
Can anyone here say how taxes compared a hundred years ago, during the City’s growth period?
And our great governor tried passing off his taxes to the taxpayers after he ripped the toilets out from one of his spare mansions
That one reason alone amazed me he got in office! Guess people are not paying attention to the real thieves that put us in this massive debt in this state!!
Chicago’s residential rates are note worthy too.
Say anything negative about prop taxes
And you are guaranteed to get a thumbs
Down. As a naval officer once said, damn
The taxes, full speed ahead.
We are all headed down the same rat hole.
Thanks for the thumbs down, I have never laughed so hard before!
I think the CTU has a number of paid activists monitoring this site. You know, with jobs experience just like our esteemed mayor – cough.