By: Mark Glennon*
Listen to the article (3:40 minutes)
When even progressive Greg Hinz at Crain’s Chicago Business writes about the specter of a “tax revolt,” you know a crisis has been ignored far too long. New tax bills are now on the way to Cook County property owners.
The shock will be devastating for many. Details are in the 2023 Tax Year Bill Analysis released last week by Cook County Treasurer Maria Pappas.
Staggering increases are concentrated in the south and southwest suburbs (those south of North Avenue). There, the median residential bill jumped by 19.9%, to $6,117.
Most stunning of all, in 15 south suburbs, 13 of which have majority black populations, median tax bills are jumping by anywhere from 26% to 122%, shown in the chart.
Most of the rest of Cook County (north of North Avenue) came out much better. In the City of Chicago, the median residential tax bill increased by 2.9% to $3,811. In the north and northwest suburbs, the median residential tax bill increased by 3.2% to $7,234.
The huge increases in taxes for the south and southwest suburbs is a consequence of it being their turn for reassessments, the treasurer’s report says. In general, those reassessments reflect lower values for commercial properties, shifting more of the tax burden to homeowners.
Think about that shift of property taxes from commercial property to residential property. It has mostly been discussed about downtowns, nationally and in Chicago. It’s what’s now widely called the “doom loop.” It means the downward spiral created as big office buildings lose assessed value because of empty space resulting from work-from-home. Lower assessed values mean they pay less property tax, thereby reducing the quality of government services and pushing the tax load to homeowners or other taxpayers. The south and southwest suburbs indicate that the doom loop is not limited to downtown in big cities. Big central business districts get the attention because that’s where the problem is largest and that’s where the available data is concentrated. But the problem extends beyond downtown areas.
That self-worsening doom loop process is particularly acute in Cook County because most commercial property is taxed at 2.5 times more than residential property. A drop in commercial valuations thereby imposes an oversized shift to residential property taxes.
Chicago’s south suburbs have long faced a different form of doom loop that we first wrote about nine years ago. Effective property tax rates then were already exorbitant, often exceeding five percent of true home value. We have long guesstimated that when rates exceed around three percent, a downward spiral ensues. Facing those rates, new construction tapers off and owners don’t make improvements out of fear of higher valuations. The south suburbs were already suffering from that burden and the new increases will be extraordinarily painful.
Many homeowners simply will be unable to pay the higher taxes. That’s already a problem in the south suburbs, as the treasurer noted. “Although the countywide collection rate historically has topped 96%,” her report says, “15 south suburban communities have collection rates below 85%, with five falling below 65%.” We can expect those collection rates to worsen markedly.
This is a sad, sad tragedy for many.
Salute to Cook County Treasurer Maria Pappas. Her office has long been a model of candor and transparency.
*Mark Glennon is founder of Wirepoints.
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 and surrounding suburbs,are run by short in pants Mafia Thugs. Everything thing these Progressive Socialist touch, They Ruin. Look at these Political Hacks. I think the Founding Fathers of this country forgot on e important thing, they should have made it where any one that runs for any political office, can only hold office for 2 terms. Funny how 30 years in office, and there worth millions. Vote them out, or more out of the Garbage Can.
Don’t think it won’t happen to the rest of us. As the article said they were hit this year because of the reassessment schedule. Eventually, every property in Illinois will be reassessed and we will all be liable to pay for staggering shortfalls the government has racked up over the years. Remember Amendment 1 that the majority of Illinois voted for because they believed the media lies. Residents have dug a deep hole they may not be able to escape.
I want the property tax bill to show the website for each taxing body.
I am going to go to local government meetings and beg for lower taxes.
When people cut back on spending then the boards raise the tax rate.
D214 high school property tax went up a lot.
While I commend you for attending local meetings and speaking up, the real issue is how your neighbors vote. If your neighbors vote for more spending they won’t care what individuals at those meetings say. Good luck to you.
It’s your AWFL (affluent white female liberal) neighbors that always vote blue, no matter how. Arlington Heights, the center of D214, is Democrat+30. That’s 65% Democrat to 35% Republican. There’s few conservatives remaining out there any more. And the school district boards and administration tend to attract the freaking weirdos too. Look at the D214 webpage, it’s the largest group of grifting, no good losers imaginable
Checked some of our Des Plaines neighbors’ property tax bills and was appalled: $10k to $12k per year. We had appealed every opportunity and our taxes had made it to $7k last year.
The writing was on the wall – after more than four decades it was time to sell and move on before our property taxes caught up with our neighbors.
As I told my kids, to avoid high PTs, there’s nowhere to hide in the six-county Chicago area. (I’m not including the other eight counties that are apparently now part of the Chicago area, and I know little about them.)
An analysis of market value trends in these communities would be helpful too. I suspect that any increase in property valuations is due to nothing more than the rampant inflation. So basically the county is swooping in to tax the result of inflation, when in reality these communities are in a state of decay and presently in worse shape than the previous tax assessment round. The county is not taxing reality here, they are taxing inflation, which in my book is dirty. They are not taxing values that are truly more valuable due to improving communities, they are re-taxing the… Read more »
That’s not how property taxes work.
Inflation is 26% to 100% in one year?
You are correct that inflation is clouding what’s going on here and aids governments in their endless desire and ability to tax and spend.
for equity hustlers like CTU/Brandon & crew the S & SW Black suburb or Chicago real-state “doom loop” could never ever have anything to do with their “systemic racist” / “40 years of community dis-investment” shtick.
Funny how the top five or so municipalities on the list are often featured as an “ investigative report “ on the news as to inadequate water systems, terrible roads, lack of services etc. Does anyone ever question Taxwinkle as to where exactly all this revenue is going and how it’s being spent?
“I’ve had people tell me it’s the law. So I said, then show me the law. I’ve got property appraisers, tax collectors, county commissioners, city commissioners, administrative directors, the mayors. And nobody has been able to show me any law that says they can do what they are doing. And by law, they have to show you the law, if there is a law.” – Steve Emerson
I know it’s difficult to see it now, but a time is coming when Illinois could be a bargain. Once Illinois is forced to surrender its insane socialist, progressive values and reduced to begging the feds for help, it will be a state with dirt cheap properties and nowhere to go but up. Given my age, I don’t expect to see that happen myself, but you younger folks might keep it in mind. A sound strategy would be to sell now (leave Illinois) and expect a buying opportunity many years from now. To put it another way, sell your $400,000… Read more »
Yes, clouds have a silver lining for those who are willing to look long enough to find it.
Yes, but will the oppressive taxes that ensue the underserved housing, food etc. without ever doing a day’s work still be in place?
Certainly states, cities and neighborhoods go through changes over time. Like you, I don’t have a long enough time horizon to see this play out. I will say, if you sell it today for $400,000 and buy it in 20 years for $200,000, the chance that house resembles anything close to what it does today, is virtually nil. It may not even be inhabitable. People who lose their life savings don’t leave things all nice and pretty.
Agree. If that $400K house is worth $200K in 20 years, few would want to live in that neighborhood and fewer would be willing to spend the years of time and energy to try to turn the neighborhood around.
Spot on Ex. My childhood home in Detroit is now a vacant lot!
And so are both former next door neighbor’s homes and about half of the entire city block. No, you can’t go home again…….at least in Detroit.
Spot on Wimpy. You’ll know that the buying opportunity has arrived when Illinois reverts to a terrority with an appointed governor answerable to the federal government, municipal unions are illegal and no there’s no state legislature.
Yep and in a column over on the front page is an article about Chicago’s pension debt now over 37 billion dollars meaning quite simply despite the tax hikes more money is needed. On the other hand Chicago seems to have plenty of money for new spending programs such as the immigrants so will these tax hikes wake the people up? My guess is they won’t as they have other more important things on their minds such as how much the White Sox’s need a new stadium, naturally at public expense, or the statistics of the Cubs batting line up.… Read more »
True about the $37B debt but I am curious as to the time frame that has to be paid. Right now regardless of funding levels everyone is still getting their pensions. Is the $37B owed over 20-30 years? If there was a cash out payment instead of a monthly pension how much would that cost and what would the liabilities be? Maybe zero?
Hypothetically if all the outstanding mortgages had become due today how many could make that payment and how much is all the outstanding mortgage debt? This is why it is stretched out for 30 years.
Quit Complaining, and Move out. I am. Done living in this toilet.
For years the Chicago and Cook County has relied on real estate taxes from the downtown core and commercial real estate in the county. With the downturn in downtown Chicago real estate property values those tax receipts are way down. If the same thing is happening to commercial real estate in the county the county has two choices. Cut services and government employees or raise taxes. I guess they have picked door number two.
“With the downturn in downtown Chicago real estate property values those tax receipts are way down” Property values going down doesn’t mean the county/city collects less in property taxes. That’s not how property taxes work. If one area goes down it shifts the costs to an area that increased or remained stable. If all of the property values decline then all properties remain the same plus any increase/decrease that the county/city implements. Please note that I’m not insulting you but rather pointing out a fact regarding property taxes that doesn’t conform to your belief. I only mention this as some… Read more »
Very well explained
For once, I agree. These taxing bodies want the increasing revenue they want and they will get it from whomever can pay.
Google street view hasn’t been down a Phoenix side street since 2018.
Define soon? Whenever I hear people claiming that Chicago will go bankrupt soon it lets everyone know they have zero clue about Illinois and Chicago politics. They won’t even let the smaller cities seek bankruptcy. Default? Sure. Bankruptcy? Not anytime soon.
So much anger Fat Slob. Who says I have a pension tied to Chicago? Not sure why I would receive any cut. But you continue to fantasize about others losing their retirement income and I’ll just keep cashing them checks, with a 3 percent annual increase. Maybe hit the gym Fat Slob. We need you healthy so you can continue to pay your taxes. lol
So you chose a username about a fat slob that makes out with other men? Such an odd choice. Then again, maybe it’s your homosexual fantasies about large men. No judgement here Fat Slob. You do you.
Thanks for the entertainment. Get a doll and point to where RNUG touched you. lol
Mark, why are you allowing them to talk like this? PPF is always insulting people on here.
Follow the thread John. I give what I get. My first comment wasn’t insulting and I only responded to Fat Slob’s temperament. If you believe Chicago will go bankrupt anytime soon then you haven’t been paying attention. It’s even been discussed on this site that it would be an asset less bankruptcy if it was even allowed. That’s not name calling or an insult but rather an assessment of facts.
Actually, I do think Chicago will go bankrupt. But you need to let things go when people disagree. Your homophobic comment is childish and toxic. Mark does a poor job of watching this board.
How was my comment homophobic? I merely pointed out the attack that Fat Slob made and suggested there may be underlying reasons to his attack. I also stated I hold no judgement if that’s the case. You seem to be directing your anger at the wrong person. Also, it’s fine if you think Chicago will enter bankruptcy anytime soon. I don’t and have stated that many times along with supporting my argument. Please note John, I have not called you any names even though you falsely accused me. I have defended myself against false accusations. I would think a site… Read more »
You’re in no position to be criticizing insults given the name you have chosen and what you just wrote. Please pick a different name to use and replace the insults with substance. And clean up your language like in the comment that was blocked or you get banned entirely.
Pension Cuts is such a spammy no life loser Mark. I mean, if his wife was hot he surely wouldn’t waste all his time on this board, right?
I wasn’t spamming you. I merely asked you a question to define soon as well as offering a counter opinion. You happen to be one of the commenters that can’t handle people with different opinions and immediately go to name calling. You are truly living in an alternate universe if you believe I’m spamming.
Enjoy the pension cut.
Final warning.
Focus on the growth rate of Chicago property taxes. In 1982 Chicago’s total prop tax levy was $395.9 million. In 2023 it was $1,734 million. Property taxes grew 3.63% per annum over over that 41 year period (1982–2023). Chicago’s inflation grew 2.63% pa. In short, taxes grew 1% faster than inflation for 41 years annually. But the growth rate increased (and declined) at varying speeds over that span. From 1982 to 2014 property taxes grew only 2.45% per annum, while inflation rose 2.69% per annum. For that 32 year period Chicago prop taxes rose slower (-25 bps)… Read more »
Your analysis is very interesting. Like so many governmental units in Illinois, the kick the can philosophy has played a key part in this mess. What were the unfunded liabilities over the same time period? How much money was generated by selling off assets to delay raising taxes? I’m not asking anyone to provide the information, but the combination of bad decisions has resulted in an absolute disaster. These residents got a real shock, and it’s not going anywhere but up.
Thanks for a smart perspective.
In Cook County you really don’t own your property; you rent it from the government.
I would put it this way: You own an out-of-the-money option. Your interest is subordinated to your mortgage and the first lien of property taxes in amount that’s huge and growing at unpredictable pace. Your option pays off only if appreciation somehow exceeds those senior interests.
Imagine investing in options where you and all the other investors get to vote your best interest to make that out-of-the-money option move to in-the-money. Instead the other investors don’t think a return on investment is the most important goal and vote differently. If you continue to make such an investment knowing this about your peer investors then you certainly own the outcome. Everyone says they want government to be more efficient and run their budget like a business yet these “investors” don’t run their own portfolio in a similar manner.
Yup, voters own the outcome.
Everyone wants more from government,nobody wants the bill. No matter who promised the pensions someone is owned it. The politicians
Did not pay into it and lied to us. That being said the pensions are still owed to people.
That’s your sharecropper ‘Equity Illinois Style’ at work and has nothing to do with your “systemic racist /community dis-investment” shtick. Hitch-up that mule and gets to work we gots heroic guaranteed pension millionaires to pay
Once your mortgage is paid, then I like to think of the property taxes as cheap rent. You got live somewhere and rents are through the roof.
Unfortunately, most homeowners have to pay the mortgage, property taxes, insurance and maintenance and the total expense of home ownership in Illinois is becoming unaffordable.
Totally.
we bought a home back in 2015 as rent was going upwards of close to ~$1600/mth vs ~$800/mth on property tax, but, now, the rent stays in Hoffman Estates to ~$2k/mth, but the property tax has increased close to $1300/mth now in 2024. this is 25% increase in Rent vs 55-60% increase in property tax !!! seems all going to pay for illegal immigrants being settled down by the cheap labor lobby to reduce corporate daily labor workforce wages. people are forced to sell out, and move to rent again or move out of the state altogether !!!
If you live in one of these suburbs there probably isn’t much disposable income to begin with, and with Bidenflation, even less. You can’t get blood from a stone. These suburbs are going to have to cut services, some deeply, when those taxes don’t get paid.
If/when many residents of an area simply can’t pay the higher taxes, that will be a signal to everyone in Illinois. It will signal the beginning of the end game. Like you said, service cuts can be expected, but also delayed maintenance, and ever higher taxes on those that still do have the ability to pay. That is when many Illinois residents will realize they waited too long to get out. As they seek to sell their homes, they will find few buyers, and those lucky enough to sell will take a huge financial loss. Illinois hasn’t yet reached the… Read more »
Some of these southern suburbs are already in really bad shape. They can’t withstand any significant service cuts without dire consequences. Your grim outlook is, unfortunately, quite an imaginable scenario. I remember many years ago driving through East St Louis and seeing grown men walking in the streets in the middle of a weekday.
Well where have you been. I have worked all throughout Chicago for 40 years. There are grown Adults everywhere you look, hanging out on the streets. Monday through Sunday. Collecting there welfare checks.
75% of my property tax goes to schools. Was 67% perhaps ten years ago. Not sure what portion of the south suburbs property taxes go to schools. If similar to mine, any government cuts are not going to help that much. It is the schools that need to to have drastic cuts.
Damn right. Goes to the schools, and 80 Percent can’t read write or do math at Grade Level
That statistic is very misleading is several ways.
It is absolutely the schools, they’re like vampire squids sucking the economic activity out of communities. There’s just so little commercial activity in most of these areas to whack so residential gets hit the hardest.
But who will these south suburban residents vote for? Are there even any Republicans on the ballots in these districts? With the new slating law, it doesn’t appear there is really any choice whatsoever in ‘our democracy’.
Not many and the Spring “Dirty Trick” the legislature played with House Bill 2412 will probably make it impossible for the GOP to slate any Republican Candidates. Madigan may be gone, but things in Springfield are still run the same.
The goons really do not like the truth.
Yep, they don’t like us reading Ill.gov but its all in there. Its not mis-information.
When my dad passed about 15 years ago, we sold what was our home in Park Forest to a woman to whom my heart is now out. A good person, my mom became friends with her. I don’t know how folks like her will be able to afford this.
Or instead of bankruptcy, other people buy their home that they can no longer afford and continue to pay the property taxes. They factor in the high property taxes and make a lower offer to balance out the monthly payment. We have some of the highest property taxes and yet real estate continues to rise. Sure we were told it was going to decline by 20 to 30 percent by now by our all knowing commenter but it just isn’t happening that way. It’s almost like people choose to live in the area based on other factors than taxes. Who… Read more »
It’s not just the taxes—home ownership is quickly becoming unaffordable. The costs of repairs, insurance, and utilities are now exceeding mortgage payments. Add to that Bidenomics inflation on food, medicine, health care, and transportation, and home ownership is becoming impossible for many. Those on fixed incomes are at risk of losing their homes. I remember Klaus Schwab, founder of the World Economic Forum (WEF), said, “You will own nothing and you will be happy.” Could this be part of the lefts long term plan middle class America?
https://wirepoints.org/south-and-southwest-chicago-suburbs-to-be-hammered-by-massive-property-tax-increases-wirepoints/#comment-374305