Why Are Some Chicago Homeowners Seeing Higher Property Tax Bills?
Every week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.
Q. Can you explain why Chicago homeowners have seen an increase in property taxes over the past two years?
A. The 2022 budget for Chicago is asking for a $76.5 million property tax increase, but that’s not the only reason local property owners can expect to see changes to their property tax bills.
Mayor Lori Lightfoot’s budget, approved by the Chicago City Council in late October, will mean a $38 increase for owners of property valued at an average price of $250,000, city officials say. The 2022 increase is less than the $94 million addition to property taxes provided for in Budget 2021.
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Some Chicago homeowners may also see higher property tax bills because their homes have been reassessed. The county has been reassessing homes for the past three years, and townships in the city have been reassessed this year. These changes will be reflected in property taxes due next year.
Although commercial and industrial properties are seeing the biggest increases in assessments, many residential homeowners have also seen increases.
Take Chicago North. There, assessed home values have risen a total of 15%, according to a statement released by Fritz Kaegi, the assessor for Cook County, where Windy City is located.
Most single-family homes would have a market value in 2021 of between $920,000 and $1.59 million, according to the appraiser’s office. In 2020, the median sale price for such a home in the area was $1.1 million.
These reassessments are in line with rising property values across the city.
“We’ve seen similar and surprisingly robust real estate trends in North Chicago that we’ve seen in other areas of the city,” Kaegi said in a statement.
Other regions saw smaller increases. South Chicago, for example, saw a 10% increase in total assessments, while Lake Township, which makes up the southwestern part of the city, saw a 2% increase, according to separate statements from the office. Mr Kaegi.
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