Cook County homeowners residing in the north suburbs experienced the largest property tax increase in three decades, as per the Chicago Tribune report. The median residential tax bill in the area increased by 15.7% in 2022. A variety of factors contributed to this increase, including a reassessment of home values after the COVID-19 pandemic, elevated school district levies, and the "recapture law" implementation.
Crain's Chicago Business reported that residential property taxes in the north and northwest suburbs rose by $331 million in 2022. Conversely, commercial property taxes in the same vicinity fell by 2.7% or $56 million. This shifting tax responsibility resulted in homeowners bearing a larger percentage of the county's tax load despite an overall property tax growth of 5.4%.
In the county treasurer's analysis, it was determined that the vanishing COVID-19 adjustments directly led to increased property taxes, a booming housing market, and shifting commercial property tax assessment values. Originally, in the pandemic's wake, the Assessor's office postulated a 10% drop in home values due to unemployment which has since been reversed. In combination with a high demand for single-family properties during the pandemic, residential property values have escalated, while commercial values have experienced a corresponding decrease. These combined elements have added to the strain homeowners face in compensating for the property tax difference.
The reassessment of north suburban properties has been a significant part in the growth of property taxes. Cook County reassesses properties on a three-year rotation. The effects of this year's reassessment were larger than anticipated resulting in the most significant increase in 30 years. This abrupt increase stemmed from the recent reassessment but was worsened by the actions of the Cook County Board of Review. This board cut nearly 20% of the total assessed value for commercial and industrial properties, further shifting the tax burden onto homeowners.
Local school districts' levy increases have also led to the upturn in taxes. As the Chicago Tribune points out, larger portions of levy increases are accountable to school districts. These increases amount to $572.9 million across the county. Furthermore, the Chicago Board of Education required an additional $231.7 million, a 6.8% growth compared to last year.
The Cook County property tax increase has significantly impacted homeowners such as Wayne Sherman, a 76-year-old retired salesman, as highlighted by the Chicago Tribune. Though not every homeowner has been hit as heavily as Sherman, who saw a 65% increase in his property's evaluated value along with a 64% hike in his property tax bill, the growing burden is palpable for most homeowners in the north and northwest suburbs.
The long-lasting consequences of this unexpected property tax hike for northern suburban homeowners are only now beginning to manifest. While factors such as the reversal of COVID-era adjustments and fluctuating property values stand as primary contributors, the evolving nature of local government finance and assessment policies have also combined in creating the 'perfect storm' devastating homeowners throughout Cook County.
