Following a deep-dive investigation by the Chicago Tribune and the Illinois Answers Project, Cook County Assessor Fritz Kaegi's office has corrected nearly half a billion dollars in taxable real estate value on the county rolls, spurred by the revelation of hundreds of misclassified properties. Initial findings showed a pattern of undervaluation due to overlooked new construction and significant property improvements on at least 620 properties for the 2023 tax year, a portion of which was found to be severely misclassified, wrongfully assessing mansions as vacant lots in certain instances.
Despite initial dismissals of the findings as insignificant relative to the whole, with claims that they had little bearing on the broader tax implications, Kaegi's office took tangible steps to rectify the situation by launching an audit and updating their process. According to a statement obtained by the Tribune, spokesperson Christian Belanger noted, "These changes are central to our ongoing work to modernize our operations, make our own work more efficient, and ensure that the property tax system is fair and accessible for all Cook County residents." Records indicate that the office has corrected the classifications of 491 properties flagged by the investigative reporting.
However, as of last week, 129 properties with identified errors from 2023 remain unaddressed. Delays from the Cook County Board of Review and uncooperative local governments have presented hurdles in the correction process. According to an interview with Scott Smith, Kaegi’s chief of staff, the issue of catching new construction has been historic, and solutions involve multifaceted approaches, necessitating people, process, technology and, "it wasn’t something you could solve within our first year." This information was shared with the Tribune.
The reevaluation of incorrect assessments saw the addition of approximately $489 million in taxable property value for 2024, accounting for about 17% of all new construction value in the county from the previous year. Kaegi's office responded to the issue by auditing 27,000 permit records, primarily from the previous three years, and bolstering its data integrity and in-person property check teams. Smith mentioned to the Illinois Answers that while most permits were correctly logged, "We picked up some things that we think we might not otherwise have," acknowledging the need for further assessment changes and in-person checks.
Homeowners affected by the reassessment process have faced challenges, with some being issued back tax bills, which under state law, are not allowed if the assessor's office already had pertinent construction evidence on file but failed to reassess. This rule was not consistently followed, as documented by the investigation that flagged 55 homeowners for back taxes, despite having permit information overlooked by the assessor. The discrepancy led to a review by Kaegi's office of the back tax bills for errors. To prevent future mistakes, a dozen new staff members have been added to the data integrity team as well, with an additional three hires planned for this year, as mentioned by an office spokesperson. Mayor Jada Curry of Lynwood noted the importance of accurate property assessments for local governments and the broader tax burden balance, as reported by the Tribune.
