Revelations from a recent report by Cook County Treasurer Maria Pappas have brought to light an unsettling disparity within the county's property tax appeals system. According to an analysis released by the Chicago Sun-Times, this system has shifted a $2 billion tax burden from businesses onto homeowners between 2021 and 2023, disproportionately affecting Black and Latino residents.
Maria Pappas has pointed out that businesses have managed to receive $25.5 billion in property valuation reductions through appeals. In contrast, homeowners saw only a $2.8 billion reduction, and simultaneously were dealt an additional $1.9 billion added to their tax bills. The most severe disparities were evident in Chicago, where data from the Cook County assessor’s office showed that residential tax bills saw a more than 16% increase, while businesses enjoyed nearly a 20% decrease.
Lower-income communities, particularly those with a majority of Black and Latino residents, bore the brunt according to Pappas's findings. As noted in a WTTW News report, households making less than $50,000 a year faced an average tax bill increase of nearly 10%, a stark contrast to the substantially lower increase experienced by those with incomes exceeding $150,000. Communities like South Deering, the East Side, and West Englewood were hit with some of the largest hikes, ranging from 20 to 25% after the appeals process.
Looking at the frequency of appeals, it's clear there are imbalances in who can successfully challenge their assessments. Approximately 64% of businesses filed appeals compared to just 27% of homeowners. Homeowners in lower-income areas saw an average of 7.3% increases to their bills even after appealing, while the hike was just 5.2% in higher-income neighborhoods. Representative George Cardenas, defending the appeals system, stated, "It isn’t the Board of Review, it’s the system," and emphasized the necessity of appealing for lower taxes until systemic reform is achieved.
Efforts by Cook County Assessor Fritz Kaegi to equalize the approach to commercial assessments have faced obstacles, as the Board of Review frequently sides with commercial property owners contesting valuation determinations, thus lowering their tax obligations. Even as the discord persists, both offices agree on the need for legislative action. Proposals for "circuit breaker" laws are on the table, looking to alleviate property tax pressure for residents with homes valued below $350,000 and earning less than the state median income.
