Aurora owners and Chicago business owners fare badly on property tax return

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The results are consistent with those of previous studies comparing property tax rates, but come at a time of great anxiety for many homeowners: Much like Cook County appraiser Fritz Kaegi is reassessing city properties. from Chicago.

Over the past two years, Kaegi has increased business valuations in suburban Cook County. Many owners of apartments, offices and other income-generating properties in the city fear he will do the same to them, which would lead to big tax hikes next year. Recently released figures for Rogers Park suggest these fears may be justified.

The new study found that the effective tax rate for 2020 – a property’s tax bill as a percentage of its value – was 4.03% for Chicago commercial properties worth $ 1 million. dollars or more, compared to an average of 1.95% for all cities included in the report. Only Detroit was higher, at 4.16%.

Chicago’s tax rate is so high because of high spending by local governments, including Chicago city, county, and public schools, and because the tax system is structured to shift more of the burden. tax on commercial properties, according to the report.

While this is bad news for homeowners, it is good news for homeowners, who bear less tax burdens. Chicago ranks fifth among 53 cities in a measure used to measure preferential tax treatment for homeowners.

Still, Chicago owners can’t be too happy. The city ranks 15th in effective tax rates on mid-value homes. The city’s rate in 2020, 1.54%, was slightly higher than the 53-city average, 1.38%.

It’s much worse in Aurora, which had a 3.25% tax rate, according to the report. The city’s tax rate is so high in large part because local governments in the western suburbs rely heavily on property taxes to fund their operations, according to the report.

Residents of Aurora sick of their taxes and Midwestern winters may fantasize about moving to a low-tax city in a warmer climate. One option: Honolulu, which had the lowest tax rate last year: just 0.31%.


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