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Cook County Effective Tax Rates Climb 2007-2016

by Bob Tivnan, CMI, Chicago, February 2019

 

The effective property tax rate for businesses in Chicago and surrounding Cook County communities from 2015 to 2016 has stabilized.

 

Nevertheless, the rates are dramatically higher than they were a decade ago, according to a new report by the Civic Federation for the ten year period of 2007 through 2016.

 

Double-Digit Increases

 

Effective property tax rates translate the rates on property tax bills into rates that reflect the percentage of full market value that a property owed in taxes for a given year. The Civic Federation Report estimates effective rates for Chicago and 28 other selected municipalities in northeastern Illinois. Of the communities selected for the study, 12 are in Cook County (including Chicago).

 

Between tax year 2007 and 2016, (payable in 2017, the most recent year for which figures are available) the effective tax rate for businesses has increased by double and in some cases triple digits. The largest increases were reported in Chicago Heights (up 117.8%) and Harvey (up 106.4%). See chart at the end of this report.

 

Only an Estimate

 

Effective property tax rates should be regarded only as estimates for two reasons:

 

1.

There are multiple property tax rates within each municipality, and the effective rate calculated in this report is representative of only one of those tax rates.

2.

The effective tax rate calculations utilize information on the median level of assessment within a given geographical area. While a property is likely to be near the median level of assessment, the actual level of assessment for any given property could be greater or lesser than the median.

 

It is also important to recognize that even when the effective tax rate falls; it does not necessarily translate into decreased tax liabilities. A property owner whose property is appreciating in value may experience annual property tax increases despite a decreasing effective tax rate.

 

To read the full report, click here.

 

Effective Commercial Property
Tax Rates in Selected
Cook County Communities

Change 2007-2016

 Chicago ...................................

63.6%

 Elk Grove Village .....................

71.1%

 Arlington Heights .....................

43.7%

 Glenview ..................................

63.1%

 Evanston .................................

47.3%

 Schaumburg ............................

65.6%

 Barrington ................................

50.3%

 Elgin ........................................

50.3%

 Harvey .....................................

106.4%

 Chicago Heights ......................

117.8%

 Orland Park .............................

74.9%

 Oak Park .................................

99.1%