8-Dec-20 – Cook County Assessor Fritz Kaegi currently is sending “COVID-19 assessment adjustment letters” to thousands of Chicago property owners, noting that the pandemic has caused a “significant economic downturn and lower property values,” depending on the property’s type and location.

In Chicago, the COVID-19 assessment value reductions average 10 percent. They range from about 7.5 percent in Lake View, Lincoln Park, and Uptown, and nearly 8 percent in Bronzeville, Loop, Old Town, River North, and South Loop. The reductions are about 9.5 percent in Rogers Park and West Ridge, and range as high as 12 percent on Chicago’s South Side.

The assessor also reduced, in the range of 9.3 to 15.4 percent, the assessments on two-to-four-flat apartment buildings in Cook County.

Mayor Lori Lightfoot’s 2021 pandemic budget will include a $93.9 million property tax hike as part of a $1.6 billion real estate tax levy. About $34 million of the real estate tax hike is linked to a future rise in the consumer price index.

The new budget ordinance requires property owners in the future to pay either an annual property tax increase of five percent or an increase based on the consumer price index, whichever is less. The Lightfoot administration says the increases will be approved annually by the Chicago City Council.

Lightfoot has argued the “modest” 1.3 percent real estate tax increase to homeowners is necessary. A bungalow owner with a property valued at $250,000 will see a tax bill increase of $56. But more expensive homes could see increases of hundreds of dollars.

Kaegi’s sweeping COVID-19 assessment reduction move may create the illusion of tax relief, but it may not automatically provide lower taxes next year.

“If everyone in your taxing district goes down at the same rate, you’ll be paying the same taxes,” explained Laurence Msall (right), president of The Civic Federation.

However, crystal ball gazing into the outlook for the expected 2020 property tax hike, payable in 2021, is cloudy, experts say.

“The property tax bill is determined by four factors – the assessment, the equalization factor or multiplier, the tax rate, and the exemptions,” said Michael Griffin, a Chicago real estate tax appeal attorney.

Homeowners should review their exemptions because they can reduce their tax bill if they have the proper exemptions applied to the bill, Griffin noted. The three primary exemptions are the Homeowner’s, Senior Citizen, and Senior Freeze.

The Homeowner’s Exemption recently was increased to $10,000 from $7,000, and the Senior Exemption was hiked to $8,000 from $5,000. Those amounts are deducted from the equalized assessed value of a home to which tax rates are applied in order to determine the individual tax bill.

Also, more seniors can qualify for the Senior Freeze because the Illinois Legislature increased the maximum annual income to receive the freeze to $65,000 from $55,000.

“Every homeowner should review their last tax bill to see if they received the proper exemptions and contact the assessor if the exemptions are incorrect,” advised Griffin (left).

Real estate taxes for 2020 are expected to rise when the second installment of the bill comes due in August 2021. However, predicting a hefty property tax increase this year really centers on two wild cards – the tax rate and the state equalization factor, which can’t be challenged by taxpayers.

The equalization factor, or “multiplier,” is established each year for Cook County to bring property tax assessments in line with other parts of Illinois. The factor is determined by the Illinois Department of Revenue.

The main engine that drives up property tax bills is the amount of money spent by local government. For example, homeowners who read their 2020 tax bills will see the continued increased spending for schools and police, firefighter, and teacher pensions.

Property owners who think they are over-assessed should appeal now, Griffin advises.

Contact the Cook County Assessor’s office to find comparable properties or start the appeal process. The assessor is now concluding appeals for 2020. A taxpayer can file with the Cook County Board of Review and later with the Illinois Property Tax Appeals Board. Or, call Michael Griffin, an expert tax assessment lawyer.