Do you live in the City of Chicago? Suburban Cook County IL?
Brace yourselves, homeowners - REAL ESTATE TAXES ARE GOING UP, for the Second Installment, 2008 of the Cook County Real Estate Tax Bill, with payment due December 1, 2009.
What? This does not surprise you, despite the fact that property values across Cook County - the county which includes the City of Chicago - have declined over 25%, in many neighborhoods and suburbs, within the past 18 months.
It appears a political stalemate on a Cook County Assessment Cap, enacted several years ago and since repealed, is the biggest culprit. Likely, this month's semi-annual real estate tax bill, due in mailboxes within the next week, will reflect a tax increase in excess of 10%, some considerably higher,in certain areas.
Cook County Tax Assessor James Houlihan, and Chicago Tribune Reporter Bob Secter in last Monday's Trib, chronicles the story.
Back in 2004, the flaming-hot real estate market was driving property values skyward, and taxes along with it. Lawmakers in the IL State Capital of Springfield imposed a 7% cap on real estate tax assessment increases for residential property owners that year - a move that was soundly criticized by the owners of commercial, investment, and industrial properties, who made of the difference caused by the residential tax reductions.
Under heavy pressure from commercial real estate owners, and residential investors, the IL Legislature began rolling back the cap in 2007 - the cap will be completely eliminated across Cook County for Real Estate Tax Year 2010, and taxes due in 2011.
Assessor Houlihan fought the rollback in 2007. At that time, however, no one foresaw the steep recession to come, and the price implosion for most residential and commercial property. No one predicted what was then considered to be the unlikely outcome that tax bills might rise, while the values of the underlying properties themselves would fall.
Few would have seen the resultant thousands of Chicago and Cook County IL Homeowners now falling behind on their monthly mortgage payments - or, worse, heading to foreclosure and loss of their homes.
The phase out of the the assessed value caps is also hitting different areas differently, as different parts of Cook County have been re-assessed at different times over the last three-year assessment period.
For the 2008 Second Installment Real Estate Tax Bill, some city neighborhoods closest to Lake Michigan will see nominal tax increases, while others will see increases in the double digits. One City of Chicago Neighborhood abutting O'Hare International Airport may actually see real estate tax bills fall this payment cycle, due to the difficult-to-comprehend Cook County Triennial Reassessment Cycle.
Citing some examples, Houlihan sees a median 46% tax bill increase in the West Side of Chicago Neighborhood of West Garfield Park - an area struggling of late with high numbers of foreclosures, and an increasing rate of property abandonment. The median increase in the Englewood Neighborhood on the South Side of Chicago - 25%. In President Obama's Kenwood Neighborhood, near the University of Chicago, also on the South Side of Chicago, the median expected rise in tax bills - 9%.
On the other hand, the tony Chicago Neighborhood of Lincoln Park, on the North Side, shows only a median 3% real estate tax increase. Lakeview, the Neighborhood which includes Wrigley Field, is predicted to have modest 2.1% median tax increase.
Cook County IL Suburbs are not immune from the wild likely tax bill variances!
The Real Estate Tax Bills in the Western Chicago Suburb of Franklin Park will jump by as much as 20%. Nearby Schiller Park - 18%.
The Chicago Suburbs of Skokie and Elmwood Park - in the Northern Assessment Zone of Cook County - will see median tax jumps of 13 and 12% respectively. Chicago Suburbs further south will see less of a tax jump. South Suburban Chicago Heights will see a median tax bill DROP of 3.1%. Alsip Tax Bills will have a median increase of 2.8%; La Grange Park bills - up around 2.5%.
The Chicago Suburb of Northlake straddles the Cook County Northern and Southern Assessment Zones. In this community, those living north of North Avenue will see a median tax increase of 20.9%. Those living below that major arterial street - only an 8.7% median jump in tax bills.
Confusing? Thought so?
See Secter's story for more detail, as well as links to heat maps showing average Real Estate Tax Bill Changes in the City of Chicago, and surrounding Cook County IL Suburbs.
Any money in your wallet? Come the December 1st due date for Cook County IL Real Estate Taxes - there will be less of it!
Ugggghhh!
Here's a link to our post today via BlogChicagoHomes.com.
DEAN MOSS & DEAN'S TEAM CHICAGO
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