Study by Cook County Treasurer Maria Pappas Reveals Shift in Property Tax Burden to Homeowners

CHICAGO (WLS) — A new study was just released Monday morning from the Cook County Treasurer’s Office.

The study reveals a nearly $2 billion shift in the property tax burden from business owners to homeowners from 2021 to 2023.

ABC7 Chicago is now streaming 24/7. Click here to watch

It also shows unequal property assessment appeals.

Treasurer Maria Pappas joined ABC7 to talk about the study.

Increasing Cook County property taxes are a constant challenge for many, as inflation also continues to strain homeowners.

According to the Cook County treasurer, businesses appeal more, and they win more appeals.

The Treasurer’s study found because of that, the tax burden, money needed to pay the government’s bills, gets shifted to the homeowner.

“In general, businesses tend to appeal their property tax assessments more frequently than homeowners. Over a span of three years, these appeals resulted in a $3 billion reduction for businesses. Imagine a balloon being squeezed; when $3 billion is alleviated from businesses, it has to shift elsewhere. Consequently, the reduction in business taxes led to an increased tax burden of $2 billion on homeowners,” Pappas explained.

Pappas said her team’s recent study also shows a racial divide regarding how often some groups of homeowners appeal.

“Additionally, Black and Latino communities do not appeal their property taxes as often as their white counterparts. The simplicity is that if these communities are not appealing—which most aren’t—their taxes will inevitably increase,” Pappas stated.

Pappas identified part of the issue as a complex appeal procedure. Businesses, often having more resources, manage the appeals process effectively. Property owners must first appeal with the Cook County Assessor’s Office, followed by the Cook County Board of Review, and finally escalate to the state’s Property Tax Appeal Board.

“Nobody understands it. So they just give up, and they don’t bother to appeal,” Pappas said.

Fritz Kaegi, the Cook County assessor, said it’s not his office, but the Cook County Board of Review, granting most of those commercial appeals.

“But what the study showed is that 90% of reduction is being made on commercial, and the vast majority of those commercial reductions are happening at the Board of Review, about 70% of them,” Kaegi said.

But Commissioner Samantha Steele at the Board of Review says residents can also appeal to them. She also says the root of the issue is that many residential and commercial properties were incorrectly assessed or over-assessed by Kaegi’s office.

“And what he really needs to do is his actual job and get the assessments right in the first place,” Steel said. “He’s not doing the foundation work that’s necessary. He is not out there physically inspecting the properties and ensuring that the information they have on the assessment role is accurate. And he’s taking too broad of a swath.”

The I-Team has reported for years on errors and complaints from people who say they are over-assessed.

“We have 1.9 million properties. We have a couple dozen inspectors. We’re using technology more than ever before. And so we are always tightening up the data that we have,” Kaegi said.

The assessor says he does have the most “extensive field work that has ever been done.”

How to Appeal Cook County Property Taxes

1. A property tax firm can file an appeal on your behalf for a fee. Or, you can file yourself in-person or online with the Cook County assessor. Their website has a guide to online appeals and information about filing a paper appeal form. Typically, you have 30 days after receiving your reassessment notice, to file an appeal.

2. Individual taxpayers represent themselves before the Cook County Board of Review. If property is owned by a corporation or LLC, the property must be appealed by an attorney.

At a Board of Review Hearing taxpayers have the opportunity to explain why their assessment should be reduced. Consider bringing evidence and discussing special circumstances that may fit the argument. For information on presenting a case go to www.cookcountyboardofreview.com/about/archive/how-to-present-a-case. It is not mandatory for taxpayers to attend their hearing. Waiving their right to a hearing won’t penalize the appeal.

3. Finally, if a taxpayer is not happy with the results of the Board of Review, they can bring their assessment challenge to the Property Tax Appeal Board (PTAB). A petition must be filed within 30 days of the board of county review’s decision, or within 30 days of the written notice of the application of final, adopted township multipliers by the board of review. To file your PTAB appeal, go to www.ptab.illinois.gov/filing.html.