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Assessor blames property tax hikes in part on Board of Review

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Cook County Assessor Fritz Kaegi said as Chicago property owners look to get their first tax bills based on new valuations. published the report The city’s homeowners found they were shouldering more tax burdens this year compared to last year, and held the review board accountable.

As a result, homeowners’ tax bills will stay the same or increase, he says.

“Review board write-downs returned a significant portion of Chicago’s valuation back to homeowners, reducing the tax burden for commercial property owners,” the report said.

It further argues that if a final evaluation had been conducted by Kaegi’s office, “the final percentage of the tax burden on homeowners would have been lower.”

Valuations are important because they, along with amounts imposed by taxing bodies such as school districts, determine the amount of tax a property owner pays. In general, the higher the valuation, the higher the tax. Property taxes are also a zero-sum game. When homeowners reduce their combined share of all valuations, businesses, including large multifamily homes, bear more of the burden, and vice versa.

Kaegi and members of the review board have been arguing throughout his tenure, including who should be responsible for this year’s property tax delays. After months of delays, as his 2021 reassessment in Chicago begins, here’s the bill for his second installment with potential stickers his shock. Coming online this week I will mail it by December 1st.

A review board is where a property owner who is dissatisfied with an appraiser’s numbers can claim that their property is undervalued and reduce their final bill. Commercial property owners can allege depreciation, citing increased costs, below-market rents, and vacancies.Their owners complain that Kaegi has unfairly raised their ratingThe three board members have often agreed, reducing the overall impact of his office work in recent years.

However, according to analysis, this was Kaegi’s first year in office, and their actions largely erased them.

In an emailed statement, review board spokesman William O’Shears said the investigation, which he called “a report that wasn’t my fault,” was a testament to the Cook County assessment. ignoring the reality that it continues to make a number of serious mistakes inObvious reference to the problem of ‘property’ COVID-19 Relief When improper exemption It was later fixed. If not addressed by a review board, the Illinois Property Tax Appeals Board, or the Cook County Circuit Court, these mistakes will leave property owners paying the price, the statement continued.

The statement also blamed Kaegi for delays in this year’s tax bill, saying there were ongoing issues of timeliness. “Assessor Kaegi was late last year and behind schedule again this year, putting schools, libraries and local governments at risk once again,” the statement said.

There are several institutions other than Kaegi for creating property tax invoices, but Kaegi’s office is the first step.

Kaegi’s 2018 election campaign found that his predecessor contributed to an unequal tax burden, with homeowners bearing more of the tax burden than commercial property owners, according to Tribune and ProPublica investigations. It was spurred in part by the fact that it became Since then, he has changed office valuation practices, driving up the value of large commercial properties such as hotels, offices and multifamily homes.

While bargaining won re-election this year After defeating the first enemy Backed by commercial real estate interestsIncumbent commissioner Tammy Wendt is replaced by Aldo. Samantha Steele replaces George Cardenas in 12th place and Commissioner Mike Cabonalgui. Longtime Commissioner Larry Rogers Jr. will remain on.

Kaegi’s firm last year put the total valuation of Chicago real estate at $47 billion, up from $36 billion in 2018. According to Kaegi’s calculations, residential property accounted for his 46.2% of its value, while commercial property accounted for his 53.8% share.

However, after the review board’s decision, “the results of the evaluator’s work were partially overturned,” the report notes. After valuation, the total valuation came to his $40.5 billion. Residential real estate now had his 52.8% of its share, while commercial he fell to 47.2%. “These results have significantly reduced non-residential property valuations, shifting much of the city’s valuation to homeowners.”

The rise in homeowner share is due to a significant reduction in downtown valuations, home to some of the largest and most valuable commercial properties in the county.Successful appeals for these properties could shift millions in taxes to other property owners“The review board appeal reduced residential valuations by 1.6%, but reduced non-residential/commercial valuations by 24.4%,” the report said.

Other factors influence tax bills. These include “multipliers” set by state revenue departments, tax exemptions and tax reliefs that reduce the taxable value of real estate, and tax increase districts (TIFs) that freeze certain areas of the tax base to increase tax rates. For non-TIF areas. Many high value neighborhoods in The Loop, Fulton Market and Lake View are covered by TIF.

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