Did you know Chicago property owners are now expected to pay an automatic annual tax increase on their real estate?
Here is a description that came to Practical Chicago from an aid in one of the Alderman’s offices:
“The annual increase is linked to CPI or 5 percent, whichever is lower. The City of Chicago portion of your overall property tax bill is approximately 24 percent. So, the annual increase associated with the City would be CPI, not to exceed 5 percent, on roughly a quarter of the overall bill.”
The example examined while researching this matter, as of January 14th, 2021, had an estimated market value of $697,850 and an assessed value of $69,785. The total 2019 tax bill was $14,889.57, which represents a 170.07% increase over the total 2000 tax bill of $5,513.13.
This tells us that Chicago property owners have already been paying their share. Now, on top of the large increases already registered, there is no longer even the possibility of deliberation. Automatic increases have been baked into the cake.
The Administration has assured aldermen the yearly increases must be approved by the City Council every year. But the ease with which Illinois government officials heap new taxes on us does not suggest there will be much debate on the matter.
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