The pandemic left the heart of the Loop with vacant offices and stores as workers and customers stayed home, and more people began working remotely. Then, citing the impact of that lost business, the owners of those vacant offices won huge tax breaks from Cook County officials.
The amount of property taxes didn’t get smaller because those taxpayers were now paying less. The taxes were still needed to pay for government services and salaries. So others have had to pay more to make up for that shortfall.
On top of that shift, City Hall and other government agencies have been asking property owners to pay more taxes overall, with total property taxes in Chicago rising from $6.8 billion five years ago to $8.3 billion last year.
That’s a 22% increase in taxes citywide in those five years.
This is one reason municipal officials like thriving commercial and industrial sectors: they contribute to the property tax base of a community. When these properties are worth less, someone else has to pick up the slack. Homeowners do not like rapidly increasing property taxes, if they like property taxes at all.
For residential property owners, the issue is compounded for some because the value of residences has jumped in recent years. With limited new supply and consistent demand for good housing, property values have gone up. Homeowners like this – until property taxes also increase because their home values have increased.
Will residential property owners put up with this and, even if they do not like it, what recourse do they have? Does this mean cities and communities need to put on a full-court press to get office buildings filled or converted?
Legally Sociable 