Every property owner in Chicago wants to pay less in property taxes. They also want taxes to be fair and predictable. The real estate investment community was alarmed by the increases in proposed assessed value in the first portion of the County to be reassessed by newly elected Assessor Kaegi. The changes in assessed value and the uncertainty involved in City of Chicago reassessments due in 2021 for taxes payable in 2022 was believed to have a chilling effect on investor interest leading to a call to review the potential tax impact or incidence of the new practices when applied to the City of Chicago.
This study—the result of a collaborative effort with the Chicago District Council of the Urban Land Institute, the City of Chicago, and the Cook County Assessor’s Office—constructs a hypothetical scenario of what fair assessment and taxation might have looked like and how it might impact different types of properties. The scenario is based on conditions in 2018, when Chicago was last reassessed, in an effort to provide insight before Chicago’s 2021 reassessment.