Last year, Chicago lawmakers wanted a way to soften the blow of the city’s recent property tax increases, or at least make it look softer. Singling out the city wasn’t workable, so they got Springfield to pass increases in the homeowners and senior exemptions for all of Cook County.The Chicago Tribune last week detailed the actual results. The broadened exemptions merely shifted the tax burden to to other properties. Many properties were taken off the tax rolls entirely, leaving the remainder to pay the bills. The levy — total taxes raised — didn’t drop. The consequence has been a “perfect storm,” the Tribune says, for many communities already in a property tax catastrophe.The idea to soften the blow sim0ply shifted the taxes to rentals and businesses.
The Tribune profiled one business owner, Tony Sanchez, who owns a paving company. “The Markham property he’s owned for decades has an assessed value of about $511,000. This year, his tax bill topped $86,000 — more than three times as much as he would be paying for a Chicago business property worth the same amount.”
At a tax rate of 5%, the properties essentially become rentals. In seven years, compounding, the some owners will pay the entire value of the property. The result will be a massive exodus of property management companies, out of Cook county. Their tax base will be collapsing. This is likely the reason Rahm will not run for a third term.
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