North Cook News

Ted Dabrowski and John Klingner said it is becoming more and more apparent that homeowners will bear the brunt of local government’s search for tax revenue in the wake of the COVID-19 pandemic.

However, a Cook County Assessor’s Office spokesman said that may be a premature conclusion.

In a June 26 Wirepoints article, Dabrowski and Klingner said Cook County Assessor Fritz Kaegi and county officials across the state would look to homeowners for tax dollars with a decline in commercial assessments due to the economic downturn.

“Illinois homeowners can count on higher property taxes next year to be one of the many negative outcomes of COVID-19,” the article stated. “Commercial property assessments are expected to drop due to the consequences of the coronavirus and that’s going to leave residential property owners holding the bag.

“The lockdown has left many businesses and commercial properties with reduced or no income for months, bringing down the economic value of their properties,” the article stated. “Many owners can be expected to appeal their property assessments to reflect that reality. Commercial and office space in downtown Chicago and other suburban areas will also see their assessments drop as businesses shrink their footprint going forward.”

This would leave local governments with two options: Reducing spending or adding to the tax burden for Illinois homeowners, who already pay the second-highest property taxes in the nation.

Kaegi has said he plans to reassess all property in the county due to the pandemic. Normally, one-third is assessed each year.

Kaegi, elected on a reform ticket, took office in December 2018 and said he will use a more accurate assessment procedure that would increase the value of commercial and industrial properties.

But with commercial and industrial productivity down due to the COVID-19 pandemic, and businesses now realizing they don’t need as much space with employees working at home, governments may once again look at homeowners as a reliable revenue stream.

Cook County Assessor’s Office Deputy Assessor and Chief Communications Officer Scott Smith said Dabrowski and Klingner were a bit presumptuous in their conclusions.

“The Wirepoints article makes several assumptions that are predictive in nature,” Smith told North Cook News. “At this point, it’s too soon to predict what the overall effects of this will be, including the impact on tax bills for residential homeowners.”

If Kaegi follows through on a pledge for increased transparency made in a Feb. 18, 2019 essay written for Crain’s Chicago Business, the answers should be clear.

“The world’s leading institutional investors view the commercial assessment system in Cook County full of risk and uncertainty. The globalizing real estate market is deterred by the idiosyncrasies and opacity of our system. 

“This has real economic consequences. Uncertainty hurts lending and leasing terms, resale prices, and investment activity. As a result, investing in Cook County requires a higher premium to enter our market due to this additional risk. This is why investors pass us by time and again. 

“The solution? Achieve predictable, fair and transparent assessments by requiring property owners to submit basic rent and real estate operating income information at the start of the assessment process.”

This was written a year before the pandemic swept across the globe. Will Kaegi maintain his resolve for openness in assessments, and if so, what will that mean for homeowners?