Chicago City Council’s passage of the $12.8 billion budget, which includes almost $100 million in property tax increases, adds to the burden on property owners in communities already struggling during the COVID-19 pandemic. Renters and their housing providers, who have suffered through months of no income, also will feel the pain of this unnecessary tax hike.
Illinois REALTORS®, speaking on behalf of thousands of housing providers, strongly disagrees with Chicago Mayor Lori Lightfoot’s contention that a property tax increase in 2021, which will increase at the same rate as inflation for each subsequent year, was actually what Chicagoans wanted because it provides “stability and predictability.”
In fact, Illinois REALTORS® Deputy CEO Jeff Baker notes: “By targeting property owners and housing providers to cover the costs of additional government spending, this budget’s property tax increases will end in more housing instability and less affordability for many in Chicago.”
Property taxpayers in the city of Chicago not only pay the city’s property tax but those of various other taxing bodies (i.e. Cook County, the public schools, the park district, the forest preserve, etc.). In the last 10 years alone, Chicago’s property taxes have increased overall by 115%. For residential taxpayers they have gone up 164% and that has been without a mandatory, annual increase written into the City’s levy.
There are over 500,000 rental units in the City of Chicago. The Mayor’s property tax hike poses a substantial obstacle to affordable homeownership and renting, as housing providers are forced to pass the increases on to renters, some of whom have already suffered months without income.
“At least half of the landlords in the Chicagoland area are small, mom-and-pop landlords that do not qualify for federal and state stimulus programs or other relief measures,” Baker says. “While restaurant or retail owners and employees across the state have been able to respond to mitigation efforts with reduced operations and assistance from business interruption grants and enhanced unemployment benefits, landlords have been told to stay open and bear the full cost, but do not expect payment for your effort,” Baker said.
Illinois REALTORS® is a voluntary trade association whose members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the association works to protect the rights of property owners in the state by advocating for state and local legislation that safeguards and advances the interest of real property ownership.