property taxes (Chicago: low income, sales, real estate)

[Funluva]

What is the property tax millage in Chicago?

[emathias]

Originally Posted by Funluva

What is the property tax millage in Chicago?

Property taxes in Illinois in general and Cook County and Chicago in particular are some of the most convoluted in the country. There is no one quick answer to your question.

[Funluva]

thanks, EMATHIAS. I figured as much but was hoping to learn the basic % of tax per assessed valuation. I was considering moving to Chicago.

[chet everett]

The highly complicated property tax calculations in Illinois start with assessements that are not uniform. Cook Co. in particular relies on a system that assesses residential property at smaller fraction of market value than other classes of real estate. On top of that whackiness there is a concept called the "state equalization factor" that attempts to adjust chronic under assessment by slapping a multiplier on assessor valuations. Quite a bit of working out the ol' calculator before you even get to "rates".

The various taxing bodies do not directly set rates, they levy a dollar amount of gross taxes to be spent that falls upon all the properties in their jurisdiction. The County then calculates the total value of all the property and from that determines a rate. Some parts of County have more taxing district upon them than others. Even "special service areas" which can be relatively small to cover things like a localized sidewalk project or "beautification project" can mean significant extra burden on homes that otherwise have identical value...

The history of a property's valuation can vary widely as well -- homes or businesses owned by the same party for an extended period tend to get out of whack with market value compare to properties that change hands more frequently . Additionally there is a curious tendency for properties owned by politicians and their connected benefactors to be under - assessed. There are also several legitimate means to freeze property valuations for the aged, infirm and low income property owners. None of those methods pass on when the property is sold. Huge rapid increases in property values when properties change hands are thus NOT unheard of.

When shopping for a home it makes sense to look at not just the most recent property tax bill of the home but the longer term trend of similar homes covered by the same taxing bodies.

As a rule of thumb many homes can be assumed to have tax bills that hover around 2% of their true market value however there are WIDE variations with homes in areas with gnerally expensively delivered services, lower average home prices and pressure for revenue sometimes having total bills about TRIPLE (around 6%) that and areas where commercial properties carry more of the burden, more fiscally conservative governmental leaders and no real scramble for taxes resulting in bills about HALF (or under 1% of valuation) being a practical bargain for those without special "breaks" in place...

[Funluva]

Thanks Chet for taking the time for all that typing. I just moved from Chicago to Ft Lauderdale and am considering moving back. You've shed a bit of light on my dilemma. I have seen condos advertised in Lakeview, for example, and they list the last property tax paid and have wondered how it was arrived at. Although I'm still confused on how taxes are set, it sounds like being confused is the norm. Maybe I'll just compare square footage and the last bill and look for an average to compare with rates here and elsewhere. Thank you.

[chet everett]

The situation with condos is also complicated by the fact that there are more factors for pricing -- building with very high assessments tend to sell for less than building with very modest assessements, all else being equal. And the funny thing is that because there are so many newer condo buildings "all else" is rarely "equal" -- places high up with view tend to sell for than the EXACT same unit in building that has the same size / style units lower down, places that have better access to amenities like groceries, fitness facilities, and parking tend to fetch more than places that have none of that, places that are attractive to investors because of good rental policies tend to be more in-demand than places that are geared more to resident owners...

[Stechkin]

so how do people deal with high taxes? does it make sense to just buy in the city if u dont care for schools? is there any suburbs with low taxes?

[rparz]

'Low Taxes' is relative.

Almost anywhere in the burbs has lower taxes than the city.


Almost anywhere in the rest of the country has lower taxes than Chicagoland.

[Vlajos]

Originally Posted by rparz

'Low Taxes' is relative.

Almost anywhere in the burbs has lower taxes than the city.


Almost anywhere in the rest of the country has lower taxes than Chicagoland.

Many suburbs have higher re taxes than the city.

[chicagobear]

Highest real estate taxes, highest sales tax, highest gas taxes. So where does the money go?