THE LOOP — The average Chicago homeowner will see a property tax hike of 13 percent this year — most of it likely assessed in the second installment due Aug. 1, officials said.
Cook County Clerk David Orr released tax rates Monday and found that the average Chicago home, worth $225,000, would see a $413 increase over last year's property taxes, a 12.8 percent increase.
The increase stems in part from Mayor Rahm Emanuel's record $589 million increase in property taxes approved by the City Council last year to cover mandatory pension payments for police and firefighters.
Ted Cox chats about the bills heading to Chicago property owners.
The $589 million was to be phased in over four years, and according to Orr's office, the city's pension levy rose $318 million for the 2015 tax year, paid this year, with the second installment of those bills due Aug. 1.
Chicago's total tax extension — the total amount the city itself collects, including school bonds and library funds — rose 34 percent and topped $1 billion for the first time, rising from $956 million to $1.28 billion. Orr attributed about 60 percent of the Chicago tax increase to pensions. All of Cook County will pay $13 billion in taxes, also a record.
The city was both blessed and cursed as it was also its year to be reassessed. Properties in the city, north-suburban Cook County and south-suburban Cook take turns being reassessed every three years.
According to Orr's office, while the average single-family homeowner will see a 12.8 percent tax increase this year, and the average commercial property will see taxes rise about 10 percent.
Property tax bills go out the next calendar year, meaning taxpayers this year are paying the 2015 bill.
The first installment, due March 1, is for 55 percent of the previous year's bill, or a little more than half. The second installment of 2015 taxes, which Orr's office said would be due Aug. 1, will make up the difference on the total 12.8 percent increase.
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