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Even though some jurisdictions in Illinois have lowered their rates, taxes are still rising for business property owners in Cook County (Chicago).

The Illinois General Assembly voted in mid-October to extend a key property tax break for homeowners, shifting the tax burden even further to commercial and industrial taxpayers.
 

Residential Cap Stays

A law passed in 2004 (SB 2112) was set to expire this year. It gave homeowners an exemption of up to $20,000 to limit the annual growth of their taxable assessed value to 7%.

State lawmakers approved continuing the cap for the next three years. The new levels move the exemption up to $33,000 for this fall’s residential tax bills. The relief will be phased down to $26,000 and $20,000 in the second and third years.
 

Based on Cook County’s property classification system, industrial properties are assessed and taxed at 125 percent higher than the residential rate.

It’s even worse for commercial owners, who are assessed and taxed an average 137.5 percent more than homeowners.

Gov. Seeks Permanent Tax Caps

The General Assembly’s vote on the residential tax cap overrides Gov. Rod Blagojevich’s plan, which would have raised the residential exemption to $40,000 and made it permanent.

In a press release, the governor said, “I am asking the General Assembly, on their own schedule, to reconvene before the end of the year to restore the property tax caps they just voted to take away. If they fail to do that, then it is my intention to call them into special session by mid December to get it done.”

Either plan will be a win for the homeowners at the expense of business taxpayers in Cook County.