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HomeReal EstateChicago property taxes bear too closely on industrial property house owners: op-ed

Chicago property taxes bear too closely on industrial property house owners: op-ed

Supply: Adjusted Median Gross sales Evaluation Ratios for Cook dinner County. Illinois Division of Income, 2019 and 2020 gross sales ratio research evaluating 2018 and 2019 assessments.

Then, in 2020, Kaegi used the pandemic as an excuse to additional scale back residential assessments and shift much more taxes onto struggling companies, this time throughout the whole county. To take action, Kaegi made up evaluation strategies that weren’t sanctioned or used elsewhere within the nation. These evaluation video games have been undeniably inaccurate. When Kaegi began reassessing Chicago in 2021 to his mantra of “companies aren’t paying their justifiable share,” town’s industrial properties have been really assessed the best of all of the property varieties. On high of that, the property tax deck is stacked in opposition to companies by Cook dinner County legislation—after the Assessor units their worth, they’re assessed at 250% the speed of residential and condo properties. That didn’t deter Kaegi from persevering with to wildly enhance industrial property assessments throughout Chicago, nonetheless.

Make no mistake: this isn’t the drained “downtown vs. the neighborhoods” trope. Kaegi’s will increase are impacting your neighborhood retailer, favourite restaurant, hair stylist, and extra. And the double affect of the coronavirus and Kaegi on downtown workplace buildings is unhealthy for everybody. Our workplace buildings drive innovation and progress for hundreds of companies using a whole lot of hundreds of residents from each neighborhood. It’s these companies that pay industrial property tax, and most of them are small companies, even downtown. Whereas these small companies are damage most instantly by the Assessor’s video games, diminishing workplace tenancy additionally impacts hundreds of good-paying, union jobs our business employs throughout each demographic. 

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The extra we push workplace tenants away with larger taxes, the more serious our restoration will probably be for different industries that depend on downtown’s density, too: eating places, retail, cultural establishments, tourism, and even public transit. Decreasing the viability of our industrial buildings additionally disproportionately will increase residential property taxes—due to the stacked system, each greenback of misplaced industrial property worth is $2.50 that should be taxed from residential properties.

Relaxation assured, the big industrial buildings downtown pay the best property taxes within the county—and they don’t seem to be asking for preferential therapy. They do ask, nonetheless, that our critical policymakers transfer past the notion that property tax assessments are a zero-sum sport that pits us all in opposition to one another. We’re on this collectively—and so long as industrial property subsidizes residential property taxes, we’d like tax insurance policies that foster enterprise progress. Enterprise progress disproportionately creates extra property tax income for everybody. Not solely is it the best and sustainable solution to handle ever-increasing residential property tax payments, it additionally will increase our jobs, funding attraction, and high quality of life throughout the whole metropolis.

Farzin Parang is govt director of the Constructing House owners & Managers Affiliation of Chicago.

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