Cook County Tax Collections are at Highest Delinquency Since 2012

The Cook County Treasurer’s Office has reported a concerning statistic: only 95.1% of the property taxes billed for tax year 2023 have been collected as of September 1, 2024 which is a month after the payment due date for the second installment 2023 real estate taxes.

This figure, though seemingly high, reveals a deeper issue when we consider the context—collections are down about 1.3% from the same period in the prior year for 2022 real estate tax bills, marking the highest delinquency rate since 2012.

The number of property owners who have not paid their full tax bills a month after they were due amounts to 195,845 property owners, a 13% increase from the prior tax year, raising alarms about the financial pressures many residents are facing.

The impact of these delinquencies is not evenly distributed across Cook County.  The south and southwest townships of Cook County had the lowest collection rates in large part to the excessive high local tax rates in those townships due to the scarcity of commercial and industrial property tax revenue.  For instance, Ford Heights tops this list, reporting the lowest collection rates of 31.4%, while the Village of  Robbins and the City of Harvey fared only slightly better, with collection rates of 50% and 52.2%, respectively.

The Treasurer’s Office attributed these low collection rates, in major part, to Cook County Assessor Fritz Kaegi’s 2023 triennial assessment increases in the south and southwest townships of Cook County where the median residential property tax bill rose 19.9%, marking the region’s highest percentage increase in nearly 3 decades.

Cook County Treasurer Maria Pappas highlighted the tough choices many homeowners are now forced to make, stating, “Many south suburban residents saw their tax bills jump thousands of dollars this year.  A lot of homeowners had to choose between paying their property taxes on time or buying medicine, food and gas.  Now their homes may be at risk.”  This sentiment encapsulates the tough reality faced by many residents, where property taxes are not just a fiscal obligation but underscore the challenges faced by communities in these areas, where high tax burdens can exacerbate financial strain on already vulnerable populations.

The Treasurer’s Office also placed some blame on this added delinquency of real estate taxes to the short time period between final annual tax bills in 2023 and 2024 because 2023 real estate tax bills came out historically late with the second installment due in December.

As the Cook County Treasurer’s Office navigates these challenges, the future remains uncertain. The current delinquency rates serve as a wake-up call for local policymakers and community leaders to explore solutions that address the root causes of these financial burdens. Initiatives could include reviewing tax assessment methodologies employed by the Assessor, providing more resources for residents facing financial hardship, and improving communication regarding future tax obligations.