South Suburban Properties Struggle With Effects of Significantly Higher Property Tax Increases
In 2024, southern townships of Cook County have been hit with the most significant property tax increases in nearly three decades. The second installment of the 2023 real estate tax bills, due on August 1, 2024, showed a median increase of almost 20%, with some areas experiencing hikes exceeding 30%. These soaring taxes could force many low-income residents to either take on debt or risk losing their homes through tax sales if they can’t cover the full amount.
For example, in Park Forest, total taxes jumped from $26.9 million in 2022 to $37.9 million in 2023, a staggering $11 million increase. Hazel Crest saw its tax bills rise from $23 million to $31.4 million, and Harvey faced a $7.4 million increase, bringing its total taxes to $28.3 million. As Cook County Treasurer Maria Pappas told Crain’s Chicago Business, “The south suburbs are the poster child for inequitable property taxation in Illinois, and now it’s worse than ever for homeowners.”
The root of these high taxes lies in the overall tax rates. Taxes used to fund schools, police, fire protection, pension funds, libraries, park districts, and other local government agencies all depend on these revenues. In towns with smaller populations and fewer taxable properties in the commercial, industrial, or residential sectors, tax rates tend to be much higher which leads to fewer taxpayers paying for all of these locally funded services.
Efforts to boost the local economy are underway, offering a glimmer of hope for the future. The Cook County Bureau of Economic Development has teamed up with the Southland Development Authority (SDA), the “Manufacturing Reinvented” program, and the “Cook County Small Business Source.” The Manufacturing Reinvented initiative, launched in August 2022, received an initial $5 million grant from the American Rescue Plan Act. In 2023, the Small Business Source awarded over $50 million in grants to more than 3,000 small businesses, supporting the continued operation of over 10,000 enterprises.
Meanwhile, Cook County Assessor Fritz Kaegi is pushing for a “circuit-breaker” system to help low-income residents by offering rebates on unaffordable portions of their property tax bills. However, details on how this system would work remain unclear. Kaegi does not expect the legislation to be ready for the Illinois General Assembly’s fall veto session in November 2024, and there are lingering questions about how income levels will be verified and whether relief will come in the form of direct rebates or other mechanisms. Implementing this program could cost tens of millions of dollars with no idea on where those “extra” funds in the City’s budget would come from to pay for this plan.
In 2024, Chicago is undergoing its own property reassessment, and residents, especially on the South and West sides, are seeing significant increases in their property values. These higher assessments will lead to increased real estate tax bills in 2025, mirroring the financial burdens currently facing the south suburban townships.
The growing property tax crisis highlights the need for long-term solutions to support vulnerable residents and prevent further displacement in these struggling communities.
