Chicago pols approve $23M property tax hike amid pushback

Economists say taxes should reflect national inflation rate, not just Chicago’s

Chicago /
Oct.October 27, 2021 03:56 PM

Lori Lightfoot, mayor of Chicago (Getty Images, iStock)

Chicago homeowners are about to pony up more for property taxes.

A mixed vote by the city council approved Mayor Lori Lightfoot’s $16.7 billion budget, including a $23 million property tax hike, according to the Chicago Tribune. The automatic increase is based on the national inflation rate instead of a local one that some economists say makes more sense.

The budget passed today with 35 of 50 votes in favor. The higher levies are part of a $76.5 million property tax package that includes $25 million to repay infrastructure loans and $28.6 million to assess new properties.

Owners of a $250,000 home can expect an increase next year of about $37 in their tax bills. Of that, about $18 will be tied to the national consumer price index — higher than the $12 that would have come by using a local index. Nationally, prices are rising 5.4 percent, higher than the 4.5 percent in Chicago.

The city’s finance department said the city wanted to sync its inflation rate with how the
Chicago Park District and public school system account for rising consumer prices.

It’s reasonable for the city to use the national rate because Chicago is an international city, said Brad Cole, executive director of the Illinois Municipal League.

Yet some economists said the city should use an index that better represents the change in the cost of living because Chicago is a home rule district. Inflation lags locally because the cost of rent and home prices is rising faster in other cities, said Phillip Braun, a professor at Northwestern University’s business school.

[Chicago Tribune]





    Related Articles

    arrow_forward_ios
    A photo illustration of 213 North Mason Street in Deer Creek, IL (Zillow, iStock)
    ‘Basement House’ in Peoria suburb pending sale after going viral
    ‘Basement House’ in Peoria suburb pending sale after going viral
    The property lies on the South side of Smith Road, between Klein Road and Route 59 (Google Maps)
    Pulte scraps suburban Chicago subdivision after local pushback
    Pulte scraps suburban Chicago subdivision after local pushback
    11 E Walton Street, apt 5500 in Chicago (Redfin)
    Waldorf Astoria penthouse asking $15M comes back on the market
    Waldorf Astoria penthouse asking $15M comes back on the market
    Chicago, Homes, Rise, Stock Market Rewards
    Chicago down payments rise as buyers reap stock market rewards
    Chicago down payments rise as buyers reap stock market rewards
    Smith Road between Route 59 and Smith Road in Wayne Township with James Beifuss and Matt Garling (City of West Chicago, Google Maps)
    Pulte Homes hits roadblock on 266-unit West Chicago project
    Pulte Homes hits roadblock on 266-unit West Chicago project
    Fern Hill's Nick Anderson and render of Gold Coast condos (Fern Hill, LinkedIn)
    Developer plans condo project in Gold Coast
    Developer plans condo project in Gold Coast
    Matt Nagy and 570 Lansdowne Lane in Lake Bluff, IL (Redfin, Getty)
    Ex-Bears coach Matt Nagy lists Lake Bluff home for $5.95M
    Ex-Bears coach Matt Nagy lists Lake Bluff home for $5.95M
    1317 W Wrightwood Avenue (Google Maps)
    Over neighbors’ objections, couple seeks to tear down Lincoln Park home to build rentals
    Over neighbors’ objections, couple seeks to tear down Lincoln Park home to build rentals
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...