Trending

South suburbs lag behind in tax collection

Costing municipalities $185M in lost revenue

Chicago’s South Suburbs Lag Behind in Tax Collection.
Cook County Treasurer Maria Pappas, South Holland Mayor Don DeGraff and Robbins Mayor Darren Bryant (Illustration by The Real Deal with Getty, Cook County, South Holland, LinkedIn)

The Cook County Treasurer’s office revealed stark disparities in tax collection rates between the south suburbs and the rest of the county.

In the 2022 tax year, municipalities in the south suburbs only managed to collect 86.4 percent of billed taxes owed by residents, the Chicago Tribune reported.  

That pales in comparison to the countywide average of 96 percent, highlighting a significant revenue loss estimated at $185 million, which could be going to crucial services like public safety, education and infrastructure.

Cook County Treasurer Maria Pappas characterized the findings as “doomy and gloomy,” attributing the low collection rates to two primary factors: financial hardship among residents and unproductive vacant land. 

Notably, the south suburbs and south Chicago stand out as the only areas with collection rates below 90 percent. Efforts to tackle the problem include implementing modest tax increases and strategically acquiring vacant land. 

Brad Bettenhausen, an administrative and financial consultant for Tinley Park, cited the village’s success in acquiring delinquent properties to bolster its tax collection rate, which stands at 97 percent. 

South Holland’s collection rate of about 91 percent is also above the south suburban average. Mayor Don DeGraff credited South Holland’s strong community values and stringent property upkeep ordinances for maintaining high property values, which in turn attract residents and businesses. 

Sign Up for the undefined Newsletter

“We’re continuing to work on making sure that people pay their taxes on time, and we’ll help them in any way, shape or form that we can,” DeGraff told the outlet. “But I think a lot of it comes down to a value system.”

However, municipalities like Harvey and Robbins face significant challenges, with collection rates hovering around 50 percent.

Leaders in struggling towns acknowledge the complexities involved in boosting collection rates, citing factors beyond their control, such as state tax laws and limited development resources. Robbins Mayor Darren Bryant said a comprehensive tax collection plan from the state of Illinois is needed.

There’s consensus that increased development is crucial for improving tax collection. Pappas urged state lawmakers to prioritize investment in the south suburbs. Resources are disproportionately allocated elsewhere, exacerbating tensions within the county, she said.

“The problem right now is all the dollars are going to migrants,” Pappas told the outlet, without mentioning specific policies. “All the extra money, it’s going to this migrant situation, which is what’s causing a lot of controversy between African Americans and Latinos. African Americans are saying ‘where’s my end?’”

—Quinn Donoghue 

Read more

Property Taxes Surge By 15.7% In Northern Suburbs
Residential
Chicago
Property taxes surge by 15.7% in northern suburbs
Chicago Braces for First Post-Pandemic Property Tax Assessments
Commercial
Chicago
Chicago’s first post-pandemic property tax valuations coming soon
Alden Affiliate Buys Delinquent Property Taxes in Chicago
Commercial
Chicago
Alden affiliate buys $1.75M of delinquent Cook County property taxes
Recommended For You