Chicago Suburb Seeks State’s Help Amid Low Tax Collection

Suburban Harvey’s finances are going from bad to worse.

A new report from the Cook County treasurer’s office shows

The south suburb has the third-lowest property tax collection rate in Cook County, underscoring the city’s deepening fiscal emergency, the Chicago Tribune reported.

The county treasurer’s office reviewed 2023 property tax payments one year after bills were sent out, capturing late payments and adjustments. While overall countywide collections have largely rebounded from early shortfalls, rates of payment in many south suburban towns remain “perilously low,” the office found.

Harvey billed $57.9 million in taxes last year but collected only $33.75 million — a 58.29 percent rate — leaving more than $24 million unpaid.

Only Ford Heights, at 39 percent, and Robbins, at 57 percent, fared worse. Neighboring suburbs such as Dolton, Chicago Heights and Calumet City also collected below 85 percent of what they were owed. A strong collection rate is around 95 percent, according to the Civic Federation.

The south suburbs have been reeling from steep tax hikes and lagging payments. Median tax bills jumped nearly 20 percent in 2023, the largest increase in almost three decades. That spike, combined with years of disinvestment, has left homeowners and businesses struggling to keep up — and city governments starved for the revenue they depend on.

Harvey’s government is now in partial shutdown, having furloughed more than 40 percent of its staff — including portions of its police, fire and public works departments — as it struggles to meet payroll.

Complicating the issue is the questionable legality of Cook County’s tax-lien sale practices. The U.S. Supreme Court ruled against the practice, but Illinois hasn’t changed its laws around it. The conflict brought tax sales to a standstill in Cook County and drew a class-action lawsuit.

Harvey Mayor Christopher Clark said at a recent City Council meeting that unpaid property taxes are a central reason the city is in crisis. Last month, Harvey’s city council voted to seek relief under Illinois’ Financially Distressed Cities Act, a designation previously reserved for East St. Louis.

“The reason why the collection rate is so low is because of years of disinvestment,” Clark said. “Our high tax rate only makes things worse. It’s a diminishing return.”

The treasurer’s report said Harvey leads all Cook County suburbs in tax-delinquent properties — with more than 3,100 homes and 1,885 vacant lots owing back taxes.

Businesses are also lagging: 662 commercial properties owe roughly $9.2 million. Schools, city services and other taxing bodies in Harvey are owed $312.4 million in total unpaid taxes, with another $441 million in accumulated interest over two decades.

Clark has tried to compel payments by blocking access to parking lots at delinquent properties and denying business licenses, a tactic some city officials say has backfired.

“The city is spending more time fighting entities that owe back taxes than finding equitable solutions,” said Alderman Colby Chapman, who added that the problem is compounded by thousands of abandoned homes across the city.

The city’s tax rate ranks among the highest in the county, while its collections rank among the lowest, meeting the criteria for state financial intervention.

“It confirms why we’re asking for help,” Clark said. “You just can’t run a city with these kinds of numbers and still expect to serve your citizens.”

— Eric Weilbacher