Property tax collection rates in several Chicago neighborhoods are on the decline following significant increases in bill amounts.
This trend was identified in a new analysis by Cook County Treasurer Maria Pappas’ office, which measured collection rates about six weeks after the payment deadline, the Chicago Tribune reported.
The data reveals a direct correlation between lower household incomes and the inability to meet rising tax obligations. Neighborhoods with median household incomes below $50,000, such as Englewood and North Lawndale, saw collection rates fall by more than 3 percent.
Across the 13 community areas with the most substantial tax hikes in 2024, residential collections fell in 11 of them. Despite these local drops, the countywide collection rate remained stable at 96 percent, consistent with the average over the past decade.
In the Riverdale community area, where residential bills surged by 65 percent, collections plummeted by 11.1 percent to a total of 68.5 percent. West Garfield Park also experienced a 4.1 percent decline in residential collections after tax bills more than doubled, according to the publication.
Collection rates for commercial and industrial property owners improved by more than 1 percent, bringing them in line with or above historical norms. Stability in the commercial sector provides a necessary anchor for the county’s broader fiscal health, the outlet reported. However, the residential shortfall creates significant financial risks for individual homeowners who face mounting interest charges.
Late payments are subject to a 0.75 percent monthly interest rate, which can reach up to 9 percent annually on the unpaid balance. About 10 percent of homeowners in 14 hard hit areas utilized partial payments to mitigate these interest costs.
In West Garfield Park, more than 15 percent of residents made partial payments as they struggled to manage the increased financial burden. The report noted that while homeowners paid more in total due to higher assessments, the lower percentage of full payments signals growing distress.
South suburban communities showed a mixed financial picture, with some areas experiencing a notable rebound in collection rates. Even with these gains, some municipalities like Ford Heights still face collection rates as low as 46 percent, threatening their ability to fund essential services.
The property tax issue has become a central focus in local political contests, including the Democratic primary for Cook County assessor. Leaders in impacted neighborhoods are increasingly questioning current assessment practices as bills outpace income growth.
— Eric Weilbacher
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